RunrunoSecPresentation-23May11

Report
Company Outline

FCF Minerals Corporation (FCF) owners the Runruno Gold – Molybdenum Project. Metals Exploration Plc
owns 85% of FCF and has rights to the remaining 15%.

FTAA permit signed by Order of the President in October 2009

Environmental Compliance Certificate (ECC) issued March 2010

Feasibility Study announced in May 2010.
Metals Exploration Plc
(Registered in England)
(Listed in AIM)
MTL Philippines, Inc.
(100.0%)
Woogle Corp.
(40.0%)
Cupati Holdings Corp.
(40.0%)
Metals
Exploration Plc ROHQ
FCF Minerals Corporation
(85.0%)
Runruno
Livelihood
Foundation
2
Project Location
The Runruno Gold-Molybdenum Project is located within
Baragay Runruno, Municipality of Quezon and the Province
of Nueva Vizcaya. It is a distance of 320km by road north of
Manila.
FCF began exploration activates in the Runruno area in
2005 based on previous exploration in the area since the
1960s.
The project area is covered by Financial or Technical
Assistance Agreement (FTAA). It covers a land area of
3,093.51 ha.
3
Regional Location
Road – upgrade allowed
along parts of the road.
Currently passable all year.
Airfield – Bagabag airfield
5 kms north of Solano
Power supply – switch yard in
Bayombong will be the origin for
the new 69Kv line to site, running
along the new road
FTAA boundary
Financial or Technical Assistance Agreement (FTAA)
FTAA-004-2009-II
Area 3,093.51 Ha
Approved FTAA Permit
Volcanic Complex
(circular features)
Diameter= 2.5 kms
Cu-Au-Mo
Current Runruno Resource Area
Cu- Au-Mo
Feasibility Study Results

The Feasibility Study confirms the viability of the Runruno project,
forecasting average gold production of 96,700oz of gold p.a. over a mine life
of 10.4 years

Production estimates:
• Years 1-5: 101,800 ozs gold per annum
• Years 6-10: 92,700 ozs gold per annum

Payback within 3.5 years at US$1,000 gold
Key Project Fundamentals
A summary of the key project fundamentals is presented below:
Description
Capital Cost
Average Mining Rate
Average Operational Strip Ratio
Design Milling Rate
Average Gold Grade
Gold Recovery
Average Gold Production
LOM Gold Production (10.4 years)
Average Operating Cost
LOM Operating Cost
Item
US$149.3m
12.2 Mtpa
5.9:1
1.75 Mtpa
1.89 g/t
91.9%
96,700 oz/yr
1,006,000 oz
US$46.2m/yr
US$477 /oz Gold
Resource & Reserve
April 2010 Resource
Resource Category
Ore
Gold
Molybdenum
Measured
Mt
9.9
g/t
1.89
M Oz
0.60
ppm
626
M lbs
13.7
Indicated
5.4
1.74
0.30
387
4.6
Inferred
Total
10.0
25.4
1.59
1.74
0.51
1.42
327
457
7.2
25.6
Reserve Category
Ore
Gold
Molybdenum
Proven
Mt
8.7
g/t
1.94
M Oz
0.54
ppm
657
M lbs
12.6
Probable
3.9
1.89
0.24
406
3.5
2P Reserves
Additional Inferred
Resource in-pit
12.6
1.93
0.78
579
16.1
5.5
1.81
0.32
338
4.1
Resource estimate was updated in April 2010 to include all 741 drill holes
completed (104,718m) and assays returned by the end of February 2010
The combined M&I resource of 900,000oz gold now comprises 63% of the
total
In addition to the 2P reserves the Company has included a further 5.5 Mt
@ 1.81 g/t Au; 0.032% Mo of Inferred mineral resource in the mine
schedule after applying the same mining parameters used in estimating
the mining reserve
Project Description
The project will have the following five (5) major
components:
•
•
•
•
•
Mine Open Pit and Run of Mine (ROM) Pad;
Process Plant facility consisting of conventional
crushing, grinding, flotation, along with BIOX®
and gravity recovery;
Tailings Storage Facility (TSF) to ensure
materials are properly managed and to reclaim
water for the project;
On Site Infrastructure including offices,
workshops, accommodation, haul roads and
water supply; and,
Off
Site
Infrastructure
including
road
improvement, 69kV powerline and water supply.
Total project area is approximately 420 hectares.
8
Mine
•
Open pit area - 600m x 1,500m
•
1.75 Mtpa ore - transported by conveyor to the Process Plant.
•
10.4 Mtpa overburden - used for the construction of the Tailings
Storage Facility and in-pit backfill.
•
For the first three years of mining, waste material will be used in the
initial construction of the Tailings Storage Facility with the excess
being stored as valley fill. For the remainder of the mining
operation, waste material will be stored in the mined out pit.
Mining Methods
•
Conventional open cut, excavator and truck operation conventional
backhoe configured excavator and truck based open pit operation
•
Mining fleet consisting of 7x91t haul trucks, 2 excavators and
associate ancillary fleet.
Mining Estimates
• Diluted head grade 1.89g/t Au, 505ppm Mo
Mining Methods
• 5% mining loss allowed
• Pit optimised using Whittle modelling
• Ore crushed adjacent to pit and conveyed
to process plant
• Av Production - 96,700 oz Au
• Waste rock stored in pit where possible
• Operating strip ratio of 5.9:1
• Tailings dam site within project boundary
• Open cut, truck and shovel operation
9
Process Plant
 Ore contains free and refractory gold and
molybdenite
 Gold circuit demonstrated by extensive
testwork
• Gravity recovery – 30% of gold
• Flotation to gold rich concentrate
• Biox® to oxidise sulphides
• Carbon in leach to recover gold doré
• Cyanide destruct and tailing neutralisation
• Tailings stored in purpose constructed
facility
 Molybdenum circuit
• Method to recover moly dissolved during
the BIOX® process being developed
 Testwork undertaken by Metcon, Burnie,
Ammtec, Optimet, Goldfields and SGS (SA)
laboratories
Process Flow Diagram
A
BIOX® Process
•
The Bio-Oxidation (BIOX®) was developed by GENCOR in the 1970s. It is owned and
marketed by a wholly owned subsidiary BIOMIN, who is ownership by Gold Fields Limited.
•
The BIOX® Process is a pretreatment process for refractory gold ores or concentrates, using
three (3) naturally occurring bacteria to break down the sulphide matrix and liberate the gold
for subsequent treatment
•
Operating Ph of 1.2 to 1.8 and temperature of 40 to 45 0C.
•
It is an alternative to the conventional processes of roasting and pressure oxidation. The
advantages of the BIOX® Process are:
•
•
•
•
•
BIOX® process commercially proven.
Environmentally friendly.
Robust and easy to operate.
Ideal for remote areas.
Cost competitive to roasting and pressure oxidation.
thiobacillus ferrooxidans
12
Tailings Storage Facility
Tailing Storage Facility (TSF)
•
Storage of treated tailings in Big Malilibeg
Vallley adjacent to the Process Plant.
•
A two-year starter embankment to be
constructed. This will be progressively
increased using downstream construction
methods over the life of the project.
Designed to national and international
standards for the safe and environmentally
acceptable storage of tailings.
•
Deposition of Tailings
• Tailings treated to destroy cyanide.
• Tailings will be pumped from the Process
Plant to the TSF through a pipeline that will
be placed in an open earthworks bund.
Reclaim of Water
• Water will continuously be required to
support the Process Plant and this will be
primarily reclaimed from the TSF in order to
minimise the supply of make-up water
required from other sources.
13
Water Supply
Potable water will be sourced from the
Lintungan River and this will be supplied to
the Runruno Village, Camp and Process
Plant.
Runruno
Township
Potable Water
Sulong River
Raw Water
Potable Water
Tailings Return
Processing Plant
Tailings
Discharge
Fire Water
Potable Water
Tailings
It is anticipated that TSF return water, which
will include direct precipitation, will exceed
the project’s requirements and will require to
be discharged. This water will undergo
treatment to meet Philippines water quality
standards.
D
Tailings Return
•
Process water supply will be sourced from
the TSF return water. Make-up raw water
that will be required at project start up and as
required from the Sulong River.
Discharge Water
•
Mine Office
& Workshop
Fire Water
•
Water usage will be effectively managed to
minimise the amount of water drawn from
local rivers and to maximise the water
returned from the TSF.
Raw Water
•
Potable Water
Treatment Plant
Lintungan River
H
H
Potable
Water
Distribution
H
Tailings Storage
Facility
H
Administration Office and
Accommodation Camp
14
Off-Site Infrastructure
Access Road
•
Improvement of the Quezon to Runruno Access Road.
Power Supply
•
Estimated average power usage of 13MW.
•
Access to the power national grid and hydroelectric power stations.
•
Switch yard located at Bayombong.
•
36 km dedicated 69 kV Powerline to be constructed to site.
•
6MVa diesel generation set to provide emergency backup power.
15
Environmental Compliance Certificate (ECC)

ECC issued by the DENR and the Environmental Management Bureau (EMB) in March
2010, after reviewing the ECC application.

It certifies that the proposed project will not cause significant negative environmental
impact, that the project has complied with all the requirements of the Environmental Impact
Statement (EIS) system and that the Company has committed to implement its
Environmental Management Plan.

An Environmental Impact Statement was prepared, detailing the baseline environmental
conditions and potential impacts as well as the safeguards included in the design.

The EIS was presented in public meetings attended by over five hundred people from the
surrounding communities, as well as representatives from the Barangay, Municipal and
Provincial government bodies.

The active involvement of the local community was encouraged throughout the process
through public consultation.

The EIS was then submitted to the EMB and reviewed by the Environmental Impact
Assessment Review Committee (EIARC), based on three criteria:
•
Environmental considerations integrated into overall project planning
•
Assessment is technically sound and the proposed mitigation measures are effective
•
Social acceptability based on informed public participation

ECC was recommended for issue after a thorough review by the EIARC. This was endorsed
by the EMB Director and finally reviewed and approved by the DENR Secretary.
Environmental Management Program
•
Rehabilitation/Slope stabilization of Completed Drill Pads
•
Regular Water Quality Monitoring
•
Reforestation Program
•
Weather Monitoring
•
Waste Management Program
•
Regular Air Quality Monitoring
Use of Coconut Fiber Matting for Slope Stabilization
Installation of cocofiber matting and soil filled bags in open slopes
Growth of planted napier grass
Philippine Mining Act
Compliance to DENR AO No. 96-40 (Philippine Mining Act)
Part of FCF compliance to the Philippine Mining Act of 1995 are the preparation of
the following plans and programs:
•
•
•
Environmental Protection and Enhancement Program (EPEP)
Final Mine Rehabilitation / Decommissioning Plan (FMRDP)
Social Development and Management Plan (SDMP)
EPEP and FMRDP
ENVIRONMENTAL PROTECTION AND ENHANCEMENT PROGRAM (EPEP)
•
Program to address expected and acceptable impacts of the project and set out the
life-of-mine environmental protection and enhancement based on international
standards and best mining practice in environmental management
FINAL MINE REHABILITATION / DECOMMISSIONING PLAN (FMRDP)
•
Plan based on a prescribed standard of rehabilitation to:
– prevent long-term environmental impacts by returning mining-disturbed land to a
physically and chemically stable, visually acceptable productive or self-sustaining
condition, taking in consideration the beneficial uses of the land and surrounding
areas; and
– ensure that sustainable alternative livelihoods are established and left behind to
the host and neighboring communities
Social Development and Management Plan
SOCIAL DEVELOPMENT AND MANAGEMENT PLAN (SDMP)
•
Plan to promote and enhance the development and general welfare of the host and
neighboring community through:
– Human resource development;
– Enterprise development and networking;
– Access to education and educational support programs;
– Access to health services, health facilities, and health professionals; and
– Protection and respect of socio-cultural values
•
Other components of the SDMP are the following:
– Development of mining technology and geo-sciences
– Promotion of public awareness and education on mining technology and geosciences
(ICE Program)
FCF Community Development
•
Education and Training
•
Health and Nutrition
•
Skills Development and Capability Building
•
Basic Infrastructure Development
•
Employment and Livelihood
•
Information Education and Communication
The Runruno Livelihood Foundation (RLF) is a non-stock, non-profit organization that
implements our community programs and projects aimed at developing a self-reliant
and self-sustaining.
Basic Infrastructure Development
Hanging Bridge
Waiting Shed
Daycare Center
Tire Path
Community Clinic
Road Maintenance
Livelihood Projects
Runo Craft
Banana Chip Making
Bread Making
Hammock Making
Soft Broom Making
Basic Sewing Course
Information, Communication and Education (ICE)
Project Update with the Barang Council,
local community members and project
employees.
Project Timetable
Milestones
Achievements
Forthcoming
Scoping Study
 Completed in November 2008
-
FTAA awarded for Runruno Project
 Signed by order of the President
-
Independent Resource verification
 Completed in November 2009
-
Environmental Compliance Certificate (ECC)
 Granted in February 2010
-
Feasibility Study
 Delivered in May 2010
-
Step out Drilling & Molybdenum Recovery
Underway
Permitting – SDMP, EPEP, FMRDP
Underway
Declaration of Mine Feasibility (DMF)
Q1 2011
Commence Project Construction
Q1 2011
Potential Commence Operations
Q4 2012
Thank You.
Any Questions?

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