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Pulacayo Project Feasibility Study - Apogee Silver

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<strong>Pulacayo</strong> 1 000 t/d Phase I <strong>Feasibility</strong> <strong>Study</strong> - NI 43-101 Technical Report<br />

090644-3-0000-20-IFI-100<br />

validation are required. The “name-plate” capacity of the designed processing facility is<br />

1,000 t/d.<br />

25.1.6 Environmental and Permitting<br />

The development of the <strong>Pulacayo</strong> <strong>Project</strong> poses certain significant challenges with respect to<br />

environmental management, including passive contamination from previous activities. This<br />

issue is covered in the environmental Baseline <strong>Study</strong>. The Environmental Impact <strong>Study</strong> (EIA)<br />

was filed and submitted to government entities for review, categorization and approval in<br />

January 2013. This study includes the outcome of a public consultation meeting held in<br />

December 2012 with the representatives of communities within the area of influence of the<br />

project. The result of this meeting was positive.<br />

The environmental practices described in the current Environmental Impact <strong>Study</strong> will be<br />

implemented in the project, whilst the permit extension process continues. The communities<br />

will participate in these activities in order to create awareness. While this in progress,<br />

<strong>Apogee</strong> would continue with further engineering and procurement activities.<br />

<strong>Apogee</strong> has land tenure, surface rights agreements, permits for water supply and discharge<br />

and exploration permits, required to carry out exploration activities including the<br />

development of an exploration access drive.<br />

25.1.7 Water Management<br />

The main supply of water in the region is the Yanapollera reservoir. The Yanapollera<br />

reservoir stores water from the snowmelt, run-off and ground water springs in the upstream<br />

Cosuño nevado (snow-capped mountain peak) and distributes the water to local users. At<br />

present, the reservoir has three users: A mining cooperative located in the <strong>Pulacayo</strong> town,<br />

the <strong>Pulacayo</strong> population and the town of Uyuni. The actual water demand of these users<br />

from Yanapollera is still somewhat uncertain, and their water demands are supplemented by<br />

ground water and other sources.<br />

The hydrologic model evaluated the likelihood of a water deficit over the Life of Mine. This<br />

model included a sensitivity analyses on input parameters, to account for the lack of longterm<br />

site data normally recommended for model validation. The results of this work indicate<br />

that the Yanapollera reservoir alone should not be relied upon for process and potable water<br />

related to mine operation, as this would leave a statistically significant chance of a water<br />

deficit during the Life of Mine. This probability can be reduced or eliminated by constructing<br />

a water storage reservoir, and/or by supplementing the water supply with ground water<br />

sources. Investigation and design of the aforementioned items is currently underway.<br />

The spring and summer months will see demand for water to suppress dust as well as to<br />

wash plant and other mine equipment. The bulk of such water should come from clean water<br />

run-off captured by drains located around the periphery of site.<br />

25.1.8 Infrastructure<br />

The 115 kV power line is one of the first activities to be developed, as the electrical<br />

equipment involved are considered long-lead items. Power line procurement and<br />

construction can take as much time as needed for the plant construction itself.<br />

TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473<br />

Page 290

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