Massawa Site Visit January 2018

Transcription

1 Massawa Site Visit January 2018 Randgold Resources project location SENEGAL Teranga N Yatela Sadiola MALI Kanoumba Permits Area (km²) Expiry Date Mining Code Kanoumba May Dalema July Bambadji 236 waiting for new convention 2016 Total 1066 Massawa Dalema Bambadji Major structures Gara Yalea Segala Tabakoto Gounkoto 100km

2 Resource Triangle Q1-3 Badon Batholith Sabadola Niakifiri deposit Delya Matiba KB & Kaviar Kawsara Kaliana Massawa 10km 20km? Distance from Plant Saraya Granite Target 10km The Massawa story Q Q1 Improved modelling in the CZ and the addition of Main 40% increase in grade from drilling in CZ. 400koz short of the Randgold filter for the project Need to generate and identify further opportunity to add to the portfolio Q2 Pilot plant drilling commenced. Aim to generate 10t of material for metallurgical testwork 3 out of 4 drilled out. Sterilisation drilling commences At trenching confirms economic mineralisation over 600m strike with follow up drilling initiated. Further step out work to extend the system to North Opportunity identified at Delya over 1.8 km of strike Ramping up exploration program to identify potential to the feasibility. Q3 Generating a pipeline of satellite deposits Ore reserve up to 2.7Moz and just under 20% IRR Firmed up the CZ model with encouraging results from the Pilot Plant test work. sitting at 560 koz Oxide opportunity identified at key targets

3 target from discovery to deposit Main 3D Bloc model NE 40 x 40 infill Limit of FWOZ $1000 whittle SW Q1 Result highlights include: 10.6 g.t from 94m (SFRC111) & g.t. from 86 m (SFRC113) Tested open HG below $1000 whittle. 1.5km Section schematic of main HG shoot: HW Mafics Prospective inflection /Shallow angled HWS. Potential structural Intersection. HWS Open at depth: Conceptual targeting HG Shoot 70 RL Steep geometry HWS closes off Mineralisation Strong alteration and strain FW Gabbro Updated resource: Resource, step out exploration RC and DDH and MET drilling program completed in Q1. High grade shoot confirmed to close at 70 RL related to steep geometry at southern Pit. Potential at depth. Drilling completed and resource brought into LOM. $1000 Whittle 2.9g/t. Free milling ore. North Delivered into portfolio NNE Phased step out drilling Q4 $1000 Pitshell SSW SFDDH g/t (HWOZ + MOZ) 3.21g/t Au (MOZ) SFRC277 2g/t Au (HWOZ) incl. 3.78g/t Au $1500 Pitshell Q2 TRENCH PROGRAM Successful mapping and trenching program delineated the North system at surface to 100m spacing. Q3 RC & DDH Phased drill program completed over 600m strike of higher grade material. Q4 Phased step out drill fences over 4km of open northern strike extension (Matiba Target)

4 Delya target, geologic setting.. Limit of Permit New interpretation from MAG and EM highlights regional geologic setting for Massawa and Delya mineralisation Delya Mineralisation modelled to develop at major stratigraphic margins. Gabbro & volcano-clastics in HW and sediments in FW. Au Related to strain. Delya and strike extensions sit to the east of a resistive stratigraphic boundary as Massawa sits to the west. Subparallel mineralized regional structures to the east, including the Lafia shear zone (Makabingui gold deposit) Kaliana Implication is that the Massawa and Delya structures are open to the south and north respectively. Massawa NZ Massawa CZ 5km Target Delya A new satellite resource? Q2 Delya Main Inferred Resource 3km of strike potential identified. Phased drilling planned to establish continuity and metallurgy of Delya ore. Q3 RC & DDH Phased drill program completed over 1km. 27 RC holes for 2822m. High grade shoot & shallow oxide potential. Strong oxidation down to 40m, Fresh is refractory. Q4 Test and bring in oxide potential to LOM and identify open opportunity along strike to NE.

5 Delya South Open oxide potential DLRAB030 DLRAB049 DLRAB039 A (SW) 9m@3.44g/t 6m@2.76g/t B (NE) 1.8km 1km DLDDH006 Drill fences bring the Delya system down to 300m spacing Q3 Exploration 5 RC drill fences for 1733m delineated the Delya system to approx. 300m spacing. System open 500m to the SW, delineated by strong soil Au.1733m Q3 Q4 Preliminary observations confirm the structure with the hanging and footwall stratigraphy and alteration observed at Delya Main. Positive results expected. Second phase RC and trench program Q4 to bring to 100m spacing. Oxide potential for free milling ounces Massawa feasibility Pilot plant 1-4 Pilot Plant Blocks 1-4 completed, aim to generate 10 T sulphide material for processing Higher resolution drilling and improved geologic model Expected to significantly increase the grade and reduce the tonnes Massawa story: Increase in ounces may come from the positive grade reconciliation in the CZ Flitch and sections show significant difference in the lode contacts Development of geologic model increasing resolution on controls to mineralisation. Implications for future targeting 750m Plan map of Central zone Pit (160m RL) $1000 pit Plan map of PP1 & PP2 modelled ore

6 Metallurgy Gravity and free leaching ores Central Zone Pit Metallurgy Pilot Plant Runs 1 & 2 at ~ 2.5 T sulphide material Results confirm high gravity of ~50% Overall recovery after leaching gravity tails in excess of 80% UFG of the Central Zone concentrate shows recoveries between 40 and 50% Concentrate from more refractory northern pit area confirmed to be amenable to the BIOX process Process route has been simplified to whole ore leach and BIOX Analysis of final Leach/ BIOX metallurgical contact for ore processing underway Metallurgy Main full hydrometallurgy testwork completed Confirms low gravity/ free leaching Py dominated ore Final overall leach recovery 91% oxide & 89% sulphide North BRT leach completed Initial leach 92% oxide & 84% fresh Full metallurgical testwork currently underway to optimise recoveries and complete comminution tests Plan map of Central zone Pit (160m RL) PP1 PP2 PP3 PP4 750m Metallurgy BIOX North Zone Pit Metallurgy Phase 2 of BIOX pilot plant tests underway Optimized flotation confirms float recovery >90% Phase 2 BIOX pilot plant due to run in Q1 is expected to confirm high sulphide dissolution >95% Overall NZ BIOX recovery projected in the high 80% s Delya Metallurgy Scoping BRT confirm refractory nature of Delya sulphides Float and BIOX BAT tests currently underway are expected to confirm a similar overall recovery to the NZ pit Two oxide BRT indicate >90% recovery Full oxide BRT campaign underway to improve sample representivity North Zone Pilot Plant lab setup and course gold observed

7 Environmental and social Baseline studies and ESIA impact Environmentally pristine site influx of people will be greatest impact In the catchment of the Niokolo-Koba National Park 30km downstream complications due to impacting ecology with construction, influx of people still the largest impact. Tinkoto, artisanal village is the closest to the project 6km from Massawa orebody people, 30% Senegalese, 70% foreigner. Low skills and education levels, young, male dominated, living in low level of infrastructure Social impact assessment underway Environmental Geochemistry Majority of tailings material and all waste rock has a low risk for acid mine drainage Concentrate samples indicate potential for acid mine drainage As in float tails with static leaches above guidelines Good understanding of the risk will guide Phase 2 geochem tests and mitigation measures Massawa feasibility progress Q Q Q Q NZ Pilot Plant & Delya BIOX Campaigns Confirm the sizing of BIOX plant Metallurgy plant design CZ Pilot Plant Campaigns Flotation optimisation CZ concentrate trade-off studies gravity/leach - Biox Final process route and TSF disposal strategy TSF & Dams design Surface water management & pit dewatering strategy Final Feasibility CZ resource drilling Updated CZ resource model Pollution modelling and mitigation Exploration drilling on satellites Mining method trade off Determination of front end plant size ESIA finalisation

8 Kanoumba permit Summary Q3 into Q4 strike extentions & splays: Makana Phased diamond drilling program. Exploration priorities Matiba & Makana 2 North : 30 x 30 RC drill program brings a further 600m strike of the system to indicated. Highlights include 5.12 g/t Au and 3.36 g/t Au. Open to the north and at depth. Step out exploration drill fences planned Q4. KB & Kaviar Strong Au anomalism, field work and updated model confirm upside potential on multiple NE and NNE structures. First phase DDH program and RC Q4. Badon Batholith? Sabadola Niakifiri deposit Matiba KB & Kaviar Kaliana Kawsara Limit of Permit 10km Distance from Plant Massawa 10km 20km Delya Saraya Granite Delya target: Phased RC & DDH drilling program delineated high grade shoot with oxide and strike potential of the Delya structure (2km). Result highlights include 14m@ 5.29g/t, 9.66g/t, 5.73g/t. Aggressive exploration program Q4. Massawa feasibility program: Pilot Plant program completed with development of higher resolution geologic model. Oxide and sulphide potential open to the NE of current resource. (Kaliana) Kawsarra Updated geologic model with strong exploration upside, km scale Au and As geochem anomalism. Trenching and drilling program. Exploration upside. Limit of Permit Matiba Makana 2 Kaliana KB & Kaviar Prospective ENE and NE structures Structural and alteration complexity around a granodiorite intrusion multiple models. Connected to Major gold bearing structure Kilometer scale Au in soil anomalism largest in Randgold portfolio. Confirmed Au & As anomalism at Kaviar. New model not significantly tested. North Main Kaviar Massawa CZ Kawsara Regional structural complexity Connected to Major gold bearing structure Km scale As + Au in soil anomaly Mako volcanics, west of eastern carbonaceous pelties and turbidites. Preferential host lithology. Prospective phase of intrusive comparable to Massawa. KB Kawsara Matiba Modelled NNE strike extent of System Connected to Major gold bearing structure Partially blind target with modelled NE splays (Makana 2) 4km of open strike 4km

9 Community Labour: employees come from the surrounding villages / region Social: frs CFA spent since millet machines for 5 villages around Massawa for the ladies 3 boreholes water for Tinkoto and Mandinkole villages 4 equipped classrooms (computers and solar panels) Emergency room at Kédougou hospital 2 classrooms at Karakaene Various actions in the surrounding villages Scholarship for students at Dakar university Equipment at Kédougou hospital Various social actions at Kédougou Nursery trees at Saraya Tamba 7% Saint Louis Kolda 1% Distribution of Randgold employees in region Thies 2% Ziguinchor 1% Dakar 9% Diourbel 2% Fatick 0% Kaffrine 1% Kaolack 10% School at Tinkoto 2 water boreholes at Tinkoto Kedougou 63% Disclaimer CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the historical information contained herein, the matters discussed in this presentation are 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, and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, the estimation of mineral reserves and resources, the realisation of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination and reserve conversion rates. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as will, plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or state that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Assumptions upon which such forward-looking statements are based are in turn based on factors and events that are not within the control of Randgold Resources Limited ( Randgold ) and there is no assurance they will prove to be correct. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Randgold to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to mining operations, including political risks and instability and risks related to international operations, actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, as well as those factors discussed in Randgold s filings with the US Securities and Exchange Commission (the SEC ). Although Randgold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Randgold does not undertake to update any forward-looking statements herein, except in accordance with applicable securities laws. Randgold reports its mineral resources and mineral reserves in accordance with the JORC 2012 code. As such numbers are reported to the second significant digit. They are equivalent to National Instrument Mineral resources are reported at a cut-off grade based on a gold price of US$1 500/oz. The reporting of mineral reserves is also in accordance with Industry Guide 7. Pit optimisations are carried out at a gold price of US$1 000/oz, except for Morila which is reported at US$1 300/oz. Mineral reserves are reported at a cut-off grade based on US$1 000/oz gold price within the pit designs. Underground reserves are also based on a gold price of US$1 000/oz. Dilution and ore loss are incorporated into the calculation of reserves. Cautionary note to US investors: The United States Securities and Exchange Commission (the SEC) permits mining companies, in their filings with the SEC, to disclose only proven and probable ore reserves. Randgold uses certain terms in this annual report such as resources, that the SEC does not recognise and strictly prohibits the company from including in its filings with the SEC. Investors are cautioned not to assume that all or any parts of the company s resources will ever be converted into reserves which qualify as proven and probable reserves for the purposes of the SEC s Industry Guide number 7.