Statement Of Qualifications - Kappes, Cassiday & Associates

Statement of QualificationsFACILITIESKCA occupies a 40,000 square footbuilding that rests on three acres ofland just north of Reno, Nevada.The building, acquired in 1994, waspurchased to address the expandingneeds of KCA. The laboratorydivision of KCA maintains itscomplete sample preparation, wetanalyticaland bench-scaleprocessing divisions within thisbuilding.The lab is capable of receivingsamples of up to 40 tonnes, onpallets, in barrels or in bulk. Samplepreparation of bulk samples can becompleted utilizing a Bobcat FrontEnd Loader, a large gasoline enginedriven Jaw Crusher as well assmaller laboratory-scale crushers,screen decks, mills and pulverizers.The laboratory maintains thefollowing major equipment items:- 1-10X12 Jaw Crusher- 2-4X6 Jaw Crushers- 2-10 inch Cone Crushers- 2-Standard Bico Disc Grinders- 2-Standard TM Ring and PuckPulverizers- 2-Gilson Screen Decks- 4-tyler Roto-taps- 1-Standard Bond Ball Mill- 1-Denver Lab Flotation Machine- 2-WEMCO Flotation Machines- 2-High Temperature Tube Furnaces- 7-Jar Mill Rolling Tables- 2-Perkin Elmer Flame AAS Units- 1-Perkin Elmer ICP-AES- 1-Perkin Elmer Mercury Analyzer(FIMS)- 1-3 inch Knelson Bowl Concentrator- 1-No. 13 Wilfey Table (Sand Table)- 1- Deister Table (Finishing Table)- 4-Gas and or electric drying ovens- 1-Flotation Pilot Plant- 1-Williams and Wilson Fire AssayFurnace- 3-Cress Fire Assay Furnaces7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567

Statement of QualificationsW. ROBERT ROSE, Manager-South American Projects, is a mining engineerwith start up and operations experience in heap leach projects for leachingboth ore and tailings, and in gold placer mines. Bob was the senior fieldengineer for the design and construction supervision of the Potosi projectof Comsur in Bolivia. Mr. Rose has been lead engineer on a variety ofrecent bankable feasibility studies in Mexico, Africa and the CIScountries.CARL E. DEFILIPPI, Senior Engineer/Project Manager, holds a Masters degreein Metallurgical Engineering and is certified as an EnvironmentalManager for the State of Nevada. Prior to joining the staff at KCA, Carlwas the General Mill Foreman at Newmont Gold Company’s 9000 ton perday CIP mill and was involved in all phases of the start up of that mill. Hehad extensive experience with Newmont Gold as a senior metallurgist attheir 2500 ton per day agitated leach plant and 3000 ton per day heapleach facility. He has also been involved in the management andconstruction of field heap leach tests in Nevada and South Dakota. Carlmanages technical operations for Decommissioning Services LLC, acompany specializing in mine closures.W. MICHAEL REED, Senior Metallurgical Engineer/Project Manager, has over30 years experience in equipment and plant design, process engineeringand computer applications, including most recently, 16 years with AkerKvaerner Metals. He has served as lead process engineer, project manageror study manager for a wide variety of gold and silver, copper, basemetals, and soda ash processing facilities. Mr. Reed has extensiveexperience with crushing and grinding systems, and will serve as KCA’scomminution specialist.MARK GORMAN, Senior Engineer/Project Manager, holds MS degrees in Civiland Metallurgical Engineering. He joined KCA after 14 years ofexperience in operations with Barrick, Newmont, Fairbanks Gold, Pinson& Battle Mountain Gold. His areas of expertise include process design,operations support, and wastewater treatment.RICHARD TAYLOR, Support Engineer, has a BASc degree in Metals andMaterial Engineering. He is a registered professional engineer in Nevada.Richard has nine years of experience, with five years working as ametallurgist for both Newmont Mining and Glamis Gold in NorthernNevada with an additional year of experience in primary aluminumproduction. At KCA, Richard has provided engineering support inscoping and feasibility engineering studies for a variety of mine processoperations.7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567

Statement of QualificationsJOHN BRIDEGUM, Support Engineer, has a BS degree in GeologicalEngineering. He is construction manager for KCA’s carbon adsorptionand Merrill-Crowe recovery plants and has been responsible for theconstruction, installation, and commissioning of several of these circuits.John also supplies technical and management support as required to KCASteel Services.TRAVIS MANNING, Support Engineer, holds a Bachelor’s degree inmetallurgical engineering. Travis is an EIT and is working towardsbecoming a professional engineer. He has provided engineering supportin scoping and feasibility studies as well as supervised construction andoperation of field pilot leach columns. He was recently involved in thedesign, construction, and startup of the SO2/air cyanide destruct andtailings filtration systems at the Ocampo Project of Gammon LakeResources.EVERETT LESS, Junior Engineer, graduated from the University of Utah in2004 with a bachelor’s degree in Metallurgical Engineering. At theUniversity of Utah, he gained two years of experience with lab scaleaqueous metallurgy. Everett is currently registered as an EIT in Nevadaand is working towards becoming a professional engineer. During his timewith KCA, Everett has gained experience with design, procurementconstruction, and commissioning of various milling and heap leachoperations at the Ocampo Project.RYAN ADAMS, Junior Engineer, holds a B.S. degree in Material Science andEngineering. Before joining KCA, Ryan aided in the construction andcommissioning of a heap leach operation in the Comstock area. Hisprimary experience are in the laboratory services but his experience alsopermits him to provide field support for cyanidation processes. Ryan iscurrently the president of the KCA’s Safety Committee and is certified asan MSHA Instructor and Hazardous Materials Technician.7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567

Statement of QualificationsREPRESENTATIVE PROJECT DESCRIPTIONSLOS FILOS BERMEJALDesarrollos Mineros SanLuis S.A. de C.V.Dates: 2004 – presentLocation: Mexcala,MexicoLos Filos Bermejal will be a 21.5 million tonne/yearheap leach and 3300 m 3 /hr ADR plant when it beginsoperation in 2006. KCA provided metallurgical flowsheetdevelopment followed by a bankable feasibilitystudy, then was contracted to perform detailedengineering and procurement services.OCAMPO – GammonLake ResourcesDates: 2004 – presentLocation: Chihuahua,MexicoAfter presenting a highly favorable feasibility study in2004, KCA was awarded an EPCM contract for the milland heap-leach facilities at this $104 million gold-silverproduction complex. When completed in early 2006,Ocampo will include a 4_ million tonne per year heapleach operation and a Merrill-Crowe gold process plantto handle 1500 tonnes per day of high-grade ore from theunderground mine. On completion, the Ocampo miningdistrict will be the largest gold-silver producer inMexico.SÃO FRANCISCO --Yamana Gold Inc.Dates: 2004Location: Mato Grosso,BrazilSão Francisco is one of two open pit, heap leachproperties held by Yamana in west central Brazil. In2004 KCA completed a bankable feasibility study for theproperty, and the facilities are now under construction.YATELA – AnglogoldLtd.Dates: 1998 – presentLocation: Mali, WestAfricaKCA was the owner’s representative for this 3000 tonneper day heap leach project. KCA provided technicalsupport and guidance in all aspects of this projectincluding metallurgy, feasibility, detailed design,construction and commissioning. KCA is currentlyproviding ongoing operations assistance.LERO/FAYALALA –KenorDates: 1995 – presentLocation: Guinea, WestAfricaLero is a 2500 tonne per day heap leach project, whichincludes crushing and agglomeration of higher gradesaprolitic ore. Fayalala is adjacent to Lero and is a20,000 tonne per day ROM dump leach of lower grade,lateritic material. KCA has had engineers onsite sincethe summer of 2000 and has been providing processmanagement and technical support. Previously, KCAconducted a complete laboratory testing programincluding, bottle roll, agglomeration and column tests.KCA completed the feasibility study on Fayalala, whichwas ultimately used to internally finance the dump leachproject.7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567

Statement of QualificationsMAGISTRAL –Queenstake ResourcesInc.Dates: 1996 – 2004Location: Sinaloa, MexicoMagistral is a one million tonne per year heap leachfacility. KCA’s involvement included metallurgicaltesting, completion of a bankable feasibility study,detailed design and construction management. KCA hadan engineer on site during the six-month constructionperiod to provide field engineering and commissioningassistance for all aspects of the process facilities.SIGURI – AshantiGoldfields Ltd.Dates: 1995 – 2001Location: Guinea, WestAfricaSiguri is a nine million tonne per year agglomerated heapleach facility. KCA conducted the metallurgical testingprogram and reviewed the detailed design of theagglomerating and stacking systems. KCA has providedoperations assistance periodically for several years.ITOS – Barex EmpresaMinera, S.A.(BAREMSA) -COMIBOLDates: 1992 - 2001Location: Bolivia, SouthAmericaItos is a 600 tonne/day agitated leach plant designed torecover precious metals and base metals from previouslyprocessed flotation tailings using a complex acid leachprocess. Phase I of the project recovered silver andcopper. Later phases of development included therecovery of lead, antimony and tin. KCA’s role beganwith laboratory testing, process development, andpreparation of a feasibility study, and progressed toinclude all engineering, procurement, constructionmanagement, start up services, and operationsmanagement.SAN MARTINRECOVERY PLANTGlamis Gold Inc.Dates: 2000Location: HondurasKCA constructed and installed a 900 cu m per hourcarbon ADR plant including two parallel adsorptioncolumn sets and a complete carbon desorption andprocessing plant. Under a turnkey project, KCAconstructed complex items of equipment in its Reno shopand subcontracted large tanks to Honduran fabricators.To keep costs at a minimum, KCA erected the facilitywith local crews and skilled craftsmen from Reno andBolivia.7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567

Statement of QualificationsTARKWA - Gold FieldsGhanaDates: 1994 to 1999Location: Ghana, WestAfricaThe Tarkwa Heap Leach Project is a US$120 million,13 million ounce open pit heap leach gold mine. Phase Iof the project processes ore by heap leaching at a rate of10,000 tpd; this was doubled to 20,000 tpd in a secondphase. KCA’s involvement began with advising GoldFields Laboratories regarding metallurgical testingprocedures, followed by preparation of a preliminarydesign and cost study for the heap leach operation. KCAthen prepared the heap leach portion of a bankablefeasibility study and executed all process design fromcrushing through doré production. KCA maintained fiveengineers on site during the construction process, andone engineer on site for one year to train Gold Fieldspersonnel in operation of the heap leach.MIZEK - Steppe GoldResources LimitedDates: 1996 to presentLocation: KazakstanKCA conducted a complete laboratory testing programincluding bottle roll, agglomeration and column leachtests for this heap leach project. KCA then completed adefinitive feasibility study for a 4000 tonne per day heapleach facility. All elements of mining, processing, andinfrastructure were included in the study. KCA provideddetailed engineering and construction managementservices for site earthworks, including the leach pad andponds.CHOQUELIMPIE -Sociedad ContracturalMinera Vilacollo(Operated by KCAsubsidiaryDecommissioningCorporation)Dates: 1992 - 1996Location: Chile, SouthAmericaThis 7 million tonne gold heap leach is located at analtitude of 4600 meters (15,000 feet) in northern Chile.KCA provided engineering, procurement andconstruction management services for the washing of andsubsequent gold recovery from the heap. KCA wasresponsible for the complete metallurgical processdesign, construction of a carbon ADR plant, andmanagement of commissioning operations. In October1994, KCA entered into a contract to provide completeproject management services. During a 3-year heaprinsing operation the project recovered 30,000 ounces ofgold, essentially identical to the projection which KCAmade following the initial heap evaluation.SAN FRANCISCO -Geomaque ExplorationsDate: 1993-1994Location: NorthernMexicoKCA produced a bankable feasibility study that wassuccessfully used to obtain financing.7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567

Statement of Qualificationsfeasibility of constructingproduction leach padsduring prolonged periods of wet weather in Panama.SANSU - AshantiGoldfields Corp LtdDates: 1989 - 1990Location: Ghana, WestAfricaThe Sansu mine is a 100,000 tonne per month gold heapleach operation located in a tropical, high rainfallenvironment. KCA was responsible for all aspects of thetesting, design, water balance and leaching concepts.Once the project was approved, KCA provided designengineering, fabrication, procurement supervision,installation services, and a complete modular 125 cubicmeter per hour carbon recovery plant. Following startup, KCA provided one year of supervision/training.POTOSI - Comsur, S.A.Dates: 1985 - 1990Location: Bolivia, SouthAmericaPotosi is a 1000-TPD dry grind/heap leach project. Theprocess included a three-stage crushing circuit, a drygrind ball mill, an agglomeration drum, a conveyor andstacking system, and a 150 cubic meter per hour Merrill-Crowe recovery plant. This heap leach project is uniquein that the mined ore is fine crushed to 8 mesh and thenreduced in size by dry grinding to 20 mesh prior toagglomeration for heap leaching. KCA provided theoriginal design and construction supervision and theengineering supervision for subsequent expansion from500 to 1000 TPD. KCA also completed conceptualdesign for further expansion.MILL 2/5 - NewmontGold CompanyDates: 1988 - 1990Location: Carlin, Nevada,USAKCA assisted Newmont Gold Co. in the start up of Mill#5, an 18,000-TPD CIL mill with an SABC grindingcircuit. KCA also assisted in the implementation ofautomatic control of the grinding circuits and theprioritization of the alarm systems (approximately 8,000alarm points). Operator training and optimization of theoperation to increase throughput and reduce operatingcosts were conducted.BARNICOAT - GwaliaMines, N.L.Dates: 1989Location: WesternAustraliaKCA designed and installed over 700 feet of transportconveyors and a 100-foot radial stacker with anextendible tip. The conveyor system is capable oftransporting over 200 TPH and stacking the ore to aheight of over 30 feet.7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567

Statement of QualificationsGILBERT - Kemco, Inc.AURORA -Minerex/Aurora Partners,Inc.Dates: 1987 - 1988Location: Nye County,NevadaK C A provided testing, project design, and completeportable process plants at both locations (1200 and 1500tons per day plant capacity). At Aurora, KCA alsoprovided extensive field project constructionmanagement and built and installed a portablelaboratory.MARVEL LOCH -Marvel Loch Gold MineDates: 1986 - 1987Location: Marvel Loch,Western AustraliaKCA provided testing and design services and developedprocessing techniques. A project engineer was thenprovided to supervise all aspects of construction andstartup for the 2500 TPD operation which processes asoft white pure clay ore. The heaps were constructed toa height of over 30 feet and performed according todesign.LITTLE BALDMOUNTAIN MINE -Northern DynastyExplorations LtdDates: 1985 - 1991Location: White PineCounty, NevadaKCA conducted laboratory investigations on ore samplesfrom the deposit and provided conceptual design of heapleach pads, ponds, and operating philosophy. KCA thenprovided the design, construction, and start-up of acomplete gold adsorption-desorption-recovery plantrated at a production capacity of 300 tons per day.Direct capital and operating costs were repaid within thefirst season.HOG RANCH - WesternGoldfields, Inc.Dates: 1981 - 1986Location: Nevada, USA.KCA performed the project engineering and constructionmanagement for this 4000 ton per day open pit heapleach gold operation. KCA had turnkey responsibilityfor offices, power and utilities, and infrastructure as wellas processing. The project was brought into productionafter only 16 weeks of construction, ahead of scheduleand under budget at a capital cost of US$ 7.7 million.The project was sold, after 18 months of successfuloperation, for a value exceeding 10 times the originalinvestment.7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567

Statement of Qualificationsagitated leach/heap leachoperation owned by Whim Creek ConsolidatedREPRESENTATIVE COPPER PROJECTSMt. POLLEYImperial MetalsDates: Feb 2004 to presentLocation: BC, CanadaKCA is currently completing a feasibility study on theproposed copper heap leach project, utilizing the additionof elemental sulfur to produce sulfuric acid required forthe leaching of copper concentrate.CERRO VERDEPhelps DodgeDates: May 2000Location: Arequipa, PeruKCA reviewed field heap performance, laboratory andproduction data to help management determine howpossible solutions to heap flow problems affected copperrecovery and copper in inventory within the heaps. KCAalso recommended possible changes to current operatingpractices to enhance heap permeability.MORENCIPhelps DodgeDates: 1999Location:Safford, ArizonaKCA assisted PD with internal laboratory testworkwhich was a key part of their decision to shut down theMorenci concentrators and move that production to heapleach processing. KCA supplied compacted permeabilitytesting apparatus and provided assistance with setup,training, testing of samples, and interpretation of results.NIFTY COPPEROPERATIONS - WMCResourcesDates: 1995 to presentLocation: AustraliaKCAA has been involved with testing and processmodifications for the Nifty Copper Operations. Thisincluded evaluation of agglomeration techniques andreagents, culminating in the design, operation andevaluation of a 35,000 tonne field trial incorporating fullore agglomeration. This trial has formed the basis forcurrent processing techniques at full production rates.KCAA completed the EPCM contract for Leach Pad 4 atNifty that included the complete engineering package forall aspects of the project.7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567

Statement of QualificationsMAZRA COPPERHEAP LEACHPROJECT - MBPetroleum Services LLCDate: 1996Location: OmanKCA completed a conceptual design and cost study for aproposed 1,000 tpd copper heap leach. The studyincluded all aspects of the project except mining.SULLIVAN - ArimetcoDate: 1995 - 96Location: Nevada, USAKCA conducted a large diameter column test programincluding solvent extraction on the pregnant leachsolutions.KURIDALA - MetanaMineralsDate: 1989 - 1990Location: Queensland,AustraliaKCA prepared a study, which included design of leachpads, process ponds, leach system piping and stackingrequirements for a 3,000 tonne per day leach operation.GIRILAMBONE - NordResourcesDates: 1991 - 1992Location: Queensland,AustraliaFor the 5000 tonne/day Girilambone mixed oxide/sulfideheap leach project KCA participated in the owner’sdesign/oversight team along with several well-knowncopper leach specialists. KCA’s role was to developdesign and layout plans for the heaps, solutionmanagement concepts, and heap stacking/air injectionconcepts to insure optimum delivery of air andchemicals.QUEBRADA BLANCA -Cominco ResourcesDate: 1991Location: ChileKCA provided limited design review and evaluation ofair flow models. KCA also provided a field engineer tooversee field agglomeration/stacking/heat loss tests.These tests were designed to evaluate heap permeabilityand temperature characteristics for this high altitudecopper bio-leach heap.7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567

Statement of QualificationsMENGAPUR - MalaysiaMining CorporationDate: 1988Location: MalaysiaKCA prepared a complete design and cost study for a10,000 tonne per day copper-silver vat leach operation atMengapur, Malaysia, which employed acidagglomeration. The study included an extensivelaboratory phase, which was geared to optimizeagglomerating conditions and evaluate recovery options.Large scale column tests with an SX-EW pilot plantdesigned and built by KCA were conducted on site.SAN MANUEL - MagmaCopperDate: 1985Location: ArizonaBechtel Civil & Minerals, Inc. was the prime contractor.KCA’s responsibilities included design of the leach pad,ore stacking schedules for the first 5 years of operation,leaching schedules, design of solution collection systemand development of solution management concepts. Atthe time this was the largest copper heap leach in theUSA (15,000 ton/day) and the first geomembrane linedleach project in Arizona.7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567

Statement of QualificationsGOLD RECOVERY PLANT FABRICATIONStarting in 1981, KCA has fabricated portable or modular carbon adsorptionplants and Merrill-Crowe plants. KCA has fabricated over 30 of these gold/silverrecovery plants, which have developed an outstanding reputation for quality,simplicity, ease of start up and fail-safe operation. A list of projects for whichKCA has fabricated recovery plants follows:Operation Location Type Size (m 3 /hr)San Martin Honduras Carbon Adsorption 900El Cubo Mexico Merrill-Crowe 120Choquelimpie Chile Carbon Adsorption 225San Antonio Mexico Merrill-Crowe 70San Martin Mexico Merrill-Crowe 70Santiago dePeru Carbon Adsorption 20ChucoMagistral Mexico Carbon Adsorption 70Essakan Burkina Faso Carbon Adsorption 30Newmont Tailings United States Carbon Adsorption 22Ashanti Ghana Carbon Adsorption 125Gilbert United States Carbon Adsorption 50Aurora United States Carbon Adsorption 50Hassai Sudan Carbon Adsorption 20Gordex New Brunswick Carbon Adsorption 30Little Bald Mtn. United States Carbon Adsorption 20Getchell United States Carbon Adsorption 45Hog Ranch United States Carbon Adsorption 150Hayden Hill United States Carbon Adsorption 45Potosi Bolivia Merrill-Crowe 150Al Hajal Saudi Arabia Carbon Adsorption 15Afema Ivory Coast Carbon Adsorption 50Afema II Ivory Coast Carbon Adsorption 100Afema II Ivory Coast Carbon Regeneration 25 kg/hrEl Plomo United States Carbon Adsorption 15Marvel Loch Australia Carbon Adsorption 35Cripple Creek United States Carbon Adsorption 55Ity Ivory Coast Carbon Adsorption 30Sterling United States Carbon Adsorption 35Bolnisi Georgia, CIS Carbon Regeneration 25 kg/hrBolnisi Georgia, CIS Carbon Adsorption 50Seligdar Siberia Carbon Adsorption 50Scott-European Russia Carbon Adsorption 20Aurex Peru Merrill-Crowe 30Puquio Norte Bolivia Carbon Stripping 2 Tons/DayPuquio Norte Bolivia Carbon Regeneration 75 kg/hrItos Bolivia Agitated Leach 600 Tons/Day7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567

Statement of QualificationsDecommissioning Corporation Subsidiary of Kappes, Cassiday AssociatesDecommissioning Corporation wasformed in 1989 to provide evaluationand process services for the closure ofmineral processing operations, and forthe mitigation of cyanides and heavymetals during hazardous waste cleanupactivities.Reclamation ServicesMoundhouse, NevadaGoldfields, NevadaComprehensive early review ofoperations with preparation ofschedules and budget for shutdownManagement and conduct of latestage operations including recoveryof residual metal valuesSecurity and upkeep for suspendedoperationsBond or surety releasePresentation for resaleChemical RecoveryChemical neutralizationHazardous material removalEnvironmental monitoringSite cleanupFacilities dismantlingRevegetationComplete reporting and agencyliaisonGoldfields, Nevada7950 Security Circle, Reno, Nevada USA 89506 – (775) 972-7575 Fax: (775) 972-4567