Abosso GoldFields Ltd Damang Mine · 44 Damang Mine - History Ł 1989 Œ Ranger Minerals starts...
Transcript of Abosso GoldFields Ltd Damang Mine · 44 Damang Mine - History Ł 1989 Œ Ranger Minerals starts...
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Abosso GoldFields LtdAbosso GoldFields LtdDamang MineDamang Mine
An Overview
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Management TeamManagement Team
� Brendan Walker (South Africa) V-P Ghana� Alan Thompson (Australia) General Manager� Charles Taschereau (Canada) Mill Manager� Alfred Baku (Ghana) Mining Manager� Paul Kitto (Australia) Exploration Manager� Clifton Potter (Canada) Environmental Manager� Robert Siaw (Ghana) Local Affairs Manager� Ben van Wyk (South Africa) HR Manager� Bashir Malik (UK) F&A Manager� Mike Jordaan (South Africa) Security Manager� Patrick Spathelf (South Africa) Chief Geologist� Mark Haywood (Australia) Chief Mining Engineer� Philip Engelbrecht (South Africa) Metallurgical Superintendent
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Damang Mine Damang Mine Facts & FiguresFacts & Figures
� 18.4Mt Mined F2003 � 14.8Mt Forecast F2004� 4.9Mt Milled F2003 � 5.2Mt Forecast F2004� 299koz Gold produced F2003 � 298koz Forecast F2004� $234/oz Operating Cost F2003 � $220/oz Forecast F2004 � 1200 employees and contractors � 38 expats
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Damang Mine Damang Mine -- HistoryHistory� 1989 � Ranger Minerals starts exploration in the area� 1990-95 � Discovery and exploration of Damang ore body� 1996-97 � Construction of Mine, Mill, Power line.� Nov 97 � First gold poured� Jun 1999 � Plant upgraded (pebble crusher)� Jan 2002 � Change of ownership to Gold Fields Ltd / IamGold � Dec 2003 � Completed shareholders loan repayment
� Ownership- GOLDFIELDS Ltd 71.1%- IAMGOLD Corp. 18.9%- Government of Ghana 10%
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GhanaGhana
DAMANG
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GeologyGeology
Mineralisation at Damang occurs at the faulted culmination of a regional anticline
Similar Proterozoic/PhanerozoicExamples
� Telfer� Just about all deposits in Pine
Creek� Bendigo - Slate Belt Style
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Current ReservesCurrent Reserves--ResourcesResources
Million Tonnes (Mt)
Grade (g/t)
Gold (000oz)
RESERVEProved 5.1 1.7 271Probable 3.1 2.5 244Total Open Cut 8.2 2.0 515Proven Surface Stockpile 9.1 1.4 405Grand Total (Open Cut + Stockpile) 17.3 1.7 919RESOURCEMeasured 8.1 1.7 448Indicated 7.7 2.0 488Inferred 2.9 1.9 175Total Open Cut 18.8 1.8 1,111Measured Stockpile 9.1 1.4 405Grand Total (Open Cut + Stockpile) 27.9 1.7 1,516
Note : Reserves/Resources as of 1st July 2003
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Cost DistributionCost Distribution
� Total Operating Budget $65.6M� Cost/oz $221/oz F2004 to date
Damang Gold Mine Costs 2004
9%
24%
12%36%
6% 6% 4% 3%
PayrollStoresPowerMining ContractorsOther ContractorsExplorationOther CostsGeneral & Admin
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Operating Costs Operating Costs
F2003 F2004 (to date)
$/ton Processed $14.40/ton $12.84/tonOperating Cost $235/oz $221/ozTotal Cash Cost $243/oz $234/ozOperating Margin 31% 39%
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OperationsOperationsPerformance Performance
Ore Tonnes Mined
0100000020000003000000400000050000006000000700000080000009000000
F1998 F1999 F2000 F2001 F2002 F2003 F2004ForecastYears
Ore
Ton
nes
Min
ed
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OperationsOperationsPerformance Performance
Tonnes Milled
2000000
2500000
3000000
3500000
4000000
4500000
5000000
5500000
F1999 F2000 F2001 F2002 F2003 F2004Forecast
Years
Tonn
es M
illed
� Blend 65% Fresh Ore, 35% Oxides
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OperationsOperationsPerformance Performance
Gold Produced (oz)
050000
100000150000200000250000300000350000400000
1998 F1999 F2000 F2001 F2002 F2003 F2004ForecastYears
Tonn
es M
illed
131313
MiningMining
� Mining via contractor (AMS) under AGL supervision.� Daily production 70kt; Yearly Production 18.4Mt� Currently mining in three pits: Damang, Lima and
Kwesie
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Mine DevelopmentsMine Developments
� Mining in Huni 3&4 Completed Q3F2004.
� Main Damang Pit Completed in F2005
� Mining Juno SE will begin in Q3F2004
� Lima pit started in Jan�03� Mining in Kwesie started in
Apr�03� Planning for development of
new pits ongoing� AMS contract to be extended
for 3 years� Study of underground
potential in Damang pit� Planning for Rex
development
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MillingMilling
� CIL Plant� Milled Tonnes 5.1Mtpa� Throughput 625tph� % Fresh Ore 65%� Availability 95%� Head Grade 2.0g/t� Recovery 91%� Gravity Rec. 20%
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MillingMilling
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Mill Mill UtilisationUtilisation
� Focus on planned/preventive maintenance� YTD Utilization at 95.0% (excluding Girth Gear Shutdown)
Mill Utilisation - Total Running Time
89.00%
90.00%
91.00%
92.00%
93.00%
94.00%
95.00%
96.00%
1998-1999 1999-2000 2000-2001 2001-2002 2002-2003Excluding StrikeExcluding SAG
Motor FailureExcluding Pebble
Crusher Tie-in
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Mill ThroughputMill Throughput
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
F199
9
F200
0
F200
1
F200
2
F200
3
F200
4(F
orec
ast)
Mill Throughput (Tonnes)
� Without Major Capital Investments� Improved Availability� Improved Process
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Health & SafetyHealth & Safety� Excellent safety record.
- Long Term Lost Time Accident Frequency 0.5 per million hours worked
- One year without LTI reached in January 2004� Emphasis on prevention, education and training.� Regular Monitoring of dust, noise and ground
vibrations.
0
5
10
15
Damang Australia USA Canada
Lost Time Accidents Rate - Open-pit Metal Mines
Note: International Data is for 2001-2002
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Environmental ProtectionEnvironmental Protection� An excellent environmental record.
- Best Record of all Mines in Ghana in last EPA grading.� ISO 14001 Certified � Regular External Audits.� Full compliance with environmental permits.� High standard required from contractors and suppliers.� Committed to Follow the International Cyanide Guidelines
on mine site � will be audited in a few months.
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ReclamationReclamation� Extensive Reclamation program ongoing even during
operation� Reclamation Bond agreement signed with EPA in 2001 for
rehabilitation of site. � Achievement of a $0.78M reduction in the reclamation bond
in 2003 in recognition of the level of rehabilitation achieved in specific areas of the mine.
� Stakeholders consultation to develop end land-use plan (mixed agriculture, wood and cash crops)
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ReclamationReclamation� Total of over 250 hectares in rehabilitation
program (total area disturbed is 650 ha).� The following plants are used in the reclamation
projects:- Legumes (Leucenia, Cacia, Grecida, Pueraria, Acacia);- Timber Species (Ofram, Emire, Mahogany, Wawa,
Cedrella, Teak, Pericorpsis, Kusia, Cieba);- Farm Plantations (Oil palm, Pineapple, Plantain,
Cocoyam, Cassava);- Medicinal Tress (Neem).
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Stakeholder InteractionStakeholder Interaction
� Keep an open approach in our dealings with local communities.
� DMCCC (Damang Mine Communities Consultative Committee).- Composed of Mine Management, Traditional Leaders, Youth
groups, Local Business Leaders, etc (over 40 members).- Present company activities that might affect communities and
receive requests and concerns from stakeholders.- Meets every 2 months
� Damang applies �open door� policy and stakeholders are welcome to bring their concerns.
� Quick response to stakeholders complaints, requests and enquiries.
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Sustainable DevelopmentSustainable Development
� Focus on Education, Health, Water and Sanitation.� As objectives are being reached, there will be a
shift toward income generating projects as fish farming, improved agricultural techniques, etc.
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Sustainable DevelopmentSustainable Development
� 2003 � 8 major projects completed at the cost of $250k.
� Construction and renovation of school blocks at Bompieso, Koduakrom, Damang and Huni Valley.
� Construction and installation of water and sanitation facilities.
� Establishment of Scholarship schemes� Educational assistance � subsidizing teachers
wages (to raise standard to urban levels)� Construction, development and ongoing support of
community libraries � Damang, Huni Valley, Abosso
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ExplorationExploration
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Southern Ashanti BeltTotal Gold Endowment
Southern Ashanti BeltTotal Gold Endowment
Hydrothermal
Palaeoplacer
Hydrothermal& Palaeoplacer
MINERALISATION STYLES
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PRIORITIES 2004-2005 EXPLORATION PROGRAMSPRIORITIES 2004-2005 EXPLORATION PROGRAMS
� Damang ML� Tomento North & East� Rex*� Amoanda *� Damang Underground? *� Old Abosso Underground
� Damang Adjoining Leases� Bonsa River F. R. (PL2/376)� Bonsa (PL2/151)� Subiri (PL 2/370)
� Gyata - District Acquisitions � Wassa Breman PLA*� Epieso PLA � Nsuaem PLA* � Atwere Broanda PLA* � Ghana Manganese* - JV?(* Hydrothermal targets)
6200
00 m
E
6300
00 m
E
6400
00 m
E
620000 mN
610000 mN
590000 mN
600000 mN
EPIESOEPIESOEPIESOEPIESOEPIESOEPIESOEPIESOEPIESOEPIESOAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATION
SUBIRISUBIRISUBIRISUBIRISUBIRISUBIRISUBIRISUBIRISUBIRIPL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370
LIMALIMALIMALIMALIMALIMALIMALIMALIMA
KWESIEKWESIEKWESIEKWESIEKWESIEKWESIEKWESIEKWESIEKWESIE
DAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PIT
AMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDA
BONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTPL 2/151PL 2/151PL 2/151PL 2/151PL 2/151PL 2/151PL 2/151PL 2/151PL 2/151
BONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTPL 2/376PL 2/376PL 2/376PL 2/376PL 2/376PL 2/376PL 2/376PL 2/376PL 2/376
DAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANG
TOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTO
CHIDACHIDACHIDACHIDACHIDACHIDACHIDACHIDACHIDA
ABOSSOABOSSOABOSSOABOSSOABOSSOABOSSOABOSSOABOSSOABOSSO
DAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96
REXREXREXREXREXREXREXREXREX
CHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTH
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� Damang ML� Tomento North & East� Rex*� Amoanda*� Damang Underground?*� Old Abosso Underground
� Damang Ajoining Leases� Bonsa River F. R. (PL2/376)� Bonsa (PL2/151)� Subiri (PL 2/370)
� Gyata District Acquisitions� Epieso PLA� Wassa Breman PLA*� Nsuaem PLA*� Atwere Broanda PLA*� Ghana Manganese* JV?(* Hydrothermal targets)
GFL/IAMGOLD Area of Interest
ProposedGyata/GMC JV
Gyata PLA
ProposedGyata/Leo JV
PRIORITIES 2004-2005 EXPLORATION PROGRAMSPRIORITIES 2004-2005 EXPLORATION PROGRAMS
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6200
00 m
E
6300
00 m
E
6400
00 m
E
620000 mN
610000 mN
590000 mN
600000 mN
EPIESOEPIESOEPIESOEPIESOEPIESOEPIESOEPIESOEPIESOEPIESOAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATION
SUBIRISUBIRISUBIRISUBIRISUBIRISUBIRISUBIRISUBIRISUBIRIPL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370
LIMALIMALIMALIMALIMALIMALIMALIMALIMA
KWESIEKWESIEKWESIEKWESIEKWESIEKWESIEKWESIEKWESIEKWESIE
DAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PIT
AMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDA
BONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTPL 2/151PL 2/151PL 2/151PL 2/151PL 2/151PL 2/151PL 2/151PL 2/151PL 2/151
BONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTPL 2/376PL 2/376PL 2/376PL 2/376PL 2/376PL 2/376PL 2/376PL 2/376PL 2/376
DAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANG
TOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTO
CHIDACHIDACHIDACHIDACHIDACHIDACHIDACHIDACHIDA
ABOSSOABOSSOABOSSOABOSSOABOSSOABOSSOABOSSOABOSSOABOSSO
DAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96
REXREXREXREXREXREXREXREXREX
CHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTH
� 2004 Fiscal Year = US$3.75M� Tomento Central & Southern� Chida South � Abosso� Amoanda� Rex� Bonsa River F. R.� Subiri
� 2005 Fiscal Year� Bonsa River F. R.� Subiri� Epieso PLA� Wassa Breman PLA� Nsuaem PLA� Atwere Broanda PLA� Ghana Manganese JV?
Exploration BudgetExploration BudgetExploration Budget
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Damang Damang �� In ResumeIn Resume
� 300,000oz/year� Good Cash Cost � $221/oz F2004 to date� Good Cash Flow � Net earnings $13.6M F2004 to date� Established operation � Low Risk� Sound Health, Safety, Environmental and Local Affairs
Management� Reserves Expansion On-going
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Future DirectionsFuture Directions
� Finding and developing new reserves.� Continue mine and mill optimisation programs to
reduce costs and increase efficiencies.� Maintaining and improving on the standards sets
in Environmental protection, Health & Safety.� Helping the local communities developing
alternative livelihood and sustainable development.