Gold Fields Limited · JSE:GFI
Gold Fields — Technical Presentation (July 2014)
51 slides from Gold Fields's technical presentation, Jul 14, 2014
Slide 1: Gold Fields Australia Site Visit: Darlot Gold Mine
Gold Fields Australia Site Visit: Darlot Gold Mine ANDREW BYWATER General Manager 14th July 2014
Slide 2: Forward looking statements
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 p particular, the forward looking g statements in this document incl
Slide 3: Darlot Gold Mine: Location and Background
Darlot Gold Mine Location and Background ● Located in Eastern Goldfields Province of the Archaean aged g Yilgarn g Craton ● 900km North east of Perth ● 350km North of Kalgoorlie ● Full mining and processing facilities ● All in central proximity ● Currently C tl proving i up 2015 ore sources while hi
Slide 4: History
Darlot Gold Mine History ● Gold first discovered in the Lake Darlot region in 1894 ● Over 500,000 ozs estimated alluvial production. ● Darlot pit resource delineated 1986-1988, mining commenced in 1988 and was completed in 1995 ● 1996 the Centenary orebody was discovered, mining commenced 1998 ● Bet
Slide 5: Replacement Of Reserves
Darlot Gold Mine Replacement Of Reserves M Ozs Darlot Reserves and Production 2.50 2.00 1.50 1.00 0.50 0.00 1988-2002 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2014 Reserve MY est Reserves Production Cumm Production Typical Regenerative Orogenic Geology GFA Analyst Tour | And
Slide 6: Tenement Map
Darlot Gold Mine Tenement Map 5km Gold Fields 100% Darlot South JV ‘A’ Darlot South JV ‘B’ Darlot South JV Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014 6
Slide 7: Experienced Professionals driving the Turnaround Program
Darlot Gold Mine Experienced Professionals driving the Turnaround Program General Manager - Andrew Bywater Mining - Paul Miskell p Mineral Resources - Pascal Blampain Processing -Tristan Freemantle Maintenance - Tim Gordon Safety - Lance Deighton Human Resources - Billie Jo King Commercial - Joanne
Slide 8: Operations Management Team
Darlot Gold Mine Operations Management Team ● General Manager – Andrew Bywater ● BSc Hons Geology, Masters in Mineral Economics ● Extensive experience in management, operations, geology, technical and project roles ● 20 y years mining g experience p with 2.5 yyears at Darlot ● Mining Manager – Paul
Slide 9: Operations Management Team
Darlot Gold Mine Operations Management Team ● Maintenance Manager – Tim Gordon ● Certificate III Electrical Mechanic, Certificate III Instrumentation and ● Processing Manager – Tristan Freemantle Process Control ● Masters in Business Administration ● Extensive experience in management, ● Extensive e
Slide 10: WHAT DID WE BUY?
WHAT DID WE BUY? Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014
Slide 11: Facilities Layout
Darlot Gold Mine Facilities Layout Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014 11
Slide 12: Centenary Underground Resources and Reserves
Darlot Gold Mine Darlot/Centeneray Underground Mineral Resources: Current Development • 1.61 Mt @ 5.24 g/t for 0.27 Moz Darlot Mineral Reserves: • 1.0 Mt @ 5.07 g/t for 0.16 Moz Metzke Hurst Fillbandit Trinidad Pedersen Thomson Bulk Stopes Boon North Boon West Border Walters Lords South N 0 500 1000
Slide 13: Infrastructure
Darlot Gold Mine Infrastructure ● Camp - 400 rooms with recreational facilities ● Airstrip – CASA certified, 1980m gravel airstrip refueling facility, capacity for jets ● Water Sources - Bore Fields ● Power Station –LNG, with Diesel backup system ● Paste Plant ● Mine has 2 main declines ● Approval f
Slide 14: Infrastructure: Mining
Darlot Gold Mine Infrastructure: Mining ● Underground mine with ore transported by haul trucks to the treatment plant via two declines ● Conventional and narrow longhole stoping ● Paste filling is used in the majority of stopes ● The owner operator /maintained fleet comprises of mainly Sandvik drill
Slide 15: Underground Fleet
Darlot Gold Mine Underground Fleet ● Drill fleet in good condition and good mix of ages ● Latest L t t modeld lS Sandvik d ik 60t ttruck k iis a trial t i l unitit of latest Sandvik model. Now at 4,500 hours ● Extended under hire arrangement due to success Machine Type Number Jumbos 2 (Sandvik DD421
Slide 16: Why did we buy?
Why did we buy? Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014
Slide 17: Our Due Diligence View
Darlot Gold Mine Our Due Diligence View ● Can be cash breakeven or better ● Other opportunities that we saw included people, processing plant conditions, LOM extension potential ● Potential synergies with other sites ● Resource and Reserve Growth – increase exploration spend to find the game changer
Slide 18: What have we done since the acquisition?
What have we done since the acquisition? Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014
Slide 19: Production and AIC
Darlot Gold Mine Production and AIC Koz US$/oz Barrick Gold Fields 25 1 800 1 600 20 1 400 1 200 15 1 000 800 10 600 400 5 200 0 0 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Production AIC AISC Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014 19
Slide 20: Operation Review – Top Issues and Opportunities
Darlot Gold Mine Operation Review – Top Issues and Opportunities ● Secure short-term viability of the current operation with 15% FCF Margin p ● Self-fund exploration & right g size operation p ● Then with the time generated from above, look for a game-changer ore body Key Issue Actions Timeline Stra
Slide 21: Strategic Focus Of Mine Management
Darlot Gold Mine Strategic Focus Of Mine Management ● 2015 LOM ̵ 80koz p pa target, g , exploration p commenced,, modelling g and engineering g g design g schedule in p progress g ̵ Lower Lords South feasibility study and ventilation capacity commenced ̵ Self funding exploration programme ̵ Focus F
Slide 22: Key Metrics
Darlot Gold Mine Key Metrics KPI’s Unit Q4 2013 Q1 2014 Safetyy LTI’s 0 1 Ore mined - UG kt 153 141 Mined grade - UG g/t 4.46 4.96 Ore processed kt 158 144 Head grade g/t 4.41 5.32 Recovery % 93.4 95.2 Gold sold koz 19.7 22.9 Revenue US$m 25.0 29.6 Operating cost US$m 20.8 21.1 Operating Profit US$m
Slide 23: OHS & Sustainable Development
OHS & Sustainable Development Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014
Slide 24: TRIFR Moving Average Frequency Rates
Darlot Gold Mine TRIFR 12 Month Moving Average Frequency Rates Per Million Manhours (TRIFR = Lost Time Injury + Restricted Work Injury + Medically Treated Injury per Million Manhours Worked) 30 28.32 25 21.42 21.02 20 19.40 19.35 18.89 18.35 16.52 16.44 15 Target Gold Fields Management g Control 10
Slide 25: Environment and Community
Darlot Gold Mine Environment and Community ● Environmental Management System ISO 14001 Certified since Nov 2013 ● Water Management - Darlot only requires 60% of its 805,000 kL annual groundwater licence allocation ̵ A Reverse Osmosis plant provides potable water ̵ Saline mine dewatering is recycled
Slide 26: Human Resources
Darlot Gold Mine Human Resources ● 224 employees (plus 63 contract) ● Fly in fly out arrangements are based on an 8/6 roster which is an attractive option to employees ● Flight options are optimised for cost efficiency and have reduced from daily to three flights per week ● The onsite camp facilitie
Slide 27: Top Priorities
Darlot Gold Mine Top 5 Priorities Priorities 1 Achieve c e e ope operational at o a pplan a (sa (safety, ety, p production oduct o metrics, et cs, pprofit o t margin) ag ) 2 Increase reserve life – develop exploration pipeline 3 Safety – build high performance safety culture 4 Cost pressures – lever
Slide 28: Mining - Underground
Mining - Underground Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014
Slide 29: Major Mining Areas 2014 - LS775
Darlot Gold Mine Major Mining Areas 2014 - LS775 Legend: ● First development ore achieved in Yellow development completed Greyy development p p planned October 2013 Pink stopes mined and filled Remaining stopes planned ● First stoping ore achieved in December 2013 g ● Significant upside p p potentia
Slide 30: Major Mining Areas 2014 - Grace Pillar
Darlot Gold Mine Major Mining Areas 2014 - Grace Pillar ● Remnant pillar in older mining area ● 90kt at 5.5g/t ● Producing between March 2014 and d August A t 2014 ● Extraction is as a single stope ● Firing sequence designed to minimize dilution Legend: Yellow development completed Pink stopes mined
Slide 31: Future Mining Potential - Lords South Lower Mining Study
Darlot Gold Mine Future Mining Potential - Lords South Lower – Mining Study Legend: Grey development completed Remaining development planned all stopes planned Unclassified Inferred Indicated • Mineral inventory of 387kt @ 6.9g/t for 86 Koz contained. • Current detailed mine plan of 183kt @ N 6.2g/t
Slide 32: Processing
Processing Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014
Slide 33: Infrastructure: Processing Treatment Facilities
Darlot Gold Mine Infrastructure Processing Treatment Facilities ̵ Plant constructed in 1988 (relocated from Mt Fisher) for first production in 1989 ̵ Crusher circuit upgraded in 2000 and secondary mill installed in 1997 ̵ 0.8Mpta 1600kW two stage ball milling circuit and Knelson concentrator gravity
Slide 34: Darlot Gold Mine
Darlot Gold Mine Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014 34
Slide 35: Processing Grade
Darlot Gold Mine Processing Grade g/t 7.00 6.00 5 00 5.00 4.00 3.00 2.00 1 00 1.00 0.00 Oct-13 Oct 13 Nov-13 Nov 13 Dec-13 Dec 13 Jan-14 Jan 14 Feb-14 Feb 14 Mar-14 Mar 14 Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014 35
Slide 36: Processing Recovery
Darlot Gold Mine Processing Recovery % 96 96 95 95 94 94 93 93 92 92 Oct-13 Oct 13 Nov-13 Nov 13 Dec-13 Dec 13 Jan-14 Jan 14 Feb-14 Feb 14 Mar-14 Mar 14 Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014 36
Slide 37: Processing Tonnes and US$/Tonne
Darlot Gold Mine Processing Tonnes and US$/Tonne tons US$/t 70 000 60 60 000 50 50 000 40 40 000 30 30 000 20 20 000 10 10 000 0 0 Oct-13 Oct 13 Nov-13 Nov 13 Dec-13 Dec 13 Jan-14 Jan 14 Feb-14 Feb 14 Mar-14 Mar 14 Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014 37
Slide 38: Exploration
Exploration Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014
Slide 39: Regional Setting
Darlot Gold Mine Regional Setting Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014 39
Slide 40: Mineralising Style
Darlot Gold Mine Mineralising Style ● Orogenic Greenstone hosted hydrothermal mineralising systems > 2 Moz systems systems, ● Gold – pyrite – sericite +/- albite mineral assemblage / quartz carbonate q ● Narrow vein to stockwork forms ● Shear and fault controlled mineralisation ● Strong structural t
Slide 41: Near Mine Targets - Key Underground Exploration Areas
Darlot Gold Mine Near Mine Targets - Key Underground Exploration Areas For LOM Strategy Upper Oval Wicket Oval South Middle Walters South (Slide 42) Pedersen North Darlot Lower Pedersen D Depositit SRM ULP Centenary Deposit Taylor North Lords Flat Structures LS775 Extension Centenary Depth Analogue
Slide 42: Middle Walters South Project (Centenary Deposit)
Darlot Gold Mine Current Project Status - Middle Walters South Project (Centenary Deposit) • Area drilled around current Upper STH margin of the Walters Orebodyy Magnetic Dolerite • Drilling open up plunge to Sth • Some high grade Au intercepts on the Lords Fault CUDH3039A Dolerite CUDH2940 • Econom
Slide 43: Lords South Extension Project
Darlot Gold Mine Current Project Status - Lords South 775 –Extension Extension Project (Centenary Deposit) • Narrow vein (1-2m’s) high grade mineralisation associated with a cross linking structure between the Lords and Eldorado Faults • Constrained C to the north by the Wicket Fault, open to the so
Slide 44: Centenary Depth Analogue (CDA) Target
Darlot Gold Mine Current Project Status - Centenary Depth Analogue (CDA) Target • 9 DDH completed targeting the broad project area • 7 drill holes contain continuous mineralisation at ~ 1,000 m depth • Mineralisation manifests as flat stacked veining with associated haematite alteration and pyrite a
Slide 45: Beyond 2015 LOM - Lords South Lower & CDA
Darlot Gold Mine Beyond 2015 LOM - Lords South Lower & Centenary Depth Analogue (CDA) 1400mRL 1300 RL 1300mRL 1200mRL Regional Lamprophyre 1100mRL 1000mRL 900mRL 800mRL 700mRL CDA Oval Fault 600mRL CDA First-Slip p Fault Lords South Lower 500mRL CDA Bulk Mineralisation 400mRL CDA Lords Fault Potenti
Slide 46: Surface Exploration Drilling – 2014 Targets Defined
Darlot Gold Mine Surface Exploration Drilling – 2014 Targets Defined Airstrip supergene zone Gold Fields Australia Site Visit: Darlot Gold Mine | Andrew Bywater | July 2014 46
Slide 47: West Limb Prospect (North Darlot)
Darlot Gold Mine Current Project Status - West Limb Prospect (North Darlot) • 3 Diamond drill holes (1,419 m) successfully targeted the structure, st uctu e, as well e as tthe e original intercept from the first Centenary Depth Analogue drill hole. • The structure will be tested again by the new Cen
Slide 48: West Limb Oxide Prospect
Darlot Gold Mine Current Project Status - West Limb Oxide Prospect Airstrip Supergene Zone (refer locality plan page 46) ● Follow-up drilling planned will test the structure closer to surface in the non- magnetic dolerite, and attempt to link the structure with the known supergene mineralisation at
Slide 49: Cornucopia Project – Drilling Results
Darlot Gold Mine Cornucopia Project – Drilling Results - 2km SSE of Darlot Mine - Similar Geology host units 12m @ 1 1.05g/t 05g/t (from 12m) - >400m strike potential, open to 5m @ 0.6g/t (from 45m) the North & South 4m @ 1.69g/t (from 60m) - Oxide and Primary Au 2m @ 70.8g/t (from 74m) (NSA) 3m @ 2
Slide 50: Conclusion
Darlot Gold Mine Conclusion • Aiming for A safe, profitable and sustainable operation • Safety results are steadily improving • New focus on quality tonnes mined to leverage grade and margin paying dividends • AISC significantly reduced from 2013 via the Turnaround Program • Current mine plan is bei
Slide 51: Gold Fields Australia Site Visit: Darlot Gold Mine
Gold Fields Australia Site Visit: Darlot Gold Mine ANDREW BYWATER General Manager 14th July 2014