Letšeng Mine – Life of Mine 2015 Update Presentation 22 May 2015
Summary 2 The most recent update of the Letšeng Life of Mine plan (published 17 March 2015) has resulted in: A significantly improved NPV over the life of the mine A 15% increase in higher value satellite ore being treated annually from 2015 to 2019 A 39% increase in higher value satellite ore being treated from 2020 onwards The life of the open pits being extended until 2038 A smoother waste mining profile with a reduced peak of 36mtpa An overall reduction in stripping ratios These results have been achieved following the operational improvements introduced through: improved blasting practice geotechnical controls mining efficiencies.
Background 3 Long term mine plans for Letšeng are updated annually on most current market and operational information The 2015 update is of greater significance as it incorporates a significant steepening of the pit slopes made possible by improved blasting practices and pit-wall protection The increase in treatment rate resulting from the No 2 Plant Phase 1 Upgrade project is incorporated The main objectives of the mine plan revision are as follows: To enhance value To optimise / defer waste stripping To optimise/maximise the percentage of the higher grade, higher value satellite ore treated
Pit Wall Protection 4 The following initiatives have contributed to pit wall protection resulting in the steepening of the pit walls: Employment of a Blasting Engineer Engagement of Blasting Consultant Establishment of a Geotechnical Department Improved wall and floor control – better pre-splits Electronic blasting Real time slope monitoring Commissioning of a Scaler
Planning Parameters/Results 5 Objectives Basis To enhance value 2014 Reserve grades and prices Optimise/defer waste 6mtpa of ore treated through Plants 1 & 2 Optimise/maximise Satellite contribution Contractor operation (AV) to continue - end of 2016 Incorporate steeper slopes in pit design (70º v 65º) Incorporates additional 0.25mtpa ore treated from 2016 from Plant 2 Upgrade Project Does not currently include further expansion opportunities Operating Costs* Direct cash cost per tonne treated (exc waste) M150.00 Waste cost per waste tonne mined M29.00 Output Maximising value Satellite Ore tonnage ramp up Smoother profile of waste 2015 to 2019 increased from 1.44 to 1.65 mtpa Peak waste of 36 mtpa 2020 to end increased from 1.44 to 2.00 mtpa Stripping ratios (LoM): Main Pit -> 1.6 Significantly increased NPV Satellite -> 6.7 Combined -> 2.9 *Costs are as per 2015 guidance and in 2015 terms
Waste Mining Profile Waste Tonnes Mined - million tonnes 10 15 20 25 30 35 40 0 5 2015 2016 2017 2018 2019 2020 2021 Waste Mining Tonnage Profile 2022 Main Pit Waste 2023 Updated LoM Plan 2024 2025 Satellite Pit Waste 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 6
Tonnes Treated / Carats Recovered Profile 7 Updated LoM Plan Treated Tonnes and Carats Recovered Profile 120 8 Ore Tonnes Treated - million tonnes 7 Carats Recovered - thousand carats 100 6 80 5 60 4 3 40 2 20 1 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Main Pipe Tonnes Treated Satellite Pipe Tonnes Treated Carats Recovered
Letšeng reserves and resources 8 Carats Grade In-situ value As at 1 January 2014 US$/ct (millions) (cpht) (US$ billions) Letšeng Indicated Resource 3.23 1.73 2 086 6.7 Letšeng Reserve 2.26 1.71 2 045 4.6 2014 Extension of Indicated depth at Letšeng to 350m below mining face Letšeng Life of Mine open pit is wholly contained within the Reserve category The reserve, based on the 2015 pit design, will be updated by mid 2015.
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