Pulacayo Project Feasibility Study - Apogee Silver

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Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report 090644-3-0000-20-IFI-100 Weighbridge Central Offices Laydown Area Workshop Warehouse Oil Storage Gas Storage Paint Storage Nuclear Source Store Diesel Storage Potable Water Plant Main Site Fence Laboratory Laundry Change house 18.4.4 Mine Infrastructure and Ancillary Buildings Magazine Warehouse Yard Storage Truck Wash Truck Fuel Storage and Fueling Station Tire Change Station At the end of the operating life of the processing plant, with the exception of those components to be utilized in the post-closure water treatment system, the plant would be decommissioned and demolished. A small amount of infrastructure would be left in place for post-closure use, including conversion of portions of the plant for water treatment. The main power line and ancillary equipment utilized during operations would be removed and the cable salvaged. Once the off-site man camp is no longer required, the camp would be converted to an alternative beneficial use by a future custodian or local community representative. 18.5 Water Storage and Distribution Klohn Crippen Berger (KCB) was requested to develop the Surface Water Feasibility Assessment for Pulacayo Project. KCB visited the site in May 2012. Fundacion Medmin, a Bolivian consulting TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473 Page 187
Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report 090644-3-0000-20-IFI-100 company was appointed to supply data collection to KCB. TWP Sudamerica delivered the water balance to be considered in modeling the water supply. KCB conclusions are as follows: Water balance calculations indicate that while the Yanapollera reservoir should be able to satisfy demands of the mine in addition to users from Pulacayo and Uyuni under average conditions, the extreme climatic conditions of the region result in a statistically significant likelihood that the mine will experience water deficits during the projected 12-year mine life. Seasonal variation inflows combined with the limited storage capacity of this reservoir is a significant contributor to this potential lack of water – the reservoir exhibits a significant annual surplus which is largely discharged either in Pulacayo or downstream of the impoundment. Constructing additional water storage and supplementing mine water supply with groundwater is expected to significantly improve water security. Sensitivity analyses indicate that the results presented in this report are sensitive to a number of variables; most notably the water demand of Uyuni and Pulacayo and the behavior of groundwater springs in the wetlands upstream of Yanapollera. Further calibration of data inputs and validation of model outputs is required for reliable model predictions. Due to the variability of climate conditions and the inherent uncertainties of this predictive analysis, KCB recommends that an integrated system including groundwater supply and water storage be considered to reduce the chance of temporary mine shutdown due to water shortage. KCB recommends that a groundwater supply investigation be undertaken, in addition to on-going monitoring of site surface water flows and local and regional climate data, in order to improve the level of confidence of subsequent water supply analyses. Apogee requested KCB to develop two complementary studies to reinforce water supply: Design of reservoir to increase water storage capacity, and a Shallow Groundwater Supply Investigation. Both, at the time of writing this report are being developed. The intention to develop these two studies is to address the best option suggested by the consultant which is a combined one, increasing water storage capacity and sourcing from somewhere other than the Yanapollera reservoir. 18.5.1 Surface Water Management Surface water runoff that has not come into contact with tailings (“non-contact” water) shall be captured by perimeter diversion channels and routed around the dry stack to discharge to the natural drainage down gradient of the facility. Efforts should be made to minimize water run-on to the TSF. Since the TSF footprint will increase over the operations lifetime, construction of temporary diversion channels for different expansion phases of the TSF will be required. A fresh-water pipeline will deliver the water to the project Raw Water/Fire Water Tank, located at the Project site at an elevation of approximately 4,500 m. Any water in excess of the plant raw water requirements would be directed to the Process Water Tank located adjacent to the process facilities. 18.5.2 Firewater Distribution A fresh water pipeline will deliver fresh water by gravity for firefighting services. Individual hand-held fire extinguishers will also be located throughout the offices and work areas. TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473 Page 188
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Pulacayo Project Feasibility Study - Apogee Silver

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