Gwalia Deeps Development

Gwalia Deeps Development
June 2007
Peter Thompson, General Manager Exploration
Brief History
1969
St Barbara floated as Endeavour Oil
Jul 2004
Eshuys & Wise appointed by shareholders
Mar 2005
Sons of Gwalia gold assets bought for $38M (US$28M)
Oct 2005
Sold Sth Laverton & Meekatharra A$48M (US$38M)
2
Brief History cont….
Dec 2006
Reserves 1.7M ounces, production 0.26M, total 1.96M
Feb 2007
Gwalia Deeps development approved
Mar 2007
Cash / investments A$51M (US$41M)
Mar 2007
Tarmoola put up for sale
3
Issued capital at 31 March 2007
820M shares, 35M options
137m shares in A$100m convertible note, matures 2012
Shareholders at 31 March 2007
•
Resource Capital Funds II and III LP 22.4%
•
JP Morgan Asset Management
5.2%
4
Our Current Interests…
Land portfolio 5,000sq km
Three mills capacity 7.7Mt pa
Endowment 23.2M ounces of gold
Past exploration only 30% effective
on Southern Cross & Leonora holdings
Golden Mile South joint venture
5
6
Capital Expenditure
2 Years to 31 March 2007
A$M
US$M
Gwalia Decline
31
25
Southern Cross
30
24
Exploration
39
32
100
81
On the way to establishing target production of 450,000oz pa
7
Gwalia Deeps
Reserves 4.8Mt @ 9.1g/t for 1.4 million ounces
Sons of Gwalia Gold Mine
1896 - Welsh syndicate establishes mine
1897 - Herbert Clark Hoover convinced Bewick
Moreing to develop the mine
1898 – Sons of Gwalia Ltd floated with Hoover
as mine superintendent
4th March 1929 - Hoover becomes 31st President
of America
24th October 1929 – Stock Market Crash and
prelude to the Great Depression
8
Sons of Gwalia Gold Mine in 1902
9
Sons of Gwalia Incline Headframe
10
Sons of Gwalia Gold Mine
Life Underground
11
Sons of Gwalia Gold Mine
Tool Sharpeners
12
Sons of Gwalia Gold Mine
Before the 1921 Fire
13
Gwalia Regional Geology
14
Gwalia Deeps Geology
15
Gwalia Deeps Reserves & Resources
16
Gwalia Deeps Long Section
17
Gwalia Deeps Plan Projection
18
Gwalia Deeps - Schematic Lode Plan
19
Gwalia Deeps - Plan View Lode Slice
20
Gwalia Deeps, old incline shaft
21
22
Gwalia Deeps Resources
INFERRED RESOURCE
962.5
962.5
1522.5
1602.5
1602.5
1682.5
1682.5
mbs
MAIN LODE
SW BRANCH
mbs
SOUTH GWALIA SERIES 1
SOUTH GWALIA SERIES 2
500,000
450,000
400,000
300,000
350,000
WEST LODE
160,000
1522.5
140,000
1442.5
OUNCES
120,000
1442.5
160,000
1362.5
140,000
1362.5
120,000
1282.5
100,000
1282.5
80,000
1202.5
60,000
1202.5
40,000
1122.5
20,000
1122.5
0
1042.5
100,000
OUNCES
1042.5
60,000
962.5
mbs
40,000
100,000
mbs
250,000
1682.5
80,000
1682.5
200,000
1602.5
150,000
1602.5
100,000
1522.5
(>= 4g/t)
TONNES
0
1442.5
1522.5
500,000
1442.5
450,000
1362.5
400,000
1362.5
350,000
1282.5
300,000
1282.5
250,000
1202.5
200,000
1122.5
1202.5
150,000
1122.5
50,000
1042.5
0
1042.5
50,000
TONNES
20,000
962.5
(>= 4g/t)
0
INDICATED RESOURCE
Recrystallised quartz-calcite-sulphideNative Gold Veins
23
Quartz Vein Thin Section
24
Reflected Light
25
Gwalia Deeps Development
Decline at top of Deeps in March Quarter 2008
Initially at the rate of 100,000 oz pa September
Quarter 2008
At the rate of 200,000 oz pa starting in June
Quarter 2010
26
Top Down Mining Method
27
Mining Sequence
28
Ventilation Development
3.1m Surface Vent
Shaft By-Pass
5.5m Primary Ventilation
Shaft (VR3A)
1.8m Escapeway and 4.5m Vent Raise
29
Ventilation Specifications
Intake System
•
6.0m x 5.8m decline
•
4.5m diameter raisebore intake rises
•
3.1m diameter raisebore rise for refrigeration surface to
375mbs
Exhaust System
•
2.5MW Fan for 450m3/s at 4kpa (can run as low as
300m3/s)
•
5.5m diameter raisebore rise from surface to 850mbs
•
6m x 6m VCR rises from 850mbs to depth
30
Surface Raisebore Rig
31
Ventilation
32
VR3A Ventilation Fan
33
Refrigeration
6 MWR (1500 kW of Electricity)
Dewatering
4 x WT088 Helical Rotor Pumps per station
45 l/sec @ 48 bar
Located 375L, 750L, 1025L, 1500L
34
35
Stress Testwork
0
Principal Stress (MPa)
50
100
150
200
250
0
Yilgarn Block Trend (HI) and
200
Gwalia Stress Trend used
for Non-Linear Modelling
400
HI
Min Yilgarn
Depth (mbs)
600
800
1000
1200
1400
1600
1800
2000
Extrapolated Max Yilgarn Trend
AE
Extrapoloated Min Yilgarn Trend
Updated Gwalia Trend
Max Yilgarn
300
Infrastructure Details
Processing Plant
• 1.2Mtpa capacity on Gwalia Deeps Ore
• Nominally 0.5 – 0.6Mtpa of Gwalia ore to be processed
Power Station
• Gas power station to be constructed
• 11.2 MW capacity - 4 dual fuel & 7 gas engines
• Less emissions, more efficient than diesel
Pastefill Plant
• Use tailings/cement paste to fill underground voids
• Nominal capacity of 100m3/hr
Mining Fleet
• Fleet comprising of remote LHD units and conventional UG
trucks (50-60t)
36
Aran Paste Plant and Loader
37
Gwalia Plant
38
39
Gwalia Deeps
Estimated Life of Mine Costs
Mining costs
Milling and admin
Cash costs
A$
US$
102/t
82/t
395/oz
320/oz
Gwalia Deeps Feasibility Study
Pre-production capital A$110M (US$89M)
Financing to be finalised June Quarter 2007
1m put options at strike A$700 (US$566)/oz purchased
for less than A$7/oz
40
Leonora Gold Production Target
December quarter 2008 annualised production target
Gwalia Deeps
~ 112,000 oz
Open Pits: Tower Hill, Kailis
~ 108,000 oz
Total Leonora
~ 220,000 oz
41
42
Leonora Gold Deposits
Evaluating open pit
resources at Kailis,
McGraths and Tower Hill
Kailis resources 3.6Mt
@1.9g/t for 220,000 oz
Tower Hill Cross Section
43
St Barbara Immediate Objectives
Produce 172k oz pa @ A$490/oz cash cost this year
Complete the capital raising
Reserve update in July 07
Continue with conversion of open pit resources to reserves
Maintain Gwalia Deeps development on schedule and budget
Accelerate nickel sulphide and base metal exploration at Leonora
44
Position at end 2008
Production Dec Qtr 2008 annualised rate 450,000 oz
@A$450/oz
Making St Barbara 7th largest gold producer in Australia
3rd largest Australian listed gold company
45
To Achieve Longer Term
Objectives by 2010…
Expand SX & Leonora combined production to 600,000 oz pa
Move from 3rd quartile of Australian cost curve to 2nd quartile
Make discoveries & find extensions at SX & Leonora
Pursue growth through acquisitions
Accelerate BigGold grass roots and base metals exploration
46
47
Disclaimer: This presentation includes certain statements, estimates and projections with respect to the future performance of St
Barbara. Such statements, estimates and projections reflect various assumptions concerning anticipated results, which assumptions may
prove to not be correct. The projections are merely estimates by St Barbara, of the anticipated future performance of St Barbara’s
business based on interpretations of existing circumstances, and factual information and certain assumptions of future economic and
results, which may prove to be incorrect. Such projections and estimates are not necessarily indicative of future performance, which
may be significantly less favourable than as reflected herein.
Accordingly, no representations are made as to the accuracy or
completeness of such statements, estimates or projections and such statements, estimates and projections should not be relied upon as
indicative of future value, or as a guarantee of value or future results. This presentation does not constitute an offer to subscribe for
securities in St Barbara Limited.
The information contained in this report relating to drilling results and resources has been compiled by Mr Peter Thompson and Mr Robert
Love. Mr Thompson is a Member of the Australasian Institute of Mining and Metallurgy, Mr Love is a Fellow of the Australasian Institute of
Mining and Metallurgy and both are full-time employees of the Company. Mr Thompson and Mr Love have sufficient experience relevant to
the style of mineralisation, type of deposit under consideration and to the activity being undertaken to qualify as Competent Persons as
defined in the 2004 edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’. Mr Thompson and Mr Love
consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.
…thank you