Minera Panam

General Overview of the Infrastructures for a large Mining Project in Panama Cobre Panama Project

By: John Whitaker/Jose Garcia April 18, 2012

TABLE OF CONTENT
Project History Project Overview Port Infrastructure Main project infrastructures: General Plan Design and construction challenges Tailings Management Facility Port Facility Dams Concluding remarks Acknowledgements

Project Background and History

Project has been known and studied for 44 Years
Potential of the Mina de Cobre Panam project investigated since 1968. 1977 Preliminary feasibility report prepared by Panam Mineral Resources Development Co. Ltd. in - updated 1979. 1994 Prefeasibility study issued for Adrian Resources Ltd and updated in 1995 1996 Feasibility study for Teck Corporation - update 1998.

1998, Document was submitted to Direccin General de Recursos Minerales (DGRM) and accepted as the official Feasibility Study to satisfy concession law requirements
1997 The Petaquilla (Mina de Cobre Panam) concession rights granted to Minera Petaquilla, S.A., now Minera Panam, S.A. (MPSA), under Panamanian Law No. 9. 2008 Inmet acquired Petaquilla Copper Ltd., and Inmet Teck Comincos remaining share in MPSA, taking Inmet to a 100% interest in MPSA. 2007 Draft Interim FEED Report (AMEC, 2008) commenced, to bring the Mina de Cobre Panam project (then known as the Petaquilla project) to full feasibility level

Project Background and History

Project has a 44 year history. (Cont)
The project name was changed to Mina de Cobre Panam in 2009.

FEED Study issued April 2010 followed on from the Draft Interim FEED Report.
Basic engineering commences November 2011ESIA Work commenced in 2008. ESIA approval granted by ANAM Dec 2011

Basic Engineering completed March 2012

Early works are underway to: Upgrade site access from Llano Grande to site Construction of bypass road around Petaquilla Gold operations Construct a pioneer road to the NE corner of the tailings dam for early access Establish and open-up the principal site quarry for construction material Establish initial construction camps onsite

Project Background and History

Project has a 44 year history Site Activity
19671969 19701976 19921995 19961997 20062008 200820012 United Nations Development Program (UNDP) identified deposit Panam Mineral Resources Development (PMRD (Japanese Consortium) carried out additional site investigations Adrian with Minnova and Teck undertook extensive site exploration including extensive airborne geophysical investigations Teck undertook additional exploration Petaquilla Copper continued additional exploration and Geophysics MPSA Continued extensive resource definition and geotechnical drilling

Drill Programs
Since 1968 a total of 307,075 m have been drilled in 1577 holes define the resource and characterize ground conditions

MINERA PANAMA FACTS

Production Summary 30 year Mine Life.
Mill initially throughput -150,000 t/d ore @ up to 0.7% Cu & 0.013% Mo
From Year 10, throughput increased by 50%, to a nominal 225,000 t/d, to maintain production despite a falling head grade.

Total tonnes scheduled to be mined 3,681 Mt Total tonnes scheduled to be milled 2,319 Mt

Metallurgical test work - conventional flow sheet of crushing, grinding, differential flotation. LOM total of 27.289 M dmt Cu cons @ 28% Cu, containing

7.641 Mt Cu, 2.690 M troy oz Au, 45.228 M troy oz of Ag

185,648 dmt Mo cons @ 52%, containing 96,537 tonnes of Mo Mo cons will also contain 520 g/t of rhenium..

PROJECT LOCATION

PROJECT

Panamerican Highway

Project Infrastructure
Port Site

Power Plant

There are distinct and separate construction areas all projects within their own right.

Transmission Line Coast Road Tailings Management Facility

Plant Site Facilities

Waste Storage Facilities

Port Marine development and logistics infrastructure Port Concentrate dewatering infrastructure 300 MW power plant Process plant site and ancillary infrastructure Botija pit prestrip and development Tailings management facility and associated infrastructure 230 kV overhead power line & Llano Sanchez Substation Coast Road and pipelines. Eastern Infrastructure

Process Plant Mine Pits

2km

Project Overview

Existing Infrastructure
1,2,3

Four major ports: 3 Colon (1,2,3) 1 - Panam City (4) Punta Rincn 90 km Port of Colon by sea
4

Road Panamerican highway: Project is 215km by road from Panama City via Penonome on existing road infrastructure. Existing 46km gravel road Llano Grande to Site being upgraded. 230 kV Power National Power Grid parallels the Panamerican highway

Cobre Panama

10

Environmental issues
High Rainfall 4500 5000 mm/y Saprolitic soils Ave depth 22 m Stringent enforcement of BMP to manage erosion and sediment control Difficult access helicopter only . Saprolite Profile
Saprolite oxidized (0-40 m) Residual soil (<1 m)

Water table

Saprock (weathered rock) Saprolite reduced (limited) Fresh rock

Rock sources initially limited

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Environmental issues Flora and Fauna Rescue and Clearing

Stringent commitments to managing the rescue and relocation of flora and fauna Stringent Project and ESIA commitments relating to Flora and Fauna rescue and relocation Partnering arrangements with prestigious institutions Smithsonian Tropical Research Institute (STRI) Missouri Botanical Gardens Kew gardens and other international experts to identify SoC and rescue and relocation protocols. Clearing rates of up to 4 ha will be required to achieve project development

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EARTHWORKS PACKAGES OVERVIEW

C1003 Plant Site Mass Earthworks, 7.1 / 5.0 C9007 Aggregate Supply (Mine), 4.0 / 0.0 Mine Prestrip total 65.4 Mm3 by contractor and owner

C1002A Port Site Earthworks, 6.6 / 0.3 C1002B Port Off-Shore, 0.0 / 0.33 C9007 Aggregate Supply (Port), 1.3 / 0.0

Notes: 1) Volumes - Cut / Fill

(Million m3)

2) C9007 Quantity shown only for overburden removal. 3) Quantities calculated by JVP as of January 12, 2012

C1004A Eastern Access Road, 0.6 / 0.5 C1004B Coast Access Road, 3.3 / 5.1 C1010A Tailings Dam Mass Earthworks, 2.7 / 8.7

Earthworks Earthworks Summary

Clearing and Grubbing Stripping: 2,7 million m3 Excavation:
Mass Saprolite SapRock Rock Excavation

Backfilling:
General Rip Rap

Total Earthworks: 104.4 million m3 (Incl. Owners Pre-strip) Concrete: 160,000 m3(not including Power Plant)

Earthworks Major Equipment

Hydraulic Excavators: 20T 300 T Rigid Trucks: 60T 200T Articulated Trucks: 25T 40T Mack Trucks: 15T Bulldozer: Caterpillar D5 D9T Compactor: 5T 10T Grader: Caterpillar 140 / 160 Crusher: 350 T / hour and 1000 T / hour Mobile Crusher: 250 T / hour Hydraulic Drills: 3 9 7/8 Diameter CAT 789C 200T Capacity Maintenance Vehicles Typical Mine Pre-Stripping Equipment Bulk Explosive Trucks Water Tanker Trucks (5, 000 10,000 gallons) Mobile Light Plants Generators

Project Overview - Port Site Current

Punta Rincon Rio Caimito village Rio Caimito village

Port
Punta Rincon area is currently assessable only by sea or helicopter Facilities to be established include Port Marine development and logistics infrastructure Port Concentrate dewatering infrastructure 300 MW power plant Construction will need to be serviced from sea (Colon) until road constructed to Mine. Construction camp for up to 4000.

17

Port Facilities overlay on Existing Topography

Port Layout Overall Port Facilities 3D Model

Coal Yard Power Station Barge Berth Bulk Berth Cons. Storage Filter Plant

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Port Layout Overall Port Facilities 3D Model

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Concentrate Dewatering Facility

Concentrate received as slurry from Plant to max 230 tpy Dewatered by three pressure filters to nominal 9% moisture. Filtered concentrate transported by conveyor into concentrate storage shed (nominal 100,000 t capacity) for load out to export ships.
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Power Plant Overview

2 x 150 MW gross (136.9 MW net) Pulverized Coal-fired power plant
Design fuel is sub-bituminous coal from Colombia Emissions controls Low NOx burners, SCR, baghouse and seawater FGD scrubber. Condenser cooling seawater, design inlet temp is 30C, delta T is 7C for condenser, 2C for FGD, total 9C CCW flow approx. 50,000 M3/hr

Project Power Demand Year 1-9

Peak load range is 226 to 257 MW , Running load range is 206 to 233 MW Years 1-9 Will have about 40 MW available for export

Year 10 onwards (after addition of 3rd mill)

Peak load range is 338 to 343 MW, Running load range is 307 to 312 MW Use grid power when units not available Years 10-30, when 3rd line is installed, import power

230 kV Power line

Power Station Route 123km

96km, Llano Sanchez Minesite 4.5 km Minesite Sub Plant 24km Minesite Power Station

Minesite Substation

Plant Site
Line Details

National Grid

Double Circuit Cond. ACM 1024 518 mm2 OPGW 58 mm2 Integral 48 fibre FO for SCADA Construction Land/Helicopter

Llano Sanchez Substation

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Coast Road
Road to be constructed to connect the port at Punta Rincn on the Caribbean Sea with the mine/plant site. Approximately 30 km long Designed for the transport of freight and equipment, including all oversized equipment, needed for construction and operation of the mine/plant facilities. Max Gradient 10%, 8m pavement, 1.5 m shoulders Two significant bridges over Rio Uvero and Medio The Road will incorporate pipeline right-of-way for three buried pipelines concentrate, diesel fuel, filtrate water return that will run between the two project sites. Concentrate Pipeline 291 mm dia (8.625) X427.92 mm wall, HDPE liner Diesel Pipeline 114 mm dia X52 Filtrate return line 291 mm dia (8.625) X52

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Project Overview - Mine Site Current

Petaquilla Peak Petaquilla Peak

MPSA camp MPSA camp

Colina camp

Botija Pit Botija Pit

Botija camp

Mine Infrastructure Layout LOM

Colina WRSF

Tailings Facility

Saprolite Dump

Colina pit

Botija West Dump

LG Stkpile

Botija pit

Plant
Colina Crusher

Botija Crusher

Southwest WRSF

Valle Grande pit

Botija South Dump

kilometres

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Mining Sequence - Year 0 (Start-up)

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Mining Sequence - Year 5

28

Mining Sequence - Year 10

29

Mining Sequence - Year 15

30

Mining Sequence - Year 20

31

Mining sequence - Year 25

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Mining sequence - Year 30

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Mine Plan (Mt/y)

Mining Schedule
160

140

overall mining rates 100-130 mtpy for 9 yrs peak rates of 140 mtpy yr 10 to 20 about 20 mtpy to stockpile to year 4

120

100 Tonnes (millions)

80

60

40

20

PP-2
Waste

PP-1 65
20 1

Y1 40
24 42

Y2 25
23 58

Y3 35
21 57

Y4 31
22 57

Y5 40
10 56

Y6 52
17 57

Y7 61
7 57

Y8 57
8 57

Y9 54
5 55

Y10 59
1 80

Y11-15 Y16-20 Y21-25 54

2 83

y2630*

46
11 0

27
0 84

5
0 74 73

Ore to Stockpile Ore to Mill

Process overview
Crushing
2 Gyratory Crushers 60in X 110in, 1,200 kW drive Crushing Rate max 220,000 tpd. P80 75 ~ 125 mm Overland conveyors 2.134 m wide, 4.5 m/s, 10,115 tph 2 SAG mills, 12.2m x 7.3m, 28 MW, P80 4.9 mm 4 Ball mills, 7.9m x 12.8m, 16.5 MW, P80 180 m Rougher flotation, 4 banks of seven 300 m cells Re-grind, two banks of eight 100 m cells, Two stages column cells Molybdenum separation Concentrate pumping and Pipeline to port, 34 km long, 290 mm dia. Pressure filters, concentrate storage facility 100 kt capacity Filtrate return line

Grinding

Flotation

Dewatering and storage for shipping

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Mill Process Flow

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PROCESS FLOW - Molybdenum

From bulk concentrate thickener

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Mine / Plant Layout Overall Process Plant 3D Model

Eastern Infrastructure (Construction and Permanent Camps) Tailings Storage Facility

Botija Pit Botija West WRSF & LGO Stockpile Crushing Station Botija South WRSF

Colina WRSF Cilina Pit

Process Plant Valle Grange Pit

South West WRSF

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Mine / Plant Layout Overall Process Plant 3D Model (close-up)

Botija Pit Truck Shop Botija West WRSF & LGO Stockpile Crushing Station

Botija South WRSF

Process Plant

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Major Facilities Plant Site

Mine Substation Truck Shop

655 m

Crusher

Process Plant

655 m

Coarse Ore Stockpile (450,000 t)

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Process Plant Layout

Mine Substation Coarse Ore Stockpile

Concentrate Thickening

Grinding

Flotation
Moly Plant

Regrind

Mill Workshop
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Project Overview - TMF Site current

East Infrastructur e East Dam Alignment

Plant Site

North Starter Dam Alignment Starter Dam East Abutment Starter Dam

East Abutmen t

TMF Construction Tailings Basin Schematic Year Zero

Tailings Dam Ultimate surface area ~2500 ha Starter Dams 38 m high Site specific Seismic study undertaken to establish design Seismic design criteria (applicable for all site facilities) Detailed diversion work required to divert existing streams to enable construction Total 11.4 M m3 material to be handled to complete construction Borrow area established within the TMF for requires material Total of 1300 ha required cleared of Flora and Fauna and trees felled 137 ha requires to be fully grubbed for construction

2 km

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TMF Underdrainage Design Update North Dam Drain Details

Overall Slope 1% min

Drain Elevated

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TMF Sand Dam Construction North Starter Cross Section

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TMF Tailings Basin Schematic Year 22

Final surface area Final wall height

2500 ha 100 m

Total contained tailings 1.3 Bt

Total Volume cycloned sand used for downstream wall construction 200 Mt

TMF Sand Dam Construction Staged Dam Raises

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10. Sand Dam Construction Upstream Sand Dam Construction

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Eastern Infrastucture and Support Facilities

Camps Construction camps will be constructed for a minesite workforce of 4500 persons Permanent Operations camp for 2100 persons Security Facilities Panamanian Police station Hospital clinic for site workforce medical treatments and emergency stabilization prior to medivac Potable water facilities Sewerage treatment Waste handling (landfill, incineration, hazardous materials) Heliport Bus terminals Site Power generation Fuel storage and distribution facilities Blasting Agent Magazines
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Project Execution Challenges

Health & Safety Culture Environmental challenges
Flora & Fauna Rescue & Relocation Erosion and Sediment Control

Climatic Conditions
Heavy Rainfall

Port Site Access

Equipment & Materials Manpower Timing & Availability (Beach landing and Construction Wharf)

Logistics

Execution Challenges
Seismicity Site readiness - Facilities (e.g. accommodations) Aggregates Lack of skilled in-country construction resources (Local Resource Development Initiative) Labour Productivity