Presentation on theme: "Company Outline FCF Minerals Corporation (FCF) owners the Runruno Gold – Molybdenum Project. Metals Exploration Plc owns 85% of FCF and has rights to."— Presentation transcript:
2 Company OutlineFCF 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 2009Environmental Compliance Certificate (ECC) issued March 2010Feasibility Study announced in May 2010.Metals Exploration Plc(Registered in England)(Listed in AIM)Metals Exploration Plc - ROHQMTL Philippines, Inc. (100.0%)FCF Minerals Corporation (85.0%)Woogle Corp. (40.0%)Cupati Holdings Corp. (40.0%)Runruno Livelihood Foundation
3 Project LocationThe 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, ha.
4 Regional LocationRoad – upgrade allowed along parts of the road. Currently passable all year.Airfield – Bagabag airfield 5 kms north of SolanoPower supply – switch yard in Bayombong will be the origin for the new 69Kv line to site, running along the new roadFTAA boundary
6 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 yearsProduction estimates:Years 1-5: 101,800 ozs gold per annumYears 6-10: 92,700 ozs gold per annumPayback within 3.5 years at US$1,000 goldKey Project FundamentalsA summary of the key project fundamentals is presented below:DescriptionItemCapital CostUS$149.3mAverage Mining Rate12.2 MtpaAverage Operational Strip Ratio5.9:1Design Milling Rate1.75 MtpaAverage Gold Grade1.89 g/tGold Recovery91.9%Average Gold Production96,700 oz/yrLOM Gold Production (10.4 years)1,006,000 ozAverage Operating CostUS$46.2m/yrLOM Operating CostUS$477 /oz Gold
7 Additional Inferred Resource in-pit Resource & ReserveApril 2010 ResourceResource CategoryOreGoldMolybdenumMtg/tM OzppmM lbsMeasured9.91.890.6062613.7Indicated5.41.740.303874.6Inferred10.01.590.513277.2Total25.41.4245725.6Reserve CategoryOreGoldMolybdenumMtg/tM OzppmM lbsProven8.71.940.5465712.6Probable3.91.890.244063.52P Reserves1.930.7857916.1Additional Inferred Resource in-pit5.51.810.323384.1Resource estimate was updated in April 2010 to include all 741 drill holes completed (104,718m) and assays returned by the end of February 2010The combined M&I resource of 900,000oz gold now comprises 63% of the totalIn addition to the 2P reserves the Company has included a further 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
8 Project DescriptionThe 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.
9 MineOpen pit area - 600m x 1,500m1.75 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 MethodsConventional open cut, excavator and truck operation conventional backhoe configured excavator and truck based open pit operationMining fleet consisting of 7x91t haul trucks, 2 excavators and associate ancillary fleet.Mining EstimatesDiluted head grade 1.89g/t Au, 505ppm Mo5% mining loss allowedPit optimised using Whittle modellingAv Production - 96,700 oz AuOperating strip ratio of 5.9:1Mining MethodsOpen cut, truck and shovel operationOre crushed adjacent to pit and conveyed to process plantWaste rock stored in pit where possibleTailings dam site within project boundary
10 Process Plant Ore contains free and refractory gold and molybdenite Gold circuit demonstrated by extensive testworkGravity recovery – 30% of goldFlotation to gold rich concentrateBiox® to oxidise sulphidesCarbon in leach to recover gold doréCyanide destruct and tailing neutralisationTailings stored in purpose constructed facilityMolybdenum circuitMethod to recover moly dissolved during the BIOX® process being developedTestwork undertaken by Metcon, Burnie, Ammtec, Optimet, Goldfields and SGS (SA) laboratories
12 ABIOX® ProcessThe 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 treatmentOperating 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
13 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 TailingsTailings 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 WaterWater 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.
14 Water SupplyWater usage will be effectively managed to minimise the amount of water drawn from local rivers and to maximise the water returned from the TSF.Potable water will be sourced from the Lintungan River and this will be supplied to the Runruno Village, Camp and Process Plant.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.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.
15 Off-Site Infrastructure Access RoadImprovement of the Quezon to Runruno Access Road.Power SupplyEstimated 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.
16 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 planningAssessment is technically sound and the proposed mitigation measures are effectiveSocial acceptability based on informed public participationECC 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.
17 Environmental Management Program Rehabilitation/Slope stabilization of Completed Drill PadsRegular Water Quality MonitoringReforestation ProgramWeather MonitoringWaste Management ProgramRegular Air Quality Monitoring
18 Use of Coconut Fiber Matting for Slope Stabilization Installation of cocofiber matting and soil filled bags in open slopesGrowth of planted napier grass
19 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)
20 ENVIRONMENTAL PROTECTION AND ENHANCEMENT PROGRAM (EPEP) EPEP and FMRDPENVIRONMENTAL 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 managementFINAL 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; andensure that sustainable alternative livelihoods are established and left behind to the host and neighboring communities
21 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; andProtection and respect of socio-cultural valuesOther components of the SDMP are the following:Development of mining technology and geo-sciencesPromotion of public awareness and education on mining technology and geosciences (ICE Program)
22 FCF Community Development Education and TrainingHealth and NutritionSkills Development and Capability BuildingBasic Infrastructure DevelopmentEmployment and LivelihoodInformation Education and CommunicationThe 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.
25 Information, Communication and Education (ICE) Project Update with the Barang Council, local community members and project employees.
26 Milestones Project Timetable Achievements Forthcoming Scoping Study Completed in November 2008-FTAA awarded for Runruno ProjectSigned by order of the PresidentIndependent Resource verificationCompleted in November 2009Environmental Compliance Certificate (ECC)Granted in February 2010Feasibility StudyDelivered in May 2010Step out Drilling & Molybdenum RecoveryUnderwayPermitting – SDMP, EPEP, FMRDPDeclaration of Mine Feasibility (DMF)Q1 2011Commence Project ConstructionPotential Commence OperationsQ4 2012