Final Feasibility of EOB PDF

Project No.
[400D-2019]
MCC Resources Development Company (Pvt.)
Limited
Feasibility Study Report on the

Project of Open-pit Mining of the
East Ore Body of Saindak
Copper-Gold Mine
China ENFI Engineering Corporation

October 2020
The intellectual property rights of the documents belong to China ENFI Engineering
Corporation.
Unauthorized modification or disclosure to any other organization or individual
without approval is not allowed.

Project No. [400D-2019]
MCC Resources Development Company (Pvt.)
Limited
Feasibility Study Report on the Project
of Open-pit Mining of the East Ore Body
of Saindak Copper-Gold Mine
China ENFI Engineering Corporation
General Manager: Wu Shaohui
Chief Engineer: Liu Cheng
Project Technical Director: Yu Changshun
Project Manager: Yu Changshun
Project Design Manager: Jiang Wei
October 2020
Disciplines and Participants
Discipline Approved by Reviewed by Lead Engineer Main Designer
Geology Guo Xudong Shi Benlin Wang Liyan Wang Liyan
Mining Wang Shuxun Jiang Wei Du Kun Du Kun
Mineral
Wu Qinghua He Rongquan Hong Baolei Hong Baolei
processing
Tailings
Zhou Jiguo Zheng Xuexin Guo Zhongyue Guo Zhongyue
engineering
General
Zhang Tao Wang Jian Zhao Zheng Zhao Zheng
layout
Water supply
Zhang Peihua Cong Renting Zhang Can Zhang Can
and drainage
Power supply Liu Xiaodong Wang Zhidong Shao Changfeng Shao Changfeng
CAPEX
Zheng Min Hou Jianxing Liu Jianling Liu Jianling
estimate
OPEX
Tang Yang Wu Nantong Li Yao Li Yao
estimate
Table of Contents
Chapter 1 General Introduction................................................................................ 1
1.1 Preparation basis................................................................................................. 1
1.2 Project background..............................................................................................2
1.3 Working scope......................................................................................................3
1.4 Main results of the study.....................................................................................4
1.5 Conclusions........................................................................................................ 11
1.6 Issues and suggestions.................................................................................... 12
1.7 Technical and economic indicators.................................................................12
Chapter 2 Copper Market Analysis........................................................................17
2.1 Copper resources status.................................................................................. 17
2.2 International copper market............................................................................. 18
2.3 Copper market in China....................................................................................20
2.4 Price of copper................................................................................................... 22
2.5 Copper price determination for the Project....................................................24
Chapter 3 Geological Resources........................................................................... 25
3.1 Design basis....................................................................................................... 25
3.2. Overview of the mining area........................................................................... 25
3.3 Regional geology............................................................................................... 28
3.4 Mining area geology.......................................................................................... 31
3.5 Ore deposit geology.......................................................................................... 38
3.6 Hydrogeological and mining technical conditions.........................................42
3.7 Ore deposit exploration and review................................................................ 43
3.8 Quantity of ore deposit resources................................................................... 45
3.9 Preproduction prospecting and production prospecting..............................48
3.10 Concerns and suggestions.....................................................................49
Chapter 4 Open-pit Limit.......................................................................................... 50
4.1 Selection of mining methods............................................................................50
4.2 Rock mechanics study...................................................................................... 50
4.3 Principle, method for open-pit limit delineation and economical stripping
ratio.................................................................................................................................78
4.4 Factors of the final slope.................................................................................. 83
4.5 Determination of open-pit final limit................................................................ 84
Chapter 5 Production Capacity, Working System and Service Life.............86
5.1 Determination of production capacity............................................................. 86
5.2 Verification of production capability................................................................ 86
5.3 Working system..................................................................................................87
5.4 Service life.......................................................................................................... 88
Chapter 6 Development and Transportation...................................................... 89
6.1 Selection of development and transportation schemes...............................89
6.2 Overview of development and transportation system..................................90
Chapter 7 Stripping and Equipment......................................................................93
7.1 Stripping process............................................................................................... 93
7.2 Drilling and blasting........................................................................................... 96
7.3 Shoveling............................................................................................................ 97
7.4 Transportation.................................................................................................... 99
7.5 Waterproofing and drainage in open pit.......................................................101
7.6 Auxiliary operation and equipment............................................................... 101
Chapter 8 Other New and Renovated Facilities...............................................102
8.1 General layout and transportation................................................................ 102
8.2 Tailings disposal facilities...............................................................................109
Chapter 9 Pre-production and Production Schedule.....................................127
9.1 Pre-production...............................................................................................127
9.2 Production schedule.....................................................................................128
Chapter 10 Investment Estimate..........................................................................131
10.1 Overview.........................................................................................................131
10.2 Issues and suggestions................................................................................134
Chapter 11 Technical Economy........................................................................... 135
11.1 Overview.........................................................................................................135
11.2 Capital use plan.............................................................................................135
11.3 Estimate of cost and expenses................................................................... 136
11.4 Sales revenue, tax and profit.......................................................................140
11.5 Analysis on financial profitability................................................................. 145
11.6 Uncertainty analysis......................................................................................149
11.7 Comprehensive evaluation.......................................................................... 150
Attached Drawing：
1. General layout
2. Open-pit mining ultimate pit
Project of Open-pit Mining of the East Ore Body of Saindak Copper-Gold Mine
Chapter 1 General Introduction

1.1 Preparation basis
Entrusted by MCC Resources Development Company (Pvt.) Limited, China
ENFI Engineering Corporation prepared this Feasibility Study Report on the
Project of Open-pit Mining of the East Ore Body of Saindak Copper-Gold Mine,
based on the design contract and design entrustment letter signed between
ENFI and MCC Resources Development Company (Pvt.) Limited.
The main basis for preparing the Feasibility study report is as follows:
1. Supplementary exploration data of the east ore body of Saindak Copper-Gold

Mine Project provided by MCC Resources Development Company (Pvt.) Limited
in December 2009;
2. The Design for Mine Exploration Program of the East Ore Body of Saindak
Copper-Gold Mine Project in Pakistan completed by China ENFI Engineering
Corporation in 2007;
3. The Basic Design for Saindak Copper-Gold Mine Project in Pakistan

completed by China ENFI Engineering Corporation (the former Beijing Central
Engineering and Research Institute of Nonferrous Metallurgical Industries) in
1991;
4. The data collected during the field investigation in July 2019 by China ENFI
Engineering Corporation.
5. The Detailed Geological Report on East Ore Block of Saindak Copper-Gold

Mine in Pakistan submitted by MCC Wuhan Surveying-Geotechnical Research
Institute Co., Ltd. in June 2019.
6. Contact letter on urging the completion of east orebody mining scheme design
requested by MCC Resources Development Company (Pvt.) Limited in July
2020.
7. Contact letter on the feasibility study of east orebody requested by MCC

Resources Development Company (Pvt.) Limited in July 2020.
8. Document “Table 8-25 Quantity of drill holes of the east orebody” submitted by
MCC Resources Development (Pvt.) Limited (MRDL).
9. Rock mechanics test and study on side slope stabilities of the east orebody in
Saindak project, Pakistan submitted by Changsha Institute of Mining Research
Co., Ltd in August 2019.
10. East Orebody Pre-feasibility Study --- Geophysical Prospecting Report on

Barren Site Verification for New Waste Dump and TSF Design by Wuhan
Surveying-Geotechnical Research Institute Co., Ltd of MCC in November 2019.
1
1.2 Project background

The Saindak Copper-Gold Mine was contracted for construction by MCC in the
early 1990s. The mine was completed and put into operation in 1995. The
designed production capacity for mining and beneficiation is 12,500t/d (4.25
million t/a) and the smelting capacity is 20,000t/a of blister copper. Among the
south, east and north orebodies of the Saindak Copper-Gold Mine, the ore grade
of the south orebody was the highest and the ore reserve was of medium scale.
Under the technical and economical conditions at the time, the mine could be
mined; the east orebody had large reserve yet low ore grade; the north orebody
had high ore grade yet a small scale of reserve; hence, the south orebody was
selected for mining designed, with the service life being 19 years.
Open-pit mining was adopted in the design of the south ore body. Conventional
horizontal bench mining was applied. After drilling-blasting of ore and rock, the
ore and block were loaded by an electric shovel and separately delivered to the
primary crushing station of the concentrator and the waste rock dump by dump
trucks. For mineral processing, three-stage one-closed circuit + ball milling +
flotation + thickening and dewatering process was adopted, and the ore mined
out from the open pit was crushed, ground before reporting to the flotation
process where copper concentrate, sulfur concentrate and iron concentrate
were generated and then being thickened and dewatered, after that, the sulfur
concentrate and iron concentrate were sold as final products while the copper
concentrate was delivered to the smelter built in the mining area. In the smelter,
the processes of reverberatory smelting + converter converting were adopted.
The copper concentrate produced in the concentrator goes through
reverberatory smelting and converter converting to produce blister copper which
contains about 98.5% Cu. After ingot casting, it would be sold as the final
product.
In the middle and later periods of 1990s, prices of copper metals were quite low.
Meanwhile, there was a lack of production and management experience in
mining, beneficiation and smelting of copper ore in Pakistan at the time. After the
mine was put into operation, it only lasted for a short period before production
was stopped and the entire enterprise was under the state of shutdown. For the
purposes of vitalizing assets of the mine, improving the worsening employment
status of Pakistan and supporting economic construction of the country, MCCT
signed a release operation contract for the mine with the Pakistan government in
2002 for mine reopening. The contract period was 10 years, i.e. till 2012. To
maintain normal production of the mine after the expiration of the contract, the
renewal lease operation contract was signed between MCCT and the Pakistan
government. The contract period will be lasted till 2023.
During the mining of the south ore body, reserves reduction of the ore body was
found during mining exposure and production exploration. Within the limit for
open-pit mining, the amount of minable ores beneath the +794m bench was
reduced for approximately 27.55%, which resulted in the shortening of service
life of mine.
2
To compensate for the shortened service life of the mine resulted by the
reserves reduction of the south ore body, make full use of the process facilities
and equipment for mining, beneficiation, smelting and the auxiliary production
system of Saindak Copper-Gold Mine, maintain long-term and stable production
of the mine as well as prolong the service life of the mine, MRDL has carried out
supplementary mine exploration for the deep part of south ore body, north ore
body and east ore body of Saindak copper-gold mining area. In addition, the
south ore body has been expanded to mine, develop and construct the north ore
body, increasing the amount of recoverable ore by 14.15 million t and extending
the service life by 4 years to 2021.
To further study the feasibility for developing and constructing the east ore body,
MRDL entrusted MCC Wuhan Surveying-Geotechnical Research Institute Co.,
Ltd. with further supplementary exploration of the east ore body in December
2018, and submitted the Detailed Geological Report on East Ore Block of
Saindak Copper-Gold Mine in Pakistan in June 2019, which improved the
exploration level of the east ore body. On this basis, MCC Resources
Development Company (Pvt) Limited entrusted SGS system on April, 2020 to
conduct assay on the gold grade of the east orebody and provide related info to
China ENFI Engineering Corporation as the basis for the preparing the
Feasibility study report on open-pit mining of the east ore body of Saindak
copper-gold mining area in Pakistan.
1.3 Working scope

According to the power of attorney on designing and the content and depth
requirements of the feasibility study, this task is mainly to study the development
plan and major technical issues of the east ore body of the Saindak Copper-Gold
mining area. Given that the characteristics of large reserves, low grade and The
deep burial of the orebody and the status of the enterprise, combined with the
nature, type, processing performance, external transportation, water source,
power supply and external cooperation conditions, and the supply and demand
status of the international copper metal market, the emphasis is placed on
issues like the development and construction scale, mining boundary, mining
technology, East Mine of the Saindak Copper-Gold Mine as well as its mining
follow-up to the south and north ore bodies and related preproduction works and
production schedules. At the same time, technical and economic analysis and
demonstration of major technical plans are carried out, and based on the current
various costs and expenses incurred in actual production in Saindak
Copper-Gold Mine, the investment and cost expenses estimation is carried out,
bu which preliminary analysis and evaluation of project economic benefits are
made, and preliminary opinions and suggestions on project construction are put
forward. The purpose of this feasibility study is to explore whether it is technically
feasible and economically reasonable to mine the east orebody of Saindak
Copper-Gold Mine as a subsequent mine of the open-pits in south and north
orebodies, and to assess its potential economic value for providing
decision-making basis for further work.
3
1.4 Main results of the study

1.4.1 Location, traffic and climate conditions of the mining area
Saindak Copper-Gold Mine is located in Chagai area of Baluchistan Province of

Pakistan, about 35km from the border town Kuh-i-Taftan, 325km from the
western city Dalbandin, 666km from Quetta, the capital city of Baluchistan
Province, and about 1500km from Karachi, the largest commercial port city in
the south of Pakistan. The geological coordinates of the mining area are:
East longitude: 61°34′-61°39′
North latitude: 29°13′-29°16′
Saindak copper-gold mining area is an old mining area which has been mined
for years. Asphalt roads are built from the site to Dalbandin. Between Dalbandin
and Quetta, Karachi and other major cities of Pakistan, there are also asphalt
roads. There are regular flights between Dalbandin and Karachi. Therefore, the
traffic is convenient (see Figure 1-1).
Saindak
Figure 1-1: Traffic location of Saindak cooper-gold mining area in Pakistan
1.4.2 Status of the enterprise and construction conditions
Since its completion and putting into operation, Saindak Copper-Gold Mine has
4
been in operation for 25 years. Despite of a long period of shutdown

(1996-2002), the mine has been in continuous operation for nearly 18 years
since the signing of the release operation contract in 2002. Till the end of
September 2020, the open-pit mining of the south ore body has reached the
elevation of +602m, only 24m away from the designed final mining elevation of
578m (2 benches, each bench 12m high). The open-pit mining of the north ore
body has reached the elevation of +825m, which means only a bench of the final
825m level is remained to be designed.
The amount of ore in the open-pit mining boundary of the south and north ore
bodies is about 1.6 million tons, and the amount of waste rock is about 800,000
tons. At the end of 2020 when the pit of the North orebody will be closed, while
the remaining ore quantity of the South orebody is about 800,000t, and the
waste rock is approx. 300,000t. By this point, the mining of the south and north
ore bodies will have been completed. During the resumption of production during
the initial period of leasing operation, the company invested part of the funds to
carry out the necessary maintenance and repair of equipment, workshops, etc,
and invested part of the funds during the production period to carry out the
necessary renewal and transformation of the production process and equipment.
On general, The company’s current main production equipment can meet the
production process requirements, the production capacity of the main stripping
equipment can reach 18 million t/a (some transportation equipment and
construction machinery need to be updated), and the processing capacity of the
concentrator can reach 5.25 million t/a of ore, and the largest annual output of
blister copper can reach 18,500t/a. However, the operating rate of equipment is
high due to reserves reduction of ore body and large stripping quantity at the
peak time of stripping. Meanwhile, as Saindak Copper-Gold Mine was built in
1990s, the main equipment wase designed and manufactured in the same
period. After 20 years’ technical progress, most equipment has been upgraded
or replaced. And most of the mechanical components or electronic elements are
either no longer produced or hard to purchase. For some electronic elements,
even if they can be purchased, the order must be made at least over a year
ahead of time. As a result, to ensure normal operation of the mine during the
release renewal period, the enterprise will update some mining equipment and
complete overhaul and modification of the key process system of the smelter.
After updating, modification, overhaul and replacement of part of the the unit for
meeting production requirements, main equipment and process system for
mining, mineral processing and smelting can satisfy the requirements for
production during the renewal period. At the same time, based on existing
production experiences, the normal operation of equipment requires
strengthened production management, sound equipment failure detecting
methods and measures, planned inspection as well as ordering spare parts in
advance to guarantee supply of spare parts.
According to the information of existing equipment provided by the enterprise,

the main equipment for mining, loading and transport of the mine for the moment
includes: 4 sets of Φ250mm rotary drills, 5 sets of 10m3 electric shovels, and 22
sets of self-dumping trucks (among which, 11 sets of 68t trucks and 11 sets of
91t trucks). Except for the 11 sets of 68t self-dumping trucks that have reached
their service life, the other equipment is basically intact.
5
At present, the open stopes of the south and north ore bodies have entered the
final stage of mining, and the demand for production equipment is gradually
decreasing. It is estimated that 2 sets ofΦ250mm rotary drills, 3 sets of 10m3
electric shovels and 10 sets of dump trucks will be required in 2020. In 2021,
there will be 2 sets of Φ250mm rotary drills, 2 sets of 10m3 electric shovels, and
5 sets of dump trucks. Therefore, there will be spare equipment in the mine. A
series of maintenance, repair, renovation and modification works have been
performed for all production systems (including mining, beneficiation, smelting,
tailings, water supply, power supply and maintenance, etc.) of Saindak
Copper-Gold Mine. At present, normal production of the mine can be basically
maintained. According to the statistical data on equipment operation provided by
the enterprise, most of the major equipment in mining, mineral processing,
smelting and power plants are in good condition. If the maintenance, repair and
overhaul is carried out normally, the normal operation of the existing equipment
and facilities of the enterprise can be ensured. Therefore, if the mining capacity
of the east ore body is no greater than that of the south ore body, the existing
mining, beneficiation, smelting and maintaining facilities can basically satisfy the
requirements for open-pit mining of the east ore body. However, as Saindak
Copper-Gold Mine has been under operation for years, it is planned that the
storage capacity of tailings pond will almost be used up till the end of 2015.
Although the negative alteration of ore bodies has reduced the amount of ore,
the remaining storage capacity of the tailings pond is very limited and a new
tailings pond needs to be built to mine the east ore body. 5 sets of heavy-oil
generator units in the power plant need to be repaired due to long-term
continuous operation and serious abrasion. Water supply pipelines and facilities
from the water source to the plant area and inside the plant are seriously
corroded and leaking, requiring a large amount of repair and maintenance work.
1.4.3 Geological resources
Saindak copper-gold deposit belongs to porphyritic rock, which was found by

Shahid Noor Khan in 1962. Copper ore body was found through drilling by
Mazhar Aslam in 1969. Exploration works were carried out during 1974-1976 by
RDC of Pakistan. According to the existing data, during the geological
exploration period, there are totally 39 drilled holes in the east ore body, 4200
collected copper analysis sample data and 2380 Mo analysis data.
To further find out the size of ore body and quality feature of ores of the east ore
body and improve the level of exploration of deposit, MRDL entrusted Sinomine
Resource Exploration Co., Ltd with the further exploration for the east ore body
from September 2007 to November 2008, during which 16 holes were drilled and
10595m of drilling work was done, and extension of main mineralized zone into
the deeper part was controlled.
We have not obtained any other information up till now except for the data of
space position of drilled holes and grade analysis. There is basically no data
about the drilling method and borehole aperture applied in exploration, rock/ore
core recovery rate, grade analysis method and data accuracy, typicality of
sampling, types and occurrence state of useful ores, distribution laws of geologic
structures in the mining area and the control on mineralization. Therefore, it is
6
impossible to evaluate the quality and reliability of the existing exploration works.
However, by comparing with the mining practices of the south ore body, the
fundamental geological data obtained for the east ore body are supposed to be
reliable and usable for further works.
See Table 1-1 for the estimated resources/reserves.
Table 1-1 Quantities of resources of different cutoff grades of the east ore body
Cu cutoff Cu (%) Resource (×104) t

0 0.358 33607
0.15 0.358 33601
0.2 0.359 33528
0.25 0.363 32316
0.3 0.383 26294
0.35 0.419 16192
0.4 0.464 8155
In February 2019, MCC Wuhan Surveying-Geotechnical Research Institute Co.,

Ltd. carried out geological exploration of the eastern ore section, completed field
work in May 2019, and submitted the Detailed Geological Investigation Report of
the Eastern Ore Section of the Sandak Copper and Gold Mine in Pakistan in
June 2019. See Table 1-2 for the completed physical workload.
Table 1-2 Statistical Table of Detailed Workload in East Ore Block
S/N Items Unit Workload Remarks

1 Core drilling m 7077.45
2 (Changed) core drilling m 2202.60
3 Mineral geology borehole logging m 9280.05
Completed by the
4 Trenching m3 1826.88
Owner
5 Trenching geology logging m 1522.4
Completed by the
6 Split core sample m 9726.28
Owner
7 Groove sample collection m 946.17
Completed by the
8 Engineering point surveying point 49
Owner
Rock and ore testing and
9 Pcs. 24
identification
Completed by the
10 Cu basic analysis Pcs. 3341
Owner
Internal examination analysis
11 Pcs. Au103、Cu277
(Cu, Au)
12 External examination analysis Pcs. Cu140、Au71
13 Composite analysis (Mo, S) Pcs. 335
Simple hydrological observation
14 Hole 41
of borehole
Collection of hydrological,
15 Batch 3
meteorological and seismic data
7
The Detailed Geological Exploration Report confirms that the ore deposit
exploration type is Type II. The proven resource amount is delineated at
engineering interval of 60m×50m and the controlled resource amount is
delineated at engineering interval of 120m×100m.
In June 2019, MCC Resources Development Company (Pvt) Limited submitted

the Detailed Geological Exploration Report on the East Deposit of Saindak
Copper-Gold Mine in Pakistan, which listed the index for the following resource
estimation: copper orebody (331+332+333) has a resource volume of 108.01
million t and copper metal volume of 515,166.80 ton, with an average grade of
0.48%; while low grade ore (331+332+333) has a resource volume of 249.9954
million ton and copper metal volume of 770184.02 ton, with an average grade of
0.30%.
The resource amount estimated in the Detailed Geological Report on East Ore
Block of Saindak Copper-Gold Mine in Pakistan is shown in Table 1-3.
Table 1-3 Resources Estimation Result Listed in the Detailed Exploration Report
on the East Deposit.
Average Grade Estimated Result

Grade Resource Type Ore tonnage (104t)
Cu (%) Cu (t)
331 17.31 0.50 868.50
Industrial 332 5226.24 0.49 253621.73

Ore 333 5557.44 0.47 260676.57
331+332+333 10801.00 0.48 515166.80
331 106.21 0.29 3116.81
Low 332 8029.37 0.30 238277.89

Grade 333 16863.97 0.31 528789.32
331+332+333 24999.54 0.31 770184.02
331 123.52 0.32 3985.31
Total 332 13255.61 0.37 491899.62
333 22421.41 0.35 789465.89
331+332+333 35800.54 0.36 1285350.82
1.4.4 Mining scheme
Because the open-pit mining of Saindak east ore body is follow-up works of
open-pit mining of the south and north ore body, the existing mining equipment
will be made use of and the mined ores are processed by the exiting
concentrator, production capacity of open-pit mining of the east ore body is
confirmed to be 4,250,000t/a·ores and 12,500t/d·ores according to production
capacity of the existing concentrator.
8
The east ore body belongs to large porphyry deposit. It has great ore
resources/reserves, low grade, thin overburden and outcrop exposed at local
place, so open-pit mining is applicable.
Final slope angle for open-pit is confirmed to be 45°~46° according to deposit

occurrence condition, physico-mechanical properties and stability of ore rock
and by referring to the actual slope angles of similar mines both at home and of
open-pit mining for Saindak copper-gold mine south ore body; and open-pit
mining preliminary limit of the east ore body is delineated by open-pit mining limit
defining software which uses maximization of net present value as objective
function.
The scoping results are: the upper opening of the open-pit limit is 920m in length
and 710m in width; the bottom of the limit is 195m in length and 65m in width; the
mining depth is 315m. The elevation at the bottom of limit is 640m, and that of
the closed loop is 910m. Within the limit, the total amount of ore-bearing rocks is
173.164 million ton, among which 85.595 million ton are ores with an average
grade of 0.375% Cu, and 87.57 million ton are waste rock with an average
stripping ratio of 1.02t/t.The service life is 20a(Excluding construction period).
According to geometry of the delineated open-pit mining preliminary limit for the
east ore body and ore rock transport conditions, road development and truck
transportation to the open pit mining is adopted; and the road is 20 m wide with a
maximum longitudinal grade of 8% and a minimum turning radius of 25m.
Traditional bench mining process is applied; the bench is 12m high; and slope
angle of the bench is 70°~75°. Steep slope stripping and gentle slope mining are
designed and applied according to deposit occurrence conditions in order to
further reduce stripping ratio in initial production period, balance product,
improve early ore output grade and economic benefit and ensure stable output
of mine. Minimum width of working panel for mining work is 45m; minimum
length of working line is 120m; working slope angle is <10°; minimum width of
working panel for stripping work is 45m; minimum length of working line is 120m;
bench width of gentle step is 25m; the number of the combined steps (at most) is
4; and stripping slope angle is <23°.
Step blasting uses a cone drill with a diameter of 250mm for perforation,
ammonium explosive or emulsion explosive blasting, and non-electric blasting
system for detonation. 10m3 electric shovels are employed for loading and 91t
self-dumping truck for transportation. Ores and rocks are loaded by the electric
shovels and directly transported to primary crushing stations or waste rock
dumps by the self-dumping truck.
Stripping amount for development of open pit is 772.4×104 m3, 2070×104 ton;
highway from the mining area to the waste rock dump is1.1km long and the
Pre-production period is 2a. The open-pit, after its development is finished, will
be put into operation immediately. To ensure a smooth follow-up to the open-pit
mining of south and north ore body, ore output in the first year is 425×104t;
designed production capacity is achieved; stable output period is 19a; and
output reduction period is 1a.
9
1.4.5 Other newly-built and modified facilities
Since the effective volume of the existing waste rock yard has been basically
used up to the end of the mining of the south ore body, the remaining total
storage capacity of the existing tailings pond is about 3,542.14×104m3, which
cannot meet the total tailing storage capacity requirements of the East Mine.
Hence new waste dump and tailings pond need to be built. The new waste dump
is located to the northeast of the east ore body in the valley that is about 500m
away from the open-pit mining limit of the east ore body.The designed pile
elevation is 980m.The effective capacity is above 5060×104 m3. Therefore, all of
the waste rock dumps stripped from open-pit mining of the east ore body can be
accommodated.
The new tailings pond, with total capacity of 4177.7×104m3, is located at the west
of the existing tailings pond and basically can meet the capacity needed by 20
years’ mining of the east ore body, calculated according to the final pile elevation
of 960m.
The initial dam of the new tailings pond is primarily estimated to be about 1309m
long; dam top elevation is 924m; the dam is about 16m high; and initial pond
capacity is about 308×104 m3.
1.4.6 Investment and economic effect
The total investment of the project is 45.472 million USD, with 44.037 million
USD being capital cost and 1.435 million USD being the interest during
construction period. As the continued mine construction, the existing production
capacity of the enterprise is not changed, neither is the working capital.
The investment of the project is estimated on the assumption that equity capital
accounts for 30% and the loan from bank takes up 70%. The annual interest rate
of long-term bank loan is 4.9 %.
After construction completion, the annual blister copper output is 13,284t, annual
operating revenue is 90,455,000 USD; total cost is 75,697,000 USD; operating
tax expense and additional expenses is 7,235,000 USD; total profit is 7,523,000
USD; Internal rate of return of project investment is 12.81%; and payback period
is 11.38 years. Main financial indicators of this project are shown in Table 1-4.
10
Table 1-4 List of main financial indicators
S/N Description Unit Quantity Remarks
1 Project investment
Financial internal rate of return % 12.81
FNPV (i=6.5%) kUSD 40731
Payback period (including infrastructure period) a 11.38
2 Capital
FNPV (i=6.5%) kUSD 41974
3 Return on investment % 13.07
4 Profit ratio of investment % 12.43
5 Profit and tax investment ratio % 24.39
6 Return on equity % 25.35
1.5 Conclusions
From the technical and economic analysis of the project, it can be seen that the
new total investment of the project is 45,472,000 USD, of which 44,037,000 USD
is new construction investment and 1,435,000 USD is interest during the
construction period. After the completion of the project, the average annual
output of blister copper is 13,284 ton (including 13,084t of copper, 182kg of gold
and 1971kg of silver), the average annual business revenue of the project is
90,455,000 USD, the average annual total cost is 75,697,000 USD, the average
annual operating taxes and surcharges are 7,235,000 USD, the average annual
total profit is 7,523,000 USD, the financial internal rate of return on the project
investment is 12.81%, and the financial net present value of the project
investment is 40,731,000 USD (I=6.5%), indicating that the project has good
economic returns.
From the previous analysis, it can be seen that Saindak Resources Company
can extend the service life by at least 20 years by tapping the potential of the
existing facilities to develop the eastern ore body resources and supplementing
the supply of ore raw materials. However, due to the unfavorable external
construction conditions such as low grade of resources, remote geographical
location of the mining area, underdeveloped transportation, lack of water and
electricity resources, the production cost of the enterprise is relatively high. It is
suggested to speed up the construction progress and control the investment
cost during the project construction. Besides, due to the high proportion of
energy cost in production cost, power sources can be compared to select a more
economical power source so as to reduce the operating cost as much as
possible and create conditions for the project to achieve the expected benefits.
11
1.6 Issues and suggestions

1. It is suggested further carrying out geological exploration as well as improving
the study on deposit mining conditions and mineralogical and metallurgical
properties of the ore before the project development.It is aimed at enhancing the
resources category and providing correct and reliable geological information for
deposit development design and future production.
2. The financial indicator of this Feasibility study report is obtained without

consideration of renovation of the existing beneficiation and smelting facilities.
The Saindak copper-gold mine has been in operation for 25 years. With potential
modification in future production, the economic benefit of project investment may
be reduced in future.
1.7 Technical and economic indicators

The scope of this project design is the east ore body mining project of Saindak
Resources Company, and the final product of the project evaluation is blister
copper. In order to follow the principle of consistent input-output caliber for
economic evaluation of construction projects, the mineral processing and
smelting processing costs are calculated and withdrawn with reference to the
current actual production costs of the enterprise, the mining costs are calculated
and withdrawn in reference to the actual current mining and stripping costs of the
enterprise, and the transportation costs are adjusted according to the actual
transportation distance.
Technical and economic indicators are shown in Table 1-5
12
Table 1-5 Major technical and economic indicators
S/N Indicator Unit Quantity Remarks

1 Geology Total resource Industrial Orebody
1.1 Ore tonnage 10 t 4
33607 13206
1.2 Average grade Cu % 0.358 0.373
1.3 Metal amount Cu t 1203131 492584
2 Mining
2.1 Total ore and rock tonnage within open-pit limit 104t 15447
Ore tonnage 10 t 4
8560
Rock amount 10 t 4
6887
2.2 Mine productivity Annual average in the year with stable output
Mining tonnage 10 t/a
4
1.25
10 t/a
4
425
Stripping tonnage 10 t/a
4
362
Stripping amount 10 t/a
4
787
2.3 Infrastructure stripping amount 10 t 4
2070
Including: ore amount 10 t 4
200
2.4 Mine infrastructure time a 2
2.5 Mine service years a 20
2.6 Mode of development Highway cars
2.7 Mining method Open-pit mining
2.8 Mining impoverishment rate % 3.0
2.9 Mining loss ratio % 3.0
13
Continued Table 1-5 Main economical indicators
2.10 Stripping/mining ratio in production period t/t 0.85
3 Beneficiation
3.1 Raw ore processing scale 104t/a 425
3.2 Mineral processing flow Three stage crushing with single closed circuit stage +grinding+flotation
3.3 Raw ore beneficiation feed grade Cu % 0.363
3.4 Mineral processing recovery percentage Cu % 87.00
3.5 Concentrate grade Cu % 22.5
3.6 Concentrate amount t/a 59644
3.7 Blister copper amount t/a 13284
Metal content in rough copper Cu t/a 13084
Au kg 182
Ag kg 1971
4 Investment Original investment of the company
4.1 Total investment kUSD 45472 15028
Including: construction investment kUSD 44037
Interest in construction period kUSD 1435
Working capital kUSD 15028
4.2 Source of funds
14
Capital kUSD 14646 15028
Long-term loans kUSD 30826
Loan for working capital kUSD
5 Costs Annual average in the year with stable output Total in calculation period
5.1 Total cost and expenses kUSD/a 75697 1519177
5.2 Operating cost kUSD/a 72919 1466400
5.3 Unit ore cost USD/t 17.81 17.75
Including: mining cost USD/t 2.99 2.93
Beneficiation cost USD/t 7.50 7.50
Smelting costs USD/t 2.46 2.46
Other costs USD/t 4.30 4.33
5.4 Unit rough copper cost USD/t 5698 5666
6 Operating revenue, taxes and profits Annual average in the year with stable output Total in calculation period
6.1 Business revenue kUSD/a 90455 1824839
6.2 Business tax and surcharges kUSD/a 7235 145967
6.3 Total profits kUSD/a 7523 159695
6.4 Income tax kUSD/a
6.5 Net profit kUSD/a 7523 159695
15
7 Economic benefits indicator
7.1 Project investment
Financial internal rate of return 12.81
FNPV (i=6.5%) kUSD 40731
Payback period a 11.38
7.2 Capital
Financial internal rate of return 15.58
FNPV (i=6.5%) kUSD 41974
7.3 Return on investment 13.07
7.4 Profit ratio of investment 12.43
7.5 Profit and tax investment ratio 24.39
7.6 Return on equity 25.35
7.7 Repayment period of loan a 8.81 Including infrastructure period
16
Chapter 2 Copper Market Analysis

2.1 Copper resources status
The content of copper in the crust is about 0.01%, and in some copper deposits,
the content of copper can reach 3% ~ 5%. Copper in nature mostly exists as a
compound, i.e. copper mineral. Generally speaking, the world is rich in copper
resources, with an estimated 3.1 billion tons of copper resources on land and
700 million tons of copper resources in deep sea nodules. According to the
statistics of the U.S. Geological Survey in 2019, the world's proven copper
reserves in 2018 are 830 million tons. Based on the world's copper mine output
in 2018 of 21 million tons, the static guarantee period of the existing reserves is
40 years.
The distribution of copper resources in the world is geographically unbalanced,

mainly concentrated in the west coast of North and South America, central Africa,
Central Asia and Siberia of Russia, followed by the Alps and the Middle East, the
southeastern United States, the southwest Pacific coast and its islands.
Internationally, the countries with the largest copper reserves in the world are
Chile and Australia, accounting for 21% and 11% of the world's basic copper
reserves respectively. Other countries with relatively large reserves include Peru,
the United States, Mexico, China, Russia, Zambia, Congo (DRC), Canada, etc.
See Figure 2-1 for details.
Figure 2-1 Schematic Diagram of World Copper Resource Distribution
17
2.2 International copper market

2.2.1 Copper production capacity and output
In the past ten years or so, the production capacity and output of copper mines
in the world have continuously increased. According to the statistics of the
International Copper Research Group (ICSG), in 2018 the global mine output
reached 20.57 million ton (metal tons, the same below), while the mine
production capacity reached 23.78 million ton, with a capacity utilization rate of
about 86.5%. Despite a slight fall in capacity in 2018, the higher mining rate after
the strike ensured that 20.57 million tons of copper ore was still produced that
year, increased by 2.7% compared with the same period of the previous year.
See Figure 2-2 for changes in copper production capacity and output in recent
years.
Year
Figure2-2 Changes in Global Copper Mine Production Capacity and Output from
2011 to 2018 (Source: ICSG)
2.2.2 Copper Smelting Capacity and Output
According to statistics made by International Copper Study Group (ICSG), the

global refined copper output in 2018 hit 24.1million tons, up by 2.55% than the
previous year, and the capacity utilization rate maintained at 85%. Among the
global refined copper output, that from China slightly increased by 60,000tons
and that from Chile was up by 30,000tons. See Figure 2-3 for changes in global
refined copper production capacity and output in recent years.
18
Year
Figure 2-3 Changes in Global Refined Copper Production Capacity and Output
from 2011 to 2018 (Source: ICSG)
2.2.3 International consumption of refined copper
With copper being a basic raw material, its consumption is closely related to the
development of world economy. From the distribution of global copper
consumption, copper consumption is mainly concentrated in two types of
countries or regions. One is the traditional western developed countries where
copper consumption is relatively stable. The other is the developing countries
and regions with fast economic growth. These countries and regions enjoy
higher growth rate of copper consumption, which has driven the growth of world
copper consumption in recent years.
Foreign refined copper consumption is mainly witnessed in mechanical

equipment and construction industry, accounting for 63% of the total
consumption in 2018, as shown in Figure 2-4.
Figure 2-4 International Copper Terminal Consumption Structure in 2018
19
According to the statistics of International Copper Research Group (ICSG), the

global consumption of refined copper in 2018 was about 24.5 million tons, slight
higher than that of 2017, with the consumption growth rate being about 3%, as
shown in Figure 2-5. Although China's economic restructuring and supply-side
reforms have led to a slight decline in the growth rate of copper demand which is
largely driven by investment and consumption, China and other developing
countries are still the main drivers of copper demand. Despite of a strong
momentum of recovery in Europe and the United States, the growth rate of
copper demand was mainly driven by domestic demand and registered a
year-on-year decrease due to factors such as the deceleration of real estate
investment growth and infrastructure investment’s failure of meeting
expectations in the U.S..
Figure2-5 Changes in Global Refined Copper Consumption and Growth Rate in

Recent Ten Years (Source: ICSG)
2.3 Copper market in China

2.3.1 Copper production capacity and output
According to the preliminary statistics of the National Bureau of Statistics (NBS),

China's copper concentrate output reached 1.51 million tons in 2018, down by
9% year on year, as shown in Figure 2-6. Given the provincial output, the total
output of China's top ten provinces in 2018 is 1.33 million tons, accounting for
88% of the national total, of which Jiangxi and Yunnan provinces have
copper-bearing output of more than 520,000 tons, and the output of the two
provinces together accounts for one third of the national output.
20
Year
Figure2-6 Changes of Copper Concentrate Output in China from 2010 to 2018
2.3.2 Import and export of copper concentrates in China
China is the world's largest consumer of copper, but its reserves and basic
reserves account for only 5.53% and 6.67% of the world's total respectively.
Although China ranks the third in the global market for its own copper
concentrate output, it is far from meeting the demand for domestic smelting
output and needs to import a large amount of copper concentrate every year.
According to China's customs data, China imported 16.96 million tons of copper
concentrate (physical tons) in 2016, with an external dependency of over 70%.
In 2017, China imported 17.35 million tons of copper ore (in kind) and exported
188 tons (in kind). Imported copper concentrate reached a record high of 19.72
million tons in 2018 in China, up 13.7% year on year. And the demand on
imports was predicted to continue raising in 2019.
Year
Figure 2-7 Imports of copper concentrates in China in recent ten years (104t
copper)
21
2.3.3 Copper smelting capacity and output
According to preliminary statistics of NBS, the domestic refining copper capacity

would reach 11.95 million tons in 2018, and the refined copper output would
reach 8.95 million tons, with a year-on-year increase of 0.67%. The capacity
utilization rate was about 75%, while the average capacity utilization rate of
countries exclude China was about 90%. From a regional perspective, the total
output of the top ten provinces with refined copper production contributed 7.86
million tons, accounting for 87% nationally. Shandong, Jiangxi and Gansu all
produced more than 1 million tons, with a total output of 3.87 million tons,
accounting for 43% of the national total. The three provinces continued to
consolidate their position as leading provinces in the copper industry. Especially,
Shandong accelerated its capacity expansion trend with obvious regional
advantage, as shown in Figure 2-8.
Figure 2-8 Production and Growth of Fine Copper in China from 2010 to 2018
2.3.4 Consumption of refined copper in China
China is the world's largest consumer of copper, accounting for about 50% of
global consumption. Whether China's copper demand is boosted is the key
factor affecting global copper demand. According to statistics, China consumed
12.48 million tons of refined copper in 2018, up 5.87% year on year. The
consumption of refined copper in China in recent years is shown in Figure 2-9.
2.4 Price of copper

The change of copper price is affected by multiple factors such as supply and
demand, exchange rate and speculative funds. At present, the larger copper
metal trading markets in the international market include London Metal
Exchange, New York Mercantile Exchange and Shanghai Futures Exchange.
And the prices published by London Metal Exchange are usually adopted as the
benchmark for copper imports and exports in international markets. In recent
years, with the increasing demand for copper in China's economic growth, the
volume of copper trading on the Shanghai Futures Exchange has continuously
22
increased and has become one of the world's major copper trading markets. As
China is a net importer of copper and the copper market is relatively open, the
copper price of the Shanghai Futures Exchange basically keeps pace with that
of the London Metal Exchange. The spot price changes of LME in the past 30
years are shown in Figure 2-10.
Year
Figure2-9 Changes of Refined Copper Consumption in China from 2010 to 2018
Year
Figure2-10 Copper price change chart in London Metal exchange spot
23
2.5 Copper price determination for the Project

According to the above mentioned analysis of supply and demand balance and
price trends in the copper metal market, the price of electrolytic copper is
determined as 6,500USD/t for evaluation of the project economic effect, and RC
as USD8.25 cents/1b. So the price of copper in blister copper is set at
6,318USD/t (2.86USD/lb), which is adopted as the long-term benchmark price
for project benefits measurement.
24
Chapter 3 Geological Resources

3.1 Design basis
The geological data on which the design is based are as follows:
(1) The Detailed Geological Exploration Report on the East Deposit of Saindak
Copper-Gold Mine in Pakistan submitted by MCC Resources Development
Company (Pvt) Limited in June 2019;
(2) The East Orebody Borehole Statistics-8-25.xls submitted by MCC Resources

Development Company (Pvt) Limited;
(3) Other basic information submitted by MCC Resources Development

Company (Pvt) Limited.
3.2. Overview of the mining area

3.2.1 Geographical location and general traffic survey of mining area
Saindak Copper-Gold Mine is located in Chagai District of Baluchistan, Pakistan,

and governed by Baluchistan. The mining area is adjacent to Iran to the west
and the south, with the shortest distance to the border being about 18 km. The
area borders Afghanistan to the north, with the shortest distance to the border
being about 40 km. The geographical extreme coordinates of the mine are
61°35′40″-61°37′00″E, 29°14′00″-29°18′30″N.
There are roads from Saindak Copper-Gold Mine to Quetta, capital of

Baluchistan Province, with a distance of about 670km; tar roads to Dalbandin
Airport with a distance of about 360 km; tar roads between Dalbandin and
Karachi, a port city in southern Pakistan, with a distance of 1,540 km, and
regular flights to and from the mining area; and roads from the mining area to the
nearest town of Taftan, with a distance of about 40 km. Transportation is
relatively convenient. The transport location is shown in Figure 3-1.
25
Figure 3-1 Topographic View of Saindak Copper-Gold Mine in Pakistan
3.2.2 General situation of physical geography and economy in mining area
Saindak Copper-Gold Mine is located in a semi-desert, Gobi desert hilly valley

surrounded by mountains, with bare surface, gentle terrain and wide vision. The
general terrain in the mining area is higher in the south and west, and lower in
the north and east. The highest point in the mining area is located at the west of
South Orebody with an altitude of 1,117.10m, and the lowest point is located at
the southeast of the map with an altitude of 906.40m, with the relative height of
210.70m and the morphologic region of shallow cut low-middle mountain Gobi
desert. Most of the valleys in the region are U-shaped valleys, with slopes
ranging from 10° to 20° generally and locally reaching 40° to 50°.
There is no long flow system in the mining area, only dry riverbed, with surface
water flowing from west to east during rainstorm.
26
The mining area belongs to subtropical desert climate with hot and dry climate,
with less rain, more wind and full sunshine. According to the statistical results of
meteorological data in recent years, the annual average temperature is 25.5°C.
The mining area is extremely hot in summer (June to August), with the normal
temperature of 35.5°C ± (the highest temperature found between 13pm and
18pm local time) and the extreme temperature of 48.5°C (occurred in June
2005). It has a big temperature difference between day and night. Winter is cold
(December to next February), with the lowest temperature as - 8°C which
generally lasts for less than one month.
The annual rainfall ranges 7.2mm-187.6mm, with an annual average at 60.2mm,

monthly maximum at 94mm, and daily maximum at 36mm. Because of drought
and rainless climate, there is basically no vegetation, and the area is frequented
by sandstorms that usually last for 1 to 4 days.
It is dominated by northwest wind, with an average speed of 1.5m/s~7.9m/s and

a strength generally below force 5. Occasional strong winds reached a
maximum speed of 10m/s.
The average annual humidity is 21.7%, which is about 11.5% higher at night than
in the daytime, 43.1% higher at night and 17.5% lower at night, 26.1% higher
and 9.2% lower at daytime. The humidity is highest in January and lowest in
August.
The mining area is located at the border of Afghanistan, Iran and Pakistan,
whose official language is English and the local language is Urdu, the
nationalities of which including Punjab, Sindh, Patan, Baluchistan and so on. Its
main religions are Islam and Christianity with various sects, and there are
complicated social situations, frequently nervous external security situations and
frequently poor transportation of materials.
The area is sparsely populated, mainly nomadic, supplemented by commerce

and trade, with only Saindak Copper-Gold Mine in industry. There is an important
border town 40km away from this area to the south, that is, Taftan which mainly
relies on trade.
Due to a severe lack of services in the periphery, the mine has built a power
plant with 5 generator units of 10,000kW/h and a water plant supplying
25,000m3/d production water and 1,240m3/d potable water. Their current
production has exceeded the designed capacity so far. The mine is now with
complete living facilities, logistics system and security measures.
3.2.3 Mining status of the mining area
Since May 2001, MCC Resources Development Company (Pvt) Limited (MRDL)
has invested several exploration periods in the south, north and east ore belts of
the Saindak Copper-Gold Mine, with the relatively high exploration degree in the
south and north deposits and that of the east deposit basically detailed.
At present, expansion mining is carried out in the south deposit of Saindak mine.
The extension boundary starts from 734m elevation, extending the mining depth
27
from 626m to 578m, in four steps. The total extension volume of ore and rock is
8.3045 million tons, of which 4.935 million tons are ore. The final boundary
bottom elevation is at the 578m step.
The north deposit of Saindak Mining is currently under open pit mining, which
had capital stripping completed in 2017 and start of operation in 2018. The
designed production scale of the north deposit is 2.64 million tons (8,000 t/d),
with an annual total of 9.34 million tons of mining and stripping, and a production
stripping ratio of 2.54 t/t. The amount of capital construction stripping and
by-product ore in north deposit is 4.776 million tons and 0.584 million tons
respectively. Its service life is 4 years (excluding Pre-production period), and
mining is expected to end in 2021.
The east deposit of Saindak is undeveloped, which is currently planned.
3.3 Regional geology

The mining area belongs to the Himalayan-Alpine fold zone, located in the
middle of the Turkey-Central Iran-Gangdise intermediate plate zone in the
middle Tethyan tectonic domain, sandwiched between the Afghan block in the
southern Eurasian plate and the Mokland flysch basin, which includes four
sub-tectonic units of Chagai magmatic arc, Saindak-Dalbandin depression,
Lasco uplift block and Mashkhel depression from north to south in sequence.
The metallogenic belt belongs to the Chagai metallogenic belt of Pakistan, a new
Tethyan porphyry metallogenic domain. The outcropped strata in this area are
mainly a set of sandstone, shale, limestone and intermediate-basic volcanic
rocks of the late cretaceous-tertiary. The late Himalayan magmatic activity in this
area is intense, which is mainly composed of
intermediate-basic-intermediate-acid volcanic eruption of calc-alkali series and
magmatic hypabyssal intrusion, and lithology is mainly andesite porphyry, diorite
porphyry, mica diorite porphyry and so on. With the eruption of a large number of
intermediate-basic volcanic magma, iron-copper ore deposits accompanied by
jet ore deposits and low-temperature hydrothermal ore deposits related to
volcanic rocks, porphyry copper (gold) ore deposits formed by the intrusion of
intermediate-basic rocks, and sandstone copper ore deposits in back-arc basins.
3.3.1 Regional strata
The main strata exposed in this area are Sinjrani Group of the Upper Cretaceous,
Humai Formation of the Upper Cretaceous, Juzzak/Rahkshani Formation of the
Paleocene, Saindak Formation of the Eocene, Amalaf Formation of the
Oligocene, Upper Oligocene Dalbandin Formation and Upper Oligocene-Lower
Miocene Reko Diq Formation.
3.3.2 Regional structure
The regional structure consists of a series of NW-trending linear folds and nearly
EW-trending and NW-trending faults, which includes the Saindak fault, Amalaf
fault and the Amalaf syncline (see Figure 3-2).
28
(1) Amalaf Syncline
Overall, it extends in the direction of 330°~320°, with the length of axis more
than 18 km, the north and west end of which is inclined, extending several
kilometers widely and gently. The synclinal axis passes through the working area
and its two ends both extend out of the working area. The core strata in the work
area are mainly the Tertiary Oligocene Amalaf Formation (E3a) and Eocene
Saindak Formation (E2s), and the flanks are the Tertiary Eocene Saindak
Formation (E2s) and the Paleocene Juzzak Formation (outside the mining area).
The west-wing dip angle averages 30°-40° and the east-wing dip angle averages
26°-29°. Due to activities and destruction of formation during multiple periods, it
has an incomplete form, and there is Late Oligocene-Miocene greisen diorite
porphyry stock and the vein and dike emplacement of andesite porphyry and
diorite porphyry at its core and two-wing part. The strata at the two-wing part
surrounding the greisen diorite porphyry at the core cause wide hydrothermal
alteration and hornfelsing alteration and bear minor fold, corrugate, etc.
Figure 3-2 Analytical Diagram of Satellite Images of Regional Structures
(2) Saindak fault (F1)
It is adjacent to the north side of the north deposit and extends in a wave-like
manner near East-West direction. The mining area and its surrounding areas are
in a reverse "S" shape, with the extension of more than 25 km on both sides of
the east and west. It gradually shifted from westward to northwest and into
interlayer sliding structures, and then to eastward into the desert. The area
29
intersects with the Amalaf fault and the Amalaf syncline. At the intersection, the
"greisen diorite porphyry" of the Saindak model intrudes. In terms of
geomorphology, it is a negative landform covered by the Quaternary. At the west
end of the fault, there are large horizontal dislocations, the maximum horizontal
fault distance is about 1,600m, the south wall moves eastward, and the north
wall moves westward, which is a left-lateral strike-slip fault. The fault is
characterized by multiple stages of activity, which can be divided into early,
middle and late stages, all of which are related to regional fold orogeny. The
early stage belongs to the formation of shear stress under the action of regional
NE-SW compressive stress, which has significant compressive-shear
characteristics. The middle stage is mainly characterized by tension, which
mainly controls the intrusion of inner porphyrite and porphyry in the area. The
later stage is mainly characterized by translational sliding, under lateral traction,
the andesite porphyry vein deflects westward in its south side and eastward in its
North side.
(3) Amalaf fault (FA)
Located in the middle of Saindak Copper-Gold Mine, it runs through the mining
area in a north-south direction, which is nearly vertical and obliquely intersects
with Amalaf syncline. Several branch faults were formed in the core of syncline,
which controlled the intrusion and localization of magmatic rocks in the area. The
convergence of the north and south flanks constitutes a bundle fault zone.
Geomorphologically, the terrain is negative, partly covered by the Quaternary
system. Along the branching fault zone, a series of andesite dikes are filled,
extending more than 10 km, and the eastern wall decreases while the western
wall rises. The fault is the most important rock-controlling (magmatic rocks)
structure in the area, which has the characteristics of multi-stage activity. In the
early stage, it was a tensional-shear structure under compressive stress of
regional fold orogeny. In the mid-term, with the intensification of orogenic
movement, the tectonic stress field at the junction with the core of Amalaf
syncline is affected by the formation strain of the core. The stress field extends
northwest-southeast, forming a relatively open space for the intrusion and
localization of diorite porphyry magma and greisen diorite porphyry magma.
After the emplacement of the ore-forming rock mass, the continuous orogenic
movement made the fault continue to move, continued the stress conditions of
the earlier stage, and a series of branching faults were formed by tension-shear
effect, which invaded and filled a large number of andesite porphyry veins along
the fault zone, and destroyed porphyry copper orebody. The activity of this
period ended before the late activity of Saindak fault.
3.3.3 Magmatic rocks
The Cenozoic Paleogene magmatic activity is frequent in this area, the main
magmatic activity occurred in the late Oligocene-Miocene, and the regional
magma evolved into collisional orogenic basic-
intermediate-basic-intermediate-acid magmatic activity. In the early stage, the
eruption of basic-intermediate basic magma in Oligocene Epoch formed the
wide distribution of tuff, basalt, intermediate-basic aggregate, andesite and
others (Amalaf formation strata). In the mid-term, with the continuation of
30
orogeny and the uplift of the block, magma ejection gradually evolved into
shallow intrusion, with intermediate-basic-intermediate-acid magma intrusion as
the dominant, followed by ejection, forming a volcanic-shallow intrusive rock
association, and forming porphyry copper-gold deposits in the shallow intrusive
rock body of intermediate-acid magma. Magma intrusion localization mainly
occurs in the core of anticline and syncline, forming a series of beaded rock
series along deep faults. In the late stage, andesite magma intruded along the
late tectonic fissures and destroyed the orebody.
3.3.4 Regional minerals
Located in the West Asia metallogenic belt of the Tethyan metallogenic domain,
this area belongs to the Chagai-Raskoh iron, copper and gold metallogenic belt
(Wu Liangshi, 2010). The regional structural features of the zone are generally
NW-trending, nearly EW-trending secondary faults. Strong tectonic deformation,
frequent magmatic activity and intense thermal fluid activity during
Oligocene-Miocene provide favorable geological conditions for the formation of
associated minerals. The known regional ore deposits are often concentrated
along a certain tectonic location (Figure 3-3). The main ore deposits in this
metallogenic belt are Reko Diq, Saindak, Chagai Hills, Chilgaz, Kohi-Dalil, Ziarat
Pir Sultan, Dasht-e-kain and other Large-super porphyry copper (gold) deposits.
Figure 3-3 Distribution Diagram of Major Porphyry Ore Deposits (points) in

Chagai Volcanic Magmatic Belt
3.4 Mining area geology

Saindak mining area belongs to porphyry copper ore deposit of calc-alkaline
series, which is divided into three deposits of south, east and north according to
rock mass and mineralization concentration area. The south deposit is adjacent
to the east deposit, and the north deposit is about 1.5 km north of them. The rock
31
mass in the south, east and north deposits occurs as stumps, while the rock
mass in the north deposit occurs as branches. The relative positions of the south,
east and north deposits are shown in Figure 3-4.
Figure 3-4 Relative Position Map of South, East and North Deposits in Saindak
Mining Area
The geological description of the east deposit is as follows.
3.4.1 Formation
The outcropped strata in the mining area are mainly Quaternary (Q), Oligocene
Amalaf Formation (E3a) and Tertiary Eocene Saindak Formation (E2s). Apart
from Quaternary (Q), there are dolomitic dioritic porphyry (stock) and andesite
porphyry, dioritic dike and dike intrusion. Among them, the Saindak group (E2s)
is the main invaded formation of porphyry rock mass in the mining area.
(1) Quaternary (Q)

32
Quaternary is widely developed, mainly distributed in the edge of the mining

area and nearby low-lying areas, which is flood, alluvium, residual and slope
alluvium, with the majority being flood and alluvium. It is composed of black ash,
green ash, light yellow and other miscellaneous gravel-bearing clay, gravel (rock
block) clay and so on, with loose structure. The main components of gravel block
are sandstone, shale, diorite porphyry, andesite, tuff and limestone. The
diameter of gravel is generally 3cm-10cm, and a small amount of gravel is
20cm-30cm. The exposed thickness of grooves and boreholes ranges from 0m
to 18.5m, with an average of 4.6m. It is in unconformable contact with underlying
strata.
(2) Tertiary Oligocene Amalaf Formation (E3a)
Amalaf Formation (E3a) is distributed in the northwest corner of the mining area,
which is mainly composed of gray green, gray crystalline tuff, tuff, volcanic
breccia and volcanic aggregate rocks, accompanied by andesite lava flow in
some sections. With thickness of 1 m~150 m. Integral contact with underlying
Saindak group.
(3) Tertiary Eocene Saindak Formation (E2s)
The Saindak Formation (E2s) is divided into three lithologic segments:
Upper member (E2S3): gray-green, brown, chestnut thin-medium siltstone, fine

sandstone with thin mudstone. It is distributed around the greisen diorite
porphyry in the middle of the mining area, with a thickness of more than 65m. It
is in conformable contact with the underlying middle segment (E2s2).
Middle Section (E2s2): Grey, grey-green thin-medium fine sandstone and

siltstone are sandwiched with multi-layered lime, grey, light brown-brown
bioclastic limestone, with a normal thickness of 1m~2m and a maximum
thickness of 5m. Fossils such as foraminifera, gastropods, bivalves, corals and
algae can be found in bioclastic limestone. It is mainly distributed in the eastern
part of the mining area, and a small amount in the southwestern corner of the
mining area, with a thickness of more than 178m. It is in integrated contact with
the underlying lower segment (E2s1).
Lower member (E2s1): gray-green sandstone with gray medium-thick layer,

gravel sandstone, sandy conglomerate and andesite with conglomerate. It is
mainly distributed in the eastern part of the mining area, with a thickness >150m.
It is in integrated contact with Juzzak Formation of underlying Rakhshani
sedimentary formation.
3.4.2 Structure
The mining area is located at the intersection of regional Amalaf syncline,

Saindak fault and Amalaf fault. The fault structure is relatively developed and
complex, and the secondary folds are not developed.
(1) Fold structure
33
The working area is located in the core of Amalaf syncline. The fold structural
elements are basically consistent with the region. The outcropping strata from
the core to the wing are basic volcanic rocks, Saindak sandstone and mudstone
in the Amalaf Formation in turn. Diorite porphyry, quartz diorite porphyry and
andesite porphyry dikes are abundantly developed in the core.
(2) Fault structure
Because of the Quaternary overlay on the surface, the main faults in the mining
area can only be deduced from trench and borehole exposure combined with
field investigation. The main faults are Saindak fault and Amalaf fault, whose
main characteristics are summarized as follows:
Saindak Fault: as the boundary structure of the mining area, it is adjacent to the
north deposit in the mining area, with the strike close to east and west, whose
tendency is not clear, showing an anti-S-shaped distribution. It has a
compressive-torsional left-lateral translation property. Amalaf fault branch faults
are developed on both sides of the north and south, and traction deformation is
caused by its translation. The fault is covered by surface flood and alluvium
without engineering exposure. The scale, occurrence and filling properties of the
fault zone are still unclear.
Amalaf fault: The fault runs through Saindak mining area in the North-South
direction, nearly vertical. The west wall rises and the east wall falls. It has
obvious tension-shear characteristics. The fillings of the fault are mainly rock
mass and dike. The "broom" fault groups converge southward and northward
respectively in the South and north sides of Shandake fault.
In addition, several faults are found in the periphery of the mining area through
surface investigation. As a fault fracture zone on the east side of east deposit,
the surface outcrop is longer than 100m and strikes 328°. Whether the fault
extends westward to the mining area is not clear for the time being. Structural
breccia can be seen through rock fragmentation in the fault zone. The breccia is
mainly composed of tuff and siltstone, subprismatic, siliceous and iron-muddy
cementation, and the cementation is relatively tight. The fracture bandwidth is
0.8m~1.0m (Figure 3-5). The fracture property is unclear.
34
Figure 3-5 Map of Fault Fracture Zone in the East Deposit of Saindak Mining
Area
3.4.3 Magmatic rocks
3.4.3.1 Volcanic rocks
It is mainly composed of andesite, tuff and agglomerate, etc. The rock

characteristics are as follows:
Anshan rock: light grey, purple grey, green grey, with massive structure and
obvious porphyry structure. Phenocrysts are mainly composed of plagioclase
(55%-65%) and amphibole (15%-20%). The matrix has glass-based interwoven
structure. The rocks are mostly altered, and the altered minerals are mainly
chlorite (8%-10%) and epidote (5%).
Tuff: grey, light green, yellow green, with block structure and tuff structure. It is
mainly composed of volcanic ash, volcanic dust, its hydrates and crystal debris.
Volcanic ash, volcanic dust and their hydrates account for 50%-60%, and are
mostly silicified and chlorite. Crystal debris consists of feldspar or quartz
(2%-35%) and amphibole (1%-5%).
Volcanic aggregates: grey, yellow-green, grey-purple, with block structure. It is

mainly composed of crystalline tuff, tuff and a small amount of lava. The size of
the block normally varies from 10cm to 20cm, and a small amount of 30cm to
50cm, with volcanic ash as the main cement.
3.4.3.2 Intrusive rocks
The main intrusive rocks in the mining area are Miocene

hypabyssal-ultrahypabyssal intermediate-basic intrusive rocks, which are weak
35
parts along the nearly east-west Saindak fault and the nearly north-south fault in
multiple stages. The intrusive rocks intrude into the sands and slates of the
Tertiary Eocene Saindak Formation in the northeastern flank of the core of the
Amalaf Syncline in the form of rock stumps, which is a "belt" shape in plane and
consisting of a single rock mass. The rock mass is in estuous contact with the
surrounding rock, and the surrounding rock is formed with amphibolization. The
main types of rock are tonalite-porphyry and a small number of andesite
porphyry, diorite porphyry, etc., therein, the tonalite-porphyry is the ore-bearing
parent rock. The characteristics of mica diorite porphyry series are summarized
as follows:
(1) Geological characteristics of rock mass
Exposed in the central part of the mining area, the porphyry bodies are sinistral
from south to north, with the trend from northeast to northwest. It is 400 m to 500
m wide in north and south, about 1,500m long in east and west, with the area of
about 0.70 km2. It is a "belt" shape in plane, and a dome shape with upward
convexity in profile, and in harbour contact with the siltstone of Saindak
Formation (E2s). There are apical pituitary and xenolith at the edge and top of
the rock mass, and the surrounding rock is strongly hornblended.
The rocks are strongly altered, with typical alteration zones of porphyry copper
ore deposits. From the center of porphyry body outwards, the zones are
potassium silicification zone, quartz sericitization zone and qingpan rock zone.
Metal sulfides are commonly found in potassium silicification zone and quartz
sericitization zone. Metal sulfides are relatively weak in Qingpan petrochemical
zone. Corneritization of surrounding rocks in outer contact zone is well
developed. Star-like or vein-like pyritization and chalcopyrite mineralization can
be seen.
(2) Rock type
The main types of rock cover tonalite-porphyry and diorite porphyry and so on.
Tonalite-porphyry: light gray, green gray and porphyritic textures, the matrix
presents phanerocrystalline texture and massive structures. The main
components of phenocrysts are plagioclase (medium feldspar, albite, 20%-30%),
quartz (5%-10%), amphibole (5%-10%) and biotite (5%-10%). The matrix is
feldspar (35%-40%), amphibole (15%) and biotite (5%), etc. The main
alterations are sericitization and silicification, followed by chloritization and
epidermization, and locally clayization and sodium epidermization. The auxiliary
minerals contain the magnetite, zircon, apatite, tourmaline, etc.
Diorite porphyry: gray, porphyritic texture, matrix with fine-grain-particle structure,

massive structures. The monotectic composition contains plagioclase (22%),
amphibole (<5%), matrix with plagioclase (65%), quartz (7%), amphibolite (1%),
potassium feldspar (micro), etc. The alteration of rock is dominated by
sericitization and sillitization, with secondary amphibolization in local area. The
accessory minerals are zircon, sphene, apatite, etc.
36
3.4.3.3 Dikes and dyke wall
The dikes and dyke wall vary in size, ranging in length from tens to hundreds of
meters, in width from tens of centimeters to tens of meters, and locally up to
hundreds of meters, cutting the NE-trending volcanic sedimentary rocks and the
NE-trending magmatic rocks. Geomorphologically, the dike wall and dikes are
protuberant.
(1) Dikes
The dikes are mainly andesite porphyry dikes, mainly distributed on both sides of
the Saindak fault in the central part of the mining area. Their intrusion period is
slightly later than that of the greisen diorite porphyry, and most of them intrude
along the fault surface.
The southern and eastern parts of the mining area are relatively small in size,
with a dike width of 3m~20m, extending nearly north-south and tending towards
south-east. The occurrence is steep, nearly upright and occurs along secondary
faults. The northern side of the mining area is relatively large, with an outcrop
length of 10m~150m, a small amount of 270m and a width of 0.5m~40m. Most of
the dikes are NNW-trending, inclined to NW and NE with dip angles of 70°~85°.
Rocks are mostly grey-green, yellow-green, grey, with block structure and
porphyry structure. The matrix is cryptocrystalline, and the phenocrysts are
plagioclase (plagioclase and feldspar, 28%) and amphibole (10%). The matrix is
quartz (56%) and biotite (5%).
(2) Dyke wall
Diorite porphyry is the main rock dike in this area, which distributes in the north
area of Saindak fault in the east of mining area. Most of the dikes extend in the
north-south direction, and are narrow in the south and wide in the north. The
outcrop length is generally 50m-500m and the width is 600m. The rocks are
mostly grey-dark gray, massive and porphyry, with feldspar (10%-20%) and
amphibole (1%-3%) as phenocrysts, feldspar (40%-50%), amphibole (3%-9%)
and chlorite (2%-15%) as substrates. Some feldspar and amphibole in the rocks
have been clayed, chlorized and carbonated.
3.4.4 Alteration zone and its characteristics
The alteration zones in the mining area are divided as follows:
(1) Potassium silicide zone (Kp)
The zone is divided into potassium silicification zone and weak potassium
silicification zone, only locally developed.
Potassium silicification zone: characterized by potassium metasomatism and

silicification, the rocks are generally red-brown-black-brown. The mineral
assemblage is feldspar-quartz-biotite-metal sulfide assemblage, which occurs as
vein-vein dissemination. The main metal minerals are pyrite, chalcopyrite and
37
magnetite, followed by pyrrhotite and porphyry. Gangue minerals include

feldspar, quartz, biotite, gypsum, apatite, zircon and so on.
Weak potassium silicification zone: Located between sericitization zone and

potassium silicification zone, characterized by weak potassium metasomatism
and silicification, a large amount of biotite and a small amount of quartz are
developed in altered rocks, and occasionally potassium feldspar is found. The
metasomatism of amphibole and plagioclase in matrix is inhomogeneous. The
silicification is weaker than the potassium silicification zone, and the
mineralization and mineral assemblage characteristics are similar to those of the
sericite zone.
(2) Sericite (sericite, quartz) zone (Phl)
Sericitization and silicification occur simultaneously in the belt. Plagioclase and

potassium feldspar in the original rocks are metasomatized by sericite and
quartz to varying degrees. The mineral compositions are mainly sericite and
quartz, and a large number of metal sulfide veins run through them. The
alteration zone distributes in the outer margin of the potassium silicide zone.
There is no obvious boundary between the two zones, and they overlap and cut
through in the transitional zone.
(3) Prophylitic zone (Prl)
The zone corresponds to the outer margin of porphyry, which is characterized by

cyanization. It is characterized by the metasomatism of minerals (chlorite,
epidote, pyrite, etc.) that make up the bluerock and the production of carbonate
veins. The appearance of chlorite, epidote masses or veins in the alteration zone
at the margin of the rock mass darkens the color of the rock. The mineralization
in the alteration zone is mainly vein-like ore bodies distributed in the adjacent
parts of the potassium silicification and sericitization zone. At the same time, it is
superimposed on other alteration zones to enhance mineralization.
3.5 Ore deposit geology

3.5.1 Orebody characteristics
Orebodies are generally gentle in shape, which mainly occur in sericitized zone,
weak potassium zone and strong hornblended siltstone in the contact area
between the greisen diorite porphyry and surrounding rock. Ore bodies generally
extend north-south under the control of rock mass shape, and are irregular in
plane and irregular in profile. Layer-like, thick plate-like, the edge of the orebody
often has bifurcation phenomenon. There are 98 boreholes controlled in the
orebody, the engineering spacing is 50m~100m, individual 200m, the
north-south direction of the orebody is about 900m, the east-west direction is
about 900m, the maximum vertical depth is 697.60m, and the lowest elevation is
150.84m. The thickness of ore bed ranges from 3.00m to 697.60m, with an
average thickness of 169.98m and a thickness variation coefficient of 87.36%.
The thickness variation is relatively stable. The copper grade of a single sample
is the highest of 2.48%. The average grade of orebody is 0.36%. The grade
38
variation coefficient is 65.99%, which is more uniform.
From 914.00m to 946.95m elevation, a small amount of oxidized ores can be

seen. The following are sulfide ores or mixed ores. The surface of some areas is
directly mixed ores or sulfide ores. The distribution of oxidized ore and mixed ore
is sporadic. The oxidation zone is generally 0.89m~18.62m thick with an
average thickness of 3.50m. The mixing zone is generally with a thickness of 0
m~42.00m, averaging of 6.62m.
The top and floor lithology of the orebody is dominated by mica diorite porphyry,
with a small amount of andesite porphyry and hornblended siltstone.
3.5.2 Alteration characteristics of surrounding rock
Surrounding rock alteration has typical characteristics of porphyry copper

alteration zone. Hydrothermal alteration is from weak to strong, and from inside
to outside is strong potassium silicification zone sericitization zone qingpan rock
alteration zone. Each zone has a gradual transitional relationship in space,
forming stratigraphic circle zoning characteristics in space. The altered
protolithology is mica diorite porphyry and sandstone and shale of Amalaf
Formation. The alteration zone is generally centered on the mica diorite porphyry
rock body (siltstone in some areas), which is characterized by central ring
alteration. The degree of mineralization gradually weakens from the central
potassium zone of the alteration zone to the propylitic zone.
3.5.3 Quality characteristics of ore
3.5.3.1 Mineral composition of ore
There are 14 kinds of metallic minerals and 18 kinds of gangue minerals (Table
3-1). Thereinto, metal minerals are mainly sulfides, oxides, natural elements and
carbonates; gangue minerals are mainly silicates, followed by sulfates,
carbonates, phosphates and oxides.
(1) Metal minerals
Sulfides: chalcopyrite (CuFeS2), porphyry (Cu5FeS4), pyrrhotite (Fe5S6-Fe16S17),

pyrite (FeS2), galena (PbS), sphalerite (ZnS), molybdenite (MoS2), etc.
Carbonates: Malachite (Cu2CO3 (OH) 2), chessy copper (Cu3 [CO3] 2 (OH) 2).
Silicates: Silica malachite (Cu, Al) 2H2Si2O5 (OH) 4. nH2O.
Oxides: magnetite (Fe3O4), hematite (Fe2O3), limonite (Fe2O3.nH2O).
Natural Elements: Natural Gold (Au).
(2) Gangue minerals
Silicates: plagioclase, albite, amphibole, potassium feldspar, biotite, tourmaline,

sericite, chlorite, epidote, sodium tetrahedrite, kaolinite, zircon, sphene, etc.
39
Sulfate: gypsum, anhydrite.
Phosphates: apatite.
Carbonate minerals: calcite.
Oxide: quartz.
Table 3-1 Mineral Composition Table of Ores
Mineral production
Major Minor Microscale
Category
Native
Native gold
element
Molybdenite,
Sulfuret Chalcopyrite and pyrite Pyrrhotite, bornite galena,
sphalerite
Oxide Quartz Magnetite, hematite
Endogenous Brazilian chrysolite,

mineral Anorthose, kieselspath, biotite, potassium feldspar, Ostranite,
Metasilicate
sericite, hornblende chlorite, epidote, aspidelite
saussurite
Sulfate Gypsum, anhedritite
Carbonate Calcite
Phosphate Apatite
Oxide Mountain brown ore

Surface
Metasilicate Silica malachite, kaolinite
mineral
Carbonate Malachite, chessy copper
3.5.3.2 Ore chemical composition
Though no ore samples are collected for bulk chemical analysis this time,
according to the rock test results of the north deposit (Kunming Prospecting
Design Institute, 2014), the components of the ores are mainly SiO2 and Al2O3
followed by TFe2O3, FeO, CaO, and MgO, and a small amount of K2O, Na2O and
SO3.
3.5.3.3 Associated beneficial components
In the Detailed Geological Exploration Report on the East Deposit of Saindak

Copper-Gold Mine in Pakistan submitted by MCC Wuhan
Surveying-Geotechnical Research Institute Co., Ltd., the comprehensive
utilization value of the associated Au and Mo could not be accurately assessed
then.
In the later stage, the associated Au was found to have an average grade of
0.134g/t in the resources with a Cu cut-off grade at 0.25% according to Table
8-25 Quantity of drill holes of the east orebody submitted by MCC Resources
Development Limited (MRDL).
40
3.5.3.4 Ore structure and texture
The ore textures are mainly crystalline texture and metasomatic texture, then
pressure texture, mischcrystal separation texture and hypergene texture.
The ore structure is relatively simple. The sulphide ore is mainly

veinlet-disseminated structure followed by disseminated structure and veinlet
structure, with brecciform structure being only found locally; Oxidized ore shows
soil-dust structure.
3.5.3.5 Ore type
The natural types of the ore in the east deposit are simple, most of which are
sulphide ore while only a small amount of oxidized ore and mixed ore exist at the
swallow part.
According to the ore rock type classification, the ores in the east block are mainly
"greisen diorite porphyry" copper ore followed by diorite porphyry copper ore and
keratite copper ore, and a small amount of breccia copper ore.
3.5.4 Wall rock and horsestone of ore body
The wall rocks of the ore body are mainly greisen diorite porphyry with a small
amout of andesite-porphyry, diorite porphyry and hornfelsing siltstone. The roof
and floor wall rocks have copper mineralization. There is gradual transition
between most of the wall rocks and ore body where the boundary line could only
be determined through chemical analysis. Only part of the transition shows
heterogenesis with clear boundary line. The wall rocks at the north and east of
the ore body are mainly greisen diorite porphyry, while those at the east and
south of the ore body are mainly greisen diorite porphyry and a small amount of
hornfelsing siltstone.
The horsestones in the ore body are usually distributed in the edge of the ore
body. Their lithologic character is mainly greisen diorite porphyry followed by
siltstone and a small amount of andesite-porphyry and diorite porphyry. The
alteration type of the horsestone is consistent with that of the ore, and the only
difference is its alteration intensity is slightly lower than that of the ore. There are
no distinct boundary lines between the ore body and the horsestones, and the
horsestones show low copper mineralization.
3.5.5 Technical feature of the ore processing
At present, no ore processing test has been carried out at the east deposit of
Saindak Copper-Gold Mine. By reference to the content about the technical
feature of the ore processing in the Detailed Geological Report about the North
Deposit of Saindak Copper-Gold Mine in Pakistan and Research report on small
scale mineral processing test about the North Deposit of Saindak Copper-Gold
Mine, combined with the production practice at the south deposit, the technical
features of the ore processing for the east deposit are concluded as follows:
(1) Adopt the flotation technology of "stage ore grinding-bulk flotation-Cu-S

41
separation" to realize effect recovery of copper, gold and sulfur. The ores in the
mining area are mainly sulphide ore, and the copper-bearing minerals are mainly
chalcopyrite. With good processing characteristics, the ores are of easier
processed copper ore.
(2) Following the coarse grinding of raw ores to the extent that -200 mesh
particle size accounts for 58.13%, regrind the rougher concentrate to the extent
that -320 mesh particle size accounts for 82.45% with once roughing and twice
scavenging, and then add lime (2kg/t) as the depressant of the pyrite for triple
cleaning. The closed-circuit test results of the middlings sequence return in the
process have shown a copper concentrate grade of 17.86% and a cupper
beneficiation recovery rate of Cu 76.43%.
3.6 Hydrogeological and mining technical conditions

The mining technical conditions of the ore deposit shall be evaluated through
comparing relevant materials about the north deposit and the south deposit.
3.6.1 Hydrogeologic conditions
The ore deposit of the east deposit locating at subtropical desert zone with dry,
hot and rainless climate is featured with atmospheric precipitation recharge,
weak diaclase and direct water recharge by waterbearing ground. Though its ore
body locates in a hilly riverbed area, its main ore body is above the local erosion
basis, resulting that it has no perennial surface water, thin quaternary system
and poor groundwater recharge conditions. The complexity level of the
hydrogeological prospecting carried out in the mining area is of simple.
According to the actual production at the south deposit over the past many years,
there is basically no water inflow at the bottom of the open pit.
3.6.2 Engineering geologic conditions
In the mining area, the landform is simple, the formation lithology is relatively
simple, the geologic structure is relatively developed, and the local fracture zone
is relatively developed; the rocks are broken and the rock masses are mainly
bearing massive texture. Most of the rocks making up the orebody and the wall
rock are weak in hardness, with zone of weathering, alteration zone and contact
zone being of the zones that are prone to occur mine engineering geological
problems. The complexity level of the mine engineering geological exploration is
of middle.
3.6.3 Environmental geology type
The mining area shows sparse vegetation, bared rock mass, and weathering
and short-term runoff eroded natural slope and serious soil erosion, and exits
some small-scaled landslides and dangerous rock bodies. Part of the ores have
high sulfur element content. The main causes of the environmental impact by
mining are the secondary side slopes and geological environmental problems
resulted from open-pit mining. The geological environment of the mining area is
of second type.
42
Based on the hydrogeological, engineering geological and environmental

geological conditions of the mining area, the mining technical condition is
comprehensively determined as a simple to medium type having mainly
engineering geological and environmental geological problems.
3.7 Ore deposit exploration and review

(1) From 1962 to 1964 when the areal geological mapping was carried out in
Chagai District of Baluchista, Shahid Noor Khan found the existence of copper
greisen diorite porphyry intrusive bodies in Saindak area.
(2) From 1965 to 1966 when the mineral survey was conducted in Saindak area,
with the drilling depth of 213.36m in the construction, the Cu-Fe sulfides were
found, and through rock core sample analysis, nickel, lead, zinc and cadmium
were also found. The investigation work points out the existence of copper
porphyry deposit at the southeast of Saindak, which failed to cause attention.
(3) In 1968, the copper mineralized and altered rock mass (mainly greisen diorite
porphyry) in Saindak area was preliminarily delineated through earth resources
exploration satellite imagery and aerial survey.
(4) In 1969, Mazhsr Aslam found porphyry copper orebody through drilling
during construction.
(5) From 1971 to 1974, the geological exploration work was completed in
Saindak.
(6) From 1974 to 1976, the National Geological Survey Department of Pakistan
implemented further exploration work in this area, which was completed by
Pakistan Resources Development Company (RDC). During this period, the
geological survey preliminarily determined the rough size, shape, mineralization,
alteration and other features of the south deposit, north deposit and east deposit
in the Saindak mining area.
(7) From 2007 to 2008, Sinomine Resource Exploration Co., Ltd carried out
exploration works at the east deposit by drilling 16 new holes on the basis of the
(39) original holes and completing a drilled footage of 10,595m. At the same time,
MCC Resources Development Company (Pvt) Limited drilled 2 holes by itself
and completed a drilled footage of 648.40m.
(8) In 2018, Wuhan Surveying-Geotechnical Research Institute Co., Ltd. of MCC

Group carried out mineral and prospecting work at the south deposit and the
area between the north deposit and the east deposit of Saindak Copper-Gold
Mine by drilling 5 holes with a workload of 3,522.90m, and testified the presence
of diorite porphyry at the lower part of the North Waste Dump of the mining area.
It was preliminarily determined through the work that, at the area, including the
east deposit, the south deposit and the north deposit, there is an intact
north-to-south distributed diorite porphyry rock mass, that is consistent with the
surface low-lying land area in direction, of about 1km ~ 2km in width under the
earth's surface of 400m~600m in depth. Besides, the prospective areas of the
43
future prospecting works was also determined.
(9) In February 2019, Wuhan Surveying-Geotechnical Research Institute Co.,

Ltd. of MCC Group carried out geological exploration of the east deposit,
completed field work in May 2019, and submitted the Detailed Geological
Exploration Report on the East Deposit of Saindak Copper-Gold Mine in
Pakistan in June 2019. See Table 3-2 for Material workload completed.
Table 3-2 Physical Workload Statistics of Detailed Geological Exploration Report

on East Deposit
S/N Items Unit Workload Remarks
1 Core drilling m 7077.45
2 (Changed) core drilling m 2202.60
3 Mineral geology borehole logging m 9280.05

Completed by the
4 Trenching m3 1826.88
Owner
5 Trenching geology logging m 1522.4
Completed by the
6 Split core sample m 9726.28
Owner
7 Groove sample collection m 946.17
Completed by the
8 Engineering point surveying point 49
Owner
Rock and ore testing and
9 Pcs. 24
identification
Completed by the
10 Cu basic analysis Pcs. 3341
Owner
Internal examination analysis
11 Pcs. Au103、Cu277
(Cu, Au)
12 External examination analysis Pcs. Cu140、Au71
13 Composite analysis (Mo, S) Pcs. 335

Simple hydrological observation
14 Hole 41
of borehole
Collection of hydrological,
15 Batch 3
meteorological and seismic data
The Detailed Geological Exploration Report confirms that the ore deposit
exploration type is Type II. The proven resource amount is delineated at
engineering interval of 60m×50m and the controlled resource amount is
delineated at engineering interval of 120m×100m.
Through the above geological work, the types and scale of magmatic rock and
the lithologic distribution characteristics related to metallogeny are basically
identified; the metamorphism and alteration characteristics related to
metallogeny and their relationship with mineralization are basically identified;
through systematic sampling project, the scale, shape, occurrence, thickness
and grade change of orebody are basically detected; the lithological distribution
of the horse stone and the roof and floor host rocks of the orebody are basically
44
identified; the development degree and scope of the oxidized zone of the ore
deposit are basically identified; the types and contents of ore minerals and
gangue minerals and the structural characteristics of the ore are basically
detected.
At present, a detailed exploration report on the east orebody has been submitted.
It is suggested to further carry out geological exploration and upgrade the level
of resources; advance the work related to hydrogeology research in the mining
area, identify the recharge and discharge conditions of underground water, the
main factor of ore deposit water filling, and evaluate the degree of influence on
the mining of the ore deposit; strengthen the work related to engineering
geological research in the mining area, conduct the work related to engineering
geological division of petrofabric in the mining area, measure the mechanical
properties of main rocks and ores, and study their stability; identify the
distribution of fractured crushing belts, joints and fissures in the mining area, and
evaluate their influence on the slope stability of open pit; strengthen the research
on ore beneficiation and metallurgy performance; provide accurate and reliable
geological data for ore deposit construction and design.
3.8 Quantity of ore deposit resources

3.8.1 Industrial index
The industrial index of the east deposit was determined in accordance with
Detailed Geological Report on East Ore Block of Saindak Copper-Gold Mine in
Pakistan.
Cut-off grade: Cu≥0.25%;
Lowest industry grade: Cu≥0.40%;
Lowest minable thickness: 2m;
The rock eliminating thickness: 4m.
3.8.2 Quantity of resources submitted in the detailed exploration report
In June 2019, MCC Resources Development Company (Pvt) Limited submitted

the Detailed Geological Exploration Report on the East Deposit of Saindak
Copper-Gold Mine in Pakistan, which listed the index for the following resource
estimation: copper orebody (331+332+333) has a resource volume of 108.01
million tons and copper metal volume of 515,166.80 tons, with an average grade
of 0.48%; while low grade ore (331+332+333) has a resource volume of
249,995,400 tons and copper metal volume of 770,184.02 tons, with an average
grade of 0.31%.
See Table 3-3 for resources estimation result listed in the Detailed Geological
Exploration Report on the East Deposit of Saindak Copper-Gold Mine in
Pakistan.
45
Table 3-3 Resources Estimation Result Listed in the Detailed Exploration Report
on the East Deposit.

Cu (%) Cu (t)
331 17.31 0.50 868.50
Industrial 332 5226.24 0.49 253621.73

Ore 333 5557.44 0.47 260676.57
331+332+333 10801.00 0.48 515166.80
331 106.21 0.29 3116.81
Low 332 8029.37 0.30 238277.89

Grade 333 16863.97 0.31 528789.32
331+332+333 24999.54 0.31 770184.02
331 123.52 0.32 3985.31
Total 332 13255.61 0.37 491899.62
333 22421.41 0.35 789465.89
331+332+333 35800.54 0.36 1285350.82
Table 3-4 Estimation of oxidized ore resources in the detailed exploration report
on the east deposit

Cu (%) Cu (t)
332 4.07 0.34 138.32

Low
333 7.33 0.35 256.64
Grade
332+333 11.40 0.35 394.96
332 4.07 0.34 138.32
333 7.33 0.35 256.64
332+333 11.40 0.35 394.96
3.8.3 Estimated quantity of resources for this Design
This Design established a resource model based on the drilling data listed in the
Detailed Geological Exploration Report on the East Deposit of Saindak
Copper-Gold Mine in Pakistan submitted by MCC Resources Development
Company (Pvt) Limited in June 2019 and other basic data submitted by MCC
Resources Development Company (Pvt) Limited. Estimation of resources
delineated with Cu 0.25% as the cut-off grade.
46
3.8.3.1 Template parameter
See Table 3-5 for template parameters of the resource model.
Table 3-5 Model template parameter
Lower left east coordinate of the model 122400
Lower left north coordinate of the model 572600
Top right east coordinate of the model 100
Top right north coordinate of the model 124300
Top elevation of the model 574200
Lower elevation of the model 1000
Columns of the model 38
Rows of the model 32
Number of level 45
Length 50
Width 50
Height 20
3.8.3.2 Estimation parameter
The search ellipsoid parameters applied in the estimation are as follows:
The first search ellipsoid: 130m×110m×10m (strike × dip × thickness);
Number of Cu samples: at least three quadrants, and minimum one sample for
each quadrant, with a total of at least three samples and at most 32 samples;
Valuation method: inverse distance squared method adopted;
Valuation object: Cu;
The second search ellipsoid: 260m×220m×20m (strike × dip × thickness);
Number of Cu samples: at least one quadrant, and minimum one sample for
each quadrant, with a total of at least one sample and at most 32 samples;
Valuation method: inverse distance squared method adopted;
Valuation object: Cu;
3.8.3.3 Quantity of resources estimated in this Design
The estimated quantity of resources in the east deposit of Saindak copper-gold
47
mine in this Design is 336.07 million t, with an average Cu grade of 0.358%.

Specifically, the above resources are controlled at 132.06 million ton, with an
average Cu grade of 0.373%; the inferred resource is 204.02 million ton, with an
average Cu grade of 0.345%; and the associated Au has an average grade of
0.134g/t.
See Table 3-6 for different cut-off grade resources of Saindak's east orebody
estimated in this design, and see Figure 3-6 for tonnage grade curve.
Table 3-6 Resources of Saindak's east orebody estimated at different cut-off

grades
Cu cutoff Cu (%) Resource (×104)t
0 0.358 33607
0.15 0.358 33601
0.2 0.359 33528
0.25 0.363 32316
0.3 0.383 26294
0.35 0.419 16192
0.4 0.464 8155
Figure 3-6 Tonnage Grade Curve of Saindak's East Deposit
3.9 Preproduction prospecting and production prospecting

3.9.1 Supplementary prospecting
A detailed geological report on the east deposit of Saindak Copper-Gold Mine

has been provided. Before the next stage of design work is carried out, it is
suggested to carry out supplementary prospecting work in the mining area to
provide reliable geological data for the development of the ore deposit.
48
Supplementary prospecting adopts surface drilling, of which the prospecting grid

density is 60m×50m.
It is estimated that the workload of supplementary prospecting is as follows:

surface drilling of 6,000 m in depth; core sampling of 3,000 pcs; basic analysis of
3,000 pcs, with Cu as its analysis object; composite sample analysis of 300 pcs,
with Mo as its analysis object; internal inspection analysis of 300 pcs and
external inspection analysis of 150 pcs.
3.9.2 Preproduction prospecting
The purpose of preproduction prospecting is to satisfy the upgrade of geological

resources required by the reserve ore quantity for the mine construction and
operation, and to provide reliable geological data for ensuring the normal and
sustainable production of the mine after operation. Preproduction prospecting
should be based on the principle of mining after exploration to ensure the
smooth construction by reducing stripping amount of capital construction.
Based on the supplementary prospecting, it is estimated that the workload of

preproduction prospecting is as follows: surface drilling of 4,600m in depth; core
sampling of 1,800pcs; basic analysis of 1,800pcs, with Cu as its analysis object;
composite sample analysis of 180pcs, with Mo as its analysis object; internal
assay analysis of 180pcs and external assay analysis of 90pcs.
3.9.3 Production prospecting
Production prospecting refers to the continuous geological prospecting work

carried out according to the mining needs in the process of mine production. Its
purpose is to meet the upgrading requirements of mining reserves for geological
ore quantity, to provide reliable geological basis for the preparation of short-term
mining progress plan, and to ensure the normal and continuous production of the
mine.
Estimated workload of prospecting during mine production is as follows: surface

drilling of 2,000m/a; core sampling of 800 pcs/a; basic analysis of 800 pcs/a,
with Cu as its analysis object; composite sample analysis of 80 pcs/a, with Mo as
its analysis object; internal inspection analysis of 80 pcs/a and external
inspection analysis of 40 pcs/a.
According to the present situation at Saindak, there will be no additional

surveyors and equipment.
3.10 Concerns and suggestions
The Detailed Exploration Report of the Saindak East Orebody has been
submitted. It is suggested further carrying out geological exploration as well as
improving the study on deposit mining conditions and mineralogical and
metallurgical properties of the ore before the project development. It is aimed at
enhancing the resources category and providing correct and reliable geological
information for deposit development design and future production.
49
Chapter 4 Open-pit Limit

4.1 Selection of mining methods
East Orebody of Saindak deposit is a porphyry copper deposit of large scale and
low grade. Currently, exploration works carried out have certified that the
mineralization of the orebody is uniform, and the grade of copper in most
orebody is 0.358% Cu-0.419% Cu. There is a little amount of gold and
molybdenum in the ore, the gold grade is 0.314g/t, and the grade of
molybdenum is low and below the grade requirement for comprehensive
recovery.
In Table 3-6, it is seen that when the cut-off grade is 0.20% Cu, the ore tonnage
is 335,280,000t with an average grade of 0.359% Cu. As the cut-off grade
increases, and the average ore grade gradually increases, and accordingly the
ore tonnage declines distinctly. When the cut-off grade is 0.25% Cu-0.40% Cu
and added 0.05% Cu at a time, the ore tonnage will decrease by 18%-50%,
while the average grade of ore only increases by 5%-10%. When the cut-off
grade is 0.40% Cu, the ore tonnage is 81,550,000t with an average grade of
0.464% Cu, while the average grade of molybdenum and gold almost does not
change too much. Meanwhile, in terms of space distribution characteristics, the
ore grade is high in upper space while low in lower space. Apart from that, there
is traces of high-grade ore above the closed level elevation of 910m (about
757,000t, average grade of 0.386% Cu), and the average grade of the ore
increases gradually with declining of the level elevation. Thus it is seen that the
mineralization of orebody is very uniform in East Orebody of Saindak deposit,
with grade of most ore under 0.40% Cu, and thus it can only be mined by the
open-pit method with relatively low production cost.
4.2 Rock mechanics study

Wuhan Surveying-Geotechnical Research Institute Co., Ltd. of MCC Group
completed the Detailed Geological Exploration Report on the East Orebody of
Saindak Copper-Gold Mine in Pakistan in July 2019. One month later, Changsha
Institute of Mining Research Co., Ltd. completed the Rock Mechanics Test and
Study on Side Slope Stabilities of the East Orebody in Saindak Project, which
conducted detailed study on the engineering geologic conditions and stability
assessment of the side slope within the design limit of the East Orebody of
Saindak deposit.
The basis for this rock mechanics design of the feasibility study of East Orebody
is Detailed Geological Exploration Report on the East Orebody of Saindak
Copper-Gold Mine in Pakistan (hereafter referred to as Detailed Exploration
Report) and the Rock Mechanics Test and Study on Side Slope Stabilities of the
East Orebody in Saindak Project (hereafter referred to as Side Slope Study
Report).
50
4.2.1 Rock stability geology
The Saindak Copper-Gold Mine is located in the wast of Chagai volcanic

magmatic belt of Pakistan, a main part of the Tethyan metallogenic domain
(Richards et al., 2012), an extension of the Sahand-Bazman copper belt of Iran.
The two belts joined the Pontides belt of Turkey in the west and the Bangonghu,
Gangdise and Yulong copper belts of China in the east, together forming the
main porphyry copper belt of Tethyan metallogenic domain (Lv Ruipeng et al.,
2015).
Saindak mining area belongs to typical porphyry copper ore deposit of

calc-alkaline series, which is divided into three orebodies of south, east and
north according to rock mass and mineralization concentration area. The south
orebody is adjacent to the east orebody, and the north orebody is about 1.5km
north of them. The ore-bearing rock mass in the area is in bay contact with the
surrounding rock, and 3 larger rock stocks (apophysis) are exposed, which are
generally distributed in a near north-south strike, forming an irregular "gourd"
shape. The rock mass of the north orebody occurs as apophysis, while that of
the south and east orebodies as stock.
The outcropped strata in the mining area are mainly Quaternary (Q), Oligocene
Amalaf Formation (E3a) and Tertiary Eocene Saindak Formation (E2s). Apart
from Quaternary (Q), there are dolomitic dioritic porphyry (stock) and andesite
porphyry, dioritic dike and dike intrusion. Among them, the Saindak group (E2s)
is the main invaded formation of porphyry rock mass in the mining area. 4.2.1.1
The structural system, fault, fracture zone and joint distribution in the mining
area
The mining area is located at the intersection of regional Amalaf syncline,

Saindak fault and Amalaf fault. The fault structure is relatively developed and
complex, and the secondary folds are not developed.
(1) Fold structure
It is located in the core of Amalaf syncline. The fold structural elements are
basically consistent with the region. The outcropping strata from the core to the
wing are basic volcanic rocks and Saindak sandstone. Diorite porphyry and
andesite porphyry dikes are abundantly developed in the core. Due to the failure
and reconstruction of the fault in the later stage, the fold features are not
obviously demonstrated.
(2) Fault structure
Because of the thick Quaternary overlay on the surface, the main faults in the
mining area can only be deduced from trench and borehole exposure combined
with field investigation. The main faults are Saindak and Amalaf, whose main
characteristics are summarized as follows:
1) Saindak Fault: as the boundary structure of the mining area, it is adjacent to

51
the north orebody in the mining area, with the strike close to east and west,
whose tendency is not clear, showing an anti-S-shaped distribution. It has a
compressive-torsional left-lateral translation property. Amalaf fault branch faults
are developed on both sides of the north and south, and traction deformation is
caused by its translation. The fault is covered by surface flood and alluvium
without engineering exposure. The scale, occurrence and filling properties of the
fault zone are still unclear.
2) Amalaf fault: The fault runs through Saindak mining area in the North-South
direction, nearly vertical. The west wall rises and the east wall falls. It has
obvious tension-shear characteristics. The fillings of the fault are mainly rock
mass and dike. The "broom" fault groups converge southward and northward
respectively in the South and north sides of Shandake fault. Previous data
(Kunming Survey and Design Research Institute of China Non-ferrous Metals
Industry, 2014) suggests that the fault characterized by multi-stage activity. The
spacial position released in the early stage under compressive stress of regional
fold orogeny, formed favorable tension setting, and may served as direct channel
for early intermediate-basic magma eruption. In the mid-term, as the earth's
crust rises, magma activity gradually evolved from eruption to intrusion, which
created a more favorable tension space under the dual control of oblique strata
and rock deformation. A large number of intermediate-basic-intermediate-acid
rock bodies invaded and settled along the fault. At a later stage, the continuous
orogenic movement made the fault continue to move, and a series of branching
faults were formed also of tension-shear characteristics. They cut early rock
mass, invaded late andesitic vein and dike, and destroyed the mineraliferous
rocks and ore bodies.
In addition to the two main fractures, i.e. the Sandak Fracture and the Amalaf
Fracture, some andesite porphyry veins of generally 3-12m width have been
uncovered based on part of the borehole logging. As there is no obvious
mineralisation difference between andesite porphyry and tonalite porphyry, and
there is a lack of systematic geological work and test data, the nature, yield and
stage of the fault cannot be accurately determined, so the impact of the fault on
the ore body cannot be accurately assessed either.
In addition, several faults are found in the periphery of the mining area through
field investigation of surface. For example, of the fault fracture zone found on the
east side of the east orebody, the surface outcrop exceeds 100m, with a 328°
strike and about 83° inclination. It remains unclear currently whether the fault
extends westward to the mining area. Structural breccia can be seen through
rock fragmentation in the fault zone. The breccia is mainly composed of tuff and
siltstone, subprismatic, siliceous and iron-muddy cementation, and the
cementation is relatively tight. The fracture zone is 0.8m-1.0m wide, with its
fracture property unidentified.
Refer to Figure 4-1 for distribution of regional fault structure.
52
Figure 4-1 Analytical Diagram of Satellite Images of Regional Structures
4.2.1.2 Hydrogeological conditions
The complete hydrogeological work has not been conducted on the East
Orebody of Saindak deposit and only simple hydrological observation of
boreholes drilled during exploration has been carried out. The hydrogeological
conditions of East Orebody are specified in the detailed survey report as follows:
East Orebody located at the subtropical desert zone with dry, hot and rainless
climate is characterized by atmospheric precipitation recharge and direct water
supply by weak aquifers (permeable strata) in structural fissures. The orebody
locates in a hilly riverbed area, and main orebody is above the local erosion base
level, featuring no perennial surface water, thin Quaternary system and poor
groundwater recharge conditions. The complexity level of the hydrogeological
prospecting carried out in the mining area is of simple.
4.2.2 Physico-mechanical properties of ore rocks
A systematic indoor testwork of physico-mechanical parameters of ore rocks has

been conducted during slope research at East Orebody. A total of 6 kinds of tests
have been carried out on samples with various lithology, including uniaxial
compressive strength test, Brazilian tensile strength test, elastic modulus and
Poisson’s ratio, triaxial compression test, direct shear test of discontinuities, and
strength test under point load. These tests have provided basis for reasonable
slope rock mass parameters at the East Orebody of Saindak deposit. Refer to
Table 4-1 for test results.
53
Table 4-1 Summary of ore rock’s physico-mechanical parameters

Uniaxial compressive Brazilian Shearing strength of Shearing strength
Elastic modulus (GPa) Poisson’s ratio
Volumetric strength (MPa) tensile rock of discontinuities
S/N Group weight strength
Saturated Saturated Saturated
(kg/m3) Dry state (MPa) Dry state Dry state C (MPa) Φ (°) C (MPa) Φ (°)
state state state
1 PS 27.25 57.77 22.74 5.26 69.45 36.58 0.168 0.308 15.94 44.21 2.327 39.0
2 SS 27.17 40.52 23.16 5.08 48.55 50.38 0.208 0.335 9.22 38.14 0.931 38.2
3 POS 48.42 4.04 6.99 57.78
4 PT 27.43 55.44 42.86 5.67 78.90 36.25 0.289 0.315 12.09 41.65 4.552 30.9
5 ST 26.27 47.97 23.72 3.01 37.28 22.93 0.322 0.290 10.56 42.57 1.463 40.8
6 POT 99.36 8.28 14.34 57.80
54
4.2.3 Preliminary geologic classification of rock mass (orebody)
To determine the engineering geologic conditions of slope rock mass at the East
Orebody of Saindak deposit and analyze geological stability of slope, the
exploration of slope geologic conditions has been conducted. According to
distribution of open-pit slope lithology, 7 boreholes are designed and arranged.
4.2.3.2 Division of geological petrofabric
Based on real conditions of East Orebody of Saindak deposit, the overall

orebody occurrence conditions, geological structure as well as distribution and
alteration of country rocks, given physical and mechanical indexes of rocks, the
slope research report divides rocks in the mine area in accordance with their
structure, transformation properties and combination patterns. Rock mass at the
East Orebody is divided into 6 groups: propylitization siltstone (PS), sericitized
siltstone (SS), potassiumized siltstone (POS), propylitization tonalite-porphyry
(PT), sericitized tonalite-porphyry (ST), and potassiumized tonalite-porphyry
(POT). Refer to Table 4-2 for properties of each group.
Table 4-2 Properties of slope petrofabric at East Orebody
S/N Group Property

The rock mass is mainly grey green and consists of main minerals such as
feldspar, quartz and mica. Drill cores are slightly weathered and subjected to
further weathering after exposure of slope. Joint fissures develop and joint
planes are straight and dry. There are two groups of fissures with steep dip
1 PS angle of 45-90 degrees, as well as a nearly horizontal fissure. Fissures have an
aperture of 1-5mm and are filled mostly by gypsum followed by pyrite,
chalcopyrite and a small part of clay minerals. Rocks are relatively hard, pretty
complete and of stratified and block structure. The calculated RQD value of
boreholes is 74%.
The rock mass is mainly off-white, relatively complete and of stratified and block
structure. Drill cores are mostly in the shape of short column, and part of them
are fragmented due to argillization. The strength decreases remarkably in water,
2 SS and main minerals in these cores are feldspar, quartz and mica. Joint fissures
are highly developed and filled mostly by gypsum followed by pyrite,
chalcopyrite and a small part of clay minerals. The calculated RQD value of
boreholes is 67%.
The rock mass is mainly grey and grey brown, relatively complete and of high
strength. Potassic alteration is the main alteration type and hornfelsing can be
seen in some rocks. The rock mass is of stratified and block structure. Joint
fissures are relatively developed, and weak chalcopyrite mineralization can be
3 POS
found. Stockwork chalcopyrite is distributed along fissures and in some parts,
chalcopyrite filling is dotted and sparsely disseminated. Stockwork gypsum is
distributed along fissures and relatively developed. The strength of POS is
higher than those of PS and SS. The calculated RQD value of boreholes is 72%.
The rock mass is mainly grew, slightly weathered, composed of such main
minerals as hornblende, plagioclase and quartz, and of stratified and block
structure. Phenocryst contains euhedral to subhedral crystals with grain sizes of
4 PT 1-2mm and content of 15%, and its matrix is mainly feldspar. Fissures with
aperture of 1-4mm develop and are filled mostly by gypsum followed by pyrite
and chalcopyrite. Rocks are hard, relatively complete and in the shape of short
column and long column. The calculated RQD value of boreholes is 78%.
55
S/N Group Property

The rock mass is mainly light grey and of stratified and block structure. Main
mineral components include plagioclase, quartz and hornblende. The off-white
phenocryst in the shape of short column is mainly composed of feldspar with
grain sizes of 2-3mm and has a high euhedral degree Medium to weak
chalcopyrite mineralization can be seen, and stockwork and disseminated
chalcopyrite develops continuously in the vein material, with a width of 1-4mm.
5 ST
Joint fissures with aperture of 2-10mm develop. Fissure planes are irregular,
uneven and filled with gypsum, so the occurrence is mostly nearly horizontal
with low dip angle. As for colorless and transparent gypsum with a width of
0.4-6cm, most is vertical and pectinate, and in the center of partial gypsum vein
material, aggregation of patchy chalcopyrite and pyrite develops. The rock mass
is relatively complete and the calculated RQD value of boreholes is 79%.
The rock mass is mostly light grey and contains such main minerals as
plagioclase, quartz, hornblende, sericite as well as a small amount of biotite.
The off-white phenocryst is mainly composed of feldspar with grain sizes of
1-2mm. Due to alteration, some feldspar turns into sericite and epidote, while
some near the fissure plane turns into clay minerals. There is a high content of
matrix, mainly feldspar; medium to weak chalcopyrite mineralization can be
seen, featuring stockwork and disseminated chalcopyrite in most parts and
dotted one in some parts. Joint fissures develop, and so do symmetric
6 POT chloritization, epidotization and clayization in fissures with dip angle. Fissures
are filled by chalcopyrite and pyrite, and stockwork and fine-granular
molybdenite can be found occasionally. Fissure planes occur in the nearly
horizontal level, mainly filled by gypsum. Rocks undergo strong biotitization and
silicification, potash feldspathization develops in some fissure planes, and
incarnadine potassium feldspar can be seen. The rock mass is relatively
complete and its strength is higher than those of PT and ST. The calculated
RQD value of boreholes is 78%.
4.2.3.2 Rock quality classification
The slope research report adopts RQD, RMR and CSMR classification methods
for quality classification of slope rock mass at the East Orebody. Results can be
found from Table 4-3 to Table 4-5.
Table 4-3 RQD index classification
Lithology PS SS POS PT ST POT

RQD
74 67 72 78 79 78
average
Rock
Ⅲ Ⅲ Ⅲ Ⅱ Ⅱ Ⅱ
quality
56
Table 4-4 RMR system classification
Lithology PS SS POS PT ST POT

Uniaxial compressive MPa 57.77 40.52 48.42 55.44 47.97 99.36
strength Rating 7 4 4 7 4 7
RQD % 74 67 72 78 79 78
(%) Rating 13 13 13 17 17 17
Spacing of m 0.10 0.08 0.10 0.11 0.12 0.11
discontinuities Rating 8 8 8 8 8 8
Length (m) 1~3 1~3 1~3 1~3 1~3 1~3
Rating 4 4 4 4 4 4
Aperture (mm) 1~5 1~5 1~5 1~5 1~5 1~5
Rating 1 1 1 1 1 1
Slightly
Roughness Slightly rough Slightly rough Slightly rough Slightly rough Slightly rough
rough
RMR Joint conditions Rating 3 3 3 3 3 3
system Hard filling Hard filling
Infilling Hard filling <5mm Hard filling <5mm Hard filling <5mm Hard filling <5mm
<5mm <5mm
Rating 4 4 4 4 4 4
Moderately Moderately Moderately
Weathering Slightly weathered Slightly weathered Slightly weathered
weathered weathered weathered
Rating 3 3 3 5 5 5
General conditions Dry Dry Dry Dry Dry Dry
Groundwater
Rating 15 15 15 15 15 15
Rating adjustment for Strike and dip Favorable Favorable Favorable Favorable Favorable Favorable
joint orientations Rating -5 -5 -5 -5 -5 -5
RMR 53 50 50 59 56 59
Classification Ⅲ Ⅲ Ⅲ Ⅲ Ⅲ Ⅲ
Quality Fair Fair Fair Fair Fair Fair
RMR classification results indicate that all groups are Class-III fair rock.
57
Table 4-5 CSMR system classification
PS SS
Lithology POS PT ST POT
RMR value 53 50 50 59 56 59
Conditions of  Joint Joint Joint Joint Joint Joint

discontinuities
Rating 0.7 0.7 0.7 0.7 0.7 0.7
F1 Favorable Favorable Favorable Favorable Favorable Favorable
Rating 0.4 0.4 0.4 0.4 0.4 0.4
Rating F2 Favorable Favorable Favorable Favorable Favorable Favorable

adjustment for
discontinuities Rating 1 1 1 1 1 1
CSMR
Classification F3 Very favorable Very favorable Very favorable Very favorable Very favorable Very favorable
Rating 0 0 0 0 0 0
Rating Pre-splitting Pre-splitting Pre-splitting
F4 Pre-splitting blasting Pre-splitting blasting Pre-splitting blasting
adjustment for blasting blasting blasting
slope
Rating 10 10 10 10 10 10
excavation
CSMR 46.0 44.0 44.0 50.1 48.1 50.1
Classification Ⅲ Ⅲ Ⅲ Ⅲ Ⅲ Ⅲ
Quality Fair Fair Fair Fair Fair Fair
CSMR classification results indicate that all groups are Class-III fair rock.
58
4.2.4 Engineering geological zoning of slope
After comprehensive consideration of various influence factors of slope at the

East Orebody of Saindak deposit, the slope research report divides slope into
four geological zones, i.e. I, II, III and IV. Refer to Table 4-6 and Figure 4-2 for
features of these zones.
Table 4-6 Engineering geological zoning of slope
Slope
Zone Slope area elevation Lithology & description Failure
(m)
This zone’s lithology is mainly PS,
featuring developed joint fissures filled by a
large number of gypsum and good
Circular failure
Eastern consolidation of fissure planes. The overall
Ⅰ 950m~638m Plane failure
slope strength of rocks is relatively high and
Wedge failure
several nearly vertical small-sized faults
develop in the slope, resulting in limited
effect on slope stability.
There is little borehole information related
to this zone. The lithology of occurrence is
mainly PS and gradually transits to ST as
slope benches go down. Joint fissures
Circular failure
Ⅱ SE slope 950m~638m develop and are filled with gypsum, while
Wedge failure
some are filled with argillaceous materials.
Since the rock mass is subjected to
evident softening in water, the overall
strength is fair.
This zone has an evident transition pattern
of lithology and alteration. From inside to
outside, alteration zones are successively
strong potassium silicification zone,
sericitization zone and propylitization zone, Circular failure
Western
Ⅲ 950m~638m and lithology transits from porphyryto to Plane failure
slope
siltstone. Joint fissures develop and are Wedge failure
filled with gypsum, but they have good
consolidation and good shearing strength
of discontinuities, leading to relatively good
overall strength of rock mass.
This zone is mainly of tonalite porphyry
and partially invaded by siltstone. The
alteration type is mainly sericitization. Drill
cores are fragmented. Joint fissures
Circular failure
Ⅳ NW slope 938m~638m develop and fissure planes are filled with
Wedge failure
gypsum or argillaceous materials. Since
the rock mass is subjected to evident
softening in water, the overall strength is
fair.
59
Figure 4-2 Engineering geological zoning of slope at East Orebody
4.2.5 Slope stability analysis
Based on field geological investigation at the East Orebody of Saindak deposit,

laboratory test results and slope geological zoning results, the slope research
report has selected 8 sections for stability calculation and established a
calculation model. The limit equilibrium method is adopted for slope stability
calculation and analysis, providing basis for optimization of slope parameters.
4.2.5.1 Working conditions and safety factor
According to Technical Code for Non-coal Open-pit Mine Slope Engineering

(GB51016-2014), three working conditions are considered for slope stability
analysis, which are working conditions of gravity+groundwater, working
conditions of gravity+groundwater+blasting vibration force, and working
conditions of gravity+groundwater+earthquake force.
The horizontal seismic acceleration K=0.075; according to Specifications for

Seismic Design of Hydraulic Structures, the vertical seismic acceleration can be
designed as 1/3 of the horizontal one, namely K=0.025. The seismic coefficient
of blasting vibration Kc=0.059.
60
The final slope of East Orebody of Saindak deposit is designed with a maximum
height of over 300m, and pursuant to classification standards of GB51016-2014,
this open-pit slope is a high slope whose hazard class and safety class are
respectively Class-II and Class-I.
With reference to safety factors of domestic and foreign mines, the safety factor
in this project is designed as no less than 1.20 for working conditions of
gravity+groundwater, no less than 1.18 for working conditions of
gravity+groundwater+blasting vibration force, and no less than 1.15 for working
conditions of gravity+groundwater+earthquake force respectively.
4.2.5.2 Calculated sections and mechanical parameters
In the slope research report, a total of 8 sections are selected from 4 zones to
establish a calculation model for stability analysis of final slope at different slope
angles at the East Orebody of Saindak deposit, based on geological conditions
of slope rock mass, slope arrangement, geological cross-sections and
geological plans of each berm, together with information analysis, research and
field investigation. Refer to Table 4-7 for calculated section details, Figure 4-3 for
calculated section locations, and Figure4-4 for sections.
Table 4-7 Detailed information of each calculated section
Slope top Slope bottom Side slope

Side slope angle
S/N Zone elevation elevation height
(°)
(m) (m) (m)
A +926 +638 288 44、45、46、47
B Ⅰ +938 +638 300 43、44、45、46、47
C +946 +638 308 46
D Ⅱ +962 +650 312 43、44、45、46
E +958 +638 320 45、46、47
F Ⅲ +938 +638 300 45、46、47
G +938 +638 300 45、46、47
H Ⅳ +938 +638 300 43、44、45、46
61
Figure 4-3 Location map of calculated section
(a) A section
62
(b) B section
(c) C section
63
(d) D section
(e) E section
64
(f) F section
(g) G section
65
(h) H section
Figure 4-4 Calculated section drawing
According to geology characteristics of Project of Open Side Slope of East

Orebody of Saindak Copper-Gold Mine, six mechanical mediums, including PS,
SS, POS, PT, ST, and POT, are taken into account in the calculation. Refer to
Table 4-8 for rock mechanical parameters adopted in calculation
Table 4-8 Rock mechanical parameters adopted in calculation
Internal
Volumetric Elastic
Rock parameter Poisson’s Cohesion friction
weight modulus
Lithology ratio (KPa) angle
(KN/m3) (GPa)
(°)
PS 27.25 5.87 0.168 370 35
SS 27.17 4.14 0.208 330 33
POS 27.00 4.52 0.250 350 34
PT 27.43 8.13 0.289 390 35
ST 26.27 6.36 0.322 344 35
POT 26.24 10.88 0.246 400 37
Quaternary 18.00 0.15 0.350 45 19
Fault 22.00 0.55 0.332 50 25
66
4.2.5.3 Calculation results
Refer to Table 4-9 for calculation results of different final slope angles under
three working conditions of each calculated section. The calculation results of
each section are shown from Figure 4-5 to Figure 4-12.
Table 4-9 Calculation results of side slope stability
Section Side slope safety factor

Final slope angle
S/N Working condition I Working condition II Working condition III
1.333 1.219 1.182 44
1.180 45
A
1.152 46
1.132 47
1.337 1.225 1.191 43
1.182 44
B 1.163 45
1.153 46
1.121 47
1.289 1.179 1.151 46
C
1.085 47
1.325 1.209 1.205 43
1.181 44
D
1.163 45
1.141 46
1.337 1.224 1.188 45
E 1.167 46
1.148 47
1.339 1.224 1.188 45
F 1.154 46
1.132 47
1.340 1.226 1.191 45
G 1.169 46
1.149 47
1.378 1.259 1.220 43
1.195 44
H
1.166 45
1.143 46
67
(a)Simplified bishop method (b)Spencer method
(c) Morgenstern-Price method
Figure 4-5 A-A section Side slope:46° Calculation results figure under working
condition III
68
Figure 4-6 B-B section Side slope:46° Calculation results figure under working
condition III
69
Figure 4-7 C-C section Side slope:46° Calculation results figure under working
condition III
70
Figure 4-8 D-D section Side slope:45° Calculation results figure under working
condition III
71
Figure 4-9 E-E section Side slope:46° Calculation results figure under working
condition III
72
Figure 4-10 F-F section Side slope:46° Calculation results figure under working
condition III
73
Figure 4-11 G-G section Side slope:46° Calculation results figure under working
condition III
74
Figure 4-12 H-H section Side slope:45° Calculation results figure under working
condition III
75
4.2.6 Recommendation for side slope angle in each zone
The side slope study report gets the optimum structure parameters of side slope
angle of each section according to the calculation analysis of eight side slope
sections and suggests the following structure parameters of side slope in each
zone.
(1) Side slope 46° is recommended for A, B, C, E, F,.and G sections, which

means side slope 46° is recommended for I zone and III zone.
(2) Side slope 45° is recommended for D and H sections, which means side
slope 46° is recommended for II zone and IV zone.
Recommended value of side slope angle of each zone is shown is Figure 4-13.
Figure 4-13 Recommended value of side slope angle of each zone (bottom
elevation of 638m)
4.2.7 Side slope monitoring
The side slope study report, according to actual conditions of Saindak

Copper-Gold Mine, proposes the preliminary scheme of east orebody side slope
monitoring. Technologies such as 3D laser scanner and micro-seismic
monitoring are adopted to monitor side slope stability and blasting vibration. 3D
laser scanner is mainly used to monitor side slope surface displacement.
Micro-seismic monitoring is used to monitor sliding surface and production
blasting. Real-time and on-line monitoring is adopted for side slope stability. The
side slope is classified as red safety class, orange safety class, yellow safety
class and blue safety class for management and control.
76
According to the calculation and optimization results of side slope stability, the
safety margin of I zone is lower than that of other zones, which means I zone is
more easy to be destabilized. Therefore, the main target of stability monitoring is
side slope of I zone.
3D laser monitoring arrangement is shown in Figure 4-14 and micro-seismic

monitoring sensor arrangement is shown in Figure 4-15
Figure 4-14 3D laser monitoring arrangement
Figure 4-15 micro-seismic monitoring sensor arrangement
77
4.2.8 Rock mechanics study in next stage
Restricted by different conditions, work of hydrology, engineering geology and

environmental geology hasn’t been carried out in detail and systematically in
east orebody prospecting engineering. The east orebody is still in feasibility
study stage. The Pre-production stripping hasn’t been carried out. The side
slope hasn’t been exposed. The geology survey of side slope can’t be conducted.
Therefore, it’s recommended to supplement the following rock mechanics study
during stripping and mining in the future.
(1) During the exploration of subsequent mine production, the survey of

hydrology, engineering geology and environmental geology as well as collection
and accumulation of relevant data should be further strengthened. Further
investigation should be made about distribution characteristics of strata and
structure within the mining area and special hydrological drilling should be
arranged for the pumping test.
(2) After the east orebody side slope is exposed, the engineering geological
survey of side slope should be added, the site survey data of joint, fissure,
groundwater, and deformation should be improved and calculation parameters
of side slope rock should be further corrected.
(3) Combining with actual conditions of exposed side slope, special analysis is
made for local side slope destroy and disposal plan is made correspondingly.
(4) Amalaf fault in the North-South direction, nearly vertical, should be attached
with great importance. If it exists in a certain scale, which is verified later, the
stability evaluation should be made again and solutions should be made
according to actual conditions.
(5) During production of east orebody, blasting vibration test is carried out
comprehensively and systematically to further correct influence coefficient of
blasting vibration, so as to evaluate the influence of basting vibration on side
slope stability.
(6) Gradually establish and improve side slope monitoring system. For the actual
deformation and destroy after exposure of side slope, the side slope monitoring
system is established in batches in key area, combining with equipment of south
orebody recovery.
(7) Take effective engineering technical measures to treat the unstable side
slope during production.
4.3 Principle, method for open-pit limit delineation and

economical stripping ratio
4.3.1 Principle of limit delineation
According to the ore occurrence conditions, ore grade, joint fissure, structure
occurrence and distribution as well as the surface topographic conditions of East
Orebody of Saindak deposit, the principles are as follows for delineating the
78
open-pit limit:
1. The limit stripping ratio is not more than economical stripping ratio to ensure
the ore mined within the open-pit limit can provide profit;
2.The mineral resources shall be fully made use of and the advantage of high
utilization rate of open-pit mining resources be taken; the ore shall be delineated
into the open-pit mining limit as much as possible, and mining and utilization of
the small orebodies around the main orebody will be taken into consideration.
3. The final slope angle for open-pit shall be equal to the allowable slope angle
which ensures the slope stability and the safety production of open-pit mine, and
prevents against geological disaster.
4. The geometry of the open-pit limit shall be beneficial for slope stability;
5. Delineation of the open-pit limit shall facilitate the protection of the off-limit
orebody and the deep orebody, avoiding adverse impact on the mining of off-limit
orebody.
4.3.2 Method for pit limit delineation
The limit optimization program developed by British Datamine Company is

adopted in design for delineating the open-pit limit. This program is developed
based on Lerchs-Grossman algorithm, and its principle is the economical model
of deposit and the given parameters for limit delineation, including final slope
angle, production cost, recovery rate, product price, discount rate, etc. Based on
repeated optimization calculations in vertical and horizontal directions, it is to
determine the optimized open-pit limit under the given conditions. This method is
similar to the cross-section method for manually delineating the open-pit limit in
essence. However, because of the deposit economical model and utilization of
computer calculation, it has increased the calculated section numbers greatly,
which has elevated the conformity of open-pit limit and optimized the open-pit
limit. This method is the main method for optimizing open-pit limit, with the steps
of delineating limit as follows: firstly, the deposit geological model is changed to a
three-dimensional net matrix (economical model) as the basic element
aggregates for delineating the open-pit limit, using dynamic planning method
and taking the total profit as the target function while the ore block matrix as its
basic calculation unit. The first step is to take the net matrix on the design
section as the basic data, and the second to change the net matrix to the
accumulative net matrix based on row method, third to add one zero row and
then calculate from left to right starting from the first row, fourth to choose the ore
block with maximum accumulative net value in the first row and then the final
mining limit can be figured out along the arrow line from left to right. On this
section, mining based on the final limit can gain maximum profit and then gain
the final open-pit limit.
The technical and economical parameters for delineating open-pit limit are
specified based on the software requirement of maximum NPV of delineating
open-pit limit, with reference to the actual production indicators of domestic and
foreign open-pits, together with the combination of the specific conditions of the
79
project. See Table 4-10 for details.
Table 4-10 Technical and economical parameters for delineating the mining limit
of East Orebody
S/N Description Unit Value Remarks
1 Price of blister copper $/t 6614
2 Production capacity 104t/a 425
3 Production cost
Mining $/t ore 1.65
Stripping $/t 1.65
Beneficiation $/t ore 9.00
Smelting $/t·Cu 1000
Marketing expenses $/t·Cu 150
4 Recovery
Mining % 97
Beneficiation % 87
Smelting % 97.5
5 Final slope angle ° 45～46
6 Cut-off grade % 0.25
4.3.3 Economical stripping ratio
Based on the deposit occurrence conditions and ore value in East Orebody of
Saindak deposit, the economical stripping ratio is analyzed and calculated based
on the price method and reserve profit method which is compared with the
sublevel caving method without pillar which may be used for open-pit mining and
underground mining. See Table 4-11 for the analysis and calculation results.
80
Table 4-11 Calculation sheet of economical stripping ratio
S/N Indicator description Unit Open-pit mining Underground mining Remarks
1 Ore output per ton reserve
1.1 Geological grade: Cu ﹪ 0.374 0.374
1.2 Dilution rate ﹪ 3.000 15.000
1.3 Loss rate ﹪ 3.000 15.000
1.4 Grade of ore output Cu ﹪ 0.363 0.318
1.5 Ore output per ton reserve t 1.000 1.000
2 Metal production per ton reserve 3.628 3.179
2.1 Beneficiation recovery rate ﹪ 86 86
2.2 Smelting recovery rate ﹪ 97.5 97.5
2.3 Recovered metal volume per ton reserve kg 3.042 2.666
3 Value per ton reserve 19.219 16.841
3.1 Price of blister copper $/t 6318 6318
3.2 Calculated metal volume Cu kg 3.042 2.666
3.3 Value per ton reserve $ 19.219 16.841
4 Mining manufacturing cost (excluding stripping cost) 2.15 15.5
4.1 Operation cost $/t·ore 1.65 12.5
4.2 Manufacturing expense $/t·ore 0.5 3
5 Beneficiation and manufacturing cost 9 9
81
S/N Indicator description Unit Open-pit mining Underground mining Remarks
5.1 Operation cost $/t·ore 8.5 8.5
5.2 Manufacturing expense $/t·ore 0.5 0.5
6 Smelting manufacturing cost 1050 1150

10k
6.1 Operation cost 950 1050
$/t·Cu
10k
6.2 Manufacturing expense 100 100
$/t·Cu
7 Marketing expenses $/t·ore 1.64 1.50
8 Comprehensive cost per ton reserve (excluding stripping cost) $/t 15.98 29.06
9 Profit per ton reserve $/t 3.23 -12.22
10 Stripping expense $/t 1.65
11 Economical stripping ratio
11.1 Calculated based on price method t/t 1.96
11.2 Calculated based on profit of reserve t/t
From Table 4-11, it is seen that the economical stripping ratio is only 1.96 t/t, while the ore profit is -12.22 USD/t ore from underground
mining, as per the price method, based on full utilization of existing stripping equipment, beneficiation plant, smelter and public and
auxiliary facilities, which indicates that the value of ore from the orebody is low, underground mining is not proper, and the stripping volume
is few even adopting open-pit mining. Meanwhile, this also indicates that the deposit is of less utilization value.
82
4.4 Factors of the final slope

Saindak deposit is located in the magma zone of the Chagai series, and the
magmatic rocks are mainly granodiorite and quartz-monzonite. The strata within
the mine area is formed in Upper Cretaceous-Holocene and composed of
marlstone, sandstone, shale, volcanic tuff and volcanic agglomerate, which is
the typical structure of volcano - Sedimentary facies. The structure within the
mine area is developed, which is mainly composed of Amalaf syncline and
Saindak fault. Amalaf syncline is of NW strike and is an open and wide syncline
with bi-directional pitch of NW and SE, and the East Orebody is roughly the core.
It is extended for several miles. The stratum in the core of syncline is composed
of Amalaf group and Saindak group, and the two wings are composed of
Saindak group and Juzzak group. The average angle of the west wing is 40～
43, and that of the east wing is 26～29. The axis of syncline roughly passes
through the core of East Orebody.
The Saindak fault is the main fractural structure within the mine area and is
nearly of EW strike. It is formed after the Amalaf syncline and obliquely crosses
the syncline. The horizontal fault throw of the fault zone decreases from the west
to the east. At the east side of the mine area, the fault throw can reach 1500m,
and that nearby the mine area is 600m, which decreases eastward.
Apart from the Saindak fault, there is a secondary fault which is developed
mainly in NNE direction, while the NNW fault group is weak. Around the Saindak
alteration zone, there are many faults developed.
The magma rock mass within the area are mainly granodiorite batholiths and
tonalite-porphyry which are formed by invasion of Miocene rock. Besides, there
are also andesite-porphyry dike, diorite porphyry dike and quartz tourmaline
dike.
For country rock alteration, there are mainly silicification, potassium alteration,
sericitization and propylite alteration. The potassium alteration is accompanied
by strong copper and gold mineralization. Weak potassium alteration and
sericitization is accompanied by moderate strong mineralization, and the
propylite alteration has common (or weak) mineralization.
The East Orebody is located at the southeast side of the South Orebody with a
horizontal distance of about 700m to the South Orebody. The East Orebody is of
ellipse shape on the plane, and the long axis is of NW-SE strike, which is in
accordance with the Amalaf synclinal axis. The lithology of ore-bearing rocks is
tonalite-porphyry and siltstone. The orebody is of large scale with a length of
about 1300m and a width of 600m on the plane. It is of a right cylinder shape on
the profile with an extension of 500m and is featured by large scale and low
grade.
By integrating the above properties of orebody and country rock, the

characteristics of fractural structure as well as development degree, and
referencing the parameters of the slope within the open-pit limit of the Saindak
South Orebody as well as actual data of slope in similar mines at home and
83
abroad, the parameters of the final slope are selected as follows:
1. The height of final bench: 24m (the final combined sections)
2. Slope angle of the final bench: 55° (20-30m within the near surface)
65° (20-30m below the ground surface)
3. Width of the safe platform and the mucking platform: 10～15m；
4. Width of the transportation platform: 20m
5. Final slope angle: 45°～46°
4.5 Determination of open-pit final limit

According to the geological model of ore deposit, the parameters of final slope
as well as the economic parameters, the software for maximizing the NPV of
open-pit limit is used to scope the final open-pit limit of the East Orebody of the
Saindak deposit. The scoping results are: the upper opening of the open-pit limit
is 920m in length and 710m in width; the bottom of the limit is 195m in length and
65m in width; the mining depth is 315m. The elevation at the bottom of limit is
640m, and that of the closed loop is 910m.
Within the final limit, the total amount of ore-bearing rocks is 173.164 million ton,
among which 85.595 million ton is ores with an average grade of 0.375% for Cu,
and 87.57 million ton is barren rocks with an average stripping ratio of 1.02t/t.
See Table 4-12 for amount, grade and stripping ratio of the layered ore within the
final open-pit limit of the East Orebody.
Table 4-12 Quantities of layered ore within the final open-pit limit
Ore Inferred Waste

Total quantity Stripping
Bench Quantity of rock
of ore and rock Grade Resources Grade ratio
mine quantity
m 104t 104t CU (%) 104t CU (%) 104t t/t
946 93.5 1.1 0.642 0.1 0.573 92.4 87.78
934 579.7 15.5 0.489 5.3 0.447 564.1 36.29
922 1273.6 127.8 0.338 36.7 0.372 1145.8 8.97
910 1459.6 379.4 0.333 105.0 0.394 1080.1 2.85
898 1322.4 444.4 0.323 129.5 0.404 878.0 1.98
886 1279.8 446.3 0.331 119.3 0.338 833.6 1.87
874 1161.7 382.7 0.331 68.9 0.331 779.1 2.04
862 1121.2 395.6 0.336 42.3 0.333 725.6 1.83
850 1009.4 433.2 0.355 44.7 0.373 576.2 1.33
84
Ore Inferred Waste

Total quantity Stripping
Bench Quantity of rock
of ore and rock Grade Resources Grade ratio
mine quantity
838 970.5 472.3 0.357 69.3 0.326 498.2 1.05
826 865.3 491.1 0.341 55.4 0.349 374.1 0.76
814 828.3 515.6 0.347 57.8 0.35 312.7 0.61
802 730.2 511.0 0.356 39.0 0.349 219.1 0.43
790 695.4 495.0 0.379 44.6 0.36 200.5 0.40
778 603.0 467.8 0.38 44.1 0.375 135.2 0.29
766 570.0 465.5 0.383 39.8 0.374 104.5 0.22
754 486.3 417.7 0.398 20.5 0.352 68.6 0.16
742 455.9 399.0 0.418 12.0 0.306 56.9 0.14
730 377.0 345.5 0.422 9.4 0.442 31.5 0.09
718 348.7 319.6 0.434 5.7 0.523 29.0 0.09
706 279.3 268.3 0.451 0.1 0.611 10.9 0.04
694 253.4 242.5 0.477 0.2 0.444 10.8 0.04
682 189.7 180.1 0.448 0.3 0.42 9.6 0.05
670 166.3 155.9 0.458 0.4 0.397 10.4 0.07
658 108.5 101.9 0.441 0.4 0.439 6.6 0.07
646 87.8 84.6 0.42 0.3 0.392 3.2 0.04
Total 17316.4 8559.5 0.375 951.1 0.363 8757.0 1.02
85
Chapter 5 Production Capacity, Working
System and Service Life

5.1 Determination of production capacity
The east orebody of Saindak deposit acts as the continued mine of the south
orebody. It is proposed to adopt the idle stripping equipment of the south
orebody for mining and stripping after the open-pit mining amount is decreased.
For ore crushing and beneficiation treatment, it is proposed to use the existing
concentrator; and for smelting of copper concentrate, it is proposed to use the
existing smelter. The production capacity of the existing concentrator is 4.25
million t/a and 12,500t/d for ore processing. Therefore, the production capacity of
the open-pit mining in east orebody is determined as:
Ore mining: 4.25 million t/a;
12500t/d
5.2 Verification of production capability

1. The production capability is determined according to the extension speed of
the mining project.
P  V 
A＝
h（
 1 - e)
Where, A - Annual production capacity of the open-pit mine may be achieved,
104t/a.
P – Ore reserve of representative bench, the ore reserve of

representative bench of the final limit from 910m to 694m. There are 19 benches
in total, and the average ore reserve of bench is 4.154 million ton.
V – Extension speed of the mining project. According to the annual

decrease of 15-30m for large-scale open-pit mining in the world, the designed
production capability of the mine can be achieved, and here the value is taken as
20m/a.
h - Bench height, 12m;

 ——Ore recovery, 97%;
e – Rate of waste rock, 3%;
The capability that the open-pit mining can achieve is:
86
415 . 4  20  0 . 97
A   692 . 3
12  (1  0 . 03 ) 10,000t
Seen from the above calculation and according to the ore reserve of bench
within the final open-pit mining limit, when the extension speed is taken as
20m/a, the production capability can reach to 6.923 million t/a. Therefore, the
mine can achieve the designed production capacity of 4.25 million t/a.
2. The production capability of open-pit mining is determined based on how

many excavating equipment can be arranged on the mining face.
The upper opening within the open-pit mining limit of the east orebody is about
850m in length, and the opening bottom is 195m in length. According to the
preliminary production plan, the operating line of mine in common years is above
300m. As it is adopted with vehicle transport, at least 1 WK-10-typed electric
shovel with the bucket capacity of 10m³ can be the arranged at the mine area.
The annual comprehensive efficiency of the electric shovel is 3 million ton per
set each year.
A=NnQ
Wherein, A - Annual production capacity of the open-pit mine may be achieved,

104t/a;
N – The number of electric shovels may be arranged at a certain mining

stage, 1 set;
Q - Annual production capacity of electric shovel, taken as 2.4 million t/a;
n – Simultaneous mining stages, 2 benches.
The capability that the open-pit mining can achieve is:
A＝NnQ＝1×2×240＝4.8million t/a
According to the analysis and calculation above, the open-pit mining can reach
the production capacity of 12500t/d, namely 4.25 million t/a.
5.3 Working system

The Saindak deposit is located at the desert and gobi area of the southwest
Pakistan, the climate here is of Subtropical desert type and it is dry and lack of
rainfall. In summer, it is bitterly hot with big difference in daily temperature.
However, extreme severe weather is rare. According to the statistics of
meteorological observation data obtained from the RDC weather station from
October 1982 - August 1990, the highest temperature of this place is 49.8°C, the
lowest temperature is -9°C, and the average monthly temperature in the hottest
month is 35°C; the annual average relative humidity is 36.29%, and the annual
precipitation is 24.41 mm; the average evaporation capacity is 5944 mm; the
prevailing wind direction is NNE in winter, and NNW and NNE in summer.
87
According to the aforementioned climate condition, the continuous working

system is determined to be used for the mine, which means to work for 330d per
year with 3 shifts each day, and 8h for each shift.
5.4 Service life

The ore reserve within the open-pit mining limit of the east ore body is 85.595
million ton. According to the formula for calculation of service life and taking the
Production Capacity as 4.25 million t/a, the service life of the mine is calculated
as:
Q·η
T=
A(l-e)
Where: T - Service life of the mine, a;
Q – Ore reserve within the open-pit mining limit, 85.595 million ton;
A – Annual ore production of the mine, 4.25 million t/a;
 －Ore recovery, 97%;

e – Rate of waste rock, 3%;
88
Chapter 6 Development and
Transportation
6.1 Selection of development and transportation schemes
Saindak Copper-Gold Mine is located in the desert and gobi area in the
southwest of Pakistan. The deposit, surrounded by low mountains in the east
and west, is high in the south and low in the north, and is relatively gentle in
landform with relatively small elevation difference.
The east orebody is in the east of the deposit, adjacent to and 700m away from
the south orebody. The elevation of the east orebody within the open-pit mining
boundary is 930-970m with elevation difference of approx. 40m. The plane of the
defined final open mining boundary of the east orebody based on design is
similar to an oval, with the length of the upper opening as approx. 920m, the
width of the upper opening as approx. 710m, the elevation of limit bottom as
640m and the elevation of closed circle as 910m. The slope above the closed
circle is 45m high and the sunk part under the closed circle is 270m deep. The
deposit is almost a sunk open-pit orebody with the maximum mining depth of
315m. The concentrator is located southwest and approx. 1500m away from the
open-pit mining field while the primary ore crushing station is located southwest
and approx. 800m away from the open-pit mining filed. The elevation of ore
discharge platform of the primary crushing station is 980m. After being crushed
by the primary crushing station, ore will be delivered by belt conveyor to the
coarse ore stockpile for storage.
The waste rock dump is located northeast to the open-pit mining field, adjacent
to and approx. 500m away from the field. The elevation of discharged soil of the
waste rock dump is 940-980m.
Based on the design production scale of the mine, deposit terrain and
transportation conditions of ore-rock, available development and transportation
schemes are analyzed and demonstrated primarily in the design. As the open-pit
mining scale of the east orebody is relatively small; the length of the open-pit
mining field is just 920m while the mining depth is as great as approx. 315m; the
main port is just 800m away from the primary ore crushing station of the
concentrator but elevation difference is close to 40m, in case railway is adopted
for development and transportation. Due to its small climbing capacity, the
extension of the railway will be greatly difficult and will cause large expense.
Hence, single railway development & transportation scheme and
railway-containing joint development & transportation scheme are not feasible.
The development & transportation scheme adopting complete dump truck is

flexible and possesses advantages of great climbing capacity, small turning
radius, small line work quantity, high efficiency of excavator, great annual
89
reduction speed, stable production capacity, small initial investment, short

construction duration, simple management, etc. However, with deeper mining
and larger transportation distance, the transportation cost increases rapidly,
limiting the mining depth. The rational transportation distance of transportation
scheme adopting complete dump truck is 3-4km in general.
The joint development & transportation scheme of dump truck- movable (fixed or
half-fixed) crushing station- belt conveyor not only possesses the advantages of
dump truck, but also overcomes the weakness of rapidly increased
transportation cost with deeper mining and larger transportation distance. The
main disadvantage of the joint scheme is the large initial investment and long
construction period. A great number of analyses in the world indicate that for the
large open-pit, when the ore-rock transportation distance is less than 3-4km
where the ore-rock transportation distance outside the working face is less than
2.5-3km, complete automobile transportation scheme possesses strong
competitiveness on both investment and operation cost, and is greater than the
development transportation scheme of dump truck-movable (fixed or half-fixed)
crushing station-belt conveyor. However, when the ore-rock transportation
distance is larger than 3-4km and the ore-rock transportation distance outside
the working face is larger than 2.5-3km, the investment and operation cost for
ore-rock transportation per ton & km of the complete dump truck transportation
scheme will increase obviously while that of the development transportation
scheme of dump truck-movable (fixed or half-fixed) crushing station-belt
conveyor will decrease. The advantage of the joint scheme will be more obvious
with larger transportation distance. To this end, currently in the world, most of the
large open-pit mines adopt the transportation scheme of dump truck in the initial
period of production when the ore-rock transportation distance is relatively short
(generally not more than 3-4km), and will adopt the development transportation
scheme of dump truck-movable (fixed or half-fixed) crushing station-belt
conveyor when mining achieves certain depth and ore-rock transportation
distance is more than 3-4km to reduce investment in the initial period and
production cost.
The mining depth of open-pit mining of the east orebody of Saindak

Copper-Gold Mine is relatively small (approx. 300m). The average transportation
distance of most ore & rock is less than 3-4km where the ore-rock transportation
distance outside the working face is less than 2.5-3km. Based on the research
results and practical experience in production of large-scale open-pit mines in
the world, the transportation scheme of complete dump truck is recommended.
6.2 Overview of development and transportation system

As the landform of ground surface of the east orebody is relatively gentle and
orebody is just 45m above the elevation of the closed circle of the open-pit
mining boundary, the open-pit mining field of the east orebody is almost a sunk
one. In accordance with the terrain around the open-pit mining boundary of the
east orebody, and relative position & elevation of primary ore crushing station
and waste rock dump, two in-and-out ditch mouths are designed to be arranged
for the open-pit mining field which are the main in-and-out ditch mouth of ore and
the main in-and-out ditch mouth for waste rock transportation. The main
90
in-and-out ditch mouth of ore is arranged south to the open-pit mining field, with
elevation as 940m while the main in-and-out ditch mouth for waste rock
transportation is arranged north to the open-pit mining field, with elevation as
930m.
The plane of the final open mining boundary of the east orebody is similar to an
oval which possesses an equal length and width, a length of the upper opening
of approx. 920m, a width of the upper opening of approx. 710m and a mining
depth of 315m, and the orebody possesses a great continuity and no platform
without ore can be utilized. Hence, the transportation highway is designed to be
arranged in a screw way to prevent the increase of stripping caused by the
arrangement of transportation highway.
The service life of the open-pit mining of the east orebody in this design is 20
years, and the production is 4,250,000 t/a. Therefore, the trunk highway is
designed to be constructed as the Level II mine highway with mud & rubbles
pavement.
The connection roads between working face and trunk highway and between
working stages in the mining field adopt temporary mine roads with rubble
pavement.
See Table 6-1 for the technical parameters of highway within the open-pit mining
boundary based on the technical parameters and overall dimension of dump
truck.
Table 6-1 Main technical parameters of highway
S/N Description Unit Qty. Remarks

I Fixed highway
1 Highway width m 20 Double lanes
m 13.5 Single lane
2 Pavement width m 20 Double lanes
m 13.5 Single lane
3 Maximum longitudinal slope % 8
4 Length of limited slope section m 375
5 Length of gentle slope section m 60～100
6 Minimum turning radius m 25
II Temporary highway
1 Highway width m 20 Double lanes
m 13.5 Single lane
2 Pavement width m 20 Double lanes
m 13.5 Single lane
3 Maximum longitudinal slope % 11
4 Length of limited slope section m 375
5 Length of gentle slope section m 40～80
6 Minimum turning radius m 20
91
For the ore transportation from the main in-and-out ditch mouth of ore of open-pit
mining to the primary ore crushing station, part of the available ore transportation
highway on the ground surface of the south orebody open-pit mining shall be
utilized, and the 600m ground surface transportation highway between the main
in-and-out ditch mouth and available roads shall be built.
As the existing waste rock dump of the south orebody open-pit mining is filled
and possesses great elevation & large transportation distance, a new waste rock
dump shall be constructed for the open-pit mining of the east orebody. As the
new waste rock dump is approx. 500m away from the open-pit mining field, new
transportation highways for waste rocks shall be constructed.
The ground surface transportation highway shall possess the same level and
technical parameters as the trunk highway within the open-pit mining boundary.
92
Chapter 7 Stripping and Equipment

7.1 Stripping process
According to occurrence conditions of orebody, the traditional bench mining
process is adopted in the design. Design height of bench is 12m based on mine
production capacity and selected stripping equipment in the design.
In order to ensure continuous and stable outputs of open-pit mine, designed

mining will be conducted in the method of gentle slope mining with single bench,
and stripping will be conducted in the method of steep slope mining with
combined benches.
In order to reduce ore loss and dilution index, design working trenches are
longitudinally arranged in orebody or in wall rock of hanging wall close to
orebody and advanced in the vertical direction to orebody according to the
occurrence conditions.
Main parameters of working face of mining are as follows:
Bench height: 12m
Operation bench slope angle: 70°-75°
Minimum bench width: 45m
Minimum length of working line: 120m
Angle of mining slope: <10°
Main parameters of work face of stripping are as follows:
Bench height: 12m
Angle of operation bench and future mining bench: 70°-75°
Minimum bench width: 45m
Minimum length of working line: 120m
The width of future mining bench: 25m
Quantity of combined benches (the maximum): 4
Stripping slope angle: <23°
Stripping process of combined benches is indicated in Figure 7-1.
Saindak deposit is of a porphyry copper deposit, and orebody and wall rock are
presented in gradual alteration relation. Orebodies are classified mainly based
93
on cut-off grade. Therefore, according to orebody occurrence and selected

mining process, designed loss and dilution indexes are as follows:
Ore loss rate: 3%
Ore dilution rate: 3%
94
Figure7-1 Stripping process figure
95
7.2 Drilling and blasting

According to designed mine production capacity, physico-mechanical properties
of ore rock and available mine equipment, rotary drill with drilling hole diameter
of 250mm is selected for drilling in the design.
Calculation of drilling devices is indicated in Table 7-1.
Table 7-1 Calculation of quantity of drilling devices
S/N Description Unit Ore Waste rock Remarks

1 Work quantities 104t/a 425 425
10,000 m3/a 158.6 158.6
2 Working time d/a 330 330
Shift/d 3 3
h/shift 8 8
3 Time utilization factor % 80 80
4 Net work time per shift h/shift 6.4 6.4
5 Weight of ore rock t/m3 2.68 2.68
6 Diameter of blasting hole mm 250 250
7 Bench height m 12 12
8 Over-depth of blasting hole m 2.50 2.50
9 Length of blasting hole m 14.50 14.50
Parameters of hole grid
Row interval m 6.00 6.00
Hole interval m 7.00 7.00
10 Toe burden m 8.4 8.4
11 Burden area of blasting hole m 2
42.00 42.00
Blasting output per linear
12 m3/m 34.76 34.76
meter
13 Blasting output of single hole m3 504.00 504.00
14 Drilling efficiency (general) m/shift 60.00 60.00
15 Abandoned hole rate % 5.00 5.00
16 Drill hole quantity per shift Nr. 4 4
Efficiency of drilling and
17 m3/set shift 1981.24 1981.24
blasting
m3/set d 5943.72 5943.72
10 m /set a
4 3
196.14 196.14
104t /set a 525.66 525.66
Designed efficiency utilization
18 % 520 520
factor
Quantity of required drilling
19 Set 0.72 0.72
machines
Quantity of working drilling
20 Set 1.44
machines
Quantity of designed drilling
21 Set 2
machines
96
Bench blasting is conducted in the method of middle-deep-holed millisecond

blasting in the region so as to improve quality of blasting and efficiency of
loading. ANFO explosives are mainly used for blasting, and emulsion explosives
are adopted in water pore. Initiation of explosion is performed by non-electric
booster and non-electric millisecond detonator. In order to ensure initiation effect,
the initiation is carried out in the order from non-electric detonator to capped
primer to ANFO explosives. Capped primer is arranged at the bottom of hole.
In order to reduce the effect of blasting on mine production, designed blasting

output of middle-deep hole shall not be less than 60000-80000m3 for once, with
3-4 rows of blasting holes and 10-30 holes per row. Total blasting outputs can
meet the requirement of 7-10d loading by electric shovel with bucket capacity of
10m3.
Hydraulic rock crusher is employed for secondary crushing of unqualified large

blocks of ore rock. Provided that maximum block size of loading is 1200mm by
10m3 electric shovel, rate of massive block is determined as 0.5% and crushing
of massive ore per day is 50m3. Therefore, one set of hydraulic rock crusher is
required.
7.3 Shoveling
According to mine production capacity, physico-mechanical properties of ore
rock and operation conditions, electric shovel with bucket capacity of 10m3 is
selected for designed ore rock loading. It has been considered to select
hydraulic shovel for loading in the design.
However, there are 4 sets of 10m3 electric shovels that are in good conditions,
and 3 sets will be unused to the year of 2020. Although these electric shovels
have been in service for many years (purchased in 1994), they are still in good
conditions thanks to the maintenance and can be continuously used. Meanwhile,
Saindak deposit is an old mine with several-year production and equipped with
self-owned power plant and power-supply system in the mining area. In addition,
according to geological exploration data, though structure of mining area is
relatively developed, the under development of joints and high hardness of rock
block makes excavation difficult. Excavation efficiency will be higher by electric
shovel than that by hydraulic shovel. The efficiency and quantity of electric
shovels are indicated in Table 7-2.
97
Table 7-2 Calculation of efficiency and quantity of 10m3 electric shovel
S/N Description Unit Ore Waste rock Remarks
10,000 m3/a 158.6 158.6
Shift/d 3 3
h/shift 8 8
3 Time availability % 60 60
4 Net work time per shift h 4.8 4.8
min 288 288
s 17280 17280
5 Bulk density of waste rock t/m3 2.68 2.68
6 Bucket capacity of excavator m 3

10 10
7 Full bucket factor % 83 83
8 Loose coefficient 1.50 1.50
9 Loading capacity per bucket t 14.83 14.83
10 Load capacity of dumper t 90 90

Quantity of loading buckets
11 bucket 5 5
per truck
12 Effective load of dumper t 74.15 74.15
13 Cycle time of excavator s 45 45
14 Loading time s 225 225
15 Queuing time s 60 60
16 Loading time for one truck s 285 285
17 Loading quantity per shift Car 60 60
18 Efficiency of excavator t/set shift 4449.00 4449.00
m3/set shift 1660.07 1660.07
t/(d·set) 13347 13347
m3/set d 4980.22 4980.22
104t/set·a 440.45 440.45
104m3/set a 164.35 164.35

19 % 60 60
factor
20 Efficiency of excavator 104t/set·a 260 260
104m3/set a 89.95 97.01
21 Quantity of working excavator Set 1.63 1.63

Quantity of registered
22 Set 4
excavator
98
After being blasted and becoming loose, the ore rock of the bench is directly
loaded into 90t dumper by electric shovel. The mining cut is arranged along
orebody trend with continuous excavation from one end to another. As the width
of blasting pile is large, if regional split-second blasting is adopted, loading can
be performed by strip according to the width of blasting pile so as to reduce
queuing time of dumper. However, in order to ensure excavation efficiency of
electric shovel, strip width shall be larger than excavation radius of electric
shovel.
The bench shall be kept level and clean in the process of loading, and bedrock,
rock wall and large blocks shall be removed timely. Working face shall be
mucked after the excavation and loading so as to create advantageous
conditions for follow-up drilling and improve efficiency of drilling devices.
7.4 Transportation
According to matching results of shovel and dumper, the optimum loading
capacity of dumper is 68-108t in matching with electric shove with bucket
capacity of 10m3, and each truck can be loaded with 4-7 buckets. The main
available transport devices are 68t dumpers and 90t dumpers in the mine. The
68t dumpers were purchased in the construction period from 1992 to 1995.
Currently they are in replacement period. The 90t dumpers are substitutes of 68t
dumpers and purchased after parts of 68t dumpers were scrapped in recent
years. Therefore, according to conditions of available devices in the mine, it is to
select 90t dumpers for transportation in the design. Electric shovel with bucket of
10m3 is employed, and the loading capacity per 90t dumper is 5 buckets. Electric
shovel and dumper can give full play. At present, there are 11 90t dumpers
working in the mine, and 3 units need to be added according to the calculation.
Efficiency and quantity of dumpers are indicated in Table 7-3.
Table 7-3 Calculation of efficiency and number of dumpers
Waste
S/N Description Unit Ore Remarks
rock
10,000 m3/a 158.6 158.6
Shift/d 3 3
h/shift 8 8
3 Time availability % 80 80
4 Net work time per shift h 6.4 6.4
min 384 384
s 23040 23040
5 Weight of ore rock t/m3 2.68 2.68
99
Subsequent Table 7-3 Calculation of efficiency and number of dumpers
Waste
S/N Description Unit Ore Remarks
rock
6 Bucket capacity of excavator m3 10 10
7 Average haul distance km 2.5 2.5
8 Average running speed km/h 16 16
9 Running time s 1125 1125
10 Load capacity of dumper t 90 90

Imbalance coefficient of
11 1.15 1.15
transportation
12 Effective load of dumper t 74.15 74.15
13 Loading time s 225 225

Queuing time and dispatching
14 s 60 60
time
15 Unloading time s 120 120
16 Cycle time s 1530 1530
17 Cycle index per shift Car 15 15
18 Efficiency of dumper t/set shift 967.17 967.17
m3/set shift 360.88 360.88
t/(d·set) 2901.52 2901.52
m3/set d 1082.66 1082.66
104t/set·a 95.75 95.75
104m3/set a 35.73 35.73

19 % 95 95
factor
20 Efficiency of dumper 104t/set·a 35.45 35.45
104m3/set a 5 5
21 Quantity of working dumper Set 75 75
22 Turnout rate % 6.67 6.67
23 Quantity of listed dumper Set 7 7
Selective mining method is adopted in the design, i.e. primary ore, oxidized ore,
low-grade ore and waste rock shall be separately mined, transported and piled.
Primary ores shall be delivered to primary crushing station, oxidized ores to
dump leaching area, low-grade ores to stockpiling area for stocking in waste
dump, and waste rock directly discarded in waste dump.
100
7.5 Waterproofing and drainage in open pit

The mining area is located in the arid desert area of northwest Pakistan. The
local climate is dry with high temperature. The annual average precipitation is
about 24.4mm, the annual average evaporation is 5944mm, and there is no
water on the surface all the year round. The terrain in the mining area is
relatively flat, the ground elevation around the open pit is 920~980 m. The
surface rocks are weathered and broken, and joint fissures are developed. The
rocks are dry and waterless with no vegetation, and surface runoff is easy to be
generated during rainstorm. No borehole with groundwater was found during
geological exploration. From this, it can be inferred that the strata in the open pit
are almost free of groundwater, and there will be no water in the open pit in the
future. Therefore, the open pit water gushing is mainly atmospheric precipitation.
Especially the surface runoff generated by rainstorm will be the main source of
mine water gushing in the future.
According to the above water gushing conditions, the principle of flood control
will be adopted in the design of waterproof and drainage of open pit. According
to the terrain conditions, it's expected to build a flood intercepting dam or trench
outside the boundary to minimize the amount of runoff flowing into the open pit
during rainstorm.
Water gushing in the mining field should be drained by mechanical drainage.

The collected water in the mining field is collected at the bottom and discharged
by a water pump.
The maximum allowable submergence time for open pit mine working benches
is 3 days.
7.6 Auxiliary operation and equipment

In order to ensure full capacity of main production devices, it is required to
provide some auxiliary devices in charge of cleaning working bench, removing
scattered rock blocks in the process of blasting and transportation, building and
maintaining roads, and assisting dump trucks in waste removal.
According to the quantity of available auxiliary devices in the mine and demands
of auxiliary devices for open-pit mining of east orebody, it is to select auxiliary
devices according to the design as follows: 480 Hp bulldozer, 1 set; 320-220 Hp
bulldozer, 4 sets; grader, 2 set; front loader, 2 sets; rock crusher, 1 set; sprinkler,
2 sets; 5t material truck, 2 sets; production and maintenance pick-up, 5 sets;
production command car, 4 sets.
At present, there are 7 bulldozers, 3 graders, 4 hydraulic backhoes, as well as

sprinklers and so on, which can basically meet the needs of open-pit mining of
the east ore body.
In addition, special road maintenance team is set in the mine and responsible for
road building and maintenance.
101
Chapter 8 Other New and Renovated
Facilities
Saindak Copper-Gold Mine is a complex consisting of mining, beneficiation and
smelting; and the final product of the enterprise is blister copper. Besides a
mining area, the enterprise further owns a concentrator, a smelter, a tailings
pond, an owned heavy oil power station, a water source area, water supply
facilities, power supply facilities, maintenance facilities, etc. The enterprise was
completed and put into production by the end of 1995, and stopped production in
the early 1996 due to low price of copper metal and capital problem. For
activating the capital of the enterprise and increasing the local employment
opportunities, MCC signed an Operation Leasing Contract with the government
of Pakistan in 2003 and the production of the enterprise has been recovered till
now.
At present, main equipment of the concentrator and the smelter are in normal
operation generally; except normal maintenance, normal production can be kept
generally. However, the existing waste rock dump and the tailings pond have
reached their design service life and will be stacked fully soon. A new waste rock
dump and a new tailings pond need to be constructed in case of development of
the east orebody. Moreover, there are 18 years since the heavy oil power station
has been constructed; five heavy oil generator sets have been operated
continuously for a long time; and some generator sets need to be renovated
based on the current equipment condition. Some water wells at the water source
area are deformed and the water volume is reduced; and some new water wells
need to be constructed. The water transporting pipelines from the water source
area to the plant, from the water storage pond to the elevated water tank, and
from the elevated water tank to each workshop need to be renovated.
8.1 General layout and transportation

8.1.1 General layout
8.1.1.1 Composition of enterprise
Saindak Copper-Gold Mine is a complex consisting of mining, beneficiation and

smelting. Besides a mining area, the enterprise further owns a concentrator, a
smelter, a tailings pond, an owned heavy oil power station, a water source area,
water supply facilities, power supply facilities, maintenance facilities, etc. The
mining of north and south sections is currently in progress and will complete in
2021. The pond capacity of the existing tailings pond, the north waste rock dump,
the west waste rock dump and the east waste rock dump has been used up or
will be used up soon. The existing facilities for mining, beneficiation and smelting,
maintenance, water supply, and power supply can operate normally.
102
The east orebody of Saindak deposit acts as the continued mine of the south
orebody. It is proposed to adopt south orebody open pit equipment for mining.
For ore crushing and beneficiation treatment, it is proposed to use the existing
concentrator; and for smelting of copper concentrate, it is proposed to use the
existing smelter. New waste dump and tailings pond should be established in the
design.
8.1.1.2 Guidelines and basis of general arrangement
(1) The general arrangement is in accordance with Pre-feasibility Study Report

on Project of Open-pit Mining of the East Ore body of Saindak Copper-Gold
Mine, combing with mining and beneficiation and taking full advantage of
topography.
(2) It conforms to requirements of current local specifications on fire prevention,

explosion prevention, safety and health, transportation, etc. and requirements of
general layout.
(3) A safe and healthy environment is created in the general layout for
production.
8.1.1.3 General layout
1. Existing Facilities
(1) Open pit
There are 2 open pits. They are the south ore body open pit located in the south
mining area and the north ore body open pit located in the north of the mining
area and about 1.8 km away from the south ore body. The in-and-out ditch
mouth of waste rock of south orebody open pit is located in the east, with the
elevation of 950m. The in-and-out ditch mouth of waste rock of north orebody
open pit is located in the south, with the elevation of 950m.
(2) Mining industrial site
The north orebody industrial site of mining is located in the north of its open pit,
including a maintenance workshop, an oil depot, a parking garage, etc. The
south orebody industrial site of mining is located in the south of its open pit.
(3) Industrial site of beneficiation and smelting
Industrial site of beneficiation and smelting is located on a gentle slope 700m

away from the south side of south open pit.
(4) Ore stockpile
The north orebody ore stockpiles, including No.1 oxidized ore stockpile and No.2
oxidized ore stockpile, are used for storing oxidized ore. They are close to the
103
north orebody open pit and are respectively located in the south side and north
of the east waste dump. The volumes are respectively 25×104 m3, 100×104 m3.
(5) Waste rock dump and waste dump
The east waste dump is used to store stripped waste rock from the north
orebody. It is located about 200m south of the north orebody open pit. The
volume of the waste dump is 1020×104 m3.
There are an east waste rock dump, a west waste rock dump and a north waste
rock dump for the open-pit mining of the existing south orebody; the east waste
rock dump is mainly used for stacking low-grade ore; the west waste rock dump
with a small capacity but high elevation is mainly used for stacking waste rocks
stripped during the capital construction period; and north waste rock dump as
the main waste rock dump is mainly used for stacking waste rocks stripped
during the production period. The three waste rock dumps can store all waste
rock from south orebody open-pit mining.
(6) Tailings storage facilities
The existing Xigou tailings pond of the mine is located about 2km in the east of
the concentrator and smelter; the final stacking elevation is 955m; the total pond
capacity is 6800×104m3 and the effective pond capacity is 5400×104m3; the top
elevation of the initial dam is 899m; the dam height is 11m.
(7) Slag yard
Slag yard is located about 400m south of the concentrator and smelter.
(8) Living quarters
Living quarters are located in the west of mining area.
2. Newly-built facilities
(1) Open pit

(2)
The east open pit is located in the east of mining area, 260m away from the
northeast of the south open pit. The ore quantity is 425×104t/a, and the service
life is 20 years (not including Pre-production period of 2 years).The plane of the
final open mining boundary of the east orebody is similar to an oval, with the
length of the upper opening as approx. 920m, the width of the upper opening as
approx. 710m, and the elevation of closed circle as 910m. The in-and-out mouth
of ore is located in the east of the open pit, with elevation as 940m. The
in-and-out mouth of waste rock is located in the northeast of the open pit, with
elevation as 930m.
(2) Waste dump
The newly built waste dump is located at the natural valley about 510m
northwest of the east orebody, with natural elevation pf 880-980m, land area of
104
158.3ha, stacking elevation of 980m, and volume of 5060×104m3 which can

store all waste rocks stripped in the open-pit mining of the east orebody.
(3) Low-grade ore stockpile
The low-grade ore stockpile is located in the north of the waste dump which is
built by the existing platform of the east waste dump. The stacking height of the
low-grade ore is 10m and the volume is 56×104m3 which can store low-grade ore
of 93.9×104t.
(4) Overburden stockpile
The overburden stockpile is located in the valley on the west side of waste dump,
with stacking elevation of 980m, stacking height of 40m and volume of
460×104m3.
(5) Tailings storage facilities
The new TSF is close to the southwest side of the existing TSF and located in
the valley about 1.5km southeast of the east orebody. It is built in the way of
upstream tailings damming. The initial dam is located at the southeast mouth of
the valley with height of 16m and dam crest elevation of 924m. The dam is
constructed by exploiting stones in the TSF. with upstream and downstream dam
slopes of 1:2, and the dam volume of about 36.3 × 104m3. The total dam height
of TSF is 52m, the final stacking elevation is 960m and the total storage volume
is 4177.7×104m3.
8.1.2 New waste dump
1. Waste rock quantity and properties

The total volume of ore & rock in the open-pit limit is 17316.4×104t, and the
waste rock is 8757×104t, including 1870×104t in Pre-production period.
Comprehensive properties of waste rock: the bulk density of waste rock is

2.68t/m3 and the loose coefficient is 1.5 (empirical values).
2. Site selection and volume

The waste dump is located in the natural valley about 510m northeast of the east
orebody, which is close to inlet and outlet of the waste rock, with a short
transportation distance. There are no settlements around the site. The site
natural elevation of the waste dump is 880-980m which is high in southwest and
low in northeast. The original ground slope is 0-12° and that of part of the hills is
37°, with an average slope of 4°. The site topography is relatively flat. The waste
dump is located in the arid, hot and rainless subtropical desert zone. The
thickness of quaternary system is small, there is no perennial surface water body,
and the upstream catchment area is small, which is favorable for stability. The
final limit of the dump is 510m from the ending boundary line of the open-pit
stope, which meets the safety protection distance required by the code.
105
With regard to the waste rock quantity and property and the margin coefficient of
1.05, the waste dump with the volume of 5060×104m3 can meet the storage
requirement in the service year. The maximum stacking height of the dump is
104m and the stacking elevation is 980m, which is a secondary dump.
3. Selection of waste rock transportation method
The open pit is a sunken one, which is developed and transported by compete
dump truck. The elevation of waste rock outlet is 930m, and the stacking
elevation of waste dump is 876-980m. The waste rock is transported by truck
with a transportation distance of about 990m. The waste rock transportation road
is constructed according to the standard of grade III open-pit mine road, with the
subgrade width of 17.0m, the pavement width of 15.0m, the maximum
longitudinal slope of 2.6%, and the minimum horizontal curve radius of 57.5m.
Graded aggregate pavement structure: 4cm grit wearing course, 40cm graded
gravel surface course,and 15cm aggregate bed course.
4. Working schedule and dumping process of waste rock
In terms of terrain, the dump belongs to gully dump. To reduce transportation

distance and operation cost in early stage as much as possible, the waste rock is
stockpiled from the near to the far and from the low to the high, that is, the dump
is arranged from northwest to southeast.
Single bench, dump trucks used for transportation and bulldozers for waste
dump, all above will be adopted in the dumping process. According to the repose
angle and truck dump process, the parameters of side slope of waste stockpile
are set as: the bench height is 30m, the bench slope angle is 1:1.5, the bench
platform width is 20m, and the overall slope angle is 26 °. The adjacent benches
will be connected by climbing lane of 15m width which is set on the slope with
angle of 8%.
5. Selection of auxiliary equipment for waste rock transportation
91t dump truck will be used for transportation. The maximum transportation
volume of waste rock is about 28,300t/d. The quantity of waste auxiliary
equipment in waste dump will be determined by the number of dumping points
and the amount of residual waste rock. The auxiliary equipment is mainly
bulldozer, and other auxiliary equipment can be cooperated within the whole
mine area. Two sets of 250kW bulldozers will be arranged in the waste dump.
6. Flood control and discharge facilities of waste dump
The flood return period of the dump is designed as 50 years, and the upstream
catchment area is small. The intercepting ditch is built around the dump and
discharged to the low-lying area of the downstream in sections according to the
terrain. The intercepting ditch is trapezoidal earth ditch with the bottom width of
0.8 m, the depth of 1.5 m, and the longitudinal slope of the trench bottom ≥ 0.3%.
The platform ditch is built on the dumping platform to discharge catchment of the
upper slope and platform out of the site orderly. The platform ditch is trapezoidal
106
earth ditch with the bottom width of 0.4m, the depth of 0.6m, and the longitudinal
slope of the trench bottom ≥ 0.3%. In order to avoid the formation of debris flow,
the bottom of waste dump is filled with large stones to facilitate drainage.
7. Lighting, monitoring and other safety measures for waste dump
(1) Waste dump lighting
Corresponding lighting measures should be taken for safe operation when the
sight distance of a driver is less than 30m which is caused by mist, dust or bad
weather in operation area of the waste dump. Good lighting facilities for night
shift operation are set in operation area of waste dump. The distance between
light tower and safety car block is d ≥ the distance of vehicle visual blind area +
10m, and d=20m in this design.
(2) Waste dump monitoring
The internal deformation of side slope of waste dump will be monitored both
dynamically and statically. The dynamic monitoring mode is as follows:
according to the actual situation of production, the temporary monitoring points
are set up on the newly formed dumping benches and the dumping platform in
the main gully area, and the total station or GPS monitoring system is used for
dynamic temporary monitoring, so as to provide guarantee for the safety
production of the waste dump. The static monitoring mode is as follows: for the
formed ending slope, it is recommended to use inclinometer or GPS system to
monitor the slope displacement, and the data can be transmitted to the
automatic collection box through trunk, so as to accurately and real-time monitor
the dynamic instability process of the side slope. By analyzing the monitoring
data, the stability of the slope is judged and the dangerous situation is warned in
time.
(3) Other safety measures of the waste dump
Before the construction of the waste dump, the plant layer and loose soil layer at
the bottom of the ditch shall be removed first, and the cleared soil materials shall
be stacked in selected places for later reclamation. And large and hard waste
rocks should be stacked at the bottom to ensure good stability and permeability.
The waste dump should be managed according to the relevant design; after the
dump is in operation, the topographic mapping should be carried out regularly to
determine the dumping parameters and analyze the stability. In order to prevent
the vehicle from falling down when dumping, the operating platform should be
kept flat and keep reverse slope of 3%-5%. When the vehicle enters the
operating platform for dumping, the speed limit shall be 16km/h for 50m-200m
from the working face, and 8km/h for less than 50m; a certain number of safety
signs such as speed limitation board shall be set in the operation area. Eye
catching safety warning signs shall be set up in the rolling stone area of waste
dump. In the area at the bottom of the dump slope, the construction of a dam or
the setting of barbed wire and warning signs shall be adopted. It is strictly
forbidden for irrelevant personnel to enter the operation area of the dump to
107
collect ore and other stones.
8. Waste dump reclamation
In order to reduce the impact on the mining area and surrounding environment
and ecology as much as possible, the vegetation soil on the surface of the dump
is stripped and stacked in a unified way. A layer of gravel is covered on the waste
dump finally formed in the production period, and the gravel particle size is not
less than 10 cm.
8.1.3 Main techno-economic indexes and work quantities
Main techno-economic indexes and work quantities of general layout
S/N Project Name Unit Quantity Remarks
1 Land area hm2 400.7
New waste dump hm 2

158.3 Including overburden stockpile
hm 2
Including pipeline and connecting
New TSF 246.3
road
Low-grade ore stacking site hm2 0 In the east waste dump
Waste rock transportation
m 990 15m wide pavement
road
15m wide pavement
Climbing lane of dumping
m 1125 4cm grit wearing layer, 15cm grade
platform
2 aggregate layer
6m wide pavement
4cm grit wearing layer, 25cm grade
The access road to the TSF m 5700
aggregate layer, 15cm gravel
cushion
Earthwork 104m3 19.5 Waste rock transportation road
3 Fill 104m3 1.1
Cut 104m3 18.4
4 Intercepting ditch m 4900
5 Waste dump berm ditch m 7800
6 Side ditch m 1500
7 Greening area hm2 130 Reclamation
8 Wire mesh enclosure km 6 1.6m high
9 Culvert m 61 RC circular culvert diameter is 2m
108
8.2 Tailings disposal facilities

8.2.1 Design basis
8.2.1.1 Main standards and codes
(1)Design Code for Tailings Facilities (GB 50863-2013);
(2)Design Code for Rolled Earth-rock Fill Dams (SL 274-2001).
(3)East Orebody Pre-feasibility Study --- Geophysical Prospecting Report on

Barren Site Verification for New Waste Dump and TSF Design by Wuhan
Surveying-Geotechnical Research Institute Co., Ltd of MCC in November 2019.
8.2.1.2 Process data
(1)Concentrator capacity:12879.0t/d,425.0×104 t/a;
(2)Working system: 330d/a, 3 shifts/d and 8h/shift;
(3)The tailings productivity of concentrator is 99.00%;
(4)Weight concentration of the tailings slurry discharged from the concentrator is

28.0%-30.0%;
(5)Fineness: the proportion of < 0.074mm is 65.0%;
(6)Dry tailings density: 2.51t/m3;
(7)Service life: 19 years.
8.2.1.3 Basic information
(1)Topographic data: regional topographic map of 1:1000 provided by the

Owner.
(2)Hydrometeorological data:
1) The maximum annual rainfall recorded is 177.5mm (1991); the minimum

annual rainfall is 5.5mm (1987); the annual maximum 24h rainfall collected from
1976 to 2013 is shown in table 8-1;
2) The annual average evaporation is 5944mm, the average rainfall is 24.41mm,

and the average relative humidity is 36.29%.
The mining area is extremely hot in summer (May to August), with the normal
temperature of 40°C ± (the highest temperature is found between the local time
of 13 pm and 18 pm) and the extreme temperature of 49.8℃(occurred in June,
1984), owning a big temperature difference between day and night. It is cold in
winter (from December to February of the following year), and the minimum
temperature was-9℃ (occurred in December 1986).
109
It is dominated by northwest wind, with an average speed of 2.0-5.5m/s and a

maximum speed of 8.57m/s.
Table 8-1 Annual maximum rainfall for 24h
Water year Annual maximum rainfall for 24h(mm)
1983 16.3
1984 6.5
1985 17.7
1986 2.7
1987 3.5
1988 7.0
1989 8.0
1990 6.8
2004 17.0
2005 36.0
2006 1.3
2007 13.0
2008 31.4
2009 6.0
2010 4.5
2011 15.0
2012 7.0
2013 19.1
(3)Seismic data: basic seismic intensity is Ⅶ.
8.2.2 Site selection of TSF
8.2.2.1 Determination of TSF capacity
According to the data provided by the Owner, the total amount of residual ore in
the south and north ore bodies is about 500.0×104t; and total amount of ore in
the east ore body is 8559.5×104t. Considering that the tailings productivity is
99.0%, and the dry bulk density is calculated as 1.4t/m3, the total tailings amount
is 8968.9×104t, and the tailings accumulation volume is 6406.4×104m3.
The existing Xigou TSF of the mine is located about 2km to the east of the
beneficiation and metallurgy plant area. The designed final stacking elevation is
960m and the current stacking elevation is about 940m. According to the 1:2000
topographic map, the total remaining capacity is estimated to be about
3542.14×104m3.
110
The capacity of TSF required to discharge tailings within the service life of
concentrator is calculated. See table 8-2 for details.
Table 8-2 Calculation sheet of required storage capacity
Calculation item Unit Amount

Total QTY of tailings discharged
104t 8968.9
within service life
Average dry density of stockpiled
t/m3 1.4
tailings
Total volume of stockpiled tailings
104m3 6406.4
(Effective capacity of TSF required)
Utilization coefficient of final capacity
0.85
of TSF
Total capacity of TSF required 104m3 7536.9
Total remaining capacity of existing
104m3 3542.1
TSF
Total capacity required for this design 104m3 3994.8
8.2.2.2 Site options
According to the topographic map around the mining area, there are three
suitable TSF sites: a. Existing Xigou TSF; b. Dongdagou TSF on the east side of
Xigou TSF; c. Chaigou TSF on the west side of Xigou TSF. The location map of
the optional TSF is shown in Figure 8-1, and the comparison and selection of the
site are shown in table 8-3.
The design of the existing Xigou TSF was completed in 1991, with the final
stacking elevation of 955m, and the total storage capacity of 6800×104m3. In
2014, when designing the mining of the north ore body, the TSF was raised to an
elevation of 960m, and the storage capacity was increased by about 800×104m3.
According to the topographic map measured in November 2019, when the TSF
reaches an elevation of 960m, it is basically close to the ridges on both sides of
the TSF. If the bearing length of the sub dam is increased to about 3.5km, the
type of three sides of dam and one side of mountain will be formed, which will
make the later operation and management difficult. In order to meet the needs of
concentrator operation, the TSF should be raised to 984m elevation. At this time,
the total dam height of the TSF is 96.0m, and the total storage capacity is about
1.36×108m3. According to the classification of TSF in Code for Design of Tailing
Facilities (GB 50863-2013), it has been classified as the second class.
Dongdagou TSF is closely located in the east side of Xigou TSF. According to
the topographic map, the terrain of Dongdagou TSF area is relatively flat. If a
tailings dam is built at the downstream pass of the ditch, the storage capacity
can reach about 6500×104m3, but the catchment area of the TSF is large.
According to the Basic Design of Saindak Copper and Gold Mine Project in
Balochistan, Pakistan (Beijing Non-ferrous Metallurgy Design and Research
Institute, August 1991) (hereinafter referred to as the Basic Design), the
catchment area of the TSF is about 393km2. To build a new TSF at this site will
require complex flood prevention and drainage works and a large investment.
111
Chagou TSF is located in the adjacent valley on the west side of Xigou TSF. The
terrain in the valley is gentle and open. The longitudinal slope of the main ditch is
about 2.0%, the length is about 2.5km, and the width is about 1000m. The
tailings dam will be built at the mouth of the south ditch. The TSF has a total dam
height of 52.0m and a total storage capacity of 4177.7×104m3. Thus, this TSF is
identified as Class III. It can meet the needs of tailings discharge capacity within
the service life of concentrator.
Figure 8-1 Location of optional TSF sites
Table 8-3 Comparison on TSF site options
Description Heightening of
Dongdagou TSF Chagou TSF
Work content: Xigou TSF
The valley at a The valley at a The valley at a
straight line straight line straight line
distance of about distance of about distance of about
Site
2.0km to the east 3.5km to the east 1.5km to the
side of side of southeast side of
TSF concentrator concentrator concentrator
Overview Catchment area
3.11 393.00 2.86
(km2)
4357.62
Storage capacity
(Increasing total 6500.00 4177.65
(104m3)
storage capacity)
Land area 50.00
353.83 196.84
(hm2) (Increase)
In the initial stage, In the initial stage,
Using the original
the dam height is the dam height is
initial dam, there is
13.0m, and the 16.0m, and the
Starter dam no dam
dam construction dam construction
construction
volume is about volume is about
volume.
22.0×104m3. 36.3×104m3.
Tailings dam
The stacking
The stacking The stacking
height increases
height is 30.0m, height is 36.0m,
Dam in the later by 24.0m, and the
and the average and the average
stage average axis
axis length of the axis length of the
length of the
subdam is 1.5km. subdam is 2.3km.
subdam is 3.5km.
112
Description Heightening of
Dongdagou TSF Chagou TSF
Work content: Xigou TSF
Conveying mode Pressurized Pressurized Pressurized
Conveying system Average length of
6km 7.5km 4.5km
conveying pipeline
(1) Small
catchment area;
(2) Storage
capacity meeting
requirement;
(3) The minimum (1) Due to the
land occupation large catchment
area; area, the flood (1) The smallest
(4) The existing prevention catchment area;
starter dam can be measures will be (2) Storage
used; costly; capacity meeting
(5) Despite of the (2) Storage requirement;
long conveying capacity meeting (3) Small land
pipeline, the requirement; occupation area;
existing pipeline (3) Large land (4) Large damming
can be used; occupation area; quantities in initial
(6) Detailed (4) Small damming stage;
investigation on quantities in initial (5) The shortest
the existing TSF stage; conveying pipeline,
Advantages and disadvantages
should be (5) The longest and thus the small
conducted to conveying pipeline, pipeline cost;
further and thus the (6) Building a new
demonstrate the largest pipeline TSF will exert little
feasibility of cost; influence on the
hightening the (6) Building a new existing TSF;
dam; TSF will not affect (7) Duo to the
(7) Duo to the the existing TSF; short axis of
longest axis of (7) Duo to the sub-dam, the
sub-dam, the shortest axis of management in
management in sub-dam, the later period will be
later period will be management in easy.
difficult; later period will be
(8) The safety risk easy.
of heightening the
existing TSF is
higher than that of
building a new
TSF.
As shown in Table 8-3, the Forked Gully TSF has the largest starter dam
quantities but the smallest catchment area, the shortest pipeline, and the easy
management in later period. Consequently, the Forked Gully TSF was
recommended in this design.
Details on the Forked Gully TSF are as follows.
113
8.2.3 TSF
8.2.3.1 General picture of TSF
The Forked Gully TSF is located in an adjacent valley on the west side of the
current Western Gully TSF. The terrain in the valley is gentle and open. The
longitudinal slope of the main gully is about 2.0%, the length is about 2.5km, and
the width is about 1000m. The starter dam will be built at the mouth of the
southwest gully of the valley, with a watershed elevation of 930m-1100m and a
catchment area of 2.86km2. The dam’s usable space within the designed
capacity range from 930m to 960m. The land occupation area is 196.84hm2.
8.2.3.2 Storage capacity curve of TSF
Details about the area and capacity of TSF at different elevations are shown in
Table 8-4. The H-F (elevation-area) and H-V (elevation-capacity) curves of the
TSF can be drawn according to the data in Table 8-4, as shown in Figure 8-2 and
Figure 8-3.
Table 8-4 TSF area and storage capacity calculation sheet
Dam Elevation Cumulative

Area Volume
Elevation (m) height difference volume
(104m2) (104m3)
(m) (m) (104m3)
--- ---
908.0 0.0 0.41
2.0 2.16 2.2
910.0 2.0 1.9
10.0 138.8 141.0
920.0 12.0 31.8
4.0 167.5 308.5
924.0 16.0 52.8
6.0 381.8 690.3
930.0 22.0 75.1
10.0 913.5 1603.8
940.0 32.0 108.6
10.0 1196.0 2799.8
950.0 42.0 131.0
10.0 1377.9 4177.7

960.0 52.0 144.7
114
Figure 8-2 H-F curve of TSF
Figure 8-3 H-V curve of TSF
115
In this design, the elevation of the bottom of the starter dam axis is 908.0m, the
final elevation of the dam crest is 960.0m, the total dam height is 52.0m, and the
total storage capacity is about 41,777,000m3, which is greater than the required
storage capacity of 39,948,000m3. Therefore, the TSF can meet the storage
requirements for tailings discharged within the service life of the concentrator.
8.2.3.3 Category of TSF
Detailed regulations on TSF category from the Design Code for Tailings Facilities
(GB50863-2013) is included in Table 8-5. The Code stipulates that when there is
only one category difference between the TSF category determined separately
by whole capacity and dam height, the higher category will prevail; but when the
category difference is more than one, the TSF category will be determined by
lowering the higher one by one category.
Table 8-5 Category of TSF
Category Total storage capacity V (104m3) Dam height H (m)
I V≥50000 H≥200
II 10000≤V<50000 100≤H<200
III 1000≤V<10000 60≤H<100
IV 100≤V<1000 30≤H<60
V V<100 H<30
The TSF has a total dam height of 52.0m and a total storage capacity of
41,777,000m3. Thus, it is identified as Class III as per Table 8-5.
8.2.3.4 Tailings dam
The TSF dam consists of starter dam and embankment dam. The starter dam is
permeable rockfill dam, and is dammed by local materials. The embankment
dam is heightened gradually by upstream method.
(1) Starter dam
Considering the amount of tailings 0.8 years after the concentrator is put into
operation, the free storage capacity occupied by the freeboard of the tailings
dam, the flood regulation capacity required for an initial flood, and the
requirements for meeting clarification distance, the height of the starter dam in
this design is determined to be 16.0m. Related data are seen in Table 8-6.
116
Table 8-6 Information concerning starter dam
Bottom elevation(m) 908.0
Crest elevation(m) 924.0
Dam height (m) 16.0
Crest width (m) 10.0
Dam axis length (m) 1309.4
Rockfill quantity(104m3) 36.3
The effective storage capacity formed by the starter dam is 3,085,000m3, and
the service life is 0.8 years. The starter dam is dammed by rockfill, the upstream
dam slope is 1:2, and the downstream dam slope is also 1:2. A 5.0m wide berm
is set up on the downstream dam slope at 914.0m elevation. The upstream dam
slope is provided with gravels and a layer of non-woven geotextile to serve as
the inverted filter. In order to prevent the rainwash on the two dam shoulders,
intercepting drains are arranged on the dam shoulders to guide the water from
the slopes on both sides of the dam to the downstream of the starter dam.
(2) Embankment dam
According to the tailings tonnage and size, and by referring to the operation of
Western Gully TSF, the upstream damming will be adopted in the later period.
The embankment dam can be heightened by sub-dams in stages. The height of
sub-dams in each stage is 2.0m, outer dam slope 1:4.0, inner dam slope 1:2.0,
dam crest width 2.0, and the average outer slope of the embankment dam is
kept at 1:5. Referring to the Western Gully TSF, the slope of deposit beach is
taken as 1.0%. The final elevation of the tailings dam is 960.0m, the total dam
height is 52.0m, the height of the embankment dam is 36.0m, and the average
ascent rate of the embankment dam is 1.9m/a.
In order to improve the drainage of the outer slope of the embankment dam,
reduce the phreatic line, and ensure the safety and stability of the tailing dam, in
this design stage, it is temporarily considered to lay a layer of horizontal
drainage pipe on the tailings deposit beach every 10m upwards. The longitudinal
slope of the horizontal drainage ditch is not less than 1%, and the length of the
horizontal drainage pipe is not less than 50m.
In order to prevent rainwash on the surface of the embankment dam, vertical

and horizontal drainage ditches are set on the dam surface during the ascent of
the dam, and the drainage ditches are connected with the interception drains on
the starter dam shoulders.
(3) Auxiliary dam
An auxiliary dam should be built on the lealock of the western tail of the Forked
Gully TSF. The auxiliary dam adopts C20 rubble concrete structure, the dam axis
length is 88.8m, the maximum dam height is 10.0m, the dam crest elevation is
960.0m, and the dam crest width is 2.0m. The inner dam slope is vertical, the
117
outer dam slope is 1:1.0, and the damming volume is about 3821.1 m3.
8.2.3.5 TSF flood discharge facilities
(1) Flood control standard of TSF
According to the Code for Design of Tailing Facilities (GB50863-2013), the TSF
falls into Category VI in initial stage but Category III in later period. As shown in
H-V curve, the storage capacity of TSF is 12,000,000m3 at the dam crest
elevation of 936.0m, and the dam height is 30m, indicating that the TSF falls into
Category III. Considering the storage capacity, dam height, category of the TSF,
the flood control standard of the TSF in this design is once in 200 years (P=0.5%)
in initial period but once in 500 years (P=0.2%) in later period.
(2) Flood calculation
Due to its good adaptability to rainfall in small watersheds, the reasoning formula
was adopted to calculate the flooding of the TSF. Detailed hydrological data of
the project are unknown up to now. According to the comparison of the
hydrological data including the annual average rainfall, average annual
evaporation, and average annual maximum 24-hour rainfall with those of various
regions in China, it was found that the hydrological condition of the project was
similar to that in the northwest of Alxa League, Inner Mongolia Autonomous
Region. Consequently, the flood calculation referred to the hydrological data in
the northwest of Alxa League, the Inner Mongolia Hydrographic Atlas, and the
Reference Materials for Tailings Facility Design. See Table 8-7 for details of
selected basic parameters for flood calculation.
Table 8-7 Parameters for flood calculation
Parameters Value
Catchment area F(km2) 2.86
Length of main river channel L(km) 2.64
Average slope of main river channel J 0.046

Average annual maximum rainfall in 24
H
hours 24 (mm)
13.05
Rainstorm attenuation index n1 & n2 0.55，0.65
Catchment parameter m 1.5
Runoff coefficient in 24-hour rainfall α24 0.8
The method of simplified reasoning formula was adopted to calculate the

rainstorm flood of TSF. By putting the above-mentioned parameters into such
formula, the flood peak flow and 24-hour flood volume of all designed frequency
were calculated, which can be seen in Table 8-8. See Figure 8-4 and Figure 8-5
for the flood process curve under all designed frequency.
118
Table 8-8 Flood calculation results
24-hour Rainstorm intensity

Flood peak flow Total flood volume
Frequency precipitation Sp(mm/h)
Qp(m3/s) Wp(104m3)
H24p(mm)
P=0.5%
65.22 21.45 21.46 14.92
Once-in-200-Year
P=0.2%
76.47 25.14 25.82 17.50
Once-in-500-Year
Figure 8-4 Curve of once-in-200-year flood
Figure 8-5 Curve of once-in-500-year flood
119
(3) Drainage facilities
Taking into account the local climate characteristics and the operation of the
Western Gully TSF, the flood discharge facilities adopt the spillway type. The
construction of the spillway is completed before the flood season each year, the
inlet extends into the dry beach in the TSF at least 200m, and the water intake
elevation is at least 2.0m lower than the elevation of the dam crest. The water
outlet is connected to the diversion channel and adopts a trapezoidal section,
reinforced concrete structure, with a bottom width of 1.5m, a depth of 1.0m, a
slope ratio of 1:1.5, and a minimum longitudinal slope of 0.01.
The diversion channel is set on the mountain on the southwest side of the TSF,
the upstream is connected to the temporary spillway built during the annual flood
season, and the downstream is connected to the valley downstream of the
starter dam. The diversion channel has a trapezoidal section, reinforced
concrete structure, with a bottom width of 1.5m, a depth of 1.0m, a slope ratio of
1:1.5, and a minimum longitudinal slope of 0.015. Under the premise of ensuring
smooth flood discharge, it can be constructed in stages according to site
conditions.
(4) Flood control calculation
The water balance method is used for flood control calculation. The flood control
calculation of the TSF is divided into two working conditions of the initial period
and the later period. In the initial period, the top elevation of tailings deposit
beach is 930.0m as a typical situation for Category-VI TSF but 950.0m as a
typical situation for Category-III TSF in the later period.
Based on the flood calculation results, flood control capacity, and arrangement
and dimension of selected flood discharge facilities, the flood control calculation
of two working conditions was carried out to verify and determine the dimension
of flood discharge facilities.
See Table 8-9 in detail for the flood regulating calculating results of working
conditions at the early and later period of TSF.
Table 8-9 TSF flood control calculation results
Working conditions Initial period Later period

Flood return period (year) 200 500
Crest elevation(m) 930.0 950.0
Flood-limiting water level(m) 928.0 948.0
Flood regulating height(m) 1.5 1.3
Flood regulating storage capacity (10 m )
4 3
52.0 98.9
Highest flood level (m) 928.30 948.17
Freeboard (m) 1.7 1.83
Maximum discharge volume (m /s) 3
1.49 0.69
120
During the later period of TSF operation, the feed water elevation of temporary
spillway is 928.0m. According to flood control calculation, the required flood
regulating height is 0.3m, and the required flood regulating storage capacity is
104,400m3, namely the maximum flood level is 928.3m. The embankment dam
crest elevation is 930.0m, and the maximum flood level is 1.7m lower than the
dam crest elevation, which meets the requirement stipulated in the code. See
Figure 8-6 for the flood control process curve.
Figure 8-6 Flood control process curve at the typical situation in initial
period
At the typical situation in the later period of TSF operation, the feed water
elevation of temporary spillway is 948.0m. According to the flood control
calculation, the required flood regulating height is 0.17m, and the required flood
regulating storage capacity is 132,600m3, namely the maximum flood level is
948.17m. The embankment dam crest elevation is 950.0m, and the maximum
flood level is 1.83m lower than the dam crest elevation, which meets the
requirement stipulated in the code. See Figure 8-7 for the flood control process
curve.
121
Figure 8-7 Flood control process curve at the typical situation in later
period
Through the above-mentioned flood regulating calculation, it can be seen that

the selected TSF flood discharge facilities can meet the requirement of flood
discharge and timely discharge the flood in the TSF.
According to the flood control calculation, the length of the dry beach during the
flood season in this design is 200m. According to the operating experience of the
Western Gully TSF, the length of the dry beach during the flood season can
reach about 400m. If the Forked Gully TSF can maintain a 400m dry beach
during the flood season, the flood regulation capacity will be much larger than
the total flood at design frequency, and the safety level will be higher than the
200m dry beach length in this design.
8.2.3.6 TSF monitoring facilities
As the embankment dam is stacked by natural hydraulic filling, the material

division of each part of the dam is affected by the ore discharge flow, the tailings
size, and the topography. Meanwhile, the height of the phreatic line of the dam is
also affected by the tailings stacking size. Therefore, in order to ensure the
safety of the dam, monitoring facilities must be buried in an appropriate position
of the dam. In this design, by combining with site conditions, the tailings dam
monitoring facilities mainly include dam displacement monitoring, seepage
monitoring, dry beach monitoring, water level monitoring, and precipitation
monitoring. The details concerning the tailings dam monitoring facilities are as
follows:
(1) There are 5 displacement monitoring points in starter dam and 26 in

embankment dam.
122
(2) There are 5 phreatic line monitoring points in the initial period (included in
CAPEX) and 15 in the later period.
(3) Two sets of dry beach monitoring facilities;
(4) There are 2 sets of water level gauges in the TSF area.
(5) One set of precipitation monitoring instrument.
8.2.3.7 TSF management station
A TSF management station is set on the east should of the tailings dam. The
size of the management station is 24m×9m×3m. The station is provided with
monitoring center, emergency materials warehouse, maintenance materials
warehouse and other facilities.
8.2.3.8 Closure and of TSF and reclamation
When the TSF reaches the design final stacking elevation, it should be closed to
maintain its long-term safety and stability, and the reclamation work should be
conducted after closure.
The closure of the TSF shall be on the premise of making clear the resulting
hidden dangers and risks. Feasible control plans shall be put forward to avoid
various hidden dangers, including control of dam body, flood discharge system,
surrounding environment and monitoring facilities, etc.
Reclamation of the TSF is conducted based on the principle of techno-economic

rationality. Both natural conditions and land types are considered for choosing
the proper use of reclaimed land. Overall treatment measures will be taken
according to local conditions.
8.2.4 Tailings conveying system
8.2.4.1 Current situation of tailings thickening and conveying facilities
The density of the tailings discharged from the concentrator is 26.3%. The
tailings flow to a high-efficient thickener by gravity and is then thickened to
36.0%-40.0% before being pumped to the TSF. The high-efficient thickener is
provided with a diameter of 27.4m and arranged vertically.
The dimension of a tailings conveying and thickening water pump station is

42.6m×12.0m. Three 12/10ST-AH slurry pumps (head 21.0m-45.0m, lift capacity
1000 m3/h-1620m3/h, motor power 500kw) with a fluid coupling are arranged in
the station. The tailings are conveyed by 1# and 3# slurry pumps in series to the
far end of the tailings dam, and by 2# slurry pump to the near end of the tailings
dam. Three pumps (head 60m, lift capacity 540m3/h, motor power 132kw) for
return water are adopted. And two water seal pumps (DA1-100×6, head 105m,
lift capacity 54m3/h, motor power 30kw) are also adopted. The elevation of the
pump station is 977.15m. A flocculent preparing system is also arranged in the
pump station.
123
Two φ426×10mm steel pipes are used for the tailings conveying. The length of
1# pipe is about 3.9km from the near end of the TSF, and the length of 2# pipe is
approximately 7.1km from the far end of the TSF.
8.2.4.2 Review of tailings thickening and conveying facilities
As the east orebody is mined, the processing capacity of the concentrator

remains unchanged, so the existing thickening facilities can be used for the
tailings thickening. According to the calculation of the existing slurry pump and
conveying pipeline, the head required for conveying the tailings to the final dam
crest elevation of 960.0m is shown in the following table.
Table 8-10 Calculation sheet of head and flow required by the pump station
Description The existing concentrator
Geometric difference H (m) -17.15
Slurry proportion 1.276
Pipe length L (m) 5700
Hydraulic slope i (%) 2.4
Linear loss Py (m) 136.78
Local loss Pj (m) 13.68
Pump station loss Pn (m) 3.0
Remaining head Pz (m) 3.0
Total head to convey clear water needed Pk(m) 135.0
Tailings weight concentration Cw (%) 36.0
Slurry pump head reduction rate Kp 0.91

Head reduction rate after abrasion of slurry pump
0.90
Km
Total head required by slurry pump Pb (m) 129.12
Flow rate needed (m3/h) 1156.10
It can be seen from the calculation that if the existing slurry pump and conveying
pipeline are used, the slurry pump head will fall short of later stage demands.
Moreover, the head loss along the way is relatively huge because of the small
diameter of the tailings conveying steel pipe. At present, the slurry pump head
for conveying to Western Gully TSF is increased by using high-power motors
and cascade to meet the usage demands.
In this design, it is recommended to replace the tailings conveying pipeline with

φ529×7mm steel pipe. After the replacement of the conveying pipe, it’s
calculated that the hydraulic slope is down to 0.7%, the linear head loss is
reduced to 40.5m, and the total head required of the slurry pump is 27.8m. Then
the slurry pump can satisfy usage demands.
124
The tailings conveying pipes are laid along the existing direction to the eastern
ridge of the Forked Gully TSF, and then along the initial dam crest in the TSF. In
later stage, the pipes will be elevated as the sub-dam builds up. Two conveying
pipes are provided, with a 4.0km one connected to the proximal end of Forked
Gully, and the other 5.7km one extending along the axis of the sub-dam to the
farthest end.
8.2.5 Seepage water recycle system
Since the initial dam is a permeable rock-fill dam and the on-site water source is
inadequate, to fully utilize water resource and prevent downstream water
pollution by TSF seepage, the seepage water will be reclaimed. To this end, a
seepage interception dam is set at about 200.0m downstream of the TSF initial
dam. The interception dam height is 8.0m, the crest width 2.0m, the crest length
about 72.6m, and is built in concrete structure with a concrete volume of about
1500.0m3. Due to the lack of geological data, it is uncertain whether the seepage
interception dam needs to be grouted. In this design, curtain grouting to the
relatively impermeable layer under the foundation of the interception dam is
temporarily considered.
The seepage water reclaimed by the interception dam is pumped back to the
concentrator. A seepage recycle pump station is set up near the interception
dam. The size of the pump station is: length×width×height=15.0m×9.0m×6.0m,
with 3 reclaimed water pumps (80WFB-E2 type, 2 for use and 1 standby). The
main technical parameters of the pumps are: Q=70.0m3/h, H=70.0m, N=37.0kW,
and each pump is equipped with variable frequency speed regulation.
A seepage recycle pipeline is laid along the surface from the seepage recycle
pump station to the concentrator, with specifications of DN300 and a length of
about 1.2km.
8.2.6 TSF return water system
The current status of TSF reclaimed water facilities are as follows: the clarified
water of TSF is pressurized by a clear water pump and conveyed to the 5000m3
TSF overhead tank close to the concentrator. The TSF reclaimed water intake
pump station (12.8m×6.0m) is arranged close to the Western Gully TSF; three
200D-43×5 multi-stage centrifugal pumps (head 192.5m-237.5m, flow rate
190.0m3/h -346m3/h) are arranged in the pump station, with two of them
operating simultaneously; another SK-0.8 type vacuum pump is also provided.
The pump station is generally relocated 6.0m higher every 3 years. As the TSF
gets higher and larger, the pump station needs to be relocated further back.
There are two tailings reclaimed water pipes; one is a φ325×8mm steel pipe with
a total length of around 2230.0m, the other is φ377×9mm steel pipe. The bottom
elevation of the tailings reclaimed water elevated water tank is 1,010.00m.
As the capacity and process of the concentrator remain the same, the backwater
volume of the tailings pond will not change significantly. As is calculated, the
existing reclaimed water system can meet the needs of Forked Gully TSF, and
will be relocated to the middle hill of the TSF after it's put into operation, without
125
new facilities to be added.
The original φ377×9mm steel pipe is laid underground as reclaimed water pipe,
with its length increased by 900.0m.
8.2.7 Issues and suggestions
(1)To lower the initial cost, the existing equipment is used to the largest extent,
and the high-concentration stacking option is not adopted. Since on-site water
resource is scarce, it is recommended to carry out research on the
high-concentration stacking option, conduct tailings settlement test and tailings
stacking test, carry out tailings concentration and tailings discharge stacking
design based on the test results, and compare with this scheme in terms of
techno-economics.
(2)The hydrometeorological data provided by the Client is relatively small. In this

design, the relevant hydrological data in the northwest of the Alxa League, Inner
Mongolia Autonomous Region was adopted as the basis based on partial
hydrological data of the project and comparative analysis. The parameters are
selected with reference to the Hydrometeorological Manual of Inner Mongolia
Autonomous Region, Tailings Facilities Design Reference Materials and
topographic maps. The accuracy of flood calculations may be affected.
(3)In the next stage of work, the hydrogeological and geotechnical survey on
TSF areas, buildings and structures should be conducted.
126
Chapter 9 Pre-production and
Production Schedule
9.1Pre-production
9.1.1 Pre-production works
East open-pit-mined orebody is the mine following the south and north
open-pit-mined orebody, and possesses Pre-production works mainly including:
1 Build transport roads from the open-pit mining area to the primary crushing
station & the waste rock dump to form complete transport connections between
the mining and stripping working face and the ore-rock unloading site in the
open-pit mining area;
2 Strip part of the ore-rock to form a working face for normal working of
equipment. In addition, the tenure of development reserves shall not be less
than 1 year and that of extraction reserves shall not be less than 3 months;
3 Construct a tailings pond and extend tailings delivery pipelines & the
reclaimed water pipeline of tailings pond;
4 Reconstruct water pipelines between the water resource area and the water
reservoir of plant area, and between the water reservoir of plant area and the
elevated water tank, as well as between elevated water tank and each plant.
9.1.2 Quantities of Pre-production
Designed quantities of Pre-production
Ore transport highway: 600m
Waste rock transport highway: 500m
Pre-production stripping: 7,724,000 m3
20,700,000 t
Where, Stripped waste rock: 6,978,000 m3
18,700,000 t
By product ore: 746,000 m3
2,000,000 t
Tailings dam: 500m
127
Tailings delivery pipeline: 4km
Reclaimed water pipeline of tailings pond: 2km
Flood prevention and drainage facilities of tailings pond: 5km
Tailings reclaimed water pump station: 12.79m×6m
Reconstructed water pipeline: 15km
9.1.3 Arrangement and period of Pre-production
East open-pit-mined orebody is the mine following the south and north
open-pit-mined orebody, and possesses Pre-production mainly containing
construction of ore and waste rock transport highways, Pre-production stripping
for mine, and providing sufficient and available facilities for the enterprise to
satisfy production requirements. As Saindak copper-gold mine has been
produced for many years, the concentrator, smelter and public auxiliary facilities
can almost satisfy production requirements. Except the waste rock dump,
tailings pond, part of the tailings facilities, and delivery pipelines between the
water resource area and water reservoir of the plant area need to be constructed,
other facilities just need to be replaced, which brings a small work load and will
make little impact on construction cycle. To this end, the construction cycle
mainly depends on Pre-production stripping.
As the east open-pit-mined orebody is the mine following the south and north
open-pit-mined orebody, the schedule of its Pre-production shall be arranged
with the plan of mining and stripping of the south orebody for continuous and
stable production of the concentrator and smelter.
Based on the mining schedule of the south orebody, the total mining and
stripping quantity of 2013 will reduce to 10,870,000 t/a, for which 3 drillers and 3
electric shovels will be needed, and 1 driller and 2 electric shovels will be
standby; the total mining and stripping quantity of 2014 will further reduce to
6,800,000t/a where the ore output will reduce to 3,300,000 t/a, for which 2
drillers and 2 electric shovels will be needed, and 2 drillers and 3 electric shovels
will be standby; mining of the south orebody will be completed in 2017. The total
quantity of mining and stripping in the north orebody in 2018 is 8 million t, while
that in the south orebody in 2018 is 2.6 million t because of the pit wall
expansion. In accordance with stripping quantity for open-pit mining
Pre-production of the east orebody, the Pre-production period is set as 2a
preliminarily including 0.5a for the construction of ore and waste rock transport
highways and 1.5a for Pre-production stripping.
9.2 Production schedule
The open-pit, after its development is finished, will be put into operation
immediately. As in the initial period of production of open-pit mining of the east
orebody, the mining of south orebody has not been finished and possesses
certain capacity of ore production, based on the mining schedule of the south
orebody, the quantity of the ore open-pit-mined from the east orebody in 2022
128
which is the year the orebody is started to be put into production will be
4,250,000 t/a; the design production scale can be achieved in the year of
production and maintained for 18 years; production will start to be reduced from
2041, and the mining will be finished at the end of 2041. Total service life is 19a.
See Table 9-1 for Pre-production and production schedule.
129
Table 9-1 Pre-production and production schedule

Pre-production Production
Year
1 2 1 2 3 4 5 6 7 8 9
Ore & rock (104t) 1035 1035 1035 1035 1035 1035 875 875 875 765 765
Ore (104t) 50 150 425 425 425 425 425 425 425 425 425
Grade (%Cu) 0.359 0.325 0.317 0.318 0.318 0.325 0.334 0.343 0.343 0.338 0.337
Copper (t·Cu) 1795 4874 13481 13522 13522 13810 14181 14594 14594 14346 14305
Rock (104t) 985 885 610 610 610 610 450 450 450 340 340
Ore transport distance (km) 1.50 1.50 1.80 1.80 2.50 2.50 2.50 3.00 3.00 3.50 3.50
Waste rock transport distance (km) 1.50 1.50 1.50 1.50 2.00 2.00 2.50 3.00 3.00 3.50 3.50
Production
Year
10 11 12 13 14 15 16 17 18 19 20
Ore & rock (104t) 765 765 765 680 680 680 680 625 530 485 296.5
Ore (104t) 425 425 425 425 425 425 425 425 425 425 284.5
Grade (%Cu) 0.355 0.362 0.368 0.368 0.373 0.388 0.412 0.441 0.453 0.403 0.408
Copper (t·Cu) 15088 15377 15624 15624 15872 16490 17521 18757 19252 17108 11604
Rock (104t) 340 340 340 255 255 255 255 200 105 60 12
Ore transport distance (km) 4.00 4.00 4.50 4.50 4.50 5.00 5.00 5.00 6.00 6.00 6.00
Waste rock transport distance (km) 4.00 4.00 5.00 5.00 5.00 5.50 6.00 6.00 7.00 7.00 7.00
130
Chapter 10 Investment Estimate

10.1 Overview
The open-pit mined east ore body of Saindak Copper-Gold Mine is regarded as
the continuous mine for existing south and north ore body, which is mainly mined
by means of current equipment to supplement the disappeared production
capacity of open-pit mining of south ore body and to supply the ore for the
existing concentrator, so as to extend the service life of enterprise. The
construction scale of open-pit mining in east ore body is 4.25 million t/a and
12500t/d. The production capacities of original concentrator and smelter are not
changed. The main construction of the Project includes the transportation roads
from the open-pit mining area of east ore body to waste rock dump, maintenance
and expansion of the existing ore transportation road, Pre-production stripping of
open-pit mining area, 500m newly-built tailings dam, 4km tailings transportation
pipeline, 2km TSF reclaimed water pipeline, 5km TSF flood control and
discharge facilities and 12m×6m reclaimed water pump station of tailings.
The open-pit mining of the east orebody of the Saindak copper and gold mine in
Pakistan, as a continuation of the existing open-pit mining of the south and north
ore body, is mainly carried out by using the existing equipment of the enterprise
to supplement the lost production capacity of the open-pit mining of the southern
ore body and provide ore for the existing concentrator so as to prolong the
service life of the enterprise.
The new construction investment of the project is 44,037,000 USD, which will be
put into use within 2 years of the Pre-production period. See Table 10-1 for
investment estimation.
131
Table 10-1 Investment estimate
S/ Cost (1,000 USD)

Description
N Construction works Equipment Installation works Other expenses Total value
Part I: Project Cost
I Major production works
1 Geological exploration 1000 1000
2 Pre-production stripping 24219 3600 27819
3 Power supply line of mining area 300 15 10 325
4 Tailings dam 1750 1750
5 Drainage facilities 950 950
6 Environmental dam 150 150
7 Transportation pipeline for tailings 2000 2000
8 Pipeline of reclaimed water pump station for tailings 850 200 20 1070
132
Continued Table 10-1 Investment estimate (Unit: k USD)
S/ Cost (1,000 USD)

Description
N Construction works Equipment Installation works Other expenses Total value
9 Management station of tailings pond 60 70 130
Total of Part I 31279 3885 30 35194
Part II: Other Costs
1 Cost for feasibility study 700 700
2 Project insurance expense 460 460
3 Cost for combined commissioning cost with no-load 230 230
4 Cost for combined commissioning cost with load 130 130
5 Cost for project survey 1200 1200
6 Cost for project design 2000 2000
7 Expenses for project bid invitation and evaluation 120 120
Total of Part II (other costs) 4840 4840
Total costs of Part I and Part II 31279 3885 30 4840 40034
Basic contingency cost 3128 389 3 484 4003
Total estimated investment 34407 4274 33 5324 44037
133
10.2 Issues and suggestions

The upgrading and transformation of the existing beneficiation and smelting
facilities are not included in the investment in this feasibility study report The
Saindak Copper-Gold Mine has been built for 25 years and has been in
continuous production for nearly 20 years. In future production, there might be
upgrading and transformation of the concentrator or smelting-related facilities.
Increasing investment economic benefits may be reduced. In addition, the ore
mined from the east ore body in the early stage can be proportioned with the
remaining high-grade ore from the south ore body to ensure the stability of the
beneficiation indicators. In later stage, if the feed only contains ore from eastern
ore body with low grade, it will be difficult for the copper concentrate grade to
reach the standard. Therefore, the beneficiation process of the concentrator
needs to be transformed. If the later-stage transformation cost incurs, further
evaluation on the project’s revenue will be carried out based on the process
transformation costs incurred.
134
Chapter 11 Technical Economy

11.1 Overview
Project of Open-pit Mining of the East Orebody of Saindak Copper-Gold Mine in
Pakistan, as the continued mine construction project of open-pit mining of the
South and North Orebody, is mainly mined by means of current equipment to
extend the service life of enterprise through newly-built mine, waste rock dump
and tailings pond as well as renewed utilities & auxiliary facilities, so as to make
full use of existing assets of the enterprise. The construction scale of the project
is 4.25 million t/a and 12500t/d for ore processing and the service life is 20 years.
Meanwhile, the existing production and auxiliary facilities are used in the project
and only the mine and tailing pond shall be newly built. Therefore, the cost
estimate refers to the actual production cost of the enterprise and similar
enterprises and is adjusted based on the actual conditions of new mine.
11.2 Capital use plan

The total investment of the project is 45.472 million USD, with 44.037 million
USD being capital cost and 1.435 million USD being the interest during
construction period.
Working capital refers to the revolving fund occupied by the project to maintain
normal production. This project adopts detailed estimation method of sub-items,
and the required working capital after delivery is 15,028,000 US dollars,
participating in the economic evaluation of this project.
As the continued mine construction, the existing production capacity of the

enterprise is not changed, and the existing working capital of the enterprise can
meet the production needs of the project. Therefore, there will be no increase in
working capital.
The investment of the project is estimated on the assumption that equity capital
accounts for 30% and the loan from bank takes up 70%. Based on this
calculation, the additional capital required for the project is 14,646,000 USD, and
the additional debt capital to be raised is 30,826,000 USD. Annual interest rate
of long-term bank loan is 4.90 %.
The construction investment will be divided for 2 years as per the construction
period, and the service life is 20 years.
See Table 11-1 for the additional financing and use plan.
135
Table 11-1 Additional financing and use plan Unit: 104 USD
S/N Description Total 1 2 3 4
1 Total investment 45472 20157 25316
1.1 Construction investment 44037 19817 24221
1.2 Interest in construction period 1435 340 1095
1.3 Working capital
2 Financing 45472 20157 25316
2.1 Capital 14646 6285 8361
Among the capital: For construction investment 13211 5945 7266
For working capital
For interest during construction period 1435 340 1095
2.2 Loan 30826 13872 16954
2.3 Other funds
11.3 Estimate of cost and expenses

11.3.1 Cost estimate
(1) Preparation scope
The scope of cost estimate includes the cost and other expenses incurred during
the whole process from the mining, output to blister copper sale, including
mining, beneficiation, smelting and auxiliary production.
(2) The costs for mining, beneficiation and smelting are estimated as per the key
indicators with reference to the actual cost of the enterprise in recent years. See
Table 11-2 for the unit cost composition of mining, beneficiation and smelting.
Table 11-2 Unit cost composition of mining and beneficiation
Auxiliary Spare Other

Description Fuel Power Labor cost Total Remarks
materials parts expenses
Calculated as
Mining and
0.305 0.123 0.013 0.058 0.271 0.130 0.90 per ore and
stripping cost ($/t)
rock
Calculated as
Transportation cost
0.017 0.086 0.054 0.043 0.20 per ore and
($/t.km)
rock
Beneficiation cost Calculated as
1.369 0.812 0.022 4.04 0.858 0.399 7.50
($/t) per ROM ore
Calculated as
Smelting cost ($/t) 2.004 27.453 72.126 27.127 35.992 10.298 175.00 per copper
concentrate
(3) Depreciation of fixed assets
136
Only the depreciation of fixed assets formed by the investment of the project is
considered. The straight-line depreciation is used with depreciation period of 15
years and a yearly depreciation of 3,031,000 USD.
(4) Amortization charge
The intangible and deferred assets are amortized for 10 years.
(5) Financial expenses
The financial expenses refer to the interest expenses incurred during the
production of long-term loans of enterprises.
(6) Maintenance cost
The mining and stripping equipment, designed and used for this time, are all the
existing equipment. It has been used for many years and is seriously aged.
Large and medium-sized repair is required to meet the production needs. Major
and medium-sized repair and technical renovation costs in production are
expected to occur every year in the future, and the specific amount will be
determined according to the actual operation of the equipment. Based on this
estimation, the cost of major and medium-sized repair and technical renovation
for each year before 2027 will be determined according to the plan submitted by
each production unit of the company, and will be temporarily calculated as
5,000,000 USD per year after 2027. This expense is incorporated into the
management expense.
(7) Management cost
According to the actual amount incurred by the enterprise in the past three years,
the production period will be calculated as 11,000,000 USD per year.
(8) Additional prospecting cost
381,000 US dollars will be added to the cost of production and prospecting every
year. This expense is incorporated into the management expense.
11.3.2 Cost and expenses
It is estimated that the average annual total cost in the year of stable production
is 75,697,000 USD, and the total cost per unit ore is 17.81 USD/t, of which the
operating cost is 17.16 USD/t, equivalent to a total cost per unit of blister copper
of 5,698 USD/t, and an operating cost of 5,489 USD/t.
The average annual total cost for stable production calculated by manufacturing
cost method is shown in Table 11-3.
See Table 11-4 for the estimation of annual total cost.
137
Table 11-3 Annual average total cost and expenses for stable production
Unit
Unit blister
Total cost Unit ore costconcentrate Percentage in total cost
S/N Description copper cost
(1,000USD) (USD/t) cost (%)
(USD/t)
(USD/t)
1 Manufacturing cost 55035 12.95 922.72 4143.05 72.70
1.1 Mining cost 12722 2.99 213.30 957.74 16.81
1.2 Beneficiation cost 31875 7.50 534.42 2399.55 42.11
1.3 Smelting costs 10438 2.46 175.00 785.75 13.79
2 Management expenses 15891 3.74 266.43 1196.30 20.99
3 Operating expenses 1993 0.47 33.41 150.00 2.63
4 Financial expenses 384 0.09 6.45 28.94 0.51
5 Total cost and expenses 75697 17.81 1269.14 5698.45 100.00
6 Among them: operating costs 72919 17.16 1222.56 5489.35 96.33
Annual throughput (t) 4250000 59644 13284
138
Table 11-4 Estimate of annual cost and expenses Unit: 104 USD
S/N Description Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
1 Purchased raw and auxiliary materials cost 209220 1054 3105 10795 10800 10902 10936 10476 10594 10594 10243 10238 10390 10424 10547 10216 10240 10370 10508 10425 10186 9753 6426
2 Purchased fuel cost 138608 583 1606 5430 5442 5960 6043 6047 6530 6530 6502 6490 7032 7115 7661 7285 7344 7814 8209 8261 8357 7487 4879
3 Purchased power cost 387421 2237 6658 19183 19188 19188 19219 19166 19207 19207 19120 19116 19196 19227 19254 19205 19227 19294 19401 19498 19497 19248 12883
4 Salary and welfare expenses 188698 855 2493 9234 9239 9565 9606 9175 9464 9464 9165 9159 9472 9513 9847 9387 9417 9689 9900 9744 9536 8948 5827
5 Maintenance cost 184417 468 1624 16356 6509 5940 5984 6927 6927 9527 9392 9392 9392 9392 9392 9287 9287 9287 9287 9220 9103 9048 12675
6 Other costs 358035 600 1714 17422 17429 17688 17738 17554 17807 17807 17650 17643 17937 17987 18268 17975 18011 18264 18492 18487 18432 17879 15252
7 Operating cost 1466400 5796 17200 78420 68607 69243 69527 69345 70528 73128 72072 72038 73419 73659 74970 73355 73526 74720 75796 75635 75111 72363 57942
8 Depreciation cost 45472 3031 3031 3031 3031 3031 3031 3031 3031 3031 3031 3031 3031 3031 3031 3031
9 Amortization charge
10 Interest expense 7305 1510 1510 1329 1171 947 611 224
11 Total costs and expenses (7+8+9+10) 1519177 5796 17200 82962 73149 73604 73730 73324 74171 76384 75104 75069 76451 76691 78001 76386 76557 77751 75796 75635 75111 72363 57942
Unit ore cost (USD/t) 17.75 11.59 11.47 19.52 17.21 17.32 17.35 17.25 17.45 17.97 17.67 17.66 17.99 18.04 18.35 17.97 18.01 18.29 17.83 17.80 17.67 17.03 20.37
139
11.4 Sales revenue, tax and profit

11.4.1 Product output and operation revenue
After the completion of the project, the production capacity of blister copper can
reach 13,284t/a (containing 98.5% Cu), among which Cu containing metal
13,084t/a, Au containing metal 182kg/a and Ag containing metal 1,971kg/a.
Electrolytic copper price is taken as 6,500 USD/t as the benchmark price for
revenue calculation, blister copper refining costs are calculated at 8.25 cents/b,
then the price of copper in blister copper of this project is 6,318 USD/t; the gold
price is 1,300 USD/Oz, the pricing coefficient of gold in blister copper is 90%; the
price of silver is 17.5 USD/Oz, and the pricing coefficient of silver in blister
copper is 85%. From this, it is calculated that the sales revenue in the year into
stable production is 90,455,000 USD.
The grades of gold and silver contained in the ROM ore of the East Ore Body are
relatively low. The amount of recoverable gold and silver metals are calculated in
this design based on the Client’s latest geotechnical survey data, the milling
grade and beneficiation recovery rate provided in the preliminary beneficiation
test report. The recovery rate of gold and silver in Cu concentrate is based on
the data provided by the Client.
The annual average production capacity and sales revenue in the year into
stable production, and the production capacity and sales revenue by year are
respectively shown in Table 11-5 and 11-6.
Table 11-5 Annual average production capacity and sales revenue
1 Raw ore processing scale 104t/a 425
2 Beneficiation feed grade
Cu % 0.363
Au g/t 0.13
Ag g/t 2.36
3 Beneficiation recovery rate
Cu % 87.0
Au % 33.77
Ag % 20.15
4 Concentrate grade Cu % 22.5
5 Smelting recovery rate
Cu % 97.5
Au % 97.5
Ag % 97.5
140
6 Blister copper output t/a 13284
Copper metal t/a 13084
Gold metal kg/a 182
Silver metal Kg/a 1971
7 Product output kUSD 90455
Cu kUSD 82669
Au kUSD 6843
Ag kUSD 942
8 Business revenue kUSD 90455
11.4.2 Business tax and surcharges
The business tax and surcharges for this project include resource tax and other
taxes.
(1) Resources tax
The resources tax is levied as per the sales revenue with the tax rate of 6.5%.
(2) Other taxes
Other taxes are levied as per the sales revenue with the tax rate of 1.5%.
It is calculated that the annual average business tax and the surcharges in the
year of stable production is 7,235,000 USD.
11.4.3 Profit and distribution
No income tax is levied on this project. The annual average production profit is
7,523,000 USD. See Table 11-7 for profit and profit distribution
141
Table 11-6 Product output and business revenue by year k USD
S/N Description Unit Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
1 Mining
1.1 Ore tonnage 104t 8559.5 50 150 425 425 425 425 425 425 425 425 425 425 425 425 425 425 425 425 425 425 425 284.5
1.2 Waste rock quantity 104t 6887 610 610 610 610 450 450 450 340 340 340 340 340 255 255 255 255 200 105 60 12
1.3 Total quantity of ore and rock 104t 15446.5 50 150 1035 1035 1035 1035 875 875 875 765 765 765 765 765 680 680 680 680 625 530 485 296.5
1.4 Stripping ratio t/t 0.80 1.44 1.44 1.44 1.44 1.06 1.06 1.06 0.80 0.80 0.80 0.80 0.80 0.60 0.60 0.60 0.60 0.47 0.25 0.14 0.04
2 Beneficiation
2.1 Ore quantity for beneficiation t 8559.5 50 150 425 425 425 425 425 425 425 425 425 425 425 425 425 425 425 425 425 425 425 284.5
2.2 Cu feed grade % 0.364 0.359 0.325 0.317 0.318 0.318 0.325 0.334 0.343 0.343 0.338 0.337 0.355 0.362 0.368 0.368 0.373 0.388 0.412 0.441 0.453 0.403 0.408
Au g/t 0.13 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130 0.130
Ag g/t 2.36 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360 2.360
2.3 Beneficiation recovery rate Cu % 87 87 87 87 87 87 87 87 87 87 87 87 87 87 87 87 87 87 87 87 87 87 87
Au % 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77 33.77
Ag % 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15 20.15
2.4 Concentrate amount t 1203916 6941 18850 52094 52258 52258 53408 54887 56366 56366 55545 55380 58338 59489 60475 60475 61296 63761 67705 72471 74443 66226 44883
2.5 Metal quantity in concentrate
Cu t 270881 1562 4241 11721 11758 11758 12017 12350 12682 12682 12498 12461 13126 13385 13607 13607 13792 14346 15234 16306 16750 14901 10099
Au kg 3758 22 66 187 187 187 187 187 187 187 187 187 187 187 187 187 187 187 187 187 187 187 125
Ag kg 40704 238 713 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 1353
3 Smelting
142
S/N Description Unit Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
3.1 Recovery
Cu % 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5
Au % 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5
Ag % 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5 97.5
3.2 Blister copper amount t 268131 1546 4198 11602 11639 11639 11895 12224 12554 12554 12371 12334 12993 13249 13469 13469 13652 14201 15079 16140 16580 14750 9996
Cu quantity t 264109 1523 4135 11428 11464 11464 11716 12041 12365 12365 12185 12149 12798 13050 13267 13267 13447 13988 14853 15898 16331 14528 9846
Au content kg 3664 21 64 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 182 122
Ag content kg 39686 232 695 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1319
4 Product output kUSD 1824839 10536 28875 79989 80217 80217 81811 83861 85911 85911 84772 84545 88644 90239 91605 91605 92744 96161 101627 108233 110966 99578 66790
Cu kUSD 1668673 9620 26127 72204 72432 72432 74026 76076 78126 78126 76987 76759 80859 82454 83820 83820 84959 88376 93842 100448 103181 91792 62209
Au kUSD 137817 805 2415 6843 6843 6843 6843 6843 6843 6843 6843 6843 6843 6843 6843 6843 6843 6843 6843 6843 6843 6843 4581
Ag kUSD 18980 111 333 942 942 942 942 942 942 942 942 942 942 942 942 942 942 942 942 942 942 942 631
5 Business revenue kUSD 1824839 10536 28875 79989 80217 80217 81811 83861 85911 85911 84772 84545 88644 90239 91605 91605 92744 96161 101627 108233 110966 99578 66790
143
Table 11-7 Profit and profit distribution statement Unit: k USD
1 Business revenue 18248391053628875799898021780217818118386185911 8591184772845458864490239916059160592744961611016271082331109669957866790
2 Business tax and surcharges 145967 843 2310 6393 6404 6417 6545 6709 6873 6873 6782 6764 7092 7219 7328 7328 7420 7693 8130 8659 8877 7966 5343
3 Total cost and expenses 1519177 5796 17200829627314973604737307332474171763847510475069764517669178001763867655777751 75796 75635 75111 7236357942
4 Subsidy revenue
5 Total profits 159695 3897 9364 -9365 664 196 1537 3828 4867 2654 2887 2712 5102 6329 6276 7891 8768 10717 17701 23940 26978 19248 3505
6 Expenses for covering the deficit in previous years 9365 664 196 1537 3828 3141
7 Taxable income 159695 3897 9364 1727 2654 2887 2712 5102 6329 6276 7891 8768 10717 17701 23940 26978 19248 3505
8 Income tax
9 Net profit 159695 3897 9364 -9365 664 196 1537 3828 4867 2654 2887 2712 5102 6329 6276 7891 8768 10717 17701 23940 26978 19248 3505
144
11.5 Analysis on financial profitability

11.5.1 Indicator of static investment efficiency
The annual operating revenue of the project is 90,455,000 USD, the annual total
cost is 75,697,000 USD, the business taxes and surcharges are 7,235,000 USD,
and the annual total profit is 7,523,000 USD.
11.5.2 Analysis on cash flow
The analysis period of cash flow is 22 years including 2 years of construction

period. See Table 11-8 for the calculated main benefit indicators.
Table 11-8 Main benefit indicators
S/N Description Unit Quantity Remarks

1 Project investment
FNPV (i=6.5%) kUSD 40731
Payback period (including infrastructure period) a 11.38
2 Capital
FNPV (i=6.5%) kUSD 41974
3 Return on investment % 13.07
4 Profit ratio of investment % 12.43
5 Profit and tax investment ratio % 24.39
6 Return on equity % 25.35
Judging from the calculated results of benefit indicators, the project has certain
profitability, and the financial net present value (FNPV) of project investment and
the financial net present value of project capital are both more than zero, which
indicates that the project can obtain the expected economic benefits.
See Table 11-9 and Table 11-10 for details of cash flow statement of project
investment and cash flow statement of capital.
11.5.3 Repayment of loan
New construction investment loans will be repaid according to the maximum

capacity of the project. The sources of capital include undistributed profits and
depreciation expenses.
By the end of the construction period, the long-term loan balance will be
30,826,000 USD, with an annual interest rate of 4.90%. It is estimated that the
loan repayment period (including 2-year Pre-production period) is 8.81 years.
See Table 11-11 for the calculation of loan repayment.
145
Table 11-9 Cash flow calculation of project investment Unit: k USD
1 Cash inflow 1840789 10536 28875 79989 80217 80217 81811 83861 85911 85911 84772 84545 88644 90239 91605 91605 92744 96161 101627 108233 110966 99578 82740
1.1 Business revenue 1824839 10536 28875 79989 80217 80217 81811 83861 85911 85911 84772 84545 88644 90239 91605 91605 92744 96161 101627 108233 110966 99578 66790
1.2 Subsidy revenue
1.3 Recovery of fixed assets’ residual value
1.4 Working capital recovery 15950 15950
2 Cash outflow 1672354 27289 45659 103941 68149 75640 76042 76191 77594 81810 78578 78810 80589 80816 82591 80143 80901 82490 83794 83652 83551 80429 63693
2.1 Construction investment 44037 19817 24221
2.2 Working capital 15950 833 1928 19129 -6862 -20 -30 137 193 1809 -276 9 78 -62 293 -540 -44 78 -133 -641 -437 100 408
2.3 Operating cost 1466400 5796 17200 78420 68607 69243 69527 69345 70528 73128 72072 72038 73419 73659 74970 73355 73526 74720 75796 75635 75111 72363 57942
2.4 Business tax and surcharges 145967 843 2310 6393 6404 6417 6545 6709 6873 6873 6782 6764 7092 7219 7328 7328 7420 7693 8130 8659 8877 7966 5343
2.5 Investment to maintain operations
3 Net cash flow 168434 -16753 -16784 -23952 12068 4576 5770 7670 8317 4101 6194 5734 8056 9423 9015 11463 11843 13671 17834 24581 27415 19148 19047
4 Accumulative total of net cash flow -16753 -33537 -57490 -45422 -40845 -35076 -27406 -19089 -14988 -8793 -3059 4997 14419 23434 34896 46739 60410 78244 102824 130239 149388 168434
Calculation index
IRR 12.81%
FNPV (i=6.5%) 40731
Payback period (a) 11.38
146
Table 11-10 Project capital cash flow calculation table Unit: k USD
1 Cash inflow 1840789 10536 28875 79989 80217 80217 81811 83861 85911 85911 84772 84545 88644 90239 91605 91605 92744 96161 101627 108233 110966 99578 82740
1.1 Business revenue 1824839 10536 28875 79989 80217 80217 81811 83861 85911 85911 84772 84545 88644 90239 91605 91605 92744 96161 101627 108233 110966 99578 66790
1.2 Subsidy revenue
1.3 Recovery of fixed assets’ residual value
1.4 Working capital recovery 15950 15950
2 Cash outflow 1681094 13757 29800 105452 73355 80197 81781 83998 86104 86611 78578 78810 80589 80816 82591 80143 80901 82490 83794 83652 83551 80429 63693
2.1 Project capital 30596 7118 10289 19129 -6862 -20 -30 137 193 1809 -276 9 78 -62 293 -540 -44 78 -133 -641 -437 100 408
2.2 Repayment of loan principal 30826 3695 3227 4568 6860 7899 4577
2.3 Repayment of loan interest 7305 1510 1510 1329 1171 947 611 224
2.4 Operating cost 1466400 5796 17200 78420 68607 69243 69527 69345 70528 73128 72072 72038 73419 73659 74970 73355 73526 74720 75796 75635 75111 72363 57942
2.5 Business tax and surcharges 145967 843 2310 6393 6404 6417 6545 6709 6873 6873 6782 6764 7092 7219 7328 7328 7420 7693 8130 8659 8877 7966 5343
3 Net cash flow 159695 -3221 -925 -25463 6862 20 30 -137 -193 -700 6194 5734 8056 9423 9015 11463 11843 13671 17834 24581 27415 19148 19047
4 Accumulative total of net cash flow -3221 -4146 -29609 -22747 -22727 -22697 -22834 -23027 -23727 -17533 -11799 -3743 5680 14694 26157 38000 51670 69504 94085 121500 140648 159695
Calculation index
IRR 15.58%
FNPV (i=6.5%) 41974
Payback period (a) 12.40
147
Table 11-11 Loan repayment calculation Unit: k USD
S/N Description Total 1 2 3 4 5 6 7 8 9
1 Loan
1.1 Balance at the beginning of the loan period 13872 30826 30826 27131 23904 19335 12476 4577
1.2 New loans in the period 39342 14212 18049 1510 1510 1329 1171 947 611 224
Of which: Capital 30826 13872 16954
Interest 8515 340 1095 1510 1510 1329 1171 947 611 224
1.3 Repayment of principal and interest in the period 34765 340 1095 1510 5206 4556 5740 7807 8510 4801
Of which: Capital 26249 3695 3227 4568 6860 7899 4577
Interest 8515 340 1095 1510 1510 1329 1171 947 611 224
1.4 Balance at the end of the loan period 13872 30826 30826 27131 23904 19335 12476 4577
2 Sources of repayment of capital -6334 3695 3227 4568 6860 7899 5686
2.1 Undistributed profit -9365 664 196 1537 3828 4867 2654
2.2 Depreciation cost 3031 3031 3031 3031 3031 3031 3031
2.3 Amortization charge
2.4 Others
2.5 Excluding: Investment to maintain operations
3 Repayment period (a) 8.81
148
11.6 Uncertainty analysis

11.6.1 Sensitivity analysis
The sensitivity analysis is made on the three factors of sales revenue, operating
cost and construction investment. The analysis shows that sales revenue and
operating cost have great influence on the benefit index and are sensitive factors.
The impact of construction investment is small because the project only
considers the investment in open pit mining of the east orebody, so the total
investment is small. See Table 11-12 for sensitivity analysis results.
Table11-12 Sensitivity analysis
Variable factor Change rate Project investment
IRR Payback period FNPV (i=6.5%)
Benchmark scheme 12.81% 11.38 40731
-10% 0.04% 21.96 -40907
Business revenue -5% 6.49% 17.12 -88
5% 19.42% 7.53 81550
10% 26.54% 6.07 122369
-10% 25.42% 6.20 113700
Operating cost -5% 18.86% 7.66 77216
5% 7.14% 16.57 4247
10% 1.64% 20.40 -32237
-10% 13.88% 10.77 44727
Construction investment -5% 13.33% 11.11 42729
5% 12.33% 11.65 38733
10% 11.88% 11.93 36735
In addition, according to the characteristics of the project, sensitivity analysis is

carried out on the impact of copper price fluctuation on project benefits, as
shown in Table 11-13.
149
Table 11-12 Price sensitivity analysis
Project investment
Copper price (USD/t)
IRR Payback period (a) FNPV (i=6.5%); kUSD
Benchmark scheme 12.81% 11.38 40731
5500 - Unrecoverable -77045
5900 1.79% 20.26 -29935
6000 3.67% 19.03 -18157
6100 5.51% 17.89 -6379
6200 7.33% 16.30 5398
6300 9.15% 14.53 17176
6400 10.98% 12.81 28954
6500 12.81% 11.38 40731
6600 14.67% 9.92 52509
6700 16.56% 8.76 64287
6800 18.48% 7.81 76064
6900 20.44% 7.27 87842
7000 22.45% 6.82 99620
11.6.2 Breakeven analysis
After the project is put into production, the average total cost is 75,697,000 USD,
including 45,551,000 USD for variable cost, 30,146,000 USD for fixed cost and
82,16 90,455,000 USD for annual sales revenue. The break-even point
calculated from this is 80.03%, i.e. the project's production capacity can reach
80.03% of the total capacity to break even. It can be seen that the project has
relatively poor risk resistance.
11.7 Comprehensive evaluation

From the technical and economic analysis of the project, it can be seen that the
new total investment of the project is 45,472,000 USD, of which 44,037,000 USD
is new construction investment and 1,435,000 USD is interest during the
construction period. After the completion of the project, the annual average
output of blister copper is 13,284t (containing Cu 13,084t, Au 182kg, Ag 1,971kg);
the annual average business revenue of the project is 90,455,000 USD, the
annual average total cost is 75,697,000 USD, the annual average operating
taxes and surcharges are 7,235,000 USD, the annual average total profit is
150
7,523,000 USD, the financial internal rate of return on the project investment is
12.81%, and the financial net present value of the project investment is
40,731,000 USD (I=6.5%), indicating that the project investment can be
recovered during the calculation period and is economically viable.
From the previous analysis, it can be seen that Saindak Resources Company
can extend the service life by at least 20 years by tapping the potential of the
existing facilities to develop the eastern ore body resources and supplementing
the supply of ore raw materials. However, due to the unfavorable external
construction conditions such as low grade of resources, remote geographical
location of the mining area, underdeveloped transportation, lack of water and
electricity resources, the production cost of the enterprise is relatively high. It is
suggested to speed up the construction progress and control the investment
cost during the project construction. Besides, due to the high proportion of
energy cost in production cost, power sources can be compared to select a more
economical power source so as to reduce the operating cost as much as
possible and create conditions for the project to achieve relatively ideal benefits.
151

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Project No.

MCC Resources Development Company (Pvt.)

Feasibility Study Report on the

China ENFI Engineering Corporation

Unauthorized modification or disclosure to any other organization or individual

without approval is not allowed.

MCC Resources Development Company (Pvt.)

Feasibility Study Report on the Project

of Open-pit Mining of the East Ore Body

of Saindak Copper-Gold Mine

China ENFI Engineering Corporation

General Manager: Wu Shaohui

Chief Engineer: Liu Cheng

Project Technical Director: Yu Changshun

Project Manager: Yu Changshun

Project Design Manager: Jiang Wei

Discipline Approved by Reviewed by Lead Engineer Main Designer

Geology Guo Xudong Shi Benlin Wang Liyan Wang Liyan

Mining Wang Shuxun Jiang Wei Du Kun Du Kun

Chapter 1 General Introduction

1. Supplementary exploration data of the east ore body of Saindak Copper-Gold

3. The Basic Design for Saindak Copper-Gold Mine Project in Pakistan

5. The Detailed Geological Report on East Ore Block of Saindak Copper-Gold

7. Contact letter on the feasibility study of east orebody requested by MCC

10. East Orebody Pre-feasibility Study --- Geophysical Prospecting Report on

1.2 Project background

1.3 Working scope

1.4 Main results of the study

Saindak Copper-Gold Mine is located in Chagai area of Baluchistan Province of

East longitude: 61°34′-61°39′

North latitude: 29°13′-29°16′

Figure 1-1: Traffic location of Saindak cooper-gold mining area in Pakistan

1.4.2 Status of the enterprise and construction conditions

been in operation for 25 years. Despite of a long period of shutdown

According to the information of existing equipment provided by the enterprise,

1.4.3 Geological resources

Saindak copper-gold deposit belongs to porphyritic rock, which was found by

See Table 1-1 for the estimated resources/reserves.

Cu cutoff Cu (%) Resource (×104) t

In February 2019, MCC Wuhan Surveying-Geotechnical Research Institute Co.,

Table 1-2 Statistical Table of Detailed Workload in East Ore Block

S/N Items Unit Workload Remarks

In June 2019, MCC Resources Development Company (Pvt) Limited submitted

Average Grade Estimated Result

331 17.31 0.50 868.50

Industrial 332 5226.24 0.49 253621.73

331+332+333 10801.00 0.48 515166.80

331 106.21 0.29 3116.81

Low 332 8029.37 0.30 238277.89

331+332+333 24999.54 0.31 770184.02

331 123.52 0.32 3985.31

Total 332 13255.61 0.37 491899.62

333 22421.41 0.35 789465.89

331+332+333 35800.54 0.36 1285350.82

1.4.4 Mining scheme

Final slope angle for open-pit is confirmed to be 45°~46° according to deposit

1.4.5 Other newly-built and modified facilities

1.4.6 Investment and economic effect

Table 1-4 List of main financial indicators