Review and Pit Optimization of ti Gümüs Silver Mine in Turkey (according to international standards) Authors: Dirk Wagner Senior Project Manager IMC-Montan Consulting GmbH Muhanned Arar GM xploration and Development Yildizlar SSS Holding Ulrich Ruppel Mining Director (CP Mining AusIMM) IMC-Montan Consulting GmbH 2013 October Slide 2007 1 Page 1 www.imcgcl.com I www.dmt.de
Contents 1. Introduction 2. Project 3. Base Parameters 4. Results 5. Future 2013 October Slide 2007 2 Page 2 www.imcgcl.com I www.dmt.de
Contents 1. Introduction 2. Project 3. Base Parameters 4. Results 5. Future 2013 October Slide 2007 3 Page 3 www.imcgcl.com I www.dmt.de
Introduction ti Gümüs largest silver producer in Turkey Preparation for IPO (Istanbul) International Mining Consultancy was required for preparation 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 Scope of Work: - Operational and Life of Mine Plan (LOM) - NI 43-101 / JORC Code report 2013 October Slide 2007 4 Page 4 www.imcgcl.com I www.dmt.de
Introduction YILDIZLAR SSS HOLDING A.S. MINING GRUOP CRAMIC/GRANIT GROUP NRGY &PTROL OTHR SRVIC TI GUMUS A.S. SOGUTSN SRAMIK AS A.S. 3S NRJI A.S. YSSS NTGR ORG.TAR.A.S. A YILDIZ BAKIR A.S. GRANITO GIRARTO A.S. GUMUS PTROL A.S. 3S NAKLIYAT A.S. NSKO MADN A.S. 3S MADNCILIK A.S. DDLI DOGALGAZ A.S. 3S SIGORTA A.S. RASİH İHSAN LTD.STI. DDLI LKTRIK NRJI A.S. YILDIZLAR SSS PLAZA TURIZM A.S. ZAMANTI MADN LTD.STI. OSMANGAZI LKTRIK DAGITIM A.S. YILDIZLAR LAB.ANALIZ ANALIZ HIZ.A.S. YAVUZ MUH. A.S. SNA YATIRIM INS.A.S. DDLİ YATIRIM A.S. SILVR KORUMA GUVNLIK A.S. 2013 October Slide 2007 5 Page 5 www.imcgcl.com I www.dmt.de
Introduction TÜV NORD Group (Germany) 100% DMT GmbH & Co. KG (Germany) 100% 50% 100% 100% 74% DMT Geosciences Ltd. (Canada) IMC-Montan JV (Russia) IMC Group Consulting Ltd. (UK) IMC-Montan Consulting GmbH (Germany) PT IDMT C (Indonesia) 51% IMC-SRG Services & Consultancy Ltd. (India) IMC-GCL Office Jo Burg (SA) 2013 October Slide 2007 6 Page 6 www.imcgcl.com I www.dmt.de
Introduction TÜV NORD Group (Germany) 100% DMT GmbH & Co. KG (Germany) Planned in 2013/14 DMT-IMC Turkey 100% 50% 100% 100% 74% DMT Geosciences Ltd. (Canada) IMC-Montan JV (Russia) IMC Group Consulting Ltd. (UK) IMC-Montan Consulting GmbH (Germany) PT IDMT C (Indonesia) 51% IMC-SRG Services & Consultancy Ltd. (India) IMC-GCL Office Jo Burg (SA) 2013 October Slide 2007 7 Page 7 www.imcgcl.com I www.dmt.de
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 75 government approved experts 2013 October Slide 2007 8 Page 8 www.imcgcl.com I www.dmt.de
Services for the Mining Industry deposit-modelling mine planning greenfield development process design mine site rehabilitation assistance during operation 2013 October Slide 2007 9 Page 9 www.imcgcl.com I www.dmt.de
Scope of Services IMC Geology & Orebody Modelling Resource/Reserve stimates compliant to JORC or NI 43-101 Bankable Studies ngineering Services - Mine Design - Process Design Project Management Services nvironmental & Social Impact Assessments Rehabilitation of Mine Sites Investors Support - Due Diligence - Mineral xpert Report - Project Valuations Management Assistance during Operation 2013 October Slide 2007 10 Page 10 www.imcgcl.com I www.dmt.de
1 re 0 3 zr le d z Geology & Resources (DMT-G) Services Mapping xploration Resource evaluation Geological risk analyses Planning and supervision of Software xpertise SURPAC DATAMIN VULCAN SURFR IRAP RMS PTRL MINX ROCKWORKS LYNX 2D and 3D seismic surveys Geoelectrics, gravimetry a.o. Prospecting and drilling Sampling and QC Borehole geophysics Fl. 24 K B 160 0 160 1070 m 1072 m 1074 m 1076 m Intersaction Plane of division Birdview SH SP8 SP Seam24 SP 1078m SH 1080 m 12 SP SP SP SP 6 SH SP Bedding 10 12 13 4. Jo oints 80 77 60 85 4. Be edding plane (S Slickenside) 30 40 45 xternal form of parting Geotechnical analysis of rocks 6. Co ondition O O O O G G O 7. M ineralizing X X O O X X O ug ur. Bedding gb we B100 B80 B60 B40 2. Thickness B20 B10 ko ab ge. Properties of rocks 100 45 65 RQLD 25 50 75 90 Rockstrength Splitting strength [N/mm²] Axial Diametral [ N / mm² ] 85,5 57,8 33,2 52,9 40,0 56,7 60,6 14,4 27,7 37,6 14,4 14,4 9,6 14,4 75 21,8 25 50 75100 56,1 27,7 21,8 8,6 5,1 7,2 8,4 6,9 4,1 2013 October Slide 2007 11 Page 11 www.imcgcl.com I www.dmt.de
Rock Mechanics Geotechnical Assessments Stabilisation of Mine Workings Assessment of underground excavations Simulation and Testing of Roof Support elements Rock Burst Prevention Pit Slope Stability & Stabilisation 2013 October Slide 2007 12 Page 12 www.imcgcl.com I www.dmt.de
xtraction & Haulage xtraction 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 2013 October Slide 2007 13 Page 13 www.imcgcl.com I www.dmt.de
Mineral Processing Processing Technologies Coal Iron Ore Base Metals Lab and Pilot Plant Testing Simulation Software for Processing Flow Sheet Development Design of Beneficiation Plants Project Management Services 2013 October Slide 2007 14 Page 14 www.imcgcl.com I www.dmt.de
Specialist Services Underground Mine Ventilation Coal Mine Methane & Utilisation Mine Closure Planning Subsidence Control Hydrogeology and Mine Water nvironmental Services Methane Inflow Forecast Calculation Gas Outburst Prevention Mine Safety Audits 2013 October Slide 2007 15 Page 15 www.imcgcl.com I www.dmt.de
Introduction NI 43-101 Item 1: Summary Item 14: Mineral Resource stimates Item 2: Introduction Item 15: Mineral Reserve stimates Item 3: Reliance on Other xperts Item 16: Mining Methods Item 4: Property Description and Location Item 17: Recovery Methods Item 18: Project Infrastructure t Item 5: Accessibility, Climate, Local Resources, Infrastructure and Physiography Item 19: Market Studies and Contracts Item 20: nvironmental Studies, Permitting and Social or Item 6: History Community Impact Item 7: Geological Setting and Mineralization Item 21: Capital and Operating Costs Item 22: conomic Analysis Item 8: Deposit Types Item 23: Adjacent Properties Item 9: xploration Item 24: Other Relevant Data and Item 10: Drilling Information Item 11: Sample Preparation, Analyses and Security Item 12: Data Verification Item 13: Mineral Processing and Item 25: Interpretation and Conclusions Item 26: Recommendations Item 27: References Metallurgical Testing 2013 October Slide 2007 16 Page 16 www.imcgcl.com I www.dmt.de
Contents 1. Introduction 2. Project 3. Base Parameters 4. Results 5. Future 2013 October Slide 2007 17 Page 17 www.imcgcl.com I www.dmt.de
Project - Location 2013 October Slide 2007 18 Page 18 www.imcgcl.com I www.dmt.de
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 Potential for re-processing of tailings 26.7 Mt @ 83 g Ag/t 2013 October Slide 2007 19 Page 19 www.imcgcl.com I www.dmt.de
Project - pictures 2013 October Slide 2007 Page 20 www.imcgcl.com I www.dmt.de
Project - pictures 2013 October Slide 2007 21 Page 21 www.imcgcl.com I www.dmt.de
Project - pictures 2013 October Slide 2007 22 Page 22 www.imcgcl.com I www.dmt.de
Contents 1. Introduction 2. Project 3. Base Parameters 4. Results 5. Future 2013 October Slide 2007 23 Page 23 www.imcgcl.com I www.dmt.de
Base Parameters First Time Pit Optimization for the Operation Dataset not in the required format ffort was required to collect and generate required dataset 2013 October Slide 2007 24 Page 24 www.imcgcl.com I www.dmt.de
Base Parameters Final compiled set of base parameters for Pit Optimization Silver Price 30 US$/oz Waste Mining Cost Ore Mining Cost Processing and G&A Cost 1.95 $/t 2.15 $/t 21.5 $/t Silver Recovery 52 % Mining Dilution 5 % Mining Losses 5 % Overall Pit Slope 45 deg. 2013 October Slide 2007 25 Page 25 www.imcgcl.com I www.dmt.de
Contents 1. Introduction 2. Project 3. Base Parameters 4. Results 5. Future 2013 October Slide 2007 26 Page 26 www.imcgcl.com I www.dmt.de
Results 2013 October Slide 2007 27 Page 27 www.imcgcl.com I www.dmt.de
Mine Development year 1 Year 1 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 28 Page 28 www.imcgcl.com I www.dmt.de
Mine Development year 2 Year 2 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 29 Page 29 www.imcgcl.com I www.dmt.de
Mine Development year 3 Year 3 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 30 Page 30 www.imcgcl.com I www.dmt.de
Mine Development year 4 Year 4 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 31 Page 31 www.imcgcl.com I www.dmt.de
Mine Development year 5 Year 5 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 32 Page 32 www.imcgcl.com I www.dmt.de
Mine Development year 6 Year 6 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 33 Page 33 www.imcgcl.com I www.dmt.de
Mine Development year 7 Year 7 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 34 Page 34 www.imcgcl.com I www.dmt.de
Mine Development year 8 Year 8 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 35 Page 35 www.imcgcl.com I www.dmt.de
Mine Development year 9 Year 9 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 36 Page 36 www.imcgcl.com I www.dmt.de
Mine Development year 10 Year 10 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 37 Page 37 www.imcgcl.com I www.dmt.de
Mine Development year 11 Year 11 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 38 Page 38 www.imcgcl.com I www.dmt.de
Mine Development year 12 Year 12 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 39 Page 39 www.imcgcl.com I www.dmt.de
Mine Development year 13 Year 13 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 40 Page 40 www.imcgcl.com I www.dmt.de
Mine Development year 14 Year 14 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 734000 733750 737000 736750 736500 736250 736000 735750 735500 735250 735000 734750 734500 734250 1:20000 0 100200300400500600700800900 734000 733750 2013 October Slide 2007 41 Page 41 www.imcgcl.com I www.dmt.de
Results Price sensitivity of Gümüsköy pit optimization 90.000 600 80.000 70.000 500 Ore tonnage [0 000 t] 60.000 50.000 40.000 30.000000 400 300 200 /t] Grade [g Ag/ 20.000 10.000 100 0 0 0 5 10 15 20 25 30 35 40 Ore Tonnage Grade 2013 October Slide 2007 42 Page 42 www.imcgcl.com I www.dmt.de
Results Production Schedule optimized to receive constant head grade Unit 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Ore Production 000 t 4320 4,320 4320 4,320 4320 4,320 4320 4,320 4320 4,320 4320 4,320 4320 4,320 4320 4,320 4320 4,320 4320 4,320 Ore Grade g/t 145 145 143 145 146 146 146 138 136 138 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 Ore % 52 52 52 52 52 52 52 52 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 4,320 4,320 4,320 4,320 4,320 4,320 172 73,612 Ore Grade g/t 140 140 152 148 140 136 116 114 141 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 52 52 52 52 52 52 Recovered Ag kg 315,578 314,361 341,429 332,374 313,499 306,059 261,510 10,214 4,511,864 2013 October Slide 2007 43 Page 43 www.imcgcl.com I www.dmt.de
Contents 1. Introduction 2. Project 3. Base Parameters 4. Results 5. Future 2013 October Slide 2007 44 Page 44 www.imcgcl.com I www.dmt.de
Future Operational and Life of Mine Plan (LOM) of ti Gümüs based on optimization results Reconciliation to improve the accuracy of the geological model stablishing long/short-term mine plan and updating it according to new findings on a regular basis 2013 October Slide 2007 45 Page 45 www.imcgcl.com I www.dmt.de
For more information, please contact THANK YOU VRY MUCH FOR YOUR ATTNTION IMC-Montan M Consulting GmbH Michael Loos Ulrich Ruppel Am Technologiepark 1 Technical Director Mining Director 45307 ssen / Germany Tel. +49 201 172-1536 Tel. +49 201 172-1507 Fax +49 201 172-1727 Fax +49 201 172-1727 www.dmt.de www.imcgcl.com michael.loos@dmt.de ulrich.ruppel@dmt.de Branch of DMT GmbH & Co. KG - Member of TÜV NORD Group 2013 October Slide 2007 46 Page 46 www.imcgcl.com I www.dmt.de