Understanding Mineralization Controls: Applied Structural Geology in Exploration and Mining Hotel Emporio, Zacatecas, Mexico A Workshop Presented By: = srk In Association With: Distrito Zacatecas 8 and 9'" September, 2011‘Applied Structural Geology in Exporation and Mining James Siddorn, Ph.D., P.Geo., is a Practice Leader with SRK, based in the Toronto office. James is a specialist in combining the structural analysis of the ore deposits with applied 3D geological modelling and 2D GIS (geological interpretation of geophysics). He also specializes in comprehending the structural control on ore plunge and the distribution of mineralization in precious and base metal deposits at deposit scales. James has extensive underground and surface mapping experience, combined with a broad mining knowledge. He is an expert in computer based 3D geological modelling and its application to applied structural-economic geology, hydrogeology and geotechnical analysis, using 2D and 3D GIS programs. James has over 15 years of experience in the exploration for and 3D modeling of Au, Ag, Ni-Cu-PGE, tantalum, and diamond deposits, with deposits and terranes ranging from Archean to the Mesozoic in age and covering five continents. James also has extensive teaching experience, teaching over 1000 geologists in the applied use of structural geology at both mine and exploration sites and conferences. isiddorm@srk.com vo Vos, Ph.D., P.Geo., is a Senior Structural Geologist with SRK, based in the Toronto office. Ivo has over 8 years of experience in the regional and local structural analysis of mineral deposits and has successfully applied his knowledge to the discovery of new gold deposits in East Africa. Ivo is an expert in deciphering structural controls on the distribution of mineralization for a variety of commodities, including Gold, Ni-Cu-PGE and Uranium Ivo's other specialties include deposit-scale 3D modelling, structural and geological interpretation of geophysical data, (multi-commodity) regional exploration targeting studies, and GIS integration of geological, geophysical and lithogeochemical data. Ivo has been involved in exploration and deposit-scale studies for a variety of commodities in Canada, Tanzania, Ghana, Mali and ‘Australia. Furthermore, Ivo has teaching experience in structural and economic geology, including involvement in several Applied Structural Geology Courses with SRK. ivovos@srk.com © SRK Consulting (Canada) IncApplied Structural Geology in Exploration and Mining WORKSHOP SCHEDULE DAY ONE 0800-0815 Welcome and Introduction. 0815-0900 General Concepts of Structural Geology and their application to mineral systems. 0900-1030 Structural mapping techniques for exploration and mining geologists. 1030-1045 Coffee Break 1045-1200 3D visualization and interpretation of geology and mineralization. 41200-1300 Lunch Break 1300-1430 Analysis of structure in drillcore: A practical introduction. 1430-1445 Coffee Break 1445-1600 Structural analysis of faults and fault systems - Part 1 DAY Two 0800-1015 Structural analysis of faults and fault systems — Part 2 1015-1030 Coffee Break 1030-1200 Structural analysis of veins and vein systems. 1200-1300 Lunch Break 1300-1430 Structural analysis of folds and fold systems 1430-1445 Coffee Break 1445-1600 Tectonic regimes and their control on structural architecture {© SRK Consuking (Canada) IncAPPLIED STRUCTURAL GEOLOGY IN ; EXPLORATION AND MINING: CM1: General Concepts of Structural Geology and Their Application to Mineral Systems‘Aapled Structural Geology in Exploration an Mining Applied Structural Geology in Exploration and Mining Welcome and Introduction Aims of Course + Demonstrate why so many ore deposits are y strongly structurally controlled; ~ + Define the simple principles of “structural control"; + Give you the tools you require to do structural geology in the mining and exploration environment; and + Give you the confidence to apply these tools, and therefore to make a real difference! ow srk (© SRK Conauting (Canada) Ine‘Applied Structural Geology in Exploration anc Mining Course Presenters Dr. James Siddorn Practice Leader SRK Tororo Specializes in: + Deciphering he structural conto on ore plunge and the ‘strbution of minerak2aton at epost seals + 30 applied gectogcal modeling ard + Applied structural geological interpretation of aeromagnetic data, focused onthe controls on the distin of mineratzation, Dr. Ivo Vos Senior Consultant SRK Toronto + specializes in + Deciphering structural corros onthe astreuton of mineralization {or a variety of commodities, incudeg Gold, N-Cu-PGE ana Uranium + Deposit scale 3D modeting + Stuctural and geological terpretation of geophysical dat, regonal exploration targeting studies, and GIS iteration. srk ® Course Schedule: Day 1 0800-0815 Welcome and Introduction. 0815-0900 General Concepts of Structural Geology and their application to mineral systems. 0900-1030 Structural mapping techniques for exploration and mining geologists. 1045-1200 3D visualization and interpretation of geology and mineralization. 1300-1430 Analysis of structure in drillcore: A practical introduction. 1445-1600 Structural analysis of faults and fault systems — Part 1 srk © © SRK Consulting (Canada) Inc‘Applied Structural Geology in Exploration and ting 0800-1015 015-1030 1030-1200 1300-1430 1445-1600 wv stk Course Schedule: Day 2 Structural analysis of faults and fault systems ~ Part 2 ‘Structural analysis of veins and vein systems. ‘Structural analysis of folds and fold systems Tectonic regimes and their control on structural architecture “~srk Applied Structural Geology in Mining and Exploration CM1 - General Concepts of Structural Geology and Their Application to Mineral Systems Structural mapping - Why Bother? (© SRK Consulting (Canada) ineApplied Sinectural Geology in Exploration and Mining The Geologist and the Engineer ‘Aman floating along in a hot air balloon began to realise he was lost. He reduced his altitude and spotted a person below. He descended a little more and shouted: “Excuse me, can you help me? | promised a friend | would meet him an hour ago, but I don't know where | am". The stranger replied, “You are in a hot air balloon hovering approximately 10 metres above the Proano mine approximately 2 kilometres south of Fresnillo” sk © The Geologist and the Engineer “You must be a geologist", said the balloonist. “| am" replied the stranger, "How did you know?" "Well", answered the balloonist, "everything you told me is technically correct, but | have no idea what to make of your information, and the fact is | am still lost. Frankly, you've not been much help so far". The stranger below responded, “You must be a engineer". "Lam," replied the balloonist, "but how did you know?” srk © (© SRK Consuting (Canada) neApplied Si.ctural Geology in Exploration an Mining work Geology underpins every aspect of the mining process © Ore Reserve Estimation Process Activity srk (© SRK Consulting (Canada) IncApplied Stnctural Geology in Exploration ané Mining Geology vs. Risk (©'SRK Consulting (Canada) ine‘Applied Structural Geology in Exploration and Mining Geology Input to the Mining Process Geology input lowers RISK! How Does Structural Geology Make a ifference? + Direct input on the limits, size and shape of ore bodies; + Elevates confidence in predictability of ore behavior: + Geometrical — grade control, dilution, targeting: + Geochemical — grade control, ore quality/metallurgy; and + Geotechnical — ground control, dilution + Definition of hydrogeological pathways, geotechnical domains, ete, srk © ‘© SRK Consuting (Canada) Ine 2‘Applied Sructural Geology in Exploration and Mining Applications of Structural Geology from Prospecting to Production Grassroots Exploration *Large-scale to local-scale interpretation of maps, geophysics and satelite imagery typically +lnterpretation of structural geometries within the frame of established geometric and kinematic models, + Targeting based on sites favourable for magma emplacement or enhanced fluid Tow werk © Applications of Structural Geology from Prospecting to Production Advanced Exploration “Detaled mapping and core analysis to determine «Timing relationships = Controls on ore dsttbution, particule high-grade + Post mineralisation deformation flcing,fauting etc) + Geometnical continuity ofthe resource Geometrical modeling of resource vw srk © © SRK Consulting (Canada) Ine‘Applied Structure! Geology in Exploration and Mining Applications of Structural Geology from Prospecting to Production Feasibility Studies (Scoping, Pre- & Full feasibility) + Structural characterisation for geotechnical evaluations, + Structural studies for hydrogeological characterisation Geometrical modelling for resource updates, srk © Applications of Structural Geology from Prospecting to Production Production Determining the structural influences on grade control. *Problems with fracture-controlled water ingress. +Other unexpected structural complexities. “Targeting near-mine exploration, srk © © SRK Consulting (Canada) IncApplied Srictural Geoogy in Exploration and Mining The Conceptual Basis of Structural Control in Mineral Deposits + All hydrothermal ore deposits require transport of large quantities of relatively insoluble metals in solution from some source region to the site of deposition; + Metal transport takes place principally by percolation of the fluid through the rock, and the low solubility of the metals means that. very large fluid fluxes are required, L verk © Metals Abundance in Various Rock Types (Element | Ultramatic | Matic | Folaie _[Greywacke | Cont. Crist [cu ppm 10 7 30 75 lzn ppm 50 108 oy 30 [Pb ppm 1 6 5 3 [Au ppm ‘O00 | 0.0017 | 0.002 | 0.002 0.003 {Ag ppm 0.06; ott 0.051 0.08 0.08) Solubility of metals Cu, Zn = not constrained by solubility in saline solutions, therefore approximate abundance in rocks. Au = not constrained by solubility in hydrothermal solutions, especially those containing S, therefore approximate abundance in rocks. srk © (© SRK Consulting (Canada) IneApplied Strural Geology a Exporation and Mining Exercise 1: Fluids and Plumbing srk © Exercise on Fluids and Plumbing + Assume: + Solubility of Au in hydrothermal solution = 0.03 ppm; + 102z= 31g; and + 1 litre of hydrothermal fluid = 1 kg + How much fluid required for a 5 Moz Au deposit? © SRK Conauling (Canada) Ine‘Apples Structural Geology In Exporation an Mining Fluid Required Estadio Azteca (Coloso de Santa Ursula) Volume roof closed 5,000,000 m* 5x 10° litres ‘1m? = 1000 litres 5Moz Au deposit Minimum fluids: 5.0 x 10°? itres 1,000 Estadio Azteca’s Another way of looking at this problem is that 107 of gold ‘will saturate an Olympic ‘swimming poo! full of a typical hydrothermal fluid! srk Basis for Structural Control + Getting the metal to the deposit is first and foremost a severe hydrodynamic problem; + Assimple analysis of this hydrodynamic problem provides the foundation for the principles of structural control; and + Ialso leads to a set of simple, practical structural geological tools for aiding the discovery, delineation and efficient exploitation of mineral deposits. -¥ srk © (© SRK Consulting (Canada) IneApplied Structural Geology in Exploration and Mining The Basic Hydrodynamic Problem + So how does the earth manage to channel several millions of Olympic swimming pools of fluid through the relatively small rock volume that is to be the mineral deposit? Campbell and Red Lake deposits >22Moz Au sprosk © A Simple Hydrodynamic Analysis + The migration of fluid through a porous and permeable rock mass is described macroscopically by Darcy's Law. Fluid flux =_Pressure head_x Rock permeability Fluid viscosity + Pressure heads have a limited range in the earth - eg, Pin Py n= Ppt + Hydrothermal aqueous fluids have approx constant viscosities at upper to mid-crustal conditions. uF oto srk © (© SRK Consulting (Canada) ine 1°‘Aopled Structural Geology in Exploration ane Mining Driving Forces for Fluid Flow + Pressure gradients factor of ~3 unostaveversis nyrestate) + Topography + Seismic pumping + Metamorphic dehydration + Magmas emplaced in f + Fluids expelled from crystallising magmas + Buoyancy + Temperature (thermal expansion) + Salinity + Viscosity - range of 1 order of magnitude + 40-400 pPa's at T = 100-800°C and 50-300 MPa -saturated rocks Erne © ig Forces for Fluid Flow + Permeability + Porous sandstone (@>15%) = 1 darcy (10 m*) + Crystalline granite 0 darcies (102 m) + Fault at mid-crustal depth = darcy (10 m?) + 10 orders of magnitude! + Therefore only permeability can vary sufficiently to permit the large fluid fluxes required to form ore deposits. srk ‘© SRK Consulting (Canada) Ine 0‘Applied Structural Geology n Exporation and Mining The Principles of Structural Control + Only abnormally permeable rocks will permit the fluid fluxes necessary to form ore deposits: + Fractured rocks (ie. fault zones) are the most likely conduits for transport of large fluid volumes; + But there is a built-in negative feedback in the system which will reduce the effectiveness of the fault zone to pass the fluid (and metal) volumes required + srk © The Principles of Structural Control + The evidence for this is ubiquitous in paleo-fault zones - fractures are vein-filled, wall rocks are often highly altered, gouge zones are tight and cemented - all of, which dramatically reduce the hydrodynamic efficiency of the zone. srk © © SRK Consuting (Cansea) IncApplied Structural Geology in Exploration ane Mining + Therefore, in order to transport the required metal volumes, the permeability of the fault zone must be continuously regenerated — (permeability of an active fault at mid crustal depth ~4 darcies, or 10° m®) + This leads to the important conclusion that hydrothermal ore deposits are localised on faults that were (repeatedly / continuously) active at the same time the hydrothermal system was active and metal-pregnant + Therefore, the concept of structural preparation’, whereby the fault sits around waiting for the mineralising fluid to come by is. flawed srk The Principles of Structural Control 9 Structure active during eralization srk (© SRK Consulting (Canada) Ine 2‘Apples Sinictural Geology in Exploration and Mining ‘The Importance of Getting Timing Right + Application of structural control principles requires that the timing of mineralisation must be carefully matched with the history of activity on a fault system ‘Regional cleavage cuts high-grade mineralization srk © The Principles of Structural Control + Most (all?) hydrothermal ore deposits form on or adjacent to active faults/shear zones; + Especially in gold deposits, economic grade is broadly correlated with vein/fracture concentration, which in turn is a measure of dilatancy in the controlling structure; and + A key component of mineral exploration is identifying and locating sites of dilation in structures that were active at the time of ore formation. a Supe ator srk © © SRK Consulting (Canad) Inc 23‘Applied Structural Geology in Exploration and Mining ‘The Principles of Structural Control + Permeability is unlikely to be the same everywhere on an active fault zone, + Permeability will generally be highest where damage within and around the fault zone is highest. + This will depend to some extent on host rock type, but will principally be localised by irregularities (e.g. bends, branches, steps, jogs) along the fault. ‘are zones of enhanced permeability srk @ The Principles of Structural Control + Fluid flow is therefore maximized, and ore deposits are generally localized on irregularities (Le, bends, bumps, branches and jogs) in fault zones. + Irregularities commonly extend beyond or sit off the main fault strand, which explains why deposits commonly occur (on second- or third-order structures rather than on the main fault. + Aside from fluid flow, this concept applies to magma as well. Therefore, intrusions and breccia pipes and associated mineral deposits also ‘commonly occur along irregularities. srk (2) (© SRK Consulting (Canada) Ine 4Applied Sica Geology in Exploration and Mining The Principles of Structural Control + Zones of local damage and permeability enhancement in active fault zones have another key influence on fluid flow and deposit localisation + The damage zone undergoes (fracture) porosity enhancement during each episode of fault movement. This increase in local porosity causes a transient reduction in local pore fluid pressure, which will suck fluid towards the damaged zone. = Al Ewes srk © The Principles of Structural Control mplosion Breccia as sip transiers |_| aly Vc + There are two other important consequences of this local pressure drop: + Itencourages mixing of fluids sucked from the surrounding wall rock and along the fault zone; + Ittcan drastically alter the solubility of metals in the fluid, + Both of these processes can lead directly to metal precipitation in the zone of maximum fluid flux wv srk © © SRK Consulting (Canada) Ine 2s