Slide 1: A Premier Australian Copper Producer
For personal use only A Premier Australian Copper Producer DeGrussa Copper Mine – Broker and Investor Site Visit – 7 March 2014
Slide 2: Mining Tour
2 For personal use only Mining Tour
Slide 3: Underground Visit
For personal use only Underground Visit 2400 – S2 paste walls 2250 C1E VA5 DD platform C4 RAD C4 Development C5 3
Slide 4: DeGrussa Life-Of-Mine Development
For personal use only DeGrussa Life-Of-Mine Development 4
Slide 5: Current Mining & Stoping Activities
Current Mining & Stoping Activities • Two stopes now on-line with For personal use only four large stopes to commence in March – April 2014 DG_2325_810 90 kt @ 6.5 % • Paste plant performance stabilised with above target performance achieved under gravity flow conditions C1_2275_376 123 kt @ 5.2% •
Slide 6: Life-of-Mine Stopes – C1, C1E and DG Ore Bodies
For personal use only Life-of-Mine Stopes – C1, C1E and DG Ore Bodies C1 East Stopes C1 Stopes DeGrussa Stopes 2200 Level East 2200 Level West 6
Slide 7: Life-of-Mine Stopes – C4 and C5 Ore Bodies
For personal use only Life-of-Mine Stopes – C4 and C5 Ore Bodies C5 Ore Body C4 Ore Body. Flat dipping ore body to use cut-and-fill 7
Slide 8: C4 and C5 Decline Development
C4 and C5 Decline Development • Redesign of C4 and C5 Decline completed to For personal use only keep the decline within the siltstone and dolerite rock units – good ground conditions • Detailed geotechnical review and drilling completed to confirm new decline path • Additional pumping capacity bein
Slide 9: C4 and C5 Underground Development
For personal use only C4 and C5 Underground Development C1 Orebody 2200- 2250 C1/C1E production area Planned C5 Diamond Drill Drive C4 decline development Planned C5 Development Planned C4 Development 9
Slide 10: DG_2300_ – First stope mined under Paste Fill
For personal use only DG_2300_ 884 – First stope mined under Paste Fill DG_2325_885 2325 DG_2300_884 Mined under Paste Fill 2300 • DG_2300_884 was the first stope to be mined under paste. Full extraction 2375 was achieved without paste dilution from the DG_2325_885 stope above. • DG_2325_790 was pas
Slide 11: C1 Drilling
For personal use only C1 Drilling • Recent underground grade control drilling has brought the majority of the C1 ore body, down to the 2150M RL, to a ‘mine ready’ status • Below the 2150m RL further drilling is required to convert to Mining ready ‘mine ready’ status GC drilling required
Slide 12: C4 Proposed Drilling
For personal use only C4 Proposed Drilling • Grade control drilling OBLIQUE VIEW will continue to target the C4 orebody down plunge from the 2200DDD drill drive • Exploration drilling to take place from the 2176 (VA6) and target the upper area of the C4 orebody between the Shiraz and Merlot faults –
Slide 13: Processing Tour
13 For personal use only Processing Tour
Slide 14: Processing Flowchart
For personal use only Processing Flowchart 14
Slide 15: Copper Recovery
Copper Recovery • Sustained recoveries of +90% Copper Recovery For personal use only treating underground ore 95 • Recovery matches DFS recovery 90 model Recovery (%) 85 • On target for sustained 92% recovery 80 • Recovery increase attributable to 75 improved operational stability in 70 flotation fo
Slide 16: Gold Recovery
Gold Recovery • Mineralogy undertaken to better Gold Recovery For personal use only understand gold associations: 48% • Confirmed gold occurs almost 46% exclusively as electrum 44% • Gold Recovery (%) Typically associated with pyrite when 42% observed • Extremely fine <3µm 40% 38% • Further testwork
Slide 17: Milling Throughput Improvement Program
Milling Throughput Improvement Program • Milling throughput has been influenced by Mill Throughput Rate For personal use only higher than expected critical size material • Milling performance has been stabilised at 210 1.5mtpa with changes to operating strategy: Throughput (dtph) • Ore blend managem
Slide 18: Paste Plant
For personal use only Paste Plant Picture of flow chart 18
Slide 19: Paste Plant
Paste Plant • October 2013 shutdown resolved issues with Paste For personal use only Plant operational performance • Second binder silo commissioned and binder supply contract in place • Improved operational performance attributable to: • Increased operational focus and supervision • Improved mainte
Slide 20: Exploration Tour
20 For personal use only Exploration Tour
Slide 21: DeGrussa – C5 Exploration Drilling
For personal use only DeGrussa – C5 Exploration Drilling Proposed C5 Resource Definition Drilling Programme Proposed C5 Exploration Drilling Programme Drilling programmes to commence mid CY2014 when C5 drill drive is complete 21
Slide 22: DeGrussa – Recent Exploration Drilling – Anomalous Results
For personal use only DeGrussa – Recent Exploration Drilling – Anomalous Results Recent Aircore Drilling at the Shed Well, Homestead and Gascoyne East project areas have defined anomalous copper in favourable host lithologies Continued work at Cow Hole Bore has confirmed the continuity and tenor of
Slide 23: DeGrussa – Co Funded Drilling – Linking the Sequence
For personal use only DeGrussa – Co Funded Drilling – Linking the Sequence 7170000mN CF-DD1 Possible Extension of C1 Host PROPOSED CO-FUNDED DIAMOND DRILLHOLE CF-DD2 EXISTING DRILLHOLE COVERAGE Possible Extension of RAB Drillhole Duplicated Magazine Member Aircore Drillhole Reverse Circulation Drill
Slide 24: DeGrussa – Research & Development – Seismic Study
DeGrussa – Research & Development – Seismic Study PLAN OBLIQUE PLAN VIEW VIEW A high resolution surface 3D seismic survey For personal use only has been completed over the Conductor 5 SEISMIC SURVEY AREA orebody. This survey detected the position of CONDUCTOR 5 the mineralisation at a low level of c
Slide 25: Talisman – Datasets Under Evaluation
Talisman – Datasets Under Evaluation A high quality dataset is For personal use only available from the Talisman teams recent exploration program. This data, viewed with the DeGrussa knowledge base, is already providing encouraging geological indicators. Springfield • 42 DDH • 325 RC • 386 AC • 594
Slide 26: Talisman – Work Program Commenced
Talisman – Work Program Commenced • Geochemical review: Halloween and Halloween West datasets For personal use only • Initial indications are that additional assaying needs to occur on existing drill samples to allow evaluation of the key Principal Components Analysis as identified at DeGrussa • Det
Slide 27: Talisman – Geology Model Being Reviewed
Talisman – Geology Model Being Reviewed • Excellent Imagery For personal use only • Complex Geology – understanding the magnitude of structures takes time • Ability to leverage off our experience • High quality dataset an excellent springboard for assessment 27
Slide 28: Talisman – Halloween and Halloween West
For personal use only Talisman – Halloween and Halloween West Image from Talisman Mining AGM Presentation November 2013 • VHMS signatures present in first pass exploration efforts by Talisman • Projects are contiguous with the SFR tenements and increase prospective search space • Geologists actively
Slide 29: Thaduna Project – Resources
For personal use only Thaduna Project – Resources THDD238 – chalcocite replacing bornite replacing THDD238 – chalcocite replacing bornite in a quartz chalcopyrite in a graphitic shale, interval assayed 11.10% graphitic shale, interval assayed 12.62% Cu and 45g/t Ag Cu and 37g/t Ag over 0.4m.* over 1
Slide 30: Thaduna Project – Geology Work Plan
Thaduna Project – Geology Work Plan To validate the resource and prepare for the coming phases of project evaluation: For personal use only • Consolidate all drill core and chips • Check downhole surveys with a gyroscopic tool • Review sequential copper assaying vs geology • Update structural model
Slide 31: Thaduna Project – Metallurgical Work Plan
Thaduna Project – Metallurgical Work Plan Metallurgical drilling and test work is required to allow discrimination of the oxide and transition For personal use only zones mineralogy and to then define the correct processing methodology. To facilitate this we have sourced specialist shallow angle dri
Slide 32: Thaduna Project – Two Opportunities Being Evaluated
Thaduna Project – Two Opportunities Being Evaluated Oxide Project Sulphide Project For personal use only • Treatment through proposed • Treatment through existing DeGrussa DeGrussa Copper Oxide Heap Leach Flotation Processing Plant • Metallurgical testwork • Metallurgical testwork • Will require ~25
Slide 33: A Premier Australian Copper Producer
For personal use only A Premier Australian Copper Producer DeGrussa Copper Mine – Broker and Investor Site Visit – 7 March 2014
Slide 34: Important Information and Disclaimer
Important Information and Disclaimer Forward-Looking Statements This presentation has been prepared by Sandfire Resources NL. This document contains background information about Sandfire For personal use only • Resources NL current at the date of this presentation. The presentation is in summary for