Slide 1: South Deep: A World Class Ore Body In Perspective
South Deep: A World Class Ore Body In Perspective TIM ROWLAND Group Competent Person 7 April 2014
Slide 2: Forward looking statements
Forward looking statements Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. In p particular, the forward looking g statements in this document incl
Slide 3: Agenda
Agenda Agenda • Regional and Local Geology • Geological Modelling Inputs o 3D Seismic Survey o Surface Drilling Programme o Grade Control and Mine Exploration Drilling • Geological Modelling Procedures • Mineral Resource Reso rce Estimation • Mine Design and Planning • Mineral Mi lRResource and d Mi
Slide 4: Regional and Local Geology
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Slide 5: Regional and Local Geology
Regional and Local Geology Depositional Environment Far West Rand Blyvooruitzicht West Rand Cons. Goldfield Elandsrand Doornkop Cooke Section Ezulwini SOUTH DEEP West Wits Line Kloof Goldfield Driefontein f Mponeng Central Rand Goldfield South Deep A Unique Ore Body In An Area With A 60+ Year Produc
Slide 6: Local Geology
Local Geology Cross Section Of Ore Body (Linked To Mining Method) Subcrop 240m 240m 240m 240m 4-West (4W) 3-West (3W) 2-West (2W) 1-West (1W) WEST EAST Base of Ventersdorp lava C4 C3 C2 C1 VCR VCR 2m MBT MBB MIQ MIT T Targeted d reeff units i MIB 120m MAD MAC Vertical ED ECT ECMQ ECMC ECBQ ECB ECBAQ
Slide 7: Ore Body Dictates Mining Method
Ore Body Dictates Mining Method Reserve Designs In Section: Corridor 4 Bench Drift Section view without C4 resource model C3 C2 C1 South Deep: A World Class Ore Body In Perspective | Tim Rowland, Group Competent Person | 7 April 2014 7
Slide 8: Ore Body Dictates Mining Method
Ore Body Dictates Mining Method Reserve Designs In Section: Corridor 3 Section view without resource model C4 C3 C2 C1 South Deep: A World Class Ore Body In Perspective | Tim Rowland, Group Competent Person | 7 April 2014 8
Slide 9: Ore Body Dictates Mining Method
Ore Body Dictates Mining Method Reserve Designs In Section: Corridor 2 Section view without resource model C4 C3 C2 C1 South Deep: A World Class Ore Body In Perspective | Tim Rowland, Group Competent Person | 7 April 2014 9
Slide 10: Ore Body Dictates Mining Method
Ore Body Dictates Mining Method Reserve Designs In Section: Corridor 1 Section view without resource model C4 C3 C2 C1 South Deep: A World Class Ore Body In Perspective | Tim Rowland, Group Competent Person | 7 April 2014 10
Slide 11: Geological Modelling Inputs
Geological Modelling Inputs
Slide 12: De-risking The Ore Body
Geological Modelling Inputs De-risking De risking The Ore Body 3D Seismic Surface drilling LIB Drilling Grade Control Survey (Long Inclined Drilling (2007-2013) Boreholes) ((2003)) ((49,536m) , ) (13,023m) 50m x 50m grid ~20m resolution 600m x 600m grid 300m x 300m grid Covers the whole lease Used f
Slide 13: 3D Seismic Survey
Geological Modelling Inputs 3D Seismic Survey ● Raw 3D Seismic data from all available data sets has been combined and reprocessed to produce a single consolidated seismic image of the subsurface strata ● The consolidated seismic volume extends 40km East – West, 16km North –South and reaches depths
Slide 14: Surface Exploration Drilling
Geological Modelling Inputs Surface Exploration Drilling • Drilling completed by GFI in 2013 (6 Year Project) • The focus was on improving the confidence in the resource estimate Destress & Massive south of the Wrench fault Mine plan to C2020 • Achieved A hi d a grid id off approximately i t l 600m
Slide 15: Surface Drilling
Geological Modelling Inputs Surface Drilling • Borehole depths varied between 2,400m 2 400m and Surface 3,400m below surface Pretoria Group • Up to 12 intersections per borehole, dependant on ground conditions and drill Base of Rooihoogte formation at 500mbc string integrity • 3 clusters of 4 inters
Slide 16: Surface Borehole Intersections and Sampling – Corridor 4
Geological Modelling Inputs Surface Su ace Borehole o e o e Intersections te sect o s and a d Sampling Sa p g – Co Corridor do 4 ((E.g. g Hole o e DP 25) 5) Reef # of Channel Grade (g/t) Samples Width (cm) VCR 3 63 3.4 Sample sizes vary between 2cm and 10m MBT 35 8.48 10.0 60cm depending on the reef
Slide 17: Surface Borehole Intersections and Sampling – Corridor 3
Geological Modelling Inputs Surface Su ace Borehole o e o e Intersections te sect o s and a d Sampling Sa p g – Co Corridor do 3 (E.g. ( g Hole o e DP 7)) 10m Reef # of Channel Grade (g/t) Samples Width (cm) Sample sizes vary VCR 5 108 30.9 b t between 2 2cm andd MBT 31 672 7.9 60cm depending on the
Slide 18: Surface Borehole Intersections and Sampling – Corridor 2
Geological Modelling Inputs Surface Su ace Borehole o e o e Intersections te sect o s and a d Sampling Sa p g – Co Corridor do 2 (E.g. ( g Hole o e DP24 SD3) S 3) 10m Reef # of Channel Grade (g/t) Samples Width (cm) MBT 3 104 14.5 Sample sizes vary b t between 2 2cm andd MBB 25 789 9.5 60cm dependin
Slide 19: Surface Intersections and Sampling – Corridor 1
Geological Modelling Inputs Surface Su ace Intersections te sect o s and a d Sampling Sa p g – Co Corridor do 1 (E.g. ( g Hole o e K1)) 10m Reef # of Channel Grade (g/t) Samples Width (cm) VCR 7 199 4.4 Sample sizes vary b t between 2 2cm andd MBT 15 411 3.7 60cm depending on the reef contacts. MBB
Slide 20: Indicative Results
Geological Modelling Inputs Indicative Results ● Slides that follow show summarised results for 4 of the 16 Upper Elsburg units at South Deep (MBB, (MBB MIT, MIT ECT and ECMC); (Approximately 70% of total Reserve). Reserve) ● The g grade and channel width data are p provided as simple p mathematical
Slide 21: Surface Drilling – MBB Reef
Geological Modelling Inputs Surface Su ace Drilling g – MBB Reef ee Channel Grade Borehole Width (cm) (g/t) MD44 463 13.7 MD45 555 96 9.6 DP12 293 12.9 DP19 145 15.8 DP21 43 27.6 DP25 282 5.7 DP7 456 3.9 KDP2 402 7.9 KMF1 657 61 6.1 DP20 544 5.2 DP24 614 10.4 KMF3 558 2.7 Current Holes Historic Hole
Slide 22: Surface Drilling – MIT Reef
Geological Modelling Inputs Surface Su ace Drilling g – MIT Reef ee Channel Grade Borehole Width (cm) (g/t) DP12 132 09 0.9 DP7 309 2.4 MD44 725 9.1 MD45 1030 9.2 DP25 208 7.5 DP24 194 2.1 KMF3 1513 4.3 KMF4 1687 32 3.2 K1 532 5.2 KDP2 440 13.5 KMF5 1256 2.6 KMF7 1100 2.5 KMF8 527 1.1 KMF1 1288 1.8
Slide 23: Surface Drilling – ECT Reef
Geological Modelling Inputs Surface Su ace Drilling g – ECT C Reef ee Channel Grade Borehole Width (cm) (g/t) DP12 575 6.8 DP13 164 77 7.7 DP7 760 6.7 MD44 425 4.2 MD45 492 4.9 DP19 551 6.2 DP20 469 3.2 DP25 405 13.1 K1 192 07 0.7 KMF3 584 2.0 DP24 195 7.3 KMF8 359 2.4 KMF2 672 0.7 KMF4 991 1.2 DP21
Slide 24: Surface Drilling – ECMC Reef
Geological Modelling Inputs Surface Su ace Drilling g – ECMC C C Reef ee Channel Grade Borehole Width (cm) (g/t) DP12 99 0.7 MD44 581 4.9 DP25 195 13.6 DP7 679 5.7 MD45 437 87 8.7 DP20 148 3.1 DP21 188 3.8 DP22 301 12.6 KMF8 863 1.7 KDP2 145 1.4 KMF1 300 0.2 KMF2 605 12 1.2 KMF3 575 0.7 KMF4 650 1.0
Slide 25: LIB Drilling
Geological Modelling Inputs LIB Drilling g • The mine has supported an aggressive underground drilling program since i mid-2009 id 2009 tto address dd th the hi historically t i ll llow b borehole h l ddata t ddensity it which supported the earlier geological and resource models. • Long Inclined Bor
Slide 26: North of Wrench LIB Drilling Campaign
Geological Modelling Inputs North o t of o Wrench e c LIB Drilling g Campaign Ca pa g • 9 VCR LIB’s LIB s drilled in 2012/2013. • 10 Upper Elsburgs LIB’s completed; 8 more to be drilled in next 2 years years. • Grade control drilling is on plan in Corridors 1, 2, 3 & 4. • 87 87-1W 1W & 8787-2W 2W on
Slide 27: Cross Section of a LIB Hole Looking East
Geological Modelling Inputs Cross C oss Sect Section o oof a LIB Hole o e Looking oo g East ast 1,300m 1 300 LIB h hole l drilled from 95L North SouthSouth intersecting the 137m North Wrench Fault upthrow Wrench 137m Wrench fault F lt and Fault d confirming fi i 137m position and throw of the Upper
Slide 28: Grade Control Drilling
Geological Modelling Inputs Grade G ade Co Control t o Drilling g • A planned drilling grid is targeted comprising in-stope and destress d illi and drilling d drilling d illi from f footwall f t ll infrastructure i f t t up to t 70m 70 ahead h d off the th current destress ‘leading edge’ • In-stope
Slide 29: Grade Control Drilling – 7 year plan
Geological Modelling Inputs Grade G ade Co Control t o Drilling g – 7 yea year p plan a (p (provides o des high g co confidence) de ce) • Drill hole density has been reduced from 80m to 50m in the last 5 years 200m • Virgin ground drilling done ahead of mining, covers a range of 50-70 metres Outline
Slide 30: Typical Grade Control Drill Fan from Main Access Drive
Geological Modelling Inputs Typical yp ca Grade G ade Control Co t o Drill Fan a from o Main a Access ccess Drive e in the t e Destress est ess Cut Side view • Grade control drilling fan drilled from the two Main Access Development limits per destress cut • Average length of hole = 85m Rotated view
Slide 31: Geological Modelling Procedures
Geological Modelling Procedures South Deep p Gold Mine
Slide 32: Improvement in Accuracy and Confidence in Modelling
Geological Modelling Procedures Improvement p o e e t in Accuracy ccu acy and a d Confidence Co de ce in Modelling ode g 2005 2008 •16 Units •Re‐aligned 2010 •16 Units •4 Units •Gold Fields Subcrop Positions acquires South •Kriging of Channel •Shore Line •LIB Drilling Deep Gold Mine Widths & Dynamic
Slide 33: Facies and Domains
Geological Modelling Procedures Facies ac es a and d Domains o a s • Geological facies are areas of the ore body that have been deposited under similar conditions and correlate with gold grade distribution • Domains are areas within a facies zone in which a consistent g grade distribution occurs • D
Slide 34: Mineral Resource Estimation
Mineral Resource Estimation South Deep p Gold Mine
Slide 35: Current Process Flow for Model Updates
Mineral Resource Estimation Current Cu e t Process ocess Flow o for o Model ode Updates • Process all samples through the QA/QC programme. Sampling • Convert all geological data to a dynamic modelling environment and update the geological, geological facies and domain models. models Geological Model
Slide 36: Resource Evaluation and SAMREC Classification
Mineral Resource Estimation Resource esou ce Evaluation a uat o aand dSSAMREC CCClassification ass cat o • Geostatistical models are generated for each of the 16 units • Estimation is constrained by geostatistical domains • Ordinary and Simple Kriging techniques are utilised in the estimation of gra
Slide 37: Planning vs Measured Boundaries
Planning vs Measured Boundaries Dec ec 2013 0 3 Measured easu ed Boundary ou da y & Dec ec 2014 0 CoConfidence de ce Boundary ou da y Dec 2013 Measured Boundary y Planning Total Inside Outside Tonnage (kt) 1 969 148 2 117 C2014 % 93% 7% 100% Tonnage (kt) 2 183 385 2 568 C2015 % 85% 15% 100% Tonnage
Slide 38: Grade Reconciliation – Resource Model vs Grade Control Model
Mineral Resource Estimation Grade Reconciliation – Resource Model vs Grade Control Model ((MBB unit - Corridor 4)) Reef Resource Model Grade Control Grade Control Model Percentage Change Grade (2011) Drilling Grade (2012) Grade (2013) MBB Reef (g/t) 17.11 16.77* 16.77 16.90 ‐1.2% 1.2% * Arithmetic m
Slide 39: Mine Design and Planning
Mine Design and Planning South Deep p Gold Mine
Slide 40: Mine Design and Planning Overview
Mine Design and Planning Overview O e e • Mining method in use was developed at South Deep, specific to the ore body. Scheduling assumptions are based on actual achieved efficiencies • Destress mining is required to enable the mining of large excavations in a destressed environment and will be appli
Slide 41: LOM Sequence
LOM Sequence Mining g sequence q – LoM ends in 2087 Depth – 2400m below surface Old Mine Current 95 Level Mine 93 Level N Wd NoW depleted l t d iin 2051 105 Level 110 Level NoW • LOM 2014 to 2087 (38,224 koz) 95 Level Wrench Fault SoW E S WW SoW 110 Level L l Depth – 3300m below surface Mineral Rese
Slide 42: Mineral Resource and Mineral Reserve
Mineral Resource and Mineral Reserve South Deep p Gold Mine
Slide 43: Mineral Resource
Mineral Resource As s at December ece be 2013 0 3 Measured Indicated Inferred Total Mineral Resource Mineral Resource classification Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold per mining area (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Underground
Slide 44: Mineral Resource – Top Gold Deposits Resource Size
Mineral Resource As s at December ece be 2013 0 3 Top 10 Gold Deposits ‐ Resource Size 120 000 100 000 80 000 Ressource (KOz) 60 000 40 000 20 000 0 World’s South Deep: A World Class Ore Body Second In Perspective | Tim Largest Gold Rowland, Group Mineral Competent Resource Person | 7 April 2014 Pag
Slide 45: Mineral Reserve
Mineral Reserve As s at December ece be 2013 0 3 73 Year mine life (2014‐2087) Proved Probable Total Mineral Reserve Mineral Reserve classification Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold per mining area (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Underground Current Mine 12.0 5
Slide 46: Resource to Reserve Reconciliation
Resource to Reserve Reconciliation Mineral e a Reserve ese e Time e Line e R Reserve O Ounces and dGGrades d 50 6.40 Millions 6.20 40 6.00 30 5 80 5.80 5.60 20 5.40 5.20 10 5.00 0 4.80 Jun 2006 Jun 2009 Dec 2010 Dec 2012 Dec 2013 Elsburgs VCR OldMine Head Grade VCR 3,793,615 3,426,755 445,037 415,16
Slide 47: Resource to Reserve Reconciliation
Resource to Reserve Reconciliation South Deep p Gold Mine
Slide 48: Resource to Reserve Reconciliation
Resource to Reserve Reconciliation Ou ces Ounces South Deep Mineral Resource Reconciliation 80.0 70.0 6.4 60.0 6.5 2.0 06 0.6 50.0 Cut‐off Grade Golld (Moz) • Mining beyond Resource ‐ Reserve 2087 40.0 75.8 CM 3.2 g/t ‐ 3.8 g/t 19 1 19.1 FM 3.6 g/t ‐ 4.2 g/t 2.9 30.0 • MCF of 98% • 87 1BW 20.0 38.2
Slide 49: Resource to Reserve Reconciliation – Grade
Resource to Reserve Reconciliation G ade Grade South Deep Mining Grade for the 7 Year 9.0 0.8 8.0 7.0 0.6 0.9 6.0 0.4 Low grade 5.0 and waste 0.8 0.1 grade 0.1 Cut‐off Grade Low ggrade VCR C notot g 4.0 Resource ‐Reserve material within reported as 7.3 CM 3.2 g/t ‐ 3.8 g/t stope designs reserve MCF
Slide 50: Summary – Key Points
Summary Key ey Points o ts Continuous data supplied by sequential, rolling drilling programs Robust geological modelling with appropriate resolution. Resource estimation embodies a high level of ore body granularity Ore body dictates relevant mine design and mining method Good reconciliati
Slide 51: Thank you
Thank you South Deep p Gold Mine