NI 43-101 Independent Technical Report Mount ... - Adex Mining Inc.

330 Alison Blvd. 

Fredericton, New Brunswick 

Canada, E3C 0A9 

Telephone: (506) 454-2359 

Facsimile: (506) 454-2355 

NI 43-101 Independent Technical Report 

Mount Pleasant North Zone 

Preliminary Assessment 

Mount Pleasant Property 

Southwestern New Brunswick, Canada 

Effective Date: January 22 nd , 2010 

FINAL REPORT 

PROJECT NUMBER 6526-03 

REVISION: 02 

Prepared By: 

J. Dean Thibault, P. Eng. 

Tim R. McKeen, P. Eng. 

Stephanie M. Scott, P. Eng. 

Trevor Boyd, P. Geo. 

Andrew Hara, P. Eng. 

Thibault & Associates Inc. 



Consultant for Adex Mining Inc. 

Hara Mining Enterprises Inc. 

Prepared For: 

Adex Mining Inc. 

Toronto, Ontario, Canada

NI 43-101 Independent Technical Report 


Preliminary Assessment 

TABLE OF CONTENTS 

SECTION 1.0 SUMMARY ............................................................................................................ 1-1 

1.1 Background ....................................................................................................................... 1-1 

1.2 Geology and Exploration................................................................................................... 1-2 

1.3 Resource Estimate............................................................................................................ 1-2 

1.4 Mining................................................................................................................................ 1-3 

1.5 Processing......................................................................................................................... 1-4 

1.6 Environmental ................................................................................................................... 1-5 

SECTION 2.0 INTRODUCTION ................................................................................................... 2-1 

2.1 Background ....................................................................................................................... 2-1 

2.2 Sources of Information ...................................................................................................... 2-2 

2.3 Scope of Work................................................................................................................... 2-2 

2.4 Disclaimer.......................................................................................................................... 2-2 

SECTION 3.0 RELIANCE ON OTHER EXPERTS ...................................................................... 3-1 

3.1 General.............................................................................................................................. 3-1 

3.2 Geological Studies and Exploration .................................................................................. 3-1 

3.3 Property Description, History and Ownership ................................................................... 3-1 

3.4 Mineralogy, Metallurgical Processing and Waste Treatment............................................ 3-1 

3.5 Product Markets and Value of Products............................................................................ 3-1 

3.6 Environmental Impact and Environmental Planning ......................................................... 3-2 

3.7 Other ................................................................................................................................. 3-2 

SECTION 4.0 PROPERTY DESCRIPTION AND LOCATION .................................................... 4-1 

4.1 Mining Claims and Surface Rights.................................................................................... 4-1 

4.2 Royalties............................................................................................................................ 4-3 

4.3 Permits .............................................................................................................................. 4-3 

SECTION 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND 

PHYSIOGRAPHY......................................................................................................................... 5-1 

5.1 Accessibility....................................................................................................................... 5-1 

5.2 Climate and Physiography ................................................................................................ 5-1 

5.3 Local Resources and Infrastructure .................................................................................. 5-1 

SECTION 6.0 HISTORY............................................................................................................... 6-1 

SECTION 7.0 GEOLOGICAL SETTING...................................................................................... 7-1 

7.1 Regional Geology.............................................................................................................. 7-1 

7.2 Local Geology ................................................................................................................... 7-1 

SECTION 8.0 DEPOSIT TYPES .................................................................................................. 8-1 

8.1 General.............................................................................................................................. 8-1 

8.2 Porphyry Tin-(±Indium) Deposits ...................................................................................... 8-1 

i

SECTION 9.0 MINERALIZATION................................................................................................ 9-1 

9.1 General.............................................................................................................................. 9-1 

9.2 North Zone ........................................................................................................................ 9-1 

SECTION 10.0 EXPLORATION................................................................................................. 10-1 

10.1 General.......................................................................................................................... 10-1 

10.2 Scoping Study of the Fire Tower Zone.......................................................................... 10-2 

SECTION 11.0 DRILLING.......................................................................................................... 11-1 

11.1 General.......................................................................................................................... 11-1 

11.2 Drill Hole Surveying....................................................................................................... 11-1 

SECTION 12.0 SAMPLING METHOD AND APPROACH ........................................................ 12-1 

SECTION 13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY .............................. 13-1 

13.1 General.......................................................................................................................... 13-1 

13.2 WGM Analytical Methods.............................................................................................. 13-2 

SECTION 14.0 DATA VERIFICATION ...................................................................................... 14-1 

14.1 General.......................................................................................................................... 14-1 

14.2 Adex Assay Verification of the 2008 Diamond Drilling.................................................. 14-1 

14.3 Adex Verification of Historical Assay Results (Phase I)................................................ 14-1 

14.4 Adex Verification of Historical Assay Results (Phase II)............................................... 14-2 

14.5 WGM Data Corroboration ............................................................................................. 14-4 

SECTION 15.0 ADJACENT PROPERTIES............................................................................... 15-1 

SECTION 16.0 MINERAL PROCESSING AND METALLURGICAL TESTING ....................... 16-1 

SECTION 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATE..................... 17-1 

17.1 General.......................................................................................................................... 17-1 

17.2 Drill Hole Database Used.............................................................................................. 17-3 

17.3 Basic Statistics of Drill Hole Assay Data....................................................................... 17-5 

17.4 Inference of Indium Grades........................................................................................... 17-5 

17.5 Interpretation of the Mineralized Zones......................................................................... 17-6 

17.6 Sample Compositing ..................................................................................................... 17-8 

17.7 Variography ................................................................................................................. 17-15 

17.8 Block Model and Estimation Parameters .................................................................... 17-15 

17.9 Mineral Resources Estimate Statement...................................................................... 17-17 

17.10 Global Mineral Resources Statement ....................................................................... 17-23 

17.11 Definition of High Grade Blocks Within the Deep Tin, Upper Deep Tin, North Adit and 

Lode Deposits .......................................................................................................... 17-24 

17.12 Proposed Estimations of Blocks................................................................................ 17-25 

17.13 Conclusions............................................................................................................... 17-29 

SECTION 18.0 MINING OPERATIONS..................................................................................... 18-1 

18.1 Terms of Reference....................................................................................................... 18-1 

18.2 Sources of Information .................................................................................................. 18-1 

18.3 Reliance on Other Experts ............................................................................................ 18-2 

18.4 Mining Tin-Indium-Zinc Ore from the Deep Tin Zone (“DTZ”) Ore Lodes and Lenses. 18-2 

ii

18.5 Waste Rock Handling and Storage............................................................................... 18-6 

18.6 Exclusions ..................................................................................................................... 18-6 

SECTION 19.0 PROCESSING OPTIONS AND RECOVERABILITY ....................................... 19-1 

19.1 Overview of Process Technology.................................................................................. 19-1 

19.2 Process Description ...................................................................................................... 19-2 

19.3 Design Criteria............................................................................................................. 19-10 

SECTION 20.0 SITE INFRASTRUCTURE ................................................................................ 20-1 

20.1 Overview ....................................................................................................................... 20-1 

20.2 Equipment Layout ......................................................................................................... 20-1 

20.3 Water Supply................................................................................................................. 20-2 

20.4 Tailings Disposal ........................................................................................................... 20-2 

20.5 Power Supply and Distribution ...................................................................................... 20-2 

20.6 Process Control System................................................................................................ 20-2 

20.7 Workshops and Warehouses ........................................................................................ 20-2 

20.8 Office Facilities .............................................................................................................. 20-2 

20.9 Communications............................................................................................................ 20-3 

SECTION 21.0 ENVIRONMENTAL CONSIDERATIONS ......................................................... 21-1 

21.1 Background ................................................................................................................... 21-1 

21.2 Related Environmental Studies..................................................................................... 21-2 

21.3 Environmental Impact and Management ...................................................................... 21-3 

21.4 Permits .......................................................................................................................... 21-4 

21.5 Reclamation Plan .......................................................................................................... 21-8 

SECTION 22.0 MARKETS......................................................................................................... 22-1 

22.1 Tin Concentrate............................................................................................................. 22-1 

22.2 Tin Chloride ................................................................................................................... 22-5 

22.3 Indium Bearing Zinc Concentrate.................................................................................. 22-7 

22.4 High Grade Zinc Metal ................................................................................................ 22-12 

22.5 Indium Sponge ............................................................................................................ 22-13 

SECTION 23.0 CONTRACTS .................................................................................................... 23-1 

SECTION 24.0 TAXES............................................................................................................... 24-1 

24.1 Federal and Provincial Income Tax............................................................................... 24-1 

24.2 Mining Tax..................................................................................................................... 24-1 

SECTION 25.0 CAPITAL COST ESTIMATES .......................................................................... 25-1 

25.1 Capital Cost Estimate Basis.......................................................................................... 25-1 

25.2 Capital Cost Estimate Summary ................................................................................... 25-1 

25.3 Direct Cost..................................................................................................................... 25-4 

25.4 Indirect Cost .................................................................................................................. 25-8 

25.5 Contingency .................................................................................................................. 25-8 

25.6 Sustaining, Deferred and Working Capital Costs.......................................................... 25-8 

25.7 Capital Cost Qualifications and Exclusions................................................................... 25-9 

SECTION 26.0 OPERATING COST ESTIMATES .................................................................... 26-1 

26.1 Operating Cost Estimate Basis ..................................................................................... 26-1 

iii

26.2 Operating Cost Estimate Summary............................................................................... 26-1 

26.3 Mine Operating Cost ..................................................................................................... 26-2 

26.4 Processing Operating Cost ........................................................................................... 26-2 

26.5 Site Administration Cost................................................................................................ 26-8 

26.6 Operating Cost Qualifications and Exclusions ............................................................ 26-10 

SECTION 27.0 ECONOMIC ANALYSIS.................................................................................... 27-1 

27.1 Cash Flow Parameters.................................................................................................. 27-1 

27.2 Product Revenue........................................................................................................... 27-2 

27.3 Base Case Economic Results....................................................................................... 27-5 

27.4 Sensitivity Analysis........................................................................................................ 27-7 

SECTION 28.0 PROJECT EXECUTION.................................................................................... 28-1 

28.1 General.......................................................................................................................... 28-1 

28.2 Existing Site Development ............................................................................................ 28-1 

28.3 Process Technology Development Plan ....................................................................... 28-2 

28.4 Project Schedule ........................................................................................................... 28-2 

SECTION 29.0 INTERPRETATION AND CONCLUSIONS ...................................................... 29-1 

29.1 General.......................................................................................................................... 29-1 

29.2 Geology ......................................................................................................................... 29-1 

29.3 Mining............................................................................................................................ 29-1 

29.4 Processing..................................................................................................................... 29-1 

29.5 Environmental ............................................................................................................... 29-2 

29.6 Economic Analysis ........................................................................................................ 29-2 

SECTION 30.0 RECOMMENDATIONS..................................................................................... 30-1 

30.1 Process Development ................................................................................................... 30-1 

30.2 Geology ......................................................................................................................... 30-1 

30.3 Mining............................................................................................................................ 30-1 

SECTION 31.0 REFERENCES .................................................................................................. 31-1 

SECTION 32.0 DATE AND SIGNATURE PAGE AND CERTIFICATES OF QUALIFIED 

PERSONS .................................................................................................................................. 32-1 

32.1 Date and Signature Page.............................................................................................. 32-1 

32.2 Certificates of Qualified Persons................................................................................... 32-2 

LIST OF TABLES 

Table 1-1: North Zone A and B Type Blocks Estimate ........................................................... 1-3 

Table 1-2: Economic Model Discounted Cash Flow Summary Results ................................. 1-6 

Table 2-1: Qualified Persons and Areas of Responsibility for the Preliminary 

Assessment ........................................................................................................... 2-2 

Table 17-1: Mount Pleasant North Zone 2009 NI 43-101 Compliant Resource Estimates .... 17-1 

Table 17-2: Basic Statistics of Drill Hole Assays .................................................................... 17-5 

Table 17-3: Basic Statistics of the 3m Composites in the DTZ Zone ..................................... 17-9 

Table 17-4: Basic Statistics of the 3m Composites in the DTZ-UP Zone ............................. 17-10 

Table 17-5: Basic Statistics of the 3m Composites in the #4 Tin Lode Zone ....................... 17-11 

iv

Table 17-6: Basic Statistics of the 3m Composites in the #1-3 Tin Lode Zone .................... 17-12 

Table 17-7: Basic Statistics of the 3m Composites in the #5 Tin Lode Zone ....................... 17-13 

Table 17-8: Basic Statistics of the 3m Composites in the N-Adit Zone ................................ 17-14 

Table 17-9: Block Model Geometry ...................................................................................... 17-16 

Table 17-10: Proportion of Samples Assayed for Indium per Zone........................................ 17-17 

Table 17-11: Indicated Mineral Resources of the Deep Tin Zone .......................................... 17-18 

Table 17-12: Sensitivity of the Indicated Deep Tin Zone Resource to Variable Sn 

Equivalent Cut-Off Grade .................................................................................. 17-18 

Table 17-13: Indicated Mineral Resources of the Upper Deep Tin Zone ............................... 17-19 

Table 17-14: Sensitivity of the Indicated Upper Deep Tin Zone Resources to Tin 

Equivalent Cut-Off Grade .................................................................................. 17-19 

Table 17-15: Inferred Mineral Resources of the #5 Tin Lode ................................................. 17-20 

Table 17-16: Sensitivity of the Inferred #5 Tin Lode Resources to Tin Equivalent Cut-Off 

Grade ................................................................................................................. 17-20 

Table 17-17: Inferred Mineral Resources of the North Adit Zone.......................................... 17-21 

Table 17-18: Sensitivity of the Inferred North Adit Zone Resources to Tin Equivalent Cut- 

Off Grade ........................................................................................................... 17-21 

Table 17-19: Indicated Mineral Resources of the #4 Tin Lode ............................................... 17-22 

Table 17-20: Sensitivity of the Indicated #4 Tin Lode Resources to Tin Equivalent Grade ... 17-22 

Table 17-21: Inferred Mineral Resources of the #1 to #3 Tin Lodes ...................................... 17-22 

Table 17-22: Sensitivity of the Inferred #1 to #3 Tin Lode Resources to Tin Equivalent Cut- 

Off Grade ........................................................................................................... 17-23 

Table 17-23: Global Classified Mineral Resources per Zone ................................................. 17-24 

Table 17-24: A and B Type Blocks Estimate .......................................................................... 17-26 

Table 17-25: Summary of Clarke and Associates 1964 Resource estimate for Mineralized 

Blocks in the Vicinity of the 600 Adit Workings.................................................. 17-29 

Table 18-1: Mine Physical Data for 850 tonne/day Operation ................................................ 18-3 

Table 18-2: Manpower Requirements for 850 tonne/day Ore Production from DTZ and 

Upper DTZ ........................................................................................................... 18-5 

Table 18-3: Summary of Mobile Equipment Purchase Cost Estimates for 850 tonne/day 

Ore Production..................................................................................................... 18-6 

Table 18-4: Summary of Mobile Equipment Rental Cost Estimates for 850 tonne/day Ore 

Production............................................................................................................ 18-6 

Table 18-5: Pre-production Capital Excavations Works for 850 tonne/day Ore Production... 18-7 

Table 18-6: Pre-production Capital Costs Summary for 850 tonne/day Ore Production........ 18-7 

Table 18-7: Operating Cost Summary for 850 tonne/day Ore Production.............................. 18-8 

Table 18-8: Summary of Manpower Cost Estimates for 850 tonne/day Ore Production 

Rate ..................................................................................................................... 18-1 

Table 18-9: Summary of Equipment Maintenance Costs ....................................................... 18-2 

Table 18-10: Summary of Diesel Fuel Cost .............................................................................. 18-2 

Table 18-11: Summary of Electricity Cost for 850 tonne/day Ore Production Rate ................. 18-3 

Table 18-12: Mine Consumables and Miscellaneous Operating Costs.................................... 18-3 

Table 18-13: Summary of Ventilation Air Volumes for 850 tonne/day Ore Production Rate.... 18-4 

Table 18-14: Proposed Production Schedule for Extraction of Ore from DTZ and Upper 

DTZ ...................................................................................................................... 18-6 

Table 19-1: Summary of Reagent Systems Required for each Main Process Area............... 19-9 

Table 19-2: Ore Characteristics and Mill Throughput Design Criteria .................................. 19-10 

Table 19-3: Ore Storage and Crushing Circuit Design Criteria............................................. 19-11 

Table 19-4: Grinding and Desliming Circuit Design Criteria ................................................. 19-12 

v

Table 19-5: Magnetic Separation Circuit Design Criteria...................................................... 19-13 

Table 19-6: Zinc Flotation Circuit Design Criteria ................................................................. 19-13 

Table 19-7: Arsenic Flotation Circuit Design Criteria............................................................ 19-14 

Table 19-8: Tin Flotation and Gravity Separation Circuit Design Criteria............................. 19-15 

Table 19-9: Tin Chloride Production Circuit Design Criteria ................................................. 19-17 

Table 19-10: Indium and Zinc Hydromet Circuit Design Criteria ............................................ 19-18 

Table 19-11: Zinc Electrowinning Circuit Design Criteria ....................................................... 19-22 

Table 19-12: Indium Sponge Cementation Circuit Design Criteria......................................... 19-23 

Table 19-13: Reagent Systems Design Criteria...................................................................... 19-24 

Table 19-14: Process Utility Systems Design Criteria ............................................................ 19-25 

Table 19-15: Tailings and Wastewater Treatment Systems Design Criteria .......................... 19-25 

Table 21-1: MMER Authorized Limits of Deleterious Substances.......................................... 21-8 

Table 22-1: Tin Concentrate Product Grade Estimate Used for Preliminary Assessment ..... 22-1 

Table 22-2: Typical Product Specifications for Tin Chloride Anhydrous................................. 22-6 

Table 22-3: Zinc Concentrate Product Grade Estimate Used for Preliminary Assessment ... 22-7 

Table 22-4: LME Specifications for Special High Grade Zinc Metal..................................... 22-13 

Table 24-1: Federal and Provincial Income Tax Rates........................................................... 24-1 

Table 25-1: Capital Cost Breakdown Summary for Different North Zone Processing 

Options.................................................................................................................... 25-2 

Table 25-2: Distribution of Process Equipment Cost by Process Area For North Zone 

Processing Options.............................................................................................. 25-5 

Table 26-1: Operating Cost Breakdown Summary for Different North Zone Processing 

Options.................................................................................................................... 26-1 

Table 26-2: Breakdown of Processing Operating Cost........................................................... 26-2 

Table 26-3: Number of Employees Required for Processing Plant Operation ....................... 26-6 

Table 26-4: Breakdown of Site Administration Operating Cost .............................................. 26-9 

Table 26-5: Number of Employees Required for Site Administration ..................................... 26-9 

Table 27-1: Cash Flow Financial Model Parameter Summary ............................................... 27-1 

Table 27-2: Product Revenue Summary For All Production Options ..................................... 27-2 

Table 27-3: Tin Smelter Schedule Terms For Tin Concentrate Revenue Calculations.......... 27-3 

Table 27-4: Zinc Smelter Schedule Terms For Zinc Concentrate Revenue Calculations ...... 27-4 

Table 27-5: Indium Refining Terms For Indium Sponge Revenue Calculations..................... 27-4 

Table 27-6: Summary of Base Case Cash Flow Economic Model Results............................ 27-5 

LIST OF FIGURES 

Figure 4-1: Mount Pleasant Property Location Map ................................................................ 4-1 

Figure 4-2: Mount Pleasant Property Claim Map..................................................................... 4-2 

Figure 7-1: Regional Geology in Area of Mount Pleasant, New Brunswick............................. 7-1 

Figure 7-2: Local Geology of Mount Pleasant Property ........................................................... 7-2 

Figure 7-3: Mount Pleasant Mine Site Geology and Drill Holes............................................... 7-4 

Figure 9-1: Representative Cross-section of Mount Pleasant Mineralized Zones................... 9-2 

Figure 9-2: Geological Interpretation of the North Zone Deposits ........................................... 9-3 

Figure 17-1: Global Plan View Showing Drill Hole Traces....................................................... 17-4 

Figure 17-2: Global Vertical Cross-Section Looking North Showing Drill Hole Traces............ 17-4 

Figure 17-3: Scatter-gram of Zinc Versus Indium Grade Assays ............................................ 17-6 

Figure 17-4: Schematic Plan View of the Geological Interpretation Showing Location of....... 17-7 

vi

Figure 17-5: Vertical Cross-section Looking North of the Geological Interpretation 

Showing Location of Zones ................................................................................. 17-7 

Figure 17-6: Schematic Vertical Cross-section Looking West of the Geological 

Interpretation Showing Location of Zones (Figure Credit: SGS – Geostat) ........ 17-8 

Figure 17-7: Histogram of Drill Hole Sample Lengths.............................................................. 17-9 

Figure 17-8: Indium metal contribution graph in DTZ zone - Grade Capping........................ 17-10 

Figure 17-9: Indium metal contribution graph in DTZ-UP zone - Grade Capping.................. 17-11 

Figure 17-10: Indium Metal Contribution Graph in #4 Tin Lode Zone - Grade Capping.......... 17-12 

Figure 17-11: Indium Metal Contribution Graph in #1-3 Tin Lode Zone - Grade Capping....... 17-13 

Figure 17-12: Indium Metal Contribution Graph in #5 Tin Lode Zone - Grade Capping.......... 17-14 

Figure 17-13: Indium Metal Contribution Graph in N-Adit Zone - Grade Capping................... 17-15 

Figure 17-14: GEMCOM Solids Modelled A and B Type Blocks Located Within the #1 to 

#3, #4 (and #6) Tin Lodes in Relation to the 600 Adit Workings (Longitudinal 

View Looking Southwest) .................................................................................. 17-27 

Figure 17-15: GEMCOM Solids Modelled A and B Type Blocks Located Within the #1 to 

#3, #4 (and #6) Tin Lodes in Relation to the 600 Adit Workings (Oblique View 

Looking Northwest)............................................................................................ 17-27 

Figure 17-16: GEMCOM Solids Modelled A and B Type Blocks Located Within the Deep 

Tin Zone, Upper Deep Tin Zone, #5 Tin Lode and North Adit Sub-Zones in 

Relation to the 600 Adit Workings and the North Zone Decline (Longitudinal 

View Looking West) ........................................................................................... 17-28 

Figure 17-17: GEMCOM Solids Modelled A and B Type Blocks Located Within the Deep 

Tin Zone, Upper Deep Tin Zone, #5 Tin Lode and North Adit Sub-Zones in 

Relation to the 600 Adit Workings and the North Zone Decline (Longitudinal 

View Looking North)........................................................................................... 17-28 

Figure 18-1: DTZ Preproduction Schedule for 850 tonne/day of Ore Production Rate ........... 18-5 

Figure 22-1: World Refined Tin Consumption by Application .................................................. 22-2 

Figure 22-2: World Mine Production of Tin by Country............................................................ 22-3 

Figure 22-3: Dynamic Three-Year Price Chart for Tin ............................................................. 22-5 

Figure 22-4: Global Zinc Consumption by End-Use ................................................................ 22-8 

Figure 22-5: World Mine Production of Zinc by Country .......................................................... 22-9 

Figure 22-6: Dynamic Three Year Price Chart for Zinc Metal................................................ 22-11 

Figure 22-7: Dynamic Three Year Price Chart for 99.99% Indium Ingot ............................... 22-12 

Figure 22-8: Global Indium Consumption by End Use........................................................... 22-14 

Figure 22-9: Global Refined Indium Production by Country .................................................. 22-15 

Figure 25-1: Case A Capital Cost Breakdown for Tin Concentrate and Zinc/Indium 

Concentrate Production ....................................................................................... 25-3 

Figure 25-2: Case B Capital Cost Breakdown for Tin Concentrate, Zinc Metal and Indium 

Sponge Production .............................................................................................. 25-3 

Figure 25-3: Case C Capital Cost Breakdown for Tin Chloride, Zinc Metal and Indium 


Figure 25-4: Case A Equipment Cost Breakdown for Tin Concentrate and Zinc/Indium 


Figure 25-5: Case B Equipment Cost Breakdown for Tin Concentrate, Zinc Metal and 

Indium Sponge Production .................................................................................. 25-6 

Figure 25-6: Case C Equipment Cost Breakdown for Tin Chloride, Zinc Metal and Indium 


Figure 26-1: Case A Processing Operating Cost for Tin Concentrate and Zinc/Indium 


vii

Figure 26-2: Case B Processing Operating Cost for Tin Concentrate, Zinc Metal and 

Indium Sponge Production .................................................................................. 26-3 

Figure 26-3: Case C Processing Operating Cost for Tin Chloride, Zinc Metal and Indium 


Figure 27-1: Cumulative Project Pre-Tax Cash Flow For Different Production Options.......... 27-6 

Figure 27-2: Cumulative Post-Tax Cash Flow For Different Production Options .................... 27-6 

Figure 27-3: Sensitivity Analysis of the Post-Tax Internal Rate of Return for Production 

Case 'A' Relative to Changes in the Commodity Values, Capital and 

Operating Costs................................................................................................... 27-7 


Case 'B' Relative to Changes in the Commodity Values, Capital and 



Case 'C' Relative to Changes in the Commodity Values, Capital and 


Figure 27-6: Sensitivity Analysis of the Post-Tax Net Present Value for Production Case 

'A' Relative to Changes in the Commodity Values, Capital and Operating 

Costs.................................................................................................................. 27-10 


'B' Relative to Changes in the Commodity Values, Capital and Operating 

Costs.................................................................................................................. 27-10 


'B' Relative to Changes in the Commodity Values, Capital and Operating 

Costs.................................................................................................................. 27-11 

LIST OF APPENDICES 

APPENDIX A: Process Block Diagrams and Mass Balance 

APPENDIX B: Process Flowsheets 

APPENDIX C: Process Equipment Layout 

APPENDIX D: Environmental and Permitting 

APPENDIX E: Capital Cost Summaries 

APPENDIX F: Operating Cost Summaries 

APPENDIX G: Economic Analysis 

viii

ABBREVIATIONS AND ACRONYMS 

a - annum 

A - ampere 

acfm - actual cubic feet per minute 

acre-ft/yr - acre-feet per year 

ASTM - American Society for Testing and Materials 

BACT - best available control technology 

o C - degrees Celsius 

CAPEX - capital cost estimate 

CDN$ - Canadian dollars 

CEAA - Canadian Environmental Assessment Act 

CEPA - Canadian Environmental Protection Act 

cfm - cubic feet per minute 

cm - centimetre 

CO - carbon monoxide 

CO 2 - carbon dioxide 

CSB - centralized steam boiler 

d - day 

DAF - dissolved air flotation 

DCF - discounted cash flow 

DFO - Department of Fisheries and Oceans Canada 

dia. - diameter 

DMT - dry metric tonne 

dwt - dead-weight ton 

EIA - environmental impact assessment 

EPA - U.S. Environmental Protection Agency 

o F - degrees Fahrenheit 

FEED - front end engineering development 

FOB - freight-on-board 

fpm - feet per minute 

ft - feet 

ft 3 - cubic feet 

g - gram 

G - Giga (billion) 

gal - gallon 

g/L - grams per litre 

g/mol - grams per mole (M) 

gpm - Imperial gallons per minute 

GHG - greenhouse gas 

g/t - grams per tonne 

ha - hectare 

HFO - heavy fuel oil 

HHV - higher heating value 

hp - horsepower 

hr - hour 

H 2 S - hydrogen sulphide 

in - inch 

in 2 - square inch 

IRR - internal rate of return 

ISBL - inside battery limits 

J - joule 

K - degrees Kelvin 

kg - kilogram 

kJ - kilojoules 

km - kilometres 

ix

km 2 - square kilometres 

kPa - kilopascal 

kVA - kilovolt-amperes 

kW - kilowatt 

kWh - kilowatt-hours 

L - litre 

LCA - life cycle assessment 

LHV - lower heating value 

LME - London Metal Exchange 

LOM - life-of-mine 

LOP - life-of-project 

L/s - litre per second 

L/tonne - litres per tonne 

M - molarity (gmol/L) 

MM - Mega (million) 

m - meters 

m 3 - cubic meters 

m 3 /h - cubic meters per hour 

MASL - meters above sea level 

mg/l - milligram per litre 

mg/m 3 - milligram per cubic metre 

min - minute 

mL - millilitre 

mm - millimetre 

MMER - Metal Mining Effluent Regulation 

mmho/cm - millimhos per centimetre (conductivity) 

mol% - mole percent 

MPa - Megapascals 

MW - megawatt 

MWt - molecular weight 

μ - micron 

µg - microgram 

µg/m 3 - micrograms per cubic metre 

µg/L - micrograms per litre 

µS/cm - micro Siemens per centimetre 

NBDNR - New Brunswick Department of Natural Resources 

NBDOE - New Brunswick Department of Environment 

NBDOT - New Brunswick Department of Transportation 

NI - National Instrument 

Nm 3 /hr - normal cubic meter per hour 

NO x - nitrogen oxides 

NPV - net present value 

NRBPA - net revenue before processing allowance 

NTU - nephelometric turbidity units 

NZ - north zone 

OPEX - operating cost estimate 

OSBL - outside battery limits 

oz - Troy ounce 

PM - particulate matter 

PM 10 - particulate matter less than 10 micron 

ppb - parts per billion 

ppm - parts per million 

ppmv - parts per million on volumetric basis 

psig - pounds per square inch gauge 

RD&D - research, development and demonstration 

R&D - research and development 

x

RO - reverse osmosis 

ROM - run-of-mine 

s - second 

scfm - standard cubic feet per minute 

SEM - scanning electron microscope 

S.G. - specific gravity 

SO 2 - sulfur dioxide 

st - short ton 

TCLP - toxicity characteristic leaching procedure 

TDS - total dissolved solids 

TIA - tailings impoundment area 

TOC - total organic carbon 

ton - short ton (2000 lb) 

tonne (t) - metric tonne (1000 kg) 

tpd - tonne per day 

TSS - total suspended solids 

UCS - unconfined compressive strength 

UF - ultrafiltration 

US$ - United States dollars 

USgpm - United States gallons per minute 

V - volt 

vol% - volume percent 

v/v - volume basis 

W - watt 

wt% - weight percent 

w/w - weight basis 

yr - year 

XRD - X-ray diffraction 

SELECTED UNIT CONVERSIONS 

1 g/mL = 62.34 lb/ft 3 

1 ha = 10,000 m 2 

= 107,639 ft 2 

1 kg = 2.205 lb 

1 kJ = 0.948 Btu 

1 kPa = 0.145 psi 

= 0.001 MPa 

1 m 3 = 35.3 ft 3 

= 264.2 USgal 

= 1.308 yd 3 

1 m 3 /d = 11.008 USgpm 

= 0.0116 L/s 

1 mm = 0.0394 in 

1 MW = 3.412 MMBtu/hr 

1 tonne = 1000 kg 

= 2205 lb 

xi

1 ppm = 1 mg/kg 

= 1 g/t 

1 Nm 3 /hr (@ 273K) = 0.622 scfm (@ 60 o F) 

1 Nm 3 /m 3 (@ 273K) = 5.933 scf/bbl (@ 60 o F) 

1 oz = 31.1035 g 

T( o C) = [T( o F)-32]/1.8 

T(K) = T( o C) + 273 

xii

NI 43-101 Independent Technical Report Rev 02 January 22 nd , 2010 

Mount Pleasant North Zone Preliminary Assessment (Project 6526-03) 1-1 

SECTION 1.0 SUMMARY 

1.1 Background 

Adex Mining Inc. ("Adex") is a Canadian junior mining company with a 100% interest in the Mount 

Pleasant Mine Property ("Mount Pleasant" or the "Property"), which it acquired in 1995. The 

Property is located in Charlotte County in southwestern New Brunswick, Canada and is the site of 

a past-producing tungsten mine with existing surface infrastructure including several buildings 

and a tailings impoundment area. 

The property hosts two distinct mineralized zones, the Fire Tower Zone and the North Zone. The 

Fire Tower Zone is dominated by tungsten-molybdenum mineralization while the North Zone 

mineralization of interest includes tin, zinc and indium. The preliminary assessment as defined 

herein is based solely on the development of the North Zone. 

The entire land package consists of 102 contiguous mining claims covering approximately 1600 

hectares held under prospecting license 14338. Adex holds surface rights covering approximately 

405 hectares within the mining claims that includes the area of the mine site, mill site and tailings 

pond, as well as northern sections of the Fire Tower Zone and North Zone. Third parties including 

the province of New Brunswick and private individuals own the remaining surface rights in the 

claim area. 

The Mount Pleasant Tungsten Mine was developed in the Fire Tower Zone and a concentrator 

and life of mine tailings impoundment area were constructed in a 50/50 joint venture between 

Billiton Exploration Canada Limited and Brunswick Tin Mines. Processing commenced in 1983 

and ceased in 1985 due to cost overruns, metallurgical difficulties and falling tungsten prices. 

During the production period, the mine produced 990,200 tonnes of tungsten ore from the Fire 

Tower Zone. The Property was subsequently placed on care and maintenance and the mine 

workings allowed to flood in 1988. 

Buildings on the site previously used for mineral processing, administration and warehousing are 

in excellent condition and have been well maintained since production ceased in 1985. Major 

processing, mining and mobile equipment has been sold and removed from the site. The tailings 

impoundment area is a major infrastructure asset of the Property. Electrical power from the NB 

Power grid is supplied via a 138 kV transmission line to the mine site substation with existing 

transformers. The substation is regularly maintained by contract electrical personnel. Adex has 

retained 100% ownership of the buildings and equipment remaining on the Property. The 

Property is currently being operated under care and maintenance. 

A National Instrument 43-101 (NI 43-101) compliant technical report was prepared by Watts, 

Griffis and McOuat (WGM) Limited and SGS Geostat in May, 2009 containing a resource 

estimate for the North Zone. Since the filing of this report, Adex has undertaken an internal review 

to identify higher grade blocks within the estimate as a low-tonnage, high-grade production 

scenario. Based on the high grade blocks identified within the North Zone resource estimate, 

Adex Mining Inc. contracted Thibault & Associates Inc. (Fredericton, New Brunswick) to prepare 

and coordinate a preliminary assessment of production options from the Property's North Zone in 

compliance with NI 43-101 standards. 


Applied Process Chemical Engineering



1.2 Geology and Exploration 

The Property is located within the Appalachian Orogen of Atlantic Canada just north of the Saint 

George Batholith. The eastern portion of the Property is dominated by the Mount Pleasant 

Caldera ("MPC") and to the west by Silurian to Devonian age metasedimentary rocks. This 

caldera is comprised of a multi-layered granitic complex (Granite I, II, III) and porphyries and 

breccias of Mississippian age. Porphyry-type tungsten-molybdenum and tin-indium deposits have 

been discovered along the southwestern margin of the MPC. 

Tungsten-molybdenum-(bismuth) deposits have been found beneath Mount Pleasant in both the 

Fire Tower Zone and North Zone. All are hosted within Granite I. Younger indium-bearing tinbase 

metal deposits superimpose the tungsten-molybdenum deposits hosted within Granite II in 

both zones. No significant mineralization has been found within the underlying latest Granite III 

although this granite has not been fully explored. All deposits occur within 450 m from surface. 

The North Zone consists of eight distinct tin-indium-bearing deposits or sub-zones, including 

three Tin Lodes, consisting of the Deep Tin Zone, Upper Deep Tin Zone, Endogranitic Zone, 

North Adit Zone, North W-Mo Zone and the #1-3, #4 and #5 Tin Lodes. Mineralization occurs 

mostly in hydrothermally brecciated and fractured granitic rocks located adjacent to granite and 

porphyry dykes. Tungsten-molybdenum mineralization is also hosted in the North W-Mo Zone, 

which can partially overlap portions of the North Adit Zone which consists of a series of isolated 

tin-indium deposits. 

Since 1954, the majority of the exploration work has focused on the development of the tungstenmolybdenum 

deposits of the Fire Tower Zone and the indium-bearing tin-base metal deposits of 

the North Zone. Work has consisted of underground development, surface and underground 

drilling programs, bulk sampling and metallurgical work to develop a "mineral resource" for the 

Fire Tower Zone and North Zone deposits. Historically, 1,330 diamond drill holes totalling 

158,561 m have been completed, most to delineate the Fire Tower Zone and North Zone. 

WGM prepared two NI 43-101 Technical Reports on the Mount Pleasant Property, which included 

a NI 43-101 and CIM Standards-compliant Mineral Resource estimates of the Fire Tower Zone, 

filed on SEDAR in June, 2006 and December, 2008. 

Throughout 2008, ADEX completed a two-phase 47 hole definition diamond drilling program 

totalling 13,300 m to test both the Fire Tower Zone and North Zone mineralization. Thirty-six 

holes for a total of 8,859 m were drilled on the North Zone. The drill program was also carried out 

to collect fresh drill core for metallurgical bench and mineralogical testing. Based upon this 

program, WGM and SGS Geostat completed a report which consisted of an independent NI 43- 

101 technical review and mineral resource estimation for the eight sub-zones that make up the 

tin-indium-zinc North Zone and filed on SEDAR in May, 2009. 

1.3 Resource Estimate 

For this preliminary economic assessment, 97 high grade tin-indium-zinc blocks of mineralization 

were defined within those NI 43-101 reviewed sub-zones of the North Zone that are located from 

the surface to a depth of 250 metres (at the 990 level). The blocks were separated into 58 "A- 

Type" tin-indium-zinc-copper and 39 "B-Type" indium-tin-zinc mineralized blocks. The high grade 

pods and shoots that make up the blocks were identified and compiled on sections and 





subsequently modelled into GEMCOM solid models. The estimated in-situ undiluted tonnages 

and metal compositions of the A- and B-Type Blocks are listed in Table 1-1. 

SUB-ZONE 

Table 1-1: North Zone A and B Type Blocks Estimate 

NO. 

BLOCKS 

TONNAGE 

[2,3] 

%Sn g/t In %Zn %Cu %Pb %As %Bi %WO 3 %Mo 

INDICATED RESOURCE 

A-TYPE BLOCKS 

#4 Tin Lode 2 129,000 0.58 153[1] 1.85 0.19 NA NA NA NA NA 

DTZ and Upper DTZ 33 1,338,000 0.94 229 1.89 0.27 0.05 1.62 0.09 0.10 BD 

B-TYPE BLOCKS 


DTZ and Upper DTZ 16 391,000 0.25 179 2.12 0.16 0.03 1.31 0.07 0.16 BD 

Total Indicated 54 1,894,000 0.76 212 1.93 0.24 NA NA NA NA BD 

INFERRED RESOURCE 

A-TYPE BLOCKS 

#1-3 Tin Lodes 12 168,000 0.79 140[1] 2.45 0.30 NA NA NA NA NA 

#5 Tin Lode 2 36,000 1.55 134 2.39 0.25 0.12 4.50 0.04 0.13 BD 

North Adit 9 320,000 1.13 32 0.25 0.19 0.04 2.88 0.12 0.14 BD 

B-TYPE BLOCKS 


#5 Tin Lode 8 172,000 0.29 428 3.80 0.24 0.04 1.59 0.04 0.17 BD 

North Adit 8 165,000 0.62 145 1.68 0.25 0.08 1.64 0.10 0.09 BD 

Total Inferred 43 1,000,000 0.74 154 1.82 0.22 NA NA NA NA NA 

Table Notes: 

[1] Estimate 

[2] Tonnages are rounded. 

[3] Mineral resources that are not mineral reserves do not have demonstrated economic viability. 

BD = below detection limit 

NA = not analysed 

The results compare favourably to the 0.7 Sn equivalent cut-off tonnages and grades derived 

from the sensitivity analysis reported in the independent NI 43-101 mineral resources estimation 

of the Sn-In-Zn North Zone deposits completed by WGM and SGS-Geostat in May, 2009. It is 

recommended that additional diamond drilling, surface sampling and additional indium analyses 

of historical core be completed to ensure that #1-3 Tin Lode, North Adit and #5 Tin Lode can be 

upgraded from a NI 43-101 inferred resource level to an indicated resource level. 

1.4 Mining 

The DTZ ore lodes and lenses are mostly formed as vertical and sub-vertical elongated narrow 

bodies closely spaced and surrounded by lower grade material and waste rock. The lower grade 

material and waste rock gaps between ore lenses will be used as natural pillars for maintaining 

stope wall stability during mining. 

A number of the ore lodes and lenses lie close to the surface with a few protruding to the surface. 

Series of these lodes and lenses stretch from near surface down to a depth of approximately 250 





meters. In horizontal plane the lodes and lenses occupy an area measuring approximately 300 

meters east-west and 400 meters north-south and dip predominantly towards the south. 

It appears that a majority of the lodes and lenses can be mined as single independent stopes 

being vertically interconnected by sublevel cross-cuts. The stopes would predominantly be mined 

from the top down while maintaining temporary ore rib and sill pillars in close proximity to the 

sublevels. Most of these stopes would be left open after completion of mining. Some of these 

mined out stopes would be backfilled with waste rock generated from the ongoing mine 

development works. 

Based on a review of historical mining records from the 600 Adit and Fire Tower Zone, the rock 

condition environment is expected to be good. 

Stopes would be shaped irregularly based on the ore grade contacts. A relatively small number of 

rib and sill pillars would be left in situ for stability of the mined-out lodes and lenses. These pillars, 

in most cases, would consist of lower grade material. 

A dilution factor of 10% at 0.17% tin, 96 ppm indium and 0.95% zinc was estimated for the 

perimeters of the minable lodes and lenses due to a relatively rich mineralized halo around the 

lodes and lenses selected for mining. An overall mining extraction rate for the selected mining 

method and configuration of the lodes and lenses can be expected to exceed 85%. 

Based on preliminary assessment of the proposed mine plan, the mineable resources were 

assumed to be 2,706,432 tonnes at 0.71% tin, 1.82% zinc and 183 gram per tonne of indium at a 

10% dilution factor with 85% mining extraction. 

The study assumed the mining schedule to be based on 261 operating days a year with the 

mining crew working three 8 hour shifts per day 5 days per week. 

Total pre-production capital costs for constructing the 850 tpd Adex tin-indium-zinc mine is 

estimated at CDN$16,231,166 including 15% contingency. The capital cost estimates are at -10% 

and +35% accuracy levels. The majority of the capital costs are associated with the preproduction 

excavation works. 

The operating cost for mining the tin-indium-zinc ore from the DTZ and Upper DTZ is estimated at 

CDN$30.02 per tonne for the 850 tpd production rate. The above cost is estimated from the first 

principle rule and does not include contingency. 

1.5 Processing 

The study identifies conceptual metallurgical processes for the production of i) tin and zinc-indium 

concentrate, ii) indium sponge and zinc metal and iii) tin chloride. The preliminary technical and 

economic assessment was not based on metallurgical testing of a representative sample of runof-mine 

ore relative to the proposed mine plan. The conceptual design of the metallurgical 

process was based on technical knowledge gained from a review of historical metallurgical test 

programs completed on ore from the North Zone and published technical papers. The unit 

operations for concentration are typical of other tin and base metal metallurgical operations and 

metallurgical test programs on a representative ore sample will be required to confirm the 

proposed process design. 





Three production options were compared in the preliminary assessment: 

Case A: 

Case B: 

Case C: 

Concentrator plant for production of tin concentrate and indium-bearing zinc 

concentrate. 

The concentrator plant of Case A plus a hydrometallurgical plant for production of 

tin concentrate, indium sponge and zinc metal. 

The concentrator/hydromet plant of Case B plus an add-on pyrometallurgical 

plant for production of tin chloride, indium sponge and zinc metal. 

1.6 Environmental 

The study identifies the process technology and a conceptual management plan for tailings 

treatment, wastewater treatment (including wastewater generated by hydrometallurgical or 

pyrometallurgical operations) and tailings disposal. The overall plan for tailings management and 

the proposed technology for wastewater treatment is based on compliance with Federal and 

Provincial environmental guidelines. Bench scale and pilot testing of the tailings and wastewater 

treatment process as defined herein is recommended as an integral part of the metallurgical test 

programs to confirm compliance with environmental guidelines. 

1.7 Economic Assessment 

The preliminary assessment and economic analysis contained herein are preliminary in nature 

and contain inferred mineral resources that are considered too speculative geologically to have 

economic considerations applied to them that would enable them to be categorized as mineral 

reserves and there is no certainty that the results of the preliminary assessment will be realized 

with more detailed work. Mineral resources that are not mineral reserves do not have 

demonstrated economic viability. 

The preliminary assessment of the project economics was based on a processing rate of 850 

tonne/day run-of-mine ore and a 10 year project life. The pre-production capital cost for the 

processing plant includes a blend of new and used processing equipment, and the accuracy is 

considered to be within -10% to +35%. Revenue was based on 3-year trailing average metals 

pricing up to August, 2009 and standard smelter terms for treatment charges. The economic 

assessment for Case A assumes a pay factor of 15% of the contained indium value in the zinc 

concentrate and further work is required to better define an indium pay factor based on smelter 

contract negotiations. 

A summary of the discounted cash flow assessment of the three processing options is presented 

in Table 1-2. Case A, with the lowest capital investment for production of concentrates only, 

provides a pre-tax internal rate of return (IRR) of 23.49%, while the added capital investment to 

produce indium sponge and zinc metal in Case B improves the pre-tax IRR to 28.87%. For Case 

C, a substantial increase in capital investment over Case B is required, only to yield a lower pretax 

IRR. This, in combination with higher risk associated with marketing of tin chloride in 

specialized markets, provides little incentive to further pursue Case C for production of tin 

chloride. 





Table 1-2: Economic Model Discounted Cash Flow Summary Results 

PARAMETER CASE A CASE B CASE C 

Tin Concentrate, 

Zinc/Indium 

Concentrate 


Zinc Metal, 

Indium Sponge 

Tin Dichloride, 

Zinc Metal, 

Indium Sponge 

Pre-production Capital Investment (Mine and Process) $41,170,456 $71,104,058 $90,128,610 

Total Operating Cost (Mine, Process, Administration) $63.58/tonne $82.19/tonne $109.26/tonne 

Pre-tax Financials 

Cumulative Cash Flow Life of Project 

Net Present Value, NPV (8% discount) 

Internal Rate of Return, IRR 

Payback Period (years) 

$74,628,040 

$32,777,842 

23.49% 

4.26 

$167,648,629 

$79,897,754 

28.87% 

3.46 

$200,091,547 

$93,411,456 

27.37% 

3.65 

Table Notes: 

[1] All costs are in Canadian Dollars. 

The initial technical and economic assessment has concluded that the production of tin 

concentrate and zinc-indium concentrate (Case A) and production of tin concentrate, indium 

sponge and zinc metal (Case B) using the conceptual process technology identified by the study 

are potentially viable development concepts for processing of ore from the North Zone. Further 

development of the process technology and the assessment of revenue potential from either 

concentrates (Case A) or added value products (Case B) will dictate the final selection of the 

metallurgical process for subsequent feasibility studies. It is recommended that bench scale 

testing and pilot programs be conducted to better define the metallurgical process both for the 

concentrate production and the hydrometallurgical process for zinc and indium production. 





SECTION 2.0 INTRODUCTION 


Adex Mining Inc. ("Adex") is a Canadian junior mining company listed on the TSX Venture 

exchange under the symbol "ADE". Adex owns a 100% interest in the Mount Pleasant Mine 

Property ("Mount Pleasant" or the "Property"), which it acquired in 1995. The Property is located 

in southwestern New Brunswick, Canada and is the site of a past-producing tungsten mine with 

existing surface infrastructure including several buildings and a tailings impoundment area. 

The mineral resources estimates section (Section 17.0) repeats, for completeness, the NI 43-101 

resource estimation for the North Zone originally filed on SEDAR in May 2009. It also includes an 

internal review, undertaken on the geology and mineral resources of the Mount Pleasant tinindium-zinc-copper 

mineralization of the North Zone, with focus on the identification and 

estimation of high-grade primary tin and indium-zinc blocks of mineralization located within the 

Deep Tin ("DTZ"), Upper Deep Tin ("DTZ-UP"), North Adit ("N. Adit"), #1-3 Tin Lode, #4 Tin Lode 

and #5 Tin Lode sub-zone deposits. The aforementioned lode deposits are of interest because of 

their proximity to the surface (less than 80 metres depth) and to the underground workings of the 

North Zone 600 Adit which was developed during the 1960s. The DTZ, DTZ-UP and N. Adit 

deposits are also a focus of this review because of their relative proximity to the surface (less 

than 250 metres depth) and overall higher tin and indium grades in comparison to the average 

grades of the North Zone. These factors enhance the economic attractiveness of selectively 

exploiting these sub-zones based upon a low-tonnage, high-grade production scenario. The 

Endogranitic sub-zone, which is situated between 250 to 400 metres depth in the North Zone is 

not included in this review. 

The review of the high-grade blocks reported in Section 17.0 is defined within the boundaries of 

the DTZ, DTZ-UP, N. Adit, #1-3 Tin Lode, #4 Tin Lode and #5 Tin Lode sub-zone deposits in the 

NI 43-101 assessment. These blocks are re-delineations of resource boundaries based upon 

higher cut-off grades and thus do not represent any additional newly outlined mineralized material 

or an increase in the resource estimation. 

Based on the high grade blocks identified within the North Zone resource estimate, Adex Mining 

Inc. contracted Thibault & Associates Inc. (Fredericton, New Brunswick) to prepare and 

coordinate a preliminary assessment of production options from the Property's North Zone. Adex 

further requested that Thibault & Associates Inc. prepare an Independent Technical Report on the 

preliminary assessment compliant with NI 43-101. The objective of the preliminary assessment 

was to develop conceptual processing options and compare the preliminary economic 

assessment for three production options: 

 

 

 

Case A: Production of tin concentrate and indium-bearing zinc concentrate 

Case B: Production of tin concentrate, indium sponge, and zinc metal 

Case C: Production of tin chloride, indium sponge, and zinc metal. 

An economic model was developed and a range of run-of-mine ore processing rates in the range 

of 250 to 1000 tonne/day were investigated. Based on the available resources, it was determined 

that the best economy of scale was achieved for a processing rate of 850 tonne/day run-of-mine 

ore and therefore the results of this preliminary assessment only include a processing rate of 850 

tonne/day run-of-mine ore. 





2.2 Sources of Information 

This report has been prepared using information from several previous reports issued on 

resources and metallurgical testing, government reports, internal company reports, and vendor 

quotes. A complete listing of information sources is included in Section 31.0 of the report. The 

report draws heavily on the previously filed an independent NI 43-101 compliant technical report 

on the North Zone by Watts, Griffis and McOuat Limited, entitled “A Technical Review of the 

Mount Pleasant Property, including a Mineral Resource Estimate on the North Zone, 

Southwestern New Brunswick for Adex Mining Inc.”, dated May 6, 2009. 

2.3 Scope of Work 

This report is based on a compilation of the technical contributions from several consultants listed 

in Table 2-1. J. Dean Thibault of Thibault & Associates Inc. was responsible for supervising the 

preparation of the overall Technical Report, but, did not verify the information contained in the 

sections of the report not prepared by Thibault & Associates Inc. and has relied on the qualified 

persons who are responsible for preparation of such sections. 

Each of the qualified persons listed in Table 2-1 completed at least one site visit during the 

project. The scope of work completed by each QP and the relevant sections of the report 

prepared by them are identified in Table 2-1. 

Table 2-1: Qualified Persons and Areas of Responsibility for the Preliminary Assessment 

QUAILIFIED PERSON COMPANY AREA OF RESPONSIBILITY 

RELEVANT 

SECTION 

J. Dean Thibault, P.Eng. 

Stephanie Scott, P.Eng. 

Tim McKeen, P.Eng. 

Trevor Boyd, P.Geo. 

Andrew Hara, P.Eng. 

Thibault & 

Associates Inc. 

Thibault & 


Thibault & 



Hara-Mining 

Enterprises Inc. 

Supervision of preparation of overall technical 

report, mineral processing/metallurgical testing 

and conceptual design, capital and operating 

cost estimates for mineral processing facilities 

and site infrastructure (equipment, mechanical, 

electrical, civil), compilation of overall capital 

and operating costs, economic analysis, 

summary, conclusions and recommendations. 

Report compilation, mineral processing 

conceptual design, environmental 

considerations, markets, contracts 

Introduction, property description, site 

infrastructure, mineral processing conceptual 

design, mineral processing plant layout, taxes 

for economic analysis. 

Geology, exploration, drilling, sampling, mineral 

resource estimates. 

Mining method, mining capital and operating 

cost estimates, mine production and mine life. 

1.1, 1.5, 1.6, 3.0, 

16.0, 25.0, 26.0, 

27.0, 28.0, 29.1, 

29.4, 29.5. 29.6 

and 30.1 

21.0, 22.0, 23.0 

2.0, 4.0, 5.0, 19.0, 

20.0, 24.0 

1.2, 1.3, 7.0 

through 15.0, 17.0, 

29.2 and 30.2 

1.4, 18.0, 29.3 and 

30.3 

2.4 Disclaimer 

The preliminary assessment and economic analysis contained herein are preliminary in nature 

and include inferred mineral resources that are considered too speculative geologically to have 

economic considerations applied to them that would enable them to be categorized as mineral 

reserves and there is no certainty that the results of the preliminary assessment will be realized 

with more detailed work. Mineral resources that are not mineral reserves do not have 

demonstrated economic viability. 





This report was compiled by several qualified persons responsible for the sections as identified in 

Table 2-1. None of the QP's assume responsibility for sections of the report that were prepared 

by other QP's. As identified in Section 3.0, the QP's have relied upon the statements, opinions 

and reports of certain experts in the preparation of this report. The QP's disclaim liability for the 

statements, opinions, and reports of those experts to the extent that they have been relied upon 

in producing the report. 

Adex Mining Inc. is permitted to use and reproduce the report pursuant to its obligations under 

Canadian provincial securities legislation, including filing the report on SEDAR. Except for the 

purposes legislated under provincial securities law, this report or portions thereof are not to be 

used or reproduced for any purpose and any such action would be at that party's sole risk. 

This report is intended to be read as a whole, without omission of sections or appendices, and 

should not be read or relied upon outside of the original context of the Technical Report. The 

professional opinions of the QP's are based on information available at the time of preparation. 

The information, conclusions and recommendations contained herein are consistent with the level 

of accuracy and/or other constraints that are also defined herein. 

A draft copy of the preliminary assessment report has been reviewed by Adex Mining Inc. for 

factual errors. 





SECTION 3.0 RELIANCE ON OTHER EXPERTS 

3.1 General 

In preparation of certain sections of the report, Thibault & Associates Inc. has relied upon a 

variety of reports, opinions and statements of other experts. The extent of reliance on other 

experts is described by this section. 

3.2 Geological Studies and Exploration 

Adex Mining Inc. exploration activities and assessment of geological resources are currently 

being carried out under the supervision of Dr. Trevor Boyd. Mr. Gustaaf Kooiman is a geological 

consultant working under the supervision of Dr. Boyd and was the senior geologist at the Mount 

Pleasant mine during the Billiton operation from 1981 to 1985. Mr. Kooiman has worked on the 

study as defined herein and Thibault & Associates Inc. has relied on information related to 

exploration and the assessment of geological resources as provided by Mr. Kooiman. 

3.3 Property Description, History and Ownership 

Various studies and reports have been completed since 1960 that detail and describe the history 

of the exploration and development of the Fire Tower Zone and the North Zone of the Mount 

Pleasant property. Mr. Gustaaf Kooiman is responsible for the compilation of documents that 

have been used by Watts, Griffis and McOuat in Technical Reports prepared in 2006, 2008 and 

2009. The property description and history is also defined by previous studies completed by 

Billiton Exploration Canada Limited and by documents issued by Canadian Bechtel Limited in the 

early 1960's. Thibault & Associates Inc. has relied on the information contained in other reports 

with respect to compilation of the property description and history. 

For the purpose of this report, the authors have relied on ownership information provided by Adex 

Mining Inc. The authors have not researched property title or mineral rights for the project and 

express no legal opinion as to the ownership status of the property. 

3.4 Mineralogy, Metallurgical Processing and Waste Treatment 

Several metallurgical bench scale and pilot studies have been completed since 1960 by 

CANMET, SGS Lakefield, Cominco Engineering Services, Research and Productivity Council 

(RPC) and Thibault & Associates Inc. on various development options for the Mount Pleasant 

property. In addition to an assessment of the studies completed prior to this report, multiple 

technical publications from various scientific and engineering journals were reviewed by Thibault 

& Associates Inc. to develop a conceptual process flowsheet and cost estimates. 

ADI Limited has completed preliminary treatability testing and provided a concept for mine water 

treatment as of 2008. Thibault & Associates Inc. has relied on the accuracy of these reports and 

technical journals prepared by others. 

3.5 Product Markets and Value of Products 

A detailed study of market trends and product price trends was not completed by a commodity 

marketing specialist. Formal take-off agreements have not been arranged for the sale of the 

products identified by the study. Both quality and quantity of products defined by the study are 





preliminary based on the conceptual process. Test programs to confirm the quality and quantity 

(recoverability) of the products have not been completed at this time and are currently in 

progress. Product specification requirement is based on published information, documents 

purchased from Roskill (Roskill, 2004)) and general discussions with Amalgamet Canada and 

Indium Corporation. The price or value for all products has not been based on definitive 

agreements and source of pricing has been referenced by the study. In this respect, Thibault & 

Associates Inc. has relied on the accuracy of published reports, historic metal pricing data/trends 

and technical journals prepared by others. 

3.6 Environmental Impact and Environmental Planning 

Several studies have been completed over the last three years by Jacques Whitford - Stantec 

including a conceptual reclamation plan study in 2008 for the Fire Tower Zone (as part of the Fire 

Tower Zone Scoping Study completed by Aker Solutions, 2008). Thibault & Associates Inc. has 

relied on the conceptual mine reclamation plan prepared by Jacques Whitford to define estimated 

reclamation and mine closure costs for this assessment. 

3.7 Other 

Numerous equipment vendors (new and used) have provided budget costing for purchase of 

major process equipment. Chemical suppliers have also provided budgetary costs for purchase of 

reagents and chemical as required for development of the process operating costs. Competitive 

bid pricing for equipment purchase, chemicals and consumables was not completed and pricing 

is based on standard industrial requirements, commercial terms and technical specifications. 

Adex Mining Inc. has provided information on general site administration expenses, proposed 

labour rates and overhead, project directives and product marketing directives. Thibault & 

Associates Inc. relied on this information without independent verification. The information is 

considered reasonable for conceptual preliminary design and costing of the proposed process 

technology. 





SECTION 4.0 PROPERTY DESCRIPTION AND LOCATION 

4.1 Mining Claims and Surface Rights 

The Mount Pleasant property is located in Charlotte County, in southwestern New Brunswick, 

approximately 80 km south of Fredericton, 65 km northwest of Saint John and 35 km north of St. 

George (see Figure 4-1). 

Figure 4-1: Mount Pleasant Property Location Map 

(Figure Credit: Watts, Griffis & McOuat) 

The property is located at approximately 45°26'N latitude and 66°49'W longitude. The entire land 

package consists of 102 contiguous mining claims covering approximately 1600 hectares held 

under prospecting license 14338. In January 1989, Hughes Surveys and Consultants provided a 

legal survey of the property perimeter. Figure 4-2 shows the location and claim numbers of the 

mining claims for the property. 





Figure 4-2: Mount Pleasant Property Claim Map 


All of the claims are currently in good standing and the annual fees are fully paid until the 

February 2, 2010 renewal date. The annual renewal fee for the claims is $3,060. There is also an 

annual work requirement of $61,200 for the claims (Watts, Griffis and McOuat, 2009). 

Adex holds surface rights covering approximately 405 hectares within the mining claims that 

includes the area of the mine site, mill site and tailings pond, as well as the Saddle Zone and 

northern sections of the Fire Tower Zone and North Zone. Third parties including the province of 

New Brunswick and private individuals own the remaining surface rights in the claim area. 

The property hosts two distinct mineralized zones, the Fire Tower Zone (“FTZ”) with a NI 43-101 

compliant indicated resource of 13,489,000 tonnes and the North Zone (“NZ”) with a NI 43-101 





compliant indicated resource of 10,882,000 tonnes. The FTZ is dominated by tungstenmolybdenum 

mineralization occurring within three distinct deposits, the Fire Tower North, the Fire 

Tower West and Fire Tower South where fine-grained wolframite and molybdenite are the 

principal minerals of economic interest (Watts, Griffis and McOuat, 2009). The North Zone, about 

one kilometre to the north of the FTZ, consists of eight distinct tin-indium-bearing deposits or subzones 

consisting of the Deep Tin Zone, Upper Deep Tin Zone, Endogranitic Zone, North Adit 

Zone, North W-Mo Zone and the #1-6 Tin Lodes (Watts, Griffis and McOuat, 2009). Minerals of 

economic interest in the NZ include tin, zinc and indium. 

4.2 Royalties 

There may be a royalty payment in the amount of $0.10 per ton of ore mined payable to Mount 

Pleasant Mines Limited (D.M. Fraser Services Limited, 1994) although Adex has no original 

documentation to confirm or deny the existence of this royalty. Royalties have been excluded in 

this preliminary assessment. 

4.3 Permits 

Under the current care and maintenance operation at the mine site, mine water that overflows 

from the flooded mine workings is treated in a mine water treatment plant operated under New 

Brunswick Approval to Operate I-6154. In the event of a renewed mining and processing 

operation on the Property, the relevant permits required have been outlined in Section 21.0. 





SECTION 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND 

PHYSIOGRAPHY 

5.1 Accessibility 

The mine site is accessible year-round by all-season roads from Fredericton, St. George, and 

Saint John. Commercial airports located at Fredericton (Oromocto) and Saint John service the 

mine site, while Saint John is a major year round containerized deep sea port servicing all of New 

Brunswick. 

5.2 Climate and Physiography 

The climate in southwest New Brunswick is characterized by warm summers from June through 

September, cool spring and fall seasons with frequent rain, and freezing temperatures and 

substantial snowfall in winter from November through March. The proximity of southern New 

Brunswick to the Bay of Fundy provides a moderating effect on minimum winter temperatures 

relative to those experienced in Northern New Brunswick. Environment Canada historical climate 

records for nearby Fredericton from 1971 to 2000 indicate average daily minimum temperatures 

in January and February of -15.5°C and -14.1°C, respectively. The extreme minimum 

temperature for the same period is reported as -35.6°C for January and -37.2°C for February, 

while the average maximum temperature is -4.0°C for January and -2.3°C for February. In the 

summer, the maximum temperatures are 25.6°C average and 36.7°C extreme for July while for 

August, the maximum temperatures are 24.7°C average and 37.2°C extreme. The average 

minimum temperature in July is 13.0°C and in August it is 12.1°C. The yearly average total 

precipitation is 1143.3 mm including 276.5 cm of snowfall and 885.5 mm of rain. The New 

Brunswick climate allows for year-round mining and milling activities. 

The Mount Pleasant area consists of rolling hills and the land is mostly treed with hardwoods 

dominant at higher elevations and softwoods more prevalent in lower elevation poorly drained 

areas. The previous mill site is approximately 230 m above sea level while the top of Mount 

Pleasant has an elevation of approximately 370 m above sea level. Most of the property is well 

drained with Hatch brook flowing across the property receiving the existing controlled tailings 

pond discharge. Hatch brook flows into the Piskahegan river which is a tributary to the 

Magaguadavic River. 

5.3 Local Resources and Infrastructure 

The Mount Pleasant area is mostly unpopulated except for a scattering of locally owned hunting 

camps. During the 1983-85 Billiton tungsten/molybdenum operation, labour forces were recruited 

from the Saint John, St. George, St. Stephen, Oromocto and Fredericton regions. Fredericton has 

a population of about 50,000 while Saint John has a population of about 70,000. It is expected 

that labour forces for a mining operation at Mount Pleasant would once again be recruited from 

these nearby cities and towns. 

The Property is currently maintained year round by a three person crew. This crew provides 

round-the-clock site security and environmental monitoring, maintains roads and site access, 

provides building maintenance, and performs other duties related to property care and 

maintenance. 





Buildings on the site are in excellent condition and include the administration building, 

warehouse, ore storage “A” frame, concentrator, core storage, cold storage, electrical substation, 

and mine ventilation building. The crushing building and all conveyor galleries are intact and also 

in excellent condition. Major processing, mining and mobile equipment including mills, flotation 

units, crushers and all mining equipment have been sold and removed from the site. Several 

remaining storage tanks, thickeners, water treatment equipment, utility piping, pipe racks, and 

transformers have been considered for re-use in this study. The infrastructure has been well 

maintained since mining operations ceased in 1985. 

The tailings pond constructed by Billiton in 1980-82 breached in 1998 during a late spring flash 

flood when the emergency spillway failed. Water discharged from the pond but tailings remained 

inside the pond perimeter. A temporary spillway was re-established and final repairs were 

completed in 2008. The tailings pond is a major infrastructure asset of the Adex property. 

Domestic water supply is from a local well that has been in continuous service since at least 

1980. Process water for the Billiton operation was drawn from the nearby Piskahegan River but 

that service has been discontinued. Adex intends to reclaim process water from the tailings pond 

and make use of the existing infrastructure which includes a process/fire water tank and 

underground piping to the concentrator building. 

Electrical power from the NB Power grid is supplied via a 138 kV transmission line to the mine 

site substation and transformed to 4160 V and 600 V for powering mine and mill production 

equipment. The substation is regularly maintained by contract electrical personnel. Two of three 

4160 to 600 volt transformers are intact; one was sold and removed from site. 

Adex has retained 100% ownership of the buildings and equipment remaining on the Property. 





SECTION 6.0 HISTORY 

The history of past mining/milling operations, exploration and development, and drilling programs 

has been well summarized in the NI 43-101 Technical Report on the North Zone (Watts, Griffis, 

McOuat, 2009). 





SECTION 7.0 GEOLOGICAL SETTING 

7.1 Regional Geology 

The Mount Pleasant deposits are located in southern New Brunswick within the Appalachian 

Orogen in eastern Canada. The deposits occur within gently dipping Late Devonian Piskahegan 

Group volcanic and sedimentary rocks that are the remnants of a large epicontinental caldera 

complex (Sinclair et al, 2005). 

The regional geology in the mine area (see Figure 7-1) is dominated by the Mount Pleasant 

Caldera, the exposed part measuring approx 13 km by 17 km (Adex Mining Inc., 1995). Multiple 

layered granitic intrusive rocks and associated mineralization at Mount Pleasant were emplaced 

along the southwestern margin of the caldera complex. This structure occurs within the northern 

extension of the Appalachian geosynclinal belt and is situated on the southeast flank of New 

Brunswick’s Central Basin (Adex Mining Inc., 1995). 

7.2 Local Geology 

Figure 7-1: Regional Geology in Area of Mount Pleasant, New Brunswick 


The best geological map of the property was produced by Billiton Exploration Canada Limited in 

1985. Since then, the property has never been mapped in detail. The interpretation of the geology 

at Mount Pleasant in and around the deposits has been obtained from diamond drilling 

information. The local geology of the property is shown in Figure 7-2 





Figure 7-2: Local Geology of Mount Pleasant Property 


Mount Pleasant represents the volcanic remnants with both vent and conduit fillings of a mineralrich 

volcanic eruptive centre located along the southwest margin of the Mount Pleasant Caldera 

(see X2, Adex Mining Inc., 1995). This eruptive centre has a marked topographic expression 

reaching 230 m above the valley floor. 

At Mount Pleasant, the caldera is comprised of Piskahegan Group rocks of Late Devonian age 

consisting of three ash flow layers of rhyolitic pyroclastic rocks referred to as the Quartz-Feldspar 

Porphyry that are separated by two discontinuous units of sedimentary breccia (up to 100 m 

thick) that forms the western boundary of the caldera, a feldspar porphyry and metasedimentary 

rocks of interbedded red conglomerate, sandstone and shale (Sinclair et al, 2005; Billiton Canada 

Ltd., 1985b). These ash flow tuffs of the Piskahegan Group probably originated from the 

numerous vents in the caldera. All rocks within the caldera generally dip about 10° to 15° to the 

northwest except along the margin of the Mount Pleasant Caldera where they dip at 15° to 50° 

toward the centre of the caldera (Sinclair et at, 1988). 

The caldera rocks have been intruded by a line of inverted cone-shaped cupolas of granitic rocks 

and associated breccias (collectively named the “Mount Pleasant Porphyry”) that outcrop at the 

North Zone, Fire Tower Zone and within an intermediate Saddle Zone that does not reach 

surface. It should be noted that little information has been provided on the “Little Mount Pleasant” 

cupola that occurs at depth to the south of the Fire Tower Zone. At the Fire Tower and North 

Zones, crosscutting breccias and associated intrusive rocks form irregular, roughly vertical pipe- 





like complexes that were centres of sub volcanic intrusive and related hydrothermal activity 

(Sinclair, 1994). The intrusive rocks were probably emplaced at depths of 1.0 km or less. The 

cupolas, comprised of dominantly brecciated and altered volcanic vent material, host the 

tungsten-molybdenum and tin-base metal mineralization on the property. The clast-supported 

breccias are complex with extensive hydrothermal alteration and were most likely formed from 

multiple episodes of explosive brecciation related to magmatic fluid overpressures developed in 

the crystallising, fluid-saturated granitic magma. 

In greater detail, three distinct intrusions have been identified underlying the volcanic rocks at 

Mount Pleasant, designated Granite I, Granite II and Granite III, which underlie the North Zone 

and Saddle Zone. Granite I and II appear to closely correlate with the fine-grained granite and 

granite porphyry of the Fire Tower Zone, but they are separate intrusions. Granite III and 

porphyritic granite appear to represent different parts of the same intrusive body (Sinclair, 1994). 

Structurally, the Mount Pleasant volcanism is marginal to and controlled by radial and peripheral 

faulting associated with the Mount Pleasant Caldera (Adex Mining Inc., 1995). Faulting is present 

in the Mount Pleasant area as northwest to southeast-trending breaks that appear to post-date 

deposit formation, redistribute the mineralized zones and displace some of the mineralization 

(Atkinson et al, 1981). 





Figure 7-3: Mount Pleasant Mine Site Geology and Drill Holes 






SECTION 8.0 DEPOSIT TYPES 

8.1 General 

The mineral deposits of Mount Pleasant are unique as they are the largest known tin-tungstenbismuth 

occurrences in the Canadian Appalachian (Parrish and Tully, 1978). Furthermore, they 

are prime examples of a combined porphyry-tungsten and porphyry-tin deposits hosted within 

Devonian age volcanic rocks that are not noted for such mineral deposits. A description of the 

deposit types is provided below focussing on tungsten, molybdenum, tin-base metal porphyry 

deposits at Mount Pleasant, which have been the principal exploration target since the 1930s. 

The North Zone tin deposits have marked similarities to many of the world tin porphyry deposits. 

However, at the time of the discovery of the tin-base metal mineralization by Brunswick Tin Mines 

in 1967, it was difficult to establish a geological model for the mineralization as similar deposits 

were not known in New Brunswick or elsewhere in Canada. Comparisons were made with 

hypothermal-type ore bodies, those of Cornwall, England, or xenothermal-type Bolivian deposits 

(Kooiman, 2004). It was determined that the tin-bearing lodes within the North Zone had 

characteristics similar to some of the Cornish tin lodes (Kooiman et al., 1986: Kvaerner Metals 

Davy Ltd., 1997). 

Hosking (1985) concluded that the North Zone tin deposits were similar in a broad geological 

setting to Bolivian porphyry deposits, excluding the very rich tin lodes, which are characteristic of 

the Bolivian deposits. He explained that the exo- and endo-tin deposits associated with the apices 

of granitoid cusps were common and well-documented with examples occurring at Sadisdorf 

(Germany) and Zinnwald or Cinovec (Czechoslovakia), Queensland and New South Wales, 

Eastern Mongolia and elsewhere. Furthermore, he suggested that the apex of a granitoid cusp, 

which has been emplaced in quartz-porphyry at Zinnwald may broadly reflect what was presently 

indicated in the North Zone granite. Hosking (1985) cautioned that it would be misleading to 

forecast likely tonnages and grades for the North Zone by considering tonnages and grades of 

other deposits based on their similarities to the North Zone. 

The Contact mineralization within the North Zone has been compared to granite-related greisen 

tin deposits such as such as Cinovec, Krupka and Krasno in Czechoslovakia and the German 

Democratic Republic (Billiton Canada Ltd., 1985b). Average tin contents in the strongly 

greisenized zones are of the order of 0.1-0.3% Sn. The Sn:W ratio varies from 1:1 (Krupka) to 5:1 

(Krasno) and 10:1 (Cinovec). 

8.2 Porphyry Tin-(±Indium) Deposits 

Porphyry tin deposits have been described in detail below by Sinclair (1995b). These deposits 

form along extension zones in cratons, particularly post-orogenic zones, underlain by thick crust, 

possibly cut by shallow-dipping subduction zones. In addition to tin, these deposits can also 

contain tungsten, silver and indium (as at Mount Pleasant). 

In Canada, deposits have been found at Mount Pleasant and East Kemptville (Nova Scotia). 

When East Kemptville was in production it was the major producer of tin in North America. 

Deposits discovered outside Canada include Catavi, Chorolque and Cerro Rico stock (Bolivia), 

Ardlethan and Taronga (Australia), Kingan (Russia), Yinyan (China) and Altenberg (Germany). 





Porphyry deposits are commonly related to intrusive rocks and associated breccias but may also 

include sedimentary, volcanic, igneous and metamorphic rocks. Tuffs or other extrusive volcanic 

rocks may be associated with the deposits related to subvolcanic intrusions. These deposits 

occur in high-level to subvolcanic felsic intrusive centres in cratons where multiple stages of 

intrusive rock may be present. 

Deposits vary in shape from an inverted cone to roughly cylindrical to highly irregular. They are 

typically large, generally hundreds of metres across and tens to hundreds of metres in vertical 

extent. 

The age of mineralization is the same as the porphyry Mo deposits, Paleozoic to Tertiary. Tin 

occurs principally in cassiterite with other ore minerals such as stannite, chalcopyrite, sphalerite 

and galena. Indium can also occur within the sphalerite as observed at Mount Pleasant. 

Common gangue minerals consist of pyrite, arsenopyrite, löllingite, topaz, fluorite, tourmaline, 

muscovite, zinnwaldite and lepidolite. Mineralization is structurally controlled in stockworks within 

crosscutting fractures and quartz veinlets or disseminated in hydrothermal breccia zones. 

Mineralization is genetically related to felsic intrusions (i.e., granites), with ore minerals 

concentrated in fracture stockworks, hydrothermal breccias and replacement zones. 

Sericite-pyrite-tourmaline alteration is pervasive in Bolivian porphyry tin deposits where sericitic 

alteration is bordered by weak propylitic alteration. Greisen alteration, consisting of quartz-topazsericite, 

commonly occupies the central zones of deposits (i.e., Ardlethan, Yinyan). These zones 

grade outward to quartz-sericite-chlorite alteration. 

As with the porphyry Mo, tin deposits have a magmatic-hydrothermal origin with the same genetic 

model (discussed above). However, in the case of tin deposition, the mixing of magmatic fluids 

with meteoric water may result in the deposition of some tin and other metals in late-stage veins. 

In exploring for tin porphyry deposits the host rocks may be anomalously high in Sn, Ag, W, Cu, 

Zn, As, Pb, Rb, Li, F, and B close to the mineralized zones and in secondary dispersion halos in 

overburden. Anomalous high concentrations of Sn, W, F, Cu, Pb and Zn have been found in 

stream sediments. Deposits generally occur in related intrusions, which are geophysically 

represented as magnetic lows although the contact aureole may be a magnetic high if pyrrhotite 

or magnetite are present. Anomalous U, Th or K can produce a radiometric high in response to 

the related intrusive rocks, alteration and mineralized zones. 





SECTION 9.0 MINERALIZATION 

9.1 General 

A number of well-documented major mineralized zones have been identified at Mount Pleasant. 

These zones, from south to north, have been designated as the Fire Tower Zone, Saddle Zone 

and the North Zone. A schematic cross-section of Mount Pleasant showing the locations of the 

zones is illustrated in Figure 9-1. For this preliminary assessment, the main deposits of interest 

are located within the North Zone and occur within 250 m from surface. 

The Fire Tower Zone contains predominantly large (low grade) tungsten-molybdenum deposits 

and was previously mined for tungsten. Some small indium-bearing tin-base metal zones are also 

present in the vicinity of the Fire Tower Zone. WGM prepared an NI 43-101 compliant Mineral 

Resource estimate for the Fire Tower Zone in 2008. 

The North Zone contains the largest and most important indium-bearing, tin-base metal 

"resources" outlined to date along with some poorly defined lower-grade tungsten-molybdenum 

bodies (Adex Mining Corp., 1995). The Saddle Zone, located between the Fire Tower Zone and 

the North Zone, contains mineralized zones consisting of predominantly tin and some base 

metals. 

9.2 North Zone 

The North Zone is polymetalic with copper, bismuth, tungsten, molybdenum, and other metals 

accompanying the predominate tin-indium-zinc. Two principal types of deposits have been 

identified, the tin-indium-zinc and porphyry tungsten-molybdenum deposits where the latter is the 

least dominant deposit type in the North Zone. 

An NI 43-101 compliant global Mineral Resource estimate for the North Zone, completed by 

Watts, Griffis and McOuat Limited using an updated GEMCOM model, was completed in 

conjunction with the preparation by WGM of an independent NI 43-101 Technical Report under 

the supervision of Trevor Boyd, P. Geo., Adex Mining Inc.’s Geological Consultant. 

For the NI 43-101 compliant estimate, Trevor Boyd geologically modeled and delineated the 

boundaries of the North Zone tin-bearing deposits in drill section. The deposits are plotted on 

cross sections spaced 25 meters apart and mineralization boundaries were drawn halfway 

between drill holes. If no holes existed to limit the mineralization outlines, the boundaries were 

extended to a maximum of twenty metres away from the nearest hole. In general, extensions of 

the boundaries were made consistent with the trends defined by joining known cut-off boundaries. 

A minimum width of 3 metres was used for defining the zones, and a specific gravity of 2.70 was 

used for estimating the resources. As a result of this interpretive work, the following deposits have 

been delineated near surface and at depth (see Figure 9-1 and Figure 9-2): 

 

 

 

 

 

 

The Deep Tin Sub-Zone ("DTZ"); 

The Upper Deep Tin Sub-Zone ("DTZ-UP"); 

The Endogranitic Sub-Zone ("Endo"); 

The North Adit Sub-Zone ("N. Adit"); 

The North W-Mo Sub-Zone; and 

The #1-3, #4, #5 and #6 Tin Lodes. 





The Endogranitic and North W-Mo sub-zones are not included in the focus of this Report. 

Figure 9-1: Representative Cross-section of Mount Pleasant Mineralized Zones 


The eight modeled sub-zones or deposits that make up the North Zone are distributed over an 

area of 450 by 250 metres extending from the surface to a vertical depth of 450 metres. An 1,100 

metre decline, which was used to collect bulk samples in 1986, extends from the Fire Tower Zone 

underground workings to the Endogranitic sub-zone. The decline and underground workings are 

presently flooded. An exploration drive developed in the 1960s extends from the surface to the 

vicinity of the #1-3, #4 and #6 Tin Lode sub-zones. Many of the North Zone deposits contain 

significant amounts of indium with the zinc. Indium-bearing tin-base metal zones in the North 

Zone appear to be principally associated with sphalerite and are more concentrated in the Deep 

Tin Zone (Sinclair et al, 2005). Host rocks are often brecciated and altered to a fine-grained, 

greisen-type assemblage of quartz, sericite, topaz and fluorite. 

The principal mineralogy of the deposits consists of fine to very fine-grained cassiterite, 

arsenopyrite, löllingite, sphalerite and chalcopyrite with lesser amounts of stannite, pyrite, 

marcasite, galena, wolframite, molybdenite, tennantite, chalcocite, bornite, native bismuth, 

bismuthinite and wittichenite. Other associated minerals include abundant fluorite and chlorite 

(Kooiman et al, 2005). The tin and porphyry tungsten-molybdenite deposits of the North Zone 

represent two different periods of mineralization even though they overlap spatially. Tin 

mineralization in the North Zone is younger than the Fire Tower Zone and crosscuts the older 

molybdenum-tungsten zones. 





Figure 9-2: Geological Interpretation of the North Zone Deposits 


The Deep Tin, Upper Deep Tin, North Adit and six distinct tin lodes, designated #1 to #6, have 

been identified in the North Zone in association with granite porphyry dykes, with hydrothermal 

breccia or altered feldspar porphyry (Kvaerner Metals Davy Ltd., 1997). Adex (1995) describes 

the lodes as leakages from the deeper-seated endogranitic deposits that extend from surface to a 

depth of around 250 metres. The shallow tin lodes contain very fine-grained cassiterite and lesser 

amounts of stannite and are associated with arsenopyrite, löllingite, sphalerite and chalcopyrite 

(Sinclair, 1994). Less abundant sulphides include molybdenite, pyrite, marcasite, galena, bornite, 

tennantite, bismuthinite, wittichenite and roquesite. Quartz, fluorite, topaz and chlorite are the 

principal alteration minerals in association with greisenized feldspar porphyry. 

9.2.1 Deep Tin 

The Deep Tin sub-zone is an irregularly-shaped body hosted by brecciated Granite I which is 

locally porphyritic (Figure 9-2). This zone begins on drill Section 1+50NW ending on Section 

4+50NW and is located between mine elevations 1,000 m to 1,150 m. The zone reaches to within 





40 m laterally of the Upper Deep Tin Zone extending from 140 to 270 m vertical depth. Three 

predominate alteration phases have been recorded: silicification, chloritization and sericitization. 

Some silicified sections of drill core are moderately altered to kaolinite. The mineralization is 

identical to that of the Upper Deep Tin Zone. 

Mineralization occurs in hydrothermally brecciated and fractured granite rocks located adjacent to 

granite and porphyry dykes. Arsenopyrite, cassiterite, sphalerite and chalcopyrite infill fractures 

as veinlets, microveinlets, stringers or are deposited as blebs or pods, semi-massive sulphides 

and disseminations. Tin content can range from 0 to 3 modal percent with the occasional 

cassiterite grains displaying colliform textures. Some veins contain molybdenite and wolframite 

(1-2% range) and native bismuth with disseminated specks of chalcopyrite. Veins can also 

contain eplidote, talc and serpentine. The most common replacement minerals are arsenopyrite 

and purple fluorite. 

9.2.2 Upper Deep Tin 

The Upper Deep Tin sub-zone contains tin-indium-base metal mineralization hosted in brecciated 

Gr I and Gr II granite rocks and feldspar porphyry. There are a series of horizontal shaped 

deposits that have been traced from drill Section 1+50NW to Section 4+50NW (same as the 

Deep Tin Zone) from mine elevations 1,000 m to surface.. 

This zone is situated above the Deep Tin sub-zone extending from 80 to 140 m vertical depth 

from surface. Alteration consists of silicification and chloritization (± kaolinite). 

Cassiterite, sphalerite and chalcopyrite occur in hydrothermal fracture filled veins, as massive or 

semi-massive sulphides, sulphide pods and disseminations in association with high 

concentrations of arsenopyrite and purple fluorite. Wolframite and molybdenite are hosted in 

veinlets as well as dissemination (1 to 2 modal percent) with minor amounts of native bismuth. 

Again, some UST’s have also been observed in the drill cores. 

9.2.3 #5 Tin Lode 

Very little information is available describing the #5 lode. According to Parrish and Tully (1976), it 

consists of four steeply northeast dipping lodes that strike 310° to 325°. This zone extends from 

the surface to a vertical depth of 70 m. Tin mineralization occurs in the matrix of silicified breccia 

rocks. The mode of mineral occurrence is very similar to that of the #6 and #1-3 lodes. During 

the 2008 drill program this lode was expanded in tonnage considerably to the northwest and 

includes a series of scattered, erratically mineralized and narrow indium-zinc-tin lodes situated 

above and containing similar mineralogy to the Upper DTZ sub-zone. The lodes are commonly 

connected by a halo of low grade Zn-In mineralized wall-rock which can in places be of economic 

importance, but is not consistently. 

9.2.4 North Adit 

The North Adit sub-zone consists of a series of isolated tin-indium mineralized bodies that occur 

outside the immediate contact zone of the intruding granite GR IIB cupola in the North Zone 

(Figure 9-2). Intersections of tens of meters of mineralization occur mostly north and north-east of 

this cupola. The distal relationship of these mineral deposits with respect to the main GR II-B 

body is highlighted by the virtual absence of later granite porphyry dykes and associated lodestyle 

mineralization. The deposits have been traced on drill section from 4+25NW to 6+75NW and 





are located between mine elevations 990 to 1,240 m with a maximum vertical depth from surface 

of 250 m. 

Host rocks are highly altered and brecciated Granite (Gr I + Bx), feldspar porphyry ("FP"), granite 

and quartz-feldspar porphyry ("QFP") rocks which are locally chloritized, silicified, epidotized and 

kaolinized. The contact crest mineralization is situated in breccias and other associated host 

rocks at the upper contact of the Granite II-B cupola. These rocks can be intruded by granite 

dykes. 

The tin-indium deposits are superimposed of narrow fluorite-rich replacements of purple fluorite 

veins, pods and disseminations sometimes associated with kaolin and abundant, locally massive, 

arsenopyrite. Sphalerite, cassiterite, wolframite, pyrite, chalcopyrite and molybdenite infill 

fractures as veins or are disseminated in the host rocks. 

9.2.5 #4 (and #6) Tin Lodes 

The #4 (and #6) Lodes are located on the north eastern portion of the North Zone and have been 

traced in drill Section from 5+50NW to 7+75NW from the surface to approximately 70 metres 

depth. The two lodes are considered together in the WGM NI technical report as they are, to all 

extent, joined. The #6 lode is essentially the northwest extension of the #4 lode (Parish and Tully, 

1976). WGM has observed that the geology of this deposit, from surface to depth, is quartzfeldspar 

porphyry overlying a mix of feldspar porphyry and QFP containing granite porphyry 

dykes, which then overlay, at depth, FP rocks. 

The tin occurs in sheared and silicified QFP adjacent to the contact with the FP. Overall, the best 

tin grades occur in breccia dykes in the host porphyry in the core of the #4 Tin Lode and can be 

observed on surface. Mineralization consists of sphalerite, cassiterite, cassiterite and minor pyrite 

and galena within veins, or as semi-massive sulphide pods and disseminations. Some quartzbearing 

veinlets contain wolframite and molybdenite. The rocks can be locally sericitized and 

chloritized with fluorite and minor amounts of serpentine. There is also a significant amount of 

siderite iron carbonate. 

9.2.6 #1-3 Tin Lodes 

The #1-3 Tin Lodes have been traced from drill section 2+50NW to 500NW to a maximum vertical 

depth of 80 m from surface in the centre of the North Zone. On Section 3+50NW, tin is most 

concentrated in a zone that is up to 25 m wide (true width). Host rocks consist of locally silicified, 

chloritized, kaolinized and brecciated Granite I and granite porphyry rocks (Granite IIA). 

The #1 Lode is well exposed on surface with mineralization consisting of veins, blebs, pockets, 

pods and specks of sphalerite, chalcopyrite, stannite, cassiterite and arsenopyrite. Sulphides are 

usually associated with kaolinized breccia pipes and purple and green fluorite which infill vugs. 

Silicified granite porphyry rocks host the #2 Lode. The #3 Lode is composed of pods, pockets and 

irregular masses of sulphide, fluorite and kaolinite in brecciated host rocks. No vein or vein-like 

features are present. The dominant sulphide is sphalerite with a small amount of cassiterite. The 

fluorite is not as prevalent as in the #1 Lode. 





SECTION 10.0 EXPLORATION 

10.1 General 

The reader is directed to the 2006, 2008 and 2009 WGM technical reports for details regarding all 

of the exploration work conducted on the Mount Pleasant Property from 1994 to 2008 (Watts, 

Griffis and McOuat, 2008, 2006, and 2009). 

In November, 2006, Adex filed an assessment report to the Department of Natural Resources of 

New Brunswick summarizing all exploration work from October 2005 to July 2006, including the 

completion of the WGM NI 43-101 report (Boyd, 2006). Adex also filed a second assessment 

report in covering all of the exploration work carried out on the property between the months of 

January to November of 2008 (Boyd, 2008). This report included only the Phase 1 portion of the 

diamond drilling program completed on the Fire Tower Zone and North Zone and has been filed 

for assessment credit. To date, all of the exploration work has been carried out under the 

supervision and direction of Dr. Trevor Boyd, the company’s geological consultant. 

Since June, 2006, exploration work on the Mount Pleasant Property has advanced in the 

following manner largely with reference to the North Zone: 

 

 

 

 

 

 

 

 

 

In 2008, Adex has completed a two-phase 13,300 m definition and exploration drilling 

program to expand and update the existing mineral resource estimate of the Fire Tower Zone 

tungsten-molybdenum deposit and provide drillhole data to expand and prepare a new 

NI 43-101 compliant resource estimate of the North Zone tin-indium deposit; 

Diamond drilling was also completed to recover fresh drill core from the Fire Tower Zone and 

North Zone for metallurgical bench and mineralogical testing; 

The 2008 drill program involved completion of a thirty-six hole (8,859 m) definition diamond 

drilling program to further define the mineral resources on the North Zone - the subject of this 

report (see Section 11.0 for details); 

Adex selected 262 pulp samples from the North Zone drill program and dispatched them for 

SGS Lakefield Research Limited ("SGS Lakefield") to Activation Laboratories ("Actlabs") for 

assay verification as part of their due diligence program (see Section 14.0 on Data 

Verification); 

The results of the Fire Tower Zone drilling and NI 43-101 compliant mineral resource 

estimate of this zone can be reviewed by the reader in the WGM Technical Report filed in 

early 2009 (Watts, Griffis and McOuat, 2009); 

Additional sampling and analyses of historical drill core, not previously sampled within the 

North Zone, was completed as recommended in the WGM report (Watts, Griffis and McOuat, 

2006); 

Adex submitted 144 historical drill core samples consisting of split drill cores, fill-in samples, 

31 pulps and 4 rejects covering 75 historical drill holes for its Phase I assay verification at 

SGS and/or Actlabs (see Section 14.0); 

A total of 407 split core samples and 253 pulps were submitted from 49 historic drill holes for 

assay verification at SGS and/or Actlabs (see Section 14.0); 

Adex has completed an updated 3-D wireframe model of the North Zone incorporating the 

new diamond drillhole data and infill sampling of historical drill core. This model was 

presented to WGM to review and prepare a tin-indium Mineral Resource estimate of the 

North Zone (see Section 17.0); 





 

 

 

 

 

 

 

 

 

 

All new sample analytical data was inputted by Adex into the existing GEMCOM database 

covering both the Fire Tower Zone and North Zone; 

Jacques Whitford provided technical support for the dam repair, tailing contingency where 

potential metals re-dissolution as ph changes in pond, prefeasibility environmental 

assessment (base line study), sludge pond design, review of radioactive materials and impact 

on health and safety; 

ADI Limited completed the design of the tailing dam upgrade between the months of July to 

October, 2007, to repair a breach in the tailings pond; 

Repairs and upgrades to the tailings dam and emergency spillway were completed by 

Monteith Underground Services Ltd. ("Monteith") of Fredericton, New Brunswick; 

Preliminary mineralization and liberation studies were completed at SGS Lakefield; 

Hydromet testing (to remove arsenic) was completed using low grade tungsten concentrate 

from the Fire Tower Zone and is also being considered using the molybdenum concentrate 

(dirty concentrate stored in barrels on site; 

Adex contracted SGS Lakefield Resource Europe Ltd. ("SGS Lakefield England") of 

Cornwall, England, to test the gravity-flotation separation process designed by Thibault & 

Associates Inc. for processing ore from the Fire Tower Zone and North Zone deposits; 

Monthly water quality monitoring/testing is ongoing in compliance and in accordance with the 

terms of the "Approval to Operate" under the supervision of Thibault & Associates Inc.; 

A Baseline Environmental Effects Monitoring Program was completed by Jacques Whitford 

involving water and sediment quality sampling as well as fish habitat surveys and analysis of 

fish tissues for metals at the Mount Pleasant mine site; 

An Assessment Study ("Scoping Study") has been completed by Aker Solutions Canada 

Inc. ("Aker Solutions") of the Fire Tower Zone using the resource estimate provided in the 

2006 WGM technical report and the designed gravity separation flowsheet. An "Executive 

Summary" of the SRK report is presented as an Appendix at the back of the WGM report 

(Watts, Griffis and McOuat Limited, 2008). 

10.2 Scoping Study of the Fire Tower Zone 

In July, 2008, Adex contracted Aker Metals, a division of Aker Solutions to conduct an 

Assessment Study ("Scoping Study") to assess the economic potential of the Fire Tower Zone 

tungsten-molybdenum deposit based on the updated "Indicated" mineral resource estimate 

calculated of the Fire Tower Zone by WGM in this report (see Section 17.0). The Scoping Study 

was based on gravity-flotation and hydrometallourgical process designed by Thibault & 

Associates Inc. The reader is referred to Adex’s press release summarizing the results of this 

assessment study of the Fire Tower Zone (Adex Mining Inc., 2008d). A summary of the Scoping 

Study results is provided in Appendix 3 of the Watts, Griffis and McOuat Limited (2008) Technical 

Report. 





SECTION 11.0 DRILLING 

11.1 General 

Since early March, 2008, Adex has completed 49 drill holes in total for its Phases 1 and 2 

programs for a total of 13,300 m, testing both the tin-indium-zinc-copper and tungstenmolybdenum-bismuth 

zones throughout the Mount Pleasant Mine Property (see Figure 7-3). 

These drill programs, operated under the supervision of Adex geological staff, were carried out in 

order to verify the extent of known mineralization, to delineate the possible extensions of zones 

and to expand on the existing mineral resource estimates at the Fire Tower Zone and North Zone 

in compliance with NI 43-101. Drilling was also completed to recover fresh drill core material for 

metallurgical bench and mineralogical testing. 

The reader is directed to Watts, Griffis and McOuat (2008) for details regarding the results of the 

Fire Tower Zone drilling program and directed to Watts, Griffis and McOuat (2009) for details 

regarding the results of the North Zone drilling program. All of the 2008 drill hole collar locations 

are shown on Figure 7-3. The North Zone drill results are briefly summarized below. 

Adex completed a two-phase 36 hole diamond drilling program on the North Zone for a total of 

8,859.1 m. Phase I, consisting of holes AM-08-01 to 07 and AM-08-10, was conducted from 

February 27, 2008 to June 18, 2008. The remaining Phase II holes were completed from May 17 

to September 11, 2008. The NI 43-101 compliant mineral resource estimate presented in the 

Watts, Griffis and McOuat (2009) report for the North Zone utilizing the new and historic diamond 

drill hole data. 

The drill contract was awarded to Lantech Drilling Services Inc. ("LanTech") of Dieppe, New 

Brunswick. Core size is "NQ". Down hole surveys were completed using a Reflex single shoot 

instrument every 100 m. Upon the completion of each hole, the casing was left in for all holes, the 

holes were capped and numbered and the collar location recorded using a global positioning 

instrument ("GPS"). 

Adex logged the core, Rock Quality Designation ("RQD") and core recovery data was collected 

and the core was photographed and split. Drill geologists use a binocular microscope to assist in 

identifying the individual mineral phases within the drill core as mineralization is often very fine 

grained and not visible to the naked eye. 

A total of 2,667 spit core samples were collected from the North Zone drill holes, the majority of 

the samples measuring 3.0 m in length. All analytical results were added to the company’s 

GEMCOM digital database. At the end of the diamond drilling program, Adex dispatched 262 pulp 

samples to SGS for assay verification as part of their due diligence procedures. 

11.2 Drill Hole Surveying 

In May and October, 2008, the drill collar locations for the 2008 drill holes and as many of the 

historical drill collars possible were surveyed by Murphy Surveys (1990) Ltd. ("MSL"), located in 

Old Ridge, New Brunswick. Surveying was done using a real time Trimbel G8 (base and rover) 

receiver with a Trimble TSC2 data collector/controller. All points were acquired within an accuracy 

of ±0.1 m or less. Coordinates are reported in NAD83. These data were added to the GEMCOM 





database. Comparisons of the WGM hole coordinates against the MSL data differed by only 1.0 

to 2.0 m. 





SECTION 12.0 SAMPLING METHOD AND APPROACH 

The reader is directed to Watts, Griffis and McOuat (2008 and 2009) for details regarding the 

results of the Fire Tower Zone and North Zone sampling methodology and approach. Information 

regarding the sampling methodology and approach was obtained through discussions by WGM 

personnel with G. Kooiman during the Mount Pleasant field visits and from previous geological 

reports and papers provided by Adex. 

All assay results reported in this document have been obtained from previous Adex reports and 

from reports from previous operators that have worked on the Property. The practice of reporting 

exploration results to the public has changed dramatically over the last decade. In the past, it was 

largely up to the company as to what results they wished to report to the public. For example, an 

acceptable practice was to only report the best assay results. Many did not choose to disclose 

their sampling techniques, the name of the laboratory to which samples were dispatched or 

include copies of the original assay report certificates in their final report. The best records have 

been kept since Brunswick Tin Mine’s arrival on the Property in 1969 to present. The authors 

have no reason or evidence to question the validity of the data presented in the historical reports. 

It is the authors' opinion that all sampling methods disclosed conform to generally accepted 

Canadian mining industry practice. 

Since the early 1980s, there has been good ongoing continuity to the project through the 

utilization of standardized log sheets, having the same personnel running the drill programs and 

conducting the logging and sampling. For example, Mr. Kooiman has been associated with the 

project for some 25 years, working as a geologist for Billiton, LAC, Novagold and Piskahegan and 

now as a geological consultant for Adex. 

The reader is directed to the WGM technical report describing the sampling methods and 

approach taken by the various operators prior to June, 2006 (Watts, Griffis and McOuat Limited, 

2006 and 2008, Section 12. Sampling Method and Approach). In 1986, LAC collected 74 face, 

selective wall and muck samples of the North Zone Access Decline following the following 

sampling method according to Gustaaf Kooiman (not previously reported in the 2006, 2008 WGM 

Technical Reports): 

"A face sample consisted of 20-25 fist sized samples collected at breast height across the 

face. None of these samples were continuous channel samples but, instead, represented 

different alteration styles and mineralization. These samples were taken to the core shack, 

washed and then inspected under the microscope. The same procedure was undertaken for 

the wall samples." 

The various Adex sampling methods and approaches with reference to the 2008 diamond drill 

program and historical core re-sampling programs is summarized below. 

The 2008 drill core was logged and split in half using a hydraulic core splitter. Samples were 

sealed in plastic bags, the sample tag placed in the bag and sample numbers written on the 

outside of the bag using a permanent magic marker pen. The bags were then sealed and shipped 

in batches by a bonded carrier to the SGS laboratory. A pulp (or reject) duplicate, unknown to the 

laboratory is submitted for every batch of 10 samples as part of Adex’s quality control procedures. 

A certified polymetallic standard, unknown to the laboratory, is also included with each shipment 

of duplicate samples. Samples submitted to the laboratory in batches of 100 samples. One Mount 





Pleasant standard (pulp) is submitted with every batch of samples. All samples were securely 

stored at the Mount Pleasant mine site under lock and key before these were dispatched to the 

laboratory for analyses. 

In 2008, Adex collected ¼ split core samples of the historical drill core for assay verification at a 

secondary ISO certified laboratory. Any additional drill core not previously sampled with split in 

half following the same method described above for the 2008 drill core samples. 

WGM followed the same sampling procedure as Adex including the insertion of a certified 

standard with each batch of samples submitted to the laboratory for each of the three field visits. 

All samples were ¼ split samples of the pre-existing drill core over the entire interval sampled by 

Adex. With the exception of the standard sample, each core sample weighed between 2.5 to 

4.0 kg with an average sample weight of 3.0 kg. Samples were placed in 5-gallon plastic pails (4- 

5 samples per pail), sealed, labelled and hand delivered by WGM to the Charlottetown, PE, bus 

terminal for shipping by Greyhound to the SGS laboratory in Toronto. 





SECTION 13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY 

13.1 General 

The reader is directed to Watts, Griffis and McOuat (2008 and 2009) for details regarding the Fire 

Tower Zone and North Zone sample preparation, analysis and security. Information regarding 

sample preparation, analyses and security was obtained through discussions held with Trevor 

Boyd and G. Kooiman and information provided from geological reports provided by Adex. It is 

the authors' opinion that the sample preparation, security and analytical procedures used 

conformed to generally accepted Canadian mining industry practice. 

The drill core was split in the core shack building on the minesite under the supervision of the 

project geologist. This building was and is locked and a security fence surrounds the minesite 

buildings. Security was and is maintained on the site 24 hours, 7 days per week. All drill core from 

the previous drill programs and new 2008 drill core is stored within the confines of the minesite 

which are surrounded by a fence with a gate security guard which is manned 24 hours a day, 

seven days a week. 

All coarse rejects and pulps remain in storage in the large core shack warehouse located on-site. 

The rejects have been labelled and are stacked on wooden pallets. The Mount Pleasant 

Tungsten Mine (1985) "Mothball" report provided an inventory list of the stored rejects at the time 

of the mine closure. However, this list has not since been updated. 

The reader is directed to the WGM technical report describing sample preparation, analyses and 

security by the previous operators who worked on the Property prior to June, 2006 (Watts, Griffis 

and McOuat, 2006). A total of 10 of the 74 face, wall and muck samples collected by LAC from 

the North Zone Access Decline were analyzed at Lakefield Research, a division of Falconbridge 

Limited in 1986 (not previously reported in the 2006, 2008 WGM Technical Reports). These 

samples were analyzed for tungsten, bismuth, molybdenum, copper, zinc, iron, tin, lead, arsenic 

and gold. The remaining samples were analyzed at tungsten, molybdenum, arsenic, bismuth, 

copper, lead, zinc and tin at the Mount Pleasant Tungsten Mine laboratory located on the mine 

site. No information is known regarding laboratory sample preparation or sample security. The 

various Adex sampling methods and approaches with reference to the 2008 diamond drill 

program and historical core re-sampling programs is summarized below. 

The majority of the analytical work was completed by SGS Mineral Services ("SGS") located in 

Don Mills, Ontario (Boyd, 2008, 2006). This laboratory is an ISO/IEC 17025 accredited laboratory. 

Samples, including those from the 2008 drill program, were analyzed for W, Mo, Sn, Bi, As, Zn, 

Cu, Pb, and ICP-MS finish for In. The following methods were used to analyze samples at SGS: 

 

 

 

 

A sample, weighing less than 3.0 kg, is first dried, crushed to 75% passing 2 mm, split to 

250 g and then pulverized to 85% passing 75 micron (method code PRP89); 

Ore grade analysis by sodium peroxide fusion, ICPOES finish for Cu, Pb, Zn, As, Sn, Bi, Mo 

and W (method code ICP90Q); 

Indium by sodium peroxide fusion ICP-MS finish using method code IC90M (detection limit 

0.2 ppm to 0.1wt%). Over-limit indium analyses were completed using method code ICP90Q 

after sodium fusion ore grade analyses; and, 

In and Zn by sodium peroxide fusion/ICP-AES and ICP-MS finish (method code ICM90A). 





Pulp duplicates plus additional core and pulp samples were sent to Activation Laboratories 

("Actlabs"), located in Ancaster, Ontario, for analysis as follows: 

 

 

 

 

The sample is dried, crushed (90% to pass 2 mm), split to 250 gm and pulverized to 

95% passing 75 micron at the sample preparation facility in Fredericton, New Brunswick; 

Peroxide fusion and ICP analysis for Cu, Pb, Mo and As (method code 8). Detection limits 

0.01 wt% for As, Pb and Zn, 0.008 for MoS 2 , and 0.005 for Cu; 

Peroxide fusion ICP/MS analysis for Bi and In (method code 8). Detection limits 2 ppm for Bi 

and 0.2 ppm for Indium; and 

Fusion XRF for Sn and W (method code 8). Detection limits 0.002 wt% for Sn and 

0.003wt% for WO 3 . 

Actlabs is ISO/IEC 17025 and CAN-P-1579 (Mineral Analysis) accredited by the Standards 

Council of Canada ("SCC"). 

All of the Adex 262 pulp samples selected to verify the 2008 drilling results were dispatched 

directly from SGS to Actlabs for analyses. Adex did not handle these samples. Each of the 

samples was analyzed for tin, indium, zinc, copper, lead, tungsten, molybdenum, bismuth, and 

arsenic using the Actlabs analytical methods described above. 

The Phase I samples collected by Adex of the historical drill core were submitted to both SGS 

and Actlabs for analyses. All samples were analyzed for indium with sixty-five samples analyzed 

also for tin, zinc, copper, lead, tungsten, molybdenum, bismuth and arsenic using the analytical 

methods described above. 

All 407 samples of the Phase II historical assay verification program were submitted to both SGS 

and Actlabs for analyses. The 154 quarter split core samples were dispatched to Actlabs and 

analyzed for indium, arsenic, bismuth, copper, molybdenum, lean tin, tungsten and zinc using the 

analytical methods described above. 

The 252 pulps from long-term storage at the mine-site were submitted to SGS for analyses for 

indium, arsenic, bismuth, copper, molybdenum, lean tin, tungsten and zinc using the analytical 

methods described above. Fifteen samples from drill hole LNZ6 were only analyzed for indium 

(samples 13058-13062 and 13084-13093). Additional information regarding historical core and 

pulp sample analyses for indium are described in Section 14.3 of this report. 

The high-definition mineralogy assessment completed at SGS Lakefield was completed using 

QEMSCAN technology and X-ray diffraction analyses. A separated Electron Microprobe analysis 

was completed on the indium carrying minerals. 

13.2 WGM Analytical Methods 

Watts, Griffis and McOuat’s (2009) 41 quarter split drill core samples and standards were 

dispatched to SGS in Don Mills, Ontario. The following analytical methods were used to assay the 

samples: 

 

 

Preparation code PRP89 as described above; 

Ore grade analysis using method ICP90Q for Cu, Pb, Zn, As, Sn, Bi, Mo and W as described 

above; 





 

 

 

A 50 g pulp fire assayed for gold, ICP-AES finish (method FAI505); 

IC90M for In as described above with over-limit In analyses by ICP90Q; and, 

A 50 g pulp assayed for Ag (method AAA50). Silver by method AAS21E for trace element 

concentrations was also completed by three acid aqua regia digest, AAS finish. 

One standard sample MP-2 was submitted with this batch of samples as part of WGM’s QA/QC 

procedures and is the same standard inserted by Adex in sample shipments to the various 

laboratories. This tungsten-molybdenum ore reference material has been certified by CANMET 

Mining and Mineral Sciences Laboratories located in Ottawa, Ontario as part of the Canadian 

Certified Reference Materials Project ("CCRMP"). The certified values will not be reported here to 

ensure its continued use in future Adex diamond drilling programs. 





SECTION 14.0 DATA VERIFICATION 

14.1 General 

In 2008, Adex conducted it’s own two-phase diligence program to verify the historical assay 

results obtained by previous operators that explored the North Zone on the Mount Pleasant 

property. Adex also dispatched pulp samples to a secondary certified laboratory to verify their 

2008 diamond drilling assay results. WGM collected split core samples of mineralized core from 

34 of the 2008 North Zone drill holes and SGS-Geostat Ltd. completed an audit of the Gemcom 

database provided by Adex to calculate the mineral resource estimate (see Section 17.0). The 

results of these corroboration efforts are detailed in Watts, Griffis and McOuat (2009) and 

summarized below. 

14.2 Adex Assay Verification of the 2008 Diamond Drilling 

At the completion of the 2008 diamond drilling program, Adex dispatched 262 pulp samples, or 

approximately 10% of the total split core samples, from SGS to Actlabs for recheck assay 

verification as part of their due diligence QA/QC procedures. Each of the samples was analyzed 

for tin, indium, zinc, copper, lead, tungsten, molybdenum, bismuth, and arsenic. 

Watts, Griffis and McOuat (2009) reviewed these data and prepared a series of scatter graphs 

comparing the analytical results from the two laboratories for tin, indium, zinc, copper, tungsten 

and molybdenum and arsenic. An examination of the raw data and plots by WGM indicates that, 

overall, the assay results between the two different laboratories compared very well. Two pulp 

samples collected from drill hole AM-08-10 demonstrated very poor repeatability for copper 

between the two laboratories. At SGS, sample 18041 assayed 1.98% Cu with the Actlab result 

returning no significant values (



All samples were analyzed for indium with sixty-five samples analyzed also for tin, zinc, copper, 

lead, tungsten, molybdenum, bismuth and arsenic. 

Watts, Griffis and McOuat’s (2009) examination of the raw data and scatter graph plot indicate 

that, overall, the assay results between the two certified laboratories compared very well. Sample 

number 19400 collected from drill hole AM96-7 representing a split of previously un-split drill core 

returned 0.14% WO 3 at SGS but only trace concentrations of 0.02% WO 3 at Actlabs. Again, SGS 

returned higher molybdenum concentrations for the same sample of 0.05 % MoS 2 with Actlabs 

returning only 0.01% MoS 2 . 

14.4 Adex Verification of Historical Assay Results (Phase II) 

Adex submitted 407 samples collected from the historical drilling programs for assay verification 

as part of their own due diligence exercise. A total of 154 samples were taken as quarter split 

samples from 40 drill holes from the following programs: 

 

 

26 underground holes drilled by Lac-Billiton in 1986 (C Series holes) for a total of 119 split 

core samples; and 

14 surface holes drilled by Brunswick Tin Mines between 1969 and 1975 for a total of 35 split 

core samples (MPS Series holes). 

These samples were dispatched to Actlabs to be analyzed for indium, arsenic, bismuth, copper, 

molybdenum, lean tin, tungsten and zinc. 

A total of 253 pulps, originally placed in long-term storage at the minesite, from nine holes drilled 

from 1987 to 1988 by Lac-Billiton drill were collected by Adex. These samples were packaged 

and submitted to SGS for analyses for indium, arsenic, bismuth, copper, molybdenum, lean tin, 

tungsten and zinc. Fifteen samples from drill hole LNZ6 were only analyzed for indium (samples 

13058-13062 and 13084-13093). 

Watts, Griffis and McOuat’s (2009) examination of the raw data and scatter graph plot indicate 

that, overall, the assay results between the two certified laboratories compared very well. Of the 

drill core selected for these comparative analyses, only 70 samples (1 split core sample and 69 

pulps) were historically analyzed for indium as follows: 

 

 

 

 

 

Hole C141 with one quarter split core analysed for indium at SGS; 

Hole LNZ11, pulp samples 13233 and 13171 analyzed at Actlabs; 

Hole LNZ10A, pulp samples 13172-13196 (25 samples) analyzed at Actlabs; 

Hole LNZ7, pulp samples 13094-13122 (29 samples) analyzed at Actlabs; and 

Hole LNZ5, pulp samples 13001-13013 (13 samples) analyzed at Actlabs. 

Two samples, were removed due to poor assay repeatability. Sample 13171 from hole LNZ11 

historically assayed 357 ppm In but Actlabs returned only 24.2 ppm In. As for sample 13173 from 

hole LNZ10A, the historical assay value was 144 ppm In with Actlabs only returning 10 ppm In. 

The reason for these erroneous returns is not know but laboratory sample preparation 

contamination is one possible explanation. The remaining indium assay comparisons between 

the historical values and either SGS or Actlabs were very good. 





Approximately 45% of the 391 samples comparing historical tin assay results with the secondary 

laboratory showed considerable scatter and poor repeatability for certain samples that originally 

assayed greater than 0.5% Sn. A total of 19 samples, 17 quarter split cores and 2 pulps, 

demonstrated the worst assay re-check repeatability, most being those assayed at Actlabs with 

the historical assay values always being significantly higher in grade. However, the tin assay 

results compare reasonably well between the historical and re-check laboratory when these 19 

samples are removed from the database. 

The database contained 341 samples that were analyzed for zinc. Three re-check samples for 

zinc returned very poor assay repeatability. In each case the historical assay results were much 

higher in grade than the check laboratory. These were also the same samples that produced poor 

assay re-checks for indium and tin. With these three samples removed from the database, the 

assay results between the historical and check laboratory showed good grade comparisons. 

Sample 13233 returned the highest historical zinc assay of 11.62% Zn with the pulp check 

assaying 9.71% Zn at SGS. 

A total of 81 samples within the database did not have any copper assay values for the historical 

analyses. Four historical sample assays returned very poor assay repeatability where the original 

assay grades were significantly higher than the recheck assays values obtained by SGS and 

Actlabs; three of the samples were the same as those that repeated poorly for indium, tin and 

zinc. Once these samples were removed from the database, the historical and recheck assays 

then compared reasonably well for 310 samples. Sample 13014 from drill hole LNZ5 returned the 

highest copper assay grade. 

A total of 36 samples were removed from the database of 391 samples as the historical assays 

did not include any tungsten assays. The best sample was obtained from hole LNZ12 (sample 

13293) whose historical assay was 3.27% WO 3 with a check assay of the quarter split core of 

4.76% WO 3 at SGS. Overall, the historical assays were, in general, higher in tungsten grade than 

those assayed at SGS. A scatter plot of the historical assays with the check assay laboratory 

compared reasonably well. Seven historical assays were found to have very poor repeatability. 

Sample 13293 was removed from the plot to better display the overall trend of majority of the 

sample represented by lower tungsten grades. 

Forty-one check assays of six historical drill holes clearly demonstrate little to no repeatability 

between the historical assay grades for molybdenum and the check laboratory. The worst assay 

repeats where observed from 39 pulps dispatched by Adex to SGS from holes LNZ 9, 10A, 11, 

and 12. A majority of these samples, originally assaying greater than 0.10 wt% MoS 2 , returned no 

significant molybdenum at SGS (less than 0.02wt% MoS 2 ). Each of these poor sample results 

should be further investigated. Removing these samples from the database shows a better 

correlation between the historical and check assay results but there is still some scatter to the 

data, irrespective of the check laboratory used. 

A scatter plot of 369 historical assays with the check laboratory for bismuth demonstrates a very 

poor repeatability of assay grades especially for the pulp samples assayed at Actlabs. Seventytwo 

samples were found to return the poorest assay repeats. Overall, the historical assays were 

very consistently greater than those returned by both Actlabs and SGS regardless if the sample 

was a quarter split of the remaining drill core or a stored pulp sample. Sample 13293 returned 

0.79% Bi with a historical assay grade of 0.99% Bi, the highest bismuth assay within the 

database. 





Only the check assay laboratory results were entered into the GEMCOM database for the 

resource calculation for both molybdenum and bismuth due to the poor assay repeatability 

between historical assays and those obtained at either SGS or Actlabs. However, the reasons 

behind the difference in assay results require further investigation. 

14.5 WGM Data Corroboration 

The reader is referred to the Technical Reports prepared by WGM covering the 2005 and 2008 

field visits to the minesite regarding the North Zone (Watts, Griffis and McOuat Limited (2006, 

2008 and 2009). 

In 2008, WGM conducted three visits to the Mount Pleasant Property. The first visit was 

completed from May 2 to May 6, 2008 upon the completion of North Zone drill hole AM-08-07. A 

second and third visit was conducted from June 23 to 26 and November 24 to 28, 2008 upon the 

completions of the Phase I and Phase II drill programs, respectively. 

During each visit, all of the new exploration work was reviewed, the 2008 drill core was examined 

and each of the drill sites was visited. A GPS (Garmin 12XL) was used to record the locations of 

the drill collar casings (NAD83, Zone 19T). Digital photographs were taken to document the field 

visit and sampling activities. 

An examination of selective portions of the historical drill core and a majority of the 2008 diamond 

drill core from each of the subzones that comprise the North Zone porphyry deposit allowed 

WGM to verify the presence of significant tin, zinc, tungsten and molybdenum mineralization. 

A total of 41 samples were taken to determine their precious and base metal concentrations and 

confirm the 2008 diamond drill program assay results. While reviewing the drill core, the sample 

tags and intervals were randomly verified for accuracy. Each WGM sample was a ¼ split of an 

original sample interval collected by Adex. Overall, the assay results compare very well with the 

original assays obtained over the same intervals by Adex (see Watts, Griffis and McOuat Limited, 

2009). The following exceptions are noted as compared to the Adex samples from the same 

interval: 

The tin concentration for WGM sample 2292 was 0.87% Sn but Adex sample 18094 was 

much lower grade (0.02% Sn). WGM sample MP004 returned 7.37% Sn whereas Adex 

sample 173685 assayed just under half that concentration at 3.94% Sn.; 

Over 95% of the indium assays compared very well. However, Adex samples 18010 

containing 92.4 ppm In and 18313 with 237 ppm In returned 1,200 ppm In and 0.6 ppm In, 

respectively, when re-assayed by WGM at SGS. Scatter graphs could not be plotted as many 

of the WGM samples returned less than 100 ppm In; 

WGM sample MP008 returned 10.73% Zn or almost eight times that of Adex sample 18010 

that assayed 1.37% Zn. The zinc concentration of WGM sample 2292 (0.25% Zn) was 

significantly higher than Adex sample 18094 that returned less than 0.01% Zn; 

The copper concentration for Adex samples 18713 (1.35% Cu) and 18849 (0.82% Cu) were 

almost double the concentrations than the copper values obtained by WGM at SGS of 0.72% 

Cu and 0.41% Cu, respectively. If these two samples are removed from the database, that 

remainder of the 39 samples compare very well between the two laboratories. 





 

The bismuth concentration for WGM sample MP112 (0.94% Bi) was 4.5 times that of Adex 

sample 18627 that assayed 0.1972% Bi. 

No significant gold assays were obtained from any of the samples. 





SECTION 15.0 ADJACENT PROPERTIES 

The reader is directed to Watts, Griffis and McOuat (2008 and 2009), which state that, "WGM is 

not aware of any technical information regarding any adjacent properties that would be relevant to 

Mount Pleasant nor has the client brought WGM's attention to such information or data". 





SECTION 16.0 MINERAL PROCESSING AND METALLURGICAL TESTING 

Mineral processing and metallurgical testing relative to the development of the conceptual 

process flowsheets upon which this Preliminary Assessment is based on test programs currently 

in progress and no data is available to report at this time. The test programs currently in progress 

are based on the conceptual flowsheet as defined by Thibault & Associates Inc. for the 

preliminary assessment. 

The reader is directed to the Watts, Griffis and McOuat technical report entitled, "A Technical 

Review of the Mount Pleasant Property, Including a Mineral Resource Estimate of the North 

Zone, Southwestern New Brunswick for Adex Mining Inc." (Watts, Griffis and McOuat Limited, 

2009) for a description of the most recent (2006 to present) test work that has completed on the 

Property. The reader is further directed to the Watts, Griffis and McOuat technical report entitled, 

"A Technical Review of the Mount Pleasant Property, Including a Mineral Resource Estimate for 

the Fire Tower Zone, Southwestern New Brunswick for Adex Mining Inc." (Watts, Griffis and 

McOuat Limited, 2006) for a description of historical mineral processing and metallurgical testing 

completed on the property prior to 2006. 





SECTION 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATE 

17.1 General 

The global Mineral Resource estimation for the North Zone completed by Watts, Griffis McOuat 

Limited ("WGM") and SGS - Geostat in the NI 43-101 Technical Review of The Mount Pleasant 

Property, including A Mineral Resource Estimate on the North Zone, Southwestern New 

Brunswick filed on SEDAR in May, 2009 is listed and discussed again below in accordance with 

NI 43-101 and have been estimated in conformity with generally accepted CIM "Estimation of 

Mineral Resource and Mineral Reserves Best Practices" guidelines. A summary of the North 

Zone - Mineral Resource estimates is provided in Table 17-1. 

The four zones classified as Indicated were estimated using ordinary kriging for the four major 

elements (tin, indium, zinc and arsenic), the remaining elements tabulated below were estimated 

using the Inverse Distance interpolation method. For the four zones classified as Inferred, all 

elements were estimated using the Inverse Distance interpolation method. The mineral resources 

presented below are the strict accumulation of in-situ block tonnages above the set cut-off 

grades. No dilution factor was applied. 

SUB- 

ZONES 

Table 17-1: Mount Pleasant North Zone 2009 NI 43-101 Compliant Resource Estimates 

TONNAGE 

[2] 

INDICATED RESOURCES 

%Sn 

g/t In 

g/t In 

[1] 

%Zn %As %WO 3 %MoS 2 %Cu %Bi 

Deep Tin 5,006,000 0.39 101.0 95.2 0.86 1.25 0.08 0.06 0.14 0.08 

Endogran. 4,336,000 0.55 21.8 20.3 0.28 0.85 0.12 0.06 0.10 0.09 

Upper Deep 

Tin 

838,000 0.22 102.8 94.9 1.36 0.76 0.08 0.06 0.07 0.05 

#4 Tin Lode 702,000 0.25 74.1 74.1 1.00 0.19 0.01 0.01 0.09 0.00 

TOTAL 10,882,000 0.43 67.8 64.0 0.67 0.98 0.09 0.06 0.11 0.08 

INFERRED RESOURCES 

#1-3 Tin 

Lode 

2,345,000 0.18 76.8 73.5 1.08 0.28 0.02 0.03 0.09 0.01 

#5 Tin Lode 1,267,000 0.15 115.4 111.3 1.50 0.70 0.07 0.04 0.08 0.03 

North Adit 3,076,000 0.27 62.1 62.1 0.83 1.16 0.09 0.06 0.09 0.07 

North W-Mo 915,000 0.26 54.3 49.8 0.58 1.14 0.25 0.12 0.12 0.10 

TOTAL 7,603,000 0.22 74.6 72.3 0.99 0.80 0.08 0.05 0.09 0.05 

Table Notes: 

[1] Capped indium grade. 


The resource estimate for the Sn-In-Zn sub-zones was based on a cut-off grade of 0.25% Sn 

equivalent ("Sn Eq.") equal to %Sn + 41.67 x %In. The 0.25% Sn Eq. cut-off grade was provided 

by Adex based on a value of the mineralized material of US$30/tonne derived from the previous 

six-year price trend and price relationship between tin and indium using an estimated tin price of 

US$12.0/kg and indium price of $500/kg. Zinc was not incorporated into the estimation of the cutoff 

grade. In consultation with WGM and based upon these metal prices, Adex has determined 

that 0.25% Sn Eq. is an acceptable cut-off grade to report the resources. 





A policy of capping of high indium grades was implemented based upon the statistical distribution 

of the metal within each individual sub-zone. Hence the Upper Deep Tin, Deep Tin, #5 Tin Lode, 

#1-3 Tin Lode, Endogranitic and North W-Mo sub-zones had capped indium grades at 965, 830, 

750, 500, 200 and 200 g/t, respectively. No capping of indium was required for the North Adit or 

the #4 Tin lode. 

Paul Dunbar, M.Sc., P. Geo., Senior Associate Geologist of WGM, an independent qualified 

person as defined by NI 43-101, carried out site visits to the Property in May and June, 2008 

during which he examined the drilling program and core, and completed check sampling and 

assaying of core samples. Robert de l’Etoile, P.Eng. Geological Engineer of SGS – Geostat, an 

independent qualified person as defined by NI 43-101, checked assay results against the 

GEMCOM database. The database verification found no significant discrepancies in the 

geological information, which conformed to industry standards. Pulp duplicates of the drill core 

samples, unknown to the laboratory, were sent to a second laboratory fulfilling standard QA/QC 

protocols. 

The Mineral Resources are reported in accordance with Canadian Securities Administrators’ NI 

43-101 and have been estimated in conformity with generally accepted CIM "Estimation of 

Mineral Resource and Mineral Reserves Best Practices" guidelines. For the purposes of this 

report, the relevant definitions of the CIM guidelines are as follows: 

 

 

 

 

A ‘Mineral Resource’ is a concentration or occurrence of diamonds, natural solid inorganic 

material, or natural solid fossilized organic material including base and precious metals, coal, 

and industrial minerals in or on the Earth’s crust in such form and quantity and of such a 

grade or quality that it has reasonable prospects for economic extraction. The location, 

quantity, grade, geological characteristics and continuity of a Mineral Resource are known, 

estimated or interpreted from specific geological evidence and knowledge. 

An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade 

or quality can be estimated on the basis of geological evidence and limited sampling and 

reasonably assumed, but not verified, geological and grade continuity. The estimate is based 

on limited information and sampling gathered through appropriate techniques from locations 

such as outcrops, trenches, pits, workings and drill holes. 

An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade 

or quality, densities, shape and physical characteristics, can be estimated with a level of 

confidence sufficient to allow the appropriate application of technical and economic 

parameters, to support mine planning and evaluation of the economic viability of the deposit. 

The estimate is based on detailed and reliable exploration and testing information gathered 

through appropriate techniques from locations such as outcrops, trenches, pits, workings and 

drill holes that are spaced closely enough for geological and grade continuity to be 

reasonably assumed. 

A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or 

quality, densities, shape, and physical characteristics are so well established that they can be 

estimated with confidence sufficient to allow the appropriate application of technical and 

economic parameters, to support production planning and evaluation of the economic viability 

of the deposit. The estimate is based on detailed and reliable exploration, sampling and 

testing information gathered through appropriate techniques from locations such as outcrops, 

trenches, pits, workings and drill holes that are spaced closely enough to confirm both 

geological and grade continuity. 





Mineral Resource classification is based on certainty and continuity of geology and grades. In 

most deposits, there are areas where the uncertainty is greater than others. The majority of the 

time this is directly related to drilling density. Areas more densely drilled are usually better 

understood than areas with sparser drilling. 

The North Zone has been separated into eight sub-zones that have distinct chemical 

characteristics and geographical locations. They are distributed over an area of 450 by 250 

meters extending from the surface to a vertical depth of 450 meters and are described as follows: 

 

 

 

 

 

 

 

 

Deep Tin Zone ("DTZ"); The DTZ is located at depth extending from 140 to 270m vertical 

depth. It presents high Sn, In, and Zn grades. It presents a good drilling density and about 

85% of the samples have assayed In. 

Endogranitic Zone ("Endo"); The Endo zone is located at depth extending from 250 to 450m 

vertical depth and presents high Sn grades. It presents a good drilling density and about 50% 

of the samples have assayed In. 

Upper Deep Tin Zone ("DTZ-UP"); The DTZ-UP is located above the DTZ zone. It presents 

high Zn and In grades but lower Sn grades. It presents a good drilling density and about 70% 

of the samples have assayed In. 

#4 Tin Lode ("4-Lode"); The #4 Lode zone is exposed on surface and extends to a vertical 

depth of 70m. It has high Sn, In and Zn grades. It presents a good drilling density and about 

65% of the samples have assayed In. 

North Adit Zone ("N-Adit"); The N-Adit zone consists of four 4 mineralized regions distributed 

from the surface to a vertical depth of 250m. It has low Sn, In, Zn, WO 3 and Bi grades. This 

zone is fragmented into many pods and the drilling density is lower than the above zones. 

Also, approximately 65% of the samples have assayed In. 

#5 Tin Lode Zone ("5-Lode"); The 5-Lode zone is exposed on surface and extends to a 

vertical depth of 70m. It presents high Zn and In grades but lower Sn grades. The drilling 

density is good but only approximately 45% of the samples have assayed In grades. 

#1-3 Tin Lode Zone ("1-3 Tin"); The 1-3 Tin Lode zone is made of several lodes, is exposed 

on surface and extends to a vertical depth of 160m. It has variable In, Zn and Sn grades. The 

drilling density is good but only approximately 5% of the samples have assayed In grades. 

North W-Mo Zone ("W-Mo"); The W-Mo zone consists of three mineralized regions extending 

from 80 to 350, vertical depth. It has variable WO 3 , MoS 2 , Sn, Zn and In grades. The drilling 

density is poor and only approximately 20% of the samples have assayed In grades. 

17.2 Drill Hole Database Used 

The drill hole database used contains a total of 633 drill holes, 1,138 hole survey records and 

28,149 assay records for a cumulated drill hole length of 86,613m. It contains both historical and 

modern drill holes. A decision to use all drill holes available was taken after thorough verification 

of re-assays of archived core (see Section 14.0). 

Indium grades were absent from the majority of the drill hole assays (71% of the assays are 

missing In). The following section describes the inference of indium grades as a function of Zn. 

Assays having a grade of 0.0 were treated as such with the exception of In where a value of 0.0 

was considered as missing. Also, the values below detection limit were coded as the negative 

value of the detection limit (with the exception of -1 meaning missing value). Those values, for the 

purpose of resource estimation were re-coded as positive half of the detection limit. 





The following figures present schematic views of the drill hole locations. As can be seen in the 

global vertical cross-sections, holes have been drilled both from the surface and from 

underground workings. 

Figure 17-1: Global Plan View Showing Drill Hole Traces 

(Figure Credit: SGS - Geostat) 

Figure 17-2: Global Vertical Cross-Section Looking North Showing Drill Hole Traces 

(Figure Credit: SGS – Geostat) 





17.3 Basic Statistics of Drill Hole Assay Data 

Table 17-2 presents the basic statistics of all of the drill hole assays. All drill holes are grouped 

together. 

nb0 23,120 7,984 15,226 22,810 18,958 25,042 17,224 21,884 17,525 

Total 28,150 28,150 28,150 28,150 28,150 28,150 28,150 28,150 28,150 

Minimum (excludes



Figure 17-3: Scatter-gram of Zinc Versus Indium Grade Assays 


17.5 Interpretation of the Mineralized Zones 

The eight mineralized zones have been interpreted by Adex geologists. Basically, these zones 

have been interpreted by contouring grades on cross-sections and by linking the cross-sections 

into 3D solids. WGM has inspected the solids against drill hole lithology and grades and agrees 

with the current interpretation as a basis for the mineral resource estimation. There appears to be 

no relationship between lithology and grade. Grades cross lithological boundaries. For this 

reason, the 3D solids are derived mostly from grade variations. The following figures present 

sketches of the 3D solids used in this study. For the purpose of resource estimation, only the 

material found inside the 3D solids are considered potentially mineralized and anything outside 

them is treated as too low grade at the applied cut-off to be considered part of the resource 

material (not modeled). 

NOTE: In Figure 17-4, Figure 17-5 and Figure 17-6, “DTZ-UP Surf” refers to “#5 Tin Lode”. 





Figure 17-4: Schematic Plan View of the Geological Interpretation Showing Location of 


Figure 17-5: Vertical Cross-section Looking North of the Geological Interpretation Showing Location of Zones 






Figure 17-6: Schematic Vertical Cross-section Looking West of the Geological Interpretation Showing Location of 

Zones (Figure Credit: SGS – Geostat) 

For this Preliminary Economic Assessment, the review of the NI 43-101 resource estimations of 

the sub-zones that make up the North Zone focuses on the Deep Tin, Upper Deep Tin, North Adit 

and the shallowly emplaced #1-6 tin lode deposits, but excludes the Endogranitic and North W- 

Mo sub-zones. 

17.6 Sample Compositing 

In order to proceed with a geostatistical analysis, the drill hole samples must be regularized into 

equal length composites. The selected composite length was 3 meters. This length coincides with 

the most frequent sample length as shown in the histogram of sample lengths below. Composites 

were created from the start of the hole down to the end. Composites with a sample length less 

than 1.5 meters were discarded. Figure 17-7 presents a histogram of the drill hole sample 

lengths. 





60.00 

Histogram of sample length North Zone 

Relative Freq 

54.00 

48.00 

42.00 

36.00 

30.00 

24.00 

18.00 

12.00 

6.00 

Length 

0.00 

0.000 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 10.000 

Figure 17-7: Histogram of Drill Hole Sample Lengths 

(Figure Credit: SGS - Geostat) 

Composites were further separated in distinct data sets, one per mineralized zone. Regarding 

indium grades, the statistical distributions show high grades highlighting the presence of outliers. 

WGM considered pertinent to apply capping in order to reduce the effect of the very high In 

values during the interpolation process. The following sub-sections summarize the compositing 

and In grade capping in each mineralized zone. WGM has used a capping method based on the 

relative metal contribution of highest grade composites. This method applies capping such that 

not more than 10% of indium metal is found in less than 1% of the highest grade composites. 

17.6.1 Compositing and In Grade Capping in the Deep Tin Zone 

Table 17-3 presents the basic statistics of the 3m composites in the DTZ zone. 

%Sn 

Table 17-3: Basic Statistics of the 3m Composites in the DTZ Zone 

g/t In 

In 

Capped 

%WO 3 %MoS 2 %Cu %Zn %Bi %As %Pb 

Average 0.32 83.11 77.85 0.08 0.06 0.10 0.71 0.07 1.04 0.03 

Minimum 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Maximum 8.40 

1784.2 

2 

830.00 1.16 0.45 5.69 14.33 2.87 16.87 2.49 

St. Dev 0.66 184.65 153.35 0.11 0.06 0.32 1.44 0.11 1.30 0.12 

COV 203% 222% 197% 142% 98% 325% 204% 149% 125% 432% 

Count 1456 1456 1456 1456 1456 1456 1456 1456 1456 1456 





As can be seen in Figure 17-8, a grade capping level of 830 ppm In keep the metal contribution to 

a maximum of 10:1. The effect of capping at 830 ppm is a metal loss of 6.3% and 1.6% of the 

composites are affected by the capping (23 composites). 

Figure 17-8: Indium metal contribution graph in DTZ zone - Grade Capping 

Histograms and cumulative frequency plots of the four major elements (Sn, In, Zn and As) can be 

found in Watts, Griffis and McOuat (2009). 

17.6.2 Compositing and In Grade Capping in the Upper Deep Tin Zone (DTZ-UP) 

Table 17-4 presents the basic statistics of the 3m composites in the DTZ-UP zone. 

Table 17-4: Basic Statistics of the 3m Composites in the DTZ-UP Zone 

%Sn g/t In In Capped %WO 3 %MoS 2 %Cu %Zn %Bi %As %Pb 

Minimum 0.00 0.40 0.40 0.00 0.00 0.00 0.01 0.00 0.00 0.00 

Maximum 3.37 3600.00 965.00 1.02 0.22 4.89 15.30 0.62 8.11 0.81 

Average 0.17 96.53 80.46 0.08 0.06 0.07 1.16 0.05 0.71 0.02 

St. Dev. 0.38 293.05 147.31 0.09 0.04 0.32 1.90 0.05 1.04 0.05 

C.O.V. 227% 304% 183% 109% 63% 428% 164% 107% 147% 303% 

Count 344 344 344 344 344 344 344 344 344 344 

As can be seen in Figure 17-9, a grade capping level of 965 ppm In keep the metal contribution to 

a maximum of 10:1. The effect of capping at 965 ppm is a metal loss of 16.6% and 1.2% of the 

composites are affected by the capping (four composites). 





80 

Capping of Indium composites in DTZ‐UP zone 

70 

60 

50 

% metal 

40 

30 

Uncapped 

Capped 

20 

10 

0 

0 1 2 3 4 5 6 7 8 9 10 

% Composites 

Figure 17-9: Indium metal contribution graph in DTZ-UP zone - Grade Capping 



17.6.3 Compositing and In Grade Capping in the #4 Tin Lode Zone 

Table 17-5 presents the basic statistics of the 3m composites in the 4-Lode zone. 

Table 17-5: Basic Statistics of the 3m Composites in the #4 Tin Lode Zone 


Minimum 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Maximum 3.85 713.06 713.06 0.23 0.08 0.95 7.02 0.09 4.01 1.03 

Average 0.27 81.27 81.27 0.01 0.01 0.09 1.05 0.01 0.24 0.06 

St. Dev. 0.41 101.11 101.11 0.03 0.01 0.13 1.18 0.01 0.44 0.11 

C.O.V. 150% 124% 124% 224% 92% 136% 113% 187% 189% 191% 

Count 417 417 417 417 417 417 417 417 417 417 

As can be seen in Figure 17-10, no capping is required as the 10:1 ratio is never exceeded. 





60 

Capping of Indium composites in 4‐Lode zone 

50 

40 

% metal 

30 

20 

Uncapped 

10 

0 

0 1 2 3 4 5 6 7 8 9 10 

% Composites 

Figure 17-10: Indium Metal Contribution Graph in #4 Tin Lode Zone - Grade Capping 

Histograms and cumulative frequency plots of the 4 major elements (Sn, In, Zn and As) can be 


17.6.4 Compositing and In Grade Capping in the #1-3 Tin Lode Zone 

Table 17-6 presents the basic statistics of the 3m composites in the #1-3 Tin Lode zone. 

Table 17-6: Basic Statistics of the 3m Composites in the #1-3 Tin Lode Zone 


Minimum 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Maximum 7.30 1600.00 500.00 1.37 0.53 5.65 15.55 0.25 7.62 10.82 

Average 0.13 48.79 47.36 0.01 0.03 0.06 0.65 0.01 0.17 0.07 

St. Dev. 0.38 86.80 74.05 0.04 0.03 0.20 1.26 0.02 0.49 0.34 

C.O.V. 282% 178% 156% 359% 103% 324% 193% 268% 285% 464% 

Count 2208 2208 2208 2208 2208 2208 2208 2208 2208 2208 

As can be seen in Figure 17-11, a grade capping level of 500 ppm In keep the metal contribution 

to a maximum of 10:1. The effect of capping at 965 ppm is a metal loss of 2.9% and 0.6% of the 






60 

Capping of Indium composites in 1‐3 Lode zone 

50 

40 

% metal 

30 

20 

Uncapped 

Capped 

10 

0 

0 1 2 3 4 5 6 7 8 9 10 

% Composites 

Figure 17-11: Indium Metal Contribution Graph in #1-3 Tin Lode Zone - Grade Capping 



17.6.5 Compositing and In Grade Capping in the #5 Tin Lode Zone 

Table 17-7 presents the basic statistics of the 3m composites in the #5 Tin Lode. 

Table 17-7: Basic Statistics of the 3m Composites in the #5 Tin Lode Zone 


Minimum 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Maximum 4.51 1400.00 750.00 4.20 0.24 0.94 13.50 0.36 10.05 1.14 

Average 0.09 73.69 70.88 0.06 0.04 0.06 1.00 0.03 0.58 0.05 

Str.Dev. 0.28 147.44 129.69 0.20 0.04 0.09 1.65 0.04 1.05 0.10 

C.O.V. 305% 200% 183% 329% 89% 165% 165% 150% 181% 204% 

Count 598 598 598 598 598 598 598 598 598 598 

As can be seen in Figure 17-12, a grade capping level of 750 ppm In keep the metal contribution 

to a maximum of 10:1. The effect of capping at 965 ppm is a metal loss of 3.8% and 1.3% of the 






60 

Capping of Indium composites in DTZ‐Up Surf zone 

50 

40 

% metal 

30 

20 

Uncapped 

capped 

10 

0 

0 1 2 3 4 5 6 7 8 9 10 

% Composites 

Figure 17-12: Indium Metal Contribution Graph in #5 Tin Lode Zone - Grade Capping 



17.6.6 Compositing and In Grade Capping in the North Adit Zone 

Table 17-8 presents the basic statistics of the 3m composites in the North Adit Zone. 

Table 17-8: Basic Statistics of the 3m Composites in the N-Adit Zone 


Minimum 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Maximum 7.78 516.00 516.00 1.71 0.43 1.58 13.40 1.54 21.00 1.70 

Average 0.25 45.10 45.10 0.09 0.06 0.08 0.59 0.07 1.18 0.03 

St. Dev. 0.58 66.73 66.73 0.14 0.05 0.16 1.11 0.10 1.75 0.11 

C.O.V. 230% 148% 148% 155% 98% 188% 189% 157% 149% 391% 

Count 866 866 866 866 866 866 866 866 865 866 

As can be seen in Figure 17-13, no capping is required as the 10:1 ratio is never exceeded. 





60 

Capping of Indium composites in N‐Adit zone 

50 

40 

% metal 

30 

20 

Uncapped 

10 

0 

0 1 2 3 4 5 6 7 8 9 10 

% Composites 

Figure 17-13: Indium Metal Contribution Graph in N-Adit Zone - Grade Capping 



17.7 Variography 

The variogram analysis is a process by which spatial continuity of grade is quantified. The 

resulting variograms are then used in the geostatistical interpolation method called Kriging. WGM 

decided to restrict the geostatistical analysis to the four zones that will be classified as Indicated 

(DTZ, Endo, DTZ-UP and #4 Lode). Moreover, only the four major elements will be processed 

geostatistically (Sn, In, Zn, As). The remaining four zones (#1-3 Tin Lode, #5 Lode, W-Mo and N- 

Adit) will be estimated by the Inverse Distance interpolation method. Likewise, in the 4 zones 

treated geostatistically, the remaining 5 elements (WO 3 , MoS 2 , Cu, Bi and Pb) will be estimated 

by the Inverse Distance interpolation method. 

Watts, Griffis and McOuat (2009) summarize with some detail the variogram analysis of the four 

indicated zones with individual variograms for the four elements within the four zones undergoing 

Kriging. 

17.8 Block Model and Estimation Parameters 

17.8.1 Block Model Geometry 

The mineral resources of the North Zone are estimated using a block modeling methodology. In 

this method, the deposit is covered by an array of regular blocks and the blocks falling inside the 

mineralized zones are estimated. Table 17-9 presents the block grid parameters. 





Table 17-9: Block Model Geometry 

East North Elevation 

Grid origin 15200 13385 825 

Block size 5m 5m 5m 

Minimum coordinate 15200 13385 825 

Maximum coordinate 15700 13990 1350 

Number of blocks 101 122 106 

The coordinates mentioned above are those of the block centroids. The block model origin is the 

centroid of block (1,1,1). This same grid is applied to all the mineralized zones. The individual 

blocks are assigned a mineralized zone if the block centroid falls inside it. The blocks are either 

100% inside or 100 %outside a mineralized envelope, no partial or percent blocks are used. 

17.8.2 Estimation Parameters 

As mentioned in the sections above, 4 mineralized zones (DTZ, Endo, DTZ-UP and 4-Lode) were 

estimated using the kriging interpolation method and the other 4 (#1-3 Tin Lode, #5 Lode, Wo-Mo 

and N-Adit) were estimated using Inverse Distance interpolation. In the four zones treated 

geostatistically, only the 4 major elements were kriged (Sn, In, Zn and As) while the other 

elements were estimated with Inverse distance interpolation. 

In all cases, a unique search ellipse, in fact a sphere, of 50 metre radius was used. The blocks 

were estimated using a maximum of 10 composites, a minimum of 1 composite and a limit of 3 

composites from a single hole. Moreover, an octant search methodology was used applying a 

maximum of 5 composite per octant. 

For the geostatistical models, the variograms modeled in each of the 4 zones and for the 4 major 

elements were used. In the conventional models, the Inverse distance model was used and two 

alternate models, one with the nearest neighbour method and one with Inverse Square distance 

were done for comparison purposes. 

Each zone was interpolated using only the composites belonging to the same zone. 

17.8.3 Specific Gravity 

A constant specific gravity of 2.7 is used to convert in-situ volumes into tonnes. The last 

measurements on a selection of core by the wax immersion method were done in 1985. Specific 

gravities ranged from 2.29 to 3.25 with an average of 2.70. 

17.8.4 Resource Classification 

WGM elected to apply classification globally in each zone. The drilling density justifies classifying 

the zones as indicated. However, since Indium is an important contributor to the mineral resource 

and it is part of the tin equivalent function on which cut-offs are applied, it was decided classify as 

inferred the zones in which the quantity of indium assays was considered low. In fact, only 

approximately 29% of the drill hole samples were assayed for Indium. The remaining samples 

were assigned In values using a regression function based on the correlation between Zn and In. 

However, of all the samples available in the database, 10,360 are located inside one of the 8 





estimated zones and of that number 3,942 have assayed Indium (38%). Table 17-10 presents the 

proportion of assayed indium values based on the number of samples present in each zone. 

Table 17-10: Proportion of Samples Assayed for Indium per Zone 

Zone Nb of In assays No. of Assays in the Zone 

Percentage 

of Indium Assays in Zone 

DTZ 1197 1456 82.21% 

DTZ_UP 240 347 69.16% 

4_Lode 321 511 62.82% 

1_3_Tin_Lode 204 3726 5.48% 

5_Lode 287 646 44.43% 

N_Adit 516 776 66.49% 

The sub-zones, DTZ, #4 Lode and DTZ-UP were classified as Indicated and the zones #1-3 Tin 

Lode, #5 Lode and N-Adit were classified as inferred. Regarding N-Adit, the decision to classify it 

as inferred is principally based on the fact that the zone is fragmented in many isolated pods 

making the confidence level of the geological interpretation lower than the other zones. 

17.9 Mineral Resources Estimate Statement 

The North Zone deposit contains several elements of probable or possible economic value. The 

mineral resources presented in this study are based on tin and indium only. The resources are 

estimated based on the following tin equivalent function: 

Sn Eq. = Sn % + 41.67 In % 

Based upon a tin price of US$12/kg and an indium price of US$500/kg 

For resource reporting purposes, a cut-off of 0.25% Sn Eq. is used. Based on the above prices, 

one in-situ tonne at 0.25% Sn Eq. is worth US$30. No metallurgical recoveries are taken into 

account in the function. 

The mineral resources presented below are the strict accumulation of in-situ block tonnages 

above the set cut-off grades. No dilution or other factor is applied. 

17.9.1 Deep Tin 

The Deep Tin ("DTZ") Sub-Zone is one that is partially estimated by kriging (Kriged). The Table 

17-11 summarizes the results. The Kriged results for Sn, In, Zn and As and the Inverse Distance 

("ID1") results for WO3, MoS2, Cu, Bi and Pb are the retained results for the study. The Inverse 

Square Distance ("ID2") and Nearest Neighbour ("NNB") results are presented for comparison 

purposes. Regarding indium, the retained results here are those of the capped In. For 

comparison purposes, the uncapped In results are also presented. 





MODEL 

TONNAGE 

[4] 

Table 17-11: Indicated Mineral Resources of the Deep Tin Zone 

%Sn 

g/t In 

g/t In 

[1] 

%Zn %As %WO 3 %MoS 2 %Cu %Bi %Pb 

Kriged 5,006,000 0.39 100.95 95.15 0.86 1.25 NC NC NC NC NC 

ID1 5,007,000 0.39 100.70 94.95 0.87 1.26 0.08 0.06 0.14 0.08 0.03 

ID2 4,973,000 0.39 101.86 95.99 0.88 1.25 0.08 0.06 0.14 0.08 0.03 

NNB 3,230,000 0.55 145.62 138.30 1.26 1.31 0.09 0.06 0.19 0.09 0.05 

Table Notes: 


[2] Shaded cells with values in bold are those of the retained mineral resource. 

[3] Indicated mineral resources based on Sn equivalent cut-off grade of 0.25%. 


NC = not calculated in the Kriged model. 

We analyzed the sensitivity of the resources to varying Sn Eq. cut-off levels. Table 17-12 

presents the mineral resources above selected cut-off values. The tonnage and grades above the 

0.7% Sn Eq. cut-off (shown in bold) provides an estimate of the amount of high grade 

mineralization within the sub-zones. 

Table 17-12: Sensitivity of the Indicated Deep Tin Zone Resource to Variable Sn Equivalent Cut-Off Grade 

CUT-OFF 

GRADE 

(% Sn Eq.) 

TONNAGE 

[3] 

%Sn 

g/t In 

g/t In 

[1] 


0 5,987,000 0.34 86.97 82.12 0.75 1.19 0.08 0.06 0.12 0.08 0.03 

0.20 5,409,000 0.37 95.00 89.64 0.81 1.23 0.08 0.06 0.13 0.08 0.03 

0.25 5,006,000 0.39 100.95 95.15 0.86 1.25 0.08 0.06 0.14 0.08 0.03 

0.30 4,615,000 0.40 107.34 101.05 0.90 1.27 0.08 0.06 0.15 0.08 0.04 

0.35 4,185,000 0.43 115.32 108.39 0.95 1.30 0.08 0.06 0.16 0.08 0.04 

0.40 3,749,000 0.45 124.39 116.65 1.01 1.32 0.08 0.05 0.17 0.08 0.04 

0.50 3,093,000 0.49 140.24 130.90 1.11 1.37 0.09 0.05 0.19 0.09 0.04 

0.60 2,537,000 0.54 157.18 145.96 1.22 1.42 0.09 0.05 0.21 0.09 0.04 

0.70 2,090,000 0.58 174.30 161.00 1.32 1.46 0.10 0.05 0.23 0.09 0.04 

Table Notes: 




17.9.2 Upper Deep Tin 

The Upper Deep Tin ("DTZ-UP") Sub-Zone is one that is partially estimated by kriging (Kriged). 

Table 17-13 summarizes the results. The Kriged results for Sn, In, Zn and As and the Inverse 

Distance ("ID1") results for WO 3 , MoS 2 , Cu, Bi and Pb are the retained results for the study. The 

Inverse Square Distance ("ID2") and Nearest Neighbour ("NNB") results are presented for 

comparison purposes. Regarding indium, the retained results are those of the capped In. Again, 

for comparison purposes the uncapped In results are presented. 





MODEL 

TONNAGE 

[4] 

Table 17-13: Indicated Mineral Resources of the Upper Deep Tin Zone 

%Sn 

g/t In 

g/t In 

[1] 


Kriged 838,350 0.22 102.84 94.92 1.36 0.76 NC NC NC NC NC 

ID1 828,900 0.21 102.91 96.17 1.37 0.77 0.08 0.06 0.07 0.05 0.02 

ID2 796,838 0.22 106.30 99.69 1.42 0.78 0.08 0.06 0.07 0.05 0.02 

NNB 525,488 0.34 160.70 153.58 2.03 0.93 0.09 0.06 0.12 0.05 0.03 

Table Notes: 







presents the mineral resources above selected cut-off values. 

Table 17-14: Sensitivity of the Indicated Upper Deep Tin Zone Resources to Tin Equivalent Cut-Off Grade 

CUT-OFF 

GRADE 

(% Sn Eq.) 

TONNAGE 

[3] 

%Sn 

g/t In 

g/t In 

[1] 


0 1,098,000 0.18 84.79 78.74 1.16 0.70 0.08 0.06 0.06 0.05 0.02 

0.20 951,000 0.20 94.75 87.77 1.28 0.73 0.08 0.06 0.07 0.05 0.02 

0.25 838,000 0.22 102.84 94.92 1.36 0.76 0.08 0.06 0.07 0.05 0.02 

0.30 746,000 0.24 109.83 100.93 1.44 0.79 0.08 0.06 0.08 0.05 0.02 

0.35 638,000 0.26 118.84 108.44 1.55 0.84 0.09 0.06 0.09 0.05 0.02 

0.40 571,000 0.28 125.03 113.42 1.62 0.86 0.09 0.06 0.09 0.05 0.02 

0.50 465,000 0.31 136.67 122.45 1.73 0.90 0.09 0.06 0.10 0.05 0.02 

0.60 356,000 0.35 150.96 132.62 1.86 0.93 0.08 0.06 0.11 0.05 0.02 

0.70 267,000 0.39 167.86 144.12 2.00 0.93 0.08 0.06 0.12 0.05 0.02 

Table Notes: 


[2] Shaded cells with values in bold are those of the retained mineral resources. 


17.9.3 #5 Tin Lode 

The #5 Lode Sub-Zone is one that is totally estimated by Inverse Distance interpolation. Table 

17-15 summarizes the results. The Inverse Distance ("ID1") results for Sn, In, Zn, As, WO 3 , 

MoS 2 , Cu, Bi and Pb are the retained results for the study. The Inverse Square Distance ("ID2") 

and Nearest Neighbour ("NNB") results are presented for comparison purposes. Regarding 

indium, the retained results are those of the capped In. Again, for comparison purposes the 

uncapped In results are presented. 





Table 17-15: Inferred Mineral Resources of the #5 Tin Lode 

MODEL 

TONNAGE 

g/t In 

%Sn g/t In 

[4] 

[1] 


Kriged NC NC NC NC NC NC NC NC NC NC NC 

ID1 1,267,000 0.15 115.37 111.28 1.50 0.70 0.07 0.04 0.08 0.03 0.04 

ID2 1,241,000 0.16 118.79 114.86 1.51 0.72 0.07 0.04 0.08 0.03 0.04 

NNB 841,000 0.31 172.03 169.78 2.18 1.04 0.12 0.03 0.14 0.03 0.10 

Table Notes: 



[3] Inferred mineral resources based on Sn equivalent cut-off grade of 0.25%. 





CUT-OFF 

GRADE 

(% Sn Eq.) 

Table 17-16: Sensitivity of the Inferred #5 Tin Lode Resources to Tin Equivalent Cut-Off Grade 

TONNAGE 

[3] 

%Sn 

g/t In 

g/t In 

[1] 


0.00 2,475,000 0.10 72.17 70.07 1.01 0.55 0.06 0.04 0.06 0.03 0.05 

0.20 1,577,000 0.13 100.13 96.84 1.33 0.66 0.07 0.04 0.07 0.03 0.05 

0.25 1,267,000 0.15 115.37 111.28 1.50 0.70 0.07 0.04 0.08 0.03 0.04 

0.30 1,037,000 0.17 130.40 125.39 1.66 0.74 0.07 0.04 0.08 0.03 0.04 

0.35 891,000 0.18 142.33 136.51 1.78 0.78 0.07 0.04 0.09 0.03 0.04 

0.40 791,000 0.19 151.45 144.91 1.87 0.82 0.07 0.04 0.09 0.03 0.04 

0.50 618,000 0.21 172.15 163.87 2.07 0.89 0.07 0.04 0.10 0.03 0.03 

0.60 498,000 0.24 187.94 177.84 2.19 0.97 0.07 0.04 0.10 0.03 0.03 

0.70 413,000 0.26 200.71 188.93 2.24 1.02 0.07 0.04 0.11 0.03 0.03 

Table Notes: 




17.9.4 North Adit 

The North Adit sub-zone is one that is totally estimated Inverse Distance interpolation. Table 

17-17 summarizes the results. The Inverse Distance ("ID1") results for Sn, In, Zn, As, WO 3 , 

MoS 2 , Cu, Bi and Pb are the retained results for the study. The Inverse Square Distance ("ID2") 

and Nearest Neighbour ("NNB") results are presented for comparison purposes. Regarding 

indium, the retained results are those of the capped In. Again, for comparison purposes the 

uncapped In results are presented. 





MODEL 

TONNAGE 

[4] 

Table 17-17: Inferred Mineral Resources of the North Adit Zone 

%Sn 

g/t In 

g/t In 

[1] 



ID1 3,076,000 0.27 62.08 62.08 0.83 1.16 0.09 0.06 0.09 0.07 0.04 

ID2 3,021,000 0.28 64.52 64.52 0.87 1.19 0.09 0.06 0.10 0.07 0.04 

NNB 2,124,000 0.39 94.63 94.63 1.19 1.46 0.10 0.05 0.15 0.08 0.06 

Table Notes: 







presents the mineral resources above selected cut-off values. The average In and In capped are 

the same in the table below since no capping was done in this zone. 

CUT-OFF 

GRADE 

(% Sn Eq.) 

Table 17-18: Sensitivity of the Inferred North Adit Zone Resources to Tin Equivalent Cut-Off Grade 

TONNAGE 

[3] 

%Sn 

g/t In 

g/t In 

[1] 


0.00 4,260,000 0.22 51.26 51.26 0.69 1.05 0.08 0.05 0.08 0.06 0.03 

0.20 3,659,000 0.24 56.58 56.58 0.76 1.10 0.08 0.05 0.09 0.07 0.03 

0.25 3,076,000 0.27 62.08 62.08 0.83 1.16 0.09 0.06 0.09 0.07 0.04 

0.30 2,516,000 0.30 67.73 67.73 0.91 1.21 0.09 0.06 0.10 0.08 0.04 

0.35 2,035,000 0.34 73.79 73.79 1.00 1.28 0.10 0.06 0.11 0.08 0.05 

0.40 1,670,000 0.37 79.63 79.63 1.06 1.33 0.10 0.06 0.12 0.09 0.05 

0.50 1,188,000 0.45 87.32 87.32 1.09 1.41 0.10 0.06 0.14 0.10 0.05 

0.60 869,000 0.52 93.26 93.26 1.14 1.52 0.11 0.06 0.16 0.11 0.05 

0.70 616,000 0.62 94.85 94.85 1.13 1.64 0.11 0.05 0.18 0.12 0.05 

Table Notes: 




17.9.5 #4 (and #6 Tin) Lode 

The #4 Tin Lode Sub-Zone (which includes the #6 Tin Lode) was partially estimated by kriging 

(Kriged). The Inverse Square Distance ("ID2") and Nearest Neighbour ("NNB") results are 

presented for comparison purposes. Regarding indium, the retained results are those of the 

capped In. Again for comparison purposes the uncapped Indium results are also presented. 





Table 17-19: Indicated Mineral Resources of the #4 Tin Lode 

TONNAGE 

g/t In 

MODEL 

%Sn g/t In 

%Zn %As %WO 

[3] 

[1] 

3 %MoS 2 %Cu %Bi %Pb 

Kriged 702,000 0.25 74.13 74.13 1.00 0.19 NC NC NC NC NC 

ID1 715,000 0.26 75.42 75.42 1.01 0.19 0.01 0.01 0.09 0.00 0.05 

ID2 698,000 0.25 75.26 75.26 1.01 0.19 0.01 0.01 0.09 0.00 0.05 

NNB 495,000 0.29 94.01 94.01 1.28 0.24 0.01 0.01 0.10 0.00 0.07 

Table Notes: 





We analyzed the sensitivity of these resources to varying Sn Eq. cut-off levels. Table 17-20 

presents the mineral resources above selected cut-off values. The average In and In capped 

values are the same in the table below since no capping was done in this zone. 

CUT-OFF 

GRADE 

(% Sn Eq.) 

Table 17-20: Sensitivity of the Indicated #4 Tin Lode Resources to Tin Equivalent Grade 

TONNAGE 

[3] 

%Sn 

g/t In 

g/t In 

[1] 


0 764,000 0.23 70.40 70.40 0.95 0.18 0.01 0.01 0.08 0.00 0.05 

0.20 744,000 0.24 71.61 71.61 0.97 0.18 0.01 0.01 0.09 0.00 0.05 

0.25 702,000 0.25 74.13 74.13 1.00 0.19 0.01 0.01 0.09 0.00 0.05 

0.30 624,000 0.26 79.03 79.03 1.07 0.20 0.01 0.01 0.09 0.00 0.05 

0.35 507,000 0.29 87.54 87.54 1.17 0.22 0.01 0.01 0.10 0.00 0.05 

0.40 393,000 0.32 98.86 98.86 1.30 0.26 0.01 0.01 0.12 0.01 0.06 

0.50 245,000 0.40 122.78 122.78 1.59 0.36 0.02 0.02 0.15 0.01 0.06 

0.60 184,000 0.45 138.40 138.40 1.77 0.40 0.02 0.02 0.17 0.01 0.06 

0.70 145,000 0.50 151.01 151.01 1.87 0.40 0.03 0.02 0.18 0.01 0.06 

Table Notes: 




17.9.6 #1-3 Tin Lodes 

The #1-3 Tin Lodes Sub-Zone is one that is totally estimated Inverse Distance interpolation. 

Table 17-21 summarizes the results. The Inverse Square Distance ("ID2") and Nearest 

Neighbour ("NNB") results are presented for comparison purposes. Regarding indium, the 

retained results are those of the capped In. Again, for comparison purposes the uncapped Indium 

results are presented. 

MODEL 

TONNAGE 

[3] 

Table 17-21: Inferred Mineral Resources of the #1 to #3 Tin Lodes 

%Sn 

g/t In 

g/t In 

[1] 



ID1 2,345,000 0.18 76.75 73.50 1.08 0.26 0.02 0.03 0.09 0.01 0.09 

ID2 2,276,000 0.18 77.79 74.45 1.10 0.26 0.02 0.03 0.09 0.01 0.09 

NNB 1,692,000 0.25 111.91 106.60 1.61 0.30 0.03 0.03 0.13 0.01 0.14 





Table Notes: 







CUT-OFF 

GRADE 

(% Sn Eq.) 

Table 17-22: Sensitivity of the Inferred #1 to #3 Tin Lode Resources to Tin Equivalent Cut-Off Grade 

TONNAGE 

[3] 

%Sn 

g/t In 

g/t In 

[1] 


0.00 4,722,000 0.11 50.49 48.86 0.70 0.22 0.02 0.03 0.06 0.01 0.07 

0.20 2,952,000 0.16 68.13 65.54 0.95 0.25 0.02 0.03 0.08 0.01 0.08 

0.25 2,345,000 0.18 76.75 73.50 1.08 0.26 0.02 0.03 0.09 0.01 0.09 

0.30 1,837,000 0.20 86.00 81.96 1.23 0.28 0.02 0.03 0.10 0.01 0.09 

0.35 1,524,000 0.22 93.10 88.31 1.34 0.29 0.02 0.03 0.11 0.01 0.10 

0.40 1,214,000 0.24 101.31 95.53 1.47 0.29 0.02 0.03 0.12 0.01 0.10 

0.50 742,000 0.30 118.35 109.95 1.76 0.31 0.02 0.03 0.15 0.01 0.12 

0.60 479,000 0.37 134.66 123.42 2.03 0.32 0.02 0.03 0.18 0.01 0.13 

0.70 330,000 0.43 146.78 133.22 2.22 0.29 0.02 0.03 0.21 0.01 0.15 

Table Notes: 




The sensitivity analysis indicates the existence of sizable tonnages of high-grade mineralized 

material within the delineated resource material of the lode deposits. 

17.10 Global Mineral Resources Statement 

The global mineral resources are summarized in Table 17-23. The four zones classified as 

Indicated were estimated using ordinary kriging for the four major elements (Sn, In, Zn and As), 

the remaining elements were estimated using the Inverse Distance interpolation method. For the 

four zones classified as Inferred, all elements were estimated using the Inverse Distance 

interpolation method. The Endogranitic ("Endo") and North W-Mo ("W-Mo") sub zones are not 

part of the focus of this review, but are included here in this statement taken from the filed 2009 

independent NI 43-101 mineral resource estimation by WGM and SGS – Geostat for information 

purposes. 

The mineral resources shown in Table 17-23 are based on a cut-off of 0.25% Sn Eq (Sn% + 

41.67 In%) with the exception of the North W-Mo Sub-Zone that is presented both at a cut-off of 

0.25% Sn Eq and at a cut-off of 0.30% WO 3 Eq (WO 3 + 1.5 MoS 2 ) similar as with the reported NI 

43-101 resource estimation for the Fire Tower Zone (Watts, Griffis and McOuat 2008). 





Tonnage 

[1] 

Table 17-23: Global Classified Mineral Resources per Zone 

%Sn g/t In In %Zn %As %WO 3 %MoS 2 %Cu %Bi %Pb 

DTZ Indicated 5,006,000 0.39 100.95 95.15 0.86 1.25 0.08 0.06 0.14 0.08 0.03 

Endo Indicated 4,336,000 0.55 21.84 20.32 0.28 0.85 0.12 0.06 0.10 0.09 0.08 

DTZ- 

UP 

4 Tin 

Lode 

Indicated 838,000 0.22 102.84 94.92 1.36 0.76 0.08 0.06 0.07 0.05 0.02 

Indicated 702,000 0.25 74.13 74.13 1.00 0.19 0.01 0.01 0.09 0.00 0.05 

Total Indicated 10,882,000 0.43 67.84 63.96 0.67 0.98 0.09 0.06 0.11 0.08 0.05 

Sn Eq. cog used in all inferred zones 

1-3 

Tin 

Lode 

5 Tin 

Lode 

Inferred 2,345,000 0.18 76.75 73.50 1.08 0.26 0.02 0.03 0.09 0.01 0.09 

Inferred 1,267,000 0.15 115.3 111.2 1.50 0.70 0.07 0.04 0.08 0.03 0.04 

W-Mo Inferred 915,000 0.26 54.33 49.75 0.58 1.14 0.25 0.12 0.12 0.10 0.04 

N-Adit Inferred 3,076,000 0.27 62.08 62.08 0.83 1.16 0.09 0.06 0.09 0.07 0.04 

Total Inferred 7,603,000 0.22 74.56 72.32 0.99 0.80 0.08 0.05 0.09 0.05 0.05 

WO 3 Eq. of 0.3% cog used in W-Mo, Sn Eq. of 0.25% for all others 

1-3Tin 

Lode 

5- 

Lode 

Inferred 2,345,000 0.18 76.75 73.50 1.08 0.26 0.02 0.03 0.09 0.01 0.09 

Inferred 1,267,000 0.15 115.37 111.28 1.50 0.70 0.07 0.04 0.08 0.03 0.04 

W-Mo Inferred 3,279,000 0.10 23.51 21.90 0.27 1.02 0.27 0.16 0.05 0.14 0.02 

N-Adit Inferred 3,076,000 0.27 62.08 62.08 0.83 1.16 0.09 0.06 0.09 0.07 0.04 

Total Inferred 9,967,000 0.18 59.62 57.81 0.79 0.84 0.13 0.08 0.08 0.07 0.04 

Table Notes: 


17.11 Definition of High Grade Blocks Within the Deep Tin, Upper Deep Tin, North Adit and 

Lode Deposits 

Within the Deep Tin ("DTZ"), Upper Deep Tin ("DTZ-UP") and North Adit ("N-Adit") deposits there 

are pods or “crackalation volumes” of enhanced granitic in-situ brecciation which are filled with 

higher grades of tin, indium and zinc mineralization in comparison to the average grade of the 

sub-zones. Within the #1 to 6 tin lode deposits are a series of sub-vertically dipping narrow 

mineralized shoots rich in tin, indium, zinc, and copper. Resource boundaries were re-delineated 

by Trevor Boyd on NW, W-facing sections and level plans for the North Zone. The boundaries 

were re-drawn to delineate blocks of high-grade mineralized material for the economic appraisal 

of a lower-tonnage scenario in the exploitation of these mineral deposits via a proposed new 

direct access ramp to the DTZ, the already in-place 600 Adit workings plus a number of small 

surface exposures over the lodes. 

The outlines for the mineralized shoots were plotted on cross sections spaced 25 metres apart 

and boundaries were drawn halfway between drill holes. If no holes existed to limit the 

mineralization outlines, the boundaries were extended to a maximum of ten metres away from the 

nearest hole. In general, extensions of the boundaries were made consistent with the trends 

defined by joining known cut-off boundaries. A minimum intersection width of 2.0 metres and a 

specific gravity of 2.70 were used for estimating the block tonnages. Indium grades were not 

capped for the estimation of the blocks. 





Two types of high grade blocks were identified consisting of “A” and “B” types of mineralized 

material. The A-Type blocks consist of tin-indium-zinc primary potential mill feed material defined 

by a Sn only cut-off grade of 0.30 wt%. Indium grades were not incorporated into the definition of 

the A Blocks and are expected to be of secondary economic importance for these blocks. Some 

of the tin mineralization may occur as sulphides as well as oxides. The B-Type blocks consist of 

potential tin-indium-zinc mill feed delineated by a 0.6 Sn equivalent ("Sn Eq.") cut off which is 

equal to % Sn + 41.67 x % In as with the WGM global NI 43-101 resource estimation. This 

mineralization tends to possess lower tin grades in comparison to the A block material. The 

material is distributed throughout the zones and in some sections occurs as a mineralized halo 

around A-Type block material. 

Indicated resource includes thirty five blocks of A-Type and 19 blocks of B -Type mineralization 

identified and outlined within the Deep Tin, Upper Deep Tin and #4 Tin Lode sub-zone deposits. 

Inferred resource includes 11 A-Type and 16 B-Type blocks within the North Adit Zone and #5 Tin 

Lode sub-zones. These delineated blocks are distributed from the surface to a maximum depth of 

250 metres (990 Level) within the North Zone. A number of high grade blocks outlined continue 

at depth below the 990 Level, but were truncated at that level for the purposes of this 

assessment. 

In addition, 12 blocks of A-Type and 4 blocks of B -Type mineralization were identified within the 

inferred resource of the #1-3 Tin Lode sub-zone. These blocks are distributed between the 

surface to a maximum depth of 80 metres (20 metres below the 600 Adit workings) also within the 

North Zone. The grades and tonnages of the blocks are summarized as follows. 

17.12 Proposed Estimations of Blocks 

The estimated in-situ undiluted tonnages and metal compositions of the 97 A- and B-Type Blocks 

are listed in Table 17-24. 





SUB-ZONE 

NO. 

BLOCKS 

Table 17-24: A and B Type Blocks Estimate 

TONNAGE 

[2, 3] 

%Sn g/t In %Zn %Cu %Pb %As %Bi %WO 3 %Mo 

INDICATED RESOURCE 

A-TYPE BLOCKS 


DTZ and Upper DTZ 33 1,338,000 0.94 229 1.89 0.27 0.05 1.62 0.09 0.10 BD 

B-TYPE BLOCKS 


DTZ and Upper DTZ 16 391,000 0.25 179 2.12 0.16 0.03 1.31 0.07 0.16 BD 

Total Indicated 54 1,894,000 0.76 212 1.93 0.24 NA NA NA NA BD 

INFERRED RESOURCE 

A-TYPE BLOCKS 


#5 Tin Lode 2 36,000 1.55 134 2.39 0.25 0.12 4.50 0.04 0.13 BD 

North Adit 9 320,000 1.13 32 0.25 0.19 0.04 2.88 0.12 0.14 BD 

B-TYPE BLOCKS 


#5 Tin Lode 8 172,000 0.29 428 3.80 0.24 0.04 1.59 0.04 0.17 BD 

North Adit 8 165,000 0.62 145 1.68 0.25 0.08 1.64 0.10 0.09 BD 

Total Inferred 43 1,000,000 0.74 154 1.82 0.22 NA NA NA NA NA 

Table Notes: 

[1] Estimate 

[2] Tonnages are rounded. 


BD = below detection limit 

NA = not analysed 

Due to the lack of indium analytical coverage for samples within the #1-3 Tin Lode Sub-Zone, the 

indium grade was estimated from a combination of regression analysis using the aforementioned 

formula discussed in the inference of indium grades section of this report and within the North 

Zone NI 43-101 Technical Report completed by WGM plus some direct geochemical analysis. 

Due to the paucity of As, Bi, WO 3 , Mo and Pb analyses completed within the #1 to 4 Tin Lode 

deposits, no average grades for these elements are estimated, but based upon the few analyses 

obtained to date they are expected to be comparable to that reported for the Deep Tin, Upper 

Deep Tin, #5 Tin Lode, and North Adit sub-zones. 

The blocks were estimated based upon the interpreted polygon volumes of the blocks and the 

averaging of the grades for the drill hole intersections which make up the GEMCOM solid model 

built for each individual block similar to the Nearest Neighbour ("NNB") methodology used by 

WGM. Figure 17-14 through Figure 17-17 show the distribution of the defined A and B Type 

Blocks for the sub-zones generated as GEMCOM solid models in relation to the 600 Adit 

workings, North Zone Decline and the surface of Mount Pleasant. 





Figure 17-14: GEMCOM Solids Modelled A and B Type Blocks Located Within the #1 to #3, #4 (and #6) Tin Lodes 

in Relation to the 600 Adit Workings (Longitudinal View Looking Southwest) 

Figure 17-15: GEMCOM Solids Modelled A and B Type Blocks Located Within the #1 to #3, #4 (and #6) Tin Lodes 

in Relation to the 600 Adit Workings (Oblique View Looking Northwest) 

In Figure 17-14 and Figure 17-15, A-type blocks are shown in red, B-type blocks in green, 600 

Adit workings in blue and yellow represents the surface of the Mount Pleasant Property. 





Figure 17-16: GEMCOM Solids Modelled A and B Type Blocks Located Within the Deep Tin Zone, Upper Deep Tin 

Zone, #5 Tin Lode and North Adit Sub-Zones in Relation to the 600 Adit Workings and the North Zone Decline 

(Longitudinal View Looking West) 

Figure 17-17: GEMCOM Solids Modelled A and B Type Blocks Located Within the Deep Tin Zone, Upper Deep Tin 

Zone, #5 Tin Lode and North Adit Sub-Zones in Relation to the 600 Adit Workings and the North Zone Decline 

(Longitudinal View Looking North) 

In Figure 17-16 and Figure 17-17, brown represents the A-type blocks in the DTZ, Upper DTZ 

and #5 Tin Lode; dark blue represents the B-type blocks in the DTZ, Upper DTZ and #5 Tin Lode; 





light blue represents the A type blocks in the North Adit sub-zone; green represents the B type 

blocks in the North Adit sub-zone, red represents the 600 Adit workings, and white represents the 

North Zone Decline. The purple scale bar represents a distance of 100 metres. 

17.13 Conclusions 

The summarized estimated size and metal compositions of the 97 blocks for the sub-zones listed 

in Table 17-24 can used to estimate a tonnage and head grade for the purposes of completing 

an economic appraisal of the mineralization once an appropriate dilution rate and mining 

extraction rate are applied. 

The arrival at the proposed mining extraction estimate is partially a function of the presence of a 

halo of mineralization containing significant zinc-indium grades but lower tin values within the wall 

rock to the blocks. Based upon the Sn-In-Zn-Cu mineralization trends and patterns found in the 

North Zone, the grade of dilution material in the wall rock is estimated to be 0.5 of the grade of 

the undiluted blocks with the exception of Sn grade which is interpreted to be 0.25 (0.17%) of the 

Sn undiluted grade for the purposes of this assessment. 

The results for the A-Type blocks for #1-3, #4 & 6 Tin Lodes for the estimation shown in Table 17- 

24 compare favourably with previous resource estimations of the Tin Lodes completed during the 

1960s. T. Clarke and Associates (1964) reported historical resource estimates for mineralized 

blocks from the vicinity of the 600 Adit workings to the surface as shown in Table 17-25. 

Table 17-25: Summary of Clarke and Associates 1964 Resource estimate for Mineralized Blocks in the Vicinity of 

the 600 Adit Workings 

SUB-ZONE TONNAGE TIN GRADE (%Sn) ZINC GRADE (% Zn) 

Tin Lodes #1 to #3 178,470 0.60 1.95 

Tin Lodes #4 and #6 45,900 0.55 0.65 

TOTAL 224,370 0.58 1.74 

The sum of the A and B-Type Blocks also compares favourably with the 0.7 Sn Eq. cut-off grades 

derived from the sensitivity analysis for the NI-43-101 estimates for the sub-zones as completed 

by WGM and aforementioned presented in this report. In conclusion, these block estimations can 

be used for a preliminary assessment level economic analysis once the dilution and recovery 

factors are applied. 





SECTION 18.0 MINING OPERATIONS 

18.1 Terms of Reference 

Hara Mining Enterprises Inc. was initially retained by Adex Mining Inc. to prepare a conceptual 

mine plan for the North Zone Preliminary Assessment for mining tin-indium-zinc ore from the 600 

Adit at 250 tonnes per day (“tpd”). The 600 Adit is an existing access point that was used during 

the historical operation of the Mount Pleasant property. 

Subsequently, Adex’s focus shifted from 250 to 850 tonnes per day and from the 600 Adit to the 

Deep Tin Zone, Upper Deep Tin Zone, North Adit, and #1 to #6 Tin Lodes. This report focuses on 

the conceptual mine plan for extracting 850 tonnes of mineral resource per day from the Deep Tin 

Zone, Upper Deep Tin Zone, North Adit, and #1 to #6 Tin Lodes. All of the above geological 

zones are located within the existing perimeter of the Mount Pleasant property. 

The Mount Pleasant property is located in the province of New Brunswick approximately 80 km 

south of Fredericton. 

A Hara Mining Enterprises Inc. representative visited the property on several occasions in the 

past and most recently on June 16 th , 2009, to gather information for the current study. 

Currently, the major assets and facilities associated with the Project are: 

North Zone Resource Estimate (NI 43-101 Compliant, see Section 17.0). 

Fire Tower Zone Resource Estimate (NI 43-101 Compliant). 

The physical plant site including mine ramps and underground excavations, coarse ore 

storage bins, buildings, tailings pond, large processing facilities building, workshops, 

warehouses, administration buildings, and dry facilities remain in good condition. 

Facilities providing basic infrastructure to the mine include an electric power feed line, water 

treatment and supply and sewage treatment. 

Underground infrastructure includes flooded mine ramps, coarse ore storage bins, crusher 

station, ventilation raises, and inactive underground maintenance shop. 

Very good access by paved highway and short gravel road to the mine site. 

18.2 Sources of Information 

A site visit was carried out by A. Hara, P. Eng. Principal of Hara Mining Enterprises Inc. on June 

16 th , 2009. 

Discussions were held with the following personnel: 

 

 

 

Mr. Dean Thibault, P. Eng., Thibault & Associates Inc. 

Mr. Gustaaf Kooiman, Consulting Geologist to Adex Mining Inc. 

Mr. Trevor Boyd, Ph. D, P. Geo., Consulting Geologist to Adex Mining Inc. 

Various documents, drawings, reports, studies and field notes collected during the site visit were 

used in the preparation of this report. 





18.3 Reliance on Other Experts 

This report section has been prepared by Hara Mining Enterprises Inc., for Adex Mining Inc. The 

information, conclusions, opinions, and estimates contained herein are based on: 

 

 

 

Information available to Hara Mining Enterprises Inc. while preparing this report section. 

Assumptions, conditions, and qualifications as set forth in this report section. 

Data, reports, and other information supplied by Adex Mining Inc. and other third party 

sources. 

For the purpose of this report section, Hara Mining Enterprises Inc. has relied on ownership 

information provided by Adex Mining Inc. Hara Mining Enterprises Inc. has not researched 

property title or mineral rights for the project and expresses no legal opinion as to the ownership 

status of the property. 

18.4 Mining Tin-Indium-Zinc Ore from the Deep Tin Zone (“DTZ”) Ore Lodes and Lenses 

18.4.1 General 

Hara Mining Enterprises Inc. prepared a Preliminary Assessment on mining Tin-Indium ore from 

the DTZ (Deep Tin-Indium Zone) being part of the Mount Pleasant Underground Mining Complex 

located 80 kilometres south of Fredericton in the province of New Brunswick. The study evaluated 

an underground mining scenario based on an 850 tonne of ore per day production rate from a 

number of ore lodes and lenses closely grouped in the DTZ and its surroundings. 

A number of mining and organizational scenarios was investigated for mining the tin-indium-zinc 

ores at the proposed 850 tpd rate. The final consideration was given to evaluation of an open 

stope mining concept with the use of mechanized trackless equipment and employing a multiskilled 

workforce. 

18.4.2 Mining Considerations 

The DTZ ore lodes and lenses are mostly formed as vertical and sub-vertical elongated narrow 

bodies closely spaced and surrounded by lower grade material and waste rock. The lower grade 

material and waste rock gaps between ore lenses will be used as natural pillars for maintaining 

stope wall stability during mining. 

A number of the ore lodes and lenses lie close to the surface with a few protruding to the surface. 

Series of these lodes and lenses stretch from near surface down to a depth of approximately 250 

metres. In horizontal plane the lodes and lenses occupy an area measuring approximately 300 

metres east-west and 400 metres north-south and dip predominantly towards the south (see 

Figure 17-16 and Figure 17-17). 

It appears that a majority of the lodes and lenses can be mined as single independent stopes 

being vertically interconnected via sublevel cross-cuts. The stopes would predominantly be mined 

top down while maintaining temporary ore rib and sill pillars in close proximity to the sublevels. 

Most of these stopes would be left open after completion of mining. Some of these mined out 

stopes would be backfilled with waste rock generated from the ongoing mine development works. 





Based on a review of historical mining records from the 600 Adit and Fire Tower Zone, the rock 

condition environment is expected to be good. 

Stopes would be shaped irregularly based on the ore grade contacts. A relatively small number of 

rib and sill pillars would be left in situ for stability of the mined lodes and lenses. These pillars, in 

most cases, would consist of lower grade material. 

A dilution factor of 10% at 0.17% tin, 96 ppm indium and 0.95% zinc was estimated for the 

perimeters of the minable lodes and lenses due to a relatively rich mineralized halo around the 

lodes and lenses selected for mining. 

An overall mining extraction rate for the selected mining method and configuration of the lodes 

and lenses can be expected to exceed 85%. For the study an 85% mining extraction rate was 

selected. 

The study assumed the mining schedule to be based on 261 operating days a year with the 

mining crew working three 8 hour shifts per day 5 days per week. Mine physical data are 

summarized in Table 18-1 for the 850 tpd mining option. 

Table 18-1: Mine Physical Data for 850 tonne/day Operation 

ITEM DESCRIPTION UNITS AVERAGE VALUE PER YEAR 

Mine operating days days 261 

Mine scheduled shift length hours 8 

Shifts per working day shifts 3 

Working days per week days 5 

Effective shift length hours 6 

Development (ore) tonne/year 28,188 

Development (waste) tonne/year 98,602 

Ore production per shift tonne 360 

Ore production per working day tonne 1,080 

Ore production per month tonne 23,490 

Stoping production per year tonne 253,692 

Ore production per year tonne 281,880 

Production drilling meters/year 31,712 

Underground LHD truck haulage per year tonne 380,482 

18.4.3 Mining Method 

An open stope concept with temporary rib pillars with no backfill is recommended as a primary 

mining method for the tin-indium-zinc deposits of the Deep Tin Zone and Upper Deep Tin Zone. 

The stope sizes and mining limits would be based on the resource block model interpretation. 

Stope sizes would vary widely and would produce from several hundred tonnes to a few ten 

thousand tonnes of ore and would be relatively narrow. Each stope would have an extraction drift, 





which would be positioned in parallel to the undercut drift with a series of draw points connected 

with the undercut. 

In a typical stope, rows of 62.5 mm diameter production drill holes arranged in fans would be up 

drilled from the undercut. On a sublevel above rows of 87.5 mm diameter holes would be down 

drilled to follow the configuration of the stope walls and would account for the bulk of production 

volume for a given stope. The undercut production holes would be charged with explosives and 

blasted in vertical slices starting from the end of the undercut and sequentially progressed 

towards the limit of the stope. In a delayed sequence, the down holes drilled on the sublevel 

above would be charged with explosives and progressively blasted to follow the stope undercut 

advancement. 

Only partial blast swell would be removed from the stope to provide free space for each 

consecutive blast. The broken ore in the stope would provide temporary passive support for the 

stope walls in order to prevent wall slough and to control dilution during the entire stope cycle. At 

the end of the mining cycle each stope would be completely mucked out and left empty. Some of 

the empty stopes would be filled with waste rock generated from ongoing development works in 

the mine. 

The maximum height of the stopes, in a single lift from sublevel to sublevel, would be 

approximately from 15 to 20 metres. Final stope heights in some cases would triple the single lift. 

Loading of the broken ore onto the trucks would be done with LHD machines. The trucks would 

haul the ore via the decline up to the surface to the ore storage pile. 

18.4.4 Mine Development 

The mine would be accessed from the surface, by a decline driven at 17% gradient from the 1165 

metre level down to 985 metre level. 

The ore lodes and lenses would be accessed by a series of sublevels driven off the decline and 

spaced vertically at approximately 20 metre intervals. From the sublevels a number of cross-cuts 

would be driven on 30 metres to 40 metres horizontal spacing to provide access to the various 

ore lodes and lenses. The cross-cut spacing would be governed by the geometry and 

configuration of the ore lodes and lenses. 

Approximately 500 metres of wall and back slash would be done in the 600 Adit to provide 

second egress from the mine and also to provide adequately sized return airway for the mine 

ventilation requirements. 

Concurrently with the decline and cross-cuts development progress, an exhaust air ventilation 

raise would be excavated in lifts. Each lift would be connected with the end of the cross-cut 

assigned as an exhaust airway from a particular sublevel. 

When the decline reaches the 1025 sublevel, a pump station would be excavated and equipped 

with pumps. Mine water below the 1025 sublevel would be handled by a series of local 

submersible pumps and pumped up to the pump station. 





A maintenance shop would be excavated and equipped on the 1045 sublevel above the pump 

station. 

The subsequent stope development would be carried out in the form of under and over cuts from 

different points of the cross-cuts. This would be done progressively following the ongoing mine 

development. 

18.4.5 Manpower 

The manpower levels were estimated from the first principle rule. Some of the employees would 

be required to posses multiple skills in order to switch between certain jobs. For example; a drift 

miner should be able to drill production holes or to drive a conventional raise. The LHD operator 

would also drive the ore hauling truck. The surface truck driver would also be operating the front 

end loader. Therefore, the surface ore stock pile handling and ore transportation to the 

processing facility would be manned by only one person. Safety and training for the mine and mill 

would be handled by one person. 

Total mine manpower requirements are estimated to include 51 full time positions including 

labour, engineering, geology and supervision. See Table 18-2 for details. 

Table 18-2: Manpower Requirements for 850 tonne/day Ore Production from DTZ and Upper DTZ 

ITEM NO. JOB TITLE NO. PERSONNEL PER SHIFT TOTAL PERSONNEL 

1 Development miner 3 9 

2 Production driller 2 6 

3 LHD truck operator 2 6 

4 Blaster [1] 1 

5 Helper 2 6 

6 Maintenance department [1] 4 

7 Electrician [1] 2 

8 Construction and service crew 2 

9 Production supervision 1 3 

10 Maintenance supervision 1 

11 Safety and training [2] 0.5 

12 Surface support 1 3 

13 Surface truck loader operator 1 3 

14 Engineering and surveying 2 

15 Geology and grade control 1 

16 Mine superintendent / chief engineer 1 

17 Mine clerk 1 

TOTAL 12 51.5 

Table Notes: 

[1] Day shift only. 

[2] Shared position between mine and mill. 





18.4.6 Equipment 

Diesel powered trackless equipment was selected for the mine development and production 

functions for the evaluated tin-indium-zinc mining scenario. The number of equipment pieces 

needed to operate the mine was estimated based on manufacturer productivity charts and 

compared with other similar operations to the tin-indium-zinc proposed mining scenario. 

The study assumes the mine would rent a new fleet of diesel equipment from a selected 

manufacturer. The mobile equipment fleet requirements are listed in Table 18-3 along with their 

associated new equipment purchase cost. Where the same equipment is available for rental, unit 

monthly and total annual rental costs for mobile equipment are listed in Table 18-4. 

Table 18-3: Summary of Mobile Equipment Purchase Cost Estimates for 850 tonne/day Ore Production 

ITEM NO. EQUIPMENT TYPE NO. REQUIRED UNIT COST (CDN$) 

TOTAL COST 

(CDN$) 

1 Development jumbo 2 $750,000 $1,500,000 

2 Longhole production drill 2 $450,000 $900,000 

3 3.5 cubic yard LHD truck 2 $450,000 $900,000 


5 35 tonne truck 1 $650,000 $650,000 

6 22 tonne truck 1 $400,000 $400,000 

7 Scissor lift 2 $200,000 $400,000 

8 Fuel-lube truck 1 $250,000 $250,000 

9 Fork lift 1 $100,000 $100,000 

10 Diamond drill 1 $150,000 $150,000 

11 Auxiliary vehicles and man carriers 4 $45,000 $180,000 

12 Surface truck 1 $300,000 $300,000 

13 Front-end loader 1 $350,000 $350,000 

TOTAL MOBILE EQUIPMENT 20 $6,730,000 

Table 18-4: Summary of Mobile Equipment Rental Cost Estimates for 850 tonne/day Ore Production 

ITEM NO. EQUIPMENT TYPE NO. REQUIRED 

UNIT RENTAL COST 

(CDN$/MONTH / UNIT) 

ANNUAL RENTAL 

COST (CDN$/YR) 

1 Development jumbo 2 $15,625 $375,000 

2 Longhole production drill 2 $9,375 $225,000 



5 35 tonne truck 1 $13,542 $162,500 

6 22 tonne truck 1 $8,333 $100,000 

7 Scissor lift 2 $4,167 $100,000 

8 Fuel-lube truck 1 $5,208 $62,500 

9 Surface truck 1 $6,250 $75,000 

10 Front-end loader 1 $7,292 $87,500 

TOTAL MOBILE EQUIPMENT 14 $1,578,000 

TOTAL PER TONNE ORE MINED $5.59 





The cost of equipment rental was estimated based on quotes provided by one of the potential 

manufacturers and applying a 5% interest rate to the monthly payments. 

18.4.7 Mine Capital Costs 

Total pre-production capital costs for constructing the 850 tpd Adex tin-indium-zinc mine is 

estimated at CDN$16,231,166 including 15% contingency. The capital cost estimates are at -10% 

and +35% accuracy levels. The majority of the capital costs are associated with the excavation 

works. See Table 18-5. 

ITEM 

NO. 

1 

2 

Table 18-5: Pre-production Capital Excavations Works for 850 tonne/day Ore Production 

ITEM DESCRIPTION 

Mobilization, demobilization & energy costs 

(Contractor) 

Decline including re-muck and safety bays 

(Contractor) 

UNITS 

NO. UNITS 

REQUIRED 

UNIT COST 

(CDN$) 

TOTAL COST 

(CDN$) 

LS 1 $679,500 $679,500 

metres 1,150 $4,200 $4,830,000 

3 Lateral development in waste (Owner's crew) metres 1,500 $2,012 $3,017,632 

4 Vertical development, vent raises (Contractor) metres 200 $2,600 $520,000 

5 Vent raise access drifts (Owner's crew) metres 100 $2,012 $201,175 

6 Slash (600 Adit) metres 500 $1,006 $502,939 

7 Refuge station cut-outs set 1 $10,000 $10,000 

8 Underground pump station & settling sumps set 1 $40,000 $40,000 

9 Explosives magazines set 1 $20,118 $20,118 

10 Small maintenance shop set 1 $160,940 $160,940 

11 Magazines & tool crib set 1 $60,353 $60,353 

12 Miscellaneous excavations LS 1 $100,000 $100,000 

TOTAL $10,142,657 

The decline and return air ventilation raise would be excavated by a contractor. The estimated 

cost of driving the decline and the ventilation raise is based on a written quote obtained from a 

mining contractor. All other associated mine development works would be performed by the Adex 

crews. See Table 18-6 for details. 

Table 18-6: Pre-production Capital Costs Summary for 850 tonne/day Ore Production 

ITEM NO. ITEM DESCRIPTION COST (CDN$) 

1 Mobilization $200,000 

2 Excavations $10,142,657 

3 Mobile Equipment [1] $430,000 

4 Main ventilation and air heating $350,000 

5 Electrical cable work and installation $500,000 

6 Install and equip electrical substations $250,000 

7 Equip mine pumping station $350,000 

8 Local ventilation $200,000 

9 Equip refuge stations $80,000 





ITEM NO. ITEM DESCRIPTION COST (CDN$) 

10 Equip powder magazines $40,000 

11 Install communication system $70,000 

12 Equip mobile equipment maintenance shop $500,000 

13 Portal / ore waste load-out station & road upgrade $80,000 

14 Mine rescue and safety supplies $150,000 

15 Initial inventory of materials & spare parts $141,400 

16 Computers & engineering / geology support equipment $60,000 

17 Mine water discharge settling pond $70,000 

18 Miscellaneous $500,000 

SUBTOTAL $14,114,057 

CONTINGENCY (15%) $2,117,109 

TOTAL $16,231,166 

Table Notes: 

[1] Capital cost for mobile equipment based on purchase of fork lift, diamond drill, auxiliary vehicles & man carriers from Table 18-3 only. 

All other mobile equipment will be rented. 

18.4.8 Mine Operating Costs 

The operating cost for mining the tin-indium-zinc ore from the DTZ and Upper DTZ is estimated at 

CDN$30.02 per tonne for the 850 tpd production rate. The above cost is estimated from the first 

principle rule and does not include contingency. 

The manpower, equipment rental and maintenance constitute the majority of the operating costs. 

The manpower cost, at CDN$13.36/tonne, is the single highest operating cost of the project. The 

next highest is the equipment rental cost at CDN$5.59/tonne, followed by equipment 

maintenance at CDN$3.55/tonne. 

Table 18-7: Operating Cost Summary for 850 tonne/day Ore Production 

OPERATING COST 

ANNUAL COST 

(CDN$) 

COST PER TONNE 

(CDN$) 

PERCENTAGE OF 

TOTAL (%) 

Manpower $3,767,188 $13.36 44.50% 

Diesel fuel and lubricants $781,865 $2.77 9.23% 

Propane $208,860 $0.74 2.47% 

Equipment rental $1,575,000 $5.59 18.62% 

Equipment maintenance $1,001,073 $3.55 11.82% 

Materials and supplies $645,022 $2.39 7.96% 

Electric energy & ventilation $456,827 $1.62 5.40% 

TOTAL OPERATING COST $8,463,150 $30.02 100.00% 

Certain costs, such as supply of parts and materials were estimated by applying data and 

information from other active underground mining operations in Canada. Table 18-8 to Table 

18-12 show the mine operating cost breakdown in more detail. 





Table 18-8: Summary of Manpower Cost Estimates for 850 tonne/day Ore Production Rate 

DEPARTMENT / JOB 

FUNCTION 

MINE SUPERVISION 

NO. 

EMPLOYEES 

SALARY / WAGES 

ANNUAL COST INCL. FB 

Superintendent 1 $120,000/yr $150,000 

Chief mechanic 1 $80,000/yr $100,000 

Foreman 3 $75,000/yr $281,250 

Safety & training [1] 0.5 $37,500/yr $23,438 

Mine clerk 1 $45,000/yr $56,250 

SUBTOTAL 6.5 $610,938 

DEVELOPMENT 

Miner 9 $32.00/hour $720,000 

SUBTOTAL 9 $720,000 

PRODUCTION 

LHD truck operator 6 $27.50/hr $412,500 

Production drill operator 6 $27.50/hr $412,500 

Blaster 1 $28.50/hr $71,250 

Helper 6 $22.50/hr $337,500 

SUBTOTAL 19 $1,233,750 

MAINTENANCE 

Mechanics 4 $31.50/hr $315,000 

Electricians 2 $31.50/hr $157,500 


MINE SERVICES 

Construction crew 2 $26.00/hr $130,000 


SURFACE SUPPORT 

Surface support 3 $22.50/hr $168,750 

Truck / loader operator 3 $22.50/hr $168,750 


TECHNICAL SERVICES 

Surveyor / technician 2 $60,000/yr $150,000 

Senior geologist 1 $90,000/yr $112,500 


TOTAL 51.5 $3,767,188 


Table Notes: 

[1] Shared position between mine and mill. 





DEPARTMENT / UNIT 

DESCRIPTION 

PERSONNEL TRANSPORTATION SUPPORT 

Table 18-9: Summary of Equipment Maintenance Costs 


REQUIRED 

ANNUAL 

OPERATING 

HOURS 

COST PER 

OPERATING 

HOUR ($CDN/HR) 

TOTAL 

ANNUAL COST 

(CDN$) 

Tractors / jeeps 4 650 $10.00/hr $26,000 

Scissor lift 2 800 $15.00/hr $24,000 

DEVELOPMENT 

2-boom jumbo 2 1,566 $45.00/hr $140,940 

3.5 cubic yard LHD truck 2 2,153 $35.00/hr $150,728 

22-tonne truck 1 2,500 $30.00 $75,000 

PRODUCTION 

5.0 cubic yard LHD truck 1 2,153 $50.00/hr $107,663 

Longhole drill 2 3,000 $35.00/hr $210,000 

35-tonne truck 1 3,500 $40.00/hr $140,000 

MISCELLANEOUS 

Diamond drill 1 800 $15.00/hr $12,000 

Fuel and lube truck 1 1,000 $20.00/hr $20,000 

SURFACE ORE & WASTE TRANSPORT 

Truck 1 3,445 $20.00/hr $68,904 

Front-end loader 1 1,034 $25.00/hr $25,839 

TOTAL 19 $1,001,074 


EQUIPMENT TYPE 

Table 18-10: Summary of Diesel Fuel Cost 


REQUIRED 

FUEL CONSUMPTION 

(LITRES/DAY) 

TOTAL FUEL CONSUMPTION 

(LITRES/DAY) 

Development jumbo 2 20 40 

Production drill 2 10 20 

5.0 cubic yard LHD truck 1 450 450 

3.5 cubic yard LHD truck 2 350 700 

35-tonne truck 1 600 660 

22-tonne truck 1 350 350 

Scissor lift 2 40 80 

Fork lift 1 30 30 

Small vehicles 4 15 60 

Surface truck 1 600 600 

Front-end loader 1 180 180 

Miscellaneous @ 5% LS 159 

TOTAL LITRES PER OPERATING DAY 3,329 

TOTAL ANNUAL OPERATING COST [1] $781,865 

TOTAL COST PER TONNE ORE MINED $2.77 

Table Notes: 

[1] Diesel fuel cost based on CDN$0.90/litre. 





Table 18-11: Summary of Electricity Cost for 850 tonne/day Ore Production Rate 

ITEM 

INSTALLED 

POWER (kW) 

POWER 

DRAWN 

(kW) 

ANNUAL POWER 

CONSUMPTION 

(kWh/YR) 

ANNUAL COST 

(CDN$) 

Main ventilation fans 203 203 1,778,149 $142,252 

Auxiliary ventilation fans 149 119 1,045,970 $83,678 

Air compressor 75 60 522,985 $41,839 

Jumbo drill 112 28 245,149 $19,612 

Longhole drill 112 67 588,358 $47,069 

Diamond drill 37 15 130,746 $10,460 

Small shop / wash bay 22 11 98,060 $7,845 

Dewatering pumps 187 112 980,597 $78,448 

Auxiliary pumps 45 22 196,119 $15,690 

Lighting 11 9 78,448 $6,276 

Miscellaneous 7 5 45,761 $3,661 

TOTAL ELEC. ENERGY COST [1] 960 652 5,710,343 $456,830 

TOTAL ELEC. ENERGY COST PER TONNE $1.62 

Table Notes: 

[1] Electricity cost based on CDN$0.08/kWhr. 

Table 18-12: Mine Consumables and Miscellaneous Operating Costs 

ITEM NO. ITEM DESCRIPTION ANNUAL COST (CDN$) 

1 Rock bolts $86,326 

2 Screen $14,799 

3 Pipes (150 mm dia.) $19,732 

4 Pipes (100 mm dia.) $16,443 

5 Pipes (50 mm dia.) $13,154 

6 Valves and accessories $3,915 

7 Drill steel and drill bits $91,740 

8 Timber $6,000 

9 Explosives $209,162 

10 Engineering / geology supplies $5,400 

11 Telephone, fax and computer $6,000 

12 Electrical supplies $30,000 

13 Maintenance supplies $96,000 

14 Cement $6,000 

15 Miscellaneous at 10% $60,467 

16 Safety supplies $7,200 

TOTAL MINE CONSUMABLES & MISCELLANEOUS SUPPLIES $672,337 

TOTAL MINE CONSUMABLES & MISCELLANEOUS SUPPLIES COST PER TONNE $2.39 





18.4.9 Ventilation 

Intake ventilation would be downcast through the 4.0 m x 4.5 m new decline from a fan station 

located on surface, and connected with the decline via a rigid vent duct. Exhaust air from the 

sublevels would up cast to surface via the return air vent raise and the 600 Adit. 

Local fans furnished with vent ducts would ventilate dead end drifts and other work places. A 

series of vent regulators and auxiliary fans would assist in distributing air flow throughout the 

mine. It is estimated that approximately 220,000 cfm of air would be required to maintain proper 

ventilation for the mine. In case there is a need to introduce more equipment in future 

approximately 275,000 cfm (including leakage) were allocated for the purpose of the main fan 

selection. See Table 18-13 showing ventilation volume estimates. 

Table 18-13: Summary of Ventilation Air Volumes for 850 tonne/day Ore Production Rate 

MOBILE EQUIPMENT 

TYPE 


REQUIRED 

INSTALLED 

HORSEPOWER 

(HP) 

TOTAL 

INSTALLED 

HORSEPOWER 

(HP) 

UTILIZATION 

FACTOR (%) 

FACTORED 

HORSEPOWER 

(HP) 

Development jumbo 2 140 280 50% 140 

Grader [1] 1 140 140 75% 105 

3.5 cubic yard LHD truck 2 250 500 100% 500 

5.0 cubic yard LHD tuck 1 380 380 100% 380 

35-tonne truck 1 275 275 100% 275 

22-tonne truck 1 380 380 100% 380 

Scissor lift 2 85 170 50% 85 

Fuel-lube truck 1 100 100 50% 50 

Fork lift 1 175 175 50% 88 

Explosives carrier [1] 1 125 125 50% 63 

Personnel carrier 4 75 300 50% 150 

TOTAL FACTORED HORSEPOWER 2,215 

CFM REQUIREMENT BASED ON EQUIPMENT SELECTION 221,500 

TOTAL VENTILATION CFM REQUIREMENT INCLUDING LEAKAGE 275,000 

Table Notes: 

[1] Included in ventilation requirement estimate for potential future use. 

18.4.10 Project Schedule 

The pre-production period is estimated to take approximately 28 weeks before commencement of 

the production from stopes. See Figure 18-1. 





Adex Mining Inc. – Mount Pleasant Tin Indium Mine Scoping Study 

Number Metres Cross WEEKS 

Description of of Section or Tonnes 

Weeks Advance Square m 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 23 24 25 26 27 28 29 30 31 

MOBILIZATION TO SITE 2.0 

SITE PREPARATION 

Road Upgrade from Processing Facility to 600 Adit 1.0 4,600 

Road Extension from 600 Adit to New Portal 1.0 600 

New Portal Site Overburden Removal and Grabbing 2.0 1,500 

Level off and Dress Material Lay Down and Buildings Area 0.5 5,000 

Level off and Dress Ore Pile Area 0.5 2,500 

Level off and Dress Waste Pile Area 0.5 2,500 

Erect Surface Infrastructure (Office First-Aid Trailer, Fuel Tanks, etc) 1.0 

Erect Switch Gear and Transformer and Connect Electric Power 2.0 

PORTAL 

Groundcondition Portal Face and Area 1.0 

Excavate and Groundcondition First 10 metres of Decline Access 1.0 10 18 549 

Set up Ventilation and Air Heating for Decline Driving 1.0 

DECLINE EXCAVATION 

Drive Decline and Excavate Safety and Re-Muck Bays 23.0 1,140 18 62,535 

EXPLOSIVES MAGAZINE 

Excavate Powder and Cap Magazine 1.0 10 18 549 

Equip Powder and Cap Magazine 0.5 

LATERAL DEVELOPMENT 

1165 Sublevel Access Drive 2.5 75 18 4,114 

1165 Sublevel Drift 6.0 200 18 10,971 

1165 Sublevel X-Cuts 12.0 400 18 21,942 

1145 Sublevel Access Drive 2.5 75 18 4,114 

1145 Sublevel Drift 6.0 200 18 10,971 

1145 Sublevel X-Cuts 12.0 400 18 21,942 

1,350 74,054 

REFUGE STATION 

Excavate Refuge Station 0.5 10 18 549 

Equip Refuge Station 1.0 

LATERAL DEVELOPMENT IN ORE 

1165 Sublevel Stopes Under and Over Cuts 1.5 75 18 4,114 

1145 Sublevel Stopes Under and Over Cuts 1.5 75 18 4,114 

150 8,228 

600 ADIT SLASH 7 500 8 12,190 

PUMP STATION 

Excavate Pump Station and Settling Chamber 1.0 20 23 1,371 

Equip Pump Station 1.0 

STOPE DRILLING 4.0 

NAINTENANCE SHOP 

Excavate Maintenance Shop and Tool Crib 3.0 50 23 3,428 

Equip Maintenance Shop and Tool Crib 2.0 

VERTICAL DEVELOPMENT 

Ventilation Raise From 985 Level to 1185 Level 200 20 12,342 

START OF STOPE PRODUCTION IN THE 28TH WEEK 

DECLINE 1,160 63,632 

TOTAL LATERAL DEVELOPMENT IN WASTE 1,430 79,403 

TOTAL LATERAL DEVELOPMENT IN ORE 150 8,228 

TOTAL VERTICAL DEVELOPMENT 200 12,342 

600 ADIT SLASH 500 12,190 

TOTAL WASTE TONNES (INCLUDING 15% OVERBREAK) 167,567 

Figure 18-1: DTZ Preproduction Schedule for 850 tonne/day of Ore Production Rate 

18.4.11 Production Schedule 

The production schedule calls for one quarter of ramp up period to achieve a full monthly target of 

approximately 23,490 tonnes of ore from stoping, slashes and an ongoing development in ore. 

Under this schedule the mine is expected to operate at full targeted production for approximately 

ten years. See Table 18-14 showing the proposed production schedule. 





Table 18-14: Proposed Production Schedule for Extraction of Ore from DTZ and Upper DTZ 

ORE SOURCE 

FIRST YEAR (RAMP-UP) 

FULL PRODUCTION 

Q1 Q2 Q3 Q4 Years 2 - 9 Year 10 

TOTAL 

Stope tonnages 43,423 63,423 63,423 63,423 253,692 184,511 2,447,739 

Development tonnage 7,047 7,047 7,047 7,047 28,188 5,000 258,692 

TOTAL TONNAGES 50,470 70,470 70,470 70,470 281,880 189,511 2,706,431 

Tin head grade (wt%) 0.71 0.71 0.71 0.71 0.71 0.71 0.71 

Indium head grade (ppm) 183 183 183 183 183 183 183 

Zinc head grade (wt%) 1.82 1.82 1.82 1.82 1.82 1.82 1.82 

The total tonnage assumed for mining the resources from the DTZ and its associated sub-zones 

is approximately 2.7 million tonnes of ore at average diluted grades of 0.71% tin, 183 ppm indium 

and 1.82% zinc. These grades are milling grades and incorporate 10% mining dilution at 0.17% 

tin, 96 ppm indium and 0.95% zinc grades. 

18.5 Waste Rock Handling and Storage 

All waste rock generated from the mine’s development works and ongoing development, and not 

stored underground, will be transported to surface and dumped onto the waste storage pads from 

where it would be hauled away to the properly prepared waste storage piles. 

The debris and sludge from the clean up during the existing workings rehabilitation process will 

be transported to the surface and disposed of in the assigned locations by the mine operating 

personnel. 

18.6 Exclusions 

The estimated mine capital and operating costs do not include the costs of construction and 

operating the processing or other facilities, which would be needed for the operation. All the cost 

estimates are related only to the development, rehabilitation and operation of the underground 

mine. 

The mine general and administration costs cover only the mine supervision and mine engineering 

and are included in the estimates. These costs do not include the site general and processing 

administration costs. 

In the cost estimates, there is no provision for the site camp to accommodate employees or for 

the employee’s transportation costs to the site. 

The study assumes that the Mine Offices would to be located in the office area of the existing 

warehouse building. 

The costs of the Feasibility Study, permitting and EPCM are omitted in the above estimates. 





SECTION 19.0 PROCESSING OPTIONS AND RECOVERABILITY 

19.1 Overview of Process Technology 

The preliminary assessment has evaluated three different processing options for the Mount 

Pleasant North Zone. The common component of all three cases considered is a concentrator 

plant that produces a saleable grade tin concentrate and an indium-bearing zinc concentrate. The 

first processing option considers the concentrator plant only ("Case A"). In the second case, an 

add-on hydromet circuit was evaluated to assess the potential for added-value production of zinc 

metal and indium sponge from the zinc concentrate ("Case B"). Finally, in the third case, a tin 

pyromet process was also considered for production of tin chloride from a lower grade tin 

concentrate while still producing zinc metal and indium sponge via the hydromet process ("Case 

C"). 

All process design is considered preliminary and conceptual at this stage, and further bench and 

pilot scale testing will be required to confirm and optimize the flowsheets. 

The flowsheet to produce tin concentrate is based on bench scale locked cycle testing completed 

by Cominco Engineering Services Ltd. ("CESL") (1991) which tested a flowsheet including 

desliming, bulk sulfide flotation, tin flotation, and centrifugal gravity separators to recover fine tin 

from slimes. This flowsheet was later piloted at Lakefield Research Ltd. (1995). These reports do 

not identify the source of the North Zone ore sample and the mineralization may differ from the 

areas in the North Zone being considered in this preliminary assessment. Therefore, additional 

testing will be required using a representative ore sample. Since the North Zone tin mineralization 

is relatively fine grained, the gravity recovery circuit that was previously tested for tungsten by 

SGS Lakefield Research Europe (SGS, 2008f), based on a flowsheet designed by Thibault & 

Associates Inc. for the Fire Tower Zone, would not provide optimal tin recovery. 

The process flowsheet for indium recovery that was included in the 1997 North Zone Feasibility 

study by Kvaerner Metals (Kvaerner, 1997) was based on a bioleach process developed by the 

Research and Productivity Council followed by an indium hydromet circuit developed by Thibault 

& Associates Inc. for purification and recovery of indium from a sulphate solution. 

In an effort to reduce capital and operating costs, the conceptual indium hydromet process 

included in the current preliminary assessment is based on a ferric chloride leach, followed by a 

hydrometallurgical process for indium purification and recovery from a chloride solution. Zinc is 

recovered by electrowinning from the chloride solution which also regenerates chlorine for the 

leaching operation. The ferric chloride leach process is based on previous work by CANMET 

(1989) for treatment of base metal sulfide concentrates. Conceptual design of the 

hydrometallurgical process technology by Thibault & Associates Inc. is not based on bench scale 

or pilot testing on ore from the North Zone. Bench scale test programs for further assessment of 

the hydrometallurgical process technical viability using bulk sulfide concentrate produced from the 

North Zone ore is presently in progress by Thibault & Associates Inc. 

The tin chloride production process is based on preliminary testing that was carried out by 

CANMET laboratories in 1990 (CANMET, 1990) on an unidentified low grade tin concentrate from 

Mount Pleasant. The testing at CANMET was based on prior work by the Warren Spring 

Laboratory (Flett, 1984) and Charter Consolidated (1984) in the UK. The process testing to date 

used the chloride roast process to produce tin chloride solution which was then cemented with 





aluminum to produce a tin metal final product. Based on this work, a conceptual process was 

developed for this study using the tin chloride roast to produce tin chloride as a final product 

rather than tin metal. Confirmation of this process through bench and pilot scale testing would be 

required. 

The following section describes the conceptual process, which is illustrated on the block diagrams 

and mass balance in Appendix A and the flowsheets in Appendix B. The mass balance print-out 

included in Appendix A is for Case C - production of tin chloride, indium sponge and zinc metal, 

which is representative of the mass balance for all three cases except for the lower grade of tin 

concentrate (20.0% versus 46.0%) that is produced for add-on processing to tin chloride end-use 

product. 

19.2 Process Description 

19.2.1 Ore Storage and Crushing – Reference Drawing 0503-10-01 

A conventional two-stage crushing plant is used to reduce the size of the run-of-mine ore to the 

required size for grinding. Since an autogenous grinding circuit is not used in the proposed 

process, pebble production that was used in the past Billiton operation is not required. The run-ofmine 

ore is not crushed in the mine, and is stockpiled in an outdoor ore storage pile at the plant. 

The crushing circuit consists of portable equipment located outdoors. The primary jaw crusher will 

have a grizzly feeder to remove any oversize ore that requires rock breaking. After primary size 

reduction by the jaw crusher, the crushed ore is conveyed to a screen with the oversize material 

being fed to a secondary cone crusher for final crushing. The secondary crusher product is 

conveyed to the same screen to remove the finished undersize material and to recycle the 

oversize material to the secondary crusher. Final crushed ore is stored in a fine ore storage silo. 

19.2.2 Ore Grinding and Desliming - Reference Drawings 0503-20-01 and 0503-20-02 

A conventional two-stage rod mill - ball mill grinding is used with the rod mill operating in open 

circuit and the ball mill operating in closed circuit. Size classification in the ball mill circuit is by 

hydrocyclones; the optional grinding classification screen shown in the drawings was 

subsequently removed during the cost estimating. The grind size is based on the requirements for 

sulphide flotation, and a regrind mill is used subsequent to sulphide flotation in order to further 

liberate the tin for flotation. The ground ore is deslimed to remove ultra-fine silicates and chlorites 

which will interfere with tin flotation and increase reagent consumption. Based on the CESL test 

program (Cominco, 1991), the desliming is considered non-conventional with two stages of 

hydrocyclones followed by the cyclone overflow (slimes) being sent to a third centrifugal gravity 

desliming stage to recover fine tin prior to rejecting the slimes to tailings. The hydrocyclone 

underflow and centrifugal gravity desliming concentrate is combined and fed to magnetic 

separation. 

NOTE: After completion of the mass balance simulation, it was found that desliming prior to the 

sulphide (zinc/arsenic) flotation circuit would lead to a substantial loss of zinc (and 

indium) with the slimes to tailings. In addition, more slimes would be generated in the 

arsenic flotation regrind mill (after sulphide flotation) that would necessitate additional 

desliming. Therefore, it is recommended that future flowsheet development be based on 

moving the desliming operation to a location downstream of the sulphide flotation steps. 





mass balance simulation recoveries have been adjusted based on desliming occurring 

after the sulphide flotation circuits. 

19.2.3 Magnetic Separation Circuit - Reference Drawing 0503-31-01 

The deslimed ore is fed to a low-intensity magnetic separator ("LIMS") which removes all 

magnetic material in the ore, such as steel grinding media, since iron is known to interfere with tin 

flotation. The magnetic material collected from the LIMS is sent to tailings treatment. 

The use of a high-intensity magnetic separator ("HIMS") has been included as a means to 

separate tungsten to prevent it from reporting to and contaminating the tin concentrate. The 

optimum location of the HIMS circuit has not been determined and its use on a tin concentrate 

stream may also be considered for tungsten removal. HIMS could also be considered in future 

testing to determine if paramagnetic chlorites can be effectively removed by HIMS which may 

result in less of a need for desliming. 

NOTE: Flowsheet drawings included in Appendix B of this report depict the use of HIMS as part 

of ore treatment. Costing of the HIMS was based on treatment of tin concentrate. Test programs 

would be required to confirm technical feasibility of tungsten removal from tin concentrate by 

HIMS. 

19.2.4 Zinc Flotation Circuit - Reference Drawings 0503-31-02 and 0503-31-03 

The sulphide flotation circuit as shown on the flowsheets is modeled after the 1997 test work by 

Lakefield Research Ltd. (Lakefield, 1997) and is based on selective sequential flotation of zinc 

followed by flotation of arsenic. Sulphide flowsheet configuration options are subject to further 

review with bench and pilot testing and an alternative configuration that may be considered is to 

perform a bulk sulphide flotation followed by selective flotation of copper and then zinc from the 

bulk sulphide concentrate. 

For the purposes of the preliminary assessment, the zinc flotation circuit consists of conditioning 

the ore with reagents followed by rougher, scavenger, and two-stage concentrate cleaning in 

conventional flotation cells. Flotation reagents include lime, copper sulphate, R-3894 collector 

and MIBC frother. Indium is simultaneously recovered to the zinc concentrate, since the indium is 

mainly associated with sphalerite in the tin-zinc ore (SGS Lakefield Mineralogy Study, Nov. 

2008). The cleaned zinc concentrate is thickened prior to feeding the indium hydromet circuit or 

alternatively it may be dried and packaged for sale as a zinc concentrate. The tailings from the 

zinc flotation circuit are sent to the arsenic flotation circuit. 

19.2.5 Arsenic Flotation Circuit - Reference Drawings 0503-32-01 and 0503-32-02 

The arsenic flotation circuit is intended to remove arsenic and any remaining sulphides to a waste 

concentrate product prior to tin flotation since conventional tin flotation reagents are non-selective 

against sulphide minerals. The zinc flotation tailings are conditioned with sulfuric acid to lower the 

pH and flotation reagents including PAX, R-3894 and MIBC are added. Conventional flotation 

cells are used in rougher, scavenger and two cleaner stages. A regrind mill is integrated into the 

arsenic flotation circuit which regrinds the rougher tailings down to the size required for tin 

flotation. Regrind classification is by hydrocyclone and the optional classification screen shown 

was not included in the cost estimate. The reground rougher tailings are fed to the arsenic 





scavenger circuit. The arsenic flotation scavenger tailings are thickened prior to feeding to the tin 

flotation circuit, which operates at a higher pulp density. 

19.2.6 Tin Flotation Circuit - Reference Drawings 0503-33-01 

The tailings from arsenic flotation are conditioned with sulfuric acid, sodium silicofluoride, styrene 

phosphonic acid ("SPA") and MIBC based on the work by Cominco (1991) and Lakefield (1995). 

Further work will be required to identify alternative collectors for tin since SPA is no longer readily 

available. Tin is floated in conventional rougher and scavenger flotation cells, while the 

rougher/scavenger concentrates are cleaned in two stages of column flotation cells which will 

help remove fine gangue material from the concentrate. The tailings from the cleaner columns are 

treated in a rougher-scavenger configuration with centrifugal gravity separators. This step will 

remove slimes from the cleaner tails and allow recycle of the tin-containing gravity concentrate 

back to the rougher flotation circuit. The final tin concentrate is thickened, filtered on a belt filter, 

and finally dried prior to dry concentrate storage and packaging for load out. 

19.2.7 Tin Chloride Pyromet - Reference Drawings 0503-41-01 through 0503-41-05 

A lower grade tin concentrate from the tin flotation circuit is first mixed with calcium chloride and 

pulverized petroleum coke, which serves as a carbon source to create reducing reaction 

conditions. The mixture is then formed into pellets which will help minimize fines entrainment in 

the gas stream from the reaction kiln. The pellets that are too fine are screened out and recycled 

to the mixer/pelletizer equipment. The moist (green) pellets are then cured/hardened in a moving 

belt direct-fired dryer. Cured pellets are fed to the tin chlorination reactor, which is a direct-fired 

rotary kiln. Both the dryer and kiln are fuelled with No. 2 fuel oil. The tin chlorination reactor is 

operated at high temperature at or slightly below the stoichiometric requirement of air in order to 

maintain reducing conditions and promote the reaction of tin oxide in the concentrate with calcium 

chloride and carbon to form tin chloride vapor, calcium oxide solids and carbon monoxide gas. 

The hot solids residue leaves the kiln and is cooled in a quench tank by mixing with water and the 

resulting slurry is pumped to tailings treatment. 

The off-gas and vapor mixture from the tin chlorination reactor is quench cooled by direct contact 

with water in a venturi scrubber, where tin chloride vapor is condensed into a tin chloride aqueous 

solution. Other impurity vapors are also condensed into the liquid phase. The off-gas from the 

chlorination gas quench venturi scrubber still contains impurities such as hydrochloric acid gas, 

and two additional scrubbing stages are required to assure that the off-gas meets environmental 

standards prior to venting to the atmosphere. 

The crude tin chloride solution is treated in a purification circuit with lime to precipitate some of 

the contained impurities and the precipitate is then filtered from the solution using filter presses. 

After purification, the tin chloride solution is fed to the crystallization circuit. 

The final purification step to make market grade tin chloride takes place within the crystallization 

process. Water and hydrochloric acid are evaporated, which causes tin chloride crystals to form. 

The tin chloride crystals are recovered by filtering the slurry on a vacuum belt filter. Filtrate off of 

the belt filter is recycled to the crystallizer feed with a controlled bleed stream being purged to 

wastewater treatment for impurity control. 





The vapor that is evaporated in the crystallizer is condensed to reclaim process water and some 

of the hydrochloric acid. An additional acid recovery scrubber is used to further remove 

hydrochloric acid vapor/mist from the crystallizer off-gas. The scrubber off-gas is then directed to 

the tin chlorination reactor off-gas scrubber system for final acid gas removal prior to venting to 

the atmosphere. The acid that is recovered is dilute and is sent to wastewater treatment; 

however, there may be opportunities for recycling this stream to the indium hydromet circuit. 

The tin chloride crystals are dried in a steam-heated tray dryer, cooled and directed to product 

screening to screen out fines prior to packaging. Collected fines are slurried and pumped back to 

the crystallizer. Sized tin chloride crystals (screen oversize) report to the tin chloride product bin 

and are subsequently packaged in bulk bags. Dry dust collection removes any entrained tin 

chloride from the dryer off-gas and packaging operations and returns the material to the product 

screening circuit. 

19.2.8 Indium and Zinc Hydromet - Reference Drawings 0503-42-01 through 0503-42-07 

Zinc concentrate from the zinc flotation circuit is slurried with aqueous recycle streams from 

downstream hydromet unit operations, and process water as required, and is preheated in a 

steam coil-heated and agitated tank, which also serves to provide buffer capacity to equalize the 

feed rate to the leach reactors. Pre-heated slurry is combined with regenerated ferric chloride 

leach solution and fed to four continuously stirred, heated leach reactor tanks arranged in series, 

where the leach reaction takes place. The leached pulp flows to a thickener where the solid leach 

residue is concentrated in the thickener underflow, then filtered and washed using a vacuum belt 

filter. The washed filter cake is repulped along with the solid iron oxide precipitate from 

oxyhydrolysis and pumped to tailings treatment. Leach residue filtrate and wash water is fed to 

the second stage chlorinator to optimize on recovery and regeneration of the spent leach solution. 

The pregnant leach solution from the thickener overflow is collected and fed to the lead carbonate 

precipitation reactors, where sodium carbonate is added to the solution in order to selectively 

precipitate soluble lead as lead carbonate. Two plate and frame filter presses are operated 

batchwise, in parallel to separate the lead carbonate from the remaining pregnant leach solution. 

Lead carbonate solids are repulped and pumped to tailings treatment along with solids formed by 

arsenic / copper cementation and zinc electrolyte solution purification in the zinc electrowinning 

circuit. 

The filtrate from the lead carbonate filters moves on to the copper / arsenic cementation stage 

where soluble copper and arsenic are cemented out and any ferric iron remaining in solution is 

reduced to ferrous iron using iron rods in two continuous mill-type reactors operated in parallel. 

The purified pregnant leach solution is then pumped through a precoat filter to remove the solid 

copper / arsenic residue and to assure removal of any other residual solid impurities before 

feeding the purified solution to the solvent extraction mixer-settlers. 

The raffinate from the extraction stage contains the majority of the ferrous iron from the spent 

leach solution, any iron that was leached from the zinc concentrate and any other metals that 

may have been present in the pregnant leach solution and were not removed in the leach solution 

purification steps or extracted to the organic solvent phase. The raffinate is collected in a holding 

tank, pumped through activated carbon columns to remove any residual organic and then fed to 

the primary chlorinator for regeneration of the ferric chloride leach solution. 





The primary and secondary chlorinator towers are arranged in series with the chlorine gas 

regenerant being fed (along with carrier air) at the bottom of the tower. Ferrous iron contained in 

the solvent extraction circuit raffinate is converted to ferric iron by oxidation-chlorination reactions 

as it flows downwards through the primary stage of the chlorinator tower. Any residual chlorine 

remaining in the gas stream exiting from the first stage is consumed in the second stage as 

ferrous iron in the leach residue filtrate and wash water stream is oxidized to ferric iron. 

Chlorinator off-gas is directed to an off-gas scrubber which uses caustic solution to adsorb any 

remaining chlorine and convert it to sodium chloride prior to venting the off-gas to the 

atmosphere. 

Excess raffinate solution not required in the leach is bled on a continuous basis to four agitated, 

pressurized oxyhydrolysis reactors where oxygen is added. The reactors are operated at 

sufficient pressure and temperature to convert soluble iron to iron oxide (Fe 2 O 3 ) solids. The 

discharge from the oxyhydrolysis reactors is reduced to atmospheric pressure in a flash vessel, 

the steam from which is used to preheat the oxyhydrolysis feed. The iron oxide solids are filtered 

from the solution by a plate and frame filter press, repulped and pumped to tailings treatment 

along with the leach residue. The filtrate, a dilute acid solution, can be reused in the solvent 

extraction circuit. 

The conceptual design of the solvent extraction circuit is based on selection of an organic 

extractant that is capable of selectively loading zinc and indium while rejecting ferrous iron to the 

extraction stage raffinate. 

In the extraction stage, the organic is contacted with the purified pregnant leach solution in four 

conventional mixer-settler cells where the organic becomes loaded with zinc and indium chloride 

complexes in a counter-current flow arrangement. From the extraction stage, the loaded organic 

flows to the scrub stage where zinc chloride is stripped by contacting the organic with a dilute 

hydrochloric acid solution in four counter-current mixer-settlers cells. The organic is further 

contacted with water in four primary and two secondary stripping mixer-settler cells to selectively 

strip the indium chloride. Two additional mixer-settler cells are provided for periodic acid washing 

of the stripped organic using concentrated hydrochloric acid to remove build-up of trace metal 

impurities and ferric iron from the organic prior to recirculating it back to the extraction stage. 

19.2.9 Zinc Electrowinning - Reference Drawing 0503-43-01 

The zinc chloride scrub solution is collected in a surge tank and pumped through activated carbon 

columns to remove any traces of the organic solvent prior to being fed into a continuous mill 

reactor where zinc metal is used to remove trace metal impurities by cementation. Any 

precipitate formed in the cementation reaction is filtered from the solution by a candle filter 

upstream of the zinc electrolyte holding tank. From here, the electrolyte is fed to a series of airsparged 

Dynel diaphragm zinc electrowinning cells where zinc is plated-out on aluminum 

cathodes and liberated chlorine gas is recovered in the off-gas stream. The zinc metal plates are 

automatically harvested and washed by a mechanical zinc sheet harvester and the washed plates 

are loaded onto pallets and packaged for shipment to the end user. 

Residual chlorine in the spent electrolyte is stripped with air in a packed tower, the off-gas from 

which joins the concentrated chlorine gas stream recovered from the electrowinning cells, and is 

recycled as feed scrub solution to the solvent extraction zinc scrub stage. 





19.2.10 Indium Sponge Cementation - Reference Drawing 0503-44-01 

Loaded strip solution from the solvent extraction containing a high concentration of indium 

chloride is also collected in a holding tank and pumped through activated carbon columns to 

removes traces of organic from the solution prior to feeding into two continuous mill-type 

cementation reactors. A small portion of the zinc metal produced in the zinc electrowinning circuit 

is used to cement-out a relatively pure (approximately 95%) indium sponge product, which is 

dewatered in a conventional plate and frame filter and then pressed into anodes using a hydraulic 

press. The indium anodes or "buttons" are shrink-wrapped to prevent oxidation of the metal and 

loaded onto pallets for shipment to the end user. The barren filtrate from the indium sponge filter 

press is recycled to the leach circuit to maximize overall indium recovery in the hydromet circuit. 

19.2.11 Tailings Treatment - Reference Drawing 0503-50-01 

All solid tailings from the concentrator, pyromet and hydromet circuits are pumped in slurry form 

to the existing tailings treatment tanks where hydrated lime is added to neutralize acidity and 

assure that the tailings are alkaline prior to subaerial disposal in the existing tailings pond. 

Interstitial process water associated with the various tailings streams is expected to be relatively 

benign in terms of environmental impact; nevertheless, the treated tailings stream will be 

thickened in a tailings thickener (existing at site) and the overflow water will be directed to the 

wastewater treatment plant for treatment as required to remove suspended solids, heavy metals 

and fluoride. The thickened tailings will be pumped out to the existing tailings pond. 

19.2.12 Wastewater Management – Reference Drawing 0503-50-02 through 0503-50-04 

Process wastewater, mine water and clarified effluent from the tailings thickener are collected in 

equalization tanks that provide surge capacity to help normalize both the flow rate and 

concentration of contaminants in the feed to the wastewater treatment system. The wastewater 

treatment system is designed to remove suspended solids, soluble metals and fluoride in three 

main treatment stages in association with support processes for solids removal, sludge 

dewatering and reagent supply. 

Wastewater from the equalization tanks is first pumped into a series of three continuously stirred 

tank reactors ("CSTR") where hydrated lime slurry is added to increase the pH and precipitate-out 

the bulk of the soluble metals from solution. The effluent wastewater slurry from the primary 

reaction stage is sent to a clarifier, where the suspended solids are removed in the clarifier 

underflow and pumped to the sludge dewatering filters. The clarifier overflow and sludge 

dewatering filtrate streams are directed to a single polishing stage CSTR for removal of any 

residual soluble metals by co-precipitation with iron. 

Suspended solids in the effluent from the polishing treatment stage are removed by two or more 

continuous backwashing sand filters operating in parallel. The reject stream is returned to the 

equalization tanks to enable solids to be removed from the circuit from a single point - the clarifier 

underflow. 

The pH of the clean effluent from the sand filter is then adjusted to an optimum level for 

adsorption of fluoride by activated alumina. Two or more activated alumina columns will be 

operated in parallel in such a manner as to allow for uninterrupted treatment of the sand filter 

effluent even when one column is taken out of service to be regenerated. The activated alumina 





is regenerated in-place using a 1% w/w caustic solution to strip the adsorbed fluoride ions from 

the media, followed by a dilute acid rinse and then a water rinse to re-equilibrate the pH in the 

column prior to placing it back into service. 

The spent activated alumina regenerant solution is collected in a holding tank, where the initially 

high fluoride concentration is reduced by precipitation of calcium fluoride in a batch reaction with 

lime. The calcium fluoride solids are allowed to settle in the conical hopper bottom of the reaction 

tank and are subsequently pumped to the sludge dewatering filters for co-disposal with the bulk of 

the wastewater treatment solids. The decant water from lime treatment of the spent activated 

alumina regeneration process still contains a soluble fluoride concentration that will be slightly 

above the solubility limit of the calcium fluoride precipitate, which is approximately equal to 8.0 

mg/L of dissolved fluoride. This water is recycled back to the polishing stage reaction such that 

the residual fluoride may be reduced to below the allowable discharge limit by re-filtering through 

the activated alumina system. 

The treated effluent from the activated alumina columns is collected in a treated effluent holding 

tank, where the pH is adjusted with caustic to assure compliance with environmental discharge 

limits. The treated discharge is then released into the existing tailings pond. 

19.2.13 Process and Domestic Water 

Process water for the concentrator will be reclaimed from the tailings pond for re-use. Given that 

there is not a great deal of process water consumption in the concentrator (e.g. leaving the 

system with the products or by evaporation), and the fact that additional water enters the tailings 

pond via precipitation / site runoff and treated mine water, new facilities are not expected to be 

required for supply or treatment of process water. 

Domestic water treatment includes carbon filtration followed by chlorination. Domestic wastewater 

will be collected separately from any process water and treated in the existing septic field 

disposal system. 

19.2.14 Utilities Circuit Unit Operations Block Diagram 

A boiler is not required for the standalone concentrator producing tin and zinc concentrates. 

Process utilities include compressed air systems, low pressure air blowers for flotation, and 

vacuum pumps for filtration. In the case of tin chloride pyromet and indium hydromet, a steam 

boiler is required (No. 2 fuel oil fired) to service process steam requirements. A boiler water 

treatment system is used to generate deionized water for boiler feed water. 

19.2.15 Reagent Systems 

All reagents will be stored, prepared, and delivered from a common reagent area within each 

main process area. There will be a reagent area for the concentrator, one for the indium/zinc 

hydromet, one for the tin pyromet, and one for wastewater/tailings treatment. The reagent 

systems generally include make-up tanks for slurrying solid reagents or adjusting solution 

strength, holding tanks and pumps for distribution to the process. A summary of the required 

process reagent systems is given in Table 19-1: 





Table 19-1: Summary of Reagent Systems Required for each Main Process Area 

MAIN PROCESS AREA / REAGENT SYSTEM 

REAGENT USE / PURPOSE 

ZINC FLOTATION 

Copper sulphate 

Activator 

R-3894 Collector 

MIBC 

Frother 

Lime 

pH adjustment 

ARSENIC FLOTATION 

PAX 

Collector 

R-3894 Collector 

MIBC 

Frother 

Sulfuric acid 

pH adjustment 

TIN FLOTATION 

Sodium silicofluoride 

Styrene phosphonic acid 

MIBC 

Sulfuric acid 

Gange depressant 

Collector 

Frother 

pH adjustment 

TIN CHLORIDE PYROMET 

Petroleum coke 

Calcium chloride 

Lime 

Sodium hydroxide 

Carbon source for reduction 

Tin chlorination reactant 

pH adjustment 

HCl mist scrubbing 

INDIUM AND ZINC HYDROMET 

Hydrochloric acid 

Chlorine gas 

Ferric chloride 


Sodium carbonate 

Sodium sulphide 

Sodium chloride 

Iron rods or balls 

Diatomaceous earth 

Organic extractant reagent 

Organic diluent 

Aqueous stream acidity adjustment 

Regeneration of ferric chloride 

Leach solution makeup and initial charge 

Regeneration of activated carbon 

Precipitation of lead 

Precipitation of impurity metal sulphides 

Aqueous stream chloride concentration adjustment 

Cementation of Cu/As / reduction of Fe(III) to Fe(II) 

Filtration aid 

Solvent extraction of indium & zinc 

Solvent extraction of indium & zinc 

TAILINGS TREATMENT 

Lime 

Flocculant 

WASTEWATER TREATMENT 

Lime 

Ferric chloride 

Flocculant 


Sulfuric acid 

pH adjustment 

Improved settling of suspended solids 

pH adjustment 

Co-precipitation of heavy metals 

Improved settling of suspended solids 

Regeneration of activated alumina 

Conditioning of activated alumina 





19.3 Design Criteria 

The process design criteria used to form a basis for conceptual flowsheet design, equipment 

selection, equipment sizing, product revenue potential, operating and capital costs and 

preliminary economic assessment / cash flow analysis is described in Table 19-2 through Table 

19-15. 

Table 19-2: Ore Characteristics and Mill Throughput Design Criteria 

PARAMETER UNITS VALUE COMMENTS 

Run of mine ore moisture content wt% 4.0 

Ore specific gravity 2.85 

ROM ore bulk density tonne/m³ 2.15 

Head grade dry basis 

Tin 

Zinc 

Indium 

wt% Sn 

wt% Zn 

ppm In 

0.71 

1.82 

183 

Mill design capacity ROM ore 

throughput 

Mill annual availability at design 

capacity 

DMT/d 850 

% 90 Total availability over 365 days for 

operation at 850 tonne/d 

Overall tin recovery to concentrate 

wt% 

74.97 

Preliminary - based on limited data from 

historic reports on previous bench scale 

testing of tin flotation circuits by CESL and 

Lakefield. Requires confirmation based 

on continuous pilot testing of the proposed 

flowsheet. 

Overall tin recovery to tin chloride 

product 

Tin grade for concentrate production 

wt% 

wt% Sn 

67.60 

46.0 

Conceptual based on recoveries reported 

by CANMET for production of tin metal by 

chloride roasting North Zone ore. 

Based on limited data from historic reports 

on previous bench scale testing of tin 

flotation circuits by CESL. Requires 

confirmation based on continuous pilot 

scale testing of the proposed flowsheet. 

Tin concentrate grade for producing 

tin chloride 

wt% Sn 

20.0 

Maximum possible to prevent fusion of 

calcium chloride. 

Tin chloride product purity 

wt% Sn 

62.6 

Based on compliance with typical product 

purity specification for tin chloride 

anhydrous as 99.0% SnCl 2 . 

Overall zinc recovery to concentrate 

wt% Zn 

85.18 

Preliminary based on limited historic 

testing data from Lakefield. Requires 

confirmation based on continuous pilot 

scale testing of the proposed flowsheet. 

Overall zinc recovery to zinc metal 

product 

wt% Zn 

79.42 

Preliminary based on typical zinc loss 

through hydromet and electrowin circuits. 

Requires confirmation based on 

continuous pilot scale testing of the 

proposed flowsheet. 





Overall indium recovery to zinc 

concentrate 

wt% In 

83.05 

Preliminary based on limited historic data 

from Lakefield. Requires confirmation 

based on continuous pilot scale testing of 

the proposed flowsheet. 

Overall indium recovery to indium 

sponge product 

wt% In 

75.40 

Preliminary based on typical indium loss 

through hydromet and cementation 

circuits. Requires confirmation based on 

continuous pilot scale testing of the 

proposed flowsheet. 

Zinc concentrate zinc grade 

wt% Zn 

50.0 

Preliminary based on typical zinc 

concentrate grade as input to smelter. 

Zinc concentrate indium grade 

ppm In 

4894.5 

Preliminary based on overall indium 

recovery to zinc concentrate from item 

1.10. 

Zinc metal grade from electrowinning 

circuit 

Indium sponge grade from 

cementation circuit 

wt% Zn 99.5 Preliminary based on meeting minimum 

end-user specifications. 

wt% In 95.0 Preliminary based on meeting minimum 

end-user specification for feed to 

conventional electro-refining circuit. 

Table 19-3: Ore Storage and Crushing Circuit Design Criteria 


Crusher circuit daily operating hours hours/d 8 One shift per day operation 

Crushing circuit design ROM ore 

processing rate 

tonne/h 106 Based on 8 hour per day operation 

Primary crusher: 

Number of primary crushers 

Crusher type 

Circuit type 

Primary crusher ore feed rate 

ROM ore top size 

Product 80% passing (P80) 

Impact work index 

tonne/h 

mm 

mm 

kWh/tonne 

1 @ 100% 

Jaw 

Open 

106 

400 

51.7 

11.25 

Ore crushability based on previous Fire 

Tower Zone operation and will require 

testing to assess power requirement 

relative to North Zone ore variability. 

Secondary crusher: 

Number of secondary crushers 

Crusher type 

Circuit type 

Secondary crusher ore feed rate 

Feed 80% passing (F80) 


Impact work index 

mm 

mm 

kWh/tonne 

1 @ 100% 

Cone 

Closed 

106 

51.7 

9.50 

11.25 

Ore crushability based on previous Fire 

Tower Zone operation and will require 

testing to assess power requirement 

relative to North Zone ore variability. 

Crusher screen classification: 

Number of crushing screens: 

Screen type 

Fraction of feed to screen o/s 

Ore feed rate 

Screen size opening 

wt% 

tonne/h 

mm 

1 @ 100% 

Double deck 

50% 

212 

12.0 

Fine ore storage silo live capacity tonne 1700 Based on 2 days live storage capacity 





Table 19-4: Grinding and Desliming Circuit Design Criteria 


Grinding and desliming circuit 

hours/d 24 

operating time 

Rod mill weigh feeder 

Number 

Feeder type 

Crushed ore capacity 

tonne/h 

1 @ 100% 

belt 

35.42 

Rod mill feed conveyor 

Crushed ore capacity tonne/h 35.42 

Primary grinding mill 

Number of primary mills 

Mill type 

Mill circuit type 



Size reduction ratio 

Bond rod mill work index 

mm 

mm 

kWh/tonne 

1 

Rod mill 

open 

9.50 

1.19 

7.98 

19.5 

Overflow, wet grind. 

From Lakefield pilot testing of 

Endogranitic and Contact Crest NZ ore 

Rod mill ore feed rate dry solids 

Rod mill operating solids 

tonne/h 

wt% 

35.42 

70 

Grinding classification cyclopac 

Rod mill cyclone cut size (d 50 ) 

Number of cyclones 

Solids feed rate 

Feed density (% solids) 

Overflow density (% solids) 

Underflow density (% solids) 

μm 

tonne/h 

wt% 

wt% 

wt% 

50 

2 

95.7 

50.0 

30.0 

70.0 

Grinding classification screen 

Deleted 

Secondary grinding mill 

Number of secondary mills 

Mill type 





Bond ball mill work index 

mm 

μm 

kWh/tonne 

1 @ 100% 

Ball mill 

closed 

1.19 

74.0 

16.08 

12.0 


Endogranitic and Contact Crest NZ ore 

Ball mill feed rate dry solids 

Ball mill operating solids 

tonne/h 

wt% 

60.3 

65.0 

Primary desliming cyclopac 


Cyclone cut size (d 50 ) 





μm 

tonne/h 

wt% 

wt% 

wt% 

13 

20.0 

45.0 

21.6 

6.1 

70.0 

Secondary desliming cyclopac 







μm 

tonne/h 

wt% 

wt% 

wt% 

8 

20.0 

35.4 

28.0 

10.7 

70.0 





Desliming centrifugal separator 

Number of centrifugal separators 

Solids feed rate (total) 

tonne/h 

1 

9.6 

Table 19-5: Magnetic Separation Circuit Design Criteria 


Magnetic separation circuit operating 

time 

hours/d 24 

Primary magnetic separation: 

Number of units: 

Magnetic separator type 

Solids feed rate (total) 

Feed density 

Magnetic field strength 

tonne/h 

wt% 

gauss 

2 @ 50% 

26.3 

44.1 

950 

wet low-intensity (WLIMS) 

Based on Eriez model SL 

Secondary magnetic separation 

Number of units 

Magnetic separator type 


Feed density 

Magnetic field strength 

tonne/h 

wt% 

gauss 

1 @ 100% 

26.1 

35 - 40 

9,000 

wet high-intensity (WHIMS) 

magnetic field intensity in open air gap 

(20,000 in matrix) based on Eriez model 

CF 

Table 19-6: Zinc Flotation Circuit Design Criteria 


Flotation circuit operating time hours/d 24 

Zinc flotation conditioning tank: 

Holding time 

Agitation power basis 

Slurry flow rate 

Solids concentration 

Zinc rougher flotation cells: 

Number of rougher cells 

Total solids feed rate (w/recycle) 

Total slurry feed rate (w/recycle) 

Solids concentration in feed 

Total rougher residence time 

Aeration factor 

Air flow requirement basis 

Rougher conc. zinc recovery 

hour 

kW/m³ 

m³/h 

wt% 

tonne/h 

m³/h 

wt% 

min. 

m³/m³/min 

wt% 

0.25 

0.20 

76.1 

30.0 

5 

28.3 

76.1 

30.0 

10 

0.85 

1.0 

76.0 

Further testing required to determine 

optimum flotation kinetics relative to 

particle size and reagent scheme and to 

confirm flowsheet configuration for 

sequential flotation of zinc, arsenic and 

tin. 

Zinc scavenger flotation cells: 

Number of scavenger cells 




Total scavenger residence time 



Scavenger conc. zinc recovery 

tonne/h 

m³/h 

wt% 

min. 

m³/m³/min 

wt% 

5 

25.9 

66.0 

31.4 

10 

0.85 

1.0 

50.0 






tin. 





Zinc cleaner flotation cells: 

Number of cleaner cells 




Primary cleaner residence time 

Secondary cleaner residence 

time 


Air flow requirement 

Cleaner conc. zinc recovery 

tonne/h 

m³/h 

wt% 

min. 

min. 

m³/m³/min 

wt% 

6 

3.3 

14.0 

20.0 

10 

10 

0.85 

1.0 

80.0 



particle size and reagent scheme. 

Zinc concentrate thickener: 

Feed volumetric flowrate 

Feed mass flowrate 

Feed solids concentration 

Underflow solids concentration 

Water overflow flow rate 

Thickener sizing basis 

m³/h 

tonne/h 

wt% 

wt% 

m³/h 

m 3 /m 2 h 

6.5 

7.3 

15.0 

65.0 

5.6 

1.0 

Table 19-7: Arsenic Flotation Circuit Design Criteria 


Arsenic flotation conditioning tank: 

Holding time 




Arsenic rougher flotation cells: 








Rougher conc. arsenic recovery 

hour 

kW/m³ 

m³/h 

wt% 

tonne/h 

m³/h 

wt% 

min. 

m³/m³/min 

wt% 

0.25 

0.20 

72.0 

30.0 

5 

26.8 

72.0 

30.0 

20 

0.85 

1.0 

73.0 






tin. 

Arsenic scavenger flotation cells: 








Scavenger conc. arsenic 

recovery 

tonne/h 

m³/h 

wt% 

min. 

m³/m³/min 

wt% 

3 

24.2 

74.2 

26.9 

10 

0.85 

1.0 

30.0 






tin. 

Arsenic cleaner flotation cells: 





Primary cleaner residence time 

Secondary cleaner residence 

time 



Cleaner conc. arsenic recovery 

tonne/h 

m³/h 

wt% 

min. 

min. 

m³/m³/min 

wt% 

5 

3.6 

15.1 

20.0 

15 

15 

0.85 

1.0 

80.0 








Arsenic flotation regrind mill: 

Number of regrind mills 

Mill type 





Bond ball mill work index 

Regrind mill feed rate dry solids 

Regrind mill operating solids 

μm 

μm 

kWh/tonne 

tonne/h 

wt% 

1 @ 100% 

Ball mill 

closed 

75.0 

45.0 

1.67 

12.0 

24.1 

65.0 


Endogranitic and Contract Crest NZ ore 

Including recycle 

Regrind classification cyclopac: 







μm 

tonne/h 

wt% 

wt% 

wt% 

1 

50.0 

65.3 

46.8 

26.4 

70.0 

Regrind classification screen 

Deleted 

Arsenic flotation tailings thickener: 

Feed volumetric flow rate 

Feed mass flow rate 





m³/h 

tonne/h 

wt% 

wt% 

m³/h 

m 3 /m 2 h 

70.3 

85.4 

27.2 

65.0 

20.7 

1.0 

Table 19-8: Tin Flotation and Gravity Separation Circuit Design Criteria 


Tin flotation conditioning tank: 

Holding time 




hour 

kW/m³ 

m³/h 

wt% 

1.0 

0.20 

74.2 

26.7 

Tin rougher flotation cells: 








Rougher conc. tin recovery 

tonne/h 

m³/h 

wt% 

min. 

m³/m³/min 

wt% 

5 

24.0 

74.2 

26.7 

15 

0.85 

1.0 

86.4 






tin. 

Tin scavenger flotation cells: 








Scavenger conc. tin recovery 

tonne/h 

m³/h 

wt% 

min. 

m³/m³/min 

wt% 

3 

20.9 

66.3 

27.4 

10 

0.85 

1.0 

36.9 






tin. 





Tin cleaner 1 column flotation cell: 





Cleaner 1 residence time 



Overall cleaner conc. tin recovery 

tonne/h 

m³/h 

wt% 

min. 

m³/m³/min 

wt% 

1 

3.4 

15.6 

19.2 

25 

0.85 

1.0 

90 




Tin cleaner 2 column flotation cell: 





Cleaner 2 residence time 



Overall cleaner conc. tin recovery 

tonne/h 

m³/h 

wt% 

min. 

m³/m³/min 

wt% 

1 

2.0 

9.3 

19.2 

25 

0.85 

1.0 

90 




Tin Rougher Centrifugal Gravity 

Separator: 



tonne/h 

1 

2.28 

Tin Scavenger Centrifugal Gravity 

Separator: 



tonne/h 

1 

1.6 

Tin concentrate thickener: 







m³/h 

tonne/h 

wt% 

wt% 

m³/h 

m 3 /m 2 h 

2.5 

2.7 

15.0 

65.0 

2.1 

1.0 

Based on production of 46% wt% Sn in 

concentrate 

Tin concentrate belt filter: 

Number of filters 

Filtration rate (sizing basis) 

Filter cake moisture content 


Vacuum flow requirements 

tonne/m 2 h 

wt% 

tonne/h 

m 3 /m 2 min 

1 @ 100% 

0.1 

10 

0.41 

4.0 

Tin concentrate product dryer 


Dryer type 


Overall heat transfer coefficient 

tonne/h 

W/m² o C 

1 

Holo-flite 

0.41 

56.8 

Tin concentrate storage bin: 

Live storage capacity tonne 31 Based on 3 days live storage capacity 

Tin concentrate packaging 

Operating time 

Concentrate feed rate 

hrs/day 

tonne/h 

8 

1.3 

Based on day-shift operation 





Table 19-9: Tin Chloride Production Circuit Design Criteria 


Tin chloride production circuit 

hour/day 24 

operating time 

Tin concentrate mixer: 

Tin concentrate feed rate (dry) 

Pulverized coal feed rate 

Calcium chloride feed rate 

Total feed rate (w/recycle) 

Mixing residence time 

Volumetric loading ratio 

Power input 

Tin concentrate pelletizer: 


Total feed rate (w/recycle) 

Pelletizer residence time 


Power input 

Tin pellet screen: 


Tin pellet feed rate 

Screen opening size 

Screen loading 

Tin pellet dryer: 


Total solids feed rate (wet) 

Feed solids moisture 

Product moisture 

Product temperature 


Dryer air flow to solids ratio 

tonne/h 

tonne/h 

tonne/h 

tonne/hr 

min. 

% 

kW/tonne 

tonne/h 

min. 

% 

kW/tonne 

tonne/h 

mm 

tonne/m 2 h 

tonne/h 

wt% 

wt% 

o 

C 

kW/ o C·m 2 

t air/t pellet 

1.44 

0.030 

0.353 

4.9 

5 

50 

20 

1 

4.9 

10 

10 

20 

1 

4.9 

2.0 

3.7 

1 

1.6 

12.0 

2.0 

175 

0.11 

7.0 

Tin pellet storage bin: 

Live storage capacity tonne 12.7 Based on 8 hours live storage capacity 

Tin chlorination reactor: 


Solids residence time 


tonne/h 

min. 

% 

1.6 

60 

3 

Chlorination residue quench tank: 

Holding time 




hour 

kW/m³ 

m³/h 

wt% 

2.0 

0.10 

5.2 

13.3 

Tin chloride solution purification 

tanks: 

Number of tanks in series 

Holding time (total) 


Solution flow rate 

hour 

kW/m 3 

m 3 /h 

3 

2.0 

0.20 

2.1 

Tin chloride solution purification 

filters: 


Filter type 



tonne/h 

wt% 

2 

P & F 

0.056 

20.0 

plate and frame 





Tin chloride solution crystallizer: 

Number of crystallizers 

Water evaporation rate 

tonne/h 

1 @ 100% 

2.0 

Tin chloride vapor condenser: 


Effectiveness factor 

Cooling water ∆T 

Cooling water flow rate 

kW/ o C·m 2 

o 

C 

m 3 /h 

3.0 

0.75 

15 

72.4 

Tin chloride filter 


Filter type 




Vacuum flow requirements 

wt% 

tonne/m 2 h 

tonne/h 

m 3 /m 2 min 

1 

horizontal 

vacuum 

10.0 

0.1 

0.27 

4.0 

Acid recovery scrubber: 

Scrubber type 

HCl flow rate 

Superficial gas velocity 

Scrubber L/G ratio 

tonne/h 

m/min 

gpm/scfm 

0.115 

40.0 

0.20 

HCl absorber tower 

Tin chloride product dryer 


Dryer type 

Solids feed rate (dry basis) 

Feed solids moisture content 


tonne/h 

wt% 

W/m² o C 

1 

Holo-flite 

0.272 

10.0 

56.8 

Tin chloride product bin: 

Live storage capacity tonne 21.7 Based on 3 days live storage capacity 

Tin chloride product packaging: 

Operating time 

Product feed rate 

h/day 

tonne/h 

4.0 

1.81 

Table 19-10: Indium and Zinc Hydromet Circuit Design Criteria 


Leach circuit operating time hours/d 24 

BMS concentrate grade 

wt% Zn 

wt% In 

wt% Sn 

wt% Cu 

wt% As 

wt% Fe 

wt% Pb 

50.0 

0.49 

0.82 

0.35 

0.91 

3.72 

1.09 

tin grade refers only to tin contained in 

stannite 

iron grade refers only to iron contained in 

pyrite 

Leach circuit metal extraction 

wt% Zn 

wt% In 

wt% Sn 

wt% Cu 

wt% As 

wt% Fe 

wt% Pb 

98.0 

98.0 

90.0 

97.0 

25.0 

70.0 

99.0 

extraction rates to be confirmed by bench 

scale test work 





BMS leach feed holding tank: 

Holding time 


Slurry discharge flow rate 


Leach slurry preheat temperature 

Estimated heat load 

hour 

kW/m³ 

m³/h 

wt% 

o 

C 

kW 

4.0 

0.10 

0.66 

73.8 

40.0 

14.1 

BMS leach tank reactors: 

Number of tank reactors in series 

Batch residence time 

Scale-up factor for CSTR 

Leach temperature 

Estimated heat load (total) 

Initial ferric iron concentration 

Leach stoichiometry 

HCl concentration in leach 


Leach slurry discharge flow rate 

Residual solids concentration 

hour 

o 

C 

kW 

g Fe 3+ /L 

M HCl 

kW/m 3 

m 3 /h 

wt% 

4 

4.0 

3.0 

95.0 

764.2 

100.0 

0.91 

0.0 

0.10 

9.7 

4.9 

BMS ferric chloride leach reaction 

parameters to be confirmed by bench 

scale testing. 

Leach residue thickener: 





Leach solution overflow rate 


m³/h 

tonne/h 

wt% 

wt% 

m³/h 

m 3 /m 2 h 

9.7 

10.0 

4.9 

65.0 

9.2 

1.22 

Leach solution holding tank: 

Holding time hour 8 

Leach residue holding tank: 

Holding time 



BMS leach residue filter: 


Filter type 




Vacuum flow requirement 

Leach residue filter filtrate holding 

tank: 

Holding time 


Leach residue repulper 

Solids feed rate (dry basis) 

Repulper target percent solids 

Repulped leach residue holding tank: 

Holding time 



Chlorinator tower 

Number of stages 

Solution feed rate to 1 st stage 

Solution feed rate to 2 nd stage 

Chlorine feed to 1 st stage 

Percent flooding velocity 

hour 

kW/m 3 

m³/h 

wt% 

tonne/m 2 h 

tonne/h 

m 3 /m 2 min 

hour 

m 3 /h 

tonne/h 

wt% 

hour 

kW/m 3 

m 3 /h 

tonne/h 

tonne/h 

tonne/h 

% 

8 

0.2 

0.44 

1 @ 100% 

horizontal 

vacuum 

2.0 

0.3 

0.47 

4.0 

8 

0.46 

0.61 

20.0 

4.0 

0.2 

2.61 

2 

8.0 

0.47 

0.61 

60 





Ferric chloride solution holding tank: 

Holding time 


hour 

m 3 /h 

3.0 

9.6 

Ferric chloride solution pre-heater: 

Heater type 

Solution outlet temperature 


o C 

kW 

S&T HX 

40.0 

243 

graphite shell and tube heat exchanger 

Oxyhydrolysis feed holding tank: 

Holding time 


Raffinate sent to oxyhydrolysis 

hour 

m³/h 

wt% 

4.0 

0.90 

9.6 

Oxyhydrolysis feed heat exchanger: 

Heater type 

Solution outlet temperature 


o C 

kW 

S&T HX 

140.0 

108 

graphite shell and tube heat exchanger 

Oxyhydrolysis reactors: 

Number of reactors in series 

Reactor type 

Reaction temperature 

Reaction pressure 

Batch residence time (4 reactors) 


Solution feed rate 

Oxygen feed rate 


Precipitate form 

°C 

kPa 

hour 

m³/h 

tonne/h 

kW 

4 

PV 

140.0 

500 

2.0 

3 

0.90 

0.016 

32.1 

Fe 2 O 3 

Vertical, Hypalon-lined pressure vessels 

w/ helical agitator 

Conversion of Fe 2+ to Fe 2 O 3 based on 

operating pressure and temperature from 

literature - to be confirmed by testing 

Oxyhydrolysis filter feed tank: 

Holding time 

Agitator power basis 


hour 

kW/m 3 

m 3 /h 

12.0 

0.1 

0.8 

Oxyhydrolysis residue filter: 


Number of filter cycles per day 

Filter type 

Solids feed rate (daily average) 

Slurry percent solids 


Oxyhydrolysis dilute acid holding 

tank: 

Holding time 


kg/h 

wt% 

wt% 

hour 

m³/h 

1 

2 

P&F 

0.14 

16.2 

10.0 

12.0 

0.80 


Lead precipitation reactors: 

Number of reactors in series 

Reactor type 

Batch residence time (3 tanks) 


Solution feed rate 

Reagent feed rate (Na 2 CO 3 dry) 


CSTR 

0.5 

3 

9.3 

3 

hour 

m 3 /h 

tonne/h 

kW/m 3 

0.006 

0.1 

continuously stirred tank reactor 

5 wt% sodium carbonate solution is added 

in stoichiometric quantity as required to 

precipitate lead from solution as lead 

carbonate 

Lead carbonate filter feed tank: 

Holding time 

Agitator power basis 


hour 

kW/m 3 

m 3 /h 

6.0 

0.1 

9.3 





Lead carbonate filter: 



Filter type 




Lead carbonate filtrate holding tank: 

Holding time 


kg/h 

wt% 

wt% 

hour 

m³/h 

2 

2 

P&F 

24.6 

0.26 

10.0 

6.0 

9.3 


Lead precipitate holding tank: 

Holding time 



hour 

kW/m 3 

m³/h 

4.0 

0.2 

0.16 

Copper/arsenic cementation reactor: 

Number of reactors in parallel 

Reactor type 

CMR residence time 

Solution flow rate (total) 

hour 

m³/h 

2 

CMR 

0.5 

9.4 

Continuous mill reactor w/ rotating basket 

containing iron rods for cementation 

Copper/arsenic cementation residue 

filter feed tank: 

Holding time 



Operating temperature 

hour 

kW/m 3 

m 3 /h 

o 

C 

6.0 

0.1 

9.4 

50.0 

Copper/arsenic cementation residue 

filter: 



Filter type 



Filter cake percent moisture 

kg/h 

wt% 

wt% 

2 

2 

P&F 

12.6 

0.1 

10.0 

plate and frame filter w/ precoat 

Copper/arsenic residue filtrate 

holding tank: 

Holding time 


hour 

m³/h 

6.0 

9.4 

Extraction stage mixer-settlers: 

Organic extractant composition 

- Extraction regent 

- Low aromatic solvent 

Aqueous phase acid conc. 

Number of extraction stages 

Mixer residence time per stage 

Organic/Aqueous ratio (external) 

Organic volume flow rate 

Aqueous volume flow rate 

Settler sizing criteria 


vol% 

vol% 

M HCl 

min. 

vol/vol 

m³/h 

m³/h 

m³/h·m² 

°C 

50 

50 

< 1.0 M 

4 

5 

1 

9.4 

9.4 

4.0 

22.0 

Further bench scale testing is required to 

confirm SX reagent selection, flowsheet 

configuration and operating parameters 

(temperature, O/A ratio, acid and chloride 

concentrations) 

Scrub stage mixer-settlers: 

Scrub solution acid concentration 

Number of scrub stages 







M HCl 

min. 

vol/vol 

m³/h 

m³/h 

m³/h·m² 

°C 

0.01 

4 

5 

4 

9.4 

2.4 

4.0 

22.0 


confirm scrub solution composition, 

flowsheet configuration and operating 

parameters (temperature, O/A ratio, acid 

and chloride concentrations) 





Strip stage mixer-settlers: 

Strip solution acid concentration 

Number of primary strip stages 

Number of sec. strip stages 







M HCl 

min. 

vol/vol 

m³/h 

m³/h 

m³/h·m² 

°C 

0.0 

4 

2 

5 

4 

9.4 

2.4 

4.0 

22.0 


confirm strip solution composition, 




Acid wash stage mixer-settlers: 

Scrub solution acid concentration 

Number of acid wash stages 







M HCl 

min. 

vol/vol 

m³/h 

m³/h 

m³/h·m² 

°C 

6.0 

2 

5 

1 

9.4 

9.4 

4.0 

22.0 


confirm acid wash requirements, 




SX crud mixer-settler: 

Number of stages 





min. 

m³/h 

m³/h·m² 

°C 

1 

5 

5.6 

4.0 

22.0 

Crud mixer settler is used for rougher 

separation of organic entrained in SX area 

wastewater 

Scrub / Strip / Wash / Organic 

solution preparation tanks: 

Holding time hour 3.0 

Loaded scrub / strip solution 

pumping tanks: 

Holding time hour 3.0 

SX area carbon adsorption columns: 

Number of carbon columns: 

- extraction stage raffinate 

- loaded scrub solution 

- loaded strip solution 

- SX area wastewater 

Empty bed contact time 

min. 

2 

2 

2 

1 

35 

Table 19-11: Zinc Electrowinning Circuit Design Criteria 


Zinc electrowinning circuit operating 

time 

hours/d 24 

Zinc chloride solution cementation 

reactor: 


Reactor type 



hour 

m³/h 

1 

CMR 

0.5 

2.4 


containing zinc metal plates for 

cementation 

Electrolyte holding tank: 

Holding time 


hour 

m 3 /h 

24 

2.4 





Zinc electrowinning cells: 

Cell type 

Zinc metal gross production rate 

Zinc chloride solution flow rate 

Inverse Faraday constant for zinc 

Current density 

Current efficiency 

Time efficiency 

Plating area per cathode 

Maximum cathodes per cell 

Total no. cells required 


Operating pH 

Power requirement 

Cathode material 

Anode material 

tonne/h 

m 3 /h 

g/A·h 

A/m 2 

% 

% 

m 2 

o C 

kWh/kg Zn 

0.52 

2.4 

1.22 

323 

91.0 

85.0 

1.5 

66 

19 

35.0 

< 2 

5.0 

aluminum 

titanium 

Dynel diaphragm, air-sparged 

Operating parameters to be confirmed by 

equipment manufacturer 

Spent electrolyte holding tank: 

Holding time 


hour 

m 3 /h 

3.0 

1.3 

Spent electrolyte de-chlorination 

tower: 



Operating pH 

m³/h 

o 

C 

1.3 

50.0 

0.8 to 1.0 

Table 19-12: Indium Sponge Cementation Circuit Design Criteria 


Indium cementation reactor: 


Reactor type 



hour 

m³/h 

2 

CMR 

6.0 

2.4 


containing zinc metal plates for 

cementation 

Indium sponge filter feed tank: 

Holding time 



hour 

kW/m 3 

m 3 /h 

24 

0.1 

2.4 

Indium sponge filter: 



Filter type 



Filter cake percent moisture 

kg/h 

wt% 

wt% 

1 

1 

P&F 

5.14 

0.22 

10.0 

plate and frame filter w/ precoat 

Indium sponge filtrate holding tank: 

Holding time 


hour 

m³/h 

24.0 

2.4 

Indium sponge hydraulic press: 

Press capacity 

Hydraulic pressure 

kg/anode 

kPa 

25 

15,000 





Table 19-13: Reagent Systems Design Criteria 


Zinc float reagent consumption: 

Copper sulphate solid 

R3894 collector 

Hydrated lime 

MIBC frother 

g/t ore 

g/t ore 

g/t ore 

g/t ore 

120 

12 

3750 

4.5 

Based on limited data from test reports by 

CESL and Lakefield. Further bench scale 

testing required to confirm reagent 

dosages 

Arsenic float reagent consumption: 

PAX collector 

R3894 collector 

MIBC frother 

Sulfuric acid (98%) 

g/t ore 

g/t ore 

g/t ore 

g/t ore 

275 

5 

16.5 

2000 




dosages 

Tin float reagent consumption: 

Sulfuric acid (98%) 

Sodium silicofluoride 

Styrene phosphonic acid collector 

MIBC frother 

g/t ore 

g/t ore 

g/t ore 

g/t ore 

2000 

500 

250 

20 




dosages 

Tin chloride circuit reagent 

consumption: 

Pulverized coal / petcoke 

Calcium chloride 

t C/t Sn 

t CaCl 2 /t Sn 

0.15 

1.87 

Based on 50% stoichiometric excess of 

carbon and 100% stoichiometric excess 

of calcium chloride. 

Ferric chloride leach circuit reagent 

consumption: 

Hydrochloric acid (36% HCl) 

M HCl 

0 

To be confirmed. 

Chlorine gas 

Leach solution purification reagent 

consumption: 

Sodium carbonate (Na 2 CO 3 ) 

t Cl 2 /t BMS 

t/t Pb 

0.041 

0.38 

Based on 0.91 times stoichiometric 

requirement for oxidation of Fe(II) to 

Fe(III) for regeneration of leach solution 

and assumed BMS concentrate 

composition less chlorine recovered from 

zinc electrowinning. 

Based on stoichiometric requirement for 

precipitation of lead carbonate from 

solution. 

Sodium sulphide (Na 2 S) 

g/L 

1.0 

Dosage required to assure strong 

reducing conditions in Cu/As cementation 

reaction. 

Iron rods (100% Fe) 

t Fe/t BSC 

0.061 

Based on 10% stoichiometric excess iron 

for conversion of 99% copper and 40% 

arsenic to metal and reduction of 

remaining Cu 2+ /As 5+ /Fe 3+ in solution to 

Cu + /As 3+ /Fe 2+ 

Diatomaceous earth 

t/t solids 

0.05 


t/t BSC 

0.0002 

Consumption is minimal and based on 

acidification of filter cake wash water to 

0.1M HCl. 





Solvent extraction circuit reagent 

consumption: 


t/t BSC 

0.07 

Based on 1% makeup HCl in extraction 

stage to maintain 3.5M aqueous feed 

acidity; continuous makeup of fresh scrub 

solution to 0.01 M HCl at O/A ratio of 4:1 

in scrub stage; intermittent makeup of 

acid wash solution to 6.0M HCl based on 

bleed stream to maintain [Fe 3+ ] < 150g/L 

in recycled wash solution and O/A ratio of 

1:1 in acid wash stage. Acid 

requirements and flowsheet configuration 

to be confirmed through bench scale 

testing. 

Extraction reagent 

Diluent 

t/t BSC 

t/t BSC 

0.0005 

0.0002 

Based on use of 75% v/v extractant at 

O/A of 1:1 in extraction stage and 0.01% 

loss of solvent in circuit. 

Zinc electrowinning circuit reagent 

consumption: 

Zinc metal plate t/t BSC 0.0002 Based on stoichiometric requirement of 

zinc for cementation of 99.75% indium, 

54% copper and 63% lead from zinc 

electrolyte. 

Indium sponge cementation circuit 

reagent consumption: 


t/t BSC 

0.02 

Based on maintaining indium chloride 

solution at 0.1M HCl acidity. To be 

confirmed through bench scale testing. 

Zinc metal plate 

t/t BSC 

0.003 

Based on stoichiometric requirement of 

zinc for cementation of 99.75% indium. 

Table 19-14: Process Utility Systems Design Criteria 


Process electrical power total connect 

/ total average load: 

Crushing/grinding/desliming circuit 

Tin concentrator circuit 

Zinc/arsenic concentrator circuit 

Tin chloride circuit 

Indium sponge / zinc metal circuit 

Wastewater treatment system 

Process utility systems 

kW 

kW 

kW 

kW 

kW 

kW 

kW 

1466 / 962 

297 / 219 

893 / 685 

110 / 80 

2787/ 2312 

266 / 156 

751 / 250 

Process Steam Consumption 

Tin chloride circuit 

Indium sponge & zinc metal circuit 

kg/h 

kg/h 

4,085 

3,191 

Steam consumption based on 150 psig 

saturated steam. 

Table 19-15: Tailings and Wastewater Treatment Systems Design Criteria 


Total tailings dry solids mass flow rate t/h 

32.6 

Tailings slurry percent solids 

wt% 

20.0 

Total wastewater volumetric flow rate m³/h 200 





SECTION 20.0 SITE INFRASTRUCTURE 

20.1 Overview 

As discussed in Section 5.0, the Adex Mining Inc. property has a considerable amount of existing 

infrastructure at site which will be reused where possible. It is planned to have a run of mine ore 

stockpile either inside or adjacent to the existing A-frame ore storage building. Portable crushing 

equipment will be located outside the A-frame ore storage building and a new conveyor will 

deliver fine crushed ore to the existing pebble bin within the previously used crusher building. 

The concentrator equipment will be located within the existing concentrator building as shown in 

drawings 0506-00-01, 0506-00-02, and 0506-00-03 in Appendix C. 

20.2 Equipment Layout 

The existing grinding area will be re-used for the rod mill / ball mill grinding units. The existing 

foundations from the old mills will need to be removed and replaced. The new rod and ball mill 

will be installed to leave space for possible future grinding expansion (e.g. for processing Fire 

Tower Zone ore). A new overhead crane and rails will be required. 

The remainder of the equipment required to produce tin concentrate and zinc/indium concentrate 

will be located within the area used previously for flotation between columns 4 and 8. The two 

stages of existing desliming cyclopacs will be refurbished and reused. As well, five existing 

flotation conditioning tanks will be reused with new agitators required. Flotation cells will be 

located on existing foundations where possible. One existing thickener and water reclaim tank will 

be reused but a new rake/drive mechanism for the thickener will be required. A new high intensity 

magnetic separator will be installed, but it is intended to reuse the existing HIMS settling cone. 

New overhead cranes and rails for the flotation area will be required. 

The area that was used previously for tailings and wastewater treatment will be reused for that 

purpose. The three existing tailings treatment tanks will be reused with new agitators required. 

The existing thickener located outside will be reused for tailings thickening with a new rake/drive 

mechanism. 

There is an existing utilities area that will be reused for installation of air compressors and 

vacuum pumps. The existing low pressure air blowers will be refurbished. A multi-level reagent 

area that was used previously has been reserved for storage, preparation, and metering of 

reagents for the concentrator. 

A boiler is not required for production of concentrate. In the case of either indium sponge/zinc 

metal or tin chloride production, process steam is required and two boilers will be installed in the 

existing boiler room with new boiler water treatment equipment. 

The study included installation of new process and utility piping. Detailed inspection of pipe 

condition and location may allow some of the utility piping such as compressed air, low pressure 

air, and service water to be reused along with the existing pipe racks. 

A conceptual layout was prepared to define the building footprint required based on a multi-level 

layout for the indium/zinc hydromet and the tin chloride pyromet processes. In the case of 





indium/zinc hydromet, the existing hydromet area will be reused but any remaining equipment will 

be removed. A new addition to the building measuring 24 x 36 m will be required to accommodate 

all of the indium/zinc hydromet process equipment. For the tin chloride pyromet option, a new 

building addition of 24 x 36 m will be required. Reagent areas for the indium/zinc hydromet and 

tin chloride pyromet will be located in each new building addition. 

20.3 Water Supply 

As discussed in Section 5.0, there is an existing domestic water well which will be reused for 

domestic water supply with refurbishments to the distribution system. Process water will be 

obtained by recycling water from the tailings pond. A new water reclaim pumping station and 

piping will be required to deliver recycled process water back to the concentrator. 

20.4 Tailings Disposal 

The existing tailings pond will be used for tailings disposal without any expansions. A new 

hydroxide sludge storage cell will need to be constructed for wastewater treatment sludge 

disposal at the perimeter of the tailings pond. 

20.5 Power Supply and Distribution 

The site is currently served by an onsite high voltage substation connected to the provincial 

electric utility, NB Power. Existing switchgear in the substation will be used to connect to several 

distribution transformers providing the plant and mine electrical requirements. In Case A, three 

existing transformers will be used (one relocated) and one new one will be connected. For Cases 

B and C, three existing transformers will be reused (one relocated) and two new ones will be 

connected. New power distribution and motor control centers will distribute power throughout the 

plant and mine at 4160V and 600Vac. Plant motors and other loads are to be controlled from new 

area operator stations by automatic and manual controls. Mine motor and other loads are to be 

manually controlled. All new cabling and cable trays will be used. 

20.6 Process Control System 

The plant is to be controlled automatically wherever possible. Manual control will also be provided 

from area operator stations. Automatic controls will consist of programmable logic controllers that 

gather information throughout the plant from motor control centers, area operator stations and 

field instrumentation and will be networked to share that information. Operators will be able to 

monitor the process, the status of motors, alarms, process flows, tank levels, and other events 

through the use of color touch screens. The process control system and cabling will be all new 

equipment. 

20.7 Workshops and Warehouses 

There is an existing maintenance shop in the concentrator that will be reused. The existing 

warehouse building will be used for final product storage and general shipping/receiving. 

20.8 Office Facilities 

The existing warehouse building also contains offices which are currently in use for the care and 

maintenance operation. The office facility in the warehouse building will be reused as-is with no 

refurbishment. The existing administration building on site requires refurbishment; this is not 





included in the cost estimate and the administration building will not be used for the proposed 

North Zone operation. 

20.9 Communications 

Existing telephone and internet services are in place in the warehouse/office building that will be 

reused. Therefore, new communications infrastructure has not been included. 





SECTION 21.0 ENVIRONMENTAL CONSIDERATIONS 


The Mount Pleasant property is a formerly producing tungsten-molybdenum mine, which also 

hosts tin-indium-zinc mineralization in a separate ore zone on the property, referred to as the 

North Zone. The current study relates to production from the North Zone, utilizing the existing 

mine and mill site infrastructure to optimize on capital costs and maintain the battery limits of all 

project activities within the current perimeter of the Brownfield site. 

The property has been under care and maintenance since 1985, during which time mine water 

from the Fire Tower Zone has been treated by neutralization with lime followed by a settling pond 

to precipitate and store metal hydroxide sludge prior to the treated mine water being discharged 

into the existing tailings pond. Effluent from the mine continues to be managed such that there is 

a single point of effluent discharge from the tailings pond to Hatch Brook through the tailings pond 

Decant Structure. 

The mine water treatment plant is currently operated under New Brunswick Approval to Operate 

I-6154, which requires that the Mount Pleasant minesite be operated in such in a way as to meet 

the following water quality objectives for discharge of effluent from the tailings impoundment area 

("TIA") discharge structure: 

 

 

 

 

 

 

 

the pH is between 6.5 and 9.0 at all times; 

the total suspended solids are less than 10 mg/L at all times; 

the aluminum concentration is less than 0.4 mg/L at all times; 

the arsenic concentration is less than 0.3 mg/L at all times; 

the fluoride concentration is less than 3.0 mg/L at all times; 

the zinc concentration is less than 0.4 mg/L at all times; and, 

the effluent is non-acutely lethal to aquatic life at all times. 

Under the current approval to operate (dated October 31, 2007), Adex has monitored and 

reported the tailings pond discharge water quality on a monthly basis to the New Brunswick 

Department of Environment ("NBDOE"). Water quality parameters analyzed in monthly grab 

samples have consistently been in compliance with the prescribed limits. 

The Decant Structure, Tailings Dam and Emergency Spillway structures were repaired and 

upgraded in 2008 to meet Canadian Dam Safety Guidelines (Canadian Dam Association, 2007). 

The new decant structure allows the water level and rate of discharge from the tailings pond to be 

controlled via a system of wooden stop logs. New piezometers were also installed in 2008 to 

monitor dam stability. 

Detailed engineering design of a new sludge pond to accommodate lime neutralization (metal 

hydroxide) sludge generated from wastewater treatment for future mine operations and/or 

continued mine water treatment was completed in 2008 by Jacques Whitford Limited. 

Construction of the new sludge pond is currently on hold pending the outcome of this preliminary 

assessment and more detailed feasibility studies. 





21.2 Related Environmental Studies 

21.2.1 Wastewater Treatability Studies 

As an integral part of development of the Mount Pleasant property, discussions regarding 

environmental standards for operation of the mine were initiated with members of New 

Brunswick's Standing Committee on Mining and the Environment, which includes officials from 

the NB Department of Natural Resources ("NBDNR"), NBDOE and Environment Canada. 

Through these meetings, and based on the fact that a specific effluent limit for fluoride has been 

imposed for the operation of the existing mine water treatment system / tailings pond discharge, it 

is apparent that fluoride removal from both the mine water and concentrator plant will be required 

for wastewater treatment related to the proposed re-opening of the mine. 

Currently, fluoride levels in the raw mine water range between 5.0 and 8.0 mg/L and the existing 

lime neutralization treatment process does not remove fluoride. Furthermore, fluoride is typically 

added to the flotation circuit in the form of sodium silicofluoride as a gangue suppressant and this 

was the case during the previous operation producing tungsten and molybdenum concentrates. 

In June of 2008, an independent study by ADI Limited was commissioned to identify a 

wastewater treatment process that would be capable of treating the raw mine water for removal of 

both heavy metals and fluoride to levels that would be safely below the limits set out in the current 

approval to operate at the point of discharge from the mine water treatment plant. The ADI study 

(ADI Limited, 2008) determined that effluent metals concentration limits could be met by pH 

adjustment with lime to pH 8.5 and that the effluent zinc and arsenic concentrations could be 

further reduced by addition of soluble ferric iron to the metals precipitation stage in a 

commercially proven wastewater treatment process referred to as co-precipitation. 

The ADI report identified two technically viable means of reducing effluent fluoride concentrations 

to below 3.0 mg/L - alum coagulation (Nalgonda technique) and adsorption with activated 

alumina. Alum coagulation is commonly used for defluoridation of drinking water in developing 

countries and is relatively simple and easy to implement; however, the high operating cost for 

purchase of aluminum sulphate reagent does not support its use for industrial wastewater 

treatment. Activated alumina systems are commercially proven for large-scale defluoridation of 

drinking water; however, limited testing has been done on industrial or mining effluents. 

In the fall of 2009, Adex commissioned a second study by Thibault & Associates Inc. to i) assess 

the treatability of simulated high concentration wastewater that could potentially be generated 

from hydrometallurgical processing of the North Zone ore, ii) assess the technical feasibility of 

removing fluoride from the effluent using regenerable activated alumina; and, iii) assess 

leachability of fluoride from previously submerged and un-submerged tailings and from a sample 

of ore from the North Zone. The results of the study have not been finalized and will be used to 

confirm the wastewater flowsheet and design parameters as defined herein, relative to the 

proposed metallurgical process. 

21.2.2 Baseline Environmental Effects Monitoring 

In September of 2008, a Baseline Aquatic Survey for Environmental Effects Monitoring ("EEM") 

was conducted in Hatch Brook by Jacques Whitford Stantec (Jacques Whitford Stantec, 2009) in 

order to document present environmental and aquatic conditions in the area of the Mount 





Pleasant property. The study was conducted in a manner consistent with the federal EEM 

program administered by Environment Canada such that the results could be used to support 

future EEM studies, as would be required under MMER in the event that the mine re-opens. 

The baseline aquatic survey included sampling and analysis of water and sediment chemistry, 

benthic community analysis, assessment of fish habitat and analysis of fish tissues for metals at 

three sampling stations along Hatch brook including a i) reference station - located upstream from 

the former Mount Pleasant mine site, ii) exposure station - located immediately downstream of 

the discharge from the tailings pond, and iii) far field exposure station - located approximately 1.6 

km downstream from the tailings pond discharge. 

Overall, water quality in Hatch Brook was good and most general water quality parameters, as 

well as trace metals and mercury, were similar across all stations. 

Benthic invertebrate assemblage structure showed no evidence of adverse effects and was noted 

as being "rich, diverse and similar to assemblages elsewhere in the brook" at all three stations. 

The fish and fish habitat assessment showed that there is abundant suitable fish habitat in the 

study locations and nine species of fish were collected for analysis, with the catch per unit effort 

(CPUE) being highest at the exposure station. There were no exceedances of the Health Canada 

guideline for mercury in fish for human consumption. 

21.3 Environmental Impact and Management 

21.3.1 Proposed Plan for Water Management and Operation of Tailings Impoundment Area 

The development plan for the proposed re-opening of the Mount Pleasant mine is based on the 

management of process water, wastewater and tailings, which will all be controlled through the 

operation of the tailings impoundment area. As stated previously, all treated effluent from the 

mine operations will be discharged to Hatch Brook at a single point from the tailings pond through 

the existing decant structure. 

All process water required for the concentrator plant, indium-zinc hydromet circuit and tin chloride 

production facility will be reclaimed from the tailings pond to minimize the need for fresh water 

from ground water sources. Process wastewater from the various unit operations, decant water 

from tailings thickening and mine water will be collected and treated in a central, integrated 

wastewater treatment (WWT) facility. The new wastewater treatment process will be designed 

such that treated effluent at the discharge from WWT will meet the water quality objectives set out 

in the current approval to operate I-6154 and applicable MMER standards. In this manner, the 

tailings pond will act as polishing pond and a source of clean water for reclaim to the process. 

The proposed tailings treatment process is based on thickening of the tailings prior to discharge 

into the tailings pond. Flotation tailings and other environmentally stable solid residues from the 

process will be collected, treated by neutralization with lime to pH 11-12 in the existing tailings 

treatment tanks and thickened prior to being pumped to the tailings impoundment area. 

The overall tailings deposition and water management plan will be designed to assure that the 

discharge of effluent from the decant structure will comply with all applicable Federal and 

Provincial regulations for discharge to the environment. 





21.3.2 Wastewater Treatment Sludge Management 

Solids generated in the wastewater treatment process are mainly comprised of metal hydroxides 

from wastewater neutralization and heavy metals precipitation and calcium fluoride sludge 

generated from periodic regeneration of activated alumina. The wastewater treatment sludge will 

be dewatered by a filter press prior to being disposed in the planned sludge disposal cell, to be 

constructed directly adjacent to and within the current perimeter of the existing tailings 

impoundment area. 

21.3.3 Waste Rock Disposal 

Waste rock from the previous Fire Tower Zone operation has been deposited in designated areas 

and has been used at several locations on the site for building materials for roadways and dams. 

It is proposed that waste rock from the North Zone operation will continue to be placed in 

designated on-site storage piles and that it may be used in the construction of site infrastructure 

or in the site reclamation process upon closure. 

21.3.4 Domestic Wastewater Treatment 

Domestic (sanitary) wastewater will be collected and treated using the existing domestic 

wastewater treatment system. 

21.3.5 Construction and Site Infrastructure 

The majority of the existing site infrastructure from the previous operation at the Mount Pleasant 

property remains in excellent condition and will be re-used. The existing concentrator building, 

ore storage bin, core shed, and tailings impoundment area will be refurbished as required and/or 

modified to suit the new operation; thereby greatly reducing the amount of site construction and 

environmental disturbance that would normally be associated with a Greenfield site. 

For any new construction projects and upgrades to site infrastructure, Adex will employ strategies 

and implement control measures to minimize any environmental disturbances. All new 

construction and refurbishment of existing site infrastructure related to project activities will be 

maintained within the current site perimeter, and further disturbance to any surrounding areas 

that are not currently impacted by the previous operation will remain undisturbed. 

Adex will also incorporate standard environmental protection clauses into contract documents 

and tenders for all construction activities at the site such that Contractors will be contractually 

obligated to comply with the environmental protection standards set by the Owner, in addition to 

any general guidelines set by Federal and Provincial regulatory agencies. 

21.4 Permits 

Requirements for obtaining provincial and federal permits related to the proposed re-opening of 

the Mount Pleasant mine and a review of applicable government regulations was completed by 

Jacques Whitford Stantec as part of the Fire Tower Zone Scoping Study completed by Aker 

Solutions for Adex Mining Inc. in 2008. A summary of that information is contained in the following 

sections. 





21.4.1 Provincial Regulations and Permits 

The following is a list of legislation, regulations and required permits that are administered by the 

Province of New Brunswick and are applicable to the current operation of the mine water 

treatment plant (care and maintenance related site activity), potential construction and preproduction 

activities associated with the re-opening of the mine. 

Clean Environment Act (Chapter C-6: 

The Clean Environment Act is administered by the New Brunswick Department of Environment 

("NBDOE") and provides the general legislative framework for protection of the environment in 

New Brunswick. Handling, storage and disposal of hazardous wastes is managed as part of a 

stewardship program under this Act. 

Water Quality Regulation 82-126: 

This instrument is administered by NBDOE under the Clean Water Act (Chapter C-6.1) for 

regulation of discharge of liquid effluents to bodies of water in the Province and requires that any 

operator of a source of contaminants or release of contaminants that may cause water pollution 

must obtain a Certificate of Approval to Operate. The Certificate of Approval to Operate defines 

the terms and conditions that the operator of the source must comply with in order to remain in 

compliance with the Regulation and to prevent pollution of the waters of the Province. The terms 

and conditions are specific to the operation in question and are determined by NBDOE on a caseby-case 

basis. An effluent sampling and analysis program is typically required and limits are 

imposed on concentrations of specific contaminants for that site. A copy of the current Approval 

to Operate I-6154 is attached in Appendix D. Provincial requirements for conducting 

Environmental Effects Monitoring ("EEM") studies are also mandated by the Certificate Approval 

to Operate and a Baseline Aquatic Survey for EEM was conducted in the fall of 2008. to fulfill this 

condition. 

Air Quality Approvals Regulation 97-133: 

This regulation was implemented under the Clean Air Act and is analogous to Water Quality 

Regulation 82-126 in that the NBDOE requires that any operator of a source of contaminants or 

release of contaminants to the air that may cause air pollution must obtain a Certificate of 

Approval to Operate. The Mount Pleasant property currently does not require any Approvals 

under the Clean Air Act, as there are no sources of contaminants being released to the air on the 

site. If, during the project, one or more sources of emissions to the air are installed (e.g. boilers, 

kilns, vent scrubbers, etc.), an Approval will be required. 

Environmental Impact Assessment (EIA) Regulation 87-83: 

The EIA Regulation 87-83 is administered by NBDOE under the Clean Environment Act and is 

intended to assure that all "undertakings" in the Province are identified, reviewed and that any 

potential adverse environmental effects associated with the proposals are mitigated in advance of 

their implementation. The term, "undertakings" includes proposed construction, operation, 

modification, extension, abandonment, demolition or rehabilitation of projects or activities as 

described in Schedule A of the Regulation. The proposed activities for resuming production at 

Mount Pleasant from the North Zone will have to be registered under the EIA Regulation, which 

requires that a registration document (report) be prepared and submitted to NBDOE for a 

Determination Review. The registration document must i) describe the project in a sufficient level 

of detail to allow for a full technical review and, ii) assess all potential environmental impacts and 





issues and describe mitigatory measures that will be taken to minimize impacts to the 

environment. 

Mining Act (Chapter M-14.1): 

The Mining Act is administered by the New Brunswick Department of Natural Resources 

(NBDNR) and provides the legislative framework for regulation of all activities related to 

exploitation of mineral resources in New Brunswick. This Act addresses all issues related to 

prospecting, exploration, drilling, claim staking, ownership and allocation of minerals, land use, 

royalties, documentation of mining operations, damage and securities. The requirement for a 

person or company to produce a Feasibility Study, apply for a Mining Lease, produce a 

Reclamation Plan and provide NBDNR with a Reclamation Bond prior to producing minerals from 

a mineral claim is regulated through the New Brunswick Mining Act. 

Petroleum Product Storage and Handling Regulation 87-97: 

The regulation requires that the storage of petroleum products in excess of 2,000 litres on a site 

requires a licence to assure that petroleum products are stored in a safe manner in a registered 

storage vessel. The Mount Pleasant site does not currently hold any Petroleum Storage Site 

licences; however, it will require licences and a certificate of insurance for proposed propane 

storage, diesel fuel storage and Bunker C fuel oil storage (for boilers, if required). 

Crown Lands and Forests Act (C-38.1): 

Administered by NBDNR, this act provides legislation for activities related to development, 

utilization, protection and management of resources located on Crown Lands. The Crown Lands 

and Forests Act does not apply to the Mount Pleasant property, which is wholly owned by Adex 

Mining Inc. 

Other Provincial Acts and Regulations: 

Other Provincial acts and regulations that may apply to the care and maintenance, construction, 

pre-production and prospective operation of the Mount Pleasant property include: 

 

 

 

 

 

 

 

 

 

 

 

Water Classification Regulation (NB Regulation 2002-13 under the Clean Water Act) 

Watershed Protected Area Designation Order (NB Regulation 2001-83 under Clean Water 

Act) 

Wellfield Protected Area Designation Order (NB Regulation 2000-47 under Clean Water Act) 

Potable Water Regulation (NB Regulation 93-203 under Clean Water Act) 

Fees for Industrial Approvals Regulation (NB Regulation 93-201 under Clean Water Act) 

Protected Area Exemption Regulation (NB Regulation 90-120 under Clean Water Act) 

Watercourse and Wetland Alteration Regulation (NB Regulation 90-80 under Clean Water 

Act) 

Water Well Regulation (NB Regulation 90-79 under Clean Water Act) 

Used Oil Regulation (NB Regulation 2002-19 under Clean Environment Act) 

Public Participation Regulation (NB Regulation 2001-98 under Clean Air Act) 

Ozone Depleting Substances Regulation (NB Regulation 97-132 under Clean Air Act) 

All of the above referenced Provincial Acts and Regulation are available to be viewed on the 

government of New Brunswick website at http://www.gnb.ca/0062/acts/acts-e.asp. 





21.4.2 Federal Regulations and Permits 

The following is a summary of legislation, regulations and required permits that are administered 

at the Federal level in Canada and which may be applicable to the care and maintenance of the 

site and to any activities related the potential future operation of the mine. 

Federal Fisheries Act: 

The Fisheries Act is jointly administered by both Environment Canada and the Department of 

Fisheries and Oceans Canada ("DFO") and provides legislation to protect aquatic environments, 

fish and fish habitat from the harmful effects of pollutants, termed "deleterious substances" in the 

Act. Deleterious substances can be interpreted to include a broad scope of materials, but is 

typically considered to be any substance (e.g. industrial effluent, tailings, refuse, etc.) that is or 

has the potential to be acutely lethal to fish. The Act also contains provisions for preventing the 

harmful alteration, disruption or destruction of fish habitat and enables DFO to impede 

"undertakings" or work that proposes to do this. Where the harmful alteration, disruption or 

destruction of fish habitat cannot is proposed in the execution of an undertaking, DFO requires 

that the Owner complete an Environmental Assessment under the Canadian Environmental 

Assessment Act ("CEAA"). The outcome of such an assessment may require the Owner to 

implement certain measures and/or adhere to certain conditions to mitigate these effects, or the 

undertaking may be completely blocked from proceeding in the manner proposed. 

The existing Tailings Impoundment Area ("TIA") or Tailings Pond is a fully permitted, man-made 

and self-contained structure that was constructed by Billiton Exploration Canada Ltd in the early 

1980's to support the mineral production operation. In 1981, Billiton obtained Approval to 

Construct (No. 22-15-8) a "waste stabilization pond" (a.k.a the Tailings Pond) as well as a Permit 

for Watercourse Alteration from the New Brunswick Department of Environment. In this regard, all 

issues of compensation, water diversions and other regulatory requirements related to the 

deposition of tailings in the TIA were settled by the previous Owner in the early 1980's. Since 

1985, the site has been placed on care and maintenance and the TIA, which currently receives 

mine water effluent and is fully permitted under NBDOE Approval to Operate I-6154, has not 

changed in purpose or character since production was suspended. 

Canadian Environmental Assessment Act: 

The requirement for completion of an Environmental Assessment under the federal Canadian 

Environmental Assessment Act ("CEAA") depends on the specific nature and scope of an 

undertaking as well as other factors such as i) sources of funding for the project, ii) permitting 

requirements, and iii) land requirements. In order for CEAA to apply the proposed undertaking 

must have a certain "trigger" under Section 5(1) of the Act. Triggers which could be applicable to 

the re-opening of the Mount Pleasant mine include: 

 

 

 

 

if a federal government department of agency is a proponent of the undertaking; 

if funding for the project or other forms of financial assistance are to be provided by a federal 

government department or agency; 

if the undertaking is to be constructed on federal lands or if federal lands must be transferred 

to allow the work to proceed; and, 

if a permit, approval or authorization is required to be issued by a federal government 

department or agency to allow the project to proceed. 





Canadian Environmental Protection Act: 

The Canadian Environmental Protection Act ("CEPA") is administered by Environment Canada 

and contains the Metal Mining Effluent Regulations ("MMER"), which is a federal guideline for 

maximum allowable contaminant concentrations for mining and ore processing facilities. For 

discharge of effluent to the environment, the MMER requires that: 

concentrations of deleterious substances in the effluent do not exceed the limits in Table 

21-1; 

the pH is between 6.0 and 9.5; 

the effluent is not acutely lethal to fish; 

DELETERIOUS 

SUBSTANCE 

Table 21-1: MMER Authorized Limits of Deleterious Substances 

MAXIMUM AUTHORIZED 

MONTHLY MEAN 

CONCENTRATION 


CONCENTRATION IN A 

COMPOSITE SAMPLE 


CONCENTRATION IN A 

GRAB SAMPLE 

Arsenic 0.50 mg/L 0.75 mg/L 1.00 mg/L 

Copper 0.30 mg/L 0.45 mg/L 0.60 mg/L 

Cyanide 1.00 mg/L 1.50 mg/L 2.00 mg/L 

Lead 0.20 mg/L 0.30 mg/L 0.40 mg/L 

Nickel 0.50 mg/L 0.75 mg/L 1.00 mg/L 

Zinc 0.50 mg/L 0.75 mg/L 1.00 mg/L 

Total suspended solids 15.00 mg/L 22.50 mg/L 30.00 mg/L 

Radium 226 0.37 Bq/L 0.74 Bq/L 1.11 Bq/L 

The MMER also defines specific conditions for depositing a deleterious substance in a Tailings 

Impoundment Area, including the requirement for the Owner to conduct Environmental Effects 

Monitoring ("EEM") studies. Refer to the Environment Canada website at 

http://www.ec.gc.ca/nopp/docs/regs/mmer/mmer.pdf to view the complete MMER. The Canadian 

Environmental Protection Agency also administers the National Pollutant Release Inventory 

(NPRI) and manages the Canadian Environmental Quality Guidelines, including the Canadian 

Water Quality Guidelines for the Protection of Aquatic Life, which can be applied to the release of 

industrial effluent to aquatic environments under certain circumstances. 

21.5 Reclamation Plan 

A scoping level reclamation plan approach was developed by Jacques Whitford as part of the Fire 

Tower Zone Scoping Study (Aker Solutions, 2008) that would meet the requirements of 

Regulation 86-98, Sections 30(2) and 30(3) under the provincial Mining Act. For the purpose of 

the North Zone Preliminary Assessment, it is assumed that a similar approach would be used for 

reclamation of the site following production from the North Zone. The following points summarize 

the goals and major processes associated with the reclamation plan developed by Jacques 

Whitford: 

 

 

removal and/or capping and revegetation of the majority of the physical features and 

structure associated with the site; 

establishment of vegetation that will facilitate the natural recovery of the area for use by local 

wildlife; 





 

 

 

 

 

 

 

 

 

 

control and mitigation of site drainage issues from surface waste materials and underground 

openings; 

control and mitigation of discharge water from the Tailings Impoundment Area; 

permanent closure of mine portals, access ramps, raises by back-filling and installation of 

structurally engineered plugs; 

removal of any environmentally hazardous materials from underground mine workings prior 

to closure; 

flattening of the downstream portions of both the Diversion Dam and the Tailings Dam to 

improve long-term stability of the unmonitored dams following closure; 

salvage of any equipment and building materials (e.g. processing equipment, mobile 

equipment, windows, doors, cable, transformers, etc.); 

demolition of all light frame buildings; 

demolition, removal and disposal of concrete structures and foundations; 

removal of any on-site power lines and electrical equipment; and, 

implementation of a post-closure monitoring and treatment program. 

Jacques Whitford estimated that, based on the reclamation plan approach as outlined above for 

the FTZ Scoping Study, financial securities in the amount of CDN$2.87 million would be required 

for reclamation (Jacques Whitford, 2008b). 





SECTION 22.0 MARKETS 

22.1 Tin Concentrate 

Pure tin is a silvery white soft, ductile and malleable metal that is most often recovered from 

cassiterite (SnO 2 ) ores. Tin also occurs naturally in the form of complex sulphide minerals such 

as stannite (Cu 2 FeSnS 4 ) and cylindrite (Pb 3 Sn 4 FeSb 2 S 14 ); however, the complex nature of these 

minerals presents significant technical challenges for upgrading of the tin due to low selectivity for 

tin over copper and iron in conventional gravity or flotation circuits. The majority of the tin ore 

within the Mount Pleasant property's North Zone is present as cassiterite. 

Thibault & Associates Inc. has identified a conceptual flowsheet for the primary upgrading of 

cassiterite ore to produce a tin concentrate product with grade based on a wide range of typical 

end user quality guidelines. Revenue potential calculated in Section 27.0 is based on production 

of tin concentrate to meet the typical product quality specifications presented in Table 22-1. 

Table 22-1: Tin Concentrate Product Grade Estimate Used for Preliminary Assessment 

SPECIFICATION PARAMETER 


VALUE 

MIN 

MAX 

Tin % Sn 46.0 -- 

Moisture % H 2 O -- 5.000 

Silica % SiO 2 -- 15.000 

Iron % Fe -- 1.270 

Sulfur % S -- 1.230 

Copper % Cu -- 0.370 

Lead % Pb -- 0.010 

Zinc % Zn -- 0.620 

Arsenic % As -- 1.260 

Antimony % Sb -- 0.010 

Tungsten % WO 3 -- 0.310 

Molybdenum % Mo -- 0.000 

Bismuth % Bi -- 0.080 

Thorium 02 + Uranium 308 % Th 02 + U 308 -- 0.300 

Fluorine % F -- 0.500 

The major uses of tin are in the production of solders, tin plate, tin chemicals, bronze and brass 

as illustrated in Figure 22-1. 





Bronze and Brass, 5.5% 

(19,900 tonne/year) 

Other, 9.2% 


Float Glass, 2.1% 


Chemicals, 13.9% 


Solders, 52.9% 


Tinplate, 16.4% 


Reference: International Tin Research Institute (ITRI) w ebsite at 

w w w .itri.co.uk 

Figure 22-1: World Refined Tin Consumption by Application 

The world mine production of tin by country is presented in Figure 22-2. Planned annual 

production from the proposed Mount Pleasant operation at 850 tonne of ore per day (basis for 

nameplate capacity) equates to 1,486 tonne/year of contained tin, or 0.49% of the total annual 

world mine production in 2007. 





Other, 5.4% 


Russia, 1.3% 


Bolivia, 5.9% 


Brazil, 4.0% 


Peru, 12.5% 


Indonesia, 28.0% 


China, 42.9% 


Reference: USGS Tin Commodity Summary, 2008 

Figure 22-2: World Mine Production of Tin by Country 

Prospective buyers of tin concentrates can be grouped into three major categories: 

 

 

 

commodity traders; 

smelters, and; 

manufacturers of tin end use products (solder, tinplate and tin chemicals industry). 

The main differences between the three prospective buyer categories are i) allocation of 

marketing and sales responsibilities and ii) price structure. Smelters typically offer two options for 

processing concentrates: 

 

 

toll processing - where a set percentage (net smelter return) of the refined tin is available for 

direct sale to an end user by the owner, in which case the owner is responsible for marketing 

and shipping of the refined tin to the purchaser. 

direct sale of contained tin in concentrates to the smelter, in which case the smelter is 

responsible for marketing and shipping of the final product to an end user. 

For the purpose of the subject preliminary assessment, only commodity traders and smelters 

have been identified. The following is a non-exhaustive list of well-established prospective buyers 

for tin concentrate. There are currently no tin smelting facilities in North America. 





Smelters: 

Malaysia Smelting Corporation (Malaysia) 

Yunnan Tin (China) 

PT Timah (Indonesia) 

Thaisarco (Thailand) 

Liuzhou China Tin (China) 

Minsur (Peru) 

Commodity Traders: 

Amalgamated Metal Corporation (AMC) Trading Group (Worldwide) 

China Minmetals (China) 

RJH Trading Ltd. (England) 

Glencore International (Worldwide) 

Trafigura Beheer (Worldwide) 

Metmar Limited (South Africa) 

Marco International (United States) 

The quality specifications and value of the concentrate as defined for the preliminary assessment 

is not based on end user contractual agreement. 

A formal contract or off-take agreement with an end user will typically include a smelter schedule 

that defines the terms of the purchase agreement and sets the basis for calculation of treatment 

charges, penalty charges, unit deductions and/or price discounts relative to the concentrate 

quality. 

Various smelters were contacted in order to formulate the preliminary smelter schedule terms that 

were used as the calculation basis for estimation of revenue potential from tin concentrate for the 

Mount Pleasant North Zone preliminary assessment. These terms are described in detail in 

Section 27.0. 

The three-year average Kuala Lumpur Tin Market ("KLTM") tin price spanning from September, 

2006, to August, 2009, has been calculated as CDN$16.25/kg. Dynamic charting of the KLTM 

monthly average tin price for this time period is given by Figure 22-3. 





$30.00 

KLTM Price Trend for Tin Metal (CDN$/kg) 

3-Year Trend (September 2006 - August 2009) 

$25.00 

3-Year Average Plus 35% = CDN$21.94/kg 

$20.00 

Tin Price (CDN$/kg) 

$15.00 

$10.00 

3-Year Average KLTM Price of CDN$16.25/kg 

3-Year Average Minus 35% = CDN$10.56/kg 

$5.00 

$0.00 

Sep-06 

Nov-06 

Jan-07 

Mar-07 

May-07 

Jul-07 

Sep-07 

Nov-07 

Jan-08 

Mar-08 

May-08 

Jul-08 

Sep-08 

Nov-08 

Jan-09 

Mar-09 

May-09 

Jul-09 

Sep-09 

Figure 22-3: Dynamic Three-Year Price Chart for Tin 

For the purpose of the Mount Pleasant North Zone preliminary assessment, a base case life-ofmine 

tin price of CDN$16.25/kg Sn was adopted based on the three-year trailing average from 

September, 2006, to August 2009, of the KLTM price. A life-of-mine forecast pricing structure has 

not been determined and Thibault & Associates Inc. offers no opinion on expected price trends or 

floor values going forward. Plus or minus 35% of the base case metal price was selected as an 

adequate range for assessment of the cash flow sensitivity with respect to fluctuating metal 

prices. This range is equivalent to a low price of CDN$10.56/kg Sn and a high price of 

CDN$21.94/kg Sn. 

22.2 Tin Chloride 

Tin chloride, or tin chloride anhydrous (chemical formula SnCl 2 ) is a white crystalline, inorganic tin 

chemical that is typically produced from tin scrap, but in this case, will be produced from lowgrade 

tin concentrates as explained in Section 19.0. Tin chloride is a strong reducing agent that 

finds applications in pharmaceutical manufacturing; catalysts; thin film plating of electrical 

conductors; glass and paper manufacture; production of dyes, polymers, phosphors and textiles; 

tin galvanizing; silvering mirrors; as a stabilizer in perfumes and soaps; and in soldering fluxes. 

Typical product specifications for tin chloride anhydrous were obtained from several wellestablished 

tin chemical producers and are given in Table 22-2. 





Table 22-2: Typical Product Specifications for Tin Chloride Anhydrous 



VALUE 

MIN 

MAX 

Tin wt% Sn 61.35 62.6 

Tin Chloride wt% SnCl 2 98.00 100.00 

Lead wt% Pb 0.003 (typ.) 0.01 

Copper wt% Cu 0.0005 (typ.) 0.001 

Antimony wt% Sb 0.003 (typ.) 0.005 

Iron wt% Fe 0.003 (typ.) 0.005 

Specific production and consumption data for tin chloride anhydrous is not published; however, 

the global consumption of primary tin for production of tin chemicals in general is reported to be in 

the range of 40 to 44,000 tonnes per year (RTM Ltd., 2006). In the United States, consumption of 

primary tin for production of tin chemicals was reported as 9,290 tonnes in 2006 and 6,070 

tonnes in 2007 (USGS Minerals Yearbook - Tin, 2007). US consumption of secondary tin (i.e. 

scrap, recycled tin) for production of tin chemicals is "withheld to avoid disclosing company 

proprietary data" (USGS Minerals Yearbook - Tin, 2007). 

Planned annual production of tin chloride from the proposed Mount Pleasant operation at 850 

tonne of ore per day nameplate capacity equates to 1,327 tonne/year of contained tin, or 3.0% of 

the annual global consumption of primary tin for production of tin chemicals reported by RTM Ltd. 

Potential buyers of tin chloride are generally end users that will utilize the product as a reducing 

agent in manufacturing processes, as a catalyst or in thin film plating processes; but could also 

be a chemical distribution company or a chemical trading company. Potential buyers of tin 

chloride have been identified as follows: 

End Users: 

Qingdao Best Glass Company Ltd. (China) 

AGC Flat Glass (Europe) 

Chemical Distribution Companies: 

Brenntag (Canada) 

Chemical Trading Companies: 

Tianjin Kaiyuan Chemical Trading Company Ltd. (China) 

Wuhan Star Trading Company Ltd. (China) 

Todini & Company SPA (Italy) 

Historical pricing of tin chloride is not available; however, tin chemical pricing is assumed to follow 

a similar trend as tin metal or tin scrap prices. Spot pricing for a 20-tonne bulk shipment of tin 

chloride anhydrous was obtained from two well-established tin chemical manufacturers during the 

month of August, 2009. Spot pricing for tin chloride was quoted as CDN$15.40/kg (US$6.35/lb) 

and CDN$21.80/kg (US$8.99/lb) 99% SnCl 2 from the two suppliers, respectively. It was noted 

that the lower of the two prices equates to CDN$24.85 per kilogram of contained tin or just over 

150% of the spot Kuala Lumpur Tin Market tin metal price for August, 2009. 

For the purpose of calculating product revenue for the tin chloride anhydrous (SnCl 2 ) product for 

the Mount Pleasant North Zone preliminary assessment, a base case life-of-mine tin chloride 





price of CDN$15.23/kg 99% SnCl 2 or CDN$24.57 per kilogram of contained tin was adopted, 

which corresponds to approximately 150% of the three-year average tin metal pricing assumed 

as the base case for the production of tin concentrate. High and low-end product pricing for 

analysis of cash flow sensitivity was again based on taking plus / minus 35% of the base case tin 

chloride price. The estimated range for sensitivity analysis is equivalent to a low price of 

CDN$9.90/kg 99% SnCl 2 and a high price of CDN$20.56/kg 99% SnCl 2 . 

Since, in this case, the product will be shipped directly to an end user, it has been assumed that 

this pricing represents the gross revenue received by the mine for tin chloride and no price 

discounts or penalty charges have been included in the product revenue calculations described in 

Section 27.0. 

22.3 Indium Bearing Zinc Concentrate 

Pure zinc is a bluish to pale grey transition metal, which is valued for its hardness, relatively high 

corrosion resistance, strength and ductility. Zinc is primarily recovered from sphalerite (ZnS) ores, 

but also occurs naturally in the form of marmatite - a zinc-iron sulphide, smithsomite (zinc 

carbonate) or hemimorphite (zinc silicate). 

Thibault & Associates Inc. has reviewed options for a sequential flotation process for production 

of an indium-bearing zinc concentrate by selective recovery of the sphalerite mineralization in the 

North Zone ore. The conceptual design of the sequential flotation process is intended to produce 

a zinc concentrate enriched in indium having typical product grade based on meeting a wide 

range of end user quality guidelines. The product revenue calculated in Section 27.0 is based on 

production of zinc concentrate to meet the typical product quality specifications presented in 

Table 22-3. 

Table 22-3: Zinc Concentrate Product Grade Estimate Used for Preliminary Assessment 



VALUE 

MIN 

MAX 

Zinc % Zn 50.0 -- 

Indium % In 0.49 [1] -- 

Moisture % H 2 O -- 8.000 

Silica % SiO 2 -- 10.000 

Iron % Fe -- 8.000 

Lead % Pb -- 1.090 

Molybdenum % MoS 2 -- 0.600 

Tin % Sn -- 0.820 

Arsenic % As -- 0.910 

Aluminum % Al 2 O 3 -- 0.400 

Cadmium % Cd -- 0.250 

Copper % Cu -- 0.350 

Calcium % CaO -- 0.100 

Magnesium % MgO -- 0.100 

Manganese % MnO -- 0.050 

Tungsten % WO 3 -- 0.090 

Chromium % Cr -- 0.005 

Antimony % Sb -- 0.005 

Bismuth % Bi -- 0.670 

Chlorine ppm Cl - -- 500 







VALUE 

MIN 

MAX 

Fluorine ppm F - -- 20 

Table Notes: 

[1] Indium grade of 0.49% in zinc concentrate is based on conceptual process design criteria and recoveries as defined in Section 19.0. 

The major application sectors of zinc are in steel galvanizing; brass manufacture; zinc metal 

alloys used in die casting; manufactured products (e.g. metal roofing, eavestrough, etc.); zinc 

compounds and zinc chemicals used in vulcanized rubber and manufacture of ceramics, rubber, 

paint and pharmaceuticals; and in the manufacture of zinc-based batteries. The distribution of 

primary zinc demand by use is illustrated in Figure 22-4. 

Manufactured Products, 

7.0% 

(0.8 MM tonne/year) 

Other, 4.0% 


Zinc Compounds & 



Steel Galvanizing, 47.0% 


Zinc-Based Alloys & Die 

Casting, 16.0% 


Brass, 19.0% 


Reference: International Zinc Association website at www.zincworld.org 

Figure 22-4: Global Zinc Consumption by End-Use 

The world mine production of zinc by country is presented in Figure 22-5. Planned annual 

production from the proposed Mount Pleasant operation at 850 tonne of ore per day nameplate 

capacity equates to 4,329 tonne/year of contained zinc or 0.04% of the total annual mine 

production in 2008. 42.4 tonne/year of contained indium (calculated at 4N8 purity) is co-produced 

and sold with the zinc concentrate. 





Kazakhstan, 3.7% 


Other, 25.1% 


Mexico, 4.1% 


Canada, 5.8% 


United States, 6.8% 


Peru, 12.8% 


China, 28.3% 


Australia, 13.4% 


Reference: USGS Zinc Commodity Summary, 2008 

Figure 22-5: World Mine Production of Zinc by Country 

Prospective buyers of zinc concentrates can be grouped into two major categories: 

 

 

 

commodity traders; 

smelters, and; 

manufacturers of zinc end products (steel industry, brass manufacturers, die-casting 

industry). 

The main differences between the three prospective buyer categories are i) allocation of 

marketing and sales responsibilities and ii) price structure. Smelters typically offer two options for 

processing concentrates: 

 

 

toll processing - where a set percentage (net smelter return) of the refined zinc is available for 

direct sale to an end user by the owner, in which case the owner is responsible for marketing 

and shipping of the refined zinc to the purchaser. 

direct sale of contained zinc in concentrates to the smelter, in which case the smelter is 

responsible for marketing and shipping of the final product to an end user. 

For the purpose of the preliminary assessment, only prospective buyers within the first two 

categories have been identified. The following is a non-exhaustive list of well-established 

prospective buyers for indium-bearing zinc concentrate. 





Smelters: 

Xstrata Kidd Creek (Ontario, Canada) 

Teck Cominco (British Columbia, Canada) 

Chelyabinsk Zinc (Russia) 

Laibin Smeltery (China) 

Dowa Mining (Japan) 

Korea Zinc (Korea) 

Lundin Mining (Portugal) 

Mitsui Mining (Peru) 

Nyrstar 

Commodity Traders: 

Amalgamated Metal Corporation (AMC) Trading Group (Worldwide) 

Glencore International AG (Worldwide) 

Euromin SA / Vitol (Worldwide) 

ANI Metal and Chemicals (Turkey) 

Ocean Partners (United States) 

Traxys (Belgium) 

Marco International (United States) 

As was the case for tin concentrate, a formal contract or off-take agreement with an end user for 

zinc concentrate would include a smelter schedule that defines the terms of the purchase 

agreement and sets the basis for calculation of treatment charges, penalty charges, premiums 

paid for payable metals in the concentrate (e.g. silver, gold, platinum, indium), unit deductions 

and/or price discounts relative to the concentrate quality. 

Typical smelter schedules for several zinc smelters were obtained and used to define the terms 

for estimation of the revenue potential from indium bearing zinc concentrate for the Mount 

Pleasant North Zone preliminary assessment. These terms are described in detail in Section 

27.0, along with calculation of the revenue potential from the sale of this product. 

For the North Zone preliminary assessment, the cash flow model described in Section 27.0 was 

generated using the pricing structure as defined herein. The three-year average London Metal 

Exchange ("LME) cash settlement zinc price has been calculated as CDN$2.70/kg. Dynamic 

charting of the LME monthly average cash settlement zinc price for the past three years is given 

by Figure 22-6. 





$6.00 

Price Trend for Zinc Metal (CDN$/kg) 


$5.00 

Zinc Price (CDN$/kg) 

$4.00 

$3.00 

$2.00 


3-Year Average Price of CDN$2.70/kg 


$1.00 

$0.00 

Sep-06 

Nov-06 

Jan-07 

Mar-07 

May-07 

Jul-07 

Sep-07 

Nov-07 

Jan-08 

Mar-08 

May-08 

Jul-08 

Sep-08 

Nov-08 

Jan-09 

Mar-09 

May-09 

Jul-09 

Sep-09 

Figure 22-6: Dynamic Three Year Price Chart for Zinc Metal 

For the purpose of the Mount Pleasant North Zone preliminary assessment, a base case life-ofmine 

zinc price of CDN$2.70/kg Zn was adopted based on a three-year average of the LME 

price. A life-of-mine forecast pricing structure has not been determined and Thibault & Associates 

Inc. offers no opinion on expected metal price trends or floor values going forward. Plus or minus 

35% of the base case metal price was selected as an adequate range for assessment of cash 

flow sensitivity to metal pricing. This estimated range for sensitivity analysis is equivalent to a low 

price of CDN$1.76/kg Zn and a high price of CDN$3.65/kg Zn (zinc prices exceeded the "highend" 

for 11 consecutive months from September, 2006 to August, 2007). 

Dynamic charting of the monthly average settlement value for 4N grade (99.99% In) indium ingot, 

as published by MinorMetals.com, is given by Figure 22-7. 





$1,400.00 

Price Trend for 99.99 Indium Ingot (CDN$/kg) 


$1,200.00 

Indium Price (CDN$/kg) 

$1,000.00 

$800.00 

$600.00 


3-Year Average Price of CDN$639.67/kg 

$400.00 


$200.00 

$0.00 

Sep-06 

Nov-06 

Jan-07 

Mar-07 

May-07 

Jul-07 

Sep-07 

Nov-07 

Jan-08 

Mar-08 

May-08 

Jul-08 

Sep-08 

Nov-08 

Jan-09 

Mar-09 

May-09 

Jul-09 

Sep-09 

Figure 22-7: Dynamic Three Year Price Chart for 99.99% Indium Ingot 

Based on the three-year trailing average, the base case life-of-mine indium price was selected as 

CDN$639.67/kg for 4N grade. Plus or minus 35% of the base case indium price was determined 

to represent an adequate range for assessment of cash flow sensitivity to metal price. This 

estimated range for sensitivity analysis is equivalent to a low price of CDN$415.79/kg and a high 

price of CDN$863.55/kg. 

For zinc concentrate grading 50.0 wt% zinc and 0.49 wt% indium, and penalty elements 

estimated as per Table 22-3, the revenue potential is defined in Section 27.0. 

22.4 High Grade Zinc Metal 

With the addition of a hydrometallurgical processing circuit as described in Section 19.0, zinc 

metal plate would be produced on site for direct sale to an end user or metal trader. Product 

specifications as defined by the London Metal Exchange for special high grade zinc are given in 

Table 22-4. 





Table 22-4: LME Specifications for Special High Grade Zinc Metal 



VALUE 

MIN 

MAX 

Nominal zinc content wt% Zn 99.995 -- 

Lead wt% Pb -- 0.003 

Cadmium wt% Cd -- 0.003 

Iron wt% Fe -- 0.002 

Tin wt% Sn -- 0.001 

Copper wt% Cu -- 0.001 

Aluminum wt% Al -- 0.001 

Total of all impurities wt% -- 0.005 

As defined previously, annual global consumption of zinc metal in 2008 was approximately 11.3 

million tonnes. Planned annual production of high grade zinc metal from the proposed Mount 

Pleasant operation at 850 tonne per day of ore nameplate capacity equates to 4,056 tonne/year, 

or 0.036% of the annual world primary zinc production. 

For the purpose of calculating product revenues from production of zinc plate for the Mount 

Pleasant North Zone preliminary assessment, the same zinc metal pricing structure that is used 

to calculate revenue potential from zinc concentrate will be used for the base case (CDN$2.70/kg 

Zn), low (CDN$1.76/kg Zn) and high (CDN$3.65/kg) price cases. Since, in this case, the product 

will be sold directly to an end user, it has been assumed that this pricing represents the gross 

revenue received by the mine for electrolytic grade zinc (minimum purity of 99.5%) and no price 

discounts, penalty charges or refining charges have been included in the product revenue figures 

calculated in Section 27.0. 

22.5 Indium Sponge 

Indium is a soft, ductile, low melting point metal with a bright lustre that predominately occurs in 

nature in association with sphalerite (ZnS) mineralization at concentrations of less than 100 parts 

per million in the ore. 

Indium sponge of 95% purity is intended to be co-produced from the hydrometallurgical circuit as 

described in Section 19.0, and will allow for the direct sale of a separate, higher value indium 

product to an end user. The major consumer use of indium is for production of transparent 

conductive indium-tin oxide ("ITO") coatings used in the manufacture of LCD, flat panel, touch 

screen and plasma displays for televisions, computers and hand-held electronic devices. Other 

major uses are for production of indium compounds and chemicals, as an alloy in low melting 

point solders and in the manufacture of semi-conductors. A typical breakdown of indium 

consumption by end-use is shown in Figure 22-8. 





ITO Manufacturing, 83.0% 

(423.3 tonne/year) 

Indium Compounds & 



Alloys / Solder, 5.0% 


Semi-conductors, 3.0% 


Reference: Asian Metal Ltd. 

Figure 22-8: Global Indium Consumption by End Use 

Annual global production of refined indium (i.e., minimum 99.99% In) in 2008 was reported as 

568 tonnes by the US Geological Survey's Annual Indium Mineral Commodity Summary and is 

broken down by country in Figure 22-9. Planned annual production of indium sponge of minimum 

95% purity from the proposed Mount Pleasant operation at 850 tonne per day nameplate capacity 

is 40.5 tonne/year, which is equivalent to 38.5 tonne/year at 99.99% purity, or 6.8% of the annual 

global production of refined indium reported in 2008. 





Japan, 10.6% 

(60 tonne/year) 

Canada, 8.8% 


China, 58.1% 

330 tonne/year) 

Korea, 8.8% 


Belgium, 5.3% 


Russia, 2.1% 


Peru, 1.1% 


Other, 5.2% 


Reference: USGS Mineral Commodity Summary - Indium 2008 

Figure 22-9: Global Refined Indium Production by Country 

The indium sponge would be pressed into blocks, packaged and stacked on pallets for shipment 

to a buyer who would typically be a processor with electro-refining capabilities for upgrading the 

indium sponge into high-grade indium metal ingot and/or indium end use products that are 

marketed directly by the processor. Potential buyers of indium sponge have been identified as 

follows: 

End Users/Processors: 

Indium Corporation of America (New York, United States) 

Umicore Group (Belgium) 

MCP Metalspecialties Inc. (Connecticut, United States) 

ESPI Corporation (Oregon, United States) 

AIM Specialty Materials Division (Rhode Island, United States) 

Typical product specifications for indium sponge have not been fully defined; however, 95% 

minimum indium content is considered typical and potential end users have indicated that 

arsenic, cadmium and thallium are the primary impurities of concern and special care should be 

taken in designing the process to assure that these elements are removed from the leach solution 

as completely as possible prior to the indium cementation stage. Other elements of concern may 

also include lead, tin and copper. 

A definitive pricing structure for indium sponge has also not yet been agreed upon; however, 

some well-established end users were able to provided Adex with typical values of i) price 





discount used in long-term off-take contract agreements, ii) refining charges for upgrading 95% to 

99% indium sponge to 4N8 grade indium metal and iii) refining yield, which are described in detail 

in Section 27.0. 

For the purpose of calculating base case product revenues and analysis of cash flow sensitivity, 

the same base case (CDN$639.67), low price case (CDN$415.79) and high price case 

(CDN$863.55) per kilogram of 4N grade indium ingot were used as for the indium-bearing zinc 

concentrate product. 





SECTION 23.0 CONTRACTS 

At this time no contracts have been tendered or awarded for mining, concentrating, smelting, 

handling, sales, hedging or forward sales of products from the proposed Mount Pleasant 

concentrator or hydromet process. Terms used for calculation of revenue potential for cash flow 

analysis are described in detail in Section 27.0 and are considered to be typical of industry 

standards based on discussions with end users and commodity traders in the tin, zinc and indium 

sectors. 





SECTION 24.0 TAXES 

24.1 Federal and Provincial Income Tax 

The general corporate income tax rates for Canadian controlled private corporations were taken 

from the Federal and Provincial 2009 budgets as summarized in Table 24-1. 

Table 24-1: Federal and Provincial Income Tax Rates 

JURISDICTION EFFECTIVE DATE TAX RATE 

Federal July 1, 2012 15.0% 

Provincial January 1, 2012 8.0% 

Based on current regulations, depreciable and depletable expenditures prior to commercial 

production are deductible against income, until the un-depreciated capital cost balance is drawn 

down to zero. All of the mine and process pre-production capital cost has been treated as a 

depreciable and depletable expenditure. The general capital cost allowance was taken as 25% of 

the un-depreciated capital cost balance or the income before tax, whichever is the lesser amount. 

An accelerated capital cost allowance up to 100% of the remaining capital cost balance was then 

used to offset any remaining income for that tax year. The total of the general and accelerated 

capital cost allowance cannot exceed the annual income such that a loss is created. The federal 

and provincial income taxes were assessed on the net income after the capital cost allowances 

and mining tax were deducted. 

The simplified income tax calculations used in the economic model are based only on the capital 

cost allowance and no deductions were considered for other tax credits such as: carry forward of 

losses from any tax years prior to production, Canadian development expenses and Canadian 

exploration expenses. 

24.2 Mining Tax 

The mining tax was calculated according to the New Brunswick Metallic Minerals Tax Act dated 

March 30, 2007 including the associated forms and schedules for mining tax returns. The mining 

tax is a total of two contributions: 

2% of net revenue 

16% of net profits greater than $100,000 less other eligible process research expenditures. 

Net revenue before processing allowance ("NRBPA") is calculated as gross revenue less process 

operating costs and transportation costs for product sold. Net revenue is calculated as the greater 

of 75% of NRBPA or NRBPA less 8% of the original capital cost of all assets used for processing. 

The net profit is calculated as gross revenue less operating costs for administration, mining and 

processing, less net revenue tax, less depreciation allowance for mine and processing assets, 

less a processing allowance of 8% of the original capital cost of processing assets, all within the 

prescribed limits. The depreciation allowance was maximized each year until it is depleted so that 

mining tax on net profit is minimized initially in the project. 





SECTION 25.0 CAPITAL COST ESTIMATES 

25.1 Capital Cost Estimate Basis 

The capital cost estimate includes all direct and indirect costs up to the point that the plant is 

commissioned and ready for operation. This includes all costs for purchase and delivery of 

equipment, installation by local contractors, engineering, construction management and 

commissioning. Prior sunk costs, owner's costs, and deferred or sustaining capital costs are not 

included. The capital cost estimate is based on factored estimating methods where the process 

equipment purchase cost is defined by vendor budget quotes and all remaining direct and indirect 

cost items are derived by applying a factor relative to the process equipment purchase cost. All 

factors used for the preliminary assessment were based on similar metallurgical projects. A 

detailed breakdown of the capital costs for all three production scenarios is given by Appendix E. 

The conceptual process flowsheets included in Appendix B were used to define process 

equipment requirements. An equipment sizing and costing model was developed to calculate the 

cost of each piece of process equipment for a user-entered plant run-of-mine ore processing 

capacity. The initial capital cost estimates were prepared for a range of process plant sizes from 

250 to 1000 tonne/day run-of-mine ore. Based on the available mineable resource estimate at 

target grades defined in Section 17.0, it was concluded that a plant capacity of 850 tonne/day 

run-of-mine ore operating for 10 years provided the best economy of scale. Further economy of 

scale improvement by increasing plant size would depend on definition of additional resources at 

the target grades. 

Based on the level of definition of the project, the preliminary factored capital cost estimate is 

considered to be class IV according to the Association for the Advancement of Cost Engineers 

("AACE") under guidelines 17R-97 (article AACE.05) with an estimated accuracy in the range of - 

10% +35%. The preliminary capital cost estimate is based upon the following: 

Processing plant nominal design capacity of 850 tonne/day run-of-mine ore. 

Current and previous vendor quotes for process equipment adjusted to first quarter 2009 

Canadian dollars based on the Marshall & Swift Mine and Mill cost indices. 

Currency exchange rate of $1.10 Canadian Dollars = $1.00 US Dollars. 

Mine development and mining equipment purchase installation costs were developed by Hara 

Mining Enterprises Inc. as defined in Section 18.0 and the costs were included in the overall preproduction 

capital cost presented in this section. 

25.2 Capital Cost Estimate Summary 

A summary of the capital cost breakdown for each of the three production options defined below 

is presented in Table 25-1. 

Case A: 

Case B: 

Case C: 

Production of tin concentrate and zinc concentrate with contained indium. 

Production of tin concentrate, zinc metal, and indium sponge. 

Production of tin chloride, zinc metal, and indium sponge. 





Table 25-1: Capital Cost Breakdown Summary for Different North Zone Processing Options 

DIRECT COSTS 


CASE A CASE B CASE C 


Zinc/Indium 

Concentrate 


Zinc Metal, 

Indium Sponge 

Tin Chloride, 

Zinc Metal, 

Indium Sponge 

Process Equipment Purchase $6,833,281 $22,072,415 $30,813,970 

Process Equipment Delivery $375,942 $659,733 $853,634 

Process Equipment Installation $939,854 $1,649,333 $2,134,086 

Process Piping Materials & Installation $1,879,709 $3,298,667 $4,268,172 

Process Control Systems & Instrumentation $1,503,767 $2,309,067 $2,560,903 

Power Distribution $4,699,272 $5,277,867 $5,548,624 

Instrumentation Wiring $312,032 $458,515 $529,253 

Building, Foundation, Structure & Services $2,067,680 $6,597,334 $10,670,431 

Analytical/Metallurgical Laboratory Equipment $250,000 $250,000 $250,000 

Office Furniture & Equipment $30,000 $30,000 $30,000 

Warehouse & Yard Management Equipment $120,000 $120,000 $120,000 

Spare Parts for Process Equipment $187,971 $659,733 $853,634 

Subtotal Direct Costs $19,199,507 $43,382,664 $58,632,710 

INDIRECT COSTS 

Plant Engineering & Design $1,869,799 $3,257,815 $4,230,028 

Procurement & Contract Management $183,864 $320,352 $415,953 

Construction Supervision & Field Cost $183,864 $320,352 $415,953 

Plant Commissioning $249,307 $434,375 $564,004 

Subtotal Indirect Costs $2,486,832 $4,332,894 $5,625,937 

SUBTOTAL DIRECT AND INDIRECT COSTS $21,686,339 $47,715,558 $64,258,647 

CONTINGENCY (15%) $3,252,951 $7,157,334 $9,638,797 

TOTAL PROCESS PLANT & INFRASTRUCTURE $24,939,290 $54,872,892 $73,897,444 

MINING, MINE INFRASTRUCTURE & CONTINGENCY $16,231,166 $16,231,166 $16,231,166 

TOTAL PREPRODUCTION CAPITAL COST $41,170,456 $71,104,058 $90,128,610 

Table Notes: 


The distribution of the overall preproduction capital cost for each of the three cases is illustrated 

in Figure 25-1 to Figure 25-3. 





Process Equipment 

Purchase, 19.09% 

Process Equipment Delivery, 

1.05% 


Installation, 2.63% 

Process Piping, 5.25% 

Process Control & 

Instrumentation, 4.20% 

Power Distribution, 13.13% 

Instrumentation Wiring, 

0.87% 

Building, Foundation, 

Structure & Services, 5.78% 

Laboratory Equipment, 0.70% 

Office Furniture & 

Equipment, 0.08% 

Warehouse & Yard 

Management Equipment, 

0.34% 

Spare Parts for Process 


Mining, Mine Infrastructure, 

39.42% 

Plant Commissioning, 0.70% 

Construction Supervision & 

Field Cost, 0.51% 

Plant Engineering & Design, 

5.22% 

Procurement & Contract 

Management, 0.51% 

Figure 25-1: Case A Capital Cost Breakdown for Tin Concentrate and Zinc/Indium Concentrate Production 


1.07% 










0.74% 


22.83% 




0.19% 




5.27% 








Office Furniture & Equipment, 

0.05% 

Figure 25-2: Case B Capital Cost Breakdown for Tin Concentrate, Zinc Metal and Indium Sponge Production 






1.09% 










0.68% 




Office Furniture & Equipment, 

0.04% 


18.01% 






0.15% 




5.40% 



Figure 25-3: Case C Capital Cost Breakdown for Tin Chloride, Zinc Metal and Indium Sponge Production 

25.3 Direct Cost 

25.3.1 Process Equipment Purchase, Delivery and Installation 

Process equipment purchase cost was based on a blend of new and used/refurbished process 

equipment for all cases. Process equipment costs were derived using both recent budget quotes 

from vendors and quotes on file previously obtained from vendors. An equation for capital cost as 

a function of the main equipment sizing/capacity parameter (e.g. tank volume) was developed for 

each piece of process equipment to allow an assessment of capital cost for various plant sizes 

using the simulation model. Used process equipment quotes were also obtained from vendors 

and from a database of past projects in order to develop a typical factor for used equipment cost 

relative to the new purchase option. 

The capital cost presented includes used process equipment only for systems where this would 

be expected to have a minimum impact on the overall plant operating availability. Used 

equipment costs are estimates only and are based on refurbishment of the used equipment as 

required to be ready for service. Used equipment pricing and availability is subject to market 

conditions and therefore the availability of any used equipment or its price is subject to change. 

Used process equipment was included extensively in the concentrator section of the plant. 

However, some new equipment was included in the following areas of the concentrator based on 

either the requirement to maintain plant availability or limited availability in the used equipment 

market: 

pump boxes and pumps 

tanks and agitators 





centrifugal gravity separators 

low and high intensity magnetic separators 

flotation columns 

screw conveyors 

The tin chloride circuit uses mostly specialty equipment and, as such, all process equipment 

costing was based on new equipment with the exception of product filters, dryers and packaging 

equipment. Similarly, for the indium and zinc hydromet circuit, all process equipment costing was 

based on new equipment with the exception of filters. Tailings and wastewater treatment was 

based on new equipment costing except for the existing tanks and thickener which would be 

refurbished and reused for tailings treatment. All reagents and utilities systems were based on 

new equipment costs except for used boilers and refurbishment of the existing low pressure air 

blowers. 

Spare parts costing was included in all cases based on a factor of the total purchase price of 

100% new process equipment. 

Costing for 100% installed spare capacity for pumps was only included in critical areas such as 

the grinding circuit and some of the indium/zinc hydromet circuit. Other process areas use one 

pump per service. 

Delivery and installation of process equipment is a factored cost relative to the total purchase 

price of 100% new equipment for cases A through C. Detailed estimates of installation man-hours 

have not been completed for this study. The factors developed were based on installation by local 

contractors. Installation cost factors include costs for the contractor to set up temporary 

construction support facilities and storage areas. 

The breakdown of the total process equipment cost by process area is shown in Table 25-2 and 

Figure 25-4 to Figure 25-6 for the three production cases. 

Table 25-2: Distribution of Process Equipment Cost by Process Area For North Zone Processing Options 

PROCESS AREA CASE A CASE B CASE C 


Zinc/Indium 

Concentrate 


Zinc Metal, 

Indium Sponge 

Tin Chloride, 

Zinc Metal, 

Indium Sponge 

Metallurgical Processing $5,015,897 $16,034,811 $24,126,783 

Tailings and Wastewater Management $567,753 $2,693,856 $2,685,253 

Process and Domestic Water $138,466 $310,164 $298,427 

Utilities Systems $310,327 $1,428,166 $1,829,866 

Reagent Systems $800,838 $1,605,418 $1,873,642 

Subtotal Process Equipment Purchase Cost $6,833,281 $22,072,415 $30,813,970 

Table Notes: 






Tailings and Wastewater 


Process and Domestic Water, 

2.03% 

Utilities Systems, 4.54% 

Concentrator, 73.40% 

Reagent Systems, 11.72% 

Figure 25-4: Case A Equipment Cost Breakdown for Tin Concentrate and Zinc/Indium Concentrate Production 

Indium/Zinc Hydromet, 

50.22% 




1.41% 




Figure 25-5: Case B Equipment Cost Breakdown for Tin Concentrate, Zinc Metal and Indium Sponge Production 





Indium/Zinc Hydromet, 

36.59% 




0.97% 



Tin Chloride Pyromet, 24.74% 


Figure 25-6: Case C Equipment Cost Breakdown for Tin Chloride, Zinc Metal and Indium Sponge Production 

25.3.2 Process Piping 

The process piping materials and installation cost is not layout specific and a detailed materials 

take-off has not been completed. A percentage factor for installation of all new piping materials 

relative to the total process equipment purchase price for 100% new equipment has been used. 

25.3.3 Power Distribution, Process Control, Instrumentation and Wiring 

All electrical power distribution and disconnect and instrumentation/controls installation is based 

on new equipment pricing to assure compliance with codes and standards without modifications 

that may be required for used equipment. Electrical and controls equipment costing is based on a 

factor and confirmed by preliminary estimates relative to an electrical equipment list and material 

take-off for each production option. 

25.3.4 Building, Foundation, Structure and Services 

The existing concentrator building and the warehouse/office building will be reused and an 

allowance has been made for refurbishment as required and demolition and installation of new 

equipment foundations, support steel and platforms. Cost for building services in the 

concentrator, including heat, lights and domestic water are based on a cost for refurbishment. 

Reuse of the administration building or sample lab/assay lab has not been included and therefore 

refurbishment costs of these areas are not included in the capital cost estimate. 





25.3.5 Support Equipment 

The capital cost estimate includes the cost for purchase of new analytical laboratory equipment 

and office furniture/computers for staff. There is also an allowance for the purchase of warehouse 

and yard equipment (e.g. forklift) for the operation. 

25.3.6 Site Infrastructure 

The following infrastructure items already exist in serviceable condition at the site and therefore 

no direct costs have been included: 

main access road, site roads, contouring and drainage 

fuel storage 

sewage disposal 

communications 

tailings disposal pond 

power transmission to site 

fire protection 

25.4 Indirect Cost 

25.4.1 Engineering, Procurement and Construction Management (EPCM) 

Costs for plant engineering, equipment procurement and contract management, and construction 

supervision and field costs have been factored relative to the total direct costs for the purchase of 

100% new process equipment. The factors used are lower than typical due to the use of the 

existing concentrator building. Costs in this section exclude mine design which is defined 

separately according to Section 18.0. 

25.4.2 Plant Commissioning 

The cost for start-up and commissioning the plant is included as a factored cost relative to the 

total direct cost based on 100% new process equipment. 

25.5 Contingency 

Based on the preliminary nature (conceptual) of the process design used in this study, the 

contingency provides an allowance for unforeseen changes in the capital cost within the project 

work scope as currently defined. The contingency covers presently undefined items of work or 

equipment or uncertainty in estimated quantities and unit prices for labour, equipment and 

materials. The contingency does not cover work scope changes, project exclusions or project 

execution strategy changes. The potential increase in capital costs is included as a contingency 

of 15% of the total direct and indirect costs (excluding mining) for a blend of new and used 

process equipment. The mining capital cost contingency is included separately as defined in 

Section 18.0. 

25.6 Sustaining, Deferred and Working Capital Costs 

Sustaining, deferred and working capital costs are not included in the pre-production capital cost 

presented in Table 25-1. No sustaining capital costs have been defined for the process or mine. 





Working and deferred capital costs are included in the cash flow economic analysis presented in 

Section 27.0. 

25.6.1 Working Capital 

The working capital includes the cash on hand that is required during operations (processing only 

- mining costs excluded). Working capital is withdrawn at the end of the project. The following 

items are included: 

Accounts receivable (30 days) 

Product inventory (15 days) 

Salaries for operating and administration personnel (60 days) 

Initial reagent fill (30 days) 

25.6.2 Reclamation and Closure Costs 

The requirements for reclamation and closure at the end of the operation are summarized in 

Section 21.0 with a total cost of CDN$2.87 million. No resale or salvage value was considered for 

any of the assets such as buildings or equipment at the end of the project. 

25.7 Capital Cost Qualifications and Exclusions 

25.7.1 Qualifications 

The capital cost estimate is based on the availability of used process equipment where 

included in the cost estimate. 

Changes to the project execution strategy or timeline may impact the capital cost estimate. 

Installation cost estimates are based on factored estimating methods and are not based on 

man-hour estimates for specific trades or material take-off. 

25.7.2 Exclusions 

The following cost items are not included in the capital cost estimate: 

Price escalation for materials, equipment or labour 

Changes in project work scope definition 

Interest charges during construction 

Project financing costs 

Currency exchange rate fluctuations 

Costs for permits and fees 

Costs for sludge disposal cell upgrade 

Costs for refurbishment of existing administration building and former assay labs 

Sunk costs (costs prior to this study) 

Owner's costs (e.g. Owner's staff wages and office facility costs prior to production) 

Sustaining capital costs 

Deferred capital costs 

Working capital costs (included with economic analysis) 

Taxes and duties 

Legal fees 

Project or construction insurance 





Process royalty fees 

Costs for exploration drilling programs 

Metallurgical study costs and metallurgical test program costs 

Preparation of feasibility study 





SECTION 26.0 OPERATING COST ESTIMATES 

26.1 Operating Cost Estimate Basis 

The operating cost estimate includes labour, electrical power, fuel, reagents, consumables and 

administration costs for the operation of the mine, processing plant and site administration. A 

detailed breakdown of the operating costs for all three production scenarios is given by Appendix 

F. 

Based on the level of definition of the project, the operating cost estimate is considered to be 

class IV according to the Association for the Advancement of Cost Engineers ("AACE") under 

guidelines 17R-97 (article AACE.05) with an estimated accuracy in the range of -10% +35%. The 

preliminary operating cost estimate is based upon the following: 

Processing plant nominal design capacity of 850 tonne/day run-of-mine ore. 

Processing plant availability factor of 90%. 

All costs are presented in first quarter 2009 Canadian dollars. 

Currency exchange rate of $1.10 Canadian Dollars = $1.00 US dollars. 

Mine operating costs were developed by Hara Mining Enterprises Inc. as defined in Section 18.0 

and the costs were included in the operating cost estimate presented in this section. 

26.2 Operating Cost Estimate Summary 

A summary of the operating cost breakdown for each of the three production options defined 

below is presented in Table 26-1. 

Case A: Production of tin concentrate and zinc concentrate with contained indium. 

Case B: Production of tin concentrate, zinc metal, and indium sponge. 

Case C: Production of tin chloride, zinc metal, and indium sponge. 

Table 26-1: Operating Cost Breakdown Summary for Different North Zone Processing Options 




Zinc/Indium 

Concentrate 


Zinc Metal, 

Indium Sponge 

Tin Chloride, 

Zinc Metal, 

Indium Sponge 

ANNUAL OPERATING COST CDN$/year CDN$/year CDN$/year 

Mine Operating Cost [1] $8,382,413 $8,382,413 $8,382,413 

Processing Operating Cost $8,866,208 $13,654,458 $20,719,698 

Site Administration Operating Cost $504,000 $913,500 $1,407,000 

Total Annual Operating Cost $17,752,621 $22,950,371 $30,509,112 

OPERATING COST PER TONNE PROCESSED CDN$/tonne CDN$/tonne CDN$/tonne 

Mining Operating Cost $30.02 $30.02 $30.02 

Processing Operating Cost $31.75 $48.90 $74.20 

Site Administration Operating Cost $1.80 $3.27 $5.04 

Total Operating Cost Per Tonne $63.58 $82.19 $109.26 

Table Notes: 

[1] Annual mine operating cost based on average annual mill feed tonnage, accounting for mill availability. 





26.3 Mine Operating Cost 

The mine operating cost includes labour, diesel fuel and lubricants, propane, equipment rental, 

equipment maintenance, materials and supplies, electrical energy and ventilation. The basis for 

the mining operating cost estimate and the breakdown of the various contributions to the overall 

mining operating cost is included in Section 18.0. 

26.4 Processing Operating Cost 

The overall operating cost for processing the run-of-mine ore to saleable products consists of the 

individual contributions summarized in Table 26-2. The processing operating cost breakdown is 

also illustrated in Figure 26-1 to Figure 26-3. 


Table 26-2: Breakdown of Processing Operating Cost 



Zinc/Indium 

Concentrate 


Zinc Metal, 

Indium Sponge 

Tin Chloride, 

Zinc Metal, 

Indium Sponge 

ANNUAL PROCESS OPERATING COST CDN$/year CDN$/year CDN$/year 

Reagents $2,279,796 $3,291,681 $5,722,706 

Concentrator Consumables $674,050 $674,050 $674,050 

Power $1,278,639 $2,600,704 $2,648,954 

No. 2 Fuel Oil $0 $1,686,818 $4,155,055 

Labour $1,543,000 $2,436,000 $3,801,000 

Maintenance Consumables $202,213 $521,185 $705,712 

Support Laboratories $260,000 $490,000 $710,000 

Health & Safety $17,000 $20,750 $26,750 

Consultant Technical Support $77,000 $157,000 $257,000 

Marketing & Sales $304,950 $620,628 $660,628 

Packaging & Shipping $1,807,359 $505,429 $371,190 

Contingency $422,200 $650,212 $986,652 

Total Annual Process Operating Cost $8,866,208 $13,654,458 $20,719,698 

PROCESS OPERATING COST PER TONNE CDN$/tonne CDN$/tonne CDN$/tonne 

Reagents $8.16 $11.79 $20.49 

Concentrator Consumables $2.41 $2.41 $2.41 

Power $4.58 $9.31 $9.49 

No. 2 Fuel Oil $0.00 $6.04 $14.88 

Labour $5.53 $8.72 $13.61 

Maintenance Consumables $0.72 $1.87 $2.53 

Support Laboratories $0.93 $1.75 $2.54 

Health & Safety $0.06 $0.07 $0.10 

Consultant Technical Support $0.28 $0.56 $0.92 

Marketing & Sales $1.09 $2.22 $2.37 

Packaging & Shipping $6.47 $1.81 $1.33 

Contingency $1.51 $2.33 $3.53 

Total Process Operating Cost Per Tonne $31.75 $48.90 $74.20 





Labour, 18.3% 

Maintenance Consumables, 

2.4% 

Support Laboratories, 3.1% 

Health & Safety, 0.2% 

Consultant Technical 

Support, 0.9% 

Marketing & Sales, 3.6% 

No. 2 Fuel Oil, 0.0% 

Packaging & Shipping, 21.4% 

Pow er, 15.1% 

Concentrator Consumables, 

8.0% 

Reagents, 27.0% 

Figure 26-1: Case A Processing Operating Cost for Tin Concentrate and Zinc/Indium Concentrate Production 


4.0% 


Labour, 18.7% 



Support, 1.2% 





Pow er, 20.0% 


5.2% 

Figure 26-2: Case B Processing Operating Cost for Tin Concentrate, Zinc Metal and Indium Sponge Production 





Labour, 19.3% 


3.6% 




Support, 1.3% 





Pow er, 13.4% 


34% 

Figure 26-3: Case C Processing Operating Cost for Tin Chloride, Zinc Metal and Indium Sponge Production 

26.4.1 Reagents 

For each process option, the consumption of each reagent was calculated in the mass balance 

simulation based on theoretical consumptions or data from operations that have similar operating 

practices. Reagent costs were based on vendor budgetary quotes including delivery FOB the 

minesite. 

26.4.2 Concentrator Consumables 

Wear parts in the concentrator section of the process were accounted for using typical values for 

a crushing, grinding and flotation plant concentrator. Process specific consumption based on test 

data was not defined for the study. The concentrator consumables include wear parts for crusher 

liner and bowl, screen replacements, rod and ball mill liner replacements, rod and ball mill 

grinding media, and filter cloth. Pricing was based on budgetary quotations from vendors. 

26.4.3 Electrical Power 

Based on all the process equipment required, a motor and electrical load list was prepared for 

each process option. The average operating electrical load was estimated by defining the fraction 

of each day that each motor operates and the percentage of rated motor power consumed during 

operation. An average blended electrical power cost of CDN$80/MWh was used including the 

demand charge and the usage charge. 





26.4.4 Fuel 

No fuel is required in Case A for concentrate production only. In Cases B and C, a boiler is 

required for process steam and in Case C, fuel is used in a direct fired kiln and dryer for tin 

chloride production. All fuel usage is based on No. 2 Fuel oil and a price of CDN$0.90/L was 

used. 

26.4.5 Labour 

The labour cost for the processing facilities includes management and support staff, assay 

technicians, process operators (including labourers), and maintenance staff (including tradesmen 

and labourers). The number of employees required for each duty was based on 12 hour shift 

operations and typical operating productivities and maintenance requirements from similar 

operations. Management, support and technical staff work on day shift only. The labour costs 

were provided by Adex Mining Inc. and are based on non-unionized personnel employed by the 

owner and not contract labour services. The labour cost for each position includes base salary 

plus 20% for overhead and burden. The number of employees required for each production case 

is summarized in Table 26-3. 





Table 26-3: Number of Employees Required for Processing Plant Operation 

PERSONNEL 

MANAGEMENT, SUPPORT AND TECHNICAL STAFF 



Zinc/Indium 

Concentrate 


Zinc Metal, 

Indium Sponge 

Tin Chloride, 

Zinc Metal, 

Indium Sponge 

Plant Manager 1 1 1 

Mill Clerk 1 1 1 

Metallurgist 0 1 2 

Technicians / Assayers 2 4 6 

Subtotal 4 7 10 

OPERATORS, LABOURERS, AND SUPERVISION 

Shift Foreman 0 0 4 

Crusher Operators 2 2 2 

Grinding Operators 4 4 4 

Flotation Operators 8 8 8 

Hydromet Operators 0 8 8 

Pyromet Operators 0 0 8 

Product Handling Operators 2 2 3 

Mobile Equipment / General Labourers 2 3 6 

Subtotal 18 27 43 

MAINTENANCE AND LABOURERS 

Maintenance Forman 1 1 1 

Millwrights 2 3 3 

Electrical and Instrumentation Technicians 1 3 4 

Welders 1 1 4 

Trades Helper 1 1 2 


TOTAL PROCESSING OPERATING PERSONNEL 28 43 67 

26.4.6 Maintenance Consumables 

The maintenance consumables cost was based on a factor of the original capital cost of all of the 

process equipment, based on a blend of new and used process equipment. Maintenance 

consumables include repairs and maintenance such as bearings, belts, motors, pump impellers, 

etc. An allowance has also been made for grease and lubricants and repairs to piping, valves and 

chutes based on a factor relative to the original piping capital cost. 

26.4.7 Support Laboratories 

The cost for metallurgical assays has been included based on an estimated number of assays for 

each production case and an allowance for assay equipment maintenance. 





26.4.8 Health and Safety 

The health and safety estimate includes expenses for training of employees and safety or 

personnel protection equipment. 

26.4.9 Consultant Technical Support 

An allowance has been included for on-going assistance from consultants for technical 

assistance with metallurgical process issues and environmental compliance. The annual 

environmental permitting fees have also been included in this section. 

26.4.10 Marketing and Sales 

Marketing and sales expenses have been included as a percentage of the total product sales 

value and an allowance has also been included for general public relations. 

26.4.11 Packaging and Shipping 

Tin concentrate: 

Product packaging costs include concentrate packaging in standard sized (875 mm x 875 mm x 

1250 mm) 6.5 oz woven polypropylene bulk bags at a budget cost of CDN$10.00 per bag. Each 

bulk bag will be loaded with one tonne of concentrate, yielding an estimated packaging cost of 

CDN$10.00/DMT concentrate. 

The mode of transportation and hence, shipping costs are dependant on the location of the end 

user's facility. Since there are currently no tin smelters in North America, it has been assumed 

that the tin concentrate will be shipped by transport truck to the Port of Halifax, where it will be 

loaded onto ocean freighters and shipped to somewhere in Asia (e.g. China, Malaysia). Costs for 

road transport of concentrate from the mine site to the Port of Halifax have been calculated as 

CDN$65.000/DMT from budget quotations for container transport and including fuel surcharge of 

12%. Costs for ocean transport from the Port of Halifax to Malaysia have been quoted as 

CDN$70.00/DMT. The total packaging and shipping cost is, therefore, estimated to be 

CDN$145.00/DMT of concentrate. 

Tin chloride: 

Since this product is hygroscopic (will adsorb water from ambient air), packaging of tin chloride 

will be in vacuum-sealed plastic bags shipped inside a 45 kg fibre drum, or alternative packaging 

per the customer's specifications. Packaging and shipping costs for tin chloride will be paid by the 

end user at the time of purchase and are not included as operating costs to the mine. 

Indium-bearing zinc concentrate: 

For the preliminary assessment, packaging in standard sized (875 mm x 875 mm x 1250 mm) 6.5 

oz woven polypropylene bulk bags with fill spout is assumed at a budget cost of CDN$10.00 per 

bag. Each bulk bag will be loaded with one tonne of concentrate, yielding an estimated packaging 

cost of CDN$10.00/DMT. 


user's facility. Since there are currently no zinc smelters in Canada that have the capability to 

recover and/or pay for indium contained in zinc concentrates, it was assumed that the 

concentrate would be shipped by transport truck to the Port of Halifax, from where it will be 





loaded onto ocean freighters and shipped to Asia. Costs for road transport of concentrate from 

the mine site to the port of Halifax have been calculated as CDN$65.00/DMT from budget 

quotations for container transport using a fuel surcharge of 12%. Costs for ocean transport from 

the Port of Halifax to China have been quoted as CDN$85.00/DMT. The total packaging and 

shipping cost is, therefore, estimated to be CDN$160.00/DMT of concentrate. 

Zinc metal plates: 

Zinc metal is produced from the electrowinning cells in the form of plates with approximate 

dimensions of 1.0 m by 0.75 m. The plates are stacked on pallets and wrapped for shipment to 

the end user. The wooden pallets can be re-used and; therefore, packaging costs are expected 

to be relatively low for zinc metal product. A total packaging cost of CDN$10.00/tonne Zn has 

been assumed. 


user's facility. Since the steel industry consumes almost half of the global zinc supply, it was 

assumed that the zinc plates would be shipped by transport truck to the north-eastern United 

States (e.g. Pittsburgh or Detroit), which is generally considered to be the center of the North 

American steel industry. Costs for road transport have been calculated as CDN$205.00/tonne Zn 

from budget quotations and using a fuel surcharge of 12%. The total packaging and shipping cost 

is, therefore, estimated to be CDN$215.00/tonne Zn. 

Indium sponge: 

The indium sponge packaging process will be somewhat more complex than that for the zinc 

metal plates, as each piece of pressed sponge (button) must be individually shrink-wrapped to 

prevent oxidation of the indium metal. Therefore, a total packaging cost of CDN$25.00/tonne 

indium sponge has been assumed. 


user's facility. Since three of the major American producers of refined indium are located in the 

north-eastern United States (e.g. Utica, N.Y., Rhode Island, Connecticut), a cost for road 

transport of CDN$205.00 per tonne of indium sponge has been carried for the preliminary 

assessment and is based on budget quotations for road transport and a fuel surcharge of 12%. 

The total packaging and shipping cost is, therefore, estimated to be CDN$230.00/tonne indium. 

26.4.12 Contingency 

A contingency of 5% of the total process operating cost has been applied to allow for unforeseen 

changes such as estimated quantities, consumptions or unit pricing of consumables. 

26.5 Site Administration Cost 

The individual components included in the site administration cost are summarized in Table 26-4. 





Table 26-4: Breakdown of Site Administration Operating Cost 




Zinc/Indium 

Concentrate 


Zinc Metal, 

Indium Sponge 

Tin Chloride, 

Zinc Metal, 

Indium Sponge 

ANNUAL SITE ADMINISTRATION OPERATING COST CDN$/year CDN$/year CDN$/year 

Labour $385,000 $680,000 $910,000 

Site General Maintenance $75,000 $160,000 $345,000 

Legal and Accounting Support Services $20,000 $30,000 $85,000 

Contingency $24,000 $43,500 $67,000 

Total Annual Site Administration Operating Cost $504,000 $913,500 $1,407,000 

ADMINISTRATION OPERATING COST PER TONNE CDN$/tonne CDN$/tonne CDN$/tonne 

Labour $1.38 $2.44 $3.26 

Site General Maintenance $0.27 $0.57 $1.24 

Legal and Accounting Support Services $0.07 $0.11 $0.30 

Contingency $0.09 $0.16 $0.24 

Total Site Administration Operating Cost Per Tonne $1.80 $3.27 $5.04 

Table Notes: 


26.5.1 Labour 

The labour cost for site administration includes management, accounting, warehouse, site 

maintenance and security staff. The number of employees required was based on staffing for day 

shift only with the exception of security which requires shift work for 24 hour presence. The labour 

cost was provided by Adex Mining Inc. and is based on non-unionized personnel employed by 

Adex and no contract labour services. The labour cost for each position includes base salary plus 

20% for overhead and burden. The number of employees required for each production case is 

summarized in Table 26-5. 

Table 26-5: Number of Employees Required for Site Administration 

PERSONNEL 

MANAGEMENT AND ACCOUNTING STAFF 



Zinc/Indium 

Concentrate 


Zinc Metal, 

Indium Sponge 

Tin Chloride, 

Zinc Metal, 

Indium Sponge 

Site Manager 0 0 0 

Office Clerical 0 0 2 

Human Resources Manager 0 1 1 

Safety Supervisor 0.5 1 1 

Chief Accountant 1 1 1 

Subtotal 1.5 3 5 

WAREHOUSE STAFF 

Purchasing Agent 0.5 1 1 

Warehouse Receiver 1 2 4 

Subtotal 1.5 3 5 





PERSONNEL 

SITE MAINTENANCE AND SECURITY 



Zinc/Indium 

Concentrate 


Zinc Metal, 

Indium Sponge 

Tin Chloride, 

Zinc Metal, 

Indium Sponge 

Gate Security 3 4 4 

Site Maintenance and Buildings Upkeep 1 2 3 


TOTAL SITE ADMINISTRATION PERSONNEL 7 12 17 

26.5.2 Site General Maintenance 

The site general maintenance cost includes an allowance for materials for building upkeep and 

for mobile equipment repair. Fuel is included for site maintenance mobile equipment. 

26.5.3 Legal and Accounting Support Services 

An allowance is included for consulting services for legal and accounting requirements. 

26.5.4 Contingency 

All site administration costs are subjected to a contingency of 5% to account for currently 

unforeseen costs. 

26.6 Operating Cost Qualifications and Exclusions 

26.6.1 Qualifications 

Labour costs are based on employees of Adex Mining Inc. only (no contract labour). 

26.6.2 Exclusions 

The following cost items are not included in the operating cost estimate: 

Price escalation for reagents, materials, equipment or labour 

Changes in project work scope definition 

Currency exchange rate fluctuations 

Research and development or exploration expenses 

Mining or process technology royalty fees 

Interest 

Sales taxes (HST/GST) 

Property taxes 

Corporate (Toronto) office costs 

Insurance 





SECTION 27.0 ECONOMIC ANALYSIS 

The capital and operating costs and product revenues defined by this study were used as inputs 

to construct a discounted cash flow ("DCF") financial model of the project that was used to 

evaluate the internal rate of return ("IRR") and net present value ("NPV") over the life of the 

project along with the payback period. 

27.1 Cash Flow Parameters 

The key assumptions and parameters that were used in the DCF model are given in Table 27-1: 

Table 27-1: Cash Flow Financial Model Parameter Summary 

PARAMETER VALUE NOTES 

Currency Canadian Dollars Constant exchange rate of CDN$1.10 = US$1.00. 

DCF Time Frame 

12 years total 

Year -1 is preproduction, production for years 1 through 10 

followed by closure and reclamation in year 11. 

Mining Production Schedule Constant 

Other than ramp-up in year one, ore production rate is 

constant for years 2 through 9. In year 10, mine production 

does not occur for the full year due to resource depletion. 

Processing Ramp-up 90% year 1 

Mining and processing rate is 90% of maximum rate in first 

year to account for start-up and commissioning. 

Processing in Final Year 79% year 10 

Processing of ore ceases 79% (288 days) into year 10 due 

to resource depletion. 

DCF Incremental Time Period 1 year 

All costs and revenues are assumed as a single point 

average for a complete year. 

Project Financing 100% equity The cash flows represent those seen by an equity investor. 

Taxes 

Before and After 

Results are shown pre-tax and then post-tax results were 

evaluated using current tax rates and regulations. Tax rates 

are constant over the life of the project. 

Integration None The project is evaluated as a standalone venture. 

Inflation None Constant dollars are used in the model. 

Salvage Value 

None 

No terminal value for resale or salvage is considered for any 

of the mining or processing assets or site infrastructure. 

Discount Rate for NPV 8% Typical for mining projects. 

Plant Annual Availability 90% @ 850 DMT/d Constant over project life. 

Run of Mine Ore Head Grades 

Tin 

Zinc 

Indium 

0.71% 

1.82% 

183 ppm 

Run of mine ore head grades remain constant over the life 

of the mine. 

Metal Recoveries 

Tin to Concentrate 

Tin to Tin Chloride 

Zinc to Concentrate 

Zinc to Metal 

Indium to Concentrate 

Indium to Sponge 

74.97% 

67.60% 

85.18% 

79.42% 

83.05% 

75.40% 

All metal recoveries remain constant over the life of the 

project as per the mass balance simulation and design 

criteria (Section 19.3). 

Metal/Chemical Prices 

Tin Metal 

Tin Chloride 

Zinc Metal 

Indium Metal 

CDN$16.25/kg 

CDN$15.23/kg 

CDN$2.70/kg 

CDN$639.67/kg 

Based on 3-year trailing average prices as per Section 22.0. 





PARAMETER VALUE NOTES 

Product Revenue 

Calculated based on conceptual smelter schedules for net 

smelter return, treatment charges and penalties as per 

Section 27.2. 

27.2 Product Revenue 

The net revenue from sale of products was determined using the three-year trailing average 

commodity prices defined in Section 22.0 along with the relevant charges for treatment by a 

smelter or refiner and penalties for any defined impurity elements in the product specifications in 

Section 22.0. Table 27-2 shows a summary of the treatment charges and annual revenue for all 

products considered in the three production cases. The methods used to define treatment 

charges, smelter returns and unit deductions are presented in the following sections. 

Table 27-2: Product Revenue Summary For All Production Options 

PARAMETER 


TIN 

CONCENTRATE 

TIN 

CHLORIDE 

ZINC/INDIUM 

CONCENTRATE 

ZINC METAL 

INDIUM 

SPONGE 

Annual 

Production Rate 

DMT/ 

year 

Product Grade wt% 46.0 wt% Sn 99% SnCl 2 

Market Price 

CDN$/ 

kg 

3,231 2,142 8,658 4,056 40.5 

$16.25/kg Sn 

$15.23/kg 

99% SnCl 2 

50% Zn, 

0.49% In 

$2.70/kg Zn, 

$639.67/kg In 

(4N) 

99.5% 95% In 

$2.70/kg Zn 

$639.67/kg In 

(4N) 

Market Price 

Adjustment 

Total Treatment 

Charges 

CDN$/ 

kg 

CDN$/ 

DMT 

N/A N/A N/A N/A 81.38% [1] 

$783.37 $0 $390.60 $0 $66,000 [2] 

Total Unit 

Deductions 

wt% 3.70% Sn 0% 8.00% Zn 0% 0% 

Annual 

Revenue 

CDN$/ 

year 

$19,677,222 $32,623,978 $10,501,992 $10,951,904 $17,486,964 

Revenue 

Relative to 

100% Market 

Price 

Percent 81.5% 100% 

54.3% for Zinc 

15% for Indium 

[3] 

100% 71.1% 

Table Notes: 

[1] Market price adjustment factor accounts for loss of indium in refining process to 4N8 grade and a price discount for 

indium sponge relative to the price for 4N indium. 

[2] Indium sponge treatment charges are per tonne of 4N8 indium metal recovered after refining losses. 

[3] Assumed value for indium from smelter credit as per discussions with zinc smelter operations in Asia with existing 

integrated indium recovery systems. Definitive value of indium credit to be confirmed. 

27.2.1 Tin Concentrate 

The tin concentrate revenue was determined based on a typical tin smelter schedule, which 

combines treatment charges per tonne of concentrate processed and unit deductions. The unit 

deductions involve subtracting part of the actual tin concentrate grade prior to calculating amount 





of tin payable by the smelter to the mine. The smelter schedule terms are summarized in Table 

27-3. 

Table 27-3: Tin Smelter Schedule Terms For Tin Concentrate Revenue Calculations 

PARAMETER UNITS VALUE NOTES 

Base Treatment Charge CDN$/DMT $473.00 Base value for all concentrates 

Low Grade Treatment Charge CDN$/DMT/1%Sn $5.50 

Penalty Treatment Charges 

Pb/Sb/Bi/As 

Cu/Zn 

F/S 

ThO 2 + U 3 O 8 

CDN$/DMT/1% 

CDN$/DMT/1% 

CDN$/DMT/1% 

CDN$/DMT/1% 

$110.00 

$55.00 

$10.00 

$110.00 

The charge is for concentrates less than 

70% tin and is $5.50 for each 1% less 

than 70% Sn. 

Individual up to 0.01% free 



Combined up to 0.3% free 

Base Unit Deduction %Sn 1.3% Base value for all concentrates 

Low Grade Unit Deduction %Sn/1%Sn 0.1% 

The unit deduction is for concentrates 

less than 70% tin and is 0.1% for each 

1% less than 70% Sn. 

Penalty Unit Deductions 

Fe or WO 3 < 2.5% 

Fe or WO 3 < 5.0% 

Fe or WO 3 < 10.0% 

Fe or WO 3 > 10.0% 

%Sn/1% 

%Sn/1% 

%Sn/1% 

%Sn/1% 

0% 

0.1% 

0.2% 

0.4% 


Individual up to 5.0% deduct one-tenth of 

impurity percentage from gross tin assay 

Individual up to 10.0% deduct one-fifth of 

impurity percentage from gross tin assay 

Individual greater than 10.0% deduct 

two-fifths of impurity percentage from 

gross tin assay 

Based on the smelter schedule terms for 46% tin concentrate with impurities defined in Table 

22-1, a total treatment charge of CDN$783.37/DMT and a total unit deduction of 3.70% Sn was 

used to define the annual revenue as CDN$19,677,222. 

27.2.2 Tin Chloride 

As explained in Section 22.0, it is assumed that tin chloride would be marketed directly to endusers 

and therefore no refining, treatment or penalty charges would apply. The final refining has 

already taken place in the pyrometallurgical process at the minesite. Therefore, product revenue 

was calculated using 100% of the tin chloride price without charges to give a total annual revenue 

of CDN$32,623,978. 

27.2.3 Zinc/Indium Concentrate 

The zinc smelter schedule terms used to determine the revenue from zinc concentrate are listed 

in Table 27-4. No penalty charges have been defined and it has been assumed for the study that 

the zinc concentrate can be produced such that impurity element charges can be avoided. 

Discussions are ongoing with traders and smelters to define credits available for contained indium 

in the zinc concentrate. No definitive payment terms for indium in zinc concentrate have been 

negotiated and the product revenue calculations were based on an indium pay factor of 15% for 

the contained indium metal value based on the pricing of 4N grade indium defined in Section 

22.0. 





Table 27-4: Zinc Smelter Schedule Terms For Zinc Concentrate Revenue Calculations 


Net Smelter Return - NSR 

(Payable Zinc) 

% of Zn contained 85.0 wt% 

Minimum Unit Deduction % Zn grade 8.00 wt% 

Calculated Unit Deduction 

% Zn grade 

Zn Assay - Zn 

Assay x NSR 

Base Treatment Charge CDN$/DMT $218.35 

Actual Zinc Price Treatment 

Charge Adjustment 

CDN$/DMT 

(Zn Price $/kg- 

$1.375/kg) x 130 

$/DMT/($/kg Zn) 

Total Treatment Charge CDN$/DMT Base + Adjustment 

Base value for all concentrates, used to 

determine the calculated unit deduction. 

Minimum deduction from the assayed 

zinc concentrate grade. 

Actual unit deduction used is the greater 

of the minimum or calculated value. 

Base value for all concentrates when Zn 

price is CDN$1.375/kg. 

Additional treatment charge if actual Zn 

price is greater than CDN$1.375/kg or 

reduction in treatment charge if Zn price 

is less than CDN$1.375/kg. 

Total of the base treatment charge and 

zinc price treatment charge adjustment. 

Based on the smelter schedule terms for 50% zinc concentrate with 0.49% indium content, a total 

treatment charge of CDN$390.60/DMT and a total unit deduction of 8.00% Zn was used to define 

the annual revenue as CDN$10,501,992 (CDN$6,436,102 from zinc and CDN$4,065,890 from 

indium). 

27.2.4 Zinc Metal 

It has been assumed that electrolytic grade zinc metal of minimum 99.5% purity would be sold 

directly to end-users and no price discounts, penalty charges or refining charges have been 

included in the revenue calculation. Revenue from zinc metal was calculated using the three year 

trailing average LME zinc market price defined in Section 22.0 to give a total annual revenue from 

zinc metal of CDN$10,951,904. 

27.2.5 Indium Sponge 

Based on discussions with indium refiners, typical off-take agreement parameters shown in Table 

27-5 were used to define the revenue from indium sponge. Payment is based on the actual 

amount of 4N8 indium recovered after the refining process. 

Table 27-5: Indium Refining Terms For Indium Sponge Revenue Calculations 


Price Discount Factor For 

Indium Sponge 

% 87.5% Typical discount for pricing indium 

sponge relative to 4N grade indium. 

Recovery of Indium in Refining 

Process 

wt% 93.0% No payment is received for indium lost 

during refining process. 

Total Refining and Penalty 

Charge 

CDN$/kg 4N8 In $66.00 Charge based on refining 95 wt% indium 

sponge to 4N8 grade indium. 

Based on the typical refining terms for 95% indium sponge, a net payment to the mine of 

CDN$431.81/kg of 95% indium sponge was used to define the annual revenue from indium 

sponge as CDN$17,486,964. 





27.3 Base Case Economic Results 

Cash flow model results for the three production options are included in Appendix G. Table 27-6 

summarizes the financial results for the three scenarios under the base case conditions. 

Table 27-6: Summary of Base Case Cash Flow Economic Model Results 

PARAMETER CASE A CASE B CASE C 


Zinc/Indium 

Concentrate 


Zinc Metal, 

Indium Sponge 

Tin Chloride, 

Zinc Metal, 

Indium Sponge 

Pre-production Capital Investment (Mine and Process) $41,170,456 $71,104,058 $90,128,610 

Working Capital $3,204,714 $6,770,290 $8,416,112 

Reclamation & Closure Costs [2] $2,871,000 $2,871,000 $2,871,000 

Annual Revenue at 90% Plant Availability 

Tin Concentrate Sales 

Tin Chloride Sales 

Zinc Concentrate Sales 

Zinc Metal Sales 

Indium in Zinc Concentrate Sales 

Indium Sponge Sales 

Total 

Annual Operating Cost at 90% Plant Availability 

Site Administration 

Mining 

Process 

Total 

Cumulative Taxes Life of Project 

Federal/Provincial Income 

Mining 

Total 

Pre-tax Financials 





Post-tax Financials 





Table Notes: 

$19,677,222 

$6,436,102 

$4,065,890 

$30,179,215 

$504,000 

$8,382,413 

$8,866,208 

$17,752,621 

$15,115,624 

$11,778,934 

$26,894,558 

$74,628,040 

$32,777,842 

23.49% 

4.26 

$47,733,481 

$18,063,806 

18.00% 

5.55 


[2] Based on reclamation cost developed by Jacques Whitford for Fire Tower Zone Scoping Study. 

$19,677,222 

$10,951,904 

$17,486,964 

$48,116,090 

$913,500 

$8,382,413 

$13,654,458 

$22,950,371 

$33,351,256 

$25,514,168 

$58,865,424 

$167,648,629 

$79,897,754 

28.87% 

3.46 

$108,783,205 

$47,184,226 

22.55% 

4.43 

$32,623,978 

$10,951,904 

$17,486,964 

$61,062,846 

$1,407,000 

$8,382,413 

$20,719,698 

$30,509,112 

$39,852,551 

$29,690,587 

$69,543,137 

$200,091,547 

$93,411,456 

27.37% 

3.65 

$130,548,409 

$54,962,773 

21.39% 

4.67 

Case B shows a slight increase in internal rate of return over Case A as a result of making the 

additional investment for hydrometallurgical production of zinc and indium. Case B also increases 

the revenue potential for sale of indium as indium sponge (which is recognized in the indium 

metal industry as an intermediate in the manufacture of high purity indium end use products) 

relative to the sale of indium based on indium contained in zinc concentrate. 

When making the additional investment to produce tin chloride, the internal rate of return for the 

project actually decreases. This, along with the additional risk of entering the tin chloride market, 

leaves little incentive for pursuing Case C. Figure 27-1 and Figure 27-2 illustrate the cumulative 

cash flow for each year during the project for Cases A, B and C, before and after taxes, 

respectively. 





$250,000,000 

Case A 

$200,000,000 

Case B 

Case C 

Pre-Tax Cumulative Cash Flow (CDN$) 

$150,000,000 

$100,000,000 

$50,000,000 

$0 

-$50,000,000 

-$100,000,000 

Notes: 

Case A: Production of tin concentrate 

and zinc/indium concentrate 

Case B: Production of tin concentrate, 

zinc metal and indium sponge 

Case C: Production of tin chloride, zinc 

metal and indium sponge 

-$150,000,000 

-1 1 2 3 4 5 6 7 8 9 10 11 

Project Life (Years) 

Figure 27-1: Cumulative Project Pre-Tax Cash Flow For Different Production Options 

$250,000,000 

Case A 

$200,000,000 

Case B 

Case C 

Post-Tax Cumulative Cash Flow (CDN$) 

$150,000,000 

$100,000,000 

$50,000,000 

$0 

-$50,000,000 

-$100,000,000 

Notes: 

Case A: Production of tin concentrate 

and zinc/indium concentrate 

Case B: Production of tin concentrate, 

zinc metal and indium sponge 

Case C: Production of tin chloride, zinc 

metal and indium sponge 

-$150,000,000 

-1 1 2 3 4 5 6 7 8 9 10 11 

Project Life (Years) 

Figure 27-2: Cumulative Post-Tax Cash Flow For Different Production Options 





27.4 Sensitivity Analysis 

The sensitivity of the post-tax internal rate of return for the three production scenarios under 

consideration for development of the Mount Pleasant property is illustrated by Figure 27-3 to 

Figure 27-5 for an 850 tonne of ore per day operation. 

At an ore production rate of 850 tonne per day, the earning potential of the project for all three 

production cases has been evaluated based on a capital and operating cost estimate accuracy in 

the range of minus 35% to plus 35%; and to the value of tin, zinc and indium commodities in the 

range of +/- 35% of the three year trailing average prices. 

40.00% 

35.00% 

Tin M etal Value 

Zinc M etal Value 

Indium M etal Value 

Post-Tax Internal Rate of Return (%) 

30.00% 

25.00% 

20.00% 

15.0 0% 

10.0 0% 

Capital Costs 

Operating Costs 

Not es: 

1.) CDN t o US exchange = 1.10 

2.) Project lif e = 10 years 

3.) Plant capacit y = 850 t pd ROM ore 

4.) Plant online availabilit y = 90% 

5.) ROM t in grade = 0.71% 

6.) ROM zinc grade = 1.82% 

7.) ROM indium grade = 183 ppm 

8.) Base t in met al value = CDN$16.25/ kg 

9.) Base zinc met al value = CDN$2.70/ kg 

10.) Base indium met al value = CDN$639.67/ kg 

11.) Base capital cost = CDN$41.2 million 

12.) Base operating cost = CDN$17.8 million/year 

13.) Base operating earnings = CDN$30.2 million 

14.) Annual inf lat ion = Nil 

5.00% 

0.00% 

-60 -50 -40 -30 -20 -10 0 10 20 30 40 50 60 

Change from Base Case Value (%) 

Figure 27-3: Sensitivity Analysis of the Post-Tax Internal Rate of Return for Production Case 'A' Relative to 

Changes in the Commodity Values, Capital and Operating Costs 

Case A for production of tin and zinc concentrates is the most sensitive of the three production 

cases to changes in operating costs, capital costs and tin pricing. However, the earning potential 

of Case A is not as sensitive to indium and zinc metal pricing as the other two production 

scenarios where indium sponge and zinc metal are produced. For Case A, a 25% decrease in the 

tin price limits the economic viability of the project and a 35% decrease produces no net post tax 

IRR. On the other hand, a 5% increase in the tin metal price from CDN$16.25 to CDN$17.06 

increases the base case post-tax IRR by from 18.0% to 20.3%. 

Assuming that metal recovery through the process remains constant, the sensitivity of the IRR to 

individual changes in tin, zinc and indium ore grade would have the same effect as an equivalent 

percent change in metal pricing. 





40.00% 

35.00% 





30.00% 

25.00% 

20.00% 

15.0 0% 

10.0 0% 

Capital Costs 


Not es: 


2.) Project lif e = 10 years product ion 










12.) Base operat ing cost = CDN$23.0million/year 

13.) Base operat ing earnings = CDN$48.1 million 


5.00% 

0.00% 

-60 -50 -40 -30 -20 -10 0 10 20 30 40 50 60 


Figure 27-4: Sensitivity Analysis of the Post-Tax Internal Rate of Return for Production Case 'B' Relative to 


The analysis of the post-tax IRR relative to the accuracy of the capital and operating cost 

estimates for Case B demonstrated less sensitivity than for Case A. The earning potential of the 

project is considered positive within the accuracy of the capital and operating cost estimate of 

minus 10% to plus 35% and, in fact, remains positive (greater than 12% post tax IRR) across the 

range of commodity pricing variability assumed for the study (minus 35% to plus 35%). The 

economic viability of the Case B production option is less sensitive to variations in the tin market 

price and operating costs than Case A, which will result in a more economically robust operation. 








40.00% 

35.00% 

Tin Chloride Value 




30.00% 

25.00% 

20.00% 

15.0 0% 

10.0 0% 

Capital Costs 


Not es: 


2.) Project lif e = 10 years product ion 






8.) Base t in chloride value = CDN$15.23/ kg 




12.) Base operat ing cost = CDN$30.5million/year 


14.) Annual inf lat ion Nil 

5.00% 

0.00% 

-60 -50 -40 -30 -20 -10 0 10 20 30 40 50 60 


Figure 27-5: Sensitivity Analysis of the Post-Tax Internal Rate of Return for Production Case 'C' Relative to 


The economic analysis for Case C is very similar to that of Case B and has approximately the 

same level of sensitivity of the post-tax IRR to changes in capital costs, operating costs and 

commodity pricing. There is little merit in pursuing the Case C option over Case B as there was 

no increase in the post-tax IRR to justify the additional capital and operating expenses associated 

with production of tin chloride from tin concentrate. 




Figure 27-6 to Figure 27-8 show the sensitivity of the post-tax net present value for the same 

three production scenarios. 





100.0 



Post-Tax Net Present Value (MM CDN$) 

80.0 

60.0 

40.0 

20.0 


Capital Costs 


Not es: 




4.) Plant online availability = 90% 








12.) Base operat ing cost = CDN$17.8 million/ year 



0.0 

-20.0 

-60 -50 -40 -30 -20 -10 0 10 20 30 40 50 60 


Figure 27-6: Sensitivity Analysis of the Post-Tax Net Present Value for Production Case 'A' Relative to Changes in 

the Commodity Values, Capital and Operating Costs 

100.0 




80.0 

60.0 

40.0 

20.0 


Capital Costs 


Not es: 




4.) Plant online availability = 90% 








12.) Base operat ing cost = CDN$23.0 million/year 



0.0 

-20.0 

-60 -50 -40 -30 -20 -10 0 10 20 30 40 50 60 


Figure 27-7: Sensitivity Analysis of the Post-Tax Net Present Value for Production Case 'B' Relative to Changes in 






100.0 

Tin Metal Value 



80.0 

60.0 

40.0 

20.0 


Capital Costs 


Not es: 








8.) Base t in chloride value = CDN$15.23/ kg 



11.) Base capit al cost = CDN$90.1 million 

12.) Base operat ing cost = CDN$30.5 million/year 



0.0 

-20.0 

-60 -50 -40 -30 -20 -10 0 10 20 30 40 50 60 


Figure 27-8: Sensitivity Analysis of the Post-Tax Net Present Value for Production Case 'B' Relative to Changes in 






SECTION 28.0 PROJECT EXECUTION 

28.1 General 

The project is likely to continue with a development program to define an optimum mine plan, 

process chemistry and process flowsheet that will provide more definitive design parameters for 

mine and metallurgical plant design and for economic assessment. A feasibility study would be 

conducted based on completion of a development program and the successful completion of test 

programs that would clearly define operating parameters that influence product quality and yield. 

The execution of the project through the next phase of development studies will include: 

 

 

 

 

 

 

further exploration and drilling programs within the North Zone to improve on grade and 

tonnage definition within the various ore blocks; 

refinements to the geological model and mine plan to confirm production rates and grade 

control; 

the development of the flotation process technology based on batch flotation, lock cycle and 

pilot plant tests to confirm tin and zinc-indium concentrate grade and recovery, development 

of parameters for definition of optimum reagent consumptions and confirmation of 

concentrate quality relative to smelter schedules; 

the development of the hydrometallurgical process technology based on bench scale and 

pilot testing to confirm quality of zinc metal and indium sponge, reagent consumption and 

flowsheet design parameters; 

development of end user preliminary agreements and confirmation of product specification 

and price schedule, and; 

continuing development of wastewater treatment process technology based on wastewater 

characteristics defined by the pilot programs. 

28.2 Existing Site Development 

The existing site remains in care and maintenance and the mine is currently flooded. 

The proposed development of the mine and refurbishment of the processing facilities will be 

dependent on the outcome of the test programs and feasibility study. 

The refurbishment of the tailings pond dam was completed in 2008 to assure compliance with 

present day guidelines. The reuse of the existing tailings pond for the proposed project is 

considered viable. The addition of a sludge storage pond for disposal of sludge from the 

wastewater treatment system is currently under review. The design for the sludge pond was 

completed in 2009 and approved for construction by NBDOE. Construction of the sludge pond for 

commercial production is on hold pending results of the feasibility and finalized design of a 

wastewater treatment system. 

The reuse of certain existing site buildings (concentrator building) with upgrades to allow for the 

installation of the comminution circuit, concentrator flotation circuit and hydrometallurgical circuit 

has been proposed. Preliminary design of the process equipment layout has indicated that an 

addition to the existing concentrator building will be required to house indium and zinc 

hydrometallurgical operations. The plant layout as defined by this study is considered preliminary 





and the scope of work for refurbishment of existing buildings for the proposed project would be 

dependent on the outcome of the feasibility study. 

The project as defined herein is based on the reclaim of process water from the tailings pond. 

Existing power transmission lines and site transformer will be reused for the proposed project. 

Therefore, the existing site infrastructure for supply of electrical power and process water will not 

require extensive upgrades. 

The existing mine water treatment system was installed for treatment of the mine water during 

care and maintenance of the property. The treated mine water is routed to the existing tailings 

pond and the final discharge is currently controlled through the decant structure (refurbished in 

2008) and monitored to assure compliance with the final effluent guidelines as defined by the 

Department of Environment. The existing mine water treatment system operates within 

compliance and modifications to the existing mine water treatment system are not required for 

continued care and maintenance of the property. A fully integrated wastewater treatment system 

(capable of treating mine water, tailings and wastewater from the hydrometallurgical operations) 

is planned for the proposed project pending the results of the feasibility study. 

28.3 Process Technology Development Plan 

In addition to the preliminary assessment of the production economics as defined by this study, 

bench scale testing is in progress to develop an optimum process technology for removal of 

fluoride from wastewater, confirmation of concentrator (flotation) flowsheet design and for the 

production of indium sponge by hydrometallurgical processing. The processing flowsheets as 

defined by Appendix B of the Independent Technical Report are conceptual with revisions in 

progress relative to the bench scale and pilot test programs. The flowsheet design as proposed 

for the economic assessment is based on standard industrial processing practices and Adex 

Mining Inc. is developing novel process technology to optimize on the removal of fluoride from 

wastewater and to achieve optimum purity of indium sponge. The development of the process 

technology for wastewater and hydrometallurgical processing using bench scale development 

methods is presently under contract to Thibault & Associates Inc. Test programs for development 

of the concentration process are being completed by SGS Lakefield. Based on the results of the 

bench scale development programs, a pilot program is being planned for first quarter of 2010. 

28.4 Project Schedule 

The development programs, including the bench scale and pilot test programs for the 

development of the concentration (flotation) process and the indium / zinc hydrometallurgical 

process are planned for completion as of end of second to third quarter of 2010. In the event that 

the pilot programs are successful, the feasibility leading to a production decision is proposed for 

third to fourth quarter of 2010. 





SECTION 29.0 INTERPRETATION AND CONCLUSIONS 

29.1 General 

The primary objectives of the North Zone preliminary assessment study were to review previous 

development studies completed on the property, identify alternative production opportunities for 

tin, zinc and indium that have commercial potential and develop a preliminary economic 

assessment for each option. The results of the preliminary assessment will be used by Adex 

Mining Inc. to focus efforts on the commercial strengths of the North Zone and to establish a 

production strategy for the North Zone in addition to the production strategy that was previously 

developed for co-production of molybdenum and tungsten from the Fire Tower Zone. 

29.2 Geology 

A detailed technical assessment of the North Zone mineral resources estimate was completed to 

determine an optimum grade for run-of-mine ore relative to the production economics. The 

objectives were based on production options for tin, indium and zinc with provisions to control the 

arsenic content in run-of-mine ore. 

Preliminary production economic models were developed as an integral part of the study in 

addition to the three dimensional geological models to more fully characterize the 43-101 

compliant resource estimates prepared on the North Zone in 2009 by Watts Griffis and McOuat 

and SGS - Geostat. A total of 97 high grade tin-indium and zinc blocks of mineralization from the 

surface to 250 meters depth were identified from within the North Zone inferred and indicated 

resources. The blocks were subsequently modelled using GEMCOM solid models to identify 

undiluted tonnages of 1,894,000 tonnes at 0.76% tin, 1.93% zinc and 212 gram per tonne of 

indium from the indicated resource and 1,000,000 tonnes at 0.74% tin, 1.82% zinc and 154 per 

tonne of indium from the inferred resource. Once the appropriate dilution and recovery factors 

are applied, these results can be used to estimate a tonnage and head grade for preliminary 

assessment level economic analysis. 


After extensive review of mine accessibility through existing ramps and historical mining records 

from the 600 Adit, complete with three dimensional modeling of the resources, a conceptual mine 

plan was developed for the preliminary economic assessment. After a review of alternative mining 

methods, an open stope concept was identified with temporary rib pillars with no backfill. Based 

on GEMCOM solid models referred to in 29.2 above and a preliminary assessment of the 

proposed mine plan, it was concluded that the conceptual mine plan is capable of sustaining a 

production rate of 850 tonnes per day for a period of 10 years. 

The mine development layout and stope scheduling needs further investigation and calibration 

work to increase the level of certainty. Therefore, there is a need for more exploration and 

delineation drilling in the vicinity of the upper parts of the DTZ lodes. 

29.4 Processing 

Three mineral processing scenarios were considered in the preliminary assessment with varying 

levels of upgrading to different final products as follows: 





Case A: 

Case B: 

Case C: 

Production of tin concentrate and indium-bearing zinc concentrate using 

crushing, grinding, flotation and gravity separation unit operations. 

Production of tin concentrate, indium sponge and zinc metal using the Case A 

process plus add-on hydrometallurgical operations for indium/zinc production 

including leaching, solution purification, solvent extraction, cementation and 

electrowinning operations. 

Production of tin chloride, indium sponge and zinc metal using the Case B 

process plus add-on pyrometallurgical treatment of lower grade tin concentrate to 

produce tin chloride using high temperature chlorination, off-gas treatment, 

solution purification and crystallization unit operations. 

The design of the conceptual flowsheets was based on interpretation of various metallurgical test 

programs on the North Zone (1960 to present), technical publications on metallurgical processing 

of similar ores and from previous operating/design experience on Mount Pleasant ores since 

1981. The conceptual flowsheets employ industrial standard unit operations and the efficiency of 

each unit operation has been predicted by Thibault & Associates Inc. by modelling based on 

standard operating practices for metallurgical operations of similar type ore. Bench scale / pilot 

testing of the flowsheets will be required to confirm flowsheet configuration, equipment sizing and 

operating parameters that impact on operating cost (such as reagent and electrical power 

consumption). 

The hydrometallurgical process makes use of conventional process equipment for production of 

indium sponge and zinc metal; however, the design of a process flowsheet to separate tin, indium 

and zinc and obtain an optimum purity for indium sponge and zinc metal is considered proprietary 

technology that is currently being developed by Adex Mining Inc. 

The overall technical viability of the proposed hydrometallurgical process technology is based on 

purity of indium and zinc. Preliminary specifications for indium sponge have been developed as 

part of the study and are based on initial discussion with potential end users. Further testing of 

the proposed flowsheet will be required to assure product purity and acceptance by the end 

users. 

29.5 Environmental 

The environmental impact of the proposed project has not been fully assessed and is subject to 

further review. Treatment technologies as defined by the preliminary assessment for wastewater 

and tailings from the proposed metallurgical flowsheet are conventional and are considered 

commercially proven. Wastewater treatability test program are required to assess optimum 

operating parameter and to confirm compliance with environmental guidelines. 

29.6 Economic Analysis 

The results of the preliminary economic assessment indicate that there are two potentially viable 

production options for the North Zone including the co-production of tin concentrate and indiumbearing 

zinc concentrate and the added value production of indium sponge and zinc metal from 

the indium-zinc concentrate. For a processing capacity of 850 tonnes per day and a project life of 

10 years, the preliminary economic assessment shows a pre-tax internal rate of return (IRR) for 





production of tin and indium-zinc concentrate (Case A processing option) at 23.49% and for 

production of tin concentrate, indium sponge and zinc metal (Case B processing option) at 

28.87%. Further assessment will be required to confirm the revenue potential for indium 

contained in zinc concentrate (based on a definitive smelter return for indium and zinc) and to 

confirm the proposed hydrometallurgical flowsheet based on the results of bench scale and pilot 

test programs. 

The economic assessment considered production of tin chloride as an added value tin product. 

The pre-tax IRR of 27.37% for the production of tin chloride, indium sponge and zinc metal (Case 

C) was considered positive; however, the pre-tax IRR is slightly lower than for Case B, which 

requires less capital investment than Case C. The high capital investment, high operating costs 

and marketability of tin chloride in specialized markets favours the production of tin concentrate 

as a preliminary development strategy. 

It is noted from the sensitivity analysis that an increase in the capital or operating cost within the 

accuracy of the estimate for all production cases considered (defined as minus 10% to plus 35%) 

still retains a positive post-tax IRR. Based on an assessment of the sensitivity of the three 

production cases to changes in the capital and operating costs, the earning power for the 

hydrometallurgical process (Case B) is considered to be slightly stronger than that of the standalone 

concentrator process (Case A). Similarly, a decrease in the metal prices or run-of-mine 

grades will have less of an impact on the hydrometallurgical development concept (Case B). 

Although the potential economic viability of the process technologies as defined herein is 

considered strong, the economics are very dependent on the use of a blend of new and used 

equipment for the concentrator. Used equipment was readily available for procurement during the 

preparation of this report; however, the ability to access used equipment in the future cannot be 

verified. Nevertheless, the market for used crushing, grinding and flotation equipment as defined 

by the study has been relatively strong over the last three years and the study is based on price 

trending of used relative to new equipment pricing. 





SECTION 30.0 RECOMMENDATIONS 

30.1 Process Development 

In order to develop the North Zone, it is recommended that Adex Mining Inc. continue 

development of the concentration and hydrometallurgical process flowsheet to assure optimum 

product quality and yield. This would include bench scale and pilot test programs at a scale that 

will enable scale-up and design of the production facility. As an integral part of the metallurgical 

test program, wastewater and tailings generated by the testing should be used to confirm the 

proposed treatability methods. The budgetary cost for the bench scale and pilot programs is 

estimated in the range of CDN$1.0 to 1.6 million. 

30.2 Geology 

An indicated NI 43-101 compliant resource classification is required for all of the sub-zones to be 

incorporated into a bankable feasibility study. It is recommended that a program of 2,500 metres 

of diamond drilling, surface sampling and additional indium analyses of historical core be 

completed to ensure that #1-3 Tin Lode, North Adit and #5 Tin Lode can be upgraded from a NI 

43-101 inferred resource level to an indicated resource level. Diamond drilling is also 

recommended in the vicinity of the projected path of proposed decline accessing the Deep Tin 

Zone in order to complete geotechnical assessment of its roof pillar. The total cost of the program 

is expected to be approximately CDN$650,000. 


Future work should include stope modeling and sequencing. This can be initiated after additional 

exploration and delineation drilling campaign is completed. Estimated cost for this exercise is 

approximately $20,000. 





SECTION 31.0 REFERENCES 

Adex Mining Inc., Mount Pleasant- Report Feasibility Study, New Brunswick Volume 3 of 3, 

(1997) 

Adex Mining Inc. (1995) - Summary Pre-feasibility Study, Adex Mineral Limited, Mount Pleasant 

Property, 15 p. 

Adex Mining Corp., Volume 1 Prefeasibility Study Piskahegan Resources Limited Mount Pleasant 

Property, (1995) 

Adex Mining Inc., Volume 3 CESL- Preliminary Mill Design Piskahegan Resources Limited Mount 

Pleasant Property, (1995) 

Adex Mining Inc. (Nov. 2006) - Report of Work on Mount Pleasant Claim Group, covering 

exploration work on 02 Claims, 227950–338051 in Group 1505 held under prospecting license 

14338 by Adex Mining Inc. from October, 2005 to July, 2006, report, 8 p., plus Appendices. 

ADI, Mount Pleasant Mine Water Treatment Study Adex Mining Inc. Bench Scale Treatability, 

(2008) 

Aker Solutions Canada Inc. (2008) - Adex Minerals Corp. Mount Pleasant Fire Tower Zone 

Scoping Study. 

Atkinson, J.R., Kooiman, G. and Coates, H.J. (1981) - Geology of Mount Pleasant Tungsten, New 

Brunswick, Canadian Mining Journal, pp. 73-75. 

Boyd, T. (Sep. 2008) - Report of Work Consisting of Diamond Drilling with Additional Sampling of 

Historical Drill Core and Geochemical Analysis on the Mount Pleasant Claim Group (Phase 1 of 

2008 work Program), assessment report prepared for Adex Mining Inc., 23 p., plus Appendices. 

Behre Dolbear & Company (1963) - Appendices to Preliminary Report of August 5, 1963, on 

Estimates of Ore Reserves, North Zone-Mount Pleasant, Charlotte County, New Brunswick, 

Canada, prepared for Mount Pleasant Mines Limited. Appendix A-F. 

Billiton Canada Ltd. (1985a) - Mount Pleasant Tungsten (MPT), Part 1, The Fire Tower 

Orebodies: report under cover of Mount Pleasant Tungsten Mine, St. George, New Brunswick, 23 

p. 

Billiton Canada Ltd. (1985b) - Mount Pleasant Tungsten (MPT), Part II, The North Zone Tin: 

report under cover of Mount Pleasant Tungsten Mine, St. George, New Brunswick, 40 p. 

Brunswick Tin Mines Ltd. (1976) - Summary Report on the Geology of the Mount Pleasant 

Project, 371 p. 

Canadian Dam Association (2007) - Dam Safety Guidelines 2007, 82 p. 





Canadian Institute of Mining, Metallurgy and Petroleum (2002) - CIM Standards on Mineral 

Resources and Reserves, Definitions and Guidelines Adopted by CIM Council November 14, 

2004, 10 p. 

CANMET, The CANMET Ferric Chloride Leach Process for the Treatment of Bulk Base Metal 

Sulphide Concentrates, Report MSL 89-67, (June 1989). 

CANMET, Progress Report #1, Mount Pleasant Tin Process, Nova Gold Resources Inc., 1990. 

CANMET, Process Development for Recovery of Tin and Indium From Mount Pleasant North Tin 

Zone, (1995) 

Charter Consolidated Services Ltd., Engineering of a Chloride Roasting Process for Recovering 

Tin From Complex Ores and Residues, (1984). 

Cominco Engineering Services LTD. Vancouver, B.C., Recovery of Tin by Flotation for NovaGold 

Resources Inc. Mt. Pleasant Property, (1991) 

Cooperation Agreement on Mineral Development, An Investigation into the Recovery of Indium 

and Bismuth from Mount Pleasant Ore Samples, (1995) 

Cooperation Agreement on Mineral Development, Capital and Operating Cost Study, Mount 

Pleasant Tin Project, New Brunswick, For NovaGold Resources Inc., (1991) 

Cooperation Agreement on Mineral Development, Recovery of Tin by Flotation for NovaGold 

Resources Inc. Mount Pleasant Property, New Brunswick, (1991) 

Cooperation Agreement on Mineral Development, Report on the Production of a Sulphide 

Concentrate From Mount Pleasant Ore, New Brunswick, (1993) 

D.M. Fraser Services Inc. (1994) - Financial Summary, Piskahegan Resources Limited, Mount 

Pleasant Property. 

D.M. Fraser Services Inc. (1995) - Pre-feasibility Study, Mount Pleasant Property, prepared for 

Adex Mining Corp., 83 p. 

Davy Canada Inc. (1990) - Watts, Griffis and McOuat Limited for Nova Gold Resources Inc., 

Mount Pleasant Tin Feasibility Study. 

Flett, D.S., Holt, G., Voyzey, R.B.G, Chaston, I.R.M., Chloride Roasting Process for Recovery of 

Tin From Complex Ores and Residues, Transactions of the Institute of Mining and Metallurgy, 

(1984). 

Groupe Minier Sullivan Ltee, Brunswick Tin Mines LTD Comparative Capital and Operating 

Costs Flotation and Gravity Flowsheets, (1976) 

Hosking, K.F.G. (1985) - Report on the North Tin Zone of Mt. Pleasant, New Brunswick, Canada, 

Mount Pleasant Tungsten Mine, report to Billiton Canada Ltd. (Included in their 1985b report), 6 

p. 





Jacques Whitford, Background and Documentation for Tailings Flooding Contingency Plan-Mount 

Pleasant Mine, (2008a) 

Jacques Whitford, Scoping Level Review of Requirements and Costs Associated with 

Environmental Regulatory Requirements to Re-Open the Mount Pleasant Mine,(2008b) 

Jacques Whitford Stantec Limited (2009) - Baseline Aquatic Survey for Environmental Effects 

Monitoring, Mount Pleasant Property, New Brunswick. 

Kooiman, G.J.A. (2005), Correspondence to Adex re: Exploration Potential at Mount Pleasant, 4 

p. 

Kooiman, G.J.A (2004) - Exploration and Development, 20-year Summary Report, Mount 

Pleasant Property, prepared for Adex Mining Inc., 16 p. 

Kooiman, G.J.A., McLeod, M.J. and Sinclair, W.D. (1986), Porphyry Tungsten-Molybdenum 

Orebodies, Polymetallic Veins and Replacement Bodies, and Tin-Bearing Greisen Zones in the 

Fire Tower Zone, Mount Pleasant, New Brunswick: in Economic Geology, v. 81, pp. 1356-1373. 

Kvaerner Metals Davy Ltd. (1997) - Adex Mining Inc. Mount Pleasant Feasibility Study, New 

Brunswick: Reference 144900, v. I, II and III (including appendices). 

Lac Minerals Limited, Mount Pleasant Tin Feasibility Report, (1988). 

Lac Minerals Limited, A Pilot Plant Investigation of The Recovery of Tin from Samples of Mount 

Pleasant Ore, (1987). 

Lakefield Research, A Preliminary Investigation of the Recovery of Tin from a Sample of Mt. 

Pleasant Tin Ore Submitted by Piskahegan Resources LTd. Progress Report No. 3, (1995). 

Lakefield Research, A Preliminary Investigation of The Recovery of Zinc Indium and Bismuth 

from Mount Pleasant Ore Samples Submitted by Watts, Griffis & Mcouat LTD. Progress Report 

No.1. (1994). 

Lakefield Research, An Investigation of the Recovery of a Selective Zn-In Concentrate from a 

Mount Pleasant Project Sample, Progress Report No. 1, (1997). 

Minerals Associates, Summary Report Mineral Processing Development Programs Phase 2 

Detailed Laboratory Testwork Mount Pleasant Mine, (1996). 

Mount Pleasant Mines Limited (1963) - Progress Summary and Position at April, 1963. 

Mount Pleasant Tungsten Mine (1985) - Mount Pleasant Tungsten Mine Geological Department 

Mothball Report. Mothball Report, v. I. 

Natural Resources and Energy, Mineral Resources, New Brunswick (1990) - Geology, 

Geochemistry, and Related Mineral Deposits of the Saint George Batholith, Charlotte, Queens, 

and Kings Counties, New Brunswick. M.J. McLeod, Mineral Resource Report 5, 169 p. 





Nieuwenhuis, J.A.M., Recovery of Tin by Chlorination in a Fluidized Bed, Advances in Extractive 

Metallurgy, Institute of Mining and Metallurgy, (1968). 

Parrish, I.S. (1973) - Correspondence from Brunswick Tin Mines Ltd., Sullivan Mining Group re 

1973 Ore Reserves, North Zone, Tin #4 Lode, 2 p 

Parrish, I.S. and Tully, J.V. (1978) - Porphyry Tungsten at Mt. Pleasant, N.B. Economic Geology 

and Mineralogy: in the CIM Bulletin, dated June 28 th , pp. 93-100. 

Resources & Technology Marketing Services Pty Limited (2006) - A Summarized Market Review 

of the Global Tin Industry for Metals Exploration Limited. 

Roskill Information Services Ltd., (2004) - The Economics of Tin Eighth Edition, 2004, Section 

7.2. 

RPC, Mount Pleasant Mine Flowsheet Development Bench Scale Arsenic Flotation and SCoping 

Tungsten Leach Tests, (2009) 

Ruitenberg, A.A. (1967) - Stratigraphy, Structure and Metallization, Piskahegan-Rolling Dam Area 

(Northern Appalachians, New Brunswick, Canada), Leidse Geologiche medeligon, v. 40, pp. 79- 

120. 

SGS Lakefield Research Limited (Oct. 2008) - An Investigation by High Definition Mineralogy into 

The Mineralogical Characteristics of Seven Head Samples From Mount Pleasant Mine, New 

Brunswick, project 11911-001, MI5010-May08, MI5012-May08, MI5013-May08, MI5027-Jun08, 

MI5001-Aug08, – Draft Report. 

SGS, An Investigation by High Definition Mineralogy into The Mineralogical Characteristics of 

Seven Head Samples from Mount Pleasant Mine, New Brunswick, (2008a) 

SGS, Mount Pleasant Fire Tower Zone Wolfram Phase 1A Test Program, (2008b) 

SGS, Mount Pleasant Fire Tower Zone Wolfram Phase 1B Conceptual Flow Sheet Test Program, 

(2008c) 

SGS, Mount Pleasant Fire Tower Zone Wolfram and North Zone Tin Primary Grind Jigging Test 

Work, (2008d) 

SGS, Mount Pleasant North Zone Tin Phase 1A Test Program, (2008e) 

SGS, Mount Pleasant North Zone Tin Phase 1B Conceptual Flow Sheet Test Program, (2008f) 

Sinclair, W.D., Kooiman, G.J.A., Martin, D.A. and Kjarsgaard, I.M. (2005) - Geology, 

Geochemistry and Mineralogy of Indium Resources at Mount Pleasant, New Brunswick, Canada: 

in Press, Ore Geology Reviews, 23 p. 

Sinclair, W.D. (Lefebure, D.V. and Ray, G.E. (editors)). ( 1995a) - Porphyry Mo (Climax-type): in 

Selected British Columbia Mineral Deposit Profiles, v. 1 – Metallics and Coal, British Columbia 

Ministry of Energy of Employment and Investment, Open File 1995-20, pp. 105-108. 





Sinclair, W.D. (Lefebure, D.V. and Ray, G.E. (editors)). (1995b) - Porphyry Sn: in Selected British 

Columbia Mineral Deposit Profiles, v. 1 – Metallics and Coal, British Columbia Ministry of Energy 

of Employment and Investment, Open File 1995-20, pp. 97-100. 

Sinclair, W.D., Kooiman, G.J.A. and Martin, D.A. (1988) - Geological Setting of Granites and 

Related Tin Deposits in the North Zone, Mount Pleasant, New Brunswick: in Current Research, 

Part B, Geological Survey of Canada, Paper 88-1B, pp. 201-208. 

Stantec, Baseline Aquatic Survey for Enviromental Effects Monitoring, Mount Pleasant Property, 

New Brunswick, (2009) 

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New Brunswick Canada, (1979) 

Strathcona Mineral Services Limited (1979) - Feasibility Study of the Brunswick Tin Project, 

Mt. Pleasant, New Brunswick, Canada, prepared for Billiton Exploration Canada Limited, v. II, 

Final Report, v. III Drawings. 

T. Clarke & Associates Consulting Engineers. (1964) - Unpublished Report on Indicated ore on 

Mount Pleasant Property, July, 1964. 28p. 

United States Geological Survey (2007) - 2007 Minerals Yearbook for Tin. 

Watts, Griffis and McOuat Limited (P. Dunbar, A. Hara, R. de l'Etoile and T. Boyd) (2006) - A 

Technical Review of the Mount Pleasant Property, Including A Mineral Resource Estimate on the 

Fire Tower Zone, Southwestern New Brunswick for Adex Mining Inc. 

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Technical Review of the Mount Pleasant Property Including An Updated Mineral Resource 

Estimate on the Fire Tower Zone, Southwestern New Brunswick for Adex Mining Inc., 155 pp. 

Watts, Griffis and McOuat Limited (P. Dunbar and Robert de l'Etoile of SGS-GeoStat Ltd. 

(2009) - A Technical Review of the Mount Pleasant Property, Including A Mineral Resource 

Estimate on the North Zone, Southwestern New Brunswick for Adex Mining Inc., 228 p 





SECTION 32.0 DATE AND SIGNATURE PAGE AND CERTIFICATES OF QUALIFIED 

PERSONS 

32.1 Date and Signature Page 

The undersigned have prepared the technical report entitled “NI 43-101 Independent Technical 

Report Mount Pleasant North Zone Preliminary Assessment”, with effective date January 22 nd , 

2010. The format and content of this report are intended to conform to form 43-101F1 of National 

Instrument 43-101 (NI 43-101) of the Canadian Securities Administrators. 

“J. Dean Thibault” 

“Tim R. McKeen” 

J. Dean Thibault, P. Eng. Tim R. McKeen, P. Eng. 



“Stephanie M. Scott” 

Stephanie M. Scott, P. Eng. 


“Trevor Boyd” 

Trevor Boyd, P. Geo. 


“Andrew Hara” 

Andrew Hara, P. Eng. 

Hara Mining Enterprises Inc. 





32.2 Certificates of Qualified Persons 

Certificates of qualified persons responsible for preparation of this Technical Report are included 

in the following pages. 





J. Dean Thibault, P.Eng., Principal / Senior Process Chemical Engineer 

I, J. Dean Thibault, of Fredericton, New Brunswick, Canada, author of Sections 1.1, 1.5, 1.6, 3.0, 

16.0, 25.0, 26.0, 27.0, 28.0, 29.1, 29.4, 29.5, 29.6 and 30.1 of the report entitled, "NI 43-101 

Independent Technical Report Mount Pleasant North Zone Preliminary Assessment" with 

effective date January 22 nd , 2010, hereby certify that: 

I am a chemical engineer and principal of Thibault & Associates Inc. with a business address 

at 330 Alison Blvd., Fredericton, New Brunswick, Canada E3C 0A9. 

I am a graduate of Chemical Engineering from the University of New Brunswick 1980. 

I have practiced in my profession as a process chemical engineer continuously for a total of 

29 years since graduation. 

I am a member in good standing of the Association of Professional Engineers and 

Geoscientists of New Brunswick (APEGNB) with Registration #3689. 

My relevant experience for the purpose of the Technical Report includes: 

i) past experience as a consultant on numerous metallurgical operations and projects 

around the world for technical and economic assessments, process development and 

design, operations expansions and troubleshooting; 

ii) past experience on scoping, pre-feasibility and feasibility studies for mining projects; and 

iii) past experience as process engineer for NBDNR's technical programs, assessment of 

feasibility studies and development of process technologies, and;. 

iv) past experience as a concentrator and hydrometallurgical operations process engineer. 

Since 1981, I have worked periodically on various studies related to the development of the 

Mount Pleasant property; including providing technical input to the 2008 report on "Adex 

Minerals Corp. Mount Pleasant Fire Tower Zone Scoping Study" (Aker, 2008). 

I am specifically responsible for preparing Sections 1.1, 1.5, 1.6, 3.0, 16.0, 25.0, 26.0, 27.0, 

28.0, 29.1, 29.4, 29.5, 29.6 and 30.1 of the Technical Report and for supervising the 

preparation of the overall Technical Report; however, with respect to the sections of the 

Technical Report not prepared by Thibault & Associates Inc., I have relied upon the qualified 

persons responsible for preparing such sections. 

I visited the Mount Pleasant property on several occasions to gather information for the 

Technical Report, with my most recent site visit occurring on September 29 th , 2009. 

I am not aware of any material fact or material change with respect to the subject matter of 

the Technical Report that is not reflected in the Technical Report, the omission to disclose 

which would cause the Technical Report to be misleading. 

As of the date of this certificate; to the best of my knowledge, information and belief; the 

Technical Report contains all scientific and technical information that is required to be 

disclosed to make the Technical Report not misleading. 

I have no interest, direct or indirect, in the Mount Pleasant Property or in other Adex 

properties, nor do I have any beneficial interest, direct or indirect, in the securities of Adex 


I am independent of the issuer as defined by Section 1.4 of NI 43-101. 

I have read National Instrument 43-101 and the Technical Report has been prepared in 

compliance with National Instrument 43-101 and Form 43-101F1. 

Signed and dated this 22 nd day of January, 2010, at Fredericton, New Brunswick 

“J. Dean Thibault” 

J. Dean Thibault, P.Eng. (Thibault & Associates Inc.) 





Tim R. McKeen, P.Eng., Process Chemical Engineer 

I, Tim R. McKeen, of New Market, New Brunswick, Canada, author of Sections 2.0, 4.0, 5.0, 19.0, 

20.0 and 24.0 of the report entitled, "NI 43-101 Independent Technical Report Mount Pleasant 

North Zone Preliminary Assessment" with effective date January 22 nd , 2010, hereby certify that: 

I am a chemical engineer with Thibault & Associates Inc. with a business address at 330 

Alison Blvd., Fredericton, New Brunswick, Canada E3C 0A9. 

I am a graduate of Chemical Engineering (B.Sc.) from the University of New Brunswick 2000 

and Chemical Engineering (M.Sc.) from the University of Saskatchewan 2003. 

I have practiced in my profession as a process chemical engineer continuously for a total of 7 

years since graduation. 




i) process design at various levels of detail from conceptual to detailed design for several 

mineral processing projects involving flotation and hydrometallurgical operations. 

ii) past experience on scoping, pre-feasibility and feasibility studies for mining projects. 

Since 1998, I have worked periodically on various studies, bench scale and pilot test 

programs related to the development of the Mount Pleasant property; including providing 

technical input to 2008 report on "Adex Minerals Corp. Mount Pleasant Fire Tower Zone 

Scoping Study" (Aker, 2008). 

I have read the definition of a “qualified person” as defined in National Instrument 43-101 (NI 

43-101) and certify that, by reason of my education, affiliation with a professional association 

as defined in NI 43-101 and past relevant work experience, I fulfill the requirements to be a 

“qualified person” for the purpose of NI 43-101. 

I am specifically responsible for Sections 2.0, 4.0, 5.0, 19.0, 20.0 and 24.0 of the Technical 

Report. 

I visited the Mount Pleasant property on several occasions to gather information for the 

Technical Report, with my most recent site visit occurring on September 29 th , 2009. 














“Tim R. McKeen” 

Tim R. McKeen, P.Eng. (Thibault & Associates Inc.) 





Stephanie M. Scott, P.Eng., Process Chemical Engineer 

I, Stephanie M. Scott, of Durham Bridge, New Brunswick, Canada, author of Sections 21.0, 22.0 

and 23.0 of the report entitled, "NI 43-101 Independent Technical Report Mount Pleasant North 

Zone Preliminary Assessment" with effective date January 22 nd , 2010, hereby certify that: 

I am a chemical engineer with Thibault & Associates Inc. with a business address at 330 

Alison Blvd., Fredericton, New Brunswick, Canada E3C 0A9. 

I am a graduate of Chemical Engineering (B.Sc.) from the University of New Brunswick 2002. 

I have practiced in my profession as a process chemical engineer continuously for a total of 7 

years since graduation. 




i) process design at various levels of detail from conceptual to detailed design for several 

mineral processing and wastewater treatment projects. 

ii) past experience on preparation of scoping, pre-feasibility and feasibility studies for mining 

projects. 

Since 2008, I have worked periodically on various studies, bench scale and pilot test 

programs related to the development of the Mount Pleasant property; including providing 

technical input to 2008 report on "Adex Minerals Corp. Mount Pleasant Fire Tower Zone 

Scoping Study" (Aker, 2008). 





I am specifically responsible for Sections 21.0, 22.0 and 23.0 of the Technical Report. 

I have visited the Mount Pleasant property on several occasions, with my most recent site 

visit occurring on September 17 th , 2008. 














“Stephanie M. Scott” 

Stephanie M. Scott, P.Eng. (Thibault & Associates Inc.) 





Trevor Boyd, P.Geo., Geological Consultant 

I, Trevor Boyd of Toronto, Ontario, Canada, author of Sections 1.2, 1.3, 7.0 to 15.0 (inclusive), 

17.0, 29.2 and 30.2 of the report entitled, "NI 43-101 Independent Technical Report Mount 

Pleasant North Zone Preliminary Assessment" with effective date January 22 nd , 2010, hereby 

certify that: 

I reside at 148 Lascelles Blvd., Toronto, Ontario, M5P 2E6 

In 1988 I earned a M.Sc.(A) Minex degree in Earth Science from McGill University, Montreal, 

Quebec and a Ph.D. in Geology in 1996 from University of Toronto, Toronto, Ontario. 

I am a member in good standing with the Association of Professional Geoscientists of Ontario 

(Membership Number 1023). 

I have worked as a professional geoscientist for a total of 17 years since the completion of 

my M.Sc. degree. My relevant experience for the purpose of this Technical Report is: 

i) Worked extensively on projects in the exploration for gold, uranium, other precious metal 

and base metal deposits, including VMS-type, magmatic-type, vein-type and porphyrytype 

deposits; and 

ii) Held positions as Exploration Geologist and Project Supervisor for major and junior 

Canadian mining companies in Canada. 



as defined in NI 43-101 and past relevant work experience, I fulfil the requirements to be a 


I am a Geological Consultant and qualified person directly working for Adex Mining Inc. to 

provide geological and logistical support to Thibault & Associates Inc. in the preparation of 

this report. 

I am specifically responsible for Sections 1.2, 1.3, 7.0 to 15.0 (inclusive), 17.0, 29.2 and 30.2 

including the geological, exploration, and mineral resources estimation portions of this report. 

I have earned the majority of my income during the preceding two years from Adex Mining 

Inc. 

I, directly and indirectly, hold securities of Adex Mining Inc. 

I am a qualified person for the purpose of National Instrument 43-101 acting in a nonindependent 

capacity. 

I have visited the Adex Mount Pleasant property numerous times since October 2005, with 

the most recent site visit on June 4 th and 5 th , 2009. 










“Trevor Boyd” 

Trevor Boyd, P.Geo. (Adex Mining Inc.) 





Andrew Hara (Harasimowicz), P.Eng., Mining Engineer 

I, Andrew Hara (Harasimowicz), of Mississauga, Ontario, Canada, author of Sections 1.4, 18.0, 

29.3 and 30.3 of the report entitled, "NI 43-101 Independent Technical Report Mount Pleasant 

North Zone Preliminary Assessment" with effective date January 22 nd , 2010, hereby certify that: 

I am a mining engineer with Hara Mining Enterprises Inc. with a business address at 1577 

Camelford Rd., Mississauga, Ontario, Canada, L5J 3C8. 

I am a graduate of the Academy of Mining and Metallurgy Krakow-Poland (B.Sc. Eng., 1975). 

I have practiced in my profession as a mining engineer continuously for a total of 35 years 

since graduation. 

I am a member in good standing of the Association of Professional Engineers of Ontario 

(APEO) with Registration #90247024. 


i) prepared conceptual mine plan for inclusion with "Adex Minerals Corp. Mount Pleasant 

Fire Tower Zone Scoping Study" by Aker Solutions (Aker, 2008); 

ii) reviewing and reporting as a consultant on a number of mining operations and projects 

around the world for due diligence, operations expansions and troubleshooting; 

iii) past experience on scoping, pre-feasibility and feasibility studies for mining projects; 

iv) past experience as the Director of Mining with a Major Canadian Mining Corporation; 

v) past experience as a Mine Superintendent; 

vi) past experience as a Chief Mine Engineer, and; 

vii) past experience as a Senior Project Engineer, Researcher and Production Supervisor 





I am specifically responsible for Sections 1.4, 18.0, 29.3 and 30.3 of the Technical Report. 

I visited the Mount Pleasant property on several occasions and most recently on June 16 th , 

2009, to gather information for the Technical Report. 





Technical report contains all scientific and technical information that is required to be 








Signed and dated this 22 nd day of January, 2010, at Mississauga, Ontario 

“Andrew Hara” 

Andrew Hara, P.Eng. (Hara Enterprises Inc.) 




North Zone Preliminary Assessment 

Appendix A 

Process Block Diagrams and Mass Balance 

Mount Pleasant Property as of 1985. Concentrator and ore storage A-Frame 

buildings remain on site as of January 2010 

Adex Mining Inc.

Mount Pleasant North Zone - Tin and Indium Development 

Drawing Legends 

Unit Operations Breakdown 

Reagents / Consumables 

Plant Area Codes 

Coarse 

Fines 

Conc 

Tail 

O/S 

U/S 

O/F 

U/F 

PW 

ST 

CW 

3.02 

S/L 

L/G 

S/G 

Unit Operation 

Particle Size Separation – Coarse Fraction 

Particle Size Separation – Fine Fraction 

Concentrate – recoverable metal 

Tailings – nonrecoverable metal 

Oversize from screening operations 

Undersize from screening operations 

Overflow (fines) from cyclone operations 

Underflow (coarse) from cyclone operations 

Process Water 

Steam 

Cooling Water 

Stream number – mass and energy balance 

Solid – Liquid Separation 

Liquid - Gas Separation 

Solid – Gas Separation 

Heat Exchanger 

Unit operations which define mixing, 

reaction, conversion and/or separation. 

Main process stream 

Duct Works – Low pressure Gas Stream 

Alternative process stream 

01 Crushing 

02 Grinding 

03 Size Classification 

04 Gravity Separation 

04 Magnetic Separation 

05 Flotation 

06 Dewatering: 

06A Filtration 

06B Clarification 

06C Thickening 

07 Solids Drying 

08 Liquid Heat Exchange 

09 Atmospheric Leaching 

10 Pressure Leaching 

11 Neutralization 

12 Precipitation 

13 Pelletization 

14 Cementation 

15 Solvent Extraction 

16 Electrowinning 

17 Electrolysis 

18 Electro-Smelting 

19 Scrubbing and Absorption 

20 High Temperature Chlorination 

21 Hot Gas Condensing 

22 Crystallization 

23 Ion Exchange 

24 Product Packaging 

25 Reagent Systems 

26 Fuel Systems 

27 Steam Boiler 

28 Oxygen Generation 

29 Compressed Air Systems 

30 Dust and Fume Control 

01 Crushing Bowls 

02 Crushing Wear Plates 

03 Grinding Media – Rods 

04 Grinding Media - Balls 

05 Grinding Mill Liners 

06 Zinc Flotation 

06A Collector: 

06B Frother: 

06C Depressant: 

06D Activator: 

07 Arsenic Flotation 


07B Frother: 



08 Tin Flotation 


08B Frother: 



09 Flocculant 

10 Lime 

11 Ferric Chloride 

12 Caustic (sodium hydroxide) 

13 Hydrochloric Acid 

14 Chlorine 

15 Sodium Carbonate 

16 Sodium Sulfide 

17 Diatomaceous Earth 

18 Calcium Chloride 

19 Diluent (kerosene low aromatic) 

20 Solvation SX Reagent 

21 Flux (to be determined) 

22 Activated Alumina 

23 Zinc Plate / Rods 

24 Liquid Fuel (No 2 Fuel Oil) 

25 Sodium Chloride 

26 Pulverized Coal 

27 Agglomeration Binder 

10 Crushing 

20 Grinding 

31 Magnetic Separation / Zinc Flotation 

32 Arsenic Flotation 

33 Tin Flotation 

41 Tin Chloride Pyromet 

42 Indium and Zinc Metal Hydromet 

50 Tailings and Wastewater Treatment 

60 Process and Domestic Water 

70 Utilities 

80 Reagent Systems 

Drawing Number Code 

Discipline Code 

(05 process design) 

Stream Color Legend 

Water and Wastewater 

Concentrator Solids 

Hydromet Stream 

Solid Waste Stream 

Pyromet Stream 

Reagent Recycle 

Plant Area Code 

Page Number 

Electrical power used for conversion 

Air or Gas Duct Works 

Battery Limits – inside battery limit (ISBL) 

Organic Stream (solvent extraction) 

Copyright © Thibault & Associates Inc. 2009: This drawing is 

confidential and exclusive rights of Thibault & Associates Inc. No 

unauthorized use, copy, change or disclosure is permitted without 

prior written agreement of Thibault & Associates Inc. 

Client / Site: 

Designed By Drawn By Checked By Approved By Scale 

JDT AVP TRM NTS 

Project: 

Mount Pleasant North Zone Tin and Indium Development 



St. George, New Brunswick 

Drawing Number 

Reference Drawings 

Description 

Preliminary 

00 July 30 2009 

Description Rev. Date 

Status / Revision 

® 

© Copyright Thibault & Associates Inc., New Maryland, New Brunswick, 2009 

Drawing Title: 

Project Number 

Block Diagram Title Sheet 


Revision 

6526 0501 00 00 00

North Zone Run-of-Mine Ore 

Reclaim Process Water 

Comminution 

Crushing and Grinding 

Beneficiation 

(Flotation, Magnetic and 

Gravity Separation) 

Zinc Concentrate 

Tin Concentrate 

Mine Water 

Indium / Zinc 

Hydromet 

Fuel 

Air 

Tin Pyromet 

Treated Tail Gas 

Tailings 

Treatment 

Wastewater 

Disposal Cells Leachate 

Tin Chloride 

Zinc Residue 

Indium Metal 

Wastewater Treatment 

Precipitation 

Hydroxide Sludge 

Disposal Cell 

Tailings Disposal Pond 

(existing) 

Treated Wastewater to Hatch Brook 







Project: 








Description 

Preliminary 

00 July 30 2009 



® 




North Zone Ore Processing 

Process Overview Block Diagram 


Revision 

6526 0501 00 02 00


Treated Tail Gas 

Crushing 

Magnetic 

Separation 


Concentrate 

Dewatering 

Metal Sulfides 

Leach 

Fuel 

Pelletization 

Reactor 

Gas Treatment 

Grinding 

Mine Water 

Desliming 

Slimes 

Fines Gravity 

Separation 

Fine Heavy Concentrate 

Magnetic Concentrate 

Arsenic Concentrate 

Zinc 

Flotation 

Arsenic 

Flotation 

Tin Flotation 

Gravity Separation 


Ferric Chloride 

S/L 

Solution Reduction 

Precipitation 

S/L 

Solvent 

Extraction 

Indium 

Cementation 

Ambient Air 

Chlorination 

Reactor 

Solids Quench 

Gas Quench 

Scrubber 

Solution 

Purification 

Precipitation 

S/L 

Tin Chloride 

Crystallization 

Tailings Treatment 

Dewatering 

Chlorine 

Tailings 

Concentrate 

Dewatering 

Drying 

Chlorination 

Iron Oxyhydrolysis 

S/L 

Zinc 

Electrowinning 

Tin Chloride 

Dewatering 

Drying 

Reclaim Process Water 

Indium Metal 

Electrorefining 

Tin Chloride 

Zinc Metal 

Indium Metal 


Treated 

Wastewater 

Wastewater 

Treatment 

Solid Disposal Cell Leachate 

WWT Solid Residue 







Project: 








Description 

Preliminary 

00 July 30 2009 



® 




Concentrator, Indium Hydromet and Tin Pyromet 

Systems Overview Block Diagram 


Revision 

6526 0501 00 03 00


From Mining Operations 

Ore Storage 

Secondary 

Screening 

U/S 

Fine Ore 

O/S 

Dust Free Air 

O/S 

Vent to Atmosphere 

Oversize 

Screening 

U/S 

Wear Plates 

Dust 

Dust 

Collector 

Wear Plates 

Dust 

Oversize Ore 

Breaker 

Primary Crushing 

Secondary Crushing 

Sweep Air 

Coarse Ore 

Crushed Ore 

Storage 

Crushed Ore 

To Grinding Circuit 

Coarse Ore 

Storage 







Project: 








Description 

Preliminary 

00 July 30 2009 



® 




Crushing Circuit Block Diagram 


Revision 

6526 0502 10 01 00

Crushed Ore 

Process Water 

From Crushing Circuit 

Process 

Water 

Classification 

Cyclone 

O/F 

Fines 

U/F 

Grinding 

Media 

Primary 

Grinding 

Process 

Water 

Primary 

Desliming 

O/F 

Slimes 

U/F 

O/S 

Classification 

Screen 

Process 

Water 

Process 

Water 

U/S 

O/F 

Grinding 

Media 

Secondary 

Grinding 

Secondary 

Desliming 

U/F 

Process 

Water 

Conc 

Centrifugal 

Gravity Separation 

Tail 

Slimes 

To Tailing Treatment 

Ground Ore 

To Magnetic Separation 







Project: 








Description 

Preliminary 

00 July 30 2009 



® 




Grinding, Desliming and Gravity Circuit Block Diagram 


Revision 

6526 0502 20 01 00

Ground Ore 

From Grinding Desliming Circuit 

Lime or Acid 

Process Water Make-up 

Magnetics 

Process 

Water 

Magnetic Separation 

Tail 

Conc 

Collector 

Frother 

Depressant 

Activator 

Zinc Flotation 

Cleaner 

Tail 

Conc 

Zinc Flotation Water Reclaim Distribution 

To Tailings Treatment 


Conditioning 


Dewatering 


Rougher 

Conc 

Zinc Flotation Water Bleed 

To Tailings / Wastewater Treatment 

Tail 


Scavenger 

Conc 

Zinc / Indium Concentrate 

To Indium Zinc Hydromet Circuit Leach 

Tail 

Tin – Arsenic Ore 

To Arsenic Flotation 







Project: 








Description 

Preliminary 

00 July 30 2009 



® 




Magnetic Separation and Zinc Flotation 

Block Diagram 


Revision 

6526 0502 31 01 00

Lime or Acid 

Collector 

Tin – Arsenic Ore 

Frother 

From Zinc Flotation Circuit 

Process 

Water 

Depressant 

Activator 

Arsenic Flotation 

Cleaner 

Conc 



Tail 


Conditioning 

Arsenic Float 

Regrind 

Classsification 

O/F 

Process 

Water 

U/F 

Process 

Water 


Rougher 

Conc 

O/S 

Arsenic Float 

Regrind 

Classification Screen 

Tail 

U/S 

Arsenic Float 

Regrind 


Scavenger 

Tail 

Conc 


Tailings Thickener 

Arsenic Flotation Water 

To Wastewater Treatment 

Tin Ore 

To Tin Flotation 







Project: 








Description 

Preliminary 

00 July 30 2009 



® 



Arsenic Flotation Block Diagram 



Revision 

6526 0502 32 01 00

Lime / Acid 

Tin Ore 

From Arsenic Flotation 

Process 

Water 

Collector 

Frother 

Depressant 

Activator 

Tin Flotation 

Cleaner 

Tail 

Conc 

Tin Flotation Water Reclaim Distribution 

Process 

Water 

Tin Flotation 

Conditioning 


Dewatering 

Tin Centrifugal 

Gravity Concentrator 

Rougher 

Tail 

Conc 

Tin Flotation 

Rougher 

Tail 

Conc 

Hot Oil 

Heater 


Drying 

Tin Flotation Water Bleed 

To Tailings / Wastewater Treatment 

Process 

Water 

Conc 

Tin Centrifugal 

Gravity Concentrator 

Scavenger 

Tail 

Tin Flotation 

Scavenger 

Conc 

Hot Oil Heating 

system is optional to 

steam as heating 

medium. 


Packaging 


To Tin Chloride Pyromet Circuit 

Tail 


To End User – Tin Smelter 

Tailings 








Project: 








Description 

Preliminary 

00 July 30 2009 



® 



Tin Flotation Block Diagram 



Revision 

6526 0502 33 01 00

Vent 


From Dewatering 

Pulverized Coal/Coke 

Dust Collection 

Chlorination Off-Gas 

To Gas Treatment 

Calcium Chloride 

Process Water 

Fines Recycle 


Pelletizer 

Vent 

Gas Quench 

Venturi Scrubber 

Air Exhaust 

Process Water 

Tin Chloride Wash Solution 

From Tin Chloride 

Dewatering / Washing 

Fuel Oil 

Air 

Concentrate Pellet 

Dryer 


Tank 

Lime 

Reagents 

Fuel Oil 

Combustion Air 

Chlorination 

Reactor 

Combustion Gas and Chlorination Vapors 

Vent 

Tin Chloride 

Solution Purification 

Process Water 

Vapor/Dust 


Process Water 

Chlorination Residue 

Quench 

Process Water 

Impurity Precipitate 

Filtration and Wash 

Impurity Precipitate 



Slurry Purge 


Tank 

Tin Chloride Solution 

To Crystallization 


Recycle 







Project: 

TRM AVP JDT NTS 







Description 

Preliminary 

00 July 30 2009 



® 




Tin Chloride Pyrometallurgical Circuit 

Unit Operations Block Diagram 


Revision 

6526 0502 41 01 00

Sodium Hydroxide 

Process Water 

Treated Off-Gas 

To Atmosphere 

Recovered Condensate 


Acid Recovery 

Scrubber 

Off-gas 

Trace Acid Scrubber 

Tin Chloride Solution 

From Purification 

Acid Scrubber Blowdown 


Cooling Water 

Cooling Water 

Condenser 

Crystallizer Feed 

Tin Chloride 


Steam and hydrochloric 

acid gas 

Drying Off-gas 

Dust Collection 

Steam 

Evaporator 

Condensate 

Steam 

Process Water 

(Wash) 

Air 

Condensate 

Tin Chloride Drying 

Tin Chloride Wash Solution 

To Tin Chloride Venturi Scrubber 

L 

Solid / Liquid 

Separation 

S 

Recovered Tin Chloride Fines 

Dust From Packaging 

Tin Chloride 

Packaging (Drums) 

Tin Chloride 

To Market 







Project: 

TRM AVP JDT NTS 







Description 

Preliminary 

00 July 30 2009 



® 




Tin Chloride Crystallization Circuit 

Unit Operations Block Diagram 


Revision 

6526 0502 41 02 00

Treated Vent Gas 

To Atmosphere 

Caustic Solution 


From Zinc Flotation Dewatering 

SX Wash Bleed 

From Solvent Extraction 

Chlorinator Off-Gas Scrubber Blowdown 


Chlorinator 

Off-Gas 

Scrubber System 

Process Water 

Vent 

Dross and Anode Slimes 

From Indium Electrorefining 

ST 

Vent 

Leach Residue Wash Solution 

Slurry Preheat 

Vent 

Splash Preheating 

Tower 

Second Stage 

Chlorinator 

Vent 

Raffinate 

From Solvent Extraction 

Metal Sulfide 

Leach 

ST 

ST 

First Stage 

Raffinate Chlorinator 

Vent 

ST 

Oxyhydrolysis 

Reactor 

Leach Residue 

Separation 

Leach Solution 

To Solution Purification 

Pressurized Oxygen 

From Oxygen Generator (Utilities) 

ST 

ST 

Process Water 

Pressure Reactor 

Let Down System 

Leach Residue 

Wash / Dewatering 

Hydrochloric Acid 

Process Water 

Iron Oxide Solids 


Iron Oxide Wash Water 

To Wastewter Treatment 



Metal Sulfide Leach Residue 


Chlorine Gas Make-up 

From Tonner Cylinder 

Chlorine Gas 

From Zinc Electrowinning 








Project: 







Description 

Preliminary 

00 July 30 2009 



® 



Base Metal Sulfide Leach Block Diagram 



Revision 

6526 0502 42 01 00


Leach Solution 

From Metal Sulfide Leach 

Process Water 

Sodium Carbonate 

Precoat Diatomaceous Earth 

Solution Clarification 

(Filtration) 

Leach Solution Solid Residue 


CW 


(Solution Cooling) 


Solvent Extraction 

Extraction Stage 

Process Water 


Trace Organic 

Recovery 

Lead Carbonate Residue 

SX Raffinate (Fe) 


Solution Fltration 

Spent Electrolyte 

From Zinc Electrowinning 


Scrub Stage 

To Iron Chlorination Circuit 

Sodium Sulfide 

Iron Powder 

ST 

Sodium Chloride 


Process Water 


Strip Stage 

Trace Organic 

Recovery 

SX Scrub - Zinc Chloride Solution 

To Zinc Electrowinning 

Copper / Arsenic 

Cementation 

Trace Organic 

Recovery 


SX Strip – Indium Chloride Solution 

To Indium Cementation / Electro-refining 

Process Water 


Acid Wash 

SX Solvent (Solvation Organic) and Diluent Kerosene 

From Reagent Preparation System 

CW 


Organic Make-up 

Organic Wash Bleed Solution 








Project: 








Description 

Preliminary 

00 July 30 2009 



® 



Leach Solution Purification Block Diagram 



Revision 

6526 0502 42 02 00

Spent Electrolyte 

To Zinc Solvent Extraction Scrub 

Zinc Chloride (Scrub Solution) 

From Solvent Extraction Circuit 


Process Water 


Indium Chloride (Strip Solution) 

From Solvent Extraction Circuit 


Process Water 

Electrolyte 

Purification 


Process Water 

Indium 

Cementation 

Electrowinning 

Off-Gas 

Scrubber 

Electrowinning Scrubber Blowdown 


Zinc Electrolyte Impurities 


Residue Wash 

Dewatering 

Cement Wash 

Dewatering 

Indium Cement Washwater 

To Leach 

ST 

Chlorine Gas (electrowinning off-gas) 

To Chlorinator 

Emergency Blowdown 

Zinc Metal Plate for Solution Purification 

Zinc Metal Plate for Indium Cementation 

Anode 

Assembly 

Indium 

Electroysis 

Solution Recycle 

Optional Indium 

Electro-refining Circuit 

Anode Slimes 


Zinc Electrowinning 

Flux 

Emergency 

Chlorine Scrubber 

Process Water 

Indium 

Melt and Cast 

Electro-smelting 

Indium Melt Dross 

Dross and Slimes 

To Leach Circuit 

Sodium Hypochlorite 

Process Water 

Indium Metal 


Indium Metal Washwater 


Zinc Plate Washwater 


Zinc Plate wash 

Indium Metal 

To End User Market 

Zinc Electrolytic Plate 

To End User Market 







Project: 








Description 

Preliminary 

00 July 30 2009 



® 



Indium and Zinc Metal Recovery Block Diagram 



Revision 

6526 0502 42 03 00

Zinc Flotation Water Bleed 

Slimes 

From Grinding and Desliming Circuit 

Tin Flotation Water Bleed 

Magnetics 

From Magnetic Separation 


From Tin Chlorination Quench System 


From Arsenic Flotation 

Tailings 

From Tin Flotation 


From Base Metal Sulfide leach / Oxyhydrolysis 

Metal Sulfide Leach Residue 

From Metal Sulfide Leach Circuit 

Lead Carbonate Residue 

From Leach Solution Purification 

Copper / Arsenic Residue 


Lime 

Cooling Water (hot return) 

Tailings 

Neutralization 

Treated Tailings 

Flocculant 

To Existing Tailings Pond 

Overflow From Tailings Dewatering 

Tailings Dewatering 

To Wastewater Treatment System 

Tailing dewatering and disposal of 

tailings as dry disposal will be 

dependent on control of soluble 

fluoride in final effluent. 







Project: 








Description 

Preliminary 

00 July 30 2009 



® 



Tailing Treatment Block Diagram 



Revision 

6526 0502 50 01 00

Process Water Bleed 

From Process Water System 

Chlorinator Off Gas Blowdown 

From BM Sulfide Leach Circuit 

Organic Wash Bleed Solution 


Primary Reaction 

Zinc Electrolyte Impurities 

From Zinc Electrowinning Metal Recovery 

Zinc Plate Washwater 

From Zinc Electrowinning Metal Recovery 

Indium Cement Washwater 

Clarification 

From Indium Metal Recovery 

Electrowinning Scrubber Blowdown 

From Indium and Zinc Metal Recovery Circuits 

Boiler Feedwater Treatment Backwash 

From Utilities – Boiler Feedwater Treatment System 

Sludge Dewatering 

Polishing Reaction 

Acid Scrubber Blowdown 

From Tin Chloride Crystallization Circuit 

Mine Water 

From Mine (Existing Continuous Overflow From Portal) 

Secondary 

Clarification 

Fluoride Removal 

Ion Exchange 

Backwash 

Neutralization 

Acidity Control 

Backwash 

Sedimentation 

Dewatered Sludge 

To Sludge Disposal Cell 

Treated Wastewater 

To Existing Tailings Pond 







Project: 








Description 

Preliminary 

00 July 30 2009 



® 




Wastewater Treatment Block Diagram 


Revision 

6526 0502 50 02 00

Reclaim Water from Tailings Dewatering (optional) 

From Tailings Treatment 

Make-up Process Water 

From Polishing Pond (Tailings Pond) Pumping System 

Water from Well – Ground water Supply System 

Domestic Water 

Storage 

Distribution System 

Process Water 

To Concentrator – Beneficiation Circuit 

Water Distribution for Domestic Use – Miners Dry 

Process Water 

To Indium Hydromet Circuit 

Water Distribution for Domestic Use – Process Facility 

Process Water 

Water Distribution for Emergency Eye Wash / Shower – Processing Facility 

To Tin Pyromet Circuit 

Make-up Water for Boiler Systems 

To Boiler Make-up Water Treatment System 

Process Water 

To Reagent Preparation Circuit 

Fire Water Distribution System 

Process Water Bleed 


Cooling Water 

Distribution System 

Process Water 

Storage 

Distribution 







Project: 








Description 

Preliminary 

00 July 30 2009 



® 




Process and Domestic Water Block Diagram 


Revision 

6526 0502 60 01 00

Ground Water Supply 

From Domestic Water Supply System 

Fuel delivery (No 2 Fuel Oil) 

Fuel Storage 

Management 

ST 

Oxygen Generator 

Pressurized Oygen 

Chlorination Reaction Fuel Supply 

Air 

Nitrogen 

Nitrogen Blanketing of Tanks 

(Leach Solution Blanketing) 

To Tin Chlorination Reactor Burner System 

Boiler Feedwater 

Treatment System 

Flue Gas 

Compressed Air – Instrumentation Air and 

Maintenance Air Systems 

Air 

Steam Boiiler 

Air 

Air 

Compressor 

Fuel Storage In-tank Heaters 

Flue Gas 

Tin Concentrate Drier (hot oil heater optional for concentrate production as sole production) 

Slurry Preheat for Base Metal Sulfide Leach 

Diesel 

Air 

Back-up Generator 

Emergency Power Back-up 

(pre-selected motors on compressors, pumps, fans, 

etc.) 

Metal Sulfide Leach Reactor – Metal Sulfide Leach Circuit 

Oxyhydrolysis Reactor – Base metal Sulfide Leach Circuit 

Heat Exchangers for Process Water - Metal Sulfide Leach Circuit 

Heat Exchangers for Ferric Chloride Solution - Metal Sulfide Leach Circuit 

Backwash from Boiler feedwater Treatment 

Heat Exchangers for Leach Solution - Leach Solution Purification Circuit 








Project: 








Description 

Preliminary 

00 July 30 2009 



® 



Utilities Block Diagram 



Revision 

6526 0502 70 01 00

Reagent Storage Reagent Preparation Reagent Distribution 

Process Water (reagent preparation systems) 

Lime (Calcium Oxide) 

95% CaO Powder / 20 tonne Bulk Shipment 

Bulk Storage 

(Silo) 

Solution 

Preparation 

(10% to 15% CaO) 

Lime Solution Distribution Line (single line throughout plant) 

Flocculant 

Neat Flocculant Dry Powder / 1 tonne bulk bag 

Bulk Bag 

Storage Area 

Solution 

Preparation 

(0.5% solution) 


12% Fe Solution / 20 tonne bulk shipment 

Bulk Storage 

( tank) 

Caustic (Sodium Hydroxide) 

50% NaOH Solution / 20 tonne bulk shipment 

Bulk Storage 

(tank) 

Solution 

Preparation 

(5% solution) 

Chlorine 

99% Chlorine Gas / 1 tonne bulk shipment (tonner cylinder) 

Tonner 

(tonner storage area) 


95% CaCO3 Powder / 1 tonne bulk bag 

Bulk Bag 

Storage Area 

Solution 

Preparation 

(5% solution) 


50% NaS2 Solution / tote tanks 

Tote 

Storage Area 

Solution 

Preparation 

(1% solution) 

Diatomaceous Earth 

95% Silicates / 1 tonne bulk bag 

Bulk Bag 

Storage Area 

Solution 

Preparation 

(20 % solids slurry)) 







Project: 








Description 

Preliminary 

00 July 30 2009 



® 



Reagent Systems Block Diagram 



Revision 

6526 0502 80 01 00

Reagent Storage Reagent Preparation Reagent Distribution 


95% CaCl2 / 1 tonne Bulk Bags 

Bulk Bag 

Storage Area 

Diluent (low aromatic kerosene) 

100% Diluent / 45 gallon drums 

Drums 

Storage Area 

Blend 

System 

Solvation Solvent Extraction Reagent 

100% Reagent / 45 gallon drums 

Drums 

Storage Area 

Flux 

Bulk Bag 

Storage Area 

Activated Aluminia 

100% Activated Aluminia/ 1 tonne Bulk Bags 

Bulk Bag 

Storage Area 

Zinc Plate / Rods 

100% Zinc / Drums 

Drums 

Storage Area 







Project: 








Description 

Preliminary 

00 July 30 2009 



® 




Reagent Systems Block Diagram 


Revision 

6526 0502 80 02 00

MASS AND ENERGY BALANCE SIMULATION 

Client: Adex Mining Inc. Plant: Mount Pleasant, New Brunswick Project No. 6526 Issue Date: November 30, 2009 

Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Tim McKeen, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 

Reference: Tin Ore Crushing, Grinding and Gravity Concentration Checked By: J. Dean Thibault, P.Eng. Page: 1 of 14 Revision: 00 

Plant Area 

10 - Tin Ore Crushing Circuit 

Stream Number Description 10.01 10.02 10.03 10.05 10.06 

and 10.04 

Run of Mine Primary Primary Secondary Secondary Crushed Ore 

Parameter Units Ore Crusher Feed Crusher Prod. Screen Feed Crusher Feed To Grinding 

Solid Phase 

Sn Concentration wt% 0.71% 0.71% 0.71% 0.71% 0.71% 0.71% 

Sn Mass Flow kg/hr 251.5 251.5 251.5 502.9 251.5 251.5 

Sn Distribution 1 wt% 100.00% 100.00% 100.00% 200.00% 100.00% 100.00% 

Total Solids Mass Flow tonne/hr 35.4 35.4 35.4 70.8 35.4 35.4 

Liquid Phase 

Sn Concentration g/L - - - - - - 

Sn Mass Flow tonne/hr - - - - - - 

Water Mass Flow tonne/hr 0.000 0.000 0.000 0.000 0.000 0.000 

Total Solution Mass Flow tonne/hr 0.000 0.000 0.000 0.000 0.000 0.000 

Total Solution Volume Flow m³/hr 0.000 0.000 0.000 0.000 0.000 0.000 

Chemical Mass Flow tonne/hr - - - - - - 

Liquid Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 

Overall 

Total Mass Flow tonne/hr 35.417 35.417 35.417 70.834 35.417 35.417 

Total Volumetric Flow m³/hr 12.427 12.427 12.427 24.854 12.427 12.427 

Solids - Percent wt% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 

Slurry Specific Gravity - 2.850 2.850 2.850 2.850 2.850 2.850 

Temperature °C - - - - - - 

General Notes 

10 - Tin Ore Crushing Parameters 10 - Run of Mine Ore Grades 

1. Tin distribution is calculated as 

percent of tin in each stream Parameter Units Value Parameter Units Value 

relative to tin in fine ore feed Run of mine ore feed rate (dry basis) tonne/hr 35.4170 Tin wt% 0.71% 

(stream 10.01). Secondary crusher screen feed oversize wt% 50.0% Indium ppm 182.73 

2. Crushing circuit mass balance is Zinc wt% 1.82% 

based on 24 hour per day operation. Copper wt% 0.22% 

For crushing less than 24 hours per day Lead wt% 0.04% 

(e.g. day shift), flowrates as presented Arsenic wt% 1.42% 

will need to be adjusted. Tungsten wt% WO 3 0.09% 

Molybenum wt% MoS 2 0.000% 

Bismuth wt% 0.0700% 


Applied Process Chemical Engineering 

Plant Area 

20 - Grinding and Desliming Circuit 

Stream Number and Description 10.06 20.01 60.01 20.02 60.02 20.03 20.04 20.05 20.06 60.03 20.07 60.04 20.08 20.09 20.10 20.11 20.12 20.13 20.14 60.05 

1° Mill 1° Mill ProcessWater Grind Cyclone ProcessWater Grind Cyclone Grind Cyclone Grind Screen Grind Screen Grind Screen 2° Mill ProcessWater Fine Ore 1° Desliming 1° Desliming 1° Desliming 2° Desliming 2° Desliming 2° Desliming ProcessWater 

Parameter Units Feed Discharge To 1° Mill Feed To Cyclone Overflow Underflow Undersize Oversize ProcessWater Discharge To 2° Mill To Desliming Feed Overflow Underflow Feed Overflow Underflow To 2° Desliming 

Solid Phase 

Sn Concentration wt% 0.71% 0.71% 0.00% 0.71% 0.00% 0.71% 0.71% 0.71% 0.71% 0.00% 0.71% 0.00% 0.71% 0.61% 0.31% 0.69% 0.69% 0.23% 0.86% 0.00% 

Sn Mass Flow kg/hr 251.5 251.5 0.0 679.6 0.0 203.9 475.7 47.6 428.2 0.0 428.2 0.0 251.5 273.9 29.9 244.1 244.1 22.5 221.6 0.0 

Sn Distribution 1 wt% 100.00% 100.00% 0.00% 270.27% 0.00% 81.08% 189.19% 18.92% 170.27% 0.00% 170.27% 0.00% 100.00% 108.93% 11.87% 97.06% 97.06% 8.93% 88.13% 0.00% 

Total Solids Mass Flow tonne/hr 35.42 35.42 0.00 95.72 0.00 28.72 67.01 6.70 60.30 0.00 60.30 0.00 35.42 44.97 9.58 35.39 35.39 9.56 25.84 0.00 

Liquid Phase 

Sn Concentration g/L - - - - - - - - - - - - - - - - - - - - 

Sn Mass Flow tonne/hr - - - - - - - - - - - - - - - - - - - - 

Water Mass Flow tonne/hr 1.476 15.179 13.703 95.722 48.071 67.005 28.716 16.512 15.076 2.872 32.472 17.396 83.517 163.457 148.288 15.169 91.013 79.940 11.073 75.844 

Total Solution Mass Flow tonne/hr 1.476 15.179 13.703 95.722 48.071 67.005 28.716 16.512 15.076 2.872 32.472 17.396 83.517 163.457 148.288 15.169 91.013 79.940 11.073 75.844 

Total Solution Volume Flow m³/hr 1.476 15.179 13.703 95.722 48.071 67.005 28.716 16.512 15.076 2.872 32.472 17.396 83.517 163.457 148.288 15.169 91.013 79.940 11.073 75.844 

Chemical Mass Flow tonne/hr - - - - - - - - - - - - - - - - - - - - 

Liquid Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 

Overall 

Total Mass Flow tonne/hr 36.893 50.596 13.703 191.443 48.071 95.722 95.722 23.212 75.381 2.872 92.776 17.396 118.934 208.431 157.868 50.563 126.407 89.496 36.911 75.844 

Total Volumetric Flow m³/hr 13.903 27.606 13.703 129.308 48.071 77.081 52.227 18.863 36.236 2.872 53.631 17.396 95.944 179.237 151.649 27.588 103.432 83.293 20.139 75.844 

Solids - Percent wt% 96.0% 70.0% 0.0% 50.0% 0.0% 30.0% 70.0% 28.9% 80.0% 0.0% 65.0% 0.0% 29.8% 21.6% 6.1% 70.0% 28.0% 10.7% 70.0% 0.0% 

Slurry Specific Gravity - 2.654 1.833 1.000 1.481 1.000 1.242 1.833 1.231 2.080 1.000 1.730 1.000 1.240 1.163 1.041 1.833 1.222 1.074 1.833 1.000 

Temperature °C - - - - - - - - - - - - - - - - - - - - 

General Notes 

20 - Primary Mill Grinding Parameters 20 - Grind Classification Parameters 20 - Secondary Mill Grinding Parameters 

20 - Desliming Parameters 


percent of tin in each stream Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value 

relative to tin in fine ore feed Tin fine ore feed rate tonne/hr 35.42 Classification cyclone feed solids content wt% 50.0% Secondary mill operating solids content wt% 65.0% Primary desliming solids recovery to U/F wt% 78.7% 

(stream 10.01). Tin fine ore grade wt% Sn 0.71% Classification cyclone underflow solids wt% 70.0% Primary desliming tin recovery to U/F wt% 89.1% 

Tin fine ore moisture content wt% 4.0% Classification cyclone solids recovery to U/F wt% 70.0% Primary desliming underflow solids content wt% 70.0% 

Tin ore solids specific gravity - 2.85 Classification screen oversize solids content wt% 80.0% Secondary desliming feed solids content wt% 28.0% 

Tin concentrate solids specific gravity - 5.50 Classification screen solids recovery to O/S wt% 90.0% Primary desliming solids recovery to U/F wt% 73.0% 

Primary mill operating solids content wt% 70.0% Wash water addition to classification screen wt% 10.0% Primary desliming tin recovery to U/F wt% 90.8% 

Primary desliming underflow solids content wt% 70.0%




Reference: Tin Ore Crushing, Grinding and Gravity Concentration Checked By: J. Dean Thibault, P.Eng. Page: 2 of 14 Revision: 00 

Plant Area 

20 - Centrifugal Separation Desliming Circuit 

Stream Number Description 20.15 20.16 20.17 60.06 

and 

Centrifugal Centrifugal Deslimed Ore ProcessWater 

Parameter Units Sep. Tail Sep. Con To Mag Sep To Centrifugal 

Solid Phase 

Sn Concentration wt% 0.22% 2.09% 0.88% 0.00% 

Sn Mass Flow kg/hr 19.8 10.0 231.6 0.0 

Sn Distribution 1 wt% 7.88% 3.99% 92.12% 0.00% 

Total Solids Mass Flow tonne/hr 9.10 0.48 26.32 0.00 

Liquid Phase 

Sn Concentration g/L - - - - 

Sn Mass Flow tonne/hr - - - - 

Water Mass Flow tonne/hr 148.235 22.329 33.402 22.276 

Total Solution Mass Flow tonne/hr 148.235 22.329 33.402 22.276 

Total Solution Volume Flow m³/hr 148.235 22.329 33.402 22.276 

Chemical Mass Flow tonne/hr - - - - 

Liquid Specific Gravity - 1.000 1.000 1.000 1.000 

Overall 

Total Mass Flow tonne/hr 157.335 22.808 59.719 22.276 

Total Volumetric Flow m³/hr 151.428 22.497 42.636 22.276 

Solids - Percent wt% 5.8% 2.1% 44.1% 0.0% 

Slurry Specific Gravity - 1.039 1.014 1.401 1.000 

Temperature °C - - - - 

General Notes 

20 - Centrifugal Gravity Desliming Parameters 20 - Overall Desliming Circuit Recoveries 20 - Ore Grades To Magnetic Separation 


percent of tin in each stream Parameter Units Value Parameter Units Value Parameter Units Value 

relative to tin in fine ore feed Centrifugal separator solids recovery to con wt% 5.0% Tin wt% 92.12% Tin wt% 0.88% 

(stream 10.01). Centrifugal separator tin recovery to con wt% 33.6% Indium wt% 100.00% Indium ppm 245.92 

Centrifugal separator con solids content wt% 90.0% Zinc wt% 100.00% Zinc wt% 2.45% 

Centrifugal rinsed concentrate solids content wt% 2.1% Copper wt% 100.00% Copper wt% 0.30% 

Lead wt% 100.00% Lead wt% 0.05% 

Arsenic wt% 100.00% Arsenic wt% 1.91% 

Tungsten wt% 92.12% Tungsten wt% 0.11% 

Molybenum wt% 100.00% Molybenum wt% 0.00% 

Bismuth wt% 100.00% Bismuth wt% 0.09% 



Revision based on desliming after sulfide flotation






Reference: Magnetic Separation and Zinc Flotation Circuit Checked By: J. Dean Thibault, P.Eng. Page: 3 of 14 Revision: 00 

Plant Area 

31 - Magnetic Separation and Zinc Flotation Circuit 

Stream Number and Description 31.01 31.02 60.07 31.03 60.08 31.04 31.05 31.06 31.07 31.08 31.09 31.10 31.11 

Magnetics Non-magnetics ProcessWater Zinc Rougher ProcessWater Zinc Rougher Zinc Rougher Zinc Scav Zinc Scav Zinc Cleaner Zinc Cleaner Zinc Cleaner Dewatered 

Parameter Units To Tailings To Zinc Float To Mag Sep Float Feed To Zinc Float Float Con Float Tails Float Con Float Tails Float Feed Float Con Float Tail Zinc Con 

Solid Phase 

Zn Concentration wt% 1.05% 2.46% 0.00% 2.75% 0.00% 25.00% 0.72% 10.00% 0.37% 20.75% 50.00% 6.21% 50.00% 

Zn Mass Flow kg/hr 1.93 642.66 0.00 779.92 0.00 592.74 187.18 93.59 93.59 686.33 549.07 137.27 549.07 

Zn Distribution 1 wt% 0.30% 99.70% 0.00% 121.00% 0.00% 91.96% 29.04% 14.52% 14.52% 106.48% 85.18% 21.30% 85.18% 

Total Solids Mass Flow tonne/hr 0.18 26.13 0.00 28.34 0.00 2.37 25.97 0.94 25.03 3.31 1.10 2.21 1.10 

Liquid Phase 

Water Mass Flow tonne/hr 4.421 33.168 4.187 66.129 25.956 9.484 56.646 3.744 52.902 13.23 6.223 7.005 0.591 

Total Solution Mass Flow tonne/hr 4.421 33.168 4.187 66.129 25.956 9.484 56.646 3.744 52.902 13.23 6.223 7.005 0.591 

Total Solution Volume Flow m³/hr 4.421 33.168 4.187 66.129 25.956 9.484 56.646 3.744 52.902 13.23 6.223 7.005 0.591 

Chemical Mass Flow kg/hr - - - - - - - - - - - - - 

Liquid Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 

Overall 

Total Mass Flow tonne/hr 4.605 59.301 4.187 94.471 25.956 11.855 82.616 4.680 77.936 16.53 7.321 9.213 1.689 

Total Volumetric Flow m³/hr 4.486 42.338 4.187 76.074 25.956 10.048 66.025 3.966 62.059 14.015 6.484 7.531 0.853 

Solids - Percent wt% 4.0% 44.1% 0.0% 30.0% 0.0% 20.0% 31.4% 20.0% 32.1% 20.0% 15.0% 24.0% 65.0% 

Slurry Specific Gravity - 1.027 1.401 1.000 1.242 1.000 1.180 1.251 1.180 1.256 1.180 1.129 1.223 1.981 

Temperature °C - - - - - - - - - - - - - 

General Notes 

31 - Magnetic Separation Parameters 

31 - Magnetic Separation and Zinc Flotation Parameters 

31 - Zinc Flotation Parameters 

31 - Zinc Flotation Parameters 

1. Zinc distribution is calculated as 

percent of Zinc in each stream Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value 

relative to Zinc in run of mine ore Overall metals loss to magnetics wt% 0.30% Solids recovery to magnetics wt% 0.70% Rougher float concentrate zinc grade wt% 25.0% Cleaner float concentrate zinc grade wt% 50.0% 

(stream 10.01). Magnetics solids content wt% 4.0% Rougher flotation zinc to concentrate wt% 76.0% Cleaner flotation zinc to concentrate wt% 80.0% 

Non-magnetics feed grade to zinc flotation Rougher flotation feed solids content wt% 30.0% Cleaner flotation con. solids content wt% 15.0% 

Tin wt% 0.88% Concentrate specific gravity - 4.2 Rougher flotation concentrate solids content wt% 20.0% 

Indium ppm 246.9 Tailings specific gravity - 2.85 Thickened zinc concentrate solids content wt% 65.0% 

Zinc wt% 2.46% Scavenger float concentrate zinc grade wt% 10.0% Process water reclaimed for flotation tonne/hr 5.63 

Copper wt% 0.30% Scavenger flotation zinc to concentrate wt% 50.0% 

Lead wt% 0.05% Scavenger flotation con. solids content wt% 20.0% 

Arsenic wt% 1.92% 

Tungsten wt% 0.11% 

Molybenum wt% 0.00% 


Plant Area 

Stream Number and Description 

Parameter 

Solid Phase 

Units 

Liquid Phase 

Overall 

General Notes 

31 - Zinc Flotation Recoveries 31 - Final Zinc Concentrate Grade 

31 - Final Zinc Concentrate Recoveries From ROM Ore 31 - Zinc Flotation Circuit Reagent Dosages 

Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value 

Tin wt% 3.9% Tin wt% 0.82% Tin wt% 3.58% Copper sulfate to roughers g/tonne ore 100.0 

Indium wt% 83.3% Indium ppm 4894.50 Indium wt% 83.05% Copper sulfate to cleaners g/tonne ore 20.0 

Zinc wt% 85.4% Zinc wt% 50.00% Zinc wt% 85.18% Collector (R-3894) to roughers g/tonne ore 10.0 

Copper wt% 5.0% Copper wt% 0.35% Copper wt% 4.99% Collector (R-3894) to cleaners g/tonne ore 2.0 

Lead wt% 85.0% Lead wt% 1.09% Lead wt% 84.75% Hydrated lime to roughers g/tonne ore 3500.0 

Arsenic wt% 2.0% Arsenic wt% 0.91% Arsenic wt% 1.99% Hydrated lime to cleaners g/tonne ore 250.0 

Tungsten wt% 3.5% Tungsten wt% WO 3 0.09% Tungsten wt% 3.21% Frother (MIBC) to roughers g/tonne ore 4.0 

Molybenum wt% 75.0% Molybenum wt% MoS 2 0.00% Molybenum wt% 0.00% Frother (MIBC) to cleaners g/tonne ore 0.5 

Bismuth wt% 29.6% Bismuth wt% 0.67% Bismuth wt% 29.51% 

Other Gangue wt% 10.00%






Reference: Arsenic Flotation Circuit Checked By: J. Dean Thibault, P.Eng. Page: 4 of 14 Revision: 00 

Plant Area 

32 - Arsenic Flotation Circuit 

Stream Number and Description 32.01 60.09 32.02 32.03 32.04 32.05 32.06 32.07 32.08 60.10 60.11 32.09 32.10 32.11 32.12 32.13 32.14 32.15 

Arsenic Rough ProcessWater Arsenic Rough Arsenic Rough Arsenic Float Arsenic Float Arsenic Float Arsenic Float Arsenic Float ProcessWater ProcessWater Arsenic Float Arsenic Scav Arsenic Scav Arsenic Scav Arsenic Clean Arsenic Clean Arsenic Clean 

Parameter Units Float Feed To Arsenic Fl Float Con Float Tails Cyclone Feed Cyclone O/F Cyclone U/F Screen U/S Screen O/S To Screen To Regr Mill Regrind Disch Float Feed Float Con Float Tails Float Feed Float Tails Float Con 

Solid Phase 

As Concentration wt% 2.04% 0.00% 15.00% 0.61% 0.61% 0.61% 0.61% 0.61% 0.61% 0.00% 0.00% 0.61% 0.61% 5.00% 0.45% 12.50% 5.00% 20.00% 

As Mass Flow kg/hr 547.67 0.00 399.80 147.87 399.65 119.89 279.75 27.98 251.78 0.00 0.00 251.78 147.87 44.36 103.51 444.16 88.83 355.33 

As Distribution 1 wt% 108.90% 0.00% 79.49% 29.40% 79.47% 23.84% 55.63% 5.56% 50.06% 0.00% 0.00% 50.06% 29.40% 8.82% 20.58% 88.32% 17.66% 70.65% 

Total Solids Mass Flow tonne/hr 26.81 0.00 2.67 24.14 65.26 19.58 45.68 4.57 41.11 0.00 0.00 41.11 24.14 0.89 23.26 3.55 1.78 1.78 

Liquid Phase 

Water Mass Flow tonne/hr 62.557 5.513 10.661 51.896 74.033 54.456 19.577 11.257 10.278 1.958 11.859 22.137 65.71 3.549 62.164 14.21 4.143 10.068 

Total Solution Mass Flow tonne/hr 62.557 5.513 10.661 51.896 74.033 54.456 19.577 11.257 10.278 1.958 11.859 22.137 65.71 3.549 62.164 14.21 4.143 10.068 

Total Solution Volume Flow m³/hr 62.557 5.513 10.661 51.896 74.033 54.456 19.577 11.257 10.278 1.958 11.859 22.137 65.71 3.549 62.164 14.21 4.143 10.068 

Chemical Mass Flow kg/hr - - - - - - - - - - - - - - - - - - 

Liquid Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 

Overall 

Total Mass Flow tonne/hr 89.367 5.513 13.327 76.041 139.289 74.033 65.256 15.825 51.389 1.958 11.859 63.249 89.86 4.436 85.421 17.763 5.918 11.844 

Total Volumetric Flow m³/hr 71.964 5.513 11.296 60.368 96.930 61.325 35.605 12.860 24.703 1.958 11.859 36.562 74.185 3.760 70.324 15.056 4.766 10.491 

Solids - Percent wt% 30.0% 0.0% 20.0% 31.8% 46.8% 26.4% 70.0% 28.9% 80.0% 0.0% 0.0% 65.0% 26.9% 20.0% 27.2% 20.0% 30.0% 15.0% 

Slurry Specific Gravity - 1.242 1.000 1.180 1.260 1.437 1.207 1.833 1.231 2.080 1.000 1.000 1.730 1.211 1.180 1.215 1.180 1.242 1.129 

Temperature °C - - - - - - - - - - - - - - - - - - 

General Notes 

32 - Arsenic Flotation Feed Grades 32 - Arsenic Flotation Parameters 32 - Arsenic Flotation Parameters 

32 - Arsenic Flotation Regrind Parameters 

1. Arsenic distribution is calculated as 

percent of Arsenic in each stream Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value 

relative to Arsenic in run of mine ore Tin wt% 0.89% Concentrate specific gravity - 4.2 Classification cyclone underflow solids wt% 70.0% 

(stream 10.01). Indium ppm 40.19 Tailings specific gravity - 2.85 Scavenger float concentrate arsenic grade wt% 5.0% Classification cyclone solids recovery to U/F wt% 70.0% 

Zinc wt% 0.35% Scavenger flotation arsenic to concentrate wt% 30.0% Classification screen oversize solids content wt% 80.0% 

Copper wt% 0.28% Rougher float concentrate arsenic grade wt% 15.0% Scavenger flotation con. solids content wt% 20.0% Classification screen solids recovery to O/S wt% 90.0% 

Lead wt% 0.01% Rougher flotation arsenic to concentrate wt% 73.0% Wash water addition to classification screen wt% 10.0% 

Arsenic wt% 1.83% Rougher flotation feed solids content wt% 30.0% Cleaner float concentrate arsenic grade wt% 20.0% Arsenic float regrind mill operating solids wt% 65.0% 

Tungsten wt% 0.11% Rougher flotation concentrate solids content wt% 20.0% Cleaner flotation arsenic to concentrate wt% 80.0% 

Molybenum wt% 0.00% Cleaner flotation con. solids content wt% 15.0% 


Plant Area 


Parameter 

Solid Phase 

Units 

Liquid Phase 

Overall 

General Notes 

32 - Arsenic Flotation Recoveries 32 - Final Arsenic Concentrate Grade 32 - Final Arsenic Concentrate Recoveries From ROM Ore 

32 - Arsenic Flotation Circuit Reagent Dosages 


Tin wt% 4.2% Tin wt% 0.52% Tin wt% 3.71% Sulfuric acid to roughers g/tonne ore 2000.0 

Indium wt% 47.2% Indium ppm 267.31 Indium wt% 7.34% Sulfuric acid to cleaners g/tonne ore 0.0 

Zinc wt% 42.0% Zinc wt% 2.07% Zinc wt% 5.69% Collector (PAX) to roughers g/tonne ore 250.0 

Copper wt% 55.4% Copper wt% 2.15% Copper wt% 49.00% Collector (PAX) to cleaners g/tonne ore 25.0 

Lead wt% 50.0% Lead wt% 0.06% Lead wt% 6.98% Collector (R-3894) to roughers g/tonne ore 5.0 

Arsenic wt% 77.4% Arsenic wt% 20.00% Arsenic wt% 70.65% Collector (R-3894) to cleaners g/tonne ore 0.0 



Bismuth wt% 57.7% Bismuth wt% 0.53% Bismuth wt% 37.82%






Reference: Tin Flotation Circuit Checked By: J. Dean Thibault, P.Eng. Page: 5 of 14 Revision: 00 

Plant Area 

33 - Tin Flotation Circuit 

Stream Number and Description 33.01 33.02 33.03 33.04 33.05 33.06 60.12 33.07 60.13 33.08 33.09 60.14 33.10 33.11 33.12 33.13 33.14 33.15 33.16 

Tin Rougher Tin Rougher Tin Rougher Tin Scavenger Tin Scavenger Tin Rougher ProcessWater Tin Rougher ProcessWater Tin Rougher Tin Scavenger ProcessWater Tin Scavenger Tin Cleaner Tin Cleaner Tin Cleaner Dewatered Dried Combined Tails 

Parameter Units Float Feed Float Con Float Tails Float Con Float Tails Centrif Feed To Centr Feed Centrif Con To Centr Con Centrif Tails Centrif Con To Centr Con Centrif Tails Float Feed Float Con Float Tails Tin Con Tin Con To Tailings 

Solid Phase 

Sn Concentration wt% 0.97% 10.94% 0.14% 4.80% 0.09% 1.65% 0.00% 3.58% 0.00% 0.83% 1.03% 0.00% 0.69% 10.22% 20.00% 1.89% 20.00% 20.00% 0.11% 

Sn Mass Flow kg/hr 229.12 197.96 31.16 11.50 19.66 25.39 0.00 16.50 0.00 8.89 4.44 0.00 4.44 209.45 188.51 20.95 188.51 188.51 24.10 

Sn Distribution 1 wt% 91.11% 78.72% 12.39% 4.57% 7.82% 10.10% 0.00% 6.56% 0.00% 3.53% 1.77% 0.00% 1.77% 83.29% 74.97% 8.33% 74.97% 74.97% 9.59% 

Total Solids Mass Flow tonne/hr 23.72 1.81 21.91 0.24 21.67 1.54 0.00 0.46 0.00 1.08 0.43 0.00 0.65 2.05 0.94 1.11 0.94 0.94 22.32 

Liquid Phase 

Water Mass Flow tonne/hr 64.58 7.238 57.346 1.357 55.989 10.757 5.244 2.420 2.396 10.733 2.259 2.236 10.710 8.60 5.341 3.25 0.508 0.050 66.70 

Total Solution Mass Flow tonne/hr 64.58 7.238 57.346 1.357 55.989 10.757 5.244 2.420 2.396 10.733 2.259 2.236 10.710 8.60 5.341 3.25 0.508 0.050 66.70 

Total Solution Volume Flow m³/hr 64.58 7.238 57.346 1.357 55.989 10.757 5.244 2.420 2.396 10.733 2.259 2.236 10.710 8.60 5.341 3.25 0.508 0.050 66.70 

Chemical Mass Flow kg/hr - - - - - - - - - - - - - - - - - - - 

Liquid Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 

Overall 

Total Mass Flow tonne/hr 88.303 9.047 79.256 1.597 77.659 12.294 5.244 2.881 2.396 11.809 2.689 2.236 11.356 10.64 6.284 4.36 1.450 0.992 89.01 

Total Volumetric Flow m³/hr 72.907 7.873 65.034 1.441 63.592 11.297 5.244 2.582 2.396 11.110 2.410 2.236 10.937 9.314 5.672 3.642 0.838 0.380 74.53 

Solids - Percent wt% 26.9% 20.0% 27.6% 15.0% 27.9% 12.5% 0.0% 16.0% 0.0% 9.1% 16.0% 0.0% 5.7% 19.2% 15.0% 25.4% 65.0% 95.0% 25.1% 

Slurry Specific Gravity - 1.211 1.149 1.219 1.108 1.221 1.088 1.000 1.116 1.000 1.063 1.116 1.000 1.038 1.143 1.108 1.197 1.730 2.609 1.194 

Temperature °C - - - - - - - - - - - - - - - - - - - 

General Notes 

33 - Tin Flotation Feed Grades 33 - Tin Flotation Parameters 33 - Tin Flotation Parameters 33 - Tin Flotation Parameters 



relative to tin in run of mine ore Tin wt% 0.91% Concentrate specific gravity - 4.2 Scavenger float concentrate tin grade wt% 4.8% Tin rougher centrifugal feed solids content wt% 12.5% 

(stream 10.01). Indium ppm 22.84 Tailings specific gravity - 2.85 Scavenger flotation tin to concentrate wt% 36.9% Tin rougher centrifugal solids recovery to con wt% 30.0% 

Zinc wt% 0.22% Scavenger flotation con. solids content wt% 15.0% Tin rougher centrifugal tin recovery to con wt% 65.0% 

Copper wt% 0.13% Rougher float concentrate tin grade wt% 10.9% Tin rougher centrifugal concentrate solids wt% 95.0% 

Lead wt% 0.00% Rougher flotation tin to concentrate wt% 86.4% Cleaner float concentrate tin grade wt% 20.0% Tin rougher centrifugal rinsed con solids wt% 16.0% 

Arsenic wt% 0.45% Rougher flotation feed solids content wt% 30.0% Cleaner flotation tin to concentrate wt% 90.0% Tin scav centrifugal solids recovery to con wt% 40.0% 

Tungsten wt% 0.11% Rougher flotation concentrate solids content wt% 20.0% Cleaner flotation con. solids content wt% 15.0% Tin scav centrifugal tin recovery to con wt% 50.0% 

Molybenum wt% 0.00% Tin scav centrifugal concentrate solids wt% 95.0% 

Bismuth wt% 0.03% Dewatered tin concentrate solids content wt% 65.0% Tin scav centrifugal rinsed con solids wt% 16.0% 

Dried tin concentrate moisture content wt% 5.0% 

Tin concentrate dryer heat load kW 172.1 

Process water recovered for recycle tonne/hr 4.834 Steam heating option steam consumption tonne/hr 0.308 

Plant Area 


Parameter 

Solid Phase 

Units 

Liquid Phase 

Overall 

General Notes 

33 - Tin Flotation Recoveries 33 - Final Tin Concentrate Grade 33 - Final Tin Concentrate Recoveries From ROM Ore 33 - Tin Flotation Circuit Reagent Dosages 


Tin wt% 88.7% Tin wt% 20.00% Tin wt% 74.97% Sulfuric acid to roughers g/tonne ore 2000.0 

Indium wt% 5.0% Indium ppm 28.18 Indium wt% 0.41% Sulfuric acid to cleaners g/tonne ore 0.0 

Zinc wt% 5.0% Zinc wt% 0.27% Zinc wt% 0.39% Sodium silicofluoride to roughers g/tonne ore 500.0 

Copper wt% 5.0% Copper wt% 0.16% Copper wt% 1.97% Sodium silicofluoride to cleaners g/tonne ore 0.0 

Lead wt% 5.0% Lead wt% 0.01% Lead wt% 0.35% Collector (SPA) to roughers g/tonne ore 230.0 

Arsenic wt% 5.0% Arsenic wt% 0.55% Arsenic wt% 1.03% Collector (SPA) to cleaners g/tonne ore 0.0 



Bismuth wt% 5.0% Bismuth wt% 0.04% Bismuth wt% 1.39% 

Iron wt% 0.55% 

Sulfur wt% 0.53% 

Thorium02 + Uranium308 wt% 0.00%






Reference: Tin Chloride Circuit Checked By: J. Dean Thibault, P.Eng. Page: 6 of 14 Revision: 00 

Plant Area 

40 - Tin Concentrate Pelletizing 40 - Tin Concentrate Chlorination Roast 

Stream Number and Description 33.15 80.01 80.02 60.15 41.01 41.02 41.03 41.04 41.05 41.06 41.07 41.08 60.16 41.09 41.10 41.11 60.17 

Low Grade Pulverized Calcium ProcessWater Pellets To Air To Fuel Oil To Dried Con. Fuel Oil To Comb. Air To Chlorinator Chlorinator ProcessWater Quench Slurry Chlorinator Crude SnCl2 ProcessWater 

Parameter Units Concentrate Coal/Coke Chloride To Pulverizer Dryer Pellet Dryer Pellet Dryer Pellets Chlorinator Chlorinator Gas Product Solid Residue To Quench To Tailings Gas To Treat Solution To SnCl2 Scrub 

Solid Phase 

Sn Concentration wt% 20.00% 0.00% 0.00% 0.00% 13.14% 0.00% 0.00% 13.14% 0.00% 0.00% 0.00% 0.49% 0.00% 0.49% 0.00% 0.00% 0.00% 

Sn Mass Flow kg/hr 188.51 0.000 0.000 0.000 188.508 0.000 0.000 188.508 0.000 0.000 0.000 3.770 0.000 3.770 0.000 0.000 0.000 

Sn Distribution 1 wt% 75.0% 0.0% 0.0% 0.0% 75.0% 0.0% 0.0% 75.0% 0.0% 0.0% 0.0% 1.5% 0.0% 1.5% 0.0% 0.0% 0.0% 

Chemical Mass Flow kg/hr - 28.61 349.00 - - 0.00 0.00 - 0.00 0.00 0.00 0.00 - 0.00 0.00 0.00 - 

Total Solids Mass Flow tonne/hr 0.943 0.030 0.349 0.000 1.435 0.000 0.000 1.435 0.000 0.000 0.000 0.768 0.000 0.768 0.000 0.005 0.000 

Liquid Phase 

Sn Concentration g/L 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 93.9 0.0 

Sn Mass Flow kg/hr 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 179.196 0.000 

Sn Distribution 1 wt% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 71.3% 0.0% 

Water Mass Flow tonne/hr 0.050 0.000 0.113 0.146 0.196 0.000 0.000 0.145 0.000 0.000 0.000 0.000 5.022 5.022 0.000 1.813 1.668 

Total Solution Mass Flow tonne/hr 0.050 0.000 0.113 0.146 0.196 0.000 0.073 0.145 0.064 0.000 0.000 0.000 5.022 5.022 0.000 2.099 1.668 

Total Solution Volume Flow m³/hr 0.050 0.000 0.113 0.146 0.196 0.000 - 0.145 - 0.000 0.000 0.000 5.022 5.022 0.000 1.908 1.668 

Chemical Mass Flow tonne/hr - - - - - - 0.000 - 0.000 - - - - - - - - 

Liquid Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 - 1.000 - 1.000 1.000 1.000 1.000 1.000 1.000 1.100 1.000 

Gas Phase 

Sn Mass Flow kg/hr - - - - - - - - - - 184.738 - - - 5.542 - - 

Sn Distribution 1 wt% - - - - - - - - - - - - - - - - - 

Total Gas Mass Flow tonne/hr - - - - - 10.045 - - - 0.628 1.504 - - - 1.068 - - 

Overall 

Total Mass Flow tonne/hr 0.992 0.030 0.462 0.146 1.631 10.045 0.073 1.580 0.064 0.628 1.504 0.768 5.022 5.790 1.068 2.104 1.668 

Total Volumetric Flow m³/hr 0.259 - - 0.146 0.515 - - 0.464 - - - - 5.022 5.192 - 1.908 1.668 

Solids - Percent wt% 95.0% 100.0% 100.0% 0.0% 88.0% 0.0% 0.0% 98.0% 0.0% 0.0% 0.0% 100.0% 0.0% 13.3% 0.0% 0.2% 0.0% 

Slurry Specific Gravity - 3.830 - - 1.000 3.169 - - - - - - - 1.000 1.115 - 1.103 1.000 

Temperature °C 20.0 20.0 20.0 20.0 20.0 20.0 20.0 175.0 20.0 20.0 875.0 875.0 15.0 50.0 72.5 72.5 20.0 

General Notes 

40 - Tin Concentrate Pelletizing Parameters 40 - Tin Chlorination Reactor 40 - Tin Chlorination Reactor 

40 - Tin Chlorination Residue and Gas Quench 



relative to tin in run of mine ore Tin concentrate moisture content wt% 8.0% Concentrate pellet feed moisture content wt% 2.0% Chlorination reactor operating temperature °C 875.0 Residue Quench 

(stream 10.01). Tin concentrate solids specific gravity - 4.5 Concentrate pellet feed iron content wt% 10.0% Chlorination reactor burner thermal efficiency % 75.0% Residue quench tank operating temperature °C 50.0 

Pellet moisture content wt% 12.0% Concentrate pellet feed fluoride content wt% 5.0% Ore calcination relative to solids heat-up % 40.0% Process water temperature to quench tank °C 15.0 

Calcium chloride stoichiometry ratio - 2.0 Reactor off-gas products Volatilization Off-Gas Heat loss relative to solids heat-up % 40.0% Residue quench tank heat load kW 204.3 

Carbon stoichiometry ratio - 1.5 Tin 98.0% kg/hr 184.738 Chlorination reactor heat load 

Coal/Coke carbon content wt% 95.0% Zinc 81.0% kg/hr 2.053 Solids heat-up kW 323.7 Gas Quench/Scrubbing 

Calcium chloride purity as CaCl22H2O wt% 100.0% Copper 13.0% kg/hr 0.200 Ore calcination reactions kW 129.5 Tin chloride concentration g/L SnCl2 150.0 

Pelletizer feed temperature °C 20.0 Lead 90.0% kg/hr 0.045 Heat loss kW 129.5 Tin chloride solution density tonne/m³ 1.10 

Concentrate solids heat capacity kJ/kg°C 1.16 Arsenic 99.0% kg/hr 5.124 Total kW 582.6 

Dryer outlet temperature °C 175.0 Tungsten 0.0% kg/hr 0.000 Total heat load as fuel kW 776.8 

Pellet dryer air flow ratio kg air/kg pellet 7.0 Molybenum 20.0% kg/hr 0.000 

Pellet dryer burner thermal efficiency % 75.0% Iron 19.0% kg/hr 17.908 Fuel For Dryer tonne/hr 0.073 

Pellet dryer heat load kW 882.8 Fluoride 20.0% kg/hr 9.425 Fuel For Chlorination Reactor tonne/hr 0.064






Reference: Tin Chloride Circuit Checked By: J. Dean Thibault, P.Eng. Page: 7 of 14 Revision: 00 

Plant Area 

40 - Tin Chloride Solution Purification 

40 - Tin Chloride Crystallization Circuit 

Stream Number and Description 41.12 41.13 41.14 90.01 41.15 41.16 60.18 41.17 41.18 41.19 41.20 41.21 

Impurity SnCl2 Soln Crystallizer Steam To Crystallizer Condensate Condenser Tin Chloride Mother Liquor Mother Liquor Wet SnCl2 Dry SnCl2 

Parameter Units Precipitate To Crystallizer Feed Crystallizer Vapor To WWT Cooling Water Crystal Slurry Filtrate Purge to WWT Crystals Crystals 

Solid Phase 

Sn Concentration wt% 16.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 62.60% 0.00% 0.00% 62.60% 62.60% 

Sn Mass Flow kg/hr 8.96 0.000 0.000 0.000 0.000 0.000 0.000 170.094 0.000 0.000 170.094 170.094 

Sn Distribution 1 wt% 3.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 67.6% 0.0% 0.0% 67.6% 67.6% 

Chemical Mass Flow kg/hr 46.62 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total Solids Mass Flow tonne/hr 0.056 0.000 0.000 0.000 0.000 0.000 0.000 0.272 0.000 0.000 0.272 0.272 

Liquid Phase 0 

Sn Concentration g/L 0.0 81.5 81.5 0.0 0.0 0.0 0.0 400.0 400.0 400.0 0.0 0.0 

Sn Mass Flow kg/hr 0.000 170.236 170.236 0.000 0.000 0.000 0.000 226.417 226.417 0.142 0.000 0.000 

Sn Distribution 1 wt% 0.0% 67.7% 67.7% 0.0% 0.0% 0.0% 0.0% 90.0% 90.0% 0.1% 0.0% 0.0% 

Water Mass Flow tonne/hr 0.000 1.994 1.994 0.000 0.000 1.994 71.707 0.318 0.318 0.000 0.030 0.000 

Total Solution Mass Flow tonne/hr 0.000 2.224 2.224 0.000 0.000 0.000 0.000 0.679 0.679 0.000 0.030 0.000 

Total Solution Volume Flow m³/hr 0.000 2.090 2.090 0.000 0.000 0.000 0.000 0.566 0.566 0.000 0.030 0.000 

Chemical Mass Flow tonne/hr 0.000 - - - - - - - - - - - 

Liquid Specific Gravity - 0.000 1.065 1.065 1.000 1.000 1.000 1.000 1.200 1.200 1.200 1.000 1.000 

Gas Phase 0 

Sn Mass Flow kg/hr - - - - - - - - - - - - 

Sn Distribution 1 wt% - - - - - - - - - - - - 

Total Gas Mass Flow tonne/hr - - - 2.352 1.994 - - - - - - - 

Overall 0 

Total Mass Flow tonne/hr 0.056 2.224 2.224 2.352 1.994 1.994 71.707 0.951 0.679 0.000 0.302 0.272 

Total Volumetric Flow m³/hr - 2.090 2.090 - - - - - - 0.000 - - 

Solids - Percent wt% - 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 40.0% 40.0% 0.0% 90.0% 100.0% 

Slurry Specific Gravity - - 1.065 1.065 - - - - 0.000 1.200 - - 

Temperature °C - 72.5 72.5 - 90.0 90.0 30.0 90.0 90.0 90.0 70.0 20.0 

General Notes 

40 - Gas Quench Scubber Parameters 40 - Solution Purification Parameters 40 - Tin Chloride Crystallizing Parameters 40 - Tin Chloride Final Product 

Parameter Solution Precipitate Gas Solution Flow Parameter Precipitate Solution Flow Parameter Units Value Parameter Crystallizer Solids Flow Impurities 

Recovery Recovery Recovery kg/hr Recovery kg/hr Crystallizer wt% 100.0% Recovery kg/hr ppm 

evaporation rate 

97.0% 0.0% 3.0% 179.196 5.0% 170.236 Crystallizer operating temperature °C 90.0 99.9% 170.094 

Tin Tin Tin 

Zinc 97.0% 0.0% 3.0% 1.991 Zinc 1.0% 1.971 Tin chloride heat of crystallization kJ/kg 238.0 Zinc 5.0% 0.099 359.9 

Copper 97.0% 0.0% 3.0% 0.194 Copper 1.0% 0.192 Steam heating value kJ/kg 2010.0 Copper 5.0% 0.010 35.0 

Lead 97.0% 0.0% 3.0% 0.043 Lead 1.0% 0.043 Cooling water inlet temperature °C 15.0 Lead 5.0% 0.002 7.8 

Arsenic 5.0% 95.0% 0.0% 0.256 Arsenic 30.0% 0.179 Cooling water outlet temperature °C 30.0 Arsenic 5.0% 0.009 32.7 

Tungsten 0.0% 100.0% 0.0% 0.000 Tungsten 1.0% 0.000 Tin chloride crystal slurry solids content wt% 40.0% Tungsten 5.0% 0.000 0.0 

Molybenum 5.0% 92.0% 3.0% 0.000 Molybenum 1.0% 0.000 Dewatered tin chloride moisture content wt% 10.0% Molybenum 5.0% 0.000 0.0 

Iron 97.0% 0.0% 3.0% 17.371 Iron 1.0% 17.197 Iron 5.0% 0.860 3139.5 

Fluoride 97.0% 0.0% 3.0% 9.143 Fluoride 1.0% 9.051 Fluoride 0.0% 0.000 0.0 

Crystallizer evaporator heat load kW 1313.4 

Wash water addition to precipitate filtration wt% 10% Tin chloride dryer heat load kW 56.8 Tin Chloride Purity as SnCl2 wt% 99.2% 

Lime addition rate kg/kg ppt 5.0 Steam heating option steam consumption tonne/hr 0.102





Project: Mount Pleasant North Zone Development - Scoping Study Prepared By: Stephanie Scott, P.Eng. Status: Preliminary Rev. Date: November 30, 2009 

Reference: Indium and Zinc Hydromet Circuit Checked By: J. Dean Thibault, P.Eng. Page: 8 of 14 Revision: 00 

Plant Area 

42 - Bulk Sulfide Concentrate Leaching Circuit 

Stream Number and Description 42.01 70.01 42.02 42.03 42.04 70.02 42.05 42.06 42.07 42.08 42.35 80.12 42.36 42.37 42.38 70.08 42.39 42.40 42.41 80.12 

BS Conc from ProcessWater Slurry Preheat MS Leach Leach Residue ProcessWater Washed Leach Leach Residue 2 o Cl 2 Recycle Leach Sol'n to Extr. Raff. Cl 2 Gas Make Discharge FeCl 3 Sol'n to Extr. Raff. Pressurized O 2 Oxyhydrolysis Depressuriz. Vent Gas from HCl to Fe 2O 3 

Parameter Units Float Circuit Slurry Preheat Discharge Discharge from Thickener to Resid Wash Resid to Tails Filtrate to 2 o Cl 2 To Leach Purification to 1 o Cl 2 up to 1 o Cl 2 From 1 o Cl 2 MS leach Bleed to OxyH to Oxyhydr. Discharge Discharge Depressuriz. Wash / Filter 

Solid Phase 

Indium Concentration wt% 0.49% - 0.49% 0.02% 0.02% - 0.02% 0.02% 0.02% 0.02% 0.00% - 0.00% 0.02% 0.00% - 0.00% 0.00% - - 

Indium Mass Flow tonne/hr 0.005375 - 0.005 1.07E-04 1.05E-04 - 1.03E-04 2.11E-06 2.11E-06 2.15E-06 1.94E-10 - 1.94E-10 2.11E-06 2.06E-11 - 2.06E-11 2.06E-11 - - 

Zinc Concentration wt% 50.00% - 50.00% 2.27% 2.27% - 2.27% 2.27% 2.27% 2.27% 0.03% - 0.03% 2.25% 0.03% - 0.00% 0.00% - - 

Zinc Mass Flow tonne/hr 0.549 - 0.549 1.10E-02 1.08E-02 - 1.05E-02 2.15E-04 2.15E-04 2.20E-04 1.99E-08 - 1.99E-08 2.15E-04 2.11E-09 - 2.11E-09 2.11E-09 - - 

Iron Concentration wt% 4.71% - 4.71% 3.71% 3.71% - 3.71% 3.71% 3.71% 3.71% 10.15% - 10.15% 3.75% 10.15% - 69.94% 69.94% - - 

Iron Mass Flow tonne/hr 0.052 - 0.052 1.80E-02 1.76E-02 - 1.73E-02 3.52E-04 3.52E-04 3.59E-04 6.06E-06 - 6.06E-06 3.58E-04 6.43E-07 - 0.101 0.101 - - 

Total Solids Mass Flow tonne/hr 1.098 - 1.098 0.484 0.475 - 0.465 0.009 0.009 0.010 5.97E-05 - 5.97E-05 0.010 6.33E-06 - 0.145 0.145 - - 

Solids Specific Gravity - 4.000 - 4.000 2.600 2.600 - 2.600 2.600 2.600 2.600 8.241 - 8.241 2.635 8.241 - 6.114 6.114 - - 

Aqueous Phase 

Indium Concentration g/L - - 0.130 0.587 0.587 - 0.000 0.328 0.328 0.587 0.011 - 0.011 0.026 0.011 - 0.012 0.014 0.000 - 

Indium Mass Flow tonne/hr - - 5.04E-05 5.566E-03 1.50E-04 - 0.000 1.50E-04 1.50E-04 5.42E-03 9.79E-05 - 9.79E-05 2.48E-04 1.04E-05 - 1.04E-05 1.04E-05 0.000 - 

Zinc Concentration g/L - - 1.658 59.500 59.500 - 0.000 33.273 33.273 59.500 1.163 - 1.083 2.613 1.163 - 1.220 1.402 0.000 - 

Zinc Mass Flow tonne/hr - - 6.45E-04 0.564 0.015 - 0.000 0.015 0.015 0.549 0.010 - 0.010 0.025 1.05E-03 - 1.05E-03 1.05E-03 0.000 - 

Iron(III) Concentration g/L - - 24.910 - - - 0.000 - - - 0.068 - 102.371 97.522 0.068 - 0.000 0.000 0.000 - 

Iron(III) Mass Flow tonne/hr - - 0.010 - - - 0.000 - - - 5.80E-04 - 0.938 0.938 6.15E-05 - 0.00E+00 0.00E+00 0.000 - 

Iron(II) Concentration g/L - - - 108.800 108.800 - 0.000 60.841 60.841 108.800 112.127 - 2.088 4.881 112.127 - 0.000 0.000 0.000 - 

Iron(II) Mass Flow tonne/hr - - - 1.031 0.028 - 0.000 0.028 0.028 1.003 0.957 - 0.019 0.047 0.101 - 0.00E+00 0.00E+00 0.000 - 

Total Aqueous Mass Flow tonne/hr 0.000 0.318 0.389 9.477 0.256 0.211 0.009 0.457 0.457 9.221 8.035 - 8.630 9.087 0.852 - 0.812 0.750 0.062 6.40E-04 

Total Aqueous Volume Flow m³/hr 0.000 0.318 0.389 9.477 0.256 0.211 0.009 0.457 0.457 9.221 8.531 - 9.162 9.618 0.904 - 0.862 0.750 0.062 5.42E-04 

Aqueous Specific Gravity - 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 0.942 - 0.942 0.945 0.942 - 0.942 1.000 1.000 1.180 

Organic Phase 

Indium Concentration g/L - - - - - - - - - - - - - - - - - - - - 

Indium Mass Flow tonne/hr - - - - - - - - - - - - - - - - - - - - 

Zinc Concentration g/L - - - - - - - - - - - - - - - - - - - - 

Zinc Mass Flow tonne/hr - - - - - - - - - - - - - - - - - - - - 

Iron Concentration g/L - - - - - - - - - - - - - - - - - - - - 

Iron Mass Flow tonne/hr - - - - - - - - - - - - - - - - - - - - 

Extractant Mass Flow tonne/hr - - - - - - - - - - - - - - - - - - - - 

Diluent Mass Flow tonne/hr - - - - - - - - - - - - - - - - - - - - 

Total Organic Mass Flow tonne/hr - - - - - - - - - - - - - - - - - - - - 

Total Organic Volume Flow tonne/hr - - - - - - - - - - - - - - - - - - - - 

Organic Specific Gravity - - - - - - - - - - - - - - - - - - - - - 

Overall 

Total Mass Flow tonne/hr 1.098 0.318 1.487 9.961 0.730 0.211 0.475 0.467 0.467 9.231 8.035 0.044 8.630 9.097 0.852 0.016 0.957 0.895 0.062 6.40E-04 

Total Volumetric Flow m³/hr 0.275 0.318 0.664 9.663 0.438 0.211 0.188 0.461 0.461 9.225 8.531 - 9.162 9.622 0.904 - 0.886 0.774 0.062 5.42E-04 

Solids - Percent wt% 100.0% 0.0% 73.8% 4.9% 65.0% 0.0% 98.0% 2.0% 2.0% 0.1% 0.0% - 0.0% 0.1% 0.0% - 15.2% 16.2% 0.0% 0.0% 

Slurry Specific Gravity - 4.000 1.000 2.241 1.031 1.667 1.000 2.519 1.013 1.013 1.001 0.942 - 0.942 0.945 0.942 - 1.080 1.157 1.000 1.180 

Temperature °C 20.0 20.0 40.0 100.0 80.0 20.0 20.0 20.0 20.0 80.0 20.0 - 20.0 40.0 20.0 - 140.0 100.0 100.0 20.0 

General Notes 

42 - Bulk Sulfide Concentrate Grade Basis 42 - Bulk Sulfide Concentrate Metal Extraction Rates 42 - Bulk Sulfide Concentrate Leaching Circuit Parameters 

42 - Bulk Sulfide Concentrate Leach Heat Load Calculations 

1) It is assumed that oxide minerals and 

gangue material does not dissolve during Bulk Sulfide Concentrate Composition Units Value Leach Circuit Metal Extraction Units Value Parameter Units Value Parameter Units Value 

ferric chloride leach. Tin (contained in Cassiterite) wt% 0.25% Tin (contained in Cassiterite) wt% 0.00% Stoichiometric ferric ion requirement t Fe 3+ /hr 1.0414 Preheat slurry average specific heat capacity kJ/kg o C 1.49 

2) Saturated steam @ 150 psig is used Tin (contained in Stannite) wt% 0.57% Tin (contained in Stannite) wt% 90.00% Target iron concentration in leach g Fe 3+ /L 100.00 Slurry preheat heat loss (% sensible heat) % 15.00% 

to supply all heat load requirements. Indium (contained in InS) wt% 0.49% Indium (contained in InS) wt% 98.00% Ferric chloride stoichiometric excess - 0.91 Slurry preheat heat load kW 14.11 

Zinc (contained in Sphalerite) wt% 50.00% Zinc (contained in Sphalerite) wt% 98.00% Total ferric chloride requirement t Fe 3+ /hr 0.9477 Slurry preheat steam consumption tonne/hr 0.03 

Copper (contained in Chalcopyrite) wt% 0.35% Copper (contained in Chalcopyrite) wt% 97.00% Chlorine gas requirement t Cl 2/hr 0.0443 

Lead (contained in Galena) wt% 1.09% Lead (contained in Galena) wt% 99.00% Excess ferrous chloride to blowdown t FeCl 2/hr 0.2125 FeCl 3 sol'n average heat capacity kJ/kg o C 4.18 

Arsenic (contained in Arsenopyrite) wt% 0.91% Arsenic (contained in Arsenopyrite) wt% 25.00% FeCl 3 sol'n preheat heat loss (% sensible heat) % 15.00% 

Tungsten (contained in Wolframite) wt% 0.09% Tungsten (contained in Wolframite) wt% 0.00% Leach thickener U/F percent solids wt% 65.00% FeCl 3 sol'n preheat heat load kW 242.94 

Molybdenum (contained in Molybdenite) wt% 0.00% Molybdenum (contained in Molybdenite) wt% 0.00% Leach thickener solids recovery wt% 98.00% FeCl 3 sol'n preheat steam consumption tonne/hr 0.44 

Bismuth (contained in Bismuthinite) wt% 0.67% Bismuth (contained in Bismuthinite) wt% 54.00% 

Iron (contained in Pyrite) wt% 3.72% Iron (contained in Pyrite) wt% 70.00% Leach residue filter cake solids start of wash wt% 90.00% Leach slurry average heat capacity kJ/kg o C 4.00 

Gange Materials wt% 15.00% Gangue Materials wt% 0.00% Leach residue cake wash vol. displacement factor 4.00 Leach reactor heat loss (% sensible heat) % 15.00% 

Leach residue filter cake final dryness wt% 98.00% Leach reactor heat load kW 764.16 

Bulk Sulfide Concentrate Solids Specific Grav. - 4.00 Leach Residue Solids Specific Gravity - 2.60 Leach residue filter solids capture wt% 98.00% Leach reactor steam consumption tonne/hr 1.37 

Bulk Sulfide Concentrate Percent Solids wt% 100.00% 

Bulk Sulfide Concentrate Solids Heat Capacity kJ/kg o C 0.53 Percentage total tin in conc. as cassiterite wt% 30.00%







Plant Area 

42 - Bulk Sulfide Concentrate Leaching Circuit 

Stream Number and Description 70.09 42.42 (deleted) 42.43 (deleted) 42.44 42.45 42.64 42.65 42.66 80.18 42.67 42.68 

Process Water Vent Gas from Liquid from Fe 2O 3 Wash Fe 2O 3 Solids 1 o Cl 2 Offgas Misc. Vent Gas 2 o Cl 2 Off-gas NaOH Sol'n Treated Vent Cl 2 Scrubber 

Parameter Units to Fe 2O 3 Wash Knock-out Knock-out Filtrate to WW to Tails to 2 o Cl 2 to Cl 2 Scrubber to Cl 2 Scrubber to Cl 2 Scrubber to Atmosphere Bleed to WWT 

Solid Phase 

Indium Concentration wt% - 0.00% 0.00% - - 

Indium Mass Flow tonne/hr - 4.12E-13 2.02E-11 - - 

Zinc Concentration wt% - 0.00% 0.00% - - 

Zinc Mass Flow tonne/hr - 4.21E-11 2.06E-09 - - 

Iron Concentration wt% - 69.94% 69.94% - - 

Iron Mass Flow tonne/hr - 2.03E-03 0.099 - - 

Total Solids Mass Flow tonne/hr - 2.90E-03 0.142 - - 

Solids Specific Gravity - - 6.114 6.114 - - 

Aqueous Phase 

Indium Concentration g/L - 0.013 0.000 - - 

Indium Mass Flow tonne/hr - 1.04E-05 0.00E+00 - - 

Zinc Concentration g/L - 1.318 0.000 - - 

Zinc Mass Flow tonne/hr - 1.05E-03 0.00E+00 - - 

Iron(III) Concentration g/L - 0.000 0.000 - - 

Iron(III) Mass Flow tonne/hr - 0.00E+00 0.00E+00 - - 

Iron(II) Concentration g/L - 0.000 0.000 - - 

Iron(II) Mass Flow tonne/hr - 0.00E+00 0.00E+00 - - 

Total Aqueous Mass Flow tonne/hr 0.063 0.798 0.016 - - 

Total Aqueous Volume Flow m³/hr 0.063 0.798 0.016 - - 

Aqueous Specific Gravity - 1.000 1.000 1.000 - - 

Organic Phase 

Indium Concentration g/L - - - - - - - 

Indium Mass Flow tonne/hr - - - - - - - 

Zinc Concentration g/L - - - - - - - 

Zinc Mass Flow tonne/hr - - - - - - - 

Iron Concentration g/L - - - - - - - 

Iron Mass Flow tonne/hr - - - - - - - 

Extractant Mass Flow tonne/hr - - - - - - - 

Diluent Mass Flow tonne/hr - - - - - - - 

Total Organic Mass Flow tonne/hr - - - - - - - 

Total Organic Volume Flow tonne/hr - - - - - - - 

Organic Specific Gravity - - - - - - - - 

Overall 

Total Mass Flow tonne/hr 0.063 0.801 0.158 0.012 -0.005 

Total Volumetric Flow m³/hr 0.063 0.798 0.039 - - 

Solids - Percent wt% 0.0% 0.4% 90.0% - - 

Slurry Specific Gravity - 1.000 1.003 4.045 - - 

Temperature °C 20.0 20.0 20.0 - - 

General Notes 

42 - Chlorination & Oxyhydrolysis Reaction Parameters 42 - Chlorination & Oxyhydrolysis Reaction Parameters 42 - Leach Residue Wash Sol'n Preheat Parameters 40 - Tungsten Leaching Parameters 


gangue material does not dissolve during Parameter Units Value Parameter Units Value Parameter Units Value 

ferric chloride leach. Oxyhydrolysis reaction percent completion % 100.00% Oxyhydrolysis pressure let-down drum temp. 

o C 100.00 Wash sol'n average heat capacity kJ/kg o C 4.18 

O 2 stoiciometric excessfor oxyhydrolysis factor 1.10 1 o stage chlorinator reaction efficiency % 98.00% Heat loss (% sensible heat) % 15.00% 

Oxyhydrolysis reaction temperature 

o C 140.00 2 o stage chlorinator reaction efficiency % 98.00% Leach residue wash sol'n preheat temp. 

o C 80.00 

Oxyhydrolysis reaction pressure kPa 500.00 Leach residue wash sol'n preheat heat load kW 16.91 

Iron oxide filter cake dryness at start of wash wt% 90.00% Leach residue preheatsteam consumption tonne/hr 0.03 

Oxyhydrolysis feed stream average heat cap. kJ/kg o C 4.18 Iron oxide cake wash displacement volumes factor 4.00 

Oxyhydrolysis feed preheat heat loss % 15.00% Iron oxide cake wash water acidity M 0.10 

Oxyhydrolysis feed preheat discharge temp. 

o C 55.51 Iron oxide filter cake final dryness wt% 90.00% 

Iron oxide filter solids capture wt% 98.00% 

Oxyhydrolysis feed heater heat load kW 108.00 

Oxyhydrolysis feed heater steam consumption tonne/hr 0.193 Knock-out drum operating temperature 

o C 

Knock-out drum cooling loss (% sensible heat) % 10.00% 

Oxyhydr. reactor heat loss (% sensible heat) % 10.00% Knock-out drum cooling load kW 

Oxyhydr. heat of reaction (approx. at STP) kJ/kg Fe 2+ 586.23 Knock-out drum cooling water consumption tonne/hr 

Oxyhydrolysis reactor heat load kW 32.07 

Oxyhydrolysis reactor steam consumption tonne/hr 0.06







Plant Area 

42 - Leach Solution Purification 

Stream Number and Description 42.08 (copy) 80.01 42.09 70.03 80.02 42.10 42.11 80.03 80.04 42.12 70.04 80.05 42.13 (deleted) 42.14 80.06 42.15 42.16 

Leach Sol'n to Na 2CO 3 to Cooled ProcessWater 36wt% HCl PbCO 3 Leach Sol'n to Na 2S to Fe Powder to Cu/As Cement ProcessWater 36wt% HCl Cu/As Residue Cu/As Cement Dia. Earth to Leach Sol'n Leach Sol'n 

Parameter Units Purification Sol'n Cooling Leach Sol'n PbCO 3 Wash PbCO 3 Wash to Tails Cu/As Cement Cu/As Cement Cu/As Cement Discharge Residue Wash Residue Wash to Tails Sol'n to Filtrat. Sol'n Filtration Res. to Tails Filtrate to SX 

Solid Phase 

Indium Concentration wt% 0.022% - 0.009% - - 0.01% 0.01% - - 0.00% - - 0.00% - 0.00% 0.00% 

Indium Mass Flow tonne/hr 2.15E-06 - 2.15E-06 - - 2.11E-06 4.30E-08 - - 4.30E-08 - - 4.30E-08 - 4.28E-08 2.15E-10 

Zinc Concentration wt% 2.27% - 0.89% - - 0.89% 0.89% - - 0.03% - - 0.03% - 0.03% 0.03% 

Zinc Mass Flow tonne/hr 2.20E-04 - 2.20E-04 - - 2.15E-04 4.39E-06 - - 4.39E-06 - - 4.39E-06 - 4.37E-06 2.20E-08 

Iron Concentration wt% 3.71% - 1.46% - - 1.46% 1.46% - - 10.66% - - 10.66% - 10.15% 10.15% 

Iron Mass Flow tonne/hr 3.59E-04 - 3.59E-04 - - 3.52E-04 7.19E-06 - 0.067 1.34E-03 - - 1.34E-03 - 1.33E-03 6.71E-06 

Total Solids Mass Flow tonne/hr 0.010 0.006 0.025 - - 0.024 4.92E-04 0.009 0.067 0.013 - - 1.26E-02 6.29E-04 1.31E-02 6.61E-05 

Solids Specific Gravity - 2.600 2.530 5.025 - - 5.025 5.025 1.856 7.850 8.500 - - 8.500 2.200 8.241 8.241 

Aqueous Phase 

Indium Concentration g/L 0.587 - 0.581 - - 0.000 0.580 - - 0.576 - - 0.576 - 0.000 0.576 

Indium Mass Flow tonne/hr 0.005 - 0.005 - - 0.000 0.005 - - 0.005 - - 0.005 - 0.000 0.005 

Zinc Concentration g/L 59.500 - 58.840 - - 0.000 58.788 - - 58.388 - - 58.388 - 0.000 58.325 

Zinc Mass Flow tonne/hr 0.549 - 0.549 - - 0.000 0.549 - - 0.549 - - 0.549 - 0.000 0.549 

Iron(III) Concentration g/L - - - - - 0.000 10.750 - - - - - - - 0.000 - 

Iron(III) Mass Flow tonne/hr - - - - - 0.000 0.100 - - - - - - - 0.000 - 

Iron(II) Concentration g/L 108.800 - 107.593 - - 0.000 96.747 - - 113.722 - - 113.722 - 0.000 113.599 

Iron(II) Mass Flow tonne/hr 1.003 - 1.003 - - 0.000 0.903 - - 1.069 - - 1.069 - 0.000 1.069 

Total Aqueous Mass Flow tonne/hr 9.221 0.112 9.324 0.011 1.11E-04 2.68E-03 9.333 0.000 - 9.397 0.006 5.92E-05 9.397 0.006 1.46E-03 9.407 

Total Aqueous Volume Flow m³/hr 9.221 0.112 9.324 0.011 9.39E-05 2.68E-03 9.333 0.000 - 9.397 0.006 5.01E-05 9.397 0.006 1.46E-03 9.407 

Aqueous Specific Gravity - 1.000 1.000 1.000 1.000 1.180 1.000 1.000 1.000 - 1.000 1.000 1.180 1.000 1.000 1.000 1.000 

Organic Phase 

Indium Concentration g/L - - - - - - - - - - - - - - - - 

Indium Mass Flow tonne/hr - - - - - - - - - - - - - - - - 

Zinc Concentration g/L - - - - - - - - - - - - - - - - 

Zinc Mass Flow tonne/hr - - - - - - - - - - - - - - - - 

Iron Concentration g/L - - - - - - - - - - - - - - - - 

Iron Mass Flow tonne/hr - - - - - - - - - - - - - - - - 

Extractant Mass Flow tonne/hr - - - - - - - - - - - - - - - - 

Diluent Mass Flow tonne/hr - - - - - - - - - - - - - - - - 

Total Organic Mass Flow tonne/hr - - - - - - - - - - - - - - - - 

Total Organic Volume Flow tonne/hr - - - - - - - - - - - - - - - - 

Organic Specific Gravity - - - - - - - - - - - - - - - - - 

Overall 

Total Mass Flow tonne/hr 9.231 0.118 9.349 0.011 1.11E-04 0.027 9.333 0.009 0.067 9.409 0.006 5.92E-05 9.409 0.006 1.46E-02 9.407 

Total Volumetric Flow m³/hr 9.225 0.115 9.329 0.011 9.39E-05 0.007 9.333 0.005 0.008 9.398 0.006 5.01E-05 9.398 0.006 3.06E-03 9.407 

Solids - Percent wt% 0.10% 5.00% 0.26% 0.00% 0.00% 90.00% 0.01% 100.00% 100.00% 0.13% 0.00% 0.00% 0.13% 10.00% 90.00% 0.00% 

Slurry Specific Gravity - 1.001 1.031 1.002 1.000 1.180 3.583 1.000 1.856 7.850 1.001 1.000 1.180 1.001 1.058 4.780 1.000 

Temperature °C 80.00 20.00 20.00 20.00 20.00 20.00 50.00 20.00 20.00 50.00 20.00 20.00 20.00 20.00 20.00 20.00 

General Notes 

42 - Leach Solution Purification Circuit Parameters 42 - Cu/As Cementation Circuit Parameters 

42 - Leach Solution Precoat Filter Parameters 

40 - Tungsten Leaching Parameters 

Parameter Units Value Parameter Units Value Parameter Units Value 

Theor. solubilityof PbCO 3 in water @ 20 o C g/L 0.0011 Mass flow Cu 2+ in stream 42.11 tonne/hr 0.0098 Diatomaceous earth consumption basis t/t solids 0.05 

Mass flow PbCl 2 in stream 42.08 tonne/hr 1.55E-02 Mass flow As 5+ in stream 42.11 tonne/hr 0.0025 Leach solution precoat filter solids capture wt% 99.50% 

Cooling losses (% sensible heat) % 5.00% Percent aq. Fe present as Fe 3+ stream 42.11 % 10.00% Leach sol'n residue cake solids start of wash wt% 90.00% 

Lead crystallization cooling load kW 675.22 Sodium sulfide dosage g/L 1.00 Leach sol'n residue wash water acidity M 0.10 

Lead crystallization cooling water demand tonne/hr 38.77 Percent conversion of Cu 2+ to copper metal % 99.00% Leach sol'n residue wash vol. displacement factor 4.00 

Percent conversion of As 5+ to arsenic metal % 40.00% Leach solution residue filter cake final dryness wt% 90.00% 

Lead carbonate filter cake solid start of wash wt% 90.00% Iron powder stoichiometric excess factor 1.10 

Filter cake wash water acidity M 0.10 Percent unreacted iron powder stream 42.12 % 2.00% 

Lead carbonate cake wash vol. displacement factor 4.00 

Lead carbonate filter cake final dryness wt% 90.00% Precoat filter feed cooling loss (% sens. heat) % 5.00% 

Lead carbonate filter solids capture wt% 98.00% Precoat filter feed cooling load kW 344.14 

Precoat filter feed cooling water demand tonne/hr 19.76 

Cementation feed preheat loss (% sens. heat) % 15.00% 

Heat load preheat Cu/As cementation feed kW 373.87 

Cementation feed preheat steam consumption tonne/hr 0.67







Plant Area 

42 - Solvent Extraction Circuit Circuit 

Stream Number and Description 42.16 (copy) 80.07 42.17 42.18 42.19 80.08 70.05 42.20 42.21 80.09 80.10 70.06 42.22 42.23 80.11 70.07 42.24 42.25 42.26 42.27 

Leach Sol'n 36wt% HCl Organic to SX Extraction Loaded Org. 36wt% HCl ProcessWater Loaded Scrub Scrub. Organic NaCl Sol'n 36wt% HCl ProcessWater Loaded Strip Stripped Org. 36wt% HCl ProcessWater Loaded Acid AcidWash Sol AcidWash Sol Washed Org. 

Parameter Units Filtrate to SX to Aq.SX Feed Extr. Stage Raffinate to Scrub Stage Scrub Stage to Scrub Stage Aqueous Sol'n to Strip Stage to Strip Stage to Strip Stage to Strip Stage Aqueous Sol'n to Acid Wash to Acid Wash to Acid Wash Wash Sol'n to Lea Preheat Recycle Rec. to Extr. 

Solid Phase 

Indium Concentration wt% 0.00% - - 0.00% - - - 89.25% - - - - 0.00% - - - 0.00% 0.000% 0.000% - 

Indium Mass Flow tonne/hr 2.15E-10 - - 2.15E-10 - - - 5.42E-06 - - - - 0.000 - - - 0.000 0.000 0.000 - 

Zinc Concentration wt% 0.03% - - 0.033% - - - 0.000% - - - - 0.000% - - - 0.000% 0.000% 0.000% - 

Zinc Mass Flow tonne/hr 2.20E-08 - - 2.20E-08 - - - 0.00E+00 - - - - 0.000 - - - 0.000 0.000 0.000 - 

Iron Concentration wt% 10.15% - - 10.153% - - - 0.000% - - - - 0.000% - - - 0.000% 0.000% 0.000% - 

Iron Mass Flow tonne/hr 6.71E-06 - - 6.71E-06 - - - 0.00E+00 - - - - 0.000 - - - 0.000 0.000 0.000 - 

Total Solids Mass Flow tonne/hr 6.61E-05 - - 6.61E-05 - - - 6.07E-06 - - - - 0.00E+00 - - - 0.00E+00 0.00E+00 0.00E+00 - 

Solids Specific Gravity - 8.241 - - 8.241 - - - 7.283 - - - - 8.241 - - - 8.241 8.241 8.241 - 

Aqueous Phase 

Indium Concentration g/L 0.576 - - 1.15E-02 - - - 1.13E-01 - - - - 2.116 - - - 0.780 0.780 0.780 - 

Indium Mass Flow tonne/hr 0.00542 - - 1.08E-04 - - - 2.66E-04 - - - - 4.99E-03 - - - 7.36E-03 5.04E-05 7.31E-03 - 

Zinc Concentration g/L 58.325 - - 1.163 - - - 273.567 - - - - 8.844 - - - 9.984 9.984 9.984 - 

Zinc Mass Flow tonne/hr 0.549 - - 0.011 - - - 0.645 - - - - 0.021 - - - 9.42E-02 6.45E-04 0.094 - 

Iron(III) Concentration g/L 1.136 - - 0.068 - - - 1.712 - - - - 0.084 - - - 150.000 150.000 150.000 - 

Iron(III) Mass Flow tonne/hr 1.07E-02 - - 6.41E-04 - - - 4.04E-03 - - - - 1.98E-04 - - - 1.415 0.010 1.406 - 

Iron(II) Concentration g/L 113.599 - - 112.127 - - - 0.00E+00 - - - - 0.00E+00 - - - 0.000 0.000 0.000 - 

Iron(II) Mass Flow tonne/hr 1.058 - - 1.058 - - - 0.00E+00 - - - - 0.00E+00 - - - 0.000 0.000 0.000 - 

Total Aqueous Mass Flow tonne/hr 9.407 0.033 - 8.887 - 0.0024 1.080 2.359 - 0.000 0.000 2.359 2.385 - 0.039 0.031 10.380 0.071 10.308 - 

Total Aqueous Volume Flow m³/hr 9.407 0.028 - 9.435 - 0.0020 1.080 2.359 - 0.000 0.000 2.359 2.359 - 0.033 0.031 9.435 0.065 9.370 - 

Aqueous Specific Gravity - 1.000 1.180 - 0.942 - 1.180 1.000 1.000 - 1.189 1.180 1.000 1.011 - 1.180 1.000 1.100 1.100 1.100 - 

Organic Phase 

Indium Concentration g/L - - 2.67E-05 - 0.563 - - - 0.534 - - - - 5.34E-03 - - - - - 2.67E-05 

Indium Mass Flow tonne/hr - - 2.52E-07 - 5.31E-03 - - - 5.04E-03 - - - - 5.04E-05 - - - - - 2.52E-07 

Zinc Concentration g/L - - 3.42E-04 - 56.988 - - - 2.280 - - - - 0.068 - - - - - 3.42E-04 

Zinc Mass Flow tonne/hr - - 3.23E-06 - 0.538 - - - 0.022 - - - - 6.45E-04 - - - - - 3.23E-06 

Iron(III) Concentration g/L - - 5.14E-03 - 1.070 - - - 1.048 - - - - 1.027 - - - - - 5.14E-03 

Iron(III) Mass Flow tonne/hr - - 4.85E-05 - 1.01E-02 - - - 9.89E-03 - - - - 9.69E-03 - - - - - 4.85E-05 

Iron(II) Concentration g/L - - 0.00E+00 - 0.00E+00 - - - 0.00E+00 - - - - 0.00E+00 - - - - - 0.00E+00 

Iron(II) Mass Flow tonne/hr - - 0.00E+00 - 0.00E+00 - - - 0.00E+00 - - - - 0.00E+00 - - - - - 0.00E+00 

Extractant Mass Flow tonne/hr - - 1.899 - 1.899 - - - 1.899 - - - - 1.899 - - - - - 1.899 

Diluent Mass Flow tonne/hr - - 5.696 - 5.696 - - - 5.696 - - - - 5.696 - - - - - 5.696 

Total Organic Mass Flow tonne/hr - - 7.595 - 8.148 - - - 7.632 - - - - 7.606 - - - - - 7.595 

Total Organic Volume Flow m³/hr - - 9.435 - 9.435 - - - 9.435 - - - - 9.435 - - - - - 9.434 

Organic Specific Gravity - - - 0.805 - 0.864 - - - 0.809 - - - - 0.806 - - - - - 0.805 

Overall 

Total Mass Flow tonne/hr 9.407 0.033 7.595 8.887 8.148 0.0024 1.080 2.359 7.632 0.000 0.000 2.359 2.385 7.606 0.039 0.031 10.380 0.071 10.308 7.595 

Total Volumetric Flow m³/hr 9.407 0.028 9.435 9.435 9.435 0.0020 1.080 2.359 9.435 0.000 0.000 2.359 2.359 9.435 0.033 0.031 9.435 0.065 9.370 9.434 

Solids - Percent wt% 0.00% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 

Slurry Specific Gravity - 1.000 1.180 0.805 0.942 0.864 1.180 1.000 1.000 0.809 #DIV/0! #DIV/0! 1.000 1.011 0.806 1.180 1.000 1.100 1.100 1.100 0.805 

Temperature °C 20.00 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 20.0 

General Notes 

42 - SX Extraction Stage Parameters 42 - SX Scrub Stage & Indium Strip Stage Parameters 42 - SX Organic Acid Wash Stage Parameters 


gangue material does not dissolve during Parameter Units Value Parameter Units Value Parameter Units Value Parameter Units Value 

ferric chloride leach. Target aqueous HCl concentration in extr. M 3.50 Target aqueous HCl concentration in scrub M 0.01 Target aqueous NaCl concentration in strip M 0.00 Target aqueous HCl conc. in acid wash M 6.00 

Theoretical 36wt% HCl demand tonne/hr 3.33 Scrub stage organic/aqueous ratio (external) factor 4.00 Target aqueous HCl concentration in strip M 0.00 Acid wash stage organic/aqueous ratio factor 1.00 

Actual 36wt% HCl makeup required % of theo. 1.00% Indium (III) extraction to aqueous scrub sol'n wt% 5.00% Strip stage organic/aqueous ratio (external) factor 4.00 Percent aq. Fe as Fe 3+ in stream 42.16 wt% 1.00% 

Extraction organic/aqueous ratio (external) factor 1.00 Zinc (II) extraction to aqueous scrub sol'n wt% 96.00% Indium (III) extraction to aqueous strip sol'n wt% 99.00% Indium (III) extraction to acid wash sol'n wt% 99.50% 

Stoichiometric CYANEX 923 required tonne/hr 5.87 Iron (II) extraction to aqueous scrub sol'n wt% 100.00% Zinc (II) extraction to aqueous strip sol'n wt% 97.00% Zinc (II) extraction to acid wash sol'n wt% 99.50% 

Stoichiometric CYANEX 923 conc. in solvent wt% 77.33% Iron (III) extraction to aqueous scrub sol'n wt% 2.00% Iron (II) extraction to aqueous strip sol'n wt% 100.00% Iron (II) extraction to acid wash sol'n wt% 99.50% 

Actual CYANEX 923 concentration in solvent wt% 25.00% Lead(II) extraction to aqueous scrub solution wt% 96.00% Iron (III) extraction to aqueous strip sol'n wt% 2.00% Iron (III) extraction to acid wash sol'n wt% 99.50% 

Solubility of organic in aqueous phase mg/L 5.00 Copper(II) extraction to aqueous scrub sol'n wt% 98.00% Lead(II) extraction to aqueous strip solution wt% 96.00% Max. tolerable [Fe 3+ ] streams 42.24, 25 & 26 g Fe 3+ /L 150.00 

Indium (III) extraction to organic phase wt% 98.00% Copper(II) extraction to aqueous strip solution wt% 98.00% Overall solvent loss complete SX circuit vol% 0.01% 

Zinc (II) extraction to organic phase wt% 98.00% 

Iron (II) extraction to organic phase wt% 0.00% 

Iron (III) extraction to organic phase wt% 94.00% 

Lead(II) extraction to organic phase wt% 15.00% 

Copper(II) extraction to organic phase wt% 60.00%





Plant Area 

42 - Solvent Extraction Circuit Circuit 

Stream Number and Description 42.28 42.29 42.30 42.31 42.32 42.33 42.34 

Rec. Organic Rec. Organic Rec. Organic Fresh Organic Extr. Raff. ZnCl 2 Sol'n to InCl 3 Sol'n to 

Parameter Units from Extr. from Scrub from Strip Makeup Rec. to Leach Electrowinning Cementation 

Solid Phase 

Indium Concentration wt% - 0.00% 89.25% 0.00% 

Indium Mass Flow tonne/hr - 2.15E-10 0.000 0.000 

Zinc Concentration wt% - 0.033% 0.000% 0.000% 

Zinc Mass Flow tonne/hr - 2.20E-08 0.000 0.000 

Iron Concentration wt% - 10.153% 0.000% 0.000% 

Iron Mass Flow tonne/hr - 6.71E-06 0.000 0.000 

Total Solids Mass Flow tonne/hr - 6.61E-05 0.000 0.000 

Solids Specific Gravity - - 8.241 7.283 8.241 

Aqueous Phase 

Indium Concentration g/L - 1.15E-02 1.13E-01 2.1 

Indium Mass Flow tonne/hr - 1.08E-04 2.66E-04 0.005 

Zinc Concentration g/L - 1.163 273.567 8.844 

Zinc Mass Flow tonne/hr - 0.011 0.645 0.021 

Iron(III) Concentration g/L - 0.068 1.712 0.084 

Iron(III) Mass Flow tonne/hr - 6.41E-04 4.04E-03 1.98E-04 

Iron(II) Concentration g/L - 112.127 0.000 0.000 

Iron(II) Mass Flow tonne/hr - 1.058 0.000 0.000 

Total Aqueous Mass Flow tonne/hr - 8.887 2.359 2.385 

Total Aqueous Volume Flow m³/hr - 9.435 2.359 2.359 

Aqueous Specific Gravity - - 0.942 1.000 1.011 

Organic Phase 

Indium Concentration g/L 0.000 - - - 

Indium Mass Flow tonne/hr 0.000 - - - 

Zinc Concentration g/L 0.000 - - - 

Zinc Mass Flow tonne/hr 0.000 - - - 

Iron(III) Concentration g/L 0.000 - - - 

Iron(III) Mass Flow tonne/hr 0.000 - - - 

Iron(II) Concentration g/L 0.000 - - - 

Iron(II) Mass Flow tonne/hr 0.000 - - - 

Extractant Mass Flow tonne/hr 0.000 - - - 

Diluent Mass Flow tonne/hr 0.001 - - - 

Total Organic Mass Flow tonne/hr 0.001 - - - 

Total Organic Volume Flow m³/hr 0.001 - - - 

Organic Specific Gravity - 0.805 - - - 

Overall 

Total Mass Flow tonne/hr 0.001 8.887 2.359 2.385 

Total Volumetric Flow m³/hr 0.001 9.435 2.359 2.359 

Solids - Percent wt% 0.0% 0.0% 0.0% 0.0% 

Slurry Specific Gravity - 0.805 0.942 1.000 1.011 

Temperature °C 20.0 20.0 20.0 20.0 

General Notes 


gangue material does not dissolve during 

ferric chloride leach. 







Plant Area 

40 - Zinc Electrowinning Circuit 

Stream Number and Description 42.33 (copy) 80.13 42.46 80.14 70.10 42.47 42.48 42.49 42.50A 42.50B 70.11 42.51 42.52 42.53 42.54 

ZnCl 2 Sol'n to Zn Metal to Electrolyte Pur. 36wt% HCl ProcessWater Zn Electrolyte Zn Elect.Res. Electrowinning Spent Electro. Zinc Metal Fr. ProcessWater Zn Metal Zn Metal Zn Metal Zn Metal 

Parameter Units Electrowinning Electrolyte Pur. Discharge Impurity Wash Impurity Wash Solid Impurities Wash / Filtrate Gas to 1 o Cl 2 to SX Scrub Electrowinning Zn Metal Wash Wash Effluent Total Product Final Product In Cementation 

Solid Phase 

Indium Concentration wt% 89.25% 0.00% 89.25% - - 89.25% 89.25% - 89.25% 0.00% - - 0.00% 0.00% 0.00% 

Indium Mass Flow tonne/hr 5.42E-06 0.00E+00 2.71E-04 - - 2.65E-04 5.42E-06 - 5.42E-06 0.00E+00 - - 0.00E+00 0.00E+00 0.00E+00 

Zinc Concentration wt% 0.000% 99.500% 0.000% - - 0.000% 0.000% - 0.000% 99.500% - - 99.500% 99.500% 99.500% 

Zinc Mass Flow tonne/hr 0.00E+00 2.59E-04 0.00E+00 - - 0.00E+00 0.00E+00 - 0.00E+00 0.516 - - 0.516 0.512 4.25E-03 

Iron Concentration wt% 0.000% 0.000% 0.000% - - 0.000% 0.000% - 0.000% 0.000% - - 0.000% 0.000% 0.000% 

Iron Mass Flow tonne/hr 0.00E+00 0.00E+00 0.00E+00 - - 0.00E+00 0.00E+00 - 0.00E+00 0.00E+00 - - 0.00E+00 0.00E+00 0.00E+00 

Total Solids Mass Flow tonne/hr 6.07E-06 2.60E-04 3.03E-04 - - 2.97E-04 6.07E-06 - 6.07E-06 0.519 - - 0.519 0.514 4.27E-03 

Solids Specific Gravity - 7.283 7.100 7.283 - - 7.283 7.283 - 7.283 7.100 - - 7.100 7.100 7.100 

Aqueous Phase 

Indium Concentration g/L 1.13E-01 - 2.82E-04 - - 0.000 2.82E-04 - 5.21E-04 - - - - - - 

Indium Mass Flow tonne/hr 2.66E-04 - 6.65E-07 - - 0.00E+00 6.65E-07 - 6.65E-07 - - - - - - 

Zinc Concentration g/L 273.567 - 273.682 - - 0.000 273.683 - 101.119 - - - - - - 

Zinc Mass Flow tonne/hr 0.645 - 0.646 - - 0.00E+00 0.646 - 0.129 - - - - - - 

Iron(III) Concentration g/L 1.712 - 1.626 - - 0.000 1.626 - 3.004 - - - - - - 

Iron(III) Mass Flow tonne/hr 4.04E-03 - 3.84E-03 - - 0.00E+00 3.84E-03 - 3.84E-03 - - - - - - 

Iron(II) Concentration g/L 0.00E+00 - 0.00E+00 - - 0.000 0.00E+00 - 0.00E+00 - - - - - - 

Iron(II) Mass Flow tonne/hr 0.00E+00 - 0.00E+00 - - 0.00E+00 0.00E+00 - 0.00E+00 - - - - - - 

Total Aqueous Mass Flow tonne/hr 2.359 - 2.359 0.00E+00 0.00E+00 6.07E-06 2.359 - 1.277 - 0.519 0.519 - - - 

Total Aqueous Volume Flow m³/hr 2.359 - 2.359 0.00E+00 0.00E+00 6.07E-06 2.359 - 1.277 - 0.519 0.519 - - - 

Aqueous Specific Gravity - 1.000 - 1.000 1.180 1.000 1.000 1.000 - 1.000 - 1.000 1.000 - - - 

Organic Phase 

Indium Concentration g/L - - - - - - - - - - - - - - - 

Indium Mass Flow tonne/hr - - - - - - - - - - - - - - - 

Zinc Concentration g/L - - - - - - - - - - - - - - - 

Zinc Mass Flow tonne/hr - - - - - - - - - - - - - - - 

Iron(III) Concentration g/L - - - - - - - - - - - - - - - 

Iron(III) Mass Flow tonne/hr - - - - - - - - - - - - - - - 

Iron(II) Concentration g/L - - - - - - - - - - - - - - - 

Iron(II) Mass Flow tonne/hr - - - - - - - - - - - - - - - 

Extractant Mass Flow tonne/hr - - - - - - - - - - - - - - - 

Diluent Mass Flow tonne/hr - - - - - - - - - - - - - - - 

Total Organic Mass Flow tonne/hr - - - - - - - - - - - - - - - 

Total Organic Volume Flow tonne/hr - - - - - - - - - - - - - - - 

Organic Specific Gravity - - - - - - - - - - - - - - - - 

Overall 

Total Mass Flow tonne/hr 2.359 2.60E-04 2.359 0.00E+00 0.00E+00 3.03E-04 2.359 0.563 1.277 0.519 0.519 0.519 0.519 0.514 0.004 

Total Volumetric Flow m³/hr 2.359 3.67E-05 2.359 0.00E+00 0.00E+00 4.69E-05 2.359 - 1.277 0.073 0.519 0.519 0.073 0.072 0.001 

Solids - Percent wt% 0.0% 100.0% 0.0% 0.0% 0.0% 98.0% 0.0% - 0.0% 100.0% 0.0% 0.0% 100.0% 100.0% 100.0% 

Slurry Specific Gravity - 1.000 7.100 1.000 #DIV/0! #DIV/0! 6.470 1.000 - 1.000 7.100 1.000 1.000 7.100 7.100 7.100 

Temperature °C 20.0 20.0 20.0 20.0 20.0 20.0 20.0 - 35.0 35.0 20.0 20.0 35.0 35.0 20.0 

General Notes 

42 - Zinc Electrolyte Purification Circuit Parameters 42 - Zinc Electrowinning Circuit Parameters 42 - Zinc Electrowinning Circuit Parameters 


gangue material does not dissolve during Parameter Units Value Parameter Units Value Parameter Units Value 

ferric chloride leach. Mass flow Cu 2+ in stream 42.33 tonne/hr 5.79E-05 Electrowinning circuit operating temperature 

o C 35.00 Electrowinning current efficiency % 91.00% 

Mass flow Pb 2+ in stream 42.33 tonne/hr 1.15E-06 Electrolyte average specific heat capacity kJ/kg o C 4.18 

Mass flow Cu 2+ in stream 42.46 tonne/hr 2.66E-05 Electrolyte heating loss (% sensible heat) % 15.00% 

Mass flow Pb 2+ in stream 42.46 tonne/hr 4.24E-07 Electrolyte heat load kW 47.24 Zinc overall recovery: 79.42% 

Percent removal of indium to cement % 99.75% Electrolyte heating steam consumption tonne/hr 0.08 

Percent removal of copper to cement % 54.00% 

Percent removal of lead to cement % 63.00% Zinc electrowinning power requirement kWh/kg Zn 5.00 

Percent removal of ferric iron to cement % 5.00% Zinc electrowinning electricity consumption kW 2582.16 

Electrolyte impurity cake solids start of wash wt% 90.00% Conversion aqueous zinc to zinc metal % 80.00% 

Electrolyte impurity cake wash vol. displace. factor 0.00 

Electrolyte impurity cake wash water acidity M 0.10 Zinc metal wash water requirement m 3 /t Zn 1.00 

Electrolyte impurity cake final dryness wt% 98.00% 

Electrolyte impurity filter solids capture wt% 98.00% 







Plant Area 

40 - Indium Electrorefining 

Stream Number and Description 42.34 (copy) 80.15 42.55 80.16 70.12 42.56 42.57 42.58 80.17 70.13 42.59 42.60 42.61 42.62 80.18 70.14 42.63 

InCl 3 Sol'n to 36wt% HCl In Cementation 36wt% HCl ProcessWater In Sponge In Sponge to Electrorefining Flux to In ProcessWater Dross/Slimes In Metal In Metal Electrorefining NaOH to In ProcessWater Off-gas Scrub. 

Parameter Units Cementation In Cementation Discharge Sponge Wash Sponge Wash Wash to WWT Electrorefining Sol'n Recycle Electrorefining Electrorefining From Electror. Wash to WWT Market Product Gas to Scrub. Off-gas Scrub. Off-gas Scrub. Bleed to WWT 

Solid Phase 

Indium Concentration wt% 0.00% - 95.00% - - 95.00% 95.00% 

Indium Mass Flow tonne/hr 0.00E+00 - 4.98E-03 - - 9.96E-05 4.88E-03 

Zinc Concentration wt% 0.000% - 0.000% - - 0.000% 0.000% 

Zinc Mass Flow tonne/hr 0.00E+00 - 0.00E+00 - - 0.00E+00 0.00E+00 

Iron Concentration wt% 0.000% - 0.000% - - 0.000% 0.000% 

Iron Mass Flow tonne/hr 0.00E+00 - 0.00E+00 - - 0.00E+00 0.00E+00 

Total Solids Mass Flow tonne/hr 0.00E+00 - 5.24E-03 - - 1.05E-04 5.14E-03 

Solids Specific Gravity - 8.241 - 7.310 - - 7.310 7.310 

Aqueous Phase 

Indium Concentration g/L 2.116 - 0.005 - - 0.005 0.000 

Indium Mass Flow tonne/hr 4.99E-03 - 1.25E-05 - - 1.25E-05 0.00E+00 

Zinc Concentration g/L 8.844 - 10.545 - - 10.423 0.000 

Zinc Mass Flow tonne/hr 2.09E-02 - 2.51E-02 - - 2.51E-02 0.00E+00 

Iron(III) Concentration g/L 0.084 - 0.083 - - 0.082 0.000 

Iron(III) Mass Flow tonne/hr 1.98E-04 - 1.98E-04 - - 1.98E-04 0.00E+00 

Iron(II) Concentration g/L 0.000 - 0.000 - - 0.000 0.000 

Iron(II) Mass Flow tonne/hr 0.00E+00 - 0.000 - - 0.000 0.000 

Total Aqueous Mass Flow tonne/hr 2.385 0.024 2.408 2.31E-05 2.26E-03 2.41E+00 5.71E-04 

Total Aqueous Volume Flow m³/hr 2.359 0.020 2.382 1.95E-05 2.263E-03 2.41E+00 5.71E-04 

Aqueous Specific Gravity - 1.011 1.180 1.011 1.180 1.000 1.000 1.000 

Organic Phase 

Indium Concentration g/L - - - - - - - 

Indium Mass Flow tonne/hr - - - - - - - 

Zinc Concentration g/L - - - - - - - 

Zinc Mass Flow tonne/hr - - - - - - - 

Iron(III) Concentration g/L - - - - - - - 

Iron(III) Mass Flow tonne/hr - - - - - - - 

Iron(II) Concentration g/L - - - - - - - 

Iron(II) Mass Flow tonne/hr - - - - - - - 

Extractant Mass Flow tonne/hr - - - - - - - 

Diluent Mass Flow tonne/hr - - - - - - - 

Total Organic Mass Flow tonne/hr - - - - - - - 

Total Organic Volume Flow tonne/hr - - - - - - - 

Organic Specific Gravity - - - - - - - - 

Overall 

Total Mass Flow tonne/hr 2.385 0.024 2.413 2.31E-05 2.26E-03 2.410 5.71E-03 

Total Volumetric Flow m³/hr 2.359 0.020 2.382 1.95E-05 2.26E-03 2.410 1.27E-03 

Solids - Percent wt% 0.00% 0.00% 0.22% 0.0% 0.0% 0.004% 90.0% 

Slurry Specific Gravity - 1.011 1.180 1.013 1.180 1.000 1.000 4.482 

Temperature °C 20.0 20.0 30.0 20.0 20.0 20.0 20.0 

General Notes 

42 - Indium Cementation Reaction Parameters 


gangue material does not dissolve during Parameter Units Value 

ferric chloride leach. Target HCl conc. in cementation reactor M 0.10 

Percent conversion to indium metal % 99.75% 

Zinc metal purity % 99.50% 



Indium sponge dryness at start of wash wt% 90.00% 

Indium sponge wash displacement volumes factor 4.00 

Indium sponge wash water acidity M 0.10 

Indium sponge final dryness wt% 90.00% 

Indium sponge filter solids capture wt% 98.00% 

Indium Sponge Purity wt% 95.00% 

Indium Overall recovery: wt% 75.40%



Appendix B 

Process Flowsheets 






Appendix C 

Process Equipment Layout 






Appendix D 

Environmental and Permitting 




New 

_17- B 

Nouveau ~ rUnS\VIC 

. 

k 

APPROVAL TO OPERATE 

1-6154 

Pursuant to paragraph 8(1) of the Water Quality Regulation - Clean Environment Act, this Approval to 

Operate is hereby issued to: 

Adex Minerals Corp. 

for the operation of the 

Minewater Treatment Plant at the Mount Pleasant Minesite 

Description of Source: The Minewater Treatment Plant at the Mount 

Pleasant Minesite 

Source Classification: 

Fees for Industrial Approvals 

Regulation - Clean Water Act 

Class lA 

Parcel Identifier: 01242957, 01219823, 15011372, 01240852, 01242932, 

01242858, 15059108, 15159551 

Mailing Address: 372 Bay St. Suite 800 

Toronto, ON M5H 2W9 

Conditions of Approval: See attached Schedule" A" of this Approval 

Supersedes Approval: New 

Valid From: October 31, 2007 

Valid To: 

September 30, 2012 

~ 

Recommended bY~ Enviro mental Management Division 

dJ,p.r.1 I.. :1001 

Date

ADEX MINERALS CORP. 1-6154 

Page 1 of7 

SCHEDULE "A" 

A. DESCRIPTION AND LOCATION OF SOURCE 

Adex Minerals Corp.'s polymetalic mine, located in the County of Charlotte and the 

Province of New Brunswick, currently in Care & Maintenance but with an operating 

minewater treatment plant, is hereby approved to operate, subject to the following: 

B. DEFINITIONS 

1. "Adex" means Adex Minerals Corp. and includes any contractors or consultants working 

on the site under the direct control of, under contract to, or with the permission of Adex. 

Adex is hereby identified as the "person responsible for the source" pursuant to Section 

2(1) ofthe Water Quality Regulation. 

2. The "Department" means the New Brunswick Department of Environment, the "Project 

Assessment & Approvals Branch" means the Project Assessment & Approvals Branch of 

the Department in Fredericton and the "Saint John Regional Office" means the Region 4 

Office of the Department in Saint John. 

3. The Mount Pleasant minesite "property" means the properties with the following PID 

numbers: 01240852, 01219823, 15011372, 01242957, 01242932, 01242858, 15059108 

and 15159551. 

4. 

The "Mount Pleasant minesite" means the Mount Pleasant minesite property and without 

limiting the generality of the term, includes all land and works that are used, mayor have 

been used, may be affected or have been affected by the operation, Care & Maintenance 

or reclamation activities at the Mount Pleasant minesite. Adex's Mount Pleasant minesite 

is hereby identified as a "source" pursuant to Section 2(1) of the Water Quality 

Regulation, and specifically includes: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

the underground mine; 

the mill buildings and equipment; 

the minewater treatment plant, including the lime plant and the sludge pond; 

the Tailings Impoundment Area (TIA); 

the Hatch Brook Diversion Channel; and, 

service roads and trails on the minesite property. 

5. 

For the purposes of Approval to Operate 1-6154, the term "operate" authorizes Adex to 

conduct the following activities at the Mount Pleasant minesite: 

(a) 

to operate the minewater treatment plant and to release contaminants into Hatch 

BrookattheTIAdischarge structure;' ~ '

ADEX MINERALS CORP. 

1-6154 

Page 2 of7 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

CD 

to carry out any activities necessary to maintain the Mount Pleasant minesite in 

Care & Maintenance; 

to repair the TIA dam pursuant to Condition 13; 

to carry out equipment inspections within the mill buildings and on the minesite 

property; 

to conduct exploration activities which includes drilling, surface and borehole 

geophysical surveys, induced polarization (IP) surveys, surface trenching and 

sampling, and to take bulk samples on the minesite property subject to approval 

from the NB Department of Natural Resources; 

to operate metallurgical bench or pilot scale milling tests and to conduct 

minewater characterization and treatment studies; 

to upgrade the minewater treatment plant sludge pond and to construct sludge 

storage cell(s) pursuant to Condition 14(h); 

to maintain and repair the service roads on the property; 

to carry out any other activities approved by the Project Assessment & Approvals 

Branch subject to any further Terms & Conditions deemed necessary by the 

Project Assessment & Approvals Branch; 

but does not approve Adex to dewater or operate the underground mine. 

6. 

"Parameter List A" means aluminum, arsenic, copper, fluoride, hardness, iron, lead, pH, 

total suspended solids and zinc. "Parameter List Bit means Parameter List A plus 

molybdenum, tin, indium and tungsten. 

C. TERMS AND CONDITIONS 

7. 

Emenzencv Reportin2: 

Adex shall immediately report water quality related emergencies where there has been, 

or is likely to be, the release of a contaminant to the environment including, but not 

limited to treated or untreated minewater, petroleum products or hazardous materials, or 

violation of the Clean Environment Act, the Water Quality Regulation, or of this 

Approval and the release is of such a magnitude or duration that: 

(1) 

(2) 

(3) 

there is concern for the health or safety of the general public, and/or, 

there has been, or could be, significant harm to the environment, and/or, 

the release has generated public complaints, 

during normal business hours to the Saint John Regional Office at 658-2558. After 

hours, or when there is no answer at the Saint John Regional Office, Adex shall 

immediately report the environmental emergency to the Canadian Coast Guard by phone 

to 1-800-565-1633. 

If available at the time of reporting, this initial verbal Emergency Report shall include: 

(a) 

(b) 

a description of the source, including the name of the owner or operator; 

the nature, extent, duration and environmental impact of the environmental 

emergency; ~

ADEX MINERALS CORP. 1-6154 

Page 3 of7 

(c) 

(d) 

the cause or suspected cause of the environmental emergency; and, 

any remedial action taken, or to be taken, to prevent a recurrence of the 

environmental emergency. 

Within 24 hours of the time of the initial verbal notification, a written Preliminary 

Emergency Report shall be faxed to the Saint John Regional Office at 658-3046 and to 

the Project Assessment & Approvals Branch at 457-7805. The Preliminary Emergency 

Report shall include as much information as is available at the time about the 

environmental emergency. 

If the information in (a) to (d) above is not available at the time of Preliminary 

Emergency Reporting, follow-up Emergency Reports containing this information shall be 

submitted as soon as possible, but in no case later than 10 days following the incident, by 

fax to the Saint John Regional Office and to the Project Assessment & Approvals 

Branch. 

8. Non-Emen~encv Reportine: 

Adex shall report to the Saint John Regional Office by fax to 658-3046 and to the Project 

Assessment & Approvals Branch by fax to 457-7805, by the end of the following work 

day, unapproved releases of contaminants to the environment which are not 

environmental emergencies, or any other environmental incidents or situations which 

result in violation of the Clean Environment Act, the Water Quality Regulation, or of this 

Approval to Operate and giving a brief explanation of the cause and corrective action 

taken. 

9. 

Approval Classification: 

Adex's Mount Pleasant minesite is hereby designated as a Class 1A source pursuant to 

the Feesfor Industrial Approvals Regulation 93-201 under the Clean WaterAct. 

10. Method of Analvsis: 

Adex shall follow the test procedures outlined in Standard Methods, where "Standard 

Methods" means Standard Methods for the Examination of Water and Wastewater, 19th 

or later Edition, or other method deemed acceptable by the Project Assessment & 

Approvals Branch, for all analyses required by this Approval. Metals shall be tested for 

"total metals" (i.e.: unfiltered). Acute lethality testing shall follow the procedures 

described in EPSIl/RM/13 and shall be done at a laboratory which is accredited by the 

Standards Council of Canada. 

11. Hazardous Waste: 

Adex shall manage hazardous waste, where "hazardous waste" means any waste material 

intended for disposal or recycling, that is identified as a hazardous waste by the federal 

Export and Import of Hazardous Wasteand Hazardous Recyclable Material Regulations, 

( 

and/or is included in Class 1 and/or Class 7 of the federaJ Transportation oj Dangerous ~ I~. 

GoodsRegulations, asfollows: ~


1-6154 

Page 4 of7 

(a) 

Adex shall ensure that all hazardous waste at the Mount Pleasant minesite is 

stored as follows: 

1. all hazardous waste shall be stored in a dedicated hazardous waste storage 

area, secured in sealed and chemically resistant containers, away from high 

traffic areas, protected from vehicle impacts, away from electrical panels 

and in a containment area that is designed to prevent contact between 

incompatible materials; 

11. all hazardous waste shall be stored in a containment area that has 

secondary containment adequate to contain 110% of the nominal volume 

of the largest container in the containment area; 

111. all hazardous waste shall be stored in a containment area designed to 

prevent the release or discharge of hazardous waste to the environment as 

a result of a spill; 

(b) 

(c) 

(d) 

Adex shall keep a record of all hazardous waste put into the hazardous waste 

storage area, including as a minimum, the date the waste was put into storage, a 

description of each hazardous waste put into storage and the amount of each 

hazardous waste put into storage; 

Adex shall ensure that all hazardous waste generated at the Mount Pleasant 

minesite is collected and transported offsite by a Hazardous Waste Collection and 

Transportation provider that is approved by the Department; 

Adex shall keep a record of all hazardous waste that is transported offsite 

including as a minimum, the name and identifying number of the generator, a 

description of each hazardous waste transported, the amount of each hazardous 

waste transported, the name and identifYing number of the. Hazardous Waste 

Collection and Transportation provider, the date of the collection, the class of 

each hazardous waste collected (under the federal Transportation of Dangerous 

Goods Act), and the name, location, and identifying number of the intended 

Receiver of each hazardous waste. 

12. 

Beaver Dams: 

Adex shall inspect the Hatch Brook Diversion Channel, where the Diversion Channel 

means the Diversion Channel as shown in Jacques Whitford Figures 1008943-1, 

1008943-2 and 1008943-3, and shall inspect Hatch Brook 100 meters below the Channel 

once per week for blockage, or more frequently if blockages are regularly observed, and 

shall remove the blockage and restore normal flow in the channel as soon as possible 

after discovering the blockage. If the diversion channel blockage is due to beaver dams, 

Adex shall follow the procedures provided by the Project Assessment & Approvals 

Branch. ~


13. 

1-6154 

Page 5 of7 

Tailin2s Impoundment Area -Dam Repairs: 

Adex may complete repairs and modifications to the TIA dam, discharge structure and 

emergency spillway subject to the following: 

(a) 

prior to the start of construction, Adex shall provide copies of construction 

drawings to the Project Assessment & Approvals Branch for review and approval 

that show the construction details of the repairs and modifications to the TIA dam, 

discharge structure and emergency spillway and a tentative schedule indicating 

the various phases of construction; 

(b) pursuant to Section 3(3)(b.3) of the Watercourse and Wetland Alteration 

Regulation - Clean Water Act, Adex is hereby exempted from the requirement to 

apply for and obtain a permit under paragraph 15(1)(b) of the Clean Water Act, 

for the activities described above that would otherwise require a permit, but Adex 

shall follow any Terms & Conditions deemed necessary by the Project 

Assessment & Approvals Branch for those activities; 

(c) 

prior to flooding the tailings in the TIA, Adex shall submit to the Project 

Assessment & Approvals Branch for review and approval, a Tailings Flooding 

Contingency Plan in case the flooding begins to release metal concentrations 

greater than shown in Condition 15(g). 

14. 

Operation of Minewater Treatment Plant: 

Adex shall operate the minewater treatment plant as follows: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

the flow from the mine portal shall be recorded daily; 

a grab sample of the minewater from the mine portal shall be tested once per 

month, on a mutually agreeable day, for Parameter List A and annually for 

Parameter List B; 

sufficient lime shall be added to the untreated minewater such that the pH at the 

outlet of the hydroxide sludge pond is, at all times, ~ 8.5; 

the pH at the discharge of the sludge pond shall be grab sampled and tested daily 

for pH; 

the sludge pond shall be inspected daily for proper operation and the level of 

sludge in the pond noted; 

sludge shall be removed from the sludge pond as required to ensure proper 

operation; 

the sludge removed from the sludge pond shall be disposed of in a location 

acceptable to the Project Assessment & Approvals Branch; 

if acceptable sludge storage from (g) includes construction of new sludge cells, 

prior to the start of construction Adex shall provide copies of construction 

drawings to the Project Assessment & Approvals Branch for review and approval 

' 

that show the details of the sludge cell cons1ruction and a tentative schedule 11\ OJI k 

. 

indicating the various phases of construction. 'f0r'" .


1-6154 

Page6of7 

15. 

Oueration of Tailine:s Imuoundment Area: 

Adex shall operate the TIA as follows: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

the tailings dam shall be visually inspected daily and the flow through the TIA 

discharge structure noted; 

if there is flow through the TIA discharge structure, the flow shall be estimated; 

the flow through the TIA discharge structure shall be grab sampled once per 

month and tested for Parameter List A; 

the flow through the TIA discharge structure shall be grab sampled once per year 

and tested for acute lethality and Parameter List B; 

the Mount Pleasant minesite shall be operated such that the only direct discharge 

of contaminants to the environment is from the TIA discharge structure; 

no wastes shall be deposited in the TIA, without prior approval in writing from 

the Project Assessment & Approvals Branch; 

Adex shall endeavor to operate the Mount Pleasant minesite such that the flow 

through the TIA discharge structure meets the following water quality objectives: 

(i) 

(ii) 

(iii) 

(iv) 

(v) 

(vi) 

(vii) 

the pH is, at all times, greater than 6.5 and less than 9.0; 

the total suspended solids are, at all times, less than 10mg/l; 

the aluminum concentration is, at all times, less than 0.4 mg/l; 

the arsenic concentration is, at all times, less than 0.3 mg/1; 

the fluoride concentration is, at all times, less than 3.0 mg/l; 

the zinc concentration is, at all times, less than 0.4 mg/l; 

the water is, at all times, non-acutely lethal. 

16. 

Surface Water Monitorine:Proe:ram: , 

Adex shall grab sample the following surface water locations once per month, on a day 

mutually agreeable to by Adex and the Project Assessment & Approvals Branch: 

(a) 

(b) 

(c) 

Hatch Brook approximately 10 meters upstream of the confluence of Hatch Brook 

and the TIA spillway; 

Hatch Brook approximately 10 meters downstream of the confluence of Hatch 

Brook and the TIA spillway, including a flow estimate, in l/sec, at the time of 

sampling showing a cross-section of the brook at the sampling station and the 

flow calculations; 

Hatch Brook approximately 1300 meters downstream of the confluence of Hatch 

Brook and the TIA spillway at the bridge known as the Mine Road Bridge; 

and shall analyze the samples Parameter List A. If the sample locations are not 

accessible, for example, due to winter weather conditions, the affected samples are not 

required but this shall be noted in the Monthly Water Quality Report. 

17. Environmental Effects Monitorine:: 

By March 31, 2008, Adex shall submit to the Project Assessment & Approvals Branch a 

proposal for an Environmental Effects Monitoring study in the Hatch Brook Watershed. 

The proposal shall include, as a minimum:


1-6154 

Page 70f7 

(a) 

(b) 

(c) 

an Adult Fish Survey to determine population levels and species composition; 

a heavy metals in flesh and livers survey to determine the heavy metals content in 

fish; 

the proposal shall recommend a field work schedule and a report submission 

schedule. 

The Environmental Effects Monitoring study shall be completed in the manner, and on 

the schedule, as directed by the Project Assessment & Approvals Branch. 

18. Monthlv Water Qualitv Report: 

By the end of the following month, Adex shall submit to the Saint John Regional Office 

and to the Project Assessment & Approvals Branch, a Monthly Water Quality Report for 

the previous month, which may be in electronic format, containing the following 

information: 

(a) 

(b) 

(c) 

(d) 

(e) 

A cover letter, signed by an Adex official, stating that the information in the 

Monthly Water Quality Report has been reviewed and found to be accurate and 

highlighting any water quality related events that occurred during the month; 

A summary of any water quality related incidents reported pursuant to Condition 

7 or 8, of any violations of the Clean Environment Act, the Water Quality 

Regulation, or of this Approval and a summary of any operating problems related 

to the minewater treatment plant or the TIA; 

A table showing the management of hazardous waste from Condition 11; 

Minewater sampling and flow monitoring data required pursuant to Condition 14 

and 15; 

Surface water monitoring data required pursuant to Condition 16. 

" 

Prepared by: 

n QR. Murray,P.Eng. 

Industrial Approvals Engineer, Project Assessment and Approvals Branch 

Reviewed bY:~ M~ 

Paul Vanderlaan,P.Eng. 

Director,ProjectAssessmentandApprovalsBranch



Appendix E 

Capital Cost Summary 




CAPEX Processing Cost-Curve (Order of Magnitude Estimate) 

OPTION: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity 

Production of Tin Concentrate and Indium-Bearing Zinc Concentrate 

CLIENT: Adex Mining Inc. REVISION: 07 

PROJECT: Mount Pleasant North Zone Development PREPARED BY: J. Dean Thibault STATUS: FINAL 

REFERENCE: Preliminary Assessment CHECKED BY: Tim McKeen / Stephanie Scott DATE: January 22, 2010 

LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class V Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 

Code Plant Component Reference Marshall & Swift Used Factor Cost Factor Size Factor New Cost Used Cost Blend Cost 

(Cost Basis) Index Used Equipment A B (New Equipment) (Used Equipment) (Lowest Cost) 

Processing facility name Plate Capacity (based on dry tonnes per day (tpd) of run-of-mine ore: 850.01 

Plant availability factor at nameplate capacity: 0.900 

Maximum operating hours on annual basis: (based on 365 days per year and 24 hours per day maximum operating time) 8,760.0 

Total annual tonnage of ore processed: 279,227.63 

Line Items A Main Process Equipment for Each Unit Operation 

1.00 Crushing Circuit (Ref Drw: 0503-10-01) Constant size crushing plant - operating hours per day change as throughput changes. 

Oversize Screen / Grizzly 

REV 02 DELETED 

Charge Capacity (tonne per hour of dry solids): 

Cost Curve Estimate ($CDN): 0.000 $68,785 $0 $0 

Ore Hopper 


Cost Curve Estimate ($CDN): 0.100 $31,100 $3,110 $3,110 

Primary Crusher Feeder 



Transfer Chute A 




Primary Jaw Crusher 



Jaw Crusher Transfer Conveyor 



Fine Ore Screen 



Transfer Chute B 




Secondary Crusher Feed Bin 



1 of 55











Secondary Crusher Feeder 



Transfer Chute C 




Secondary Cone Crusher 



Secondary Cone Crusher Conveyor 



Crusher Circuit Dust Collector System 




NOTE: Cost for use crusher equipment using factors as shown is compatible to purchase of used potable crusher units c/w jaw and cone crusher circuits (including screens, transfer conveyors, etc.) 

Crusher Circuit Yard Transfer Conveyor to Silo 

REV 02 REFURBISHED USED SUPPLIER 



Yard Transfer Conveyor Support System 

Foundation and structural steel for 2 support columns 


Subtotal Process Equipment Line A: (supply and installed) $1,492,533 $600,542 $600,542 

2.00 Grinding and Classification Circuit (Ref Drw: 0503-20-01) 

Fine Ore Storage Silo 

used cost based on refurbishment of existing silo 35.42 

Cost Curve Estimate ($CDN): 1,573.00 0.050 63,486.83 0.49 $364,584 $18,229 $18,229 

Rod Mill Feeder 


Charge Capacity (tonne per hour of dry solids): 35.42 


2 of 55










Rod Mill Weight meter 



Rod Mill Feed Conveyor 




Rod Mill 

Charge Capacity (power requirement kW): 161.68 

Cost Curve Estimate ($CDN): 1,573.00 0.300 54,063.67 0.65 $1,474,138 $442,241 $442,241 

Grinding Area O/H Crane 




Grinding Media- Ball Bin 



Cost Curve Estimate ($CDN): 1,573.00 0.000 6,000.00 0.10 $9,977 $0 $0 

Ball Mill 



Grinding Classification Cyclopac 



Grinding Classification Screen 

NOT REQUIRED 


Cost Curve Estimate ($CDN): 1,573.00 0.000 12,000.00 0.42 $0 $0 $0 

Grinding Classification Pump Box 

Charge Capacity (tank volume m3): 10.78 


Grinding Classification Pump A 

Charge Capacity (m3 per hour of slurry): 129.31 


Grinding Classification Pump B 



Primary Desliming Pump Box 


3 of 55











Primary Desliming Pump A 



Primary Desliming Pump B 



Grinding Area Sump Pump 

REV 02 NOT REQUIRED 


Cost Curve Estimate ($CDN): 1,573.00 0.000 677.29 0.82 $7,150 $0 $0 

Subtotal Process Equipment Line A: (supply only) $4,721,077 $1,379,013 $1,379,013 

3.00 Desliming Circuit (Ref Drw: 0503-20-02) 

Primary Desliming Cyclopac 

Used cost based on refurbishment of existing 35.42 


Desliming Area Sump Pump 


Cost Curve Estimate ($CDN): 1,573.00 1.000 677.29 0.82 $7,150 $7,150 $7,150 

Second Stage Desliming Pump Box 

REV 02 REFURBISHED 



Second Stage Desliming Pump A 

Charge Capacity (m3 per hour of slurry): 103.43 


Second Stage Desliming Pump B 



Secondary Desliming Cyclopac 



Third Stage Desliming Tank Used cost based on refurbishment to existing 



4 of 55










Third Stage Desliming Agitator 

Charge Capacity (agitator drive power Kw): 15.16 


Third Stage Desliming Pump A 



Third Stage Desliming Pump B 

REV 02 USE PRIMARY STAGE PUMP SPARE 9DULE SERVICE 



Desliming Centrifuge Separators 


Charge Capacity (number of units): 9.56 


Subtotal Process Equipment Line A: (supply only) $558,634 $291,604 $291,604 

4.00 Magnetic Separation Circuit (Ref Drw: 0503-31-01) 

Splitter Box 



Low Intensity Magnetic Separator LIMS A 



Low Intensity Magnetic Separator LIMS B 



LIMS Magnetics Pump Box 

REV 02 REFUSBISH EXISTING 



LIMS Magnetics Transfer Pump A 



LIMS Magnetics Transfer Pump B 




LIMS Non- Magnetics Pump Box 

5 of 55












LIMS Non- Magnetics Transfer Pump A 



LIMS Non- Magnetics Transfer Pump B 




High Intensity Magnetic Separator ( HIMS ) 

Cost revision based on treatment of the tin concentrate 



HIMS Non- Magnetic Settling Cone 

Used cost based on refurbishment of existing cones 



HIMS Non- Magnetic Pump Box 



HIMS Non- Magnetic Transfer Pump A 



HIMS Non- Magnetic Transfer Pump B 





6 of 55










5.00 Zinc Flotation Circuit (Ref Drw: 0503-31-02) 

Zinc Flotation Conditioning Tank - Use cost based on refurbishment to existing tank 



Zinc Flotation Conditioning Agitator 



Zinc Rougher (RO) Flotation Cell A 



Zinc Rougher (RO) Flotation Cell B 



Zinc Rougher (RO) Flotation Cell C 



Zinc Rougher (RO) Flotation Cell D 



Zinc Rougher (RO) Flotation Cell E 



Zinc Scavenger (Sc) Flotation Cell A 



Zinc Scavenger (Sc) Flotation Cell B 



Zinc Scavenger (Sc) Flotation Cell C 



Zinc Scavenger (Sc) Flotation Cell D 



7 of 55










Zinc Scavenger (Sc) Flotation Cell E 



Zinc Cleaner (CL) Flotation Cell A 

Charge Capacity (tank volume m3): 1.43 


Zinc Cleaner (CL) Flotation Cell B 



Zinc Cleaner (CL) Flotation Cell C 



Zinc Cleaner (CL) Flotation Cell D 



Zinc Cleaner (CL) Flotation Cell E 



Zinc Cleaner (CL) Flotation Cell F 



Zinc Ro. Flotation Conc. Pumps A 



Zinc Ro. Flotation Conc. Pumps B 




Zinc Flotation CL. Conc Pump A 



Zinc Flotation CL. Conc Pump B 




8 of 55










Zinc Cleaner Recycle Pump A 



Zinc Cleaner Recycle Pump B 




Zinc Sc. Flotation Conc. Pumps A 



Zinc Sc. Flotation Conc. Pumps B - VEA /DELETED 



Zinc Flotation Sc. Tailings Pump Box - VEA /DELETED 



Zinc Flotation Sc. Tailings Transfer Pump A - VEA / DELETED 



Zinc Flotation Sc. Tailings Transfer Pump B -VEA / DELETED 



Zinc Flotation CL Tailings Pump Box - VEA / DELETED 



Zinc Flotation CL Tailings Transfer Pump A 



Zinc Flotation CL Tailings Transfer Pump B 





9 of 55










6.00 Zinc Concentrate Dewatering Circuit (Ref Drw 0503-31-03) 

Zinc Flotation Reclaim Water Holding Tank 

REV 02 REFURBISHED EXISTING 



Zinc Flotation Reclaim Water Pump A 



Zinc Flotation Reclaim Water Pump B 




Zinc Concentrate Thickener 

Charge Capacity (equivalent diameter of settle area m): 2.68 

Cost Curve Estimate ($CDN): 1,573.00 0.500 98,943.84 0.42 $149,170 $74,585 $74,585 

Zinc Concentrate Thickener U/F Pump A 



Zinc Concentrate Thickener U/F Pump B 




Zinc Concentrate Holding Tank 



Zinc Concentrate Holding Tank Agitator 



Zinc Concentrate Transfer Pumps A 



Zinc Concentrate Transfer Pumps B 




Zinc Flotation Area Sump Pump 



10 of 55










Zinc Concentrate Product Filter 

Charge Capacity (m2 of filtration area): 21.96 


Zinc Concentrate Product Filter Filtrate Receiver 

REV 02 REFURBISH TO EXISTING 



Zinc Concentrate Product Filter Filtrate Tank 

REV 02 REFURBISH TO EXISTING 



Zinc Concentrate Product Filter Filtrate Pump A 


Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $7,431 $7,431 $7,431 

Zinc Concentrate Product Filter Filtrate Pump B 

REV 02 DELETD 


Cost Curve Estimate ($CDN): 1,573.00 0.000 6,315.37 0.15 $7,431 $0 $0 

Zinc Concentrate Screw Conveyor B 

REV 02 REFURBISHMENT ON USED 

Charge Capacity (tonne per hour of wet solids): 1.00 


Zinc Concentrate Bucket Elevator 



Zinc Concentrate Storage Bin 

REV 02 DELETD 



Zinc Concentrate Packaging (not included with tin chlorination system / for tin concentrate production only) REV 02 DELETED 

Charge Capacity (kg per hour of dry solids): 1.00 



7.00 Arsenic Flotation (Ref Drw 0503-32-01) 

Arsenic Flotation Conditioning Tanks - Used cost based on refurbishment of existing equipment. 



11 of 55










Arsenic Flotation Conditioning Agitator 



Arsenic Rougher (RO) Flotation Cell A 



Arsenic Rougher (RO) Flotation Cell B 



Arsenic Rougher (RO) Flotation Cell C 



Arsenic Rougher (RO) Flotation Cell D 



Arsenic Rougher (RO) Flotation Cell E 



Arsenic Ro. Flotation Concentration Pump A 



Arsenic Ro. Flotation Concentration Pump B 




Arsenic Scavenger (SC) Flotation Cell A 



Arsenic Scavenger (SC) Flotation Cell B 



Arsenic Scavenger (SC) Flotation Cell C 



12 of 55










Arsenic SC Conc. Pump A 



Arsenic SC Conc. Pump B 




Arsenic Cleaner (CL) Flotation Cell A 



Arsenic Cleaner (CL) Flotation Cell B 



Arsenic Cleaner (CL) Flotation Cell C 



Arsenic Cleaner (CL) Flotation Cell D 



Arsenic Cleaner (CL) Flotation Cell E 



Arsenic CL Con Transfer Pump A 



Arsenic CL Con Transfer Pump B 




Arsenic Cleaner Recycle Pump A 



Arsenic Cleaner Recycle Pump B 




13 of 55










Arsenic CL Tail Pump Box 



Arsenic CL Tail Transfer Pump A 



Arsenic CL Tail Transfer Pump B 




Arsenic Flotation Tailing Pump Box 




Arsenic Flotation Tailing Pump Box Transfer Pump A 




Arsenic Flotation Tailing Pump Box Transfer Pump B 




Arsenic Flotation Area Sump Pump 




8.00 Arsenic Flotation Regrind (Ref Drw 0503-32-02) 

Tin Flotation Conditioning Tank - Used cost based on refurbishment of existing equipment. 



Arsenic Regrind Classification Screen - VEA DELETED 



Arsenic Flotation Regrind Pump Box 



14 of 55










Arsenic Flotation Regrind Transfer Pump A 



Arsenic Flotation Regrind Transfer Pump B 




Arsenic Flotation Regrind Mill 

Charge Capacity (power draw kW): 150.90 


Arsenic Regrind Mill Media Bin 




As Float Reclaim Water Pump Box 




As Float Reclaim Water Transfer Pump A 



As Float Reclaim Water Transfer Pump B 




Arsenic Flotation Tailings Thickener 

REV 02 DLETED 


Cost Curve Estimate ($CDN): 1,573.00 0.000 98,943.84 0.42 $195,701 $0 $0 

As Float Tailings Thickener Underflow Pump A 

REV 02 DLETED 



As Float Tailings Thickener Underflow Pump B 

REV 02 DLETED 



Subtotal Process Equipment Line A: (supply only) $1,532,658 $260,177 $260,177 

15 of 55










9.00 Tin Flotation Circuit (Ref Drw 0503-33-01) 

Tin Flotation Conditioning Tank 



Tin Flotation Conditioning Agitator 



Tin Rougher (RO) Flotation Cell A 



Tin Rougher (RO) Flotation Cell B 



Tin Rougher (RO) Flotation Cell C 



Tin Rougher (RO) Flotation Cell D 



Tin Rougher (RO) Flotation Cell E 



Tin Scavenger (SC) Flotation Cell A 



Tin Scavenger (SC) Flotation Cell B 



Tin Scavenger (SC) Flotation Cell C 



Tin Cleaner (CL) Flotation Column A 

Charge Capacity (column diameter for 10 to 12 m high - m): 0.99 


16 of 55










Tin Cleaner (CL) Flotation Column B 



Tin Final Tails Pump Box 



Tin Final Tails Pump A 



Tin Final Tails Pump B 




Tin Ro-Sc Concentrate Pump Box 




Tin Ro-Sc Concentrate Pump A 




Tin Ro-Sc Concentrate Pump B 




Tin Ro Tail Pump Box 



Tin Ro Tail Pump A 



Tin Ro Tail Pump B 




Tin Cl Tail Pump Box 



17 of 55










Tin Cl Tail Pump A 



Tin Cl Tail Pump B 




Tin First Cl Conc. Pump Box 



Tin First Cl Conc. Pump A 



Tin First Cl Conc. Pump B 




Tin Second Cl Conc. Pump Box 



Tin Second Cl Conc. Pump A 



Tin Second Cl Conc. Pump B 





10.00 Tin Gravity Separation (Ref Drw 0503-33-02) 

Tin Centrifugal Gravity Separator Holding Tank 



Tin Centrifugal Gravity Separator Holding Tank Agitator 



18 of 55










Tin Centrifugal Gravity Separator Feed Pump A 



Tin Centrifugal Gravity Separator Feed Pump B 




Tin Centrifugal Gravity Separator Sc Pump Box 



Tin Centrifugal Gravity Separator Sc Feed Pump A 



Tin Centrifugal Gravity Separator Sc Feed Pump B 




Tin Centrifugal Gravity Separator Rougher 

Charge Capacity (Number of Units): 2.28 


Tin Centrifugal Gravity Separator Scavenger 



Tin Flotation Gravity Sep. Area Sump Pump 




11.00 Tin Concentration Dewatering (Ref Drw: 0503-33-03) 

Tin Flotation Reclaim Water Tank 



Tin Flotation Reclaim Pump A 



19 of 55










Tin Flotation Reclaim Pump B 




Tin Concentrate Thickener 



Tin Concentration Thickener U/F Pump A 



Tin Concentration Thickener U/F Pump B 




Tin Concentrate Filter Feed Tank 



Tin Concentrate Filter Feed Agitator 



Tin Concentrate Filter Feed Pump A 



Tin Concentrate Filter Feed Pump B 




Tin Concentrate Product Filter 



Tin Concentrate Product Filter Filtrate Receiver 



Tin Concentrate Product Filter Filtrate Tank 



20 of 55










Tin Concentrate Product Filter Filtrate Pump A 



Tin Concentrate Product Filter Filtrate Pump B 





12.00 Tin Concentrate Packaging 

Tin Concentrate Product Drier 



Tin Concentrate Product Drier Hot Oil Heater 



Tin Concentrate Screw Conveyor A 



Tin Concentrate Screw Conveyor B 



Tin Concentrate Bucket Elevator 



Tin Concentrate Storage Bin 



Tin Concentrate Packaging 



Tin Concentrate Drier- Off Gas Filter 

Charge Capacity (kg per hour of drier dry solids): 1294.11 


21 of 55










Tin Concentrate Drier- Off Gas Fan 



Tin Concentrate Screw Conveyor (to chlorination) 

ALL PACKAGING ELEMINATED - TO USE BULK LOAD OUT 




13.00 Tin Concentrate Pelletizing (Ref Drw: 0503-41-01) 

Tin Concentrate Mixer 



Tin Concentrate Pelletizer 



Tin Pellet Conveyor 

Charge Capacity (length of conveyor fully enclosed meters): 10.00 


Tin Pellet Screen 

Charge Capacity (tonne per hour solids): 3.09 

Cost Curve Estimate ($CDN): 1,573.00 1.000 20,000.00 0.70 $43,954 $43,954 $43,954 

Tin Pellet Fines Conveyor 



Tin Pellet Dryer Feed Conveyor 



Tin Pelletizer Venting Scrubber 



Tin Pelletizer Venturi Tank 



22 of 55










Tin Pelletizer Venturi Tank Agitator 



Tin Pelletizer Venturi Pump 



Tin Pelletizer Venturi Fan 



Tin Pellet Dryer 

Charge Capacity (tonne per hour of solids): 0.91 


Dry Tin Pellet Conveyor 



Tin Pellet Storage Bin 



Tin Pellet Weigh Feeder 



Tin Pellet Bucket Elevator 




14.00 Tin Concentrate Chlorination (Ref Drw: 0503-41-02) 

Tin Chlorination Reactor 

Charge Capacity (kiln volume m³): 15.11 


Chlorination Residual Quench Venturi Scrubber 



23 of 55










Chlorination Residual Quench Venturi Tank 



Chlorination Residual Quench Venturi Pump A 



Chlorination Residual Quench Venturi Pump B 



Chlorination Residual Quench Venturi Fan A 



Chlorination Residual Quench Venturi Fan B 



Chlorination Residue Quench Tank 



Chlorination Residue Quench Agitator 



Chlorination Residue Quench Pump A 



Chlorination Residue Quench Pump B 



Chlorination Gas Quench Venturi Scrubber 



Chlorination Gas Quench Venturi Tank 



24 of 55










Chlorination Gas Quench Venturi Tank Agitator 



Chlorination Gas Quench Venturi Pump A 



Chlorination Gas Quench Venturi Pump B 



Chlorination Gas Quench Venturi Fan 



Chlorination Off Gas Scrubber 



Chlorination Off Gas Tank 



Chlorination Off Gas Tank Agitator 



Chlorination Off Gas Pump A 



Chlorination Off Gas Pump B 



Chlorination Off- Gas Aerosol Scrubber and Demister 



Chlorination Off- Gas Aerosol Tank 



25 of 55










Chlorination Off- Gas Aerosol Tank Agitator 



Chlorination Off- Gas Aerosol Pump A 



Chlorination Off- Gas Aerosol Pump B 



Chlorination Off- Gas Aerosol Fan 




15.00 Tin Chloride Solution Purification (Ref Drw: 0503-41-03) 

Tin Chloride Solution Purification Tank A 



Tin Chloride Solution Purification Tank B 



Tin Chloride Solution Purification Tank C 



Tin Chloride Solution Purification Agitator A 



Tin Chloride Solution Purification Agitator B 



Tin Chloride Solution Purification Agitator C 



26 of 55










Purifications Filter Feed Tank 



Purifications Filter Feed Agitator 



Purifications Filter Feed Pump A 



Purifications Filter Feed Pump B 



Tin Chloride Solution Purification Filter A 

Charge Capacity (m3 of dewater solids per batch): 0.43 


Tin Chloride Solution Purification Filter B 



Tin Chloride Solution Purification Conveyor A 



Tin Chloride Solution Purification Conveyor B 



Tin Chloride Purification Residue Repulp Tank 



Tin Chloride Purification Residue Repulp Agitator 



Tin Chloride Purification Residue Repulp Pump A 



27 of 55










Tin Chloride Purification Residue Repulp Pump B 




16.00 Tin Chloride Crystallization 

Tin Chloride Crystallizer Feed Tank 



Tin Chloride Crystallizer Feed Pump A 



Tin Chloride Crystallizer Feed Pump B 



Tin Chloride Crystallizer Feed Tank Agitator 



Tin Chloride Crystallizer Recycle Pump A 



Tin Chloride Crystallizer Recycle Pump B 



Tin Chloride Crystallizer System (Evap and Cond) 

Charge Capacity (evaporation rate tonne per hour): 1.99 

Cost Curve Estimate ($CDN): 1,573.00 1.000 2,981,736.00 0.55 $4,358,232 $4,358,232 $4,358,232 

Acid Recovery Scrubber 

Charge Capacity (column diameter m): 0.54 


Acid Recovery Scrubber Tank 



28 of 55










Acid Recovery Scrubber Tank Agitator 



Acid Recovery Scrubber Pump A 



Acid Recovery Scrubber Pump B 



Tin Chloride Filter Feed Tank 



Tin Chloride Filter Feed Agitator 



Tin Chloride Filter Feed Pump A 



Tin Chloride Filter Feed Pump B 



Tin Chloride Filtrate Tank 



Tin Chloride Filtrate Pump A 



Tin Chloride Filtrate Pump B 



Tin Chloride Filter 

Charge Capacity (m2 of filtration area): 5.43 


29 of 55










Tin Chloride Filter - Filtrate Receiver 




17.00 Tin Chloride Drying and Packaging (Ref Drw: 0503-41-05) 

Tin Chloride Filter Cake Conveyor 



Tin Chloride Product Drier 



Dried Tin Chloride Conveyor 



Tin Chloride Bucket Elevator 



Tin Chloride Product Bin 



Tin Chloride Packaging 



Tin Chloride Product Screening 



Tin Chloride Packaging Dust Collector 



Tin Chloride Packaging Dust Fan 



30 of 55










Tin Chloride Repulp Tank 



Tin Chloride Repulp Tank Agitator 



Tin Chloride Repulp Pump A 



Tin Chloride Repulp Pump B 




18.00 Base Metal Sulfide (BMS) Leach (Ref Drw 0503-42-01) 

BMS Leach Feed Holding Tank 



BMS Leach Feed Holding Tank Agitator 



BMS Leach Feed Holding Heater 



BMS Leach Feed Holding Pump A 


Cost Curve Estimate ($CDN): 1,573.00 1.000 6,315.37 0.15 $5,943 $5,943 $5,943 

BMS Leach Feed Holding Pump B 



BMS Leach Reactor A 



31 of 55










BMS Leach Reactor B 



BMS Leach Reactor C 



BMS Leach Reactor D 



BMS Leach Heater A 



BMS Leach Heater B 



BMS Leach Heater C 



BMS Leach Heater D 



BMS Leach Agitator A 



BMS Leach Agitator B 



BMS Leach Agitator C 



BMS Leach Agitator D 



32 of 55










BMS Leach Thickener 



BMS Leach Thickener U/F Pump A 



BMS Leach Thickener U/F Pump B 



BMS Leach Solution Holding Tank 



BMS Leach Solution Holding Heater 



BMS Leach Solution Holding Pump A 



BMS Leach Solution Holding Pump B 



BMS Leach Residue Holding Tank 



BMS Leach Residue Holding Heater 



BMS Leach Residue Holding Agitator 



BMS Leach Residue Holding Pump A 



33 of 55










BMS Leach Residue Holding Pump B 



BMS Leach Area Sump Pump 




19.00 BMS Leach Residue Wash/ Chlorinator (Ref Drw 0503-42-02) 

BMS Leach Residue Filter 



BMS Leach Residue Filtrate Receiver A 



BMS Leach Residue Filtrate Receiver B 



BMS Leach Residue Filtrate Receiver C 



BMS Filter Filtrate Holding Tank 



BMS Filter Filtrate Pump A 



BMS Filter Filtrate Pump B 



BMS Filter Wash Holding Tank 



34 of 55










BMS Filter Wash Pump 






BMS Leach Residue Holding Tank Agitator 



BMS Leach Residue Pump A 



BMS Leach Residue Pump B 



Chlorinator Tower 



Ferric Chloride Solution Holding Tank 



Ferric Chloride Solution Pump A 



Ferric Chloride Solution Pump B 



BMS Leach Residue Repulper 



Chlorinator Heat Exchanger 

Charge Capacity (m3 per hour of solution): 9.62 



35 of 55










20.00 Oxyhydrolysis Reactor (Ref Drw 0503-42-03) 

Oxyhydrolysis Filter Feed Tank 



Oxyhydrolysis Feed Pump A 



Oxyhydrolysis Feed Pump B 



Oxyhydrolysis Heat Exchanger 



Oxyhydrolysis Reactor A 



Oxyhydrolysis Reactor B 



Oxyhydrolysis Reactor C 



Oxyhydrolysis Reactor D 



Oxyhydrolysis Reactor Heater A 



Oxyhydrolysis Reactor Heater B 



Oxyhydrolysis Reactor Heater C 



36 of 55










Oxyhydrolysis Reactor Heater D 



Oxyhydrolysis Reactor Agitator A 



Oxyhydrolysis Reactor Agitator B 



Oxyhydrolysis Reactor Agitator C 



Oxyhydrolysis Reactor Agitator D 



Oxyhydrolysis Reactor Heating Tower 



Oxyhydrolysis Reactor Flash Cooling Tower 






Oxyhydrolysis Filter Feed Tank Agitator 



Oxyhydrolysis Filer Feed Pump A 



Oxyhydrolysis Filter Feed Pump B 



37 of 55










Oxyhydrolysis Residue Filter 

Charge Capacity (m3 of dewater solids per batch): 0.47 


Oxyhydrolysis Dilute Acid Holding Tank 



Oxyhydrolysis Dilute Acid Pump A 



Oxyhydrolysis Dilute Acid Pump B 



Oxyhydrolysis Residue Repulper 




21.00 Leach Solution Purification (Ref Drw: 0503-42-04) 

Lead Precipitation Reactor A 



Lead Precipitation Reactor B 



Lead Precipitation Reactor C 



Lead Precipitation Reactor Agitator A 



Lead Precipitation Reactor Agitator B 



38 of 55










Lead Precipitation Reactor Agitator C 



Lead Precipitation Reactor Heater A 



Lead Precipitation Reactor Heater B 



Lead Precipitation Reactor Heater C 



Lead Carbonate Filter Feed Tank 



Lead Carbonate Filter Feed Tank Agitator 



Lead Carbonate Filter Feed Pump A 



Lead Carbonate Filter Feed Pump B 



Lead Carbonate Filter 



Lead Carbonate Repulper 



Lead Precipitate Holding Tank 



39 of 55










Lead Precipitate Holding Tank Agitator 



Lead Precipitate Pump A 



Lead Precipitate Pump B 



Copper/ Arsenic Cementation Heat Exchanger 



Copper/ Arsenic Cementation Reactor A 



Copper/ Arsenic Cementation Reactor B 



Copper/ Arsenic Cementation Recycle Pump 



Copper/ Arsenic Cementation Holding Tank 



Copper/ Arsenic Cementation Holding Tank Agitator 



Copper/ Arsenic Pump A 



Copper/ Arsenic Pump B 



40 of 55










Copper/ Arsenic Cement Filter 



Copper/ Arsenic Cement Repulper 



Purified Leach Solution Holding Tank 



Purified Leach Solution Holding Pump A 



Purified Leach Solution Holding Pump B 




22.00 Solvent Extraction- Liquid Contact (Ref Drw: 0503-42-05) 

Solvent Extraction - Extraction Mixer / Settler A 

Charge Capacity (mixer tank volume m3): 1.57 


Solvent Extraction - Extraction Mixer / Settler B 



Solvent Extraction - Extraction Mixer / Settler C 



Solvent Extraction - Extraction Mixer / Settler D 



Solvent Extraction - Scrub Mixer / Settler A 



41 of 55










Solvent Extraction - Scrub Mixer / Settler B 



Solvent Extraction - Scrub Mixer / Settler C 



Solvent Extraction - Scrub Mixer / Settler D 



Solvent Extraction - Strip Mixer / Settler A 



Solvent Extraction - Strip Mixer / Settler B 



Solvent Extraction - Strip Mixer / Settler C 



Solvent Extraction - Strip Mixer / Settler D 



Solvent Extraction - Strip Mixer / Settler E 



Solvent Extraction - Strip Mixer / Settler F 



Solvent Extraction - Wash Mixer / Settler A 



Solvent Extraction - Wash Mixer / Settler B 




42 of 55










23.00 Solvent Extraction Solution Management 

(Ref Drw: 0503-42-06) 

SX Scrub Solution Preparation Tank 



SX Scrub Solution Preparation Tank Agitator 



SX Scrub Solution Preparation Pump A 



SX Scrub Solution Preparation Pump B 



SX Strip Solution Preparation Tank 



SX Strip Solution Preparation Tank Agitator 



SX Strip Solution Preparation Pump A 



SX Strip Solution Preparation Pump B 



SX Wash Solution Preparation Tank 



SX Wash Solution Preparation Tank Agitator 



SX Wash Solution Preparation Pump A 



43 of 55










SX Wash Solution Preparation Pump B 



SX Organic Holding Tank 



SX Organic Transfer Pump A 



SX Organic Transfer Pump B 



SX Crud Mixer Settler 



SX Crud Settler Transfer Pump A 



SX Crud Settler Transfer Pump B 



Solvent Extraction Area Sump Pump 




24.00 Solvent Extraction Organic Recovery 

(Ref Drw: 0503-42-07) 

Raffinate Holding Tank 



Raffinate Transfer Pump A 



44 of 55










Raffinate Transfer Pump B 



Loaded Scrub Holding Tank 



Loaded Scrub Transfer Pump A 



Loaded Scrub Transfer Pump B 



Loaded Strip Holding Tank 



Loaded Strip Pump A 



Loaded Strip Pump B 



SX Carbon Column Strip Solution Holding Tank 



SX Carbon Column Strip Solution Pump A 



SX Carbon Column Strip Solution Pump B 



Solvent Extraction Carbon Column A 



45 of 55










Solvent Extraction Carbon Column B 



Solvent Extraction Carbon Column C 



Solvent Extraction Carbon Column D 



Solvent Extraction Carbon Column E 



Solvent Extraction Carbon Column F 



Solvent Extraction Carbon Column G 




25.00 Zinc Electrowinning (Ref Drw: 0503-43-01) 

Scrub Solution Cementation Reactor 



Scrub Solution Cementation Heat Exchanger 



Scrub Solution Cementation Filter 



Scrub Solution Cementation Pump A 



46 of 55










Scrub Solution Cementation Pump B 



Zinc Plate Wash Tank 



Zinc Plate Wash Pump 



Electrolyte Tank 



Electrolyte Pump A 



Electrolyte Pump B 



Electrowin Cell Recycle Pump A 



NUMBER OF BANKS: 19.0 

Electrowin Cell Recycle Pump B 



NUMBER OF CELL BANKS: 19.0 

Electrowin Cell Recycle Heat Exchanger 




Spent Electrolyte Holding Tank 



Spent Electrolyte Holding Pump A 



47 of 55










Spent Electrolyte Holding Pump B 



De-Chlorination Tower / Column 



De-Chlorination Tower Transfer Pump A 



De-Chlorination Tower Transfer Pump B 



Zinc Electrowin Cell System 

Charge Capacity (volume of each cell bank): 8.24 

Cost Curve Estimate ($CDN): 1,573.00 1.000 150,911.80 0.65 $4,028,093 $4,028,093 $4,028,093 


Zinc Electrowin Overhead Crane 




26.00 Indium Sponge Cementation (Ref Drw: 0503-44-01) 

Indium Cementation Reactor A 



Indium Cementation Reactor B 



Indium Cementation Heat Exchanger 



Indium Cementation Transfer Pump A 



48 of 55










Indium Cementation Transfer Pump B 



Indium Cementation Recycle Pump A 



Indium Cementation Recycle Pump B 



Indium Cementation Filter Feed Tanks 



Indium Cementation Filter Feed Pumps A 



Indium Cementation Filter Feed Pumps B 



Indium Cementation Filtrate Holding Tanks 



Indium Cementation Solution Holding Pumps A 



Indium Cementation Solution Holding Pumps B 



Transfer Dumpster 



Indium Press Sump Pump 



49 of 55










Indium Sponge Filter Press 


Cost Curve Estimate ($CDN): 1,573.00 0.300 4,036,285.00 0.66 $401,303 $120,391 $120,391 

Sponge Press and Anode Molds 

Charge Capacity (kg per hour of metal): 5.71 



27.00 Tailings and Wastewater Management (Ref Drw: 0503-50-XX to XX) 

Cost for Refurbishment to existing Tailings Treatment Tanks: 

Unit Cost: 35.42 


Tailing Treatment Tank Agitator A 



Tailing Treatment Tank Agitator B 



Tailing Treatment Tank Agitator C 



Tailings Thickening and Pumping 

REV 03 REVISED 

Charge Capacity ISBL (tonne per hour of solids): 35.42 


Wastewater Treatment System 

REV 03 REVISED 

Charge Capacity ISBL (m3 per hour of wastewater): 177.09 

Cost Curve Estimate ($CDN): 1,573.00 0.100 102,943.47 0.65 $2,977,947 $297,795 $297,795 


28.00 Process and Domestic Water Management (Ref Drw: 0503-60-XX to XX) 

Process Water System REV 02 

Charge Capacity ISBL (tonne per hour ore): 35.42 


50 of 55










Domestic Water System REV 02 




29.00 Utility Systems (Ref Drw: 0503-70-XX to XX) 

Low Pressure Steam Boiler System (1050 kPa) NOT REQUIRED FOR CONCENTRATE PRODUCTION (USE OF HOT OIL SYSTEM FOR DRIERS) 

Charge Capacity (steam generation rate tonne per hour): 5.41 

Cost Curve Estimate ($CDN): 1,573.00 0.500 0.00 0.65 $0 $0 $0 

Oxygen Generation System 

Charge Capacity (ore tonne per hour): 35.42 


Cooling Water System 



High Pressure Air Compressor System 



Low Pressure Air Blower System - Used cost based on refurbishment to existing units 



Chlorine Emergency Scrubber System 



Vacuum System 




30.00 Reagent Systems (Ref Drw: 0503-80-XX to XX) 

Copper Sulfate 

Charge Capacity ( tonne per hour of ore): 35.42 


51 of 55










Collector R-3894 

Charge Capacity (number of systems for 250 to 1000 tpd ore): 35.42 


Frother MIBC 



Collector PAX 



Depressant SSF 



Collector SPA 



Sulfuric Acid 



Lime 



Flocculent 






Caustic 






52 of 55










Chlorine 












Diluent and SX Reagent 



Coke Handling System 



Fuel (No 2 Fuel Oil) 







SUBTOTAL CONCENTRATOR (1 to 12): $13,072,119 $5,015,897 $5,015,897 

SUBTOTAL TIN CHLORINATION PYROMET (13 to 17): $0 $0 $0 

SUBTOTAL INDIUM / ZINC HYDROMET (18-26): $0 $0 $0 

SUBTOTAL TAILINGS AND WASTEWATER MANAGEMENT (27): $4,103,839 $567,753 $567,753 

53 of 55










SUBTOTAL PROCESS AND DOMESTIC WATER (28): $310,164 $138,466 $138,466 

SUBTOTAL UTILITIES SYSTEMS (29): $510,127 $310,327 $310,327 

SUBTOTAL REAGENT SYSTEMS (30): $800,838 $800,838 $800,838 

TOTAL PROCESS EQUIPMENT PURCHASE - LINE A $18,797,087 $6,833,281 $6,833,281 

Line B Delivery of process equipment to site: (shipment FOB site) 0.020 $375,942 $375,942 

(1% to 7% of process equipment) 

Line C Installation of process equipment: (install only) 0.050 $939,854 $939,854 


Line D Process piping materials and installation: (supply and install) 0.100 $1,879,709 $1,879,709 


Line E Process control systems and field instrumentation: (supply and install) 0.080 $1,503,767 $1,503,767 


Line F Power distribution, wiring and power disconnect: (supply and install) 0.250 $4,699,272 $4,699,272 


Line G Instrumentation wiring: (supply and install) 0.017 $312,032 $312,032 


Line H Process building, foundation, structure and services: (supply and install) 0.110 $2,067,680 $2,067,680 

(based on refurbishment to existing facilities) 

Line I Site infrastructure and support facilities: (supply and install) EXISTING 

(variable) 

Line J Power Transmission to site: (supply and install) EXISTING 

(variable) 

Line K Site works (grubbing, excavation, roads, drainage: (supply and install) EXISTING 

(variable) 

Line L Tailing disposal: (supply and install) EXISTING 

Line M Analytical / Metallurgical Laboratory Equipment (supply) $250,000 $250,000 

Line N Office Furniture, Computers and Equipment (supply) $30,000 $30,000 

54 of 55










Line O Warehouse and Yard Management Equipment (supply) $120,000 $120,000 

Line P Spare Parts for Process Equipment (supply) 0.01 $187,971 $187,971 

SUBTOTAL DIRECT (Line A to P): $31,163,313 $19,199,507 

Line Q Plant engineering and design: 0.0600 $1,869,799 $1,869,799 

(8% to 11% of direct) 

Line R Procurement and contract management: 0.0059 $183,864 $183,864 


Line S Construction supervision and field cost: 0.0059 $183,864 $183,864 


Line T Plant commissioning, shake-down: 0.0080 $249,307 $249,307 


SUBTOTAL OF INDIRECT (Line Q to T): $2,486,832 $2,486,832 

SUBTOTAL DIRECT AND INDIRECT: $33,650,146 $21,686,339 

CONTINGENCY: 15.00% $5,047,522 $3,252,951 

TOTAL INSTALLATION ESTIMATE: $38,697,667 $24,939,290 

(does not include underground works, mine development or site administration) 

RANGE OF ESTIMATE - AACE.05 CLASS IV 

Study cost estimate - conceptual / preliminary flowsheet. 

MINIMUM ESTIMATE (high probability of cost overrun): 10% $34,827,901 $22,445,361 

MAXIMUM ESTIMATE (cost overrun minimized): 35% $52,241,851 $33,668,042 

55 of 55

WORKING CAPITAL SUMMARY 

CASE: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity 


Client: Adex Mining Inc. REVISION: 07 

Project: Mount Pleasant North Zone Development STATUS: FINAL 

Reference: Preliminary Assessment DATE: January 22, 2010 

Location: Mount Pleasant Property, New Brunswick PROJECT NUMBER: 6526-03 

Code Item UNITS BASIS Quantity Working 

Annually 

Capital 

1) All cost are in Canadian dollars. 

Plant design name plate capacity: 

850.01 tonne per day of dry ore 

Plant availability factor: 0.90 

Maximum Annual Operating Hours: 8,760.00 

Annual On-line Operating Hours: 7,884.00 

Annual Tonnage of Ore Processed: 279,227.63 tonne of dry solids per year 

Accounts Receivable days 30 $21,453,896 $1,763,334 

Payment on product delivery - terms net 30 days on receipt. 

Product Inventory days 15 $21,453,896 $881,667 

Delay in shipping / product in transit. 

Operating Cost days 60 $1,928,000 $316,932 

Salary for processing and administration only. 

Initial Reagent Fill days 30 $2,953,846 $242,782 

Reagent and consumables inventory on start up. 

SUBTOTAL WORKING CAPITAL COST: $3,204,714 

CONTINGENCY: % 0.00% $0 

TOTAL WORKING CAPITAL: $3,204,714 

RANGE OF ESTIMATE AT -10% TO 35% 

(order of magnitude cost estimate) 

MINIMUM OF ESTIMATE: Minus 10.00% $2,884,243 

MAXIMUM OF ESTIMATE: Plus 35.00% $4,326,364 

1 of 1


CASE: B - Tin Concentrate and Hydromet Plant 850 tpd Nameplate Capacity 

Production of Tin Concentrate, Indium Metal and Zinc Metal 

CLIENT: Adex Mining Inc. PROJECT NUMBER: 6526-03 REVISION: 07 



LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class IV Order of Magnitude - Conceptual PROJECT NUMBER: 6526-03 



Processing facility name Plate Capacity (based on dry tonnes per day (tpd) of run-of-mine ore: 850.01 



Total annual tonnage of ore processed: 279,227.63 


1.00 Crushing Circuit (Ref Drw: 0503-10-01) Constant size crushing plant - operating hours per day change as throughput changes. 





Ore Hopper 


























1 of 53






























REV 02 REFURBISHED BY USED EQUIPMENT SUPPLIER 












REV 02 REFURBISHED UNIT 



2 of 53
















Rod Mill 









Ball Mill 







NOT REQUIRED 














3 of 53



















Cost Curve Estimate ($CDN): 1,573.00 0.000 677.29 0.82 $7,150 $0 $0 
























4 of 53
























Splitter Box 



















5 of 53














































6 of 53












































7 of 53













































8 of 53




































Zinc Flotation Reclaim Water Pump B 



Zinc Concentrate Thickener 



9 of 53













Zinc Concentrate Thickener U/F Pump B 































10 of 53












































11 of 53













































12 of 53











































13 of 53





















Cost Curve Estimate ($CDN): 1,573.00 0.000 98,943.84 0.42 $195,701 $0 $0 









Tin Flotation Conditioning Tank 














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15 of 53













































16 of 53











































17 of 53












































18 of 53











































19 of 53













Tin Concentrate Packaging (not included with tin chlorination system / for tin concentrate production only) 





























20 of 53












































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22 of 53













































23 of 53











































24 of 53













































25 of 53











































26 of 53













































27 of 53











































28 of 53











































29 of 53













































30 of 53










BMS Leach Thickener U/F Pump B DELETED REV 03 












BMS Leach Solution Holding Pump B DELETED REV 03 















BMS Leach Residue Holding Pump B DELETED REV 03 







31 of 53





























BMS Filter Filtrate Pump B DELETED REV 03 















32 of 53













BMS Leach Residue Pump B DELETED REV 03 





























Oxyhydrolysis Feed Pump B DELETED REV 03 

33 of 53


















Oxyhydrolysis Reactor B DELETED REV 03 



























34 of 53


































Oxyhydrolysis Residue Filter DELETED REV 03 









Oxyhydrolysis Dilute Acid Pump B DELETED REV 03 

35 of 53












































36 of 53



















Lead Carbonate Filter Feed Pump B DELETED REV 03 


















Lead Precipitate Pump B DELETED REV 03 







37 of 53



























Copper/ Arsenic Pump B DELETED REV 03 















Purified Leach Solution Holding Pump B DELETED REV 03 



38 of 53











































39 of 53





























(Ref Drw: 0503-42-06) 















40 of 53












































41 of 53





















(Ref Drw: 0503-42-07) 























42 of 53























































































44 of 53





































De-Chlorination Tower Transfer Pump B DELETED REV 03 









45 of 53
















Indium Cementation Reactor B DELETED REV 03 










DELETED REV03 






Indium Cementation Recycle Pump B DELETED REV 03 









Indium Cementation Filter Feed Pumps B DELETED REV 03 



46 of 53
















Indium Cementation Solution Holding Pumps B DELETED REV 03 




























47 of 53











Tailings Thickening and Pumping / Used cost based on Refurbishment of existing thickener 





Cost Curve Estimate ($CDN): 1,573.00 0.800 102,943.47 0.65 $2,977,947 $2,382,358 $2,382,358 



Process Water System 



Domestic Water System 





Low Pressure Steam Boiler System (1050 kPa) 














48 of 53














Vacuum System 











Frother MIBC 



Collector PAX 






Collector SPA 



Sulfuric Acid 



Lime 



49 of 53










Flocculent 






Caustic 






Chlorine 


Cost Curve Estimate ($CDN): 1,573.00 1.000 43,806.00 0.20 $89,408 $89,408 $89,408 




















50 of 53














SUBTOTAL TIN CHLORINATION PYROMET (13 to 17): $0 $0 $0 

SUBTOTAL INDIUM / ZINC HYDROMET (18-26): $11,981,143 $11,085,100 $11,085,100 

SUBTOTAL TAILINGS AND WASTEWATER MANAGEMENT (27): $4,103,839 $2,693,856 $2,693,856 


SUBTOTAL UTILITIES SYSTEMS (29): $2,371,881 $1,428,166 $1,428,166 

SUBTOTAL REAGENT SYSTEMS (30): $1,605,418 $1,605,418 $1,605,418 




Line C Installation of process equipment: (install only) 0.050 $1,649,333 $1,649,333 










51 of 53










Line H Process building, foundation, structure and services: (supply and install) 0.200 $6,597,334 $6,597,334 



(variable) 


(variable) 


(variable) 






SUBTOTAL DIRECT (Line A to P): $54,296,918 $43,382,664 







Line T Plant commissioning, shake-down: 0.0080 $434,375 $434,375 




CONTINGENCY: 15.00% $8,794,472 $7,157,334 





52 of 53












53 of 53

WORKING CAPITAL COST SUMMARY 



Client: Adex Mining Inc. Revision: 07 

Project: Mount Pleasant North Zone Development Status: FINAL 

Reference: Preliminary Assessment Date: January 22, 2010 

Location: Mount Pleasant Property, New Brunswick Project Number: 6526-03 

Code Item UNITS BASIS Quantity Working Cost 

Annually Capital per tonne ore 










Product Inventory days 15 $48,116,090 $1,977,374 











MINIMUM OF ESTIMATE: Minus 10.00% $6,093,261 


1 of 1


CASE: C - Fully Integrated Plant 850 tpd Nameplate Capacity 

Production of Tin Chloride, Indium Metal and Zinc Metal 




LOCATION: Mount Pleasant Property, New Brunswick ESTIMATE CLASSIFICATION: Class IV Study Cost Estimate - Conceptual PROJECT NUMBER: 6526-03 



Processing facility name plate capacity (based on dry tonnes per day (tpd) of run-of-mine ore: 850.0 



Total annual tonnage of ore processed: 279,228 


1.00 Crushing Circuit (Ref Drw: 0503-10-01) Constant size crushing plant - operating hours per day change as throughput changes (based on 133 tph - 6 to 8 hours per day operation). 




Ore Hopper 























1 of 53










































2 of 53















Rod Mill 









Ball Mill 







NOT REQUIRED 















3 of 53











































4 of 53























Splitter Box 




















5 of 53













































6 of 53













































7 of 53












































8 of 53




































Zinc Flotation Reclaim Water Pump B - VEA DELETED 



Zinc Concentrate Thickener - USED BASED ON REFURBISHMENT OF EXISTING 




9 of 53












Zinc Concentrate Thickener U/F Pump B - VEA DELETED 































10 of 53












































11 of 53













































12 of 53






















Arsenic Regrind Classification Cyclopac 





















13 of 53












































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16 of 53











































17 of 53












































18 of 53
















Cost Curve Estimate ($CDN): 1,573.00 0.300 200,000.00 0.11 $278,131 $83,439 $83,439 



























19 of 53













Tin Concentrate Packaging (not included with tin chlorination system / for tin concentrate production only) 





























20 of 53





























Charge Capacity (tonne per hour of solids): 1.43 















21 of 53












































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25 of 53











































26 of 53













































27 of 53











































28 of 53











































29 of 53













































30 of 53










BMS Leach Thickener U/F Pump B 












BMS Leach Solution Holding Pump B 















BMS Leach Residue Holding Pump B 







31 of 53





























BMS Filter Filtrate Pump B 















32 of 53













BMS Leach Residue Pump B 





























Oxyhydrolysis Feed Pump B 

33 of 53


















Oxyhydrolysis Reactor B 



























34 of 53


































Oxyhydrolysis Residue Filter 









Oxyhydrolysis Dilute Acid Pump B 

35 of 53












































36 of 53



















Lead Carbonate Filter Feed Pump B 


















Lead Precipitate Pump B 







37 of 53



























Copper/ Arsenic Pump B 















Purified Leach Solution Holding Pump B 



38 of 53











































39 of 53





























(Ref Drw: 0503-42-06) 















40 of 53












































41 of 53





















(Ref Drw: 0503-42-07) 























42 of 53























































































44 of 53





































De-Chlorination Tower Transfer Pump B 









45 of 53
















Indium Cementation Reactor B 















Indium Cementation Recycle Pump B 









Indium Cementation Filter Feed Pumps B 



46 of 53
















Indium Cementation Solution Holding Pumps B 




























47 of 53











Tailings Thickening and Pumping / Used cost based on Refurbishment of existing thickener 





Cost Curve Estimate ($CDN): 1,573.00 0.800 102,943.47 0.65 $2,977,947 $2,382,358 $2,382,358 



Process Water System 



Domestic Water System 





Low Pressure Steam Boiler System (1050 kPa) 














48 of 53














Vacuum System 











Frother MIBC 



Collector PAX 






Collector SPA 



Sulfuric Acid 



Lime 



49 of 53










Flocculent 






Caustic 






Chlorine 


Cost Curve Estimate ($CDN): 1,573.00 1.000 43,806.00 0.20 $89,408 $89,408 $89,408 
















50 of 53


















SUBTOTAL TIN CHLORINATION PYROMET (13 to 17): $8,421,482 $7,623,367 $7,623,367 

SUBTOTAL INDIUM / ZINC HYDROMET (18-26): $11,981,143 $11,276,122 $11,276,122 

SUBTOTAL TAILINGS AND WASTEWATER MANAGEMENT (27): $4,064,967 $2,685,253 $2,685,253 


SUBTOTAL UTILITIES SYSTEMS (29): $3,192,469 $1,829,866 $1,829,866 

SUBTOTAL REAGENT SYSTEMS (30): $1,873,642 $1,873,642 $1,873,642 


51 of 53












Line C Installation of process equipment: (install only) 0.050 $2,134,086 $2,134,086 










Line H Process building, foundation, structure and services: (supply and install) 0.250 $10,670,431 $10,670,431 



(variable) 


(variable) 


(variable) 






SUBTOTAL DIRECT (Line A to P): $70,500,464 $58,632,710 



52 of 53














Line T Plant commissioning, shake-down: 0.0080 $564,004 $564,004 




CONTINGENCY: 15.00% $11,418,960 $9,638,797 







53 of 53

WORKING CAPITAL COST SUMMARY 







Code Item UNITS BASIS Quantity Working 

Annually 

Capital 










Product Inventory days 15 $61,062,846 $2,509,432 













1 of 1



Appendix F 

Operating Cost Summary 




OPERATING COST SUMMARY 

CASE: 

A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity 






Code Item UNITS Unit Quantity Cost Cost 

Cost Annually Annually per tonne ore 








1.00 Mill Feedstock Value 

Value of ore at battery limit of concentrator is based on mining cost, mine site administrative cost 

and cost for transport of run-of-mine ore to the concentrator for processing. 

Mining cost per tonne of ore: $0.000 

Administrative cost per tonne of ore: $0.000 

Transport cost from mine site to processing facilities: 

included with mining costs 

Total value of feedstock (ISBL for processing) annually: $0 $0.000 

1 of 9


CASE: 









2.00 Reagents 

Value of reagents delivered to the mine site, completed with disposal 

of shipment containers as required (bulk shipment optimized). 

All reagent consumptions are based on typical values and are based 

on theoretical reagent consumption and is not based on 

bench scale or pilot testing of a representative ore sample. 

2.01 Lime as hydrated lime shipped in bulk truck loads (average consumption): tonne $300.00 1,047.10 $314,131 $1.125 

2.02 Collector (KAX) kilogram $4.25 76,787.60 $326,347 $1.169 

2.03 Collector (R-3894) kilogram $8.20 4,746.87 $38,924 $0.139 

2.04 Collector (Styrene Phosphonic Acid) kilogram $14.00 64,222.35 $899,113 $3.220 

2.05 Frother (MIBC) kilogram $4.50 11,448.33 $51,517 $0.185 

2.06 Activator (copper sulfate) kilogram $2.10 33,507.32 $70,365 $0.252 

2.07 Depressant (Sodium Silicofluoride) kilogram $1.75 139,613.81 $244,324 $0.875 

2.08 Calcium chloride (solid flake): kilogram $0.65 0.00 $0 $0.000 

2.09 Sodium hydroxide (50% solution): kilogram $0.33 0.00 $0 $0.000 

2.10 Chlorine gas: kilogram $1.20 0.00 $0 $0.000 

2.11 Sodium carbonate (95% powder): kilogram $0.75 0.00 $0 $0.000 

2.12 Sodium sulfide: kilogram $1.60 0.00 $0 $0.000 

2.13 Diatomaceous earth: kilogram $1.65 0.00 $0 $0.000 

2.14 36% hydrochloric acid: tonne $350.00 0.00 $0 $0.000 

2.15 Sodium chloride (>92% powder): kilogram $0.35 0.00 $0 $0.000 

2.16 Iron rods (100% Fe): kilogram $0.22 0.00 $0 $0.000 

2.17 Cansol D-60 (diluent): kilogram $2.32 0.00 $0 $0.000 

2.18 SX extractant: kilogram $38.50 0.00 $0 $0.000 

2 of 9


CASE: 









2.19 Pulverized coal / petcoke: kilogram $0.25 0.00 $0 $0.000 

2.20 Flocculent (Ciba E-10) shipped in bulk bags. kilogram $5.00 0.00 $0 $0.000 

2.21 Ferric chloride kilogram $0.74 0.00 $0 $0.000 

2.22 93% sulfuric acid: kilogram $0.30 1,116,910.51 $335,073 $1.200 

2.22 Tote tank return cost tank $100.00 0.00 $0 $0.000 

2.23 Bulk bag disposal cost: bag $10.00 0.00 $0 $0.000 

Total reagent cost annually: $2,279,796 $8.165 

3.00 Concentrator Consumables 

Value of consumables based on predicted consumption rates 

for high silica run-of-mine ore. 

Crusher liner and bowl refurbishment: set $15,000.00 1.00 $15,000 $0.054 

Screen replacements: m2 $1,500.00 15.00 $22,500 $0.081 

Ball mill liner replacement (1 set for every 300,000 tonnes of ore): set $110,000.00 0.60 $66,000 $0.236 

Rod mill liner replacement (1 set for every 300,000 tonnes of ore): set $228,000.00 0.60 $136,800 $0.490 

Grinding media consumption - steel rods: tonne $1,750.00 75.00 $131,250 $0.470 

Grinding media consumption - steel balls: tonne $1,750.00 150.00 $262,500 $0.940 

Filter media for all filters: m2 $100.00 400.00 $40,000 $0.143 

Total concentrator consumables: $674,050 $2.414 

3 of 9


CASE: 









4.00 Concentrator Utilities 

Power Load on Process: Kilowatt per tpd 2.65 

Power consumption: MW*hr $80.00 17,759 $1,278,639 $4.579 

No. 2 Fuel Oil: kilogram $0.90 0 $0 $0.000 

Total utilities: $1,278,639 $4.579 

5.00 Labour - Processing Facilities Only 

Labour cost includes annual salary plus 20% for overhead / burden. 

Management, Support and Technical Staff 

Plant Manager /Metallurgist $90,000 1 $90,000 $0.322 

Mill Clerk $45,000 1 $45,000 $0.161 

Metallurgist $90,000 0 $0 $0.000 

Technicians / Assayers $58,000 2 $116,000 $0.415 

Subtotal 4 $251,000 $0.899 

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CASE: 









Operators, Laborers and Supervision 

Shift Forman $65,000 0 $0 $0.000 

Crusher Operators $55,000 2 $110,000 $0.394 

Grinding Operators $55,000 4 $220,000 $0.788 

Flotation Operators $55,000 8 $440,000 $1.576 

Hydromet Operators $55,000 0 $0 $0.000 

Pyromet Operators $55,000 0 $0 $0.000 

Product Handling Operators $45,000 2 $90,000 $0.322 

Mobile Equipment / General Laborers $45,000 2 $90,000 $0.322 

Subtotal 18 $950,000 $3.402 

Maintenance and Laborers 

Maintenance Forman $65,000 1 $65,000 $0.233 

Millwrights $58,000 2 $116,000 $0.415 

Electrical and Instrumentation Technicians $58,000 1 $58,000 $0.208 

Welders $58,000 1 $58,000 $0.208 

Trades Helper $45,000 1 $45,000 $0.161 

Subtotal 6 $342,000 $1.225 

TOTAL OPERATING PERSONNEL: 28 $1,543,000 $5.526 

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CASE: 









6.00 Maintenance Consumables - Concentrator Only 

Spare parts inventory based on percentage of total 

capital for plant as annual spare part 

replacement, for belts, bears, motor and 

general machinery wear items. Piping and valves based on 

initial capital for pie and valves. 

Spare parts (mechanical and electrical): % $6,833,281.26 2.00% $136,666 $0.489 

Lubricants (gear box oil, hydraulic and grease): kg per tpd $5.50 10.00 $46,750 $0.167 

Piping, valve and chute work repairs: % $1,879,708.73 1.00% $18,797 $0.067 

Subtotal maintenance consumables: $202,213 $0.724 

7.00 Support Laboratories Cost 

Cost based on consumable and equipment maintenance for metallurgical 

support lab and assay lab operations. 

Analytical support laboratory consumables: per sample $20.00 10,000.00 $200,000 $0.716 

Services to analytical equipment: annual $10,000 $0.036 

In-house metallurgical test budget: annual $50,000 $0.179 

Subtotal support laboratory costs: $260,000 $0.931 

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CASE: 









8.00 Health & Safety 

Health and Safety training: annual $10,000 

Health and Safety supplies: annual $7,000 

Subtotal health & safety: $17,000 $0.061 

9.00 Technical Support / Metallurgical and Environmental 

Metallurgical consulting services: annual $20,000 

Environmental consulting and support services - compliance tests: annual $25,000 

Permit fees annual $32,000 

Subtotal metallurgical and environmental services: $77,000 $0.276 

10.00 Marketing and Sales 

Product market information and public relations: annual $10,000 

Product marketing services (based on percentage of product sales): 1.00% $29,495,005 $294,950 

Subtotal product marketing: annual $304,950 $1.092 

11.00 Process Technology Royalties 

Based on Net Smelter Return 

Process technology fee - patentable royalties: 

NOT APPLICABLE 


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CASE: 









Subtotal process technology royalties: NOT APPLICABLE $0 $0.000 

12.00 Packaging and Shipping: 

Product packaging for tin concentrate: tonne $10.00 3,230.87 $32,309 $0.116 

Product packaging for zinc concentrate: tonne $10.00 8,657.66 $86,577 $0.310 

Product packaging for zinc metal: tonne $10.00 0.00 $0 $0.000 

Product packaging for indium sponge: tonne $25.00 0.00 $0 $0.000 

Product packaging for tin chloride concentrate: tonne $150.00 0.00 $0 $0.000 

Subtotal packaging $118,885 $0.426 

Shipping and handling charge for tin concentrate: tonne $131.00 3,230.87 $423,244 $1.516 

Shipping and handling charge for zinc concentrate: tonne $146.14 8,657.66 $1,265,230 $4.531 

Shipping and handling charge for zinc metal: tonne $0.00 0.00 $0 $0.000 

Shipping and handling charge for indium sponge: tonne $205.00 0.00 $0 $0.000 

Shipping and handling charge for tin chloride: tonne paid by end user $0.000 

Subtotal shipping and handling $1,688,474 $6.047 

Subtotal Packaging and Shipping: $1,807,359 $6.473 

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CASE: 









SUBTOTAL ANNUAL OPERATING COST: $8,444,007 $30.241 

CONTINGENCY: % 5.00% $422,200 $1.512 

TOTAL ANNUAL OPERATING COST: $8,866,208 $31.753 



MINIMUM OF ESTIMATE: Minus 10.00% $7,979,587 $28.577 

MAXIMUM OF ESTIMATE: Plus 35.00% $11,969,380 $42.866 

9 of 9

SITE ADMINISTRATION COST SUMMARY 
















1.00 Labour - Site Administration 


Management and Accounting Staff 

Site manager $130,000 0 $0 $0.000 

Office Clerical $45,000 0 $0 $0.000 

Human Resources Manager $90,000 0 $0 $0.000 

Safety Supervisor $65,000 0.5 $32,500 $0.116 

Chief Accountant $90,000 1 $90,000 $0.322 

Subtotal 2 $122,500 $0.439 

Warehouse 

Purchasing Agent $65,000 0.5 $32,500 $0.116 

Warehouse Receiver $45,000 1 $45,000 $0.161 

Subtotal 2 $77,500 $0.278 

Site Maintenance and Security 

Gate Security $45,000 3 $135,000 $0.483 

Site Maintenance and Buildings Upkeep $50,000 1 $50,000 $0.179 

Subtotal 4 $185,000 $0.663 

TOTAL ADMINISTRATION PERSONNEL: 7 $385,000 $1.38 

1 of 2










2.00 Site General Maintenance 

Materials for Building Upkeep / Repairs annual $50,000 

Mobile Equipment Repairs annual $15,000 

Fuel annual $10,000 

Subtotal Site Maintenance: $75,000 $0.27 

3.00 Legal and Accounting Support Services 

Legal consulting services: annual $10,000 

Accounting services: annual $10,000 

Subtotal Administration Services: $20,000 $0.07 

SUBTOTAL ANNUAL ADMINISTRATIVE COST: $480,000 $1.72 

CONTINGENCY: % 5.00% $24,000 $0.09 

TOTAL ANNUAL ADMINISTRATIVE COST: $504,000 $1.80 



MINIMUM OF ESTIMATE: Minus 10.00% $453,600 

MAXIMUM OF ESTIMATE: Plus 35.00% $680,400 

2 of 2


CASE: 

B - Tin Concentrate and Hydromet Plant 850 tpd Nameplate Capacity 















1.00 Mill Feedstock Value 






Total value of feedstock (ISBL for processing) annually: $0.000 

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CASE: 









2.00 Reagents 













2.08 Calcium chloride (solid flake): kilogram $0.65 0.00 $0 $0.000 


2.10 Chlorine gas: kilogram $1.07 349,464.89 $373,927 $1.339 

2.11 Sodium carbonate (95% powder): kilogram $0.75 46,639.02 $34,979 $0.125 

2.12 Sodium sulfide: kilogram $1.60 73,579.40 $117,727 $0.422 

2.13 Diatomaceous earth: kilogram $1.65 4,959.53 $8,183 $0.029 

2.14 36% hydrochloric acid: tonne $350.00 787.89 $275,761 $0.988 


2.16 Iron rods (100% Fe): kilogram $0.22 525,880.88 $115,694 $0.414 

2.17 Cansol D-60 (diluent): kilogram $2.32 4,491.05 $10,419 $0.037 

2 of 9


CASE: 









2.18 SX extractant: kilogram $38.50 1,497.02 $57,635 $0.206 

2.19 Pulverized coal / petcoke: kilogram $0.25 0.00 $0 $0.000 




2.22 Tote tank return cost tank $100.00 145.76 $14,576 $0.052 

2.23 Bulk bag disposal cost: bag $10.00 298.30 $2,983 $0.011 













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CASE: 












No. 2 Fuel Oil: kilogram $0.90 1874242 $1,686,818 $6.041 





Plant Manager $90,000 1 $90,000 $0.322 

Mill Clerk $45,000 1 $45,000 $0.161 

Metallurgist $90,000 1 $90,000 $0.322 


Subtotal 7 $485,000 $1.737 

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CASE: 










Shift Forman $65,000 0 $0 $0.000 




Hydromet Operators $55,000 8 $440,000 $1.576 

Pyromet Operators $55,000 0 $0 $0.000 



Subtotal 27 $1,435,000 $5.139 



Millwrights $58,000 3 $174,000 $0.623 


Welders $58,000 1 $58,000 $0.208 

Trades Helper $45,000 1 $45,000 $0.161 

Subtotal 9 $516,000 $1.848 

TOTAL OPERATING PERSONNEL: 43 $2,436,000 $8.724 

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CASE: 

















Piping, valve and chute work repairs: % $3,298,666.85 1.00% $32,987 $0.118 





Analytical support laboratory consumables: per sample $20.00 20,000.00 $400,000 $1.433 



Subtotal support laboratory costs: $490,000 $1.755 

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CASE: 






















7 of 9


CASE: 
















Product packaging for tin concentrate: tonne $10.00 3,230.87 $32,309 $0.116 

Product packaging for zinc concentrate: tonne $10.00 0.00 $0 $0.000 

Product packaging for zinc metal: tonne $10.00 4,056.26 $40,563 $0.145 

Product packaging for indium sponge: tonne $25.00 40.50 $1,012 $0.004 

Product packaging for tin chloride concentrate: tonne $150.00 0.00 $0 $0.000 


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CASE: 









Shipping and handling charge for tin concentrate: tonne $131.00 3,230.87 $423,244 $1.516 

Shipping and handling charge for zinc concentrate: tonne $146.14 0.00 $0 $0.000 

Shipping and handling charge for zinc metal: tonne $0.00 4,056.26 $0 $0.000 

Shipping and handling charge for indium sponge: tonne $205.00 40.50 $8,302 $0.030 


Subtotal shipping and handling $431,546 $1.545 

Subtotal Packaging and Shipping: $505,429 $1.810 


CONTINGENCY: % 5.00% $650,212 $2.329 





MAXIMUM OF ESTIMATE: Plus 35.00% $18,433,518 $66.016 

9 of 9


OPTION: B - Tin Concentrate and Hydromet Plant 850 tpd Nameplate Capacity 


















Site manager $130,000 0 $0 $0.000 

Office Clerical $45,000 0 $0 $0.000 

Human Resources Manager $90,000 1 $90,000 $0.322 

Safety Supervisor $65,000 1 $65,000 $0.233 


Subtotal 3 $245,000 $0.877 

Warehouse 

Purchasing Agent $65,000 1 $65,000 $0.233 


Subtotal 3 $155,000 $0.555 


Gate Security $45,000 4 $180,000 $0.645 


Subtotal 6 $280,000 $1.003 

TOTAL ADMINISTRATION PERSONNEL: 12 $680,000 $2.435 

1 of 2


OPTION: B - Tin Concentrate and Hydromet Plant 850 tpd Nameplate Capacity 

















SUBTOTAL ANNUAL ADMINISTRATIVE COST: $870,000 $3.116 

CONTINGENCY: % 5.00% $43,500 $0.156 

TOTAL ANNUAL OPERATING COST: $913,500 $3.272 



MINIMUM OF ESTIMATE: Minus 10.00% $822,150 


2 of 2


CASE 

C - Fully Integrated Plant 850 tpd Nameplate Capacity 















1.00 Mill Feedstock Value- at Battery Limit 






Total value of feedstock (ISBL for processing) annually: $0.000 

1 of 9


CASE 









2.00 Reagents 













2.08 Calcium chloride (solid flake): kilogram $0.65 3,645,059.56 $2,369,289 $8.485 


2.10 Chlorine gas: kilogram $1.07 349,464.89 $373,927 $1.339 

2.11 Sodium carbonate (95% powder): kilogram $0.75 46,639.02 $34,979 $0.125 

2.12 Sodium sulfide: kilogram $1.60 73,579.40 $117,727 $0.422 

2.13 Diatomaceous earth: kilogram $1.65 4,959.53 $8,183 $0.029 

2.14 36% hydrochloric acid: tonne $350.00 787.89 $275,761 $0.988 


2.16 Iron rods (100% Fe): kilogram $0.22 525,880.88 $115,694 $0.414 

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CASE 









2.17 Cansol D-60 (diluent): kilogram $2.32 4,491.05 $10,419 $0.037 

2.18 SX extractant: kilogram $38.50 1,497.02 $57,635 $0.206 

2.19 Pulverized coal / petcoke: kilogram $0.25 237,450.82 $59,363 $0.213 




2.22 Tote tank return cost tank $100.00 145.76 $14,576 $0.052 

2.23 Bulk bag disposal cost: bag $10.00 535.75 $5,357 $0.019 













3 of 9


CASE 












No. 2 Fuel Oil: kilogram $0.90 4,616,728 $4,155,055 $14.881 





Plant Manager $120,000 1 $120,000 $0.430 

Mill Clerk $45,000 1 $45,000 $0.161 

Metallurgist $90,000 2 $180,000 $0.645 


Subtotal 10 $693,000 $2.482 

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CASE 










Shift Forman $65,000 4 $260,000 $0.931 




Hydromet Operators $55,000 8 $440,000 $1.576 

Pyromet Operators $55,000 8 $440,000 $1.576 



Subtotal 43 $2,315,000 $8.291 



Millwrights $58,000 3 $174,000 $0.623 


Welders $58,000 4 $232,000 $0.831 

Trades Helper $45,000 2 $90,000 $0.322 

Subtotal 14 $793,000 $2.840 

TOTAL OPERATING PERSONNEL: 67 $3,801,000 $13.613 

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CASE 

















Piping, valve and chute work repairs: % $4,268,172.43 1.00% $42,682 $0.153 





Analytical support laboratory consumables: per sample $20.00 30,000.00 $600,000 $2.149 



Subtotal support laboratory costs: $710,000 $2.543 

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CASE 






















7 of 9


CASE 
















Product packaging for tin concentrate: tonne $10.00 0.00 $0 $0.000 

Product packaging for zinc concentrate: tonne $10.00 0.00 $0 $0.000 

Product packaging for zinc metal: tonne $10.00 4,056.26 $40,563 $0.145 

Product packaging for indium sponge: tonne $25.00 40.50 $1,012 $0.004 

Product packaging for tin chloride concentrate: tonne $150.00 2,142.09 $321,313 $1.151 


Shipping and handling charge for tin concentrate: tonne $131.00 0.00 $0 $0.000 

Shipping and handling charge for zinc concentrate: tonne $146.14 0.00 $0 $0.000 

Shipping and handling charge for zinc metal: tonne $0.00 4,056.26 $0 $0.000 

Shipping and handling charge for indium sponge: tonne $205.00 40.50 $8,302 $0.030 

8 of 9


CASE 










Subtotal shipping and handling $8,302 $0.030 

Subtotal Packaging and Shipping: $371,190 $1.329 


CONTINGENCY: % 5.00% $986,652 $3.534 





MAXIMUM OF ESTIMATE: Plus 35.00% $27,971,593 $100.175 

9 of 9




















Site manager $130,000 0 $0 $0.000 

Office Clerical $45,000 2 $90,000 $0.322 

Human Resources Manager $90,000 1 $90,000 $0.322 

Safety Supervisor $65,000 1 $65,000 $0.233 


Subtotal 5 $335,000 $1.200 

Warehouse 

Purchasing Agent $65,000 1 $65,000 $0.233 


Subtotal 5 $245,000 $0.877 


Gate Security $45,000 4 $180,000 $0.645 


Subtotal 7 $330,000 $1.182 

TOTAL ADMINISTRATION PERSONNEL: 17 $910,000 $3.259 

1 of 2



















SUBTOTAL ANNUAL ADMINISTRATIVE COST: $1,340,000 $4.799 

CONTINGENCY: % 5.00% $67,000 $0.240 






2 of 2



Appendix G 

Economic Analysis 




Project Cash Flow - Financial Analysis REVISION: 07 

Adex Mining Inc. - Mount Pleasant North Zone Preliminary Assessment STATUS: FINAL 

CASE: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity DATE: January 22, 2010 

Production of Tin Concentrate and Indium-Bearing Zinc Concentrate PROJECT NUMBER: 6526-03 

Pre-production Years 

Production Years 

Line Description UNITS Basis -4 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 

Name Plate Feed Capacity (ore): tonne per day 850.01 

Name Plate Production Capacity: 

MTPD 

On Stream (plant availability) % 90.00% 

Ramp-up on Production for First Year % 90.00% 

Construction Phased Expenditure % 0.00% 0.00% 0.00% 100.00% 

Conversion for CDN / USD: 1.100 

Income Tax Capital Cost Allowance % 25.0% 

Federal Income Tax Rate % 15.0% 

Provincial Income Tax Rate % 8.0% 

Mining Tax on Net Revenue % 2.0% 

Mining Tax on Net Profit % 16.0% 

Reclamation and Closure Costs CDN 2,871,000 

Working Capital CDN 3,204,714 

1.00 Pre-Production Capital Investment (Direct and Indirect / Installed Costs) 

1.01 Mine Development for North Zone 600 Adit 0 0 0 0 

1.02 Mine Development for Deep Tin Zone 16,231,166 0 0 0 16,231,166 

1.03 Mine Development for Endograntic Tin Zone 

1.04 Process for Concentrator - Tin and Bulk Sulfide Concentrate 18,306,419 0 0 0 18,306,419 

1.05 Process for Tin Chloride Pyrometallurgical Facilities 0 0 0 0 0 

1.06 Process for Indium and Zinc Hydrometallurgical Facilities 0 0 0 0 0 

1.07 Tailings and Wastewater Management 2,072,117 0 0 0 2,072,117 

1.08 Process and Domestic Water Systems 505,357 0 0 0 505,357 

1.09 Utilities Systems 1,132,595 0 0 0 1,132,595 

1.10 Reagent Systems 2,922,803 0 0 0 2,922,803 

1.11 Tailings Pond / Sludge Storage Cells Upgrade 0 0 0 0 0 

NOTE: factor for equipment cost to total installed cost: 3.650 

Total Pre-Production Capital Investment: 41,170,456.37 0.00 0.00 0.00 -41,170,456.37 0 0 0 0 0 0 0 0 0 0 -2,871,000 0 0 

2.0 Operating Revenue Generated 

2.1 Product Sales - Tin Concentrate: CDN 19,677,222 19,677,222 17,709,500 19,677,222 19,677,222 19,677,222 19,677,222 19,677,222 19,677,222 19,677,222 19,677,222 15,594,199 

2.2 Product Sales - Tin Dichloride: CDN 0 0 0 0 0 0 0 0 0 0 0 0 

2.3 Product Sales - Indium in conc: CDN 4,065,890 4,065,890 3,659,301 4,065,890 4,065,890 4,065,890 4,065,890 4,065,890 4,065,890 4,065,890 4,065,890 3,222,218 

2.4 Product Sales - Zinc Metal: CDN 0 0 0 0 0 0 0 0 0 0 0 0 

2.5 Product Sales - Zinc Concentrate: CDN 6,436,102 6,436,102 5,792,492 6,436,102 6,436,102 6,436,102 6,436,102 6,436,102 6,436,102 6,436,102 6,436,102 5,100,611 

Total Operating Earnings: 27,161,293 30,179,215 30,179,215 30,179,215 30,179,215 30,179,215 30,179,215 30,179,215 30,179,215 23,917,028 0 0 0 

3.0 Operating Expenses 

3.1 Site Administrative Cost CDN 504,000.00 504,000.00 504,000.00 504,000.00 504,000.00 504,000.00 504,000.00 504,000.00 504,000.00 504,000.00 399,420 

0 

3.2 Mine Operating Costs CDN 8,382,413 8,382,413 8,382,413 8,382,413 8,382,413 8,382,413 8,382,413 8,382,413 8,382,413 8,382,413 8,382,413 6,643,063 

A) Labour CDN 0 0 0 0 0 0 0 0 0 0 0 

B) Equipment Rental CDN 0 0 0 0 0 0 0 0 0 0 0 

C) Diesel Fuel and Lubricants CDN 0 0 0 0 0 0 0 0 0 0 0 

D) Propane CDN 0 0 0 0 0 0 0 0 0 0 0 

E) Explosives and Accessories CDN 0 0 0 0 0 0 0 0 0 0 0 

F) Supplies and Materials CDN 0 0 0 0 0 0 0 0 0 0 0 

G) Contingency CDN 0 0 0 0 0 0 0 0 0 0 0 

0 0 

3.3 Process Operating Cost 0 

A) Feedstock Value (see mine O&M cost) CDN (include with mine and site administrative cost) 0 0 0 0 0 0 0 0 0 0 0 0 

B) Reagents CDN 2,279,796 2,279,796 2,279,796 2,279,796 2,279,796 2,279,796 2,279,796 2,279,796 2,279,796 2,279,796 2,279,796 1,806,738 

C) Consumables CDN 674,050 674,050 674,050 674,050 674,050 674,050 674,050 674,050 674,050 674,050 674,050 534,185 

D) Utilities CDN 1,278,639 1,278,639 1,278,639 1,278,639 1,278,639 1,278,639 1,278,639 1,278,639 1,278,639 1,278,639 1,278,639 1,013,322 

E) Labour CDN 1,543,000 1,543,000 1,543,000 1,543,000 1,543,000 1,543,000 1,543,000 1,543,000 1,543,000 1,543,000 1,543,000 1,222,828 

F) Maintenance CDN 202,213 202,213 202,213 202,213 202,213 202,213 202,213 202,213 202,213 202,213 202,213 160,254 

G) Laboratories CDN 260,000 260,000 260,000 260,000 260,000 260,000 260,000 260,000 260,000 260,000 260,000 206,050 

H) Insurance CDN (included with site administrative cost) 0 0 0 0 0 0 0 0 0 0 0 

I) Health & Safety CDN 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 17,000 13,473 

J) Support Services CDN 77,000 77,000 77,000 77,000 77,000 77,000 77,000 77,000 77,000 77,000 77,000 61,023 

K) Marketing and Sales CDN 304,950 304,950 304,950 304,950 304,950 304,950 304,950 304,950 304,950 304,950 304,950 241,673 

L) Process Technology Royalties CDN 0 0 0 0 0 0 0 0 0 0 0 0 

M) Packaging and Shipping CDN 1,807,359 1,807,359 1,807,359 1,807,359 1,807,359 1,807,359 1,807,359 1,807,359 1,807,359 1,807,359 1,807,359 1,432,332 

N) Contingency CDN 422,200 422,200 422,200 422,200 422,200 422,200 422,200 422,200 422,200 422,200 422,200 334,594 

Total Operating Expenses: -17,752,621 -17,752,621 -17,752,621 -17,752,621 -17,752,621 -17,752,621 -17,752,621 -17,752,621 -17,752,621 -14,068,952 0 0 0 

Page 1 of 2


Adex Mining Inc. - Mount Pleasant North Zone Preliminary Assessment STATUS: FINAL 

CASE: A - Tin and Zinc Concentrator 850 tpd Nameplate Capacity DATE: January 22, 2010 

Production of Tin Concentrate and Indium-Bearing Zinc Concentrate PROJECT NUMBER: 6526-03 




4.0 Taxes 

4.1 Federal and Provincial Tax 

A) Income Before Tax: CDN 9,408,672 12,426,594 12,426,594 12,426,594 12,426,594 12,426,594 12,426,594 12,426,594 12,426,594 9,848,075 

B) Capital Cost Balance CDN 41,170,456 32,087,783 20,047,547 8,007,311 0 0 0 0 0 0 

C) Capital Cost Allowance CDN 9,082,673 8,021,946 5,011,887 2,001,828 0 0 0 0 0 0 41,170,456 Total CCA 

D) Accelerated Capital Cost Allowance CDN 0 4,018,290 7,028,350 6,005,483 0 0 0 0 0 0 

E) Taxable Income Before Loss Carry Forward CDN 0 0 0 3,871,082 10,656,780 10,656,780 10,656,780 10,656,780 10,656,780 8,565,122 

F) Loss Carried Forward CDN 0 0 0 0 0 0 0 0 0 0 

G) Net Taxable Income CDN 0 0 0 3,871,082 10,656,780 10,656,780 10,656,780 10,656,780 10,656,780 8,565,122 15,115,624 Total Tax 

H) Federal Tax: CDN 0 0 0 580,662 1,598,517 1,598,517 1,598,517 1,598,517 1,598,517 1,284,768 

I) Provincial Tax: CDN 0 0 0 309,687 852,542 852,542 852,542 852,542 852,542 685,210 

J) Loss To Carry Forward Balance CDN 0 0 0 0 0 0 0 0 0 0 


A) Net Revenue for Mining Tax Before Allowance CDN 18,295,085 21,313,007 21,313,007 21,313,007 21,313,007 21,313,007 21,313,007 21,313,007 21,313,007 16,890,558 

B) Mining Tax Net Revenue Processing Allowance CDN 1,995,143 1,995,143 1,995,143 1,995,143 1,995,143 1,995,143 1,995,143 1,995,143 1,995,143 1,995,143 

C) Net Revenue for Mining Tax CDN 16,299,942 19,317,864 19,317,864 19,317,864 19,317,864 19,317,864 19,317,864 19,317,864 19,317,864 14,895,415 

D) Mining Tax on Net Revenue CDN 325,999 386,357 386,357 386,357 386,357 386,357 386,357 386,357 386,357 297,908 

E) Mine and Process Depreciation Balance CDN 41,170,456 32,373,497 20,618,975 8,864,453 0 0 0 0 0 0 

F) Mining Tax Depreciation Allowance CDN 8,796,959 11,754,522 11,754,522 8,864,453 0 0 0 0 0 0 

G) Mining Tax Depreciation Rate % 21.4% 28.6% 28.6% 21.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 

H) Net Profit for Mining Tax Before Allowance CDN 285,714 285,714 285,714 3,175,783 12,040,236 12,040,236 12,040,236 12,040,236 12,040,236 9,550,167 

I) Mining Tax Net Profit Processing Allowance CDN 185,714 185,714 185,714 2,064,259 3,293,637 3,293,637 3,293,637 3,293,637 3,293,637 3,293,637 

J) Net Profit for Mining Tax CDN 100,000 100,000 100,000 1,111,524 8,746,600 8,746,600 8,746,600 8,746,600 8,746,600 6,256,531 

K) Mining Tax on Net Profit CDN 0 0 0 161,844 1,383,456 1,383,456 1,383,456 1,383,456 1,383,456 985,045 

L) Total Mining Tax CDN 325,999 386,357 386,357 548,201 1,769,813 1,769,813 1,769,813 1,769,813 1,769,813 1,282,953 

5.0 Pre-Tax Financials 

5.1 Cash Flow 0 0 0 -41,170,456 6,203,958 12,426,594 12,426,594 12,426,594 12,426,594 12,426,594 12,426,594 12,426,594 12,426,594 9,848,075 333,714 

5.2 Cumulative Cash Flow: 0 0 0 -41,170,456 -34,966,499 -22,539,905 -10,113,311 2,313,282 14,739,876 27,166,469 39,593,063 52,019,656 64,446,250 74,294,325 74,628,040 

5.3 NET PRESENT VALUE: $32,777,842 

5.4 INTERNAL RATE OF RETURN: 23.49% 

5.5 PAYBACK PERIOD (years): 4.26 

5.6 OPERATING MARGINS: 34.64% 

5.7 PROJECT LIFE (years): 10.00 

5.8 RATE OF DISCOUNT OVER PERIOD: 8.00% 

5.9 ANNUAL INFLATION FACTOR FOR O&M COSTS: 1.000 

6.0 Post-Tax Financials 

6.1 Cash Flow 0 0 0 -41,170,456 5,877,959 12,040,236 12,040,236 10,988,044 8,205,721 8,205,721 8,205,721 8,205,721 8,205,721 6,595,144 333,714 

6.2 Cumulative Cash Flow: 0 0 0 -41,170,456 -35,292,497 -23,252,261 -11,212,025 -223,981 7,981,740 16,187,460 24,393,181 32,598,902 40,804,623 47,399,767 47,733,481 








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Adex Mining Inc. - Mount Pleasant North Zone Development Preliminary Assessment STATUS: FINAL 

CASE: B - Tin Concentrate and Hydromet Plant 850 tpd Nameplate Capacity DATE: January 22, 2010 

Production of Tin Concentrate, Indium Metal and Zinc Metal PROJECT NUMBER: 6526-03 






MTPD 

















1.05 Process for Tin Chloride Pyrometallurgical Facilities 0 0 0 0 0 

1.06 Process for Indium and Zinc Hydrometallurgical Facilities 27,557,995 0 0 0 27,557,995 

1.07 Tailings and Wastewater Management 6,697,031 0 0 0 6,697,031 








2.1 Product Sales - Tin Concentrate: CDN 19,677,222 19,677,222 17,709,500 19,677,222 19,677,222 19,677,222 19,677,222 19,677,222 19,677,222 19,677,222 19,677,222 15,594,199 

2.2 Product Sales - Tin Dichloride: CDN 0 0 0 0 0 0 0 0 0 0 0 0 

2.3 Product Sales - Indium Sponge: CDN 17,486,964 17,486,964 15,738,268 17,486,964 17,486,964 17,486,964 17,486,964 17,486,964 17,486,964 17,486,964 17,486,964 13,858,419 

2.4 Product Sales - Zinc Metal: CDN 10,951,904 10,951,904 9,856,713 10,951,904 10,951,904 10,951,904 10,951,904 10,951,904 10,951,904 10,951,904 10,951,904 8,679,384 

2.5 Product Sales - Zinc Concentrate: CDN 0 0 0 0 0 0 0 0 0 0 0 0 

Total Operating Earnings: 43,304,481 48,116,090 48,116,090 48,116,090 48,116,090 48,116,090 48,116,090 48,116,090 48,116,090 38,132,001 0 0 0 


3.1 Site Administrative Cost CDN 913,500.00 913,500.00 913,500.00 913,500.00 913,500.00 913,500.00 913,500.00 913,500.00 913,500.00 913,500.00 723,949 

0 


A) Labour CDN 0 0 0 0 0 0 0 0 0 0 0 



D) Propane CDN 0 0 0 0 0 0 0 0 0 0 0 




0 0 

3.3 Process Operating Cost 0 

A) Feedstock Value (see mine O&M cost) CDN (included with mine and site administrative cost) 0 0 0 0 0 0 0 0 0 0 0 0 

B) Reagents CDN 3,291,681 3,291,681 3,291,681 3,291,681 3,291,681 3,291,681 3,291,681 3,291,681 3,291,681 3,291,681 3,291,681 2,608,657 



E) Labour CDN 2,436,000 2,436,000 2,436,000 2,436,000 2,436,000 2,436,000 2,436,000 2,436,000 2,436,000 2,436,000 2,436,000 1,930,530 


G) Support Laboratories CDN 490,000 490,000 490,000 490,000 490,000 490,000 490,000 490,000 490,000 490,000 490,000 388,325 

H) Insurance CDN (included with site administration costs) 0 0 0 0 0 0 0 0 0 0 0 0 





M) Packaging and Shipping CDN 505,429 505,429 505,429 505,429 505,429 505,429 505,429 505,429 505,429 505,429 505,429 400,553 



Page 1 of 2



CASE: B - Tin Concentrate and Hydromet Plant 850 tpd Nameplate Capacity DATE: January 22, 2010 

Production of Tin Concentrate, Indium Metal and Zinc Metal PROJECT NUMBER: 6526-03 




4.0 Taxes 


A) Income Before Tax: CDN 20,354,109 25,165,718 25,165,718 25,165,718 25,165,718 25,165,718 25,165,718 25,165,718 25,165,718 19,943,832 


C) Capital Cost Allowance CDN 17,270,811 12,813,788 6,672,717 531,647 0 0 0 0 0 0 71,104,058 Total CCA 

D) Accelerated Capital Cost Allowance CDN 2,578,095 11,750,494 17,891,565 1,594,941 0 0 0 0 0 0 




H) Federal Tax: CDN 0 0 0 2,986,641 3,234,019 3,234,019 3,234,019 3,234,019 3,234,019 2,594,082 

I) Provincial Tax: CDN 0 0 0 1,592,875 1,724,810 1,724,810 1,724,810 1,724,810 1,724,810 1,383,510 



A) Net Revenue for Mining Tax Before Allowance CDN 29,650,023 34,461,632 34,461,632 34,461,632 34,461,632 34,461,632 34,461,632 34,461,632 34,461,632 27,310,843 

B) Mining Tax Net Revenue Processing Allowance CDN 4,389,831 4,389,831 4,389,831 4,389,831 4,389,831 4,389,831 4,389,831 4,389,831 4,389,831 4,389,831 

C) Net Revenue for Mining Tax CDN 25,260,191 30,071,800 30,071,800 30,071,800 30,071,800 30,071,800 30,071,800 30,071,800 30,071,800 22,921,012 

D) Mining Tax on Net Revenue CDN 505,204 601,436 601,436 601,436 601,436 601,436 601,436 601,436 601,436 458,420 






J) Net Profit for Mining Tax CDN 100,000 100,000 100,000 15,892,227 18,875,958 18,875,958 18,875,958 18,875,958 18,875,958 13,797,087 

K) Mining Tax on Net Profit CDN 0 0 0 2,526,756 3,004,153 3,004,153 3,004,153 3,004,153 3,004,153 2,191,534 

L) Total Mining Tax CDN 505,204 601,436 601,436 3,128,192 3,605,589 3,605,589 3,605,589 3,605,589 3,605,589 2,649,954 


5.1 Cash Flow 0 0 0 -71,104,058 13,583,819 25,165,718 25,165,718 25,165,718 25,165,718 25,165,718 25,165,718 25,165,718 25,165,718 19,943,832 3,899,290 

5.2 Cumulative Cash Flow: 0 0 0 -71,104,058 -57,520,239 -32,354,520 -7,188,802 17,976,916 43,142,634 68,308,353 93,474,071 118,639,789 143,805,507 163,749,339 167,648,629 

5.3 NET PRESENT VALUE: $79,897,754.1 








6.1 Cash Flow 0 0 0 -71,104,058 13,078,615 24,564,282 24,564,282 17,458,010 16,601,299 16,601,299 16,601,299 16,601,299 16,601,299 13,316,286 3,899,290 

6.2 Cumulative Cash Flow: 0 0 0 -71,104,058 -58,025,443 -33,461,160 -8,896,878 8,561,132 25,162,431 41,763,731 58,365,030 74,966,330 91,567,629 104,883,915 108,783,205 

6.3 NET PRESENT VALUE: $47,184,226.4 


6.5 PAYBACK PERIOD (years): 4.43 





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CASE: C - Fully Integrated Plant 850 tpd Nameplate Capacity DATE: January 22, 2010 

Production of Tin Chloride, Indium Metal and Zinc Metal PROJECT NUMBER: 6526-03 






MTPD 

















1.05 Process for Tin Chloride Pyrometallurgical Facilities 18,282,205 0 0 0 18,282,205 

1.06 Process for Indium and Zinc Hydrometallurgical Facilities 27,042,170 0 0 0 27,042,170 

1.07 Tailings and Wastewater Management 6,439,719 0 0 0 6,439,719 








2.1 Product Sales - Tin Concentrate: CDN 0 0 0 0 0 0 0 0 0 0 0 0 

2.2 Product Sales - Tin Dichloride: CDN 32,623,978 32,623,978 29,361,581 32,623,978 32,623,978 32,623,978 32,623,978 32,623,978 32,623,978 32,623,978 32,623,978 25,854,503 

2.3 Product Sales - Indium Sponge: CDN 17,486,964 17,486,964 15,738,268 17,486,964 17,486,964 17,486,964 17,486,964 17,486,964 17,486,964 17,486,964 17,486,964 13,858,419 

2.4 Product Sales - Zinc Metal: CDN 10,951,904 10,951,904 9,856,713 10,951,904 10,951,904 10,951,904 10,951,904 10,951,904 10,951,904 10,951,904 10,951,904 8,679,384 

2.5 Product Sales - Zinc Concentrate: CDN 0 0 0 0 0 0 0 0 0 0 0 0 

Total Operating Earnings: 54,956,561 61,062,846 61,062,846 61,062,846 61,062,846 61,062,846 61,062,846 61,062,846 61,062,846 48,392,305 0 0 0 


3.1 Site Administrative Cost CDN 1,407,000.00 1,407,000.00 1,407,000.00 1,407,000.00 1,407,000.00 1,407,000.00 1,407,000.00 1,407,000.00 1,407,000.00 1,407,000.00 1,115,048 


A) Labour CDN 0 0 0 0 0 0 0 0 0 0 0 



D) Propane CDN 0 0 0 0 0 0 0 0 0 0 0 




0 

3.3 Process Operating Cost 

A) Feedstock Value CDN (see mine and site administrative cost) 0 0 0 0 0 0 0 0 0 0 0 0 

B) Reagents CDN 5,722,706 5,722,706 5,722,706 5,722,706 5,722,706 5,722,706 5,722,706 5,722,706 5,722,706 5,722,706 5,722,706 4,535,245 



E) Labour CDN 3,801,000 3,801,000 3,801,000 3,801,000 3,801,000 3,801,000 3,801,000 3,801,000 3,801,000 3,801,000 3,801,000 3,012,293 


G) Support Laboratories CDN 710,000 710,000 710,000 710,000 710,000 710,000 710,000 710,000 710,000 710,000 710,000 562,675 

H) Insurance CDN (see site administrative cost) 0 0 0 0 0 0 0 0 0 0 0 0 





M) Packaging and Shipping CDN 371,190 371,190 371,190 371,190 371,190 371,190 371,190 371,190 371,190 371,190 371,190 294,168 



Page 1 of 2



CASE: C - Fully Integrated Plant 850 tpd Nameplate Capacity DATE: January 22, 2010 

Production of Tin Chloride, Indium Metal and Zinc Metal PROJECT NUMBER: 6526-03 




4.0 Taxes 


A) Income Before Tax: CDN 24,447,450 30,553,734 30,553,734 30,553,734 30,553,734 30,553,734 30,553,734 30,553,734 30,553,734 24,213,834 


C) Capital Cost Allowance CDN 21,965,651 16,561,915 9,095,639 1,629,362 0 0 0 0 0 0 90,128,610 Total CCA 

D) Accelerated Capital Cost Allowance CDN 1,915,297 13,303,192 20,769,468 4,888,086 0 0 0 0 0 0 




H) Federal Tax: CDN 0 0 0 3,137,823 3,938,450 3,938,450 3,938,450 3,938,450 3,938,450 3,160,718 

I) Provincial Tax: CDN 0 0 0 1,673,506 2,100,507 2,100,507 2,100,507 2,100,507 2,100,507 1,685,717 



A) Net Revenue for Mining Tax Before Allowance CDN 34,236,863 40,343,148 40,343,148 40,343,148 40,343,148 40,343,148 40,343,148 40,343,148 40,343,148 31,971,944 

B) Mining Tax Net Revenue Processing Allowance CDN 5,911,796 5,911,796 5,911,796 5,911,796 5,911,796 5,911,796 5,911,796 5,911,796 5,911,796 5,911,796 

C) Net Revenue for Mining Tax CDN 28,325,067 34,431,352 34,431,352 34,431,352 34,431,352 34,431,352 34,431,352 34,431,352 34,431,352 26,060,149 

D) Mining Tax on Net Revenue CDN 566,501 688,627 688,627 688,627 688,627 688,627 688,627 688,627 688,627 521,203 






J) Net Profit for Mining Tax CDN 100,000 100,000 100,000 15,280,228 22,654,818 22,654,818 22,654,818 22,654,818 22,654,818 16,482,343 

K) Mining Tax on Net Profit CDN 0 0 0 2,428,836 3,608,771 3,608,771 3,608,771 3,608,771 3,608,771 2,621,175 

L) Total Mining Tax CDN 566,501 688,627 688,627 3,117,464 4,297,398 4,297,398 4,297,398 4,297,398 4,297,398 3,142,378 


5.1 Cash Flow 0 0 0 -90,128,610 16,031,337 30,553,734 30,553,734 30,553,734 30,553,734 30,553,734 30,553,734 30,553,734 30,553,734 24,213,834 5,545,112 

5.2 Cumulative Cash Flow: 0 0 0 -90,128,610 -74,097,272 -43,543,538 -12,989,804 17,563,930 48,117,664 78,671,398 109,225,132 139,778,866 170,332,601 194,546,435 200,091,547 









6.1 Cash Flow 0 0 0 -90,128,610 15,464,836 29,865,107 29,865,107 22,624,941 20,217,379 20,217,379 20,217,379 20,217,379 20,217,379 16,225,022 5,545,112 

6.2 Cumulative Cash Flow: 0 0 0 -90,128,610 -74,663,774 -44,798,667 -14,933,560 7,691,382 27,908,761 48,126,139 68,343,518 88,560,897 108,778,276 125,003,297 130,548,409 








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NI 43-101 Independent Technical Report Mount ... - Adex Mining Inc.

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