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Gold Fields Australia Site Visit: St Ives Gold Mine GRAEME OVENS - - PowerPoint PPT Presentation

Gold Fields Australia Site Visit: St Ives Gold Mine GRAEME OVENS GRAEME OVENS General Manager 15 th July 2014 Forward looking statements Certain statements in this document constitute forward looking statements within the meaning of


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Gold Fields Australia Site Visit: St Ives Gold Mine

GRAEME OVENS GRAEME OVENS General Manager

15th July 2014

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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.

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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SLIDE 3

St Ives Gold Mine

Location

  • Located in the Eastern Goldfields Province of the

Location

Archaean Aged Yilgarn Craton

  • 620km from Perth
  • 100km South of Kalgoorlie

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

100% Gold Fields Owned

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SLIDE 4

St Ives Gold Mine

Location

  • 100km South of Kalgoorlie

Location

  • Site extends from 5 to 25 km SSW of Kambalda
  • Site covers 127,556 hectares of granted tenements
  • Active mining areas total about 2,000 hectares
  • Tenements located within the Kambalda Domain of

the Norseman-Wiluna Belt

  • The Kambalda Domain is bounded by the Boulder

y Lefroy Fault and Zuleika Shear

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

Australia’s Most Prolific Gold District

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SLIDE 5

St Ives Gold Mine

A Brief History A Brief History

  • 1897: Gold first discovered at Red Hill 1897
  • 1930’s: Mining ceased
  • 1966: WMC discovered Nickel
  • 1970’s: Explored for gold
  • 1980: Victory Gold Mine discovered
  • 1988: First dedicated gold plant built
  • 2001: Gold Fields acquired St Ives from WMC

f

  • 2004: New Lefroy Mill commissioned
  • 2006/2007: Athena and Hamlet discovered

2005 N t di d

  • 2005: Neptune discovered
  • 2012: Invincible discovered

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

An Iconic Western Australia Mining Camp

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SLIDE 6

St Ives Gold Mine

Historical Production

  • 1980: Commercial Gold Production Commenced
  • 2010: 10 Moz Milestone Achieved

Historical Production

  • 2013: 120 Mt @ 3.0 g/t Au for 11.6 Moz

St Ives Mined Ounces Source History

12 14 600 700 NED (Moz) Millions Koz

St Ives Mined Ounces Source History

WMC 5.1 Moz Gold Fields 6.9 Moz

6 8 10 300 400 500 TAL OUNCES MI MINED OUNCES 2 4 100 200 UMULATIVE TOT ANNUAL M 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CU YEARS Underground Oz Mined Open Pit Oz Mined Cumulative Oz Mined

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

Outstanding and Reliable Resource To Reserve Conversion History

Underground Oz Mined Open Pit Oz Mined Cumulative Oz Mined

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SLIDE 7

St Ives Gold Mine

Continued Capital Investment since Gold Fields took Ownership Continued Capital Investment since Gold Fields took Ownership Discovery and Development of New Mines

  • Underground

Major Capital Investments

  • Lefroy Mill (US$125m)

̵ Athena (Discovery cost of US$61/oz) ̵ Hamlet (Discovery cost US$64/oz) ̵ Cave Rocks (Discovery cost US$66/oz)

  • Morgan Stanley Royalty (US$308m)
  • OP Owner Mining Fleet (80m)
  • Support Infrastructure (US$21m)

( y $ )

  • Open Pits

̵ Leviathan Numerous Small Pits

  • Support Infrastructure (US$21m)

Exploration

  • Invincible

S d T d ̵ Numerous Small Pits

  • Speedway Trend
  • 2014 spend US$25 million

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

Well Capitalised

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SLIDE 8

St Ives Gold Mine

Morgan Stanley Royalty

  • Royalty Structure

̵ 10% of gold price above A$600/oz

Morgan Stanley Royalty

350

Cummulative Royalty Saved

g p ̵ 4% NSR Royalty from 3.3 million ounces of production

  • Bought back for A$308 million in August 2009

300

  • Bought back for A$308 million in August 2009
  • Payback of 4.5 years

200 250 150 50 100

  • Paid

H2 2009 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 8

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

Average Royalty Saved A$142/oz

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SLIDE 9

St Ives Gold Mine

Replacement Of Reserves Replacement Of Reserves

7 M Ozs

St Ives Reserves and Production

6 4 5 3 1 2 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Reserves Production Cumm Production 9

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

Typical Regenerative Orogenic Geology

Reserves Production Cumm Production

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St Ives Gold Mine

Senior Management Team Senior Management Team

(From left to right)

John Goodall – Human Resources, Nigel Thomas - Business Improvement, Andrew Whibley - Technology & Capital Projects, Graeme Ovens – General Manager, Dan Worthy – Technical Services, Andrew Kozlowski – Sustainable Development, Monika Gendreau – PA to GM, Trevor McIlwaine – Manager UG Mining, Gary Cormack – Manager Processing, Matt O’Hara – Manager Operations, Malcolm Jolly – Manager MRM, David Cornes – Manager Finance

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

An Experienced and Mature Management Team

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St Ives Gold Mine

Senior Management Team Graeme Ovens – General Manager

  • Strong processing background and experience in both open pit and

Senior Management Team underground mining.

  • Grad Dip Mining Engineering – MAusIMM
  • Experience - 35 years in the Eastern Goldfields region and NSW.

p y g Matthew O’Hara – Manager: Operations

  • Bachelor of Engineering (Mining)
  • Bachelor of Engineering (Mining)
  • WA 1st Class Mine Managers Certificate of Competency
  • Experience: 24 years in mining industry

Malcolm Jolly – Manager: Mineral Resources

  • Broad based mine geology and exploration technical background

g gy p g inclusive of mine planning, geotechnical, metallurgy, strategy and mine economics

  • MSc. Geology, Wits EDP, MAusIMM

11

gy

  • Experience : 33 years in mining industry

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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SLIDE 12

St Ives Gold Mine

Key Management Team: Daniel Worthy – Manager: Technical Services

  • Bachelor of Engineering (Mining)

Key Management Team:

  • Experience: 12 years of operational mining experience in Australia,

Spain & Bulgaria Gareth Cormack – Manager: Processing

  • NHD in Extractive Metallurgy and Diploma in Engineering
  • Management. MMMA
  • Broad based metallurgical technical background

g g

  • Experience: 25 years in various metallurgical positions ranging from
  • perations to management

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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St Ives Gold Mine

Strategic Focus

  • Strategic Plan Implementation- Sustainable Cash generation

̵ Evolving strategy in response to declining gold price & volatility F d li i f h i d t t

Strategic Focus

̵ Focus on delivering a free cash margin and not tonnes

  • Restructuring the cost base

Simplification of a complex multi mine operation ̵ Simplification of a complex multi-mine operation ̵ Maximising margins, business Improvement initiatives with productivity & cost focus ̵ Prudent capital management

  • Production Base

̵ Quality ore delivery, dilution control and head grade ̵ Few large open pits for consistent base load ore production g p p p ̵ 2 to 3 UG mines focused on quality ore

  • Exploration

̵ Highly prospective gold camp with excellent discovery track record ̵ Extensional exploration and growth of existing mines ̵ Brownfields exploration pipeline delivering future quality (high value) resources

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̵ Project feasibility with stringent technical evaluation for new mines to deliver value

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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St Ives Gold Mine

What Makes St Ives Unique?

  • What Makes St Ives Unique

What Makes St Ives Unique?

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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St Ives Gold Mine

Site Layout Site Layout

Kambalda Village

Lake Lefroy

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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St Ives Gold Mine

Site Infrastructure Technology Mineral Resources ̵ 38.4 Mt @ 3.51 g/t for 4.34 Moz Site, Infrastructure, Technology Mineral Reserves ̵ 20.7 Mt @ 3.03 g/t for 2.02 Moz Central CIL Process Plant – 4.8 Mtpa 7 Operating Mines 3 UG Mines ̵ 3 UG Mines

  • Athena
  • Hamlet
  • Cave Rocks
  • Cave Rocks

̵ 4 Open Pits

  • Mars
  • Neptune
  • Neptune
  • Idough
  • Redback

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Road Train Haulage to ROM

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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St Ives Gold Mine

Key Metrics KPI’s US$ Unit Q4 2013 Q1 2014 Safety LTI’s 1 1 Key Metrics Ore mined - UG kt 712 625 Mined grade - UG g/t 3.44 3.97 Ore mined - OP kt 924 214 Mined grade - OP g/t 1.38 1.37 Ore processed kt 1 207 1 282 Ore processed kt 1,207 1,282 Head grade g/t 2.55 2.35 Recovery % 93.3 94.0 Gold sold Koz 99.1 96.6 Operating cost US$m 87.7 76.8 Capital expenditure US$m 26.5 33.3 AISC US$/oz. 1,091 1,291 Revenue US$m 125 1 122 9

17

Revenue US$m 125.1 122.9 Operating Profit US$m 48.3 36.4

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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St Ives Gold Mine

Recent Performance

  • Focus on free cash flow and growing the margin

Recent Performance

1 600 120

Production and AIC

Koz US$/oz

  • No ounces for ounces sake, no marginal mining
  • Optimised contractor vs owner mining

1 200 1 400 100

  • Right-sizing of overhead structure
  • Rationalisation, optimisation and prioritisation of

800 1 000 60 80

capital

  • Site specific cost savings and business process re-

400 600 800 40 60

engineering

200 400 20 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Production AIC 18

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

A Structural Shift In The Cost Base

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St Ives Gold Mine

Geology: Deposit Size & Distribution Geology: Deposit Size & Distribution

  • More than just a single mine

̵ 49 Open Pits to date ̵ 15 UG mines to date

Revenge 3 4 Moz

̵ Junction Area ~2.1 Moz ̵ Argo – Athena - Hamlet ~3.7 Moz ̵ Greater Revenge Area ~3.4 Moz Vi A 3 M

3.4 Moz Neptune Neptune

̵ Victory Area ~3.7 Moz ̵ Invincible Potential +1 Moz

  • Multiple World Class Deposits

Invincible +1Moz? Victory Victory 3 7Moz 3 7Moz

  • Multiple World Class Deposits

̵ 40 km Strike Length ̵ 127,000 hectares

  • Multiple Styles

Argo Argo Athena Athena 3.7Moz 3.7Moz

̵ Vein/Lode Hosted Systems

  • Laminated Veins
  • Extensional Veins,

Breccia's

Junction Junction Argo Argo-Athena Athena- Hamlet Hamlet 3.7Moz 3.7Moz

  • Breccia's,
  • Stacked Veins

̵ Supergene Enrichment ̵ Disseminated Gold

2.1Moz 2.1Moz 19

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

̵ Palaeochannel Gold

  • Extensive highly prospective tenements
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SLIDE 20

OHS & Sustainable Development

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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SLIDE 21

St Ives 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

28.4 29.1 30 35 25.2 24 26.9 24.4 23.5 23.5 23.9 25

12

15 20 Target

4 3 3 4 4 5 4 4

5 10 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

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  • No. of injuries

12 Month Moving Average Frequency Rate Per Million Manhours Worked

If We Cannot Mine Safely, We Will Not Mine

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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St Ives Gold Mine

Health And Safety Strategy

  • Health and Safety Strategy

Health And Safety Strategy

Initiative Goal Behavioral Based Safety: Vital Behaviours Engage 95% of St Ives workforce and embed the Vital Behaviours concepts into the St Ives safety culture Field Level Risk Assessments Rollout new GFA Field Level Risk Assessment tool and associated Hazard ID training Visible Felt Leadership Incorporate GFA Visible Felt Leadership process into current Management Time In Field activities Improved Critical Risk Management Review site critical risk register and periodically verify controls Safety System Compliance and Auditing Periodically audit all SIGM Departments and Contractor Partners against the Site Safety Standard

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If We Cannot Mine Safely, We Will Not Mine

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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Environmental Management and Community Engagement

St Ives Gold Mine

g y g g

  • Environmentally responsible operations through ISO14001

certified Environmental Management System

  • Effective local Indigenous group engagement through our

Heritage Monitoring Program g g g

  • Active engagement of the local Kambalda community through

Comm nit Program Community Program

23 Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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St Ives Gold Mine

Human Resources Human Resources

  • Primarily a Residential Site with 85% of employees living in

Kambalda or Kalgoorlie

  • Remaining employees and contractors on FIFO
  • Contract camps are utilized in Kambalda

Description 2013 Employees in service 713 Contractors 236 TE+C 949 Tonnes mined/ TE+C 5,058 Oz Sold / TE+C 432.2

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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SLIDE 25

St Ives Gold Mine

Top 5 Priorities Top 5 Priorities

Priorities 1 Delivery of planned grade e e y o p a ed g ade 2 Improving performance through embedding the safety & health strategy 3 Invincible development 4 Quality reserve & resource replacement 5 Productivity and efficiency to reduce the cost base

25 Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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Underground Mining

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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Virtual Tour of a Athena Ore Drive

St Ives Gold Mine

Virtual tour Of An Athena Ore Body

  • The following series of 13 photographs is:
  • A series of faces in an Athena ore drive

Virtual tour Of An Athena Ore Body

  • Showing the typical features of the mine-scale geology

face photo face photo (looking north) indicative grade g/t face position along drive indicative grade g/t

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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2.00 g/t

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4.00 g/t

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10.00 g/t

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7.00 g/t

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SLIDE 32

9.00 g/t

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15.00 g/t

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12.00 g/t

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8.00 g/t

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SLIDE 36

4.00 g/t

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SLIDE 37

3.00 g/t

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4.00 g/t

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waste

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basalt porphyry basalt

waste

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St Ives Gold Mine

Underground Mining

  • Multiple mining areas

̵ Athena

Underground Mining

Underground Mining

Oz US$/Oz

̵ Hamlet ̵ Cave Rocks

600 300 000 350 000

US$/Oz

  • Significant contribution to site

̵ 2.0 Mtpa of higher grade ore

400 500 250 000 300 000

̵ Over half of gold production

  • Mining Methodology

300 150 000 200 000

  • Mining Methodology

̵ Individual approach to match ore bodies ̵ Mechanised long hole stoping

100 200 50 000 100 000

̵ Production Owner mining ̵ Specialist Contractors

  • 50 000

C2010 C2011 C2012 C2013 41

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

Gold Mined (Oz) Direct mining cost (US$/Oz)

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St Ives Gold Mine

Underground Mining: Equipment

Mine Production (Gold Fields Australia Pty Ltd)

  • 7 x Atlas Copco MT6020 Mine Trucks (50t nominal capacity)

Underground Mining: Equipment

  • 7 x Atlas Copco MT6020 Mine Trucks (50t nominal capacity)
  • 6 x Caterpillar R2900G Loaders
  • 1 x Atlas Copco MC7 and 4 x Sandvik Production Drills (89 mm
  • 1 x Atlas Copco MC7 and 4 x Sandvik Production Drills (89 mm

diameter blast holes)

  • 1 x Sandvik Cable Bolter

Mine Development (Byrnecut Australia Pty Ltd)

  • 3 x Caterpillar AD55 Mine Trucks (55t nominal capacity)
  • 3 x 621 Sandvik and 2 x Caterpillar R2900G Loaders
  • 3 x Sandvik Axera 07Jumbo Drills

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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St Ives Gold Mine

Underground Mining: Athena - Hamlet Underground Mining: Athena Hamlet

Surface 9305m RL 550m 895m

Athena Underground Mine

  • 42,000 tpm

S bl l O St ith t b kfill

Strike ~350m

  • Sublevel Open Stope with paste backfill

Hamlet Underground Mine

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

  • 51,000 tpm
  • Sublevel Open Stope with paste backfill

Strike ~500m

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St Ives Gold Mine

Underground Mining: Cave Rocks Underground Mining: Cave Rocks Cave Rocks Underground Mine

  • 57 000 tpm
  • 57,000 tpm
  • Sublevel Open Stope

Surface 350m RL Surface 350m RL

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

Elevation -152.5m RL Strike ~1050m

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Open Pit Mining

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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St Ives Gold Mine

Open Pit Mining: Mining Performance

Change of focus

  • Margin not tonnes

Open Pit Mining: Mining Performance

600 350 000

Open Pits Mining

Oz US$/Oz

  • Margin not tonnes
  • Only mining to mill capacity
  • No Heap leach

500 600 300 000 350 000

  • Owner mining

400 200 000 250 000

4 pits in operation

  • Mars – Ore delivery
  • West Idough – Ore delivery

200 300 150 000

  • West Idough – Ore delivery
  • Neptune – Pre-strip
  • Redback – Pre-strip

100 200 50 000 100 000

Invincible project is next large pit

  • C2010

C2011 C2012 C2013 Gold Mined (Oz) Direct mining cost (US$/Oz) 46

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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SLIDE 47

St Ives Gold Mine

Open Pit Mining

Owner Mining Fleet

  • 16M BCM capacity

Open Pit Mining

  • 5 Digging Units
  • 12 trucks 90 – 150t Capacity

D ill D & A ili fl t

  • Drills, Dozers & Auxiliary fleet
  • Additional hire fleet as required

Geographic spread

  • Multiple pits

D i k d l

  • De-risked plan
  • Centralised Workshops
  • Pit Haul to local ore pad

p

  • Road Train haul to Lefroy Mill

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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SLIDE 48

St Ives Gold Mine

Open Pit Mining: Neptune Open Pit Mining: Neptune

Stage Ore Tonnes Gold Grade (g/t) Contained Gold (oz) Neptune Stg 1 305,183 6.38 62,570 Neptune Stg 2 1,716,523 2.02 111,536

101koz 101koz

Neptune Stg 3 387,854 6.17 76,922 Neptune Stg 4 196,107 5.02 31,657 Neptune Stg 5 1,238,412 2.55 101,452 TOTAL 3,844,079 3.11 384,137

  • High grade Open Pit
  • 80m Deep
  • Palaeochannel Ore body

63koz 31koz 31koz

  • Palaeochannel Ore body
  • Mining Commenced Q4 2013
  • First Ore Q3 2014

112koz 112koz 77koz 77koz

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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SLIDE 49

Processing

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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SLIDE 50

St Ives Gold Mine

Processing

  • Gyratory Primary Crusher
  • Produces P100 of 210 mm at 800 tph
  • SAG mill (10.97 m X 6.10 m)
  • Produces a P80 of 125µm at 590 tph

Processing

  • Gravity Circuit
  • 2 Falcon concentrators, 2 Jigs, regrind mill and ILR reactor.
  • Leach
  • 5 conventional leach tanks
  • CIP Circuit
  • 6 Stage Carousel Pump Cell arrangement
  • AARL Elution Circuit
  • Capacity of elution circuit 5 tons of carbon per day
  • Electro winning
  • 5 electro- winning cells (1x dedicated to gravity)
  • Tailings disposal
  • Adequate capacity, and LOM developing In-Pit Disposal

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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St Ives Gold Mine

Process Flowsheet Process Flowsheet

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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SLIDE 52

St Ives Gold Mine

Processing

$

  • Nominal throughput of 4.8 mtpa
  • Single SAG mill

Processing

25.00 1 300 000

Lefroy Production

Tonnes US$/t

  • Single SAG mill
  • CIP Circuit

̵ Recoveries in excess of 93%

20.00 1 200 000 1 250 000

̵ Gravity recovery ~35% ̵ Mill availability ~ 94% 55 t ff l t

15.00 1 150 000

  • 55 staff complement

10.00 1 100 000 5.00 1 000 000 1 050 000

  • 950 000

C2013 Q1 C2013 Q2 C2013 Q3 C2013 Q4 C2014 Q1 L f T P d US$/t 52

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

Lefroy Tonnes Processed US$/t

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SLIDE 53

St Ives Gold Mine

Processing Processing

3 00 95 0 g/t % Recovery 2.50 3.00 94.0 94.5 95.0 2.00 93.0 93.5 94.0 1.50 92.0 92.5 0 50 1.00 91.0 91.5

  • 0.50

90.0 90.5 C2013 Q1 C2013 Q2 C2013 Q3 C2013 Q4 C2014 Q1 53

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

C2013 Q1 C2013 Q2 C2013 Q3 C2013 Q4 C2014 Q1 Processing Recovery (%) Processing Grade (g/t)

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SLIDE 54

Exploration

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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SLIDE 55

St Ives Gold Mine

Regional Geology

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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SLIDE 56

St Ives Gold Mine

Geology: Deposit Size & Distribution Geology: Deposit Size & Distribution

  • More than just a single mine

̵ 49 Open Pits to date ̵ 15 UG mines to date ̵ Junction Area ~2.1 Moz ̵ Argo- Athena- Hamlet ~3.7 Moz ̵ Greater Revenge Area ~3.4 Moz Vi A 3 M

3.7Moz

̵ Victory Area ~3.7 Moz ̵ Invincible Potential +1 Moz

  • Multiple World Class Deposits

Victory 3 7 Moz Revenge 3.4 Moz Invincible + 1 Moz ? Neptune 0.4 Moz ?

  • Multiple World Class Deposits

̵ 40 km Strike Length ̵ 127,000 hectares

  • Multiple Styles

Victory 3.7 Moz Argo, Athena –Hamlet 3.7 Moz

̵ Vein/Lode Hosted Systems

  • Laminated Veins
  • Extensional Veins,

Breccia's

Junction 2.1 Moz

2.1Moz

  • Breccia's,
  • Stacked Veins

̵ Supergene Enrichment ̵ Disseminated Gold

56

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

̵ Palaeochannel Gold

  • Extensive highly prospective tenements
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SLIDE 57

Exploration: Tenements & Prospectivity

St Ives Gold Mine

1. Speedway Trend ̵ Explore Strike/Dip Trend Proximal to Invincible

Exploration: Tenements & Prospectivity

Tenement Type Exploration Mining

Explore Strike/Dip Trend Proximal to Invincible 2. Indefatigable ̵ Follow up Orpheus, Pandora 3 3 3 3

Mining Miscellaneous Prospecting

3. Kambalda West Tenements ̵ High Milestone Targets to Advance 4 Pilb il P t 1 6 4 4. Pilbailey Prospect ̵ Invincible Analogue on Merougil & BLF Contact 5. Palaeochannel Project 5 2 j ̵ Site Wide opportunity 6. Project X ̵ Potential UG Mine North of Leviathan

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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

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SLIDE 58

St Ives Gold Mine

Exploration: Invincible Exploration: Invincible

  • Within operating radius of existing operations
  • Within operating radius of existing operations
  • Limited to lake disturbance only

58

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-59
SLIDE 59

Exploration: Invincible

St Ives Gold Mine

Exploration: Invincible

  • Entirely on lake Lefroy

y y

  • Requires causeways for access
  • Significant strike length

59

  • 9km of causeway development completed in 2013

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-60
SLIDE 60

St Ives Gold Mine

Exploration: Invincible Ore body

  • Large high grade open pit
  • Wide mineable zones (up to 20m)

Exploration: Invincible Ore body

  • Robust margin project
  • 2014 drill focus
  • Wide mineable zones (up to 20m)
  • Provides optionality for SIGM
  • 2014 drill focus

̵ UG position ̵ Pit expansion

Invincible Far Invincible Far South South Invincible Invincible

Bl k M d l C l C d d b A G d

60

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

Block Model Colour Coded by Au Grade Hot Colours = High Grade Cold Colours = Low Grade

slide-61
SLIDE 61

Exploration: Invincible Exploration Potential

St Ives Gold Mine

Exploration: Invincible Exploration Potential

2,250m

11m @ 11.2g/t

NW S E

21m @ 3.0g/t

300m

Model Limit @ g 17m @ 11.4g/t 12m @ 3.0g/t 17m @ 7.6g/t 10m @ 11.0g/t 6.5m @ 4.4g/t

The relevance of scale

26m @ 6.5g/t (Deepest Hole) 21m @12.8g/t

The relevance of scale…

(Deepest Hole) 61

Argo Hamlet Athena

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-62
SLIDE 62

St Ives Gold Mine

Exploration: Invincible

Gold Vein in Core Drilled from Gold Vein in Core Drilled from 978m Hole Drilled Down the Orebody (Dip Parallel)

  • Testing for;

Exploration: Invincible

Gold Vein in Core Drilled from Gold Vein in Core Drilled from Deep Hole @ Invincible Deep Hole @ Invincible

  • Testing for;

1. Host rock continuity 2. Depth extensions of mineralisation

  • Results:

1. 978m of host rock 2 M lti l i li d i t ti 2. Multiple mineralised intersections

  • 25.6m @ 6.5g/t Au from 927.5m
  • Implications:

p ̵ Doubles known vertical extent of mineralisation From 360m to 820m ̵ Demonstrates active system at depth ̵ Supports strategy to test depth extensions & infill

62

A Game Changer?

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-63
SLIDE 63

St Ives Gold Mine

Exploration: Project Generation – Speedway Trend

  • New under-explored trend

T S

2m @ 8.3 g/t (56m) 1m @ 21.8 g/t (49m)

Exploration: Project Generation Speedway Trend

  • Tenure Secure
  • Proven Capacity to deliver major

deposits deposits

  • Evidence of gold along 22 km strike
  • Rigorous staged exploration

2m @ 24.3 g/t (24m)

Gold Nugget from ~85m Gold Nugget from ~85m Downhole in RC Drilling @ Downhole in RC Drilling @ Heracles Heracles

programmes

  • Ground magnetics used to define

b d k t t

7m @ 7.4 g/t (254m)

bedrock structure

  • Multi- elements to determine rock types

& anomalism

4m @ 8.8 g/t (78m)

& anomalism

  • Reconnaissance drilling to define

anomalism and targets

Rock chip 20.8 g/t

63

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-64
SLIDE 64

St Ives Gold Mine

Exploration: Invincible Camp Potential

Ground Magnetics Map

Exploration: Invincible Camp Potential

Ground Magnetics Map

Santa Ana Santa Ana

Invincible OP Project Invincible OP Project Splays Splays Invincible South Invincible South Invincible South Invincible South trend trend Invincible South target

64

Space For Several Million Ounce + Deposits

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-65
SLIDE 65

St Ives Gold Mine

Exploration: Palaeochannel Project

Site Palaeochannel Network and

  • Opportunity to identify & develop palaeochannel resource

M k ’ f t t d h l t t it

Exploration: Palaeochannel Project

Current and Historic Mines

  • Many km’s of untested channels present an opportunity
  • Multiple palaeochannel mines operated
  • Deliver high grades

Thunderer Thunderer Neptune Neptune

  • Palaeochannel network identified
  • Drill extents vary from close spaced around resources to wide

d (320 160 ) i th

Africa Africa

spaced (320m x 160m) in other areas

  • Opportunity to explore new low cost mining techniques
  • Scoping study underway & resources to test targets

Argo Argo

Typical Channel Section – Buried Channels Containing Gold Overlain by Barren Sediments

65

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-66
SLIDE 66

St Ives Gold Mine

Exploration: Kambalda West Acquisition

  • Highly prospective ground acquired Q4 2013
  • ~27 000 Hectares Increased SIGM Landholding by

Exploration: Kambalda West Acquisition

  • 27,000 Hectares, Increased SIGM Landholding by

~27%

  • Encompasses and Extends Land Package around

Cave Rocks Mine

  • Soil sampling programme completed end 2013
  • Ground magnetics in progress 2014

Jonah Jonah Dam Dam

  • Ground magnetics in progress 2014
  • Multiple targets for immediate follow up
  • Jonah dam – target initial resource

Cave Cave Rocks Rocks Multiple Multiple Anomalies Anomalies – – G

g ̵ Strike extension from cave rocks

  • Drilling Scheduled for H2 2014

20ppb+ Gold in 20ppb+ Gold in Soils Soils

66

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-67
SLIDE 67

St Ives Gold Mine

Exploration: Cave Rocks Exploration: Cave Rocks

  • Open pits - WMC

0 5 b d 1,000m E40s

  • 0.5 moz ore body
  • Open at depth & on strike
  • Narrow high grade veins

Narrow high grade veins

  • Significant regional growth
  • pportunity

E80s E70s

E50s “GAP”

E60s E70s

Targeted Down Dip Extensions

  • f Known Lodes

67

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

  • f Known Lodes
slide-68
SLIDE 68

Further Opportunities

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-69
SLIDE 69

St Ives Gold Mine

Further Opportunities: Response To Lower Gold Price

  • Planning changes

Further Opportunities: Response To Lower Gold Price

  • Restructuring the cost base
  • Planning changes

̵ Value based assessment & ranking of projects Strategic scenario analysis

  • Restructuring the cost base

̵ Organisational restructure ̵ Reviewed & renewed contracts & ̵ Strategic scenario analysis ̵ Consideration of reduced mill throughput options Si lifi ti h ̵ Prudent cost & capital management

  • Production quality

̵ Dilution and recovery improvements ̵ Simplification approach

  • Exploration

̵ Focus on delivery of high value ̵ Productivity driving cost improvement ̵ Disciplined adherence to plan discovery

69

Focus on Margin and Cash Flow, Not Ounces For Ounces Sake

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-70
SLIDE 70

St Ives Gold Mine

Further Opportunities

Productivity Leveraging existing processes to deliver value

Further Opportunities

Quality Doing the job well Leveraging existing processes to deliver value

  • Open Pit

̵ Consistent mining volumes Doing the job well

  • Open Pit

̵ Reducing damage ̵ Focus on single large pit ̵ Targeting +5% improvement in unit rates U d d ̵ Optimisation of Drill & Blast ̵ Dilution & ore recovery U d d

  • Underground

̵ Effective utilisation of fleet ̵ Harness synergies with contractor

  • Underground

̵ Stope performance ̵ Backfill optimisation y g ̵ Improved mining layout

  • Processing

p

  • Processing

̵ To be focused on efficient throughput ̵ In pit tails reducing TSF requirement Surface Haulage optimisation ̵ Maintain high recoveries ̵ Consistent delivery

70

̵ Surface Haulage optimisation

Doing Things Better

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-71
SLIDE 71

St Ives Gold Mine

Further Opportunities

Invincible open pit project A new flagship open pit provides opportunity for change

Further Opportunities

Extend existing mines Keep current mines producing beyond current life A new flagship open pit provides opportunity for change

  • Large multi year project
  • Single open pit ore source

Keep current mines producing beyond current life

  • Athena

̵ Calisto & Europa extensions

  • High margin / High Cashflow project
  • Underground potential
  • Neptune

̵ Optimise future stages N th t i

  • Strike extension potential
  • Provides time for further exploration success

̵ North extension

  • Cave Rocks

̵ In-mine extensions ̵ Kambalda West new discoveries

  • Hamlet

̵ Optimise mine design for quality & productivity

71

Leverage Existing Assets

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-72
SLIDE 72

St Ives Gold Mine

Further Opportunities: Realising Value from Non-Core Assets

Beta Hunt

A i ti i k l/ ld i ithi th St I l th t tl i d b S lt L k Mi i

Further Opportunities: Realising Value from Non Core Assets

̵ An existing nickel/gold mine within the St Ives lease that was recently acquired by Salt Lake Mining

  • Sale of gold rights

̵ Project did not meet Gold Fields returns j ̵ Lower ranking exploration target ̵ Salt Lake Mining able to progress gold & nickel mining project

  • Maintaining returns

̵ Sale price (A$2m) Toll treating of ore opportunity ̵ Toll treating of ore opportunity ̵ Royalty on gold production of 6%

  • Assessment of other similar opportunities

̵ Eg. Nickel rights

72

Realising Value From Non Core Assets

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-73
SLIDE 73

St Ives Gold Mine

Creating Our Own Future

  • Maintain scale of cash flow

̵ AIC targeting sub US$1,050 /oz

Creating Our Own Future

g g ̵ Achievement of +15% FCF margin ̵ Gold production around 400,000 oz pa

  • Operational philosophy pivotal on delivery and value margin

̵ Focus on value not just ounce production ̵ Simplification of site ̵ Reduced mill throughput

  • Exploration

̵ Adequately funded & focussed to deliver high value discoveries ̵ Extend life of existing mines ̵ Discover new projects of suitable scale and margin

73

Maintaining Strengths And Mitigating Weaknesses

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-74
SLIDE 74

St Ives Gold Mine

Conclusions

  • Relentless focus on margin and cash flow

Conclusions

  • No ounces for ounces sake
  • Situated in a highly prospective region for further gold discovery
  • Excellent exploration successes over many years
  • About to develop a major new ore body which will improve margins
  • Towards a sub US$1,100/oz cost profile producing ~400 Koz p.a. mine

74

A Great Long-Term Asset

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

slide-75
SLIDE 75

Gold Fields Australia Site Visit: St Ives Gold Mine

GRAEME OVENS GRAEME OVENS General Manager

15th July 2014