Harmony Gold Mining Co. Ltd. · JSE:HAR
Harmony Gold Mining — PNG Mining Conference 2007
75 slides from Harmony Gold Mining's conference presentation, Oct 30, 2007
Slide 1: PNG Mining Seminar: Overview of Harmony PNG
PNG Mining Seminar October 2007 Overview of Harmony PNG
Slide 2: Safe Harbor Statement
PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOR 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 intended to be covered by the safe
Slide 3: A history of strong resource growth
A history of strong resource growth… Harmony gold resources in PNG (Moz) 20 18 Total gold 16 resource of 15.1 14.7 14 15 Moz 12.7 12.2 12 10 Exploration work 8 5.9 continues 6 4 3.0 2 0 2002 2003 2004 2005 2006 2007 2008 2009 Source: Company reports
Slide 4: With additional Cu, Ag and Mo resources
…with additional Cu, Ag and Mo resources Total PNG resources (Moz) Gold equivalent resources (Moz) 35 Total gold equivalent resource of 30 Moz Lihir 30 1.6 1.7 Harmony 25 PNG 11.6 20 Ok Tedi 15 30.0 Porgera 10 15.1 Kainantu 5 0 10 20 30 40 0 Gold Copper Silver Moly Total Source: Company reports Note
Slide 5: What are we proposing to mine?
What are we proposing to mine? Polymetalic resources Total in situ resource value 5% Total reserves of 4.2Moz 6% Gold Total resources of 15.1Moz Total reserves of 1.7bn lbs 50% Copper Total resource of 3.9bn lbs 39% Total reserves of 41.7Moz Silver Gold Copper Silver Moly Total resource of 89.6Moz N
Slide 6: Project sequencing for the future
Project sequencing for the future 10 year reserve life + ‘high probability’ resource extensions Hidden Valley 2009 Open cut Gold mine Commissioning Wafi Golpu 2008-10 2012 +13 year life Open cut + UG Feasibility Target Gold & Copper Commissioning Nambonga, Resource Mine 2015 Biamena Kesiago definiti
Slide 7: Our PNG team
Our PNG team – 550 people on site Project – Ausenco – EPCM contractor Construction – Optimisation studies continue Hidden Valley – Expected to employ around 830 people Operations – Resource Drilling ongoing at Kaveroi – Pre-stripping started at Hidden Valley – Harmony led team using consultants SRK,
Slide 8: Recent developments: Nambonga North
Recent developments Nambonga North 100 m E 200 m E 300 m E 400 m E First hole WR 258: Drilling as we 74m @ 5.6 g/t Au, A 2 8 26 4.3 % Zn, 54 g/t Ag 25 R speak… R W W 40 0 mN and 1.2 % Pb Metasediments ve ining o rk stock w 30 0 mN Second Hole WR 262 ? e Inte ns ry intersected porphry copper porphy .
Slide 9: Moving forward
Moving forward Mine Construction continuing at Hidden Valley Construction Commissioning due for 2009 Pre-feasibility study complete at Wafi/Golpu Project Further optimisation studies progressing development Next step move to DFS Resource Significant targets/projects identified to date generation Nea
Slide 10: Hidden Valley Update
PNG Mining Seminar October 2007 Hidden Valley Update Hidden Valley A Mine to be Proud of
Slide 11: Overview
Overview Lae Reserves M Tonnes g/t K ozs Au Reserve 44.7 2.0 2,872 Ag Reserve 38.1 34 41,759 Wafi Au Resource 91.4 1.9 5,471 Ag Resource 84.7 32.8 89,578 Bulolo Project Summary Wau Mine Life Years 9.7 Ore Tonnes M Tonnes 41.9 Hidden Au Grade g/t Au 2.1 Valley Ag Grade g/t Ag 38 Au Recovered Ounces (
Slide 12: Safety
Safety Our Vision: Our Strategy: • Risk Registers • Safety Management Plan Hidden Valley • Supervisor engagement Nambawan Seif Mine long PNG • Safety Culture • Emergency Response Hidden Valley The Safest Mine in PNG • Medical Capability
Slide 13: The Site
The Site Bulolo Wau 32 Kms 7 Kms Upper Watut Bulolo River River Bulldog Tributaries Track ML 15 1B oun dar y ML 151 Bou n dar y
Slide 14: The Operation
The Operation Hamata Open Pit • 3-4 year mine life • Reserves of 506 k oz Au • Open at depth with U/G potential Plant Site Hidden Valley Open Pit • 10 year plus mine life • Reserves of 2.4 M oz Au & 41.8 M oz Ag • Ongoing resource drilling Overland Conveyor
Slide 15: The Operation
The Operation Main Waste Dump • Stores 220 Mt waste rock • Encapsulates potentially acid forming (PAF) waste South Dump • Stores 7 Mt mostly oxide waste Tailings Storage Facility • Stores 41.3Mt tailings
Slide 16: The Operation
The Operation Hidden Valley Open Pit • 10 year plus mine life • Reserves of 2.4 M oz Au & 41.8 M oz Ag • Ongoing resource drilling
Slide 17: Kaveroi Drilling
Kaveroi Drilling 18m @14.26 g/t Au Target Resource Conversion & 780g/t Ag 800,000 – 1,000,000 ozs Au Metasediment Metasediment Program Bou • 12 Months ndi • 56 holes ng • 16,600m DD Fau Bo • 3475m RC lt un din • K20M investment gF au Granodiorite lt
Slide 18: Hidden Valley
Hidden Valley Bou ndin Metasediment Bo un g din Fau gF au lt Bo lt un din Bou gF au ndi lt – HV ng Fa Fau ult Granodiorite lt Granodiorite Potential enrichment zone
Slide 19: Hamata
Hamata • 2006 drilling program increased reserves by 46% (156 k ozs) and resources by 52% (206 k ozs) • Outcropping high grade ore Porphyry Intrusion High Grade narrow pay shoots • Current pit design work could add up to 180 k ozs using in-pit crushing and conveying options • Potential for further c
Slide 20: Processing
Processing • Milling Capacity 4.2 Mtpa • Single stage SAG milling, Gravity, Flotation, CIL, CCD, Merrill-Crowe precipitation, elution, refining and cyanide destruction circuits • Recoveries of 94% Au and 87% Ag • Platform excavation ~ 40% complete • 71 of 75 process & plant equipment tenders issued
Slide 21: Equipment
Equipment • All new Komatsu Mining Fleet • Total 51 pieces of equipment: 26 Trucks, 3 Excavators, 5 Dozers, 4 Loaders, 8 Drills, 3 Graders, 1 water cart and 1 fuel truck • US$40M Investment • All new Komatsu owner-operated Construction Fleet • Total 53 pieces of equipment: 19 Trucks, 15 Excavators,
Slide 22: People & Training
People & Training • Hidden Valley will employ 830 people (600 Harmony 230 Contractor) • >75% of work force Morobe based • >50% landowners • >92% PNG Nationals • Training program supports landowner employment and localisation targets • $1M truck simulator used for aptitude testing and structured init
Slide 23: Social Responsibility
Social Responsibility • Police Station & Health Centre upgrades • Work ongoing at the High School • HIV/Aids VCT Clinic, with awareness programs in schools/communities • Educational support provided for over 395 students • Harmony Committed to spending locally, with 53% of total expenditure spent in
Slide 24: Environmental Stewardship
Environmental Stewardship • All regulatory permitting completed under the new Environmental Protection Act (2000) • Extensive baseline data available • Consistent with ISO14001, the World Bank Equator Principles, and the International Cyanide Management Code (ICMC) • Progressive rehabilitation progr
Slide 25: Current Project Status
Current Project Status • Access road complete • Infrastructure sites & roads complete • Pihema Creek diversion complete • Camp construction underway • Hidden Valley Pre-strip started • Ausenco (EPCM contractor) on site • TSF construction initiated • Plant site excavation ~ 40% complete • Engineering
Slide 26: Questions
Questions www.harmony.co.za Hidden Valley A Mine to be Proud of
Slide 27: Wafi-Golpu Pre-Feasibility Update
PNG Mining Conference 2007 Wafi-Golpu Pre-Feasibility Update
Slide 28: Tenement Location
: Tenement Location HARMONY A. emer a REFERENCE MAP ; —_ Nx oheooname W . r eateng ) f ) << = BISWARK SEA “ \ 13 pone CITY XA : onic me : <4 Que SOLOMON SEA Oport MORESBY 7 { a u cE CORAL SEA be u 5 (x ee p = AUSTRALIA j Bee: + one (A) re WAFI/GOLPU! LOCATION MAP > Pat PROJECT | a LEGEND { SOLOMON S
Slide 29: Wafi/Golpu key deposits
Wafi/Golpu key deposits Golpu Western Zone NRG1 Link Zone Nambonga Key: Exploration target Considered as Part of PFS
Slide 30: Section view of key deposits
Section view of key deposits •Oblique Section looking NW as 600N indicated with red line on previous slide BOCO Gold Cap TOFR 400N Supergene Diatreme Advanced Argillic 200N Phyllic Link Zone Zone Prospect Tonnes Grade Gold Grade Copper Grade 0N (Mt) g/t Au Moz %Cu Kt g/t Mo Mineralised Golpu 163.1 0
Slide 31: Feasibility Study Work Program Summary
Feasibility Study Work Program Summary • Commenced in August 2005, completed in October 2007. • Extensive drilling program completed primarily for geotechnical purposes, but also used core for metallurgical test work and improvement of the geological model. • Metallurgical test work concentrating on
Slide 32: Work Completed On Site
Work Completed On Site Road access, 10 x test pits in concentrate delivery, locations 2 and 3 tailing disposal and 9 x geotechnical trenches 15m long port requirements 2 drill holes to 30m studies Ground survey (plant site) Water quality testing 3 bore holes to 40m to Wafi drilling (geotechnical, te
Slide 33: Work Completed Off Site
Work Completed Off Site PCBC block cave analysis Drill sample prep. Drill sample Chemical water and ASL test work assay sediment analysis Tailings cyclone simulation test work Mining studies Tailings studies Metallurgical test work Major mine infrastructure design Process engineering Infrastructure
Slide 34: Update on progress
Update on progress • Pre-feasibility study (PFS) is complete to planned level of detail and accuracy: – Committee expected to approve progression of the study by the end of the calendar year; • Site team being established, with strong geology and community affairs contingent. Planning for the next p
Slide 35: Key Study Outcomes
Key Study Outcomes • Golpu capital cost is expected to be in the vicinity of US$1 billion (including all infrastructure). Additional $300 million sustaining capital during operation of the mine; • If developed NRG1 and Link Zone add $150 million and $290 million respectively to the Golpu capital cos
Slide 36: Key Infrastructure Locations/Study Options
Key Infrastructure Locations/Study Options
Slide 37: Golpu Wafi Project
Golpu Wafi Project •Plan View Open Pit Link Zone Golpu Porphyry Approx Scale 500m
Slide 38: Golpu Mine Design
Golpu Mine Design Key Findings to Date: • Feasibility Decline is required to achieve required confidence levels prior to committing to construction. • Ore body can sustain production rates of up to 9Mtpa. • It appears feasible to exclude high arsenic ore from the mine plan without a major effect on
Slide 39: Addressing some of the old problem areas
Addressing some of the old problem areas • Golpu High Arsenic Ore; – The upper 25% or the ore body suffers high arsenic grades, and this has always been seen as an obstacle to development; – Completed block cave studies with and without an arsenic constraint; – Cut off of cave draw dictated by arsen
Slide 40: Link Zone Mine Design
Link Zone Mine Design •Plan to mine 1.2MOz over 7 years •Access to ore body via Golpu feasibility decline. Minimal waste development. •Links with Golpu main decline for haulage to plant. •Ore body thickness sufficient to ensure that 3 SLC levels can be mined in any vertical plane. •Conservative loss
Slide 41: NRG1 Mine Design
NRG1 Mine Design • Open pit operation mining 3Mtpa for 5 years producing approximately 900,000 ounces; • Strip ratio is approximately 2:1 at current gold prices (increases to 3:1 at US$500/Oz due to topography constraints); • Total material movement of 48 million tonnes • Conventional CIL processing
Slide 42: Key Infrastructure Considerations
Key Infrastructure Considerations • Existing port to be used with some upgrades required; • Concentrate to be pumped in slurry form to facilities in Lae, and filtered for shipping; • Mine water will form a major part of the supply to minimise cost, remainder supplied from bores in the Watut Valley;
Slide 43: Forward Work Program
Forward Work Program • State of Play: 1. PFS Document completed currently undergoing internal review process (gate keeping); 2. Once technical review is complete, report to be forwarded to Harmony board for approval. 3. Expect approval early in 2008. • Work Progression in coming months: – Commence A
Slide 44: Final Summary
Final Summary • PFS has demonstrated technical feasibility, and economic potential of the projects at a range of commodity prices; • Awaiting board approval to take the project to the next phase; • Detailed work plan for the DFS to be developed during the next 6 months; • Development of an explorato
Slide 45: www.harmony.co.za
HARMONY’ www.harmony.co.za
Slide 46: Harmony Gold PNG Exploration Update
Papua New Guinea HARMONY GOLD PNG EXPLORATION UPDATE PNG Mining Conference, Port Moresby – 30th th October 2007 Wafi Hidden Valley
Slide 47: Exploration Objectives
Exploration Objectives Vision: • Add +3 million ounces to the resource ledger by 2010. - Allow Harmony to become a multi mine operator in PNG over the long term, through major new discoveries - Adding value to existing projects through focused exploration • Establish a safety culture. • Enhance prof
Slide 48: Exploration Priorities
Exploration Priorities Targets: • “Near Mine” targets around Wafi and Golpu with potential to impact significantly on the feasibility study. Nambonga North, Malaria West, Awembu (Kesiago) Hesson Creek, Western Zone • High-grade “sweetener” for the Hidden Valley Project Target Generation work progres
Slide 49: Tenement Location
Tenement Location ¾ 9 Granted ELs: 3,500km2 ¾ 2 EL applications: 625 km2 ¾ Grassroots Exploration Te Expenditure last financial ne m co year: K18.4 million en p ts pe ¾ Planned Exploration Budget lo r b ca el for this financial year te t o d f K33 million. in Mo m ro ¾ Exploration Department in b er
Slide 50: Regional Geology
Regional Geology Golpu Golpu Project Project Resource: Resource: 146Mt 146Mt @ @ 1.1% 1.1% Cu, Cu, 0.57g/t 0.57g/t Au Au 2,960,000 oz 2,960,000 oz AuAu 3.9 3.9 billion billion pounds pounds CuCu Wafi Au Project 47 billion pounds 47 million pounds MoMo Resource: Resource: 110Mt 110Mt @ @ 1.85 1.85 g/
Slide 51: Alluvial Mining Bulolo River
Alluvial Mining Bulolo River
Slide 52: Project / Prospect Locations
Project / Prospect Locations Lae Wafi “Near Mine” Prospects • Nambonga North, • Western Zone, • Hesson Creek, • Awembu (Kesiago), • Malaria West Wafi - Golpu Bulolo Regional Exploration Program Biamena Hidden Valley Hamata Project Hidden Valley Wau Moa Creek Kerimenge Target Generation and Greenfiel
Slide 53: Wafi Golpu Project
Wafi Golpu Project Western Zone (not currently in A porphyry Cu/Au system resource) with high sulphidation epithermal Au overprint Diatreme Golpu Porphyry* 163 Mt @ 1.1% Cu, 0.57 g/t Au, 132 ppm Mo 3.9B lb Cu, 47M lb Mo 2.96 Moz Au Wafi Au Resource* • 1 g/t grade shell (Blue) • 2.5 g/t grade shell (
Slide 54: Wafi Near Mine Targets
Wafi “Near Mine” Targets Malaria West (Cu/Au) Nambonga Nambonga North North (Cu/Au) (Cu/Au) • Significant Gold and Copper anomalies exist W outside known resource W R R2 6 25 2 8 areas with potential for major new discoveries Western Zone (Au) • 5 priority targets: - 3 Cu/Au Porphyry Prospects Diatr
Slide 55: Nambonga North
100 m E 200 m E 300 m E 400 m E A 2 8 26 25 R R W W 40 0 mN Nambonga North Metasediments ing • Located 2 km northwest of Golpu rk ve in o • Targeting based on coincident: stock w 30 0 mN - Cu / Mo Surface Geochem anomaly ? e Inte ns ry - Magnetic high porphy - EM conductor . lp h Altere d . su 20 0
Slide 56: Nambonga North
Nambonga North 0 mN A 10 0 mN 20 0 mN 30 0 mN 40 0 mN 100 m E 200 m E W R ? Metasediments 25 Ma 8 ss . su lp h . W R 26 2 ? ? 200.3m 300 m E ? Inte ns e stock w o rk ve in ing ? Altere d Porp porphy hy ry ry ? 400 m E ? 460.0m
Slide 57: Golpu Conductivity Slice
Golpu Conductivity Slice Nambonga North: Inverted EM data EM anomaly partially formed at northern edge of the grid Golpu Resource Wireframe 163Mt @ 1.1% Cu, 0.57 g/t Au, 132 ppm Mo 3.9 B lb Cu, 2.96 Moz Au, 47M lb Mo
Slide 58: Copper / Gold Prospectivity
Copper / Gold Prospectivity Malaria West • EM target • Coincident strong Cu- Mo surface geochemistry 3D Conductivity Inversion • No previous drill testing Nambonga North Oblique Section Diatreme Golpu Heking conductor: carbonaceous shale
Slide 59: Malaria West
Malaria West Massive sulphides within sheared zone
Slide 60: Wafi Near Mine Targets
Wafi “Near Mine” Targets Malaria West (Cu/Au) Nambonga North (Cu/Au) • Significant Gold and Copper anomalies exist W outside known resource W R R2 6 25 2 8 areas with potential for major new discoveries Western Zone (Au) • 5 priority targets: - 3 Cu/Au Porphyry Prospects Diatreme - 2 Gold Prospects
Slide 61: Western Zone
Western Zone • Harmony drilling during the year 9 WR204; 20m @ 10.0 g/t from 295m holes for 3800m (approx) with 26m @ 7.04 g/t from 234m WR219; excellent results 5m @ 13.04 g/t from 311m 6m @ 8.28 g/t from 320m • Mineralisation WR230; 14m @ 4.23 g/t from 293m - Structurally controlled WR234; 30m @ 6
Slide 62: Western Zone plan view
Western Zone 439000mE 439200mE 439400mE 439600mE 439800mE 440000mE 440200mE 9242200 mN WR257 9242000 mN 9241800 mN WAFI/GOLPU PROJECT WESTERN ZON E 9241600 mN MINERALISED ZONE PLAN VIE W (AMG) LEGE ND Drillhole Co llar Au Assay Resu lt in Histogram 0 100 Drawn date: 11/10/20 07 Me ters
Slide 63: Western Zone diamond drill hole section
500mRL W W R2 1 1 7m@ 1.6 1g/t Au R1 46 16m @ 5.4 g/t Au 400mRL 59 14m @ 1. 7g/t Au from 196m WR21 WR 2 6 m@ 2 .19g/t Au WRWR232 W 7m@ 1.65g/t Au R2 9 204 WR 57 23 4 9m@ 1.34g/t Au 300mRL 12m@ 1.59g/t Au 30m @ 6. 68g/t Au 7@ 0 .98 g/t Au 26m@ 7. 04g/t Au 42m@ 4.7g/t Au 8m@ 4 .3 9g/t Au 200mRL 6 m@ 1
Slide 64: Western Zone
Western Zone Link Zone Western Zone Approx 400m from decline
Slide 65: Biamena Regional Geochem & Setting
Biamena Regional Geochem & Setting Nambonga Magnetic High Wafi Golpu: 3.9 Billion pounds Cu, 0 2.5 5 9.3 Moz Au kilometers -80# Stream sediment response over Golpu up to: 3.17 g/t Au, 226 ppm Cu Biamena Prospect Kesiago-Awembu Magnetic (12km SSEHigh from Wafi) Similar setting and footprint to Wafi –
Slide 66: Biamena Soil Geochemistry
Biamena Soil Geochemistry • Ridge and spur Only a small portion of the anomaly tested so far soils completed - 0.15% Cu 545 samples 0.18% Cu 14.3 g/t • Results outline porphyry style metal zonation Mn-Zn halo surrounding Cu-Au core 1.0 g/t 0.1% Cu • Anomaly core 1km in diameter open off grid to the
Slide 67: Biamena Ridge and Spur Au Soil Geochemistry
Biamena Ridge and Spur Au Soil Geochemistry 1 km Anomalous 80 Anomalous 80 mesh mesh stream stream sediments sediments collected from these drainages up to: 1.1 g/t 1.1 g/t Au Au and and 0.11% 0.11% Cu Cu
Slide 68: Biamena Trench Locations
Biamena Trench Locations • 3 Line kilometers of 5m @ 6.49 g/t Au, 697 ppm Cu surface trenching completed to date 15m @ 24.2 g/t Au, 1.44% Cu • Trenching exposed gold & copper BMA001 mineralisation in 6m @ 7.57 g/t Au, 0.12% Cu 8m @ 3.54 g/t Au, 0.17% Cu outcrop. 6m @ 7.57 g/t Au, 861 ppm Cu 4m @ 3.0
Slide 69: Biamena IP-EM Survey
Biamena IP-EM Survey High chargeability anomaly marginal to magnetic intrusive, suggesting alteration IP commenced Portion completed to date 1 km
Slide 70: Project / Prospect Locations
Project / Prospect Locations Lae Wafi “Near Mine” Prospects Biamena Wafi - Golpu Bulolo Hidden Valley Hamata Regional Exploration Program Kauri Project Hidden Valley Wau Target Generation and Greenfields exploration Morobe 0 20 40 Kilometers
Slide 71: Morobe Regional Stream Sediment Geochem
Morobe Regional Stream Sediment Geochem Heyu; Soils and ssed follow-up • Major centers of +1 g/t 450000 mE 460000 mE 470000 mE Percentile ranges commenced. stream sediment anomalism with Au cutoffs in ppm (98% percentile – shown in 91 90 00 0 mN Kauri; Virgin geochem anomaly. purple). Two outline th
Slide 72: Detailed Magnetics and Target Generation
Detailed Magnetics and Target Generation 450000 mE • 2500 line km of detailed 460000 mE 470000 mE 9190 91 9000 0000 mN mN helimag (100m flying height, EL 497 100m line spacing) completed • Survey area encompasses planned mine areas and Near Mine Targets surrounding prospect areas Hamata • Excellent
Slide 73: PNG Project Inventory
PNG Project Inventory MINE DEVELOPMENT Hidden Valley PREFEASIBILITY Project Wafi Golpu PFS RESOURCE DEFINITION Golpu Porphyry Cu/Au Hidden Valley Link Zone Hamata ADVANCED PROJECTS A Zone NRG1 Biamena Kaveroi B Zone PROSPECTS WITH SIGNIFICANT INTERCEPTS Western Zone Biamena Kerimenge Hesson Ck Kaver
Slide 74: For further information www.harmony.co.za
WR 258; 100 m E 200 m E 300 m E 400 m E 74m @ 5.6 g/t Au, 4.3 % Zn, 54 g/t Ag & 1.2 % Pb from 125m Nambonga North A 2 8 26 25 R R W W 40 0 mN Metasediments g ve inin o rk stock w 30 0 mN ? Inte nse ry porphy . lp h Altere d . su ? 200.3m 20 0 mN ss Ma ? ? hy ry 10 0 mN Porp ? ? 0 mN 460.0m ? Em Taso
Slide 75: www.harmony.co.za
HARMONY’ www.harmony.co.za