'Uncovering the inherent simplicity of complex mining operations'

Confidential

Corporate Presentation June 2012

Mine Simulator 3.0

2012 Confidential

Typical problems   Too much variability in the production   Too many trucks in the waiting line   Congestion in the roads   Difficulties in estimating production volumes   Lack of synchronization in the production

2012 Confidential

Typical challenges   How many trucks/shovels are needed?   What is the estimated production level?   What is the aggregated variability?   What is the optimum truck allocation?

2012 Confidential

Who we are   We are an experienced and highly qualified group of professionals

and researchers devoted to the application of computer simulation to solve real world problems.

  We have many years of successful experience in assisting companies in decision making processes.

  Our Value Proposition:

"Assist you in maximizing production, optimizing the use of resources, and improving your mine operations through a smart combination of Theory of Constraints (TOC) principles and Computer Simulation.”

  We uncover the ‘inherent simplicity’ of complex mining operations.

2012 Confidential

What we do   We assist mining companies in improving operations, maximize

production and minimize resource utilization.

  We use our simulation model Mine Simulator 3.0 to assist the decision making process in determining the number of productive resources (i.e. trucks, extraction equipments, and crushers) necessary to optimize the mining operation and maximize the production.

  The model has a powerful optimizer that allows the users to find the optimum operational scheme (e.g. fleet size, truck allocation).

  The comparison of the results of different scenarios allows the user to determine the effect of the individual changes and most importantly, the optimal operational resources.

2012 Confidential

Why to use simulation   Variability is inherent to mining operations.   Each mining process is subject to variability. In the presence of

variability delays and slowness appear.   Mine operations are composed by a sequence of interconnected

dependent processes.   The aggregated variability is not equal to the sum of the variability in

each of the dependent processes.   It is difficult to develop an analytical or mathematical model to

represent mine operations.   To calculate the aggregate variability it is necessary to use

sophisticated computational tools such as 'Computer Simulation'.   Simulation allows the mine manager to test different scenarios

without affecting the real system.

2012 Confidential

The simulation model   Mine Simulator 3.0 is capable of simulating a complex transportation network

composed of up to 6 origins (extraction points), and up to 5 destinations (i.e. dumps, stocks, and crushing area).

  The user can set specific distances for the different connecting routes based on the mine design.

2012 Confidential

The simulation model   After each run Mine Simulator 3.0

generates a set of statistics and operational indicators.

  Results can be easily exported to EXCEL.

  Among these outcomes are:   Total number of trips and distance   Total tonnage moved between each

pair origin-destination   Queue statistics (e.g. maximum

number of vehicles, waiting time, average number of vehicles)

  Route statistics (e.g. speeds, number of trips)

  Statistics related with maintenance, accidents, and fleet utilization rate.

ExtendSim blocks copyright © 1987-2012 Imagine That Inc. All rights reserved.

2012 Confidential

The simulation model

  Mine Simulator 3.0 can handle up to 3 different types of vehicles simultaneously.

  There is no limit for the number of vehicles.

  Each truck has associated a maximum loading capacity and operation speeds depending on its type.

  Speeds vary when the truck is traveling empty (i.e. returning to the extraction point) or loaded (i.e. when moving to the dumping zones, stocks, or crushing area).

  Since Mine Simulator 3.0 is a probabilistic model, stochastic speeds are assigned to each truck before entering the routes.

2012 Confidential

More Information

SmartSimulation BLOG SmartSimulation website

www.SmartSimulation.ca http://smart-simulation-blog.blogspot.ca/

'Uncovering the inherent simplicity of complex mining operations'

Confidential

Corporate Presentation June 2012

Mine Simulator 3.0