The Giant Kibali gold deposit…

The Giant Kibali gold deposit…
in Northeast Democratic Republic of Congo:
evidence to support Central Africa as the new
location for the next generation of multi-million
ounce gold deposits
Paul Harbidge, Randgold Resources
New Gengold Nov 2013
Major Gold Bearing Cratons of Africa…
N
Kibali Gold
Project
1000km
1
West Africa Craton…early 1990s
N
Lero
Syama
Obuasi
Gold mines
Ity
Angovia
Birimian Basinal sediments
Birimian Belt
Proterozoic Plutonic Rocks
Afema
Prestea
Tarkwa
500km
West Africa Craton…today
N
Yatela
Sadiola
Senegal
Kalsaka
Mali
Gara
Sabodala
Inata
Yalea
Massawa
Siguiri
Tabakoto
Burkina
Faso
Essakane
Taparko
Morila
Gounkoto
Youga
Lefa
Syama
Mana
Kalana
Tongon
Ghana
Ivory
Coast
Ahafo
Obuasi
Ity
Gold mines
Bonikro
Bibani
Chirano
Birimian Basinal sediments
Birimian Belt
Proterozoic Plutonic Rocks
Prestea
Akyem
Damang
Tarkwa
Côte d’Ivoire
500km
2
Congo Craton…today
!
Zani Kodo
1.2Moz
Kibali
21.5Moz
N
!
!
Kilo Goldmines
2Moz
!
!
!
Mongbwalu
2.2Moz
!
Archean
DRC
!!
Proterozoic
Twangiza
5 Moz
Major gold
occurrences
500km
NE DRC…challenging infrastructure
Before, during and after the
repair of the main road from
Uganda into the Kibali project
3
Kibali…history
1903…
1904…
1905 – 1906…
1926…
1950’s…
After 1960:
1966…
Since 1990…
1998…
2002…
2004…
2009…
2012…
2013…
First gold discovery in the territory of a local chief named Kilo
by Australian prospectors Hannan and O’Brien, working under direction of
the Government of the Independent State of Congo
Beginning of gold production in north eastern DRC
Gold discovery to the northwest in the gravel beds of Moto River
Organisation created by Belgian Government to operate these deposits
became la Société des Mines d’Or de Kilo-Moto
Annual production culminates to about 9 tons of fine gold
Gold production plummeted
The name of the Société was changed to Office des Mines d’Or de KiloMoto or OKIMO
Annual production less than 100 kg of gold. Total recorded historic output
of the region comes to 350 tons
Barrick and AngloGold in JV over project area, discovery of Kibali deposit
New attractive Mining Code in place, with the baking of the World Bank
Moto Goldmines acquires the Kibali Project and discover main KCD
deposit and define ~20Moz
Randgold Resources and Anglogold Ashanti acquire Moto Goldmines
and the Kibali Project
Development of Kibali starts
First gold poured on 24th September and commercial production commenced in
October
History…Moto Goldfields
Old Gorumbwa Open pit – 1950’s
4
Kibali…geology and geophysics
N
KCD
Magnetic
Radiometric
Electromagnetic
Geology
60km
Kibali…central area aeromagnetic data
N
Mengu Hill
Pakaka
KCD
Ironstone
5km
5
Kibali…Geological Model
Durba
5000
East
Transfer
Structure
NE
3000
9000
KCD
3D Looking SW
NE
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…Main KCD deposit
3000 Lode
5000 Lode
Long section
9000 Lode
500m
6
Kibali…KCD deposit cross section
geology and structure
Kibali…KCD deposit cross section
alteration and mineralisation
7
Kibali…KCD deposit alteration
Qtz
Carb
1 mm
XPL photomicrograph
Sd
Pervasive silicate-carbonate
flooding, which predates D2
mineralization
Quartz-ankerite-siderite, plus minor
sericite-albite
Several alteration events
Ank
Qtz
100 µm
Back-scattered electron image (Sd =
siderite; ank = ankerite; qtz = quartz)
Kibali…KCD deposit mineralisation
Four stages of sulphide growth, with the majority of Au linked to
stage 2 pyrite
Stage 1:
pyrrhotitearsenopyrite
Py-I
Asp
Po-I
150 µm
Po-II
Py-I
150 µm
Stage 2 (>85%):
arsenian pyrite +
Au + accessory
Cu-Sb-Ni-Pb
sulphides
Stage 3: second
local generation
of pyrrhotite (Asdepleted)
Stage 4: second
local generation
of skeletal pyrite
(As-depleted)
Po-I
150 µm
Py-II
Py-I
150 µm
Reflected light images
8
Kibali…KCD deposit mineralisation
150 µm
200 µm
Reflected light image
Reflected light image
Back-scattered
electron image
150 µm
Kibali…KCD deposit mineralisation
Auriferous pyrite is associated with numerous trace Cu-(As-Sb),
Pb-Zn-(Sb), and Ni phases
Marcasite + galena
Sphalerite
Gn
Mrc
Py-I
Py-I
100 µm
Sp
100 µm
Ullmannite
Back-scattered
electron images
Py-I
50 µm
Um
9
Kibali…KCD gold deportment
150 µm
100 µm
150 µm
100 µm
Kibali…KCD alteration and mineralisation
paragenesis
Hydrothermal alteration
consists of: ankerite + later
siderite + quartz + sericite
Sulphide assemblages include:
(1) early pyrrhotite +
arsenopyrite; (2) pyrite +/- Cu
phases and gold; (3) later
second generation pyrrhotite
and skeletal pyrite
10
Kibali…building value through
Integrated Geology and MRM
2009 3D View Looking NW
Durba
Chauffeur
Acquired total mineral
resource inventory of
22.0Moz from Moto (2009),
5.5Moz reserves
Karagba
Completed mapping, relogging of core, drilling of
key oriented holes,
developed geologic
models, updated resource
models and applied
economic criteria
Sessenge
Inventory reduced to
18.9Moz but increased
reserves to 10.9Moz (2012)
2013 3D View Looking WNW
Durba
Inventory increased by
2.5Moz to 21.5Moz (Q2
/’13)
5000
Lode
3000
Lode
Excluding 1.1Moz low
grade Kibali South (to
Sokimo)
Sessenge
9000
Lode
400m
New geologic model being
used to prepare new
mining model and update
reserves
800m Deep
Kibali…project resources and reserves
Mt
Measured
Measured
Indicated
Inferred
Indicated
Underground
Inferred
Total Mineral Resources Meas/Ind
Inferred
Stockpiles
Open pit
Stockpiles
Open pit
Underground
Total Mineral Reserves
Proven
Proven
Probable
Probable
Prov/Probab
g/t
Moz
2.11
4.21
74.39
21.17
67.90
30.73
148.61
51.90
2.13
2.97
2.11
2.16
5.20
3.10
3.55
2.72
0.14
0.40
5.04
1.47
11.35
3.06
16.94
4.53
3.20
3.00
39.00
44.00
89.20
2.30
2.80
2.50
5.70
4.10
0.20
0.30
3.10
8.00
11.60
11
Kibali KCD deposit…
potential resource addition
DDD574 – 3000 up
4m @ 0.88g/t
DDD587 – 3000 up
9.2m @ 1.09g/t
US$ 1000/oz Durba Hill
KCD pit
DDD480
40.7m @ 5.60g/t
DDD574 – 5000 up
7m @ 3.16g/t
5000
3000
9000
DDD563A – 3000
23m @ 1.78g/t
57m @ 2.10g/t
DDD563A – 5000 up
27m @ 7.18g/t
DDD563A – 5000 low
77.2m @ 3.29g/t
DDD532 – 5000 up
31.8m @ 3.21g/t
DDD587 – 5000 low
12.4m @ 4.54g/t
DDD587 – 5000 mid
24m @ 3.23g/t
DDD587 – 5000 up
13m @ 2.34g/t
500m
Kibali…integrated mine design
Boxcut
Open pit
decline
Shaft
5000 lode
9000 lode
Mine design
Haulage level
Crusher and Pumping stations
1km
12
Kibali gold mine…
a world class development
Vertical shaft
headgear
Open pit mining
UG development
Metallurgical plant
Kibali commissioning schedule…
2014
2013
Oxide circuit
commissioning
Sulphide circuit
commissioning
First gold
Low feed rate initially
to fill CIL circuit
Start up material
through mill and CIL
First bank of Gensets
commissioned
PHASE 1 (2012 to 2014) US$ 1 billion
Metallurgical facility, first hydropower station, thermal power station, TSF, RAP, open pit mining, infrastructure
PHASE 2 (2012 to 2016) US$ 0.7 billion
Underground development, including twin decline and single vertical shaft system, 3 hydropower stations
13
Kibali…satellite deposits
Mengu Hill
0.72Moz at 2.33g/t
Pamao
0.72Moz at 1.5g/t
N
Megi
0.29Moz at 1.84g/t
Kombokolo
0.17Moz at 2.00g/t
Pakaka
Agbarabo
1.28Moz at 2.17g/t
Gorumbwa
0.63Moz at 3.50g/t
Sessengue
0.64Moz at 1.56g/t
KCD
Exploration target
Satellite deposit with down plunge potential
Kibali exploration team continues its hunt
for new ounces…
Kalimva/Ikamva
New models reprioritise
targets which locate on
major regional fold
in ironstones
Sayi
RC drill results
22m @ 2.3g/t
18m @ 2.6g/t
22m @ 2.9g/t
Mofu
Trench results returned
average intersection
of 12.25m @ 7.8g/t
over 300m
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
N
KCD
Rhino
Additional high grade
rods of mineralisation
being defined
Memekazi
RC drilling defines
near surface target
18m @ 3.3g/t, 20m @ 5.9g/t
10km
14
Kibali exploration…
Mofu near mine target
MOTR0013
6m @ 3.35g/t
and 12m @ 0.74g/t
N
MOTR0006
6m @ 6.46g/t
MOTR0012
10m @ 7.94g/t
MOTR0005
26m @ 13.50g/t
MOTR0014
13.5m @ 4.43g/t
Trenching returned high
grade gold mineralisation
at surface over 300m
strike length
Weighted average
intersect of trench results
is 12.25m @ 7.81g/t
Drill motivation approved
and underway in Q4
MOTR0001
11m @ 1.20g/t
MOTR0003
7m @ 4.50g/t
50m
Kibali…Kalimva-Ikamva target
Magnetic data and results
Ikamva
Historic drilling
10.5 @ 8.0g/t
9m @ 3.73g/t
4m @ 6.4g/t
Historic drilling:
10.5m @ 2.18g/t
8.95m @ 8.07g/t
11.8m @ 4.5g/t
Channel sample
10m @ 2.76g/t
inc. 4m @ 4.26g/t
Litho
13.9g/t, 4.62g/t
5.6g/t, 3.97g/t
8.01g/t, 1.31g/t
15
Kilo JV…reinvesting our future returns
Geological interpretation of Isiro Belt
Thrust duplication crosscut
by NE transfer structures
ISIRO BELT
N
30km major thrust
Rotation into D2 shear
Preliminary target
areas
Pressure shadow
around intrusive
Geological interpretation of Ngayu Belt
Legend
30km NW dextral
shear
Geology
Amphibolite
Banded iron formation
NGAYU BELT
Jog in NE
corridor
Biotite granite
Dolerite
Gneiss
D1,D2
intersection
Granite
SE plunging
anticline
K rich sediments
Mafic volcanic
Metasediments
Quartz feldspar porphyry
10km
50km
Volcanosediments
Conclusions…
DRC: Attractive destination
Congo Craton under explored
Kibali is a truly world class deposit
Significant demonstrable upside
Randgold well positioned for future growth
16
Disclaimer…
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the historical information contained herein, the matters discussed
in this presentation 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.
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.
17