Evander Egoli Project

The Egoli Project is a long life, low cost brownfield project in Evander, Mpumalanga. The project has an initial life of mine of 9 years, with annual gold production of approximately 72koz at an average head grade of 6.61g/t (LOM gold production of 17,771 kg (c.570koz)). First gold is expected to be produced approximately 20 months after construction commences, with ramp up to steady state production over the following 16 months. Estimated cost: R1.1 billion. To commence with operations at the Egoli project will require: Refurbishment of the existing Kinross gold processing plant, No.7 and No.7A vertical shafts and winders; Re-equipping of the 15 level tramming path to access the No.3 decline system and re-equip to 19 level which includes: 15 level silos, rail refurbishment and boxfonts, 15 and 19 level substations, 18 level workshops, re-install gondola winder and chairlifts; power supply, pump columns, dams, service water, potable water, compressed air. Main dip conveyor will be installed as mining from 19 level produces material to re-build the footwall; dewatering of the No.3 decline mining area to below 19 level – estimate one year to complete; removal of 600Ml of flood water and ongoing inflow of fissure water of about 3Ml/day; series of pump stations will move the dirty water to 15 level, then pumped to the No.7 shaft settler dams and to surface; water to be used as process water for the Elikhulu operations – implies added cost saving benefits for the plant; construction of a refrigeration/cooling plant on 15 level; extend the existing conveyor and material declines to access the Egoli payshoot from 20 level to 23 level (extent of M & I Resources); mine design and production schedule to deliver 45ktpm to the processing plant; access methodology is on-reef decline and strike development. GPS coordinates lat: -26.4754283; long: 29.096131.