Slide 1: Forward looking statements
Gold Fields A ANI BYWATI Forward looking statements © riain statements in this document constitute ‘Torward looking stater tion 27A of the US Securities Act of 1933 and of the US ecunties Exchange Act of 1934 hh particular, the forward looking statements in this document include amor others those re
Slide 2: Darlot Gold Mine site visit introduction
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 We are in an area very prospective for gold for Australia obviously, 900 kilometres out of Perth. Here we are, Darlot. We’ve got the other mines, you can see St Ives. We’ve got Granny’s and of course Agnew/Lawlers. So we’
Slide 3: History of Darlot gold production
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 Gold was first discovered in the late 1800s in the area. There was nearly half a million ounces of alluvial material, from what we can see in the previous reports. The more recent mining at Darlot included an open pit. It
Slide 4: Reserve history at Darlot
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 So having looked at the history of reserves in 2002, so that will mainly be a bit of open pit with underground reserves. You can see they have dwindled, and our challenge now is to bring this back up and define a decent r
Slide 5: Tenement map
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 On to the tenement slide. The grey area is 100% Gold Fields. The yellow and pink areas are joint venture leases. We’ve got plenty to keep us busy within a 2.5 km distance from the Darlot centre where we fully own most of
Slide 6: Site team introduction
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 I have introduced you to the team that’s on site today. 6
Slide 7: Darlot Gold Mine site visit
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 7
Slide 8: Site layout and infrastructure
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 What does Gold Fields pick up with this asset? What you can see is there’s the old open pit, the Darlot open pit that’s about a kilometre in strike. We’ve got the mining infrastructure and mine department buildings here o
Slide 9: Reserve snapshot and ore body sections
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 On the reserve snapshot, as I mentioned it’s not a big reserve and resource base, but we can grow. It just needs us to get in there and start drilling and putting some money into the ground in the right places. This work
Slide 10: Camp, airstrip, water and power
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 So the bulk of the infrastructure – we have a 400 room camp. It’s a little bit old but it’s very comfortable, and it’s a very nice camp. So we’ve got the gravel airstrip and we’re investigating right now about going over
Slide 11: Paste plant, declines and tailings approval
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 I mentioned our paste plant, which is in very good condition and really just commissioned a couple of years ago. Two main declines for access, which is very handy, and we’ve got approval for an additional tailings dam. So
Slide 12: Mining operations and equipment
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 The mining site. About a year ago we went from Sandvik looking after the maintenance to owner maintenance. The transition was a bit tough at the time, but it’s certainly paid off for us now, looking after our own equipmen
Slide 13: Darlot Gold Mine site visit
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 13
Slide 14: Value Gold Fields sees in Darlot
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 So what does Gold Fields see as the value? Darlot last year was operating at quite a significant loss, but Gold Fields saw an opportunity to break even or better. People, processing plant and the opportunity to extend tha
Slide 15: Darlot Gold Mine site visit
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 15
Slide 16: Turnaround: lower costs since acquisition
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 So what sort of things have changed since we went from Barrick to Gold Fields? If we look at our all- in costs we were operating at a cost of $1,500 an ounce which was unsustainable and we are now close to $1,100 /oz. Oun
Slide 17: Right-sizing the operation
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 Some of the change had started before Gold Fields came in, but it certainly got a very big push when Gold Fields arrived. Right-sizing the operation was probably one of the most important things that we did. Darlot is now
Slide 18: 2015 target of 80,000 oz
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 We are aiming to establish 2015 as a minimum 80,000 oz year. We haven’t defined this yet but we are very encouraged and confident that we will get there. We might need another six months, but we are on our way to doing th
Slide 19: Quarterly performance and turnaround drivers
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 Obviously we came off the back of very challenging conditions. Last year there was a real sense of urgency to make the change. The gold price dropped, we were up for sale and were making a loss. The management team got to
Slide 20: Darlot Gold Mine site visit
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 20
Slide 21: Safety performance
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 We have a very big focus on safety. We’ve kept aiming to improve every quarter. Things are going pretty well there. We are trying to drive down our total recordable injury frequency rate and drive down the severity of inj
Slide 22: Environmental compliance and land
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 On the environmental side, these are exploration tenements. Here is our pastoral station. We’ve got a large amount of land. We have been ISO14001 compliant since November last year. We are also cyanide code compliant, and
Slide 23: Workforce numbers and cost savings
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 Total employee numbers including contractors is around 290 - 222 fulltime with 66 contractors. That will be in Q4 because in 2013 we were at around 350 employees in total. Part of the cost reduction was being able to redu
Slide 24: Key priorities and risks
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 To summarise, the key priorities and the risks that we need to work through, achieving the operational plan is essential. We’ve got to make sure we’re not making a loss. We’ve got to make sure we’re not a burden on Gold F
Slide 25: Darlot Gold Mine site visit
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 25
Slide 26: 775 Lords South mining area
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 I will go through some of the key mining areas for this year. This is what we call 775 Lords South. It’s a flat ore body. It is about 2m to 3m in thickness. And by the time we bring it out it usually averages between 5g a
Slide 27: Grace Pillar remnant stope
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 Another key area is the remnant stope – Grace Pillar. It is quite a large one for us. A lot of that is now mined with about 15,000 tonnes left for the rest of this year. That has been successful. It is surrounded by backf
Slide 28: Lords South Lower future potential
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 So there is future potential for us. This is that 775 that I showed you two slides ago. That is our working area. And what we have is quite a good ore body about 100m away. This is about the 620 mRL and this is 700. Down
Slide 29: Darlot Gold Mine site visit
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 29
Slide 30: Processing plant and recovery
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 On the processing side, it was a second-hand mill that was brought in in 1998. It has gone through a total refurbishment. The mill is in very good condition to do what it needs to do. I mentioned it can do 800,000 tonnes
Slide 31: Process flow sheet
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 The process flow sheet, I’ll ask Laura to take us briefly through this. We’ve got a three stage crushing circuit through our dual crusher and two primer crushers. So through to the grinding circuit, through to the primary
Slide 32: Recent grades and recovery
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 Okay, so grades for the last few months. Things are going pretty well and there is no reason to expect that to drop off going forward in 2014. As we mentioned the recovery is a very healthy figure. 32
Slide 33: Processing tonnes and grade
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 Processing tonnes, you can see part of the plan, less tonnes, higher grade. 33
Slide 34: Unit costs per ton
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 Cost per ton, we’ve been able to keep that pretty steady even through the whole right-sizing process. The unit costs have stayed stable. So it is always a very good sign, even though we have dropped nearly 30% of throughp
Slide 35: Darlot Gold Mine site visit
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 35
Slide 36: Regional setting in the eastern goldfields
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 Darlot is situated in the eastern goldfields. Very prospective greenstones. That’s where the gold is in WA. There are a lot of 2 million ounce systems in the region. This is one of them. When you’ve got a system that big,
Slide 37: Mineralisation and host rocks
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 That is a typical assemblage for minerals. We do see a lot of shear and faults controlling mineralisation. And that is where a lot of these major fluids have come through to create these ore bodies. Magnetic dolerite is t
Slide 38: Exploration target areas
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 I will go into a little bit of detail on some of the target areas. We will start with underground and then we will talk about the regional targets. 38
Slide 39: Middle Walters
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 I’ve got a slide on Middle Walters just to put it into perspective. This zone already has a lot of drilling and should be able to help the 2015 plan. 39
Slide 40: 775 area northern extensions and deep targets
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 This is that 775 area with the extensions to the north. That’s where the Lords South Lower ore body is that we spoke about and will access for next year. We’ve got some targets on the other side that come right through th
Slide 41: 775 continuation and potential game-changer
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 I would be very surprised if we can’t pull ounces out of that. So then back on the 775 that I mentioned we’ve got potential for continued mineralisation. We know it continues; we just need to do some more drilling and fir
Slide 42: CDA structures and latest drilling
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 So where does all this sit? This is the CDA. We have a hole that we are drilling right now and what we’ve done with this latest hole is we’ve tried to target all of these structures. So we have got a bit smarter with the
Slide 43: Centenary structures and dilation
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 The main structures associated with the Centenary start on the left hand side. One of the things that we have found though as well is that as you come closer and closer to that unit the structures do tend to bell out a li
Slide 44: Regional targets: Cornucopia, West Limb, Airstrip
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 The ones I will talk about are Cornucopia, West Limb, the Airstrip Supergene as well. Cornucopia is about 2km south of the main open pit. It is in the immediate area. West Limb is looking at the target up through here. It
Slide 45: Darlot Gold Mine site visit
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 45
Slide 46: Darlot Gold Mine site visit
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 46
Slide 47: Cornucopia drilling
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 Cornucopia itself is a very interesting area. There is lots of shallow RAB drilled. We’ve gone back in and changed the orientation, it is situated immediately along geological strike of the main mineralised pit. We see th
Slide 48: Summary of Darlot outlook
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 To sum up, Darlot remains a safe, profitable, sustainable operation. Safety keeps improving. We are focussing on quality tonnes and grade to get the results. The big challenge is all-in sustaining costs. We are doing a lo
Slide 49: Questions
Gold Fields Australia site visit: Darlot Gold Mine Andrew Bywater 14 July 2014 Questions Question: What is your mining cost per ton? Mining costs per ton are around $90 per ton. Australian or US? That’s Australian. A$80 to A$90. Question: And G&A? G&A is around $30/t, a little bit less than processi