African Barrick Gold Buzwagi Site Overview November 2014
Contents 1. Introduction 2. Life of Mine 3. Processing Operations 4. Business Improvement Initiatives 5. Stakeholders 2
Agenda 1. Induction 2. Presentation 3. Lunch 4. Site visits Pit Process Plant TSF 5. Wrap -up 3
Introduction
Where Are We
Buzwagi Site Layout Mwendakulima N Mwime Chapulwa 6
Safety and environment Impressive safety performance in 2013 with TRIFR 0.27 and one LTI Obtained first stage of ICMI Certification in 2014 Designed as a zero discharge mine Low rainfall environment (c. 900mm per annum) Constructed 73 hectare rain water catchment area to minimise environmental impact 10 8 6 4 2 0 TRIFR 8.59 3.79 1.46 0.57 0.27 2009 2010 2011 2012 2013 TRIFR 7
Mine site Water Storage ROM pad Water Harvest Buzwagi Pit Tailings Dam Village Waste rock storage 8
Brief History of Buzwagi Gold Mine Gold mineralisation first was recognized on this property in the 1950 s Exploration began in 1996-1999 under the direction of Anmercosa (Exploration Arm of Anglo American Corporation) Pangea Minerals Ltd (PML) continued Exploration from 2000-2005 Pre-Feasibility study was carried out in December 2005 Feasibility study in 2006 Mineral Development Agreement and EIA approved in February 2007 Special Mining License 274/07 granted on 25th July 2007 Site Access 20th August 2007 Commenced Ore Mining and Stockpiling, October 2008 Plant Commissioning in Q1 2009 First Gold Pour in Q2 2009 Project Cost was $402M
Buzwagi Senior Management Team General Manager Philbert Rweyemamu Technical Services Manager Sam Eshun Process Manager Karel Schultz Mining Manager Mutereko Muganda Asset Reliability Manager Alex Murdoch Commercial Manager Amos John OE Manager S.Rwangabwoba Sustainability Manager George Mkanza BI.Program Manager Richard Ojendo. 10
Life of Mine
Life of Mine: Options Review In June 2013 work began to assess mine planning options to reverse Buzwagi's negative cash flow: Survival mode in the short to medium term Generate maximum possible free cashflow in the next 5 years Possibility of future re-capitalisation to continue the mine to its designed end of life Such re-capitalisation will be dependant on prevailing future gold price and the extent of funds required for ramping up back to full production Key strategies adopted in June 2013 were: Minimising capital expenditure, including capitalised waste stripping Deferring any rebuild or major component replacements not required for meeting the 5-year objective Maximising the mill feed grade Major labour and associated cost reduction across the board Minimising the hauling distances 12
Buzwagi resource / reserve model Reserve Model Stage 1 Stage 2 Stage 3 Stage 4 Resource Model below Stage 3 13
Cross-section of Stage 2, 3 and 4 pits with orebody Stage 4 Stage 3 Stage 2 14
Pit Stages 15
M tonnes Grade (g/t) Life of Mine: Options comparison Waste Tonnes Mined Au Grade 250.0 212.5 1.65 1.62 1.62 200.0 1.60 150.0 1.55 100.0 50.0 54.5 38.1 1.50 1.45 1.49 0.0 2013 2014 2015 1.40 2013 2014 2015 LOM LOM 2013: LOM of over 10 years with a 2.7 Moz Reserve 2014: LOM of 5 years with a 1.1 Moz Reserve 2015: LOM of 4 years with a 0.9 Moz Reserve 16
Ounces (koz) Reserves and Resources: 2013 vs. 2014 Tonnes (000's) 2013 YE 2012 YE Variance Grade Au Ounce Tonnes Grade Au Ounce Tonnes Grade Au (g/t) (000's) (000's) (g/t) (000's) (000's) (g/t) Ounce (000's) Proven and Probable 24,105 1.445 1,120 63,333 1.325 2,697-39,228 1.251-1,577 Mineral Resource 49,109 1.291 2,038 14,875 1.019 487 34,234 1.409 1,551 3,500-3,000 2,500 2,000-206 708-754 38 - - 330-1,500 2,697 1,033 1,000 500 1,120 - End 2012 2013 Depletion Mining Cost Gold Price Process Cost Others (cost) Scope Change End 2013 17
Processing Operations
Processing overview Capacity Capacity of 4.4 million tonnes milled per annum (c.12,000tpd) Process Gravity, flotation & CIL to produce dore and copper concentrate Concentrate trucked to port and sold to smelter Infrastructure 107 km power line, 400 person village 73 ha water harvest area Full back-up power capacity 19
Processing improvements and future strategies Achieved the plant designed capacity of 4.4 Mt in 2013 due to: Higher mill throughput rates Reduced unplanned shutdowns Implementation of short interval controls (SICs) Future strategies to maintain and exceed the nameplate capacity for LOM: Improved mill throughputs Mining to Mill ore blend strategy Reduced planned & un-planned shutdown times Maintain high crushed ore stockpile Better plant control strategies by SICs 20
Business Improvement
2014 Business Improvement priorities Mine to mill productivity improvements Improve grade control and block model Mining process improvements (fragmentation, services) Mining fleet optimisation (dispatch upgrade, payloads, reduced idling time) Improve overall equipment effectiveness Maintenance Increase mean time between failure (MTBF) and spares management Reduced maintenance cost per hour, reduce downtime and mean time to repair (MTTR) Process plant Improve stockpile management and blending to drive improved mill throughput and plant recoveries Appropriate maintenance strategies in place Other costs Supply chain optimisation (warehouse and inventory improvements) Labour optimisation (right people, right structure and motivation) Integrate asset protection into business processes 22
Stakeholders
Relationship with Key Stakeholders Buzwagi has a cordial relationship with the central as well as local Government Executives. The modes of engagement being: Enhanced working relationship management that promotes mutual understanding Establishment of Memoranda of Understanding with the law enforcement agencies Participation in local development activities through CSR
Education Chapulwa primary school buildings upgrade is one of the education projects sponsored by Buzwagi Mine. Chapulwa village is neighbouring the mine. School Building Before School Building After 25
Education Mwendakulima Secondary School Graduation
Infrastructure Buzwagi Mine has financed the upgrading of Kahama town roads network from compacted laterite to tarmac for a total of 5 km. The amount invested into the project is USD 2.2M Road Before Road After 27
Infrastructure Mwime road Road Before Road After
Health Before the project the residents of Mwendakulima had to walk more than 5km to access health services in the neighbour village. Clinic Building Clinic Staff Houses 29
Law Enforcement Agencies Police hall destroyed by fire Police hall after renovation 30
Livelihood projects Mwime trust fund Women s Entrepreneurship Training Beekeeping project Sungusungu project Training to 50 youth on Interlocking bricks making Farm Project Focus on Local procurement Employment (Focus on Localization) 31
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