Golden Grove July 2015 History of Golden Grove

1971 -1979 • Gossan Hill underground, Gossin Hill Open Pit and Scuddles Underground discovered.

1990 • First production from Scuddles underground mine (capacity 800kt/a).

1991 • Normandy Poseidon completes acquisition of Golden Grove from Australian Consolidated Minerals.

1997 • First production from Gossan Hill underground mine.

2002 • Acquired by Newmont Ltd.

2005 • Sold to for A$265 million.

2008 • Transferred to OZ Minerals with the merger of Oxiana and .

2009 • Minmetals acquires OZ Minerals assets with the exception of Prominent Hill.

2 2012 • First production from Gossan Hill copper oxide open pit. Overview

Location: , Australia Ownership: 100% MMG

Mine: Underground (sublevel open stope) & Open Cut.

Throughput: 1.7 Mtpa, mine, crush, grind, float.

Product: concentrate, Copper concentrate, 2014 Revenue by commodity Lead precious metals concentrate. 6% Mine Life 2021 1% 9%

20%

64%

Copper Zinc Gold Silver Lead 3 Golden Grove – Site layout

4 Geology – Volcanogenic Massive Sulfide (VMS) deposit

Characteristics of VMS Deposits

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

Polymetallic, Golden Grove Zn, Pb, Cu, Ag, Au & Magnetite.

Stacked Deposits, Repetition through rock sequence.

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

Present day analogue of VMS deposits are Black Smokers.

5 Mine overview

Gossan Hill Underground Mine

AB Zinc Open Pit Tryall > Lead/Zinc (Pb/Zn) ore contains: A Copper

- Sphalerite (ZnS), Galena (PbS), Ag, Au. C Copper Camberwarra > Copper (Cu) Ore. Upper Q Copper 500m DEEP Catalpa - Chalcopyrite (CuFeS2). Amity

Q Copper Ethel (Lower)

Hougoumont 1000m DEEP Hougoumont Hangingwall Xantho Lower Amity

Oizon

Hougoumont Extended

1500m DEEP Gossan Hill 2015

6 Mine overview

Mine Southern Portal Central Northern Shaft Scuddles Underground Mine Downcast Downcast Upcast

> Lead/Zinc (Pb/Zn) ore contains:

- Sphalerite (ZnS), Galena (PbS), Ag, Au.

> Copper (Cu) Ore.

- Chalcopyrite (CuFeS2). 500m DEEP

Batavia

1000m DEEP

SCUDDLES 2015

7 Mine overview

Gossan Hill Open Pit

> Copper ore contains:

- Variety of Cu sulphide and Cu oxide minerals.

- Native Cu. - Au.

8 Resource Expansion

> Seven underground rigs. > One surface multi-purpose rig.

2015 Drilling by type

Grade Control

Delineation

Resource Definition

Near Mine Exploration

9 Metallurgy flow sheet

Pebble Crusher

Ball Mills x 2 Gossan Hill Stockpile

Scuddles Stockpile Copper/Zinc Flotation Lead Flotation

Zinc/Copper Thickener HPM Thickeners Zinc/Copper Clarifier Tailings Minefill

Thickening and Filtration Thickening and Filtration

10 Gossan Hill – ROM, Crusher & Stockpile

1. Raw underground ore on the Run-Of- Mine (ROM) gets pre-crushed by mobile equipment.

2. Ore is fed through a Jaw Crusher.

3. Ore is stockpiled and fed to grinding Run-Of-Mine Pad circuit.

11 Primary Crusher Gossan Hill Stockpile Scuddles – Hoist, Crusher & Stockpile

Secondary Crusher Scuddles Hoist

1. Scuddles Hoist – hoists crushed ore from underground.

2. Ore is crushed by a cone crusher.

3. Ore is stockpiled and conveyed to the main plant feed conveyor.

12 Scuddles stockpile

Grinding

Semi-Autogenous Grinder (SAG) > SAG mill (1.5MW).

> Pebble crusher.

Ball Milling Circuit > Ball Mill 1 (1.5MW).

> Ball Mill 2 (400kW).

Ball Mill 1

13 Semi-Autogenous Grinder Dewatering

4x Thickeners

14 2x Disc filters 1x VPA pressure filter Tailings – Dams, CHF Mine Backfill

Mill tailings are directed to two locations:

> Cement Hydraulic Fill (CHF) Plant supplies backfill to Gossan Hill underground mine.

> Tailings Storage Facilities.

Tailings Storage Facility 3 Cement Hydraulic Fill Plant Marketing

Products: Zinc concentrate Copper concentrate Lead high precious metals concentrate

Production: 2015 guidance (metal in concentrate) Zinc: 40 -55 kt contained zinc Copper: 21 -24 kt contained copper

Product sales: Smelters in Asia and Europe • Concentrates are trucked 280kms by road from site to the Port of Geraldton. • Road transport is through Giacci Transport who operate 7 dedicated road trains. (14 movements a day =1,400wmt) • The storage shed at Geraldton is owned by MMG on land leased from the Geraldton Port Authority. • Ships chartered in-house by MMG via COA with Ausbulk. 16 Marketing

Zinc Concentrate > Zinc grade approximately 50% and ‘clean’ of impurities.

> Silver content just above payability thresholds.

> Primarily concentrate sold to smelters in Japan, Korea and Thailand.

Copper Concentrate

> Copper grade approximately 20%. > Contains Silver along with payable Gold.

> Primarily concentrate sold to smelters in China, Korea and Japan.

Lead Concentrate containing Copper and high precious metals

> Lead grade approximately 30-35%, Copper 5-10% and payable Silver and Gold.

17 > Primarily concentrate sold to refineries in Europe.

18