Abosso GoldFields Ltd Damang Mine · 44 Damang Mine - History Ł 1989 Œ Ranger Minerals starts exploration in the area Ł 1990-95 Œ Discovery and exploration of Damang ore body

111

Abosso GoldFields LtdAbosso GoldFields LtdDamang MineDamang Mine

An Overview

222

Management TeamManagement Team

� Brendan Walker (South Africa) V-P Ghana� Alan Thompson (Australia) General Manager� Charles Taschereau (Canada) Mill Manager� Alfred Baku (Ghana) Mining Manager� Paul Kitto (Australia) Exploration Manager� Clifton Potter (Canada) Environmental Manager� Robert Siaw (Ghana) Local Affairs Manager� Ben van Wyk (South Africa) HR Manager� Bashir Malik (UK) F&A Manager� Mike Jordaan (South Africa) Security Manager� Patrick Spathelf (South Africa) Chief Geologist� Mark Haywood (Australia) Chief Mining Engineer� Philip Engelbrecht (South Africa) Metallurgical Superintendent

333

Damang Mine Damang Mine Facts & FiguresFacts & Figures

� 18.4Mt Mined F2003 � 14.8Mt Forecast F2004� 4.9Mt Milled F2003 � 5.2Mt Forecast F2004� 299koz Gold produced F2003 � 298koz Forecast F2004� $234/oz Operating Cost F2003 � $220/oz Forecast F2004 � 1200 employees and contractors � 38 expats

444

Damang Mine Damang Mine -- HistoryHistory� 1989 � Ranger Minerals starts exploration in the area� 1990-95 � Discovery and exploration of Damang ore body� 1996-97 � Construction of Mine, Mill, Power line.� Nov 97 � First gold poured� Jun 1999 � Plant upgraded (pebble crusher)� Jan 2002 � Change of ownership to Gold Fields Ltd / IamGold � Dec 2003 � Completed shareholders loan repayment

� Ownership- GOLDFIELDS Ltd 71.1%- IAMGOLD Corp. 18.9%- Government of Ghana 10%

555

GhanaGhana

DAMANG

666

GeologyGeology

Mineralisation at Damang occurs at the faulted culmination of a regional anticline

Similar Proterozoic/PhanerozoicExamples

� Telfer� Just about all deposits in Pine

Creek� Bendigo - Slate Belt Style

777

Current ReservesCurrent Reserves--ResourcesResources

Million Tonnes (Mt)

Grade (g/t)

Gold (000oz)

RESERVEProved 5.1 1.7 271Probable 3.1 2.5 244Total Open Cut 8.2 2.0 515Proven Surface Stockpile 9.1 1.4 405Grand Total (Open Cut + Stockpile) 17.3 1.7 919RESOURCEMeasured 8.1 1.7 448Indicated 7.7 2.0 488Inferred 2.9 1.9 175Total Open Cut 18.8 1.8 1,111Measured Stockpile 9.1 1.4 405Grand Total (Open Cut + Stockpile) 27.9 1.7 1,516

Note : Reserves/Resources as of 1st July 2003

888

Cost DistributionCost Distribution

� Total Operating Budget $65.6M� Cost/oz $221/oz F2004 to date

Damang Gold Mine Costs 2004

9%

24%

12%36%

6% 6% 4% 3%

PayrollStoresPowerMining ContractorsOther ContractorsExplorationOther CostsGeneral & Admin

999

Operating Costs Operating Costs

F2003 F2004 (to date)

$/ton Processed $14.40/ton $12.84/tonOperating Cost $235/oz $221/ozTotal Cash Cost $243/oz $234/ozOperating Margin 31% 39%

101010

OperationsOperationsPerformance Performance

Ore Tonnes Mined

0100000020000003000000400000050000006000000700000080000009000000

F1998 F1999 F2000 F2001 F2002 F2003 F2004ForecastYears

Ore

Ton

nes

Min

ed

111111


Tonnes Milled

2000000

2500000

3000000

3500000

4000000

4500000

5000000

5500000

F1999 F2000 F2001 F2002 F2003 F2004Forecast

Years

Tonn

es M

illed

� Blend 65% Fresh Ore, 35% Oxides

121212


Gold Produced (oz)

050000

100000150000200000250000300000350000400000

1998 F1999 F2000 F2001 F2002 F2003 F2004ForecastYears

Tonn

es M

illed

131313

MiningMining

� Mining via contractor (AMS) under AGL supervision.� Daily production 70kt; Yearly Production 18.4Mt� Currently mining in three pits: Damang, Lima and

Kwesie

141414

Mine DevelopmentsMine Developments

� Mining in Huni 3&4 Completed Q3F2004.

� Main Damang Pit Completed in F2005

� Mining Juno SE will begin in Q3F2004

� Lima pit started in Jan�03� Mining in Kwesie started in

Apr�03� Planning for development of

new pits ongoing� AMS contract to be extended

for 3 years� Study of underground

potential in Damang pit� Planning for Rex

development

151515

MillingMilling

� CIL Plant� Milled Tonnes 5.1Mtpa� Throughput 625tph� % Fresh Ore 65%� Availability 95%� Head Grade 2.0g/t� Recovery 91%� Gravity Rec. 20%

161616

MillingMilling

171717

Mill Mill UtilisationUtilisation

� Focus on planned/preventive maintenance� YTD Utilization at 95.0% (excluding Girth Gear Shutdown)

Mill Utilisation - Total Running Time

89.00%

90.00%

91.00%

92.00%

93.00%

94.00%

95.00%

96.00%

1998-1999 1999-2000 2000-2001 2001-2002 2002-2003Excluding StrikeExcluding SAG

Motor FailureExcluding Pebble

Crusher Tie-in

181818

Mill ThroughputMill Throughput

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

5,500,000

F199

9

F200

0

F200

1

F200

2

F200

3

F200

4(F

orec

ast)

Mill Throughput (Tonnes)

� Without Major Capital Investments� Improved Availability� Improved Process

191919

Health & SafetyHealth & Safety� Excellent safety record.

- Long Term Lost Time Accident Frequency 0.5 per million hours worked

- One year without LTI reached in January 2004� Emphasis on prevention, education and training.� Regular Monitoring of dust, noise and ground

vibrations.

0

5

10

15

Damang Australia USA Canada

Lost Time Accidents Rate - Open-pit Metal Mines

Note: International Data is for 2001-2002

202020

Environmental ProtectionEnvironmental Protection� An excellent environmental record.

- Best Record of all Mines in Ghana in last EPA grading.� ISO 14001 Certified � Regular External Audits.� Full compliance with environmental permits.� High standard required from contractors and suppliers.� Committed to Follow the International Cyanide Guidelines

on mine site � will be audited in a few months.

212121

ReclamationReclamation� Extensive Reclamation program ongoing even during

operation� Reclamation Bond agreement signed with EPA in 2001 for

rehabilitation of site. � Achievement of a $0.78M reduction in the reclamation bond

in 2003 in recognition of the level of rehabilitation achieved in specific areas of the mine.

� Stakeholders consultation to develop end land-use plan (mixed agriculture, wood and cash crops)

222222

ReclamationReclamation� Total of over 250 hectares in rehabilitation

program (total area disturbed is 650 ha).� The following plants are used in the reclamation

projects:- Legumes (Leucenia, Cacia, Grecida, Pueraria, Acacia);- Timber Species (Ofram, Emire, Mahogany, Wawa,

Cedrella, Teak, Pericorpsis, Kusia, Cieba);- Farm Plantations (Oil palm, Pineapple, Plantain,

Cocoyam, Cassava);- Medicinal Tress (Neem).

232323

Stakeholder InteractionStakeholder Interaction

� Keep an open approach in our dealings with local communities.

� DMCCC (Damang Mine Communities Consultative Committee).- Composed of Mine Management, Traditional Leaders, Youth

groups, Local Business Leaders, etc (over 40 members).- Present company activities that might affect communities and

receive requests and concerns from stakeholders.- Meets every 2 months

� Damang applies �open door� policy and stakeholders are welcome to bring their concerns.

� Quick response to stakeholders complaints, requests and enquiries.

242424

Sustainable DevelopmentSustainable Development

� Focus on Education, Health, Water and Sanitation.� As objectives are being reached, there will be a

shift toward income generating projects as fish farming, improved agricultural techniques, etc.

252525

Sustainable DevelopmentSustainable Development

� 2003 � 8 major projects completed at the cost of $250k.

� Construction and renovation of school blocks at Bompieso, Koduakrom, Damang and Huni Valley.

� Construction and installation of water and sanitation facilities.

� Establishment of Scholarship schemes� Educational assistance � subsidizing teachers

wages (to raise standard to urban levels)� Construction, development and ongoing support of

community libraries � Damang, Huni Valley, Abosso

262626

ExplorationExploration

272727

Southern Ashanti BeltTotal Gold Endowment

Southern Ashanti BeltTotal Gold Endowment

Hydrothermal

Palaeoplacer

Hydrothermal& Palaeoplacer

MINERALISATION STYLES

282828

292929

PRIORITIES 2004-2005 EXPLORATION PROGRAMSPRIORITIES 2004-2005 EXPLORATION PROGRAMS

� Damang ML� Tomento North & East� Rex*� Amoanda *� Damang Underground? *� Old Abosso Underground

� Damang Adjoining Leases� Bonsa River F. R. (PL2/376)� Bonsa (PL2/151)� Subiri (PL 2/370)

� Gyata - District Acquisitions � Wassa Breman PLA*� Epieso PLA � Nsuaem PLA* � Atwere Broanda PLA* � Ghana Manganese* - JV?(* Hydrothermal targets)

6200

00 m

E

6300

00 m

E

6400

00 m

E

620000 mN

610000 mN

590000 mN

600000 mN

EPIESOEPIESOEPIESOEPIESOEPIESOEPIESOEPIESOEPIESOEPIESOAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATION

SUBIRISUBIRISUBIRISUBIRISUBIRISUBIRISUBIRISUBIRISUBIRIPL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370

LIMALIMALIMALIMALIMALIMALIMALIMALIMA

KWESIEKWESIEKWESIEKWESIEKWESIEKWESIEKWESIEKWESIEKWESIE

DAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PIT

AMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDA

BONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTBONSA FORESTPL 2/151PL 2/151PL 2/151PL 2/151PL 2/151PL 2/151PL 2/151PL 2/151PL 2/151


DAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANG

TOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTO

CHIDACHIDACHIDACHIDACHIDACHIDACHIDACHIDACHIDA

ABOSSOABOSSOABOSSOABOSSOABOSSOABOSSOABOSSOABOSSOABOSSO

DAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96

REXREXREXREXREXREXREXREXREX

CHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTH

303030

� Damang ML� Tomento North & East� Rex*� Amoanda*� Damang Underground?*� Old Abosso Underground

� Damang Ajoining Leases� Bonsa River F. R. (PL2/376)� Bonsa (PL2/151)� Subiri (PL 2/370)

� Gyata District Acquisitions� Epieso PLA� Wassa Breman PLA*� Nsuaem PLA*� Atwere Broanda PLA*� Ghana Manganese* JV?(* Hydrothermal targets)

GFL/IAMGOLD Area of Interest

ProposedGyata/GMC JV

Gyata PLA

ProposedGyata/Leo JV

PRIORITIES 2004-2005 EXPLORATION PROGRAMSPRIORITIES 2004-2005 EXPLORATION PROGRAMS

313131

6200

00 m

E

6300

00 m

E

6400

00 m

E

620000 mN

610000 mN

590000 mN

600000 mN

EPIESOEPIESOEPIESOEPIESOEPIESOEPIESOEPIESOEPIESOEPIESOAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATIONAPPLICATION

SUBIRISUBIRISUBIRISUBIRISUBIRISUBIRISUBIRISUBIRISUBIRIPL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370PL 2/370

LIMALIMALIMALIMALIMALIMALIMALIMALIMA

KWESIEKWESIEKWESIEKWESIEKWESIEKWESIEKWESIEKWESIEKWESIE

DAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PITDAMANG PIT

AMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDAAMOANDA



DAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANG

TOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTOTOMENTO

CHIDACHIDACHIDACHIDACHIDACHIDACHIDACHIDACHIDA

ABOSSOABOSSOABOSSOABOSSOABOSSOABOSSOABOSSOABOSSOABOSSO

DAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGDAMANGML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96ML 1409/96

REXREXREXREXREXREXREXREXREX

CHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTHCHIDA SOUTH

� 2004 Fiscal Year = US$3.75M� Tomento Central & Southern� Chida South � Abosso� Amoanda� Rex� Bonsa River F. R.� Subiri

� 2005 Fiscal Year� Bonsa River F. R.� Subiri� Epieso PLA� Wassa Breman PLA� Nsuaem PLA� Atwere Broanda PLA� Ghana Manganese JV?

Exploration BudgetExploration BudgetExploration Budget

323232

Damang Damang �� In ResumeIn Resume

� 300,000oz/year� Good Cash Cost � $221/oz F2004 to date� Good Cash Flow � Net earnings $13.6M F2004 to date� Established operation � Low Risk� Sound Health, Safety, Environmental and Local Affairs

Management� Reserves Expansion On-going

333333

Future DirectionsFuture Directions

� Finding and developing new reserves.� Continue mine and mill optimisation programs to

reduce costs and increase efficiencies.� Maintaining and improving on the standards sets

in Environmental protection, Health & Safety.� Helping the local communities developing

alternative livelihood and sustainable development.

Documents

Abosso GoldFields Ltd Damang Mine · 44 Damang Mine - History Ł 1989 Œ Ranger Minerals starts exploration in the area Ł 1990-95 Œ Discovery and exploration of Damang ore body