48
Burkina Faso Analyst visit – Taparko Gold Mine (SOMITA) 31.10.2013
Burkina Faso Analyst visit – Taparko Gold Mine
(SOMITA)
31.10.2013
Disclaimer
2
Information contained in this presentation concerns Nord Gold N.V., a company organized and existing under the laws of Netherlands
(the “Company”, and together with its subsidiaries, the “Group”), and is for general information purposes only. The opinions presented
herein are based on general information gathered at the time of writing and are subject to change without notice. The Company relies on
information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.
These materials may contain forward-looking statements regarding future events or the future financial performance of the Group. One
can identify forward looking statements by terms such as “expect”, “believe”, “estimate”, “anticipate”, “intend”, “will”, “could”, “may”, or
“might”, the negative of such terms or other similar expressions. These forward-looking statements include matters that are not historical
facts and statements regarding the Group’s intentions, beliefs or current expectations concerning, among other things, the Company’s
results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Group operates. By their
nature, forward-looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may
or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and
that the Groups’ actual results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the
industry in which the Group operates may differ materially from those described in or suggested by the forward-looking statements
contained in these materials. In addition, even if the Group’s results of operations, financial condition, liquidity, prospects, growth,
strategies and the development of the industry in which the Group operates are consistent with the forward-looking statements contained
in these materials, those results or developments may not be indicative of results or developments in future periods. The Company does
not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of
unanticipated events. Many factors could cause the actual results to differ materially from those contained in forward-looking statements
of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in
the states where the Group operates, changes in the world [gold] market, as well as many other risks specifically related to the Group
and its operations. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its
completeness, accuracy or fairness.
The information in this presentation is subject to verification, completion and change. Accordingly, no representation or warranty, express
or implied, is made or given by or on behalf of the Company or any of its shareholders, directors, officers or employees or any other
person as to the accuracy, completeness or fairness of the information or opinions contained in these materials. None of the Company
nor any of its shareholders, directors, officers or any other person accepts any liability whatsoever for any loss howsoever arising from
any use of the contents of this presentation or otherwise arising in connection therewith.
The presentation and the information contained herein does not constitute or form a part of any offer or solicitation to purchase or
subscribe for securities in the United States. The securities of the Company have not been, and will not be, registered under the US
Securities Act of 1933, as amended (the “Securities Act”). Accordingly, the securities of the Company may not be offered or sold in the
United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
The Company does not intend to conduct a public offering of any securities in the United States
Taparko Gold Mine Key Messages
3
A. • 2013 gold production expected to exceed 100koz.
D. • Maximize plant throughput and gold recovery by optimizing the ore blend and the
implementation of recovery improvements initiatives.
E. • Commenced pre-strip of 35 & GT pit cutbacks, while producing high-grade ore from the
low SR 35 & GT pits.
F. • Commenced development of the high-grade Bouroum pit; first ore production in Q4 2013.
G. • Over 3,000 of artisanal miners relocated without any incidents.
H. • Successfully developing new pits and staging of cut-backs in line with the Life of Mine
plan to maximize NPV.
J. • Implementing a site-wide efficiency programme.
L. • Utilizing extensional and infill drilling to grow open pit Reserves.
B. • 2-years without a Lost Time Injury (LTI). Best in Nordgold.
I. • SR has peaked in 2013 and expected to decrease in 2014.
K. • Established a training programme for the national staff.
C. • Recovery is stably above 80%.
M. • Regional exploration and development programme focused on high potential Goengo,
Yeou nearby areas and other early stage targets.
• Overview
• Safety and community
• Mine layout and infrastructure
• Mine geology
• Mineral resources and reserves
• Mining
• Processing
• Key financials indicators
• Exploration and growth
• Key messages
Contents
4
History
5
Year Tonnes
Processed
Feed Grade Au
(g/t)
Au recovery (%)
2008 368 973 3.04 91.1
2009 814 519 3.97 93.5
2010 1 273 759 3.46 90.3
2011 1 461 309 3.26 84.3
2012 1 677 442 3.09 82.1
Taparko annual production summary
A. • The first gold poured at the Taparko-Bouroum Gold Mine on July 17, 2007.
B. • The start-up of the Taparko-Bouroum Gold Mine marked the revival of a modern gold
mining industry in Burkina Faso.
C. • It is the first commercially operated gold mine in the country since the government
operated Poura mine closed in 1999.
Location
6
M. Kelly
General Manager
H. Bocoum
Regional director
R. Godbout
HSE director
JB Reinle
Security director
L. Mirindi
Human resources director
F. Toe
Finance director
B. Roy
Process director
R. Berquin
Mining Director
Y. Sevin
Logistic director
J. Learn
Exploration director
D. Couture
Maintenance director
J. Imbeau
Geology director
Directors operating both for Bissa and Taparko
Directors operating only for Bissa
Management Structure
• Nordgold is focusing on development of local employees
• 2 our directors are Burkina Faso citizens
DEPARTMENTS SERVICES HEADCOUNT DEP. HEADCOUNT GENERAL MANAGEMENT Director 1 1
PLANT DEPARTMENT
Or pre traitment 106
214 Maintenance 68 Metallurgy 13 Laboratory 27
MINE DEPARTMENT Blast/Drilling 49
204 Loading/Transportation 155
MAINTENANCE DEPARTMENT Mobile Equipment 140
175 Fixed Equipment 35
GEOLOGY/TECHNICAL SERVICES Geology 52
70 Ingeneering 18
EXPLORATION DEPARTMENT 30 30
SECURITY DEPARTMENT Security 36
42 Health 6
HSE DEPARTMENT
Environment 8
21 Safety 5 Training 3 Business System 5
LOGISTIC DEPARTMENT 33 33
FINANCE DEPARTMENT Accounting/Control 8
12 IT 4 REGIONAL DEPARTMENT Ouaga Office 9 9
HUMAN RESOURCES DEPARTMENT Personnel 5
7 Community/Camp 2
TOTAL HEADCOUNT 818
Employees
• Overview
• Safety and community
• Mine layout and infrastructure
• Mine geology
• Mineral resources and reserves
• Mining
• Processing
• Key financials indicators
• Exploration and growth
• Key messages
Contents
9
HSE overview
0000000000000000000
1
00,0
0,5
0,0
1,0
0,8
0,6
0,4
0,2
1,0
1,5
2,0
Dec-1
2
Apr-
13
Oct-
12
Sep-1
2
Nov-1
2
Sep-1
3
0,72
Aug-1
3
0,75
Jul-13
1,53
Jun-1
3
1,52
May-1
3
Aug-1
2
Jul-12
Jun-1
2
0
Mar-
13
Apr-
12
Mar-
12
Feb-1
2
Jan-1
2
May-1
2
0,73
0,58
Feb-1
3
Jan-1
3
Oct-
13
Rolling LTIFR for 12m Lost time incidents
HSE performance
HSE strategy
1. Formal delivery of ICAM (Scheduled by Training Department January 2014)
2. Continued yearly training of all LV drivers onsite
3. Installation of Electronic Bulletin Boards
4. Continued development of Safety First Culture through: Take 5 / Near Miss Reporting
JHAs and SOPs/ Behavior Audit assisted with SOMITA safety booklet for each level of
Supervision
5. “Safety Employee of the Month” award system along existing Idea of the Month program
(from Operational Excellence)
Emergency help
• Distributions of food to local populations following a poor agricultural
season in 2009
• Financial support to Yalgo and Bouroum impacted by the flood of July
2010
• Support to local communities impacted by the flood in September 2009
• Assistance in the reconstruction of the dam in Tougouri following the
September 2010 flood
Education
• Construction of new school in Taparko and renovations to the old
school including furniture and supplies for 300 children
• Construction of 4 modern houses for nurses and teachers in Taparko in
2013
• Donation of tables and chairs to the primary school of Gorbalé in 2013
Health & agriculture
• Construction of new health clinic in Taparko and renovation of old
clinic including new supplies and equipment
• Potable water fountain for the school in Taparko
• Donation of 100 sheep to the Taparko women’s committee to help them
create a sustainable economic activity
11
Community development
Our Communities
12
DONATION OF AN AMBULANCE IN 2010 TO YALGO
HOSPITAL
CONSTRUCTION OF HEALTH INFRASTRUCTURE
PROMOTION OF EDUCATION: TRAINING AND WOMEN EMPOWERMENT:
13
• Bouroum is the group of pits located in 50 km from
Taparko. Inferred Resources at the beginning of
2013 were 281koz.
• Before starting developing Bouroum pits the
management faced a problem of illegal miners
which have been acting on Bouroum’s territory.
They were supposed to leave the future mine by
the end of August because of the rain season, but
the situation has gotten much worse. The total
amount of illegal miners increased from 2 000 to
10 000 during the summer.
• The start of pits development was planned for
September 2013 and this problem could delay the
planned launching of works relating to
construction, fencing off the territory, etc.
• Joint efforts of local administration, legal and
security departments, Taparko’s communication
department and Nordgold’s management have
solved the problem with illegal miners in one
month.
• During September the successful negotiations
with local authorities and communities were held.
As the result the territory of Bouroum was purged
from the illegal miners, the fence was installed and
the illegal production was stopped.
Before
After
Bouroum negotiations
• Overview
• Safety and community
• Mine layout and infrastructure
• Mine geology
• Mineral resources and reserves
• Mining
• Processing
• Key financials indicators
• Exploration and growth
• Key messages
Contents
14
Taparko General Surface Plan
15
Base
Vie
Processing
plant
Tailing dam
• Overview
• Safety and community
• Mine layout and infrastructure
• Mine geology
• Mineral resources and reserves
• Mining
• Processing
• Key financials indicators
• Exploration and growth
• Key messages
Contents
16
17
Taparko General Geology
• Overview
• Safety and community
• Mine layout and infrastructure
• Mine geology
• Mineral resources and reserves
• Mining
• Processing
• Key financials indicators
• Exploration and growth
• Key messages
Contents
18
19
Mineral Resources and reserves
• Overview
• Safety and community
• Mine layout and infrastructure
• Mine geology
• Mineral resources and reserves
• Mining
• Processing
• Key financials indicators
• Exploration and growth
• Key messages
Contents
20
21
Comments:
• Mining tonnage: total tonnage forecast for 2013 is 14125kt to be mined from 3 pits 3/5, 2N2K and GT
• Shifts; 2 X 12 hrs shift are worked at Taparko with hot seat change and 45 minutes lunch break
• Mobile mining fleet maintenance is conducted during lunch break
• Strategy for 2014 is to develop Bouroum, GT and 3/5 on best NPV analysis basis
547
845
754
623
491
582561558
0
100
200
300
400
500
600
700
800
900
0
6 000
5 000
4 000
1 000
2 000
3 000
Jan Feb
5 648
2013
actual
May Mar Apr Jun Jul Aug Sep
687
Ths. BCM
2013 Mining Performance (1/2)
Total bcm mined in 2013 [ths. bcm]
22
2013 Mining Performance (2/2)
92
168147
164158
127112
83
0
50
100
150
200
400
200
800
600
1 200
0
1 000
Jun
101
Jul Aug Jan Mar Feb Apr May
1 152
Sep 2013
actual Ths. Tones
Total ore tones mined in 2013 [ths. tones]
Ore grade [g/t]
2.612.792.84
2.672.692.552.512.45
2.87
0
1
2
3
4
1.0
1.5
2.0
2.5
3.0
3.5
Sep Aug 2013
actual
Jul Jun
2.16
May Apr Mar Feb Jan
Grade
23
2013 & 2014 Taparko Mining Locations
24
Bouroum : 2013: 32 kt at 2.24 g/t for 3 koz
2014 : 377 kt at 3.38 g/t for 41 koz
Project Description
• Drill rods management • Test rods from different suppliers
• Choose the most suitable for us with longest life
1
• Performance management of
excavator operators
• Finalization of testing of excavators at Berezitovy mine and installation of
Taparko in case of success
• Will allow to decrease loading cycle, improve load volume, manage
performance of operators
2
• Pit practice improvement • Installation of radios in the mining equipment
• Implementation of simple dispatch system
3
• Optimization of downtime for
fueling and greasing
• Decrease down time for fueling and greasing of the mining fleet
4
• Tire life improvement • Usage of the tires with suitable TKPH ratio 5
• Other projects without clear
economical effect
• Ramp management
• Base competency trainings for mining fleet operators
• Dedicated component shop and shop for drills repair
8
Efficiency program
• Elimination of overloading of DT • Have hungry boards not higher than 250mm
• Have payload lights on new trucks mounted so they are visible by the shovel
operator
6
• Chromium Carbide liners for DT
and KVX system for excavators
• Reduce the time and cost for lining truck trays
• Decrease cost on Ground Engaging Tools, Eliminate welded adaptors as
support for the teeth
7
25
• Overview
• Safety and community
• Mine layout and infrastructure
• Mine geology
• Mineral resources and reserves
• Mining
• Processing
• Key financials indicators
• Exploration and growth
• Key messages
Contents
26
27
A. To improve the particles size of the ore to match the increase in production from 140 TPH to 210
TPH a regrind mill has been installed and started in August 2012.
An improvement of 15 % on the grind size has been achieved.
B. In 2013 we encountered high graphite and pyrite levels in the ore creating a reduction in recovery.
Modifications were done to reduce the preg-robbing effect of the graphite.
The slow gold dissolving process is mainly due to high pyrite content. Additives were added to the
slurry to improve the reaction kinetic.
_______________________________________________________________________________
C. To increase the residence time, two new CIL tanks have been installed and started in August 2012.
In 2013, the average residence time was close to 23 hours as per the feasibility steady.
D. The tailing dam height increases in 2013 to support production for the next 2,5 years. The bottom
and the berms of the tailing dam are covered by a 1.0 mm HDPE liners to eliminate risk of water
table contamination.
E. Additional improvement projects and equipment will see 2014 throughputs to close to 2.0 Mtpa by
the end of the year.
Processing summary
Process Plant Flowsheet
28
29
2013 Processing Performance (1/2)
55,875
133,984135,608
83,176
135,914134,335128,478123,927133,572
0
50,000
100,000
150,000
Apr Mar Feb Jan Jun Aug Sep May Jul
Tones milled in 2013
39.0
96.194.8
63.0
95.195.187.5
95.596.0
0
50
100
Sep Aug Jul Jun May Apr Mar Feb Jan
% mill operating hours 2013
142
187192183192196197193187
0
50
100
150
200
Apr Mar Feb Jan Sep Aug Jul Jun May
Mill throughput 2013 [t/hr]
30 30
2013 Processing Performance (2/2)
3.32
2.502.30
3.042.862.552.642.752.92
0
1
2
3
4
Sep Aug Jul Jun May Apr Mar Feb Jan
Gold head grade 2013 [Au g/t]
86.3081.9976.6883.1684.2474.3473.7177.6479.66
0
50
100
May Apr Mar Feb Jan Sep Aug Jul Jun
Gold recovery 2013 [%]
158
275240
210
328
254250265311
0
100
200
300
400
Sep Jul Jun May Apr Mar Feb Jan Aug
Gold produced [kg Au]
Project Description
• Optimization of cyanide
consumption
• Oxygen addition, higher lime consumption will allow to decrease cyanide
consumption
1
• Optimization of caustic soda
consumption
• Optimization of elutions leading to lower caustic soda consumption 2
• Increase share of HFO in power
generation
• Increase share of HFO in power generation in 4th quarter to 80% 3
• Decrease downtime of the plant
due to electrical reasons
• Purchase of new genset what will allow to generate enough power for mills
start up in case of one of gensets repair
4
• Installation of homogenizer • Installation of homogenizer for utilization of used oil for power generation 5
• Other minor projects • Optimization of PPE
• Reduction of fuel for rented equipment
• Implementation of bacterial beds
• Optimization of travel costs
• LV costs optimization
• Installation of scrap magnet on the mills discharge
6
Efficiency program
31
• Overview
• Safety and community
• Mine layout and infrastructure
• Mine geology
• Mineral resources and reserves
• Mining
• Processing
• Key financials indicators
• Exploration and growth
• Key messages
Contents
32
33
Taparko Gold Mine: Financial KPIs
Operating results Q3 2013 Q3 2012Change,
YoYQ2 2013
Change,
QoQ9m 2013 9m 2012
Change,
YoY
LTIFR 0.00 0.00 0% 0.00 0% 0.00 0.00 0%
Run of mine, kt 4,675 3,100 51% 4,357 7% 12,880 8,789 47%
Waste mined, kt 4,327 2,669 62% 3,878 12% 11,462 7,595 51%
Ore mined, kt 348 431 -19% 480 -28% 1,418 1,194 19%
Stripping ratio, tn/tn 12.43 6.19 101% 8.09 54% 8.08 6.36 27%
Ore milled, kt 325 406 -20% 353 -8% 1,065 1,171 -9%
Grade, g/t 2.58 2.80 -8% 2.80 -8% 2.73 3.00 -9%
Recovery, % 81.1% 82.8% -1.7% 81% 0.5% 79.6% 82.2% -2.6%
Gold production, Koz 22.1 29.4 -25% 25.8 -14% 77.3 91.2 -15%
Gold sold, Koz 22.2 29.4 -25% 25.8 -14% 77.3 91.2 -15%
Average realised gold price per ounce sold, US$/oz 1,323 1,688 -22% 1,398 -5% 1,463 1,653 -12%
Revenue, US$m 29.3 49.6 -41% 36.1 -19% 113.1 150.7 -25%
EBITDA, US$/m 12.3
EBITDA margin, % 34%
TCC, US$/oz 832.5
• Overview
• Safety and community
• Mine layout and infrastructure
• Mine geology
• Mineral resources and reserves
• Mining
• Processing
• Key financials indicators
• Exploration and growth
• Key messages
Contents
34
35
A. Brownfield exploration at Taparko pits GT, 3/5 and 2N/2K, at flanks and at depth. Brownfield
exploration at very high grade Bissinga pit abandoned in 2010.
C. Exploration of rich quartz veins satellites in Bouroum region to feed the mill with high grade
ore from deposits ~50 km away; the most advanced project in this category is Yeou.
B. Prolong the life of Taparko mine with discovery of additional reserves for the existing mine
and mill infrastructure. Exploration of 15km area around the mine using advanced
techniques such as recent airborne geophysics, termite mound sampling and detailed
mapping by senior geologists; so far most promising target is Goengo, which has potential to
significantly increase the life of mine. No significant zones exist east or west of Taparko mill,
work ongoing north and south along strike
D. Integration of the mapping, drilling, termite mound geochemistry and airborne geophysics will
be performed with a view to drill about 11 000m of DD in 2014
E. 2013 field work has resulted in decision to drop Dyakolra, Taranga and Nongo-Fayere
permits.
Exploration summary
2013 exploration program Taparko ML
A. Geophysics – newly acquired 100x100m airborne geophysics data (magnetics, radiometrics,
VTEM electromagnetics) increases the technical level of the geophysics at the scale of the
ML compared to the regional government surveys
C. Mapping – increase the technical level of the mapping by using senior geologists
B. Geochemistry – regional geochemistry will sample termite mounds** instead of traditional
soils, at 200 x 200m spacing, compared to previous 400 x 400m; in-fill sampling of anomalies
identified close to the ROMpad may be performed prior to complete coverage of the ML at
200 x 200m
D. Continue resource/reserve drilling in close proximity to the existing open pits
E. Special attention to the northern extension of 3/5 pit, using S plunge model
F. Special attention to Goengo, 15 km from the ROMpad, where significant exploration potential
may be opened up with detailed mapping and intepretation of existing drilling, integrated with
the new detailed geophysics
VTEM
DC_50
Conductivity
Taparko mine
Goengo
Markoye fault
Taparko and Nongo-Fayere
Main results Taparko area 2013
A. There is no significant mineralization west (Taparko granodiorite) or east of Taparko mine
(amphibolite grade incipient migmatites)
C. Best exploration target close to Taparko mine is Goengo (15 km) where gold mineralization is
associated with shear zones in greenschist metasediments
B. Drilling ongoing along strike, north and south of Taparko mine, best result north of the mine
fence is 3.15 g/t Au / 1.95m but the zone is actually about 10m wide – step-out drilling will be
done
D. Secondary exploration target at Levry (20-25 km) not yet mapped
Taparko termite mound results (north)
3/5 pit
GT pit
Goengo
Levry
Taparko termite mound results (south)
41
35 Open Pit – Drill Targets
42
2N2K Open Pit – Drill Targets
43
GT Open Pit – Drill Targets
44
Bouroum Open Pit – Drill Targets
Yeou exploration project
45
Plan de sondages
46
Goengo exploration project
Goengo
• Overview
• Safety and community
• Mine layout and infrastructure
• Mine geology
• Mineral resources and reserves
• Mining
• Processing
• Key financials indicators
• Exploration and growth
• Key messages
Contents
47
Taparko Gold Mine Key Messages
48
A. • 2013 gold production expected to exceed 100koz.
D. • Maximize plant throughput and gold recovery by optimizing the ore blend and the
implementation of recovery improvements initiatives.
E. • Commenced pre-strip of 35 & GT pit cutbacks, while producing high-grade ore from the
low SR 35 & GT pits.
F. • Commenced development of the high-grade Bouroum pit; first ore production in Q4 2013.
G. • Over 3,000 of artisanal miners relocated without any incidents.
H. • Successfully developing new pits and staging of cut-backs in line with the Life of Mine
plan to maximize NPV.
J. • Implementing a site-wide efficiency programme.
L. • Utilizing extensional and infill drilling to grow open pit Reserves.
B. • 2-years without a Lost Time Injury (LTI). Best in Nordgold.
I. • SR has peaked in 2013 and expected to decrease in 2014.
K. • Established a training programme for the national staff.
C. • Recovery is stably above 80%.
M. • Regional exploration and development programme focused on high potential Goengo,
Yeou nearby areas and other early stage targets.
