Gold Fields Australia Site Visit: St Ives Gold Mine · 2014. 7. 15. · WA 1st Class Mine Managers...

Gold Fields Australia Site Visit: St Ives Gold MineGRAEME OVENSGRAEME OVENSGeneral Manager15th July 2014

Forward looking statements

Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and

Section 21E of the US Securities Exchange Act of 1934.

In particular, the forward looking statements in this document include among others those relating to the Damang Exploration Target Statement; the Farp g g g g p g

Southeast Exploration Target Statement; commodity prices; demand for gold and other metals and minerals; interest rate expectations; exploration and

production costs; levels of expected production; Gold Fields’ growth pipeline; levels and expected benefits of current and planned capital expenditures;

future reserve, resource and other mineralisation levels; and the extent of cost efficiencies and savings to be achieved. Such forward looking

statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or

achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward

looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South

Africa Ghana Australia Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and futureAfrica, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future

acquisitions, exploration and development activities; decreases in the market price of gold and/or copper; hazards associated with underground and

surface gold mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly taxation

and environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; the

availability and cost of raw and finished materials; the cost of energy and water; inflation and other macro-economic factors, industrial action, temporary

stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS and other occupational health risks experienced by

Gold Fields’ employees.

These forward looking statements speak only as of the date of this document. Gold Fields undertakes no obligation to update publicly or release any

revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of

unanticipated events.

2Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

St Ives Gold MineLocation

• Located in the Eastern Goldfields Province of the

Location

Archaean Aged Yilgarn Craton

• 620km from Perth

• 100km South of Kalgoorlie


100% Gold Fields Owned

St Ives Gold MineLocation

• 100km South of Kalgoorlie

Location

• Site extends from 5 to 25 km SSW of Kambalda

• Site covers 127,556 hectares of granted tenements

• Active mining areas total about 2,000 hectares

• Tenements located within the Kambalda Domain of

the Norseman-Wiluna Belt

• The Kambalda Domain is bounded by the Boulder y

Lefroy Fault and Zuleika Shear


Australia’s Most Prolific Gold District

St Ives Gold MineA Brief HistoryA Brief History

• 1897: Gold first discovered at Red Hill 1897

• 1930’s: Mining ceased

• 1966: WMC discovered Nickel

• 1970’s: Explored for gold

• 1980: Victory Gold Mine discovered

• 1988: First dedicated gold plant built

• 2001: Gold Fields acquired St Ives from WMC

f• 2004: New Lefroy Mill commissioned

• 2006/2007: Athena and Hamlet discovered

2005 N t di d• 2005: Neptune discovered

• 2012: Invincible discovered


An Iconic Western Australia Mining Camp

St Ives Gold MineHistorical Production

● 1980: Commercial Gold Production Commenced● 2010: 10 Moz Milestone Achieved

Historical Production

● 2013: 120 Mt @ 3.0 g/t Au for 11.6 Moz

St Ives Mined Ounces Source History

12

14

600

700

NED

(Moz

)

Mill

ions

Koz

St Ives Mined Ounces Source History

WMC 5.1 Moz Gold Fields 6.9 Moz

6

8

10

300

400

500

TAL

OU

NC

ES M

I

MIN

ED O

UN

CES

2

4

100

200

UM

ULA

TIVE

TO

T

ANN

UA

L M

00

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

CU

YEARS

Underground Oz Mined Open Pit Oz Mined Cumulative Oz Mined


Outstanding and Reliable Resource To Reserve Conversion History

Underground Oz Mined Open Pit Oz Mined Cumulative Oz Mined

St Ives Gold MineContinued Capital Investment since Gold Fields took OwnershipContinued Capital Investment since Gold Fields took Ownership

Discovery and Development of New Mines● Underground

Major Capital Investments● Lefroy Mill (US$125m)

Athena (Discovery cost of US$61/oz) Hamlet (Discovery cost US$64/oz) Cave Rocks (Discovery cost US$66/oz)

● Morgan Stanley Royalty (US$308m)● OP Owner Mining Fleet (80m)● Support Infrastructure (US$21m) ( y $ )

● Open Pits Leviathan

Numerous Small Pits

● Support Infrastructure (US$21m)Exploration● Invincible

S d T d Numerous Small Pits● Speedway Trend● 2014 spend US$25 million


Well Capitalised

St Ives Gold MineMorgan Stanley Royalty

● Royalty Structure

10% of gold price above A$600/oz

Morgan Stanley Royalty

350

Cummulative Royalty Savedg p

4% NSR Royalty from 3.3 million ounces of production

● Bought back for A$308 million in August 2009

300

● Bought back for A$308 million in August 2009

● Payback of 4.5 years200

250

150

50

100

-Paid H2

2009H1

2010H2

2010H1

2011H2

2011H1

2012H2

2012H1

2013H2

2013H1

2014


Average Royalty Saved A$142/oz

St Ives Gold MineReplacement Of ReservesReplacement Of Reserves

7

M Ozs St Ives Reserves and Production

6

4

5

3

1

2

02002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Reserves Production Cumm Production


Typical Regenerative Orogenic Geology

Reserves Production Cumm Production

St Ives Gold MineSenior Management TeamSenior Management Team

(From left to right)

John Goodall – Human Resources, Nigel Thomas - Business Improvement, Andrew Whibley - Technology & Capital Projects,Graeme Ovens – General Manager, Dan Worthy – Technical Services, Andrew Kozlowski – Sustainable Development, MonikaGendreau – PA to GM, Trevor McIlwaine – Manager UG Mining, Gary Cormack – Manager Processing, Matt O’Hara – ManagerOperations, Malcolm Jolly – Manager MRM, David Cornes – Manager Finance


An Experienced and Mature Management Team

St Ives Gold MineSenior Management Team

Graeme Ovens – General Manager● Strong processing background and experience in both open pit and

Senior Management Team

underground mining.● Grad Dip Mining Engineering – MAusIMM● Experience - 35 years in the Eastern Goldfields region and NSW.p y g

Matthew O’Hara – Manager: Operations● Bachelor of Engineering (Mining)● Bachelor of Engineering (Mining)● WA 1st Class Mine Managers Certificate of Competency● Experience: 24 years in mining industry

Malcolm Jolly – Manager: Mineral Resources● Broad based mine geology and exploration technical background g gy p g

inclusive of mine planning, geotechnical, metallurgy, strategy and mine economics

● MSc. Geology, Wits EDP, MAusIMM

11

gy● Experience : 33 years in mining industry

Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

St Ives Gold MineKey Management Team:

Daniel Worthy – Manager: Technical Services● Bachelor of Engineering (Mining)

Key Management Team:

● Experience: 12 years of operational mining experience in Australia, Spain & Bulgaria

Gareth Cormack – Manager: Processing● NHD in Extractive Metallurgy and Diploma in Engineering

Management. MMMA ● Broad based metallurgical technical backgroundg g● Experience: 25 years in various metallurgical positions ranging from

operations to management


St Ives Gold MineStrategic Focus

● Strategic Plan Implementation- Sustainable Cash generation Evolving strategy in response to declining gold price & volatility

F d li i f h i d t t

Strategic Focus

Focus on delivering a free cash margin and not tonnes

● Restructuring the cost baseSimplification of a complex multi mine operation Simplification of a complex multi-mine operation

Maximising margins, business Improvement initiatives with productivity & cost focus Prudent capital management

● Production Base Quality ore delivery, dilution control and head grade Few large open pits for consistent base load ore productiong p p p 2 to 3 UG mines focused on quality ore

● Exploration Highly prospective gold camp with excellent discovery track record Extensional exploration and growth of existing mines Brownfields exploration pipeline delivering future quality (high value) resources

13

Project feasibility with stringent technical evaluation for new mines to deliver value


St Ives Gold MineWhat Makes St Ives Unique?

● What Makes St Ives Unique

What Makes St Ives Unique?


St Ives Gold MineSite LayoutSite Layout

Kambalda Village

Lake Lefroy


St Ives Gold MineSite Infrastructure Technology

Mineral Resources 38.4 Mt @ 3.51 g/t for 4.34 Moz

Site, Infrastructure, Technology

Mineral Reserves 20.7 Mt @ 3.03 g/t for 2.02 Moz

Central CIL Process Plant – 4.8 Mtpa

7 Operating Mines3 UG Mines 3 UG Mines• Athena• Hamlet• Cave Rocks• Cave Rocks

4 Open Pits• Mars• Neptune• Neptune• Idough• Redback

16

Road Train Haulage to ROM


St Ives Gold MineKey Metrics

KPI’s US$ Unit Q4 2013 Q1 2014

Safety LTI’s 1 1

Key Metrics

Ore mined - UG kt 712 625

Mined grade - UG g/t 3.44 3.97

Ore mined - OP kt 924 214

Mined grade - OP g/t 1.38 1.37

Ore processed kt 1 207 1 282Ore processed kt 1,207 1,282

Head grade g/t 2.55 2.35

Recovery % 93.3 94.0

Gold sold Koz 99.1 96.6

Operating cost US$m 87.7 76.8

Capital expenditure US$m 26.5 33.3

AISC US$/oz. 1,091 1,291

Revenue US$m 125 1 122 9

17

Revenue US$m 125.1 122.9

Operating Profit US$m 48.3 36.4Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

St Ives Gold MineRecent Performance

• Focus on free cash flow and growing the margin

Recent Performance

1 600120

Production and AICKoz US$/oz

• No ounces for ounces sake, no marginal mining

• Optimised contractor vs owner mining1 200

1 400100

• Right-sizing of overhead structure

• Rationalisation, optimisation and prioritisation of 800

1 000

60

80

capital

• Site specific cost savings and business process re-

400

600

800

40

60

engineering

200

400

20

00Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Production AIC


A Structural Shift In The Cost Base

St Ives Gold MineGeology: Deposit Size & DistributionGeology: Deposit Size & Distribution● More than just a single mine

49 Open Pits to date 15 UG mines to date Revenge

3 4 Moz Junction Area ~2.1 Moz Argo – Athena - Hamlet ~3.7 Moz Greater Revenge Area ~3.4 Moz

Vi A 3 M

3.4 Moz

NeptuneNeptune

Victory Area ~3.7 Moz Invincible Potential +1 Moz

● Multiple World Class Deposits

Invincible +1Moz?

VictoryVictory3 7Moz3 7Moz● Multiple World Class Deposits

40 km Strike Length 127,000 hectares

● Multiple StylesArgoArgo AthenaAthena

3.7Moz3.7Moz

Vein/Lode Hosted Systems• Laminated Veins• Extensional Veins,

Breccia'sJunctionJunction

ArgoArgo--AthenaAthena--HamletHamlet3.7Moz3.7Moz

• Breccia's,• Stacked Veins

Supergene Enrichment Disseminated Gold

2.1Moz2.1Moz


Palaeochannel Gold● Extensive highly prospective tenements

OHS & Sustainable Development


St Ives Gold MineSafety Performance

12 Month Moving Average Frequency Rates Per Million Manhours(TRIFR = Lost Time Injury + Restricted Work Injury + Medically Treated Injury per Million Manhours Worked)

Safety Performance

28.4 29.130

35

25.224

26.924.4 23.5 23.5 23.925

1215

20Target

43 3

4 45

4 45

10

0Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14

No of injuries 12 Month Moving Average Frequency Rate Per Million Manhours Worked

21

No. of injuries 12 Month Moving Average Frequency Rate Per Million Manhours Worked

If We Cannot Mine Safely, We Will Not Mine


St Ives Gold MineHealth And Safety Strategy

● Health and Safety Strategy

Health And Safety Strategy

Initiative Goal

Behavioral Based Safety: Vital Behaviours

Engage 95% of St Ives workforce and embed the Vital Behaviours concepts into the St Ives safety culture

Field Level Risk Assessments Rollout new GFA Field Level Risk Assessment tool and associated HazardID training

Visible Felt Leadership Incorporate GFA Visible Felt Leadership process into current Management Time In Field activities

Improved Critical Risk Management Review site critical risk register and periodically verify controls

Safety System Compliance and Auditing

Periodically audit all SIGM Departments and Contractor Partners against the Site Safety Standard

22

If We Cannot Mine Safely, We Will Not MineGold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

Environmental Management and Community Engagement

St Ives Gold Mineg y g g

• Environmentally responsible operations through ISO14001

certified Environmental Management System

• Effective local Indigenous group engagement through our

Heritage Monitoring Program g g g

• Active engagement of the local Kambalda community through

Comm nit ProgramCommunity Program


St Ives Gold MineHuman ResourcesHuman Resources

• Primarily a Residential Site with 85% of employees living in

Kambalda or Kalgoorlie

• Remaining employees and contractors on FIFO

• Contract camps are utilized in Kambalda

Description 2013

Employees in service 713Contractors 236

TE+C 949

Tonnes mined/ TE+C 5,058Oz Sold / TE+C 432.2


St Ives Gold MineTop 5 PrioritiesTop 5 Priorities

Priorities

1 Delivery of planned gradee e y o p a ed g ade

2 Improving performance through embedding the safety & health strategy

3 Invincible development

4 Quality reserve & resource replacement

5 Productivity and efficiency to reduce the cost base


Underground Mining


Virtual Tour of a Athena Ore Drive

St Ives Gold MineVirtual tour Of An Athena Ore Body

● The following series of 13 photographs is:• A series of faces in an Athena ore drive

Virtual tour Of An Athena Ore Body

• Showing the typical features of the mine-scale geology

face photoface photo(looking north)

indicative grade g/t

face position along drive

indicative grade g/t


2.00 g/t

4.00 g/t

10.00 g/t

7.00 g/t

9.00 g/t

15.00 g/t

12.00 g/t

8.00 g/t

4.00 g/t

3.00 g/t

4.00 g/t

waste

basalt porphyrybasalt

waste

St Ives Gold MineUnderground Mining

● Multiple mining areas

Athena

Underground Mining

Underground MiningOz US$/Oz

Hamlet

Cave Rocks600

300 000

350 000

US$/Oz

● Significant contribution to site

2.0 Mtpa of higher grade ore 400

500

250 000

300 000

Over half of gold production

● Mining Methodology

300

150 000

200 000

● Mining Methodology

Individual approach to match ore bodies

Mechanised long hole stoping100

200

50 000

100 000

Production Owner mining

Specialist Contractors 0-

50 000

C2010 C2011 C2012 C2013


Gold Mined (Oz) Direct mining cost (US$/Oz)

St Ives Gold MineUnderground Mining: Equipment

Mine Production (Gold Fields Australia Pty Ltd)

● 7 x Atlas Copco MT6020 Mine Trucks (50t nominal capacity)

Underground Mining: Equipment

● 7 x Atlas Copco MT6020 Mine Trucks (50t nominal capacity)

● 6 x Caterpillar R2900G Loaders

● 1 x Atlas Copco MC7 and 4 x Sandvik Production Drills (89 mm● 1 x Atlas Copco MC7 and 4 x Sandvik Production Drills (89 mm

diameter blast holes)

● 1 x Sandvik Cable Bolter

Mine Development (Byrnecut Australia Pty Ltd)

● 3 x Caterpillar AD55 Mine Trucks (55t nominal capacity)

● 3 x 621 Sandvik and 2 x Caterpillar R2900G Loaders

● 3 x Sandvik Axera 07Jumbo Drills


St Ives Gold MineUnderground Mining: Athena - HamletUnderground Mining: Athena Hamlet

Surface 9305m RL

550m

895m

Athena Underground Mine• 42,000 tpm

S bl l O St ith t b kfill

Strike ~350m

• Sublevel Open Stope with paste backfill

Hamlet Underground Mine


• 51,000 tpm• Sublevel Open Stope with paste backfill

Strike ~500m

St Ives Gold MineUnderground Mining: Cave RocksUnderground Mining: Cave Rocks

Cave Rocks Underground Mine• 57 000 tpm• 57,000 tpm• Sublevel Open Stope

Surface 350m RLSurface 350m RL


Elevation -152.5m RL Strike ~1050m

Open Pit Mining


St Ives Gold MineOpen Pit Mining: Mining Performance

Change of focus

● Margin not tonnes

Open Pit Mining: Mining Performance

600350 000

Open Pits MiningOz US$/Oz

● Margin not tonnes

● Only mining to mill capacity

● No Heap leach 500

600

300 000

350 000

● Owner mining400

200 000

250 000

4 pits in operation

● Mars – Ore delivery

● West Idough – Ore delivery 200

300

150 000

● West Idough – Ore delivery

● Neptune – Pre-strip

● Redback – Pre-strip 100

200

50 000

100 000

Invincible project is next large pit 0-

C2010 C2011 C2012 C2013Gold Mined (Oz) Direct mining cost (US$/Oz)


St Ives Gold MineOpen Pit Mining

Owner Mining Fleet

● 16M BCM capacity

Open Pit Mining

● 5 Digging Units

● 12 trucks 90 – 150t Capacity

D ill D & A ili fl t● Drills, Dozers & Auxiliary fleet

● Additional hire fleet as required

Geographic spread

● Multiple pits

D i k d l● De-risked plan

● Centralised Workshops

● Pit Haul to local ore padp

● Road Train haul to Lefroy Mill


St Ives Gold MineOpen Pit Mining: NeptuneOpen Pit Mining: Neptune

Stage Ore Tonnes

Gold Grade(g/t)

Contained Gold (oz)

Neptune Stg 1 305,183 6.38 62,570

Neptune Stg 2 1,716,523 2.02 111,536

101koz101koz

Neptune Stg 3 387,854 6.17 76,922

Neptune Stg 4 196,107 5.02 31,657

Neptune Stg 5 1,238,412 2.55 101,452

TOTAL 3,844,079 3.11 384,137

● High grade Open Pit● 80m Deep● Palaeochannel Ore body

63koz31koz31koz

● Palaeochannel Ore body● Mining Commenced Q4 2013● First Ore Q3 2014 112koz112koz 77koz77koz


Processing


St Ives Gold MineProcessing

● Gyratory Primary Crusher - Produces P100 of 210 mm at 800 tph● SAG mill (10.97 m X 6.10 m) - Produces a P80 of 125µm at 590 tph

Processing

● Gravity Circuit - 2 Falcon concentrators, 2 Jigs, regrind mill and ILR reactor. ● Leach - 5 conventional leach tanks● CIP Circuit - 6 Stage Carousel Pump Cell arrangement ● AARL Elution Circuit - Capacity of elution circuit 5 tons of carbon per day● Electro winning - 5 electro- winning cells (1x dedicated to gravity)● Tailings disposal - Adequate capacity, and LOM developing In-Pit Disposal


St Ives Gold MineProcess FlowsheetProcess Flowsheet


St Ives Gold MineProcessing $

● Nominal throughput of 4.8 mtpa

● Single SAG mill

Processing

25.00 1 300 000 Lefroy ProductionTonnes US$/t

● Single SAG mill

● CIP Circuit

Recoveries in excess of 93%

20.00

1 200 000

1 250 000

Gravity recovery ~35%

Mill availability ~ 94%

55 t ff l t

15.00 1 150 000

● 55 staff complement

10.00 1 100 000

5.00

1 000 000

1 050 000

-950 000 C2013 Q1 C2013 Q2 C2013 Q3 C2013 Q4 C2014 Q1

L f T P d US$/t


Lefroy Tonnes Processed US$/t

St Ives Gold MineProcessingProcessing

3 0095 0

g/t% Recovery

2.50

3.00

94.0

94.5

95.0

2.00

93.0

93.5

94.0

1.50

92.0

92.5

0 50

1.00

91.0

91.5

-

0.50

90.0

90.5

C2013 Q1 C2013 Q2 C2013 Q3 C2013 Q4 C2014 Q1


C2013 Q1 C2013 Q2 C2013 Q3 C2013 Q4 C2014 Q1

Processing Recovery (%) Processing Grade (g/t)

Exploration


St Ives Gold Mine

Regional Geology


St Ives Gold MineGeology: Deposit Size & DistributionGeology: Deposit Size & Distribution● More than just a single mine

49 Open Pits to date 15 UG mines to date Junction Area ~2.1 Moz Argo- Athena- Hamlet ~3.7 Moz Greater Revenge Area ~3.4 Moz

Vi A 3 M

3.7Moz Victory Area ~3.7 Moz Invincible Potential +1 Moz

● Multiple World Class Deposits Victory 3 7 Moz

Revenge 3.4 MozInvincible + 1 Moz ? Neptune 0.4 Moz ?

● Multiple World Class Deposits 40 km Strike Length 127,000 hectares

● Multiple Styles

Victory 3.7 Moz

Argo, Athena –Hamlet 3.7 Moz

Vein/Lode Hosted Systems• Laminated Veins• Extensional Veins,

Breccia's

Junction 2.1 Moz

2.1Moz• Breccia's,• Stacked Veins

Supergene Enrichment Disseminated Gold


Palaeochannel Gold● Extensive highly prospective tenements

Exploration: Tenements & Prospectivity

St Ives Gold Mine

1. Speedway Trend

Explore Strike/Dip Trend Proximal to Invincible

Exploration: Tenements & Prospectivity

Tenement TypeExplorationMiningExplore Strike/Dip Trend Proximal to Invincible

2. Indefatigable

Follow up Orpheus, Pandora

3333

MiningMiscellaneousProspecting

3. Kambalda West Tenements

High Milestone Targets to Advance

4 Pilb il P t

11116666

4444

4. Pilbailey Prospect

Invincible Analogue on Merougil & BLF Contact

5. Palaeochannel Project55552222j

Site Wide opportunity

6. Project X

Potential UG Mine North of Leviathan


St Ives Gold MineExploration: InvincibleExploration: Invincible

• Within operating radius of existing operations• Within operating radius of existing operations

• Limited to lake disturbance only


Exploration: Invincible

St Ives Gold MineExploration: Invincible

• Entirely on lake Lefroyy y

• Requires causeways for access

• Significant strike length

59

• 9km of causeway development completed in 2013


St Ives Gold MineExploration: Invincible Ore body

● Large high grade open pit

● Wide mineable zones (up to 20m)

Exploration: Invincible Ore body

● Robust margin project

● 2014 drill focus● Wide mineable zones (up to 20m)

● Provides optionality for SIGM

● 2014 drill focus

UG position

Pit expansion

Invincible Far Invincible Far SouthSouth

InvincibleInvincible

Bl k M d l C l C d d b A G d


Block Model Colour Coded by Au GradeHot Colours = High GradeCold Colours = Low Grade

Exploration: Invincible Exploration Potential

St Ives Gold MineExploration: Invincible Exploration Potential

2,250m

11m @ 11.2g/t

NW SE

21m @ 3.0g/t

300m

Model Limit

@ g

17m @ 11.4g/t 12m @ 3.0g/t17m @ 7.6g/t

10m @ 11.0g/t

6.5m @ 4.4g/t

The relevance of scale26m @ 6.5g/t

(Deepest Hole)

21m @12.8g/t

The relevance of scale… (Deepest Hole)

61

Argo HamletAthenaGold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

St Ives Gold MineExploration: Invincible Gold Vein in Core Drilled fromGold Vein in Core Drilled from

978m Hole Drilled Down the Orebody (Dip Parallel)

● Testing for;

Exploration: Invincible Gold Vein in Core Drilled from Gold Vein in Core Drilled from Deep Hole @ InvincibleDeep Hole @ Invincible

● Testing for;

1. Host rock continuity

2. Depth extensions of mineralisation

● Results:

1. 978m of host rock

2 M lti l i li d i t ti2. Multiple mineralised intersections

• 25.6m @ 6.5g/t Au from 927.5m

● Implications:p

Doubles known vertical extent of mineralisation

From 360m to 820m

Demonstrates active system at depth

Supports strategy to test depth extensions & infill

62

A Game Changer?Gold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

St Ives Gold MineExploration: Project Generation – Speedway Trend

● New under-explored trend

T S2m @ 8.3 g/t (56m)

1m @ 21.8 g/t (49m)

Exploration: Project Generation Speedway Trend

● Tenure Secure

● Proven Capacity to deliver major depositsdeposits

● Evidence of gold along 22 km strike

● Rigorous staged exploration

2m @ 24.3 g/t (24m)Gold Nugget from ~85m Gold Nugget from ~85m

Downhole in RC Drilling @ Downhole in RC Drilling @ HeraclesHeracles

programmes

● Ground magnetics used to define b d k t t

7m @ 7.4 g/t (254m)

bedrock structure

● Multi- elements to determine rock types & anomalism

4m @ 8.8 g/t (78m)

& anomalism

● Reconnaissance drilling to define anomalism and targets

Rock chip 20.8 g/t


St Ives Gold MineExploration: Invincible Camp Potential Ground Magnetics MapExploration: Invincible Camp Potential Ground Magnetics Map

Santa AnaSanta Ana

Invincible OP ProjectInvincible OP Project

SplaysSplays

Invincible SouthInvincible SouthInvincible South Invincible South trendtrend

Invincible South target

64

Space For Several Million Ounce + DepositsGold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

St Ives Gold MineExploration: Palaeochannel Project

Site Palaeochannel Network and

● Opportunity to identify & develop palaeochannel resource

M k ’ f t t d h l t t it

Exploration: Palaeochannel Project

Current and Historic Mines

● Many km’s of untested channels present an opportunity

● Multiple palaeochannel mines operated

● Deliver high grades

ThundererThunderer

NeptuneNeptune● Palaeochannel network identified

● Drill extents vary from close spaced around resources to wide

d (320 160 ) i th

AfricaAfrica

spaced (320m x 160m) in other areas

● Opportunity to explore new low cost mining techniques

● Scoping study underway & resources to test targets

ArgoArgo

Typical Channel Section – Buried Channels Containing Gold Overlain by Barren Sediments


St Ives Gold MineExploration: Kambalda West Acquisition

● Highly prospective ground acquired Q4 2013

● ~27 000 Hectares Increased SIGM Landholding by

Exploration: Kambalda West Acquisition

● 27,000 Hectares, Increased SIGM Landholding by

~27%

● Encompasses and Extends Land Package around

Cave Rocks Mine

● Soil sampling programme completed end 2013

● Ground magnetics in progress 2014

Jonah Jonah DamDam

● Ground magnetics in progress 2014

● Multiple targets for immediate follow up

● Jonah dam – target initial resource

Cave Cave RocksRocks

Multiple Multiple Anomalies Anomalies ––

GGg

Strike extension from cave rocks

● Drilling Scheduled for H2 2014

20ppb+ Gold in 20ppb+ Gold in SoilsSoils


St Ives Gold MineExploration: Cave RocksExploration: Cave Rocks

● Open pits - WMC

0 5 b d

1,000m

E40s

● 0.5 moz ore body

● Open at depth & on strike

● Narrow high grade veinsNarrow high grade veins

● Significant regional growth

opportunity

E80sE70sE50s

“GAP” E60sE70s

Targeted Down Dip Extensions of Known Lodes


of Known Lodes

Further Opportunities


St Ives Gold MineFurther Opportunities: Response To Lower Gold Price

● Planning changes

Further Opportunities: Response To Lower Gold Price

● Restructuring the cost base● Planning changes Value based assessment & ranking of

projectsStrategic scenario analysis

● Restructuring the cost base Organisational restructure Reviewed & renewed contracts

& Strategic scenario analysis Consideration of reduced mill

throughput optionsSi lifi ti h

Prudent cost & capital management● Production quality

Dilution and recovery improvements Simplification approach

● Exploration Focus on delivery of high value

Productivity driving cost improvement Disciplined adherence to plan

discovery

69

Focus on Margin and Cash Flow, Not Ounces For Ounces SakeGold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

St Ives Gold MineFurther Opportunities

Productivity

Leveraging existing processes to deliver value


Quality

Doing the job wellLeveraging existing processes to deliver value

● Open Pit

Consistent mining volumes

Doing the job well

● Open Pit

Reducing damage

Focus on single large pit

Targeting +5% improvement in unit rates

U d d

Optimisation of Drill & Blast

Dilution & ore recovery

U d d● Underground

Effective utilisation of fleet

Harness synergies with contractor

● Underground

Stope performance

Backfill optimisationy g

Improved mining layout

● Processing

p

● Processing

To be focused on efficient throughput

In pit tails reducing TSF requirement

Surface Haulage optimisation

Maintain high recoveries

Consistent delivery

70

Surface Haulage optimisation

Doing Things BetterGold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

St Ives Gold MineFurther Opportunities

Invincible open pit project

A new flagship open pit provides opportunity for change


Extend existing mines

Keep current mines producing beyond current lifeA new flagship open pit provides opportunity for change

● Large multi year project

● Single open pit ore source

Keep current mines producing beyond current life

● Athena

Calisto & Europa extensions

● High margin / High Cashflow project

● Underground potential

● Neptune

Optimise future stages

N th t i● Strike extension potential

● Provides time for further exploration success

North extension

● Cave Rocks

In-mine extensions

Kambalda West new discoveries

● Hamlet

Optimise mine design for quality & productivity

71

Leverage Existing AssetsGold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

St Ives Gold MineFurther Opportunities: Realising Value from Non-Core Assets

Beta HuntA i ti i k l/ ld i ithi th St I l th t tl i d b S lt L k Mi i

Further Opportunities: Realising Value from Non Core Assets

An existing nickel/gold mine within the St Ives lease that was recently acquired by Salt Lake Mining

● Sale of gold rights

Project did not meet Gold Fields returnsj

Lower ranking exploration target

Salt Lake Mining able to progress gold & nickel mining project

● Maintaining returns

Sale price (A$2m)

Toll treating of ore opportunity Toll treating of ore opportunity

Royalty on gold production of 6%

● Assessment of other similar opportunities

Eg. Nickel rights

72

Realising Value From Non Core AssetsGold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

St Ives Gold MineCreating Our Own Future

● Maintain scale of cash flow

AIC targeting sub US$1,050 /oz

Creating Our Own Future

g g

Achievement of +15% FCF margin

Gold production around 400,000 oz pa

● Operational philosophy pivotal on delivery and value margin

Focus on value not just ounce production

Simplification of site

Reduced mill throughput

● Exploration

Adequately funded & focussed to deliver high value discoveries

Extend life of existing mines

Discover new projects of suitable scale and margin

73

Maintaining Strengths And Mitigating WeaknessesGold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

St Ives Gold MineConclusions

• Relentless focus on margin and cash flow

Conclusions

• No ounces for ounces sake

• Situated in a highly prospective region for further gold discovery

• Excellent exploration successes over many years

• About to develop a major new ore body which will improve margins

• Towards a sub US$1,100/oz cost profile producing ~400 Koz p.a. mine

74

A Great Long-Term AssetGold Fields Australia Site Visit: St Ives Gold Mine | Graeme Ovens | 15 July 2014

Gold Fields Australia Site Visit: St Ives Gold MineGRAEME OVENSGRAEME OVENSGeneral Manager15th July 2014

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Gold Fields Australia Site Visit: St Ives Gold Mine · 2014. 7. 15. · WA 1st Class Mine Managers...

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