Gold Reserve Inc. & Venezuela Empresa Mixta Eco-Socialista - - PowerPoint PPT Presentation

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Gold Reserve Inc. & Venezuela

Empresa Mixta Eco-Socialista “Siembra Minera”, S.A.

Siembra Minera Brisas Cristinas Mining Project

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• JV Structure:
• Venezuela 55%
• Gold Reserve 45%
• Combine Brisas and Cristinas Properties
• Develop and Build Mine, Process Plant and

Project Infrastructure

• Mining & Processing of 140,000 tpd of hard

rock ore (plus up to 20,000 tpd saprolite ore)

Empresa Mixta Eco-Socialista “Siembra Minera”, S.A.

Mixed Company Arrangement & Plan

GR E ngineering Inc. (Barbados) E ngineering, P rocurement, C

• nstruction & Operation

Operating Agreement R epublica Bolivariana de V enezuela C

• rporación V

enezolana de M inería (C VM ) Gold R eserve Inc. GR M ining Inc. (Barbados) E mpresa M ixta E co-S

• cialista “S

iembra M inera”, S .A.

(P ublicadaenG .O . No. 41.002 de fecha4/ 10/ 2016)

55% 45%

E mpresa Mixta E co-S

• cialista “S

iembra Minera”, S .A.

Organization S tructure

Brisas – Cristinas Project

Kilometer 88 Mining District Municipality of Sifontes Pueblo of Las Claritas Bolívar State

Paved highway 3 km from site Major Power Substation 3 km from plant site

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Project Economic Zone 18,950 Ha

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Comprises former concessions: Brisas Las Cristinas Oro 1 (blocks 1 & 2) Albino Carabobo Morauana Barbara Zuleima El Pauji Esperanza

Utilize Original GR’s Brisas Mine, Process Plant & Infrastructure Design Double Size of Process Plant with Mirror Image Design Optimize facilities layout Solid Basis for Final Design to Update Capital & Production Costs (Detailed Engineering & Design 85%

Complete – Procurement 68% Complete)

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Empresa Mixta Eco-Socialista “Siembra Minera”, S.A.

Business Plan

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• Brisas–

Cristinas is one continuous orebody

• Development reduces environmental impact
• Most rational way to exploit the deposit (art. 5

Mining Law)

• Produces the highest rate of return
• Excellent Potential to increase reserves
• Allows reclamation of entire mining district

devastated by years of illegal mining

Brisas-Cristinas Project

Rationale

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Proj ect Area S atellite Photo Early 2017

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• Add separate Oxide Saprolite Process Plant
• Considering Gravity Gold only vs. Cyanidation

Plant

• Provides Au production in 18 to 24 months
• vs. 4 years for large scale plant
• Provides Earlier Revenue Stream

Brisas-Cristinas Project

Recent Addition to Plan

Siembra Minera

GR Engineering (Barbados) Inc. Current Activity Working on design & cost on two separate and concurrent processing plant scenarios. 1. An oxide saprolite ore processing plant that would provide an early phase production and cash flow. A smaller plant that could be constructed in a two year time frame.

• 2. The large scale processing plant for the sulfide

saprolite and hard rock ores which would take approximately four years to put into production.

Siembra Minera

Project Schedule

Year 1 Year 2 Year 3 Year 4 Year 5

Oxide saprolite Process Plant

• Preliminary design
• Permitting, detail design
• Procurement
• Construction
• Production

Hard Rock & Sulfide Saprolite Process Plant

• NI 43-101 & PEA
• Preliminary design
• Feasibility Study
• Permitting, IESIA & VEIS
• Detail design
• Procurement
• Construction
• Mill Start -up
• Production

Engineering Stages of a Project

Preliminary Economic Assessment Project Financing Pre-feasibility Study Detailed Design Construction Commissioning Feasibility Study

Establish Viability

• f a Project

Mineral Resources Outline one

• pportunity for

proj ect development Identify risks and

• pportunities

Develop scope for next proj ect phases Define the Project Mineral Reserves Evaluation of alternatives Comprehensive Study Serves as a Basis for Financial Institutions to Assess Project Financing Mineral Reserves Increased level of detail and definition in order to increase the confidence level of capital and

• perating costs

Current Plan

Siembra Minera

GR Engineering (Barbados) Inc. Consultants & Their Current Activities

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RPA started on a NI 43-101 report and (PEA) Preliminary Economic Assessment

• Includes updated resource estimates and cost estimates

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Samuel Engineering providing support to RPA on large scale process plant

• Includes design and capital cost estimates

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Samuel Engineering also providing preliminary design and cost estimates on an oxide saprolite processing plant

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Tierra Group International, LTD providing support to RPA on large scale process plant tailings dam

• Includes design and capital cost estimates

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Tierra Group International, LTD also providing preliminary design and cost estimates on an early stage oxide saprolite processing plant tailings dam facility

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Ingenieria Caura, S.A. working on Early Works (earthwork, timber clearing and road building) permitting

• Also preparing Venezuela Environmental Impact Statement (VEIS)
• and permitting of both large and small process plants

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AATA International Inc. working on an International Environmental and Social Impact Assessment (IESIA)

• A document required for Financing from International Bank and other

financial Institutions

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Prizma LLC providing input and assistance to Ingenieria Caura and AATA International for the social aspects of the VEIS and IESIA

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Global Resource Engineering providing input and assistance to Ingenieria Caura and AATA International for the geo chemistry and water quality aspects of the VEIS and IESIA

Siembra Minera

GR Engineering (Barbados) Inc. Consultants & Their Current Activities

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Inespro, C.A. (Ingeniero Rafael Borges y Asociados) prepared the Quarry Concession Application.

• Also will be working to update the Feasibility Study for the quarry

concession to obtain the Exploitation Certificates



CVG-TECMIN, C.A. prepared application for Permit to Occupy the Land (AOT).

• Also prepared a preliminary report on current Social & Environmental

situation at the project site area

• It will also be working on an Environmental & Social Audit before

breaking ground.

• An engineering & environmental state owned company located in

Bolivar State that will provide support along the early phases of project development.

Siembra Minera

GR Engineering (Barbados) Inc. Consultants & Their Current Activities

Design Updates

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Alternatives for Improvement/Cost Savings

• 1. More efficient site layout
• Reduce deforestation and earthwork requirements
• Improve operability
• Makes room available for Oxide Saprolite plant
• 2. Location of the Oxide Saprolite processing plant next

to Main Project Plant will benefit from:

— Sharing certain processing facilities (Gold Elution & Refining) — Avoids having to build a second tailings dam facility — Reducing size of powerline corridors — A single production center: more efficient and secure operation — Eliminating duplicate infrastructure —Topo survey and geotech work already complete

Alternatives for Improvement/Cost Savings

• 3. Larger equipment sizes based on availability of

recently developed equipment

• One larger crusher (current 2 crushers – 1.524 m x 2.261 m)
• Current – 4 SAG mills (11.58 x 6.7 m, 20 MW), 8 ball mills (6.7

m x 11.125 m, 9,325 kW)

• Potential – 2 SAG mills (12.2 x 8.8 m, 28 MW), 4 ball mills (7.9

m x 10.1 m, 10,500 kW)

• Larger leach tanks to reduce the overall footprint
• Larger flotation cells (current rougher flotation 8 banks of 6

each for 48 - 160 m3 cells; > 630 m3 cells now available and would only need 2 banks of 6)

• Optimize carbon handling and refinery

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Project Facilities

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Empresa Mixta Eco-Socialista “Siembra Minera”, S.A.

Aerial View of Proposed Plan

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Permitting

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From a permitting stand point, the project will be developed into four (4) major phases:

Phase 1: Early or Preliminary Works Phase 2: Construction and Operation of the Saprolite Mill with Recovery of Mercury Phase 3: Construction of Water Diversion Channels, Water Treatment Plants and other facilities Phase 4: Construction and Operation of the Mine, Mill and related Infrastructure for the processing and production of Gold and Copper.

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Permitting Phases for Siembra Minera Project

The following studies and documents need to be submitted: To Ministerio de Ecosocialismo y Aguas (MINEA):

1. Descriptive Memoir to obtain Permit to Occupy Land (AOT) 2. Terms of Reference (TDR) 3. Environmental and Socio-Cultural Impact Study (EIA-SC) to be delivered by Phases (1 thru 4) to obtain several Permits to Affect (AARN) over the first 2 years 4. Environmental Audit (EA)

To Instituto Autónomo Minas Bolívar (IAMIB):

1. An Exploration concession application for a Quarry 2. A Feasibility Study to obtain the Explotation Certificates 3. An Environmental and Socio-Cultural Impact Study (EIA-SC)

Siembra Minera Project Permitting Agenda

Ministerio de Ecosocialismo y Aguas (MINEA):

1. Descriptive Memoir to obtain AOT: Submitted on August 11th. 2. Terms of Reference (TDR) for Phase 1 EIA-SC. Executed. 3. Environmental Impact Study (EIA-SC). It includes: Timber clearing and Earthworks for plant site and man-camp; Roads construction; Dewatering wells; Patios for Timber Stockpiling; Exploration development and geotech drilling; Sedimentation ponds and the Quarry. Being drafted. To be submitted upon approval of AOT. 4. Environmental Audit (EA). Under Scoping. Instituto Autónomo Minas Bolívar (IAMIB): 1. Concession application for a Quarry. Submitted. 2. Feasibility Study to obtain Explotation Certificates. Former Brisas Project Feasibility Study to be updated.

Siembra Minera Project Permitting Status

Other Project Info

Exploration Potential Mining Operations Process Operations

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Upside Exploration Potential

Empresa Mixta Eco-Socialista “Siembra Minera”, S.A.

Exploration Potential to Depth

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Empresa Mixta Eco-Socialista “Siembra Minera”, S.A.

Mining Equipment

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Open Pit Mine Operations Plan

• Seven – 30 m3 hydraulic shovels
• Five – 18 m3 wheel loaders
• 45 – 236 t capacity haulage trucks (year 1)
• 86 – 236 t capacity haulage trucks (year 7)
• Six – large diameter blast hole drills

Combined Brisas-Cristinas Project

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SAG MILL WITH GEARLESS DRIVE

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SAG and Ball Mills

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Flotation Cells

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Plant Operations Plan

• Two – 60-inch by 89-inch (1,525 mm x 2,260

mm) gyratory crushers with 600 kW motors

• Four – 24-ft by 38-ft diameter (7,315 mm x

11,580 mm) SAG mills with 19.4 MW wrap around drives

• Eight – 34-ft by 22-ft diameter (10,365 mm

by 6,706 mm) ball mills with two 9,300 kW motors for each mill

Combined Brisas-Cristinas Project

Environmental & Social

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• Generation of employment:
• During Construction: 4,000 (at peak of construction)
• During Mine Life Operation: 1,697
• Dramatic improvement in social conditions
• Reduction & Control of Malaria in the Sifontes

Municipality (responsible of over 70%

• f total cases in

Venezuela)

• Development of inexistent Service Infrastructure:

Power, Water, Waste, Health

Empresa Mixta Eco-Socialista “Siembra Minera”, S.A.

Social Benefits

Empresa Mixta Eco-Socialista “Siembra Minera”, S.A.

Key Environmental Attributes

Organization and better control of small miners activity and replacement of mercury use Deposit has Low Heavy Metal concentrations Modern mine will improve area environment Cyanide Destruction Pro-active Waste Rock Plan & Management Acid Water Treatment Facility

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Environmental & Social Programs

• Small Mining Relocation Program
• Social Programs - Community Potable Water System
• Social Programs - Community Waste Disposal
• Social Programs - Relocation Assistance Program
• NGO and Community Involvement
• Sustainable Resources Development
• Water bodies Recovery Plan
• Reforestation of affected areas by illegal activity
• Project Reclamation Plan

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Action Plans Previously Completed

• Biodiversity Management Plan (BMP)
• Community Development Plan (CDP)
• Resettlement Action Plan (RAP)
• Indigenous Peoples Plan (IPP)
• Cultural Heritage Plan (CHP)
• Public Consultation and Disclosure Plan (PCDP)

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Other Action Plans Completed

• Occupational Health and Safety Plan (OHSP)
• Environmental Protection Plan (EPP)
• Erosion and Sediment Control Plan (ESCP)
• Environmental Monitoring Plan (EMonP)
• Emergency Response Plan (ERP)
• Hazardous Materials Management Plan (HMMP)
• Cyanide Management Plan (CMP)
• Waste Management Plan (WMP)
• Site Water Management Plan (SWMP)
• Reclamation and Closure Plan (RCP)

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THE END

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