IGO Annual Report 2015

Annual Report 2015 29

OPERATIONS

Background

The Tropicana and Salt Creek joint

venture concession packages comprise

approximately 3,200km

and

2,300km

of tenements respectively

stretching over more than 250km in

strike length along the Yilgarn Craton

and Fraser Range. IGO targeted and

pegged the area containing the current

gold reserves in 2001. AngloGold

Ashanti farmed into the project in

2002, discovering Tropicana, Havana

and Boston Shaker Gold Deposits

respectively in 2005, 2006 and 2010.

The gold deposits occur over a 5km

strike length with gold mineralisation

intersected over 1km vertically beneath

the natural surface.

The decision by the Tropicana JV

partners to develop the TGM was

announced to the market in November

2010 following a positive Bankable

Feasibility Study (BFS) assessment.

In early 2011, construction of the 220km

access road commenced, followed by

development of site infrastructure

that included an aerodrome,

accommodation village, borefields and

processing plant. Mining of the Havana

deposit commenced in 2012 with the

first gold being produced in September

2013.

In FY2015, activity has centred around

debottlenecking the processing plant

and gaining efficiencies from the

processing plant.

Annual gold production in FY2016 is

anticipated to be between 430,000

– 470,000oz. This translates to IGO’s

attributable gold production being

in the range of 129,000 – 141,000oz/

year. Post FY2016, subject to the

mill throughput being between 7.0

– 7.5Mtpa, annual gold production is

anticipated to average ~400,000oz/

year.

12.4

million

tonnes of ore was

mined during FY2015

492,780

ounces of gold (100%

basis) was produced

during FY2015

• One of the best virgin Australian gold discoveries since 2000

• Located 370km north-east of Kalgoorlie

• Low cost mine

• 3.0Moz Ore Reserves, 7.0Moz Resources

• Open Pit mining with average life of mine strip ratio of 5.4 : 1

• 5.8Mtpa processing plant (with potential to go to 7.0 – 7.5Mtpa)

• Exploration upside near mine and regionally

• Ni-Cu prospectivity with IGO earning 70% for $3 million over four years

TROPICANA GOLD MINE, WESTERN AUSTRALIA

(TGM)

(IGO 30%, ANGLOGOLD ASHANTI 70% AND MANAGER)

TROPICANA

TIER 1 GOLD MINE