St Ives gold mine

General location		The St Ives mining operations extend from five to 25km SSW of the town of Kambalda in Western Australia, approximately 630km east of Perth at latitude 31°12’ S and longitude 121°40’ E. The nearest major settlement is the town of Kalgoorlie situated 80km to the north, with well-established power grids, access roads and supporting infrastructure.
Licence status and holdings		St Ives controls prospecting, exploration, mining and miscellaneous tenements over a total area of 168,205ha (inclusive of 43 non-managed leases totalling 6,023ha, and 13 JV tenements totalling 37,213ha where St Ives is currently earning an interest).
Operational infrastructure and mineral processing		St Ives currently operates two underground mines, which are accessed via declines, and two open pits, a centralised administrative office, an engineering workshop and a 4.7Mtpa CIP processing plant.
Climate		St Ives is situated in an area of arid bush land. While occasional storm activity may cause minor delays to open pit mining operations, the climatic conditions do not materially impact on the normal operations of the site.
Local geology and deposit type		St Ives lies within the Kambalda domain, a subset of the Norseman-Wiluna Belt. The Kambalda domain is bound by the NNW trending Boulder-Lefroy fault (BLF) and Zuleika shear. The region has undergone four compressional events predated by early extension and has been metamorphosed to upper greenschist or lower amphibolite facies. The main structural feature of the St Ives area is the gently south-plunging Kambalda anticline, which extends 35km from the south end of the Kambalda dome to the Junction mine. The majority of known gold deposits are proximal to the trace of the anticlinal axis. A major second order structure known as the Playa shear splays off the BLF Shear Zone and can be traced through the St Ives field for a distance in excess of 10km. There are several styles of gold mineralisation at St Ives. Individual deposits may contain more than one of these styles: Lode mineralisation: Archaean lode mineralisation typically consisting of 0.5m to 20m-wide mesothermal vein complexes that may also have hydraulic breccias and/or mylonites Supergene mineralisation: Broad zones of flat-lying gold mineralisation in weathered Archaean and overlying tertiary sediments Palaeoplacer mineralisation: Placer deposits hosted by palaeochannels in the unconsolidated tertiary sediments that overlie the Archaean basement Archaean orogenic greenstone gold hosted in a number of different styles of mineralisation. Lode, supergene and palaeoplacer-style deposits characterise the range of ore body types.
LoM		Ongoing extensional and brownfield exploration continues and could increase the LoM given the prevailing Inferred Resource and strengthening exploration pipeline. It is estimated that the current known Mineral Reserves will be depleted in 2025 (seven years).
Sustainable development		The mine maintained OHSAS18001 Occupational Health and Safety Management System certification and ISO14001 Environmental Management System certification. St Ives was certified as fully compliant with the ICMC in 2013. In late 2016, St Ives was found to be non-compliant to the code. Full certification was regained in April 2017 and retained in 2018.

Gold was discovered at the Kambalda Red Hill camp in 1897 and, in the following 10 years, other gold-bearing locations, such as Victory, were discovered. In 1981, the Victory-Defiance complex (Leviathan area) was discovered.

Gold production commenced at St Ives using a 0.5Mtpa treatment plant (later expanded to 1.2Mtpa). In 1988, a new 3.1Mtpa CIL facility was constructed at St Ives. During 2001, a 2Mtpa heap leach facility was commissioned during the period when Gold Fields acquired St Ives. In 2004, the 4.7Mtpa Lefroy mill was constructed and fully commissioned in early 2005.

From 2007 to 2012, a number of economic deposits were discovered and mined. These include Cave Rocks (2007), Belleisle (2007), Hamlet (2009), Athena (2010) and Invincible (2012).

Production from the Neptune palaeochannel open pit commenced in 2013 and will continue through 2019.

The ongoing exploration strategy delivered the Invincible camp in 2013, which remains the mainstay of mine production. First production from Invincible started in Q1 2015. In 2017, development commenced into the Invincible underground deposit with full production reached in 2018. Development of the access decline to the Invincible South underground deposit commenced in 2018, with level development to commence in 2019. Exploration of the numerous open-ended extensions to the Invincible deposit will continue in 2019.

			Historic performance
	Units		Dec 2018		Dec 2017	Dec 2016
Total mined	kt		22,044		43,012	43,973
– Waste mined	kt		17,737		38,547	39,674
– Ore mined	kt		4,307		4,466	4,300
Mined grade	g/t		3.0		3.1	2.9
Open pit mining
Open pit mined	kt		20,757		42,148	43,114
– Waste mined	kt		17,362		38,166	39,442
– Ore mined	kt		3,396		3,982	3,673
Mined grade	g/t		2.7		2.9	2.6
Strip ratio (waste/tonne ore)	ratio		5.1		9.6	10.7
Underground mining
Underground mined	kt		1,287		865	859
– Waste mined	kt		375		381	232
– Ore mined	kt		911		484	627
Mined grade	g/t		4.1		4.1	5.1
Processing
Total plant treatment (excl toll)	kt		4,250		4,198	3,953
CIL tonnes treated (incl toll)	kt		4,250		4,198	4,046
Head grade	g/t		2.88		2.96	3.00
Yield	g/t		2.69		2.70	2.84
CIL Plant recovery factor (excl toll)	%		92.5		92.5	92.8
Au production ex CIL Plant (incl GFI Toll payment)	koz		366.9		363.9	362.2
Tonnes to heap leach	kt		0		0	0
Yield ex-heap leach (sold)	koz		0		0	0.7
	g/t		n/a		n/a	n/a
Total Au sold (CIL and HL)	koz		367.0		363.9	362.9
	kg		11,414		11,319	11, 287
Financials
Average Au price received	US$/oz		1,266		1,257	1,246
	A$/oz		1,695		1,642	1,672
Exchange rate (annual average)	US$/A$		0.75		0.77	0.75
Cost of sales before amortisation and depreciation	A$M		249		207	244
	A$/oz		678		569	672
Capital expenditure (capex)	A$M		170		204	188
	A$/oz		464		561	517.4
All-in sustaining cost (AISC)	A$/oz		1,207		1,198	1,273
	US$/oz		902		916	949
LoM
Mineral Reserves	Mt		19.09		19.42	21.51
Mineral Reserves head grade	g/t		2.84		2.51	2.52
Mineral Reserves	Moz		1.74		1.57	1.74

Rounding off of figures presented in this report may result in minor computational discrepancies. Where this occurs, it is not deemed significant. During 2016, a small amount of ore was toll treated and St Ives received 1.9koz in payment.

2017/2018 exploration expenditures are presented in the Australia regional section.

In June 2018, St Ives entered into a Farm-in Agreement with Hogans Resources (Pty) Ltd and Lefroy Exploration JV (LEX JV), where St Ives may earn up 70% equity in the LEX JV tenements through exploration expenditure. This agreement allows St Ives to earn exploration and mineral rights over a total additional area of 37,017ha. The site exploration team is supported by in-house geophysics, regional and corporate technical teams. Rigorous sampling and assaying QA/QC protocols are maintained on all exploration programmes. Industryleading practice is applied for data acquisition and accredited assay laboratories are used, which are regularly reviewed both internally and externally.

In 2018, extensional exploration targeted the Invincible underground trend, which will continue in 2019, and Hamlet North. The high-grade Hamlet North deposit was drilled to Reserve status in the first half of 2018 allowing for the planning of underground access for a drill drive to commence. Additional brownfield exploration continues to focus on the Eastern Causeway, Kambalda West and the Speedway trends using a combination of auger, aircore and RC drilling, geochemistry and geophysics to generate an integrated prospectivity model to prioritise and direct future investment. The Speedway trend is a 20km plus prospective belt where exploration success was achieved in 2017, extending the Invincible group of deposits. Systematic geochemical testing of the entire trend was completed in 2018. Follow-up RC drilling of the southern Speedway Trend identified significant mineralisation at the Venom prospect. A 3D Seismic Cube was surveyed over the Victory Defiance complex in Q3 2017. Data from this survey was interpreted in 2018, with drill testing of initial targets generated conducted in the second half of 2018.

Notable activities include foundational data set and auger geochemical sampling at Kambalda West aimed at identifying targets for follow-up in 2019, and the Southern St Ives areas will undergo auger geochemical sampling in 2019.

Conventional drill and blast with truck and shovel mining techniques are employed at all open pits. Grade control is generally by way of inclined RC drilling on grids determined by the ore body characteristics. Load-andhaul is carried out by 90 – 180t dump trucks and 150 – 350t excavators in backhoe and/or face shovel configuration. Mining benches vary from 5m to 10m, and are excavated in passes (flitches) of 2.5m to 3m per flitch. Gold mineralisation is mined selectively to cut-off grades, and segregated into grade ranges to balance the ore production and processing capacities onsite and to maximise cash-flow.

Underground mines at St Ives are commonly extensions of open pit mines. Mines are accessed via declines, drives are developed to access the ore and future stoping production areas. Underground mining at St Ives is predominantly mechanised and conducted by long-hole open stoping (LHoS), with subordinate cut-and-fill and roomand- pillar stoping for the shallower dipping ore bodies. Paste fill and LHoS are used where mandated by geotechnical factors. Electrichydraulic drilling jumbos and rubbertyred diesel-powered load, haul, dump machine are used for development and stoping, while trucks are used for load-and-haul operations. Ore from both open pit and underground operations is transported with road trains from individual mining operations to the central St Ives RoM pad.

Mine planning and scheduling

Cut-off grades are used to define potentially economic underground mining panels, taking into consideration direct mining and processing costs, company set commodity prices and other parameters. The economic viability of future mining panels is tested by determining whether the margin, after applying the appropriate cut-off grade, is sufficient to cover the required capital development and mining costs.

Open pit optimisation software, in conjunction with economic parameters and physical constraints, is used to generate a series of nested pits for open pit mining. An optimal shell is then selected and a detailed design used to confirm the mineability.

Underground mining methods are largely determined by the geometry of the mineralised zones and evaluation may involve review of more than one method. Fit-for-purpose proprietary software is used for mine design and scheduling.

Mine planning is based on 3D resource block models of in situ mineralisation, with allowances made for minimum mining widths, dilution and ore loss in line with the mining method being considered.

The next major mine project at St Ives will be the development of the Invincible South underground mine. Decline development extending from the Invincible underground decline to access Invincible South, commenced in 2018 and was well advanced by year end. Development of the Hamlet North deposit commenced in 2018 with the construction of a drill drive from the Hamlet mine. Mine access to the deposit will commence from the drill drive access in 2019. Additionally, development and mining of Neptune Stage 5 and 6 pits, which commenced in 2017, will continue in 2019.

Infrastructure, waste disposal and ore stockpile management requirements are incorporated into the planning process. Ore stockpile management at St Ives strives to optimise the metallurgical blend requirements of the Lefroy Mill, with regard to variable material types and grade management. To ensure ICMC compliance, a cyanide destruct circuit has been added to the St Ives processing configuration. Innovation and technology

Innovation and technology

Advancement of value-add preliminary stage technology solutions is focusing on the following:

• Installing proximity detection systems in the open pit and underground operations
• Developing digitally enabled drilling practices with high precision GPS
• Installation of fibre optic backbone and high bandwidth WiFi at Invincible underground and Invincible South
• Deployment of Newtrax safety systems as part of the proximity detection deployment
• Use of real-time equipment data collection and ventilation on demand

Geology and evaluation models have been updated to reflect the latest available data sets. An integrated mine design and schedule is based on current performance levels and takes cognisance of all constraints and capacities inherent to the mining operations at St Ives. The Mineral Resources and Mineral Reserves have been updated using the current planning gold price of A$1,850/oz and A$1,600/oz respectively, and reported in accordance with the SAMREC Code.

The Mineral Resources are classified as Measured, Indicated and Inferred as defined in the SAMREC Code. Increasing levels of geoscientific knowledge and confidence are based on geological understanding, grade variance, drill hole/sample spacing, mining development (amount of exposed and mapped mineralisation) and mining history. The economic evaluation is based on the Company planning gold price, taking into account estimates of all costs, the impact of modifying factors such as mining dilution and metal/ore recovery, processing recovery and royalties. All Mineral Resources and Mineral Reserves reported are 100% attributable to St Ives.

Mineral Resources

The Mineral Resources increased post depletion by 2% to 3.93Moz, primarily due to discovery at Hamlet North and further growth from the Invincible underground trend. The surface sources include stockpiles that are supported by adequate sampling, and are thus classified as Measured Mineral Resources.

MINERAL RESOURCE CLASSIFICATION

	Tonnes (kt)						Grade (g/t)						Gold (koz)
Classification	Dec 2018		Dec 2017	Dec 2016			Dec 2018		Dec 2017	Dec 2016			Dec 2018		Dec 2017	Dec 2017
Open pit and underground
Measured	2,154		1,356	2,291			3.58		3.89	3.26			248		169	240
Indicated	19,815		22,164	17,980			4.13		3.85	3.81			2,628		2,744	2,203
Inferred	7,779		7,467	6,538			3.58		3.31	3.56			895		795	747
Total open pit and underground	29,747		30,987	26,809			3.94		3.72	3.70			3,771		3,709	3,191
Surface
Measured stockpiles	3,436		3,457	3,317			1.42		1.25	1.00			157		139	107
Grand total	33,183		34,445	30,126			3.68		3.47	3.40			3,928		3,847	3,297

MINERAL RESOURCE CLASSIFICATION PER MINING AREA

	Measured				Indicated
Area	Tonnes (kt)	Grade (g/t)	Gold (koz)		Tonnes (kt)	Grade (g/t)	Gold (koz)
Open pit
APN	–	–	–		315	7.70	78
Incredible	–	–	–		1,291	1.88	78
Invincible Pit	307	3.06	30		412	3.55	47
Justice	–	–	–		547	2.64	46
Neptune	746	1.97	47		3,102	2.99	298
Pistol Club	–	–	–		538	3.77	65
Santa Ana	–	–	–		1,433	2.27	105
Yorick	–	–	–		90	4.54	13
Other	25	2.22	2		2,076	2.98	199
Total open pit	1,077	2.28	79		9,803	2.95	929
Underground
Argo	151	4.82	23		481	4.67	72
Cave Rocks	262	4.75	40		210	4.55	31
Hamlet	234	5.73	43		443	4.66	66
Hamlet North	–	–	–		874	8.87	249
Invincible UG	219	5.66	40		1,798	4.33	250
Invincible Deeps	–	–	–		2,052	5.58	368
Invincible South	–	–	–		1,684	7.25	393
North Orchin	–	–	–		570	4.28	78
Sirius	211	3.29	22		1,899	3.13	191
Total underground	1,077	4.87	169		10,011	5.28	1,699
Surface
Surface stockpiles	3,436	1.42	157		–	–	–
Grand total	5,590	2.25	405		19,815	4.13	2,628

	Inferred				Total Mineral Resource
Area	Tonnes (kt)	Grade (g/t)	Gold (koz)		Tonnes (kt)	Grade (g/t)	Gold (koz)
Open pit
APN	–	–	–		315	7.70	78
Incredible	445	2.16	31		1,736	1.96	109
Invincible Pit	41	3.49	5		759	3.35	82
Justice	169	3.09	17		716	2.75	63
Neptune	776	2.39	60		4,623	2.72	405
Pistol Club	41	1.82	2		579	3.63	68
Santa Ana	84	2.03	6		1,517	2.26	110
Yorick	429	3.40	47		518	3.60	60
Other	861	2.82	78		2,963	2.92	278
Total open pit	2,846	2.68	245		13,727	2.84	1,253
Underground
Argo	187	3.75	23		819	4.49	118
Cave Rocks	76	3.63	9		548	4.52	80
Hamlet	30	4.32	4		706	5.00	114
Hamlet North	132	7.64	33		1,007	8.71	282
Invincible UG	1,185	4.04	154		3,202	4.31	444
Invincible Deeps	884	5.18	147		2,937	5.46	516
Invincible South	872	5.04	141		2,556	6.50	534
North Orchin	699	3.51	79		1,269	3.85	157
Sirius	867	2.17	61		2,977	2.86	274
Total underground	4,933	4.10	650		16,021	4.89	2,518
Surface
Surface stockpiles	–	–	–		3,436	1.42	157
Grand total	7,779	3.58	895		33,183	3.68	3,928

Modifying factors

• All Mineral Reserves are quoted in terms of RoM grades and tonnages, as delivered to the metallurgical processing facilities, and are therefore fully diluted
• The Measured and Indicated Mineral Resources are inclusive of Mineral Reserves
• The Mineral Reserve Statements include only Measured and Indicated Mineral Resources, modified to produce Mineral Reserves that are contained in the LoM plan
• Mineral Resources and Mineral Reserves undergo regular internal and/or external audits, and any issues identified are rectified at the earliest opportunity – usually during current reporting cycle

			December
	Units		2018		2017	2016
Mineral Resource parameters
Mineral Resource Au price	US$/oz		1,400		1,400	1,400
	A$/oz		1,850		1,850	1,850
Cut-off for oxide ore	g/t		0.74 – 1.03		0.74 – 0.93	0.55 – 0.96
Cut-off for fresh ore	g/t		0.74 – 3.3		0.74 – 3.1	0.55 – 3.2
Cut-off for mill feed	g/t		0.74 – 1.03		0.74 – 0.95	0.55 – 0.96
Cut-off for open pit	g/t		0.74 – 1.03		0.74 – 0.95	0.55 – 0.96
Cut-off for underground	g/t		2.0 – 3.3		1.8 – 3.1	2.4 – 3.2
Mineral Reserve parameters
Mineral Reserve Au price	US$/oz		1,200		1,200	1,200
	A$/oz		1,600		1,600	1,600
Cut-off for oxide ore	g/t		0.35 – 0.40		0.4	0.5
Cut-off for fresh ore	g/t		0.35 – 2.7		0.4 – 2.9	0.5 – 3.0
Cut-off for mill feed underground	g/t		2.0 – 2.7		2.3 – 2.9	2.6 – 3.0
Cut-off for mill feed open pit	g/t		0.35 – 0.40		0.4	0.5
Mining recovery factor (underground)	%		90 – 97		90 – 97	90 – 95
Mining recovery factor (open pit)	%		91 – 100		97 – 98	95 – 98
Strip ratio (waste:ore)	ratio		5.7		6.2	6.6
Mine Call Factor (MCF)	%		100		100	100
Dilution open pit	%		15 – 52		15 – 50	2 – 49
Dilution underground	%		11 – 25		12 – 25	15 – 25
Plant recovery factor	%		69 – 96		69 – 96	78 – 94
Processing capacity	Mtpa		4.7		4.7	4.7

Grade tonnage curves for the underground and open pit Mineral Resource are presented below:

Grade tonnage curve – Open pit		Grade tonnage curve – Underground

Mineral Reserves

Mineral Reserves at St Ives increased, post mining depletion, by 11% to 1.74Moz in 2018. The dominant contributors to Mineral Reserves are extensions to footprints in the Invincible open pit, Neptune open pit and Invincible underground, with maiden Reserves at Invincible Deeps and the high-grade Hamlet North deposit.

The uncertainty around the timing of discoveries and lead times to bring a new mine into production are characteristic of orogenic-style operations but property endowment and a strong project pipeline continues to warrant expenditure in line with the strategic plan. The Mineral Reserves are derived from the LoM plan, which is supported by a detailed design and schedule that takes account of cut-off grades, mining fleet productivities, prevailing geotechnical factors that direct optimal sequencing, and incorporates appropriate modifying factors. Surface sources include stockpiles. Capital requirements are accommodated in the cash-flow model to ensure sustainable operations over the LoM.

MINERAL RESERVE CLASSIFICATION

	Tonnes (kt)					Grade (g/t)					Gold (koz)
Classification	Dec 2018		Dec 2017	Dec 2016		Dec 2018		Dec 2017	Dec 2016		Dec 2018		Dec 2017	Dec 2016
Open pit and underground
Proved	1,648		1,131	2,797		2.21		3.08	2.15		117		112	193
Probable	14,006		14,831	15,398		3.26		2.76	2.91		1,467		1,318	1,441
Total open pit and underground	15,654		15,961	18,195		3.15		2.79	2.79		1,584		1,430	1,634
Surface
Proved	3,436		3,457	3,317		1.42		1.25	1.00		157		139	107
Grand total	19,090		19,419	21,512		2.84		2.51	2.52		1,741		1,568	1,740

MINERAL RESERVE CLASSIFICATION PER MINING AREA

	Proved					Probable					Total Mineral Reserve
Area	Tonnes (kt)	Grade (g/t)	Gold (koz)			Tonnes (kt)	Grade (g/t)	Gold (koz)			Tonnes (kt)	Grade (g/t)	Gold (koz)
Open pit
Incredible	–	–	–			1,410	1.27	57			1,410	1.27	57
Invincible Pit	354	2.63	30			470	3.09	47			824	2.89	77
Neptune	1,026	1.31	43			2,581	2.33	193			3,606	2.04	236
Pistol Club	–	–	–			668	2.55	55			668	2.55	55
Santa Ana	–	–	–			1,596	1.45	74			1,596	1.45	74
Other	7	1.78	0.4			1,923	2.40	148			1,930	2.40	149
Total open-cut	1,387	1.65	73.4			8,649	2.07	575			10,036	2.01	648
Underground
Hamlet North	–	–	–			970	6.93	216			970	6.93	216
Invincible UG	91	5.72	17			1,414	4.02	183			1,505	4.13	200
Invincible Deeps	–	–	–			1,511	4.38	213			1,511	4.38	213
Invincible South	–	–	–			1,389	6.09	272			1,389	6.09	272
Other	170	4.89	27			73	3.52	8			243	4.48	35
Total underground	261	5.18	43			5,357	5.18	892			5,618	5.18	936
Surface
Surface stockpiles	3,436	1.42	157			–	–	–			3,436	1.42	157
Grand total	5,084	1.67	274			14,006	3.26	1,467			19,090	2.84	1,741

MINERAL RESOURCE AND MINERAL RESERVE RECONCILIATION YEAR ON YEAR

Factors that affected Mineral Resource reconciliation		Factors that affected Mineral Reserve reconciliation
Mining depletion		Mining depletion
Resource model enhancements and discovery at Hamlet North, Invincible UG, Invincible South, Neptune and additional HW/FW lodes in Invincible Pit		Discovery and conversion at Hamlet North, Invincible Deeps, Neptune and Invincible Pit
Higher costs negatively impacted some underground Mineral Resources

Mineral Resource reconciliation		Mineral Reserve reconciliation

Mineral Reserve sensitivity

Mineral Reserve sensitivity

To illustrate the impact of fluctuations in gold price and exchange rates on the current declaration, St Ives has generated sensitivities with respect to Mineral Reserves. The following graph indicates the Managed Mineral Reserve sensitivity at -15%, -10%, -5%, base (reserve gold price - A$1,600/oz), +5%, +10% and +15% to the gold price.

These sensitivities (other than for the base case) are not supported by detailed plans and depletion schedules. They should only be considered on an indicative basis, specifically as such sensitivities assume 100% selectivity, without any operating cost increases.

MINE SITE INFRASTRUCTURE LAYOUT