Slide 1: Overview of the South Deep Project Investors Visit
Overview of the South Deep Project Investors Visit 08 February 2013
Slide 2: Forward looking statements
Forward looking statements Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. In particular, the forward looking statements in this document include
Slide 3: Our Vision and Values
Our Vision and Values South Deep Site Visit, 8 February 2012 KM Page 3
Slide 4: Locality – Witwatersrand Gold Fields
Locality – Witwatersrand Gold Fields South Deep JOHANNESBURG Scale 0 100KM CARLETONVILLE EVANDER POTCHEFSTROOM KLERKSDORP GREYLINGSTAD WESTERN DEEP LEVELS VREDEFORT KROONSTAD WELKOM LEGEND Central Rand Group West Rand Group Historic production: > 1 600 000 000 oz of gold 4.5bn tons of ore treate
Slide 5: Locality – South Deep
Locality – South Deep South Deep Site Visit, 8 February 2012 KM Page 5
Slide 6: History
History • 1950: Prospecting in the area commenced • 1961: Production at Western Areas Gold Mine (WAGM) commenced • 1999: Placer Dome Western Areas (PDWA) Joint Venture (JV) formed • 2000: Name changed to South Deep Gold Mine • 2005: Twin Shaft Complex opened • 2006 Gold Fields acquired Barrick’s 50%
Slide 7: Safety
Safety LDIFR FIFR 25 1.2 21.29 0.93 20 0.8 15 10 5.78 0.4 5 2.8 2.4 0.12 2.3 1.9 0.07 0.06 0 0 0 0 F2008 F2009 F2010 F2011 C2011 C2012 F2008 F2009 F2010 F2011 C2011 C2012 SIFR 8 6.66 6 4 2.11 2 1.1 0.84 1.09 0.98 0 F2008 F2009 F2010 F2011 C2011 C2012 WORLD CLASS SAFETY STANDARDS South Deep Site Visi
Slide 8: Overview – building a world class mine
Overview – building a world class mine World class reserve well understood • Landmark Union Agreement on new Operating Model – 2 October 2012 • Production build-up to run-rate of 700 Koz by end of 2015 • De-stress development increased 75% year on year. • Self-funding by end of 2013 Major progress o
Slide 9: New Operating Model
New Operating Model Multi-phased approach to support South Deep ramp-up by 2015 1 Vision: 1 Phase 1: CHANGE Phase 2: OPTIMISE Phase 3: IMPROVE Future operating model General business 6 union on neengagement initiatives ives initiatives processes 1.1 2.1 O ORG UNIT DESIGN Capital Infrastructure A 1.2
Slide 10: Our People
Our People • Employ approximately 3,500 people on operation – full production will employ 4,000 people (excluding working cost contractors) − Additional ~2,800 people in capital expansion project • Diverse workforce • Well trained and qualified personnel • Well paid and incentivised personnel • Worl
Slide 11: Sustainable Development
Sustainable Development Environmental Management • Management of environmental aspects in line with latest legislative requirements • Environmental Management Systems according to best practice international standards (ISO14001 certified) • Water Management – Water use license • International Cyanid
Slide 12: Geology - Exploration
Geology - Exploration Surface Pretoria Group Chuniespoort Group Black Reef Base at ± 1800mbc Klipriviersberg Group VCR Base at ± 3000mbc D5 D3 D4 Upper D1 D2 Elsburgs D7 Orig. D6 D8 South Deep Site Visit, 8 February 2012 MK Page 12
Slide 13: Geology - Orebody
Geology - Orebody South Deep Site Visit, 8 February 2012 MK Page 13
Slide 14: Geology – Down-dip extension
Geology – Down-dip extension Mining Areas Ezulwini Cooke 3 Twins Shafts South Shaft Surface 2400 m 1500 m 1000 m 2439 m Cooke 3 Shaft 3400 m 2500 m VCR Ezulwini # South Shaft SV1 / SV3 Subcrop South Deep Current Mine Phase 1 Upper Elsburg South Deep Phase 2 South Deep Site Visit, 8 February 2012 MK
Slide 15: Mineral Resources
Mineral Resources Measured and Indicated Tonnes (Mt) Grade (g/t) Gold (‘000 oz) Classification Dec 11 Dec 10 Jun 10 Dec 11 Dec 10 Jun 10 Dec 11 Dec 10 Jun 10 Underground Measured 51.4 41.5 40.5 7.3 7.7 7.4 12,015 10,331 9,684 Indicated (AI) 199.0 250.5 125.7 7.0 6.6 8.7 44,606 53,523 35,016 Total Ab
Slide 16: Mineral Resources
Mineral Resources Inferred Tonnes (Mt) Grade (g/t) Gold (‘000 oz) Classification Dec 11 Dec 10 Jun 10 Dec 11 Dec 10 Jun 10 Dec 11 Dec 10 Jun 10 Underground Inferred (AI) 10.6 17.2 78.0 8.8 6.3 5.8 3,012 3,460 14,566 Inferred(BI) 16.9 21.8 - 6.6 6.5 - 3,557 4,572 - Total 27.5 39.0 78.0 7.4 6.4 5.8 6,
Slide 17: Mineral Reserves
Mineral Reserves Managed Tonnes (Mt) Grade (g/t) Gold (‘000 oz) June June June Classification Dec 2011 Dec 2010 2010 Dec 2011 Dec 2010 2010 Dec 2011 Dec 2010 2010 CM – Proved 15.2 14.9 14.1 6.0 6.5 5.9 2,929 3,113 2,700 CM – Probable 6.6 1.8 3.7 4.2 5.5 4.2 885 308 505 NOW - Probable 63.5 56.2 42.5
Slide 18: LoM Sequencing
LoM Sequencing Development in Phase-1 SoW East Stoping in Phase-1 SoW West (Block-B) (Block-A) Corridor-4 starts in 2018 Reaches Corridor 3 & 4 by 2025 Current to 2025 South Deep Site Visit, 8 February 2012 MK Page 18
Slide 19: LoM Sequencing
LoM Sequencing Development in Phase-1 SoW East Stoping in Phase-1 SoW West (Block-B) (Block-A) Corridor-4 starts in 2018 Reaches Corridor 3 & 4 by 2025 Production from SoW reaches 200 Kt/m Current to 2035 South Deep Site Visit, 8 February 2012 MK Page 19
Slide 20: LoM Sequencing
LoM Sequencing Phase-1 NoW (corridors) depleted by 2054 Current Mine depleted by 2047 (95 Oline) Development in Phase-1 SoW East Stoping in Phase-1 SoW West (Block-B) (Block-A) Corridor-4 starts in 2018 Reaches Corridor 3 & 4 by 2025 Current to 2060 South Deep Site Visit, 8 February 2012 MK Page 20
Slide 21: LoM Sequencing
LoM Sequencing Development in Phase-1 SoW East Stoping in Phase-1 SoW West (Block-B) (Block-A) Corridor-4 starts in 2018 Reaches Corridor 3 & 4 by 2025 End of extended LOM (2080) Current to 2080 South Deep Site Visit, 8 February 2012 MK Page 21
Slide 22: Mining Philosophy
Mining Philosophy Mining a massive orebody at depth MB Depth Equivalent 1200m below De - stressed zone surface 30 - 40 Mpa 3000 - 4500 psi Front abutment Depth 2600m Destress stope stress 500 Mpa below surface 72 500 psi stress 75 Mpa 11 000 psi South Deep Site Visit, 8 February 2012 BW Page 22
Slide 23: Mining Philosophy
Mining Philosophy Mining a massive orebody at depth: Destress envelope South Deep Site Visit, 8 February 2012 BW Page 23
Slide 24: Destress performance to date
Destress performance to date Achieving the de-stress schedule is the keystone to executing the plan Destressing since C2010 50000 40000 30000 25704 20000 11088 9986 10000 17652 13548 14743 0 2010 2011 2012 Current Mine Future Mine 75% Improvement year on year South Deep Site Visit, 8 February 2012 K
Slide 25: Backfill placement in 2012
Backfill placement in 2012 Backfill (m³) 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 Nov-12 Jul-12 Feb 12 Apr-12 Jan 12 Sep-12 Oct-12 C2010 C2011 C2012 Mar-12 Dec-12 May-12 Jun-12 Aug-12 Actual South Deep Site Visit, 8 February 2012 KM Page 25
Slide 26: Workshop Progress
Workshop Progress Construction and completion of workshops ASSEMBLY BAY Phase-1 Phase-3 Mining completion Oct ’12 Mining completion Aug ’13 Secondary support Mar ’13 Secondary support Feb ’14 Wetcrete Apr ’13 Wetcrete Aug ’14 RIG BAY 3 LHD BAY 3 OFFICE 3 93L Workshop DUMPTRUCK BAY RIG BAY 2 LHD BAY
Slide 27: Mining Methods: De-stress Mining
Mining Methods: De-stress Mining Main-access-drive 1 Stoping-drive mining Stoping-drive Recently filled stoping drive 2.2m 2 Advance stope-access-drive 3 Stoping-drive completion South Deep Site Visit, 8 February 2012 GP Page 27
Slide 28: Mining Methods: Drift and Bench Mining
Mining Methods: Drift and Bench Mining 1 Primary drift mining Drift access Bench access 2 Bench access 3 Bench mining Mining direction Mining direction South Deep Site Visit, 8 February 2012 GP Page 28
Slide 29: Mining Methods: Longhole stoping
Mining Methods: Longhole stoping Slot access 1 Longhole stope access 2 Slot development Slot raise 3 Slot development 4 Stoping 5 Stoping Completed slot South Deep Site Visit, 8 February 2012 GP Page 29
Slide 30: Mining Methods: Combined
Mining Methods: Combined 3D View of planned mining Drifts Long hole stoping Drives De-stress Stope Drives De-stress Stope Access Drives South Deep Site Visit, 8 February 2012 GP Page 30
Slide 31: Existing Mine Infrastructure
Existing Mine Infrastructure Colour Coding: Red Up Cast. Green Down Cast Twins Main Shaft Gold Rock Handling Capacity South Shaft Twins Ventilation Shaft Metallurgical Plant 1.4km SV 1 SV 2 33 Lvl 50 Level Plugs 48 Lvl SV 3 51 Level Pump Intermediate Pump 49 Lvl Station Stations 50 Lvl 53 Lvl 56 Lvl
Slide 32: Tailings Storage Facility
Tailings Storage Facility South Deep Site Visit, 8 February 2012 MM Page 32
Slide 33: Backfill Infrastructure
Backfill Infrastructure Full Plant Tailings – Backfill plant at South Shaft South Deep Site Visit, 8 February 2012 MM Page 33
Slide 34: Metallurgical Plant Expansion
Metallurgical Plant Expansion Milling, Crushing & Thickening South Deep Site Visit, 8 February 2012 MM Page 34
Slide 35: New Mine Rock Handling Infrastructure by 2014
New Mine Rock Handling Infrastructure by 2014 In-stope Truck Tips 95-1W 95-2W 95-3W The Silos are required for life of mine, where traditional ore passes would fail with short life spans between costly rehabilitation. The additional costs for the Silos was approved in the NMD C.O.S. February 2012 Fe
Slide 36: Annual capital spend
Annual capital spend Actual to-date and Forecast to project scope completion 3.000 2.576 2.500 1.982 2.000 1.884 1.672 1.599 1.500 R ‘Bn 0.540 Sustaining Capital 1.578 0.957 0.540 1.000 0.500 0.000 F2010 C2010 - H2 C2011 C2012 C2013 C2014 C2015 C2016 Capex Actual Capex Forecast South Deep Site Visit
Slide 37: Highlights of 2012
Highlights of 2012 Project status is at 42 months out of 60 months program • Ventilation Shaft infrastructure hoisted the first skip on the 16th October 2012 • Temporary Ore Pass system was commissioned at the end of September 2012 • Metallurgical Plant expansion project was completed as planned in
Slide 38: Production indicators
Production indicators Steady state R/ton Milled 800 Tons Milled (‘000) 3,960 Working cost R/kg 150,000 Ounces Produced (‘000) 700 Average Cash Cost US$700/ounce Average NCE US$900/ounce South Deep Site Visit, 8 February 2012 KM Page 38
Slide 39: Thank you
Thank you