MCSA MINING COMPLEX
The MCSA Mining Complex consists of fully integrated underground mining, open pit mining and processing facilities. The high-grade mafic-ultramafic mineral occurrences contained within the Curaçá Valley extend over 100 km in strike length. Current operations include the integrated mining operations of the Pilar underground mine, the Surubim open pit mine and the Vermelhos underground mine, currently under development. Ore is processed using conventional crushing and flotation at the Caraíba Mill, located adjacent to the Pilar underground mine. Near mine and regional exploration activities are concentrated in three under-explored mineral districts: the Pilar District, located in the south of the Curaçá Valley, the centrally located Surubim District and the northern Vermelhos District. Combined, these districts provide excellent near-mine and regional exploration potential over approximately 129,000 hectares controlled by MCSA.
LOCATION
The MCSA Mining Complex is located in northeastern Bahia State, Brazil, approximately 385 km north-northwest of the capital city of Salvador. High-grade clean concentrate grading 35% copper is shipped and sold locally to the Paranapanema Smelter or to international markets via the Port of Salvador.
Click To EnlargeMINERAL RESERVES & RESOURCES | VALE DO CURAÇÁ
| Classification | Tonnage (000 tonnes) | Grade (%Cu) | Contained Copper (000 tonnes) |
|---|---|---|---|
| Mineral Reserves, Underground | |||
| Proven | 9,707 | 1.63% | 158 |
| Probable | 17,516 | 1.34% | 236 |
| Proven & Probable | 27,224 | 1.45% | 394 |
| Mineral Resources, Underground (including Reserves) | |||
| Measured | 33,888 | 1.56% | 527 |
| Indicated | 34,292 | 1.23% | 421 |
| Measured & Indicated | 68,180 | 1.39% | 948 |
| Inferred | 36,271 | 1.05% | 380 |
| Mineral Reserves, Open Pit | |||
| Proven | 11,757 | 0.60% | 70 |
| Probable | 11,474 | 0.63% | 72 |
| Proven & Probable | 23,230 | 0.61% | 142 |
| Mineral Resources, Open Pit (including Reserves) | |||
| Measured | 15,270 | 0.63% | 97 |
| Indicated | 19,335 | 0.57% | 110 |
| Measured & Indicated | 34,605 | 0.60% | 207 |
| Inferred | 2,930 | 0.37% | 11 |
Mineral Reserve & Resource Notes:
- Mineral reserve effective date of October 1, 2020.
- Mineral resource effective date varies by deposit, with an effective date of August 8, 2020, except for P1P2 (July 24, 2020), R75 (July 9, 2019) and Sucuarana (July 3, 2020) within the Pilar District; Vermelhos Mine (July 29, 2020), Siriema and N8 (July 4, 2020), N9 (July 9, 2019) within the Vermelhos Districtl and Surubim District effective date of July 9, 2010 except for Terra do Sal (July 3, 2020).
- Presented mineral resources inclusive of mineral reserves. All figures have been rounded to the relative accuracy of the estimates. Summed amounts may not add due to rounding.
- Mineral reserve estimates were prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves, adopted by the CIM Council on May 10, 2014 (the “CIM Standards”), and the CIM Estimation for Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on November 23, 2003 (the “CIM Guidelines”), using geostatistical and/or classical methods, plus economic and mining parameters appropriate for the deposit. Mineral reserves are based on a long-term copper price of US$2.75 per pound (“lb”), and a USD:BRL foreign exchange rate of 4.27, except for the C12 (Surubim District) and Sucuarana (Pilar District) open pit mines, whose design was not changed in 2020, and continued to assume a 3.70 USD:BRL foreign exchange rate. Mineral reserves are the economic portion of the Measured and Indicated mineral resources. Mining dilution and recovery factors vary for specific mineral reserve sources and are influenced by factors such as deposit type, deposit shape, stope orientation and selected mining method. Inferred resource blocks, where unavoidably mined, were assigned zero grade. Dilution occurring from Measured & Indicated resource blocks was assigned grade based upon the current mineral resource grade of the blocks included in the dilution envelope. Please see “Technical and Scientific Information” for additional information on the stated mineral reserves.
- Underground mineral resources have been constrained within newly developed 3D lithology models applying a 0.45% and 0.20% copper grade envelope for high and marginal grade, respectively. Within these envelopes, mineral resources for underground deposits were constrained using varying stope dimensions of up to 20m by 10m by 35m applying a 0.51% copper cut-off grade, as well as a 0.32% copper marginal cut-off grade. Mineral resources have been estimated using ordinary kriging inside 5m by 5m by 5m block sizes. The mineral resource estimates were prepared in accordance with the CIM Standards, and the CIM Guidelines, using geostatistical and/or classical methods, plus economic and mining parameters appropriate to the deposit.
- Open pit mineral resources have been constrained within newly developed 3D lithology models using a 0.21% copper cut-off grade for deposits. Mineral resources have been estimated using ordinary kriging inside 5m by 5m by 5m block sizes. The mineral resource estimates were prepared in accordance with the CIM Standards, and the CIM Guidelines, using geostatistical and/or classical methods, plus economic and mining parameters appropriate to the deposit.
Mineral resources which are not mineral reserves do not have demonstrated economic viability.