Photo: MERN

Appendix III

The process of mineral development

127 Report on Mineral Activities in Québec - 2014

 This schematic chart describes the nature and duration of work, objectives,
evaluation methods, targeted results and nature of mineral inventory
for each of the four phases of the mineral resource development process:
The Mineral mineral resource assessment, exploration, deposit appraisal and mine
complex development.
In this chart, a mineral showing requires at least one grab sample or one drill
Development Process intercept, trench or channel sample from a mineralized zone that exhibits
potential economic value. A mineral deposit consists of at least one mineralized
zone for which the economic potential has been broadly assessed through a first
mineral resource estimation. Conversion of mineral resource into mineral
reserves not only requires a positive feasibility study following deposit appraisal
work, but also a commitment to bring the deposit into production. The mine
complex development phase includes work conducted during the preparation
and development of the project, mining operation, and mine site rehabilitation.

Mineral Resource Exploration Deposit Appraisal Mine Complex

Assessment Development
Phase VRM EX - 1 EX - 2 EX - 3 EX - 4Stade EX - 5 MV - 1 MV - 2 MV - 3 Stade
MV - 4 ACM-1 ACM-2 ACM-3
(Preparation (Site rehabilitation)
and development) (Mining operations)

Surveys, research, Exploration Regional Prospecting and Verification of Discovery and Definition of Definition of Definition of Feasibility study. Construction. Production Mine closure.
Work Travaux
and metallogenic planning. reconnaissance ground surveys anomalies and Travaux delineation of a deposit
deposit with technical economic Start-up of mine. and marketing. Mine site
syntheses. and surveys. on anomalies. showings. with estimated tonnage. estimated tonnage. parameters. parameters. rehabilitation.
(Engineering)

Durée Durée

Report on Mineral Activities in Québec - 2014

Duration 2 years + 3 to 8 years 2 to 3 years 5 years +
des travaux des travaux

Provide Select targeted Find regional and Acquire properties. Determine the Discover, confirm F Define the extent, Establish technical Establish Ensure validity of Complete mine Achieve commercial Rehabilitate mine
Objectives Objectifs Objectifs
information and minerals and local anomalies. Confirm the source of and delineate a first controls, and feasibility. Establish parameters for data, assumptions, development and production as per site to safe and
tools to develop metals. Establish Select the most presence, position anomalies. Find mineral inventory internal distribution mining plans, economic and and estimations. required construction planned rate and visually acceptable
mineral resources objectives and promissing targets. and characteristics mineral showings. for the deposit. of the mineralogy schedule and financial assessment. Decide whether or work in line with budget specifications. level and environment
in a sustainable strategies. Select of anomalies. Acquire additional Assess its economic and ore grade of the estimations for Examine potential not to proceed. and schedule. Achieve profitability quality compatible
development prospectives targets properties as needed. potential in a deposit. Plan and the project. sources of financing. Prepare start-up of mine in a sustainable with future land uses.
perspective. areas. preliminary fashion design project and processing plant. development
engineering. perspective.

128
Surveys, research, Studies and selection Remote sensing, Prospecting and Geological mapping Stripping, trenching, Definition work by Bulk sampling. Market, price, and Méthodes Due diligence review Project management Manage production Decommissioning
Evaluation Méthodes
and geoscientific, of metals and minerals. aerial photography, ground geoscientific and other surveys. mapping, sampling, mapping, sampling, Pilot-scale tests, financial studies. of all available and quality management. in line with continuous of mine.
methods metallogenic and Reviews and synthesize airborne geophysics. surveys. Overview Trenching, sampling, drilling, geophysics.
d'évaluation surface and engineering and information on the
Analysis of technical,d'évaluation Plan mine start-up and improvement of Environmental
economic geological and Prospecting, geology and selection of drilling. Assessment of Preliminary resource underground drilling. cost estimates for economic, financial, project. Assess training of personnel. quality and reclamation and
syntheses by metallogenic information and geochemistry. anomalies for results and selection estimation. Acquire data for the mine, the ore social, political, and profitability, risks, performance. monitoring.
governments, for various regions. Assessment and follow-up. of targets. Environmental project engineering. concentration process, environmental risks. and positive aspects Exploration, deposit
universities and Assess legal and selection of anomalies. characterization. Detailed surveys of infrastructure, of the project. appraisal, and
other research political context. site and environment. environmental protection development of new
groups. and site rehabilitation. zones on and off
mine site.

Deposit
Databases, maps, Exploration projects Regional anomalies Local anomalies Mineral showings Preliminary economic Feasibility study Decision to go Start-up of Profitability Rehabilitated
Targeted Résultats Résultats
and models estimation into production production mine site
results visés visés

Mineral Inventaire
MINERAL InventaireMINERAL MINERAL RESOURCES MINERAL RESERVES PROVEN AND
POTENTIAL RESOURCES minéral PROBABLE RESERVES
inventory minéral

Source: Modifications coordinated by S. Lacroix in august 2001 and by the Direction du développement de l'industrie minérale, March 2015, based on SOQUEM annual report, 1976-77, p. 4-5 and Vallée, M. 1992. Guide to the Evaluation of Gold Deposits, CIM, Special Volume, p. 4.
Investissement Investissement
Graphic design: Charlotte Grenier F
Risque Risque