New Afton, A Project Update - Kamloops Exploration Group
New Afton, A Project Update - Kamloops Exploration Group
New Afton, A Project Update - Kamloops Exploration Group
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A <strong>Project</strong> <strong>Update</strong> for the <strong>New</strong> <strong>Afton</strong> Mine<br />
Prepared for: 2012 KEG Conference<br />
Tuesday, April 3
5/22/2012<br />
Acknowledgements<br />
Eric Strom and his Team<br />
Technical Services Superintendent<br />
Bob Tolden and his Team<br />
Technical Services Superintendent<br />
Brian Bower<br />
Geologist – Blackwater, formerly <strong>New</strong> <strong>Afton</strong><br />
(but still NEWGOLD!)<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
2<br />
2
<strong>New</strong> <strong>Afton</strong> Location<br />
JUST 8 MILES WEST OF KAMLOOPS!<br />
5/22/2012 <strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation 3<br />
3
<strong>Project</strong> Overview – Isometric View<br />
5/22/2012<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
4<br />
4
1898<br />
Property History<br />
<strong>Project</strong> History<br />
• <strong>New</strong>gold - A history of accretive growth<br />
5/22/2012<br />
1951-1972 property undergoes a<br />
succession of owners:<br />
Another<br />
Sporadic<br />
succession<br />
Mining<br />
mining<br />
of<br />
in the area<br />
activity<br />
ownership:<br />
The<br />
2001 DEVELOPMENT<br />
1978 “<strong>Afton</strong>”<br />
study – 1997 released<br />
property Teck<br />
• Kennco continues 1970<br />
commences<br />
between<br />
in 1898<br />
1903<br />
organized OF (Kennecott) indicating<br />
Discovery hole for<br />
• Duvall takes THE control in NEW the<br />
1949<br />
• Graham-Bousquet underground and pit drilled 1927 Gold Mines<br />
• Quintana AFTON MINE!<br />
potential<br />
• Noranda<br />
• Canex Placer (Placer Dome)<br />
• <strong>New</strong> Jersey Zinc<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
5<br />
Today<br />
5
Company History<br />
Company History<br />
• June 2008 – Completed business combination of <strong>New</strong> Gold,<br />
Peak Gold and Metallica Resources - Peak and Cerro San<br />
Pedro<br />
• June 2009 – Completed business combination of <strong>New</strong> Gold<br />
and Western Goldfields - Mesquite property<br />
• June 2011 – Completed acquisition of Richfield Ventures -<br />
Blackwater<br />
• December 2011 – Completed acquisitions of Silver Quest<br />
Resources and Geo Minerals - Blackwater<br />
March 1, 2012 <strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation 6<br />
6
Operational Overview<br />
5/22/2012<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
7<br />
7
Operational Overview<br />
• 11,000 tonne per day underground block<br />
cave mine and flotation concentrator<br />
• Life-of-mine average annual production (1)<br />
– ~85,000 ounces gold<br />
– ~75 million pounds copper<br />
• ~4 months from mill start up<br />
• ~6 months to commercial production (2)<br />
Additional exploration potential!<br />
Notes: 1. Based on average of 11 full production years.<br />
2. Throughput of 60% of 11,000 tonnes per day or 6,600 tonnes per day.<br />
First muck off conveyor<br />
Loading blast holes<br />
Mill building<br />
5/22/2012 <strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation 9<br />
9
Workforce<br />
Site Personnel<br />
5/22/2012<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
13<br />
13
Production Start Strategy<br />
Tonnes per day<br />
15,000<br />
12,500<br />
10,000<br />
7,500<br />
5,000<br />
2,500<br />
-<br />
January March May July September November January March<br />
5/22/2012<br />
Mine Rate vs. Mill Rate During Production Start<br />
Mill reaches 11,000<br />
tpd<br />
Mill starts in June and reaches<br />
6,600 tpd commercial rate in<br />
August<br />
2012 2013<br />
Mine tpd Mill feed tpd<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
Period of drawdown<br />
of stockpile inventory<br />
Mining/milling rate<br />
reach 11,000 tpd runrate<br />
level<br />
16<br />
16
<strong>Project</strong> Present Mine Layout<br />
5/22/2012<br />
Current Cave<br />
Area<br />
Conveyor Drift<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
Access Decline<br />
18<br />
18
Mine Planning - Mine Design<br />
5/22/2012<br />
2<br />
1<br />
Undercutting<br />
Direction<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
EXTRACTION LEVEL<br />
20<br />
20
Mine Planning - Mine Design<br />
5/22/2012<br />
Viewing WSW<br />
1<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation 21<br />
2<br />
21
Geotechnical - Cave Management<br />
Seismic System<br />
Production<br />
Management<br />
5/22/2012<br />
Subsidence Monitoring<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
Direct Cave Measurement<br />
Convergence<br />
Monitoring<br />
24<br />
24
ng Wall Fault<br />
te<br />
ortal<br />
Geology at <strong>New</strong> <strong>Afton</strong><br />
Footwall Fault<br />
Phyllic Altered<br />
Pyrite Halo<br />
5/22/2012 <strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation 36<br />
<strong>Kamloops</strong> <strong>Group</strong>
Regional Setting of Alkalic Porhyry Deposits in BC<br />
5/22/2012 <strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation 37
Resources and Reserves<br />
Resources M&I<br />
COMODITY K-TONNES GRADE METAL<br />
GOLD 69.8 0.78 gpt 1,742 Koz<br />
SILVER 69.8 2.40 gpt 5,470 Koz<br />
COPPER 69.8 1.03% 1,546 Mlbs<br />
Reserves<br />
As Part of the Shown Resource Totals<br />
GOLD 47.9 0.64 gpt 986 Koz<br />
SILVER 47.9 2.00 gpt 3,080 Koz<br />
COPPER 47.9 0.90%<br />
954 Mlbs<br />
March 1, 2012 <strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation 41<br />
41
Regional Geologic Map<br />
<strong>New</strong> <strong>Afton</strong> Mine<br />
• Iron Mask<br />
Batholith<br />
• Picrite<br />
• <strong>Kamloops</strong> <strong>Group</strong><br />
5/22/2012<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
42<br />
42
Enrichment Zones - Ore Mineralogy<br />
• Supergene<br />
- Native Copper, Chalcocite, minor Bornite<br />
• Mesogene/ Transition Zone<br />
- Bornite, Chalcocite, Chalcopyrite, Tennantite<br />
• Hypogene<br />
- Chalcopyrite, Bornite<br />
• Gold and Silver associated with Copper Mineralization<br />
• Common Gangue Mineralogy<br />
- Pyrite, Epidote, Biotite, K-Spar, Albite, Calcite, Ankerite, Hematite,<br />
Magnetite, Chlorite, Amphibole, Kaolinite, Montmorillinite, Anhydrite<br />
5/22/2012 <strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation 43<br />
43
<strong>Afton</strong> Pit Geologic Map<br />
B<br />
A<br />
A’<br />
5/22/2012 <strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
44<br />
B’<br />
44
<strong>New</strong> <strong>Afton</strong> Cross Section A-A’<br />
5/22/2012<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation 45<br />
45
<strong>New</strong> <strong>Afton</strong> Long Section B-B’<br />
-Over $5M for 2012<br />
drilling<br />
-Total program is over<br />
$11M including 40 Km<br />
of drilling over 18<br />
months<br />
5/22/2012<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
46<br />
46
Questions??<br />
5/22/2012<br />
<strong>Kamloops</strong> <strong>Exploration</strong> <strong>Group</strong> Presentation<br />
47<br />
47
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