Minera Panamá

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

2

Project Background and History

Project has been known and studied for 44 Years • Potential of the Mina de Cobre Panamá project investigated since 1968.

• 1977 Preliminary feasibility report prepared by Panamá 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 Dirección General de Recursos Minerales (DGRM) and

accepted as the official Feasibility Study to satisfy concession law requirements

• 1997 The Petaquilla (Mina de Cobre Panamá) concession rights granted to Minera

Petaquilla, S.A., now Minera Panamá, S.A. (MPSA), under Panamanian Law No. 9.

• 2008 Inmet acquired Petaquilla Copper Ltd., and Inmet Teck Cominco’s 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

Panamá project (then known as the Petaquilla project) to full feasibility level

3

Project Background and History

Project has a 44 year history. (Cont)

• The project name was changed to Mina de Cobre Panamá 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

4

Project Background and History

Project has a 44 year history – Site Activity

5

1967–1969 United Nations Development Program (UNDP) identified deposit

1970–1976 Panamá Mineral Resources Development (PMRD (Japanese

Consortium) carried out additional site investigations

1992–1995 Adrian with Minnova and Teck undertook extensive site exploration

including extensive airborne geophysical investigations

1996–1997 Teck undertook additional exploration

2006–2008 Petaquilla Copper continued additional exploration and Geophysics

2008–20012 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..

6

PROJECT LOCATION

7

PROJECT

Panamerican Highway

Port Site

Transmission

Line

Coast Road

Tailings

Management

Facility

2km

Project Infrastructure

8

There are distinct and separate

construction areas all projects within their

own right.

• 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

Plant Site

Facilities

Mine Pits

Waste Storage

Facilities

Power Plant

Project Overview

Four major ports:

▪ 3 – Colon (1,2,3)

▪ 1 - Panamá City (4)

Punta Rincón 90 km Port of Colon by sea

1,2,3

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

Existing Infrastructure

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

• .

11

Fresh rock

Saprolite oxidized (0-40 m)

Saprock (weathered rock)

Residual soil (<1 m)

Water table

Saprolite reduced

(limited)

Rock sources initially limited

Saprolite Profile

Environmental issues

Flora and Fauna Rescue and Clearing

12

• 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

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

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

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

EARTHWORKS

PACKAGES OVERVIEW

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. Owner’s 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

• Maintenance Vehicles

• Bulk Explosive Trucks

• Water Tanker Trucks (5, 000 – 10,000 gallons)

• Mobile Light Plants

• Generators

CAT 789C – 200T Capacity

Typical Mine Pre-Stripping Equipment

Project Overview - Port Site Current

Rio Caimito village

Punta Rincon Rio Caimito village

Port

17

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.

Port Facilities overlay on Existing

Topography

Port Layout

Overall Port Facilities 3D Model

19

Power Station

Coal Yard

Barge Berth

Bulk Berth

Cons. Storage

Filter Plant

Port Layout

Overall Port Facilities 3D Model

20

Concentrate Dewatering Facility

21

• 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.

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

23

▪ Power Station

▪ Route 123km

– 96km, Llano Sanchez – Minesite

– 4.5 km Minesite Sub – Plant

– 24km Minesite – Power Station

▪ Minesite Substation

▪ Plant Site

▪ Line Details

– Double Circuit

– Cond. ACM 1024 518 mm2

– OPGW 58 mm2

– Integral 48 fibre FO for SCADA

– Construction Land/Helicopter

▪ Llano Sanchez Substation

National Grid

Coast Road

• Road to be constructed to connect the port at Punta Rincón 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.

24

• 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

Project Overview - Mine Site Current

MPSA camp

Botija camp

Petaquilla Peak

Botija Pit

MPSA camp Colina camp

Petaquilla Peak

Botija Pit

0 kilometres 2

Mine Infrastructure Layout LOM

26

Colina pit

Botija pit

Valle Grande pit

Plant

LG Stkpile

Botija South Dump

Saprolite Dump

Colina WRSF

Botija West Dump

Southwest WRSF

Botija Crusher

Colina Crusher

Tailings Facility

Mining Sequence - Year 0 (Start-up)

27

Mining Sequence - Year 5

28

Mining Sequence - Year 10

29

Mining Sequence - Year 15

30

Mining Sequence - Year 20

31

Mining sequence - Year 25

32

Mining sequence - Year 30

33

PP-2 PP-1 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11-15 Y16-20 Y21-25y26-30*

Waste 46 65 40 25 35 31 40 52 61 57 54 59 54 27 5

Ore to Stockpile 11 20 24 23 21 22 10 17 7 8 5 1 2 0 0

Ore to Mill 0 1 42 58 57 57 56 57 57 57 55 80 83 84 74 73

-

20

40

60

80

100

120

140

160

Tonnes(millions)

Mining Schedule

Mine Plan (Mt/y)

• 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

Process overview

35

• 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 μm

• Rougher flotation, 4 banks of seven 300 m³ cells

• Re-grind, two banks of eight 100 m³ 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

Crushing

Dewatering

and storage

for shipping

Grinding

Flotation

Mill Process Flow

36

From bulk concentrate thickener

PROCESS FLOW - Molybdenum

37

Mine / Plant Layout

Overall Process Plant 3D Model

38

Tailings Storage Facility

Colina WRSF

Valle Grange Pit

Cilina Pit

South West WRSF

Eastern Infrastructure

(Construction and Permanent Camps)

Process Plant

Botija South WRSF

Crushing Station

Botija Pit

Botija West WRSF

& LGO Stockpile

Mine / Plant Layout

Overall Process Plant 3D Model (close-up)

39

Process Plant

Botija South WRSF

Crushing Station

Botija Pit

Botija West WRSF

& LGO Stockpile

Truck Shop

Major Facilities Plant Site

40

655 m

Coarse Ore Stockpile

(450,000 t)

Process Plant

Mine Substation

655 m

Truck Shop

Crusher

Process Plant Layout

41

Mine Substation

Grinding

Flotation

Concentrate

Thickening

Mill Workshop Regrind

Moly Plant

Coarse Ore Stockpile

Project Overview - TMF Site current

Starter Dam

East Abutmen

t

N

East Dam Alignment

East Infrastructur

e Plant Site

Starter Dam

East Abutment

N

North Starter Dam Alignment

TMF Construction

Tailings Basin Schematic – Year Zero

43

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

TMF Underdrainage Design Update

North Dam – Drain Details

44

Drain Elevated

Overall Slope – 1% min

TMF Sand Dam Construction

North Starter Cross Section

45

TMF Tailings Basin Schematic – Year 22

• Final surface area 2500 ha

• Final wall height 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

47

10. Sand Dam Construction

Upstream Sand Dam Construction

48

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

49

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