Mineral resource management strategy

Transcription

1 PLANNING FOR THE NEXT 10 YEARS expanding and managing our mineral resource base Rodney Quick Group GM Evaluation Mineral resource management strategy Manage the orebody from gold in the ground to profits only possible by ownership of the orebody Responsible for resource sustainability and thus responsible for feasibility and replenishment gatekeepers to ensure reserves pass our filters Geological, resource and geotechnical model defines the mining method Upfront trade off studies required on principal concepts open pit vs underground, decline vs shaft, mining method cave or open stope, backfill options CAF vs paste Optimisations and mine design, which encompass a capital mine design followed by production schedule Geometallurgy drives metallurgical testwork, representativity of samples critical 1

2 Strategic filters Does it apply principally to gold? Have we identified and understood the country risks? Does it fit our values? Will we have active management participation Will it enhance our partnering network Does it diversify our geographical exposure? Does it have a reserve potential greater than 3 million ounces of gold? Does it have the potential to be + 200,000 oz per year producer Can we move it up the value curve? Does it have the potential to be in the lowest total unit cost quartile? Can it produce an IRR in excess of 20%? Does it have a payback of less than 2 years? Is it accretionary to our share value? Resource and Reserve management Resources declared at $100/oz, using LOM costs Upside long term gold price and costs Identifies short term opportunities Ensures infrastructure does not sterilise upside Reserves declared at $1000/oz, using LOM costs Long-term gold price and costs Reduces risk ensures long term sustainability Profitability over ounces Include dilution and ore loss (not gold loss) Requires prefeasibility level study before declaration Only Indicated and Measured resources can be converted to reserve Mining cut off grades Full Grade Ore, Marginal Ore and Mineralised Waste Based on annual budget gold price and costs within the reserve declaration Adjusted annually 2

3 Resource triangle Reserve definition Operating Mines Morila Loulo Tongon Gounkoto Kibali Measured and Indicated Resources 6 1 Inferred Resource Mali Senegal Côte d Ivoire DRC Exploration Targets Resource and Reserve declaration Moz Grade g/t,00 4,00 3,00 2,00 1, Attributable Mineral Reserves Attributable Mineral Resources outside Reserves Reserve Grade - 3

4 Tongon 2014 model with 2014 drill data 2013 model with 2013 drill data 1000/oz pit Southern Zone - looking North Significant orebody thickening leads to a 40koz increase in the in pit resources Updated scarn type model The widening orebody at the intersection of steep and shallow dipping zones Gounkoto UG Feasibility Updated UG mine design 1Moz reserve potential Looking to start decline in 2018 and be at full production when pit completes in 2020 Extends Loulo-Gounkoto plan to achieve close to +600koz for 10 years Low capital design Decline from pit CAF plant on surface No underground crushing Vent raises to hole into the pit 4

5 Yalea drill results show high grade extension to orebody Yalea long section looking west 2.7Km Intersection Yalea Structure (upper strand) Intersection Yalea Structure (lower strand) N Dip change (Yalea Shear) 60 o dip 80 o dip Gold g/t >8g/t 8g/t 3 g/t 0. 3g/t <0.g/t YaDH13 3.6g/t YaDH1 6.42g/t High grade open to the south as well as at depth below the block model, generating several new exploration targets Underground optimisation focussing on extending the reserves Conversion Target potential for g/t Conversion Target potential for g/t Gara focus on extending high grade mineralisation Gara long section looking east N L0CP g/t 2Km L0CP174 L0CP17 L0CP g/t Warp Fold Axis Gold g/t >8g/t 8g/t 3 g/t 0. 3g/t L0CP g/t L0CP177 Conversion Target potential for 400 +g/t L0CP g/t L0CP g/t High grade mineralisation open down plunge S Fold Axis

6 Kibali Gorumbwa deposit SW Gorumbwa historical pit Historical Shafts Current $1000/oz Shell NE Additional potential lodes Historical Underground Depletion Potential +300koz within $1000/oz shell 90% recovery Shafts and voids within the pit 100m Mineralised lodes Massawa Comparison of assay results BM Validation Original Fire Assay Au Leachwell Au Screen Fire Assay Total Low grade High grade phased approach - Integrated orientation programme to test different drill and assay methods Based on results - a phased drilling process to drill out the Central Zone using optimal drill spacing and assay methods Central Zone - block models of high grade lodes 6

7 Ten Year Plan 10 Year production profile including Gounkoto UG and Massawa Oz 000 year plan 10 year plan LOULO GOUNKOTO OP GOUNKOTO UG MORILA (40%) TONGON KIBALI (4%) MASSAWA Disclaimer CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the historical information contained herein, the matters discussed in this presentation are forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934, and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, the estimation of mineral reserves and resources, the realisation of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination and reserve conversion rates. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as will, plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or state that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Assumptions upon which such forward-looking statements are based are in turn based on factors and events that are not within the control of Randgold Resources Limited ( Randgold ) and there is no assurance they will prove to be correct. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Randgold to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to mining operations, including political risks and instability and risks related to international operations, actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, as well as those factors discussed in Randgold s filings with the US Securities and Exchange Commission (the SEC ). Although Randgold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Randgold does not undertake to update any forward-looking statements herein, except in accordance with applicable securities laws. CAUTIONARY NOTE TO US INVESTORS: The SEC permits companies, in their filings with the SEC, to disclose only proven and probable ore reserves. We use certain terms in this release, such as resources, that the SEC does not recognise and strictly prohibits us from including in our filings with the SEC. Investors are cautioned not to assume that all or any parts of our resources will ever be converted into reserves which qualify as proven and probable reserves for the purposes of the SEC s Industry Guide number 7. Randgold reports its mineral resources and mineral reserves in accordance with the JORC 2012 code. As such numbers are reported to the second significant digit. They are equivalent to National Instrument Mineral resources are reported at a cut-off grade based on a gold price of US$1 00/oz. The reporting of mineral reserves is also in accordance with Industry Guide 7. Pit optimisations are carried out at a gold price of US$1 000/oz, except for Morila which is reported at US$1 300/oz. Mineral reserves are reported at a cut-off grade based on US$1 000/oz gold price within the pit designs. Underground reserves are also based on a gold price of US$1 000/oz. Dilution and ore loss are incorporated into the calculation of reserves. Cautionary note to US investors: The United States Securities and Exchange Commission (the SEC) permits mining companies, in their filings with the SEC, to disclose only proven and probable ore reserves. Randgold uses certain terms in this annual report such as resources, that the SEC does not recognise and strictly prohibits the company from including in its filings with the SEC. Investors are cautioned not to assume that all or any parts of the company s resources will ever be converted into reserves which qualify as proven and probable reserves for the purposes of the SEC s Industry Guide number 7. 7