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NI 43- 101
FEASIBILITY STUDY
TECHNICAL REPORT
DUNDEE PRECIOUS
METALS INC.
LOMA LARGA PROJECT,
AZUAY PROVINCE, ECUADOR
Prepared By:
David Frost, FAusIMM, B. Met Eng.
Daniel Gagnon, P. Eng.
Esias P. Scholtz, Pr. Eng.
DRA Global Limited
Kathy Kalenchuk, P. Eng.
RockEng
Houmao Liu, Ph. D, P.E.
ITASC
Paul Kaplan, P.E.
NewFields
William Shaver, P. Eng.
INV Metals Inc.
Leslie Correia, Pr. Eng.
Paterson & Cooke
Katharine Masun, M.Sc., MSA, P.Geo.
SLR Consulting (was RPA)
Prepared For:
Dundee Precious Metals Inc.
1 Adelaide Street East
Suite 500, P.O. Box 195
M5C 2V9, Canada
Issued Date: 29 November 2021
Effective Date: 08 April 2020
Report: C6090-PM-REP- 001 - 00
Date 29 November 2021 Page 2 of 426
FORWARD LOOKING STATEMENTS
This Technical Report has an effective date of April 8 th, 2020 and, unless otherwise specified, statements herein were made as of that date. The report contains forward-looking information that were made as of that date. Forward-looking information contained in this report includes, but is not limited to, statements with respect to the results of the Feasibility Study (FS), including gold price and exchange rate assumptions, IRR, NPV, pay back periods, cash flow forecasts, projected capital and operating costs, metal or mineral recoveries, mine life and production rates and other prospective metrics; mineral resource and reserves estimates; estimates of permitting submissions and timing; the timing and receipt of necessary permits and project approvals for future operations. These statements are based on information available to INV and the qualified person who authored the report as of the effective date of the report. There is no assurance that actual results will meet stated expectations. In certain cases, forward-looking information may be identified by such terms as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “shall”, “targets”, “will”, or “would”. Forward looking information contained in this report is based on certain factors and assumptions made by management and qualified persons in light of their experience and perception of historical trends, conditions existing as of the effective date of the report and expected future developments, as well as other factors management and the qualified persons believe are appropriate in the circumstances. The forward-looking information and statements are also based on metal price assumptions, exchange rate assumptions, cash flow forecasts, and other assumptions used in the FS. While these assumptions were considered reasonable by INV based on information available to it at the relevant time, they may prove to be incorrect. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include uncertainties inherent to feasibility studies, risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined, risks relating to grade or recovery rates, reliance on key personnel, operational risks, regulatory, capitalization and liquidity risks. The FS may also be subject to legal, political, environmental or other risks that could materially affect the potential development of the Project, including risks related to the COVID-19 pandemic. Please refer to DPM’s and INV’s latest management’s discussion & analysis, Annual Information Form and other disclosure documents filed and available on SEDAR at www.sedar.com for other risks that could materially affect the forward-looking information presented in this report. This list is not exhaustive of the factors that may affect any of the forward-looking information discussed herein. These and other factors should be considered carefully and Readers should not place undue reliance on forward-looking information contained herein. DPM, INV or the Qualified Persons who authored this report do not undertake to update any forward-looking information that may be made from time to time, except in accordance with applicable securities laws.
ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT
25.2 ACCESS, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY
Table 16-4: Percentage of Each Support Category (5 m Spans) by Alteration for Permanent Openings
- Date 29 November 2021 Page 3 of
- SUMMARY
- 1.1 SUMMARY AND CONCLUSIONS
- 1.2 RECOMMENDATIONS
- INTRODUCTION............................................................................................................
- 2.1 SOURCES OF INFORMATION
- RELIANCE ON OTHER EXPERTS................................................................................
- PROPERTY DESCRIPTION AND LOCATION
- 4.1 LAND TENURE
- PHYSIOGRAPHY ACCESS, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
- 5.1 ACCESS, TRANSPORTATION AND LOGISTICS
- 5.2 CLIMATE
- 5.3 LOCAL RESOURCES
- 5.4 INFRASTRUCTURE
- 5.5 PHYSIOGRAPHY
- HISTORY
- GEOLOGICAL SETTING AND MINERALISATION
- 7.1 REGIONAL GEOLOGY
- 7.2 LOCAL AND PROPERTY GEOLOGY
- 7.3 MINERALIZATION
- DEPOSIT TYPES...........................................................................................................
- EXPLORATION
- DRILLING
- 10.1 IAMGOLD DRILLING
- 10.2 INV DRILLING
- SAMPLE PREPARATION, ANALYSES AND SECURITY
- 11.1 PRE-2012 PROGRAMS
- 11.2 INV 2013 DRILL PROGRAM
- 11.3 RESULTS OF QA/QC PROGRAMS
- DATA VERIFICATION
- 12.1 MANUAL DATABASE VERIFICATION
- 12.2 INDEPENDENT ASSAYS OF DRILL CORE
- MINERAL PROCESSING AND METALLURGICAL TESTING
- 13.1 INTRODUCTION
- 13.2 HISTORICAL METALLURGICAL TESTWORK
- 13.3 TESTWORK FOR 2019 FEASIBILITY STUDY
- 13.4 SUPPLEMENTAL TESTWORK
- 13.5 RECOVERY ESTIMATES
- 13.6 METALLURGICAL VARIABILITY
- Date 29 November 2021 Page 4 of
- 13.7 DELETERIOUS ELEMENTS
- MINERAL RESOURCE ESTIMATE
- 14.1 SUMMARY
- 14.2 MINERAL RESOURCE DATABASE
- 14.3 GEOLOGICAL INTERPRETATION AND 3D SOLID
- 14.4 STATISTICAL ANALYSIS
- 14.5 CAPPING HIGH GRADE VALUES
- 14.6 COMPOSITING
- 14.7 DENSITY
- 14.8 NSR CUT-OFF VALUE
- 14.9 VARIOGRAPHY AND INTERPOLATION VALUES
- 14.10 BLOCK MODEL
- 14.11 BLOCK MODEL VALIDATION
- 14.12 CLASSIFICATION
- 14.13 SUMMARY OF MINERAL RESOURCE ESTIMATE
- 14.14 SULPHUR MODEL
- MINERAL RESERVE ESTIMATE
- 15.1 SUMMARY
- 15.2 DILUTION
- 15.3 ORE RECOVERY
- 15.4 GOLD EQUIVALENT CALCULATIONS
- 15.5 EQUIVALENT GOLD
- MINING
- 16.1 INTRODUCTION
- 16.2 MINING METHODS
- 16.3 GEOTECHNICAL CONSIDERATIONS
- 16.4 UNDERGROUND MINE DEVELOPMENT
- 16.5 PRODUCTION SCHEDULE
- 16.6 DRILLING AND BLASTING
- 16.7 MINE EQUIPMENT
- 16.8 MINE VENTILATION
- 16.9 PASTE BACKFILL
- 16.10 UNDERGROUND HYDROGEOLOGY CONSIDERATIONS
- 16.11 UNDERGROUND SERVICE FACILITIES
- 16.12 MINE SURFACE FACILITIES
- RECOVERY METHODS
- 17.1 INTRODUCTION
- 17.2 PROCESS FLOW SHEET
- 17.3 PLANT DESIGN
- 17.4 PRODUCTION SUMMARY
- 17.5 ENERGY, WATER AND PROCESS MATERIAL REQUIREMENTS
- PROJECT INFRASTRUCTURE
- Date 29 November 2021 Page 5 of
- 18.1 SUMMARY
- 18.2 TRANSMISSION LINE AND SITE POWER DISTRIBUTION
- 18.3 ROADS
- 18.4 BUILDINGS
- 18.5 COMMUNICATIONS
- 18.6 FILTERED TAILINGS STORAGE FACILITY
- 18.7 WASTE ROCK
- 18.8 WATER AND OTHER LIQUID EFFLUENT HANDLING
- 18.9 WASTE WATER TREATMENT PLANT
- 18.10 GARBAGE, HAZARDOUS & OTHER WASTE
- 18.11 TRANSPORTATION AND LOGISTICS
- MARKET STUDIES AND CONTRACTS
- 19.1 MARKETS
- 19.2 CONTRACTS
- 20.1 INTRODUCTION
- 20.2 PROJECT PERMITTING AND ENVIRONMENTAL ASSESSMENT
- 3 ENVIRONMENTAL STUDIES
- 20.4 SOCIAL OR COMMUNITY REQUIREMENTS
- 20.5 SOCIAL MANAGEMENT POLICIES AND PROCEDURES
- 20.6 MINE CLOSURE REQUIREMENTS
- CAPITAL AND OPERATING COSTS..........................................................................
- 21.1 CAPITAL COST ESTIMATE
- 21.2 OPERATING COST ESTIMATE
- ECONOMIC ANALYSIS
- 22.1 ECONOMIC CRITERIA
- 22.2 CASH FLOW ANALYSIS AND ECONOMIC RESULTS
- 22.3 SENSITIVITY ANALYSIS
- ADJACENT PROPERTIES
- OTHER RELEVANT DATA AND INFORMATION
- 24.1 EXECUTION PLAN
- 24.2 RISK
- 24.3 POWER LINE
- 24.4 TRANSPORTATION AND LOGISTICS
- 24.5 ACCESS ROAD
- 24.6 ENVIRONMENTAL PERMITTING
- INTERPRETATION AND CONCLUSIONS
- 25.1 PROPERTY DESCRIPTION AND LOCATION
- 25.3 GEOLOGY AND MINERAL RESOURCES
- Date 29 November 2021 Page 6 of
- 25.4 MINERAL RESERVE ESTIMATE AND MINING METHODS
- 25.5 MINERAL PROCESSING AND METALLURGICAL TESTING
- 25.6 RECOVERY METHODS
- 25.7 PROJECT INFRASTRUCTURE
- 25.8 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT
- 25.9 CAPITAL COSTS
- 25.10 OPERATING COSTS
- 25.11 ECONOMIC ANALYSIS
- RECOMMENDATIONS
- 26.1 PROPERTY DESCRIPTION AND LOCATION
- 26.3 GEOLOGY AND MINERAL RESOURCES
- 26.4 MINERAL RESERVE ESTIMATE
- 26.5 MINING METHODS
- 26.6 MINERAL PROCESSING AND METALLURGICAL TESTING
- 26.7 PROJECT INFRASTRUCTURE
- 26.8 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT
- 26.9 MARKET STUDIES AND CONTRACTS
- 26.10 OTHER RELEVANT DATA AND INFORMATION
- REFERENCES
- DATE AND SIGNATURE PAGE..................................................................................
- CERTIFICATE OF QUALIFIED PERSON....................................................................
- Date 29 November 2021 Page 7 of
- Table 1-1: Mineral Resource Estimate Summary as of March 31, LIST OF TABLES
- Table 1-2: Loma Larga Mineral Reserves Estimate as of March 31,
- Table 1-3: Smelter Terms
- Table 1-4: Capital Cost Summary
- Table 1-5: Initial Capital Estimate Summary by Discipline
- Table 1-6: Summary of Sustaining Capital Cost
- Table 1-7: Project Life-of-Mine Operating Costs by Major Area
- Table 2-1: List of QPs
- Table 4-1: Initial IAMGOLD Mining Concessions (INV Metals Inc. – Loma Larga Project)
- Table 4-2: Property Size for Economic Evaluation Stage
- Table 4-3: Current Surface Rights Agreements (INV Metals Inc. – Loma Larga Project)
- Table 5-1: Estimated Mean Monthly and Annual Site Precipitation at Loma Larga Site
- Table 5-2: Mean Monthly Potential Evaporation Estimates at Loma Larga Site
- Table 10-1: Metallurgical and High-Grade Zone Drill Results
- Table 10- 2 : Geotechnical and Hydrogeological Drill Holes Completed in 2016 -
- Table 10-3: Selected Drill Results from the 2017 Geotechnical and Hydrogeological Drilling
- Table 10-4: Summary of 2017 Loma Larga Drill Program
- Table 10-5: 2017 Selected Loma Larga Drill Program Results
- Table 11-1: QA/QC Review Summary – 2013 Drilling Program
- Table 11-2: CRMs Used In 2013 Drilling Program
- Table 11- 3 : Summary of CRM Results
- Table 11-4: Summary of Field Duplicate Results
- Table 11-5: Summary of Reject Duplicate Results
- Table 11-6: Summary of Pulp Duplicate Results
- Table 11-7: Summary of Pulp Replicate Results
- Table 11-8: Summary of the 2016-2017 Drilling Program
- Table 11-9: QA/QC Review Summary – 2017 Drilling Program
- Table 11-10: CRMs Used In 2017 Drilling Program
- Table 11- 1 1: Summary of CRM Results
- Table 11-12: Summary of Reject Duplicate Results
- Table 11-13: Summary of Pulp Duplicate Results
- Table 12-1: Drill Hole Collar Elevation Errors
- Table 13- 1 Ore Type Categories
- Table 13-2: Head Sample Assays and Mineralogical Data
- Table 13-3: 2017/18 Ore Hardness Testing
- Table 13-4: Bulk Circuit Rougher and Cleaner Variability Test Results
- Table 13-5: Overall Bulk Cleaner Results to Copper Concentrate
- Table 13-6: LCT # 2 Recovery to Bulk Second Cleaner Concentrate
- Table 13-7: LCT #1 Test Conditions
- Table 13-8: LCT #1 Stream Assays
- Table 13-9: LCT #1 Overall Recoveries
- Table 13-10: LCT #1 Staged Recoveries
- Table 13-11: LCT #2 Test Conditions
- Table 13-12: LCT #2 Stream Assays
- Table 13-13: LCT #2 Overall Recoveries
- Table 13-14: LCT #2 Staged Recoveries
- Table 13-15: LCT #3 Sample Head Grade
- Table 13-16: LCT #3 Test Conditions
- Table 13-17: LCT #3 Stream Balanced Data
- Table 13-18: LCT #3 Overall Recoveries Balanced Data
- Date 29 November 2021 Page 8 of
- Table 13-19: LCT #3 Stage Recoveries Balanced Data
- Table 13-20: LCT #4 Sample Head Grade – 5 Year Composite
- Table 13-21: LCT #4 Test Conditions
- Table 13-22: LCT #4 Stream Assays – Balanced Data
- Table 13-23: LCT #4 Overall Recoveries – Balanced Data
- Table 13-24: LCT #4 Stage Recoveries – Balanced Data
- Table 13-25: SFR (PP-01) vs. Average Bench Flotation Performance
- Table 13-26: Deleterious Elements Recovery to Copper Concentrate
- Table 13-27: Deleterious Elements Recovery to Pyrite Concentrate
- Table 14-1: Mineral Resource Estimate Summary as of March 31,
- Table 14-2: Mineral Resource Database
- Table 14-3: Rock Codes
- Table 14-4: Descriptive Statistics of Resource Assay Values
- Table 14-5: Capped Grade Values of Resource Assays
- Table 14 - 6: Descriptive Statistics of Resource Capped Assay Values
- Table 14-7: Descriptive Statistics of Resource Capped Composite Values
- Table 14-8: Descriptive Statistics of Resource Density Values
- Table 14-9: Descriptive Statistics of Composited Density Samples
- Table 14-10: Cut-Off Value Assumptions
- Table 14-11: Block Estimation Parameters
- Table 14-12: Block Model Dimensions
- Table 14-13: Block Model Field Descriptions
- Table 14-14: Comparison of Grade Statistics for Assays, Composites and Resource Blocks
- Table 14-15: Mineral Resource Estimate as of March 31,
- Table 14-16: Sulphur Database used for Block Grade Estimation
- Table 14-17: Descriptive Statistics of Geochemistry Resource Assay Values
- Table 14-18: Descriptive Statistics of Sulphur Composite Values
- Table 14-19: Sulphur Block Estimation Parameters
- Table 14-20: Descriptive Statistics of Sulphur Block Values
- Table 15-1: Loma Larga Mineral Reserves estimate as of March 31,
- Table 15-2: Loma Larga NSR Cut-Off Parameters
- Table 16-1: MSO Parameters for Transverse Longhole Stope Design
- Table 16-2: Summary of Rock Mass Classification Statistics
- Table 16-3: Summary of Joint Set Orientations (Dip/Dip Dir’n, in degrees)
- Table 16-5: Ramp Development Schedule
- Table 16- 6 : Pre-Production (Ramp-up) Phase
- Table 16-7: Ore Stockpiling During Pre-Production Phase
- Table 16-8: Detailed Mine Schedule
- Table 16-9: Major Mine Mobile Equipment
- Table 16-10: Auxiliary Mobile Mine Equipment
- Table 16-11: Design Velocities and Quantities
- Table 16-12: Friction Factors
- Table 16-13: Leakage
- Table 16-14: Development Ventilation
- Table 16-15: Diesel Equipment Utilization
- Table 16-16: Diesel Fleet
- Table 16-17: Surface Ambient Design Conditions
- Table 16-18: Virgin Rock Temperatures
- Table 16-19: Thermal Criteria
- Table 16-20: Summary of Airborne Pollutants OEL
- Table 16-21: Maximum Time of Exposure
- Date 29 November 2021 Page 9 of
- Table 16-22: Ventilation Requirement Start of Stope Development
- Table 16-23: Ventilation Requirement, Near North Ventilation Raise Operational
- Table 16-24: Ventilation Requirement, Near South Ventilation Raise Operational
- Table 16-25: Ventilation Requirement, Far North Ventilation Raise Operational
- Table 16- 26 : Ventilation Requirement, Full Ventilation System Operational
- Table 16-27: Underground Water Supply for Ramp and Pre-Production Development
- Table 16-28: Underground Water Supply for Full Production
- Table 16-29: Underground Electrical Equipment List and Consumption
- Table 17-1: Summary Process Design Criteria
- Table 17-2: Loma Larga LOM Process Plant Production Plan
- Table 18-1: Tailings Facility Stage - Storage Relationships
- Table 18-2 Annual Contact Water Volumes Requiring Treatment (Mm^3 /year)
- Table 18-3 Expected Water Quality and Anticipated Discharge Limits
- Table 19-1: Smelter Terms
- Table 20-1: Main Permitting requirements for the Loma Larga Project
- Cerro Casco and Cristal) from 2003 to Table 20-2 Summary of Environmental Studies Conducted on the Loma Larga Concessions (Rio Falso,
- Table 21-1: Capital Cost Summary
- Table 21-2: Initial Capital Estimate Summary by Discipline
- Table 21-3: Summary of Sustaining Capital Cost
- Table 21-4: Summary of Closure Costs
- Table 21-5: Summary of Mine Capital Cost
- Table 21-6: Summary of Process Plant Capital Cost Estimate
- Table 21-7: Summary of Waste Management Capital Cost Estimate
- Table 21-8: Summary of Plant Infrastructure Capital Cost Estimate
- Table 21-9: Summary of Off-Site Infrastructure Capital Cost Estimate
- Table 21-10: Summary of Project Indirect Capital Cost Estimate
- Table 21-11: Capital Cost Estimate Basis
- Table 21-12: Bulk Commodity Quantities for Process Plant
- Table 21-13: Bulk Quantity Summary
- Table 21-14: Pricing Source Breakdown
- Table 21-15: Foreign Exchange Rates
- Table 21-16: Project Life-of-Mine Operating Costs by Major Area
- Table 21-17: Mining Labour Complement – Management
- Table 21-18: Mining Labour Complement – Operations
- Table 21 - 19: Mining Labour Complement – Maintenance
- Table 21-20: Draw Point Development – Mining Labour Cost
- Table 21-21: Stope Production – Mining Labour Cost
- Table 21-22: Mining Equipment Cost Distribution
- Table 21- 2 3: Mining Equipment Cost – Component
- Table 21-24: Draw Point Development – Mining Material Cost
- Table 21-25: Stope Production – Mining Material Cost
- Table 21-26: Mining Operating Cost Summary
- Table 21-27: Process Plant Labour Complement and Cost
- Table 21-28: Process Plant Electrical Consumption and Cost
- Table 21-29: Process Plant Reagents and Cost
- Table 21-30: Process Plant Grinding Media and Cost
- Table 21 - 31: Crusher and Mill Liner Costs
- Table 21-32: Process Plant Maintenance Costs
- Table 21-33: Overall Process Plant Operating Cost
- Table 21-34: Backfill Plant Operating Costs
- Table 21-35: Tailings Disposal Costs
- Table 21-36: Overall G&A Costs
- Date 29 November 2021 Page 10 of
- Table 21-37: G&A Labour Complement and Cost
- Table 21-38: G&A Costs – Corporate
- Table 21-39: G&A Costs – Site Office Costs
- Table 21-40: G&A Costs – Mine Support Costs
- Table 22-1: Base Case Financial Results
- Table 22-2: Production Rates
- Table 22-3: Metal Prices
- Table 22-4: Concentrate Transport
- Table 22-5: LOM Operating Costs
- Table 22-6: LOM Capital Expenditure
- Table 22-7: Loma Larga Project Financial Results
- Table 22-8: Cash Flow Statement – Base Case
- Table 22-9: Gold Price Sensitivity
- Table 24-1: Loma Larga Key Milestones – Project
- Table 24- 2 : Loma Larga- Lead Time Long Lead Equipment
- Table 24-3: Major Construction Contracts – Bid in Feasibility Study
- Table 24-4: Bulk Quantity Summary
- Table 24-5: Bulk Commodity Quantities for Process Plant
- Table 24-6: Loma Larga – Feasibility Study Risk Register – Major Risks
- Table 25-1: Capital Cost Summary
- Table 25-2: Initial Capital Estimate Summary by Discipline
- Table 25-3: Summary of Sustaining Capital Cost
- Table 25- 4 : Project Life-of-Mine Operating Costs by Major Area
- Date 29 November 2021 Page 11 of
- Figure 1.1: Project Life-of-Mine Unit Operating Costs LIST OF FIGURES
- Figure 4.1: Loma Larga Project and Natural Protected Areas
- Figure 5.1: Route options between Guayaquil and Girón
- Figure 7.1: Major Terranes of Ecuador
- Figure 7.2: Regional Geology
- Figure 7.3: Property Geology
- Figure 7.4: Cross Section of the Loma Larga Deposit, Looking Northeast
- Figure 7.5: Longitudinal Section of the Loma Larga Deposit, Looking East
- Figure 8.1: Zonation of Alteration in a High Sulphidation Deposit
- Figure 8.2: Schematic Section of a High Sulphidation Deposit
- Figure 10.1: Location of INV 2016-2017 Drill Holes in 3D Isometric View
- Figure 10.2: Location of 2016-2017 Loma Larga Drill Holes in 3D Isometric View
- Figure 11.1: Gold Control Chart for 2013 Drilling: CRM SG14
- Figure 11.2: Gold Control Chart for 2013 drilling: CRM SI15
- Figure 11.3: Gold Control Chart for 2013 drilling: CRM SN16
- Figure 11.4: Gold Field Duplicate Scatterplot
- Figure 11.5: Gold Reject Duplicate Scatterplot
- Figure 11.6: Gold Pulp Duplicate Scatterplot
- Figure 11.7: Gold Pulp Replicate Scatterplot
- Figure 11.8: Gold Control Chart: CRM SG66
- Figure 11.9: Gold Control Chart: CRM SI15
- Figure 11.10: Gold Control Chart: CRM SJ63
- Figure 11.11: Gold Control Chart: CRM SN16
- Figure 11.12: Gold Control Chart: CRM SN60
- Figure 11.13: Gold Reject Duplicate Scatterplot
- Figure 11.14: Silver Reject Duplicate Scatterplot
- Figure 11.15: Copper Reject Duplicate Scatterplot
- Figure 11.16: Gold Pulp Duplicate Scatterplot
- Figure 11.17: Silver Pulp Duplicate Scatterplot
- Figure 11.18: Copper Pulp Duplicate Scatterplot
- Figure 13.1:Drill Hole Locations and Ore Types
- Figure 13.2: Bulk Cleaner Assay Reject Samples – SFR Bulk Concentrates
- Figure 13.3: Copper Rougher Variability Results
- Figure 13.4: Pyrite Rougher Variability Results
- Figure 13.5: Copper Cleaner – Copper Grade vs Recovery
- Figure 13.6: Copper Cleaner – Arsenic Grade vs Recovery
- Figure 13.7: Copper Cleaner Gold Grade vs Recovery
- Figure 13.8: Copper Concentrate Sulphur Grade vs Recovery
- Figure 13.9: LCT #1 Flowsheet
- Figure 13.10: Loma Larga 2017 Metallurgical Testing Program LCT #2 Flowsheet
- Figure 13.11: LCT #3 Flowsheet
- Figure 13.12: LCT #4 Flowsheet
- Figure 13.13: Metallurgical Data and Model for Copper Recovery and Concentrate Grade
- Figure 13.14: Gold Deportment to Copper Concentrates
- Figure 14.1: 2018 versus 2016 Wireframe Domains in Plan View (3,600 m Level)
- Looking Northeast Figure 14.2: 3D View of 2018 High Grade (2.0 g/t Au) and Low Grade (0.8 g/t Au) Wireframe Domains,
- Looking West Figure 14.3: 3D View of 2018 High Grade (2.0 g/t Au) and Low Grade (0.8 g/t Au) Wireframe Domains,
- Figure 14.4: Histogram of Resource Density Samples
- Date 29 November 2021 Page 12 of
- Figure 14.5: Box Plot of Resource Density Samples by Domain
- Figure 14.6: High Gold Grade and Classification of Selected Block in the Low Grade Lower Zone
- Figure 14.7: Capped Gold Composites and Blocks on 3,600 m Level
- Figure 14.8: Capped Silver Composites and Blocks on 3,600 m Level
- Figure 14.9: Capped Copper Composites and Blocks on 3,600 m Level
- Grades Figure 14.10: High Grade Main Zone Trend Plots and Histograms of Capped Gold Assays versus Block
- Grades Figure 14.11: Low Grade Main Zone Trend Plots and Histograms of Capped Gold Assays versus Block
- Figure 14.12: Plan View of Block Classification on the 3,600 m Level.
- Figure 14.13: Cumulative Histogram of Distance to Nearest Sample Grouped by Class
- Figure 14.14: 3D Isometric View of Drill Holes with Sulphur Data
- Figure 14.15: Assay Histograms for Sulphur
- Figure 14.16: Sulphur Composites and Blocks on 3,600 m Level
- Figure 16.1: Loma Larga Deposit, Portal and Main Surface Infrastructure
- Figure 16.2: Loma Larga Mine Layout
- Figure 16.3: Primary and Secondary Transverse Longhole Stopes
- Figure 16.4: Drift and Fill Method
- Figure 16.5: Ground Support for 1.2 m x 1.2 m Pattern
- Figure 16.6: Ground Support for 3 and 4-way Intersections
- Figure 16.7: Large-Scale Structural Features
- Figure 16.8: Portal Layout
- Figure 16.9: Portal 3D View
- Figure 16.10: Haulage Ramp General Arrangement with 40-ton Truck
- Figure 16.11: Level Access General Arrangement with 40-ton Truck
- Figure 16.12: Drawpoints and Drilling Drift General Arrangement
- Figure 16.13: Loading Station - Plan View
- Figure 16.14: Main Haulage Ramp and Main Haulage Drift Blast Drilling Pattern
- Figure 16.15: Drawpoint Drift Blast Drilling Pattern
- Figure 16.16: Main Ventilation Infrastructure
- Figure 16.17: Extraction Profile
- Figure 16.18: Fan Pressure Requirements Main Ramp
- Figure 16.19: Ramp Ventilation Requirements to Meet Mine Development Schedule
- Figure 16.20: Development of Multiple Ends as per the Mining Schedule
- Figure 16.21: Start of Stope Development
- Figure 16.22: Near North Ventilation Raise Operational
- Figure 16.23: Near South Ventilation Raise Operational
- Figure 16.24: Far North Ventilation Raise Operational
- Figure 16.25: Full Ventilation System Operational
- Figure 16.26: Main Fan Curve
- Figure 16.27: Binder Estimate (28 Day Target Strength)
- Figure 16.28: Paste Plant Site Plan (including Paste Plant and Process Plant Location)
- Figure 16.29: Schematic Diagram of Underground Workings – Pipeline Profile (Plan View)
- Figure 16.30: Schematic Diagram of Underground Workings – Pipeline Profile (Mine Elevation)
- Figure 16.31: Mine Water Balance
- Figure 16.32 : Electrical Single Line Drawing
- Figure 16.33: Level 3,600 Power Distribution
- Figure 16.34: Level 3,625 Power Distribution
- Figure 16.35: Surface Facilities
- Figure 17.1: Simplified Overall Process Flow Diagram
- Figure 18.1: Overall Site Layout
- Figure 18.2: FTSF Site Layout
- Figure 18.3: Landfill Plan View and Sections and Details
- Date 29 November 2021 Page 13 of
- Monitoring Locations Figure 20.1: Historical and Existing Hydro-meteorological, Air Quality and Ambient Noise Baseline and
- Figure 20.2: Key Water Quality Monitoring Locations for the Loma Larga Mining Project
- Figure 20.3: Monitoring Stations for Flora and Fauna for the Loma Larga Mining Project
- Figure 20.4: Areas of Social Influence of the Loma Larga Project
- Figure 21.1: Project Life-of-Mine Unit Operating Costs
- Figure 21.2: Mining Labour Costs by Category and Activity
- Figure 21.3: Mining Equipment Costs (Direct and Indirect Costs)
- Figure 21.4: Mining Material Costs
- Figure 21.5: Mining Support Equipment Maintenance and Power Costs
- Figure 21.6: Reagent and Grinding Media Cost Contribution
- Figure 22.1: After-Tax Cash Flow and Cumulative Cash Flow Profiles
- Figure 22.2: Pre-Tax NPV and IRR Sensitivity
- Figure 22.3: After-Tax NPV and IRR Sensitivity
- Figure 24.1: Loma Larga Level 1 Schedule – Project
- Figure 24.2: Project Management Organization Chart
- Figure 25.1: Project Life-of-Mine Unit Operating Costs
Date 29 November 2021 Page 14 of 426
LIST OF ABBREVIATIONS
Units of measurement used in this Report conform to the metric system. All Currency in this Report is US Dollars (US$) unless otherwise noted. GENERAL μg/m^3 microgram per cubic metre μm microns, micrometer $ Dollar $/m^2 Dollar per square metre $/m^3 Dollar per cubic metre $/t Dollar per metric tonne % Percent Sign % w/w Percent solid by weight ¢/kWh cent per Kilowatt hour ° Degree °C degree celsius 2D Two Dimensions 3D Three Dimensions A AACEI Association for the Advancement of Cost Engineering ABA acid base accounting ADI Area of Direct Influence Ag Silver AI Abrasion Index AII Area of Indirect Influence AMSL above mean sea level ANFO Ammonium nitrate and fuel oil ASL Above Sea Level Au Gold AWG American Wire Gauge B BESIA Bankable Environmental and Social Impact Assessment BSG Bulk Specify Gravity BWI Bond Ball Mill Work Index and Bond Work Index C CAD$ Canadian Dollar CAPEX Capital Expenditures cfm cubic feet per minute CIF Cost Insurance and Freight CIL Carbon in Leach CIM Canadian Institute of Mining, Metallurgy and Petroleum CIP Carbon in Pulp or Carriage and Insurance Paid cm Centimeter COA Certificate of Analysis CofA Certificate of Authorization COP Code of Practice COPC Constituents of potential concern COV Coefficient of Variation CRM Certified Reference Material Cu Copper CWI Crusher Work Index D d day DCF Discounted cash flow DWT Drop Weight Test E E East EHS Environment Health and Safety EIA Environmental Impact Assessment EIS Environmental Impact Statement EPA Environmental Protection Agency EPCM Engineering, Procurement and Construction Management ESIA Environmental and Social Impact Assessment F Fe Iron FS Feasibility Study ft feet FRB FIDIC Red Book FTSF Filtered tailings storage facility G g Grams G&A General and Administration g/t grams per tonne GEMS Global Earth Using Space-System Monitoring GT Geotechnical GWH Gigawatt hour H H Horizontal h Hour HAZOP Hazard and Operability H 2 Hydrogen HCTs Humidity cell tests HDPE High Density Polyethylene HF Hydrofluoric Acid HP horse power HQ Drill Core Size (6.4 cm diameter) HSE Health, Safety and Environmental
Date 29 November 2021 Page 16 of 426 SGS SGS Lakefield Research Limited of Canada SLIP Supplementary lenders information package SMC SAG Mill Comminution SPI SAG Power Index SQCP Site Quality Control Plan SUIA Unique system of environmental information SW Southwest T t or tonne metric tonne t/d metric tonne per day t/h metric tonne per hour t/h/m metric tonne per hour per metre t/h/m^2 metric tonne per hour per square metre t/m metric tonne per month t/m^2 metric tonne per square metre t/m^3 metric tonne per cubic metre ton Short ton TOR Terms of Reference tpa metric tonnes per annum (year) TSF Tailings storage facility TWA Time weighted average U UBR Unified basic remuneration US$ United States Dollar V V Volt VAT Value added tax VFD Variable Frequency Drive VRTs Virgin rock temperatures VSD Variable speed drives W W Watt W West w/w Weight per weight WBS Work breakdown structure WHO World Health Organization WMS Western Mining Services wt wet metric tonne WTP Water treatment plant WWTP Waste water treatment plant X XRD X-Ray Diffraction Y y Year
Date 29 November 2021 Page 17 of 426
SUMMARY
Dundee Precious Metals Inc. (DPM) is a Canadian mining company headquartered in Toronto, who holds, through DPM Ecuador Holdings Inc. (DPME), a 100% interest in the Loma Larga gold-copper- silver project located in Ecuador. DPM is listed on the Toronto Stock Exchange under the symbol DPM. INV Metals Inc. (INV) initially retained DRA Americas Inc. (DRA); Roscoe Postle Associates Inc., now part of SLR Consulting Ltd. (RPA); Mine Design Engineering Inc. (MDEng) now called RockEng Inc.(RockEng); Itasca Denver Inc. (Itasca); a consortium of environmental consultants; NewFields; Paterson & Cooke Canada Inc. (P&C); and SGS Canada Inc. (SGS) to prepare a Feasibility Study (FS or the Study) for the Loma Larga gold-copper-silver Project (the Project), located in Ecuador. The technical report was initially prepared for INV effective April 8,2020 and filed on SEDAR (www.sedar.com) to summarise the results of the FS. The report was prepared in compliance with the disclosure requirements of the Canadian National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Projects. Pursuant to a plan of arrangement completed on July 26, 2021, DPM has acquired ownership of all the shares of INV. INV continues to exist as a wholly owned subsidiary of DPM. Following the arrangement. INV changed its name to DPM Ecuador Holdings Inc. (DPME) on October 20 , 2021. DPM has requested that DRA, RPA (now SLR), RockEng, Itasca, and P&C readdress this technical report to DPM in order to support its own disclosure. No changes have been made to this technical report beyond addressing it to DPM, inserting references to DPM and other necessary updates where appropriate, and re-dating it, as well as formatting changes and minor typographical and other necessary corrections. The mineral reserve and estimates remain effective as of March 31, 2020. The capital and operating cost estimates, and the economic analysis presented herein have not been updated from the original date of the technical report prepared for INV. The Report will continue to refer to the holding company as INV or “the Company” to minimise the number of changes to the report and maintain consistency with previous filings of this Report. The Loma Larga Project supports conventional mining methods and proven processing technologies. The regional infrastructure will reasonably support all phases of the Project. DPME is committed to execute all phases of the Project in a socially responsible and environmentally sustainable manner. The underground mine and related processing infrastructure have been designed to minimize the footprint with an estimated disturbance area of less than 30 hectares at the Project site, with a total Project disturbance area estimated at less than 65 hectares including the tailings storage facility and ancillary infrastructure. The process plant design, the use of paste backfill, and a filtered tailings disposal method will recover water for re-use in processing to minimize the use of water and reduce treated water discharge.
Date 29 November 2021 Page 19 of 426 Annual evaporation is estimated (NewFields, 2018) to be approximately 844 mm. The Project could attract resources from the local communities surrounding the Project, including San Gerardo, Chumblin and Victoria del Portete. There is currently minimal infrastructure on the property. The north-south access road, which has been deemed a public road by the government, extends all the way past the future portal entrance and up to the mine concession above the ore body. In addition, there is a small camp at Los Pinos that can house 30 people including office space and there is electrical power from the grid. There is also good cellular and Wi-Fi service. Electrical power is to be provided via the local utility, CENTROSUR S.A. (CENTROSUR), from the local network in Ecuador. The main 69 kV / 25 MVA supply will connect to the network running between Lentag and Victoria del Portete, with the new substation located near Girón and the transmission line up to the plant site. The incoming 69 kV will terminate into the main substation at the plant site and will be stepped down to 22 kV from where it will be distributed to site facilities. A 2 MVA, 22 kV supply from San Fernando is proposed for construction power and emergency backup power as it is fed from a different source, on different infrastructure and overhead lines that run a different route. Operational diesel generators are therefore deemed not to be necessary. The property of Loma Larga is located within the Western Cordillera of the Andes, which is made up of a series of narrow lands, oriented in a north-easterly direction. The Project is located in the southern part of the Chaucha continental terrain, in the physiographic province of the Western Cordillera. The terrain is composed of volcanic rocks from the Tertiary continental arc deposited on marine to fluvial sedimentary rocks from the Upper Cretaceous, which in turn were deposited on metamorphic rocks in the Paleozoic and Mesozoic bases. The physiography at the Project consists of desert plains and rugged valleys, mainly formed by glaciers, with an altitude ranging from 3,500 m ASL to 3,960 m ASL. Vegetation is sparse and typical of the Andean region above tree line. Much of the property is covered by Andean “paramo”, a type of moorland vegetation consisting mainly of coarse grasses (Calamagrostis sp.), Pads (Plantago sp.), and upper montane forest. There are stands of small pine on hillsides adjacent to the concessions. These were planted as part of a forestation project.
1.1.3 History
Exploration activity began in the area in the late 1970s when a United Nations survey identified the Tasqui and Jordanita base metal stream sediment geochemical anomalies five kilometres south of the margin of the Quimsacocha caldera. In 1991, the property was acquired by COGEMA (now ORANO), which completed 2,944 m of diamond drilling in 17 holes on vein and disseminated targets. COGEMA entered into a joint venture
Date 29 November 2021 Page 20 of 426 with Newmont Mining Corporation (Newmont) and TVX Gold Inc. in 1993. Newmont drilled 82 holes totalling 7,581 m. With the average hole being less than 100 m deep, the drill program failed to reach the Loma Larga deposit. IAMGOLD subsequently entered into the option agreement with COGEMA in 1999, however, no work was carried out for several years. IAMGOLD discovered the Loma Larga deposit in 2004 and carried out a drill program consisting of 280 holes totalling 65,117 m. A PFS was completed in 2008. On June 22, 2012, INV entered into a share purchase agreement with IAMGOLD and its two subsidiaries, AGEM Ltd. and Repadre Capital (BVI) Inc., to purchase a 100% interest in IAMGOLD Ecuador S.A. INV obtained 100% title to the property in November 2012. INV drilled 12 drill holes in 2013. Geotechnical, hydrological, and exploration drilling was also performed by INV in 2016-2017. A total of 6,978.21 metres were drilled in 32 drill holes. As a result of this drill program, an indication of the presence of multiple feeder zones along the north-south length of the deposit were identified. The results of a Feasibility Study were announced in November 2018 , and a related 43-101 Technical Report was filed on January 14, 2019 (the 2019 Technical Report). An updated Feasibility Study to the one mentioned above was completed in March 2020, the results of which were published on March 31, 2 020 and are supported by this document. There has been no production from the Loma Larga Project to date.
1.1.4 Geology and Mineral Resources
1.1.4.1 GEOLOGICAL SETTING AND MINERALISATION
The Loma Larga property is located within the Ecuadorian cordillera, which consists of a number of narrow, north to northeast trending terranes which were formed during the separation of the Central and South American plates and accreted onto the Amazon Craton from the Late Jurassic to Eocene. Most of the terranes extend for several hundreds of kilometres in a north-northeast direction and are only a few tens of kilometres wide. They are separated by deep north-northeast trending faults. These terranes were built upon during the Tertiary and Quaternary by subduction related continental arc magmatism and reactivation of the terrane bounding faults. The Project lies in the southern part of the Chaucha continental terrane, in the Western Cordilleran physiographic province. The terrane consists of Tertiary continental arc volcanic rocks deposited upon Cretaceous marine to fluvial sedimentary rocks, which in turn were deposited on basement Paleozoic and Mesozoic metamorphic rocks. The Loma Larga property is located between the Gañarin fault to the northwest and the Girón fault to the southeast. A collapsed caldera structure, four kilometres in diameter, the remnant of an eroded
