Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — Technical Presentation (September 2012)
33 slides from Harmony Gold Mining's technical presentation, Sep 26, 2012
Slide 1: Wafi-Golpu Project
WAFI-GOLPU PROJECT Max Esparon and Mike Humphries Analyst site visit 26 September 2012 1 w w w . h a r mw onwyw. c. hoa. zr m a ony.co.za
Slide 2: Safe Harbour Statement and Competent Person Statement
Private Securities Litigation Reform Act Safe Harbour Statement and Competent Person Statement This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended, that are int
Slide 3: Agenda
Agenda 1 Golpu movie 2 Governance and overview 3 Wafi-Golpu geology system 4 Golpu pre-feasibility 3 www.harmony.co.za
Slide 4: Golpu movie
Golpu movie This movie is also available on the website at www.harmony.co.za 4 www.harmony.co.za
Slide 5: Governance and overview
Governance and overview An exciting investment proposition 5 www.harmony.co.za
Slide 6: Organisation structure for the MMJV companies
Organisation structure for the MMJV companies 50:50 Joint venture between Harmony and Newcrest 6 www.harmony.co.za
Slide 7: Management
Management 7 www.harmony.co.za
Slide 8: Wafi-Golpu project – overview
Wafi-Golpu project – overview • Located ~80km from regional, industrial and commercial hub, Lae • 50:50 JV project with Harmony Gold Mining Co Ltd and Newcrest Mining Limited • Three major deposits – Wafi – epithermal gold deposit – Golpu – copper gold porphyry deposit – Nambonga – copper-gold porph
Slide 9: Wafi-Golpu project – current status
Wafi-Golpu project – current status • Existing road network from Lae to Wafi-Golpu • 300 person camp • Exploration drilling program • Initial construction works including road development • Community and environmental studies and programs • Studies – Golpu pre-feasibility study and Wafi concept stud
Slide 10: Wafi-Golpu geology system
Wafi-Golpu geology system An exciting investment proposition 10 www.harmony.co.za
Slide 11: Wafi-Golpu Resources as at 30 June 2012
Wafi-Golpu Resources as at 30 June 2012 Golpu • 1 000Mt @ 0.63g/t Au, 0.90% Cu (20.3Moz Au, 9.0Mt Cu) Wafi • 132Mt @1.69g/t Au (6.9Moz Au) Nambonga • 40Mt @0.79g/t Au, 0.21% Cu (1.0 Moz Au, 0.1Mt Cu) Total Resource • 1 172Mt 28.3Moz Au, 9.08Mt Cu Northern Gold Zone • New gold zone (+200m strike) con
Slide 12: Wafi-Golpu is highly prospective – deposit scale upside
Wafi-Golpu is highly prospective – deposit scale upside • Current drilling suggests upside for Lift 1 – High grade mineralised porphyries more extensive than previously thought (implying more contained metal) – Strike opened to north with latest drill intercepts • WR433 – 190m@ 1.15g/t Au, 2.57%Cu •
Slide 13: Wafi-Golpu is highly prospective – system scale upside
Wafi-Golpu is highly prospective – system scale upside 13 www.harmony.co.za
Slide 14: Wafi is also highly prospective
Wafi is also highly prospective • Concept Study underway to evaluate the potential for Wafi • Includes open pit mining at NRG Zone (Non-refractory gold) and underground mining at Link Zone • Exploration for more Wafi style mineralisation 14 www.harmony.co.za
Slide 15: Nambonga porphyry
Nambonga porphyry • Nambonga North resource – 1.0 Moz gold – 80 Kt copper • Mineralisation defined over 200m of strike to date • Open to north and at depth • Vein stockwork with sericite alteration 15 www.harmony.co.za
Slide 16: Wafi-transfer zone is highly prospective
Wafi- transfer zone is highly prospective • Characteristically, major porphyry copper-gold deposits occur in groups as clusters or as an alignment of several deposits along structural trend • Wafi transfer is a major northeast trending crustal structure • Numerous high tenor, cohesive gold surface g
Slide 17: Golpu pre-feasibility
Golpu pre-feasibility An exciting 17 investment proposition 17 www.harmony.co.za
Slide 18: Golpu mining approach
Golpu mining approach • Two block cave lifts: sequential mining of lifts • Rock mass preconditioning by hydraulic fracturing and conditioning techniques • Mine development plan further optimised in Feasibility Study • Remains open at depth; good potential for Lift 3 18 www.harmony.co.za
Slide 19: Golpu processing
Golpu processing • Plant will be designed in modular stages to match mining ramp-up profile • Initial capacity of 15Mtpa, upgrade to 22Mtpa and scope for expansion to +25Mtpa throughput • Flow sheet comprises primary crushing underground then a SAG and ball mill grinding circuit to achieve target to
Slide 20: Processing flow sheet
Processing flow sheet 20 www.harmony.co.za
Slide 21: Gold recovery
Gold recovery • Gold is very fine (mostly below 10 microns) • Most commonly occurs on sulphide and/or gangue mineral boundaries • Gold reports to floatation – currently float optimised for copper recovery • Potential to increase gold recovery through float optimisation • Additionally, new Lift 1 mat
Slide 22: Golpu proposed infrastructure
Golpu proposed infrastructure • Connection from Mare to Highland Hwy to be a public road • Multiple terrestrial TSF • Concentrate pipeline follows road options alignment • Camp pad commencing • Initial 500 person camp • 2 ventilation shafts • Filter plant, concentrate storage • Refrigeration and coo
Slide 23: Golpu updated Ore Reserve estimate
Golpu updated Ore Reserve estimate Contained Potential production rate Grade metal (Mtpa) Mt Au g/t Cu% Au Moz Cu Mt 2007 Pre-feasibility study 2 lifts 9 70 0.61 1.10 1.3 0.8 2012 Pre-feasibility study Lift 1 15 82 0.65 1.19 1.7 0.9 Lift 2 22 368 0.90 1.21 10.7 4.5 Total 450 0.86 1.21 12.4 5.4 Figur
Slide 24: Golpu pre-feasibility study
Golpu pre-feasibility study Pre-feasibility 22Mtpa capacity Units Result Production life Years 26 Peak Au production koz pa 560 Peak Cu production kt pa 335 Annual Au production koz pa 490 Annual Cu production kt pa 290 Gold cash cost US$/oz Negative 2 600 Copper cash cost US$/lb 0.54 Total initial
Slide 25: Production profile: PFS base case, 22 Mtpa
Production profile: PFS base case, 22 Mtpa 25 www.harmony.co.za
Slide 26: Golpu project capital requirements
Golpu project capital requirements Project-enabling capital Capex opportunities • Mining environment • Golpu has flexible timeline to optimise capital (scale, water and heat conditions) spend • Regional infrastructure • Sourcing and execution strategy will be – Roads and bridges reviewed – Power and
Slide 27: World class Golpu resource
World class Golpu resource Porphyry Copper - Gold Deposits - SE Asia (bubble size represents total Au-equivalent ounces1) 1.30 1.20 Oyu Tolgoi 248 Moz 1.10 Golpu Project 1.00 69 Moz 0.90 0.80 Tampakan 0.70 94 Moz Cu (wt %) Northparkes Grasberg Ok Tedi 0.60 12 Moz 20 Moz 329 Moz 0.50 Frieda River 83
Slide 28: Upside potential
Upside potential • Higher grade and recovery in Lift 1 – recently 3 holes in upper section of Golpu deposit returned high grade intercepts • Optimise metallurgical recovery for gold – during the feasibility study the metallurgical studies will test an increase in gold recovery • Ramp up and producti
Slide 29: Production profile – enhanced production case
Production profile – enhanced production case 29 www.harmony.co.za
Slide 30: Sustainable development
Sustainable development • Mostly PNG workforce • Focus on health, safety and welfare of • Opportunities for local businesses employees and communities • Environmental approach meets international • Implement water management strategy standards • Investment in training programs and facilities • Inves
Slide 31: Next steps
Next steps • Engagement with Government, landowner communities and other stakeholders • Exploration and drilling at Wafi-Golpu to continue • Continue community and environmental programs • Start Feasibility first half 2013, pending consultation outcomes and approval by JV Boards 31 www.harmony.co.za
Slide 32: Site trip
Site trip Chopper to Wafi, via • Lae Bulolo Hwy • Demarkwa • Access Rd Site tour • Orientation • Drillcore • Drill site • Access rd • Watut flat • Camp location Lunch Chopper to Lae, via • Camp • Process plant site • Portal and decline route • Potential TSF site • Markham farm • 9 Mile ops centre an
Slide 33: An exciting investment proposition
Henrika Basterfield Investor Relations Manager Tel: +27 (0)11 411 2314 Mobile: +27 (0)82 759 1775 Email: henrika@harmony.co.za Marian van der Walt Executive: Corporate and Investor Relations Tel: +27 (0)11 411 2037 Mobile: +27 (0)82 888 1242 Email: marian@harmony.co.za An exciting investment proposi
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