Playa Verde Project, Rehabilitation of Chañaral Beach

PLAYA VERDE PROJECT
Environmental Rehabilitation
& Clean Copper Production
Status to April 2015
Workshop on Sustainable Mining
Possibilities for Chile and EU
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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OVERVIEW

Chañaral located at 875 Km North of Santiago de Chile.

Copper Bay Limited (CBL) holds exploitation licences, 15.25sqkm,
at Chañaral where at least 116 million tonnes of copper tailings
have been deposited on the beach and bay.

CBL plans to remove the copper from the tailings and therefore
substantially reduce the toxic nature of this material.

CBL hopes that the revenue from the sale of the removed copper
will pay for the whole operation at Chañaral and reward its
backers with a return on their investment.

Economic value will be added to the natural and social
environment by detoxifying the existing beach in Chañaral

Because of the low grade of the tailings as compared with
conventional copper projects the strategy must be focussed on
low operating and capital costs.

Planned production is in 3 years from now
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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HISTORY of TAILINGS DISPOSAL

1938 to 1975 the Potrerillos and El Salvador
copper mines disposed of their tailings in the Rio
Salado, which opens out into Chañaral Bay

An estimated 225 million tonnes of tailings were
discharged into the bay

A further 100 million tonnes are estimated to
have been discharged into the next bay a few
kilometres to the North of Chañaral

Several studies have been made of the beach at
Chañaral but so far no workable solution to the
pollution problem has been found.

In the current copper price forecast scenario CBL
thinks that it has a sound proposal to
stakeholders and investors.
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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OVERVIEW of the BEACH and BAY
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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DRILLING CAMPAIGNS PRE-CBL
B E A C H
Company
B A Y
Year
Drillholes
% CuT
CuSol
BRGM
1972
86
0.24
51%
SERNAGEOMIN
1991
8
0.29
85%
TECSAMIN
1994
9
0.40
75%
SPRINGHILL
2000
30
0.28
CEYGE
2005
6
0.29
2008/9
43
0.27
182
0.27
MNI/PUCOBRE
Totals
Drillholes % CuT
CuSol
Tonnes
9
0.14
56%
25
0.13
48%
37
0.24
46%
116 Million
53%
71
0.19
48%
253 Holes
No JORC (or equivalent) resources are supported
by the historic information
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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INITIAL STEPS OF CBL
• 2010, Private entreprenuers organize CBL in UK and provide seed capital
• 2010, 4th quarter. First actions in Chile. Base initiative: a mining venture on
beach and bay tailings-resources.
• 2010- 2011 Due Diligence on Legal, Technical and Environmental issues
• Post Due Diligence, early involvement of Stakeholder was incorporated to the
Project concept, and
• CBL´s Chilean Cos organized: Minera Playa Verde as operational unit to
develop the Playa Verde Project.
• IPO in London Stock Exchange did not succeded in 2012 – 2013.
• 2013 CAML take 50% stake and fund project development.
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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STAKEHOLDERS, EARLY PARTICIPATION

Two stages carried out so far: Situational Diagnostic and Feedback & Project
Introduction

Surveyed entities:
 Authorities
 Community organisations
 Fishers organization (Local Federation)

Concerned Risk Issues
 Peoples health by dust and arsenic pollution
 Impact of pollution to marine resources
 Employment in short and long term
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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STAKEHOLDERS, EARLY PARTICIPATION, 2

Outcomes





No opposition to the Project in the Audience, but
People want to be approached in good time, and
to be informed about the Project and its development progress.
Environmental characterization of new tailings, a key issue
CBL Committment
 Execute PF Study in the way it was planned.
 Inform Stackeholders about Project findings when complete.
 No intervention in the sea at this stage. Appreciated by fishermen.
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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WHY TWO PHASES OF DEVELOPMENT
1. Original scenario: Beach and Bay resources did not have coherent background
information.
2. Important financial resources and time required to place both on the same level
3. To initiate the engineering works the resources under water in the Bay require longer
and expensive studies than those in the Beach.
4. Development Critical Path goes through the environmental studies, Authorities and
community early participation, previously to set the final technical-economic solution.
5. Two phases have proved to be a better strategy to motivate private investors to fund
the Project development (in the recent and current business scenario).
6. Initial stage, pre-PFS funded by seed capital from private entreprenuers.
7. Funds for PFS and DFS by CAML.
8. Funds to implement the facilities and start up the Project TBD.
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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Rehabilitation Project, a Sustainable Balance
EFFECTIVE TECHNICAL
SOLUTION
GET A CLEANER
ENVIRONMENT,
SOCIO-ECONOMIC ADDED
VALUE
CHAÑARAL BEACH REHABILITATION
•
•
•
•
•
•
•
Tailings Processing for cleaning the beach.
Reclamation by dredging techniques.
No Bay intervention.
Get metals for the market, recycle in the market.
Final tailings suitable for beach reforming.
Get reformed beach back to the community uses, by stages
through the mine life.
Study the Bay rehabilitation during beach operation (same
business model)
ECONOMIC FEASIBILITY, SUPPORT
FROM PRIVATE INVESTORS
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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Key Actors for Success
Stakeholders: Authorities &
Community
CBL – MPV
Project Management
GET A CLEANER
ENVIRONMENT,
SOCIO-ECONOMIC ADDED
VALUE
EFFECTIVE TECHNICAL
SOLUTION
CHAÑARAL BEACH REHABILITATION
•
•
•
•
•
•
•
Tailings Processing for cleaning the beach
Reclamation by dredging techniques.
No Bay intervention.
Get metals for the market, recycle in the market.
Final tailings suitable for beach reforming.
Get reformed beach back to the community uses, by stages through
the mine life.
Study the Bay rehabilitation during beach operation (same business
model)
ECONOMIC FEASIBILITY,
SUPPORT FROM PRIVATE
INVESTORS
Investors
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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Materials Handling 14,000 t/d
TAILINGS RECLAMATION, AND
PROCESS.
POLLUTED BEACH
PRODUCTS
Metals / Cons to recycle
in the Market
DEPOLLUTED BEACH
REGULATION, TERRITORIAL PLAN
AND COMMUNITY THOUGHTS
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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THE PROJECT, A BRIEF
 Minera Playa Verde Ltda, subsidiary of Copper Bay Ltd (UK), manage the Playa
Verde Project in Chile.
 Close to 50 Mt of tailings, 0.24% Cu, disposed in the Chañaral Beach will be
dredged and processed to produce copper cathodes and concentrates, both to be
reclycled into the market.
 Process will produce final tailings to Reform / rebuild the beach.
 Economical return from sales must pay the costs and generate an adequate profit to
investors. This is to motivate private funds for development, implementing and
operating the Project in a sustainable and responsible business way.
 An efficient operation will contribute to add economic value to the beach by a
substantial reduction of pollution in the sands to level permitting recreational uses
at least.
 Low grade of tailings set a challenge to comply the rehabilitation purpose together
the motivation to private investors to finance the initiative.
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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DEVELOPMENT PLAN
I.
Phase 0
1. Comprehensive scoping study by a Competent Person. Historial resources
and bench scale metallurgical tests.
II.
Phase 1, Beach Resources . Reforming the Beach
1. Prefeasibility Study Stage
a. Drilling campaign.
b. Resources JORC qualification
c. Metallurgical Studies.
d. Reclamation
e. Tailings Disposal
f. Environmental and social
2. Definitive Feasibility Study Stage
III. Phase 2, Bay Resources, on the seabed
Studies to be carried out during the operation of Phase 1
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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PROGRESS SO FAR

All PFS studies completed

Drilling and Resource Estimation

Metallurgical testing

Dredging

Tailings disposal

Environmental and Social Impact – PF level

Power / acid

Extended (2015) Studies on Dredging and
Process
•
•
Viability estimated to PFS level or better
PFS study completed as planned
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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RESOURCES ESTIMATE
Drilling campaign in Beach completed

136 holes

1,246 metres

1,022 samples
JORC RESOURCE ESTIMATE
Class
Mt
Grade, %
Cu, kt
Indicated
42.7
0.244
104
Inferred
8.5
0.234
19
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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Process Sketch
Reclamation
Sand
Preparation
Raffinate
PLS
Cathodes
SX/EW
Leaching
Slimes Dam
Primary
flotation
Classifier
Beach
Cons.
Cleaning &
Regrind
Cu/Au
Concentrate
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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REFORMING THE BEACH, by STAGES
New reformed beach will be returned
to public domain in the way the
dredging plan and disposal of coarse
final tailings progress.
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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PROCESS OVERVIEW
5mtpa
Dredging Pond
Trash Screen
83ktpa >1.0mm
Coarse Waste
To TMF
Shell Screen
Excess Water
178ktpa
>0.425mm
De-watering
Raffinate
Acid Leach
Neutralise
Recycled middlings
Flotation
De-watering
SX/E
W
solids
6.3ktpa
Copper
Cathodes
98ktpa
Cu/Au
Concentrate
Residue
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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ENVIRONMENTAL ISSUES
Environmental Permitting Timeline
•
Initial assessments conducted
•
No fatal flaws found
•
Preliminary baseline commenced
•
Different study elements for EIA
identified
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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EIA preparation and approval
expected to take up to 24 months
•
Initial community engagement
−
Clear local support
−
Ongoing community engagement plan
important
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KEY MATTERS FOR THE EIA
• Evaluate new baselines after traumatic experience, infrastructure damages
and impact to natural resources by Aluvion in Chañaral.
• Early Community Participation
• Depollute the beach to improve alternatives in Territorial Plans
• EIA including Risk Analysis to Human Health by ASTM RBECA methodology, at
Tier 2 level
• Coordination with Authorities regarding RBCA application in Risk Analysis
• Facing decisions regarding conflics on techical - environmental matters to
advance in a fast-track route subject to regulatory compliance and
Community participation.
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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NEXT STEPS
2015
2016
2017
2018
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
DFS
Reserve Definition
Dredging Plan
Pilot Plant/Met Testing
Environmental
Engineering/DFS
PROJECT
Fundraising
Detailed Engineering
Construction
Operation
Community
Copper Bay Ltd – “Sustainable Mining Solutions for Chile and EU”
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