MMG Rosebery 14 July 2015 History of Rosebery

1893 • Tom McDonald discovered alluvial gold with boulders of -lead sulphide.

1920 • Rosebery and Hercules Mines purchased by the Electrolytic Zinc Company of Australasia Limited. (EZ).

1927 • Construction of Rosebery Mill begins.

1936 • Production started in February – Mill capacity was 15 tonnes/hour.

1961 • Mill capacity was 30 tonnes/hour.

1963 • Murchison Highway completed.

2003 • Breakthrough of surface decline allowing trucking of ore to surface.

2004 • Transition from to Zinifex Ltd., becoming one of Australia’s leading companies in mining and producing zinc, lead, copper, gold & silver.

2008 • Zinifex Ltd and Oxiana merged into OZ Minerals.

2009 • MMG – Minerals & Metals Group.

2011 • 75 years of continuous mining and milling at Rosebery.

2 Overview

Location: , Australia Ownership: 100% MMG

Mine: Underground (sublevel open stope – Transverse, Longitudinal and slashing stoping)

Throughput: 0.95 Mtpa, mine, crush, grind, float

Product: Zinc concentrate, Lead concentrate, Copper 2014 Revenue by commodity concentrate, Dore gold/silver. 3% 16% 12% Mine Life 2023

17%

52%

Copper Gold Silver Zinc Lead 3 Site Layout – Proximity to township

3 1. Portal.

2. Concentrator. 6

3. Filter Plant & Train Loading 2 1 Station. 5 4 4. Administration Building.

5. Old 3 Level Open cut. 7

6. Waste Rock Dump.

7. Rosebery1 Hospital.

Geology – Volcanogenic Massive Sulphide (VMS) deposit

Characteristics of VMS Deposits Trilobite

Size <1Mt to 50Mt to giant deposits (500Mt) e.g. Kidd Creek, Brunswick 12, Neves Corvo

Polymetallic, Rosebery -Zn, Pb, Cu, Host Au, Ag

Stacked Deposits, Repetition through rock sequence

Occur as clusters within belts (3 to 6 km separation) Mt Read Volcanics of Tasmania, Iberian Pyrite Belt, Green Tuff Belt of Japan

Present day analogue of VMS deposits are Black Smokers

5 Geology – Volcanogenic Massive Sulphide (VMS) deposit

Size - >50Mt of massive to disseminated sulphide.

Mineralogy - Sphalerite, Galena, Pyrite, Chalcopyrite, Electrum (Au containing Ag).

Orientation – Orebodies strike NNE and dip at 43° to east.

Host Package – Sequence of felsic volcaniclastics.

Structure – Strong cleavage between two large reverse faults, Mt Black and Rosebery faults. Rosebery Y lens Orebody

Mine Overview – Surface Underground Interaction

6 5

> One of the longest and deepest mines in operation currently in Australia (1,500 metres).

> Mining areas (K, N&P, W, Y&X).

> Mining – Ore: Zinc (Zn), Lead (Pb), Copper (Cu), Gold (Au) & Silver (Ag). Mine Overview - Current Production Areas Metallurgy flow sheet

9 Crushing and Grinding

> The Rosebery crushing circuit consists of a Primary Jaw Crusher and a Secondary Cone Crusher.

> During Crushing the ore size is reduced from around 650mm to P80 of 20mm.

> The Grinding Circuit consists of 2 x Primary Ball Mills and 3 x Secondary Ball Mills.

Secondary crusher Primary ball mill 10 Gravity Gold

> Gravity gold is recovered from the grinding circuits using 2x Knelson Concentrators.

> Gold Concentrates are leached in an Intensive Leach Reactor (ILR).

> Then recovered from the pregnant leach solution by electrowinning and thereafter the gold sludge is smelted.

11 Gold pour Gold Doré bar Flotation

> The recovery sequence for sulphide minerals in the Flotation Circuit is Chalcopyrite (Cu) → Galena (Pb) → Sphalerite (Zn).

> Payable gold and silver is recovered with the copper and lead concentrates.

Copper float cells Lead float bubbles

12 Filtration

> Concentrates are pumped to the Filter plant where they are filtered using Larox Filters.

> The filters produce a dry concentrate that is then transported via rail to Burnie.

Lead Larox filter Zinc concentrate

13 Concentrate Shipment

> From Burnie, concentrates are shipped to final destination by sea.

Zinc concentrate being offloaded at Nrystar in Risdon Tailings – Dams

> Tailings is disposed of in the Bobadil Tailings Storage Facility (TSF) that is situated approximately 4km from the processing plant.

> The tailings slurry is pumped into an open flume that transports the material to the Tailings Storage Facility. Marketing

Products: Zinc concentrate Lead concentrate Copper concentrate Gold Doré

Production: 2015 guidance (metal in concentrate) Zinc: 80 - 85 kt contained zinc Lead: 22 - 24 kt contained copper

Product sales: • Life of Mine/Life of Smelter contract with for 100% of produced concentrate. • Concentrate is transported by rail to Burnie Port. • Rosebery Zn and Pb is sold on FOB basis at the Burnie Port. • Zinc is transported to , Lead to , Copper on the open market and Gold Doré to Perth Mint. • MMG have exported some quantities of zinc concentrate in the past when Nyrstar

16 offtake fell below production. Marketing

Zinc Concentrate > Relatively high Zn grade (+54%), with relatively low Fe and acceptable impurity content.

> Precious metals content close to payability thresholds.

> Attractive Zn concentrate in China / Asian markets.

Lead Concentrate > Relatively high Pb and Ag grade, along with high Zn grades and low impurity levels.

> Attractive contract with payments for contained Zn, Pb, Au & Ag.

Copper concentrate > A complex concentrate with high precious metals and high impurities - limits buyers.

> Currently selling under a Frame contract to a trader for blending with cleaner materials. This enables the value of high precious metals and copper to be realised.

Dore’ concentrate > Transported to Perth Mint for refining, containing approximately 60% gold and 30% silver. 17

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