Euromax Resources brochure - 2016

PROJECT PARTNER

Sustainable resources

Sustainable resources Written by Nye Longman Produced by Jack Pascall

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Utilising unmatched expertise, Euromax is delivering its flagship copper-gold mining project in Macedonia while making a significant contribution to the local community

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estled in the verdant hills of south eastern Macedonia are the villages of Ilovica and Shtuka which together sit on one of the nation’s largest copper-gold porphyry deposits.

Spotting the opportunity to develop this lucrative resource back in 2012 after selling European Gold Fields to Eldorado Gold Corp, Canadian-owned Euromax Resources stepped up to the challenge and the current management team moved in. Four years down the line, and with all but one of the necessary permits and assessments completed, construction of a bulk tonnage open pit mine is almost ready for the go-ahead. Business Review Europe speaks to Patrick Forward, Chief Operating Officer at Euromax Resources, and examines how the project has been engineered to be a profitable success, and how the company has placed sustainability at its core.

“We recognised it was actually a business necessity to get the project finance we want, but it is actually, I think we have proved it, relatively easy to do that,” he says.

The Ilovica-Shtuka mine The long term goal of Euromax is to grow to become Europe’s leading gold and base metal mining company, with the Ilovica-Shtuka mine as its flagship project that will employ 500 locals. In line with this ambitious goal, the company and its experienced

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BANKABLE METALLURGICAL TESTING ACHIEVING IMPROVED PROCESSING AT THE ILOVICA PROJECT GLOBAL NETWORK

Based upon given preferences for the circuit configuration, SGS then used previously generated kinetic data to provide computer simulation of the requested CIL circuit providing;

SGS offers a very broad range of valueadded solutions, which reduce risk, enhance value and maximise returns at each step of the mining value chain.

With over 70 years of experience and a truly global presence, SGS has earned the reputation as the leading supplier of proven, technologically advanced metallurgical services. From metallurgical laboratories located on six continents, SGS provides the optimal, environmentally sustainable flowsheet for mining operations around the world.

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LOCAL EXPERTISE The expert team at the SGS metallurgical laboratory in Cornwall, UK completed a successful Preliminary Economic Assessment for Euromax Resources‘ Ilovica project in 2012. As development of the metallurgy continued, there was a need to adjust the flowsheet and SGS continued work on the project through the Pre-Feasibility and Definitive Feasibility phases.

Around fifty-six rougher and cleaner kinetic flotation tests were conducted on a master composite to optimise conditions. Using the optimised conditions, a flotation test was conducted on each of the fourty variability domains to determine metallurgical response. Nine locked cycle tests were conducted on different composites from the deposit to determine the copper and gold recoveries before a pilot plant was conducted to generate leach feed.

Having worked on several similar projects in the same region, the SGS team identified similar challenges arising between projects, however; on Ilovica the value streams were added through leach optimisation. The leach feed stream represented only a small fraction of plant feed. To minimise cost and time delay a pilot plant was used to generate material while providing useful scalability information on the flotation process at the same time. The bulk of the leach optimisation work was then performed using standard bottle roll tests.

The principal technical services that SGS focused on for the project included: • • • • • • •

Float optimisation Leach optimisation Tailings management Cyanide destruction Comminution circuit sizing Pilot plant testing Geometallurgy

SGS tested a range of variables including pulp density, cyanide dosage, controlled DO2 content, Lead Nitrate dosage, and pre-oxygenation time. Once the leach stage had been optimised carbon equilibrium isotherms were provided and the data was used to select a carbon addition rate for subsequent carbon kinetic loading tests.

Tank sizes Number of tanks Pulp Carbon retention times Predictions of loaded carbon values

SGS provided geometallurgical information on the deposit through the testing of variability samples with respect to comminution, flotation and leaching data. This allowed mapping of the metallurgical response of the deposit and provided the opportunity to optimise mine planning with consideration of this data. In addition, 80th percentile grindability data was then used to design an Autogenous grinding circuit using JKSimMet™ software.

TRUSTED EXPERTISE SGS‘s demonstrated success in metallurgical and process design has provided thousands of companies with effective flowsheets and practical technical solutions to processing problems. From that core capability, we continue to provide the processing industry with innovative approaches to geometallurgy, process modeling, production forecasting and processing optimisation. minerals.cornwall@sgs.com www.sgs.com/mining

TRUST PROVEN EXPERTISE TO HELP YOU OPTIMISE YOUR MINING OPERATION At SGS, we deliver technical expertise, sustainable solutions and effective services that enhance your operation at every stage. Our laboratories are part of an extensive network with leading-edge technology to help you achieve your goals, whether that means getting to market faster, or making the most of your existing operation.

On six continents we have metallurgical laboratories providing bankable testing to support projects around the world from scoping studies through to Definitive Feasibility Studies. Our recently acquired team at SGS Bateman adds expert modular plant design, engineering, procurement and construction management to our already wide range of services that support you from concept to commissioning. To help increase the value of your operation, our Mine and Plant Services experts are ready to improve efficiencies, resolve process issues and optimise recoveries.

Whether you are in the early stages of planning, have been operating for several years, or are looking to restart, trust SGS to help you manage the risks and maximise the returns. That is getting the competitive advantage.

CONTACT US minerals@sgs.com www.sgs.com/mining

SGS IS THE WORLD’S LEADING INSPECTION, VERIFICATION, TESTING AND CERTIFICATION COMPANY

“A project of this size can move the add percentage points of the GDP of a country that size” – Patrick Forward, Chief Operating Officer

Services • Diamond core drilling up to 3000m • Underground drilling • Directional drilling • Reverse circulation drilling • Oil and gas drilling • Oil and Gas Workover • Water well drilling • Geothermal drilling • Energy drilling • Technical Drilling for Mining • Technical Drilling for Construction • Geological Survey

www.geopsbg.com E-mail: office@geopsbg.com | +359 893 349 105

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THE BR AINS TO PICK www.wsp-pb.co.uk #brainstopick

teams are looking to lead the European mining industry for social and environmental responsibility, and for health and safety.

The mine, which has proven sulphide ore reserves of 198.1 million tonnes, is optimally situated, as Forward explains: “We like the area and we like the deposit particularly because we like the copper porphyries. It has got good infrastructure, a well-educated workforce, good logistics, proximity to a smelter and we knew how important all of that was from developing the Skouries deposit further to the south when we were at European Goldfields.

“The deposit has great continuous mineralisation and it is very amenable to open pit development. It was a perfect combination of being on entirely state owned forestry ground, a little bit up in the hills and only 17 kilometres from a reasonable sized town. We weren’t looking at displacing anyone - there is a good workforce available and good infrastructure locally. That’s what attracted us in.”

With construction at the mine

billed for completion in the next two years, Euromax is working with key industry partners to ensure that it is not only delivered on time and on budget, but also to the satisfaction of the local community and to international environmental standards.

The fact that it already had an approved EIA indicated that there was much approval for the project, both locally and in the country as a whole.

“Although we had been working in

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the area, we didn’t know Macedonia itself; what we found was a country that really wanted to develop its natural resources,” Forward says.

“When we sat down with ministers and the Prime Minister, we immediately realised that there was a desire to attract foreign investment and develop their resources; a project of this size can add percentage points to the GDP of a country that size.”

to deliver on key outcomes.

Forward explains: “We have, through the local technical university, got experts on air and water, dust, noise, and socio-economic professors as well. For water services, we worked with WSP Parsons Brinckerhoff; we particularly chose to have them as dedicated water experts who would be able to talk to all the engineering needs of the project and the environmental impacts.

Sustainability “They manage For Euromax, water on-site but Number of employees at Euromax Resources measuring the also talk to the successful construction environmental and of the project hinges on social impacts of the delivering an operation that has project and make sure that as little an impact on the environment all of the other stakeholders are as possible and, moreover, makes taken care of with respect to water. a positive contribution to society WSP has been absolutely brilliant at large. To achieve this end, the in training up our own people.” miner has examined every link in An important partner was the chain – from studying the social Geops - a drilling contractor used and archaeological impact of the for the project’s drilling, resource, project, all the way through to geotechnical and hydrological engaging with specialist partners work. “Geops has been responsive,

500

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“We have, through the local technical university, got experts on air and water, dust, noise, and socio-economic professors as well” – Patrick Forward, Chief Operating Officer

offered very competitive rates and world class quality,” says Forward.

“They have also managed to train up local people as part of their drill operating teams and help us manage community issues relating to drilling.”

SGS was another key partner, Forward explains; its expertise was vital to delivering metallurgical test work over the four years of development. “This has included helping us optimise the process route, establish recoveries and reagent levels, characterise tailings and characterise waste rock,” he says. “The characterisation of tailings and waste rock is a vital part of making sure that our mining waste facilities, including the tailings management facility, conform to the highest international standards.

“SRK has made sure this concept can be applied in a practical way through detailed design and execution of the mining operation.”

This partner was responsible for executing the post-feasibility study

mine design, delivering a range of objectives including geotechnical analysis, pit optimisation and design, haulage design and fleet selection, as well as cost estimation and mine waste management.

“The fact that all of our mine waste is used in the construction of the embankment for the tailings management facility means that we have a reduced footprint,” Forward explains. “The embankment is entirely rock filled and uses the ‘downstream’ construction method which is the most conservative approach available.”

In the four years spent developing the Ilovica-Shtuka mine, Euromax has demonstrated that sustainability isn’t simply a matter of compliance, more an active, positive contribution to the locality. By developing the project in line with the highest international standards, and through working with local and national stakeholders, Euromax has ensured that the project’s positive legacy is secured for the long term.

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10th Floor, 595 Howe Street, Vancouver British Columbia, Canada V6C 2T5

+44 (0)20 3667 2970 info@euromaxresources.co.uk www.euromaxresources.com