Golden Cross Resources Ltd · ASX:GCR
Golden Cross Resources — Open Cut Mining 2011 Forum
43 slides from Golden Cross Resources's conference presentation, Nov 7, 2011
Slide 1: Open Cut Mining 2011 Forum
For personal use only OPEN CUT MINING 2011 FORUM 7 November - 8 November 2011 Duxton Hotel , Perth, WA, Australia Kim Stanton-Cook, Managing Director
Slide 2: Disclaimer
Disclaimer This material contains certain forecasts and forward-looking information, including For personal use only information about possible or assumed future performance, exploration results, resources or potential growth of Golden Cross Resources Ltd (GCR), industry growth or other trend projec
Slide 3: Copper Hill – Evolving Open Pit Optimisation
Copper Hill – Evolving Open Pit For personal use only Optimisation “Grade and Recovery Matter” Painting: “The Molong Copper Mine “ Watercolour by Conrad Martens c. 1845, National Library of Australia
Slide 4: GCR 100% owned projects
Darwin » Mount Isa (Cu-Au U) Highland Sherrin-Lily —\ Acie o —— 5 2 Pentland Queensland Coal Olympic Domain (cu Av) Bale ag a) Codna Hill Boonah Warriner Creek: Warwiék Brisbane Oolgelima Hill— \ Giddinna Burra (Cu Au) Koolymilka on 2 Rast (Au Cu Pb Zn Fe)_> i Cargo " ‘sydney N F (Au Cu) Adelaide 50
Slide 5: Copper Hill is well located in the Central West of NSW
Copper Hill is well located in the Central West of NSW For personal use only
Slide 6: Copper Hill aerial view looking south
Cadia 45 km to southeast Northparkes 80 km to northwest For personal use only Molong township Wattle Hill Copper Hill Boundary Buckley’s Hill Copper Hill, aerial view looking south
Slide 7: Copper Hill Project Simplified Flowsheet
CCR 1-10 x COPPER HILL PROJECT SIMPLIFIED FLOWSHEET Electro- Winning Fe2Os for sale LME grade cathode copper i er OS — ous 5 conceit wy Acid a => Ny — w wwe SALE eS x oom ecov® y us | AS os" 985 oO xe _ nuts 7 a iu in Fe203 » er? . \\0 carey CIL \N Copper Gold Dore tl 4 | MINT GOLDEN CROSS RESOURCES
Slide 8: Copper Hill total geological resource
Copper Hill For personal use only Total Geological Resource @ 0.2% copper cut-off 197 million tonnes @ 0.31% copper and 0.26 g/t gold New Resource Estimate due this month 2 million tonnes per annum mill throughput under consideration • Lower capital costs • Faster time-line to production • Reduced w
Slide 9: For personal use only
‘ For personal use only The optimised pit was generated using Whittle software to maximise undiscounted cash flow using US$5.30/lb copper and US$2,120/oz gold commodity prices and recoveries of 85% for copper and 80% for gold and 45o overall pit slopes. The table above reports the resources that fal
Slide 10: Production Strategy Scenario with lower capital costs
Production Strategy Scenario with lower capital costs For personal use only Stage 1 10 Mt ore at 0.49% copper and 0.55g/t gold to produce 36,500 tonnes copper and 79,100 ounces gold in concentrate. 2 million tonnes per annum to mill, manageable capex, early cash flow generated, 3-year pay-back possi
Slide 11: Copper Hill starter pit view from the south-east
For personal use only Copper Hill 10 million tonne Stage 1 ‘Starter Pit’. View from the south-east
Slide 12: Production Strategy Scenario with mill expansion capacity
Production Strategy Scenario (with mill expansion capacity) For personal use only Stage 2 9.7 Mt ore at 0.40% copper and 0.40 g/t gold to produce 29,200 tonnes copper and 55,900 ounces gold in concentrate. Stage 3 10.6 Mt ore at 0.32% copper and 0.32g/t gold 26,100 tonnes copper and 49,300 ounces go
Slide 13: Copper Hill pit 3D site layout plan
For personal use only Copper Hill 30 million tonne pit 3D Site Layout Plan – View from the south-east
Slide 14: Production Strategy Scenario expanded capacity
Production Strategy Scenario expanded 6 – 8 Mtpa capacity For personal use only Stage 4 72.8 Mt ore at 0.24% copper and 0.23g/t gold to produce 132,400t tonnes copper and 245,300 ounces gold in concentrate. …contingent on sustained copper and gold prices around current spot…
Slide 15: For personal use only
Within the central Copper Hill For personal use only deposit, one interval is within reach of current pit planning with 70 metres grading 0.56% copper and 1.04 g/t gold from 25 metres. The potential 100Mt pit would capture the next interval of 174 metres grading 0.40% copper and 0.40 g/t gold from 1
Slide 16: Pit optimisation assumptions, costs and parameters
Progressive pit optimizations have been prepared using the following assumptions, costs and parameters : For personal use only • March Geological and Resource model • Ore Mining and Milling rate of 2 Mtpa • 50/50 bank/spot metal (Cu at AUD$7.242/kg, Au at AUD$1214/oz) • Copper recovery of 75% (Trans
Slide 17: More assumptions, costs and parameters
More assumptions, costs and parameters : • No low grade stockpiling • Con freight cost $34.00/t For personal use only • Discount rate 10% • Con port costs $5/t • Moisture 10% • Shipping costs (nil) • Concentrate Treatment $106/dmt • Concentrate grade 25% Cu and • Marketing (nil) 17g/t gold • Concent
Slide 18: Sensitivity analysis: copper and gold recoveries
SENSITIVITY ANALYSIS Copper & Gold recoveries For personal use only CASE COPPER GOLD Recovery Recovery C7I Fixed Fixed C7J Variable Fixed C7K Fixed Variable C7L Variable Variable Variable copper recoveries of: 75% at 0.3% Cu, 81.2% at 0.4% Cu, and 85.1% at 0.5% Cu. based on a constant tails grade of
Slide 19: Variable copper recovery
Following metallurgical testing and analysis, a revised assumption for copper recovery, one that is variable according to the ore head grade rather than fixed at 75%, was made. The suggested copper recovery formula is based on a constant tails grade of 0.076% Cu. This results in recoveries of: 75% a
Slide 20: Variable gold recovery
The same approach as that used for copper for the gold recovery is now modelled. A formula based on a 0.10g/t tails grade and a residual recovery of 70.5% gives variable gold recoveries as shown below. For personal use only At a gold head grade of: 0.3g/t the overall recovery is 47% at 0.4g/t it is
Slide 21: Best case and worst case pit development scenarios
110 0.6 100 + 0.55 90 80 70 | 30 Sk } 035 10 0.3 0.45 ¥ 04 OP PROFIT (% of Maximum) COPPER GRADE (%) 0 10 20 30 40 50 60 70 ORE (Mt) _._ Undis _.. BC Disc _._ WC Disc —_._ Avg Disc —o_ Cu Grade (%) The “Best Case” (BC) scenario is when the pit is developed from the inner most pit shells outwards. It
Slide 22: Base Case – Pit Optimisation
Base Case – Pit Optimisation For personal use only
Slide 23: 5m contours of pit shell C1-18
5m CONTOURS OF PIT SHELL C1-18 (19.7Mt) 5m Contours of pit shel! C1-18 Outine of 100M Pit oe DEN CROSS RESOURCES
Slide 24: 5m contours of pit shell C1-26
5m CONTOURS OF PIT SHELL C1-26 (30.SMt) || Sm Contours of pit shell C1-26 | Zt Outline of 100Mt Pit Tt tea /4 DEN CROSS RESOURCES
Slide 25: 5m contours of pit shell C5-26
5m CONTOURS OF PIT SHELL C5-26 | Sm Contours of pit shell C5-26 f ; OAT \ + Uh + #1) E y \ i Ha < + i Mi £ au i T 5 w i 7) \ Zz ‘ eS \ ; S&S oe Outline of 100Mt Pit DEN CROSS RESOURCES
Slide 26: Four most recent pit optimisations
We have considered the most recent four pit optimisations: For personal use only • C7I - Base Case : Fixed copper recovery (75%) and fixed gold recovery (45%) • C7J - Variable copper recovery and fixed gold recovery (45%) • C7K - Fixed copper recovery (75%) and variable gold recovery • C7L - Variabl
Slide 27: Pit optimisations: % improvement in operating profits
PIT OPTIMISATIONS Cases C7i to C7L: % improvement in operating profits For personal use only
Slide 28: Base case pit optimisation C7i
BASE CASE PIT OPTIMISATION ‘C7i’ Fixed copper recovery at 75% & fixed gold recovery at 45% Operating Profits and Grade For personal use only 110 0.65 100 0.6 90 OP PROFIT (% of Maximum) 80 0.55 COPPER GRADE (%) 70 0.5 60 50 0.45 40 30 0.4 20 0.35 10 0 0.3 0 10 20 30 40 50 60 70 ORE (Mt) Undis BC Dis
Slide 29: Pit optimisation C7j
PIT OPTIMISATION ‘C7j’ Variable copper recovery & fixed gold recovery at 45% Operating Profits & Grade For personal use only 140 0.65 120 0.6 OP PROFIT (% of Maximum) 100 0.55 COPPER GRADE (%) 80 0.5 60 0.45 40 0.4 20 0.35 0 0.3 0 10 20 30 40 50 60 70 ORE (Mt) Undis BC Disc WC Disc Avg Disc Cu Grade
Slide 30: Pit optimisation C7k
PIT OPTIMISATION ‘C7k’ Fixed copper recovery at 75% & variable gold recovery Operating Profits & Grade For personal use only 140 0.65 120 0.6 OP PROFIT (% of Maximum) 100 0.55 COPPER GRADE (%) 80 0.5 60 0.45 40 0.4 20 0.35 0 0.3 0 10 20 30 40 50 60 70 ORE (Mt) Undis BC Disc WC Disc Avg Disc Cu Grade
Slide 31: Pit optimisation C7L
PIT OPTIMISATION ‘C7L’ Variable copper recovery & variable gold recovery Operating Profits and Grade For personal use only 160 0.6 140 0.55 OP PROFIT (% of Maximum) 120 COPPER GRADE (%) 0.5 100 0.45 80 0.4 60 0.35 40 20 0.3 0 10 20 30 40 50 60 70 ORE (Mt) Undis BC Disc WC Disc Avg Disc Cu Grade (%)
Slide 32: Pit optimisations - summary
PIT OPTIMISATIONS - SUMMARY Cases C7i to C7L: % average discounted operating profits 90 For personal use only 80 OP PROFIT (% of MAXIMUM) 70 60 50 40 30 20 10 0 5 10 15 20 25 30 PIT SHELL NUMBER Case C7i Case C7j Case C7k Case C7L
Slide 33: Copper and Gold: The Future
China India For personal use only 0 US Germany ROW 01 03 05 07 09 13f 15f 11e 1212 Copper and Gold 14 14 36 12 The Future Electrical wiring/…
Slide 34: LME copper price and inventories
LM E 560.0 $11,200 Cc LME Copper Copper oo —~ _ $9,600 Co La Soo ee inventories falling. 400.0 | } / |. $8,000 fi ; | | | IST CRU says that in 3 320.0 | | : | $6,400 the last few weeks S | | | the bulk of copper = k | : | price movements = 240.0 | | | | $4,800 have been due to z | | | investor activ
Slide 35: Copper demand forecast to grow in the long term
Copper demand is forecast to grow in the long term, largely driven by electrical transmission infrastructure demand For personal use only Major copper consumers Major uses of copper by sector (2009) Mt % 25 12 12 20 Electrical 14 wiring/ 15 electricity infrastructure 10 36 14 12 5 Electrical wiring/
Slide 36: Dec '05 to Nov '11
For personal use only Dec ‘05 to Nov ‘11
Slide 37: Dec '05 to Nov '11
For personal use only Dec ‘05 to Nov ‘11
Slide 38: Copper Hill Planning for Development
Copper Hill For personal use only Planning for Development
Slide 39: Copper Hill site layout
For personal use only Copper Hill site layout
Slide 40: Mill & Plant Site
For personal use only Mill & Plant Site
Slide 41: Crushing & Comminution – Process Flow Diagram
For personal use only CRUSHING & COMMINUTION – PROCESS FLOW DIAGRAM
Slide 42: Flotation – Process Flow Diagram
For personal use only FLOTATION – PROCESS FLOW DIAGRAM
Slide 43: Copper Hill plant and mill site
Newcrest’s Cadia 45 km to southeast Rio’s Northparkes 80 km to northwest Molong township P ow er: 132 K v Sub-station For personal use only 4 km Plant & Mill Site Wattle Hill Copper Hill Low strip ratio Buckley’s Hill Copper Hill • Capex Scoping Study near com pletion • New Resource Estim ate im m i