Update on Merger with Polymetals - Notice of Meeting
Update on Merger with Polymetals - Notice of Meeting
Update on Merger with Polymetals - Notice of Meeting
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BDO CORPORATE FINANCE (WA) PTY LTD<br />
<strong>Polymetals</strong> Mining Limited and Southern Cross Goldfields Limited<br />
Technical Specialist's Report<br />
Processing Circuit<br />
The key unit operati<strong>on</strong>s and equipment utilised for the processing facility are as follows:<br />
• Primary crushing using the existing track-mounted Terex-Pegs<strong>on</strong> jaw crusher relocated from<br />
Sandst<strong>on</strong>e.<br />
• Stacking c<strong>on</strong>veyors relocated from Sandst<strong>on</strong>e which allow stockpiling, or direct feeding the mill via a<br />
feed bin and apr<strong>on</strong> feeder.<br />
• Single stage milling in a proposed 4.27 m diameter SAG mill powered by a 1.25 MW motor. This mill<br />
will need to be sourced externally. Circuit classificati<strong>on</strong> using Warman 10" cycl<strong>on</strong>es sourced from<br />
Sandst<strong>on</strong>e.<br />
• Gravity gold recovery using a new Falc<strong>on</strong> gravity c<strong>on</strong>centrator. Recovery <strong>of</strong> gravity gold from<br />
c<strong>on</strong>centrate to be undertaken by intensive leaching in a new intensive leach reactor, and subsequent<br />
electrowinning in a new dedicated gravity cell.<br />
• CIL leaching using nine draft tube style mechanically agitated tanks in series. All tanks to be<br />
refurbished and relocated from Sandst<strong>on</strong>e. First tank to be leaching <strong>on</strong>ly and remaining eight tanks for<br />
leaching plus adsorpti<strong>on</strong> <strong>of</strong> gold to carb<strong>on</strong>.<br />
• Recovery <strong>of</strong> gold from carb<strong>on</strong> using an integral 1.5 t carb<strong>on</strong> capacity eluti<strong>on</strong> and electrowinning facility<br />
relocated from Sandst<strong>on</strong>e. Carb<strong>on</strong> reactivati<strong>on</strong> in a new horiz<strong>on</strong>tal diesel fired kiln.<br />
• Reagent mixing and distributi<strong>on</strong> systems, water systems, diesel storage all relocated from Sandst<strong>on</strong>e.<br />
4.1.8.4 Gold Recovery<br />
Based <strong>on</strong> an assessment <strong>of</strong> test work results <strong>of</strong> samples from ore sources treated in the first three years,<br />
AMC c<strong>on</strong>siders that the mean recovery will be approximately 1% lower than the predicted 95% as presented<br />
in the financial model. It is not possible to make predicti<strong>on</strong>s <strong>on</strong> the later years <strong>of</strong> the project <strong>with</strong>out additi<strong>on</strong>al<br />
test work <strong>on</strong> samples from these deposits.<br />
4.1.8.5 Plant Throughput<br />
Annual ore throughput in the financial model ramps up to 550 ktpa in the sec<strong>on</strong>d year <strong>of</strong> the project which is<br />
higher than the current plant design throughput <strong>of</strong> 480 ktpa as presented in the most recent engineering<br />
study. The design used a c<strong>on</strong>servative <strong>on</strong>-line utilisati<strong>on</strong> <strong>of</strong> 92% and AMC c<strong>on</strong>siders that there is potential to<br />
increase availability <strong>of</strong> the mill above this design figure after commissi<strong>on</strong>ing and ramp-up. There is<br />
insufficient comminuti<strong>on</strong> test informati<strong>on</strong> <strong>on</strong> ore types to be treated in the later years <strong>of</strong> the project to make a<br />
throughput predicti<strong>on</strong>.<br />
4.1.8.6 Capital Estimate Plant and Infrastructure<br />
Southern Cross has prepared a capital estimate for plant and infrastructure, based <strong>on</strong> informati<strong>on</strong> provided<br />
by independent technical specialists in November 2012. This estimate was prepared to an accuracy level <strong>of</strong><br />
±20% and included a 20% c<strong>on</strong>tingency. The Southern Cross capital estimate is presented in Table 4.4. The<br />
costs presented include the removal, refurbishment, relocati<strong>on</strong> and installati<strong>on</strong> <strong>of</strong> plant and equipment as<br />
well as infrastructure items including camp, roads and airstrip, buildings/work-shops, and water supply. A<br />
preliminary estimate for tailings storage requirements is also included.<br />
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