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Transcript of Projects & Studies - Newcrest Mining€¦ · Area history – Previous work concentrated on large...
Projects & Studies
Ron Douglas – EGM Projects
2
Project Portfolio – significant opportunities
3
Cost over-run impacts can be significant
PROJECT COMPANY FEASIBILITY BUDGET
ACTUAL / FEASIBILITY
RAVENSTHORPE BHP BILLITON US$1.0Bn 210%
GALORE CREEK TECK/NOVAGOLD US$1.1Bn 450%
BODDINGTONNEWMONT/
ANGLOGOLD A$2.0Bn 190%
PROMINENT HILL OXIANA (OZ) A$690m 160%
LIHIR EXPANSION LIHIR US$500-550m 140%
Source : Company & Media Reports
4
Most large-scale transformation projects fail
Why Projects / Programs Fail
11%4%
10%
20%
4%
15%
36%
Others
Technical Problems
Problems with Suppliers
Ineffective Project Planning
Poorly Defined or Missing Project
Objectives
Poor Organization and Project
Management Practices
Insufficient Project Personnel Resources
Source: Standish Group International, Survey from 2500 personnel attending project management training
Large Programs Success Rates
Cancelled
Under Perform
Successful
53%
31%
16%
5
Australian Commodities (Dec 2007) Development Projects
Cap
ital E
xpen
ditu
re
Source: ABARE Dec 07
6
Newcrest Investment Management
Gold Book Standard
Newcrest Mining Limited Gold Book
Functional Documentation
Leve
l 3
Guideli
nes &
Pra
ctice
s
Leve
l 2
Manda
tory
Sta
ndar
ds
Leve
l 1
Manda
tory
Pol
icy
Part 4Feasibility Standard
Part 3Pre-Feasibility
Standard
Part 2Concept Standard
Part 1Investment
ManagementPolicy
Part 6Bus. Planning
Standard
Part 7M & A
Standard
Part 5Execution Standard
Post Investment
Review
Investment Evaluation Practices
Estimating Guidelines &
Practices
TemplatesGuidelines Checklists
Core Guidelines & Practices
General Guidelines & Supporting Documents
Part 8Low Risk/Com
Standard
Newcrest Mining Limited Gold Book
Functional Documentation
Leve
l 3
Guideli
nes &
Pra
ctice
s
Leve
l 2
Manda
tory
Sta
ndar
ds
Leve
l 1
Manda
tory
Pol
icy
Part 4Feasibility Standard
Part 3Pre-Feasibility
Standard
Part 2Concept Standard
Part 1Investment
ManagementPolicy
Part 6Bus. Planning
Standard
Part 7M & A
Standard
Part 5Execution Standard
Post Investment
Review
Investment Evaluation Practices
Estimating Guidelines &
Practices
TemplatesGuidelines Checklists
Core Guidelines & Practices
General Guidelines & Supporting Documents
Part 8Low Risk/Com
Standard
Functional Documentation
Leve
l 3
Guideli
nes &
Pra
ctice
s
Leve
l 2
Manda
tory
Sta
ndar
ds
Leve
l 1
Manda
tory
Pol
icy
Part 4Feasibility Standard
Part 3Pre-Feasibility
Standard
Part 2Concept Standard
Part 1Investment
ManagementPolicy
Part 6Bus. Planning
Standard
Part 7M & A
Standard
Part 5Execution Standard
Post Investment
Review
Investment Evaluation Practices
Estimating Guidelines &
Practices
TemplatesGuidelines Checklists
Core Guidelines & Practices
General Guidelines & Supporting Documents
Part 8Low Risk/Com
Standard
7
Newcrest - mature imbedded delivery strategy
OPERATIONCONCEPT PRE-FEASIBILITY FEASIBILITY EXECUTION OPERATIONCONCEPT PRE-FEASIBILITY FEASIBILITY EXECUTION- OPERATIONCONCEPT PRE-FEASIBILITY FEASIBILITY EXECUTION
1. Gate the right projects (Business context)
2. Plan the path forward (Scope/contract style/schedule)
3. Build the team (Alignment and Operational Integration)
4. Monitor and Report (Scope and Change Management)
5. Manage risk (Process driven)
Principles of Newcrest “Gold” Standards
8
Newcrest Growth Pipeline
CONCEPT PRE-FEASIBILITY FEASIBILITY CONSTRUCTION
Namosi
Marsden
Cadia East Panel Cave
Telfer Trough Cave
Gosowong Expansion
Hidden Valley
Ridgeway Deeps
Wafi/Golpu
Projects In Study
Max Esparon – GM Projects
Cadia East Underground NEW SOUTH WALES
11
Cadia East – key data
GoldMineral Resource 28MozOre Reserve 15.8Moz
CopperMineral Resource 5.57MtOre Reserve 2.68Mt
Pre-feasibility study completed December 08
World record underground development rates at low cost
First Production expected in 2011
Significant positive cashflows for +30yrs from 2012
Newcrest resource & reserve estimate as at 30 June 2008
12
CADIA EAST – ore body location map
RW Subsidence RW Subsidence
Cadia HillCadia HillCadia Hill
Plant Plant
Cadia East Orebody
Cadia East Orebody
Cadia ExtendedCadia ExtendedCadia Extended
RW Subsidence RW Subsidence
Cadia HillCadia HillCadia Hill
Plant Plant
Cadia East Orebody
Cadia East Orebody
Cadia ExtendedCadia ExtendedCadia Extended
13
Cadia East – ore body diagrammatic
Ridgeway Deeps Block Cave
Cadia Hill
Cadia East Panel Cave
Resource of 83 million gold equivalent ounces (Approximation calculated at Gold: US$600 per ounce; Copper: US$1.70 per pound)
Ridgeway Sublevel Cave
14
Cadia Hill Pit
CEU Decline
Lift 2
Lift 1
Investigation Drives
400m
Current Decline Phase Position
400m
Surface
1200m
4250RL
4650RL
Lift 0
Cadia East – pictorial access and mining approach
Orebody Open
Orebody Open
Orebody Open
17
15
Cadia East – proposed project
Lift 0
Lift 1
Lift 2
Main Decline Conveyor Decline Vent Raises
Australia’s largest underground mine and first application of Panel Caving mining:
26Mtpa mining rate3 x 400m lifts220km of lateral development20km of vertical development90 extraction drives2,876 draw pointsMaterial handling by conveyor beltDepth of the extraction levels: Lift 0: 800m, Lift 1: 1,200m and Lift 2: 1,600m
16
Overview
Conveyor Decline
Main Decline
Lift 0
Lift 1
Lift 2
Investigation Drives Lift 0
Investigation Drives Lift 1
17
Conveyor System Overview
Lift 0
Lift 1
Lift 2
Portal
18
Lift 1 Extraction Level
Crusher locations
Crusher locations
19
Mine Configuration Alternatives Flowchart
UndergroundPanel Cave
3 Lifts 0, 1, 2
UndergroundSub-Level Cave
Production RateMining Method Vertical Ore Handling
Conveyor / Shaft Hybrid
Conveyor
Shaft
Lateral Ore Handling
Electric LHDsCrushers Outside
Footprint (EL)Trunk Conveyors
UndergroundPanel Cave& Open Pit
21Mtpa
13 / 21Mtpa
26 Mtpa
13 Mtpa
Automated LHDs
Sizers Inside Footprint (EL)
Panzers
Trough Cave
Cadia East PFS
UndergroundBlock Cave
Diesel LHDs
Trains/ Trucks
Benefits:Low mining costMaximise resource useHigh prod’n rate
Similarities:All based on caving
Penalties:Interaction of devp’t & mining
Benefits:Gold prod’n target 575,000 oz paHigher rates maximise NPVWithin known infrastructure limits
Similarities:All based on caving
Penalties:Interaction of devp’t & mining
Benefits:Proven technologyReduced excavation costsLower emissions
Similarities:Interaction of LHDs & crushers
Penalties:Uplift may provide more efficient/ lower cost operations
Benefits:Capacity to meet prod’n uplift 26 MtpaProven technologyLow net cost
Similarities:Functionality & reliability
Penalties:Ventilation
20
Processing and Infrastructure Configuration Alternatives Flowchart
Cadia East PFS
132kV Augmentation
Gas Power Station
WaterPower
Belubula +15m URCD +
Backbone Pipeline
Wyangala PipelineOffstream storageEffluent Supplies
Tailings Dewatering
Alternative Renewable
Energy Solutions
Tailings Disposal
Expansion of NTSF + STSF
New Tailings Dams: to extend
past 2030 or for > 27 Mtpa
ProcessingUplift Case 32 Mtpa
New 8 Mtpa Mill + Expansion LG Mill
to 18 MtpaAugment feeder
lines
ProcessingBase Case 27 Mtpa
New 8 Mtpa Mill
Expansion of LG Mill to 18 Mtpa
2 New 8 Mtpa Mills
Benefits:New Mill provides information for debottlenecking LG Mill – min disruptHPGR technology:• incr tolerance of frag. variation•Lower op costs
Similarities:Ball mills & flotation cells
Penalties:Risk of new technology
Benefits:Lower capital costInfo processing ore in New Mill used to plan expansion & debottlenecking
Similarities:Ball mills & flotation cells
Penalties:Miss savings afforded by dupl’n
Benefits:Low capital costOpportunity to work with electricity supplier
Similarities:Electricity is essentially a commodity
Penalties:Reliance on Network Service Provider
Benefits:Development of and operation of assets controlled by Newcrest
Similarities:Water processing requirements similar
Penalties:Potential to expand capacity of on-site assets is limited
Benefits:Continuation of existing operationsOpportunity to investigate new technologies such as thickened tailings
Similarities:Based on NTSF & STSF
Penalties:High cost of installing new tailings dams in 2030
21
Cadia East – proposed ore processing
22
Power
CH CE 32Mtpa
23
Water
AnnualProduction
(Mtpa)
PlantWater
Demand(ML/day)
ThickenerWater
Recovery(ML/day)
TailingsReturnWater
(ML/day)
Make-upWater
(ML/day)
Comments
22.5 110 62 28 20 Current
24 117 66 30 21 Improved water management
27 132 74 34 24 Additional on-site water storage
32 156 88 40 28 Additional storage and makeup
24
Cadia East – project milestones
Study Forecast ActualConcept Dec 2005Pre-Feasibility + Access Dec 2008
Feasibility + Access Dec 2009
Permitting Dec 2009
Project Forecast Actual
Project Approval Feb 2010Commence Undercutting 2011Ore Production 2012
25
Cadia East - world class development rates
World Record Development Rates & Costs
170
260
311
0
50
100
150
200
250
300
350
Industry Average Cadia East Average over 9months (Sept - May 08)
Cadia East May 2008
met
res
adva
nced
per
mon
th
4500
6500
0
1000
2000
3000
4000
5000
6000
7000
Industry Average Cadia East Average
A$
per m
etre
of u
nder
grou
nd d
evel
opm
ent
Industry Recognition
26
Cadia Valley - production profile
Gold Production Koz
+500 +575 +650FY 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Ridgeway
Ridgeway Deeps Ridgeway Deeps 2
Cadia East
Cadia Hill
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
28.0
30.0
32.0
34.0
Ore
Mill
ed (M
t)
Copper Production kt +75+55 +90
+750
+105
Namosi – Concept Study
28
Namosi sound basis
Tenements– Namosi Project area the subject of Special
Prospecting Licence (SPL) 1420– Joint Venture for Development– Newcrest, Mitsubishi, Nittetsu
Community– Good relations with local community – Government supportive and promoting
29
Namosi - mineral resource estimation
Waisoi - Tonnage Grade Curve
0.00
0.20
0.40
0.60
0.80
1.00
1.20
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0
Cutoff (Cu%)
Gra
de
0
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
Tonn
es
Cu (%) Au (g/t) Tonnes
30
Process Water StorageTailings Storage Facility
Waste Rock Dumps
Access Road and Infrastructure Corridor
Filter Plant and Power Station
Port
Waisoi Open Pits Concentrator
NADI
SUVA
Viti Levu IslandWAISOI
DEPOSITSBoundary of Exploration Tenements (SPL1367)50 km
Namosi - site location and layout
31
Namosi - mining study approach
Resource characterisation:
– Large tonnage porphyry copper-gold
– Shallow with a very low open pit strip ratio
– Low metal grades - bulk mining methods
– Steep terrain and very high rainfall
32
Options Evaluated
33
Process Plant Layout
34
Geothermal and hydro-electricity potential
Savu Savu areaGeo 200Mw potential
Labasa areaGeo 100Mw potential
Waisoi Deposits
Navua River75Mw H potential
Wainavadu & Sovi Areas25Mw H potential
Nadarivatu - 45Mw H project
Monasavu80Mw H existing
Wafi – Concept Study
36
Wafi – concept development
Golpu Porphyry
Block caving concept being refined
Supergene
400
600
200
0
-200
Gold Cap
Mineralised Metasediments
Wafi
Supplementary pit concept
Higher grade Link Zone low capital, starting opportunities
37
Wafi Golpu
Source: http://www.harmony.co.za/im/files/presentations/PNG_conference_30oct07.pdf
38
Wafi Golpu
Area history– Previous work concentrated on large scale entry into the area focussing
on Golpu gold/copper deposit– Significant capital expenditure
Current approach– Establish “beach head” project enabling further exploration and study of
the district whilst generating cash– Minimise upfront capital and project risk– Concentrate on “gold only” operations initially so that large gold/copper
systems can be better understood
39
Project Opportunities
Link and NRG combinations– Pit only oxide ore gold option– Pit and Underground refractory ores– CIL circuit supplemented with low cost bio heap technology for refractory
ore
Nambonga– Exploration stage– Multiple processing and mining opportunities
Telfer WESTERN AUSTRALIA
41
Telfer bulk mining studyProject scopeInvestigate bulk mining methods to apply to Telfer Deeps that will:
Project statusFinalising mining alternatives and designs Completing geotechnical investigations and modelingCommenced financial modelling and risk assessment
Target Area11Mt mine planning reserveLow grade SLC reserves and residual cave stocks
Reduce mining costsMaintain production continuity Enhance reserves ounces
42
Telfer trough cave
Conversion of Telfer SLC to Trough Cave once mining of I30 reef completed
Advantages over block cave:
30 – 40% reduction in development costsSimplified constructionFaster establishment of draw points and undercut Similar recoveries
43
Technology management is important
In Place at NewcrestMass Mining (low cost base)
Sub level Cave Block Cave Panel Cave ( Trough Cave)RWD Pre-conditioning, CEU Ore-handling, Telfer trough caving
Rapid Cave Establishment: Cadia EastAutomated mining: RWD LHD’s
Relationships: UQ MMT, CRC, CODELCO, AMIRA
Being initiatedRemote Operating Centres.Processing: Dump leaching, metal production, mine to mill sizing
Caving Expertise
German Flores – CVO Cadia East Underground Pre-Feasibility Study Manager
45
1. The mining industry could be producing more ore from underground than from open pits in the next 10 to 15 years time
2. Caving techniques offer step change, competitive advantages due to the low mining cost and high production rate
Trends in Block/Panel Caving Methods
46
Trends in Block/Panel Caving Methods
Cadia Hill Pit
Lift 2
Lift 1
Surface
1200m
Lift 0
800m
1600 m
New competitive technologies:– Rapid mining at twice Year 2000 rates– Increased Automation: factory concepts and miner-less– Continuous Mining– Factory like, underground layouts and materials handling
New applications to:– Stronger, less easily cave-able orebodies– Deeper orebodies (including “blind” deposits)– Lower grade orebodies– Larger extraction heights (from 400 to 800m)– Transitioning from large open pits
Changing demands on, and skill sets of, managers, engineers and operators
47
Caving Technology Evolution
BEFORE 1980
• BC - Fully manual operation• Small extraction layout/drives• Short round (max 1.8m)• Dynamite/Fire detonators
FROM 1980 to 2000
• PC - Diesel LHD with operators (5 to 7t) • Longer round (2.4 to 3.0m) with Anfo & Non-ED• Rock breaker with ore passes and grizzles• Truck or train/centralised underground crusher (gyro)• New US (pre and advanced undercut)• Bigger drives and extraction layout• New ground support concepts• Seismic monitoring
Weak ore
Deeper and harder
ore
48
FROM 2000 to 2012
• Panel caving/Trough caving• Automated diesel/electric LHD (9 to 20t)• Longer round (3.0 to 6.0m)• Distributed UG crusher (jaw) & conveyors• New MHS concepts/Preconditioning• Rapid Dev in a single/multiple headings• Much bigger drives and extraction layout• New explosives (emulsion) & ED
FROM 2012………
• New exploitation concepts• Mechanical excavation• Continuous mining• Full automated mine• Remote operation centre
Caving Technology Evolution
Much deeper and harder
ore
49
Preconditioning : A Step Change Enabler
Very strong and competent rock mass with a few joint sets
Preconditioned rock mass
Rock mass weakening by hydrofracturing
and/or drilling & blasting techniques
Undercut level
Extraction level
Pre-conditioning is a process implemented before the initiation of caving to alter the inherent characteristics of the target rock mass to enhance its caving and fragmentation characteristics.
Ridgeway Deeps Project & Cadia East Base Design
50
Rapid Development: A Step Change EnablerAtlas-Copco L2C30 Jumbo
Schaeff Tunnel header
20 t Toro 0011 LHD
Atlas-Copco L2C30 Jumbo
MR 620 Roadheader MR 620 Roadheader
1
2
3
Ridgeway Deeps NEW SOUTH WALES
52
Ridgeway Deeps – approved business case
Implementation Capital A$545M
Cash cost A$82/oz after by-product credits (at copper price of US$1.50/lb)
Production profile over 8 yearsGold ~ 1.6 MozCopper ~ 210 kt
Production commences mid 2009 Potential for 2nd Block Cave
53
Ridgeway Deeps – ore body and development
54
Ridgeway Deeps - extraction level layout
55
Ridgeway Deeps - extraction Drive & drawpoints
56
Ridgeway Deeps – conveyor infrastructure processing
57
Secondary crusher installation
58
Ridgeway Deeps - Horizontal Development KPI Chart
-
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
Jul-0
7
Aug-
07
Sep-
07
Oct
-07
Nov
-07
Dec
-07
Jan-
08
Feb-
08
Mar
-08
Apr-
08
May
-08
Jun-
08
Jul-0
8
Aug-
08
Sep-
08
Oct
-08
Nov
-08
Dec
-08
Jan-
09
Feb-
09
Mar
-09
Apr-
09
May
-09
Jun-
09
Jul-0
9
Aug-
09
Sep-
09
Oct
-09
Nov
-09
Dec
-09
Jan-
10
Month
M d
evel
oped
-1,0002,0003,0004,0005,0006,0007,0008,0009,00010,00011,00012,00013,00014,00015,00016,00017,00018,00019,00020,00021,00022,00023,00024,00025,000
Cum
ulat
ive
deve
lopm
ent
CAR Baseline Actual CAR Baseline Cum Actual Cum
Ridgeway Deeps – development progress
59
Ridgeway Deeps - on schedule and budget
Project on schedule and budget– Over 90% capital committed– Design 100% complete– Mine development is over 50% complete
Definitive Estimate confirmed budget
Total Project 45% complete
60
Ridgeway Deeps - conveyor decline complete
61
Ridgeway Deeps - changing rock characteristics
Hydrofracturing – managing outcomes
Medidor de Flujo
Bomba de cebado
Estanque de Agua
Transductor de Flujo
Registro Digital Proceso de Bombeo (presión, flujo)
Bomba Inflado del Packer
Packer
Packer
Salida Agua a Presión
Sensor de Presion Packer
Bomba Triplex 200 l/m 35 MPa
Amortiguador de Pulsaciones
Valvula Alivio de Presión
Sensor de Presión de Inyección
Barra BRQ Alta Presión
Manguera Alta Presión
Manguera Packer
flujo agua
flujo agua
flujo agua
flujo agua
High pressure pipe
Water flow
Injection pressure transducer
Water tank
Flow control device (flowmeter)
Data recorder during the pumping process
(pressure, flow)
Pump to fix the packers (inflation)
Centrifug al pump
Multiple piston pump
Chamber to maintain a constant pressure
Water flow
Flow transducer
Water pressure output which generate the fracture
Straddle packer system
62
Ridgeway Deeps - moving to automation
Automated Loaders
Ore Handling from control centre
Remote monitoring
Integrated information systems
63
Ridgeway Deeps - milestones being met
Activity Planned ActualStage 1Project Approved June 2007Extraction Level Development Commences September 2007Undercut Production Commences April 2008Eastern Crusher & Conveyors commissioned July 09Stage 2Western Crusher commissioned September 2009EPCM scope complete December 2009
64
Risk Driver Key Controls Status
Project DeliveryEPCM systemDedicated & Integrated project teamDirectly doing core mining work
CommittedCommittedCommitted
Production Continuity
Specific investigations & AnalysisGenerated surplus mine production capacity.Cave Management
In progressIn progress
Committed
Cave Propagation
PreconditioningCave ManagementLarge SpanTough segment firstIndustrial Engineering
CommittedCommittedCommittedCommittedCommitted
Ridgeway Deeps - risk management is important
Gosowong INDONESIA
66
Gosowong - Kencana Location
Kencana Underground
Gosowong Pit
Toguraci Pit
Portal
67
Gosowong - geology
High grade, low sulphidation (LS) epithermal Au / Ag systemHosted in Gosowong Formation rocks. Basaltic-andesitic lavas with interbedded volcanogenic mudstone and sandstoneSame host as Gosowong and Toguraci depositsLS epithermal deposits form in “fields” – typically not in isolation
1700g/t Au, 650g/t Ag
Kencana
68
Gosowong - growth history
Gosowong District Production and Reserves Growth
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Year
Moz A
u
Gold Outside Reserves 0.77 0.09 0.12 0.10 0.01 0.10 0.11 1.20 1.44 1.94 0.80 0.47
Gold Reserves - 0.78 0.75 0.43 0.28 0.29 0.25 0.28 1.05 1.27 2.40 2.34
Cumulative Gold Production - - - 0.275 0.502 0.734 0.772 0.852 1.075 1.262 1.609 2.038
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
K1 Resource Addition
K2 / K Link Resource Additions
K2 Reserve Addition
K1 Reserve & Resource Addition
69
Gosowong - Kencana model
K1
K2
K-Link
70
Gosowong - expansion project
Key Project ParametersGold production targeting >400,000oz per annumUG mining method to remain unchanged Mineralogy and metallurgy remain the same
K1 (existing) in Yellow K2 & Klink (expansion) in red
71
Gosowong – mine design
Life of Mine Design (Feasibility Study Design)
K1
K2
KLKLink
K2
K1
Klink Decline
(End of Sept)
K1 Decline
(End of Sept)
72
Gosowong - business improvement process plant
Mill Throughput
25.0
30.0
35.0
40.0
45.0
50.0
55.0
Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08
End of Month
Tonn
age
per H
our
30 Day Moving Average Step Changes
Classification System Upgrade
(AUD$332k Capex)
Re-crushing before Mill Input & Improved Blending Strategy
Cyclone Optimisation & Additional Water
Supply/Optimisation
Trunnion Magnet Installation (AUD$285k Capex)
Ongoing Optimisation of Ball Mill, SAG feed size and
cyclone efficiency
73
Gosowong – increasing recoveries and throughput
Tertiary Mill
Will achieve 30μm @ 50tph and up to 95% recoverySecond Hand Mill Scheduled completion by March 2009
74
Gosowong - expansion project schedule
Schedule of Key Stages Schedule ActualPre-feasibility Study complete March 2008
Mining (pre commitment) March 2008
Mill Debottlenecking (Rate 45tph) June 2008
Complete Feasibility Study Jan 2009
Targeted Production Rate (50tph) March 2009
Tertiary Mill Production April 2009
High Grade Ore production from K2 May 2009
75 75
Gosowong – expansion facilities layout
Scrubbing / Screening and Crushing
New Mills
New CCD Area
Power-House
76 76
Gosowong - leach and washing Area
77
Gosowong - has geothermal potential
Hidden Valley PAPUA NEW GUINEA
79
Hidden Valley
(1) Harmony Gold Mining Company Limited. JORC compliant estimate as at 30 June 2007. For details refer to Harmony website.
1984 - CRA defined Hidden Valley resource
1987 - Hamata deposit discovered by RGC
1998 - Aurora Gold acquired and completed a pre-feasibility study
2003 - Morobe Consolidated Goldfields re-evaluation of Hidden Valley and Hamata
2005 - Licence to mine issued by PNG Govt
2005 – Construction of access road commenced
2006 - Updated feasibility study completed
2007 - Construction activities commenced
80
Hidden Valley
81
Development
New mine development in PNG’s Morobe Province
JV with Harmony Gold Mining
PNG’s first major new mine development in 15 years
Project in construction
Production scheduled mid-2009
Average annual production of 250koz Au & 3.6 Moz Ag
14 year mine lifeHidden Valley Pit
Tailings dam construction
Hamata Pit
Processing facility
82
62% capital committed
Total project construction 64% complete
Key activities to date– commenced pre-stripping of pits– constructing tailings dam– construction of village, mess and
workshops– earth works & civils for
processing facility– Construction process plant
Project Status
83
Operations
Distance to Lae: 90 km
Road travel time to Lae: 4 hr
Hidden Valley pit at 2,700m ASL
Treatment plant at 2,040m ASL
Overland pipe conveyor:
11m SAG mill (2 x 5Mw)
Initial power from 19 on-site diesel generator sets
Permanent power from Ramu river hydro-generators
84
Ridgeline village & workshops
85
Process plant progress
86
Process plant progress
87
Process plant progress
88
Successful Landowner Association
Nakuwi Landowner Association in place (Nauti, Kweembu, Winima)
Nakuwi has formed business (NKW)
NKW participants in mine related business
Strong community programmes
High National employment levels
89
Opportunity to grow
Large existing resource and high prospectively
Processing– Expansion of existing plant
Power– 19 Gensets for initial 12 month operation– 18Mw from Yonki Hydro Power Station
Tailings– Additional sites identified
Hamanta PitHamanta Pit
Hidden Valley Pit Hidden
Valley Pit
Big WauBig Wau
YafoYafo
East Mine SiteEast Mine Site
Awei TuweAwei Tuwe
PhemaPhema
Tais CkTais CkSalembaSalemba
Upper BuloloUpper BuloloApuApu
BulldogBulldog
NosaveNosavePuruwangPuruwang