Gruminex- Company Report

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REPORTCOMPANY

Cynthia Villa General Manager | GRUMINEX

A: We have been collaborating with First Majestic for three years now on the AG/SAG conversion of its grinding system at Santa Elena Unit. The company is changing for a SAG mill system, which can accomplish the same size reduction work as two or three stages of crushing and screening. SAG mills grinding the material directly to the desired final size or prepare it for the following stages of separation, and are often used in grinding at modern mineral processing plants. We are doing the engineering for the project and already it is on construction stage. Another success is the nitrate ammonium plant for Hanka Industrial Company. Our engineering for that project is a reference in Latin America.

A: Conveyor belts are a crucial piece of equipment that can present problems for changes on the process. The main problems are usually the result of capacity, inclination and engine power. Since Gruminex is not committed to any brand or supplier, we can assemble the best conveyor belt that the specific project needs, based on a rigorous analysis of design and mechanical engineering involved on the changes. We can go to one supplier for the belt and another for the transmission, bearings and rollers. The result will be a conveyor belt perfectly adapted to the specific needs of the project.

Q: What value do you add in tailings management?

A: We focus on monitoring the quality control of a tailings dam. We do geotechnical, hydraulic and hydrological studies. Our leak control system adheres to the cyanide code, we work for leak detection in geomembranes. We certify that the geomembranes are leak free. Leaks mean losses for the company and harm to the environment. They can happen for many different reasons, like a tool falling or a vehicle moving on top of the membrane. With respect to tailings, we are more involved in managing the project than in developing the engineering plan.

There are different processes to extract the minerals and they depend on the physical and chemical properties of the same, for example, for gold and silver by cyanidation in leaching tanks, or by leaching in tanks with forced agitation. Actually, the industry has different technologies and special equipment that could be used in each required process, depending on the budget available to carry out a project.

Q: In which other areas of processing have you solved persistent issues?

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A: Normally, the mine is in charge of the mineral extraction process, be it an open pit or underground mine, and takes it to where the mineral processing begins. We start from this point, applying our engineering skills and experiences in the design of material handling equipment. The client and us together define the appropriate process and required for the mineral depending on its physical properties. Dry process where crushing, screening, and material handling are a function of the size required to transition to the wet cyclone pulp grinding, screening, pumping, and separator process, then continue with the flotation, separation, thickening, and pumping process sludge.

Q: How does Gruminex deploy its expertise at the extraction stage of a project?

Q: What success story highlights Gruminex’s expertise?

On new projects, we have the liberty to act proactively and avoid future complications. However, existing plants that are already in operation are more challenging. We are frequently commissioned to do expansions due to greater processing capacity needs. Our team of engineers evaluates whether the existing equipment can be adapted to take on more load or if new equipment needs to be implemented.

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Gruminex’s commitment is to offer a comprehensive package of solutions to our clients. Our proposals include solutions for everything needed to put the processing equipment into operation, including engineering development such as foundations, structural, mechanical and piping design and electrical installations.

A: When an operating plant needs modifications, the physical space itself can become a limitation. Construction foundations sometimes have to be demolished and rebuilt. For instance, in a recent project there was no space to redirect the processing feed. We had to make major engineering adaptations to reach a solution because one piece of equipment had to be placed under Anotheranother.major challenge we usually face is that clients are intensely averse to stopping operations while we work on their plants. Downtime equals massive financial losses. Expanding the processing capacities of the plant while the plant is working requires great coordination with both the client and the operations department. Starting with the design stage, we orchestrated a whole strategy with contractors and the client to keep the plant in operation. The key is good coordination. The ideal way to work is having enough mineral to feed the part of the process that is under intervention as soon as the intervention is finished. For example, in a recent project, the crushing plant had to be stopped but we made sure that grinding continued. As a result, the stoppage was not as impactful for the production. This approach encourages miners not to postpone improvement work because they fear downtime.

Q: What are the most frequent challenges that you face when making improvements at an operating plant?

A: Gruminex’s experts advise clients about the right equipment to select for the project. We then carry out the civil, electrical and mechanical engineering. The most important factor to keep in mind is that the design of the conveyor belt is a right fit in relation to the project. Foundations are of the utmost importance.

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A: Our expertise makes the biggest difference from the crushing and grinding stage onwards. Our multidisciplinary engineering skills work in synchrony to offer a comprehensive solution. The first step is to define, depending on the kind of mineral and its properties, whether the processing will be done by lixiviation or grinding and flotation. We then adapt our engineering design for crushing and grinding according to what the process requires.

Juan Carlos Bagnod Mechanical Engineering Consultant GRUMINEX

Q: How does Gruminex approach the design and installation of conveyor belts?

Q: In what stages of a mining operation does Gruminex’s expertise add the most value?

As a result, Gruminex can detect potential interference between each of the disciplines involved in the project. We make sure that every piece fits the whole as well as possible. The possibility of wasted efforts during construction is dramatically reduced. With our software-based 3D model, we can show the client how its project will look well before construction begins.

Jean Carlo Bagnod Mechanical Engineer | Grupo Minero Mexicano (GRUMINEX)

Having everything within a single software, and being able to verify that we do not have interference between disciplines, provides clarity in the development of the project. As a result, we understand the volumetry, material, measurement, dimensions, and many other key variables. The 3D model encapsulates them all. Our clients reap many benefits from seeing their projects in 3D. They can visualize more clearly their objectives, as well as experience simulations of points that could present conflicts.

ngineering for mining projects is a multilayered discipline, involving not only different types of engineers but also professionals in fields like automation and data science. For all of these disciplines to cooperate fruitfully, the right digital infrastructure is of the essence. Hermosillo-based Gruminex is an engineering and construction management company renowned for implementing state-of-the-art software at the design stage of its projects to guarantee seamless interaction between all teams involved.

Proposals for improvement can be generated proactively instead of reactively. Our 3D technology facilitates working together between disciplines. It maximizes the benefits of current software packages. Gruminex can modify and instantly share data with every discipline involved in the project, without affecting their files. We can also parameterize accurately, either to import elements made in more specialized software or export them to software as viewers or as reference. Many software programs that we use are user-friendly and they allow us to export or import models from other programs, making the client’s presentations of projects more versatile and effective. As specialists in mechanical design, Gruminex understands the importance of having the most innovative software.

Today’s engineering services have to adapt to innovative technologies. If the adaptation is successful, there are greater design possibilities, higher performance and increased efficiency and speed. Advanced software is key to accomplishing this. It enables project designers and engineers to perform disciplinary modeling, which means they can integrate different disciplines, concrete, structures, mechanical, electrical, civil, piping, HVAC, instrumentation and control.

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Hermosillo-based Gruminex is an engineering and construction management company renowned for implementing state-of-theart software at the design stage of its projects to guarantee seamless interaction between all teams involved

Read the complete article More about this person More about this company Gruminex Uses Top Software to Deliver Best ResultsReportCompany|Gruminex | 5

GL DETECT is the first Mexican company that provides unique solutions and technologies to verify the tightness of the complete waterproofing system. This allows a better understanding of the state of the geomembrane in its installation and maintenance. It also prevents any type of leakage to protected areas.

GL DETECT solutions do not damage the geomembrane or put the operator at risk because the equipment works at very low voltage. It also represents an important benefit when detecting faults and leaks, since the economic, social and First

BIPOLARmm)TEST is for geomembranes covered with solid or liquid material and can be used in an external environment without generating any risk. In this solution, an electronically controlled power difference is applied to the sealing layer above the geomembrane. In the event of a fault, it creates a localized voltage flow that can be detected by sensors on the surface. This is a very attractive solution since it is not necessary to expose the sealing layer to identify faults.

LeakProvideCompanyMexicantoGeoelectricDetection SPOTLIGHT ReportCompany|Gruminex | 6

GL DETECT has two systems that detect faults or leaks: ARC TEST and BIPOLAR TEST. ARC TEST is used in geomembranes that are not covered by any type of material such as channels and ponds. In this solution, a probe of the device slides over the surface of the geomembrane and in the event of a leak or failure, a visible and audible signal will identify it. These can be detected even when they are imperceptible to the eye (less than 0.5

4.2. Have an operating and management system to reduce the use of cyanide and limit its concentration in the treatment for tailings.

4.1. Implement management and operation systems designed to protect people’s health and the environment.

4.3. Have a water management program to prevent accidental leaks. 4.4. Implement measures to protect animals against the effects of cyanidation process solutions.

4.7. Provide containment prevention measures for tanks and pipelines. 4.8. Implement control procedures to ensure that cyanide facilities are built according to accepted standards and specifications.

GL DETECT is the first Mexican company to offer these types of services and solutions. One of the most important advantages is that it has an alliance with the equipment manufacturer, which allows GL DETECT to adapt to any need that the mining industry may have.

environmental costs that these problems can cause are very high. Geoelectric leak detection systems adhere to number 4 of the international code for the management of cyanide that indicates:

4.5. Implement measures to protect fish and wildlife from cyanidation solution spills. 4.6. Implement measures to manage leaks from cyanide facilities and protect groundwater.

4.9. Implement monitoring programs to evaluate the effects of cyanide use on wildlife and on the quality of surface and groundwater.

GL DETECT is highly effective in detecting faults in the geomembrane surface, which cannot be achieved by other conventional methods. The equipment has an efficient detection up to 4 m of depth when there is solid material in the geomembrane. Meanwhile, when there is liquid material there is no depth limitation. The equipment does not require prior installation as it is portable and can inspect up to 5,000m2 in 6 Finally,hours.the

company offers Supervision in Waterproofing Projects (SPI) that seek to provide complementary guidance and ensure a correct construction process of a project in order to guarantee its good performance. With this solution, errors are reduced, designs are improved and contracts are supervised to ensure greater quality and efficiency in the construction of the project.

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The company’s detection systems, BIPOLAR TEST and ARC TEST, are highly effective in detecting faults and leaks on the geomembrane surface and have not been matched by any other system.

BIPOLAR TEST is the company’s flagship detection product. It is used for geomembranes covered with solid or liquid material and can be used safely in an external environment. The solution is very attractive as it does not require prior installation, does not damage the geomembrane and does not put the operator at risk at any time. For this solution, an electronically controlled power difference is applied to the sealing layer above the geomembrane. In the event of a fault, it

In mining, damage to geomembranes occurs 21 percent of the time in the installation stage, 74 percent during the coverage stage and 5 percent during the post-construction stage.

GL DETECT’s covered geomembrane leak detectors allow better control of the geomembrane condition during installation and maintenance, which reduces environmental and social risks, as well as economic and productivity losses.

GL DETECT is Setting a New Standard in SystemsWaterproofing SPOTLIGHT ReportCompany|Gruminex | 8

GL DETECT is the first Mexican company to provide a geomembrane detection service and the only one to offer bipolar detection equipment. Its solutions verify the integrity of the entire waterproofing system and detect faults missed by conventional methods. In addition, they can prevent up to 100 percent leakage of chemicals into the subsoil.

+ Detection width of 900mm.

No other company has been able to provide technology that makes geomembranes 100 percent leak-free. GL DETECT provides comprehensive high quality for waterproofing surfaces.

+ Maximum consumption of 20 mAh.

+ Operating time up to six continuous hours.

4.1. Implement management and operation systems designed to protect people’s health and the environment.

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4.3. Have a water management program to prevent accidental leaks.

+ Detection distance of 300mm.

4.4. Implement measures to protect animals against the effects of cyanidation process solutions.

4.8. Implement control procedures to ensure that cyanide facilities are built according to accepted standards and specifications.

4.5. Implement measures to protect fish and wildlife from cyanidation solution spills.

+ Detection of leaks smaller than 0.5 mm.

+ The detector device and power supply are portable.

Among its most attractive features are:

+ It does not require any external electrical connection.

Among its most attractive features are:

4.6. Implement measures to manage leaks from cyanide facilities and protect groundwater.

+ Detection width of 90mm.

+ Detection of leaks smaller than 0.5 mm.

4.9. Implement monitoring programs to evaluate the effects of cyanide use on wildlife and on the quality of surface and groundwater.

creates a localized voltage flow that can be detected by sensors on the surface. This solution does not require exposure of the sealing layer to identify faults, making it even more appealing.

The other detection system is ARC TEST, which is used in geomembranes that are not covered by elements such as channels or ponds. This solution requires a conductive base, such as sand or clay, and a dry, element-free geomembrane. If the requirements are met, a probe from the device slides over the surface of the geomembrane. The probe emits a visible and audible signal if a leak or failure is detected.

4.7. Provide containment prevention measures for tanks and pipelines.

+ Weighs 2kg.

+ The detection device and electrodes are portable.

Geoelectric leak detection systems operate according to the ASTM standard and adhere to article No. 4 of the international code for the management of cyanide:

+ Weighs 3kg.

+ Maximum consumption of 20 mAh.

+ Operating time up to eight continuous hours.

4.2. Have an operating and management system to reduce the use of cyanide and limit its concentration in the treatment tailings.

+ Economic advantages by avoiding repairs.

+ Detection distance of 60m.

ReportCompany|Gruminex | 10

Likewise, when the modeling is ready, each of the disciplines presents advances to the client through plans to receive comments or approval of the information that is shared. This is supported with calculation memories, technical sheets and simulation of auxiliary mechanical equipment, where the client can confirm the correct operation of the equipment. The client can then make use of this information and provide feedback to achieve the project objective thanks to engineering that complies with the standards established in its development. For this reason, constant communication and the exchange of information is the key to the success of the projects carried out by Gruminex.

Subsequently, a preliminary proposal is presented to the client for approval and to start the development of the detailed Onceengineering.theclient has approved the proposal and the most suitable process for adaptation is defined, the 3D modeling of the existing plant begins, so that all disciplines can work together and develop their corresponding area.

Subsequently, the new mechanical equipment is modeled and added to the general model, so that each of the disciplines generates the corresponding information. This information can be used to prepare the calculations of foundations and structures for the civil area, electrical connections and instrumentation for the electrical department, design and modeling of auxiliary equipment for the mechanical department and pipes.

José Manuel de la Torre Mechanical Designer | GRUMINEX Luis González Saucedo Mechanical Engineer | GRUIMINEX

dapting a process plant, which is carried out by the engineering department, consists of presenting the client with the most optimal option based on the needs and objectives of the project.

These can be to increase production or to make the process more efficient, for which the client needs to share information about the state of the areas to be adapted. With this, an analysis of the existing facilities and supporting information is carried out, as well as a survey of the area to define the equipment and facilities that will remain and those that will be updated.

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Once the detailed engineering has been approved, the volume calculation is carried out and that information is sent to the engineering cost department to carry out the scope of the work and issue the corresponding deliverables, such as drawings, concept catalogs and the list of materials and equipment. With this, we present the client the complete project, including cost estimates of the investment required for the project, which meets the objectives of the company.

MineralModificationAdaptation,ofProcessingPlants this topic

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Once the client has approved the proposal and the most suitable process for adaptation is defined, the 3D modeling of the existing plant begins, so that all disciplines can work together and develop their corresponding area

Q: What are the main factors that need to be prioritized to efficiently use a project site and its workspaces?

MH: For the land system, communication between the electrical discipline and civil engineering department is key. This is important in order to calculate and design the land network. In addition, it is essential to have communication

Q: How does coordination across multiple disciplines lead to project success?

To start a project, we need to know our client’s requirements to provide the best solution according to the program, budget and applicable regulations. For starters, the structural engineering and architecture department must have prior information and analyses provided by the client, and the base information must contain the following: topographical survey, geotechnical study, hydrological study, environmental impact study and other required information.

DB: The department of structural engineering and architecture sets the standard for ground plans, giving way for other disciplines to prepare the project plans. When the structural and foundation plans are designed, mechanical and electrical equipment must be considered. It is important to know the weight and dimensions of these elements because the overall design will depend on those. Examples would be a base for a pump or a structure that must support a control room.

DB: The participation of various disciplines when developing a project within a company is fundamental. At the beginning, the disciplines involved should be defined according to the project’s needs, the scope of each and the time to be invested.

DG: We first need to consider the mechanical discipline, which has several divisions that range from the selection of equipment for the development of a mining process to the selection of piping materials for a particular application. For this discipline, specific variables must be considered according to the process that will be handled in the project. In addition, we must define the equipment and elements to be used in the project. In addition, the electrical discipline must be taken into account, as well as the variables, so we can define the capacities of the equipment that will be used within the project.

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Q: What disciplines are taken into account when selecting equipment and elements for a project?

Structural Design Engineer

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Mechanical and Piping design engineer Electrical Design Engineer

Q: What is the discipline that GRUMINEX prioritizes first when creating a solution and what factors does this discipline consider?

Mario Henry Landavazo

MultidisciplinaryIntegrationinEngineeringDevelopment

Daniel Beltrán Daniel Gonzalez

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with the mechanical and structural department to know the positions of equipment and steel structures and their connection with the land system. For the power system, we seek to have an effective design and obtain a correct operation of the equipment based on architectural and structural designs. We do this to know the spaces and dimensions of buildings or racks and develop an appropriate wiring route.

Furthermore, in the lighting system, we must design adequate lighting to provide safe work areas for personnel, equipment and machinery. For this, we must know the dimensions of the work area and the locations of mechanical and electrical equipment. All this in coordination with the architectural, structural and mechanical disciplines.

Q: How do you ensure that the coordination of all disciplines is optimal and that there are no disharmonious operations?

DG: The drawing and calculation stage is done with the use of our specialized software REVIT from Autodesk, which is based on parametric modeling of construction elements and allows interaction and detection of interference with other disciplines involved in the project, so that there is better coordination and multidisciplinary organization.

In the control element, the objective is to optimize the mine process to ensure an efficient and safe project and coordinate all equipment and systems. To do this, it is necessary to coordinate the mechanical, piping and other structures to know the locations and mechanical characteristics of the equipment, as well as having knowledge of the structural elements that will allow the installation of instruments.

JC: It is the speed and personalized attention we offer our clients.

JC: It is key that the scope of the project be defined and outlined in order to redirect efforts and optimize time, cost and resources.

Project Controls | GRUMINEX Scheduler | GRUMINEX Contracts Manager | GRUMINEX VIEW fromtheTOP ReportCompany|Gruminex | 13

LL: We operate within a network of suppliers and contractors that is always growing, giving new companies the opportunity to integrate and compete with other experienced companies in the mining industry.

Q: What do you see as the key areas of the project that need to be controlled internally and externally?

Q: What makes Gruminex the best provider of engineering solutions?

Q: What advantages does Gruminex grant its clients in regard to distributors and contractors?

We perform evaluations that are carried out carefully with the pertinent criteria according to the discipline. Our priorities are the projects we want to execute in addition to ensuring that companies carry out the work successfully.

Q: How do you ensure that the main needs and wishes of the clients are reflected at all times during the development of the project?

Q: How often are plans updated with contractors and vendors?

Laura Susana López

JC: The meetings with clients must be effective when reviewing and evaluating the progress. This allows us to establish and reaffirm the objectives of the project and to redirect its course if necessary.

Graciela Dávila Pacheco

In addition to providing functional services that integrate our team’s experience both in the development of projects and in their execution.

LL: We maintain a constant review so that the information is up to date and, most importantly, adheres to the requirements of the project. Our priority is to address any changes as soon as possible so that the impact to any area is minimal.

Q: How does Gruminex´s offering differ from other solutions in the market?

EngineeringBecomesGRUMINEXaKeyAllyforMiningCompanies

Julio Cesar Cazares

JC: Unlike the competition, at Gruminex we always want to be the best alternative. Our clients can attest to that, since they are very satisfied with our service.

LL: Communication is the key factor for a prompt response. We work on our implementation of efficient communication channels, since these will provide us with a timely solution as well as having clear priorities and results.

Q: How do you ensure that activities are developed in an efficient and timely manner?

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LL: Today, Gruminex’s main strength is engineering design followed by supervision and administration of projects. In the near future, we will be able to offer various services, expanding our scope within the mining industry.

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Q: What is the company’s programming process for mining projects in Mexico and how is resource allocation optimized in this area?

Q: What makes Gruminex a thriving solution in the market despite being a young company?

Once the times have been established, the execution program is drawn up, including all areas and disciplines that make up the project.

Q: What are some improvements that are being made to speed up the delivery of solutions?

Q: What are Gruminex’s next steps in the mining industry?

JC: Since its formation, the growth of our business has been exponential, expanding the scope of our services from EP (design and procurement) contract modalities to EPCM (design, procurement and construction management). We hope to offer the EPC (Design, Procurement and Construction) contract modality, better known as turnkey, which would be a great step for our firm.

GD: The experience, capacity, will and dedication of each of the team members guarantees that we meet and even exceed customer expectations. We are a young company that has the resilience and vision to grow steadily both in the mining and industrial fields.

GD: At Gruminex, we are in the process of consolidating ourselves as a successful engineering and project management company, capable of carrying out the work required by the client with professionalism, quality and responsibility in the areas of engineering, supervision and construction process management (contracts, cost control and estimates, purchasing, logistics, supervision, etc.)

GD: We optimize the resources assigned to the project and work in coordination with the client, ensuring that their needs are covered. We keep track of the scheduled progress by supervising the work of each disciplinary team and reviewing the progress as projected. If needed, we assign more personnel to the areas where they are required.

In the event that the project delivery date does not meet the client’s requirements, we then reconsider the human resources involved in order to meet the deadline.

GD: The scheduling process for mining projects depends on the type of work the company will focus on. In the case of projects where only engineering preparation is required, a review of the project is concluded based on flow sheets and defined processes.

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