DAMANG GOLD MINE – OVERVIEW REALISING THE DREAM OF …

DAMANG GOLD MINE – OVERVIEW

REALISING THE DREAM OF 2025 AND BEYOND

Introduction

West Africa• A premier mining destination

Gold Fields• A 15 year history in Ghana

Tarkwa• A world class, well capitalisedmine

Damang• A new lease on life

A strong near mine and greenfields growth pipeline

GOLD FIELDS WELL ESTABLISHED

TarkwaDamang

Yanfolila

West Africa is host to world class gold deposits and a premier mining destination with a long history of 

mining in Ghana and Mali.  Damang, in particular, will leverage off these deposits and provide a new 

lease on life.   

Regional Strategy

• “If we cannot mine safely, we will not mine”• Stakeholder relationships• Maintain stable power supply

Secure The Future

• Tarkwa CIL Build-up, HPGR Project• Tarkwa South Heap Leach Reprocessing Opportunity• Damang Secondary Crusher Installation• Business Process Re-Engineering

Sweat the Assets

• Regional exploration focus• Damang: Near Mine Exploration• Mali: Komana-Sankarani Project• Growing towards 1 Moz attributable in 5 years

Grow Gold Fields

FOCUSED ON GHANA AND MALI

HISTORICAL OVERVIEW - DAMANG

• 1990 to 95 – Discovery and exploration of the Damang ore body;

• 1996 to 97 – Construction of Damang mine and mill;

• Aug to Nov 97 – Commenced mining in August with first gold pour in November;

• January 2002 – Change of ownership to Gold Fields Ltd (71.1%) and IAMGOLD (18.9); Government of Ghana owns 10%;

• 2004 to 2006 - US$55M paid in dividend

The Damang Ore body was first discovered between 1990 and 1995 when Ranger Gold entered the area 

to mine the tailings of the Abosso Gold Mine.  In 1997 the construction of the Damang mine and mill 

was completed and mining commenced in August with the first gold pour in November.  In January 

2002, Gold Fields acquired a stake in the Damang gold mine.  Gold Fields owns 71.1% of this asset while 

IAMGOLD and the Ghanaian government each own 18.9% and 10%, respectively.   

OUR VISIONDamang

A leading Ghanaian gold mine delivering ongoing optimized returns to its stakeholderswhilst excelling in sustainable development1.

1. Rated as the safest operating mine in Ghana in 2004 (Ghana Chamber of Mines);

2. GF Chairman’s Safety Shield for 2008;

3. Best Mine in Ghana in 2009 based on Occupational Injury Statistics (Minerals Commission)

4. Environmentally Most Committed Company in the Mining Sector in 2004&5 (EPA award).

GLOBAL LEADER IN SUSTAINABLE GOLD MINING  

Damang’s vision is strongly aligned with the Group vision of being the global leader in sustainable gold 

mining.  To this end, Damang has upheld Gold Fields’ number one value of safe production and was 

recognized as the safest operating mine in Ghana in 2004.  It was also awarded the Chairman’s safety 

shield in 2008 as well as the award for Best Mine in Ghana in 2009 based on Occupational Injury 

Statistics as defined by the Minerals Commission.  Damang has also upheld the environmental 

management standard and was awarded the EPA award for the most environmentally committed 

company in the mining sector in 2004 & 2005.   

SENIOR MANAGEMENT

F&A ManagerGabriele Decina

MR ManagerMarcus Brewster

HR ManagerCharles Kwasi Klutse

Environmental ManagerFrancis Nyame

Mining ManagerGareth Phillips

Metallurgical ManagerCharles Amoah

General Manager

Alfred Baku

Engineering ManagerChristo Viljoen

Group Security ManagerDries Hugo

Safety ManagerAndre von Solms

Group IT ManagerSteve Larbi

Local Affairs ManagerRobert Siaw

30 30 30 30 30 30 3026 26

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0 8 9 13 20 21 24 25 280

5

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2002 2003 2004 2005 2006 2007 2008 2009 2010

Expatriates & Senior Officials

Expat Quota Expats Senior Officials

Damang has a strong management structure.  More importantly, concerted efforts to improve the mix 

of expatriates and local management has been extremely successful resulting in local senior official 

appointments increasing from zero to 28 in the last 8 years, an achievement we’re very proud of.   

ENVIRONMENTAL EXCELLENCE

ENVIRONMENTALLY MOST COMMITTED MINE IN GHANA

In line with the vision of sustainability, Damang is committed to maintaining the environment through 

responsible mining as well as various outreach programmes that enhance the environment as well as 

uplift local communities.   

KEY PERFORMANCE INDICATORS

Description Unit F2007 F2008 F2009F2010 Plan

F2010 Outlook

Ore Mined Mt 3.1 4.1 4.4 3.9 3.8

Tons Milled Mt 5.3 4.5 5.0 5.2 5.0

Head Grade g/t 1.20 1.43 1.34 1.42 1.39

Capex US$M 32 28 17 25 30

Operating Margin

% 26 26 25 31 44

Damang has had a commendable history of solid operating performance in terms of key performance 

indicators.  Worth noting is that it has managed to increase operating margin by almost 70% in the last 3 

years.   

DAMANG PROFILE

0

50

100

150

200

250

300

F2007 F2008 F2009 F2010 Plan F2010 Outlook

Steady State

Production  (koz) Steady State: Production - 240 koz per annum.Cash cost - US$590/ozNCE - US$690/oz

Crushing facilities upgrade for higher grade hard ore. • Significant potential for margin improvement.

Optimization of mining and processing costs.

Strong near mine exploration focus to extend LOM from 2018 to 2025 and beyond.

“Super” pit opportunities.• Mine Huni and Juno pits concurrently with DPCB.• Ensure consistent supply of high grade fresh ore.

Resources 74.9Mt @ 1.8g/t = 4.3 Moz

Reserves 36.1Mt @ 1.6g/t = 1.8 Moz

LOM Strip Ratio 3.3

TARGETING A 15 YEAR LIFE OF MINE

The secondary crusher was commissioned at the end of April which strategically alters the future of this 

operation.  The secondary crusher will enable the mining and processing of fresh, higher grade ore.  This 

has prompted a second strategic imperative i.e. in the area of exploration for fresh ore.  The focus will 

be on core exploration across the lease area, targeting fresh, high grade sources of Damang style 

hydrothermal mineralization along the entire 18km strike length of the Damang ore body.  The initial 

focus is on opportunities more proximal to the plant, starting in the vicinity of the existing Greater 

Damang Pit, where there’s an opportunity to create a super pit, and in the Amonada‐Tomento corridor.  

More detail is provided in the Damang exploration presentation.  

Damang currently has 4.3 million ounces of resource and 1.8 million ounces of reserves and strip ratio of 

3.3. 

MINING OPERATIONS

• Mining via contractor (AMS) under AGL supervision,

• Daily production 50kt; Yearly Production 18.0Mt,

• Currently mining in three pits: DPCB, Tomento East and Rex

• Current mining fleet: 4 x 984 Liebherr Excavators, and 17 x CAT777 100t Dump trucks, 

• Grade Control ‐ 12m benches (hydrothermal pits only),

• Drill & Blast – 6m benches and Mining – 3m flitches,

• Ore haulage from Satellite pits ~25km from ROM undertaken by Ghanaian contractor (Engineers & Planners),

• Mining operation: 2 shifts (day & night) with 3 crews,

• AMS workforce is 343 (7 Expatriates and 336 Nationals), and

• E&P workforce is 153 (1 Expatriate and 152 Nationals).

In terms of mining operations, Damang is currently contractor mined by Australian mining contractors 

AMS under AGL supervision.  Daily production is at 50,000 tons and yearly production is at 18 million 

tons.  We are currently mining in three pits, namely the Damang Pit Cut Back, Tomento East and Rex.  

The fleet is comprised of 4 Liebherr Excavators and 17 777 CAT Dump trucks.  Grade control is 

conducted by means of 12m benches while drill and blasting is by means of 6m benches and mining 

through 3m flitches.  Hauling is conducted by a Ghanaian contractor and distances are approximately 

25km.   

DAMANG – OPERATIONS PLAN

DPCB

LIMA SOUTH

BONSA NORTH

ABOSSO UNDERGROUND

TOMENTO NORTH

TOMENTO EAST

AMOANDA

REX

HUNI

JUNO

12KM

T 

CONTRACTORS & FUEL STORAGE

AMS Office & Workshop

Shell Fuel Storage

E&P

AEL Magazine

PROCESSING FACILITY

PROCESS FLOW

Gravity Concentrate

CIL Tanks

CyanideOxygenHydrogen Peroxide

Trash Screen

AARL Strip

Loaded Carbon

Barren Carbon

Carbon Safety Screen

Thickener

Gemeni Table

Knelson Concentrator

AW & Elution Column

Cyclones

u/f

o/f

SAG u/s

Ball Mill d/c Recirculated load

Ball Mill

SAG Mill

SN020

CV01

CV02

CV03

CV08

CV07 CV04

CV05CV06

Pebble Crusher

Scats Stockpile

Reclaim Stockpile

Gyratory Crusher

FE01

FE01

FE02FE03 FE04

Lime

Gold RoomDore Bullion

Decant Recycled to Process Pond

ROM Pad

ROM & COS

CRUSHING

• Primary Crusher- Krupp 54” x 74” Gyratory Crusher

- 600kW Hyundai 12pole 3300V, 492rpm motor

- Capacity of 2000tph

- Feed F80 = 600mm, Product P80 = 140mm

• Krupp variable speed apron feeder- AF18 x 6.361/D4 model, 6.361m x1.8m wide,D4

bulldozer tracks & rollers. 2500tph capacity & speed variance from 0-.29m/sec.

• Conveyor belt- Discharge conveyor (CV01) – 1600mm x 236m with

speed of 1.5m/s & capacity up to 2400tph

- Reclaim conveyor (CV02) – 1600mm x 261m

- mill feed conveyer (CV03) – 1000mm x 600m with speed of 1.02 m/s

MILLING

SAG mill – 5,8 MW currently run at 6,2 MW, Ball mill – 5,8MW (slipper pad mills/Combi flex Flender gearbox)

GENERATING PLANT

• 24 Diesel Driven Generators – 17.5MW. Additional generators will ordered to cater for the Secondary crusher.•LPG Storage facility

SECONDARY CRUSHING PLANT

• Capex US$ 11.7M

• Incremental NPV (5.0%) US$ 91M

• IRR 81%

• Total revenue US$ 187M

• Net Cash flow US$ 127M

• Payback period 8 months

• Increase Production 240kozpa

As mentioned before, Damang has been given a new lease on life with a switch to mining and processing fresh hard rock instead of relying heavily on soft oxidised material. The switch entailed the installation of the $12m crushing plant. The plant, with its bank of three crushers, will raise the percentage of higher-grade fresh-rock material fed into the mills to 95% from 63%, bringing an extra 40,000 ounces a year. Damang will be a 240,000 oz/year mine. Improved production is expected over the next few quarters.

The increase in gold output comes from the grade rising to 1.6 grams/tonne (g/t) from 1.3 g/t as the proportion of higher-grade fresh rock is increased. The volumes through the mills will remain flat.

FINANCIALS

0

200

400

600

800

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1200

2003 2004 2005 2006 2007 2008 2009 2010F

242 222

282

341

472

551

661  645 

243 228

441 439

637

753 743  749 

334

390421 431

636

826877 

1,082 

CASH COST

NCE

GOLD PRICE

The increased cost profile at Damang can be attributed to higher fuel prices and lower production.  

Looking ahead, the price of electricity could rise by 50% or even double from $0.10 per kilowatt hour.

However, the chances of electricity tariffs increasing in the near term are slim. Electricity constitutes about 14% of total costs at Damang.  

OUNCE PROFILE

0

50000

100000

150000

200000

250000

300000

F20

11

F2

012

F2

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F2

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F2

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F2

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F2

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Ou

nc

es M

ine

d (

ko

z)

Period

Damang Cutback Juno3 Cutback Huni 3&4 Cutback Tomento East Lima South

Tomento North Lima Gap Rex Abosso tails

AMOANDA

DAMANG SUPER PIT

AMOANDA – TOMENTO CORRIDOR

DAMANGDEEPS

LOM – 2025 and BEYOND

Growing Damang Beyond 2025

As can be seen from the above slide the life of mine at Damang was expected to wind down around 2018. The secondary crusher has provided a new lease on what was a very short remaining life and will result in a life of mine running to 2025 and beyond. There is potential for a mini “super pit”, which will link a string of pits into a three kilometre long mine, folding in intervening blocks of ground and extending other pits that were mined out as drilling programmes and the renewed focus on fresh rock changed the way the ore body is viewed. 

TOWN SITE

Damang provides a comfortable living environment for its employees and even sports an 18 hole golf 

course.   We are excited about the prospects at Damang and look forward to its contribution to 

increasing attributable production from the West Africa Region to at least one million ounces a year 

over the next five years.   

END