46 slides from St. Barbara's corporate update, Mar 11, 2010
Slide 1: ASX Announcement: Presentation to Analysts and Investors, Leonora Operations
ASX Announcement Presentation to For personal use only Analysts and Investors, Leonora Operations Attached is a copy of a presentation to analysts and investors attending a site visit to Leonora Operations on Thursday 11 March, 2010. Ross Kennedy Executive General Manager Corporate Services/ Company
Slide 2: Leveraging value at Leonora Operations
For personal use only Leveraging value at Leonora Operations Analyst and Investor Site Visit March 2010 David Rose, Chief Operating Officer and Ross Kennedy, EGM Corporate Services 1
Slide 3: Disclaimer
Disclaimer For personal use only This presentation has been prepared by St Barbara Limited (Company). The material contained in this presentation is for information purposes only. This presentation is not an offer or invitation for subscription or purchase of or a recommendation in relation to secur
Slide 4: Leonora operations outline
Leonora operations outline For personal use only • Introduction • Geology • Mining • Processing • Leonora Province • King of the Hills • Tower Hill • Leveraging Value 3
Slide 5: Introduction: Gwalia, one of Australia's great gold mines
For personal use only INTRODUCTION GWALIA – ONE OF AUSTRALIA’S TRULY GREAT GOLD MINES 4
Slide 6: History - Gwalia
History - Gwalia ▪ 1896 - Welsh syndicate discovers the For personal use only Gwalia Reef. ▪ 1897 - Herbert Hoover buys mine for Bewick Moreing ▪ 1929 - Hoover becomes 31st President of USA ▪ 1963 - Mine closes 4 days before Christmas having produced more than 2.5Moz over 67 years. ▪ 1983 - Lalor Br
Slide 7: Leonora land holdings
Leonora land holdings For personal use only • 240km north of Kalgoorlie • Total Mineral Resources (incl. reserves) are 102 Mt @ 2.9g/t for 9.4 Moz (6/09) • King of the Hills located 42kms NNW of Gwalia • Tower Hill 2kms to Gwalia • Includes key ground along Keith Kilkenny lineament • Opportunities i
Slide 8: Leonora workforce profile
Leonora workforce profile For personal use only • 260 personnel • 20% local personnel • 80% FIFO from Perth • SBM new village with state- of-the-art facilities • Low staff turnover: 12 month rolling turnover of 12.4% 7
Slide 9: Geology: Leonora, one of three richest gold provinces in WA
For personal use only GEOLOGY LEONORA – ONE OF THE THREE RICHEST GOLD ENDOWED PROVINCES IN W.A. 8
Slide 10: Long section
Long section For personal use only March 2010 9
Slide 11: Lodes and Stopes
1333 Lodes and Stopes? —_—- — 0. -125°250 00: 750, F Proterozoic Dyke Meters Old Stopes
Slide 12: Gwalia schematic of lodes, in plan view
Gwalia – schematic of lodes, in plan view For personal use only 11
Slide 13: Lodes better defined
Lodes better defined For personal use only • In mine drilling has defined • extensions to existing lodes • distribution of grade in the South Gwalia Series lode 12
Slide 14: Opportunities in long section
Opportunities in long section For personal use only SGS Opportunity – Limited drilling from surface. Drilled FY10 – Not current reserve SWB Opportunity – Not current reserve SWB Opportunity – Limited drilling from surface. Drilled FY10 –Current reserve 1140 SGS Opportunity – Current reserve Stopes m
Slide 15: Extensions to South West Branch defined
Extensions to South West Branch defined For personal use only • SWB long section with gold grade contours shows additional resources are expected to be converted to reserves 14
Slide 16: Mining: Proven mining methods
For personal use only MINING PROVEN MINING METHODS 15
Slide 17: Stress Results - lower than expected
Stress Results – lower than expected For personal use only Stress Test Results & Yilgarn Block Trends Principal Stress (MPa) 0 50 100 150 200 250 300 0 200 400 Result from HI stress test conducted at the 1130 Level. 600 In July 2009 800 Depth (mbs) 1000 1200 1400 1600 1800 2000 HI AE Min Yilgarn Max
Slide 18: Mining method - proven
Mining method - proven For personal use only • 5m x 5m Ore Drive • 1.1m Boxhole slot • 89mm Upholes • Anfo and Emulsion • 2900 Loader (Teleremotes) • Trucks 50-60t Class • Paste Fill • Stoping above and below dyke 17
Slide 19: Gwalia value increases with depth
Gwalia value increases with depth For personal use only Feb’10 18
Slide 20: Development on track to deliver
Development on track to deliver For personal use only metres Total Monthly Development 800 600 400 200 0 19
Slide 21: Development on schedule
Development on schedule For personal use only • Hoover decline currently lower than FY2010 planned production areas and to reach planned FY10 depth (1300mbs) by end Q3 • Development of Adam decline commenced to access newly defined production areas • 3rd Jumbo on site to increase development capacit
Slide 22: Targeting sustainable increases in production rates
For personal use only ktpa 200 400 600 800 0 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 production rates May-09 Jun-09 Jul-09 Aug-09 Sep-09 Annualised Ore Mined Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Targeting sustainable increases in 21
Slide 23: Mine output improving
Mine output improving For personal use only • Feasibility study assumed 1,600 tpd • Ore mining rate up to 2,000 tpd achieved from time to time • Total of 4,500 tpd (ore +waste) to surface achieved • Productivity enhancements ongoing • 1 truck added to fleet for total of 10 • Systems (real time monit
Slide 24: Current mine plan
Current mine plan For personal use only March 2010 23
Slide 25: New mining areas outside reserves
New mining areas outside reserves For personal use only 24
Slide 26: SGS grade varies with position in lode
SGS grade varies with position in lode For personal use only • Production reconciling Average Quarterly Grade to reserves 10.0 • Grade control drilling has lead to better 8.0 understanding of grade 6.0 distribution g/t 4.0 • Planning for coming 2.0 year will be based on grade control drilling 0.0 De
Slide 27: Processing: Fully refurbished 1.2Mtpa processing plant
For personal use only PROCESSING FULLY REFURBISHED 1.2MTPA PROCESSING PLANT 26
Slide 28: Gwalia surface layout
Gwalia surface layout For personal use only Power Station Fridge Plant Compressor ROM Shotcrete Batch Plant Pad Fridge Plant BAC’s Paste Fill Plant Processing Plant Mine Office Tailings Primary Vent Fans Storage Facility 27
Slide 29: Surface infrastructure
Surface infrastructure For personal use only Commissioned and ready for life of mine • Ventilation Fans – 2 x 1350kW – Final Duty 450 m3/sec @ 4kPa • Refrigeration – 4 MWr – Upgradable to 8 MWr (2012/13) • Paste Fill Plant – 100 m3/hr (current rate 130 m3/hr) • Power Station – 4 MW (Dual Fuel) + 11M
Slide 30: Processing plant performing well
Processing plant performing well For personal use only • Mill performance • Experienced process and maintenance crews • Equipment performance in line with expectations • Variability in ore treated managed well • Room for optimisation (cost and recovery) • 95%+ Recovery, 98.5%+ availability 29
Slide 31: Gold recovery well understood
For personal use only 100% 50% 60% 70% 80% 90% Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Gold Recovery Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Gold recovery well understood Nov-09 Dec-09 Jan-10 Lower SGS grade reduced recoveries 30
Slide 32: Processing plant - upside leverage
Processing plant - upside leverage For personal use only • Feasibility study assumed 50% utilisation of 1.2Mtpa capacity • Operation reverted to full time milling mid February • Higher deliveries from underground • 3rd party trial ore parcel from Navigator Resources • King of the Hills ore expected
Slide 33: Available Gwalia mill capacity allows for expansion
Available Gwalia mill capacity allows for expansion For personal use only 1.4 1.2 Tower Hill 1.0 potential development 0.8 would add to 0.6 this profile 0.4 Mtpa 0.2 0.0 Gwalia King of the Hills Gwalia Potential 32
Slide 34: Gwalia delivering
Gwalia delivering For personal use only • Production * • 2010 – 95 -110 koz Three year forecast* • 2011 – 120 -140 koz 250 • 2012 – 190 -210 koz • Cash operating costs* 200 • 2010 – 630 -700 A$/oz 150 • 2011 – 570 -630 A$/oz • 2012 – 445 -550 A$/oz • Capital expenditure* 100 • 2010 – 55 -60 A$mill 5
Slide 35: King of the Hills: New growth project
For personal use only KING OF THE HILLS NEW GROWTH PROJECT 34
Slide 36: King of the Hills
King of the Hills For personal use only • Production at the rate of 65koz pa • Over 3.5 years following a 12 month ramp up period • Production expected to commence in the June Qtr 2011 • Underground development to commence Sept Qtr 2010 • Probable Ore Reserves of 195koz with potential for further in
Slide 37: 42km to Gwalia plant on existing road
42km to Gwalia plant on existing road For personal use only 36
Slide 38: Geological controls over higher grade understood
Geological controls over higher grade understood For personal use only 37
Slide 39: Mineralisation style understood
Mineralisation style understood For personal use only 38
Slide 40: Drilling for extension and design work
Drilling for extension and design work For personal use only 39
Slide 41: King of the Hills extension targets
King of the Hills extension targets For personal use only 40
Slide 42: Mining layout and initial drill targets
Mining layout and initial drill targets For personal use only 41
Slide 43: King of the Hills - potential for regional analogues
King of the Hills – potential for regional analogues For personal use only 42
Slide 44: Tower Hill - progressing
Tower Hill – progressing For personal use only • Structural study underway with the objective of • Understanding the controls over high grade gold mineralisation • Defining the continuity and geometry of the high grade zones • Improving mine design parameters • Targeted drilling - likely outcome • T
Slide 45: Leveraging value
Leveraging value For personal use only • Gwalia – cornerstone of operations 1 • High grade (9g/t), long life 8 yrs+ • Increasing grades in FY11 and FY12 • First quartile cash operating cost producer by FY12 • Value leverage • Improvements in mining efficiencies at Gwalia • Gwalia deposit open at dep
Slide 46: Thank you
For personal use only Thank you 45