Gold Fields Australia Site Visit: St Ives Gold Mine
GRAEME OVENS GRAEME OVENS General Manager
15th July 2014
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
15th July 2014
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
Archaean Aged Yilgarn Craton
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
the Norseman-Wiluna Belt
y Lefroy Fault and Zuleika Shear
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
f
2005 N t di d
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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
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
̵ 10% of gold price above A$600/oz
350
Cummulative Royalty Saved
g p ̵ 4% NSR Royalty from 3.3 million ounces of production
300
200 250 150 50 100
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
7 M Ozs
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
Reserves Production Cumm Production
(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
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
̵ Evolving strategy in response to declining gold price & volatility F d li i f h i d t t
̵ Focus on delivering a free cash margin and not tonnes
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
̵ 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
̵ 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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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
1 600 120
Production and AIC
Koz US$/oz
1 200 1 400 100
800 1 000 60 80
capital
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
̵ 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
Invincible +1Moz? Victory Victory 3 7Moz 3 7Moz
̵ 40 km Strike Length ̵ 127,000 hectares
Argo Argo Athena Athena 3.7Moz 3.7Moz
̵ Vein/Lode Hosted Systems
Breccia's
Junction Junction Argo Argo-Athena Athena- Hamlet Hamlet 3.7Moz 3.7Moz
̵ 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
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
(TRIFR = Lost Time Injury + Restricted Work Injury + Medically Treated Injury per Million Manhours Worked)
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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12 Month Moving Average Frequency Rate Per Million Manhours Worked
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
certified Environmental Management System
Heritage Monitoring Program g g g
Comm nit Program Community Program
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Kambalda or Kalgoorlie
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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
̵ Athena
Oz US$/Oz
̵ Hamlet ̵ Cave Rocks
600 300 000 350 000
US$/Oz
̵ 2.0 Mtpa of higher grade ore
400 500 250 000 300 000
̵ Over half of gold production
300 150 000 200 000
̵ Individual approach to match ore bodies ̵ Mechanised long hole stoping
100 200 50 000 100 000
̵ Production Owner mining ̵ Specialist Contractors
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$/Oz)
Mine Production (Gold Fields Australia Pty Ltd)
diameter blast holes)
Mine Development (Byrnecut Australia Pty Ltd)
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
Surface 9305m RL 550m 895m
Strike ~350m
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
Strike ~500m
Surface 350m RL Surface 350m RL
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
Elevation -152.5m RL Strike ~1050m
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
Change of focus
600 350 000
Oz US$/Oz
500 600 300 000 350 000
400 200 000 250 000
4 pits in operation
200 300 150 000
100 200 50 000 100 000
Invincible project is next large pit
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
Owner Mining Fleet
D ill D & A ili fl t
Geographic spread
D i k d l
p
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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
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
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
$
25.00 1 300 000
Tonnes US$/t
̵ Recoveries in excess of 93%
20.00 1 200 000 1 250 000
̵ Gravity recovery ~35% ̵ Mill availability ~ 94% 55 t ff l t
15.00 1 150 000
10.00 1 100 000 5.00 1 000 000 1 050 000
C2013 Q1 C2013 Q2 C2013 Q3 C2013 Q4 C2014 Q1 L f T P d US$/t 52
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
Lefroy Tonnes Processed US$/t
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
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)
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
̵ 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
̵ Victory Area ~3.7 Moz ̵ Invincible Potential +1 Moz
Victory 3 7 Moz Revenge 3.4 Moz Invincible + 1 Moz ? Neptune 0.4 Moz ?
̵ 40 km Strike Length ̵ 127,000 hectares
Victory 3.7 Moz Argo, Athena –Hamlet 3.7 Moz
̵ Vein/Lode Hosted Systems
Breccia's
Junction 2.1 Moz
̵ Supergene Enrichment ̵ Disseminated Gold
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
̵ Palaeochannel Gold
1. Speedway Trend ̵ Explore Strike/Dip Trend Proximal to Invincible
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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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
y y
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
̵ UG position ̵ Pit expansion
Bl k M d l C l C d d b A G d
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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
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
26m @ 6.5g/t (Deepest Hole) 21m @12.8g/t
(Deepest Hole) 61
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
Gold Vein in Core Drilled from Gold Vein in Core Drilled from 978m Hole Drilled Down the Orebody (Dip Parallel)
Gold Vein in Core Drilled from Gold Vein in Core Drilled from Deep Hole @ Invincible Deep Hole @ Invincible
1. Host rock continuity 2. Depth extensions of mineralisation
1. 978m of host rock 2 M lti l i li d i t ti 2. Multiple mineralised intersections
p ̵ Doubles known vertical extent of mineralisation From 360m to 820m ̵ Demonstrates active system at depth ̵ Supports strategy to test depth extensions & infill
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
2m @ 8.3 g/t (56m) 1m @ 21.8 g/t (49m)
2m @ 24.3 g/t (24m)
Gold Nugget from ~85m Gold Nugget from ~85m Downhole in RC Drilling @ Downhole in RC Drilling @ Heracles Heracles
7m @ 7.4 g/t (254m)
4m @ 8.8 g/t (78m)
Rock chip 20.8 g/t
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
Ground Magnetics Map
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
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
Site Palaeochannel Network and
M k ’ f t t d h l t t it
Current and Historic Mines
Thunderer Thunderer Neptune Neptune
d (320 160 ) i th
Africa Africa
spaced (320m x 160m) in other areas
Argo Argo
Typical Channel Section – Buried Channels Containing Gold Overlain by Barren Sediments
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
~27%
Cave Rocks Mine
g ̵ Strike extension from cave rocks
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
0 5 b d 1,000m E40s
Narrow high grade veins
E80s E70s
E50s “GAP”
E60s E70s
Targeted Down Dip Extensions
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
Productivity Leveraging existing processes to deliver value
Quality Doing the job well Leveraging existing processes to deliver value
̵ Consistent mining volumes Doing the job well
̵ 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
̵ Effective utilisation of fleet ̵ Harness synergies with contractor
̵ Stope performance ̵ Backfill optimisation y g ̵ Improved mining layout
p
̵ To be focused on efficient throughput ̵ In pit tails reducing TSF requirement Surface Haulage optimisation ̵ Maintain high recoveries ̵ Consistent delivery
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̵ Surface Haulage optimisation
Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
Invincible open pit project A new flagship open pit provides opportunity for change
Extend existing mines Keep current mines producing beyond current life A new flagship open pit provides opportunity for change
Keep current mines producing beyond current life
̵ Calisto & Europa extensions
̵ Optimise future stages N th t i
̵ North extension
̵ In-mine extensions ̵ Kambalda West new discoveries
̵ Optimise mine design for quality & productivity
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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
̵ An existing nickel/gold mine within the St Ives lease that was recently acquired by Salt Lake Mining
̵ Project did not meet Gold Fields returns j ̵ Lower ranking exploration target ̵ Salt Lake Mining able to progress gold & nickel mining project
̵ Sale price (A$2m) Toll treating of ore opportunity ̵ Toll treating of ore opportunity ̵ Royalty on gold production of 6%
̵ Eg. Nickel rights
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
̵ AIC targeting sub US$1,050 /oz
g g ̵ Achievement of +15% FCF margin ̵ Gold production around 400,000 oz pa
̵ Focus on value not just ounce production ̵ Simplification of site ̵ Reduced mill throughput
̵ Adequately funded & focussed to deliver high value discoveries ̵ Extend life of existing mines ̵ Discover new projects of suitable scale and margin
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
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Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014
15th July 2014