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Analyst Visit Sadiola Hill and Yatela Gold Mines: 17 February 2004
Analyst Visit Sadiola Hill and Yatela Gold Mines: 17 February 2004
Except for the historical information contained herein, there are matters discussed in this news release
that are forward-looking statements. Such statements are only predictions and actual events or results
may differ materially. For a discussion of important factors including, but not limited to development of the
Company's business, the economic outlook in the gold mining industry, expectations regarding gold prices
and production, and other factors, which could cause actual results to differ materially from such forward-
looking statements, refer to the Company's annual report on the Form 20-F for the year ended
31 December 2002, which was filed with the Securities and Exchange Commission on 7 April 2003.
All 2004 figures are forecast only, not actual.
Sadiola and Yatela location
Mali
Mali
Mali
Tombouctou
Tombouctou
Kayes
Kay
Kayes es
Yatela Bamako
Bamako
Sadiola
Sadiola
Sadiola Hill
Background and Salient Facts
Drilling commenced in 1990 by IamGold
SADIOLA HILL
Area Tonnes x 000 Grade (g/t) Ozs x 000 Tonnes x 000 Grade (g/t) Ozs x 000
1.6
1.2
0.8
0.4
1.56
0 0.31 0
0
2001 2002 2003 2004
Target
LTIFR
Geology
The Sadiola Deposit lies within the Birimian Inlier of the Kayes – Keneba Window
SADIOLA HILL
(Proterozoic)
The deposit is Mesothermal Shear hosted, originating from the Sadiola Fracture
Zone, a local splay off the regionally significant Senego-Malian Shear Zone
Gold occurs disseminated in a highly altered succession of metasediments, mainly
de-carbonated marbles, overlain by silicified metapelites and basic intrusives.
Two main ore types occur being:
Soft Ore in altered and weathered rock
Hard Ore in Calcitic Marble
The Soft Ore is the focus of the current LOM Plan which includes:
Oxides (Laterite and pisolitic clays, mottled clays and saprolite)
Partially oxidised saprolitic ore
Sulphidic saprolitic ore
SADIOLA HILL Geological model
SADIOLA HILL Schematic Plan View
Production Fleet
SADIOLA HILL
2 x KLEMM RC Drill
SADIOLA HILL Plant Flow sheet
Manpower Statistics
End 2003
SADIOLA HILL
25,000 14,000
12,000
20,000
10,000
15,000
8,000
6,000
10,000
4,000
5,000
2,000
0 0
1997 1998 1999 2000 2001 2002 2003 2004
3.5
2.5
1.5
0.5
0
1997 1998 1999 2000 2001 2002 2003 2004
Strip Ratio
Plant Production
6,000
SADIOLA HILL
4,000
3,000
2,000
1,000
0
1997 1998 1999 2000 2001 2002 2003 2004
Oxide Sulphide
Gold Production
700,000
SADIOLA HILL
600,000
500,000
OUNCES
400,000
300,000
200,000
100,000
0
1997 1998 1999 2000 2001 2002 2003 2004
Gold produced
Mineral Resources
15,916,003 25,437,626
oz (000s)
SADIOLA HILL
5,000
4,000
3,000
2,000
1,000
0
1995 1996 1997 1998 1999 2000 2001 2002 2003
22
SADIOLA HILL
20
18
US$ / t
16
14
12
10
8
1997 1998 1999 2000 2001 2002 2003 2004
Operating cost
SADIOLA HILL Cash Cost and Margin
400
350
300
US$ / oz
250
200
150
100
50
0
1997 1998 1999 2000 2001 2002 2003 2004
G&A
21%
Mining &
Geology
36%
Processing
43%
Cost Breakdown (G&A) 2003
Asset Protection
Human
& Safety and
SADIOLA HILL
Resources
Health
Clinic Site
Administration
Procurement
General
Management
Transport
Intercompany Finance
Charges
Maintenance of
Mine Property Environmental
Capex Breakdown
2003 CAPEX
Replacement
SADIOLA HILL
capital
8%
2004 CAPEX BUDGET
Replacement
capital
5%
New capital
25%
New capital
22%
Exploration
projects
Major projects
64% Major
3%
projects
0%
$10.3 million
Exploration
projects
73%
$11.3 million
Capex Breakdown - 2004
New Capital – US$ 2.4 million
Sample handling optimisation ($0.12 mil) Laboratory equipment ($0.1 mil)
SADIOLA HILL
Filter drain installation in TSF ($0.1 mil) Sewage plant addition ($0.5 mil)
Additional vehicles ($ 0.2 mil)
EURO
USD
51%
47%
Exploration
Airborne Airborne EM
Magnetic Survey Survey
First Vertical (SPECTREM)
SADIOLA HILL
Derivative EMZ 5
Component
KOFI
FORMATION
SABOUSSIRE
FORMATION
SADIOLA HILL Oxide Exploration
Background is Regional
Au in Soil Geochem Map
Oxide Exploration
True North
FE4
SADIOLA HILL
FE3 South
1.4km
Deep Sulphide Project
Drilling Programme Metres Drilled Year Expenditure US$m Resources
Phase I-IV 26,300 1997-2001 5.3
SADIOLA HILL
Footwall Bands
Main Orebody
1km
Challenges Ahead
Solution Ponds
Main Offices
Open Pit
Background and Salient Facts
Joint-venture IamGOLD/AngloGold commenced in 1997
Feasibility study completed between April 1998 and September 1999
Operating license granted in February 2000
YATELA
3.2
2.8
YATELA
2.4
2
1.6
1.2
0.8 2.52 2.07 2.92
0.4
0 0
2001 2002 2003 2004
Target
LTIFR
Geology
Yatela Deposit
Section 58400 N
YATELA
30,000
25,000
YATELA
20,000
Tonnes (000's)
15,000
10,000
5,000
0
2000 2001 2002 2003 2004
9.0
8.0
YATELA
7.0
6.0
Strip 5.0
Ratio
4.0
1.0
0.0
Actual Actual Actual Actual Budget Budget Budget
2000 2001 2002 2003 2004 2005 2006
Process Flowsheet
Extendable
10. 0
8. 0
Overland Grasshopper
Strip Ratio
6. 0
Conveyor
4. 0
2. 0
0. 0
2000 2001 2002 2003 2004 2005 2006
Conveyors
SR LOM SR
Static
Oxide Ore Grizzly Primary Secondary
Leach Leach Idle Ore
Tip Point
Vibrating
Grizzly Anti - Scalent Anti - Scalent
Primary Jaw Dosage Dosage
crusher
OUNCES (000's)
1,200
1,000
YATELA
800
600
400
200
0
2001 2002 2003 2004
B CATEGORY TONNES
957,708 GRADE (g/t) GOLD (kg) GOLD (oz)
Measured 957,708 1.56 1,493 48,007
Indicated 1,969,572 2.49 4,903 157,625
Inferred 931,991 1.88 1,752 56,322
Total Alamoutala 3,859,271 2.11 8,148 261,954
Above 0.40g/t and 0.70g/t cut-off grade for Yatela and Alamoutala respectively and within a US$400/oz
economic shell. Depletion projected from 30 November 2003 to 31 December 2003. Includes stockpiles.
Ore Reserves
A CATEGORY 1,946,681
TONNES GRADE (g/t) GOLD (kg) GOLD (oz)
YATELA
22
20
18
YATELA
US$ / t
16
14
12
10
8
2001 2002 2003 2004
Operating cost
Cash Cost and Margin Chart
400
350
300
YATELA
250
US$ / oz
200
150
100
50
0
2001 2002 2003 2004
G&A
16%
YATELA
Mining &
Processing
Geology
26%
58%
Cost Breakdown (G&A) 2003
Clinic
Procurement
Human
Resources
YATELA
Club Environmental
Asset Protection
General
Management
Alamoutala
Transport
Intercompany Site
Charges Administration
Maintenance of
Mine Property Finance
Capex Breakdown
2003 CAPEX
Replacement
capital
Exploration
0%
projects
8%
2004 CAPEX BUDGET
YATELA
Replacement
capital
4%
Exploration
New capital projects
52% 26%
Major projects
40%
Major
projects
0%
US$13.8 million
New capital
70%
US$3.3 million
Capex Breakdown – 2004
New Capital – US$ 2.4 million
Heap leach pads 7-9 ($1.2 mil)
Duties on assets ($ 0.7 mil)
YATELA
EURO
YATELA
30%
Operating Costs
Labour Relations
YATELA
Health programmes – eg. malaria control
Community development/foundation
Community training
Stakeholder consultation workshop (June)
Stakeholder consultation committee
Projects – eg. mango plantation project
NGO interaction