BJÖRKDALSGRUVAN MINING. Aire Fredlund Mining Engineer

Transcription

1 BJÖRKDALSGRUVAN MINING Aire Fredlund Mining Engineer Euro Mine Expo, Skellefteå June 15, 2016

2 Forward-looking Statements This presentation contains "forward-looking statements" within the meaning of applicable securities laws, including statements relating to life of mine production plans, exploration plans and the growth and strategy of Mandalay. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things: exploration results or production results not meeting management s expectations; capital, production and operating cost results not meeting current plans; and changes in commodity prices and general market and economic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. A description of additional risks that could result in actual results and developments differing from those contemplated by forward looking statements in this news release can be found under the heading Risk Factors in Mandalay s annual information form dated March 31, 2015 and in its final prospectus dated September 2, 2014, copies of which are available under Mandalay's profile at Although Mandalay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forwardlooking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Quality Control and Assurance Quality control and assurance programs are implemented in line with the standards of National Instrument The exploration programs at Costerfield and Bjorkdal are supervised by Chris Gregory (Member, Australian Institute of Geoscientists, VP of Operational Geology for Mandalay and a Qualified Person as defined under National Instrument Mr. Gregory regularly visits Costerfield and Bjorkdal, and supervises the collection and interpretation of scientific and technical information contained in this presentation. The exploration programs at the Cerro Bayo and Challacollo projects are supervised by Scott Manske, Chief Cordilleran Geologist of Mandalay Resources, and an Oregon registered Professional Geologist. A Qualified Person as defined by NI , he has reviewed and approved the technical and scientific information on these projects contained in the presentation. Dr. Mark Sander (Member: AusIMM), President of Mandalay, has visited the Costerfield, Cerro Bayo, Challacollo, and Björkdal and has supervised the preparation of this presentation. All currency references in US$ unless otherwise indicated 2

3 A Values-Based and Value-Focused Company Profitable and Dividend Paying: (3.3% yield)* We create exceptional shareholder value through the acquisition of undervalued assets that can rapidly become cash generative, self-fund exploration, establish and maintain high operating margins and return cash to shareholders within a planned period of time. Mandalay is committed to operating safely and in an environmentally responsible manner, while developing a high level of community and employee engagement WE ARE SUCCESSFUL WHEN: Our employees live and work safely and experience the personal satisfaction that comes with high performance and recognition The communities in which we operate value our presence Our environmental impact is minimized and causes no permanent harm We have a large, diversified set of customers who are delighted with and compete for our products Our shareholders realize a superior total return on their investment and support our corporate values. Our values are visibly demonstrated by strong local management, at the point of impact with or stakeholders, and co-ordinated across the Company for maximum effect *Trailing 12 months dividends divided by current market capitalization (June 8, 2016) 3

4 Björkdalsgruvan Open Pit Open pit with underground development and current mining concession. N - 5m high bench, 0.5m sub-drill - 20m between safety berm - Current fixed drill pattern 3.25 x 4.5m (Coprod ø 127 mm) - Drilling, blasting, loading and hauling is contracted out WEST In order to minimize ore dilution, the blasting sequence direction is normally along strike of the ore zones. QZM EAST 4

5 Björkdalsgruvan Open Pit BMMS Blast Movement Monitoring System 5

6 Björkdalsgruvan Open Pit BMMS Blast Movement Monitoring System 6

7 Björkdalsgruvan Open Pit Drill and blast stemming study EPC Groupe blast design software named Expertir 7

8 Björkdalsgruvan Open Pit Current and Future Improvement Focuses Grade control: longer RC holes, grab sampling Drill and blast improvements 3D models to use in the excavating GPS system. Right now using 2D models. Less dilution 8

9 Björkdalsgruvan Underground Longhole Sub-level Open Stope Typical face underground Underground production started

10 Björkdalsgruvan Underground Underground Development: Drive design parameters Drive width: 4.0 m on-vein 5.0 m cross-cut and ramp (6.0 m for a ramp on a bend) Drive height: 5.0 m on-vein 6.0 m cross-cut and ramps Round lengths; m bored, m advance Face drilling guided by Tunnel Manager design within Atlas Copco Rig Control System 10

11 Björkdalsgruvan Underground Underground stoping Stope design parameters Stope width: 2.5m 15m, avg 3m Stope height: up to 25m, avg 12.5m Stope length: up to 200m, avg 70m Drill hole diameter: 64mm Drill ring burden: 1.5m Drill hole spacing: 1.5m-2.0m Holes/ring: 3-10, avg 3 11

12 Björkdalsgruvan Underground Improved grade control block model 12

13 Björkdalsgruvan Underground On-vein sampling (face sampling) 13

14 Björkdalsgruvan Underground More detailed scheduling with Deswik 14

15 Björkdalsgruvan Underground Safety Rescue training New safety gear Stricter demands 15

16 Björkdalsgruvan Underground Safety New rescue chamber First of this type in Sweden 16

17 Björkdalsgruvan Underground Current and Future Improvement Focuses Reduce level spacing from metres to decrease stope dilution and allow narrower mining of stopes; increased drill accuracy and less reducing vein deviation Current equipment study to reduce development size (further reduce ore-dilution) and re-assess future equipment purchases Trial slot patterns to increase success reliability Surveying of long-hole drilling; all slot holes accurately measured in to guarentee each slot is completely fired Different drill patterns for mining narrower stopes (further reduce ore-dilution) New design and scheduling software (futher implimentation of Deswick) Designing and mark-out every hole on every ring of a stope (blast to design, further reducing ore-dilution) Detailed reconciliation of stopes (reporting overbreak, ore-loss and grade-control models) Service improvements; pumping and ventilation systems Increased technical services team and, increase skills within the current team 17

18 Mandalay Resources Björkdalsgruvan AB THANK YOU!