Gold Fields Australia Site Visit: Granny Smith Gold Mine STUART - - PowerPoint PPT Presentation

gold fields australia site visit granny smith gold mine
SMART_READER_LITE
LIVE PREVIEW

Gold Fields Australia Site Visit: Granny Smith Gold Mine STUART - - PowerPoint PPT Presentation

Gold Fields Australia Site Visit: Granny Smith Gold Mine STUART MATHEWS STUART MATHEWS General Manager 16 th July 2014 Forward looking statements Certain statements in this document constitute forward looking statements within the meaning


slide-1
SLIDE 1

Gold Fields Australia Site Visit: Granny Smith Gold Mine

STUART MATHEWS STUART MATHEWS General Manager

16th July 2014

slide-2
SLIDE 2

Forward looking statements

Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. In particular, the forward looking statements in this document include among others those relating to the Damang Exploration Target Statement; the Far p g g g g p g Southeast Exploration Target Statement; commodity prices; demand for gold and other metals and minerals; interest rate expectations; exploration and production costs; levels of expected production; Gold Fields’ growth pipeline; levels and expected benefits of current and planned capital expenditures; future reserve, resource and other mineralisation levels; and the extent of cost efficiencies and savings to be achieved. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa Ghana Australia Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly taxation and environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; the availability and cost of raw and finished materials; the cost of energy and water; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS and other occupational health risks experienced by Gold Fields’ employees. These forward looking statements speak only as of the date of this document. Gold Fields undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.

2

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-3
SLIDE 3

Granny Smith Gold Mine

Introduction: Location

  • 100% Gold Fields owned

Introduction: Location

  • Map of site/tenement position
  • Show pits, plants, shafts etc
  • Located in the Eastern Goldfields Province of
  • Size of tenements etc

the Archaean Aged Yilgarn Craton

  • 950 km NE by sealed road from Perth
  • 400 km NNE by sealed road from Kalgoorlie

3

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-4
SLIDE 4

Granny Smith Gold Mine

Introduction: Site Orientation

  • Granny Smith mill and village located 23 km S of

Laverton

Introduction: Site Orientation

  • Wallaby underground mine located 15 km WSW of

Granny Smith mill.

  • 455.2 square km granted tenements.
  • 111.1 square km tenement applications.
  • 186 9 square km miscellaneous licences
  • 186.9 square km miscellaneous licences.
  • Tenements focused on the Laverton Tectonic zone, 30

km north and south of the Granny Smith mill including the NE of Lake Carey

4

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-5
SLIDE 5

Granny Smith Gold Mine

Introduction: History

  • 1979:

Granny Smith and Goanna deposits discovered

  • 1989:

Granny Smith JV (60% Placer Pacific Ltd, 40%

Introduction: History 1989-2013 Production: Total Granny Smith Project Produced Oz 6 7 Moz

Delta Gold NL) commenced open pit mining mining at Granny Smith

  • 1990:

First gold poured in 1990

Produced Oz - 6.7 Moz OP Produced Oz – 5.5 Moz

(Granny Smith, Sunrise, Wallaby, Keringal, and Minor Pits)

1990: First gold poured in 1990

  • 1994:

Open pit production from Keringal Jubilee and Sunrise open pits

Pits)

UG Produced Oz – 1.2 Moz

(Wallaby)

  • 1998:

Wallaby deposit discovered

  • 2001:

Open pit mining commenced at Wallaby 2005: Wallaby underground mining commenced

  • 2005:

Wallaby underground mining commenced

  • 2006:

Barrick Gold purchased 100% of PDG

  • Oct 2013: Gold Fields purchases Granny Smith as

p y part of Yilgarn South acquisition

5

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-6
SLIDE 6

Granny Smith Gold Mine

Introduction: Historical Production Introduction: Historical Production

8 600

ED

Granny Smith Mined Ounces Source History

5 6 7 400 500

OUNCES MINE CES (Koz)

2 3 4 200 300

TIVE TOTAL O (Moz) MINED OUNC

  • 1

2

  • 100

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

CUMULAT ANNUAL M

Open Pit Oz Mined Underground Oz Mined Cumulative Oz Mined 6

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

2013 LOM = 6 years (1.2 Moz at US$1,350)

slide-7
SLIDE 7

Granny Smith Gold Mine

Key Management Team Key Management Team

7

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-8
SLIDE 8

Granny Smith Gold Mine

Key Management Team

  • General Manager – Stuart Mathews

̵ Strong mining and project background in numerous commodities MSc in Geology

Key Management Team

̵ MSc in Geology ̵ 22 years experience both locally and internationally

  • Manager Mineral Resources – Gary Sparks

Manager Mineral Resources Gary Sparks ̵ Strong exploration and production background in both underground and open pit mining ̵ BSc Geology, MSc Exploration and Mining Geology ̵ 29 years experience in the Eastern Goldfields region, Eastern Australia and PNG

  • Processing Manager – Wayne Gaiter

̵ Operations management and processing background 25 years experience in the industry ̵ 25 years experience in the industry

  • Mining Manager – Andrew Cooper

g g p ̵ Experienced in underground mining, predominantly large scale operations ̵ Honours in Mining Engineering ̵ 15 years experience with almost 5 years at Granny Smith

8

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-9
SLIDE 9

What did we buy?

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-10
SLIDE 10

Granny Smith Gold Mine

What Did We Buy? POSITIVES What Did We Buy? CHALLENGES

  • Granny Smith world class gold mining
  • peration
  • Processing plant, ageing infrastructure and

equipment integrity

  • A dynamic and results driven management

team

  • Mill Capacity not utilised
  • Exploration spend required to realise
  • Great ore body with outstanding exploration

potential

  • Exploration spend required to realise

exploration potential

  • A mature and well-functioning mine site with

highly experienced mining personnel

10

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

A Great Acquisition With Significant Upside

slide-11
SLIDE 11

Granny Smith Gold Mine

Resources & Reserves and Main Ore Bodies

Wallaby Ore Body

Mineral Resources

  • Open Pit – 27.6 Mt @ 1.33 g/t for 1.18 Moz

Resources & Reserves and Main Ore Bodies

Wallaby Ore Body

Z 250

  • Underground – 8.5 Mt @ 7.54 g/t for 2.06 Moz

Mineral Reserves Zone 60 Zone 250 Zone 80 Zone 70 Mineral Reserves

  • Underground – 4.1 Mt @ 6.34 g/t for 838 Koz
  • +15% on 2012 ounces post depletion (+109 Koz)

Zone 90 Current Mining Areas

  • Z70 – Limited stoping and development

Zone 100

  • Z70 – Limited stoping and development
  • Z80 – Main production area
  • Z90 – Stoping and development

Zone 110-150 Zone 100

  • Z100 – Development with 1st stoping in Qtr 4 2014
  • Proven
  • Probable
  • Inferred
  • Potential

11

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

Mine remains open at depth & has lateral potential – limited only by present drilling

slide-12
SLIDE 12

Granny Smith Gold Mine

Mining Methods Mining Infrastructure and Equipment: Wallaby Underground:

  • Single decline truck haulage from a portal in the

Mining Methods, Mining Infrastructure and Equipment:

Inclined Room&Pillar Wallaby open pit

  • Ramp Gradient = 1 : 7
  • Decline and Truck Access Profile

(5 2m wide x 5 7m high)

4.6m 15m 4.6m LIRP1 - 4.6 x 4.6m with Longhole Stope 15m wide : 4.6m 15m 4.6m 4.6m 15m 4.6m LIRP1 - 4.6 x 4.6m with Longhole Stope 15m wide :

Mined Stopes Legend To be mined Stopes Mined Stopes Legend To be mined Stopes Mined Stopes Legend Mined Stopes Legend To be mined Stopes “Updip”

̵ (5.2m wide x 5.7m high)

  • Ore Drive Profile

̵ (4.6m wide x 4.6m high)

  • Inclined Room & Pillar (IRP)

4.6m 20m Wide Longhole Stope >10˚ 20m 5m 15m 4.6m 20m Wide Longhole Stope >10˚ 20m 5m 15m 4.6m 20m Wide Longhole Stope >10˚ 20m 5m 15m

Active Stopes Ore drives Mining direction p Active Stopes Ore drives Mining direction p Active Stopes Ore drives Mining direction Active Stopes Ore drives Mining direction p

Inclined Room & Pillar (IRP)

̵ Suitable for moderately dipping orebody (10°-35°), and moderate width zones (4-6m)

  • Transversal Long Hole Stope (TLHS)

Suitable for thicker zones (6-15m) under varying dip

Transversal Long Hole Stope

̵ Suitable for thicker zones (6-15m) under varying dip conditions.

  • Main Equipment:

̵ 4 x Atlas Copco Twin Boom Jumbos 3 x Atlas Copco Production Drills ̵ 3 x Atlas Copco Production Drills ̵ 4 x Cat 2900 Loaders ̵ 3 x Cat 1700 Loaders (Remotes) ̵ 8 x Atlas Copco MT6020 UG Trucks

12

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-13
SLIDE 13

Granny Smith Gold Mine

Processing Plant

  • Primary Jaw and Secondary crushing circuit
  • 3.4 MW SAG Mill

Processing Plant

  • 3.8 MW Ball Mill
  • 6 x Leaching and 6 x CIP circuits

Thi k t il t t t

  • Thickener, tails retreatment
  • 3.5 Mtpa throughput capacity
  • Currently campaign milling at 1.5 Mtpa
  • Capital extensive program for 2014
  • Steel and concrete remediation
  • Replacement/ modification cyclone feed pumps
  • Refurbish gold and elution circuits
  • Tank refurbishment leach and CIP

Tank refurbishment leach and CIP

13

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-14
SLIDE 14

Granny Smith Gold Mine

Other Site Infrastructure

  • Camp

̵ Contractor managed, Catercare Services

Other Site Infrastructure

̵ Capacity of 640 modern rooms ̵ Double story Gym and Squash Courts ̵ Limestone enclosed Bar and state of the art Limestone enclosed Bar and state of the art

  • utdoor projector

̵ Digital TV and Foxtel WIFI th h t C ̵ WIFI throughout Camp

  • Flights

̵ Dual contracts between Skippers & Cobham to enhance cost saving flexibility 1 9km certified unsealed Aerodrome ̵ 1.9km certified unsealed Aerodrome

14

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-15
SLIDE 15

Why did we buy?

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-16
SLIDE 16

Granny Smith Gold Mine

Our Due Diligence View

  • Met the GFI key metric of 15% FCF margin at a gold price of US$1,300/oz with key opportunities:

̵ Optimise workforce Our Due Diligence View ̵ Optimise capital spend including development rates ̵ Improve mining recovery and dilution ̵ Improved grade control models p g ̵ Optimise mill campaign production profile to maintain consistent throughput and improve recovery

  • Other opportunities that we saw:
  • Other opportunities that we saw:

̵ Optimise stores ̵ Mill improvements including gravity recovery

  • Potential Synergies:

̵ Regional laboratory for Gold Fields sites

  • Resource and Reserve Growth

16

Potential To Be A Gold Fields Franchise Asset

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-17
SLIDE 17

Granny Smith Gold Mine

Our Due Diligence View Our Due Diligence View

Zone 250 Zone 60 Zone 70 Z 80

Global Resource

Un-depleted

Depth 1.8km

Intrusive

Zone 80 Zone 90

3.58Mt @ 8.50g/ t for 980Koz (3.0g/t cut) 3 84Mt @ 8 88g/ t for

Zone 100 Z 120 Zone 110

3.36Mt @ 9.04g/ t for 3.84Mt @ 8.88g/ t for 1.1Moz (3.18g/t cut)

Zone 100 South– Target

Zone 120

980Koz (3.33g/t cut) 0.41Mt @ 6.26g/t for 82Koz (3.33g/t cut)

Zone 130 – Target Zone 140 – Target Zone 150 – Target

17

View to South-West

Zone 140 Target

slide-18
SLIDE 18

Granny Smith Gold Mine

Our Due Diligence View

  • Located in highly endowed province
  • >20 Moz in the Laverton Region incl:

Our Due Diligence View

  • >20 Moz in the Laverton Region incl:

̵ Granny Smith ~ 2.5 Moz ̵ Wallaby ~ 8 Moz ̵ Sunrise ~ 10 Moz

  • 2 World Class deposits on the margin of

Lake Carey in Wallaby and Sunrise Lake Carey in Wallaby and Sunrise

  • Lake Carey grossly under-explored:

̵ No significant exploration since 2005) ̵ Exploration to date not systematic

  • Brown field potential under existing pits:
  • Brown field potential under existing pits:

̵ Granny Smith ̵ Keringal

18

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-19
SLIDE 19

What have we done since the acquisition?

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-20
SLIDE 20

Granny Smith Gold Mine

Production and AISC

90 000 $1 600

Production and AISC

Barrick Gold Fields Acquisition

70 000 80 000 $1 200 $1 400

Barrick Gold Fields Acquisition

40 000 50 000 60 000 $800 $1 000 C $USD/Oz 20 000 30 000 40 000 $400 $600 ASC

  • 10 000

20 000 $0 $200 $ 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 Gold Sold (oz) AISC (US$/oz) 20

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-21
SLIDE 21

Granny Smith Gold Mines

Major Initiatives Delivering Results

Improvement focus Actual achieved Actual Achieved +/- Ozs Variance since Acquisition Overall Impact

Major Initiatives Delivering Results

Improved process plant recovery Smaller cyclones, re- work plumbing & ball mill discharge +4% plant recovery +14,500 oz in 2014 Extra oz from same

  • re tonnes.

Reduced Cost per oz g p Internal dilution reduction +0.3 g/t gold grade increase +14,500 oz As above Process plant stability Maintaining campaign milling @ 350 tph feed rate +15,000 tonnes mill feed +2,600 oz in Q1 2014 As above Grade control remodeling Infill drilling, development assaying, mapping Overall Gold grade increase + additional oz Remodeling still work in progress. Completion in Q3 & As above Completion in Q3 & delivering results in Q4

21

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

Applying the Gold Fields Franchise

slide-22
SLIDE 22

Granny Smith Gold Mine

Key Operating Metrics Key Operating Metrics

KPI’s Unit Q4 2013 Q1 2014 Safety LTI’s 1 Ore mined - UG kt 362 405 Mined grade - UG g/t 6.34 5.70 Ore processed kt 330 401 Head grade g/t 6.21 5.69 Recovery % 90 8 91 1 Recovery % 90.8 91.1 Gold sold Koz 62.2 66.5 Revenue US$m 79.2 86.6 Operating cost US$m 46.9 49.8 Operating Profit US$m 32.3 36.8 Capital expenditure US$m 8.1 7.1 AISC US$/oz. 888 910

22

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-23
SLIDE 23

Granny Smith Gold Mine

Executive Summary

All measures designed to improve AIC and production

Overall Management:

Executive Summary

̵ Significant change in operating culture since acquisition ̵ Strong Management Team and disciplined in planning ̵ Re-structure of business to fit Gold Fields strategy for 2014 & beyond Mining Improvements: Mining Improvements: ̵ Optimising mine recovery of the resource ̵ Dilution control through drill & blast focus in design & implementation ̵ Revised mining methodology for flatter stopes ̵ Doing the basics right Processing Improvements: ̵ Increased ounces with quality of mined ore tonnes ̵ De-risking the process plant upgrade remediation Recovery gains 4% plant optimization ̵ Recovery gains 4% plant optimization ̵ Not filling the plant – Optimizing gold production ̵ Campaign milling vs continuous milling Strong Life-Of-Mine: g ̵ Limited only by drilling & exploration ̵ Doubling of exploration spend over 2013 to Au$6M (excluding resource conversion drilling)

23

One Of The Premier Gold Mines In Western Australia

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-24
SLIDE 24

OHS & Safety and Sustainability

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-25
SLIDE 25

Granny Smith Gold Mine

Safety Performance 12 Month Moving Average Frequency Rates Per Million Manhours

(TRIFR = Lost Time Injury + Restricted Work Injury + Medically Treated Injury per Million Manhours Worked)

Safety Performance

16.57 16.04 16.16 15.14 14 16 16 18 14.16 13.23 13.55 11.88 12.13 12 14 6 8 10 Target Gold Fields Management Control

3 1 2 1 1 1 1 1

2 4 6

1 1 1 1 1 1

2 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14

No of injuries 12 Month Moving Average Frequency Rate Per Million Manhours Worked Target

25

  • No. of injuries

12 Month Moving Average Frequency Rate Per Million Manhours Worked Target

If We Cannot Mine Safely, We Will Not Mine

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-26
SLIDE 26

Safety Focus

Safety Initiatives in 2104

  • Task Observation Performed by Supervisors (TOPS) – 500 discussions per month

Safety Initiatives in 2104

  • Socialising safety in the field
  • Participation by all supervisory staff

p y p y

  • Strong culture of hazard & incident reporting
  • Internal Leading Indicator Environmental, Health, & Safety Audits – Quarterly (bonus parameter)
  • Employee Health & Wellbeing Program improvements in 2014
  • Reduction in diesel particulate emissions – tracked against an internal target with the majority of

exposures achieving the target All UG equipment have filters installed exposures achieving the target. All UG equipment have filters installed

  • New Vital Behaviours Program – safety initiative in 2014

26

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-27
SLIDE 27

Granny Smith Gold Mine

Human Resources

Description 2013 2014

Human Resources

Employees in service 367 392 Contractors 85 95 TE+C 452 487 T i d/ TE+C 1007 864 Tonnes mined/ TE+C 1007 864 Oz Sold / TE+C 51 58

27

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-28
SLIDE 28

Granny Smith Gold Mine

Environment and Community Environment and Community

  • Pursuing ISO 14001 certification

̵ First stage audit completed June 2014 2014 ̵ No non-conformances raised ̵ Second stage and certification scheduled for Q4 2014 scheduled for Q4 2014

  • Full compliance to the Cyanide Code
  • Effective community engagement programmes in place

28

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

  • Support social wellbeing through the Laverton Leonora Cross Cultural Association
slide-29
SLIDE 29

Granny Smith Gold Mine

Top Priorities Top Priorities

Priorities 1 Ensure the long term availability of suitable sources of water su e t e o g te a a ab ty o su tab e sou ces o ate 2 Deliver an exploration strategy to realise the full Granny Smith potential 3 Maintain the integrity of the processing facility 4 Ensure business continuity through the availability of critical spares and maintenance of equipment

29

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-30
SLIDE 30

Geology

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-31
SLIDE 31

Granny Smith Gold Mine

Regional Geology Regional Geology

  • Deposits hosted in the meta-sedimentary rocks in the

Laverton Tectonic Zone

  • Wallaby and Granny Smith mineralisation is focused

where northerly trending structures interact intrusives ̵ Wallaby deposit hosted in the Wallaby conglomerate, focused at a flexure in the northerly trending Chatterbox Shear ̵ Granny Smith hosted in sandstone (arkose), ironstone and granodiorite where the northerly trending Granny Smith Shear interacts with the trending Granny Smith Shear interacts with the eastern margin of the Granny Smith granodiorite ̵ Minor deposits on northerly trending Child Harold and Keringal Shears

  • Sunrise mineralisation is focused along the north

east trending Sunrise/Carey shear system

31

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

east trending Sunrise/Carey shear system

slide-32
SLIDE 32

Granny Smith Gold Mine

Mine Geology – Wallaby Underground

Area 2013 YE Reserve BCOG Ore (kt) Au (g/ t) Au (koz)

Mine Geology Wallaby Underground

(g/ t) Ore (kt) Au (g/ t) Au (koz)

Z250/60

3.63

106 4.51 15 Z70

3.63

175 4.45 25 Z80

3.76

694 5.87 131 Z90 3.96 1,943 6.24 390 Z100

4.11

1,132 7.28 265

Total 3 94 4 066 6 33 828 Total 3.94 4,066 6.33 828 32

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-33
SLIDE 33

Granny Smith Gold Mine

Simplified Wallaby Genesis

SIMPLIFIED!

North South

Simplified Wallaby Genesis Pipe like Brittle zone

Intrusive Suite

Sub horizontal weakness formed planes formed

Conglomerate host rock

Gold bearing reduced fluids deposit gold l h d dil ti l j

33

along shears and dilational jogs

After Rauert, 2009

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-34
SLIDE 34

Granny Smith Gold Mine

Replacement of Reserves Replacement of Reserves

1,400

K Oz

GSM Wallaby Underground Reserves and Production

1,200 800 1,000 600 200 400 ‐ 2005 2006 2007 2008 2009 2010 2011 2012 2013 Reserves Production Cumulative Production

34

Typical Regenerative Orogenic Geology

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-35
SLIDE 35

Underground Mining

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-36
SLIDE 36

Mining Method

Mining: Typical layout - Zone 90 Mining Mining: Typical layout Zone 90 Mining

36

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-37
SLIDE 37

Granny Smith Gold Mine

Mining: What Are We Doing To Improve?

  • Optimising internal dilution with mining method

Mining: What Are We Doing To Improve?

  • Controlling ore loss through drill and blast methods
  • Reducing overbreak through back analysis and planning guidelines
  • Reducing overbreak through back analysis and planning guidelines
  • Optimising recovered ounces through back analysis and pillar review
  • Paste fill investigations in progress
  • Mine automation options for remote bogging
  • Low profile mining & extraction options – to maximise recovery of resources

Low profile mining & extraction options to maximise recovery of resources

37

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-38
SLIDE 38

Granny Smith Gold mine

Mining: What Are We Doing To Improve? Mining Dilution and Recovery: Z90 N 721 P1

  • 88% recovery of designed tonnes

Mining: What Are We Doing To Improve?

  • 97% recovery of designed ounces
  • 11% overbreak – excellent, considering 85m

combined up-dip spans combined up dip spans

Green = Z80 S816 P2 Stope Red = stope voids

38

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-39
SLIDE 39

Granny Smith Gold Mine

Mining: What Are We Doing To Improve? Mining Dilution and Recovery: Z80 S 816 P2

  • 90% recovery of designed tonnes

Mining: What Are We Doing To Improve?

  • 91% recovery of designed ounces
  • 11% overbreak – much of which continued

from up-dip stope from up dip stope

Green = Z80 S816 P2 Stope Red = stope voids

  • Dual horizontal rise trialled on same

section – eliminated 20m of conceptual development development

39

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-40
SLIDE 40

Granny Smith Gold Mine

Mining: What Are We Doing To Improve? Slot Development Reduction

  • 2nd of 4 trial blind horizontal rises have been

Mining: What Are We Doing To Improve? fired with excellent results

  • Demonstrated that slot drives

up to 12m long can be eliminated up to 12m long can be eliminated

  • 14m and 16m rises to be trialed

40

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-41
SLIDE 41

Granny Smith Gold Mine

Mining: What Are We Doing To Improve? Mining: What Are We Doing To Improve? Recovery of Designed Ounces

  • History of approx 85%-87% mine recovery
  • Focus on technical drilling & blasting to achieve

+90% recovery: ̵ Investigation into dumping technique

  • n longhole rigs to create better

breakout angles at stope extremities breakout angles at stope extremities (where we are experiencing the highest underbreak in our flat stopes) p ) ̵ Subdrilling of stope footwalls ̵ More attention to shaping techniques at design stage to provide more accurate design shape (i.e. rounded corners)

41

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-42
SLIDE 42

Granny Smith Gold Mine

Mining: What Are We Doing To Improve? Planned Dilution

  • Have maintained a minimum cumulative

Mining: What Are We Doing To Improve? reduction in planned dilution of 10% since

  • Nov. 2013 while keeping designed ounces

consistent (i e not dropping ounces to shred

Tonnes

consistent (i.e. not dropping ounces to shred planned dilution)

  • Approval given to trial mining method
  • Approval given to trial mining method

designed to eliminate footwall dilution

  • Utilises the drill rig capability to

innovatively drill & blast the low angle y g stopes without the need for expensive waste development to set up the stope

  • Design and execution of trial to begin

42

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

  • nce model is provided by geology

department.

slide-43
SLIDE 43

Processing

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-44
SLIDE 44

Granny Smith Gold Mine

Processing: Circuit Post Acquisition Review

Assessed 3 Process models

  • 1 Closed Circuit SAG (CCS)

Processing: Circuit Post Acquisition Review

  • 1. Closed Circuit SAG (CCS)
  • Closed circuit SAG, isolate ball mill and cyclone feed pumps and run SAG only on secondary crushed

product.

  • 2. SAG and Ball Mill Closed Circuit (SABC) - reduced power
  • Reduce ball charge in SAG and ball mill, both crushing and mill circuits operate as normal at reduced

tonnes.

  • 3. SABC campaign milling
  • Campaign milling 350 tph SABC Secondary Crushed Feed
  • Campaign milling, 350 tph SABC, Secondary Crushed Feed.

Key assumptions

  • Budgeted throughput reduced to 350tph (from 380-400 tph) to stabilise circuit and optimise recovery

g g p p ( p ) p y

  • Campaigns run for ~16days per month – Opportune maintenance during downtime
  • Owner maintenance crews assist with small capital projects during plant shutdown
  • Reduce capital required for Tank refurbishment (3 Leach Tanks remain offline)
  • Reduced manning from 89 to 69
  • ROM Load and Haul – opportunity remains to reduce Crusher feed costs

44

slide-45
SLIDE 45

Granny Smith Gold Mine

Processing: Additional Information Processing: Additional Information People

  • Operations – stabilised crew levels, skills and training levels improved during 2013

Restructured personnel late 2013 Restructured personnel late 2013

  • Maintenance – reliance on outside contractors reduced, plant equipment knowledge improving

Processing Plant

  • Aged plant (23yrs) with significant areas at risk – Cyclone Tower, CV2A structure, cyclone

feed pumps, spirals, RO plant, tanks Capital Required

  • Structural steel and concrete remediation
  • Leach & CIP Tank refurbishment
  • Ball Mill & SAG mill lube systems

y

  • Grinding Cyclone pumps & piping

Recovery

  • Opportunities for improved Gravity recovery (Upfront) and/or TR circuit modifications
  • Opportunities for improved Gravity recovery (Upfront) and/or TR circuit modifications
  • Process control strategy design for crushing and grinding circuits

45

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-46
SLIDE 46

Granny Smith Gold Mine

Processing: Grade

8.0

Processing Grade

Processing: Grade

7.0 5.0 6.0

g/t

4.0

g

2.0 3.0 0 0 1.0 46 0.0 October November December January February March

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-47
SLIDE 47

Granny Smith Gold Mine

Processing: Recovery

100%

Processing Recovery

Processing: Recovery

96% 98% 92% 94% 88% 90% 84% 86% 80% 82% 84% 47 80% October November December January February March

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-48
SLIDE 48

Exploration

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-49
SLIDE 49

Granny Smith Gold Mine

2014 Exploration – Target Areas

  • 2014 Exploration budget A$12.3M
  • Wallaby and Environs:

2014 Exploration Target Areas

  • Wallaby and Environs:

̵ Resource Drilling ̵ Wallaby Deeps ̵ Structure Reinterpretation ̵ Drill Testing G S ith

Platypus Boomer

  • Granny Smith:

̵ Resource Re-interpretation

  • Lake Carey:

y ̵ Geophysics (Gravity and Sub Audio Magnetics) Target Generation ̵ Target Generation

  • Keringal Targets:

̵ Geophysics (Gravity)

49

p y ( y) ̵ Drill testing

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-50
SLIDE 50

Granny Smith Gold Mine

Section Highlighting 2014 Wallaby Drilling Section Highlighting 2014 Wallaby Drilling

2013 MY Resource Wireframes vs 2014

Zone 250 Zone 60 Zone 70E Zone 70

Z100 I fill d E t i

Planned Drilling

Zone 70E Zone 70 Zone 80 Zone 90

Z100 Infill and Extensions Resource Drilling Zone 90 Extensions

Zone 100

Resource Drilling

Phase 2 – 25 m infill

Z100 Step-Out Inferred Resource Drilling

Phase 2

Zone 120 Zone 110

Z110-Z120 Inferred Resource Drilling Z130-Z150 Exploration Drilling

50

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-51
SLIDE 51

Granny Smith Gold Mine

Zone 90-100 Resource Definition: 2014 Q1 Program Progress Zone 90 100 Resource Definition: 2014 Q1 Program Progress

Zone 80 Zone 90

400 m

Z 100 Zone 90 Q4 Priority Z90 Q1-Q3 Priority Z100 Zone 100

Hole ID From To Length Grade Zone Hole ID From To Length Grade Zone

  • Detailed Resource Definition drill

Zone 100 Significant Intercepts Q1 (>14 G-M) Q1 Q3 Priority Z100

Hole ID From To Length Grade Zone WB2858UD 168.03 173.19 5.16 19.00 Z100 WB2860UD 163.90 168.30 4.40 5.42 Z100 WB2861UD 174.14 183.58 9.44 6.76 Z100 Main WB2862UD 167.16 170.27 3.11 5.94 Z100 Main 200.83 202.03 1.20 12.20 Z100 FW WB2882UD 241.77 243.64 1.87 11.35 Z100 HW Hole ID From To Length Grade Zone WB2897UD 151.10 156.10 5.00 4.86 Z100 162.82 166.75 3.93 10.62 Z100 190.51 195.92 5.41 5.36 Z100FW WB2898UD 156.43 166.00 9.57 6.18 Z100 175.64 177.96 2.32 6.75 Z100 WB2899UD 155.33 162.30 6.97 10.06 Z100

  • Detailed Resource Definition drill

schedule created early Q1

  • Areas of highest potential and LOM

necessity prioritised in schedule

WB2892UD 262.71 263.72 1.01 17.80 Z100 HW WB2863UD 172.75 177.47 4.72 10.48 Z100 180.43 181.13 0.70 41.21 Z100 WB2864UD 167.00 172.41 5.41 5.03 Z100 WB2866UD 167.00 167.79 0.79 24.70 Z100 WB2867UD 164.64 167.07 2.43 12.34 Z100 221 90 226 69 4 79 11 63 Z100FW 166.00 172.48 6.48 9.57 Z100 WB2933UD 165.29 169.43 4.14 17.78 Z100 WB2808UD 126.69 127.48 0.79 59.10 Z100 132.86 134.30 1.44 51.84 Z100 WB2821UD 190.21 194.25 4.04 12.87 Z100 217.30 220.68 3.38 5.20 Z100HW WB2840UD 190 30 193 46 3 16 6 71 Z100

  • Zone 100 resource definition drilling

generally confirming or upgrading the existing resource

51

221.90 226.69 4.79 11.63 Z100FW 231.75 236.03 4.28 8.80 Z100FW 242.07 244.45 2.38 6.04 Z100FW WB2868UD 168.18 169.30 1.12 20.10 Z100 185.61 193.17 7.56 9.77 Z100 WB2840UD 190.30 193.46 3.16 6.71 Z100 WB2848UD 198.31 199.97 1.66 11.94 Z100 WB2883UD 245.52 252.18 6.66 25.86 Z100 WB2884UD 202.88 207.89 5.01 6.98 Z100HW 231.31 235.33 4.02 5.06 Z100 2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-52
SLIDE 52

Granny Smith Gold Mine

Zone 100 Phase 2 Step-Out Exploration: 2013 Results and 2014 Program Plan

2014 Planned Drill Holes

Zone 100 Phase 2 Step Out Exploration: 2013 Results and 2014 Program Plan

WBD012UD

7.33m @ 7.10g/t

WBD013UD

10.5m @ 5.37g/t

WB2790UD

1.77m @ 9.10g/t 3 89m @ 4 75g/t

WBD001UD

8m @ 21.63g/t

WBD002UD

10.9m @ 5.29g/t 3.89m @ 4.75g/t

2014 TARGET AREA

52

N

100m Grid

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-53
SLIDE 53

Granny Smith Gold Mine

Zone 100 Phase 2 Step-Out Exploration: 2014 Program Progress

2014 Completed Drill Holes

Zone 100 Phase 2 Step Out Exploration: 2014 Program Progress

NSA = No Significant

  • Seven drill holes for 2,992m completed in Q1 2014

WBD019UD

3.40 m @ 14.06 g/t

@ Significant Assay WBD020UD

3.05m @ 8.72g/t

@Z100 WBD021UD

4.56 m @ 5.65 g/t

@Z100 @Z100

WBD015UD

CONFIRMED RESOURCE EXTENSION AREA

WBD018UD

6.24m @ 14.50g/t

@Z100

WBD015UD Anomalous Z90 alteration 1.77m @ 8.23g/t Z90 NSA @ Z100

N

@ g

@Z100

WBD016UD Strongly Mineralised IMZ WBD017UD Anomalo s Z90 alteration

53

N

100m Grid

Strongly Mineralised IMZ

4.34m @ 15.77g/t below

Z100 Anomalous Z90 alteration

4.86m @ 4.13g/t Z90

NSA @ Z100

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-54
SLIDE 54

Wallaby Z110-120: 2013 Status

Granny Smith Gold Mine

Plan View 100m Grid WBD010UD

Wallaby Z110-120: 2013 Status Resource Drilling of Zones 110/120

  • Increase Z110/120 from 78 Koz to 1 0 Moz

WBD012UD WBD011UD 2.85m @ 10.04g/ t WBD009UD 2 8m @ 4 32g/t 2.1m @ 5.0g/t

Zone 110 80Koz Resource 300m x 150m

  • Increase Z110/120 from 78 Koz to 1.0 Moz
  • Add Z110/120 back into business plan

WBD012UD 17.8m @ 6.74g/ t Including 5.1m @ 13.2g/t 2.8m @ 4.32g/t Result Confirmed Resource Model WBD013UD 10.4m @ 5.04g/ t WBD014UD

Z110 Resource/Drilling Status (June 13)

10.4m @ 5.04g/ t WBD014UD 9.2m @ 7.3g/ t Plan View 100m Grid WBD011UD 3.1m @ 5.24g/ t WBD009UD 3 45m @ 11 98g/ t WBD010UD 2.0m @ 4.4g/t

View North View North WBD013UD

5.0m @ 10.2g/ t 5.9m @ 6.0g/ t WBD012UD 11.5m @ 4.84g/ t 3.45m @ 11.98g/ t

2013 Resource Additions

WBD014UD 5.0m @ 12.9g/ t 4 1m @ 6 2g/ t

54

2010 MOY Resource plus Drill Holes

Additions

4.1m @ 6.2g/ t

Z120 Resource/Drilling Status (June 13)

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-55
SLIDE 55

Granny Smith Gold Mine

Wallaby Z110/120 Q1 Resource Update y p

  • “Potential” Resource increases of +300 koz Inferred

resources plus 50 koz Potential resources (up from

Zone 250/60

December 2013 Undepleted Global Resource of 78koz for Z110 only).

  • Resource to be updated in Q3 following completion of

Zone 80 Zone 70

exploration drilling

Zone 90 Zone 100 Zone 110-120

55

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-56
SLIDE 56

Granny Smith Gold Mine

Zone 130 - Zone 150 Exploration: 2014 Q1/2 Program Progress Zone 130 Zone 150 Exploration: 2014 Q1/2 Program Progress

  • Six drill holes to Z150 planned

for 2014 – first complete, d i iti

Zone 250 Zone 60 Zone 70 Z 80

second in awaiting assays

Depth 1.8 Intrusive

Zone 80 Zone 90

Depth 1.8 km

Zone 100 Zone 120 Zone 110

First deep drill hole intercepted two zones of mineralisation below Z120

Zone 130 - 1.44m @ 13.11 g/ t Zone 140 – 2.54m @ 2.94 g/ t

Revised Target Area Initial Target Area

56

View to South-West

WBD022UD – First 2014 Deep DH

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-57
SLIDE 57

Granny Smith Gold Mine

Zone 130 - Zone 150 Exploration: 2014 Q1/2 Program Progress Zone 130 Zone 150 Exploration: 2014 Q1/2 Program Progress

Zone 250 Zone 60 Zone 70 Z 80

Intrusive

Zone 80 Zone 90

Depth 1 8

Zone 100 Z 120 Zone 110

Depth 1.8 km

8.0m @ 4.31 g/ t 2.63m @ 5.81 g/ t

Zone 120

2.7m @ 6.8 g/ t (15.3m @ 3.55g/ t) 2.82m @ 6.3 g/ t 1.44m @ 13.11 g/ t 2.54m @ 2.94 g/ t 9.36m @ 12.21 g/ t 1.83m @ 41.55 g/ t ( g )

57

View to South-West

WBD031UD WBD022UD

g @ g/ 2.5m @ 8.58 g/ t

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-58
SLIDE 58

Granny Smith Gold Mine

Zone 130 - Zone 150 Exploration: 2014 Q1/2 Program Progress Zone 130 Zone 150 Exploration: 2014 Q1/2 Program Progress

Zone 250 Zone 60 Zone 70 Z 80

Intrusive

Zone 80 Zone 90

Depth 1 8

Zone 100 Z 120 Zone 110

Depth 1.8 km

8.0m @ 4.31 g/ t 2.63m @ 5.81 g/ t

Zone 120

2.7m @ 6.8 g/ t (15.3m @ 3.55g/ t) 2.82m @ 6.3 g/ t 1.44m @ 13.11 g/ t 2.54m @ 2.94 g/ t 9.36m @ 12.21 g/ t 1.83m @ 41.55 g/ t ( g )

58

View to South-West

WBD031UD

g

WBD022UD

@ g/ 2.5m @ 8.58 g/ t

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-59
SLIDE 59

Granny Smith Gold Mine

Keringal Exploration Program

400m Keringal Open-pit

KPGRCD001 MWD056

S N

̵ 16 km SE of Granny Smith ̵ High grade south plunging shoot beneath Keringal pit.

g p g

350m 300m

30m @ 1.34 g/t Au

̵ Targeting shallow high grade shoot ~250 Koz. ̵ Potential for repeats along

250m MAFIC VOLC.

20m @ 15.27 g/t Au

strike off the Keringal Shear

200m 150m EOH 306.1m

N

100m 50m 50m ULTRAMAFIC

13m @ 7.7 g/t Au

EOH 474.7m

Section

S

59

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-60
SLIDE 60

Granny Smith Gold Mine

Platypus Exploration Program Exploration drilling of up-dip projection of Wallaby Lodes to Orc mineralisation yp p g ̵ 1,800 m RC/diamond drilling ̵ 3 drill holes 1 2 M t t ̵ 1-2 Moz target

A’ TARGET AREA A

60

2010 MOY Resource plus Drill Holes

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

Meters

slide-61
SLIDE 61

Granny Smith Gold Mine

Boomer Exploration Program p g ̵ Exploration drilling for Wallaby type deposit beneath Wedge Fault mineralisation ̵ 1,000 m RC/diamond drilling 2 drill holes ̵ 2 drill holes ̵ 1-2 Moz target

Target area Approximately

MERCD0070

Approximately 300m from surface

  • H. Platt 2013

61

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-62
SLIDE 62

Granny Smith Gold Mine

Lake Carey Geophysics (Detailed Mag & SAM Surveys) y p y ( g y )

Granny Smith

  • Generation of drill

targets on Lake Carey

Orc: Up dip projection of Wallaby Lodes Wallaby Tail Pipe:

  • Review previous

(Placer) exploration

  • Complete

N trending shear and intrusive Granny Smith Style Target

Complete detailed gravity

  • Targeted SAM

surveys

Dallas South: 9m @ 3.22g/t Red October Style Target Alabama: 11m @ 1.84g/t 10m @ 0.92g/t 5m @ 2.55g/t Raw Prawn: 10m @ 1.22g/t Wallaby Style Target 10m 1.60 g/t Wallaby Style Target Providence: S i St l T t Sunrise Sunrise Style Target

10 k

62

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

10 km

slide-63
SLIDE 63

What are our future expectations?

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

slide-64
SLIDE 64

Granny Smith Gold Mine

  • A world class GFI franchise asset with an excellent strategic fit to the Group
  • Ore body support for consistent Reserve replacement and growth from lateral and depth extensions
  • Ore body support for consistent Reserve replacement and growth from lateral and depth extensions
  • We can see a life of at least 10 years, with upside potential for more

The Granny Smith future expectation is:

  • Deliver stable and low risk operations
  • Deliver a consistent 15% FCF margin on the current orebody
  • Deliver on significant near mine and regional exploration potential
  • Deliver on site full potential
  • Deliver long life
  • Deliver long life

64

2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014

A World Class GFI Franchise Asset

slide-65
SLIDE 65

Gold Fields Australia – Granny Smith Gold Mine

STUART MATHEWS STUART MATHEWS General Manager

16th July 2014