Bird in Hand Gold Project - Update Draft Mining Lease Proposal - PowerPoint PPT Presentation

Bird in Hand Gold Project - Update  Draft Mining Lease Proposal provided to the Government on 20 th December 2017  Checks against Mining Act, and regulatory requirements (Ministerial Determination)  Discussions continue on aspects of the project with CCC, landholders, local community and government  Things likely to change up to formal lodgement  When content is settled for the final MLP, we are planning to share the contents with the CCC  This ensures that the MLA captures and responds to the issues raised through the community and stakeholder engagement process.  Formal lodgement still planned for April 2018, subject to regulator feedback and MAR testwork TERRAMIN AUSTRALIA LIMITED SLIDE No. 1

Bird in Hand Gold Project - Update  Managed Aquifer Recharge trial  Discussion with Department of Environment, Water and Natural Resources (DEWNR) and Department of the Premier and Cabinet (Minerals) – awaiting feedback  2 - 4 reinjection wells and paired monitoring piezometers proposed  No feedback received on proposed trial as yet TERRAMIN AUSTRALIA LIMITED SLIDE No. 2

Bird in Hand Gold Project - Update  EPBC Act Referral – Caladenia rigida  Optional – Company chose to refer Project  Meeting in Canberra last year advised potentially not necessary based on outline of Project  Lodged in October 2017 to ensure managing potential impacts appropriately  Can be downloaded from EPBC Act website for viewing  Awaiting feedback or decision from Federal Government TERRAMIN AUSTRALIA LIMITED SLIDE No. 3

Bird in Hand Gold Project - Update  Corporate Reorganisation  Announced to ASX on 11 th January 2018  CEO to transform into executive management of Australian projects and exploration activities  Overall responsibility for Terramin’s corporate and finance functions  More resources for Bird in Hand Gold Project TERRAMIN AUSTRALIA LIMITED SLIDE No. 4

Noise – Examples of Noise Abatement Angas Zinc Mine  Angas Zinc Mine – Underground and processing – Strathalbyn  Landscape bunding / noise shielding  Infrastructure placed below ground level  Ventilation fan underground  Activities limited during night – no road trucking or crushing between 10pm- 7am  At night included – conveyor running, water treatment, ventilation, underground trucks  Limits which reflected EPA noise policy “rural industry” – 57 dB(A) day / 50 dB(A) night  Leading indicator 47 dB(A) day / 40 dB(A) night  Model recalibrated in 2012 against real data  Monitoring then undertaken at points and compared to model – Model verified  All complaints investigated and additional management undertaken if required TERRAMIN AUSTRALIA LIMITED SLIDE No. 5

Noise – Examples of Noise Abatement Angas Zinc Mine TERRAMIN AUSTRALIA LIMITED SLIDE No. 6

Noise – Examples of Noise Abatement Waihi Gold Mine NZ  Waihi Gold Mine – New Zealand (open cut, underground + processing) – NZ TERRAMIN AUSTRALIA LIMITED SLIDE No. 7

Noise – Examples of Noise Abatement Waihi Gold Mine NZ  Waihi Gold Mine  Town of approx. 5000 – horticulture and dairy farming region  2004: Underground commenced – 37km of drives, 360m deep  Employs 400  Includes ore brought to surface, crushed, 2.7km conveyor, and processing plant  Construction noise limit – 75 dB(A)  Operating noise limit – 55 dB(A) day / 40 dB(A) night  Methods – equipment selection and maintenance – construction and planting of noise bunds – cladding to reduce conveyor noise – limiting the height of stockpiles – acoustic cladding around potentially noisy machinery – closed board fencing – acoustic noise wall on some sections of perimeter noise bund. TERRAMIN AUSTRALIA LIMITED SLIDE No. 8

TERRAMIN AUSTRALIA LIMITED Blasting and Vibration

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Project Cycle  After grouting cycle  Drill  Blast/Charge  Remove “bog/muck”  Insert ground support  Map geology  Check groundwater  Backfill TERRAMIN AUSTRALIA LIMITED SLIDE No. 11

Explosive pattern  Twin boom drills on articulated carrier – Jumbo  ~60 holes per face  2.5m – 3.5m depth  45mm diameter  Twice over 24 hours  less than 30 seconds/day TERRAMIN AUSTRALIA LIMITED SLIDE No. 12

Explosive pattern  Twin boom drills on articulated carrier – Jumbo  ~60 holes per face  2.5m – 3.5m depth  45mm diameter  Twice over 24 hours  Total blasting  less than 30 seconds/day TERRAMIN AUSTRALIA LIMITED SLIDE No. 13

Vibration and Air overpressure  When explosives detonate in rock, most of the energy is used in breaking and displacing the rockmass.  However, some of energy is released in the form of ground vibration and air-overpressure.  A soundwave from blasting is generated below the threshold of human hearing.  We cannot hear it but we can feel it. TERRAMIN AUSTRALIA LIMITED SLIDE No. 14

Proposed Project Outcome No public nuisance impacts from air- overpressure and vibration caused by blasting Proposal addition: “from the mining operation”. TERRAMIN AUSTRALIA LIMITED SLIDE No. 15

Blasting Mitigation Ground Vibration Air Overpressure Process of charging • Explosive quantity • Explosive quantity • Explosive type • Explosive type • Initiation timing • Degree of Confinement • Burden to free face – Rock and space between – Uncharged drillhole length explosive drillholes • Number of holes • Initiation timing TERRAMIN AUSTRALIA LIMITED SLIDE No. 16

Vibration - Context Terramin commitment AS 2670.2 – 1990 TERRAMIN AUSTRALIA LIMITED SLIDE No. 17

Air Overpressure  Background air-overpressure is currently peaking over 110-120 dBL  Data collected remotely by Saros (independent expert consultants in 140.00 blasting) 731 instances above 115 dBL = 0.58% 212 instances above 120 dBL = 0.17% 130.00 120.00 dBL 110.00 100.00 90.00 80.00 22/09/2017 2/10/2017 12/10/2017 22/10/2017 1/11/2017 11/11/2017 21/11/2017 1/12/2017 11/12/2017 21/12/2017 31/12/2017 Quarter 4: 2017 dB(L) Compliance Proposed for 95% of blasts Compliance Proposed for absolute upper limit TERRAMIN AUSTRALIA LIMITED SLIDE No. 18

Compliance Requirements Australian blasting compliance limits AS 2670.2 – 1990 are amongst the most stringent in the world. Both ground vibration and air overpressure limits are based on human comfort criteria Terramin commits to:  Ground Vibration – Not to exceed 5mm/second for 95% of occasions, with an upper limit of 10mm/s  Air Overpressure – Not to exceed 115dBL for 95% of occasions, with an upper limit of 120dBL  Currently occurring 0.58% of the time.  At compliance limit (95% of the time), this increases to 0.61% for early tunnel development  No overpressure expected once  300 m into tunnel TERRAMIN AUSTRALIA LIMITED SLIDE No. 19

Underground Development 0.5 1 2 5 10 TERRAMIN AUSTRALIA LIMITED SLIDE No. 20

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0.5 1 TERRAMIN AUSTRALIA LIMITED SLIDE No. 22

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Managed Aquifer Recharge - Update  Met with DEWNR (Water Dept.) and DPC (Mining Dept.) in December  Waiting on feedback as to what testwork would be suitable to meet expectations  Trial will inform final design of Managed Aquifer Recharge network for operations  Trial will be between 2 and 4 reinjection wells and monitoring piezometers TERRAMIN AUSTRALIA LIMITED SLIDE No. 26

Reinjection and Water Treatment Process TERRAMIN AUSTRALIA LIMITED SLIDE No. 27

Reinjection and Water Treatment Process TERRAMIN AUSTRALIA LIMITED SLIDE No. 28

Credible Worst Case Scenario Inflows How was it built?  Using the credible worst case scenario of a 70% effective grouting regime  A maximum peak inflow of 24l/s  The underground dewatering system has been designed on this plus an additional 14l/s.  The additional 14l/s came from doubling of aquifer transmissivity of the Tapley Hill formation (additional 7 l/s) and doubling of the vertical and horizontal conductivity of the hanging wall fracture zone (additional 7 l/s)  This equates to a total inflow of 38l/s, rounded to 40l/s for ease of design. TERRAMIN AUSTRALIA LIMITED SLIDE No. 29