South Deep: A World Class Ore Body In Perspective. Group Competent Person 7 April 2014

Transcription

1 South Deep: A World Class Ore Body In Perspective TIM ROWLAND Group Competent Person 7 April 2014

2 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 In particular, the forward looking statements in this document include among others those relating to the Damang Exploration Target Statement; the Far 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 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. 2

3 Agenda Agenda Regional and Local Geology Geological Modelling Inputs o o o 3D Seismic Survey Surface Drilling Programme Grade Control and Mine Exploration Drilling Geological Modelling Procedures Mineral Resource Estimation Mine Design and Planning Mineral Resource and Mineral Reserve Resource to Reserve Reconciliation Summary 3

4 Regional and Local Geology

5 Regional and Local Geology Depositional Environment Far West Rand Goldfield Blyvooruitzicht Elandsrand West Wits Line Goldfield West Rand Cons. Doornkop Cooke Section Ezulwini SOUTH DEEP Kloof Driefontein Mponeng Central Rand Goldfield South Deep A Unique Ore Body In An Area With A 60+ Year Production History 5

6 Local Geology Cross Section Of Ore Body (Linked To Mining Method) Subcrop 240m 240m 240m 240m WEST Base of Ventersdorp lava 4-West (4W) C4 3-West (3W) 2-West (2W) 1-West (1W) C3 C2 C1 EAST VCR 2m VCR MBT Targeted reef units 120m Vertical Target package: 2m m 40 70m 20 60m 20 30m MBB MIQ MIT MIB MAD MAC ED ECT ECMQ ECMC ECBQ ECB ECBAQ ECBA 16 Reef Units Reserve Tonnes 1,325Kt 68,895Kt 80,379Kt 48,988Kt 24,823Kt Reserve Grade 9.45g/t 5.5g/t 5.3g/t 5.1g/t 4.9g/t LoM Tonnage Make up: 18% of LoM tonnes 49% of LoM tonnes 22% of LoM tonnes 11% of LoM tonnes Mining Method: Horizontal destress; long hole stoping / drifts and benches 6

7 Ore Body Dictates Mining Method Reserve Designs In Section: Corridor 4 Bench Drift Section view without resource model C4 C3 C2 C1 7

8 Ore Body Dictates Mining Method Reserve Designs In Section: Corridor 3 Section view without resource model C4 C3 C2 C1 8

9 Ore Body Dictates Mining Method Reserve Designs In Section: Corridor 2 Section view without resource model C4 C3 C2 C1 9

10 Ore Body Dictates Mining Method Reserve Designs In Section: Corridor 1 Section view without resource model C4 C3 C2 C1 10

11 Geological Modelling Inputs

12 Geological Modelling Inputs De-risking The Ore Body 3D Seismic Survey (2003) ~20m resolution Covers the whole lease area south of the wrench fault. Used to confirm the base of lava position as well as major structures. Surface drilling ( ) (49,536m) 600m x 600m grid Used for facies boundaries, structural definition, stratigraphic modelling, assaying and resource estimation. LIB Drilling (Long Inclined Boreholes) (13,023m) 300m x 300m grid Used for structural definition, stratigraphic modelling, assaying and grade indication. Grade Control Drilling 50m x 50m grid Used for facies determination, structural definition, stratigraphic modelling, assaying and resource estimation. Cumulatively covers 78% of the next 4 years of planning Years Ahead of Current Workings Years Ahead of Current Workings Years Ahead of Current Workings. 0 2 Years Ahead of Current Workings. Good Reconciliation Between Resource Model And Mining 12

13 Geological Modelling Inputs 3D Seismic Survey Raw 3D Seismic data from all available data sets has been combined and reprocessed to produce a single consolidated seismic image of the subsurface strata The consolidated seismic volume extends 40km East West, 16km North South and reaches depths up to 7km below surface The accuracy of the seismic data has been confirmed by drilling results with the majority of reef intersections being within 20m of the modelled depth Base of Ventersdorp lava as per 3D seismic survey Base of Lava 3081m below surface Macro Geological Structure Confirmed 13

14 Geological Modelling Inputs Surface Exploration Drilling Drilling completed by GFI in 2013 (6 Year Project) The focus was on improving the confidence in the resource estimate south of the Wrench fault Destress & Massive Mine plan to C2020 Achieved agrid of approximately 600m x 600m A total of 49,536m were drilled during the project The project comprising 9 boreholes added 72 of 84 planned intersections resulting in 11,635 additional samples south of wrench (SoW) 50m x 50m grid drilling 300m x 300m grid drilling 600m x 600m grid drilling 14

15 Geological Modelling Inputs Surface Drilling Borehole depths varied between 2,400m and Surface Pretoria Group Base of Rooihoogte formation at 500mbc Chuniespoort Group Base of Black Reef Fm. at 1800mbc 3,400m below surface Up to 12 intersections per borehole, dependant on ground conditions and drill string integrity 3 clusters of 4 intersections each Short deflections intersected reef within a 5m radius Long deflections are 20m to 30m from the original intersection Long deflection Klipriviersberg Group Short deflections VCR at 3000mbc SD5 SD4 LD1 SD6 Upper Elsburg s SD3 SD1 SD2 Original Intersection SD8 SD7 LD2 SD9 Base of EC s at 3200mbc 15

16 Geological Modelling Inputs Surface Borehole o e Intersections s and Sampling Corridor 4 (E.g. Hole DP 25) Reef # of Samples Channel Width (cm) Grade (g/t) VCR m MBT MBB Sample sizes vary between 2cm and 60cm depending on the reef contacts. MIQ Number of units vary MIT depending on proximity to the sub crop and onlapping MAD relationships MAC within the wedge shaped ore body ED ECT ECMQ ECMC ECBQ ECB ECBAQ ECBA High sampling data volume and granularity per borehole 16

17 Geological Modelling Inputs Surface Borehole o e Intersections s and Sampling Corridor 3 (E.g. Hole DP 7) 10m Reef # of Samples Channel Width (cm) Grade (g/t) VCR MBT MBB MIT MIB MAD MAC ED DYKE Sample sizes vary between 2cm and 60cm depending on the reef contacts. Number of units vary depending on proximity to the sub crop and onlapping relationships within the wedge shaped ore body. ECMC ECBQ ECB ECBAQ ECBA High sampling data volume and granularity per borehole 17

18 Geological Modelling Inputs Surface Borehole o e Intersections s and Sampling Corridor 2 (E.g. Hole DP24 SD3) 10m Reef # of Samples Channel Width (cm) Grade (g/t) MBT MBB MIQ MIT MIB MAC ED ECT ECMQ Sample sizes vary between 2cm and 60cm depending on the reef contacts. Number of units vary depending on proximity to the sub crop and onlapping relationships within the wedge shaped ore body. ECMC ECBQ ECB ECBAQ ECBA High sampling data volume and granularity per borehole 18

19 Geological Modelling Inputs Surface Intersections s and Sampling Corridor 1 (E.g. Hole K1) 10m Reef # of Samples Channel Width (cm) Grade (g/t) VCR MBT MBB MIQ MIT MIB MAD MAC ED ECT ECMQ ECMC ECBQ ECB ECBAQ ECBA Sample sizes vary between 2cm and 60cm depending on the reef contacts. Number of units vary depending on proximity to the sub crop and onlapping relationships within the wedge shaped ore body. High sampling data volume and granularity per borehole 19

20 Geological Modelling Inputs Indicative Results Slides that follow show summarised results for 4 of the 16 Upper Elsburg units at South Deep (MBB, MIT, ECT and ECMC); (Approximately 70% of total Reserve). The grade and channel width data are provided as simple mathematical averages of the individual deflection values. In this form, the raw data cannot be used directly for estimation purposes and the application of relevant geostatistical techniques and kriging constrained within rigorously defined geological and resource models is essential. Bore Hole Data Raw Until Processed Within Array of 16 Discrete Resource Models 20

21 Geological Modelling Inputs Surface Drilling MBB Reef Borehole Channel Width (cm) Grade (g/t) MD MD DP DP DP DP DP KDP KMF DP DP KMF KMF K MD KMF KMF KMF KMF Current Holes Historic Holes 21

22 Geological Modelling Inputs Surface Drilling MIT Reef Borehole Channel Width (cm) Grade (g/t) DP DP MD MD DP DP KMF KMF K KDP KMF KMF KMF KMF KMF MD Page 22

23 Geological Modelling Inputs Surface Drilling ECT Reef Borehole Channel Width (cm) Grade (g/t) DP DP DP MD MD DP DP DP K KMF DP KMF KMF KMF DP KMF KMF KDP KMF MD

24 Geological Modelling Inputs Surface Drilling ECMC C Reef Borehole Channel Width (cm) Grade (g/t) DP MD DP DP MD DP DP DP KMF KDP KMF KMF KMF KMF K MD DP KMF KMF

25 Geological Modelling Inputs LIB Drilling The mine has supported an aggressive underground drilling program since mid-2009 to address the historically i low borehole data density which supported the earlier geological and resource models. Long Inclined Boreholes (LIB s) are drilled ahead of the current workings on an approximate 300m grid. All LIB drilling has been done post Gold Fields acquisition. 10 LIB s, totalling 7,213m have been drilled testing the Upper Elsburgs to the south of current workings. The VCR target t immediately adjacent (west) to current Elsburg mining i has been explored with an additional 9 LIB holes, totalling 5,810m. 25

26 Geological Modelling Inputs North ot of Wrench LIB Drilling gcampaign pag 9VCRLIB s drilled in 2012/ Upper Elsburgs LIB s completed; 8 more to be drilled in next 2 years. Grade control drilling is on plan in Corridors 1, 2, 3 & W & 87-2W ongoing. 200m OPS Plan Advance Drilling Designed To Pin Structure And Stratigraphy- 10 years ahead of mining 26

27 Geological Modelling Inputs Cross Section of a LIB Hole Looking East North North 95L 95L Wrench Fault 137m Wrench fault 137m 1,300m LIB hole drilled from 95L South Southintersecting the 137m upthrow Wrench Fault and confirming i position and throw of the Upper Elsburg reefs. Lava 350m right ihtlt lateral l movement 100m 100m 27

28 Geological Modelling Inputs Grade GadeControl to Drilling A planned drilling grid is targeted comprising in-stope and destress drilling and drilling from footwall infrastructure t up to 70m ahead of the current destress leading edge In-stope and footwall drilling is ongoing and the average drill density has been reduced from an 80m grid to a 50m grid Drilling from the destress stopes will be into both the hangingwall and footwall Grade Control Drilling Designed To Confirm Short To Medium Term Resource Model 28

29 Geological Modelling Inputs Grade Control o Drilling 7 year plan (provides high confidence) ce) 200m Outline of Area already destressed Drill hole density has been reduced from 80m to 50m in the last 5 years Virgin ground drilling done ahead of mining, covers a range of metres 62% of 7 yr plan is within the current destress area. 105L 100L 7yr OPS Plan Outline Planned GC drill grid Drilled Holes Drilled from destress Drilled from footwall Page 29

30 Geological Modelling Inputs Typical Grade Control o Drill Fan from Main Access Drive in the Destress ess Cut Side view Grade control drilling fan drilled from the two Main Access Development limits per destress cut Average length of hole = 85m Rotated view Page 30

31 Geological Modelling Procedures South Deep Gold Mine

32 Geological Modelling Procedures Improvement e in Accuracy and Confidence in Modelling 4 Units Shore Line Composite Units Singular Subcrop Point Gold Fields acquires South Deep Gold Mine Units 2008 Re aligned Subcrop Positions LIB Drilling 16 Units Campaign Started Singular Subcrop Infill Drilling (GC) Point Campaign Started Surface Drilling Campaign Started Units Palinspastically ll Reconstructed Depositional Model 16 Units Kriging of Channel Widths & Dynamic Modelling 2013 Detailed reserve designs for Current Mine only. Future mine estimated using the Bayesian methodology Future mine north of the wrench fault designed in detail for the first time Studies in mechanising the destress commence The entire Mineral Reserve is designed for the first time in the LoM Reserve updated with new models Reserve updated with new models Highly detailed designs for 7 years included as part of the new LOM Evolution of a fit for purpose Geological Modelling process Page 32

33 Geological Modelling Procedures Facies and Domains Geological facies are areas of the ore body that have been deposited under similar conditions and correlate with gold grade distribution Domains are areas within a facies zone in which a consistent grade distribution occurs Discrete facies and domains are constructed for each of the 16 units Facies and domains therefore provide a geological framework for geostatistical modelling Channel width models of the different units are constructed to enable the modelling of individual reef volumes and tonnages Page 33

34 Mineral Resource Estimation South Deep Gold Mine

35 Mineral Resource Estimation Current Process Flow for Model Updates Sampling Process all samples through the QA/QC programme. Geological Models Convert all geological data to a dynamic modelling environment and update the geological, facies and domain models. Resource Estimation Update the geostatistical models and estimate the mining areas. LoM Planning Update the LoM plan with respect to the updated Mineral Resource Models. Review Internal and external review on data, geological and resource models, plans and design. Page 35

36 Mineral Resource Estimation Resource Evaluation and SAMREC Classification Geostatistical models are generated for each of the 16 units Estimation is constrained by geostatistical domains Ordinary and Simple Kriging techniques are utilised in the estimation of grade Facies modelling informs geological continuity from Current mine to Future mine 96% of fthe current mine Measured dresource is destressed, d equating to 27M 2.7 Moz gold Subcrop South Shaft Twin Shaft 7 Year Plan (Destress and Massive Mining) Measured Resource is 96% Destressed Page 36

37 Planning vs Measured Boundaries Dec 2013 Measured ed Boundary & Dec 2014 Confidence Boundary Planning Dec 2013 Measured Boundary Inside Outside Total C2014 C2015 C2016 C2017 Tonnage (kt) % 93% 7% 100% Tonnage (kt) % 85% 15% 100% Tonnage (kt) % 76% 24% 100% Tonnage (kt) % 65% 35% 100% Table illustrates annual specific coverage, if calculated cumulatively, year-on -year the overall coverage is at 78% of planned mining (destress and massive) up to and including C2017 falls within the current Measured Resource boundary On a rolling basis, year 1 of the plan will be >90% classified as Proved Reserve (i.e. destressed Measured Resource) Page 37

38 Mineral Resource Estimation Grade Reconciliation Resource Model vs Grade Control Model (MBB unit - Corridor 4) Reef Resource Model Grade (2011) Grade Control Drilling Grade (2012) Grade Control Model Grade (2013) Percentage Change MBBReef (g/t) * % * Arithmetic mean calculated from actual raw assay results. 50m m 50m m Page 38

39 Mine Design and Planning South Deep Gold Mine

40 Mine Design and Planning Overview e Mining method in use was developed at South Deep, specific to the ore body. Scheduling assumptions are based on actual achieved efficiencies Destress mining is required to enable the mining of large excavations in a destressed environment and will be applied in all future mine stoping areas If the targeted reserve is 12m or less in height a drift, 6.0m (w) x 5.5m 5m (h) with a bench of 6.5m (h) or less will be applied. Targets larger than this will be extracted with long-hole stoping The initial 7-year design is completed in high detail (long-hole stopes are segmented into 7.5m portions (5 rings), all individual id stopes, accesses, drifts and benches are individually id designed). d) For mining beyond 7 years the designs are less detailed but retain the requisite definition to model production profiles with confidence. Individual stopes are replaced with stope designs that include 5 to 10 individual stopes. The designs are depleted at the same rate as the individual stopes LoM infrastructure designs include all stoping access ramps, conveyer haulages, intake and return haulages, bulk air cooler excavations, workshops, ore passes, silo s, vent-holes, intake and rock-handling cross-cuts. Mine design and mining method is customised to fit South Deep s requirements Page 40

41 LOM Sequence Mining sequence LoM ends in 2087 Depth 2400m below surface Old Mine NoW depleted d in Level 105 Level Current Mine 93 Level LOM 2014 to 2087 (38,224 koz) 110 Level NoW 95 Level Wrench Fault SoW E SoW W 110 Level Depth 3300m below surface Mineral Reserve is based on a full LoM design Page 41

42 Mineral Resource and Mineral Reserve South Deep Gold Mine

43 Mineral Resource As at December 2013 Measured Indicated Inferred Total Mineral Resource Mineral Resource classification Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold per mining area (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) Underground Current Mine , , ,489 NOW , , ,804 SOW , , ,649 VCR , , ,881 Total underground , , , ,824 Page 43

44 Mineral Resource As at December Top 10 Gold Deposits Resource Size Res source (KOz) South Deep: A World Class Ore Body World s In Perspective Second Tim Largest Rowland, Group Gold Competent Mineral Person Resource 7 April 2014 Page 44

45 Mineral Reserve As at December Year mine life ( ) Mineral Reserve classification per mining area Underground Tonnes (Mt) Proved Probable Total Mineral Reserve Grade (g/t) Gold (koz) Tonnes (Mt) Grade (g/t) Gold (koz) Tonnes (Mt) Grade (g/t) Gold (koz) Current Mine , ,245 NOW , ,286 SOW , ,693 Total underground , , ,224 In stope waste ramping included in the 224.4Kt / 5.3g/t Page 45

46 Resource to Reserve Reconciliation Mineral Reserve e Time Line Reserve Ounces and Grades Millions Jun 2006 Jun 2009 Dec 2010 Dec 2012 Dec Elsburgs VCR OldMine Head Grade VCR 3,793,615 3,426, , , ,876 OldMine 1,044,466 1,044, Elsburgs 25,859,092 25,014,732 34,087,489 38,696,930 37,820,670 Total 30,697,173 29,485,961 34,532,525 39,112,090 38,223,546 Grade Moz of VCR and 1.0Moz of Old Mine included Acquisition Reserves 1.6Moz of VCR designed and 1.0Moz of Old Mine included. Current Mine fully designed with 106 % MCF, remainder still acquisition reserves (includes 1.8Moz VCR) Excludes VCR South of the Wrench fault Excludes Old Mine Includes lower grade Uncle Harry s 108% MCF Includes more marginal material from the SoW projects 100% MCF *PRF reduced from 97.3% to 96.5% In section waste dilution applied Updated for Dec 13 98% MCF In section waste dilution applied *PRF means Plant Recovery Factor, MCF means Mine Call Factor Page 46

47 Resource to Reserve Reconciliation South Deep Gold Mine

48 Resource to Reserve Reconciliation Ounces South Deep Mineral Resource Reconciliation Gol ld (Moz) Cut off Grade Resource Reserve CM 3.2 g/t 3.8 g/t FM 3.6 g/t 4.2 g/t MCF of 98% Mining beyond BW 87 O Line 95 O Line Ph1 SoW O Line VCR Resource Inferred Pay Limit MCF Tail Management Exclusions Extraction/Mining Reserve Resources Method Page 48

49 Resource to Reserve Reconciliation Grade Gade South Deep Mining Grade for the 7 Year grade 6.0 Low grade and waste Cut off Grade Low grade VCR not 4.0 Resource Reserve material within reported as 7.3 CM 3.2 g/t 3.8 g/t stope designs reserve FM 3.6 g/t 4.2 g/t (limited selectivity 3.0 within longhole Average MCF of 98% stopes) dilution of 7.3% (mainly backfill within close in secondaries) proximity of accesses Localised areas not reserved. Not Resource (Incl. Inferred) Reserve Paylimits Ramping Internal design dilution Excluding VCR Dilution MCF Residual Declared Reserve CM is Current Mine FM is Future Mine (south of the Wrench fault) MCF is Mine Call Factor Page 49

50 Summary Key Points Continuous data supplied by sequential, rolling drilling programs Robust geological modelling with appropriate resolution. Resource estimation embodies a high level of ore body granularity Ore body dictates relevant mine design and mining method Good reconciliation between resource model and mining achieved Technically assured Resource and Reserve Page 50

51 Thank you South Deep Gold Mine