Slide 1: Tropicana Analyst & Investor Visit
For personal use only TROPICANA 5 AUGUST 2018 Analyst & Investor Visit 1
Slide 2: AngloGold Ashanti Disclaimer
ANGLOGOLD ASHANTI DISCLAIMER For personal use only Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, total cash co
Slide 3: Independence Group NL Disclaimer
INDEPENDENCE GROUP NL DISCLAIMER • This presentation has been prepared by Independence Group NL (“IGO”) (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe for or purchase any securities in IGO or as an inducement to make an offer or invitation with respect to th
Slide 4: Overview
OVERVIEW For personal use only Location: 330 km ENE of Kalgoorlie in WA Ownership: AngloGold Ashanti Australia Ltd (70% and manager), Independence Group NL (30%) Mining: Conventional open cut Processing: Crushing, High Pressure Grinding, Ball Mill, CIL Ore Reserve (100%)*: 64.9Mt grading 1.89 g/t fo
Slide 5: Current Performance
For personal use only Current Performance Mining & Processing Optimisation Boston Shaker Underground Exploration 5
Slide 6: Delivering to Promise
DELIVERING TO PROMISE For personal use only • Exceeded Feasibility Study parameters • Consistently achieved or exceeded production and cost guidance • 2017/18 production of 467,000oz better than mid point of guidance • June 18 quarter production of 114,300oz • On track to deliver 478,000oz – 492,000
Slide 7: Mining Operational Excellence
MINING OPERATIONAL EXCELLENCE Embedding a cost-focused culture… For personal use only • Backfill remains a key strategy • Rehabilitation integration • 600t shovel implemented November 2017 • Lightweight tray trials • Mobile crib huts Rehabilitation • Focus towards a sustained lower unit cost Backfil
Slide 8: Mining Optimisation
MINING OPTIMISATION Material movement has remained consistent utilising the same fleet… For personal use only 6.00 110 100 BP2019 optimisation 90 5.00 80 Mined tonnes (Mwmt) Mining cost (A$/wmt) 70 4.00 60 50 3.00 40 30 2.00 20 10 1.00 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Tonnes (wmt) Unit
Slide 9: Mine-to-Mill Reconciliation
MINE-TO-MILL RECONCILIATION Mine-to-mill reconciliation confirms... For personal use only Mine call factor – mine delivered vs plant accounted head grade 20% 10% % Difference 0% -10% -20% Feb-17 Nov-17 Dec-17 Feb-18 May-17 Jul-17 Aug-17 Sep-17 May-18 Oct-17 Apr-17 Apr-18 Jan-17 Mar-17 Jun-17 Jan-18
Slide 10: Reliability Improvement – Mill Runtime (%)
RELIABILITY IMPROVEMENT – MILL RUNTIME (%) Continuous reliability improvements… For personal use only 6 weeks Shutdown interval 17 weeks 102 100 99.7 99.8 98 96.9% 97.12% 96.0% OE 96 95.0% BP2018 94 BP2017 92.7% 92 91.4% 89.9% % 90 88 86 84 82 80 78 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 11: Maintenance ($A/T Milled)
MAINTENANCE ($A/T MILLED) Maintenance and wear life improvements… For personal use only 10 -31% 8.0 7.5 9 7.0 6.5 8 6.0 5.5 7 A$/tonnes milled 5.0 Million tonnes 6 4.5 4.0 5 3.5 3.0 4 2.5 2.0 3 1.5 2 1.0 0.5 1 0 2013 2014 2015 2016 2017 2018F Tonnes milled Maintenance cost per tonne milled …leading
Slide 12: Mill Throughput Rate
MILL THROUGHPUT RATE Sustainable increases in mill throughput rate… For personal use only 903t/hr 931t/hr 947 Highlights 950 934 934 920 925 923 913 925 • Higher rates Q1 and Q2 899 895 901 898 900 • Mill throughput year to date: • 931t/op.h (actual) Milling rate t/op.hr 850 • 890t/op.h (budget) 800
Slide 13: Recovery
RECOVERY Projects deliver improved recovery at increased throughput rates… For personal use only 100 Highlights 87.5 88.3 88.1 88.9 88.2 88.7 88.8 88.0 87.9 89.5 88.9 88.7 • Recovery levels are stable with 90 upside opportunity 80 70 • Orebody and recovery models have behaved as expected Recovery (%
Slide 14: Processing/Maintenance Costs
PROCESSING/MAINTENANCE COSTS Productivity and reliability improvements… For personal use only 26 -24% 8.0 24 7.5 7.0 22 6.5 20 6.0 18 5.5 Million tonnes A$/tonnes milled 16 5.0 4.5 14 4.0 12 3.5 10 3.0 8 2.5 2.0 6 1.5 4 1.0 2 0.5 0 0 2013 2014 2015 2016 2017 2018 Tonnes milled Processing cost per to
Slide 15: Gas Pipeline Update
GAS PIPELINE UPDATE For personal use only • 293km of pipeline constructed to Tropicana via Sunrise Dam – commissioned end 2015 and now in third year of operation • Based on current diesel price, savings on power costs are ~A$1 – $2 million pa • The incremental cost of additional power is relatively
Slide 16: Mining & Processing Optimisation
For personal use only Current Performance Mining & Processing Optimisation Boston Shaker Underground Exploration 16
Slide 17: Open Pit Optionality
OPEN PIT OPTIONALITY 2019 PLAN STAGING For personal use only • Backfill remains a key strategy BOSTON SHAKER 4 • Sequencing further optimised BOSTON • Mine life 2026 and stockpile exhaustion 2029 SHAKER 1 BOSTON SHAKER 3 2018 PLAN STAGING TROPICANA Stage 4 HAVANA Stage 6 Stage 5 HAVANA STH 17
Slide 18: Open Pit Optionality
OPEN PIT OPTIONALITY Mining stage 2019 PLAN STAGING 2018 2019 2020 2021 2022 2023 2024 2025 2026 For personal use only Current mining activity BOSTON SHAKER 4 Tropicana/Havana 3 and Havana South BOSTON SHAKER 1 Boston Shaker 3 BOSTON SHAKER 3 Boston Shaker 4 Havana Stage 4 TROPICANA Havana Stage 5 H
Slide 19: Future of the Mine – Mining Optimisation
FUTURE OF THE MINE – MINING OPTIMISATION Material movement has remained consistent utilising same fleet… For personal use only 5.00 Long Island 110 100 BP2019 optimisation 90 4.00 80 Mined tonnes (Mwmt) Mining cost (A$/wmt) 70 60 3.00 50 40 30 2.00 20 10 1.00 0 2018 2019 2020 2021 2022 2023 2024 Ton
Slide 20: Mill Throughput Improvement Journey to Date
MILL THROUGHPUT IMPROVEMENT JOURNEY TO DATE For personal use only Optimising capacity Operational Operational Excellence – 2nd Ball Mill Excellence – optimising volume at improved grind & Plant recovery optimisation 8.5 8.0 7.6 Mtpa +38% 0.5 7.5 Million tonnes 7.0 1.2 6.5 6.4 8.1 0.6 6.0 5.8 5.5 5.5
Slide 21: Mill Throughput Improvement Journey Next Phase
MILL THROUGHPUT IMPROVEMENT JOURNEY NEXT PHASE For personal use only Optimising capacity Operational Operational Excellence – 2nd Ball Mill Excellence – optimising volume at improved grind & Plant recovery optimisation 8.5 +50% 8.0 7.6 Mtpa 0.6 7.5 Million tonnes 7.0 1.2 6.5 6.4 8.2 0.6 6.0 5.8 5.5
Slide 22: New 6MW Mill to Unlock Potential
NEW 6MW MILL TO UNLOCK POTENTIAL For personal use only Additional 6MW ball mill to unlock potential • Good fit with Long Island mining plan • Will increase throughput to 8.2Mtpa • Will increase recovery by up to 3% to 92% by reducing grind size • Construction 35% complete • New mill to be operationa
Slide 23: Kamikaze Borefields
KAMIKAZE BOREFIELDS Exploration at Kamikaze Borefield has successfully defined significant water resources… For personal use only • Located 13km SW of Tropicana • Shallow, paleochannel aquifer • Low saline water: <5,000 TDS compared to PWSB ~50,000 TDS • High water yields from production bores • @ 1
Slide 24: Boston Shaker Underground
For personal use only Current Performance Mining & Processing Optimisation Boston Shaker Underground Exploration 24
Slide 25: Boston Shaker
BOSTON SHAKER Boston Shaker extension drilling has confirmed potential for underground mining… For personal use only …and could contribute supplementary high-grade ore to production from 2020 25
Slide 26: Underground Optionality
UNDERGROUND OPTIONALITY Boston Shaker Underground PFS study showing… For personal use only Tropicana Boston Shaker • Two discrete ore lodes • Orebody open at depth • Relatively shallow - 650m below surface at lowest level in design • Prefeasibility Study to be completed in December 2018 quarter • An
Slide 27: Underground Resource Development
UNDERGROUND RESOURCE DEVELOPMENT Boston Shaker is still open at depth and further underground potential exists along strike… For personal use only N Tropicana Havana Boston Shaker Havana South Havana Deeps UG Scoping study (2010) Boston Shaker UG Prefeasibility (2013) PFS in progress Exploration pot
Slide 28: Exploration
For personal use only Current Performance Mining & Processing Optimisation Boston Shaker Underground Exploration 28
Slide 29: Exploration
EXPLORATION Exploration strategy continues to focus on… For personal use only Exploration strategy is focused on: • Tropicana resource development • open pit • underground • Satellite open pit potential Regional exploration • Madras targeting new discovery • New Zebra Tropicana resource • Regional e
Slide 30: Operational Excellence Initiatives
OPERATIONAL EXCELLENCE INITIATIVES Transitioning the site from a cost-aware to a cost-focused culture… For personal use only …leading to sustainable cost reductions 30
Slide 31: Competent Persons Statements
COMPETENT PERSONS STATEMENTS The information in this report that relates to Exploration Results is based on information compiled by Mr Damon Elder who is a full-time employee of AngloGold Ashanti Australia Ltd and is a member of The Australasian Institute of Mining For personal use only and Metallur
Slide 32: Appendix Table of Intercepts
APPENDIX 1 TABLE OF INTERCEPTS East North Total Depth Depth Intercept Gram Hole ID Hole Type RL Dip Azimuth Drill Date Grade For personal use only (MGA94_51) (MGA94_51) Depth From To Width Metres BSD087W1* DDH 652394.798 6763263.75 345.89 -63.29 319.39 6/08/2017 669.4 587 605 18 6.58 118.4 BSD087W2*
Slide 33: Appendix Table of Intercepts
APPENDIX 1 TABLE OF INTERCEPTS East North Total Depth Depth Intercept Gram Hole ID Hole Type RL Dip Azimuth Drill Date Grade For personal use only (MGA94_51) (MGA94_51) Depth From To Width Metres BSD121 DDH 652743.006 6763835.814 347.55 -69.43 317.98 17/12/2017 603.7 574 581 7 1.26 8.8 BSD122 DDH 65
Slide 34: Appendix Table of Intercepts
APPENDIX 1 TABLE OF INTERCEPTS East North Total Depth Depth Intercept Gram Hole ID Hole Type RL Dip Azimuth Drill Date Grade For personal use only (MGA94_51) (MGA94_51) Depth From To Width Metres BSD143 DDH 652258.412 6763789.685 354.23 -57.76 317.03 12/02/2018 384.35 283 290 7 4.81 33.7 BSD145 DDH
Slide 35: Appendix 2: Section 1: Sampling Techniques and Data
APPENDIX 2: TABLE 1 SECTION 1: SAMPLING TECHNIQUES AND DATA Criteria Commentary For personal use only AngloGold Ashanti Australia (AngloGold) has used drilling and sub-sampling of the cuttings or cores as the data basis for the Mineral Resource estimates of the Tropicana deposit. Details are given i
Slide 36: Section 1: Sampling Techniques and Data
SECTION 1: SAMPLING TECHNIQUES AND DATA Criteria Commentary For personal use only RC – Primary splitting • Prior to 2007 RC samples were collected from the cyclone stream using a tiered riffle splitter. From 2007 a static cone splitter was introduced and replaced riffle splitters on all rigs. • The
Slide 37: Section 1: Sampling Techniques and Data
SECTION 1: SAMPLING TECHNIQUES AND DATA Criteria Commentary For personal use only No geophysical tools were used to determine any element concentrations material to the Mineral Resource estimate. All Mineral Resource prepared pulps have undergone 50g fire assay which is considered a total assay for
Slide 38: Section 1: Sampling Techniques and Data
SECTION 1: SAMPLING TECHNIQUES AND DATA Criteria Commentary For personal use only Orientation of data in relation to geological Most drill hole are oriented to intersect the shallowly east dipping mineralisation at a high angle and as such, a grade bias introduced by the orientation of structure dat
Slide 39: Section 2: Reporting of Exploration Results
SECTION 2: REPORTING OF EXPLORATION RESULTS Criteria Commentary For personal use only The Tropical Gold Mine Mineral Resources are located wholly within WA mining lease M39/1096, which commenced on 11 Mar 2015 and has a term of 21 years (expiry 10 Mar 2036). Tropicana Gold Mine in a joint venture be