KAZCOPPER

Open Pit Design and Scheduling Study for Benkala Deposit

May 2011
KAZCOPPER
Open Pit Design and Scheduling Study for Benkala
Deposit

CONTENTS

1 WAI PIT OPTIMISATION ............................................................................................................ 1

1.1 Introduction ....................................................................................................................... 1
1.2 Pit Optimisation Parameters .............................................................................................. 1
1.3 Pit Optimisation Results ..................................................................................................... 2
2 WAI PIT DESIGN AND PIT CONTENT .......................................................................................... 4
3 LIFE OF MINE SCHEDULE (LOM)................................................................................................. 8

TABLES

Table 1.1: WAI Pit Optimisation Parameters ...................................................................................... 2

Table 1.2 Benkala Deposit Open Pit Optimisation Results .................................................................. 3
Table 2.1 Open Pit Design Criteria ..................................................................................................... 4
Table 2.2 Open Pit Parameters .......................................................................................................... 4
Table 2.3: Summary of the Designed Open Pit Ore Reserves.............................................................. 6
Table 2.4: Summary of the Designed Open Pit Content...................................................................... 7
Table 3.1: Benkala Deposit LOM Mining Schedule.............................................................................. 9

FIGURES

Figure 1.1: 3D View of Base Case Optimised Pit ................................................................................. 3

Figure 2.1: Designed Pit Plan View..................................................................................................... 5
Figure 2.2: 3D View of the Designed Pit ............................................................................................. 6
Figure 3.1: Plan View of WAI Pit....................................................................................................... 10
Figure 3.2: Long Section (Section S-N) of the Scheduled Pit.............................................................. 11
Figure 3.3: Cross-Section (Section E-W) of the Scheduled Pit ........................................................... 11

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May 2011
KAZCOPPER
Open Pit Design and Scheduling Study for Benkala
Deposit

1 WAI PIT OPTIMISATION

1.1 Introduction

As a continuation of Mineral Resource modelling of the Benkala deposit, WAI has

undertaken a pit optimisation using the Mineral Resource Block Model prepared by WAI and
updated in late 2010. The model was depleted to contain only those Mineral Resources
which have not been extracted as of 01.03.2011. WAI used NPV Scheduler software for the
optimisation, applying financial and technical parameters, provided by the Client and
applying general knowledge on mining in this area of Kazakhstan.

The NPV Scheduler programme comprises three components, the ultimate pit shell
generator, a push back generator and the optimising scheduler. The ultimate pit generator
is the first stage of the optimisation process and utilises a Lerchs-Grossman algorithm to
generate an economic open pit shell from the Mineral Resource block model based on the
initial input parameters.

The initial objective of this study was to obtain an optimised pit shell containing
economically viable Mineral Resources, which will form a basis for subsequent open pit mine
design. The Ore Reserve statement will be derived from the mine design applying modifying
factors. The pitshell generated through the design will then be used for the mining
scheduling.

1.2 Pit Optimisation Parameters

The base case metal price used for the pit optimisation was US$6,000/t Cu. The major Key
Performance Indicators (KPI) such as mining and processing costs, and other parameters,
considered during the optimisation, have been provided by the Client and reviewed by WAI.
A summary of the optimisation parameters is shown in Table 1.1.

One of the most crucial geotechnical parameters is the overall pit slope angle. The shallower
the overall slope angle, the more waste cells that are included in the pit design. This has a
great effect on the stripping ratio and hence economic viability.

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Open Pit Design and Scheduling Study for Benkala
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Table 1.1: WAI Pit Optimisation Parameters

Parameter Unit Qty.
Cu price US$/t 6,000
Sales US$/t (of metal) 75
Annual Production Rate t Cu 18,000
Annual Discount Factor % 12
Ore Mining cost US$/t (of ore) 0.50
Ore Mining cost adjustment US$/t per 10m bench 0.005
Mining dilution % 4
Mining losses % 4
Waste Mining cost US$/t (of Waste) 0.48
Waste Mining cost adjustment US$/t per 10m bench 0.005
Crushing, Agglomeration, Stacking and leaching US$/t (of ore) 6.30
Processing Cost (SX/EW) US$/t (of metal) 910.00
Metal Recovery % 63
General and Administration Costs US$/t metal 300.00
Overall Slope Angle Degrees 48

WAI was provided with a geotechnical study report produced by Stavrolit LLP. Based on
the information present in the report an overall pit slope angle of 48o was used for the
optimisation and design. It should be noted that WAI was not in a position to review the
report as well as the supporting studies.

Due to lack of metallurgical testwork on primary ores, this type of material was excluded
from optimisation and pit design.

Additional optimisation runs have been performed with Inferred resources enabled and
using a high Cu price (9,000 US$/t) in order to assess the projects exploration potential and
to use the extended pit limits as a guide for surface infrastructure location.

1.3 Pit Optimisation Results

The results of the WAI optimisation as calculated by NPV Scheduler are presented in Table
1.2 below. The Base case optimised pit shell 3D image is shown in Figure 1.1.

Only the Measured and Indicated Mineral Resources were utilised in the optimisation as this
is the only categories of Mineral Resources which can transferred to Ore Reserves and
included into mine production schedule.

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Table 1.2 Benkala Deposit Open Pit Optimisation Results

Case Waste (kt) Ore (kt) Cu % Stripping Ratio
Base Case 72,685 31,942 0.54 2.28
Inferred Enabled 2,243,749 366,380 0.43 6.12
Note: In-Situ tonnages are reported. No mining dilution and losses applied. No berms or in-pit road designed during the
optimisation.

Figure 1.1: 3D View of Base Case Optimised Pit

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Open Pit Design and Scheduling Study for Benkala
Deposit

2 WAI PIT DESIGN AND PIT CONTENT

Based on the open pit optimisation, WAI has carried out a pit design for Benkala. The main
pit design parameters are given in Table 2.1 below.

Table 2.1 Open Pit Design Criteria

Parameter Unit Value
Berm width m 8
Berm interval benches 2
Bench height m 10
Face angle Degrees 61
Road width (single track) m 10
Road width (double track) m 15 and 18
Road gradient % 10

A number of trial pit designs have been performed in order to optimise ore tonnages and
stripping ratio. The resulting pit design details are given in Table 2.2, a plan view is shown in
Figure 2.1, whilst a 3D view is shown in Figure 2.2 below.

Table 2.2 Open Pit Parameters

Parameter Unit Value
Bottom Elevation m 120
Surface Elevation m 270-280
Surface Width (West-East) m 900
Surface Length (South-North) m 1850
Overal Slope angle Degrees 40-48
Road width (single track) m 10
Road width (double track) m 15 and 18
Maximum Haulage Distance
km 1.7
(bottom to surface)
Pit exit coordinates (Final pit)
Ore Haulage:
X 13,735
Y 77,675
Z 275
Waste Haulage:
X 14,460
Y 77,915
Z 275

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Open Pit Design and Scheduling Study for Benkala
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Figure 2.1: Designed Pit Plan View

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Figure 2.2: 3D View of the Designed Pit

After the pit has was designed, an evaluation of the pit reserve was been performed (Table
2.3), with details of the ore to waste ratio shown in Table 2.4.

Table 2.3: Summary of the Designed Open Pit Ore Reserves

Unit Value
Proven Ore (Secondary only) kt 4,901
Proven Ore Cu % 0.60
Proven Ore Cu Content t 29,495
Probable (Secondary only) kt 25,605
Probable Ore Cu % 0.51
Probable Ore Cu Content t 129,658
Total Ore (Proven and Probable) kt 30,506
Total Ore (Proven and Probable) Grade % 0.52
Total Ore (Proven and Probable) Cu t 159,153
Notes:
Cut-off of 0.176%Cu applied.
Mining Losses of 4% and dilution of 4% applied.
Waste includes all of the inferred material at ore grades.
Due to lack of metallurgical testwork on primary ores, this type of material was excluded from optimisation and pit
design. Any primary material within the pit contour was treated as waste.

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Open Pit Design and Scheduling Study for Benkala
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Table 2.4: Summary of the Designed Open Pit Content

Total
Rock kt 102,473
Waste kt 71,967
Stripping Ratio 2.36
Total Ore (Proven and Probable) kt 30,506

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Open Pit Design and Scheduling Study for Benkala
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3 LIFE OF MINE SCHEDULE (LOM)

WAI has generated a mining schedule for the designed open pit. The schedule is targeting
full operational capacity of the processing facilities (18,000t Cu per annum) to be met, with
appropriate ramp-up in production during the first two years 3,500t Cu in first year and
9,000t Cu in the second.

The schedule considers a requirement for stripping works at the initial stage of mining and
maintains consistent annual rock tonnages through the life of mine. The overall project
timeframe is likely to be increased considering the availability of primary ores, which
potentially could be treated at the same processing facilities. Table 3.1 below describes the
mining schedule for the designed open pit.

The designed open pit plan, long-section and cross-section are given in Figure 3.1, Figure 3.2
and Figure 3.3 below respectively. All of the pictures are colour-coded by extraction
sequence.

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Open Pit Design and Scheduling Study for Benkala Deposit

Table 3.1: Benkala Deposit LOM Mining Schedule

Year 1 2 3 4 5 6 7 Total
Rock kt 6,070 12,112 13,707 17,203 17,455 17,768 18,158 102,473
Waste kt 5,469 10,390 9,622 12,017 11,611 11,345 11,513 71,967
Strip 9.10 6.04 2.36 2.32 1.99 1.77 1.73 2.36
Total Ore kt 601 1,722 4,085 5,186 5,844 6,423 6,645 30,506
Total Ore Grade % 0.91 0.83 0.70 0.55 0.49 0.44 0.38 0.52
Total Ore Cu t 5,464 14,309 28,551 28,558 28,548 28,581 25,141 159,153
Proven kt 183 565 979 820 1,149 453 751 4,901
Proven % 0.94 0.92 0.76 0.58 0.52 0.41 0.34 0.60
Proven-CU_OK t 1,721 5,192 7,472 4,734 5,955 1,862 2,558 29,495
Probable kt 418 1,156 3,105 4,365 4,695 5,970 5,895 25,605
Probable % 0.90 0.79 0.68 0.55 0.48 0.45 0.38 0.51
Probable-CU_OK t 3,743 9,117 21,080 23,824 22,593 26,719 22,583 129,658
Processing Recovery % 63% 63% 63% 63% 63% 63% 63% 63%
Proven-CU_OK R t 1,084 3,271 4,707 2,982 3,752 1,173 1,612 18,582
Probable-CU_OK R t 2,358 5,744 13,280 15,009 14,233 16,833 14,227 81,684
Cu Metal R t 3,443 9,015 17,987 17,992 17,985 18,006 15,839 100,266

Note:

1) Ore Cut Off of 0.176% Cu applied

2) Waste includes all of inferred material at ore grades

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Open Pit Design and Scheduling Study for Benkala
Deposit

Figure 3.1: Plan View of WAI Pit

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Open Pit Design and Scheduling Study for Benkala
Deposit

Figure 3.2: Long Section (Section S-N) of the Scheduled Pit

Figure 3.3: Cross-Section (Section E-W) of the Scheduled Pit

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KAZCOPPER
Open Pit Design and Scheduling Study for Benkala
Deposit

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