Mineral Resource Management. Rod Quick Project Evaluation

Transcription

1 Mineral Resource Management Rod Quick Project Evaluation

2 Mineral resource management at New Barrick Manage the orebody from gold in the ground to value for all stakeholders only possible through ownership of the orebody MRM are empowered on the mines to own the orebody but are held accountable for the orebody understanding and estimation Responsible for resource sustainability and thus responsible for feasibility and replenishment gatekeepers to ensure reserves pass our filters We are in the consumptive business and if we do not replenish we will die Superior orebody knowledge minimizes technical risk and ensures optimised mine plans Long term planning is critical allows us to be pre-emptive and not reactive

3 Kibali a case study of getting the geology right First visit in 2006 identified significant mineralisation and alteration system with folding and plunging shoots in interesting rocks Used BIF, chert, and carbonaceous argillite markers and stratigraphic younging direction and changing orientation of bedding to model folding Pale coloured ankerite, and/or siderite, quartz, and sericite alteration is the widespread alteration assemblage. ACSA _A An overprint assemblage of texturally destructive siderite and pyrite with minor quartz. ACSA_B Disseminated magnetite within ACSA-A and B altered rocks can be used to map the extent of BIF horizons in the protolith. Principal lodes are hosted in vein and disseminated pyrite associated with the ACSA-B assemblage. Gold generally occurs as inclusions in both disseminated and vein pyrite, and small grains along the margins of pyrite. Curviplanar mineralized BIF extends: around the hinges of the folds, locally along the limbs of the folds Only rarely extends along the axial surfaces of the folds, The resulting lodes have complex shapes, but an overall northeast plunge parallel to the fold axes Understanding the controls to mineralisation led to efficient conversion of resource to reserve within 1 year we doubled the reserve from 4g/t to 4.2g/t As of Dec 2017 we have added 3.7g/t to the acquisition reserve.

4 Kibali a case study of getting the geology right Distribution of ounces per vertical meter drove the decision of shaft access Geological, resource and geotechnical model defined the mining method Understanding of rock hardness and gold deportment drove metallurgical response and process plant design Hydration and oxidation of siderite alteration explained backfill properties Defining the geometry and character of the orebody allows for infrastructure decisions that enhance value 5,800 5,700 5,600 5,500 5,400 5,300 5,200 5,100-50,000

5 Strategic filters for investment Striving to be the world s most valued gold mining business By finding, developing and owning the best assets, with the best people, to deliver sustainable returns for our owners and partners FILTERS It applies principally to gold (copper) It is located in a world class geological gold district We have the right to mine and repatriate profits It fits our values in respect to social license, political risk, environmental compliance, manage closure liability We have active management participation It enhances our strategic partnering network Tier 1 A reserve potential greater than 5 million ounces of gold and at least a 15% IRR at the long term gold price Tier 2 A reserve potential of greater than 3 million ounces of gold and least a 20% IRR at a long term gold price

6 A large pipeline of potential projects Alturas Scoping Prefeasibility Feasibility Execution/Extensions Pueblo Viejo expansion Goldrush Deep South Loulo 3 OP-UG Massawa Turquoise Ridge Ikamva Kalimva Zaldivar Expansion Norte Abierto Yalea Gara Kibali

7 Goldrush Project potential Tier 1 asset Drill program from decline will allow optimisation Orebody optimisation in indications are that infill drilling results in increase of grade and ounces Geotechnical modelling Mining method optimisation Backfill optimisation Material handling Mining Method(s) Orebody Access Feasibility (completed 4Q17) Underground only Refractory Ore Transport (to processing) Processing Initial Capital Est. Production COS per ounce ~$749 AISC 1 per ounce ~$643 Declines from Cortez Hills Operations Trucks Goldstrike Roaster ~$1.0B ~ 500K oz/yr 1. This is a non-gaap reporting measure with no standardized meaning under IFRS.

8 Massawa feasibility project Interim resource model update highlights significant shift in grade distribution within CZ orebody higher grades in the southern portion and lower grades in northern half Revised financial models support a robust project at $1,000 and current gold prices Potential exists to add resources to the mine life from extensions to existing pits, as well as advanced satellite targets which are showing economic potential Metallurgical recovery models updated and recovery model curves assigned to block model to report recoverable gold within pit optimisations Sofia North recovery optimised through addition of Aachen oxygen injection technology follow up campaign returned 2.6% higher recovery for fresh material now modelled at 85.5% Construction capital cost remains largely in line with previous estimate at $415 million Initial steps of public participation process undertaken Bambaraya (18 km) Resource Sofia (10.7km) 2.9g/t Ore reserve NPV and IRR Sensitivities to gold price Option $1 000/oz $1 200/oz $1 400/oz Base case Tina Resource Delya Main (18km) 4.8g/t Ore reserve KB & Kaviar Under evaluation Delya Strike Extents Under evaluation North Zone 4.5g/t Ore reserve Central Zone 3.4g/t Ore reserve Central Zone Extensions Under evaluation NPV $154m $414m $670m IRR 15% 29% 41%

9 Loulo 3 scoping study Preliminary economic assessment completed with potential for expanded pit and underground project Open pit pushback forms part of existing Loulo ore reserves Drilling beneath pit focused on high grade shoot below southern section of pit within MZ2 structure Underground mineralisation 32% drilled to a level that would support inferred mineral resources 68% defined by drilling and confirms continuity of mineralisation Unclassified material included in evaluation for scoping purposes Composite metallurgical samples from 32 drill intersections returned average leach recovery of 85% L3DH g/t L3DH g/t Target Summary: L3DH g/t MZ1 L3DH g/t MZ1 Target (48 drill holes) MZ2 Target (18 drill holes) Current depletion 200m L3DH g/t MZ2 Q4 Proposed Drilling Previous Drilling Notes: Target summary from diamond drilling at the spacing shown. There are insufficient exploration results to report a resource, and it is uncertain that further exploration will result in a resource estimate. Long-section with Q3 drilling N US$ 1000/oz pit shell US$ 1500/oz pit shell L3DH g/t L3DH g/t -280m RL Q4 drill limit Gram.Metre Value <15

10 Yalea +11g/t added to the mine plan YaDH g/t TW Yalea Transfer Zone extra ounces YDH g/t TW YaDH g/t TW Long-section with Q3 drilling N YaDH g/t TW YaDH g/t TW Purple Patch Yalea Central Deep extra ounces YDH g/t TW 100m YaDH g/t TW YDH g/t TW High Priority Targets 1000m Conceptual Targets (New) 280m Conversion Shoot target Proposed ADGC Drilling 500m Proposed Exploration Drilling Conversion and Exploration Target Summary: Yalea Transfer Zone (15 drill holes) Yalea FW Panel (15 drill holes) Size: 500m strike x 100m VD Size: 1000m strike x 280m VD Wt. Av. Grade: 13.3g/t (range 5.7 to 19.9g/t) Wt. Av. Grade: 4.1g/t (range 0.14 to 8.41g/t) Av. Thickness: 11.4m (range 2.4 to 21.7m) Av. Thickness: 5.3m (range 2.5 to 11.4m) Yalea North targets Gold g/t >8g/t 4-8g/t 4 3g/t 3 2g/t 2-0.7g/t

11 Turquoise Ridge1, Minex Drilling1,2 North Zone Getchell extended to NW by 125m TS m at 16.9 g/t TS m at 11.1 g/t Footwall Pond Extension extended to W by 55m and N by 35m TS m at 18.2 g/t, 4.7m at 9.6 g/t Bass Pond East project extended to NE by 120m TS1804 A - 6.7m at 15.3 g/t TS1804B 3.8m at 13.9 g/t Deposit remains open in multiple directions further drilling planned SHAFT 2 South Zone View to the southwest SHAFT 1 SHAFT 3 FWP Extension & BPE Projects Getchell Fault Resource Conversion TS1803 TS1804 TS1802 2P Reserves 4 M&I Resource 4 North Zone TS1804A TS1804 B 1. For additional detail regarding Turquoise Ridge, see the Technical Report on the Turquoise Ridge Mine, State of Nevada, U.S.A., dated March 19, 2018, and filed on SEDAR at and EDGAR at on March 23, % Barrick owned 3. See Appendix B for additional details including assay results for the significant intercepts 4. Proven and Probable Reserves: 5.9Moz ( g/t); Measured and Indicated Resources: 1.5 Moz ( g/t). See Endnote #3

12 Kibali underground opportunities LOM design with 3000, 5000 and 9000 Lode opportunities Sessenge open pit 300koz $1000/oz design KCD Pushback 3 330koz $1000/oz design KCD open pit PB#1 North 3000 Lode up plunge extension PB#2 2g/t (100koz) UG 4.97g/t (335koz) Ave drill intersection 11.2g/t 9000 Lode up plunge extension Sessenge Link 2.61g/t (345koz) Drill holes planned Total Current Potential 2.14Moz 5000 Lode down plunge 5.82g/t (1.36Moz) New assays intersection 5.3g/t

13 Kalimva-Ikamva justifies progression to prefeasibility study Kalimva-Ikamva drill plan Average recovery of 90% from BRT in fresh Ikamva $1200/oz pit N Phase 4 (109 RC and 8 DDH) drilling in $1200/oz pit shell completed at Kalimva and Ikamva. Pit optimisations and preliminary economic assessment complete Infill drilling confirms continuity with improved average intersection widths and grades than predicted by the previous model Results return 34% increase in grade and 19% increase in tonnes to deliver a 59% increase in ounces compared to previous model in a $1000/oz optimisation pit shell $1000/oz optimisation pit shell contains 5.6Mt at 3.1g/t for 559koz defined to a sufficient level to support an inferred resource KVRC g/t from 44m incl 4.18 g/t KVRC g/t from 46m incl 20g/t KALIMVA LONG SECTION LOOKING WNW KVRC g/t from 48m incl 22.59g/t Kalimva HG potential: down plunge target KVDD g/t and 1.79g/t KVRC g/t KVRC g/t incl 28.19g/t Lithology $1200/oz pit Quartz feldspar porphyry Banded iron formation Metasediment 400m Southern high grade domain KVRC g/t from 104m 100m Northern high grade domain Kalimva long section looking WNW

14 Organisational Flow Organizational structure enables communication flow Ownership of core competences through the entire organization EXPLORATION EVALUATION CAPITAL PROJECTS OPERATIONS

15 Appendix B Turquoise Ridge Significant Intercepts 1 Drill Results from Q Core Drill Hole 2 Azimuth Dip Interval (m) Width (m) 3 Au (g/t) TS TS TS1804A TS1804B All significant intercepts calculated as being >6 m and >7.7 g/t or >3 m and >15.5 g/t 2. Nomenclature for drillholes (i.e., TS1802) is described by TS (i.e., Turquoise Ridge Surface) followed by the year (i.e., 18 for 2018) 3. True width of intercepts are uncertain at this stage The drilling results for the Turquoise Ridge property contained in this presentation have been prepared in accordance with National Instrument Standards of Disclosure for Mineral Projects. All drill hole assay information has been manually reviewed and approved by staff geologists and re-checked by the project manager. Sample preparation and analyses are conducted in an on site laboratory with Quality Assurance/Quality Control procedures performed by an independent laboratory. Procedures are employed to ensure security of samples during their delivery from the drill rig to the laboratory. The quality assurance procedures, data verification and assay protocols used in connection with drilling and sampling on the TRJV property conform to industry accepted quality control methods.