company presentation on proposed ajax mine - ppt presented to kamloops city council

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Ajax Copper Gold Property




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•  Who is KGHM Ajax? •  What is the Ajax Copper-Gold Project? •  What stage in the Environmental Assessment

process is the project? •  What are the community’s concerns about the

project? •  What is KGHM Ajax doing about the community’s

concerns? •  What benefits will the project bring to the

Kamloops region?

Presentation overview




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Abacus Mining and Explora3on Corp.

Vancouver-‐based mining and explora5on company established in 1983

Engaged in BC mineral explora5on and focused on the development of deposits associated with the Ajax-‐ADon area

Tier one issuer, trading on the TSX Venture Exchange

KGHM Polska Miedz S.A.

Polish copper mining and smel5ng company established in 1961

9th largest copper producer and 3rd largest silver producer in the world

Traded on the Warsaw Stock Exchange with a USD-‐equivalent market cap of more than $11B

Employer to more than 18,000 employees

KGHM Ajax Joint Venture




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•  Open pit copper-gold mine •  60,000 tonnes per day •  Expected to produce 109 million pounds

(50,000 tonnes) of copper and 99,000 ounces of gold annually

•  Mine life estimated to be 23-years •  Construction expected to begin in

Q2 2013 •  Copper production expected to begin

in Q2 2015

Project overview




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New Gold: New AAon Mine KGHM Ajax: Ajax Mine

Mine Type High-‐grade, underground block cave mining

Low-‐grade, open pit surface mining

Processing 10,000 tonnes per day 60,000 tonnes per day

Producing 35,000 tonnes of copper annually

50,000 tonnes of copper annually

Water System Upgrade of ADon water system Expansion of ADon water system

Tailings Surface conven5onal tail deposit Surface high density tail deposit

Mine Life Es5mated 13-‐years Es5mated 23-‐years

Current Phase Construc5on Investment decision

PermiKng Mines Act Permit Environmental Assessment

Terms of Reference




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CURRENT STAGE

DraA Applica3on Informa3on Requirement (dAIR) / DraA AIR/EIS Guidelines Document

•  SubmiXed August 2011 •  Includes the studies, methods and

informa5on to be included in the Applica5on

•  Under review by the provincial, federal, regional, municipal and First Na5ons governments

•  Will be presented for public review and comment from January 11 to March 12

•  Informa5on session to be held February 6 and 7

NEXT STAGE

Applica3on for an Environmental Assessment Cer3ficate and Federal Environmental Approval

•  Expect to submit in Q3 2012 •  Will include:

•  Results of studies outlined in dAIR •  Assessment of any poten5al

effects •  Environmental management plans

to mi5gate effects

Environmental Assessment




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Community concerns include these issues: •  Mine proximity to city •  Air quality and dust control •  Noise and vibration •  Water usage and water quality •  Aquatic habitat and wildlife

Community concerns




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Located southwest of the Trans-‐Canada Hwy 1 and Coquihalla Hwy 5 junc5on

Closest point: Northwest toe of the North Waste Rock Management Facility is 1.5km from Aberdeen

Footprint: 2,500ha

Mine proximity to the city




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Community Concerns: •  Health effects on individuals with respiratory illnesses •  Increased illness in healthy individuals •  Dust containing chemicals spreading over city

Studying Dust •  Collecting weather and climate data since 2007 •  Baseline studies on existing dust levels initiated in 2009 and are ongoing •  Using highest level of dust study available to model and predict dust fall

Managing Dust •  Will use best practices for dust management including:

•  Using watering and binding agents •  Covering stock piles •  24/7 dust monitoring

Air quality and dust control




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Community Concerns: •  Continuous noise from operations, blasting and

increased traffic •  Structural damage caused by blasting vibrations •  Decrease in quality of life

Studying Noise and Vibration •  Ambient sound level assessment initiated in 2011 •  Blast vibrations were found to be below the vibration limit adopted by many North

American municipalities •  Working with the City of Kamloops engineers to study ground movement and any

effects that the project may have on the local area residents

Managing Noise and Vibration •  Will utilize high precision computer-controlled detonation •  Will deploy best practices for noise and vibration suppression

Noise and vibration




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Community Concerns: •  Loss of wetland and waterfowl habitat •  Loss of migratory corridor for moose and deer during

winter migration •  Wildlife displacement into more urban areas •  Loss of grasslands and sensitive ecosystems

Studying Aquatic Habitat and Wildlife •  Aquatic studies initiated in 2007 •  Baseline wildlife studies initiated in 2007

Mitigation •  Mitigation strategies will include proven methods for species protection, best

management practices, legislative requirements and species-specific recovery strategies

Aquatic habitat and wildlife




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The Ajax project will bring revenue to local industries and suppliers and to the BC economy.

Construction Phase (2013-2015) •  1330 (580 direct and 750 indirect) jobs during

two-year construction phase •  Spending of ~$1.1M day (37% estimated to stay in

Kamloops)

Operations (beginning in 2015) •  870 (380 direct and 490 indirect) employees

during 23-year mine life •  Mine expected to generate $115M in municipal

tax revenue over its life

Local economic benefits




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We will design the Ajax project in a way that

protects the local environment, safeguards the health of people and

maximizes social and economic benefits in the region.




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For more information: KGHM Ajax Mining Inc.

330 Seymour Street, Kamloops, BC 250.374.5446

[email protected]

company presentation on proposed ajax mine - ppt presented to kamloops city council

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