Under National Instrument 51-102
FORM 51-102F3
MATERIAL CHANGE REPORT
UNDER NATIONAL INSTRUMENT 51-102
Item 1. Name and Address of Company
Trek Mining Inc. (“Trek Mining” or the “Company”)
Suite 730 – 800 West Pender Street,
Vancouver, BC V6C 2V6
Item 2. Date of Material Changes
July 31, 2017
Item 3. News Release
A news release was disseminated on July 31, 2017, through the f acilities of Nasdaq
GlobeNewswire and subsequently filed on SEDAR.
Item 4. Summary of Material Changes
On July 31, 2017, the Company an nounced the results of its feas ibility study on its 100%
owned Aurizona gold mine (Project) located in northeastern Braz il and Award of EPCM
contract.
Item 5. Full Description of Material Changes
See attached Schedule “A” for a full description of the material changes.
Item 6. Reliance on subsection 7. 1(2) of National Instrument 51-102
Not applicable.
Item 7. Omitted Information
Not applicable.
Item 8. Executive Officer
Peter Hardie
Chief Financial Officer
Tel: (604) 558-0560 ext. 114
Item 9. Date of Report
August 2, 2017
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Schedule “A”
Full Description of Material Changes
FEASIBILITY STUDY AND AWARD OF EPCM CONTRACT TO AUSENCO
(All amounts in US dollars, unless otherwise indicated)
On July 31, 2017, the Company announced the results of its feas ibility study (“FS”) prepared in
accordance with National Instrument 43-101 (“NI-43-101”) on its 100% owned Aurizona Gold Mine
(“Aurizona” or the “Project”) located in northeastern Brazil.
Highlights:
After-tax NPV 5% of $197.1 million and IRR of 34% at $1,250/oz gold
Low initial capital cost of $130.8 million, with LOM sustainin g capital cost of $51.3 million
LOM gold production of approximately 886,000 ounces at an aver age gold recovery of 91%
Average annual gold production of approximately 136,000 ounces
Average LOM AISC of $754/oz, pla cing Aurizona in the lowest quartile of the industry
average
Proven and Probable Mineral Re serves of 19.8 million tonnes at 1.52 g/t gold for 971,000
ounces of gold
FS supports the viability of a m ine restart plan with an upgraded 8,000 tonnes per day
crushing and grinding circuit to treat all ore types
First gold pour targeted for year-end 2018
The FS is based on a new mine plan and updated Mineral Reserve estimate and outlines the design of an
open-pit gold mine producing on average approximately 136,000 o unces of gold per year, with an initial
6.5-year mine life and significant exploration upside, as demon strated with recent drill results. Initial
capital to fund construction and commissioning is estimated at a modest $130.8 million due to the
Company’s ability to leverage sign ificant existing infrastructure in place at the brownfields mine site. Life-
of-mine (“LOM”) sustaining capi tal is estimated at $51.3 millio n, including closure costs. All-in-sustaining
costs (“AISC”) are estimated at $754 per ounce (“$/oz”) over th e life of the Project, which is in the lowest
quartile of the industry average. The Project demonstrates stro ng returns in the current gold price
environment, with an after-tax i nternal rate of return (“IRR”) of 34% and an after-tax net present value
using a 5% discount rate (“NPV5 %”) of $197.1 million using a ba se case gold price of $1,250 per ounce
($254.3 million and 42% at $1,350/oz gold price).
The FS was prepared by Lycopodium Minerals Canada Limited with the support of three other globally
recognized engineering firms: AGP Mining Consultants Inc. (“AGP ”), SRK Consulting (Canada) Inc.
(“SRK”) and BVP Engenharia in partne rship with Walm Engenharia e Tecnologia Ambiental. The FS is
being summarized into a technical report that will be filed on SEDAR within 45 days, in accordance with
“NI 43-101”.
BASE CASE HIGHLIGHTS
The 100%-owned Project, located in Maranhão State in northeaste rn Brazil, is a 223,000-hectare
property containing a past-producing open-pit mine and gold pro cessing plant, the Piaba and Boa
Esperança gold deposits and numerous exploration targets. The F S provides a compilation of the
engineering and geological studies performed in 2016 and 2017, which incorporated the results from
drilling conducted in 2015 and additional geotechnical and geoc hemical site characterization work carried
out in 2016 and 2017. FS highlights are summarized in the table below.
Feasibility Study Highlights
Gold price (base case) $1,250/oz
Exchange rate (Brazilian Real to US
Dollar)
3.3:1
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Average annual gold production (LOM) 136,000 ounces
Total gold production (LOM) 885,700 ounces
Average gold grade 1.52 grams per tonne (“g/t”)
Strip ratio 5.7:1 (waste:ore, tonnes)
Average gold recovery 91%
Throughput 8,000 tonnes per day (“tpd”)
Initial mine life 6.5 years
Cash costs (LOM) $691/oz
Direct operating costs (LOM) Mining - $2.44/tonne mined; Processing - $8.43/tonne
milled; G&A - $2.88/tonne milled; Non-recoverable taxes -
$0.89/tonne milled
AISC (LOM) $754/oz
Cash flow (after tax) (LOM) * $286 M
Initial capital $130.8 M ($148/oz)
Sustaining capital, including closure costs $51.3 M ($54/oz)
NPV5% (after tax) $197.1 M (base case), $254.3 M ($1,350/oz gold)
IRR (after tax) 33.8% (base case), 41.6% ($1,350/oz gold)
Payback (after tax) 2.8 years
* Net of initial capital cost.
ECONOMIC SENSITIVITIES
Using the base case gold price of $1,250/oz and incorporating o nly Proven and Probable Mineral
Reserves of 971,000 ounces of gold, the Project has an after-tax NPV5% of $197.1 million and an after-tax
IRR of 33.8%. The Project’s economics are most sensitive to flu ctuations in the gold price and foreign
exchange rate, as summarized in the tables below.
Aurizona Mine Sensitivity to Gold Price
Gold price ($/oz) $1,000 $1,150 $1,250 $1,350 $1,500
NPV5% (after tax) $49.2 M $139.6 M $197.1 M $254.3 M $339.8 M
IRR (after tax) 12.3% 25.6% 33.8% 41.6% 52.9%
Payback period (years) 5.2 3.4 2.8 2.3 1.8
Aurizona Sensitivity to Brazilian Real:US Dollar Exchange Rate
Foreign exchange
(BRL/US$)
3.1:1 3.2:1 3.3:1 3.4:1 3.5:1
NPV5% (after tax) $165.9 M $182.0 M $197.1 M $211.2 M $224.6 M
IRR (after tax) 28.1% 31.0% 33.8% 36.5% 39.2%
CAPITAL & OPERATING COSTS
Initial capital to fund construction and commissioning is estim ated at a modest $130.8 million due to the
Company’s ability to leverage significant existing infrastructure in place at the brownfields mine site. Most
major mine and processing elements are already in place, includ ing a tailings storage facility (“TSF”) and
waste dumps, a dedicated power line, camp offices and accommoda tions, water, roads and
communications.
The re-engineered plant includes an entirely new 8,000 tpd crus hing and grinding circuit that will allow all
known types of mineral bearing rock at Aurizona to be processed through the gold recovery plant.
Procurement and construction of the new components and equipment for the mine restart are expected to
take up to 18 months, with first gold pour targeted for year-end 2018.
Initial and sustaining capital costs reflect the use of contrac tor mining, eliminating the need to purchase a
new mining fleet.
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Aurizona Capital Cost Estimate
(Including duties and taxes)
Initial Capital $M Sustaining Capital $M
Mining 22.5 Minin g 10.6
Treatment plant & repairs 49.3 Tailin gs dam 35.8
Reagents & plant services 12.0 Owner’s costs 1.2
Tailings dam 3.1 Closure costs (net of salvage value) 3 . 7
Owner’s costs * 29.0
Management costs 6.7
Construction indirects 7.7
Waste storage facilities 0.5
Total Initial Capital $130.8 Total Sustaining Capital $51.3
* Includes pre-production costs, working capital and power substation upgrade activities.
Aurizona Operating Cost Estimate
(Including non-recoverable taxes and excluding recoverable taxes)
Onsite Operating Costs Cost Per
Ounce
Cost Per Tonne Milled Cost Per Tonne Mined
Mining $355 $15.83 $2.44
Processing $189 $8.43 -
G&A $64 $2.88 -
Non-recoverable taxes $20 $0.89 -
Total Direct Operating Costs $628 $28.03 -
Refining & transport $14 - -
Total Operating Costs $642 - -
Royalties $49 - -
Total Cash Costs * $691 - -
* For IFRS accounting purposes, some stripping costs may be cap italized and included in sustaining
capital instead of in operating costs.
Mineral Reserves and Resources
Proven and Probable Mineral Reserves are estimated at 971,000 ounces of gold contained in 19.8 million
tonnes of ore at a diluted grade of 1.52 g/t of gold. These Min eral Reserves support an initial 6.5-year
mine life with excellent potentia l to expand the reserve base a nd extend the mine life with exploration
success.
Aurizona Mineral Reserve Estimate
Effective Date May 29, 2017
Proven Probable Total
Ore Type
Tonnag
e (kt)
Gold
Grade
(g/t)
Contained
Gold
(oz)
Tonnag
e (kt)
Gold
Grade
(g/t)
Contained
Gold
(oz)
Tonnag
e (kt)
Gold
Grade
(g/t)
Contained
Gold
(oz)
Laterite 122 1.94 8,000 539 0.98 17,000 661 1.16 25,000
Saprolite 1,684 1.52 82,000 1,310 1.38 58,000 2,994 1.46 140,000
Transition 2,553 1.34 110,000 1,363 1.18 52,000 3,916 1.29 162,000
Fresh Rock 4,079 1.46 192,000 8,186 1.72 452,000 12,265 1.63 644,000
Total 8,438 1.44 392,000 11,398 1.58 579,000 19,836 1.52 971,000
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Proven Probable Total
Pit
Tonnag
e (kt)
Gold
Grade
(g/t)
Contained
Gold
(oz)
Tonnag
e (kt)
Gold
Grade
(g/t)
Contained
Gold
(oz)
Tonnag
e (kt)
Gold
Grade
(g/t)
Contained
Gold
(oz)
Piaba 8,088 1.43 373,000 10,286 1.60 529,000 18,374 1.53 902,000
East 350 1.68 19,000 585 1.87 35,000 935 1.80 54,000
Boa Esperança 527 0.84 14,000 527 0.84 14,000
Total 8,438 1.44 392,000 11,398 1.58 579,000 19,836 1.52 971,000
Notes: This Mineral Reserve est imate has an effective date of M ay 29, 2017 and is based on the Mineral Resource
estimate dated January 5, 2017 by SRK. The Mineral Reserve calc ulation was completed under the supervision of
Gordon Zurowski, PEng of AGP, who is a Qualified Person as defi ned under NI 43-101. Mineral Reserves are stated
within the final design pit based on a $1,056 per ounce gold pr ice pit shell with a $1,200 per ounce gold price for
revenue. The cut-off grade was 0.60 g/t Au for the Piaba pit ar ea and 0.41 g/t Au for the Boa Esperança area. The
mining cost averaged $2.32/tonne mined, processing averaged $11 .30/tonne milled and G&A was $2.84/tonne
milled. The process recovery averaged 90.3%. The exchange rate assumption applied was R$3.30 equal to $1.00.
The FS scope only considers the Piaba and Boa Esperança open pi t mineralized zones. The Mineral Reserve
estimates contained herein may be subject to legal, political, environmental or other risks that could materially affect
the potential development of suc h Mineral Reserves. Mineral res ources that are not included within the Mineral
Reserves do not have demonstrated economic viability.
The combined Measured and Indicated Mineral Resources are estim ated at 1,431,000 ounces of gold
(inclusive of reserves) contained in 28.3 million tonnes at a g rade of 1.57 g/t gold, with additional Inferred
Resources in the open pit of 45,000 ounces of gold contained in 880,000 tonnes at a grade of 1.61 g/t
gold and underground Inferred Resources of 490,000 ounces of go ld contained in 5.1 million tonnes at a
grade of 2.99 g/t gold.
Aurizona Mineral Resource Estimate
Effective Date January 5, 2017
Deposit Area Category
Tonnes
(kt)
Gold
(g/t)
Gold
(oz)
Piaba Open Pi t
Measured 8,860 1.46 415,000
Indicated 19,030 1.64 1,002,000
Measured and Indicated 27,890 1.58 1,417,000
Inferred 740 1.56 37,000
Boa Esperança Open Pi t
Indicated 370 1.14 14,000
Inferred 140 1.88 8,000
Total Open Pit M&I 28,260 1.57 1,431,000
Inferred 880 1.61 45,000
Piaba Underground Inferred 5,090 2.99 490,000
Notes: This Mineral Resource estimate has an effective date of January 5, 2017 and was prepared by Mr. Marek
Nowak, M.A.Sc., P.Eng. of SRK, who is a qualified person under NI 43-101. Mineral Resources are inclusive of
Mineral Reserves. Mineral Resour ces that are not included withi n the Mineral Reserves do not have demonstrated
economic viability. Open pit mineral resources are reported at 0.6 g/t gold cut-off and underground resources are
reported at 2.0 g/t gold cut-o ff. Tonnes are rounded to the nea rest 10,000; ounces are rounded to the nearest 1,000.
Small tonnage and grade differences may be found due to roundin g. The Mineral Resource estimates contained
herein may be subject to legal, political, environmental or oth er risks that could materially affect the potential
development of such Mineral Resources.
The Company believes there is considerable potential to expand the reserve and resource base and
extend the mine life through expl oration success. The Project’s 223,000-hectare land package includes
the Aurizona mining license, brow nfields exploration properties proximal to the Aurizona mine site, and
earlier-stage greenfields explor ation properties that are under option to AngloGold Ashanti Holdings plc.
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Near-mine, drill-ready exploration targets include Piaba West, which has the potential to extend the
existing Piaba deposit 900 metres to the southwest, and Tatajub a, which is situated on the same Piaba
structure and represents a potential four-kilometre extension along strike from Piaba West.
AURIZONA MINE PLAN
The mine plan is based on the current Mineral Reserve model and c a l l s f o r c o n v e n t i o n a l t r u c k a n d
excavator/front end loader open-pit mine operations with a wast e-to-ore stripping ratio of 5.7:1. The new
mine plan continues mining in the existing Piaba open pit, deepening the pit and mining all rock types.
The mine plan was developed to provide a practical mining seque nce while optimizing net present value,
and incorporates early mining of the Boa Esperança pit which, o n completion, will provide water storage
capacity as part of the overall site water management plan. Pri mary mining activities will take place in the
Piaba pit.
Mining will be performed by a mini ng contractor, based on quotes received from a variety of experienced
mining contractors. The grade control function will be performed by Aurizona personnel.
Mining costs, including the mining contractor charges and Auriz ona supervision and grade control, are
estimated to average $2.44 per tonne mined (excluding taxes) over the current LOM.
Fresh rock accounts for 62% of the Mineral Reserves, while sapr olite/laterite and transition account for
18% and 20%, respectively. The mine schedule estimates delivery of 19.8 Mt of ore grading 1.52 g/t gold
to the mill over the LOM. Waste tonnage totaling 113.2 Mt will be placed in the north, west, and south
waste rock storage facilities.
Existing Infrastructure at Aurizona Mine Site
(And Location of Potential Future TSF)
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PRODUCTION SCHEDULE
The production schedule reflects a mine plan that provides a pr actical mining sequence, ensures the
availability of sumps at the appropriate times of year and prov ides ore stockpiles on the run of mine pad
to supplement plant feed during the rainy season. The LOM produ ction schedule is presented in the table
below.
Aurizona Production Schedule
Year
Pre-
Prod 1 2 3 4 5 6 7 Total
Ore to Plant kt 2,918 3,208 3,006 2,920 2,920 2,920 1,944 19,836
Gold Grade g/t 1.49 1.50 1.66 1.65 1.43 1.43 1.47 1.52
Direct to Mill kt 1,841 2, 110 2,501 2,920 2,400 2,920 1,147 15,839
To Stockpile kt 1,073 1,572 708 644 0 0 0 0 3,997
From Stockpile kt 0 1,077 1,098 506 0 519 0 797 3,997
Waste kt 3,517 26,122 29, 582 29,063 12,680 8,817 3,058 386 113,226
Total Mined kt 4,590 29,535 32,400 32,208 15,600 11,218 5,978 1,533 133,062
Recovery % 92.8% 91.9% 92.0% 90.4% 90.4% 90.0% 90.2% 91.2%
Gold to Doré oz 130,082 142,161 147,952 139,733 121,876 120,824 83, 069 885,696
PROCESS PLANT
The FS is based on a process plant capable of treating 8,000 tp d of fresh rock through a combination of
conventional gravity concentrati on and leach/CIP (carbon in pul p) cyanidation processes. The design
includes a new comminution circuit which comprises a primary ja w crusher, SAG (semi-autogenous
grinding) mill, ball mill and peb ble crusher. This circuit will treat more than 8,000 tpd of ore as the
proportion of saprolite increases. The plan also calls for the repair, refurbishment and improvement of the
existing process plant equipment. This will include new hydro-c yclones, a new intensive leach reactor,
three new leach tanks, a refurbished CIP circuit, a new pressur ized elution circuit, a new carbon
regeneration kiln and a new high rate thickener. Additional imp rovements to the existing process plant
include upgrades to the cyanide destruction and tailings deposi tion system, gravity recovery circuit,
electrical supply and distribution system, instrumentation and controls, and plant infrastructure.
Average cost to process a tonne of ore is expected to be $8.43 per tonne milled over the current LOM.
The cash cost varies dependent on the blend of the three main ore types being processed, with variations
in power, steel, cyanide and lime consumption due to difference s in hardness, abrasiveness and
mineralogy.
METALLURGY
The process gold recovery is based on previous production from 2010 to 2015, and additional test work
conducted from 2011 through to 2016. The test work has been con sistent across the various campaigns
and laboratories and shows that gold is readily recovered using conventional cyanide leaching with a
design retention time of 30 hours. Using a P 80 100 µm grind size, gold recoveries of between 90% and
97% are expected over the LOM. Design recoveries by metallurgic al domain are presented in the table
below.
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Aurizona Gold Recoveries
Process and Mineralization Au Recovery
Piaba Saprolite 93.1%
Piaba Transition 94.1%
Piaba Fresh Rock 90.0%
Boa Esperança Saprolite 91.8%
Boa Esperança Transition 97.1%
Leaching reagent consumption ranges from 0.45 to 0.54 kg/t NaCN and 0.80 to 3.71 kg/t lime.
TAILINGS STORAGE FACILITY
The Project will expand the capacity of the existing Vené TSF i n three lifts. The first expansion will be
carried out before the restart of the process plant, followed b y two additional lifts approximately every two
years thereafter. Construction of a new tailings facility, Zé B olacha, will start in y ear four. Both facilities
are designed as unlined, compacted earth fill structures with sand chimneys and blanket drains. Following
neutralization, tailings slurries (approximately 40% solids) wi ll be pumped via pipeline to the TSF and
spigoted from the dam crest to maintain the water pool towards the rear of the reservoir area and away
from the main dam embankment. Water will be recovered and pumpe d back to the process plant or the
Boa Esperança pit reservoir.
INFRASTRUCTURE
Given the brownfields nature of the Project, Aurizona is endowe d with considerable infrastructure, which
includes the back end of the plant, offices, warehouses, laboratories, communications and a camp. It also
benefits from the existing road access from Belem (440 km) and São Luis (320 km), as well as access to
the electrical grid (with a powerline to site) via the Maranhão power distribution utility, which provides
access to lower-cost, free-market power supplies.
The site-wide water balance work has indicated that the operati on has access to sufficient fresh water for
uninterrupted operations in extr eme drought conditions, and the storage and discharge capacity to
contain flooding from extreme wet periods.
LABOUR
There is abundant labour in the region and, as a prior operator , the Project has access to previously
trained local and regional staff. The Company has continued wit h its human resources programs during
the care and maintenance period, in anticipation of restarting operations. Training programs for a variety
of administrative and technical skills will benefit the project by increasing the pool of skilled labour, and
benefit local community members through the development of tran sferable skills. The Company will
provide up to 500 jobs during both construction and operations, a n d e x p e c t s t h a t s u b s t a n t i a l l y a l l
employees and contractors will be Brazilian.
PERMITTING
The Project was placed on care and maintenance in the third qua rter of 2015. The Company has
maintained its licenses and permits in compliance with regulato ry requirements and has requested that
the existing License to Operate (“LO”) be amended to cover chan ges to the operating parameters,
including the increased plant throughput to 8,000 tpd and raises to the Vené TSF. Receipt of the License
to Install (“LI”) is anticipated in the third quarter of 2017 a nd will allow full construction to commence,
keeping Aurizona on track to restart operations by the end of 2018.
ENGINEERING, PROCUREMENT AND CONSTRUCTION MANAGEMENT
Trek Mining has awarded the project EPCM work to Ausenco Engine ering Canada Inc. (“Ausenco”), a
private, diversified engineering, construction and project mana gement company with extensive