OPERATIONS PLANNING

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IMP MINE PLAN FOR MARCH START OF MINING

IMP has created a mine plan for Site B, which is a 1 km long vein zone featuring two veins with a projected 1.9 million metric tons of ore.  Current assays from a 2,500 metric ton sample shipment acquired from the mine (see Operations Activities video), indicate metal content is likely in the range of 25% of combined Lead and Zinc.  This single pit will thus be sufficient Ore to meet the 1.7 million metric ton requirement for the first three years of Concentrate sales operations plus the first year of Smelter operations.  See Drilling for information about the three other identified vein zones and the surface potential of the Anomaly, which combined resource estimate is around 12 million metric tons of Ore.

PLANNING FOCUS

IMP has developed comprehensive planning for three key areas of activity:

I.  Developing the infrastructure for mining and concentrate production at the mine 

II.  Exploring (borehole drilling and analysis) the IMP concession resource with JORC compliant methodology

III.  Building a co-located Lead Smelting & Purification Plant and Zinc Smelting & Purification Plant

I.  ORE MINING AND CONCENTRATE PLANT CONSTRUCTION PLAN

TARGET CAPACITY:  Mine 60,000 metric tons per month of 25% metal content Ore, producing 24,000 metric tons / mo of export-grade 56% to 60% metal content Lead Concentrate and 51% to 54% metal content Zinc Concentrate with estimated up to 2% Copper and up to 7 Toz of Silver, where Copper is removed as 15% Concentrate during concentration, and Silver is retained with Lead Concentrate and monetized in Concentrate sales.

  1. Q3 2019:  Receive Export License and begin mining Ore. All other licenses and permits have been received.
     

  2. Q3 2019 - Q4 2020:  Ore mining of 10,000 metric tons / mo of 25%+ metal content Ore, shipped to a third party Treatment Charge Concentrating Plant near Jakarta, Indonesia.  
      

  3. Q1 2020:  Complete construction of Test Concentrate Plant, and expand mining to supply 20,000 metric tons / mo of 25% metal content Ore input, with 13,500 metric tons sent to the third party Concentrator, and 6,500 remaining to supply the IMP Test Benefiiation Plant, producing 8,000 metric tons per month of Concentrate.
     

  4. Q2 2020 - Q3 2020:  Begin construction of Bulk Concentrate Plant for 40,000 metric ton input / mo.
     

  5. Q4 2019:  Begin operations of Bulk Concentrate Plant with Test Concentrate Plant, producing 18,600 metric tons / mo of Lead and Zinc Concentrates, plus 5,400 metric tons / mo of third party Concentrate output bringing total Concentrate production to 24,000 metric tons / mo, expected to be at a ratio of 35% to 40% Lead Concentrate and 60% to 65% Zinc Concentrate.

II.  MINE EXPLORATION PLAN

 

  1. Q3-Q4 2019:  30% JORC compliant Resource Report executed
     

  2. Q1 2020:  30% JORC Compliant Resource Report published 
     

  3. Q2 2020 - Q1 2021:  Execute full mineralization zone JORC Compliant Drilling and Resource Report for deposits to 100 meters of depth
     

  4. Q2 2021 - Q2 2023:  Execute full mineralization zone JORC Compliant Drilling and Resource Report for deposits below 100 meters of depth to complete reserve and resource estimate for the IMP Mine, allowing full valuation 

III.  SMELTER & PURIFICATION PLANT DEVELOPMENT PLAN
 

  1. Q4 2019:  Review EPC proposals and finalize decision in selecting EPC partner to build Co-located Lead and Zinc Smelting & Purification Plants
     

  2. Q1  - Q2 2020:  Contract Front-End Engineering (FEED) for co-located Lead and Zinc Smelting & Purification Plant for a 12,300 metric ton / mo Lead Concentrate Input Capacity Lead Smelting Plant, and a 17,700 metric ton / mo Zinc Concentrate Input Capacity Smelting & Purification Plant, with output projected to be approximately 38,000 metric tons of Lead Ingot (99.99% pure metal) and 55,000 metric tons of Zinc ingot (99.99% pure metal). 
     

  3. Q1 - Q2 2020:  Simultaneously, Contract Independent Engineering Review firm for IMP's DFS and MCC's EPC Proposal, and negotiate final EPC Contract.
     

  4. Q2 2020:  Complete land acquisition commitment for Co-located Smelting & Purification Plants in Modern Cikande Industrial Park, Serang area, with purchase conditional upon EPC contract conclusion 
     

  5. Q3 2020:  Sign EPC Contract with selected EPC Contractor and issue NTP (Notice to Proceed) for construction.
     

  6. Q3 2020 - Q4 2021:  Build co-located Lead and Zinc Smelting & Purification Plants.
     

  7. Q1 2022:  Begin vertically integrated Mining, Concentrating, and Smelting & Purification Operations on targeted 30,000 metric tons / mo of net Ore production, producing 14,800 metric tons / mo of Lead and Zinc Concentrate and approximately 7,700 metric tons / mo of Lead and Zinc metal ingot (99.99% pure metal) 

IMP PLANNNG PROCESS

We try not to see our operations plan as being fixed, but rather a guide to decision making.  Ultimately every plan adjusts to reality.  However, we are very committed to planning as a process of knowing our objectives, knowing what options are available to reach our objectives, knowing what we need to know and what we don't yet know, finding answers to the questions, and then setting a scenario of the future in place with as much detail as possible and moving towards it.  Specifically our planning process is:

  • Develop our objectives

  • Develop tasks to meet our objectives

  • Determine resources needed to implement those tasks

  • Create a Timeline (of which the information below is a summary)

  • Create a Financial Model and Business Plan Impact document

  • Determine tracking and assessment methods for the objective

  • Review the objectives with legal counsel

  • Present the plan to the Board of Directors and Commissioners

  • Finalize the plan for each objective and assign leadership (plan ownership)

  • Distribute the planning document to all involved in the process

  • Present timely reports on progress to the Board of Directors and Commissions

 

The following timelines are a result of the above effort as described in detail in our Detailed Feasibility Study (DFS), Business Plan (BP), and Pro Forma (PF).  Naturally, every plan is subject to modification as changes in conditions impact the process.

 

Below is our current plan starting when we receive the Forestry Permit for land use (IPPKH) until December 31, 2021, which is the date when IMP is required to start selling pure metal for export.  These timetables, describe "when" things must happen.  "How" and "why" is described in detail in our Phase I & II Due Diligence Exploration Report, our Detailed Feasibility Study, our Business Plan, and our Pro Forma.

© IMP MINERALS (PT Indo Mineralita Prima) 2018