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What Discounted Cash Flow Analysis can do for you: ?Provide an accurate financial analysis of a project for the first 25 to 30 years of operations ?Identify cash flow requirements ?Identify relative sensitivity of the project to the various input parameters ?Place a value on the resource in place after 30 years of operations ?Correct for errors in input parameters

May 1, 2010

By George Meadows

Consultation and Accommodation Introductions Consultation -Best Practices The Role of Negotiations The HVC Experience Summary / Conclusions The Challenge Meeting legal and policy obligations to consult while adhering to project priorities, timelines and budgets Defining who needs to be consulted, by whom, and ?how much?? Accommodation ?who is responsible and what is the appropriate scope? Social License -establishing positive working relationships with First Nations involved in project review / approvals / implementation in a manner that advances the interests of all parties

May 1, 2010

By Kevin O?Callaghan

Applying Legal Concepts - The Crown must consult, and where necessary accommodate, when: - Crown has knowledge, real or constructive, of the potential existence of Aboriginal rights or title and contemplates conduct that might adversely affect it - Duty to consult is triggered at a low threshold - How much consultation necessary? - Proportional to the strength of claim and potential impact - Spectrum: notice to direct involvement in decision making - Not duty to agree or to get consent (no veto) - Reciprocal: Duty requires good faith and sincere engagement on both sides Role of Proponents: Crown may delegate procedural aspects of its legal duty

May 1, 2010

By H. Thalenhorst

For an advanced mineral exploration project that has a ?nugget? issue making the assessment of the deposit grade difficult, a bulk sampling program using a sample tower can provide information that is otherwise not obtainable prior to actual production. This information includes the verification of predicted resource grades for the bulk sample tonnage (and, indirectly, of the methods and parameters used for the grade estimate), confirmation of the physical and grade continuity of the mineralization, and geotechnical data for a future mining operation. The information gathered will improve the input of a feasibility study, particularly with respect to expected mining grades, which are the key economic parameter for most mining projects. The bulk sample rejects can be used for pilotscale metallurgical testwork. Bulk sampling is also useful in cases of potentially biased drill-hole assay results and in the reliable determination of ore grade before shipment of ore from production or development operations to an external beneficiation plant. This paper presents a practical bulk sampling and sample preparation protocol, lists design features for the sample tower, examines the sampling errors that will be encountered, provides information on quality control procedures, and looks at the costs and benefits of such a program, based on the experience of undertaking bulk sampling programs during the period of 1985 to 2008.

May 1, 2010

By Jess Harding

Oyu Tolgoi investment agreement now in full, legal effect Successful completion of a series of conditions to 2009 Investment Agreement was announced March 31, 2010. Full-scale construction now set to begin. First copper-gold commercial production from Oyu Tolgoi expected in 2013. 34% of holding company Oyu Tolgoi LL Cacquired by Erdenes MGL, a Mongolian state-owned resources company. Remaining 66% will continue to be owned by Ivanhoe Mines. ?After 9 years of discoveries at Oyu Tolgoi, a big piece of the future of copper and gold in Asia is poised to become a reality.?

May 1, 2010

By Roberto Busato Belger

- Fertilizer Business Overview - Supply -Demand Balance in the World - Supply -Demand Balance in Brazil - Brazilian Market Growth Opportunities - Fosfertil Operations - Fosfertil Expansion Plan - Salitre Project - Project Characteristics - Technical Challenges and Solutions - Technical Support Studies Conclusions

May 1, 2010

Some Statistics ? Feasibilitystudiescostbetween2% & 3% of capital andrequire8% to15% of total engineering effort ? Feasibilitystudiesusuallytakebetween8 and16 months ? Historically more than80% of projects fail to achieve all their objectives, usually blame the feasibility study ? What is bankable? Means that your promises will long be remembered. ? Poorly executed feasibility studies ? Driven by inexperience, unrealistic expectations, time constraints, financial constraints, lack of objectivity, front end loading activities incomplete or poorly done ? lack of minimum standard to provide a consistent approach Trend to improve???

May 1, 2010

By Ray Mason

Marathon PGM Corporation?s PGM-Cu Project in Northwestern Ontario (Figure 1.0) serves as a case study to describe the process involved in advancing a deposit from grass roots exploration to the completion of several feasibility studies and the parallel commencement of environmental permitting. Through the following examination of historical exploration activities, it is clear that these activities are directly related to economic stimulus, mostly measured by downturns in the mineral industry. Other factors that influence the success of exploration advancing to feasibility and new mine development includes the ownership of the mineral claims, which also changes under these economic influences and the crucial role of interactions between the Company, the Crown and First Nations. The Marathon PGM-Cu deposit is hosted within the Eastern Gabbro Series of the Proterozoic Coldwell Complex, which intrudes and bisects the much older Archean Schreiber-Hemlo Greenstone Belt. The sub-circular complex has a diameter of 25 km and a surface area of 580 km2 and is the largest alkaline intrusive complex in North America (Walker et al., 1993). Mineralization at the Marathon PGM-Cu deposit is part of a very large magmatic system that consists of at least three cross-cutting intrusive olivine gabbro units that comprise the Eastern Gabbro Series of the Coldwell Complex (Figure 3.2.4-3). In order of intrusion, the three gabbroic units consist of (1) Layered Gabbro Series, (2) Layered Magnetite Olivine Cumulate (LMOC) and (3) Two Duck Lake (TDL) Gabbro. The relative size and abundance of the gabbroic units decrease in the order Layered Gabbro Series>TDL Gabbro>>LMOC. Late quartz syenite and augite syenite dikes cut all of the gabbros but form a minor component of the intrusive assemblage.

May 1, 2010

By Michael Chender

Emerging Equity Sources ? Larger IPOs ? China Inc. ? Other sovereign wealth funds ? New funds and higher allocations ? Private equity

May 1, 2010

Overview ?G-9 Discovery Hole 420 drilled May 2005 ?14.16% Zn, 1.76% Cu ?Greenfield discovery built into the G-9 Mine in under 4 years. ?Utilized a unique ?Parallel Track? approach to fast-track mine development. ?Raised over $200million in financing without a Feasibility Study. ?Mine built for $149.7 million, only 20% over PEA. ?Commercial Production declared April 1, 2009. ?G-9 Mine has now completed the first year of commercial production on April 1, 2010. ?Initial cash costs per pound of zinc US$0.39/lb -US$0.45/lb range. ?Mill operating at over1,900 tpd in March 2010, well above design capacity (1,500tpd) only one year after starting commercial production. ?Balance Sheet -$167 million assets, $24 million long-term debt, $22 million cash. ?Restarted Exploration ?excellent initial results. ?Strategically positioning Farallon to grow to a mid-tier mining company.

May 1, 2010

By Phil Keele

Canadian Natural ??Business Approach Efficiency and Execution ?Drive to be the low cost producer ?Focus on exploitation ?Augment exploitation with strategic acquisitions ?Maintain Discipline and Strength while Delivering on the Defined Plan ?Maintain flexibility and control allocation of capital ?Strive for balance (asset portfolio) ?Maintain financial strength

May 1, 2010

By Jeff Stufsky

Debt Financing ?Broad Market Overview ? Recovering due to factors including: ? Increased trust in the system ? Enhanced capitalization of financial institutions ? The need to deploy capital for profit ? Competition: ? Investment-grade bond volumes increasing dramatically, and starting to pressure banks to compete with new capital ? Term Loan B financing from insurance companies and related institutions is returning, also pressuring banks to lend ? Local country financial institution capacity in Latin America has materially increased ? Results: ? Loan capacity increasing generally across instruments, regions, and sectors ? Financial institutions/banks starting again to seek yield as pricing competition heats up ? Tenors increasing with pricing coming down more slowly Underwriting is back in play

May 1, 2010

By Cesar H. Oboni

The development of specific risk-based methodologies to guide and prioritize clearing decisions in countries contaminated by Unexploded Ordnance and Land Mines (generically defined as Explosive Remnants of War: ERW) either at country-wide scale or road-network-scale was used in an unexpected way when a large mining company asked Riskope (www.riskope.com) to develop a multi-modal transportation network risk assessment plan, which included ocean going vessels, ports, wharves, railroad, trucking and other modes of transportation. What had been a first-in-the-world attempt in the humanitarian landmine clearing industry turned out to be extremely useful and equally innovative in the extractive corporate world. Instead of a country contaminated by man-made hazards such as Explosive Remnants of War (ERW) we were now dealing with a very complex multi-modal transportation system afflicted by all sorts of potential hazards from quakes to climate change, sabotage to labour strikes, and vulnerable infrastructures to potential energy crises. Interestingly enough the method developed to deal with ERW risk based clearing was also capable of solving the transportation risk evaluation problem, after necessary customization. This paper shows how ?out of the box? thinking and industry cross dissemination can bring significant evolution and a competitive edge even to unexpected areas of the world-wide mining industry. The results of the logistic system risk assessment shed new light on the management of the system, changed the way insurance coverage was purchased, and led to significant potential cost reductions in a period of global recession.

May 1, 2010

Owing to improvements in computer capacity, it is now possible to undertake fully coupled or partially coupled, three-dimensional (3D) hydromechanical Finite Element (FE) simulation of mines, including explicit representations of large numbers of discontinuities. The analysis requires fewer assumptions than uncoupled analysis or two-dimensional (2D) analysis, but may require a change in how hydrological data is collected. The way hydrological data is incorporated in stability assessment and the approach to uncertainty in hydrological information also requires discussion. The current procedures for this type of analysis are discussed, along with some practical difficulties and teachings from early applications. A work flow for integration of 3D hydromechanical modelling with pit planning and some considerations for the management of uncertain data are also proposed.

May 1, 2010

By Craig Ford

Inmet Mining is committed to implementing the highest corporate responsibility standards in its mining operations worldwide. Inmet is 100% owner of Minera Panama, a world-class copper project that is currently in the feasibility phase in north-central Panama. Panama has limited experience with modern mining, limited mining capacity, and the project context involves significant social, environmental and political complexity. The Project area is remote with recent in-migration of latino and indigenous people, informal and small-scale mining, local subsistence populations and considerable biodiversity value, coupled with a complex jurisdictional setting. In short, it is increasingly the kind of project mining companies are taking on because the easy projects have already been developed. With such challenging conditions, anticipating and managing social risks is critical to effective project management. To this end, between August 2007 and the third quarter of 2009 Inmet seconded Monkey Forest Consulting Ltd to the project to assist Minera Panama in building and implementing an effective, early phase external relations strategy. The team was also tasked to find and develop a locally based team that could sustain success through project development and into operations. Today?s presentation was created by Inmet and Monkey Forest and describes some of the lessons learned in implementing an effective early phase process for managing social issues.

May 1, 2010

By Dillon. Patricia

Business Growth ?Coal ?Targeting 30 million tonnes by 2013 compared to 19 million tonnes produced in 2009 ?Expanding Energy Business unit (Oil Sands) ?Copper -Strong growth potential for existing operations and development projects ?New gold strategy recently launched ?New markets for zinc Need to retain existing and attract new employees to support growth Engaged Employee ?Has a positive attitude towards the organization and its values ?Is a person who is fully involved in, and enthusiastic about, his or her work Engaged employees are more likely to stay with the organization.

May 1, 2010

By Ian Thomson

OBJECTIVES OF EXPLORATION ? Prove/Disprove presence of potentially economic mineralization ? Keep on budget ? Minimize negative environmental impacts ? Gain a ?Social License to Operate? (SLO) WHAT IS A ?SLO? ? Granted by the local community ? Intangible, informal, non-permanent ? Has to be earned and then maintained ? Defined as ? Ongoing Approval (BSR and AccountAbility) ? Ongoing Approval, broad social Acceptance (Joyce and Thomson) ? Ongoing Acceptance (Nelson, and many others) ?Expression of the quality of a ?relationship?

May 1, 2010

Mining Subscribes to Murphy?s Law Personal observations on the past ?Perfect, benign deposit mines can be screwed up-spills and concentrate handling issues ?Long term contamination and water management assessments inadequate ?The ?permitting mentality? and its effects on the application of proponent and regulator resources ?Reliance on simple principles but nature and chemistry is more complex

May 1, 2010

Agenda 1.Energy consumption and energy costs ?focus and failings 2.Energy efficiency methodologies, people and supporting tools 3.Energy cost saving case studies from three minerals processing plants 4.The operations team and the supporting role of Operations IT 5.Conclusion: Reducing energy consumption and energy costs There are many good Energy Efficiency Methodologies ?Energy and GHG Emissions, Management Guidance Document, The Mining Association of Canada ?Energy Savings Toolbox ?An Energy Audit Manual and Tool, Canadian Industry Program for Energy Conservation (CIPEC) ?Lean and Energy Toolkit, Achieving Process Excellence Using Less Energy, www.epa.gov/lean ?Energy Efficiency Opportunities Assessment Handbook, www.energyefficiencyopportunities.gov.au

May 1, 2010

In most mines using presplitting the final excavated wall shows a zone of damage just below the crest and well defined presplit half barrels. The crest damage (surface dilation) zone varies and is added to by subsequent adjacent perimeter blasting operations. Keeping the preconditioning to a minimum is possible using the methods described in this paper, developed on several diverse and geographically distant mining operations to control crest dilation and preconditioning by presplitting in advance - not just laterally but vertically in advance. The first documented case (Delbridge, Marton and McSweeney, 2004) in the development of the concept was undertaken at AngloGold Australia Pty Ltd's Sunrise Dam Gold Mine (SDGM), located beside Lake Carey, some 730 km northeast of Perth, Western Australia. The mine had been developed in a series of cutbacks to a depth of over 300 m and began underground mining during the latter stages of open cut operations. This mine is fairly unique in that it utilised a single pass vertical presplit which initially extended over three bench heights and after the failure mechanisms were understood, over four benches. The presplit drilling for the three stacked benches started on the floor of the second bench so that any dilation was confined to the surface one bench above the crest and modified perimeter blasting was then developed to curtail damage from blasting adjacent to the new crest. The second case is based on a South African coal mine in the Witbank Coal Measures, 140 km northeast of Johannesburg, Republic of South Africa (RSA). It was important that blasting for optimal wall stability and minimal scaling was developed in advance. A dragline is scheduled to excavate the #2 seam midburden which is the lowest of the economically viable coal seams in the five seam Witbank Coal Measures. Mining of the overburden, coal and partings above the dragline midburden pass are by excavator and truck and each mining layer is individually blasted. The results of presplitting the midburden through the overlying coal seams and partings have provided a presplit with no surface dilation of the midburden crest and ensures any subsequent crest loss is solely due to blasting adjacent to the vertical presplit. Typical of all coal mines in South Africa only vertical presplits are used. Wall control is most commonly delivered by presplit blasting and one common sight after the dust clears is a ridge of broken blocks along the presplit row, usually with a main crack running between the presplit blastholes and often parallel cracks either side of the perimeter line. The surface rock strata or block structures have been dilated by the venting gases and shock waves. Decoupled, fully coupled, single or double deck charges are used depending on a variety of factors, anecdotal practices and perceived benefits. Preconditioning of the crest rock by blasting from above may not be visible to the naked eye (or non-existent in overburden in strip coal mines) but the high speed venting of explosives gases (and often the water in the presplits) preferentially follow existing cracks and structures because there is no developed presplit crack near the surface. This nearly always lifts, shifts and separates the surface structures and geological layers. Stopping the dilation by 'sacrificial' or 'in advance' presplitting has been shown to reduce the crest loss at both metal and coal mines. Drilling and presplit blasting through an upper level of bench or layer provides a degree of restraint to the target layer where the crest must be maintained and any damage caused by the venting gases will not cause concern as it is removed as planned, leaving a stable crest.

May 1, 2010