Slide 1: Salares Norte Project
Salares Norte Project MAX COMBES: PROJECT DIRECTOR 10 April 2019
Slide 2: Salares Norte: Maiden Reserve declared in an attractive mining jurisdiction
Salares Norte Maiden Reserve declared in an attractive mining jurisdiction ● The feasibility study for Salares Norte completed and peer reviewed (Brecha Principal and Agua Amarga) ● Maiden Reserve declared: 21.1Mt at 5.1g/t gold and 57.9g/t silver for 3.5Moz of gold and 4.0Moz of gold equivalent ● K
Slide 3: Context: The Journey and Location
Context: The Journey and Location
Slide 4: The Salares Norte Journey
The Salares Norte Journey Project Lifecycle, DFS status High Level Project Timeline PROYECTO PROJECT Exploration Maiden Resource Updated Resource Detail Maiden FIRST Discovery 3.55 Moz AuEq 3.9 Moz AuEq Engineering Reserve FNTP GOLD March 2011 100% Inferred 31% Indicated Apr 2018 Declared Q1/Q2 2020
Slide 5: Salares Norte Social Area
Salares Norte Social Area Maricunga Belt, Atacama Region, Chile Salares Norte Salares Norte El Salvador Diego de Codelco Chañaral Almagro Manto Verde La Coipa Audley Capital Kinross Cerro Maricunga Caldera Atacama Pacific Volcan Lobo-Marte Hochschild Kinross Refugio Kinross Candelaria Caspiche Lundi
Slide 6: Regional Geology / District Exploration
Regional Geology / District Exploration Salares Norte Definitive Feasibility Study | April 2019
Slide 7: High Sulfidation Epithermal Deposits
High Sulfidation Epithermal Deposits Global Distribution Several oxide examples in the Miocene (23 – 5 Ma) of Peru, Chile and Argentina Andes Salares Norte Definitive Feasibility Study | April 2019 7
Slide 8: Notable Andean HS Epithermal Districts
Notable Andean HS Epithermal Districts Andean HS Epithermal Analogues Initial R&R Elevation Production Production Produced Reserve Mine Reserves Dec 2015 (m) Start Year End Year (Moz AuEq) Growth (Moz AuEq) (Moz AuEq) El Indio 4,000 1979 2002 2.5 7.2 Closed 2002 2.9x La Coipa 4,100 1989 2013 3.7 7.6
Slide 9: Maricunga Belt
Maricunga Belt Northern Chile ● Total endowment + 90 Moz Au Eq; ● All, except La Coipa, Esperanza and Salares Norte are porphyry-style Cu-Au deposits, large but low grade; ● La Coipa in care and maintenance since 2013, ~7.5 Moz AuEq production over 25 220 km years; ● Maricunga (Refugio) suspended in
Slide 10: History of Discovery
History of Discovery Salares Norte Deposits ● 2008-2009: Initial RC drilling at Horizonte, with positive results: 24 m @ 4.1 g/t Au, in structurally controlled breccia with oxidised vuggy quartz ● 2009-2010: Follow-up drilling at Horizonte, intersections on the order of 100 m @ 0.5 g/t Au, in vuggy
Slide 11: Salares Norte District: Land Consolidation
Salares Norte District Land Consolidation ● Increase landholding + 25,880 ha – new claims; ● Exercised Aster 3, Aster 2, Helada and Pedernales Options in 2018; ● Other JVs under negotiation; Property Original Owner Hectares Year Acquired Gold Fields concessions Gold Fields 45,550 2008-2017 Gold Fiel
Slide 12: Salares Norte District: Targets and Priority Exploration Areas
Salares Norte District District Targets and Priority Exploration Areas Aster 2 Salares Norte Aster 3 Helada-Mayweather Pedernales Horizonte Salares Norte Definitive Feasibility Study | April 2019 12
Slide 13: Salares Norte Geology
Salares Norte Geology Salares Norte Definitive Feasibility Study | April 2019
Slide 14: Drilling History: 2011 to 2018
Drilling History: 2011 to 2018 Salares Norte Definitive Feasibility Study | April 2019 14
Slide 15: Agua Amarga and Brecha Principal Deposits: Longitudinal Section
Agua Amarga and Brecha Principal Deposits Longitudinal Section: Geology and Alteration 4,370 m 4,320 m Salares Norte Definitive Feasibility Study | April 2019 15
Slide 16: Agua Amarga and Brecha Principal Deposits: Surface Geology
Agua Amarga and Brecha Principal Deposits Surface Geology and Cross Sections Salares Norte Definitive Feasibility Study | April 2019 16
Slide 17: Geological Model Video
Agua Amarga and Brecha Principal Deposits Geological Model Video Salares Norte Definitive Feasibility Study | April 2019 17
Slide 18: Resources & Reserves
Resources & Reserves | Gove (tS
Slide 19: Salares Norte Project Mineral Resources
Salares Norte Project Mineral Resources 2018 Mineral Resource Update ● Resource now mostly Indicated at 97% by gold metal ̵ 13,463 m additional AA infill drilling ̵ GC-spaced drilling at BP and AA ● Additional ~250 koz Au in latest update ̵ Process cost improvement ̵ Definition of additional high-gr
Slide 20: 2018 Mineral Resources Update
Salares Norte Project Mineral Resources 2018 Mineral Resources Update Tonnes Au Ag Au Ag Au metal Class (Mt) (g/t) (g/t) (Moz) (Moz) (%) Measured 0 0 0 0 0 0 Indicated 23.7 4.99 56.29 3.80 42.91 97 Inferred 1.8 1.84 12.62 0.11 0.75 3 Total 25.6 4.76 53.13 3.91 43.66 100 US$ 1,400/oz Au and US$ 20/oz
Slide 21: Mineral Reserve Declaration
Mineral Reserve Declaration December 2018 Reserve Statement by Source Probable Mineral Reserve Tonnes Au Grade Ag Grade Gold Silver Mining Area (kt) (g/t) (g/t) (koz) (koz) Brecha Principal 15,373 5.23 69.20 2,587 34,205 Agua Amarga 5,706 4.84 27.57 889 5,058 Total 21,079 5.13 57.94 3,476 39,263 Not
Slide 22: Plan View – Grade Control Grid AA/BP
Salares Norte Project Mineral Resources Plan View – Grade Control Grid AA/BP Agua Amarga EIA Pit (2017) Brecha Principal Salares Norte Definitive Feasibility Study | April 2019 22
Slide 23: Grade Control Sections (BP)
Salares Norte Project Mineral Resources Grade Control Sections (BP) – 4,382 NE SNDD330: 114.00 m @ 5.20 g/t Au & 27.00 g/t Ag (from 171.00 m) SNDD297: 153.00 m @ 7.78 g/t Au & 59.45 g/t Ag (from 136.00 m) SNDD526: 100.00 @ 10.66 g/t Au & 23.67 g/t Ag (from 179.00 m) SNDD511: 98.55 m @ 10.51 g/t Au &
Slide 24: Grade Control Sections (AA)
Salares Norte Project Mineral Resources Grade Control Sections (AA) – 4,100 NW SNDD458: 31.50 m @ 5.62 g/t Au & 35.07 g/t Ag (from 256.00 m) SNDD535: 14.90 m @ 26.28 g/t Au & 35.84 g/t Ag (from 258.10 m) SNDD532: 31.00 m @ 9.06 g/t Au & 8.20 g/t Ag (from 223.00 m)SNDD458 22.30 m @ 1.39 g/t Au & 15.9
Slide 25: External Audits
Salares Norte Project Mineral Resources External Audits ● Geospark audits of QA/QC and database ● Santiago Gigola audits of Geology ● Optiro audit of Resource estimation (January 2019): “Optiro endorses the estimation and reporting of the Salares Norte resource estimate and approves the classificati
Slide 26: Resource Model Video
Salares Norte Project Mineral Resources Resource Model Video Salares Norte Definitive Feasibility Study | April 2019 26
Slide 27: Mine Design
Mine Design | Gove (tS
Slide 28: Salares Norte Mine Design: Mining
Salares Norte Mine Design Mining ● Mining Method: Open pit with conventional equipment ● Operating model: Mining and Blasting Services performed by Contractors ● System Constraint: Plant constrained, significant stockpiling strategy and rehandle of ore ● Key focus during DFS: ̵ Optimized SMU and ben
Slide 29: Mine Configuration
Mine Configuration Agua Amarga Sector WSF - North Brecha Principal Sector Ore Stockpiles WSF - South Filtered tailings deposit Salares Norte Definitive Feasibility Study | April 2019 29
Slide 30: Salares Norte Mine Design: Physicals
Salares Norte Mine Design Physicals Parameter Unit Value Waste mined Mt 308.8 Pre-strip Mt 50.6 Ore mined Mt 22.2 Indicated Mt 18.8 Marginal* Mt 2.3 Inferred Mt 1.1 Strip ratio W:O 13.9:1 Gold grade g/t 4.96 Silver grade g/t 55.6 *Marginal material economic through cost restructuring at and of LOM.
Slide 31: Salares Norte: Mining Schedule
Salares Norte: Mining Schedule Mining schedule criteria ● Pre-strip of 50 Mt during < 2 years compulsory ● Five years or more at peak mining rate to achieve reasonable mining rates from contractor ● Mining rate < 50 Mtpa (don’t stress contractor capability) ● Operable in terms of climatic conditions
Slide 32: Metallurgy
Metallurgy | Gove (tS
Slide 33: DFS Recovery Models for Gold and Silver
DFS Recovery Models for Gold and Silver LOM average ● Extensive metallurgical test work performed – 211 variability samples ● Metallurgical recovery is head grade dependent ● Free milling ore amenable to cyanidation ● Plant feed predominantly oxides (>98%) with good extraction ● LOM average recovery
Slide 34: Metal Production Profile
Metal Production Profile 6000 5000 Metal production (koz) 4000 3000 2000 1000 0 1 2 3 4 5 6 7 8 9 10 11 12 Year Au Produced Ag Produced Salares Norte Definitive Feasibility Study | April 2019 34
Slide 35: Process Flowsheet
Process Flowsheet | Gove (tS
Slide 36: Salares Norte: Process Flowsheet
Salares Norte: Process Flowsheet Salares Norte Definitive Feasibility Study | April 2019 36
Slide 37: Processing Infrastructure
Processing Infrastructure | Gove (tS
Slide 38: Site Layout
Site Layout Salares Norte Definitive Feasibility Study | April 2019 39
Slide 39: Orientation and Terrain
Orientation and Terrain Salares Norte Definitive Feasibility Study | April 2019 40
Slide 40: Processing Plant
Processing Plant Primary Crusher Workshop & Stockpile Warehouse Civic District Tailings Filter Plant Leaching Main Generation Plant Grinding Building CIP Fuel Elution Merrill Crowe Oxygen Plant Cyanide Area Grinding Thickener Lime Plant Raw & Potable Water CCD Thickeners Reagents Area MC Clarifier T
Slide 41: Tailings Filtration Plant and Tailings Deposit
Tailings Filtration Plant and Tailings Deposit
Slide 42: Site Layout
Site Layout Salares Norte Definitive Feasibility Study | April 2019 43
Slide 43: Tailings Deposition – Selection criteria
Tailings Deposition – Selection criteria Main criteria (from 2014) • Avoid site being tailings constraint – limit footprint • Limit infrastructure downstream of Facility • Avoid upstream facilities > 75% of TSF failures associated with this methodology • Adopt Best Available Technology • Improve geo
Slide 44: Tailings Deposition Methodology
Tailings Deposition Methodology Conventional hydraulically placed tailings Dry stack Operation in Chile Filter cake Salares Norte tailings at 15.7% moisture Salares Norte Definitive Feasibility Study | April 2019 45
Slide 45: Tailings Filter Plant
Tailings Filter Plant 46 Salares Norte Definitive Feasibility Study | April 2019
Slide 46: Filtered Tailings Deposit - Dry Stack
Filtered Tailings Deposit - Dry Stack ● Tailings placed on waste platform ● TSF design capacity: 24.1 Mt ● Geometry ̵ Bench slope angle: 21 degrees ̵ Bench height: 20 m ̵ Berm width: 8m ● Lined facility with drainage system ● Removed tailings capacity constraint Salares Norte Definitive Feasibility
Slide 47: Access and Roads
Access and Roads | Gove (tS
Slide 48: Salares Norte Site Access
Salares Norte Site Access Distances: ● Copiapó: 330 km ● El Salvador Airport: 180 km ● Port of Angamos: 853 km ● Las Losas Port, Huasco: 670 km 3.920 m 4.500 m Salares Norte Definitive Feasibility Study | April 2019 49
Slide 49: Salares Norte Project Access Road
Salares Norte Project Access Road Main Access Road - Existing (No improvement) Salares Norte Definitive Feasibility Study | April 2019 50
Slide 50: Power and Fuel
Power and Fuel | Gove (tS
Slide 51: Power and Fuel - Layout
Power and Fuel - Layout Salares Norte Definitive Feasibility Study | April 2019 52
Slide 52: Power Supply
Power Supply Average Demand at Delivery Points (Steady State) ● > 100 km from grid - Low demand, relatively short LOM, interconnection not feasible ● NCRE options possible, but 100% thermal generating capacity required ● Base case considers Diesel Power station (17.5 MW installed) operated under BOO
Slide 53: NCRE Strategy
Salares Norte NCRE Strategy NCRE – 80% demand 20% Electrical Energy Process Plant 14000 Ramp-up 12000 Average Demand (kW) 10000 NCRE 500 kW NCRE 8000 40% of Avg. Demand (Non-process) 6000 4000 2000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 120 Month Phase 1 - Non process lo
Slide 54: Benefits of Staged Approach
Benefits of Staged Approach Staged approach ● Secure and stabilize diesel power station for process plant commission and ramp-up - proven solution ● Demonstrate commitment by reaching ~500 kW of NCRE for non-process loads at commissioning ● Allow for construction of NCRE for process loads outside pe
Slide 55: Water Supply
Water Supply | Gove (tS
Slide 56: Raw Water Supply
Raw Water Supply Pipeline (HDPE 10”) Pipeline (Steel 8”) 4100-TK-0042 Raw Water Storage Tank ● Salares Norte granted water rights are 114 l/s ● Water supply from 2 wells with current water rights ̵ WEDR001 = 58 l/s (12 km) ̵ WEDR003 = 27.2 l/s (13 km) ● Water extraction permit requested in the EIA i
Slide 57: Sustainable Development
Sustainable Development | Gove (tS
Slide 58: Safety & Health Management
Safety & Health Management RISK MANAGEMENT OCCUPATIONAL HEALTH Prepare and implement preventive Promote and maintain the actions to control the critical risks highest degree of physical and of the operation.. mental well-being. • Visible Leaderships Implementation of legal health • Inspections proto
Slide 59: Environmental Management
Environmental Management BASE LINE AND BIODIVERSITY WATER MANAGEMENT Management of the biotic environment and collection Protect Water resource. of information as the base line of the Salares Norte project. • Monitoring wells • Hydrogeological model. • Fauna, with focus on the Chinchilla. • Environm
Slide 60: EIA Process Status
EIA Process Status ● Environmental Impact Assessment (EIA) was submitted on July 4th of 2018 to the Environmental Evaluation Service of Atacama (SEA) ● It was accepted by SEA for processing on July 11th, 2018 ● EIA submitted due to the significant effect on the renewable resources, specifically on:
Slide 61: Project Execution Strategy
Project Execution Strategy | Gove (tS
Slide 62: Salares Norte: Summary Schedule
Salares Norte: Summary Schedule Salares Norte Definitive Feasibility Study | April 2019 63
Slide 63: Investment Case Results
Investment Case Results | Gove (tS
Slide 64: Initial CAPEX and AISC
Salares Norte Initial CAPEX and AISC Initial CAPEX (US$833.3M) AISC (US$545/Au-eq.oz) Contingency Sust.CAPEX Other 13% Mine 4% 6% 19% Closure 4% Mine 32% Owner´s Cost 14% G&A 15% TSF and WSF 1% Site Utilities 15% Process Plant 38% Process 39% 65
Slide 65: Metal Production and AISC
Metal Production and AISC 700 700 599 600 602 600 600 545 544 493 All-in-Sustaining Cost (US$/eq.oz) 500 500 Gold Production (Au-eq. Oz) 457 426 406 400 353 356 357 352 364 Rehandle only 400 300 300 200 200 154 103 101 100 68 100 48 0 0 1 2 3 4 5 6 7 8 9 10 11 12 Year Au-eq. Production AISC Salares
Slide 66: Investment Evaluation Model: Main Outcomes
Investment Evaluation Model: Main Outcomes Metric Units IFS Pre-Development Cost from Date of Study (DFS) US$M 80.5 Initial Capex US$M 833.8 All-in-Sustaining Cost (excluding Initial Capex) US$/eq.oz 545 All-in-Cost (including Initial Capex) US$/eq.oz 785 FCF Margin % 46 Discounted to Construction D
Slide 67: Next steps
Next steps | Gove (tS
Slide 68: The Next Steps
The Next Steps ● Obtain EIA approval ● Advance Detail Engineering and Permitting ● Funding strategy ● Final Board approval ● Continue District exploration Salares Norte Definitive Feasibility Study | April 2019 70
Slide 69: Thanks
Thanks