Slide 1: Granny Smith Gold Mine site visit
Gold Fields Site sranny Smith Gold Mine ELD: Forward looking statements Certain statements in this documer consthute ‘Toward looking statemer Section 21 of the US Securities Exchange Act of 1934 within the meaning of Section 27A of the US Secunties Act of 1993 and hh particular, the forward looking
Slide 2: Introductions and site location
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 There are a few of my senior leadership at site at the back of the room. Perhaps, if you could stand up one by one and just say who you are, that would be great: Reg (Andrew Radford). I am the Metallurgy Superintend
Slide 3: Granny Smith mill, camp and tenements
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 The Granny Smith mill and mine camp are 23km’s south of Laverton and the Wallaby underground is 15km further south west of the Granny Smith processing plant. The Granny Smith mine was founded initially on the open p
Slide 4: Mine history and ownership
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 In 1979, the Goanna and Granny Smith deposits were discovered. In 1989 there was a joint venture between 60% Placer Pacific and 40% Delta Gold and they commenced open pit mining at Granny Smith. The first gold was p
Slide 5: Historical production by ore source
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 The whole project has produced 6.7 million ounces of gold. Open pit contributed 5.5 million. These were actually quite high grade open pits in their day. The underground has produced 1.2 million ounces and is still
Slide 6: Key management team
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 I have a solid management team. When I came in here I was lucky that I inherited some management at site that have strong discipline, and part of the attraction and strength of this site. So this is the key manageme
Slide 7: Key production managers
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 This is a very strong team. My key production guys are Andrew Cooper, Gary Sparks, Wayne Gaiter and I will put myself in that category as well. So these are the key managers here, but in each of these areas, in mine
Slide 8: Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 8
Slide 9: Positives and challenges of the acquisition
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 The positives. Why did we buy Granny Smith? This is a world-class underground mining operation. I am trying to think of another operation in Australia that produces 1.5 million tonnes of ore and +250,000 ozs gold fr
Slide 10: Resources and reserves
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 This slide shows the resources and reserves on the main ore bodies. Our open pit resources are 27.6 million tonnes at 1.33 g/t for almost 1.2 million ounces. This is an open pit project that is sitting out there, wh
Slide 11: Mining method at Wallaby underground
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 beauty of this deposit is that the grade is steadily improving on each level and the extent of the mineralization is also greater. Question: So what is the grade difference between zone 80 versus zone 100? There’s a
Slide 12: Mining methods and equipment
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 The decline gradient is 1 in 7. Decline truck access profile is 5.2 metres wide by 5.7 high. Our ore drive profile is 4.6 metres wide by 4.6 high. One of our mining methods is inclined room and pillar. It is suitabl
Slide 13: Processing plant and campaign milling
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 In the processing plant, we have the primary crusher and the secondary crushing circuit. A 3.5 megawatt SAG mill and 3.8 megawatt ball mill, six leaching tanks and six CIP circuits. We also have a thickener and tail
Slide 14: Processing plant refurbishment
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 next 12 months. We have replaced and modified the cyclone feed pumps and the whole grinding circuit. We have refurbished the gold room and the elution circuits. Still a little bit of work going on in elution. Tank r
Slide 15: Site infrastructure and camp
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Other site infrastructure: our camp, it’s a great camp. It is a great facility. It is quite old, but we do have some new buildings in the camp as well. We have capacity of 640 rooms. We do not need that, we only nee
Slide 16: Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 16
Slide 17: Why Gold Fields bought Granny Smith
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 A bit more on why did we buy. Our due diligence indicated that Granny Smith met the Gold Fields metric of achieving a 15% free cash flow margin at a gold price of $1 300 an ounce. And the key opportunity that we saw
Slide 18: Resource endowment by zone and grade
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So when we came in here we knew that from surface we have some confidence in a 1.8km depth endowment. Right now at the level that we’re mining at Zone 100, we’re round about 950 metres from surface. These figures (o
Slide 19: Feasibility and margins at depth
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 next level with some margin. We in-fill drill and complete a full feasibility before we actually commit to fully opening up of that level. So we know what we’re doing before we get there. We have a completed detaile
Slide 20: Laverton regional endowment
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So the due diligence view in wrapping up, it’s in a highly endowed gold province. Over 20 million ounces of gold has come from the Laverton region, including Granny Smith at 3.5 Million, Wallaby 8 million, and 10 mi
Slide 21: Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 21
Slide 22: Production and all-in sustaining costs
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So to production, since taking over here, you can see how we have performed on ounce production and All In Sustaining Costs. Barrick had come down quite significantly after adjusting to the gold price drop, but also
Slide 23: Major initiatives: improved plant recovery
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Major initiatives, delivering results! Improved process plant recovery. We have installed smaller cyclones and reworked the plumbing and the pumping around the ball mill discharge area of the plant. We are still doi
Slide 24: Grade control remodelling
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Yes, 29,000 ounces. And just keeping the stability in the plant, we did push a little bit to have a good start in 2014 and we were up 2 600 at the end of quarter one against plan. Now this is another one, Gary’s (Ga
Slide 25: Performance since acquisition
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So, where are we with our performance since acquisition? In Q4 2013 we had only just come in, so sort of just having a look at the operation, planning ourselves for the next year. You can see that we had pretty good
Slide 26: Production outlook
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 For the next four years, we’re looking at 250,000 plus per annum. And that’s still assuming our campaign mode at the moment. The idea is that we should be able to maintain plus 250,000 ounces as long as we keep dril
Slide 27: Recovery and operating culture
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 incremental gains in recovery. But our tail end grade has not changed. We’re just doing it more efficiently. So, we’ve got some higher grades going through the plant but the tails grade is unchanged so it is still c
Slide 28: Management and mine improvements
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So, we’ve got a strong management team, disciplined in planning, and that’s one of the biggest things that make us successful. And we’ve restructured the business to fit the Gold Fields’ strategy for this year and b
Slide 29: Life of mine and exploration spend
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 And we’ve got strong life of mine. We’re limited only by the drilling and exploration as we’ve previously said. And we are doubling the exploration spend over 2013 expenditure, so, that’s up by $6 million to $12 mil
Slide 30: Safety performance (TRIFR)
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 This is when we took over with Gold Fields. Some of the safety here might have been a bit around uncertainty of a new owner coming in. But since we’ve come in there’s been a sustained drop in our total recordable in
Slide 31: Safety initiatives
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So, safety initiatives, we do TOPS which are Task Observations Performed By Supervisors. We’re all committed to that. We’ve had 500 discussions with people about their jobs around safety and environmental every mont
Slide 32: Employees and contractors
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 We have around 390 employees at Granny Smith and 95 fulltime contractors in 2014. There’s a few extra around at the moment, on the capital project works in the plant. On your employees, what’s your average expenditu
Slide 33: Environmental compliance and community
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 As a company we are pursuing ISO 14001 certification on environmental compliance. Our first stage audit has been completed with no non- conformances and our second stage is scheduled for quarter four. And we have ju
Slide 34: Priorities: water, exploration, continuity
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Our top priority is to ensure a long term availability of water sources at site. We have an agreement with the Lynas Corporation which is one of our neighbours mining in the area. That’s a good agreement, we have a
Slide 35: Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 35
Slide 36: Granny Smith and Wallaby geology
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Gary Sparks, Mineral Resource Manager Granny Smith and Wallaby. Our project is set on a lake. We have the Granny Smith mine sitting along this area here, Wallaby over here. And we have Keringal and Jubilee south of
Slide 37: Wallaby lodes and zones
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 If we look at the lenses themselves you will see a very similar pattern all the way down. We have a flat main lode with a hanging wall type lode to the west. The first underground ore was Zone 60. In the open pit it
Slide 38: Wallaby deposit model
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So a very simple slide. What is Wallaby? So we will just say there is an initial controlling structure. Down at depth down there is a major intrusive system. Off the top of that intrusive system like many intrusive
Slide 39: Reserve conversion and production
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So if we look at the performance of the mine and our reserve conversion - this is just for the Wallaby underground. We are not including any of the open pits here. The underground commenced in 2005 as a trial mine a
Slide 40: Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 40
Slide 41: Typical mining layout
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Johanna Cowell, Underground Manager This is the typical mining layout. Generally we will decline down to a zone and then do development across the full width of the ore body. Then we will start stoping back in a com
Slide 42: Mining optimisation projects
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So in terms of the optimisation projects we are working on in mining, we are looking at internal dilution. So you can see the very flat ore bodies. In order to get a footwall angle that is actually minable sometimes
Slide 43: Footwall angle, paste fill and automation
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 It is across all of it. Some of the very simple things that we’ve done like changed the footwall angle from 45 degrees as our mine planning standard to 40 degrees as our mine planning standard. The trade-off between
Slide 44: Stope results: incline room and pillar
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So here are some examples of the results. This is a great example of the incline room and pillar. This is up in our hanging wall. 88% recovery of design tonnes, 97% recovery of design ounces. That’s a really good re
Slide 45: Stope results and horizontal rises
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Here is another example. This is still incline room and pillar. As you can see the capacity for us to develop up in this direction is the limiting factor in being able to move into a transverse mining method. So it
Slide 46: Horizontal rises cost savings
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So just that one alone we’ve been able to eliminate 20m of development. So significant cost saving if we can do that in most of our panels, and we have managed to eliminate several hundreds of metres of development
Slide 47: Drill and blast mining recoveries
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So historically we have got between 85% and 87% mining recoveries. We are doing all of the work but only getting 85% to 87% of the tonnes that we designed in those shapes. So we had a lot of focus on drill and blast
Slide 48: Planned dilution and new mining method trial
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 I said earlier with the flatter lodes we generally have to dilute it or plan dilution that is significant. In some areas it is up around 50%. What we are trialling here (on this slide) is a new mining method where w
Slide 49: Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 49
Slide 50: Processing options for 2014
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Andrew Radford will now talk you through processing. With the end of Barrick and the Gold Fields transition we looked at a few options for 2014. Of those options we can run the processing circuit in a couple of scen
Slide 51: Campaign processing costs
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Question: How much more does it cost you to run the process plant on a campaign basis? At the moment we are running around about $34 a tonne. Question: And what if you were running in continuous mode? It would be a
Slide 52: Plant risks and capital required
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 So in terms of people obviously we looked at trying to stabilise our crew levels, skills and training, improving on where we were in 2013. And from a maintenance perspective less reliance on outside contractors, imp
Slide 53: Gravity circuit and fine gold
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 tonnes. Very well automated. 70% recovery. Is fine gold, around 10 to 20 micron. So very finely ingrained within the Wallaby ore. There is a 60% to 70% component at the front of the circuit. At the moment without th
Slide 54: Grade profile
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Just a grade profile over the last quarter of 2013 and 2014 there. So 5g to 6.5g per ton, similar grades, slightly lower grades in January and February with a bit of a kick in March. And that certainly continued alo
Slide 55: Recovery profile
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 And the recovery profile. So in October through December we were running with the 500 cyclones in the grinding circuit. We basically changed half in January/February, commissioned those and went back with the KFX400
Slide 56: Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 56
Slide 57: 2014 exploration programme
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Let’s move on to exploration to look at the 2014 programme, what we are targeting at this time, in 2014 our budget is $12.3 million. That includes converting into indicated and measured in the mine as well. Question
Slide 58: Resource conversion and extensions
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Okay, so major infill conversion converting inferred resources to indicated in zone 100 and on the northern extensions at zone 90. Exploration to the south of the zone 100 where we’re having some real success in ext
Slide 59: Zone 100 infill drilling results
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 All right. So there is a pile of results on this slide. This is the first quarter results of infill drilling of this portion here of zone 100. The big thing to take out of this is that it has been improving the reso
Slide 60: Southern exploration drilling
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 If we look at that southern exploration in 2013 a series of holes was drilled on all the intercepts that had been drilled into zone 100. So all the ones along here. 10m at 5g, 8m at 20g, 10m at 5g and 7m at 5g. We f
Slide 61: Zone 100 southern extension
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 This is another 130m, so we are about 260m out from the initial shape. We are still getting all well and truly economic, and these are typical zone 100 grades. No real sign of this thing coming to an end yet. So we
Slide 62: Zones 110 and 120 intercepts
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 If we look at 110 and 120, we look at 110 and 120 together generally because they are only about 60m apart. It is veining convention from the early days and we have basically just kept on naming them 110 and 120. We
Slide 63: Zone 110 resource growth
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 When the resource was reinterpreted at the start of this year we had an undepleted resource sitting just in 110 of 80,000 ounces. We’ve added 300,000 ounces into that zone already. Now you are seeing the same sort o
Slide 64: Deep target below zone 120
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 The original target was looking in the hanging wall of Thet’s Shear which is the early shear. All of the mineralisation is in the hanging wall of that. Our first hole was put through this target zone in here. We had
Slide 65: Second deep hole results
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 When the second hole was put in we had a much better result. Further extensions to zone 120. That is another 120m to the south. We have also extended zone 110. But significant intercepts. 9m at 12g. 30m at 40g. 3m a
Slide 66: Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 66
Slide 67: Keringal regional target
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 If we look at some of the more regional zones, the Keringal pit is 20km to the southeast of Granny Smith mine. It is an old pit that was mined in 1995, just an oxide pit down to 120m. Some drill testing, some quartz
Slide 68: Platypus target
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 Closer to Wallaby we have a place called Platypus. Going back ten years there was some work done on the lake just short of 2km out from the mine. Some reasonable grades, 4m at 9g, 1m at 5g. We intercepted ore but th
Slide 69: Northeast of Wallaby target
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 To the immediate north-east of Wallaby the target in this area. Previous drilling has incepted intrusions similar to what we have in the Wallaby system with mineralisation similar to Wallaby. In addition in the shea
Slide 70: Lake Carey tenements and geophysics
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 And then finally moving out on the lake (adjacent to the Wallaby deposit). This is a very busy slide. If you look you will see the dotted line is the outline of the lake. We have Wallaby sitting here (on the northea
Slide 71: Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 71
Slide 72: Closing remarks and outlook
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 I think Granny Smith is a great fit for Gold Fields. Under the Gold Fields model of how we run our mines we have a lot of autonomy on the mine site. It has started to deliver great results and really optimise what h
Slide 73: Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014
Gold Fields Australia site visit: Granny Smith Gold Mine Stuart Mathews 16 July 2014 73