Gold Fields Australia Site Visit: Granny Smith Gold Mine STUART - - PowerPoint PPT Presentation
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
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.
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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)
Granny Smith Gold Mine
Key Management Team Key Management Team
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
What did we buy?
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
A Great Acquisition With Significant Upside
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
Mine remains open at depth & has lateral potential – limited only by present drilling
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
Why did we buy?
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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Potential To Be A Gold Fields Franchise Asset
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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View to South-West
Zone 140 Target
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
What have we done since the acquisition?
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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$/oz) 20
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
Granny Smith Gold Mines
Major Initiatives Delivering Results
Improvement focus Actual achieved Actual Achieved +/- Ozs Variance since Acquisition Overall Impact
Major Initiatives Delivering Results
Improved process plant recovery Smaller cyclones, re- work plumbing & ball mill discharge +4% plant recovery +14,500 oz in 2014 Extra oz from same
- re tonnes.
Reduced Cost per oz g p Internal dilution reduction +0.3 g/t gold grade increase +14,500 oz As above Process plant stability Maintaining campaign milling @ 350 tph feed rate +15,000 tonnes mill feed +2,600 oz in Q1 2014 As above Grade control remodeling Infill drilling, development assaying, mapping Overall Gold grade increase + additional oz Remodeling still work in progress. Completion in Q3 & As above Completion in Q3 & delivering results in Q4
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
Applying the Gold Fields Franchise
Granny Smith Gold Mine
Key Operating Metrics Key Operating Metrics
KPI’s Unit Q4 2013 Q1 2014 Safety LTI’s 1 Ore mined - UG kt 362 405 Mined grade - UG g/t 6.34 5.70 Ore processed kt 330 401 Head grade g/t 6.21 5.69 Recovery % 90 8 91 1 Recovery % 90.8 91.1 Gold sold Koz 62.2 66.5 Revenue US$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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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)
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One Of The Premier Gold Mines In Western Australia
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
OHS & Safety and Sustainability
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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- 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
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
- Support social wellbeing through the Laverton Leonora Cross Cultural Association
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
Geology
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
east trending Sunrise/Carey shear system
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
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
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along shears and dilational jogs
After Rauert, 2009
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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Typical Regenerative Orogenic Geology
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
Underground Mining
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
Mining Method
Mining: Typical layout - Zone 90 Mining Mining: Typical layout Zone 90 Mining
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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)
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
- nce model is provided by geology
department.
Processing
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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
Exploration
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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)
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p y ( y) ̵ Drill testing
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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
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
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
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
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
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
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
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
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
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
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
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
What are our future expectations?
2014 Analyst Visit - Granny Smith Gold Mine | Stuart Mathews| July 2014
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