LOCATION OF THE BOLOT PROJECT

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THE BOLOT PROJECT
FEASIBILITY STUDY PRESENTATION
MACKAY SCHOOL OF MINES
RUSLAN B. MAMATKULOV
SPRING 2001
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LOCATION OF THE BOLOT PROJECT

• NEVADA
• LANDER COUNTY
• 20 mi. NORTH FROM AUSTIN
• ELEVATION 6,000ft
• BLM PROPERTY

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BOLOT PROJECT
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CLIMATE

• AVERAGE MAXIMUM 85F
• AVERAGE MINIMUM 20F
• AVERAGE TOTAL PRECIPITATION 13 in
• AVERAGE TOTAL SNOW FALL 58 in
• GEOLOGY
• ANDESITE
• SCHIST
• DIORITE
• ALUNITE
• QUARTZ

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SURPAC

• 190 EXPLORATION DRILL HOLES
• INVERSE DISTANCE SQUARED METHOD
• MAXIMUM SEARCH DISTANCE OF MAJOR AXIS 75ft
• MAXIMUM VERTICAL SEARCH DISTANCE 25ft
• MAX NUMBER OF INFORMING SAMPLES 15
• MIN NUMBER OF INFORMING SAMPLES 3
• BLOCK SIZE --- 100ft X 100ft X 20ft
• RESULTS
• TOTAL NUMBER OF BLOCKS 10,925
• 13 - 80ft HORIZONTAL LEVELS

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RESOURCES
Volume Tonnage
Report ------------------------------------------
-------------------------------------- Cutoff
grade Volume
Tons Grade (opt)
(ft3)
(opt) ----------------------------
--------------------------------------------------
-- 0.03-0.04 172,600,000
14,382,758 0.034 0.04-0.05
93,600,000 7,799,688
0.045 0.05-0.1
168,000,000 13,999,440
0.069 0.1-15.0 89,600,000
7,466,368 0.180

Grand Total 523,800,000
43,648,254 0.072

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OPEN PIT DESIGN

• BOTTOM OF THE PIT 5,210ft ELEVATION
• HIGHEST POINT 6,170ft ELEVATION
• WALL SLOPE 50
• RAMP 80ft WIDE WITH 10 GRADE
• MINING BENCHES 20ft HIGH
• 3,500ft LONG AND 2,500ft WIDE
• DILUTION 10
• CUT OFF 0.03oz/t
• MINABLE RESERVE 42.6 MILLION TONS
• STRIPPING RATIO 2.51

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PIT SHELL
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ORE BLOCKS IN THE PIT
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PLAN VIEW
CUTOFF GRADE OPT
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CUTOFF GRADE OPT
SECTION VIEW
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MINING

• 10 YEAR MINE LIFE
• 330 DAYS PER YEAR
• TWO 12 HOUR SHIFTS PER DAY
• 12 MILLION TONS OF WASTE EACH YEAR
• OR, 36,364 TONS PER DAY
• 4.8 MILLION TONS OF ORE EACH YEAR
• OR, 14,545 TONS PER DAY

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MINING RESERVES AFTER 10 DILUTION
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OPEN PIT MINING TECHNIQUES

• CONVENTIONAL
• DRILL
• BLAST
• LOAD
• HAUL

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DRILLING AND BLASTING

• TONNAGE BLASTED EACH DAY 50,900t
• HOLES PER DAY 120
• ANFO PER DAY 21,940lb
• BURDEN 15ft
• SPACING 17ft
• BENCH HEIGHT 20ft
• HOLE DEPTH 25ft
• STEMMING 11ft
• LOADED COLUMN 14ft
• SUBDRILL 5ft
• HOLE DIAMETER 6.75in

Drill Hole Cross Section
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LOADING AND HAULING
MATERIAL MINED 50,900 TONS/DAY
ORE MINED 14,600 TONS/DAY
WASTE MINED 36,300 TONS/DAY
CRUSHER 3/4 in
WASTE DUMP
LEACH PAD
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EQUIPMENT REQUIRED
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EMPLOYMENT

• 40 SALARIED PERSONNEL
• 52/54 HOURLY PERSONNEL PER CREW
• TOTAL 248/266 EMPLOYEES

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General Manager
Office Manager
Mine Superintendent
Senior Engineer
Maintenance Superintendent
Processing Superintendent
Environmental Engineer
Safety officer
Pit Foreman
Warehouse Foreman
Foreman
Shop Foreman
Environmental Technician
Safety Eng.
Security
Operating Crew
Operating Crew
Purchasing Agent
Clerk
Mine Engineer
Metallurgist
Geologist
Accounting
Human Resources
Surveyor
Laboratory Technician
Ore Control
Organization chart for Bolot Project.
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SALARIED PERSONNEL
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HOURLY PERSONNEL
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WASTE DUMP

• TOTAL WASTE TONNAGE 124.7 MILLION
• SWELL FACTOR 55
• FOOT PRINT 4,215ft2
• THREE 50ft LIFTS
• SLOPE ANGLE 38
• RECONTOURED SLOPE 31

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ORE PROCESSING

• ORE PER DAY 14,600tons
• PRIMARY CRUSHER 6in
• SECONDARY CRUSHER 3/4in
• LEACH PAD
• 46.8 MILLION TONS OF ORE
• RECOVERY 74
• FOOT PRINT 7 MILLION FT2
• SIX 25ft LIFTS
• SLOPE 11.5
• 45 DAY CYCLE
• 654,500 TONS PER CYCLE
• RECONTOURED SLOPE 13

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INFRASTRUCTURE

• SITE ROADS 3mi X 30ft, 2mi X 70ft
• POWER REQUIREMENT 425,000 kWh/day
• FRESH WATER REQUIREMENT 291gpm
• FACILITIES

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FACILITIES
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PRE-PRODUCTION SCHEDULE
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DEVELOPMENT COSTS
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CAPITAL COSTS
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OPERATING COST
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REVENUE
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LOAN CALCULATION
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ECONOMIC ANALYSIS

• OPERATING COST PER TON
• EQUIPMENT 1.64, 1.81
• BLASTING 0.46
• PROCESSING 1.26
• WAGES-HOURLY 1.98, 2.06
• WAGES-SALARIED 0.48
• REFINING 0.04
• PRESENT VALUE 10,837,000
• INTERNAL RATE OF RETURN 24
• CASH COST PER OUNCE 165

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SENSITIVITY ANALYSIS
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SUMMARY

• LOCATIONLANDER COUNTY, NEVADA
• PROJECTOPEN PIT GOLD MINE
• MINE LIFE.10 YEARS
• ANNUAL PRODUCTION....4.8 MILLION TONS OF ORE
• 
  283,500 OUNCES OF GOLD
• STRIPPING RATIO2.51
• PROCESSHEAP LEACHING
• RECOVERY74
• PROJECT COST.73.2 MILLION
• BANK LOAN.36.6 MILLION AT 6 OF
  INTEREST
• PRESENT VALUE.10.8 MILLION
• INTERNAL RATE OF RETURN..24
• CASH COST PER OUNCE165

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RECOMMENDATION

• REDUCE STRIPPING RATIO...STEEPER PIT SLOPE
• REQUIRES...MORE
  STUDY
• REDUCE CUTOFF GRADE..FROM 0.03 TO 0.01
• REQUIRES..INCREASE
  LEACH PAD AREA
• 
  CHANGE PRODUCTION SCHEDULE
• BUILD A MILL..HIGHER RECOVERY
• REQUIRES...MORE CAPITAL COST
• 
  MORE OPERATING COST
• 
  LESS LEACH PAD AREA

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Cash flow statement for Bolot Project (000s).
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Production Schedule, version A.