Climate Change Data

Andean American Gold Corporation

Climate Impact & Sustainability Data (2012-04-06)

Reporting Period: 2012-04-06

Environmental Metrics

Water Consumption:40 l/s for 12 h/d

ESG Focus Areas

  • Environmental
  • Social
  • Community Relations

Environmental Achievements

  • Previously approved Environmental Impact Assessment (EIA, 2009) from the Ministry of Energy and Mines for mine operation, plant, and power line. Mine, plant, and infrastructure EIA (except power line) approved December 2009. Power line EIA approved December 2011. Invicta Project closure plan (for 5,100 t/d mine plan) approved January 2012.
  • Certification of the Absence of Archaeological Ruins (CIRA) covering slightly more than 400 hectares.

Social Achievements

  • Surface rights agreement with Santo Domingo de Apache community covering mine development, mineral processing, and infrastructure. Commitment to sustainable development program over mine life.
  • Negotiations for surface rights agreements ongoing with Paran and Lacsanga communities.

Governance Achievements

  • Adoption of the Equator Principles to maintain good relationships with communities.

Climate Goals & Targets

Long-term Goals:
  • Advance Invicta Project to a feasibility study (Phase IIA) or infill and exploration drilling program (Phase IIB), or both.
Medium-term Goals:
  • Complete Phase I Work Program (structural-geological mapping, regional structural geological interpretation, metallurgical leaching testwork, mining trade-off studies, preliminary project economic study).
Short-term Goals:
  • Finalize community agreements.

Environmental Challenges

  • Need to finalize surface rights agreements with Paran and Lacsanga communities.
  • Higher than forecast initial capital cost to build an underground mine.
  • Need for additional CIRAs before construction.
Mitigation Strategies
  • Ongoing negotiations with Paran and Lacsanga communities.
  • Delaying completion of feasibility study; investigating alternative mine and plant production rates and processing plant locations to optimize project economics.
  • Working with a third party engineering firm to develop a closure plan and execute closure of environmental liabilities.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NI 43-101, CIM Standards on Mineral Resources and Reserves