water supply, page-2

WATER SUPPLY Groundwater Resource Management Pty Ltd (GRM) has completed a water supply assessment for the proposed Pilgangoora mine to assess whether the project water demand is attainable from on-tenement groundwater resources, or whether off-tenement options will be necessary. The estimated total project water demand is 1.83 GL/annum (58 L/sec) of fresh to brackish quality groundwater. Field investigations were undertaken to assess the on-tenement water supply potential from fractured rock aquifers (the primary aquifer type within the project area). The combined on-tenement water supply sources (mine dewatering and three water supply bores) are estimated to provide about 27 to 30 L/sec for the duration of the project. Detailed negotiations are nearing completion to take water, under agreement, from an existing licensed remote borefield. In addition, access has been obtained to existing high-flow bores in the near vicinity of the project area. It is anticipated that either (or both) of these options will be sufficient to supplement the on-tenement supply and satisfy the project’s total water demand for both the 2Mtpa and 4Mtpa operations.