Slide 1: Wafi-Golpu update
Wafi-Golpu update 25 August 2010
Slide 2: Safe Harbour Statement
Private Securities Litigation Reform Act Safe Harbour Statement This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 as amended, 1933, amended and 21E of the Securities Exchange Act of 1934, 1934 as amended, amended that are intended
Slide 3: Contents
Contents 1 Recent history and resource upgrade 2 Project description 3 Concept study 4 Permitting 5 Timeline 6 Early works plan 7 Exploration upside 3
Slide 4: Background
Background – 2007 Pre-feasibility study – technically and financially viable mining operation – 100Mt block cave on Golpu – ~US$0.64/lb cash cost – US$1.5 billion capital – 13 year mine life – risk/reward equation We are here Recommendations – Loop back to concept Gate Gate Gate – Seek capital reduc
Slide 5: Golpu July resource upgrade
– Golpu July resource upgrade – gold increased from 3.0 to 8.8Moz – copper increased i d ffrom 1 1.8 8 tto 4 4.8Mt 8Mt – molybdenum increased from 22 to 55kt – on an ounce equivalent basis the Golpu deposit increased to 30.9Moz Au – Drilling underway continues to grow the resource – arbitrary June c
Slide 6: Wafi Hill resource table
Wafi Hill Gold Deposit Tonnes Gold Copper Gold Copper equivalent* (Mt) g/t % Moz Kt Moz Golpu 501 0.54 0.95 8.8 4767 30.9 N b Nambonga 40 0 79 0.79 0 22 0.22 10 1.0 86 14 1.4 Wafi 96 1.55 4.8 4.8 Wafi Link 7 6.62 1.4 1.4 Total 644 0.77 0.75 16 4853 38.5 6
Slide 7: Resource characteristics
Resource characteristics – Golpu – large copper gold porphyry h – high hi h grade d – cylindrical shape amenable to block caving – “standard” metallurgy – Wafi – structurally controlled epithermal gold deposit. – high sulphidation system (+oxide) – require more complicated metallurgical recovery – a
Slide 8: Benchmarking deposits endowment
Benchmarking deposits p endowment 1.20 SE Asia Cu-Au systems (bubble size based on gold equivalent endowment) 1.00 Oyu Tolgoi 171 Moz Grasberg 403 Moz 0.80 North Parkes 9 Moz Wafi-Golpu 38 Moz Tampakan Ok Tedi 37 Moz 82 Moz Cu (wt %) 0.60 Frieda River 51 Moz Reko Diq Ridgeway 11 Moz 155 Moz Batu Hij
Slide 9: Mining options
Mining options – Golpu Block Cave – two lifts – shape amenable – access via decline or shaft – Golpu Open Pit – gold cap only – Wafi Small Open Pit – oxidised zone – Wafi Block Caves – single g lift Block – 2 possible caves Cave – link zone defines base Block Cave x2 – Wafi Large Open Pit – access m
Slide 10: Benchmarking deposits: Golpu production
Benchmarking deposits Golpu p production p FOOTPRINT AREA VS PRODUCTION RATE 70 60 El Teniente NML a) Productiion Rate (Mtpa G b Grasberg Ch Chuquicamata i t 50 40 30 DOZ Golpu Potential Cadia East 20 Andina Kucing Liar Golpu Concept Study 10 North Parkes Henderson Palabora Ridgeway 0 0 200,000 400,
Slide 11: Processing options
Processing options Wafi Oxide and Golpu Gold Cap Bullion Oxide Ore Processing Standard gold CIL circuit 8MTPA 1.2g/t Au Grind Ore Stockpile CIL Refractory ore Processing 8MTPA 2.4g/T Grind Goethite Sulphide ore 7.5%S Pyrite Flotation Flotation Stockpile 10g/t li id liquid 73% Au Rec 36.4% S 17.1% wt
Slide 12: Processing options
Processing options Bullion Oxide Ore Processing 8MTPA 1.2g/t Au Grind Ore Stockpile CIL Refractory ore Processing Refractory circuit for Wafi Sulphide – utilises pre-oxidation of Wafi high 8MTPA sulphide ores 2.4g/T 7.5%S Grind Pyrite Flotation Goethite Sulphide ore Flotation Stockpile 10g/t li id l
Slide 13: Processing options
Processing options Bullion Oxide Ore Processing 8MTPA 1.2g/t Au Grind Ore Stockpile CIL Refractory ore Processing 8MTPA 2.4g/T Grind Goethite Sulphide ore 7.5%S Pyrite Flotation Flotation Stockpile 10g/t li id liquid 73% Au Rec 36.4% S 17.1% wt Tailings Refractory ore processing CCD GOLPU COPPER PLA
Slide 14: Infrastructure options
Infrastructure options o-DEMAKWA uon ulf =| © Processing Plant / Mill Options ...|@ TSF Options — Road / Pipeline Options @ Port / Upgrade Options = Exploration Decline @ Waste Dump Options WAFI/GOLPU PROJECT www.harmony.co.za 14
Slide 15: Concept study
Concept study – Concept study draft completed in July 2010. Gate review underway, expect to finalise Sept 2010 – Study has shown technically and financially viable operation possible – Multiple mining, processing and infrastructure options to be studied in pre-feasibility study (PFS) – PFS will test
Slide 16: Permitting
Permitting Determine land ownership Lands Title Commission underway Land access Required for any works, including exploration and early works Community consensus Social licence to operate, capacity building of landowners essential Wardens hearing Allows landowners to voice objections in tenure grant
Slide 17: Possible Wafi Golpu timeline
Possible Wafi Golpu timeline 2010 2011 2012 2013 2014 2015 Concept Study Pre - Feas Feasibility Execution Prod Pre-feasibility Drilling 47,000m 47,000m Exp Dec Access Rd Studies Feasibility Expl Decline Ore Level Drives Trial Pit Studies Review Board Approvals Execution Mining / Construct Production
Slide 18: Early works
Early works Nabonga Creek Creek Ridge Flats al Buvu C Vent R Watut Porta Watut River F W G l C Golpu Caves Golpu Lift 1 Golpu Lift 2 D1 Option Decline from Watut Valley D2 Option Decline from Vent Ridge D3 Option Decline from Vent Ridge and Watut Valley 18
Slide 19: Wafi-Golpu exploration and project update
Wafi-Golpu Exploration p and project p j update p PLAN VIEW – Major mineralised system with MIAPILLI NAMBONGA multiple phases PORPHYRY* – copper – gold 1.0 Moz Au 80 Kt Cu Northern – gold Margin – The system currently contains Western GOLD resources comprising 644Mt: Zone – 16Moz gold SIGNIFICANT Na
Slide 20: Summary
Summary – Wafi Golpu is a world class porphyry gold and copper system – Resource is 644Mt for 16Moz gold and 44.85Mt 85Mt copper (39Moz Au equiv equiv.)) – Exploration potential is high and the Resource is expected to grow – A concept study recommends taking multiple mining and processing options in