a presentation by general manager, tolukuma and ...€¦ · a presentation by anton lubbe general...
TRANSCRIPT
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