Download - OpCom Presentation
African Barrick Gold
15 September 2010
2010 Site VisitExploration Overview
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 orotherwise 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 ABGin 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 enterinto, 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 disclaimsany responsibility, obligation or undertaking to update or revise any information contained in this presentation after its date, whether as a result of new information, futureevents 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 liabilitywhatsoever 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. Thesestatements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations withrespect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified bythe 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 arecautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond thecontrol of ABG, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, forward-looking information andstatements contained in this presentation. Factors that could cause or contribute to differences between the actual results, performance and achievements of ABG include, butare not limited to, political, economic and business conditions, industry trends, competition, fluctuations in the spot and forward price of gold or certain other commodityprices, changes in regulation, currency fluctuations (including the US dollar, South African rand and Tanzanian shilling exchange rates), ABG’s ability to successfully integratefuture acquisitions, to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources orreserves 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 mineralexploration, 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 therequirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any obligation or undertaking publicly to update orrevise 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 beinterpreted 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 ABGor 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 whomthis 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, whetherelectronically or otherwise. ANY FORWARDING, DISTRIBUTION OR REPRODUCTION OF THIS PRESENTATION IN WHOLE OR IN PART IS UNAUTHORISED. FAILURE TOCOMPLY WITH THIS NOTICE MAY RESULT IN A VIOLATION OF APPLICABLE SECURITIES LAWS.
2
1. Exploration Properties & Pipeline 4
2. Tulawaka 8
3. Golden Ridge 12
4. North Mara 16
5. Bulyanhulu 21
6. Nyanzaga 24
3
4
Tanzania - Properties and Projects Overview
Non-Operating JV
ABG Operating
GeitaMwanza
Shinyanga
Musoma
Tulawaka
(0.12Moz)
Buly
(17.1Moz)
Buzwagi
(4.36Moz)
North Mara
(3.93Moz)
Jomu
Golden Ridge
Tusker
Golden
Pride
Dett
100km
Legend
Granted - Karagwe
Application - Karagwe
Siga Hills Camp
North Mara Camp
Bukoban
Karagwe Ankolean
Greenstones
Granites
5
Exploration and Project Development Pipeline
Mine site
Satellite
Lake Victoria Goldfields
Africa wide
Medium to Long Term Short to Medium Term
Grassroots
Program
Target
Delineation
Advanced
ExplorationResource and
Scoping
Targ
et
Siz
e
Opportunity
Africa-wide
M&A
>1 Moz >750 koz >500 koz>100
koz
Reserve
Definition /
Feasibility
Masabi
Extensions
Tulawaka
West
Dett
Gokona
U/GBuly
Upper East
Zone
Tusker
Gokona
Gena
Trend
Golden
Ridge
Tulawaka
DeepsJomu
Tulawaka
East
ExtnBuly Reef 2
West
Buzwagi
Village
Reef
Kilimani
Nyanzaga
Regional
Surubu
Karagwe
Ankolean
Tagota
Buly
Reef 1 & 2
East
Kahama
Nyakafuru
JV
Komarera
6
Project Pipeline
Project 2010 2011 2012 2013
Tulawaka Extensions
Golden Ridge
Gokona / Nyabigena UG
Bulyanhulu Upper East
Nyanzaga – Tusker / Kilimani
Drilling & Resource Definition
Scoping Studies
Feasibility Studies
Project Execution
Production
1. Exploration Properties & Pipeline 4
2. Tulawaka 8
3. Golden Ridge 12
4. North Mara 16
5. Bulyanhulu 21
6. Nyanzaga 24
7
8
20km
Tulawaka
Buck Reef
Imweru
Mgusu
GEITA
DEPOSITS
Granite
Unclassified intrusive
Gabbro
QFP
Felsic volcanic
Mafic volcanic, <2750
Mafic volcanic, >2750
Sediments
Kakindu
Tulawaka West
Tulawaka – Project Location
9
Tulawaka Underground & Surface Extensions
Underground exploration and definition drilling to extend the East Zone underground resource
continues.
Drilling to date shows the mineralised quartz veins extend at least down to Level 10 at Zone 150.
Resource update from additional drilling planned for H2 2010.
Encouraging results support expectations that life of mine will be extended.
Ongoing surface exploration drilling also continues to test extensions to West Zone Main and
Mojamoja prospects – a number of promising drill intersections encountered.
10
Tulawaka – Satellite Targets
Ongoing surface exploration drilling also
continues to test extensions Main West
Zone and Mojamoja prospects.
A number of promising drill intersections
have been encountered from shallow
depths including:
5 m @ 23.7g/t Au – Mojamoja
4 m @ 43.7g/t Au – Mojamoja
4 m @ 77.8g/t Au – Main West Zone
5 m @ 33.0g/t Au – Main West Zone
Additional exploration drilling is to be
completed on targets to the southeast of
Tulawaka for further satellite deposits.
Main West Zone
Mojamoja
Tulawaka East
2km
1. Exploration Properties & Pipeline 4
2. Tulawaka 8
3. Buzwagi - Golden Ridge 12
4. North Mara 16
5. Bulyanhulu 21
6. Nyanzaga 24
11
Buzwagi – Golden Ridge Satellite Opportunity
12
20km
Buzwagi(4.36 Moz)
Golden Ridge
Jomu
Nyakafuru
Golden Pride
Granite
Mafic volcanic
Masabi
55kmKahama 100%
Kahama JV
Nyakafuru JV
BEAL
GPW JV
13
Golden Ridge Feasibility Project
South North
Grade
Thickness
gm x metre
RC Infill 2010
Infill resource drilling and metallurgical drilling completed.
Geological model & geotechnical studies for feasibility study completed.
Advanced metallurgical test work and environmental and social impact assessment continue.
Announcement on updated resource expected before year end.
Feasibility study due for completion Q1 2011 and decision on project execution shortly after.
Additional potential identified to potentially expand the resource below and adjacent to current to
current pit designs.
Additional satellite deposit potential for Buzwagi identified at Jomu & other prospects.
1.2km of 4km
strike
US$ 750 Pit
2010 Met Hole
Buzwagi – Satellite Opportunity – Masabi
14
20km
Buzwagi(4.5 Moz)
Golden Ridge
Jomu
Nyakafuru1.1Moz
Golden Pride(3 Moz)
Granite
Mafic volcanic
Masabi
Kahama 100%
Kahama JV
Nyakafuru JV
BEAL
GPW JV
1. Exploration Properties & Pipeline 4
2. Tulawaka 8
3. Golden Ridge 12
4. North Mara 16
5. Bulyanhulu 21
6. Nyanzaga 24
15
16
North Mara – Gokona-Nyabigena Underground Project
600m
800m
1000m
1200m
600m
800m
1000m
1200m
12400E 12600E 12800E 13000E 13200E
200m
Pit Stage 2
Pit Stage 3
17m @ 12.11g/t
West East
20 to 40
40 to 60
60 to 80
80 to 100
> 100
< 20
Grams X metres13m @ 6.95g/t
14m @ 33.7g/t
23m @ 8.6g/t
13m @ 7.79g/t
Gokona East Zone
Gokona West Zone
Gokona Deeps
Extension Target600m
800m
1000m
1200m
600m
800m
1000m
1200m
12400E 12600E 12800E 13000E 13200E
600m
800m
1000m
1200m
600m
800m
1000m
1200m
12400E 12600E 12800E 13000E 13200E
200m200m
Pit Stage 2
Pit Stage 3
17m @ 12.11g/t
West East
20 to 40
40 to 60
60 to 80
80 to 100
> 100
< 20
Grams X metres13m @ 6.95g/t
14m @ 33.7g/t
23m @ 8.6g/t
13m @ 7.79g/t
Gokona East Zone
Gokona West Zone
Gokona Deeps
Extension Target
Positive scoping study completed for the
Gokona-Nyabigena underground project.
Feasibility study to be initiated shortly and
scheduled for completion during H1 2011.
Targeting production by 2013 to increase
North Mara ounce profile and extend mine
life.
Ongoing exploration drilling targeting
depth extensions to both Gokona West
and Gokona Deeps lodes.
Targets are between 200m to 500m below
the planned final Stage 3 open pit.
17
North Mara – Gokona Corridor Extensions
The Gokona-Nyabigena system
has current and past endowment
of >4Moz.
Very limited drilling has occurred
outside the immediate mine area.
Young volcanic cover overlies and
masks the favourable Archaean
stratigraphy
RC scout drilling along the Gokona
corridor commenced in Sept 2010
2011 drill programs to continue
testing the Gokona corridor over
more than 8km of the current trend
18
North Mara – Camp & Regional Targets
North Mara – 700 sq km of licences.
Geological characteristics of all the
major greenstone belts around the
world.
Targets around Gokona-Nyabigena lie
beneath younger volcanic cover and
require a good structural understanding
and reconnaissance drill programs.
Programs testing along the Gokona-
Nyabigena Trend east and west of the
mines commenced in mid-August 2010
and will continue in 2011.
Regional targets in the western areas of
the land package will be tested in in Q3-
Q4 2010 and follow-up of success in
2011.
1. Exploration Properties & Pipeline 4
2. Tulawaka 8
3. Golden Ridge 12
4. North Mara 16
5. Bulyanhulu 21
6. Nyanzaga 24
19
20
Bulyanhulu – Near-mine Exploration Targets
Buly(17.1Moz)
5km
Golden Horseshoe
Buly South JV
Bulyanhulu near-mine exploration is
targeting
Extensions to known shoots within
Reefs 1 and 2
Repetitions to high grade shoots
along strike, and
satellite opportunities.
In 2011 the Mine Geology team plan to
test extensions to:
Reef 1 & 2 Southeast
Reef 2 NW Extensions
East Limb Structural Target
Conceptual Targets throughout the camp
are being developed using 3D-modeling
and structural targeting.
Fold Nose
21
Bulyanhulu Upper East Zone Update
Upper East Zone
Completed review of planning
models and action plan formulated.
Dewatering and rehabilitation of
existing decline commenced – first
500m expected to be completed
early Q4.
Scope of work for feasibility study
completed.
Feasibility study contract award
expected to be made shortly,
completion targeted for early 2011.
Project execution decision
expected during H1 2011 and work
starting shortly after.
Existing 1.8km decline
1. Exploration Properties & Pipeline 4
2. Tulawaka 8
3. Golden Ridge 12
4. North Mara 16
5. Bulyanhulu 21
6. Nyanzaga 24
22
23
Golden
Ridge
Jomu
Geita
Buly(17.1Moz)
GHS
Kitongo
Tusker
Buck Reef
20km
Nyanzaga (Tusker Deposit) - Location
24
Nyanzaga Project Update
Acquisition of Tusker Gold Limited completed in
May.
Step-out and infill drilling programs on Tusker and
Kilimani resource areas
Testing for satellite targets or further large
deposits to improve economics of project
Geotechnical and advanced metallurgical studies
scheduled for Q4 2010.
Targeting up to 50,000m of drilling in total during
H2 2010.
Scoping study on Tusker & Kilimani resources
scheduled for commencement Q2 2011 with
feasibility study commencing by year-end 2011
dependent on results of scoping.
Tusker & Kilimani – Resource Extensions
Tusker Kilimani
500m
Tuffaceous Sediment
Mudstone
BIF Chert
Gossan
DDH
RC
RAB
Tusker - Geological Cross Section
26
Nyanzaga Project – Satellite Targets
27
Tusker
VTEM Target
Exploration programs testing for satellite
targets and further large-scale opportunities
have commenced across the Nyanzaga project
To date to several high priority targets have
been identified. Targets include:
EM and IP geophysical anomalies
Soil and rock geochemical anomalies
Geological & structural targets
Contact details
28
Office address
African Barrick Gold plc
5th Floor
No. 1 Cavendish Place
London W1G 0QF
+44 (0)207 129 7150
Key contact details
Greg Hawkins (Chief Executive Officer)
Kevin Jennings (Chief Financial Officer)
Andrew Wray (Head of Investor Relations and Corporate Development) - +44 (0)207 129 7155 – [email protected]
Website – www.africanbarrickgold.com