Resource World Magazine

MINI NG EXPANSION PLANNED AT ANGLO AMERICAN'S TREND-ROMAN PROJECT Senior mining company Anglo American PLC [AAL-London] has officially launched expansion plans for its Trend Roman coking, or metallurgical coal mine near Tumbler Ridge, northeast British Columbia. Located about 700 km northeast of Vancouver, the mine produces coal for Asian steel makers, which is shipped by rail to the Port of Prince Rupert on the northwest coast of BC. The first phase of the expansion program, budgeted at $50 million, is expected to increase the current production of 1.5 million tonnes annually. The multi-year project expansion is anticipated to cost about $200 million in total. On August 15, the Minister for Energy and Mines for the Government of the Province of British Columbia, The Honourable Bill Bennett, joined with Anglo American's Chief Executive, Mark Cutifani and Metallurgical Coal Chief Executive Officer, Seamus French, to turn the first sod on the first phase of the TrendRoman Project, an open cut expansion for the Trend Mine. Also in attendance were First Nations KOOTENAY SILVER TO START PROMONTORIO DRILL PROGRAM James McDonald, President and CEO of Kootenay Silver Inc. [KTN-TSXV], reports that the next phase of drilling is scheduled to begin in early September at its 100%owned Promontorio polymetallic project located about 75 km northeast of Ciudad Obregon in the Sierra Madre region of northwest Mexico The current resource estimate contains measured and indicated (M&I) resources of 44.5 million tonnes reporting 92 million ounces silver-equivalent (39.7 million ounces silver, 853 million pounds lead, plus zinc, and 506,000 ounces gold) for a total M&I mineral resource estimate of 92,428,000 silver-equivalent ounces. See news release datd May 14, 2013. 38 www.resourceworld.com partners and government officials to celebrate construction starting on the project's water management infrastructure, which follows the Government of British Columbia recently granting the Mines Act Permit Amendment for the project. Visiting the Canadian coal operations for the first time since his appointment as Anglo American's Chief Executive, Mark Cutifani said the Trend-Roman expansion project would extend the life of the existing Trend operation by 16 years while introducing the most innovative environmental protection strategies ever seen in the region. "The approval of the Roman Project's first phase is an important milestone in our strategic plans to grow our metallurgical coal output in Canada, with the completed expansion producing up to 2.5 million tonnes of metallurgical coal per year and employing up to 450 people," Cutifani said. "As a company committed to maintaining the highest standards of environmental protection, we are proud to be the first company in British Columbia to take the unprecedented step to set aside 1,852 hectares of our tenures to protect caribou habitat. In addition to this, we will contribute $2.566 million towards the Government of British Columbia's Peace Northern Caribou Plan. In another first, we will soon begin construction on the only selenium water treatment facility in northeast BC," Cutifani said. Seamus French said detailed design was well underway on a mine plan that would secure the future employment of the existing Trend workforce and provide opportunities to First Nation community members and the Tumbler Ridge community. "When we acquired 100% of the Peace River operation in late 2011, a major attraction for Anglo American was the potential to unlock additional resources through future mine developments," French said. "At the same time, we have lifted productivity at Trend Mine, increasing production by more than 50% and delivering the best half year production ever seen in the first six months of 2013." Anglo American is finalizing economic benefit agreements with the West Moberly First Nation, McLeod Lake Indian Band, Halfway River First Nations and Saulteau First Nations. The company expects the second phase of the project to be permitted by the end of 2013 and to complete the Roman expansion by Q1 2014. n Subsequent to the earlier August 2012 resource estimate, Kootenay has undertaken extensive exploration which included: a drill program (16,400 metres) testing numerous peripheral anomalies and extensions of the known mineralization; additional metallurgical work; reinterpretation of the geophysics; geologic mapping; reinterpretation of previous mapping; and a soil survey program. Interpretation of these new data with the earlier database has outlined: • Areas of potential expansion of the known M&I resource; • Target zones where drilling shows potential for upgrading category from inferred resource; • New zones of resource potential outside drilled areas; • Discovery and outline of numerous newly recognized breccia pipes in the diatreme system. McDonald stated, "The current work has identified numerous additional priority areas with potential to sharply expand resources. Especially noteworthy are the high silver grades in drill holes DH 185 to 188 (see news release dated June 4, 2013). Sitting between the Northeast and Pit zones, these holes show potential for the existence of a highgrade core that may connect to high grades previously identified in the Northeast Zone. As we approach our 100-million-ounce silver-equivalent milestone on Promontorio, we are excited about starting the next drill phase to test this new area of high-grade silver mineralization along with the many other targets identified." n SEPTEMBER 2013

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