Toka Tindung Gold Project

Bankable Feasibility Study and Process Design

METS was involved in the Toka Tindung Gold Project which included the creation of a financial model and metallurgical testwork. As well as, sourcing and preparation for dismantling, transportation and re-assembly of a second-hand plant. Additionally planning for the construction of a power station at the project. Our key initiatives also included the carbon stripping circuit, cyanide destruction circuit and tailings options review, covering a sub-sea pipeline.


Project Brief

Outcome

  • Reduced CAPEX
  • Faster project time frame
  • Construction management
  • Resources & procurement
  • Tender & contract management
  • Project management

Background

Archipelago Resources Plc (Archipelago) is a UK incorporated company formed in 2002 for the acquistion, exploration, development and mining of precious metal (specifically gold) in South-East Asia. Archipelago was listed on AIM in September 2003. Archipelago’s registered office is in London, but the company is managed from Perth, Western Australia. All project development personnel are located at the company’s principal project at Toka Tindung in North Sulawesi, Indonesia.

Project Objectives

The Toka Tindung Gold Project is the company’s principal asset and is geologically comprised of a system of epithermal veins. The objective for engaging METS was to assist in project development of a mineral processing flowsheet in order to take the project into operation.

Challenges

Like many resource projects, the Toka Tindung project was inhibited by high capital costs. The numbers developed by the previous owners worked off the assumption of building a new process plant. The challenge for METS was to develop an innovative approach to the project to reduce the CAPEX in order to improve the project’s fundamental economics to be viable.

Our Approach

METS scoured the world to source and evaluate suitable second hand CIP plant options. After successfully securing the El Tambo Plant in Chile, the next challenge was to manage the relocation to Indonesia. METS set about the preparation of a tender for the relocation, refurbishment and re-construction work contracts. Several companies were identified by METS and asked to demonstrate their capability to undertake the required work. METS then issued a tender document to the shortlist of pre-qualified service providers.

After all bids were submitted, METS undertook an in depth analysis of each tender submission and reported back a series of recommendations to Archipelago. The successful bidder worked under METS’ supervision on the ground in Chile to deconstruct, label and load all the parts of the plant onto trucks to be hauled by road to the port of Coquimbo. The plant made its way through the Andes mountains’ winding roads and to the temperate seaside yard for cataloguing at La Serena.

METS personnel then oversaw the refurbishment of each component at a dedicated industrial yard near the port. METS advised on the correct package and storage of critical parts and routine maintenance for key components such that successful reassembly in Indonesia would be possible after the long shipment by sea. This construction project management work involved the establishment of a temporary METS regional project office manned by Perth based experienced METS metallurgical personnel assisted by locally employed translators and clerical support staff.