Cue Gold Operations

Project Overview

The CGO is a subset of the CMGP which covers the southern areas and uses the 1.2 – 1.4 mtpa Tuckabianna Plant as a processing hub. The base load for the CGO 10 Year Development Plan is the Big Bell Underground Mine – providing 10.1M tonnes @ 3.0 g/t from FY2020. This inventory is currently constrained by geological data, and it is expected that with future underground drilling and development exposure this annualised profile will be further projected.

Cue Gold Operations (CGO)

Additionally, known Resources of Little Bell and Big Bell South (located in the upper region of historical mining envelope) have been excluded from Development Plan underground inventory. It is expected as the refurbishment process develops, that these areas will be exposed and provide early stage ore feed when rehabilitating to the lower ‘insitu’ ground.

Supplement to this base load, the existing Comet underground (feeding CGO from June quarter 2018) will provide additional high grade feed.

In the early period, whilst Big Bell builds to its expected annual output of 1 million tonnes per annum, the Comet Mine, Open Pits from the Day Dawn Group and existing low-grade stocks/tailings are plant feedstocks. The refurbishment of the Tuckabianna plant commenced in November 2017 and was completed and commissioned at the end of the March 2018.

The 10-year plan for the CGO has the plant fed at a conservative 1.45 million tonne per annum average over the 10 years (no production in 1HFY18). An average metallurgical recovery of 89.9% is calculated and gold output for the 10 years is 1.1 million ounces from the processing of 13.7 million tonnes at an average grade of 2.7 gt Au. Gold output ranges from 120,000-130,000 ounces during the period when the forecasted underground mines are in steady state production.

Average Cash Costs (C2) for the CGO are A$1,060 per ounce generating A$625 million in free cash flow over the period. All In Sustaining Costs (AISC) average A$1,285 per ounce with EBIT of A$470 million over the period. Costs associated with refurbishment of the plant and associated infrastructure has been included in the CGO financials.

The mining schedule is dominated by underground mining with the following open pit and underground mines progressively scheduled and operating over the period. Refer to release made 8/12/2017 for detailed schedules from each mine.