Slide 1: March 2013 Quarterly Report
For personal use only March 2013 Quarterly Report Access this presentation at: http://www.brrmedia.com/event/111178 Webcast – Karl Simich, Managing Director and CEO 17 April 2013 http://www.sandfire.com.au Page: 1
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements and Competent Person’s Statement Forward-Looking Statements For personal use only • This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire Resources NL current at the d
Slide 3: Agenda
Agenda March 2013 Quarterly Report For personal use only Highlights Safety Mining Processing Production & Sales Exploration Summary Page: 3
Slide 4: March 2013 Quarterly Highlights: Production and Operations
March 2013 Quarterly Highlights Ramp-up of Concentrator and Underground Mine on target Production and Operations For personal use only Continued improved safety performance Open pit completed in April 2013, transitioning to wholly underground operations Ramp-up of underground mine on schedule Plant
Slide 5: March 2013 Quarterly Highlights: Exploration, Financial and Corporate
March 2013 Quarterly Highlights Ramp-up of Concentrator and Underground Mine on target Exploration For personal use only In-mine mapping has revealed numerous insights into structural controls, extending exploration opportunities near-mine, including the DeGrussa offset target Progressing Ore Reserv
Slide 6: Safety
Safety Further improvements in safety performance achieved For personal use only LTIFR of 2.6 at March Quarter-end, reduced from December Quarter-end 1 lost time injury sustained for the Quarter Safety performance in line with targets established in Safety Management Action Plan Page: 6
Slide 7: Mining Overview
Mining Overview Transition to wholly underground operations OPEN PIT For personal use only Stage 1 open pit completed December 2012 – 7.7Mbcm mined Stage 2 open pit completed mid-April 2013 – 5.4Mbcm mined, extracting remaining sulphide and copper and gold oxide material UNDERGROUND Three stopes dev
Slide 8: Processing
Processing Ramp-up on track to achieve targeted production from mid-CY2013 MILL THROUGHPUT For personal use only Nameplate target 310,727 tonnes milled – 24% increase vs. December Quarter Steady increase in tonnes processed: on track to achieve nameplate target of 375,000t per quarter from mid-CY 20
Slide 9: Processing
Processing Ramp-up on track to achieve targeted production from mid-CY2013 MILL THROUGHPUT For personal use only Nameplate target 310,727 tonnes milled – 24% increase vs. December Quarter Steady increase in tonnes processed: on track to achieve nameplate target of 375,000t per quarter from mid-CY 20
Slide 10: Processing
Processing Ramp-up on track to achieve targeted production from mid-CY2013 Increasing monthly recoveries, targeting +90% by mid-CY For personal use only 2013 – constrained to mid-CY2013 by: Lower recoveries (+60%) for transitional open pit sulphide material, as previously announced Head grade from i
Slide 11: Processing
Processing Ramp-up on track to achieve targeted production from mid-CY2013 For personal use only • Variation in head feed grade between stopes (generally 4-6% Cu) Target first 3 years Target based on quarterly feed • Targeted recovery range (88-93%) varies with feed grade due to fixed tail grade • R
Slide 12: Operational and Production Overview
Operational and Production Overview Transition to long-term Concentrator production fed from underground continuing For personal use only Concentrator production has steadily ramped up following the start of commissioning in October 2012 During the ramp-up of underground mine production, transitiona
Slide 13: Sales
Sales Copper and gold sales For personal use only • Increased Quarterly copper sales of 12,297t Cu and 10,155oz Au • Last high-grade DSO shipment completed in early January 2013 • Low grade ~30,000t at +10% Cu to complete the DSO sales program • Concentrate shipments progressing as scheduled Page: 1
Slide 14: Production Guidance
Production Guidance Guidance for metal production – copper and gold For personal use only Metal production Q1-Q3FY13 – Actual Q4FY13 – Guidance To June 2013 – Guidance Cu(kt) Au(koz) Cu(kt) Au(koz) Cu(kt) Au(koz) Concentrator 20 10 15 7 35 17 DSO 30 16 - - 30 16 Oxide gold - 8 - 3 - 11 Total – 2012/
Slide 15: DeGrussa – Corridor of Riches
DeGrussa – “Corridor of Riches” Minimal exploration conducted along +30km prospective corridor For personal use only +30km strike length prospective for VMS mineralisation 150m • VMS mineralising environment confirmed over +30km long, 2km wide corridor • Minimal exploration below 100m: host sequence
Slide 16: Near-Mine Exploration Success
Near-Mine Exploration Success “DeGrussa Offset” conceptual target position • In-mine mapping over small area For personal use only opened up to date has revealed Area available numerous insights into structural for mapping controls • New targets delivered from these initial theories and extrapolatio
Slide 17: Near-Mine Exploration Success
Near-Mine Exploration Success “DeGrussa Offset” conceptual target position For personal use only • Multiple target zones identified • Extending exploration opportunity near- mine • Structural geology delivering robust targets Page: 17
Slide 18: Near-Mine Exploration Success – Conductor 4
Near-Mine Exploration Success – Conductor 4 Significant extension identified to Conductor 4 VMS lens For personal use only • One drillhole completed to test the interpreted eastern extension of the C4 orebody – intersected 10.6m @ 4.46% Cu. • Resources will be updated for C4 to reflect this intersec
Slide 19: Near-Mine Exploration Success – Conductor 5
Near-Mine Exploration Success – Conductor 5 Recent drilling shows Conductor 5 is significantly thicker than current resource For personal use only • Thickest intersection of C5 massive sulphide drilled to date • Potential for resource increase (Main and Upper Zones) towards Merlot Fault • 1 conventi
Slide 20: Summary
Summary DeGrussa Copper-Gold Mine ramping up to full production; exploration delivering results Concentrator commissioning and underground mine ramp-up For personal use only continuing as planned Optimisation of grade, recoveries and throughput advancing On track for nameplate production rates from
Slide 21: March 2013 Quarterly Report
For personal use only March 2013 Quarterly Report Access this presentation at: http://www.brrmedia.com/event/111178 Webcast – Karl Simich, Managing Director and CEO 17 April 2013 http://www.sandfire.com.au Page: 21
Slide 22: Appendix: DeGrussa – Mining & Production Summary
Appendix: DeGrussa – Mining & Production Summary Strong production and sales performance Contained Copper Contained Gold March 2013 Quarter Tonnes Grade (% Cu) Grade (g/t Au) For personal use only (t) (oz) Mined - - - - - DSO Crushed 19,925 10.3 4.9 2,051 3,167 DSO sales 17,649 16.9 3.7 2,989 2,072
Slide 23: Appendix: DeGrussa – Mining & Production Summary
Appendix: DeGrussa – Mining & Production Summary Strong production and sales performance Contained Copper Contained Gold FY2013 Year to Date Tonnes Grade (% Cu) Grade (g/t Au) For personal use only (t) (oz) Mined 138,216 21.9 3.5 30,333 15,392 DSO Crushed 139,355 22.0 3.5 30,656 15,569 DSO sales 118
Slide 24: Appendix: DeGrussa – Mining & Production Summary
Appendix: DeGrussa – Mining & Production Summary Strong production and sales performance Contained Contained Gold Project to date Tonnes Grade (% Cu) Grade (g/t Au) For personal use only Copper (t) (oz) Mined 155,512 22.6 3.6 35,180 17,907 DSO Crushed 155,512 22.6 3.6 35,180 17,907 DSO sales 124,735
Slide 25: Near-Mine Exploration Success
Near-Mine Exploration Success “DeGrussa Offset” conceptual target position For personal use only • C4 interpreted to be the faulted offset of C1 • On this basis, DeGrussa (which is also truncated by the Shiraz Fault) should also have an Fault plane trace offset equivalent • This exploration premise
Slide 26: Near-Mine Exploration Success
Near-Mine Exploration Success “DeGrussa Offset” conceptual target position SOUTH NORTH For personal use only WEST EAST OPEN PIT DEGRUSSA 4m mineralised zone OPEN PIT CONDUCTOR 1 8m mineralised zone 5.1m at 1.5% Cu 2.5m at 0.6% Cu PRE-FAULTING DEGRUSSA CONDUCTOR 1 1.4m at 0.3% Cu 4.3m at 0.9% Cu CROS
Slide 27: DeGrussa Regional Geology
DeGrussa Regional Geology Enhanced understanding from mine-scale mapping For personal use only • Both Priority and Secondary Target Units consist of Dolerite + Basalt + Sediments • Footwall Unit consists of Conglomerate, Siltstone and Hematite Shales Page: 27
Slide 28: Regional Geology
Regional Geology Opportunity in complexity For personal use only • Leverage off local knowledge • Understand broad basinal context • Target into coinciding ‘hot spots’ Page: 28
Slide 29: North Robinson Range – +7km Geochem Anomaly
North Robinson Range – +7km Geochem Anomaly Extensive multi-element Aircore anomaly requiring follow-up For personal use only • Needs thorough analysis due to current anomaly size and strength • Current drilling still very wide spaced >400m x 100m Page: 29