Post on 28-Apr-2018
Gwalia Deeps DevelopmentJune 2007
Peter Thompson, General Manager Exploration
2
Brief History
1969 St Barbara floated as Endeavour Oil
Jul 2004 Eshuys & Wise appointed by shareholders
Mar 2005 Sons of Gwalia gold assets bought for $38M (US$28M)
Oct 2005 Sold Sth Laverton & Meekatharra A$48M (US$38M)
3
Brief History cont….
Dec 2006 Reserves 1.7M ounces, production 0.26M, total 1.96M
Feb 2007 Gwalia Deeps development approved
Mar 2007 Cash / investments A$51M (US$41M)
Mar 2007 Tarmoola put up for sale
4
Issued capital at 31 March 2007
820M shares, 35M options
137m shares in A$100m convertible note, matures 2012
Shareholders at 31 March 2007
• Resource Capital Funds II and III LP 22.4%
• JP Morgan Asset Management 5.2%
5
Our Current Interests…
Land portfolio 5,000sq km
Three mills capacity 7.7Mt pa
Endowment 23.2M ounces of gold
Past exploration only 30% effective on Southern Cross & Leonora holdings
Golden Mile South joint venture
6
Capital Expenditure2 Years to 31 March 2007
A$M US$M
Gwalia Decline 31 25
Southern Cross 30 24
Exploration 39 32
100 81
On the way to establishing target production of 450,000oz pa
7
Gwalia Deeps
Reserves 4.8Mt @ 9.1g/t for 1.4 million ounces
8
Sons of Gwalia Gold Mine1896 - Welsh syndicate establishes mine
1897 - Herbert Clark Hoover convinced BewickMoreing to develop the mine
1898 – Sons of Gwalia Ltd floated with Hoover as mine superintendent
4th March 1929 - Hoover becomes 31st President of America
24th October 1929 – Stock Market Crash and prelude to the Great Depression
9
Sons of Gwalia Gold Mine in 1902
10
Sons of Gwalia Incline Headframe
11
Sons of Gwalia Gold MineLife Underground
12
Sons of Gwalia Gold MineTool Sharpeners
13
Sons of Gwalia Gold MineBefore the 1921 Fire
14
Gwalia Regional Geology
15
Gwalia Deeps Geology
16
Gwalia Deeps Reserves & Resources
17
Gwalia Deeps Long Section
18
Gwalia Deeps Plan Projection
19
Gwalia Deeps - Schematic Lode Plan
20
Gwalia Deeps - Plan View Lode Slice
21
Gwalia Deeps, old incline shaft
22
INDICATED RESOURCE (>= 4g/t) INFERRED RESOURCE (>= 4g/t)
MAIN LODE SW BRANCH SOUTH GWALIA SERIES 1 SOUTH GWALIA SERIES 2 WEST LODE
TONNES
0
50,0
00
100,
000
150,
000
200,
000
250,
000
300,
000
350,
000
400,
000
450,
000
500,
000
962.5
1042.5
1122.5
1202.5
1282.5
1362.5
1442.5
1522.5
1602.5
1682.5
mbs
OUNCES
0
20,0
00
40,0
00
60,0
00
80,0
00
100,
000
120,
000
140,
000
160,
000
962.5
1042.5
1122.5
1202.5
1282.5
1362.5
1442.5
1522.5
1602.5
1682.5
mbs
TONNES
0
50,0
00
100,
000
150,
000
200,
000
250,
000
300,
000
350,
000
400,
000
450,
000
500,
000
962.5
1042.5
1122.5
1202.5
1282.5
1362.5
1442.5
1522.5
1602.5
1682.5
mbs
OUNCES
0
20,0
00
40,0
00
60,0
00
80,0
00
100,
000
120,
000
140,
000
160,
000
962.5
1042.5
1122.5
1202.5
1282.5
1362.5
1442.5
1522.5
1602.5
1682.5
mbs
Gwalia Deeps Resources
23
Recrystallised quartz-calcite-sulphide-Native Gold Veins
24
Quartz Vein Thin Section
25
Reflected Light
26
Gwalia Deeps Development
Decline at top of Deeps in March Quarter 2008
Initially at the rate of 100,000 oz pa September Quarter 2008
At the rate of 200,000 oz pa starting in June Quarter 2010
27
Top Down Mining Method
28
Mining Sequence
29
3.1m Surface Vent Shaft By-Pass
5.5m Primary Ventilation Shaft (VR3A)
1.8m Escapeway and 4.5m Vent Raise
Ventilation Development
30
Ventilation Specifications
Intake System
• 6.0m x 5.8m decline
• 4.5m diameter raisebore intake rises
• 3.1m diameter raisebore rise for refrigeration surface to
375mbs
Exhaust System
• 2.5MW Fan for 450m3/s at 4kpa (can run as low as
300m3/s)
• 5.5m diameter raisebore rise from surface to 850mbs
• 6m x 6m VCR rises from 850mbs to depth
31
Surface Raisebore Rig
32
VR3A Ventilation FanVentilation
33
Refrigeration6 MWR (1500 kW of Electricity)
34
Dewatering
4 x WT088 Helical Rotor Pumps per station
45 l/sec @ 48 bar
Located 375L, 750L, 1025L, 1500L
35
Stress Testwork
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0 50 100 150 200 250 300
Principal Stress (MPa)
Dep
th (m
bs)
Yilgarn Block Trend (HI) and Gwalia Stress Trend used for Non-Linear Modelling
HIMin YilgarnExtrapolated Max Yilgarn TrendAEExtrapoloated Min Yilgarn TrendUpdated Gwalia TrendMax Yilgarn
HIMin YilgarnExtrapolated Max Yilgarn TrendAEExtrapoloated Min Yilgarn TrendUpdated Gwalia TrendMax Yilgarn
36
Infrastructure DetailsProcessing Plant• 1.2Mtpa capacity on Gwalia Deeps Ore• Nominally 0.5 – 0.6Mtpa of Gwalia ore to be processed
Power Station• Gas power station to be constructed• 11.2 MW capacity - 4 dual fuel & 7 gas engines• Less emissions, more efficient than diesel
Pastefill Plant• Use tailings/cement paste to fill underground voids • Nominal capacity of 100m3/hr
Mining Fleet• Fleet comprising of remote LHD units and conventional UG
trucks (50-60t)
37
Aran Paste Plant and Loader
38
Gwalia Plant
39
Gwalia DeepsEstimated Life of Mine Costs
A$ US$
Mining costs
Milling and admin102/t 82/t
Cash costs 395/oz 320/oz
40
Gwalia Deeps Feasibility Study
Pre-production capital A$110M (US$89M)
Financing to be finalised June Quarter 2007
1m put options at strike A$700 (US$566)/oz purchased
for less than A$7/oz
41
Leonora Gold Production Target
December quarter 2008 annualised production target
Gwalia Deeps ~ 112,000 oz
Open Pits: Tower Hill, Kailis ~ 108,000 oz
Total Leonora ~ 220,000 oz
42
Evaluating open pit
resources at Kailis,
McGraths and Tower Hill
Kailis resources 3.6Mt
@1.9g/t for 220,000 oz
Leonora Gold Deposits
43
Tower Hill Cross Section
4444
St Barbara Immediate Objectives
Produce 172k oz pa @ A$490/oz cash cost this year
Complete the capital raising
Reserve update in July 07
Continue with conversion of open pit resources to reserves
Maintain Gwalia Deeps development on schedule and budget
Accelerate nickel sulphide and base metal exploration at Leonora
45
Position at end 2008
Production Dec Qtr 2008 annualised rate 450,000 oz
@A$450/oz
Making St Barbara 7th largest gold producer in Australia
3rd largest Australian listed gold company
45
4646
To Achieve Longer Term Objectives by 2010…
Expand SX & Leonora combined production to 600,000 oz pa
Move from 3rd quartile of Australian cost curve to 2nd quartile
Make discoveries & find extensions at SX & Leonora
Pursue growth through acquisitions
Accelerate BigGold grass roots and base metals exploration
4747
Disclaimer: This presentation includes certain statements, estimates and projections with respect to the future performance of St
Barbara. Such statements, estimates and projections reflect various assumptions concerning anticipated results, which assumptions may
prove to not be correct. The projections are merely estimates by St Barbara, of the anticipated future performance of St Barbara’s
business based on interpretations of existing circumstances, and factual information and certain assumptions of future economic and
results, which may prove to be incorrect. Such projections and estimates are not necessarily indicative of future performance, which
may be significantly less favourable than as reflected herein. Accordingly, no representations are made as to the accuracy or
completeness of such statements, estimates or projections and such statements, estimates and projections should not be relied upon as
indicative of future value, or as a guarantee of value or future results. This presentation does not constitute an offer to subscribe for
securities in St Barbara Limited.
The information contained in this report relating to drilling results and resources has been compiled by Mr Peter Thompson and Mr Robert
Love. Mr Thompson is a Member of the Australasian Institute of Mining and Metallurgy, Mr Love is a Fellow of the Australasian Institute of Mining and Metallurgy and both are full-time employees of the Company. Mr Thompson and Mr Love have sufficient experience relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaken to qualify as Competent Persons as defined in the 2004 edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’. Mr Thompson and Mr Love consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.
…thank you