Slide 1: Open Cut Mining 2011 Forum
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 information about possible or assumed future performance, exploration results, resources or potential growth of Golden Cross Resources Ltd (GCR), industry growth or other trend projections. Such forecasts
Slide 3: Copper Hill – Evolving Open Pit Optimisation
Copper Hill – Evolving Open Pit Optimisation “Grade and Recovery Matter” Painting: “The Molong Copper Mine “ Watercolour by Conrad Martens c. 1845, National Library of Australia
Slide 4: Golden Cross 100% owned projects map
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
Slide 6: Copper Hill aerial view and nearby mines
Cadia 45 km to southeast Northparkes 80 km to northwest 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 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 water & power requireme
Slide 9: Optimised pit resource inside and outside shell
‘ 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 fall inside the pit shell
Slide 10: Production Strategy Scenario with lower capital costs
Production Strategy Scenario with lower capital costs 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 possible
Slide 11: Copper Hill 10 million tonne Stage 1 Starter Pit
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) 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 gold in concentrate.
Slide 13: Copper Hill 30 million tonne pit 3D site layout
Copper Hill 30 million tonne pit 3D Site Layout Plan – View from the south-east
Slide 14: Production Strategy Scenario expanded 6–8 Mtpa capacity
Production Strategy Scenario expanded 6 – 8 Mtpa capacity 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: Central deposit interval within reach of pit planning
Within the central Copper Hill 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 121 metres.
Slide 16: Pit optimisation assumptions, costs and parameters
Progressive pit optimizations have been prepared using the following assumptions, costs and parameters : • 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% (Transition & Primary), nil
Slide 17: More assumptions, costs and parameters
More assumptions, costs and parameters : • No low grade stockpiling • Con freight cost $34.00/t • 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 • Concentrate refining USD$0.08
Slide 18: Sensitivity analysis: copper and gold recoveries
SENSITIVITY ANALYSIS Copper & Gold recoveries 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 0.076% Cu. Variable g
Slide 19: Revised variable copper recovery assumption
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 modelling
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. At a gold head grade of: 0.3g/t the overall recovery is 47% at 0.4g/t it is 52.8%, and at 0.5g/t t
Slide 21: Operating profit versus ore and copper grade
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 PIT SHELLS #26 and #18 Item Pit Shell #18 | Pit Shell #26 Pit Base Level 385 350 Pit Mass (Mt) 36.592 57.454 Waste (Mt) 16.732 26.798 Total Float Ore (Mt) 19.783 30.580 Float Copper Grade (%) 0.464 0.418 Float Gold Grade (g/t) 0.491 0.434 Strip Ratio (tt) 0.846 0.876 Und
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 Outline of 100Me Pit 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: • 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 - Variable copper and variable
Slide 27: Cases C7i to C7L: % improvement in operating profits
PIT OPTIMISATIONS Cases C7i to C7L: % improvement in operating profits
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 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 Disc WC Disc Avg Disc Cu
Slide 29: Pit Optimisation C7j
PIT OPTIMISATION ‘C7j’ Variable copper recovery & fixed gold recovery at 45% Operating Profits & Grade 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 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 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 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: Yearly copper grades and operating profits
GRADE (%) O55 os 0.45 04 035 03 025 YEARLY COPPER GRADES & OPERATING PROFITS HS cu Grade _. Undisc Op Profit —— Disc Op Profit OP PROFIT ($M)
Slide 34: Copper and Gold The Future
China India 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 35: LME Copper inventories and price
LM E 560.0 $11,200 LME Copper Copper 480.0 ———— —S a = $9,600 eo La Soe a Inventories falling. 400.0 | | y || $8,000 . _ | | | <4 4 CRU says that in 3 320.0 : $6,400 the last few weeks cs | the bulk of copper = f | | price movements = 240.0 | | | | $4,800 have been due to z | | | | investor activity
Slide 36: Copper demand forecast to grow in the long term
Copper demand is forecast to grow in the long term, largely driven by electrical transmission infrastructure demand Major copper consumers Major uses of copper by sector (2009) Mt % 25 12 12 20 Electrical 14 wiring/ 15 electricity infrastructure 10 36 14 12 5 Electrical wiring/ electricity infrastru
Slide 37: LME Copper Prices Dec 05 to Nov 11
| 600 1 31-Dec-11 + 30-Sep-11 30-Jun-11 31-Mar-11 t 31-Dec-10 30-Sep-10 P 30-Jun-10 31-Mar-10 31-Dec-09 ; 30-Sep-09 30-Jun-09 31-Mar-09 31-Dec-08 USD/t & AUD/t 30-Sep-08 LME Copper Prices + 30-Jun-08 } 31-Mar-08 31-Dec-07 30-Sep-07 —USS/t 3mo —EURIt 3mo ——AUD/t 3 mo 30-Jun-07 31-Mar-07 31-Dec-06 30-
Slide 38: Gold price Dec 05 to Nov 11
29-Nov-11 31-Aug-11 02-Jun-11 04-Mar-11 04-Dec-10 05-Sep-10 07-Jun-10 09-Mar-10 09-Dec-09 10-Sep-09 12-Jun-09 14-Mar-09 14-Dec-08 15-Sep-08 17-Jun-08 19-Mar-08 20-Dec-07 21-Sep-07 23-Jun-07 25-Mar-07 —Gold AUD Gold EUR 25-Dec-06 26-Sep-06 28-Jun-06 30-Mar-06 30-Dec-05 800 600 400 © g 8 (Zo/$) 8914d
Slide 39: Copper Hill Planning for Development
Copper Hill Planning for Development
Slide 40: Copper Hill site layout
rhal VWwaste Dump —- Fibre Optic Ca ¥ ROM Pad a y Shades Road
Slide 41: Mill & Plant Site
SONTENT TABLE DIRTY WATER DESCRIPTION COLLECTION CRAIN PAD \ \ PARY CRUSHER AREA NS [SHER AREA [ICC 6 TRANSFORMER SN SIBIEISI Bel 9/218 = = i i HE i i “18 41314 PUARy CRUSHER Talfines THICKER ‘COCENTRATE THICKER AREA TENTRATE AREA BLGGING AREA {cess ware ‘AFRE WATER fae ware EACLE JANTHNANCE fXSHOP.
Slide 42: Crushing & Comminution – Process Flow Diagram
CRUSHING & COMMINUTION – PROCESS FLOW DIAGRAM
Slide 43: Flotation – Process Flow Diagram
FLOTATION – PROCESS FLOW DIAGRAM
Slide 44: Copper Hill
Newcrest’s Cadia 45 km to southeast Rio’s Northparkes 80 km to northwest Molong township P ow er: 132 K v Sub-station 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 inent ASX- GCR