Slide 1: Gold Fields South Deep Rebase Plan
Gold Fields South Deep Rebase Plan Market Presentation February 2017
Slide 2: Agenda
Agenda 1. World Class Orebody 2. Operational Strategy & Progress 3. Rebase Plan Strategy & Objectives 4. Geotechnical Considerations and Mine Design 5. Mine Planning and Production Profiles 6. Capital Infrastructure 7. Risks 8. Financials 2
Slide 3: A World Class Ore Body
A World Class Ore Body
Slide 4: Introduction and Location
A World Class Ore Body Introduction and Location Cooke 1,2,3 Cooke 4 Driefontein DRD Kloof Mponeng Kusasuleto MAIN CHARACTERISTICS BRIEF HISTORY • Situated on the NW rim of the Witwatersrand Basin • 1950: Prospecting commenced in the area • Upper Elsburg Formation • 1961: Production commenced at Wes
Slide 5: Regional Geology - Depositional Environment
A World Class Ore Body Regional Geology - Depositional Environment Mining Right Boundary MAIN FEATURES • Upper Elsburg Reef formation constitutes the primary economic target • Geometry suited to mechanised mining • Key Infrastructure • Twin shaft complex : main and ventilation # to 110 level • South
Slide 6: Local geology cross section view
A World Class Ore Body Local geology CROSS SECTION VIEW (at intersection line shown in plan view) Corridors 4 3 2B 2A 1B 1A Mining Span 180m 180m 180m 180m 100m 100m EAST WEST Sub-outcrop VCR VCR 2m MBT Plan View MBB MIQ MIT MIB MAD 120m MAC Vertical Longhole ED Stoping ECT ECMQ ECMC Drifting & ECBQ
Slide 7: High Profile Destress & Longhole Stoping
A World Class Ore Body High Profile Destress & Longhole Stoping Shaft Stope Access & Development Infrastructure slot Drain Hole Twin Footwall Cross Cut 7
Slide 8: High Profile Destress & Longhole Stoping
A World Class Ore Body High Profile Destress & Longhole Stoping Shaft Stope Access & Development Infrastructure Cut 1 : Destress Starts slot Drain Hole Twin Footwall Cross Cut Intake Ventilation Pass Return Ventilation Pass Ore Pass 8
Slide 9: High Profile Destress & Longhole Stoping
A World Class Ore Body High Profile Destress & Longhole Stoping Shaft Stope Access & Development Infrastructure Cut 1 : LHS Starts slot Cut 2 : Destress Starts Drain Hole Twin Footwall Cross Cut Intake Ventilation Pass Return Ventilation Pass Ore Pass 9
Slide 10: High Profile Destress & Longhole Stoping
A World Class Ore Body High Profile Destress & Longhole Stoping Shaft Stope Access & Development Infrastructure Cut 1 : Mature slot Cut 2 : LHS Starts Drain Hole Twin Footwall Cross Cut Intake Ventilation Pass Return Ventilation Pass Cut 3 : Destress Ore Pass Starts Corridor progression 3 active cut
Slide 11: High Profile Destress & Longhole Stoping
A World Class Ore Body High Profile Destress & Longhole Stoping 90-1 A&B slot 4 cuts 95-1B 2 cuts The number of cuts shown are 4 up to the end of North of Wrench 2B 1A 14 cuts 3 2A 9 cuts 1B 5 cuts 11 cuts 6 cuts 4 cuts Destress cuts in 6 corridors 11
Slide 12: High Profile Destress and Longhole Stoping (LHS)
A World Class Ore Body High Profile Destress and Longhole Stoping (LHS) 15m • Longhole Stoping 2 Mining Direction • Primary source of reef mining 4 700t/Blast 20m High profile support Mechanical Installation • HP destress (5,5m height x 5m wide) 1 • Primary & secondary support YEAR-1 YEAR-2 YEAR-3 Y
Slide 13: Mining Methods
Mining Methods Drifting and Benching (Selective Mining) Benching • Width – 6 m • Height – 8 - 15 m • Length – up to 60m • 670 tonnes per blast Drifting • Width – 6 m • Height – 5.5 m • Length – up to 60m • 315 tonnes per blast 13
Slide 14: Mining Areas
A World Class Ore Body Mining Areas RESERVES • Current Mine 7Mt 1.4Moz (6.1g/t) • North of Wrench 57Mt 10.7Moz (5.8g/t) CM 1,490 m • South of Wrench East 50Mt 8.6Moz (5.3g/t) • South of Wrench West 104Mt 16.6Moz (5.0g/t) VCR 610 m • Total 218Mt 37.3Moz (5.3g/t) NoW 980 m LOM • 88.8km capital develop
Slide 15: Geological Modelling Inputs - De-risking the Ore Body
A World Class Ore Body Geological Modelling Inputs - De-risking the Ore Body 3D Seismic Surface drilling LIB Drilling Grade Control Survey (49,536m) (Long Inclined Boreholes) Drilling (2004) (~17 km) High correlation with 600m x 600m grid 300m x 300m grid 30m x 30m grid drill hole data Seismic surve
Slide 16: Geological Modelling Inputs
A World Class Ore Body Geological Modelling Inputs N South Shaft N Grade control drilling LIB drilling Surface Drilling Seismic Survey Twin Shaft CURRENT MINE 1 532 Boreholes LIB and Grade Control Drilling - Plan LIB and Grade Control Drilling - Plan NORTH OF WRENCH LIB and Grade Control Drilling -
Slide 17: Operational Strategy & Progress
Operational Strategy & Progress
Slide 18: South Deep 2015 – 2016 Business Strategy – Fix the Base
Strategy and Progress South Deep 2015 – 2016 Business Strategy – Fix the Base 1 Secure and Sustain • Fix the base • Long term plans off the table • Focus on short term operational improvements • 68 initial BI projects • Sustainability • Bed down mining methods / geotechnical considerations • Mining
Slide 19: Fix the Base - Business Improvement
Strategy and Progress Fix the Base - Business Improvement Total Projects Program 2017 2018 Projects Completed People 9 7 2 - Health and Safety 5 3 2 - Fleet and Fleet Management 11 5 4 2 Infrastructure 16 6 6 4 Mining 15 2 8 5 Mineral Resource Management 10 5 4 1 Financial and Administration 2 1 1 -
Slide 20: Experienced management team appointed
Strategy and Progress Experienced management team appointed VP and Head of Operations Adriaan de Beer Head of Head of Mining Head of Mining Engineering Johan Stoltz Kabelo Sefatsa Johan Kleynhans Head of Head of Head of SHEQ Metallurgy Technical Stuart Sepetla Stephen Joseph Thabile Makgala Head of
Slide 21: People and Skills
People and Skills Steady state critical skills in place Act Description 2017 2018 2019 2020 2021 2022 Q4 2016 TOTAL LABOUR 5 899 6 149 6 015 5 890 5 867 5 832 5 837 Employees in Service 3 899 4 253 4 363 4 333 4 341 4 308 4 313 Contractors 2 000 1 896 1 652 1 557 1 526 1 524 1 524 MANAGEMENT 19 22 2
Slide 22: Mechanised Mining Skills Development Programs
People and Skills Mechanised Mining Skills Development Programs Mining employees "Back to Basics" Mining Supervisory Up-Skilling Trackless Operator Up-Skilling Program (1 535) Program Planned 154 Planned Program 498 180 600 1600 Management 160 1400 154 500 140 112 Supervision 1200 120 400 210 498 10
Slide 23: Mining Physical Conditions
Mining Physical Conditions Before After Poor footwall water control Correct roadway conditions Poor support quality Correct support installation Focus on Continuous Condition Improvement 23
Slide 24: Maintenance Infrastructure
Maintenance Infrastructure 93 Level workshop commissioned Effective Infrastructure will Improve Fleet Maintenance and Performance 24
Slide 25: Operational Performance
Operational Performance Positive performance trends achieved TRIFR Tonnes Milled – monthly average 5.00 160 000 4.50 140 000 4.00 120 000 3.50 3.00 100 000 tonnes TRIFR 2.50 80 000 2.00 60 000 1.50 40 000 1.00 0.50 20 000 - - 2014 2015 2016 2014 2015 2016 TRIFR Linear (TRIFR) Tonnes treated (shafts)
Slide 26: Operational Performance
Operational Performance Positive performance trends achieved Development - monthly average Destress - monthly average 700 3 000 600 2 500 20% 500 2 000 metres 400 69% m2 1 500 300 1 000 200 100 500 - - 2014 2015 2016 2014 2015 2016 Development Linear (Development) Low Profile High Profile Longhole S
Slide 27: Rebase Plan Strategy and Objectives
Rebase Plan Strategy and Objectives
Slide 28: Strategy and Objectives
Strategy and Objectives Sustainability & Profitability • No compromise on safety and health Safety and • Infrastructure maintenance and renewal Health • Safe mining methods (mechanisation & automation, seismic controls, safe design) • Secondary support capacity designed to match requirement • Geolog
Slide 29: Geotechnical Considerations & Mine Design Criteria
Geotechnical Considerations & Mine Design Criteria
Slide 30: Geotechnical Considerations
Geotechnical Considerations Design optimisation Aspect Improvements/ changes Reasons for change Progress • 240m horizontal destress span • Increase the overall stiffness to reduce deformation , improve safe decreased to 180m working conditions and improve longhole extraction • Corridors increased fr
Slide 31: Regional Pillar Design - 240m spans versus 180m spans
Geotechnical Considerations Regional Pillar Design - 240m spans versus 180m spans 3W 3W 2W 2W 1W 1W 4W 4W 3W 1W 2W 3W 2bW 1aW 2aW 1bW • 240m x Spans & 60m x Pillars • 180m x Spans & 60m x Pillars • 4 x Corridors • 6 x Corridors 31
Slide 32: Destress Cut 2015 Design
Mine Design Destress Cut 2015 Design Cut Access Access Ramp Yield Pillar Design Ore Pass Footwall Infrastructure 32
Slide 33: Destress Design
Mine Design Destress Design Previous Normal Destress Stoping Layout New Rib Pillar Destress Stoping Layout • Single Access • Twin Access • 6 m x 10 m Yield Pillars • 20 m x 8 m Yield Pillars • High Backfill Requirements • Limited Backfill Requirements 33
Slide 34: Destress Cut Infrastructure Improvements
Mine Design Destress Cut Infrastructure Improvements Pass Bay Second Escape Access Ramp Pass Bay Truck Loading Bay Twin Cut Access Stores Pass Bay Intake Pass Maintenance Bay Rib Pillar Design Waiting Place / Refuge Bay Mini-Sub Return Pass Twin MAD Ore Pass Ore Pass No.2 Pump Relay Station (2-3 per
Slide 35: Corridor Design
Mine Design Corridor Design Ventilation Intake Cut 1 Ventilation Intake Cut 2 Cut 3 Ventilation Return Truck Tramming Destress Cut Inclination : Destress cut sloped at 10 downwards to accumulate water at the face to facilitate improved water control 35
Slide 36: Longhole Stoping Sequence
Mine Design Longhole Stoping Sequence - Primary / Secondary Sequence (C2017) 1 1 4 4 2 2 3 3 5 5 6 6 Legend: 7 7 8 Stoping 8 Backfill Mine primary stopes and then secondary Sequential Sequence (C2018) 4 5 2 3 1 1 2 3 4 5 8 9 6 7 6 7 9 8 Mine primary stopes with back fill support and primary immediat
Slide 37: Seismicity
Geotechnical Considerations Seismicity Seismic Properties Controls Forecast Reduce Energy Release Rate Events related to production volume and in particular to the Corridor Span & Rib Pillar rate of destress stope advance Energy release per tonne Preconditioning reducing Mining Geometry Events locat
Slide 38: Seismicity vs Destress Production
Geotechnical Considerations Seismicity Strong correlation with destress stoping volumes Seismicity (Events) vs Destress Production Crush pillars in LP Destress Stopped for Combined All HP Destress secondary support LP & HP 140 60 000 120 50 000 No. of Events Destress (tonnes) 100 No. of Events 40 00
Slide 39: Mine Planning & Production Profile
Mine Planning & Production Profile
Slide 40: Mine Planning Strategy
Mine Planning Strategy • Build-up to full production using input assumptions Mining • Maintain steady state as long as possible from NoW Philosophy • Maximise volume from Current Mine while the Corridors build up • Verify mining method application • Stiffer pillar design (Rib-pillar destress & Regio
Slide 41: Production Growth
Mine Planning Production Growth Longhole Stoping 44% 52% 47% 57% 54% 67% 68% 6 Rigs 8 Rigs 8 Rigs 9 Rigs 9 Rigs 11 Rigs 12 Rigs 15 Stopes 19 Stopes 26 Stopes 26 Stopes 30 Stopes 35 Stopes 35 Stopes 250 235 224 210 192 200 174 153 144 113 160 150 150 kt/mth 82 110 64 80 100 33 24 39 24 35 31 33 50 56
Slide 42: Efficiency Assumptions & Plan Outputs
Mine Plan Outputs Efficiency Assumptions & Plan Outputs Development Drill Rigs no 10 10 9 8 10 6 6 Faces Available no 47 49 47 41 51 41 41 Development Unit Face Availability faces/rig 5 5 5 5 5 7 7 Rig Efficency m/mth/rig 74 66 78 83 89 91 86 Rig Efficency kt/mth/rig 5.4 4.8 6.0 6.2 6.6 6.8 6.5 Impr
Slide 43: Trackless Fleet Schedule
Production Planning Trackless Fleet Schedule Description 2016 2017 2018 2019 2020 2021 2022 1 TOTAL 202 199 202 197 196 191 186 2 CATEGORY 1 111 108 111 106 105 100 95 2.1 HP Drill Rigs 30 31 33 31 31 28 26 2.2 LHS Drill Rigs 8 10 11 11 11 12 12 2.3 LHD's 33 35 38 35 35 34 31 2.4 Bolters 5 5 5 5 5 5
Slide 44: Mining Capacity, Ore Handling and Hoisting Simulation
Mine Planning Mining Capacity, Ore Handling and Hoisting Simulation Performance Analyses Variability Modeling Discreet Event Simulation Design Criteria Monte Carlo Simulation Mining Capacity Modeling Mining Activities: Mining Activities: Capacity Analysis: • Drill Designs • Development Drilling and
Slide 45: Summary of Results - Mining Capacity, Ore Handling and Hoisting Simulation
Mine Planning Summary of Results - Mining Capacity, Ore Handling and Hoisting Simulation Ore Handling and Hoisting 90, 95, 100 Level Tramming Crushers Capacity Phase 1 Crushers Capacity Phase 2 Capacity (2W / 4W Satellite) (2W / 4W) 160 ktpm 180 ktpm 310 ktpm Total Tonnes Mining Capacity 2017 Curren
Slide 46: Production Profile
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Slide 47: Life of Mine - Tonnage Profile
Production Profile Life of Mine - Tonnage Profile – Average Tonnes per Month 300 30.0 Steady state from South of Wrench Current Mine and North of Wrench (East and West) 2022 ≈ 10 years Destress starts in 2033 ≈ 63 years 250 25.0 230 Ore Production (kt/mth) 200 20.0 Au Production (t) SoW West 150 kt/
Slide 48: Capital Infrastructure
Capital Infrastructure
Slide 49: Basic Ventilation and Refrigeration Infrastructure Layout
Capital Infrastructure Basic Ventilation and Refrigeration Infrastructure Layout Twins Ventilation 2020 Colour Coding: RED – UPCAST SHAFT GREEN – DOWNCAST SHAFTS Shaft 3 of 4 fans 2 of 4 fans South Shaft running 2x Surface Fans – Twins Main running Replacement 2017 Shaft Ventilation Requirements SV
Slide 50: Cooling Phase In
Capital Infrastructure Cooling Phase In 300 50 95-1W BAC2 45 80 Level 95-1W BAC1 No.3/4 Machine Refrigeration 250 40 No.2 Machine Plant 105-3W BAC South Shaft No.1 Machine 105-4W BAC 35 200 100-2W BAC No.4 Machine Cooling Capacity (MW) 30 94 Level Kilo Tonnes Refrigeration No.3 Machine Plant 150 25
Slide 51: Rock Handling Infrastructure
Capital Infrastructure Rock Handling Infrastructure NoW Capacity Main Crusher 2 West Main Crusher 4 West Satellite Crusher 4 West 100 Level Rail Now NoWTonnage Tonnage Main Crusher 2 West Construction 16 Months Aug'18 to Nov‘19 280 000 Main Crusher 4 260 000 West Satellite Crusher 4 Construction 14
Slide 52: Ore Handling - South Deep Overview
Capital Infrastructure Ore Handling - South Deep Ore Handling (NoW) - Overview 90 Level Rail 95 Level Rail South # 100 Level Rail 100 Level Conveyor 105 Level Conveyor 90 Level 110 Level Conveyor 110A Level Conveyor Silo Shaft Passes Main # Vent # 93 Level Workshop 95 Level 100 Level Satellite Crush
Slide 53: Backfill - Focus Areas
Capital Infrastructure Backfill - Focus Areas • Refurbish and modernise CCT plant, Control & Instrumentation Backfill (Surface and 83 level) Manufacturing • Hot commission full FPT plant (320m3/hour capacity) • Integrate FPT & CCT plant operational control Delivering South Deep • Installation of 2 x
Slide 54: Backfill - Longhole Stope Barricades
Capital Infrastructure Backfill - Longhole Stope Barricades • Historical practice at South Deep South Deep Backfill Evolution Paddock • Labour & Material intensive Barricade • Multiple lifts constructed on top of one another • Wooden uprights covered with wire mesh and shotcrete • Construction time
Slide 55: Backfill Requirements vs Placement Capacity
Capital Infrastructure Backfill Requirements vs Placement Capacity Increased efficiency due to stope locality and orientation and 90 000 FPT range Increased efficiency Increased efficiency due to an increased distribution due to barricade construction void availability 80 000 Commissioning of 2 impr
Slide 56: Pumping Strategy
Capital Infrastructure Pumping Strategy • Separation of the mine service water from cooling water • Current mine water above 95 Level report to South Shaft • South Shaft pump station and surface infrastructure to remain for LOM pumping • Reduction in pumping requirements - Cooling water in closed lo
Slide 57: Capital Development - 2016 - 2022
Capital Infrastructure Capital Development - 2016 - 2022 South Shaft 93 level Twin Shaft 2017 93 Level access to 1W (2018) 2018 2019 • Return air ways 100 level 2020 • Access to 93 level workshop 2021 workshop 2022 95 level 100 level conveyor 2W Main Crusher Feeds rock to 100 level and 105 level con
Slide 58: Growth Capital Expenditure
Capital Infrastructure Growth Capital Expenditure Description C2016 C2017 C2018 C2019 C2020 C2021 C2022 Total Infrastructure - Underground - 204 273 308 157 57 45 1 044 Refrigeration - 74 159 151 99 17 6 506 Ore Handling - 52 22 51 - - - 125 Backfill - 39 32 16 4 7 - 98 Crushers - 22 42 62 20 - - 14
Slide 59: Risks
Risks
Slide 60: Top Operational Risks
Top Operational Risks No Risk Risk Mitigating Action • Optimised design – increased regional stiffness 1 Geotechnical risk associated with destress mining method • Pillar behaviour monitoring • Preconditioning • Change to sequential mining beyond 2017 • Secondary stope monitoring 2 Loss of secondary
Slide 61: Financial
Financial
Slide 62: Financials
Financials Executive Summary 2017 Money Terms Description Unit 2016 2017 2018 2019 2020 2021 2022 Long Term Guide Tonnes Milled kt 2 249 2 452 2 868 2 733 2 687 2 766 2 861 1. Gold remains at circa 500koz per annum from 2023 to 2031 Underground Reef kt 1 634 1 829 2 085 2 300 2 518 2 691 2 815 and t
Slide 63: End
End