Review and Pit Optimization of Eti Gümüs Silver Mine in Turkey

(1)

Review and Pit Optimization of

Eti Gümüs Silver Mine in Turkey

(according to international standards)

Authors:

• Dirk Wagner

Senior Project Manager

IMC-Montan Consulting GmbH

Muhanned Arar GM Exploration and Development

Yildizlar SSS Holding

• Muhanned Arar GM Exploration and Development

Yildizlar SSS Holding

(2)

1. Introduction

2. Project

3. Base Parameters

4 Results

4. Results

5. Future

(3)

1. Introduction

2. Project

3. Base Parameters

4 Results

4. Results

5. Future

(4)

Introduction

• Eti Gümüs – largest silver producer in Turkey

• Preparation for IPO (Istanbul)

• International Mining Consultancy was required for preparation

g

y

q

p p

of a report following Canadian NI 43-101 / JORC Code

• Yildizholding selected IMC-Montan Consulting, a subsidiary of

DMT GmbH & Co. KG, member of TÜV-Nord Group

p

• Scope of Work: - Operational and Life of Mine Plan (LOM)

(5)

Introduction

YILDIZLAR

SSS

YILDIZLAR

SSS

HOLDING

A.S.

MINING GRUOP

CERAMIC/GRANITE

GROUP

ENERGY

ENERGY &PETROL

&PETROL

OTHER

SERVICE

ETI

GUMUS

A.S

ETI

GUMUS

A.S

..

SOGUTSEN

SERAMIK

A S

3S

ENERJI

A.S.

YSSS

ENTEGRE

YSSS

ENTEGRE

ORG TAR A S

A.S.

ORG.TAR.A.S.

YILDIZ

BAKIR

A.S.

YILDIZ

BAKIR

A.S.

GRANITO

GIRARTO

A.S.

GUMUS

PETROL

A.S.

3S

NAKLIYAT

A.S.

NESKO

MADEN

A.S.

NESKO

MADEN

A.S.

3S

MADENCILIK

A.S.

DEDELI

DOGALGAZ

A.S.

3S

SIGORTA

A.S.

RAS

İ

H

İ

HSAN

LTD.STI.

RAS

İ

H

İ

HSAN

LTD.STI.

DEDELI

ELEKTRIK

ENERJI

A.S.

ENERJI

A.S.

YILDIZLAR

SSS

PLAZA

YILDIZLAR

SSS

PLAZA

TURIZM

A.S.

TURIZM

A.S.

ZAMANTI

MADEN

ZAMANTI

MADEN

LTD.STI.

OSMANGAZI

ELEKTRIK

YILDIZLAR

YILDIZLAR LAB ANALIZ

LAB ANALIZ

DAGITIM

A.S.

DAGITIM

A.S.

YILDIZLAR

LAB.ANALIZ

HIZ.A.S.

YAVUZ

MUH.

A.S.

YAVUZ

MUH.

A.S.

SENA

YATIRIM

INS.A.S.

SENA

YATIRIM

INS.A.S.

DEDEL

İ

YATIRIM

A.S.

DEDEL

İ

YATIRIM

A.S.

_SILVER

_KORUMA

GUVENLIK

A.S.

(6)

Introduction

TÜV NORD Group (Germany)

100%

DMT GmbH & Co. KG (Germany)

IMC-Montan Consulting

GmbH

(Germany)

IMC Group Consulting Ltd.

(UK)

DMT Geosciences Ltd.

(Canada)

PT IDMT EEC

(Indonesia)

IMC-Montan JV

(Russia)

100%

50%

100%

74%

(Germany)

(UK)

(Canada)

(Russia)

(Indonesia)

51%

(7)

Introduction

TÜV NORD Group (Germany)

100%

DMT GmbH & Co. KG (Germany)

Planned in 2013/14

DMT-IMC Turkey

IMC-Montan Consulting

GmbH

(Germany)

IMC Group Consulting Ltd.

(UK)

DMT Geosciences Ltd.

(Canada)

PT IDMT EEC

(Indonesia)

IMC-Montan JV

(Russia)

100%

50%

100%

74%

(Germany)

(UK)

(Canada)

(Russia)

(Indonesia)

51%

(8)

The Parent Company …

DMT GmbH & Co. KG at a glance



130 Mio. € annual turnover (2012)



Approx. 660 employees



16 government approved expert bodies for safety



3 accredited testing laboratories



3 accredited testing laboratories

(9)

Services for the Mining Industry

deposit-modelling

mine planning

greenfield development

process design

p

g

assistance during

operation

(10)



Geology & Orebody Modelling

Scope of Services IMC



Geology & Orebody Modelling



Resource/Reserve Estimates compliant

to JORC or NI 43-101



Bankable Studies



Engineering Services

-

Mine Design

-

Process Design



Project Management Services



Environmental & Social Impact

Assessments



Rehabilitation of Mine Sites



Investors‘ Support

-

Due Diligence

Mineral Expert Report

-

Mineral Expert Report

-

Project Valuations



Management Assistance during

Operation

p

(11)

Geology & Resources (DMT-EG)

Services



Mapping

Software Expertise



SURPAC

DATAMINE



Exploration



Resource evaluation



Geological risk analyses



DATAMINE



VULCAN



SURFER



IRAP RMS



IRAP RMS



PETREL



MINEX



ROCKWORKS

Planning and supervision of



2D and 3D seismic surveys

G

l

t i

i

t

Geotechnical analysis of rocks o in ts Plane of division Birdview ed d in g p la n e S lic ke n sid e) o nd it io n . B ed d in g 2 . T h ic k n es s in e ra liz in g 0 External form Splitting strength RQLD . P ro p e rt ie s o f ro ck s Rockstrength d [ N/ mm² ] of parting



LYNX



Geoelectrics, gravimetry a.o.



Prospecting and drilling



Sampling and QC



Borehole geophysics

1076 m 160 0 160 Seam 24 1078m Fl. 24 K B 1074 m 1072 m 1070 m B 2 0 SH SP SP 12 77 4 . J o SP SH SP SH SP SP SP SP 80 6 8 10 12 Bedding Intersaction 4 . B e g b X O X O X O G O O O 30 40 85 (S 6 . C o 1 7 . M u gurre weB100 B 8 0 B 6 0 B 4 0 14,4 8,4 7,2 5,1 8,6 [ N / mm² ] 100 45 65 Diametral Axial 9,6 14,4 14,4 37,6 27,7 14,4 60,6 56,7 40,0 52,9 33,2 57,8 85,5 75 50 25 3 B 1 0 k oabgezrle [ N / mm² ] 6,9 z



Borehole geophysics

1080 m 1078 m SH 13 X G O O 45 60 4,1 90 75 21,8 21,8 27,7 56,1 50 2575100

(12)

Rock Mechanics



Geotechnical Assessments



Stabilisation of Mine Workings

g



Assessment of underground

excavations



Simulation and Testing of Roof

Support elements



Rock Burst Prevention

(13)



Extraction Technologies for Coal &

Extraction & Haulage



Extraction Technologies for Coal &

Ore



Layout and design of



Shovel & Truck



Long Wall



R&P



Bucket Wheel Mines



Life of Mine Plans



Layout and design of haulage

systems



Layout and Design of Backfilling

Plants

(14)

Mineral Processing



Processing Technologies



Coal



Iron Ore



Base Metals

L b

d Pil t Pl

t T

ti



Lab and Pilot Plant Testing



Simulation Software for

Processing



Flow Sheet Development



Design of Beneficiation Plants

(15)

Specialist Services



Underground Mine Ventilation



Coal Mine Methane & Utilisation



Mine Closure Planning

S b id

C

t l



Subsidence Control



Hydrogeology and Mine Water



Environmental Services



Environmental Services



Methane Inflow Forecast Calculation



Gas Outburst Prevention

(16)

Introduction – NI 43-101

Item 1:

Summary

Item 14: Mineral Resource Estimates

Item 2:

Introduction

Item 3:

Reliance on Other Experts

Item 4:

Property Description and

L

ti

Item 15: Mineral Reserve Estimates

Item 16: Mining Methods

Item 17: Recovery Methods

It

18 P j

t I f

t

Location

Item 5:

Accessibility, Climate, Local

Resources, Infrastructure and

Physiography

Item 18: Project Infrastructure

Item 19: Market Studies and Contracts

Item 20: Environmental Studies,

Permitting and Social or

Physiography

Item 6:

History

Item 7:

Geological Setting and

Mineralization

Permitting and Social or

Community Impact

Item 21: Capital and Operating Costs

Item 22: Economic Analysis

Mineralization

Item 8:

Deposit Types

Item 9:

Exploration

Item 10: Drilling

Item 22: Economic Analysis

Item 23: Adjacent Properties

Item 24: Other Relevant Data and

Information

Item 11: Sample Preparation,

Analyses and Security

Item 12: Data Verification

It

13 Mi

l P

i

d

Item 25: Interpretation and

Conclusions

Item 26: Recommendations

It

27 R f

Item 13: Mineral Processing and

Metallurgical Testing

(17)

1. Introduction

2. Project

3. Base Parameters

4 Results

4. Results

5. Future

(18)

(19)

Project – other key data

• Historical production up to 4 Mt/a

• Target: Stable production of 4.32 Mt/a

• Resource grade (measured and indicated): 128.6 g Ag/t and

0.68% Zn

(20)

(21)

(22)

(23)

1. Introduction

2. Project

3. Base Parameters

4 Results

4. Results

5. Future

(24)

Base Parameters

• First Time Pit Optimization for the Operation

Dataset not in the required format

Effort was required to collect and generate required

dataset

(25)

Base Parameters

Final compiled set of base parameters for Pit Optimization

Sil

P i

30 US$/

Silver Price

30 US$/oz

Waste Mining Cost

1.95 $/t

Ore Mining Cost

2.15 $/t

Processing and G&A Cost

21.5 $/t

Silver Recovery

52 %

Mining Dilution

g

5 %

Mining Losses

5 %

Overall Pit Slope

45 deg

(26)

1. Introduction

2. Project

3. Base Parameters

4 Results

4. Results

5. Future

(27)

(28)

Mine Development year 1

7 3 37 50 E 7 3 40 00 E 7 3 42 50 E 7 3 45 00 E 7 3 47 50 E 7 3 50 00 E 7 3 52 50 E 7 3 55 00 E 7 3 57 50 E 7 3 60 00 E 7 3 62 50 E 7 3 65 00 E 7 3 67 50 E 7 3 70 00 E 4373000 N 4373000 N

Year 1

4372000 N 4372000 N 4372500 N 4372500 N 4371000 N 4371000 N 4371500 N 4371500 N 4370000 N 4370000 N 4370500 N 4370500 N E E E E E E E E E E E E E E 4369000 N 4369000 N 4369500 N 4369500 N 7 3 37 50 7 3 40 00 7 3 42 50 7 3 45 00 7 3 47 50 7 3 50 00 7 3 52 50 7 3 55 00 7 3 57 50 7 3 60 00 7 3 62 50 7 3 65 00 7 3 67 50 7 3 70 00 4369000 N 4369000 N 0 100200300400500600700800900 1:20000

(29)

Mine Development year 2

Year 2

(30)

Mine Development year 3

Year 3

(31)

Mine Development year 4

Year 4

(32)

Mine Development year 5

Year 5

(33)

Mine Development year 6

Year 6

(34)

Mine Development year 7

Year 7

(35)

Mine Development year 8

Year 8

(36)

Mine Development year 9

Year 9

(37)

Mine Development year 10

Year 10

(38)

Mine Development year 11

Year 11

(39)

Mine Development year 12

Year 12

(40)

Mine Development year 13

Year 13

(41)

Mine Development year 14

Year 14

(42)

Price sensitivity of Gümüsköy pit optimization

Results

500

600

80.000

90.000

400

500

60.000

70.000 /t]

0 00 t]

200

300 30 000

40.000

50.000 Grade [g

Ag

/

Ore tonnage

[0

100

200

10.000

20.000

30.000

0

5

10

15

20

25

30

35

40

(43)

Results

Unit

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

O

P d ti

000 t

4 320

Production Schedule – optimized to receive constant head grade

Ore

Production

000 t

4,320

Ore

Grade

g/t

145

143

145

146

138

136

138 Waste

removal

000 t

4,468

3,762

4,017

3,892

3,528

3,335

3,527

2,832

4,084

4,299

Stripping

Ratio

t/t

1.03

0.87

0.93

0.90

0.82

0.77

0.82

0.66

0.95

1.00 Recovery

y

Ore

%

52

52 Recovered

Ag

kg

325,116

326,442

320,327

325,522

327,362

328,250

328,565

311,026

306,613

308,899

Unit

2023

2024

2025

2026

2027

2028

2029

2030

Total

Ore

Production

000 t

4,320

172 73,612

Ore

Grade

g/t

140

152

148

140

136

116

114

141 Waste

removal

000 t

3,661

3,634

7,371

8,125

7,517

6,141

17,457

745 92,396

Stripping

Ratio

t/t

0.85

0.84

1.71

1.88

1.74

1.42

4.04

4.33

1.26 Recovery Ore

%

52

52 Recovery

Ore

%

52

52 Recovered

Ag

kg

315,578

314,361

341,429

332,374

313,499

306,059

261,510

10,214

4,511,864

(44)

1. Introduction

2. Project

3. Base Parameters

4 Results

4. Results

5. Future

(45)

Future

• Operational and Life of Mine Plan (LOM) of Eti Gümüs based

on optimization results

• Reconciliation to improve the accuracy of the geological

model

• Establishing long/short-term mine plan and updating it

(46)

For more information, please contact

THANK YOU VERY MUCH FOR YOUR ATTENTION

IMC M

t

C

lti

G bH

Mi h

l L

Ul i h R

l

IMC-Montan Consulting GmbH

Am Technologiepark 1

45307 Essen / Germany

Michael Loos

Ulrich Ruppel

Technical Director

Mining Director

Tel. +49 201 172-1536

Tel. +49 201 172-1507

www.dmt.de

www.imcgcl.com

Fax +49 201 172-1727

michael.loos@dmt.de

ulrich.ruppel@dmt.de

Review and Pit Optimization of Eti Gümüs Silver Mine in Turkey