site visit…january 2014 kibali gold mine location…
TRANSCRIPT
Site visit…January 2014
Kibali gold mine location…
Mombasa-Kibali supply route…
DRC
DistancesCurrent route
1759 km
Alternative route
2337 km
UgandaKenya
Entebbe
Kampala
Kibali Gold Mine
Mombasa
ì
History of the Kibali project…
September 2009…Randgold and AGA acquired 70% of Kibali project through acquisition of Moto Gold
December 2009…a further 20% purchased from the DRC Government parastatal, Sokimo
Specific objectives at date of acquisition were:
Restate resource model
Optimise feasibility study to include full resource potential of the Kibaligeological model
Build road from Ugandan border to Doko to enable effective logistical supply to the project for construction
Clear illegal miners from the exclusion zone
Establish and maintain security on project area through the full involvement of the Central and Provincial Governments
Resettle over 4000 families to 14 villages in new city of Kokiza
First gold targeted for 2015
In 2011 first gold guidance revised to December 2013
Kibali…project update to December 2013
First gold poured 24 September 2013
Oxide circuit commissioned before end September 2013 ahead of schedule
Remaining sulphide circuit on track for commissioning end Q1 2014
Shaft main sink commenced October 2013
RAP construction completed (4232 houses) and 100% of the families resettled at Kokiza
24 diesel generators commissioned (12 in Q3 and 12 in Q4)
Concentrate tailings facility completed
Nzoro 2 hydropower station construction completed and turbines / generators installed
Nzoro 2 penstock and canal 50% complete
Stakeholders…
Stakeholders Participation…
45%
45%
10%
Kibali shareholding
Randgold Resources AngloGold Ashanti Sokimo
Government participation held by way of Sokimo interest
Kibali Health and Safety…
Safety performance…
0
5
10
15
20
25
30
35
0
1
2
3
4
5
6
7
2011 2012 2013
LTI LTIFR
LTIFR LTI
Health…malaria
0
20
40
60
80
100
120
2011 2012 2013
MIR
Health, safety and environment…
2 mine rescue teams trained
3 fire cars arrived on site
New mine clinic completed and X-ray installed
Medical evacuation simulations on-going
Water monitoring programme - improvement in potable water quality
Dust monitoring programme initiated
New waste site identified
GRI Reporting monthly
New nursery and eco centre established
SHE awareness programmes
Malaria vector control - bush clearance and spraying of camps and surroundings continue
Kibali exploration and upside potential…
Congo Craton…today
!
!!
!
!
!
!
!
!
Kibali21.5Moz
DRC
500km
ProterozoicArchean
Kilo Goldmines2Moz
Zani Kodo1.2Moz
Mongbwalu
2.2Moz
Twangiza
5 Moz
Major gold
occurrences
N
Kibali…geology and geophysics
Magnetic Radiometric
Electromagnetic Geology
KCDN
60km
Kibali…Geological Model
KCD
3D Looking SW
Durba
9000
5000 3000
NE
NE
East
Transfer
Structure
Examples of S1 foliation being folded (F2) into
‘rods’ and younger crenulation. Develops at all
scales
Intersection lineation is parallel to the long axis
of mineralised lenses of the gold deposits
Kibali…KCD deposit cross sectiongeology and structure
Kibali upside…KCD orebodies
3000 lode –
untested area
for
mineralization
$ 1000 KCD
pit
9000 lode -
Potential
resource
conversion
Phase 2
$ 1000 KCD
pit
$ 1000 Sessenge
pit
9000 lode -
Sessenge open
pit, review
HG
opportunities
5000
$ 1000
Sessenge pit$ 1000 KCD
pit
Phase
2
50 gm /
m100200300
HG
Potential
9000 lode –
ESE trending
HG
opportunities
5000 lode –
down plunge
extension
$ 1000 KCD
pit
5000 lode –
Up plunge Durba
Hill and ESE
extensions
Kibali Upside…brownfields
Mengu Hill
Reserve - 479KozResource outside reserve – 237Koz Resource outside
reserve – 258Koz
Megi
Gorumbwa
Resource outside reserve – 394Koz
KCD Sep 30th 2013
Mengu village
Resource outside reserve – 39Koz
Pakaka
Stockpile - 241Koz Open Pit Reserve – 1,500Koz Open pit resource outside reserve –1,446Koz Underground Reserve – 8,009KozUnderground resource not in reserve –9,351Koz
Kombokolo
Reserve - 91KozResource outside reserve – 54oz
Sessenge
Reserve – 228KozResource outside reserve – 181Koz
Pamao
Reserve - 262KozResource outside reserve – 447Koz
Resource outside reserve – 59Koz
Marakeke
Ndala
Resource outside reserve – 33Koz
Reserve - 741KozResourc e outside reserve – 437Koz
Kibali R.
Nzoro R.
Aru / Arua
Watsa
Dome
Reserve
Resources
Sayi
Mofu
GF Targets
Agbarabo
/ Rhino
Kibali exploration team continues its hunt for new ounces…
Rambi
High grade rock
samples at Dri:
12g/t, 6.7g/t,
9.5g/t, 2.8g/t,
8g/t over 3.5km
associated with
ironstone
KCD
10km
Memekazi
RC drilling defines
near surface target
18m @ 3.3g/t, 20m @ 5.9g/t
Kalimva/Ikamva
New models reprioritise
targets which locate on
major regional fold
in ironstones
N
Belengo
Kilo JV…reinvesting our future returns
10km
Thrust duplication crosscut
by NE transfer structures
30km major thrust
Rotation into D2 shear
Pressure shadow
around intrusive
SE plunging
anticline
Jog in NE
corridor
30km NW dextral
shear
D1,D2
intersection
Legend
Geology
Amphibolite
Banded iron formation
Biotite granite
Dolerite
Gneiss
Granite
K rich sediments
Mafic volcanic
Metasediments
Quartz feldspar porphyry
Volcanosediments
Geological interpretation of Isiro Belt
Preliminary target
areas
Geological interpretation of Ngayu Belt
ISIRO BELT
NGAYU BELT
50km
N
Kibali mineral resources and reserves …
Kibali mineral resources…Q2 2013
Category Tonnes (Mt) Grade (g/t) Gold (Moz)
Measured
and indicated149 3.6 17
Inferred 52 2.7 4.5
Kibali R.
Nzoro R.
Aru / Arua
Watsa
Dome
Pakaka
16.6Mt @ 2.21g/t, 1.19Moz
Pamao
14.4Mt @ 1.54 g/t, 709koz
Mengu Hill
8.3Mt @ 2.62 g/t, 698koz
Kombokolo
2.1Mt @ 2.1 g/t, 145koz
Sessenge
10Mt @ 1.27 g/t, 409koz KCD
Open pit
38.36Mt @ 2.43 g/t, 2.99Moz
Underground
98.63Mt @ 4.55 g/t, 14.41Moz
Kibali mineral reserves…Q3 2013
Sessenge KCDopen pit
“box cut”
declines
Vertical
shaft 760m
Old Durba
plant
90005000
3000
N
Type Category Tonnes (Mt) Grade (g/t) Gold (Moz)
Stockpile Proven 3.2 2.3 0.2
Open PitsProven and
Probable42 2.5 3.4
Underground Probable 44 5.7 8.0
TotalProven and
Probable89 4.1 12
Kibali Mining…
Kibali KCD Opencast mining…
View of the southern and western limb of the pit
The pit is mining soft sulphide on the southern side
The target is to mine enough sulphide from the pit by end of Q1 for the commissioning of the sulphide circuit.
Kibali opencast mining…
Six pits to be mined over 10 years
KCD pit mining started in July 2012
Production achieved with local trained operators
3 x Liebherr 9350 diggers , 1 x Liebherr 984 digger and 19 x 777G
dedicated to production with a number of auxiliary equipment to support
production
The ore production and plant feed were achieved for the year
Kibali underground mine development…
The underground will consist of:
40Km of Capital lateral development
Expected LOM is 20 years
Vertical ore hosting shaft
Twin decline
Longhole open stope with paste fill
10MW installed refrigeration system with multiple vent raisebore shafts
Capital Footprint of Underground
Boxcut
North Decline
South Decline
West Decline
East Decline
655L Acc
Kibali decline development status…
Positions as of end Q3
Target completion of twin declines for 2013 has been reached
An average of 400m/month of the development was reached with 2 jumbos during the development of the twin decline
Development ore mining and stoping have been brought forward
Kibali underground mining…shaft sinking
Kibali underground mining…vertical shaft
The headgear, winder house, winder and stage winder have been successfully completed enabling the main sink to kick off 2 Nov 2013
The shaft is targeted to achieve 183m on the 24 Dec as per programme
Focus is now on achieving a good advance within an acceptable cycle time (2.3m/24hrs)
Next milestone is to reach 300m depth by the 16 Feb 2014
Latest mine design…KCD open pit and underground
Standardised 35m level intervals 5102, 5103 and 9105 lodes
Upgrade of geotechnical model has allowed us to increase the number of large production stope
Mining method of 9105 change from longitudinal to transverse due to increase thickness of the ore
Key changes to mine design since feasibility…
Resource increases due to GC drilling and infill diamond drilling –resulting in larger reserve of 89Mt vs 72Mt in feasibility
Rockmass classification highlights better rock quality allowing for lower ground support costs and larger stopes
UG permeability lower than expected, reducing total pumping requirement from 600l/s to 200l/s
Dedicated refrigeration shaft
SS focus on shaft and BUCS on lateral development
9000 lode adjusted to longitudinal, potentially bringing this lode forward in the mine plan and reducing upfront capital
Brought declinre ore tonnage forward to optimise cashflow before shaft fully commissioned
Further possible optimisation of mine plan…
Up plunge drilling of the 9000 lode – quickly adds more stoping
Satellite pits of Gorumbwa, Aerodrome, Rhino and Mofu give flexibility outside current mine plan
BUCS developing faster than current plan – if they continue we bring the high grade ore forward
Kibali Metallurgical Facility…
Twin Circuit flow diagram…
CIL F
lota
tio
n
Ball
2
CIL F
lota
tio
n2
Ball
1
Ball
2
Flo
tatio
n1
Conc.
Oxide + Sulphide treatment Sulphide Only treatment
Conc.
Ball
1
UFG/Pump
Cell UFG/Pump
Cell
Twin circuit summary flowsheet…
Material crushed through mineral sizerdirectly into ball mill 6.1m diam. x 9.5m
Gravity and flash float ahead of conventional CIL.
CIL tails through detox to lined TSF
Circuit designed at 300ktpm or 3.6MTPA
Each Ball Mill capable of 300ktpm or 3.6MTPA (as per Tongon). CIL residence time capable of 358ktpm / 4.3MTPA
Conversion to sulphide processing through addition of a second bank of flotation cells, to follow the gravity and flash float circuits (making it identical to the other sulphide circuit)
Fresh Open Pit material crushed through
primary jaw and secondary cone (with
provision for tertiary cone if required) onto
mill feed stockpile. Mill identical to
oxide/trans at 6.1m diam. x 9.5m
Fresh underground material crushed
through primary jaw crushers underground
and conveyed to stockpile inside met plant
ahead of secondary crushing
Gravity and flash float
Full flotation
Flotation tails (benign) direct to unlined
TSF or backfill/paste plant
Circuit designed at 300ktpm or 3.6MTPA
(single mill and flotation bank)
Mill capable of 300ktpm or 3.6MTPA .
Oxide mill to be converted to sulphide mill
increasing fresh material milling capability
to 600ktpm or 7.2MTPA
Oxide / transition Sulphide
Kibali metallurgical facility, generators and sulphide thickeners…
Process commissioning and ramp up…
Oxide Stream…available and commissioned mid Sept 2013
Milling and gravity circuit commissioned and operational
CIL circuit partially completed and available
Concentrate Tailings Facility (CTSF) commissioned enabling the start of deposition
First gold pour from Gravity and Elution Circuit 24.09.2013
Operations and construction managed concurrently
Slow but steady ramp up during the quarter
Throughput rate increased from an average of 219tph in September to 472tph by the end of November 2013;
Mill1 (sulphide) commissioned and put into production 14th December 2013
Plant recovery consistently outperformed the feasibility recovery
Critical dates…metallurgical plant
Construction completion dates:
Phase 1 oxide TSF - Complete
Phase 2 oxide circuit - Complete
Third generator bank - January 2014
Sulphide / float TSF - February 2014
Phase 1 sulphide circuit - February 2014
Phase 2 sulphide circuit - March 2014
Feed sulphide material - Beginning Q2 2014
Phase 2 oxide tailings - Q4 2015
Kibali…5 year forecast production with grade
-
1.0
2.0
3.0
4.0
5.0
-
100
200
300
400
500
600
700
800
2013 2014 2015 2016 2017
Kibali hydropower strategy…
Our power strategy…
Supply concept is a hybrid arrangement
Peak power
Deliver peak power on the available river schemes average flows
Dry season low flow power
Maximize the number of stations supplying to maximize the power available in the low flow periods
Diesel back-up generation
For start-up of shaft winder and Met Plant
Initially provide dry season make-up power from high speed diesel units
Substitute (diesel generation) with smaller hydrostations as overall power demand grows
Nzoro 2 penstock and intake…
Station Plan Min output
(low flow
MW)
Target
Output
(peak MW)
Completion
Nzoro 2to be designed and
constructed by Kibali
522 Q2 2014
Kibali 1
(Ambarau)
to be designed and
constructed by Kibali2.5 10 Q3 2015
Kibali 2
(Azambi)
to be designed and
constructed by Kibali2.5 10 Q2 2016
Kibali 3
(Sirigi)
to be designed and
constructed by Kibali3 13 Q4 2016
Total Main 13 55
The supply of power via hydro…
Nzoro 2 turbines during installation…
Kibali hydropower programme…
Projects in progress:
Nzoro 2 hydro station - Complete Q2 2014
Third generator bank - Complete Q1 2014
Ambarau hydro - Complete Q3 2015
Azambi hydro - Complete Q2 2016
Sirigi hydro - Complete Q4 2016
Kibali Capital Programme…
Capital expenditure…
Phase 1 covers the metallurgical facility, one hydropower station and back-upthermal power facility, construction of the tailings storage facility, relocation ofvillages, open pit mining and all shared infrastructure. This is expected to runover a two year period through to Q1 2014
Phase 2 which runs concurrently with Phase 1 but is expected to extend into2016, is focused primarily on the underground development and includes a twindecline and vertical shaft system as well as three hydropower stations. This isexpected to bring the underground into first production by 2014
Phase 1 & 2 2011
Feasibility estimate*
Q3 2013
estimate*
Phase 1 $0.92 bn $1.01 bn
Phase 2 $0.65 bn $0.71 bn
Total $1.57 bn $1.72 bn
*Excluding pre-production expenditure
Kibali operational readiness…
Recruitment, training and operational readiness…
Recruitment and Training
First locally recruited junior plant operators completed in May 2013.
Senior operating staff
Supervisors
Foreman
Process Production Superintendents
Process team (both local and senior) split into two groups and sent for training in Tongon and Morila
Second locally recruited junior operators completed in September 2013
All local operators have been recruited within the locality of Kibali Gold Mine as part of a strategic policy of managing and maintaining KGM social contract. Higher qualified national personnel were recruited in Lubumbashi and Kinshasa (where the skills were not available locally) to fill senior positions.
Process team readiness to operate the plant
Process team back on site for plant startup – 15th August 2013
Complement staff from Randgold mines (Morila, Loulo & Tongon) brought in as
Commissioning support
Enhancement training team for the local operators
Social responsibility…
Kibali social programmes…
RAP
Completion of construction and physical movement of communities
4232 houses build and families moved
2397 graves moved
Smooth transition from end of RAP to construction/production
A communication strategy designed to ensure seamless transition from RAP to start of production
RRL in continuous engagement with community delegates, community leaders and representatives from artisanal miners
13 out of 14 cooperatives now operational and one still in development
Building access to consumer market for farming cooperatives: Nile breweries in Uganda (for Sorghum) and World Food Programme for maize
Social responsibility programmepost RAP…
Community liaison offices deal with grievances from the community
Working on a large scale agriculture initiative - palmoil and others
Plan to transform Kokiza engineering into a development centre
Agriculture
Nursery To generate seeds and saplings
Fish ponds Potential to do cages into Kibali river
Poultry Expanding current quails unit and introduce layers
Maize Sheller 2 machines with capacity of 2 T an hour
Storage Safe for storage of crops
Processing
Honey and peanut processing
unit
Packaging and bottling of honey and peanuts, production of
candles and local alcohol
Maize mills Production of floor
Business
Sewing project Targeting resettled disables to be empowered with sewing skills
Hosting of micro-finance
project
Hold auctions, store items, run classes for higher phase winners
Headquarter of co-ops Meeting/training hall , serve as offices and admin for cooperatives
and community development schemes
Community post RAP …
Stakeholders engagement and community development
Consultation continues through meetings
Big drive on waste management and public health awareness
Training and capacity building through the Community development forum to ensure transition from RAP into community development
Hand over of two 40 feet containers of medical equipment received from CURE
Tied financing project: 2 more auctions held, increased interest from community
Various local economic development initiatives started: e.g.. Tender for camp maintenance in progress
Challenges
Slow ownership of resettlement site by residents and local admin
Very high expectations from people/officials on all levels
Continuous challenge of illegal mining on license area
Contributions à
impacts visibles:
US$ 157 783
Contributions à
impacts invisibles:
US$ 369 929
Salaires: US$ 1 310
Taxes & Permits: US$ 5 025
Payement aux Fournisseur :
US$ 73 023
Taxes & Permits: US$ 124 792
Salaires: US$ 30, 725
Taxes & Permits: US$ 11, 376
Payement aux Fournisseurs: US$ 123,678
National
Provincial
Local
Nzoro Power line Road US$ 1 351
ARU - Ariwara Road US$ 1 180
Nothern By-pass road US$ 1 042
Southern By-pass road US$ 263
Direct Community Projects US$ 13 482
Doko - ARU road US$ 35 856
Kokiza (Houses only) US$ 92 366
Aggregates US$ 11 876
Prevention (HIV & Malaria) US$ 367
Disclaimer…
Competent persons:
COMPETENT PERSONS: Yalea and Gara mineral resources from Loulo were calculated by Mr Abdoulaye Ngom, an officer of the company, under the
supervision of Mr Jonathan Kleynhans, an officer of the company and competent person. Loulo 3 and Baboto mineral resources from Loulo were
calculated by Mr Ivan Doku, an independent consultant, and reviewed by Mr Jonathan Kleynhans, an officer of the company and competent person.
Faraba mineral resources from Gounkoto were calculated by Mr Jonathan Kleynhans, an officer of the company and competent person. Tongon mineral
resources were calculated by Mr Mamadou Ly and Mr Babacar Diouf, both officers of the company, under the supervision of Mr Jonathan Kleynhans, an
officer of the company and competent person. Morila mineral resources were calculated by Mr Adama Kone, an officer of the company, under the
supervision of Mr Jonathan Kleynhans, an officer of the company and competent person. Kibali mineral resources were calculated by Mr Ernest Doh, an
officer of the company and competent person. Morila open pit resources were calculated by Miss Paula Oligive, an independent consultant, under the
supervision of Mr Jonathan Kleynhans, an officer of the company and competent person. Gounkoto mineral resources were calculated by Mr Fredrick de
Bruin, an independent consultant, under the supervision of Mr Jonathan Kleynhans, an officer of the company and competent person. Mr Johan
Kleynhans and Mr Rodney Quick are members of SACNASP and both have sufficient experience in the style of mineralisation and types of deposits
under consideration and the activity which they are undertaking as competent person as defined in the 2004 addition in the ‘Australasian Code for
Reporting Exploration Results, Mineral Resources and Ore Reserves’.
The Loulo, Tongon, Morila and Gounkoto open pit mineral reserves were calculated by Mr Shaun Gillespie, an independent consultant and competent
person and member of SAIMM. Kibali open pit mineral reserves were generated by Mr Nicholas Coomson, an officer of the company and competent
person and member of AusIMM. Loulo underground reserves were calculated by Mr Mamou Toure, an officer of the company, and reviewed by Mr Mark
Odell, an independent consultant and competent person and practising professional engineer. Massawa mineral reserves remain unchanged from last
year and were calculated by Mr Onno ten Brinke, an independent consultant and competent person and member of AusIMM, and reviewed by Mr
Rodney Quick, an officer of the company and competent person. The Kibali underground mineral reserves were calculated by Mr Tim Peters of Piran
Mining and reviewed by Mr Dan Donald of Mine RP, both independent consultants and competent person and members of AusIMM. All competent
person have sufficient experience in the style of mineralisation and types of deposits under consideration and the activity which they are undertaking as
competent person as defined in the 2004 addition in the ‘Australasian Code for Reporting Exploration Results, Mineral Resources and Ore
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 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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the historical information contained herein, the matters discussed
in this news release 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.