MDEC 2018

S3P2 - 1

A LASTING IMPACT

ONAPING DEPTH PROJECT

SHIV SHARMADESIGNED FOR MDEC 2018

BHARTI SCHOOL OF ENGINEERING

SHIV SHARMAMINE ENGINEERING

LAURENTIAN UNIVERSITY

4TH YEAR STUDENT (2014 – 2019) MINOR: MATHEMATICS

TIMMINS WEST MINE, TAHOE RESOURCES (CO-OP)TIMMINS, ON CA

GROUND CONTROL & VENTILATION JAN – AUG, 2018

SHORT-TERM PLANNING & SURVEYING MAY – DEC, 2017

EMBRO OPERATIONS, FEDERAL WHITE CEMENTEMBRO, ZORRO COUNTY, ON CA

PRODUCTION & PROJECTS COORDINATOR SUMMER, 2016

MECHANICAL ENGINEERING INTERN SUMMER, 2015

SOURCE: OMA MINED COMPETITION, 2018

MDEC 2018

S3P2 - 2

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MDEC 2018

S3P2 - 3

OUR APPROACH TO MINING IS UNSUSTAINABLE.

THINGS HAVE TO CHANGE. FAST.

RESERVE GRADES +

PROJECTED LOM CAPEX & OPEX

AS MINING DEPTHS CONTINUE TO GROW…

…IMPEDIMENT TO ATTRACTING CAPITAL INVESTMENT.

MDEC 2018

S3P2 - 4

LEVERAGE ∝ ∆���������

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RISING COSTS ARE INCREASING LEVERAGE…

…INCREASING FCF SENSITIVITY TO COMMODITY PRICE-SWING CYCLES.

ONAPING DEPTH PROJECTSUDBURY INTEGRATED NICKEL OPERATIONS

ONAPING – SUDBURY, ON CA

General Information

• 11Mt OB between 2300mE – 2600mE

• Ni (HW) and Cu (FW) Sulfides

• Development decisions driven by geotechnical data

• Annual Prod. Target: 1.1Mt (3000tpd)

• 1.5Mtpa Skipping Capacity

• Max Stope Size: 15W x 25H x 20L (m)

• Target Prod. Rate: 1000t/stope-shift

• Fully Battery-Electric Mine

Details of Interest:

• Loading pocket at bottom of deposit

• No ore passes allowed (high stress conditions)

• Desire to improve productivity 3x

MDEC 2018

S3P2 - 5

MDEC 2018

S3P2 - 6

MDEC 2018

S3P2 - 7

MDEC 2018

S3P2 - 8

COST

AS MINING DEPTHS CONTINUE TO GROW…

…THESE FOUR FACTORS WILL BE THE PRIMARY DRIVERS OF CHANGE.

VENTGCOHS

IF YOU HAVE LARGE ROCKS BUT CANNOT DIG A LARGE HOLE…

…WHY NOT MAKE THE ROCKS SMALLER AND DIG A SMALLER HOLE?

MDEC 2018

S3P2 - 9

REAMED BOREHOLES (12 – 30”) AND IMPACTORs TO DROP BROKEN AND

CRUSHED MATERIALS

JUST IMAGINE USING…

…TO A CONVEYOR DRIFT AT BOTTOM OF MINE.

REAMED BOREHOLES (12 – 30”) AND IMPACTORs TO DROP BROKEN AND

CRUSHED MATERIALS

JUST IMAGINE USING…

…TO A CONVEYOR DRIFT AT BOTTOM OF MINE.

REPRESENTS AN 8-FOLD REDUCTIONIN HAULAGE COSTS.

MDEC 2018

S3P2 - 10

1. DECENTRALIZED CRUSHING ≫CENTRALIZED CRUSHING

2. DRILLING IS CHEAP LET’S TAKE ADVANTAGE OF IT.

PREMISE IS PRETTY SIMPLE…

A LESSON FROM SILICON VALLEY: SHIFT THE PARADIGM

METSO NP1110 IMPACT CRUSHER

MDEC 2018

S3P2 - 11

SANDVIK DU311 TKV ITH DRILL

COST OF TRUCKING

COST OF ‘THE LASTING IMPACT’

DIRECT SAVINGS

INDIRECT SAVINGS

TOTAL SAVINGS

IMAGINE A MINE WITH NO TRUCKS.

ELIMINATE A HEADACHE AND SAVE MONEY DOING IT!

TRIM THE FAT: REDUCE THE NEED FOR TRUCKING

$6.47/t

$0.77/t

$5.70/t

$1.30/t

$7.00/t

INDIRECT SAVINGS INCLUDES SMALLER CAPITAL EXCAVATIONS (I.E. RAMPS), LESS ROCKBREAKERS AMONG OTHER AUX EQUIPMENT BOUGHT TO ACCOMMODATE TRUCKING.

MDEC 2018

S3P2 - 12

90%REDUCTION IN ORE TRANSPORT COSTS VERSUS ELECTRIC TRUCK HAULAGE, OR SAVINGS OF $5.70/t.

30% 25%NEAR-MISSES TMIFR

ELIMINATION OF TRUCKS WILL IMPROVE U/G OHS BIG TIME!

150%INCREASE IN THE MINING RATE OF A STOPE, IMPROVING TONNAGE PER SHIFT FROM 400t TO 1000t PER STOPE.

$120MSAVINGS OVER A 11Y LOM BY SWITCHING TO THE LASTING

IMPACT , OR ~$7.00/t.

MDEC 2018

S3P2 - 13

INCREASE IN NPV = $90M

$120M IN SAVINGS OVER 11Y @ 5% DISCOUNT RATE…

…QUITE A LASTING IMPACT, NO?

NOTE: $120M WAS ANNUITIZED IN ORDER TO ARRIVE AT THE RESULT. RESULTS MAY VARY DEPENDING ON APPROACH USED.

MDEC 2018

S3P2 - 14

IF A PRODUCTION WINZE TO BOTTOM OF DEPOSIT EXISTS… ORE PASSES REMAIN METHODS OF CHOICE

IF NOT… A LASTING IMPACT IS RELATIVELY INEFFECTIVE

WIDE-SCALE IMPLEMENTATION POSES AN ISSUE…

…SO WHAT MODIFICIATIONS WILL IMPROVE CONCEPT ADAPTABILITY?

IF FEED FROM STOPE IS TOO:- HARD (E.G. PYROXENITE-HOSTED)…- ABRASIVE…- STICKY (E.G. PASTEFILL DILUTION)…

HIGHER MAINTENANCE COSTS + LOWER PRODUCTIVITY

WIDE-SCALE IMPLEMENTATION POSES AN ISSUE…

…SO WHAT MODIFICIATIONS WILL IMPROVE CONCEPT ADAPTABILITY?

MDEC 2018

S3P2 - 15

WORKS BEST IN SULFIDE DEPOSITS- BLOW BAR WEAR RATE IS LOWER

HAVE TO DRILL IN SECTIONS, LEVEL-BY-LEVEL- MAINTAIN DEVIATION RATE OF SUB-5%- HAVE TO CONNECT USING PIPING (SCHEDULE 80)

…SO WHAT MODIFICIATIONS WILL IMPROVE CONCEPT ADAPTABILITY?

WIDE-SCALE IMPLEMENTATION POSES AN ISSUE…

THANKS FOR LISTENING!