BUILDING A LOW COST, LONG LIFE OPERATION

Transcription

1 BUILDING A LOW COST, LONG LIFE OPERATION Technical Presentations Asanko Gold Mine Site Visit Phase 1 Update 14 May 2015

2 MINING 2

3 3

4 PHASE 1: MINING UNDERWAY Open pit contractor mining opera5on Low opera5ng strip ra5o (waste:ore) - 4.7:1 Nkran is the main pit, >80% of the resource Selected mining contractor (PW Ghana) originally mined Nkran pit in late 1990 s Mining contractor for Nkran pre- strip and Year 1 of opera5ons maintains future flexibility Strong emphasis on grade control to improve head grade and minimise dilu5on 4

5 PHASE 1: BUILDING A LOW-RISK OPERATION Mine Plan designed around consistent annual opera5ng volumes and opera5ng strip ra5o Ensures consistent ore availability with ore stockpiles between 1.0 and 1.8Mt (4-6 months)* Life of Mine Tonnages and Strip Ra3o Asuadi Tonnes Million Tonnes Mined Opera3ng Strip Ra3o Abore Tonnes DynamiteHill Tonnes Adubiaso tonnes 5 2 Nkran Tonnes * Ore stockpiles volumes of 1.0M tonnes from Q Opera5ng Strip Ra5o 5

6 NKRAN PUSHBACK SEQUENCE TOPOGRAPHY CUT 1 PIT Feb 15 Dec 15 CUT 2 PIT (Start July) Village CUT 4 PIT Aug 16 Dec 24 CUT 3 PIT Nov 15 Dec 20 Final depth 380m CUT 5 PIT Jan 21 Jul 27 6

7 Nkran Pushback 1 February 2015 December

8 Nkran Pushback 2 July 2015 January

9 Nkran Pushback 3 November 2015 January

10 Nkran Pushback 4 August 2016 December

11 Nkran Pushback 5 and WRD January 2021 July

12 TOTAL MINED TONNES MATERIAL TYPE YEAR 1 & 2 (MONTHS) Total Mined Tonnes Material Type - Year 1 & 2 in Months 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Feb- 15 Mar- 15 Apr- 15 May- 15 Jun- 15 Jul- 15 Aug- 15 Sep- 15 Oct- 15 Nov- 15 Dec- 15 Jan- 16 Feb- 16 Mar- 16 Apr- 16 May- 16 Jun- 16 Jul- 16 Aug- 16 Sep- 16 Oct- 16 Nov- 16 Dec- 16 Total Oxide Tonnes Total Transi5onal Tonnes Total Fresh Tonnes Actual / Forecast Progressive tonnes mned to end April 3.45Mt vs. plan 4.20Mt 12

13 ORE MINING SCHEDULE MATERIAL TYPE YEAR 1 & 2 Ore tonnes mined to date 4,500 tonnes at 2.1g/t from inferred blocks 450, , , ,000 Tonnes 250, , , ,000 50,000 0 Oxide Ore Tonnes Transi5onal Ore Tonnes Fresh Ore Tonnes 13

14 CONSISTENT GRADE AND OUNCES 14 14

15 NKRAN PIT GRADE CONTROL Strong emphasis on grade control to minimize dilu5on and maximize ounces Grade control methodology in place As of April 30, ,500 ore 2.1 g/t Au placed on ROM stockpile 15

16 NKRAN PIT GRADE CONTROL DESIGN Resolute GC Asanko Block Model Advanced GC Drilling m depth 25m centres SMU is 5m x 5m x3m Ore is mined in 3m flitches Waste mined in 6m Benches Stockpile Grade control Marginal : g/t Au Low grade : g/t Au Medium Grade : g/t Au High Grade : > 2.5 g/t Au Waste : < 0.5 g/t Au GC Drilling RC 18m depth, samples every 1.5m To be op3mized 5-10m centres 16

17 NKRAN PIT: PUSHBACK GRADE CONTROL Nkran Pit 17

18 PLANT & INFRASTRUCTURE CONSTRUCTION 18

19 STRONG HEALTH & SAFETY PERFORMANCE Zero lost 5me accidents during 350 days of construc5on & 1,166,400 man- hours completed 1 Million LTI- free hours achieved on the project on 15 April 2015 with only 2 first aid cases All SHE construc5on systems and procedures have been fully implemented on site Daily SHE training with a zero harm approach Current Company Wide SHE Stats Last LTI Date July 16, 2012 LTI Free Man- hours 3,266,983 LTI Free Days Worked

20 CONSTRUCTION UPDATE Construc3on approach Full review of previous work done & redesign of plant plaoorm with Phase 2 in mind Op5mized laydown areas around plant to speed up construc5on Innova5ve construc5on methodology on CIL tanks (flanged and bolted) Plant site construc3on well advanced: EPCM contractor (DRA) plus seven subcontractors on site = 1,349people Plant site terracing Wilson Baily Holmes Tailings Dam Engineers and Planners Pit Dewatering KPS and De- Montage Civil Works Consar Contractor Camp housing complex Red Sea Independent materials tes5ng laboratory Knight Piesold Steelwork, Mechanical & Platework Redis Construc5on Electrical & Instrumenta5on EnI Ghana Piping Redis Construc5on 20

21 PHASE 1: ON SCHEDULE On track for first gold in Q Main construc5on commenced in August 2014 earthworks scheduled around the rainy season All key contractors, 1,349 people, on site Project is 48% complete, tracking according to schedule and budget Median Actual Forecast Asanko Gold Mine - Overall S- Curve 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Feb- 14 Mar- 14 Apr- 14 May- 14 Jun- 14 Jul- 14 Aug- 14 Sep- 14 Oct- 14 Nov- 14 Dec- 14 Jan- 15 Feb- 15 Mar- 15 Apr- 15 May- 15 Jun- 15 Jul- 15 Aug- 15 Sep- 15 Oct- 15 Nov- 15 Dec- 15 Jan- 16 Feb

22 PHASE 1: CONSTRUCTION PROGRESS Pit Dewatering Primary Crusher Pre- Stripping Stockpile Tunnel 22

23 PHASE 1: CONSTRUCTION PROGRESS Mill Founda5ons CIL Tanks Pre- Leach Thickener CIL Tank Platework 23

24 SECURING STABLE & RELIABLE POWER Overview Ghana s power sector is expanding rapidly with offshore gas and independent power producers (IPPs) Power supplied via one na5onal grid (Gridco) Main power genera5on body is the state owned Volta River Authority (VRA) Recent growth in demand is outstripping supply, resul5ng in compe55on for power and load shedding 24

25 ASANKO S SOLUTION Strategic Approach Secure long- term stable and reliable power Self genera5on too capital intensive Asanko building connec5ng power line from grid to ensure control over delivery date - targe5ng Q Have been monitoring the network reliability for past 14 months over 99% reliable Power Purchase Agreement with Independent Power Producer (IPP) Advanced nego5a5ons with Genser Energy (Interna5onal IPP) DPP cost: 18c/kwh including 2c/kwh wheeling charge IPP rates similar to DPP rates with probable reduc5ons in future Envisage Genser will construct a 19MW plant next to the AGM processing facility 100% redundancy Target to have power available in Q

26 GENSER ENERGY - LEADING ENERGY SOLUTION PROVIDER IN GHANA Genser Energy Ghana is an IPP based in the USA with opera5ons in Africa. It provides electricity and steam solu5ons for mines, large- scale industrial companies, and u5li5es. Among the technologies used by Genser are the following IGCC - Integrated Gasifica5on Combined Cycle; CCGT - Combined Cycle Gas Turbine; CHP - Combined Heat and Power; and ICE - Internal Combus5on Engines. Genser has successfully built and operated the following power plants: 30MW ICE Plant for Golden Star Resources; and 5.0MW/ 20 tons CHP Facility for Unilever Ghana, Tema. Genser is in the commissioning phase of a 30MW IGCC Plant (GP Chirano Plant) for Chirano Gold Mines Limited (CGML). In the short term Genser shall install and operate the following power plants: 20MW ICE for Asanko Gold ; 120MW IGCC for GoldFields Ghana, Tarkwa. In the long term Genser will: Expand the GP Chirano Plant from 30MW to 90MW; Construct and operate a 120MW IGCC for Gold Fields Ghana, Tarkwa. Expand into other African countries, including Burkina Faso, Mail, and Botwsana. Exis3ng Genser Projects GP Chirano Plant GP Bogoso Pant GP Unilever Plant Source: Genser Energy Africa Inc 26

27 PHASE 1 - KEY CONSTRUCTION SCHEDULE ITEMS KEY MILESTONES Date Status Commence Bulk Earthworks Q ü Op5mized Mine Plan for Phase 1 (Defini5ve Project Plan) Q ü Start Plant Site Civils Q ü Mining Pre- Strip Begins at Nkran Q ü Plant Site Earthworks Q % complete Concrete Civils Q % complete Structural Steel and Mechanical Construc5on Q Commenced ahead of schedule Mills Arrive on Site Q ü Arrived in March SAG and Ball Mill Civils Q % complete Piping, Electrical and Instrumenta5on Ore Mining Opera5ons Commissioning First Gold Pour Phase 1 Steady State Produc3on of 190,000oz/pa Q Q Q Q Q

28 OUR SOCIAL LICENCE TO OPERATE 28

29 CSR IS FUNDAMENTAL TO OUR SUCCESS Our approach to CSR is based on the following principles: Complying with our corporate governance principles, na5onal and interna5onal laws & industry codes Maintaining a high level of health and safety performance Ac5vely iden5fying opportuni5es to make a posi5ve and meaningful contribu5on to the communi5es we operate in beyond the life of our mines Contribu5ng to the economic and social development of our host countries we ac5vely support the Africa Mining Vision Mi5ga5ng our impact on the environment Developing our employees Adhering to our values and demonstra5ng them in our behavior Our CSR stakeholder engagement commenced back in 2006 and is ac5vely implemented and monitored by a site- based team of Ghanaian staff We are monitoring and measuring our CSR ac5vi5es and their effec5veness, our first CSR report was published in March 2015 We have established strategic partnership with GIZ to leverage exper5se and funds in the areas of financial literacy, skills development, and healthcare so we can maximize our efforts 29

30 KEY CSR PROGRAMS Jobs: Localiza5on policy in place to ensure locals benefit from job opportuni5es at the mine Building local capability: 2 Skills- development and training centers at Esaase & Obotan with GIZ Training focused on carpentry, electrical installa5on, plumbing, masonry, catering, bamboo furniture produc5on and dress making Community Healthcare (with GIZ): Implemen5ng educa5on programs about HIV/AIDS, STDs & malaria 3,000 locals screened for basic healthcare in 2014 Community Engagement: Social Responsibility Forums set up to shape and manage community expecta5ons in a collabora5ve manner: Rela5onship Agreement Development Fund Agreement Local Employment Agreement Sustainable Livelihood Agreement 30

31 PHASE 1 RELOCATION ACTION PLAN Ghana has a prescribed process for reseulement A por5on of Nkran village, consis5ng of 88 building structures, have been iden5fied for reloca5on Nkran Village Par3al Reloca3on Ac3on Plan (RAP) 500m blast radius Reloca5on costs included in Capital Cost Es5mate The RAP report has been completed and submiued to EPA for review Site for reloca5on has been selected and approved by Ghanaian Lands Commission Site prepara5on completed in December 2014 Reloca5on is due for comple5on end Q Impacted Area Reseulement Township 31

32 UPGRADING LIVING STANDARDS Construc5on commenced February local contractors, all mobilized to site 56% of labour sourced from local villages Infrastructure: Roads Landscaping Stormwater Water supply and storage Electrical Supply Houses will be replaced on a Room- for- Room basis Addi5onal communal facili5es: Community informa5on centre Football field Sold waste transfer sta5on 32

33 BUSINESS READINESS 33

34 OUR APPROACH TO BUILDING A HIGH PERFORMANCE ORGANISATION (HPO) Build the organiza5onal capability and physical mine & plant in parallel Design the organiza5on and populate the management structure early on Develop a high performance culture and business readiness Use trusted, tested principles to guide design and behavior: ü Organiza5on Congruence ü Stra5fied Systems ü Core Process Design Congruence Model of Organisation Change S tr Culture Voluntary behaviour Inputs a t e g y Task Processes People Skills Outputs Structure Systems Measurement and Feedback 34

35 BUILDING THE ORGANISATION AROUND THE REQUIREMENTS OF THE CORE PROCESS Design the organiza5on around the Core Process and posi5on Services to meet the requirements of the core Use core and service work cycles to design structures and roles Base these on the reality of opera5onal and business environment Technical Process Map 35

36 BUSINESS READINESS PLAN (BRP) A BRP helps build required organiza5on capability ahead of opera5ons progress against the plan is tracked Key BRP components include: Recruitment ü Majority of AGM management team recruited, predominantly Ghanaian ü Local hiring policy in place, important for Social License ü Total current workforce in Ghana 1,571 people ü only 82 are non- Ghanaian ü of 1,489 Ghanaians on site, 639 are local and 850 non- local ü Asanko employees 222 people Opera.ng System & Procedures Design ü All required opera5ng systems & procedures iden5fied ü BRP details when and who will implement before commissioning The Asanko Gold Way ü A guide that contains our High Performance Principles and Prac5ces 43% AGM employees from Local Communi5es 37% AGM Contractors from Local Communi5es 96% AGM total workforce are Ghanaian Training and Development Plan ü Detailed Training and Development Plan drives technical, management, supervisory, policy and cultural training 36

37 NEAR MINE EXPLORATION 37

38 ASANKO GOLD MINE REGIONAL SETTING Orebodies located in the Asankrangwa Gold Belt lying along the axis of the Kumasi Basin Deposits are structurally controlled by mineralized NE faults and predominantly hosted in metasedimentary rocks with minor grani5c intrusions 38

39 AGM GEOLOGY, MINERAL RESOURCES & RESERVES Nkran historic gold produc5on g/t Au rec 591,000oz Deposit Measured & Indicated Grade (g/t) Tonnes (million) Ounces (million) Nkran Abore Adubiaso Dynamite Hill Asuadai Phase 1 Total Esaase Phase 1 & 2 Total Proven & Probable Deposit Tonnes Grade Ounces (million) (g/t) (million) Nkran Abore Adubiaso Dynamite Hill Asuadai Phase 1 Total Esaase Phase 1 & 2 Total

40 THREE IDENTIFIED ORE DEPOSIT STYLES HW Deformed Sedimentary Host Controlling Structures FW Undeformed Sedimentary Host Esaase and Adubiaso Style Quartz veins within deformed sediment host Gold mineralisa5on associated with briule deforma5on of the sedimentary host Rela5vely simple structural controls on mineralisa5on Granite Host Controling Structures Dynamite Hill, Abore and Asuadai Style Shallow dipping quartz veins within grani5c host Gold mineralisa5on associated with briule deforma5on of the grani5c host Rela5vely simple structural controls on mineralisa5on Controling Structures Resolute Pit Final Pit Nkran Style Quartz veins within both sedimentary and grani5c hosts Gold mineralisa5on associated mul5ple phases of deforma5on Complex structural controls on mineralisa5on 40

41 2014 BELT SCALE PROSPECTIVITY ANALYSIS Study completed in December 2014 of Kumasi Basin Both belt scale and locally focused Confirmed that only 7% of region has been effec5vely explored Iden5fied many prospec5ve near mine and regional targets Provided a plaoorm for systema5c explora5on ac5vi5es in 2015 Iden5fied data gaps in our geophysics coverage Prospec5vity model is dynamic and con5nues to be refined as new data is collected 41

42 2015 AIRBORNE GEOPHYSICAL SURVEY Geophysical data gaps were iden5fied once the PMI and Asanko data sets were merged 2015 survey will be combined VTEM, Magne5cs, and Radiometrics, approximately 3200 line km. Ver5cal Time Electromagne5c (VTEM) surveys are excellent tools for iden5fying primary and secondary structures which control gold mineraliza5on in the Asankrangwa gold belt Iden5fica5on of these structures, and especially flexures and cross structure intersec5ons, allow explora5on to focus on the areas of the tenement with highest prospec5vity Survey will lead to addi5onal high priority targets for near mine and regional explora5on ac5vi5es Survey has been approved and will commence in May

43 FOCUS ON NEAR MINE OXIDE EXPLORATION Phase 1 ore sources is dominated by Nkran fresh ore The satellite Dynamite Hill provides oxides for approximately the first 2 years of opera5ons Study iden5fied several targets near Phase 1 infrastructure These targets form basis for upcoming explora5on programs in H and beyond Targets will con5nue to be refined and generated as more field data is collected and the airborne geophysical survey completed and interpreted (September 2015) Near mine targets are currently being systema5cally explored with the aim of defining new drilling targets High likelihood of ongoing reserves replacement 43