Phased CIP → RIP → Flotation Strategy

Development pathway for a 3.0 g/t historical tailings resource in a $4,300+/oz gold price environment.

Contents

• 1.One-Page Executive Summary
• 2.Slide-Deck Narrative (CIP → RIP → Flotation)
• 3.Technical Appendix

One-Page Executive Summary

Overview

With gold above $4,300/oz, the economics of early production shift dramatically. The optimal strategy is no longer to build the perfect flowsheet upfront, but to build the fastest, lowest-CAPEX path to cash flow, then use internally generated capital to fund metallurgical upgrades.

DMMP’s recommended pathway is a deliberate three-phase development arc:

Phase 1: Direct CIP — Fastest Path to Cash

Direct CIP is not the optimal long-term flowsheet for this material, but it is:

• The cheapest to build
• The fastest to commission
• The simplest to operate
• The most effective at generating early cash in a high-gold-price environment

Even at modest recoveries (40–55%), CIP becomes a cash-printing machine at $4,300+/oz. This early cash flow reduces financing risk and builds internal capital reserves.

Phase 2: CIP + RIP — Metallurgical Upgrade

Resin-in-Pulp (RIP) replaces activated carbon with ion-exchange resin, solving the key weaknesses of CIP:

• Preg-robbing
• Carbon fouling
• Slow adsorption kinetics

RIP typically lifts recovery to 65–75% and can be retrofitted into the existing CIP footprint. This phase increases revenue and extends the life of the direct-leach circuit.

Phase 3: Flotation + Concentrate Leach — Structural Optimization

Flotation changes the mass balance of the flowsheet:

• Only 5–15% of the mass enters the high-cost leach circuit
• Preg-robbing carbon reports largely to tails
• Leaching agent footprint shrinks dramatically
• Recovery increases to 80–85%+

This is the long-term, high-NPV flowsheet and the ultimate destination of the project.

Strategic Rationale

This phased approach:

• Minimizes initial CAPEX
• Maximizes early cash flow
• Reduces dilution and debt
• Allows staged metallurgical learning
• Provides flexibility in volatile markets
• Aligns with investor preference for fast payback and optionality

Slide-Deck Narrative (CIP → RIP → Flotation)

2.1 Executive Framing

Gold at $4,300+/oz changes the economics of early production. The priority shifts from designing the perfect flowsheet to identifying the fastest path to cash flow. A phased strategy reduces technical and financing risk while preserving upside.

2.2 The Three Flowsheet Options

• Direct CIP — the simplest, fastest, lowest-CAPEX route to first gold.
• CIP + Resin-in-Pulp (RIP) — metallurgical upgrade to address preg-robbing and fouling.
• Flotation + Concentrate Leach — the structural optimization and long-term endgame.

The decision is not about choosing a single technology in isolation, but sequencing them to create a capital-efficient development arc.

2.3 Phase 1 – Why Start with Direct CIP?

• Lowest initial CAPEX – no flotation cells, UFG, or complex resin systems required.
• Fastest to first gold – simple, proven design with minimal engineering lead time.
• Ideal vehicle to capture high margins at $4,300+/oz quickly.
• Provides the operating platform for later metallurgical upgrades.

2.4 CIP Performance on This Material

• Preg-robbing caps recovery at roughly 40–55%.
• High leaching agent and lime consumption due to full-mass leaching.
• Large detox circuit and full-mass leaching agent TSF footprint.
• Carbon fouling and attrition on clay/organic-rich tailings.

Despite these weaknesses, margins remain strong at current gold prices. CIP is acceptable as a temporary, cash-generating phase precisely because gold prices are unusually high.

2.5 CIP as a Cash Engine

• Even modest recoveries at 3.0 g/t generate exceptional margins at $4,300+/oz.
• Early cash flow reduces reliance on dilutive equity and high-cost debt.
• Internal capital can be earmarked for RIP and later flotation build-out.
• Real operating data de-risks subsequent design decisions.

2.6 Phase 2 – CIP + RIP Upgrade

• Resin replaces activated carbon in the adsorption circuit.
• Resins are more robust on preg-robbing and clay-rich tailings.
• Recovery lifts into the 65–75% range, depending on mineralogy.
• RIP retrofit leverages existing CIP tanks and infrastructure.
• Elution becomes simpler and less energy-intensive.
• Phase 2 is funded largely from Phase 1 cash flow.

2.7 RIP as the Bridge, Not the Destination

• RIP is an incremental improvement, not a structural change.
• 100% of the mass is still leached and detoxified.
• TSF remains a full-mass leaching agent facility.
• But: improved recovery and robustness enhance cash flow and de-risk the project.

2.8 Phase 3 – Flotation + Concentrate Leach

• Concentrates gold-bearing sulfides into 5–15% of the mass.
• Preg-robbing carbon reports mostly to tails.
• Concentrate is subjected to UFG + intensive leach.
• Recovery targets: 80–85%+.
• High-cost reagents and power applied only to a small mass fraction.
• Bulk tailings stream is largely cyanide-free.

2.9 Why Flotation Is the Endgame

• Highest recovery among the three routes.
• Lowest reagent consumption per tonne of tailings processed.
• Smallest leaching agent footprint and TSF liability.
• Best ESG and permitting position for a long-life operation.

2.10 Phased Development and Capital Strategy

• Phase 1 – CIP: Fastest path to cash; low CAPEX; high margins at $4,300+/oz.
• Phase 2 – CIP + RIP: Metallurgical upgrade; better recovery; funded by CIP cash flow.
• Phase 3 – Flotation: Structural optimization; highest NPV; best ESG footprint.
• Each phase lays the groundwork for the next and grows largely out of its own cash generation.

Technical Appendix

This appendix provides a structured comparison of reagent consumption, tankage requirements, environmental footprint, metallurgical performance, and capital profile across the three flowsheet pathways under consideration: Direct CIP, CIP + RIP, and Flotation + Concentrate Leach.

3.1 Reagent Consumption (Directional Comparison)

3.2 Tankage Requirements

3.3 TSF Footprint & Environmental Load

3.4 Metallurgical Performance

3.5 Capital Profile