Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Diggers & Dealers 2020
34 slides from Northern Star Resources's conference presentation, Oct 10, 2020
Slide 1: KCGM Site Visit Presentation
KCGM Site Visit Presentation Diggers & Dealers October 2020 Northern Star Resources Limited Saracen Minerals Holdings Limited ASX: NST ASX: SAR ABN: 43 092 832 892 ABN: 52 009 215 347 Kalgoorlie Consolidated Gold Mines Pty Ltd (ABN: 97 009 377 619) is the Manager of the KCGM Operations for the 50:50
Slide 2: Qualification
Qualification This announcement contains estimates of Kalgoorlie Consolidated Gold Mines Pty Ltd's (KCGM) ore reserves and mineral resources and also production targets that are a product of these estimates. Northern Star and Saracen are participants in the 50:50 incorporated joint venture that owns
Slide 3: Contents
Contents INTRODUCTION 4 ASSET OVERVIEW 7 ESG 11 RESOURCES AND RESERVES 13 GEOLOGICAL SETTING 15 EXPLORATION AND GROWTH 17 OPEN PIT MINING 23 UNDERGROUND MINING 29 PROCESSING 32 3
Slide 4: Introduction
Introduction • Tier-1 asset in a Tier-1 mining jurisdiction, previously “hidden” in global major miners… enter Saracen and Northern Star • Landmark increase in Reserves to 9.7Moz (100%) supporting 15 year mine life • FY21 guidance 440 - 480koz at AISC of A$1,470 - 1,570/oz (100% basis) • Operation b
Slide 5: Introduction
Introduction • Likeminded JV partners… • …with complementary skills… • …to unlock latent value JV between Northern Star (ASX: NST) and Saracen (ASX: SAR) • 6th October 2020 - NST and SAR announce proposed merger-of-equals, unlocking A$1.5-2.0B in synergies (group wide) • Strategic merger will consol
Slide 6: Site Leadership Team
Introduction Site Leadership Team: General Manager Kous Kirsten PRINCIPAL – MANAGER - HSEC MANAGER - MINING MANAGER - PROCESSING MANAGER – GEOLOGY PRINCIPAL - COMMERCIAL HUMAN RESOURCES Leroy Ober Lee Stephens Greg Sheppard Emma Murray-Hayden Ros Jenkin Dianne Newell MANAGER – MANAGER - OPEN PIT UND
Slide 7: Asset Overview
Asset Overview Stockpiles Fimiston mill Oroya Brownhill Fimiston South Golden Pike Mt Charlotte underground 7
Slide 8: Asset Overview: Production growth plan
Asset Overview Robust plan to deliver profitable production growth: • Production to rise to +675,000ozpa by FY28, key drivers: 100% basis • Focus on large, low cost mining areas that maximise 800 fleet productivity 700 • East wall remediation, integrated with the expedited 600 Oroya Brownhill (OBH,
Slide 9: Asset Overview: Long life
Asset Overview Long life: • 9.7Moz Reserve provides 15 year mine life visibility KCGM production profile* FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 Open Pit Oroya Brownhill Fimiston South Stage 1 Golden Pike South Fimiston South Stage 2 Golden Pike North Underground Mount
Slide 10: Asset Overview: Growth capital outlook
Asset Overview Growth capital outlook: • FY21 growth capital guidance A$210m (100%) Item A$m KCGM Open pit development - Oroya Brownhill 96 Open pit development - Fimiston South 68 Underground portal 10 Capital works 24 Resource evaluation 12 Total 210 • FY22 growth and de-risking capital guidance o
Slide 11: Protecting our environment
Protecting our environment Environmental Impact Management • Dust, Noise, Vibration and well understood and managed to minimise impacts • Live monitoring data sites provide real time data for decision making and agile response • Live data publically available • Key environment plans are approved by
Slide 12: Mitigating social risk and creating value
Mitigating social risk and creating value Protect and Grow our Social Licence • Sophisticated engagement tool that enables KCGM to track & trend community perception over time • Data publically available • Enables an agile response to emerging community issues & opportunities • Increased trust in KC
Slide 13: Ore Reserves
Ore Reserves 9.7Moz JORC-compliant Ore Reserves (v 6.3Moz previous non-JORC): 9.7Moz • Investment in drilling unlocks strong 10.0 increase in Ore Reserves 9.0 8.0 • Substantial program at Fimiston South Ounces (Moz) 7.0 the key driver to Ore Reserve increase 6.0 5.0 • Global leading endowment contin
Slide 14: Mineral Resources
Mineral Resources 19Moz JORC-compliant Mineral Resources (v 12Moz previous non-JORC): 20 19.0Moz • Significant growth at Fimiston South 18 through an extensive drill program 16 • Maiden Fimiston underground JORC 14 compliant Mineral Resource of 2.2Moz 12 Ounces (Moz) highlights ongoing growth opport
Slide 15: Mine-scale geological overview of KCGM
Mine-scale geological overview of KCGM FIMISTON STYLE DEPOSITS CHARLOTTE STYLE DEPOSITS HISTORIC 414.2Mt @ 5.0g/t Mined (62Moz Produced) between 1893-Oct 2019 48.2Mt @ 3.7g/t Mined (5.5Moz Produced) between 1963-Oct 2019 PRODUCTION DEPOSIT TYPE Archaean Orogenic structurally-controlled deposit Archa
Slide 16: Architecture of the Golden Mile
Architecture of the Golden Mile A A ~4,500oz per vertical metre average minedcross section at 48,590mN. Source: Gauthier 2005 Schematic to date • The Golden Mile fault separates the Fimiston system into the Eastern and Western lodes 16 Plan view of the central Golden Mile
Slide 17: Exploration & Growth: World Class Growth Potential
Exploration & Growth World Class Growth Potential • 297km2 of tenure, hosting +30km of the Boulder-Lefroy structural corridor • Limited focus on regional exploration potential on KCGM tenure over the past 20 years (opportunity) • Strong progress made on key growth opportunities since new ownership
Slide 18: Near Mine Exploration Potential
Near Mine Exploration Potential • Mature world class system, however, drill data is surprisingly sparse at depth 18
Slide 19: Fimiston Pit Growth Potential
Fimiston Pit Growth Potential Historical drilling and drilling completed since NST/SAR ownership demonstrates significant upside potential both within and outside of the current Resource optimisation FIMISTON CROSS SECTION A-B 47,800mN A B ABOVE: Plan view of Fimiston cutback stages with the locatio
Slide 20: Fimiston Underground Potential
Fimiston Underground Potential Deep drilling beneath the June 2020 open pit Resource demonstrates the continuity of Fimiston mineralisation at depth FIMISTON CROSS SECTION FIMISTON LONG SECTION 47,500mN 47,500mN ABOVE: Long projection of the Fimiston deposit showing extent of drill testing. RIGHT: E
Slide 21: Mount Charlotte
Mount Charlotte More than 5.5Moz has been produced from Mt Charlotte to July 2020. Despite mining continuously since the 1960’s, discoveries continue to be made in close proximity to existing workings • Strong emphasis on increasing exploration in and around the Mt Charlotte operations. Existing dev
Slide 22: KCGM Project Pipeline
KCGM Project Pipeline EXPLORATION OPERATIONAL GEOLOGY Geo Targeting Drill Targeting Resource Targeting Resource Definition Reserve Definition Grade Control (GT) (DT) (RT) (RSD) (RVD) (GC) Abadare Pit Little Wonder Hannan’s South Mt Percy Golden Pike Fimiston North PIPELINE SPEND Mt Cha
Slide 23: Open Pit Mining: Open pit makeover
Open Pit Mining Open pit makeover: • Mining areas doubling from two to four: • Golden Pike South - underway • Morrison (Fimiston South starter) - underway • OBH - underway • Fimiston South - from June H 2021 KCGM production profile FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY3
Slide 24: Open Pit Mining: Productivity gains
Open Pit Mining Productivity gains: • Targeting total material movements 80 of 70-80Mt p.a. in line with historical volumes: 70 • Using the same large face shovels 60 and trucks 50 Million tonnes • Fleet renewal is underway, improving productivity 40 • When between three and four 30 cutbacks were av
Slide 25: Open Pit Mining: Fimiston South
Open Pit Mining Fimiston South: • KCGM’s single largest cutback in a Fimiston South strip ratio and grade decade: 70 Fimiston South Stage 1 2.5 Fimiston South Stage 2 • Two stage, 12 year mine life 60 2.0 • 10:1 strip ratio 50 • 850Mt total material movement Strip Ratio (w:o) 1.5 Grade (g/t) 40 • St
Slide 26: Open Pit Mining: Golden Pike
Open Pit Mining Golden Pike: • Priority mining front due to: Golden Pike cutback • High grades - Reserves 24Mt @ 2.0g/t for 1.5Moz • Low strip ratio of 2.9:1 • Waste pre-stripping completed in the preceding ~10 years by former owners • Mining continues at the Golden Pike South cutback • The Golden P
Slide 27: Open Pit Mining: Oroya Brownhill
Open Pit Mining Oroya Brownhill: • Mining is underway at Oroya Brownhill (OBH) OBH cutback looking south • Eight years of mining is planned in two stages: • Average strip ratio 9.0:1 (including pre-strip) • Average grade 1.5g/t • New wall remediation plan (3.5 years) involves: • Bringing the Brownhi
Slide 28: Open Pit Mining: Oroya Brownhill
Open Pit Mining Oroya Brownhill: • Advantages of the new plan include: OBH cutback • Larger, more productive, lower unit cost mining area • Additional ounces offset remediation cost • Reduced operational risk • No additional approvals required • Remediation timeframe ~3.5 years • Rigorous geotechnic
Slide 29: Underground Mining: Mt Charlotte
Underground Mining Mt Charlotte: • Historic production of >5.5Moz at an Mt Charlotte Long Section average grade of 3.6g/t • A 6 month strategic review resulted in a significant increase in: • Reserves 510koz • Resources 1.9Moz • Significant progress has been made in upgrading infrastructure includin
Slide 30: Underground Mining: Mt Charlotte
Underground Mining Mt Charlotte: • Strong increases in underground Mt Charlotte ore mined productivities achieved by the new owners 1.6 • For example, in the June quarter 2020 1.4 mined ore tonnes increased by 25% from 1.2 the March quarter 2020 1.0 Million tonnes • This follows several productivity
Slide 31: Underground Mining: Fimiston
Underground Mining Fimiston: • The world-class Fimiston deposit has produced Fimiston Underground long section >65Moz at a mined grade of 5.0g/t since 1893 • Historic underground workings extend to ~1,400m below surface • Historic drilling intersects mineralisation at depths of >2km • Maiden undergr
Slide 32: Processing Overview
Processing Overview: Primary Crushing CSI Crushing • ~13 Mtpa capacity, processing primarily sulphides ore Fimiston Milling Circuit MTC Milling Circuit • Crush, grind, flotation and CIL • The majority of flotation concentrate is Fim & MTC Flotation Circuits Concentrate handling processed through ult
Slide 33: Processing: Q1 Summary
Processing Q1 Summary Q1 overview: Actual Budget Variance • Annualised rate = 13 Mtpa Processing tonnes (kt) 3,265 3,080 +6% • Tonnes processed ↑6% budget due to higher than Head Grade (g/t) 1.26 1.30 -3% budget mill throughput and mill availability Recovery (%) 83.6 81.9 +2% • Site Recovery ↑1.7% b
Slide 34: Contact Details
Contact Details: Troy Irvin (SAR) Kurt Walker (NST) Corporate Development Officer Business Development & Investor Relations phone: +61 8 6229 9100 phone: +61 8 6211 2620 email: info@saracen.com.au email: info@nsrltd.com