Head Office 600 de Maisonneuve West, Suite 2750 Montreal, QC, Canada, H3A 3J

Transcription

1 Head Office 600 de Maisonneuve West, Suite 2750 Montreal, QC, Canada, H3A 3J Plant 3700 rue du Lac Noir Thetford Mines, QC, Canada, G6H 1S March, 2016

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3 Forward Looking Statements This presentation contains forward-looking statements that address future events and conditions, which are subject to various risks and uncertainties. Actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Corporation s control. These factors include: general market and industry conditions, risks related to continuous operations and to commercialization of a new technology and other risks disclosed in the Corporation's filings with Canadian Securities Regulators. Forward-looking statements are based on the expectations and opinions of the Corporation's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. 3

4 Our Mission To develop environment-friendly extractive technologies for the mining industry. 4

5 The Problem Environmental Cyanide Arsenic Metallurgical Government authorities have the obligation to legislate to protect the environment and the population Jurisdictions and countries have banned or restricted cyanide Arsenic deprived ore bodies are being depleted worldwide Industry is turning to deposits with greater quantities of arsenic Very few facilities are treating high arsenic material without liabilities Lack of viable, stable and permanent arsenic disposal processes Gold recovery in refractory ores Base metal (Cu, Zn), Tellurium or organic carbon in gold ores 5

6 The Problem Current Global situation United States Montana Canada Giant Mine ARSENIC Northern Ireland CYANIDE RESTRICTIONS CYANIDE BAN Mexico Morelos State CYANIDE RESTRICTIONS El Salvador CYANIDE OPPOSITION Romania CYANIDE BAN Chile ARSENIC CONTAMINATION Argentina Chubut Province CYANIDE BAN 6

7 The Solution DST s Patented Processes: Gold Extraction by Chlorination Arsenic Sequestration ENVIRONMENT Cyanide-Free Stable & Permanent Arsenic Disposal METALLURGY Allows Treatment of Refractory Ores Handles Base Metals (Cu, Zn), Tellurium & Organic Carbon in Gold Ores 7

8 Patents LIST OF DST PATENTS 42 Patents (granted, filed or pending) # Title 1 Gold and silver recovery from polymetallic sulfides by treatment with halogens 2 A method and a system for gold extraction with halogens 3 Method and composition for sequestration of arsenic 4 Recovery of base and precious metals by extractive chlorination 5 Potassium magnesium fertilizer 6 Method and system for the production of potassium sulfate from potassium chloride 16 countries 7 Method for selective precipitation of iron, arsenic and antimony 8 Method and system for gold recovery 9 An improved closed loop method for gold and silver extraction by halogens 10 Method and system for sonic-assisted production of fertilisers 11 A method and composition for sequestration 8

9 Dundee Sustainable Technologies Environmental Reconnaissance $700,000 grant $5,000,000 grant $5,000,000 funding GREEN TECHNOLOGIES DEMONSTRATION PROGRAMME SUSTAINABLE DEVELOPMENT TECHNOLOGY CANADA INVESTISSEMENT QUÉBEC Québec Government Canadian Government Québec Government

10 Cyanide-Free Process Patented process for precious metals (Au & Ag) extraction. Environmentally safe extraction process: Cyanide-Free - chlorination instead of cyanidation Not acid generating - solid residues are sulphur & base metal depleted No tailings pond - closed loop, full recycling of reagents and water Lower capital costs due to: Shorter process time, gold extraction in hours instead of days Mild conditions - Leaching at atmospheric pressure and ambient temperature Technology developed for treatment of refractory ores If present, Base Metals (Cu, Zn) are recovered 10

11 DST s Technology FAST GREEN FLEXIBLE PROFITABLE 1-2 hour contact time Cyanide-free process Sulphur recycled as sulphuric acid No effluents, no tailings pond Barren and stable solid residues Tolerate base metals May treat ores containing organic carbon May treat ores containing Tellurium Process costs ($/oz) similar to cyanidation Lower capital cost 11

12 Process Overview SULPHIDE ORE CONTROLLED OXIDATION SULPHURIC ACID ACID DIGESTION BASE METALS CHLORINATION PRECIOUS METALS BARREN RESIDUES 12

13 Chlorination Chemistry Involved Chlorine, along with a catalytic amount of bromine, are used as oxidizing agents because of the particularly fast reaction of bromine with gold. 2 HOCl + 2 HCl 2 NaBr + Cl 2 2 Cl 2 + H2O 2 NaCl + Br 2 The capability of chlorine to oxidize bromides to bromine, explains the low concentration of bromide required in the brine. 2 Au + 3 Br 2 2 AuBr Cl 2 2 AuBr 3 2 AuCl Br 2 13

14 Chlorination Circuit Overview Ore Sulfuric Acid Sodium Hypochlorite Slurry Preparation Reactor Vat Leaching Reactor Electrolysis Rinsing Water Filtration Barren Solid CaCO 3 Polishing Na 2 CO 3 Ca(OH) Na 2 SO 2 Na 4 2 SO 4 Crystallization Pregnant Brine Counter- Current Washing Neutralization Barren Brine Silica Absorption Sodium Sulphite Fe(OH) 3 Melting Au/Ag 14

15 Successfully Demonstrated 1 TPD Pilot built in TPD (15 TPD) plant built in 2015 Over 200 T of ore and concentrates processed Extraction yield - > 90% in all cases - 95% in most cases Sources Type Gold Grade (g/t) Yield (%) 1: Canada (Quebec) Ore 2.58 g/t 97.5% 2: Canada (Quebec) Ore 3.45 g/t 93.2% 3: Canada (Quebec) Ore 13.9 g/t 95.4% 4: Canada (Ontario)* Concentrate 55.3 g/t 94.0% 5 : Eastern Europe* Concentrate 7.5 g/t 91.0% 6: Canada (Quebec)* Concentrate 53.5 g/t 94.1% 7: Western USA* Concentrate 382 g/t 97.7% *Flotation concentrates requiring pre-treatment by oxidation 15

16 Chlorination Market Environmental Issues Environmentally constrained gold deposits: Pascua Lama (Chile-Arg.) 23 M oz Au Suyai (Argentina) 2.5 M oz Au El Dorado (El Salvador) 2.0 M oz Au Cerro Blanco (Guatemala) 2.0 M oz Au Rosia Montana (Romania) 18.5 M oz Au Targeted Projects Metallurgical Issues Gold associated with the presence of: Base Metals (Cu, Zn) Tellurium Carbonaceaous Material Arsenic 16

17 Time + Investment Chlorination Targets Production Development Feasibility Project Status Jurisdiction Pre-feasibility Targeted Projects Grade Advanced Exploration Exploration Project Stages Suitable Properties 100+ projects identified to be suitable for DST s technology: Filtered based on project status, jurisdiction and grade Projects in the pre-feasibility phase in jurisdictions with cyanide bans or concerns 17

18 Economic Comparison to Cyanidation Operation costs are similar to cyanidation on a $/oz basis Lower capital costs due to: Reaction time, gold extraction in hours instead of days (shorter process time) Smaller plant and site No need of costly tailings pond facilities Allows for valuation of deposits that are refractory to cyanidation Reduced site rehabilitation costs due to smaller site footprint and less environmental liabilities 18

19 DST Chlorination Plant 19

20 Business Case: Chlorination TECHNOLOGY IMPLEMENTATION 2014 Laboratory Tests 2015 Piloting Campaign Current Stage 2016 Feasibility Study 2019 COMMERCIAL OPERATION 20

21 Arsenic Sequestration Patented arsenic sequestration by vitrification technology. Formation of a glass incorporating up to 20% of arsenic oxide Cost is up to ten times lower than the conventional scorodite approach. Allows for material with up to 45% arsenic to be processed with good control and sane environmental practices. Provides a stable, insoluble and permanent arsenic product 21

22 As (IIII) + Mixture Gases Arsenic Sequestration Pilot Pilot built in 2015 Mixture Rec. Glass Hematite As (III) Feed As (III) 500 Tonnes/year equivalent Binder Solution Na2SiO3 Scrubber Powder Mixer Out Addresses arsenic contamination issues in gold and smelting operations. Dryer Bag House Glass Product Briquetter Furnace 22

23 Arsenic Process Gold Mines Unlocking values from gold deposits Cuba Canada (Quebec, Ontario) Chile Arsenic Sequestration Smelters Arsenic collected as flue dusts Smelter (Namibia) Smelter (Chile) Peruvian operation Remediation Arsenic in abandoned mine sites Giant Mine (Canada) Taltal tailings (Chile) El Triunfo (Mexico) 23

24 Business Case: Arsenic TECHNOLOGY IMPLEMENTATION 2014 Laboratory Tests 2015 Piloting Campaign Current Stage 2016 Feasibility Phase 2017 COMMERCIAL OPERATION Partner #1 & #2 - Major Copper Producers & Smelters 24

25 Development Strategy Continue operation at the demonstration plant: Process high grade concentrates Establish feasibility criteria for onsite implementation Target deposits for technology implementation: In jurisdictions that have banned or restricted the use of cyanide That are blocked from going into production faced with community opposition and environmental challenges That face metallurgical constraints That require arsenic sequestration 25

26 Dundee Sustainable Technologies BUSINESS MODEL Joint Venture with mine owners facing Environmental and/or Metallurgical issues Acquire properties prevented from operating due to Cyanide, Arsenic or Metallurgical constraints 26

27 Timeline Gold Plant (ENAMI) Chlorination Feasibility Engineering Construction $100 M Arsenic Piloting Eng. & Construction Arsenic Plants Eng. & Construction $15 M (Partner #1) $15 M (Partner #2) 27

28 Corporation information A public entity listed on the Canadian Securities Exchange in 2014 Symbol: DST Issued and Outstanding Subordinate voting shares: Multiple voting shares: Major Shareholders Dundee Corporation Quebec Government 297 M 50 M (66% equity interest) (85% voting interest) (4% equity interest) 28

29 Directors and Officers Directors Jean-Marc Lalancette, Chairman Emeritus Mark E. Goodman, Chairman Ned Goodman John W. Mercer Brian Howlett Brahm M. Gelfand Hubert Marleau David A. Whyte Management John W. Mercer, President & CEO David Lemieux, Executive Vice- President Vatche Tchakmakian, Chief Financial Officer Luce Saint-Pierre, Corporate Secretary Bertrand Dubreuil, Technical Director Caroline Chouinard, Director of Engineering Jean-Philippe Mai, Senior Geologist 29

30 Aut inveniam viam aut faciam Head Office 600 de Maisonneuve West, Suite 2750 Montreal, QC, Canada, H3A 3J Plant 3700 rue du Lac Noir Thetford Mines, QC, Canada, G6H 1S