Avocet Mining PLC Prospectus December 2011

Avocet Mining PLC
West African Projects
4.14.2 Crushing & Conveying .................................................................................................. 76
4.14.3 Grinding ........................................................................................................................ 76
4.14.4 Leaching and Adsorption .............................................................................................. 76
4.14.5 Elution and Acid Wash.................................................................................................. 76
4.14.6 Carbon Regeneration ................................................................................................... 77
4.14.7 Electro‐winning and Smelting ...................................................................................... 77
4.14.8 Goldroom Building ....................................................................................................... 77
4.14.9 Tailings Discharge and Storage ..................................................................................... 77
4.15 Project Infrastructure .......................................................................................................... 78
4.15.1 Electrical Power ............................................................................................................ 78
4.15.2 Diesel Storage ............................................................................................................... 78
4.15.3 Maintenance Shops ...................................................................................................... 78
4.15.4 Camp Accommodations ............................................................................................... 79
4.15.5 Process Water .............................................................................................................. 79
4.16 Market Studies and Contracts ............................................................................................. 80
4.17 Environmental Studies, Permitting, and Social or Community Impact ............................... 82
4.17.1 Environmental Permitting ............................................................................................ 82
4.17.2 Environmental Management and Waste Disposal ....................................................... 82
4.17.3 Environmental Training ................................................................................................ 82
4.17.4 Environmental monitoring ........................................................................................... 83
4.17.5 Waste management ..................................................................................................... 83
4.17.6 Emergency Planning ..................................................................................................... 83
4.17.7 Cyanide ......................................................................................................................... 83
4.17.8 Social and Community Aspects .................................................................................... 84
4.17.9 Health and Safety ......................................................................................................... 85
4.17.10 Mine Closure ................................................................................................................ 85
4.18 Capital and Operating Costs ................................................................................................ 86
4.18.1 Capital Costs ................................................................................................................. 86
4.18.2 Operating Costs ............................................................................................................ 88
4.19 Economic Analysis ............................................................................................................... 88
4.19.1 Key assumptions ........................................................................................................... 88
4.19.1.1 Valuation basis ......................................................................................................... 88
4.19.1.2 Gold price ................................................................................................................. 88
4.19.1.3 Operating costs ........................................................................................................ 89
4.19.1.4 Capital costs ............................................................................................................. 89
4.19.1.5 Inata mine life .......................................................................................................... 89
4.19.1.6 Resource valuation................................................................................................... 89
4.19.1.7 Other key parameters .............................................................................................. 89
4.19.1.8 Valuation .................................................................................................................. 90
4.19.1.8 Sensitivity Analysis (operation only excludes resources) ...................................... 90
4.20 Adjacent Properties ............................................................................................................. 91
4.21 Other Relevant data and Information ................................................................................. 92
4.21.1 Burkina Faso Mining Law .............................................................................................. 92
4.21.2 Manpower .................................................................................................................... 93
4.21.3 OH&S ............................................................................................................................ 94
4.22 Interpretation and Conclusions ........................................................................................... 94
4.23 Recommendations ............................................................................................................... 95
5 Souma Gold Project .......................................................................................................... 97
5.1 Property description and location ....................................................................................... 97
5.1.1 Mineral Tenure, identification and ownership ................................................................. 98
5.1.2 Royalties, permits and environmental liabilities .............................................................. 98
5.2 Accessibility, Climate, Local Resources, Infrastructure and Physiography .......................... 98
5.3 History ................................................................................................................................. 98
Report No: R253.2011
227
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