Slide 1: Overview of the South Deep Project
Overview of the South Deep Project 05 June 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 Investors Visit, 5 June 2013 KM Page 3
Slide 4: Locality – Witwatersrand Gold Fields
Locality – Witwatersrand Gold Fields South Deep JOHANNESBURG Scale 0 100KM EVANDER POTCHEFSTROOM KLERKSDORP GREYLINGSTAD VREDEFORT KROONSTAD WELKOM LEGEND Central Rand Group West Rand Group Historic production: > 1 600 000 000 oz of gold 4.5bn tons of ore treated at an average grade of 9.0g/t So
Slide 5: Locality – South Deep
Locality – South Deep Gold One Sibanye Gold Blyvooruitsicht Sibanye Gold REFERENCE Roads Farm Boundaries Kusasalethu Mine Boundaries Towns GOLDFIELDS GOLD MINES SIBANYE GOLD MINES DURBAN ROODEPOORT DEEP HARMONY ANGLO GOLD ASHANTI GOLD ONE South Deep Investors Visit, 5 June 2013 KM Page 5
Slide 6: 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 0.13 2.3 1.9 1.62 0.07 0.06 0 0 0 0 F2008 F2009 F2010 F2011 C2011 C2012 C2013 F2008 F2009 F2010 F2011 C2011 C2012 C2013 SIFR 8 6.66 6 4 2.11 2 1.1 0.84 1.09 0.98 0.94 0 F2008 F2009 F2010 F2011 C2011 C2012 C2013 • 6 054 047 FOG
Slide 7: 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 8: Overview – building a world class mine
Overview – building a world class mine Capital Projects Progress Landmark Union Agreement on new Operating Model – 2 October 2012 Full production of circa 700koz in 2016 De-stress development increased 75% in 2012 Key Infrastructure Projects Completed : On Budget and On Time 2010 2011 2012 201
Slide 9: New Operating Model
New Operating Model Multi-phased approach to support South Deep ramp-up 1 Vision: 1 Phase 1: CHANGE Phase 2: OPTIMISE Phase 3: IMPROVE Future operating model General business 6 union on neengagement initiatives ves initiatives processes 1.1 2.1 ORG UNIT DESIGN O Capital Infrastructure A 1.2 FULCO 2.
Slide 10: New Operating Model: Implementation complete
New Operating Model: Implementation complete Detailed design work October November December Quarter 1 2013 0 Agreement on Working Calendar 1 Finalise fleet & labour plan numbers 1 2 3 Assigning gangs to 25th 17th cage schedule Shift Arrangement Oct Nov Mapping of operators to 2 Training New shift ar
Slide 11: New Operating Model
New Operating Model Key increases in resources • Embedding of the New Operating Model’s key elements 12-hour 4x4 shift system is operational and embedded Siya Phambili bonus system is implemented and fully functional • Recruitment and training of the increased labour requirements 251 of 267 ne
Slide 12: Our People
Our People • Employ approximately 3,500 people on operation – full production will employ 5,000 people • Diverse workforce • Well trained and qualified personnel • Well paid and incentivised personnel • World class medical facilities • Wellness programme − “24 hours in the life of a miner” • Unionis
Slide 13: Our People
Our People Accommodation Strategy • Phasing out of the Hostel system Phase 1 of the Hostel Upgrades Emoyeni • There are currently 159 rooms to be completed by July 2013 • Each unit will accommodate two people, and consists of a shower , TV room, Toilet and a shared Emoyeni Hostel outside view kitche
Slide 14: Shared Value
Shared Value (SV) The project will be completed in two Phases Shared value offers a new paradigm for how corporations engage social challenges such as poverty, health, and education. Shared value is about building competitive advantage by solving social problems. March – May 2013 June - July 2013 Ph
Slide 15: 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 16: 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 Investors Visit, 5 June 2013 MK Page 16
Slide 17: Geology - Orebody
Geology - Orebody South Deep Investors Visit, 5 June 2013 MK Page 17
Slide 18: 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 Investors Visit, 5 June 2013 MK
Slide 19: Mineral Resources
Mineral Resources Managed Tonnes (Mt) Grade (g/t) Gold (‘000 oz) Classification Dec 2012 Dec 2011 Dec 2012 Dec 2011 Dec 2012 Dec 2011 Underground Measured 57.6 51.4 7.0 7.3 12,983 12,015 Indicated 267.6 276.9 6.9 7.0 59,328 62,390 Inferred 27.5 27.5 7.4 7.4 6,569 6,569 Total Underground 352.7 355.8
Slide 20: Mineral Reserves
Mineral Reserves Managed Tonnes (Mt) Grade (g/t) Gold (‘000 oz) Classification Dec 2012 Dec 2011 Dec 2012 Dec 2011 Dec 2012 Dec 2011 CM – Proved 13.2 15.2 5.7 6.0 2,413 2,929 CM – Probable - 6.6 - 4.2 - 885 NOW - Probable 61.7 63.5 5.9 6.1 11.609 12,539 NOW - Proved 2.4 - 6.1 - 0.475 - SOW – Probabl
Slide 21: Mineral Reserve and LoM profiles
Mineral Reserve and LoM profiles LoM mining sequence and highlights • Mining in Block-B starts in 2017 Current Mine Phase-1 NoW Phase-1 SoW West (Block-B) South Deep Investors Visit, 5 June 2013 MK Page 21
Slide 22: Mineral Reserve and LoM profiles
Mineral Reserve and LoM profiles LoM mining sequence and highlights • Final Extraction of Current Mine in 2029 • Mining in Block-A commences in 2029 Phase-1 NoW VCR Current Mine Phase-1 NoW Phase-1 SoW East (Block-A) Phase-1 SoW West (Block-B) South Deep Investors Visit, 5 June 2013 MK Page 22
Slide 23: Mineral Reserve and LoM profiles
Mineral Reserve and LoM profiles LoM mining sequence and highlights • Mining limits are reached in Block-A and B Phase-1 NoW VCR Current Mine Phase-1 NoW Phase-1 SoW East (Block-A) Phase-1 SoW West (Block-B) South Deep Investors Visit, 5 June 2013 MK Page 23
Slide 24: Mineral Reserve and LoM profiles
Mineral Reserve and LoM profiles LoM mining sequence and highlights • Final Extraction of Phase-1 NoW in 2051 • Mining lower limits are reached in Block-A and B Phase-1 NoW VCR Current Mine Phase-1 NoW Phase-1 SoW East (Block-A) Phase-1 SoW West (Block-B) South Deep Investors Visit, 5 June 2013 MK P
Slide 25: Mineral Reserve and LoM profiles
Mineral Reserve and LoM profiles LoM mining sequence and highlights • Once the corridors are mined to completion in Block-B the project-link corridor and VCR pillar is extracted • Mining between 2094 and 2108 (1,5 Phase-1 NoW VCR Moz) are excluded from the Reserves Current Mine Phase-1 NoW Phase-1 S
Slide 26: 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 Investors Visit, 5 June 2013 DG Page 26
Slide 27: Mining Philosophy
Mining Philosophy Mining a massive orebody at depth: Destress envelope South Deep Investors Visit, 5 June 2013 DG Page 27
Slide 28: 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 Investors Visit, 5 June 2013 DG Page 28
Slide 29: 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 Investors Visit, 5 June 2013 DG Page 29
Slide 30: 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 Investors Visit, 5 June 2013 DG Page 30
Slide 31: 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 Investors Visit, 5 June 2013 DG Page 31
Slide 32: Destress performance
Destress performance Achieving the de-stress schedule is the keystone to executing the plan Y on Y Total Destress improvement of 6000 75% 5000 Roll-out of the Crush Pillar Initiative expected to improve performance 4000 further m² 3000 2000 1000 0 Aug-13 Jun-13 Jul-13 Sep-13 Dec-13 Oct-13 C2010 Nov-
Slide 33: Backfill placement
Backfill placement Y on Y improvement of Backfill 50% 40000 35000 30000 25000 m³ 20000 15000 10000 5000 0 Oct-13 Nov-13 Apr-13 May-13 Aug-13 Mar-13 Jun-13 Jul-13 Sep-13 Dec-13 Jan 13 C2010 C2011 C2012 Feb 13 Actual South Deep Investors Visit, 5 June 2013 DG Page 33
Slide 34: Existing Mine Infrastructure
Existing Mine Infrastructure South Shaft creating flexibility Twins Main Shaft Colour Coding: Red Up Cast. Green Down Cast 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 Stat
Slide 35: Tailings Storage Facility
Tailings Storage Facility South Deep Investors Visit, 5 June 2013 MM Page 35
Slide 36: Backfill Infrastructure
Backfill Infrastructure Full Plant Tailings – Backfill plant at South Shaft South Deep Investors Visit, 5 June 2013 MM Page 36
Slide 37: Metallurgical Plant Expansion
Metallurgical Plant Expansion Milling, Crushing & Thickening South Deep Investors Visit, 5 June 2013 MM Page 37
Slide 38: Permanent Rock Handling Infrastructure
Permanent Rock Handling Infrastructure In-stope Truck Tips 95-1W 95-2W 95- The Silos are required for life of mine, where 3W traditional ore passes would fail with short life spans between costly rehabilitation. October’13 100L 5 Phase -1 Sink, line. 5 Equip VENTILATION # December‘13 105L 315m 35m 4
Slide 39: Central Workshop Mining Progress
93 Level Central Workshop Mining Progress ASSEMBLY BAY Phase-1 Phase-3 Phase-3 Mining completion October ’12 MiningMining completion Sep ’13 completion September’13 RIG BAY 3 LHD BAY 3 OFFICE 3 RIG BAY 2 LHD BAY 2 DUMPTRUCK BAY OFFICE 2 RIG BAY 1 LHD BAY 1 ACCESS WAY ACCESS WAY OFFICE 1 WASHBAY 93 R
Slide 40: Highlights of 2012
Highlights of 2012 Project status is at 45 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 i
Slide 41: Build-up Plan
Build-up Plan Annual Ounces (indicative) 800 000 Achieve full 700 000 production run-rate Circa 600 000 700 koz 500 000 400 000 300 000 200 000 100 000 0 C2013 C2014 C2015 C2016 • Steady state indicators • Average Cash Cost* US$700/ounce • Average NCE* US$900/ounce * Current money terms: Exchange Ra
Slide 42: Visitors Induction
Visitors Induction Induction
Slide 43: Important Notes
Important Notes • Alcohol is not permitted on the premises • Smoking is prohibited underground and in office buildings • Cell phones are not allowed underground • Illegal substances and firearms are not permitted on the property • Adherence to all the company rules is very important South Deep Inves
Slide 44: Personal Protective Equipments
Personal Protective Equipments • Safety Shoes or Gumboots • Hard Hats • Eye Protection • Ear Protection • Res–Q-Pac (Demonstration to be conducted) • Cap-lamps • Gloves South Deep Investors Visit, 5 June 2013 Page 44
Slide 45: Emergency Response Protocol
Emergency Response Protocol • We offer Primary & Occupational Health Care on the property with a resident Occupational Medical Practitioner. • Should you feel sick or are injured in any way, please speak to the tour guide, who will make the necessary arrangements. • Barometric pressure changes exper
Slide 46: Heat Stress Management
Heat Stress Management • The environment may be unfamiliar to you and lead to disorientation, so it is important to follow all official instructions and not to become separated from the group. • Conditions underground may be more hot and humid than you expect, and the physical exertion required to r
Slide 47: General Safety
General Safety • Stay as close as possible to the tour guide and obey all the instructions. • Make sure you have your goggles on before entering the cage. • Note that machinery and rolling stock underground has a right of way. • Only walk on the travelling way side of the haulage and If a locomotive
Slide 48: Thank you
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