North Mara. Site Visit September 2010

Transcription

1 North Mara Site Visit September

2 Disclaimer Important Notice This presentation has been provided to you for information purposes only. It does not constitute an offer, solicitation, invitation or inducement to purchase, subscribe or otherwise acquire or to sell or otherwise dispose of any securities of African Barrick Gold plc ("ABG") or engage in any investment activity in connection with the capital of ABG in any jurisdiction. The information or opinions contained in this presentation shall not form the basis of, or be relied on in connection with, or act as any inducement to enter into, any contract or commitment or investment decision whatsoever in connection with ABG. The information and opinions contained in this presentation are provided as of the date of this presentation and are subject to change without notice. ABG explicitly disclaims any responsibility, obligation or undertaking to update or revise any information contained in this presentation after its date, whether as a result of new information, future events or otherwise. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this presentation or its contents. Certain information, statements, beliefs and opinions in this presentation are forward looking. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words "plans," "expect," "anticipates," "believes," "intends," "estimates" and other similar expressions. All forward-looking statements involve a number of risks, uncertainties and other factors. Although ABG s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of ABG, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, forward-looking information and statements contained in this presentation. Factors that could cause or contribute to differences between the actual results, performance and achievements of ABG include, but are not limited to, political, economic and business conditions, industry trends, competition, fluctuations in the spot and forward price of gold or certain other commodity prices, changes in regulation, currency fluctuations (including the US dollar, South African rand and Tanzanian shilling exchange rates), ABG s ability to successfully integrate future acquisitions, to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves and to timely and successfully process its mineral reserves, changes in its business strategy, as well as risks and hazards associated with the business of mineral exploration, development, mining and production. Accordingly, investors should not place reliance on forward-looking statements contained in this presentation. Any forward-looking statements in this presentation speak only as of the date of this presentation and only reflect information available at the time of preparation. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any obligation or undertaking publicly to update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise. No statements made in this presentation regarding expectations of future profits are profit forecasts or estimates, and no statements made in this presentation should be interpreted to mean that ABG s profits or earnings per share for any future period will necessarily match or exceed the historical published profits or earnings per share of ABG or any other level. You are reminded that you have received this presentation subject to the disclaimer and important notices contained herein and on the basis that you are a person to whom this presentation may be lawfully made and delivered in accordance with the laws of the jurisdiction in which you are located. You may not and are not authorised to: (i) reproduce or publish this presentation; or (ii) distribute, disclose or pass on this presentation to any other person, in whole or in part, by any medium or in any form, whether electronically or otherwise. ANY FORWARDING, DISTRIBUTION OR REPRODUCTION OF THIS PRESENTATION IN WHOLE OR IN PART IS UNAUTHORISED. FAILURE TO COMPLY WITH THIS NOTICE MAY RESULT IN A VIOLATION OF APPLICABLE SECURITIES LAWS.

3 Who Are We Barrick acquired North Mara in February 2006 as part of the Placer Dome acquisition. North Mara Mine includes three open pit deposits - Gokona Nyabigena and Nyabirama Significant underground potential Mining Operations at 22Mt/y includes conventional hard rock open pit mining using Terrex drills, RH 120/170 hydraulic shovels and CAT 785 mechanical drive haul trucks. Ore Processing at 2.8Mt/y includes crushers, an open circuit SAG mill and closed circuit ball mill. Carbon in leach (CIL) and gravity technology extract the gold, followed by electrowinning. Gold is refined to doré on site. North Mara is commissioned into the national power grid

4 Location: Where Are We

5 Location: North Mara Community Gokona Nyabigena Nyabirama

6 Environment: Management Environmental Management System (EMS) ISO14000 compatible Monitoring Air Water Land Bio-diversity Legal Register Permits, Licenses, Agreements, Activity Based Audits/ Inspections / Incidents Internal Barrick Corporate once a year. External NEMC and other government agencies Submit quarterly and annual reports to the government.

7 Environment: Monitoring Regime Down Stream Midstream Upstream

8 Environment Compliance - Externally imposed: Permits, legislation, EIS, SOX & EIA s, Community & other WWF, LVBO, NEMC, Government Voluntarily imposed: Cyanide code, ICMM, ISO14000, NYSE Self-imposed: GHG (Greenhouse gases e.g carbon footprint, AQA), H2O Conservation (plant), SOX, Closure

9 Reserve & Resource Category 31 st December st December st December 2009 Proven 2,189,000 1,760,000 1,198,603 Probable 1,305,000 1,207,000 1,472,255 Stockpiles 100, , ,320 Total Reserve 3,594,000 3,093,000 2,949,178 Measured 402, , ,641 Indicated 399, , ,335 Inferred 98,000 43, ,057 Total Resource 899,000 1,169, ,033 * Resource excludes Reserves

10 People: Organisational Structure

11 People: Staffing Detail

12 Gold Plant Process Flow

13 Performance YTD June 2010 North Mara Three month ended Six months ended 30 June 30 June Tons mined Kt 5,133 4,022 9,644 7,916 Ore mined Kt 764 1,559 1,447 2,738 Ore milled Kt ,338 1,328 Head grade g/t Mill recovery % Ounces produced Koz Ounces sold Koz Cash cost/oz sold $/oz Cash cost/ton milled $/t Capital expenditure $(000) 20,552 4,339 36,682 13,272

14 Ounces Gold Production Gold Production 250, , , ,000 50,000 Au Recovered H Year

15 H Highlights Retained/strengthened NMSLT Engaging the community Engaging the government Delivered on Commitments Consistent delivery Met/exceed budget for 11 months now Seeking Additional Ounces Underground potential In-pit resources

16 Near Mine Exploration Gokona Orebody June 2010 Pit Rama Orebody June 2010 Pit Stage 3 Pit Stage 4 Pit Gokona Underground (Feasibility) Rama Underground (Conceptual)

17 Potential Additional Mineable Ounces 2011 Satellite Pit Potential GENA EAST 35m EXTENSIONAL DRILLING 150m New Potential Reserve Ounce Drilling in 2010 to deepen pit & access more ounces. Potential c. 50,000 oz Drilling for Additional EOY 2010 Gena East + Far East Potential c. 50,000oz

18 Focus Areas - FYR 2010 Stakeholder Relationship Management Water Management Governance/Audits Land Acquisition Operational Excellence Employee Mobilization Capital Management Grow Resource Base

19 Short Mid-Term Priorities Govt/Community Relations Mining and Geology Top Initiatives Planned - FYR 2010 Advance the Engagement Process (Govt and Communities) Close-out historic agreements Aquire LOM land Renew - EMP and SML and Permits R C grade control - (MCF 99%) VAB - (fragmentation optimization) Optimize Plant Head-Grade - (RC/Stock-pile mgt) New Explosive Plant Gokona II and Rama Stage III cut-backs Discharge of Gokona/Gena/Rama water Top Initiatives Planned - FYR 2014 (Medium Term) Enhance relationships through mutual trust and accountability Partner Community/District/Region in development plans Seek additional resources (within operating pits and beyond) Execute LOM pit cut-backs Determine/Accelerate underground potential People Employee Mobilization - (Competence, Performance and Reward) Site facilities and employee transportation People Development - (technical & leadership skills) Gold Plant Optimization Plant Up-grade - (when complete up to 4% additional recovery and improved throughput) Complete TSF Lift - (1260m) WTF - (Water treatment facility) Cyanide de-toxification Complete Plant up-grades Optimize gold production - (plant performance) Execute LOM TSF Lifts - (1280m) Mine Equipment Performance Cost Management Complete Gokona Work-shops Implement Jig-saw - (HME monitoring system) Implement In-thinc - (Vehicle monitoring system) Achieve planned $/t and $/oz Capital Management Contractor Management Centralized Procurement Optimize performance - (people and equipment) MARC/Owner - (trade-off study) Stabilized power supply