Project Location

AMC
Project Initiation
• The VMS deposits located in the Hassaï area includes Hassaï South, Hadal Awatib, Hadayamet, Adasedakh, Oderuk, Can and Talaiderut.
These deposits are within 30 km, by road, of the current heap leach operation and processing plant which recovers gold from QZV and
oxide/SBR-type deposits (gold-enriched VMS) that have been subsequently enriched by weathering.

• In the second half of 2009, AMC reported its first NI 43-101 compliant resource estimate for the first two VMS targets, the Hassaï South pit
and the Hadal Awatib pits.

• Since then, an extensive drilling programme has been undertaken to attempt to establish sufficient ore reserves to sustain a copper/gold
project (the VMS project). The project progressed to the level of Pre Feasibility Study (PFS).

• The PFS report takes into account the latest certified resources on the Hadal Awatib and Hassaï South deposits (2014).
VMS Deposits Evaluated
WORLD Class Deposit

Ariab
Project Description
• The project scope is to mine the VMS ore from 2 location,

• HAW as Open Pit.

• Hassai as U/G.

• To construct a Copper , Zinc flotation plant and Gold, Silver

as by product. The plant capacity will start with 2.5Mt/An and
upgraded to 5Mt/An later on.

• World standard compliant tailings storage facilities.

• Assuming that the pipeline from the Nile already installed

during CIL phase, it will just needs few upgrading.
 Consultant Scope of Services

VMS PFS
• Process Plant Design and Infrastructure
• VMS concentrator process design criteria for 2.5 Mtpa and 5 Mtpa plant capacities, together with mass balances, process flow
diagrams (PFDs) and plant layouts
• Review of metallurgical test work

Conducted by • Process plant trade-off studies

• Infrastructure and logistics
• Process plant and infrastructure capital cost estimate

Internationally • Process plant, G&A, and assay operating cost estimate

• Project execution plan
• Plant mass balance and water balance

Reputable SA • Overall responsibility for the collation of the final report

• Geotechnical and hydrological investigations
• A site visit was undertaken to inspect existing open pits and existing core logging, and to conduct pit mapping.

Mining Firms
• A range of laboratory testing was also conducted.
• Based on the above, SRK formed an opinion on the geotechnical characteristics of the deposits and the surrounding rock
Spain, WW formations and structures.
• Resources
• Resources definition and certification of the Hassaï VMS deposits
France, WW
• Mining studies
• A site visit was undertaken and open-pit and underground options were developed for both deposits.
• PFS-level mining schedules were then developed for the Hadal Awatib open-pit mine and the Hassaï South underground
SA mines.

• A crushing and grinding simulation study was also conducted by OMC, which investigated five different options to achieve the
required grind size. The options to easily increase the plant capacity from 2.5 Mtpa to 5 Mtpa were also investigated by OMC.
Australia
BLUE COAST
• A comprehensive test work programme was conducted in Canada to investigate copper flotation, zinc flotation, and gold
RESEARCH
recoveries in a saleable copper concentrate and zinc concentrate.
Canada
• Environmental
• An environmental review was undertaken, including a site visit to gather relevant information. The review was based on the
current legislative context in Sudan and focussed on identifying fatal flaws and opportunities.
• Tailings Storage Facility
• Available topographical and geological data was also reviewed in order to locate potential suitable sites for a tailings
SA management facility, leading to the development of a preliminary design for the TSF.
Maelgwyn
Mineral Services • Gold recovery test work was further undertaken at MMS Africa (Johannesburg – South Africa) at the end of 2014.
UK, SA
Hadal Awatib Open Pit
Total Depth of Deposit
Hassai Underground Design
VMS Resources
 VMS Resources – 2.7 million tons
Million ton

1.3 560

TON
0.7
136

Cu Zn Au Ag
Resource Value Prices (2016) – US$ 12.7 B
Billion $

Billion $
6.3
4.8

1.3 0.3

Cu Zn AU AG
Processing Plant Flow Sheet
 Copper + Zinc mining & Copper plant Initial Capital Deferred Capital

CAPEX (-15% + 25%) Mining

Hadal Awatib Open Pit €43,423,215 €28,297,676
Hassai South Underground €0 €8,930,769
Hadal Awatib Infrastructure €3,742,308 €3,846
Zinc Only plant Initial Capital Deferred Capital
Hassai South Infrastructure €0 €1,519,231
Plant and Infrastructure Shared Infrastructure €1,419,277 €3,063,108
Subtotal €48,584,800 €41,814,630
Total Plant Direct Costs €21,887,086 €20,143,112
Plant and Infrastructure

Total Plant Construction €6,323,793 €3,226,425 Total Plant Direct Costs €64,879,080 €47,941,805
Total Plant Construction €18,711,855 €7,778,579
Total Off-Site Infrastructure €858,922 €598,083
Total Off-Site Infrastructure €20,846,827 €9,381,106

Total Plant and Administration Infrastructure €105,474 €105,474 Total Plant and Administration Infrastructure €4,497,401 €531,219

EPCM €4,668,044 €3,851,695 Engineering Procurement and Construction Management (EPCM) €16,648,826 €10,501,234

Project Indirect Costs €10,292,143 €5,763,882

Project Indirect Costs €1,364,686 €1,226,015
Plant and Infrastructure Contingency €22,457,454 €13,585,333
Plant and Infrastructure Contingency €6,076,447 €4,966,669 Subtotal €158,333,587 €95,483,158
Safety – Underground Mining
Total €41,284,451 €34,117,474
Power Plant Standby €298,219 €2,526,034
Subtotal €298,219 €2,526,034
€ 158

Initial
Tailings Storage Facility
Defered TSF Capital Cost €23,575,028 €18,613,097
TSF Consulting/Design Costs €422,000 €230,000
TSF Closure and Rehabilitation Costs €30,000 €6,005,085
€ 95

Aftercare Costs €0 €575,769

TSF Contingency €4,715,006 €3 722,619
Subtotal €28,742,033 €29,146,571
Water Management
€ 49

€ 42

€ 41

Pit Dewatering – Hadal Awatib €249,434 €448,966

€ 34

€ 29
€ 29

Pit Dewatering – Hassai South €0 €194,261

Pit Dewatering Contingency €24,943 €64,323
€3

€1
€0
€0

Flood Protection €165,846 €0

Subtotal €440,223 €707,549
MINING PLANT (CU) PLANT (ZN) POWER TSF WATER
Total €236,398,863 €169,677,941
 Investment Scenarios
o Capex: 406 M€  Two phases project No
Z01 o Plant: 5Mt tpa  Revenue: $ 3.6 B Zinc
o Products: Cu, Au, Ag  Net Cash flow: $ 1.1 B
Implementation
Ease of
Intensiveness

Small
o Capex: 236 M€ Plant  One phase project
Capex

Higher profitability
Z02 o Plant: 2.5M tpa  Revenue: $ 3.6 B No
o Products: Cu, Au, Ag  Net Cash flow: $ 1.3 B Zinc

o Capex: 481 M€ 
 Full
Full Scale
Scale two
two phases project
phases project
o Plant: 5Mt tpa 
 Revenue:
Revenue: $ $ 4.23
4.23 B
B Z03
Z03
o Products: Cu, Zn, Au, Ag 
 Net
Net Cash
Cash flow:
flow: $$ 1.37
1.37 B
B

o Capex: 278 M€  One phase project

o Plant: 2.5M tpa  Revenue: $ 4.2 B Z04 Small
o Products: Cu, Zn, Au, Ag  Net Cash flow: $ 1.7 B Plant
Financial evaluation of scenarios
NPV COMPARIZON DIF.SCENARIOS

483
431

378
339
M EURO
IRR comparizon dif.scenarios
IRR

20% 18.7%
18% 17.0%
16% 14.4% Z01 Z02 Z03 Z04
14% 12.6% SCENARIOS

12%
10%
8%
6%
4%
2%
0%
Z01 Z02 Scenarios Z03 Z04
 Z06 5M HAD Cu &Au
Smart scenario Z07 1.2M HAD Cu &Au

Comparing an exploitation of only high Cu grade

from depth of HAD by U/G
Versus bulk HAD with open pit i.e reducing the
tonnage to one third
and upgrading Cu grade to 3.6% instead of 1.4%
CAPEX Schedule (Z04) 481M€
200.0

180.0
168.9
160.0

140.0

120.0
114.2
108.7
M Euro

100.0

80.0

60.0
48.5
40.0
30.3
20.0
7.0
0.6 0.6 0.5 0.5 0.8 0.5 0.1
0.0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Years
Project Schedule

Commissioning complete/first production 22

Construction complete 21

TSF Construction complete 20

Mining Pre-Strip complete 15

TSF Design complete 6

Mine Fleet commissioned 6

Construction start 1

Procurement start 1

ESIA complete 0

0 5 10 15 20 25
Months
Production Plan PFS
Year mill feed Feed Grades Metal content in feed Metal products
kt Cu% Au g/t Zn Cu kt Au kg Zn kt Cu kt Au t Zn Kt
1 2,125 1.12% 0.94 0.51% 24 1,998 16.8 20 0.5 11.8
2 2,500 1.87% 0.93 0.47% 47 2,327 18.7 39 0.7 13.0
3 4,025 1.25% 1.23 0.39% 50 4,944 27.2 41 1.5 18.7
4 5,000 1.57% 1.17 0.39% 78 5,858 33.9 64 1.8 23.3
5 5,000 1.86% 1.18 0.39% 93 5,879 33.8 77 1.9 23.2
6 5,000 1.71% 1.24 0.40% 86 6,201 34.4 71 1.9 23.7
7 5,000 1.53% 1.24 0.39% 76 6,222 34.0 63 2.0 23.4
8 5,000 1.37% 1.16 0.40% 68 5,781 34.6 56 1.8 23.8
9 5,000 1.13% 1.07 0.43% 56 5,374 35.8 47 1.6 24.8
10 5,000 1.24% 1.08 0.46% 62 5,398 37.3 52 1.6 26.0
11 2,507 1.89% 1.00 0.48% 47 2,498 19.1 40 0.7 13.3
Total 46,157 1.49% 1.14 0.42% 688 52,480 326 569 16.0 225
Metal Production
120

100

80
Kton

60

40

20

0
1 2 3 4 5 6 7 8 9 10 11
Years

Cu kton Au t Zn Kton
Cash Flow

VMS Cashflow
400

292
300
267
245
225 231

195
200 178 171

108
M$

100

14
0
-1 0 -2
1 2 3 4 5 6 7 8 9 10 11

-100
-109

-169
-200
Years
Way Forward

Year 5
Upgrading to
Year 4 5Mt
Production
Year 3 2.5Mt
HAS U/G
Year 2 mining
Plant 2.5t
Year 1 Construction
Mining HAW
Start