A presentation by General Manager, Tolukuma and ...€¦ · A presentation by Anton Lubbe General...

A presentation byAnton Lubbe

General Manager, Tolukumaand

Brett DuckExploration Manager, Tolukuma

PAYDIRT’S GOLD CONFERENCE21 - 22 March 2002

Burswood Convention CentrePerth, Western Australia

Who we are

• Founded in 1895• Three operations in South Africa, one in Papua

New Guinea• Gold production: 1.1 million ounces a year• 4th largest gold producer in SA;

12th largest internationally• Reserves/resources: 14.4m oz/65m oz• Market capitalisation: US$450 million• 20 000 employees• Traded on: JSE, LSE, Paris, Brussels, ASX,

Nasdaq, Frankfurt• Liquidity: 150% per annum

Our operations

DRD – South Africa

DRD – More gold

0

200

400

600

800

1000

1200

1400

2001 2002 (f) 2003 (b) 2004 (e)

Annu

al A

u Pr

oduc

tion

(000

oz)

(f) = forecast, (b) = budget , (e) = estimate

DRD – Costs plunge

150170190210230250270290310330350

Dec'97

Jun'98

Dec'98

Jun'99

Dec'99

Jun'00

Dec'00

Jun'01

Dec'01

Cash operating costsUS$/oz

US$25/oz p.a. cost reduction

DRD – The opportunity

10

14

18

22

26

2001 2002 2003 2004 2005

Res

erve

s (M

illio

n oz

)

R68 000/kg

R90 000/kg

R110 000/kg

The arsenal (at US$278/oz)

Proven and probablereserves:14.4m oz

Resources:65m oz

Planned:7.6m oz

(1.1m oz p/a)

The arsenal (at US$300/oz)

Proven and probablereserves:21m oz

Resources:65m oz

Planned:15m oz

(1.5m oz p/a)

Current projects

7.55• Total

1.5- Exploration

• Tolukuma

0.05- Exploration

2.1- Medium Grade Project

• North West Operations

3.9• Blyvooruitzicht Expansion Programme

m oz

Blyvooruitzicht ExpansionProgramme (BEP)

North West Operations (NWO)

Tolukuma, Papua New Guinea

Tolukuma

TGM – Brief history

• Tolukuma Vein discovered in 1986 by Newmont(average width 1.7m @ 10.7g/t)

• Tolukuma Project purchased by Dome fromNewmont in November 1993 for US$6.0 million;a further US$3.0 million on achieving 300 000oz

• Feasibility study completed and ML104 granted in1994

• Tolukuma open pit began, treatment plantcommissioned; first bar poured December 1995

TGM – Brief history

• Underground mine development began July 1997• Hydro-electric power station commissioned

December 1997• Full decline underground development began

July 1999• January 2000: gravity circuit re-commissioned,

DRD purchased Dome

TGM – Production history

020000400006000080000

100000120000140000160000180000

Jun-96 Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02FC

Tonn

es &

oz

Tonnes Au produced (oz)

TGM – Resources

Proven and probablereserves:64 000 oz

Total resources:348 000 oz

Target:1.5m oz

TGM – The future

KUNIMAIPA R

AKAIFU R

VARIZA R

IPI R

ANGABUNGA R

DIL

AVA

R

LALOKI R

VANAPA R

G

MAM

BARE R

KUMUSI R

OPI R

GIRA R

9

99

9

9

99

9

9

9

9

9

EL 1271

EL 1281

EL 1284

EL 580EL 894

EL 1263

EL 1264

EL 1171

EL 683

EL 1297

EL 1262

8 S

147

E

148

E

25 km

9 S

M o r o b eM o r o b eM o r o b eM o r o b eM o r o b eM o r o b eM o r o b eM o r o b eM o r o b e

N C DN C DN C DN C DN C DN C DN C DN C DN C D

C e n t r a lC e n t r a lC e n t r a lC e n t r a lC e n t r a lC e n t r a lC e n t r a lC e n t r a lC e n t r a l

G u

l f

G u

l f

G u

l f

G u

l f

G u

l f

G u

l f

G u

l f

G u

l f

G u

l f O r oO r oO r oO r oO r oO r oO r oO r oO r o

ML104Tolukuma

PORT MORESBY

Mt VictoriaMt Musgrave

Mt Yule

Mt Elieli

English Peaks

Mt Lamington

Mt Dye

Mt Tafa

TGM – Where action is now

5180

00 m

E

9054000 mN

9052000 mN

9050000 mN

5160

00 m

E

5140

00 m

E

PROPOSED UG DRIVEPROPOSED UG DRIVEPROPOSED UG DRIVEPROPOSED UG DRIVEPROPOSED UG DRIVEPROPOSED UG DRIVEPROPOSED UG DRIVEPROPOSED UG DRIVEPROPOSED UG DRIVE

QU

INO

M C

K

QUINDA CK

SOKMA CK

GO

GO

LMA CK

NINI

MBA

CK

MAVALA CKBORDER CK

SING

ILA

CK

QU

I NO

M C

K

AMA CK

DALAVA CK

QU

INO

M C

K

MATAI C

K

BEBE

LA C

K

BUI L

I CK

Proposed Road

GULBADI VEIN

WALEB

AIVOLOLOP

KAGAM

MILIHAMBA

SISIMONDA

BULUM

DEGOT

TO

LU

KU

MA

FUNDOOT

ILIV

E

TINABARSAWMILL

KIM

ON

O

120 VEIN

GU

FINIS

TOLIMI

KA

RA

CH

I

NA

VA

LA

SISIMONDA ?

NNNNNNNNN

SA

KI

3

SA

KI

1

SA

KI

2

SA

KI 5

SA

KI 6

SA

KI 4

Saki9

9 Kunda

Kimono

3.5 km

Seri Seri

9Tolukuma

24000 E

20000 E

18000 N

20000 N

22000 N

22000 ETMG N

AMG N

1000 m

��

POSSIBLEHYDRO

HYDROINTAKE

500 000 oz

Underground drive1 million ounces

High level magnetics

Tolukuma

Magnetite Depletion ZoneMagnetite Depletion ZoneMagnetite Depletion ZoneMagnetite Depletion ZoneMagnetite Depletion ZoneMagnetite Depletion ZoneMagnetite Depletion ZoneMagnetite Depletion ZoneMagnetite Depletion ZoneYama Cu/AuYama Cu/AuYama Cu/AuYama Cu/AuYama Cu/AuYama Cu/AuYama Cu/AuYama Cu/AuYama Cu/AuFloat AnomalyFloat AnomalyFloat AnomalyFloat AnomalyFloat AnomalyFloat AnomalyFloat AnomalyFloat AnomalyFloat Anomaly

TICTICTICTICTICTICTICTICTIC

TafaTafaTafaTafaTafaTafaTafaTafaTafaBlegBlegBlegBlegBlegBlegBlegBlegBlegAnomalyAnomalyAnomalyAnomalyAnomalyAnomalyAnomalyAnomalyAnomaly

TICTICTICTICTICTICTICTICTIC Ijav ck

Diakoku

DigurendaAu

Soju

Saki

Seri Seri

Kimono

Mt Sen

Quinom

Tolukuma

CALDERA OUTLINE

CIRCULARFEATURE

• TIC• Mt Sen volcano• Andesitic volcanics• Polar reversals• Vein systems• Ijav strucutre• Ijav mag low• Caldera rim• Circular feature

1998 TGM Aeromag RTP andprospects

BOUNDARY OF VOLCANO EDIFACE

RIM OF EXPLOSIVE CALDERA

CIRCULARFEATURE

Kosipe North Bleg Anomaly

Kosipe Sw amps

Magnetite Depletion ZoneYama Cu/AuFloat Anomaly

Kosipe South Bleg Anomaly

TafaBlegAnomaly

TIC

MagneticDepletion

Zone

ResurgentDome

Kirai Bleg Anomaly

Minaru Prospecting Area

TICNE TRANSFER

STRUCTURES

Prof

ile L

ine

I jav ck

DiakokuSoju

High BlegAg

DigurendaAu

Mt Sen

Kimono

Saki

Seri Seri

Quinom

Tolukuma

KoneCu/Au

FaneGaivaPb/Ag

• Boundary volcanoediface

• Circular feature• Ijav Fault• Udaba Thrust

Fault• NE Transfer

Structure• Tolukuma

Structure• Resurgent Dome• Geochem

anomalies• TIC• Mt Sen parasitic

volcano• Kosipe mag low

Boundary volcano andinterpretation

TGM – The future

Exploration targets include

• Large mixed porphyry, skarn and epithermal field atEtasi

• Structurally controlled high sulphidation systemover some 5 x 4 km

• Large, high-level mag destruction zone withperipheral gold, plus base metals

• Additional favourable structures and fluid sources• Targeting an additional 1m oz in the next two years• It’s elephant country!

A bargain – at any gold price

22 28 30 31 4157 64 70 71 78 80 81 85

109135

185

340

21

0

50

100

150

200

250

300

350

400EV/Resource oz (U$)

EV per ounce comparisons

EV = Market cap + debt

Source: HSBC, January 2002

Franco Nevada (340)Goldcorp (185)Normandy (135)

Barrick (109)Placer Dome (85)Delta (81)Echo Bay (80)Newcrest (78)

Buenaventura (71)Newmont (70)Kinross (64)Lihir (57)Anglogold (41)

Gold Fields (31)Ashanti (30)Freeport (28)Harmony (22)DRD (21)

A presentation byAnton Lubbe

General Manager, Tolukumaand

Brett DuckExploration Manager, Tolukuma

PAYDIRT’S GOLD CONFERENCE21 - 22 March 2002

Burswood Convention CentrePerth, Western Australia