Summary Report

LaCoipa Mine Groundwater

Quality Improvement Project

Prepared for
Kinross Gold Corporation

September 2010

C O N S U LT I N G D E S I G N E N G I N E E R I N G C O N S T R U C T I O N M A N A G E M E N T
 Summary Report

LaCoipa Mine Groundwater

Quality Improvement Project

Prepared for
Kinross Gold Corporation

September 2010

By
MWH Americas, Inc.
 LaCoipa Mine, Chile
Proposed Groundwater Quality Improvement Project

Introduction

The LaCoipa Mine operated by Kinross Gold USA, Inc. (Company) in northern Chile is located
approximately 140 km west of the City of Copiapo and has been in commercial operation for
nearly 20 years. The mine is a large gold and silver recovery operation that uses a cyanide vat
leach process to extract mineral values from the crushed and fine grind ore. The mineral deposit
contains a significant amount of mineralization in addition to gold and silver.

The LaCoipa Mine is a gold and silver (primarily silver in its current configuration) property
located in the arid Atacama Region of northern Chile. The mine is at an elevation of
approximately 3900 meters (plant site). Precipitation in the region is minimal. Temperatures
range from a high of 25°C in January to a low of -10°C in winter (August). The major source of
water for the milling operation is offsite and must be pipe conveyed from wells over 40 km
away.

The processing of gold/silver ore by cyanidation solubilizes metals as a cyanide metal complexes
that are recovered using zinc precipitation (Merrill Crowe Process). This is followed by the
refining step to recover the values as a gold/silver doré. The leached ore is thickened and
dewatered to a 20 to 25 percent cake and sent to a dry staked tailing disposal area. Mercury and
other metals can also be solubilized during the cyanide leaching and metals extraction process
and will remain in the residual solution in the dewatered tails. Enough water can remain in the
tails to allow mobilization of metals and other constituents in the tails in the absence of
significant precipitation. Significant mercury is recovered in the Merrill Crowe process, but can
continue to be leached as a mercuric cyanide complex (HgCN2) from the Rahco and Rakito
tailing facilities at low concentration levels and will, over time, report to the shallow
groundwater in the Quebrada (drainage) below the tailing. In addition, the use of cyanidation for
processing ore results in the accumulation of cyanide residuals, primarily as thiocyanate in the
spent tailing material that will report to the groundwater.

Site Description

The primary processed ore waste material disposal repository (Rahco tailings) is located above a
natural drainage (LaCoipa Quebrada - valley drainage way) (see Figure 1). A second standby
tails disposal area (Rakitoa) may also contribute subsurface drainage to the valley flow but is
thought to have a much reduced impact on groundwater quality. According to the mine
operating staff there is a shallow subsurface aquifer emanating from upgradient (above the mine)
meteoric sources (12± L/sec of flow estimated) that travels down the upper drainage and reports
to the LaCoipa Quebrada. As described, the tailings are dewatered (gravity belt filtration) but
appear to contain enough residual water to serve as a contributing source of water to the shallow
groundwater that flows down the valley (LaCoipa Quebrada). For flow planning purposes, it
was estimated by the Kinross staff that approximately 32 L/sec (500 gpm) of total groundwater

LaCoipa Mine, Chile – Groundwater Quality Improvement Project Page 1

Summary Report - September 10, 2010
flow could be collected from existing and new wells for treatment and final discharge of treated
effluent by down-gradient injection near the LaCoipa Mine property boundary.

Prior to being placed in the tailing disposal area, the dewatered tailing material is treated by
addition of ferric sulfate which reacts with the residual free cyanide to form an essentially
insoluble ferric cyanide complex. This process to control cyanide is a relatively new addition
(2008) to the mill process. The soluble metal cyanide complexes can be tied up by the ferric
sulfate addition and the metals will then react with other cations to form salts and compounds of
various solubilities. Mercury will react with sulfides, chlorides and other available materials
some of which will remain soluble.

Over the past 20 years of operation, drainage flowing through the placed tails has conveyed
soluble mercury thiocyanate and other metals and nonmetal salts into the shallow groundwater
down gradient of the tails. This flow from the tailing area, while small (currently estimated at
0.1 to 1.0 L/sec), is carrying contaminants from the residual interstitial water draining from the
placed tailing. In addition, due to the prevalent sulfide characteristics of the native geology in
the drainage, acidic condition, caused by sulfide oxidation, has resulted in a decrease in pH and a
potential increase in metal solubilization in the natural background surface and subsurface
drainages originating above the mine’s area of impact.

Due to the presence of mercury in the tailing, in 1994 traces of mercury began to be detected in
the groundwater in the subsurface drainage. In response, the Company has installed numerous
interception wells to attempt to control the mercury discharged to the plume from exiting the
property. The Company developed a strategy to both contain the seepage from the tailing
material from flowing further downgradient into the groundwater that exits the property and to
collect and pump contaminated groundwater to the mill area where it can be used in the ore
processing mineral recovery in place of fresh water. In 2005, two subsurface hydraulic cut off
walls were installed in the drainage way at the base of the tailing repository to confine and help
collect the shallow groundwater so it could be intercepted and removed.

In addition, a mercury specific ion exchange treatment process was installed to treat collected
groundwater prior to injection. The ion exchange resin is processed at the treatment facility and
the mercury laden solution stripped from the resin is electrowinned and the loaded cathodes are
processed at the mill with other mercury rich materials. Elemental mercury that is recovered has
historically been sold to a commercial resaler.

While the Company’s strategy has largely been successful in minimizing any contamination
from exiting the Company’s property boundary (containment of all mercury within the Kinross
LaCoipa Mine property), there is a desire to improve the water quality and permanently being
able to rehabilitate the shallow contaminated groundwater (i.e. plume). To this end, the
Company asked MWH to evaluate and recommend a method(s) to treat the extracted (well
pumping) plume water to remove regulated metals and other contaminants so that the treated
water can be returned to the shallow aquifer in a high quality condition before it exits the Kinross
property.

LaCoipa Mine, Chile – Groundwater Quality Improvement Project Page 2

Summary Report - September 10, 2010
The detailed technical report for this project (Final Report LaCoipa Mine Groundwater
Treatment Facility Plan – August 2010) presents the results of our site investigation, evaluation
and assessment of treatment options, laboratory and bench scale analysis of potential treatment
options, and provides our recommended approach to providing the best apparent, technical and
cost-effective method(s) to provide treatment of the groundwater extracted from the plume for
injection back into the groundwater system.

Site Water Quality Characteristics

The water in the shallow groundwater plume flows approximately 6 to 7 kms from immediately
above the influence of the tailing disposal area (tailing at the cut-off wall installed in 2004) to the
Company’s property line at the southwest end of the Quebrada. The water will vary in quality
with regards to the chemical composition from sample well to sample well. Currently over 20
wells are monitored within the project area. The water quality is expected to change over time
and depending on the level of remediation provided by Kinross. Generally, the water can be
characterized as a moderately hard water with a highly mineralized composition with regard to
sulfates, calcium, thiosulfates, metals and other constituents. Within the suite of sampling sites
(monitoring and extraction/injection wells) the material concentrations and pH of the water can
change in a reportedly dynamic fashion within the drainage based on the historic sampling.

From the available historic water quality data the parameters that currently exceed or could
exceed the current water quality standards established for the project (Table 1) include:

Manganese
Mercury
Total Dissolved Solids
Nitrate
Chloride

Cyanide, cadmium, thiocyanate, and cyanide are contaminates that are potentially leached from
only the ore in the milling process and could be of future concern. The other materials of
concern can also occur as a result of the native background water quality characteristics of the
drainage.

One recent water quality concern that Company has identified, is the increase in nitrate
concentration. Nitrate is not naturally occurring in most undisturbed or unpolluted groundwater;
however, it can be a degradation product of cyanide oxidation. Nitrate is of concern at the
LaCoipa Mine site due to its relationship to the use of cyanide in the milling process. It
represents a direct connection between mining related activities and the potential degradation of
the shallow aquifer.

In order to evaluate the options for treating water, it is necessary to define both an expected
influent (raw) water quality as well as the treatment objectives (i.e., effluent quality). Table 1
provides the average water quality based on the historic available well data. The Company has
determined that this information would best represent the background (pre-mining) shallow
groundwater quality. A number of these constituents were present in the pre-mine existing
LaCoipa Mine, Chile – Groundwater Quality Improvement Project Page 3
Summary Report - September 10, 2010
background groundwater. It is the Company’s intention that before returning any water to the
aquifer that the treated effluent satisfy the higher (less restrictive) concentration of either the
historic background or regulated irrigation water quality (NCH 1333). The future water quality
requirements and the process schedule for revising the current regulatory limits regulations in
Chile are unknown; however, the implementation of non-degradation standards could require
that the mine meet more stringent requirements. While there is no site specific regulated effluent
water quality standard (i.e., discharge limit for LaCoipa) at this time, the Company has assumed
that by satisfying either the historic background or the irrigation water quality standard, whatever
is least restrictive, would protect potential down gradient beneficial uses.

Table 1
Water Quality (mg/l)
Water Quality Standard Option
Historic Background WQ Irrigation WQ Standards*
Parameter
(mg/l) (mg/l)
Aluminum 39 5
Arsenic 0.08 0.1
Boron 1.2 0.75
Cadmium <0.001 0.01
Calcium --- ---
Cyanide ND 0.2
Zinc 9.0 2
Chloride 60 200
Copper 0.09 0.2
Chrome 0.03 0.1
Fluoride 1.8 1.0
Iron 83 5
Manganese 18 0.2
Mercury ND 0.001
Molybdenum ND 0.01
Nickel 0.11 0.2
Nitrate 0.21 ---
Nitrite 0.013 ---
Lead 0.07 5.0
Selenium --- 0.02
TDS 2,400 1,000
TSS --- ---
Silica --- ---
Sulfate 2,000 250
Temp °C --- ---
pH 2.8 – 3.3 ---
Sodium (% Na)** --- 35 % of Cations Conc.
*N. Chilean Document 1333
**Process and Source Dependent – To Be Determined

LaCoipa Mine, Chile – Groundwater Quality Improvement Project Page 4

Summary Report - September 10, 2010
 Proposed Standard that is Least Restrictive Value

Evaluation of Water Quality and Groundwater Treatability at the LaCoipa Mine

The overall objective of this analysis was to conserve and protect the quality and availability of
the aquifer’s supply for beneficial use in the region. This will require optimizing the treatment
process in order to return as much of the high quality treated effluent flow for injection back into
the aquifer as practical. In order to determine the best method(s) for satisfying this objective, it
was concluded that bench scale laboratory treatability evaluation would be the most effective
approach. Pilot scale-onsite-testing was considered but not selected due to logistics and
scheduling concerns. The bench scale studies can be completed more rapidly and the laboratory
results made available in a timely manner developed in order to finalize design criteria and
proceed into the pre and final design phases of the project.

The bench scale work involved several specific tasks. In order to develop an effective
treatability study, large representative samples of representative LaCoipa well water needed to be
supplied to MWH’s research facilities and laboratory in California. The mine staff determined
four existing wells would best represent the typical water quality of the aquifer. Three of the
wells are in the southwest portion of the Quebrada in the general vicinity of the existing mercury
recovery plant (POZO 116, POZO 120, POZO 124). The fourth well (ETAPAV) is located
immediately down-gradient of the Rahco/Rakito tailing facility and is thought to best capture the
drainage from the tailing storage facilities.

These samples were individually analyzed by MWH laboratory and the results are presented in
Table 2 along with a comparison to the standards shown in Table 1.

Table 2
Bench Scale Testing
Sample Analysis
Analyte POZO 116 POZO 120 POZO 124 ETAPAV BLEND Units Anticipated
TDS 2600 2500 3000 5600 3300 mg/L 3000
Specific Conductance 2800 2800 3300 7400 4100 umho/cm NA
TSS ND ND ND ND ND mg/L <0.01
Turbidity 0.3 0.2 0.2 0.3 0.3 NTU NA
pH 3.8 3.9 3.7 4.5 4 --- 5.0 – 6.0
mg/L as
Alkalinity ND ND ND ND ND NA
CaCO3
TOC 0.00212 0.625 0.322 3.76 2.798 mg/L NA
Ammonia-N ND ND ND 23 5.5 mg/L NA
Kjeldahl Nitrogen ND ND ND 33 8.2 mg/L NA
Aluminum 27000 21000 50000 11000 27000 µg/L 30000
Arsenic ND ND ND ND ND µg/L <0.0001
Barium ND ND ND ND ND µg/L NA
Cadmium 6.8 7.5 7.7 26 12 µg/L NA
Chromium ND ND ND ND ND µg/L <0.0005
Copper ND ND 920 ND ND µg/L <1000
Lead ND ND ND ND ND µg/L 0.0005
Manganese 18000 17000 23000 220000 69000 µg/L 20000

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Summary Report - September 10, 2010
 Table 2 (continued)
Bench Scale Testing
Sample Analysis
Analyte POZO 116 POZO 120 POZO 124 ETAPAV BLEND Units Anticipated
Molybdenum ND ND ND ND ND µg/L <1000
Nickel ND ND ND ND ND µg/L <0.00001
Selenium ND ND ND ND ND µg/L <0.0001
Zinc 11000 12000 11000 5900 12000 µg/L NA
Boron 1.2 1.2 1.2 0.69 1.1 mg/L NA
Calcium 420 420 470 590 470 mg/L 372
Iron 0.033 0.041 0.17 ND 0.06 mg/L <5
Magnesium 58 62 69 260 110 mg/L NA
Potassium 7.3 7.6 6.6 24 11 mg/L NA
Sodium 110 110 120 590 230 mg/L NA
Strontium 0.96 1.1 1 3.6 1.7 mg/L NA
Mercury 420 890 6600 16000 5600 µg/L 2400
Silica 110 110 110 38 93 mg/L 36
Nitrate as N 3.7 5.9 17 30 14 mg/L NA
Nitrate as NO3 16 26 76 130 61 mg/L NA
Nitrite Nitrogen ND ND ND 4.8 1.1 mg/L 0.05
Total Nitrate 3.7 5.9 17 35 15 mg/L 40
Bromide 230 320 1300 6000 1900 µg/L NA
Chloride 96 120 340 1300 460 mg/L NA
Sulfate 1600 1500 1600 2100 1700 mg/L 1542
Fluoride ND ND ND ND ND mg/L 3.25
Total Phosphorous as P 0.14 0.11 0.096 ND 0.062 mg/L NA
Total Phosphorous as PO4- 0.42 0.33 0.3 ND 0.19 mg/L NA
Cyanide ND ND ND ND ND mg/L NA
Thiocyanate 0.05 ND ND 234 82.2 mg/L NA
Blend sample in excess of objectives (see Table 1)

It was determined that by blending these four water sources, a representative combined sample
could be prepared for analysis and testing (Table 2). While all of the samples are high in
mercury and other constituents of concern, the ETAPAV is, as would be expected, significantly
more dominant in the blend sample.

Treatability Evaluation

As part of the current study, MWH conducted a series of larger scale bench level evaluation
using water supplied by Kinross from LaCoipa in early February 2010. The bench scale study
evaluated several different processes to assess best apparent product water recovery and waste
management options. Of special interest in this study was maximization of treated water
recovery from primary RO brine. The evaluation of brine treatment methods to allow for
additional RO recovery by pH adjustment and precipitation (softening), ion exchange softening
and electro-coagulation to remove calcium (to prevent scaling of the secondary RO) and other
constituents (metals, cyanides, salts, etc.) was studied. The treatment of primary brine was
modeled and empirically tested to evaluate treatment effectiveness by a second phase RO
process. The alternative evaluation was used to determine what process (softening) would be
best to provide the necessary calcium removal and minimized chemical treatment and other

LaCoipa Mine, Chile – Groundwater Quality Improvement Project Page 6

Summary Report - September 10, 2010
costs. A discussion of this work and the laboratory analytical results are presented in the August
2010 report. Because of these detailed studies, we are able to more reliably define the best
treatment options and provide definitive design criteria and a more accurate opinion of the
capital and operating costs in this document.

Summary of Bench Scale Treatment Study

The bench scale studies considered a number of options to provide a high quality effluent and
minimize the amount of waste brine produced. The initial assumption was made that a
single-pass, two-stage reverse osmosis (RO) system would be required to produce a final
permeate product water quality that could satisfy the effluent discharge concentration for
injection back into the aquifer. Table 3 provides the bench scale effluent quality results for the
primary RO permeate using the blend water quality (Table 2) using a lower pressure (brackish
water) membrane system. As shown, all water quality standards except for mercury are satisfied
in the permeate.

Table 3
Feed and Permeate Water Quality of 4-inch Single Element
Primary RO Membrane (B30XFR)

Filtered
Analyte Units Permeate Rejection, %
Feed
TDS mg/L 3300 28 99.2
Specific Conductance umho/cm 4100 175 95.7
TSS mg/L ND ND ---
Turbidity NTU 0.3 ND ---
pH --- 4.1 3.5 ---
Alkalinity mg/L as CaCO3 ND ND ---
Ammonia-N mg/L 5.1 0.275 94.6
Kjeldahl Nitrogen mg/L 7.9 2.35 70.3
Aluminum µg/L 27000 ND 100
Arsenic µg/L ND ND ---
Barium µg/L 13 ND 100
Cadmium µg/L 12 ND 100
Chromium µg/L ND ND ---
Copper µg/L 260 ND 100
Lead µg/L 13 ND 100
Manganese µg/L 68000 125 99.8
Molybdenum µg/L ND ND ---
Nickel µg/L 140 ND 100
Selenium µg/L 20 ND 100
Zinc µg/L 10000 ND 100
Boron mg/L 1.1 0.35 68.2
Calcium mg/L 480 ND 100
Iron mg/L 0.049 ND 100
Magnesium mg/L 120 0.21 99.8

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Summary Report - September 10, 2010
 Table 3 (continued)
Feed and Permeate Water Quality of 4-inch Single Element
Primary RO Membrane (B30XFR)

Filtered
Analyte Units Permeate Rejection, %
Feed
Potassium mg/L 12 ND 100
Sodium mg/L 230 1.45 99.4
Strontium mg/L 1.7 ND 100
Mercury µg/L 4600 71 98.5
Silica mg/L 96 ND 100
Nitrate as N mg/L 14 0.945 93.3
Nitrate as NO3 mg/L 63 4.15 93.4
Nitrite Nitrogen mg/L ND ND ---
Bromide µg/L 1900 46 97.6
Chloride mg/L 450 9.75 97.8
Sulfate mg/L 1700 1.35 99.9
Fluoride mg/L ND ND ---
Total Phosphorous as P mg/L 0.4 ND 100
Total Phosphorous as PO4- mg/L 1.2 ND 100
Cyanide mg/L 4.1 0.66 83.9
Thiocyanate mg/L 57 5.3 90.7
Rejection of 100% represents analyte in permeate being below detection limits

The brine produced by the primary RO was evaluated to determine how it could be treated to
maximize recovery in a second RO unit. As discussed in the bench scale report, gypsum
(calcium sulfate) and silica scaling will limit the recovery of unpretreated brine to approximately
20 to 25 percent. While silica fouling can be controlled by pH adjustment (pH 4+) and the
addition of antiscalant, calcium will need to be removed in order to prevent gypsum formation.

Summary of Treatment Options

The first treatment option evaluated was a primary and secondary RO process without any
intermediate treatment. Schematic of the treatment option is shown in Figure 2. Based on a 20%
decline in the normalized specific flux, a maximum feed water recovery less than 74% is
achievable with this option. The feed water recovery of the RO process was found to be limited
due to scaling of calcium sulfate and silica. This treatment option would require the least usage
of chemicals.

LaCoipa Mine, Chile – Groundwater Quality Improvement Project Page 8

Summary Report - September 10, 2010
 Treatment Option 1
IX
Antiscalant Polishing

Overflow

Booster
Permeate
LP HP
Pump Pump Pump

Blended 1 μm Primary Secondary

50 μm Hold
groundwater Cartridge Spiral BWRO Spiral SWRO
Bag
Tank Filter 2 : 1 array 2 : 1 array
Filter

Concentrate
Schematic of Treatment Option 1
Figure 2

The second treatment option evaluated was intermediate treatment of the primary RO
concentrate. A schematic of the second treatment option is shown in Figure 3. Intermediate
treatment processes tested included chemical softening using lime and caustic, ion exchange
using natural zeolite, and electrocoagulation. Among the three treatment processes tested for
reducing the limiting scalant, only chemical softening using lime or caustic was found to be
effective in reducing the concentration of calcium to less than 20 mg/L in the primary RO
concentrate. For efficient calcium removal using chemical softening, addition of soda ash (3000
mg/L for caustic softening and 5000 mg/L for lime softening) was necessary. The pH of the
primary RO concentrate needed to be raised to 11.3 and 10 mg/L of polymer addition was
essential. Electrocoagulation was effective in the removal of metals but was not efficient in
calcium removal when compared to the chemical softening process. Similarly, softening with
natural zeolite was ineffective in reducing the concentration of calcium before the RO process.
Based on 20% decline in normalized specific flux, an overall feed water recovery of 87 – 90% is
achievable with this treatment option when chemical softening is used as intermediate treatment.
This treatment option would require substantially higher chemical usage when compared to
treatment

Treatment Option 2
IX
Antiscalant Polishing

Overflow
Permeate
LP HP Booster
Pump Pump Pump

Blended 50 μm 1 μm Primary Secondary

groundwater Hold Cartridge Spiral BWRO Spiral SWRO
Bag Tank Filter 2 : 1 array 2 : 1 array
Filter
Chemicals Antiscalant
Acid
1 μm Concentrate
Cartridge
Filter
Intermediate
Treatment
Schematic of Treatment Option 2
Figure 3

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Summary Report - September 10, 2010
The third treatment option evaluated was pre-softening of the raw blend water. A schematic of
the second treatment option is shown in Figure 4. While treating the raw blend water, only
chemical softening was found to be efficient in the reduction of calcium concentration. For
efficient calcium removal to less than 100 mg/L using chemical softening, addition of soda ash
(1000 mg/L for caustic softening and 3250 mg/L for lime softening) was necessary. The pH of
the raw blend water needed to be raised to 11.3 and 10 mg/L of polymer addition was essential.
When the concentration of calcium in the raw blend water was reduced to less than 100 mg/L, an
overall feed water recovery of ~87% was achievable. Chemical usage will be highest with this
treatment option when compared to the other two options due to higher flow requirements while
pretreating the raw blend water before the primary RO process.

Treatment Option 3 IX
Polishing
Antiscalant
Overflow

Booster
Permeate
HP
Pretreatment Pump Pump

Blended 50 μm Hold LP Sand Primary Secondary

groundwater Bag Tank Pump Filter Spiral BWRO Spiral SWRO
Filter 2 : 1 array 2 : 1 array
Antiscalant

Chemicals Acid
Concentrate

Schematic of Treatment Option 3

Figure 4

A summary of the treated water quality from the different treatment options is listed in Table 4.
For all the treatment options, a TDS rejection of more than 98.5% is achievable by using a
primary brackish water RO and secondary seawater RO. Rejection of chloride will be in excess
of 96% and rejection of divalent ions such as calcium, magnesium, and sulfate will be in excess
of 99.5%. For the metals of concern, rejection of mercury will be in excess of 92% from the
primary RO and 98% from secondary RO. Thus, if further mercury removal is necessary,
polishing using an ion exchange process would be necessary. All other metals will be removed
greater than 98% and/or below standard laboratory detection limits. When nitrate is of concern,
the rejection is expected to be in excess of 94%. Since the rejection effectiveness of all three
treatment options will be similar, the selection of the best treatment option will depend on the
feed water recovery and the capital and operation and maintenance cost for each alternative.

LaCoipa Mine, Chile – Groundwater Quality Improvement Project Page 10

Summary Report - September 10, 2010
 Table 4
Summary of Treated Water from Different Treatment Options
Meeting Discharge Limits

Treated Water meeting Discharge Criteria

Contaminant Discharge Limit*
Option 1 Option 2 Option 3
Chromium 0.1 mg/L Yes Yes Yes
Copper 0.2 mg/L Yes Yes Yes
Lead 5.0 mg/L Yes Yes Yes
Manganese 18 mg/L Yes Yes Yes
Molybdenum 0.01 mg/L Yes Yes Yes
Nickel 0.2 mg/L Yes Yes Yes
Selenium 0.02 mg/L Yes Yes Yes
Zinc 9.0 mg/L Yes Yes Yes
Iron 83 mg/L Yes Yes Yes
Mercury 0.001 mg/L No No No
Nitrate as NO3 0.21 mg/L Yes Yes Yes
Chloride 200 mg/L Yes Yes Yes
*From Table 1
Exceeds standard

Selected Treatment Process

The evaluation of options for managing the impacted shallow groundwater at the LaCoipa Mine
was conducted at the Kinross office in Chile in late July 2010 (7/29/10). The LaCoipa and
Kinross engineering and environmental staff met with MWH to discuss and evaluate the
alternatives based upon the bench scale and feasibility reports. The final effluent treated water
quality standard was established as the least restrictive of either: 1) Chile’s irrigation water
standard (NCH 1333) or, 2) the historic pre-mining baseline water quality as presented on
Table 1.

The more complete (i.e., ultimate) project option discussed in the report that used a two-stage
RO units with brine recovery (primary RO for raw water and secondary RO for softened brine),
was not considered to be necessary while the mine and mill are in operation and the primary RO
brine can be utilized as part of the mill process water.

The groundwater collected from the various wells in the LaCoipa Quebrada will be treated using
a single-pass and two-stage RO process and the brine will be pumped to the mill to be used as
part of the process water supply. A portion of the imported process water, pumped to the
LaCoipa Mine from the Maricunga source of supply, will be added to the LaCoipa groundwater
and be treated and used to make up the volume of groundwater sent to the mill as RO brine
(Figure 5).

LaCoipa Mine, Chile – Groundwater Quality Improvement Project Page 11

Summary Report - September 10, 2010
 19
2010 13:

Acid Addition
SEP-

(as Required)
e: 10-

Filtered
otDat

Pressure Well Water 5 Cartridge Anti Primary

Pl

Filtration Collection Tank Filter Scalent RO Units

From LaCoipa
Well Collection
31.5 l/sec
(500 gpm) 31.5 l/sec
(500 gpm)

Filter
Pressure Low High
Pump Pressure RO Pressure RO
Pump Pump

From Maricunga
Imported Water
14.8 l/sec
(235 gpm)
Brine
(235 gpm)

Primary
Brine
Storage

To
Mill

Existing Treated Water

.
m ntdgn

IX Storage
r
ndW t
paGr t
Tr

31.5 l/sec
g5 LaCoi

Well
Fi

Injection
es\
gur

Transfer
Fi
pa\

Pump
Pr \
ojLaCoi

By-Pass
1s02\

* Recovery based upon bench

Usboi

scale evaluation "best case"

\
\

LaCoipa Mine Chile

Proposed Groundwater Treatment
Figure 5
This revised treatment option would include the following:

• Groundwater collection and storage in an above ground storage tank. Maricunga water
would be included with the combined groundwater from the wells (separate Kinross
action).
• LaCoipa groundwater would be pumped to the treatment plant and combined with
Maricunga water. The combination supply will need to be pressure filtered to remove
any 20± micron size particles. No chemical flocculation should be required since the
groundwater does not have significant particulate fraction. Filtration is primarily a risk
avoidance in order to maintain and protect the RO system in the event field filtration is
not effective.
• The filtered water will be directed to a small pretreated water storage tank (supply head
tank) where pH adjustment (pH 4±) can be provided to maintain ions in solution. The
existing LaCoipa groundwater pH is low enough that pH adjustment will be not be
necessary; however, the Maricunga water is in excess of pH 7. The pH of the combined
water will need to be determined empirically.
• A low pressure pump (3 to 4 bar) will send pretreated water to cartridge filtration
(1 micron) provided with the RO skids. The effluent from the pretreatment tank (filtered
water) will have an antiscalent added to reduce membrane scaling/fouling after cartridge
filtration. The cartridge unit effluent water will serve as the direct influent feed source to
the RO high pressure pump suction.
• The RO unit will be two single-pass, two-stage array that will generate a treated product
water and a brine concentrate. The product water will be directed to a storage tank
(above ground) and the brine will be diverted to a pump station for transfer to the mill for
use in milling and/or other uses.
• The high quality RO product water may still require that some or all of the flow will be
further treated by ion exchange to remove residual mercury. Only a portion of the
product water (depending on quality) may need to be treated and then blended back with
the untreated supply to satisfy the 1 µg/l mercury limit. This will depend on the quality
of the combined blend of influent raw water prior to RO.
• The final treated supply will be injected back into the LaCoipa Quebrada without pH
adjustment to maintain the supply and meet the requirement of the mine’s water right.

The actual flow to the treatment plant will vary based on the amount of groundwater that can be
extracted.

Selected Option – Containerized RO Treatment System

As an alternative for implementation of the selected process, the RO units, filters pumps,
chemical feed systems, and controls can be supplied in containerized housings. These would be
delivered to the site with factory installed equipment, housed in 12.2 meter (40 foot) containers.
The system would be factory-tested and would only require a concrete slab to provide a level

LaCoipa Mine, Chile – Groundwater Quality Improvement Project Page 12

Summary Report - September 10, 2010
base for installation. Water supply and drainage and secondary power (3-phase, 50 Hz) would
be supplied and the units would be operable. A separate clean in-place skid is used for
membrane maintenance for both container units.

Because of the pre-engineered development of these units, only minor changes are possible in
order to keep the cost down (i.e., avoid re-engineering a standard design). The containers are
provided with lighting, service electrical power, heating, and ventilation. The influent flow
capacity of two containerized systems, in a single-pass mode, would be approximately 50 l/sec
(795 gpm) and would satisfy the maximum treatment requirement (31.5 l/sec) for the LaCoipa
system. Figure 6 provides a proposed concept layout of this alternative.

Since the major components of the treatment process are factory-assembled and tested, the
construction related risks are significantly reduced in implementing the project. The field work
is limited to constructing a concrete slab base for the containers and work area, providing raw
water supplied under pressure, installing sufficient electrical capacity, erecting a pole barn open
structure over the containers and work area to provide the facilities some protection from the
environment and other minor infrastructure elements. Once the site components are complete
and the water supply and discharge piping and storage are complete, the treatment equipment can
be installed and commissioned within two weeks after delivery.

Summary

The treatment system option proposed for the LaCoipa Mine project groundwater remediation
project, using water collected from a variety of shallow wells (current and future) in the
Quebrada LaCoipa, is to provide a finished treated water supply for groundwater injection that
will: 1) meet the Chilean water quality objectives, 2) provide a process that could reliably be
used to cost effectively satisfy the current and future water supply and water quality objectives;
and 3) maximize the volume of water to be returned to the aquifer and minimize wastewater
disposal requirements. The process selection was based on MWH’s experience and bench
testing that was conducted using representative water samples collected from the existing wells
at the site.

The mine staff has estimated that approximately 31.5 L/sec (500 gpm) of low TSS groundwater
is available for treatment. The process proposed would utilize a brackish water primary RO
membrane system to achieve a minimum of 68 percent treated water recovery – 21.5 L/sec (340
gpm).

The native groundwater has a mercury concentration in excess of 5,600 µg/l. The final RO
treated water has a mercury level of approximately 100 µg/l (98+% removal). The existing ion
exchange process should be much more efficient to operate and require significantly less
regeneration and have improved mercury recovery.

The final RO brine and other wastewater would be disposed of at the mill for use in processing
until such time as the mill is closed. It would then be necessary to utilize a brine evaporation or
other methods to dispose of the waste flow if it is necessary to continue to operate the water
treatment system.
LaCoipa Mine, Chile – Groundwater Quality Improvement Project Page 13
Summary Report - September 10, 2010
 20
2010 13:
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Containerized Option
Figure 6
 671 E. Riverpark Lane, Suite 200
Boise, Idaho 83706

C O N S U LT I N G D E S I G N E N G I N E E R I N G C O N S T R U C T I O N M A N A G E M E N T