Slide 1: Copper Hill Mine Site Feasibility 2010
For personal use only COPPER HILL Mine Site Feasibility 2010 Kim Stanton-Cook Managing Director June 23, 2010
Slide 2: Disclaimer and Competent Person Statement
For personal use only DISCLAIMER This material contains certain forecasts and forward-looking information, including information about possible or assumed future performance, exploration results, resources or potential growth of Golden Cross Resources Ltd (GCR), industry growth or other trend projec
Slide 3: Copper and gold deposits are GCR's primary targets
For personal use only Copper and gold deposits are GCR’s primary targets with interests in base metals, uranium, nickel and coal. Copper – Gold in New South Wales Copper Hill Inferred-Indicated-Measured JORC Resource containing 1.2 million ounces gold & 420,000 tonnes copper
Slide 4: GCR and CUMIC have formed a strategic alliance
For personal use only GCR and Beijing-based CUMIC have formed a strategic alliance To develop Copper Hill and expand exploration activities to discover additional copper – gold deposits . China National Automation Control System Corp. (CACS) has been retained to conduct the Copper Hill Feasibility S
Slide 5: Golden Cross Resources Australian Project Locations
2 = O @ D =) © ‘= S Q — @ a. — O LL Perth Mulga Tank (U Ni Au) | WV Kalgoorlie Lachlan Fold Belt Curnamona Province Bowen Basin Mt Isa Inlier Georgina Basin Yilgarn Block m= Olympic Domain Mulga East Darwin @ Mount Isa (UP Cu-au) Highland Sherrin-Lily Quita Mount Isa Olympic Domain (Cuau) Oolgelima
Slide 6: Copper Hill
For personal use only 铜 Copper 山 Hill
Slide 7: Copper Hill grade distribution
For personal use only Copper Hill Grade distribution @ 0.4% Cu cutoff 0.6% Cu O.4% Cu <500 metres> North
Slide 8: AMDAD's Optimised Pit Shells
For personal use only AMDAD’s Optimised Pit Shells
Slide 9: For personal use only
For personal use only
Slide 10: JORC Resource Estimate
铜山 Copper Hill JORC Resource Estimate For personal use only Copper Tonnes Copper Gold (g/t) Contained Contained Cutoff (Mt) (%) Copper (Kt) Gold (M oz) (%) 0.20 133 0.31 0.28 421 1.20 Containing 3.3 million tonnes sulphur in chalcopyrite (CuFeS2) & pyrite (FeS2)
Slide 11: Conceptual Pit Optimisation Parameters
Copper Hill Project – Conceptual Pit Optimisation Parameters AMDAD Optimised Pit Parameters Case 1 Case 2 Case 3 For personal use only US$/oz Au 600.00 800.00 1000.00 US$/lb Cu 1.90 2.70 3.50 DCF (10%) for 8Mtpa ore throughput. NPV after capital of A$115 A$360 A$542 $420 million deducted. million mi
Slide 12: Maximising Value
Maximising Value For personal use only • By producing copper metal, bullion gold, sulphuric acid and iron • Higher value products with minimal waste and greatly improved environmental outcomes • Float all sulphides on site, rail to roaster, produce acid from SO2, copper by SXEW, gold by CIP/CIL
Slide 13: Chinese investors and development strategy
For personal use only Copper Hill was recognised by Chinese investors as a potential mine development. The project is low grade requiring an unusual development strategy and is reliant on: • Low cost capital items from China • Project funding from China • Copper off-take by Chinese companies
Slide 14: The feasibility study is structured in several stages
The feasibility study is structured in several stages Milestones: For personal use only 1.In January 2011 – CACS will complete the economic justification for proceeding to a full Bankable Feasibility Study (BFS) 2. Within one month of delivery of the economic justification GCR can choose to proceed,
Slide 15: Progress & Current Status at Copper Hill
Progress & Current Status at Copper Hill • CACS has commenced the feasibility study and has appointed China Nerin For personal use only Engineering Co., Ltd to assist. • GCR has appointed a senior consultant mining engineer to assist in mine design and ensure compliance by Chinese engineers. • GCR h
Slide 16: Copper Hill Feasibility Study Checklist
COPPER HILL FEASIBILITY STUDY CHECKLIST • Introduction & Background For personal use only •Geology and Mineralisation •Resources & Reserve Estimates •Mining •Metallurgy •Process Plant •Process Reagents •Infrastructure •Services and Utilities •Environmental Impact Management •Management and Operation
Slide 17: Introduction
•INTRODUCTION 1.COMPANY BRIEFING 2.DEVELOPMENT BACKGROUND For personal use only •Summary of the tenements, ownership, equity holders and parties having an interest in the project •Tenement location plans 1.PROJECT DESCRIPTION 2.OWNERSHIP AND TENURE 3.LANDOWNERS & ACQUISITIONS 4.LOCATION 5.CLIMATE 6.
Slide 18: Geology and Mineralisation
GEOLOGY AND MINERALISATION 1.GEOLOGY 2.EXPLORATION TO DATE For personal use only 3.SAMPLE COLLECTION, PREPARATION & ASSAYING 4.QA/QC – PROCEDURES ,CHECK ASSAYING, STANDARDS, 5.DEPOSIT MINERALOGY AND DISTRIBUTION STATISTICS 6.IN-SITU BULK DENSITY (including determination methodology) 7.HYDROGEOLOGY 8
Slide 19: Resources and Reserve Estimates
•RESOURCES AND RESERVE ESTIMATES ORE RESERVES For personal use only •Introduction •Methodology for converting resources into reserves •Reserve Classification •Dilution and Mining Recovery Factors Containe Containe Tonnes Copper Gold d d % of Class (Mt) (%) (g/t) Copper Gold Tonnes (Kt) (M oz) Contai
Slide 20: Mining
•MINING For personal use only 1.GEOTECHNICAL 2. MINE DESIGN PARAMETERS 3. OPEN PIT OPTIMISATION AND DESIGN 4. PRODUCTION SCHEDULE 5. GRADE CONTROL 6. WASTE & LOW GRADE DUMP CONSTRUCTION & REHABILITATION 7. MANNING & SUPERVISION
Slide 21: Metallurgical Testwork & Flowsheet Development
METALLURGICAL TESTWORK & FLOWSHEET For personal use only DEVELOPMENT METALLURGICAL SAMPLING Comminution Testwork Samples Oxidation Testwork Samples Flotation Testwork Samples Leaching Testwork Samples Physical Parameters- Testwork Samples Mass Balance Calculations Mineralogy Samples Other Test Sampl
Slide 22: Metallurgical Testwork & Flowsheet Development – continued
METALLURGICAL TESTWORK & FLOWSHEET DEVELOPMENT – continued… For personal use only PHYSICAL PARAMETER TESTS AND/OR OPERATIONAL DATA PERFORMANCE PREDICTIONS BASED ON INTERPRETATION OF LABORATORY TESTWORK AND OPERATIONAL RESULTS. •Selection of Processing Methods •Grinding Power and Performance Predicti
Slide 23: Metallurgical Testwork & Flowsheet Development – continued
METALLURGICAL TESTWORK & FLOWSHEET DEVELOPMENT – continued… Reagents and Consumables For personal use only •PROCESS PLANTS Crush-Grind-Float & Roast-Leach-SXEW-CIL DESIGN CRITERIA •Flotation Collector(s) •Ore Characteristics and Frother •Overall Throughput •Lime •Operating Schedule •ROM Ore Storage
Slide 24: Concentrate Treatment Plant Location Alternatives
Concentrate Treatment Plant Location Alternatives PORT PIRIE (or other S.A.) FACILITIES For personal use only a)Land Availability & Infrastructure b)Roaster c)Acid Recovery d)Calcine – acid leach PLS– Copper – SXEW e)Calcine (after flushing) – cyanide leach - CIL f)Calcine - float to upgrade g)Sulph
Slide 25: Infrastructure
•INFRASTRUCTURE SITE BUILDINGS POWER SUPPLY ACCOMMODATION IN MOLONG AND ON-SITE FACILITIES For personal use only OPERATIONAL WATER RAIL – ROAD - AIR •Supply – Lake Burrendong, Pipeline, Aquifers, Molong & other Waste •Railway upgrade (Copper Hill to Molong) •Storage – Dam on Back Creek, other sites?
Slide 26: Lake Burrendong to Copper Hill = 50km
For personal use only Lake Burrendong to Copper Hill = 50km
Slide 27: Services and Utilities, Reagents, Environmental Impact
•SERVICES AND UTILITIES •PROCESS REAGENTS For personal use only •ENVIRONMENTAL IMPACT AND MANAGEMENT ENVIRONMENTAL PERMITTING - permits/licensing/DA’s ENVIRONMENTAL IMPACT ASSESSMENT •Physical Environment •Existing Impacts – Agriculture, Prior Mining •Biological Environment, flora, fauna, water cour
Slide 28: Management and Operations; Project Implementation
•MANAGEMENT AND OPERATIONS For personal use only 1.OPERATIONAL MANGEMENT ORGANISATIONAL STRUCTURE 2.STATUTORY COVERAGE 3.ROSTER ARRANGEMENTS 4.HUMAN RESOURCES / INDUSTRIAL RELATIONS 5.RECRUITMENT 6.TRAINING & DEVELOPMENT 7.WORKPLACE OCCUPATIONAL HEALTH AND SAFETY CONTRACTOR SUPPLIED SERVICES (where
Slide 29: Legal Aspects, Marketing, Taxation, Capital Costs
•LEGAL ASPECTS 1.TITLES 2.MINING LEASE APPLICATIONS 3.COVENANTS 4.OPERATIONAL PROCEDURES / MINING LAW For personal use only 5.INSURANCE ISSUES 6.LANDOWNER ISSUES, land acquisition 7.NATIVE TITLE ISSUES 8.ENVIRONMENTAL LAW 9.POLITICAL SITUATION •MARKETING 1.COMMODITY SPECIFICATION 2.CURRENT MARKET DE
Slide 30: Operating Costs and Financial Analysis
•OPERATING COSTS AND FORECASTS 1.COST ESTIMATION BASIS For personal use only 2.COST BREAKDOWN •By Activity (Mining, Processing, Maintenance, Administration, Transport, Royalties) •By Cost Item (e.g. Power) •By Fixed and Variable Components •By Currency (e.g. $AUS, $US and Yuan) LEVEL OF ACCURACY •FI
Slide 31: Copper Hill Flotation
Copper Hill Flotation For personal use only Existing Processing Technologies will be used. All aspects of GCR’s strategy will use ‘off-the shelf’, conventional processes.
Slide 32: Comminution flowsheet
ROM Ore - 750 mm 1000 | 280 | 98 ROM Process Water SAG Mill 9050 kW Hopper : : jm 9.4 Primary] Nordberg 333 | 100 | 333 | eft jm 46 Crusher}400 kW O SAG tooo | 280 | 75 333 | 100 | 333 Stockpile 1333 193 690 Vibrating Screen 400 | 280 | 95 2*Vibrating Feeders a | 100 | 2 Conveyor CV- 03 au_| 257 | 1
Slide 33: Flotation circuit
From Milling Roughers Cleaners From 1000 2.80 35 Cu, kg/h] 0.318 3,180 %Cu | g/tAu %S %Fe | %Mass %Cu e/tAu %S %Fe | % Mass Milling 1857 1.00 1857 Sy kg/h} 2.32 23,200 Head} 0.318 0.28 2.32 2.02 100.0 CiTail] 0.240 0.45 7.60 6.62 5.9 2857 1.29 2214 | Fe*, kg/h} 2.02 20,207 Ro.Tail} 0.054 0.10 0.30 0
Slide 34: Concentrate dewatering and tailings
Flotation Concentrates From Mill 1 aS 5 Dewatering 160 1.00 160 229 1.26 181 Process Water Recovery | 131 1,00 131 Concentrate Thickener Y J L vA, 1 (mit im im ml {Area} 1646.72 |m? 69 3.30 70 [bial ana [m 29 1.00 29 Tswol 24 |m 98 1.95 50 | Upflow] 0.08 [m/h Bf it Filter Concentrate s Roaster [sele
Slide 35: Maximising Value
Maximising Value For personal use only At, say, Port Pirie in South Australia • Roasting of Copper Hill sulphides (CuFeS2 and FeS2) to produce sulphuric acid and a calcine from which the copper and gold will be selectively leached to produce cathode copper by SX/EW and bullion gold by CIL. • Leached
Slide 36: Roasting circuit
From Dewatering Secondary Fluidising Blower Roasting 86 | 330 | 70 | cukg/h] 395% | 2703 zs | 100 | 29 | _s.ke/h| 30.00% | 20,584 98 1.95 50 | Fe*, kg/h} 26.13% | 17,928 141,000 Nm’/h Au or/h] 281 g/t | 6.20 so, [ 103 | suv Fe* = sulphidic iron [by calculation) n | 579 | %uv “rash Screen o 13_| %wWv
Slide 37: Roaster Throughput
Roaster Throughput For personal use only at 85% sulphide recovery: 80 tonnes/hour concentrate 2.7 tonnes/hour copper 6.9 ounces/hour gold Assuming 8000 hours operating time per annum, at maximum capacity the plant will process 640,000 tonnes of sulphide concentrate Producing 16,000 tonnes copper & 5
Slide 38: Copper Leaching
Copper Leaching 56.3 270 45 Cu, kg/h} 4.82% | 2,709 69 1.00 69 S, kg/h} 0.00% 0 125 140 90 | Fe*, kg/h} 31.86% | 17,928 Wash Liquor Au, or/h} 3.43 g/t | 6.20 Displ'mts, 3 {Qty Fe* = sulphidic iron (by calculation) Wash 1) 8% Quantity | 2835. ft/h ial Repulp Liquor ) ial Copper Leach Pulp : - : ~Y ia
Slide 39: Copper Hill Project Simplified Flowsheet
< O O) Q =) = ‘= fe) D — ® o) — S) UL COPPER HILL PROJECT SIMPLIFIED FLOWSHEET Sulphide Roaster Concentrate CALCINE Copper SX W Copper ml Electro- Winning Fe2Os for sale LME grade cathode copper Sulphuric Acid Gold Dore
Slide 40: Capex estimates and rail freight
For personal use only Capex $310 $32/tonne rail freight million Molong => Port Pirie Capex $80 million Capex $30 million
Slide 41: Copper Hill Infrastructure
Molong 132Kv Sub-station For personal use only Mitchell Highway 4.5km Existing Railway Copper Hill Infrastructure
Slide 42: Critical Issues
Critical Issues For personal use only • Water - 8 Gigalitres per year. Principal source will be Lake Burrendong on the Macquarie River 50 km away. Some site water from aquifers. Entitlements not in place. • Acid Sale - the roaster and acid plant will produce up to 500,000 tonnes of sulphuric acid pe
Slide 43: Positive Attributes
Positive Attributes For personal use only • Excellent Infrastructure • Low strip ratio, little overburden • Good metallurgy, no deleterious elements • Low Bwi (Bond work index) low residence time in Ball and SAG mills • Clean product • Support from Molong & State Governments
Slide 44: The Copper Hill Feasibility Study Has Commenced
For personal use only THE COPPER HILL FEASIBILITY STUDY HAS COMMENCED with China National Automation Control Systems Corp (CACS) and China Nerin Engineering Co., Ltd. (NERIN) hard at work. WHAT’S INVOLVED? Due diligence on CACS by GCR and CUMIC Determination of the Deliverables, Timing and Cost Deli
Slide 45: Thank you
For personal use only Thank you…... and thank you 中国! 澳大利亚