Slide 1: Essakane: Unlocking Growth
THE ESSAKANE MINE ESSAKANE: UNLOCKING GROWTH Analysts & Investors Presentation June 12, 2018
Slide 2: Cautionary Statement
Cautionary Statement All information included in this presentation whether in narrative or chart form, including any information as to the Company’s future financial or operating performance, and other statements that express management’s expectations or estimates of future performance, other than s
Slide 3: Agenda
Agenda THE ESSAKANE MINE Vision and Mission 4-5 Health and Safety 6 A Responsible and Attractive Employer 7 Socio-Economic Impact of Essakane Mine 12 Security 23 Essakane Business Strategy 25 Exploration 28 +400,000 oz @ $850/oz Program 40 Growth Initiatives 66 Life-of-Mine 106 LOM Optimistic Scenar
Slide 4: Vision
VISION Create value for all stakeholders through diligent management of the mineral resource and transfer of skills and know-how to host communities. We contribute to developing a real legacy for present and future generations all while minimizing our impact. THE ESSAKANE MINE 4
Slide 5: Mission
MISSION Seek a robust business model that can withstand gold cycles by: Implementing a lean cost structure; Preserving capital through disciplined management; And exploiting improvement opportunities all while minimizing our risks. We make astute business decisions guided by the highest sustai
Slide 6: Improving Trend in Health and Safety Metrics
Improving Trend in Health and Safety Metrics THE ESSAKANE MINE 6
Slide 7: Essakane, a Responsible and Attractive Employer
ESSAKANE, A RESPONSIBLE AND ATTRACTIVE EMPLOYER THE ESSAKANE MINE
Slide 8: Our Employees, Our First Resource
Our Employees, Our First Resource The Essakane mine is one of the most important employers in the country: 2,287 direct jobs By the end of 2017 96% were national employees, of which 37% were from the Sahel region and about 13% living within 15 km of the mine site; 257 women work at Essakane (11% of
Slide 9: Improving The Employability Of Young People In Surrounding Villages
Improving The Employability Of Young People In Surrounding Villages Youth Training Program in the Surrounding Locations of the Mine • Carpentry • Welding • Mechanical • Electricity Internships for the benefit of young people from surrounding villages Immersion internship THE ESSAKANE MINE 9
Slide 10: Employee Development Program
Employee Development Program TECHNICAL TRAINING NUMBER OF TRAININGS 1555 726 833 399 2014 2015 2016 2017 YEARS LEADERSHIP AND MANAGEMENT NUMBER OF TRAININGS 322 211 75 88 2014 2015 2016 2017 YEARS THE ESSAKANE MINE 10
Slide 11: Employee Recognition Program
Employee Recognition Program The purpose of this program is to celebrate deserving employees THE ESSAKANE MINE 11
Slide 12: Socio-Economic Impact of Essakane Mine
SOCIO-ECONOMIC IMPACT OF ESSAKANE MINE THE ESSAKANE MINE
Slide 13: Essakane: A Major Contributor to Burkina Faso's Socio-Economic Development
Essakane: A Major Contributor to Burkina Faso’s Socio- Economic Development Essakane Mine Contribution National Production 2017: 1,4 million ounces (Au) Direct Jobs (Dec. 2017) 432,000 ounces (Au), about 30% of • 2,288 jobs (96% Burkinabè) 80 Expatriates (4%) the national production Taxes and fees
Slide 14: Ongoing Dialogue and Collaboration with All Stakeholders
Ongoing Dialogue and Collaboration with All Stakeholders Formal discussion committees (CCME) Information centers Formal complaints registration procedures Frequent, formal and informal Meetings with the communities THE ESSAKANE MINE 14
Slide 15: Our Approach to Development
Our Approach to Development Ensure better living conditions for the communities in which we operate, during and after the mine closes Take advantage of our strong relationships and leave behind a solid investment We will continue to: Improve community living conditions through our different pr
Slide 16: Clean Water Access
Clean Water Access • Completed Projects: • 78 human powered water pumps • 28 water fountains • 6 drilling wells for pastures • 8 solar powered drilling wells for the gardens • 23 communities affected: • Results : Clean Water Access • 99.1% (2016, INSUCO) • 92.6% (2012, DREP) • 54.5% (2007) THE ESSAK
Slide 17: Education
Education • Primary schools • 8 schools and dormitories • Power grid to Falagountou’s schools • School groves • Secondary education • Boarding school building • Assistance in managing the boarding school (Supplies, tables, chairs, computers) THE ESSAKANE MINE 17
Slide 18: University Scholarships For Top High School Graduates
University Scholarships For Top High School Graduates • Two international scholarships worth $25k each, covering tuition fees were awarded to the best graduates of Burkina Faso and Sahel for the 2016-2017 school year • Two women were the winners in 2017. They are registered at Polytechnic Montreal.
Slide 19: Health
Health • Health equipment for clinics • Renovation of clinics • Essakane site hygiene program • HIV/AIDS awareness and screening program THE ESSAKANE MINE 19
Slide 20: Biodiversity
Biodiversity • 1 nursery in Marganta with 80,510 local trees grown between 2011 and 2017 • Reforestation: restoration of the biodiversity and food production for the population • Results: more than 200,000 trees with a survival rate of 95% in 7 village forests (92 ha of gated protected forest with a
Slide 21: Biodiversity Rehabilitation
Biodiversity Rehabilitation Progressive rehabilitation plan • Hydraulic seeding • Mixture of seeds and organic fertilizers, root development stimulator, organo-mineral fertilizer, fixing additive THE ESSAKANE MINE 21
Slide 22: Recognitions and Certifications
Recognitions and Certifications • CSR Recognition in environment and human rights granted by Burkina Faso civil society • Double certification in ISO 14001 V2004 and OHSAS 18001 V2007 • 2015 TSM Leadership Recognition • 2018 TSM Recognition THE ESSAKANE MINE 22
Slide 23: Security
Security THE ESSAKANE MINE
Slide 24: Security Strategy
Security Strategy Close cooperation with national defense forces Military deployment around the mine and along the border areas Police forces based next to site Elite counter-terrorism gendarmes recently deployed Internal mitigation Best protection is the relationship with communities around
Slide 25: Essakane Business Strategy
ESSAKANE BUSINESS STRATEGY THE ESSAKANE MINE 25
Slide 26: Focus on NAV Optimization While Unlocking Growth
Focus on NAV Optimization While Unlocking Growth Regional Exploration 2016: Launch of the +400,000oz* at $850/oz program (Target) • Aiming at reducing cost profile closer to the industry median Growth Initiatives • Heap Leach • Falagountou East & West • Essakane Phase 6 & 7 • Essakane North &
Slide 27: A Robust LOM With Considerable Growth Potential
A Robust LOM With Considerable Growth Potential 500 koz 400 koz Gold Production OPERATIONAL GROWTH GEOLOGICAL EXCELLENCE PROJECTS DEVELOPMENT 400 k @ $850 Heap Leach Regional Prospects 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 THE ESSAKANE MINE 27
Slide 28: Essakane Exploration Overview
ESSAKANE EXPLORATION OVERVIEW M. Pratas Exploration Manager Z. Sanfo West Africa Exploration Manager THE ESSAKANE MINE 28
Slide 29: Country Geology and Project Location
Essakane Country Geology and Project Location Project Birimian Greenstone Belts › Gold major metallotect in West Africa › 22% of Burkina Faso surface area Two major Shear Zones Hounde › Crustal-scale structure Belt › First order control on gold mineralization Project Exploration Activities in BF › N
Slide 30: Essakane District – Exploration permits
Essakane District – Exploration permits Dembam 2 7 exploration permits (1,093.19 Km²) Takabangou around the Mine Lease, valid to November 2018 2017 activities concentrated around 15 to 20 Km Tin-Taradat from Essakane Mine pit Gossey 2 NIGER Tin-Zoubaratan Exploration work developed on the Bom
Slide 31: Tin-Taradat Prospect
Tin-Taradat Prospect Objective: Explore Markoye shear zone and check continuity of Gossey. Same structural setting as EMZ (Antiforme hinge) First Phase (2017) Mapping, rock sampling and drill test mineralization particularly on hinge of anticline 36 RC holes totaling: 2,980 m. Mineralized intersecti
Slide 32: Gossey Prospect
Gossey Prospect Objective: Delineate M&I resources to add to the Essakane LOM. Complete a maiden resource estimate by Q4. First Phase (2017) Drill spacing : 50m x 50m Total meters: 15,358 meters Budget: $1.3 Million US Second Phase (2018) Infill RC drilling program at grid spacing 50m x 25m Budget:
Slide 33: Gossey: Sample Section
Gossey: Sample Section 2017 2013 2018 2017 2013 Au-ppm Deep Saprolite ore often greater than 50 m (main zone); Grade around 1g/t with local wide and higher grade zones. THE ESSAKANE MINE 33
Slide 34: Korizena Trend Prospect
Korizena Trend Prospect Gossey Objective: Check southern continuity with Gossey. Follow up on previous mineralized drill intersections First Phase (2017) Mapping, rock sampling and wide space drilling 41 RC holes totaling: 3,277 m Deep Saprolite mineralization (often > 50 m); Wide and higher grade z
Slide 35: Tassiri Prospect
Tassiri Prospect ± 6 Km SW of EMZ Activities conducted Rock sampling Trenching Aircore drilling RC drilling Geological Target Potential: 0.3 - 0.5Moz grading 0.8 to 1.2 g/t Au Handover to the mine for resource evaluation THE ESSAKANE MINE 35
Slide 36: Gourara Prospect
Gourara Prospect Mine lease 5 Km south of EMZ along strike Alkoma 2 Permit Mineralisation Mainly hosted by sedimentary rocks. Possibility of Oxide mineralisation Work conducted Rock sampling Trenching AC, RC and DDH drilling 8 RC holes totaling 802m 56 AC holes totaling 2,800m Prospect under re-eval
Slide 37: Sokadie Prospect
Sokadie Prospect Mineralisation Sheared Diorite Work conducted Rock sampling RC and DDH drilling Exploration Target Potential: 150 - 200 Koz at 1.0 to 1.4 g/t Au Handover to the Mine for resource evaluation THE ESSAKANE MINE 37
Slide 38: Potential Within Existing Permits
Potential Within Existing Permits 2018 New Areas Obvious targets have been drilled and prioritize for follow up Continuous re-assessment of historic data New areas are under evaluation. Gossey EMZ FALA EMZ 0 2 4 km 7-Km THE ESSAKANE MINE 38
Slide 39: Why is Burkina Faso Attractive for Exploration
Why is Burkina Faso Attractive for Exploration Geology Context Markoye shear is an Emerging Belt Essakane, Bombore, Kiaka, Tanlouka and Taparko Markoye Fault Hounde belt growing region with new 16Moz discoveries Hounde Belt Yaramoko, Siou, Tankoro 14Moz Low cost acquisition by direct application. 20
Slide 40: +400,000 oz @ $850/oz Program
+400,000 OZ @ $850/OZ PROGRAM STARTED IN 2016 A Lean Cost Structure Through Disciplined Management and Continuous Improvement THE ESSAKANE MINE 40
Slide 41: "+400,000 oz at $850/oz" Program
“+400 000 oz at $850/oz” Program Quarterly production & +400koz program results presented to employees by the GM Kaizen and Closed Projects Newsletter, MBA, Townhall meetings are celebrated Communication Achievement of green belt certifications was celebrated for 30 employees in 2017/2018 Celebratio
Slide 42: Mill
Mill July 16th 2010 : Mill start up Line A (the beginning of commercial production) August to December 2010: Mill expansion scoping study (5.4 to 10.8 MTPA hard rock) January to October 2011: Mill expansion feasibility study (5.4 to 10.8MTPA hard rock or 13 MTPA 70% hard) February 2014 : Start up of
Slide 43: Process Flowsheet
Process Flowsheet Unloading station Hard rock Crushed Ore Stockpile Pebble Cyclone crusher Cluster Line A (375kW) Gravity (8x) Primary crusher Screens 375 kW Gravity Concentrator SAG Apron 30’ x 14’ Apron Feeders 7000 kW Feeder Ball Mill Thickener Crushed Ore Stockpile 20’ x 33.5’ To ILR To Gold Roo
Slide 44: Grinding Circuit Optimisation
Grinding Circuit Optimisation In 2015 and 2016, a program to improve grinding performance was carried out The objective was to identify solutions to increase tonnage throughput over 650 tph/line Crushing and grinding circuit audit (survey) were carried out with consultants while processing 100% ha
Slide 45: Throughput (t/h)
Grinding Circuit Optimisation Mill Throughput Vs % Hard Rock 2,000 100% 1,800 90% 1,600 80% Throughput (t/h) 1,400 70% 1,200 60% % Hard Rock 1,000 50% 800 40% 600 30% 400 20% 200 10% 0 0% tph % Hard Rock Linear (tph) Linear (% Hard Rock) Mill Throughput vs % Hard Rock 86% 86% 1,800 66% 73% 100% Thro
Slide 46: Carbon Fines Recovery and Treatment
Carbon Fines Recovery and Treatment Challenges Gold in carbon fines was not recovered (13,000 ounces accumulated on-site) Generated carbon was stocked on site Shipping out of the country is not an option (Burkina Faso regulation) No infrastructure is available to treat the carbon fines locally.
Slide 47: Carbon Fines Recovery and Treatment
Carbon Fines Recovery and Treatment Process modifications Carbon collection circuit was modified A fluidized bed incinerator was installed A small leaching tank was installed to recover gold from carbon ashes Commissioned June 2016 Results ≈ 50% mass reduction due to the carbon humidity and
Slide 48: Intensive Leach Reactor (ILR)
Intensive Leach Reactor (ILR) Project benefits Increased gold recovery from gravity concentrates from 75-80% (shaking table) to 97-98%. Global recovery increased by minimum 0.5% Improved Health and Safety by eliminating the emanation of Arsenic gas due to the calcination of gravity table concent
Slide 49: Intensive Leach Reactor (ILR)
Intensive Leach Reactor (ILR) Commissioned July 2016 Gold recovery from gravity concentrates 75-80% using shaking tables 99.3% on average with ILR - systematically above 98.5% Arsenic content in gold bars Well below the limit of 0.5% when ILR is used THE ESSAKANE MINE 49
Slide 50: Oxygen Addition to CIL
Oxygen Addition to CIL Expected process benefits Recovery increase by 0.5% Potential drop in cyanide addition by 10% Reduce preg-robbing negative effect 𝟏 𝐑 𝝉 = 𝑹∞ 𝟏 − Potential of throughput increase with faster gold leaching 𝟏 + 𝒌𝝉 kinetics k (h-1) R∞ Base Case 1,61 84,5% PSA +…
Slide 51: Gravity Circuit Optimisation
Gravity Circuit Optimisation THE ESSAKANE MINE 51
Slide 52: Evolution of Plant Performance
Evolution of Plant Performance THE ESSAKANE MINE 52
Slide 53: Effect of Graphitic Carbon on Mill Residue Grade
Effect of Graphitic Carbon on Mill Residue Grade PRS vs. C(g) A preg-robbing strength (PRS) correlation with graphitic 40 carbon (Cg) was developed 35 The correlation is good over the range tested, therefore 30 useable for Geometallurgy. 25 PRS A carbon analyser was purchased. 20 15 Following th
Slide 54: High Level Trade-off Based on Variability of Sample
High Level Trade-off Based on Variability of Sample The performance of 5 alternative flowsheets was compared to the Essakane process Option 0 - Actual Essakane : Cyanide water added to the grinding circuit, 1 leach tank per line and CIL Option 1 - Essakane with bypass : No cyanide added to the gri
Slide 55: Management of Activated Carbon
Management of Activated Carbon CIL Liquid Losses 0,03 Addition of fresh carbon was reduced by 75% in 0,025 August and 100% in October 0,02 Reduction of Au (g/t) Carbon Inventory Elutions at H8 started on October 1st 0,015 Lower eluted carbon grade 0,01 CIL liquid losses stay low 0,005 Elutions
Slide 56: Management of Activated Carbon
Management of Activated Carbon 26,000 CIL gold inventory 24,000 22,000 1,766 2,557 20,000 391 1,943 2,715 2,957 1,446 18,000 993 1,550 1,057 5,867 16,000 200 14,000 Ounces 2,243 12,000 20,983 2,046 18,116 10,000 8,000 6,000 9,606 4,000 2,000 0 THE ESSAKANE MINE 56
Slide 57: Solar Plant Project
Solar Plant Project PPA type: Take or Pay 15 MWp of solar power 70 acres of land 1 Substation (PVCS) 3 inverters/transformers 128,800 solar panels 27MWh per year Benefits: Solar will account for 8-9% of total power generated Fuel savings: 6M liters per year CO2 avoided: 18,500T p
Slide 58: PV Plant Construction
PV Plant Construction Mobilization and earthwork: Start date: July 2017 Structure : Post installation Start date: Nov 2017 End date: March 2018 Civil : Trenches & PVCS Start date: Nov 2017 End date: March 2018 Electrical: Start date: Jan 2018 End date: Apr 2018 THE ESSAKANE MINE 58
Slide 59: Inauguration
Inauguration March 16th 2018 The PV plant was inaugurated in the presence of the CEO of IAMGOLD, the President of Burkina Faso and government officials More than 1,000 people attended the ceremony THE ESSAKANE MINE 59
Slide 60: Continuous Improvement - Mill
Continuous Improvement - Mill • Project – Increase Gravity Circuit Performance; • Project – Carbon Management Optimization; • Understanding The Effect of Graphite: Effect of Graphitic Carbon on Mill Residues Grade; • Effect of Water Quality (CN Concentration) on Au Tails; • Water Treatment Solutions
Slide 61: Success Story: Gear Box Change in 7 h
Success Story: Gear Box Change in 7 h THE ESSAKANE MINE 61
Slide 62: Mill Production and Availability
Mill Production and Availability 20 100% 93.9% 19 92.0% 91.6% 91.4% 90.3% 89.9% 18 84.9% 90% 17 16 75.1% 80% 15 13.9 14 14.79 70% 13 12.33 11.9 12.0 12 11.93 11.7 60% 10.8 10.6 11 11.65 Unit costs ($/t) 0.7 Tonnes (Mt) 10 10.73 1.1 10.76 50% 9.88 9 9.66 8.0 2.9 6.3 8 40% Availability (%) 7.7 11.9 8.
Slide 63: Mill Production and Recovery
Mill Production and Recovery 450 100% 426 432 419 95.8% 95.4% 90% 400 91.9% 91.7% 90.7% 91.7% 375 89.0% 90.3% 369 350 80% 350 70% 300 Gold production (kOz) 277 Mill Recovery (%) 60% 250 50% 200 40% 150 136 30% 100 20% 50 10% 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 Mill production (kOz) 136 375
Slide 64: Operating Cost per Tonne Milled or Mined
Line B Operating Cost Actual Start up 9 8 7 Mill 6 $/tn milled or mined 5 Power 4 G&A 3 Mine 2 1 - 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A Mining Cost/tn mined 1.5 2.3 2.4 2.5 2.6 2.4 2.6 2.8 Milling Cost/tn milled 6.4 6.5 5.9 7.2 8.6 7.5 7.7 6.9 Power Cost/tn milled 3.3 3.8 4.0 4.7 6.2 4.9
Slide 65: Keeping The Focus On Cost!
Keeping The Focus On Cost! ESSAKANE - AISC/oz sold 140,000 1,250 Falagountou West 120,000 1,200 1,150 100,000 Ounces sold AISC/oz 1,100 80,000 1,050 60,000 1,000 40,000 950 20,000 900 0 850 Ounces sold AISC/oz cumulated AISC/oz trend THE ESSAKANE MINE 65
Slide 66: Growth Initiatives
GROWTH INITIATIVES THE ESSAKANE MINE 66
Slide 67: Falagountou Project
Falagountou Project THE ESSAKANE MINE 67
Slide 68: Essakane Site Layout
Essakane Site Layout Essakane Site Essakane Pit Camp Plant Falagountou Pit Airport TSF THE ESSAKANE MINE 68
Slide 69: Falagountou Pits (East & West)
Falagountou Pits (East & West) Satellite orebodies with attractive grades • Located about 11km East of Essakane • 493Koz reserves @1.46g/t • High grade saprolite improves mill recovery and hard rock grinding • Extending our Life Of Mine Comments on project delivery • Delivered ahead of schedule
Slide 70: Heap Leach – PFS Study
Heap Leach – PFS Study THE ESSAKANE MINE 70
Slide 71: Heap Leaching at Essakane
Heap Leaching at Essakane Pre-feasibility Study Highlights • Successful infill program with higher grades than anticipated in several areas; • Extend LOM by 3 years (2026); • Average annual production increased by 16% to 480,000 ounces; • Peak annual production exceeding 500,000 ounces; • Unlock a
Slide 72: Geological Definition
Geological Definition Drilling campaign A total of 25,207 meters (both RC and DD) were drilled. A representative selection of 10 composite samples for HL ore for all ore type were collected and shipped to KCA lab for testing. Blockmodel for the mining plan was issued early March 2018 High gr
Slide 73: Essakane 2017-2018 Drilling
Essakane 2017-2018 Drilling Results Encouraging 2017-18 In-pit Drilling results • Deep & Heap Leach drilling campaigns • Mineral Resources upgraded • Mineral resources M&I: 5.1Moz and 0.6Moz as inferred • Improvement of the geological and structural model • Targeting area to improve confidence for
Slide 74: Essakane 2017-2018 Drilling
Essakane 2017-2018 Drilling Phase 7 Summary Updated Drilling program • Adjusted final drilling program stand at 11,000m of DD and 15,000m of RC including original 11,000m already budgeted. Potential resources to be upgraded inside the EMZ Phase 6 & 7 (COG:0.3g/t) The Possible Extensions of the
Slide 75: 2018 Planned Holes over Essakane Mining Phase 6&7
2018 Planned Holes over Essakane Mining Phase 6&7 Objectives: Drilling campaign has the potential to increase mineral resources Explore down-dip extension of the mineralization below the blue sky pit shell Convert more inferred into indicated resources and confirm better grades under actual pi
Slide 76: Mineral Resources
Mineral Resources Mineral Resources (100% Basis) – June 5, 2018 Grade Contained Classification Tonnes (000) (g/t Au) Ounces (000) Indicated 167,067 0.95 5,101 Inferred 20,994 0.88 595 1. CIM Definition Standards were followed for classification of Mineral Resources. 2. Mineral Resources reported at
Slide 77: Mineral Resources (MI&I) Waterfall
Mineral Resources(MI&I) Waterfall December 31st 2017 to June 5th 2018 À UPDATER AVEC LES HYPTOTHÈSES DE RONDE 3 Incluant HEAP LEACH THE ESSAKANE MINE 77
Slide 78: Cut-Off Grade Assumptions
Cut-Off Grade Assumptions April 2018 LOM Planning Assumptions LOM Gold Price ($US/oz.) 1,200 Long term oil price ($US/barrel) 60.00 Euro exchange rate (EURO/$US) 1.15 CFA exchange rate (CFA/$US) 570 Site diesel price ($US/liter) 1.10 Site HFO price ($US/liter) 0.68 Transport & Refining cost ($US/oz.
Slide 79: Cut-Off Grade Chronology
Cut-Off Grade Chronology Chronology g/t LOM Budget Reserves LOM LOM LOM Material Type 2017 2018 2018 2018R1 2018R2 2018R3 EMZ_SAP 0.41 0.41 0.38 0.38 0.38 0.38 EMZ_TRANS 0.53 0.53 0.48 0.48 0.49 0.48 EMZ_ROCK (CIL) 0.61 0.61 0.55 0.55 0.56 0.55 EMZ_ROCK (HL) 0.30 0.30 0.30 FALA_SAP 0.44 0.44 0.41 0.
Slide 80: Pit Optimization
Pit Optimization Reserve Dec 2017 Economic assumptions Cut-off 0.55g/t Gold price : 1200$/oz CIL recovery : 92% (Fresh) Heap Leach recovery : 55% Reserve Dec 2016 Mining cost : Cut-off 0.61g/t Heap Leach • Ore : 2.75$/t (Fresh) Final pit • Waste : 2.55$/t (Fresh) • Incr. Bench cost 0.0031$/t
Slide 81: EMZ Final Pits
EMZ Final Pits LOM 2018-R3 1200 $/Oz Phase 6 Phase 7 81
Slide 82: EMZ Final Pits
EMZ Final Pits Resources LOM 2018-R3 1200 $/Oz Limits 160 Zone Ore Waste Total Mt AU Koz CONT Mt Mt SR EMZ PH02 5.9 1.18 225 2.8 8.7 0.47 EMZ PH03 27.6 0.92 818 36.4 64.0 1.32 EMZ PH04 31.8 0.89 915 60.7 92.5 1.91 EMZ PH05 15.3 0.97 478 43.9 59.2 2.87 EMZ PH06 20.8 0.70 466 48.5 69.4 2.33 EMZ PH07 2
Slide 83: Falagountou Final Pits
Zone Ore Waste Total Mt AU Koz CONT Mt Mt SR Falagountou Final Pits Fala West PH02 Fala West PH03 1.7 4.0 1.47 1.56 81 201 3.7 21.6 5.4 25.6 2.12 5.37 LOM2018-R3 1200 $/Oz Fala West Total 5.7 1.53 282 25.3 31.0 4.40 Fala East Total 4.6 1.28 190 26.2 30.8 5.68 Total Fala 10.4 1.42 472 51.5 61.8 4.97
Slide 84: Mineral Reserve
Mineral Reserve Mineral Reserve (100% Basis) – June 5, 2018 Grade Contained Process Classification Tonnes (000) (g/t Au) Ounces (000) Proven - - - CIL Probable 102,588 1.17 3,859 Proven - - - Heap Leach Probable 61,866 0.43 845 Total 164,454 0.89 4,704 1. Reserves estimated assuming open pit mining
Slide 85: Mineral Reserve Waterfall
Mineral Reserve Waterfall 85
Slide 86: Mine Design
Mine Design Results Ore: 165M tonnes Waste : 343M tonnes SR: 2.34 Mining rate : 70MTPA Fleet additional equipment • 7x Truck Cat 785 • 1x Shovel RH120 • 2x Loader 993 • 2x Drill Pit vipers • Auxiliary :2x Dozer (D10), 2x small shovel and 1x Water truck THE ESSAKANE MINE 86
Slide 87: Metallurgical Testing
Metallurgical Testing Amount of Average Average Average Number of rock type Rec. % Rec. % Rec. % columns tested 19 mm 8 mm HPGR Scoping Study 4 2 58% 65% - PFS 21 10 - 62% 55% THE ESSAKANE MINE 87
Slide 88: Heap Leach Trade-off Study Recommendation
Heap Leach Trade-off Study Recommendation Throughput at 10MTPA • Maximize NAV and gold ounces Mining rate at 70MTPA • Minimum mining rate to achieve 10MTPA heap leach Recommended to go with HPGR • Crushing circuit is simplified and easier to operate • Better recovery expected with agglomeratio
Slide 89: Engineering Main Deliverables
Engineering Main Deliverables Key PFS deliverables • General arrangements • Single line diagram • Process flow diagram • Equipment datasheet • Material take-off (MTO) • Equipment list • Load list • Technical reports and memos • NI 43-101 technical report (in progress) THE ESSAKANE MINE 89
Slide 90: Block Flow Diagram – Heap Leach
Block Flow Diagram – Heap Leach CAT 785 Haul Truck PRYMARY CRUSHER VIBRATING SCREEN SECONDARY CRUSHER STOCKPILE LEACH PAD RADIAL STACKING CONVEYOR HPGR GRASSHOPPER FINE ORE CONVEYORS BIN NEW ORE UNDER IRRIGATION LEACHED LOADED CARBON ORE TO CIL PREGNANT POND TO BARREN TANK FRESH AND THE ESSAKANE MIN
Slide 91: Block Flow Diagram - CIL Strip Circuit & Refining Upgrade
Block Flow Diagram - CIL Strip Circuit & Refining Upgrade CIL Loaded Carbon Legend HL Carbon Dewatering Existing Equipment Screen New Equipment HL Loaded Carbon HL Loaded Replaced Equipment Carbon Storage HL Return Tank Carbon Loaded Carbon Tank Screen CIL Electrowinning Cells (5) Gold Room Electrow
Slide 92: Heap Leach Pad & Ponds – Initial Stage
Heap Leach Pad & Ponds – Initial Stage THE ESSAKANE MINE 92
Slide 93: Heap Leach Pad & Ponds – Final Stage
Heap Leach Pad & Ponds – Final Stage THE ESSAKANE MINE 93
Slide 94: Crushing Area General Arrangement
Crushing Area General Arrangement THE ESSAKANE MINE 94
Slide 95: CIC Plant General Arrangement
CIC Plant General Arrangement THE ESSAKANE MINE 95
Slide 96: Infrastructure
Infrastructure Additional infrastructures included in the project Camp increase for construction management personnel Access road and haul road modification Additional Wartsila engine TSF Additional capacity THE ESSAKANE MINE 96
Slide 97: Environment - Baseline Survey Scope of Work
Environment - Baseline Survey Scope of Work Scope of work Land survey Hydrology and hydrogeology Soil and noise survey Dwelling survey Fauna and flora mapping Archeological survey Socio economical survey Public consultation THE ESSAKANE MINE 97
Slide 98: Permitting Next Steps
Permitting Next Steps Next steps Submit the term of reference to BUNEE for final approval Submit the permit application including ESIA and RAP Government review analysis of documentation Permit approval (Q1 2019) THE ESSAKANE MINE 98
Slide 99: Heap Leach Annual Operating Cost
Heap Leach Annual Operating Cost Area Costs, US$ US$ per t Area 360 - Heap Leach Process Area General $1,195,000 $0.120 Area 301 - Primary Crushing $1,861,000 $0.186 Area 301 - Secondary Crushing $3,208,000 $0.321 Area 301 - Secondary Stockpile and Reclaim $276,000 $0.028 Area 301 - Tertiary Crushin
Slide 100: Capital Cost – Direct Cost
Capital Cost – Direct Cost Area Costs, US$ Infrastructure $1.7M Power capacity increase $7.1M Crushing and stockpiling $37.6M Current plant upgrade (CIL, Elution, Regen, electrowinning) $2.0M Water storage and process water $1.0M Heap Leach General $2.8M Heap Leach conveying and stacking $19.4M Heap
Slide 101: Capital Cost – Summary
Capital Cost – Summary Area Costs, US$ Direct Cost $98.0M Indirect Cost $34.8M Contingency $19.9M TOTAL COST $152.7M THE ESSAKANE MINE 101
Slide 102: Project Execution
Project Execution Methodology Project will be executed by IAMGOLD (no EPCM contractor) Engineering will be contracted out to qualified firms Construction will be contracted out to local or regional contractors Similar execution model as used for 2013 Expansion. On schedule, 10% under budget
Slide 103: Project Schedule
Project Schedule THE ESSAKANE MINE 103
Slide 104: Feasibility Study
Feasibility Study Scope Run column testing to validate agglomeration Confirm the crushing plant location Perform geotechnical investigation for the project infrastructure Confirm process flowsheet Prepare equipment datasheet Firm quotation for major equipment & start vendor engineering
Slide 105: Alternatives
Alternatives Lower Capital Development Option • Reduces CIL cutoff grade and allows access to phase 6 and 7 • To partially or fully replace expected Heap Leach payable ounces Increase CIL Capacity & Recovery • Debottlenecking study • Grinding options review • Laboratory test program to validate re
Slide 106: Life of Mine
LIFE OF MINE $1,200/Oz Gold Price THE ESSAKANE MINE 106
Slide 107: Life of Mine Production Schedule
Life of Mine Production Schedule LOM Gold Production (‘000 ounces) 600 501 467 481 488 471 500 471 429 400 433 434 413 432 274 300 311 200 100 47 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 Life of Mine (Years) LOM 2016 NEW LOM WITH HL THE ESSAKANE MINE 107
Slide 108: Operating Cost LOM and Sustaining Capex
Operating Cost LOM and Sustaining Capex 9 8 7 Mill 6 Power $/tn milled or mined 5 4 Mine 3 HL 2 G&A 1 - 2018L 2019L 2020L 2021L 2022L 2023L 2024L 2025L 2026L Mining Cost/tn mined 2.9 2.7 2.6 2.6 2.7 2.6 2.9 3.5 3.5 Milling Cost/tn milled 7.9 7.2 7.7 7.6 7.6 7.6 8.0 7.6 7.1 G&A Cost/tn milled 4.0 3.6
Slide 109: Essakane – Financial Metrics
Essakane – Financial Metrics Value Accretive Heap Leach Project • Minimum 15% yield threshold met • Feasibility Study to optimize mining plan and costs; Current drilling campaign objective to increase indicated resources from inferred • Extend LOM by 3 years (2026); Room to grow • Average annual p
Slide 110: Future Works
Future Works Completion of a Heap Leach feasibility study including engineering, construction early works, long lead items and a final cost estimate. A Low Capex option, consisting of different mill improvements, will also be studied. Study: • Further resource development drilling at Essakane
Slide 111: LOM Optimistic Scenario
LOM OPTIMISTIC SCENARIO $1,400/Oz Gold Price & Blue Sky THE ESSAKANE MINE 111
Slide 112: EMZ Final Pits: Blue Sky
EMZ Final Pits: Blue Sky 1400 $/Oz. 215 -70 -75 265 125 45 145 255 112
Slide 113: Gossey
Gossey N 280 220 260 Gossey North 160 280 225 215 250 155 215 Gossey South 280 280 280 113
Slide 114: Life of Mine Production Schedule
Life of Mine Production Schedule LOM Gold Production (‘000 ounces) 600 500 400 300 200 100 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Life of Mine (Years) LOM 2016 NEW LOM WITH HL HEAP LEACH 1400 + Gossey THE ESSAKANE MINE 114
Slide 115: Why Invest in Burkina?
WHY INVEST IN BURKINA? THE ESSAKANE MINE
Slide 116: Mining Sector In Burkina - Key Figures
Mining Sector In Burkina- Key Figures Prolific geology, one of the fastest growing mining jurisdiction in West Africa The industrial activity has experienced an appreciable growth rate of 10.5% in 2017, essentially driven by the mining sector Industrial mining production reached 45.8 tonnes of
Slide 117: Essakane – Unlocking Growth
Essakane – Unlocking Growth Act today to go beyond! A World Class Operation • Leader in Health and Safety • Responsible and Employer of Choice • Focus on Cost Reduction • Solid Gold Producer Long Life-of-Mine • Actual mining plan until 2026 • Prolific geological region to potentially extend oper
Slide 118: The Essakane gold mine - A world class operation
The Essakane gold mine- A world class operation in a country of opportunities for the mining sector THE ESSAKANE MINE 118
Slide 119: Technical Information and Qualified Person/Quality Control Notes
Technical Information and Qualified Person/Quality Control Notes The mineral resource estimates contained in this presentation have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The “Qualified Person” responsible for the super
Slide 120: Thank you
Thank you