293_3x08x2006100444am

1THE TELFER GOLD MINE

INTRODUCTION

Marco Zolezzi General Manager

2UNDERGROUND

SHAFT SYSTEM Sinking and Lining completed 28 Feb 05 Cable equipping completed 23 Mar 05 Winder building, winder and sky shaft installation commenced

UNDERGROUND FIXED CAPITAL PLANT Civil contract awarded Mechanical and electrical bids received and under evaluation

From Telfer To: Direct km

Nifty 70

Woodie Woodie 110

Gregory Range 110

Marble Bar 270

Newman 320

Port Hedland 450

Perth 1,300

3Telfer Gold Mine Licence to Operate

4Telfer Safety LTIFR of 3.9. (0.98 injuries per 100 employees) Our approach to safety is forward looking and

involves engaging with the workforce (Target Zero) Safety Behaviour Observations (SBOs) one per week for

all trained personnel. Close out of investigations after three weeks 100%. Close out of corrective actions after four weeks 100%. Six Target Zero working groups operational with employee

participation. Ensuring contractor participation in our safety programs

5Environmental Overview

Environmental Management at Telfer Gold Mine includes; The Port Hedland Copper concentrate facility The Port Hedland to Telfer Gas Pipeline Telfer Gold Mine itself

6Environmental Overview

Port Hedland Copper Concentrate Facility Includes an Environmental Management Plan (EMP) that addresses mostly dust,

waste water and clean up post loading Recent upgrades to improve environment include internal dust extraction

upgrades, installation of man cooler fans, and industrial strength roller doors

PH to Telfer Gas Pipeline Operated and environmentally managed by Gasnet Transmission services (WA) Fibre optic cable installation, via Telstra, scheduled to commence mid July 2006

7Telfer Gold Mine Environmental Mgt Mine lease conditions current. Recent DoIR audit highlighted ARD management as

major issue and sighted R&D work associated with rehabilitation as positive Site wide Environmental Risk Assessment conducted October 2005. All issues

identified are actioned through each departments EMP (1 implemented, and 4 pending). Level III and IV risk has capital plan

Environmental Non-compliances

No Cat III or IV incidents for 2005/2006

8Environment Programs New 6 year plus Class II landfill commissioned New waste transfer and recycling area fully operational; recyclables to

date includes 20 m3 of Al, 447 m3 of cardboard and 120 m3 of scrap steel (last two months of data). 15% of revenues donated to charity. WA govt. vision is for zero waste 2020

Dingo Management Plan nominated for DoIR Golden Gecko award Wildlife Hospital and partnership with Kanyana - nominated for DoIR

Golden Gecko award

Mesa landform for closure (possible Banksia award)

9Native Title/Community

Mine Site & Infrastructure Corridor Agreements with Native Title Groups

MOU & Community Benefits Agreement in place with Traditional Owners - Martu

Community Programs with Martu Agreements Implemented, WIP Training and Employment Opportunities

10

Native Title / Community

Training commenced annual programs Employment skills register Contracting opportunities for existing business Business Development setting up new business Cultural Awareness presented by Martu Community programs with Town of Port Hedland ,

Government & Others

11

Telfer Today

12

Planned PitMAIN DOME

Planned PitWEST DOME

1 km

Telfer Tomorrow

13

The Telfer Re-Development Open pit mine to produce 13-15 million tonnes of ore/annum Underground mine to produce 4 million tonnes of ore/annum Twin train concentrator to treat 17-19 million tonnes of

ore/annum to produce gold dore and copper/gold concentrate. 120Mw Gas fired power station with gas pipeline from Port

Hedland Ancillary services & utilities to support the mining &

treatment plant operations Upgrades to Telfer access road and village accommodation

14

Telfer Gold Mine Statistics

Ore Reserve* of 17 million ounces of gold

Ore Resource* of 26 million ounces of gold

23 year operating life based on ore reserve

Average annual production

770,000 ounces of gold

27,800 tonnes of copper

Operating workforce 1100 people

* Resources & Reserves as at 30 June 2005

15

Telfer Project ProgressOpen Pit Mine- Operating Commenced stripping Operations in May 2003 Supplying ore to the plant at 21Mtpa 05/06 Planning 15Mtpa 06/07Underground Mine - Developing Delays in commissioning the underground mine Expect 4 Mtpa rate by 4th Quarter 2006/07Concentrator In Production First ore train commissioned in Nov 2004 Second ore train commissioned in Feb 2005 Both trains exceeded design capacity in less than a month

16

Successes Challenges Open Pit Mine exceeds

Feasibility Targets Concentrator exceeds

Nameplate Capacity Concentrate Marketability

Arsenic and Cobaltite Gravity Gold Recovery

(25%)

Supergene Reserve Grade (Minimal Impact on LOM) Delayed Underground Mine Skill Shortage and Staff Turnover

17

Human Resources Key Issues Experienced operations management team in place New employees recruited job ready Federal Australian Workplace Agreements implemented for

employees Use of contractors in specialist areas Turnover 2005/06 ~30% (Prior year ~40%) Recruitment of Skilled Employees Focus Group improve roster and reviewed remuneration

18

THE TELFER GOLD MINE

Key Statistics2005/06

19

Open Pit - 2005/06 ProductionActual Feasibility

Ore Mined Mtn 22.1 15.5

Dump Leach Mined Mtn 0.7 1.1

Waste Mined Mtn 23.9 30.2

Total Material Mined Mtn 46.7 46.8

LOM Strip Ratio 2.87

20

Ore Processing Full Year 2005/06Actual Feasibility

Open Pit Ore Milled Mtn 20.2 15.5

Underground Ore Milled Mtn 0.2 3.1

Total Ore Milled Mtn 20.4 18.6

Dump Leach Ore Treated Mtn 0.0 1.3

Total Ore Treated Mtn 20.4 19.9

Milled Grade Cu % 0.28 0.34

Gold Recovery % 81.0 92.0

Milled Grade Au g/t 1.18 1.81

Copper Recovery % 66.6 82.7

21

Ore Processing Full Year 2005/06 Gold Production

Actual Feasibility

Open Pit koz 640 682

Underground koz 10 316

Total Concentrator koz 650 998

Dump Leach koz 0.0 19

Total Gold Produced koz 650 1,017

22

Ore Processing Full Year 2005/06 Copper Production

Actual Feasibility

Open Pit Ktn 37.8 36.7

Underground Ktn 0.6 19.8

Total Copper Produced Ktn 38.4 56.5

1TELFER ORE PROCESSING

Mike Nelson Ore Processing Manager

2Ore Processing - Introduction Concentrator originally designed to process 17-19Mtpa

Two trains of processing 15 Hectare site (15 times the footprint of the old Telfer

concentrator) Conventional Processing technology used

Crushing SAG and Ball mill with recycle crushing (SABC) Flotation circuit, (150 m3 tank cells) Leaching circuit for pyrite concentrate Copper concentrate and bullion produced on site

Copper concentrate trucked to Port Hedland for shipping. Single circular tailings dam

490 Hectare area Sufficient for Life of Mine (with wall lifts throughout life)

3Ore Processing

5Ore Processing - Overview Continued to maintain a high environmental and safety

performance.

Milled tonnage continues to exceed feasibility FY05 throughput of 8.8Mt at an operating time of 75.5% FY06 throughput of 20.6Mt at an operating time of 90.9% FY07 forecasts similar throughputs with continuing improvement

in operating times allowing for harder underground ore.

Pyrite leaching circuit commissioned Feb 2006, and first major campaign on sequential ore from underground and Open Pit planned for August 2006.

6Ore Processing - Overview Overall recovery of gold and copper lower than feasibility,

influenced by; Supergene ore grade Ore treatment mode Copper concentrate grade requirements

Gravity Recovery remains lower than feasibility Intensive Leach Reactor successfully commissioned Grind size in upper ores contributing to finer gold production

which is less efficiently recovered in primary gravity units Initial trials on changing feed source to primary gravity units

shows promise

7Ore Processing - Overview Reduction of Arsenic in concentrate shows good progress

FY06Q4 showed a reduction to 28% of high-grade Arsenic concentrate

Increased proportion of underground ore in FY07 will assist in increasing the proportion of concentrate with low Arsenic.

Two Concentrates pilot trials complete and successful. Was usedto treat one train in Q4 and significantly contributed to the lower amount of concentrate at high Arsenic levels.

8Ore Processing Cost Distribution FY06

0%

5%

10%

15%

20%

25%

30%

35%

40%

A

d

m

i

n

i

s

t

r

a

t

i

o

n

C

r

u

s

h

i

n

g

&

R

e

c

l

a

i

m

G

r

i

n

d

i

n

g

F

l

o

t

a

t

i

o

n

&

C

o

n

c

e

n

t

r

a

t

e

H

a

n

d

l

i

n

g

P

y

r

i

t

e

L

e

a

c

h

i

n

g

T

a

i

l

i

n

g

s

G

o

l

d

R

o

o

m

L

a

b

o

r

a

t

o

r

y

S

e

r

v

i

c

e

s

(

P

o

w

e

r

)

FY06 Costs = $6.36/tonne milled

9Metallurgy Focus FY07 Pyrite Leaching

Underground and lower Open Pit sulphidic ores to be treated in sequential mode from August 2006.

Sequential flotation: A separate copper concentrate and pyrite concentrate produced Pyrite concentrate is leached and recovered gold is shipped as dore Expect 10-15% of the gold in these ores to be recovered via pyrite leach.

Leaching circuit optimisation Cyanide consumption will be a key economic driver of the leach circuit

Have involved external experts including CSIRO to assist in optimisation of the circuit leach chemistry.

Circuit has been proven in terms of throughput capacity earlier this year.

10

Metallurgy Focus FY07 Recovery

Gold Recoveries have been lower than feasibility Ore treatment route

Four main treatment routes bulk float, copper only, pyrite only, sequential Majority of ore treated in FY06 has been upper Open Pit ore (supergene),

planned to be treated as a bulk float ore. Copper-only mode has been used predominantly due to higher concentrate

grade targets. Use of cyanide to depress pyrite in this ore, and a specific copper

collector to float off copper minerals As a result, gold and copper recovery (associated with pyrite) have

suffered. FY07 will see an improved recovery of gold and copper due to normalisation of

production reducing the amount of copper only treatment.

11

Metallurgy Focus FY07

Gravity Gold Target gold to gravity has been 40%. But achieving closer to 25%.

Gold distribution to flotation has been much higher than feasibility 75% of gold in concentrate is liberated of which 25% is gravity

recoverable.

Oxidised and softer Supergene ores have led to overgrinding, and slimes generation

Reducing potential to recover to gravity (gold too fine) Over 80% of the gravity recoverable gold in concentrate is flattened

and is less effectively recovered in Knelson/Falcon centrifugal concentrators.

12

Metallurgy Focus FY07

Gravity Gold Actions taken to date

Intensive Leach Reactor (ILR) installed to leach gold room tails Prevents this stream entering final concentrate ILR available to leach other high grade low mass streams

Mobile gravity units (two 30 Knelson concentrators) Trial done on final concentrate stream

Lower recoveries than expected (flat gold escaping?)

Primary gravity unit performance (Falcon concentrators in grinding) Improved availability (wear issues have been significant) Ordered fourth unit for each train to increase recovery

13

Metallurgy Focus FY07 Gravity Gold

Actions still to take Trial mobile Knelsons on other flotation streams

Primary gravity recovery Install and commission fourth Falcon per train (H1, FY0607) Trial cyclone underflow to these units rather than cyclone feed as

designed and current configuration. This currently underway on one train Results are encouraging May result in utilising cyclone underflow as feed to gravity units

rather than cyclone feed.

14

Metallurgy Focus FY07 Gravity Gold

Actions still to take Further optimisation to minimise overgrinding of ore and gold particles.

Coarsen grind in SAG mill (only by varying level of grinding media)

Coarsen grind in ball mill (by reducing amount of grinding media or increasing size of grinding media)

Potential to decrease Open Pit powder factors on softer ores

15

QUESTIONS & ANSWERS

May 2006All rights reserved Newcrest Mining Ltd

TELFER OPEN PIT

Steve Batman Open Pit Manager


Open Pit Operations - Introduction

2 pits: Main Dome & West Dome Commenced mining in the Main Dome Main Dome dimensions 3km x 1.5km x 650m Open pit has mined 136 Mt since May 2003 Current depth 180m


T e l f e r P r o j e c t J u n e 2 0 0 3 2

M i n i n g S t a g e s F i r s t 4 Y e a r sM I N E S C H E D U L I N G

Open Pit Mine Schedule


Total Tonnes by Mining Stage

0.0

1.0

2.0

3.0

4.0

5.0

6.0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

Production Month

T

o

t

a

l

T

o

n

n

e

s

(

M

t

)

Stage 4Stage 3Stage 2.3Stage 2.2Stage 2.1Stage 2Stage 1

Mine Scheduling


Open Pit Fleet

Newcrest owned fleet workforce of 160 operators

Contract Maintenance (Westrac & Leibherr)

19 Caterpillar 793 Haul trucks, 4 more to be delivered

Liebherr - 2 995 Excavators and 1 996 Face Shovel, 2nd 996 ordered as an Excavator

3 Driltech D75K Blasthole drills and 1 Pantera 1500 on site, A New D55SP (Single Pass) to be delivered.

Moving towards a longer term hire agreement on the small fleet.


Strategy to Minimize Dilution and Ore Loss

Mining method utilised has changed from initial bulk mining to selective mining at high production rates

Planning Allowing maximum mining width through areas to prevent tight spots that force poor technique

Digging direction From Hanging wall to Footwall

Digging direction Mining squarely across the boundary

Size of Block mark out and orientation for machine size

Correct Block number entered in Dispatch


M10 exposed


Digging direction

ORE

WASTE

CONTACT

Rill angle will approximate ore\waste contact

CORRECT DIGGING DIRECTION


Digging direction

ORE

WASTE

INCORRECT DIGGING DIRECTION

RILL SLOPE

ORE LOSS


Example - Focus for Operators

Dozing direction and timing Dozing should always be done north-south Dozer and digger operators need to communicate with each

other the best time for floor cleanup i.e. if ore block already faced up, dont push waste into it.

Sheeting Ore zones should not be sheeted Sheeting can be carried out, but only after consultation with a

geologist


Dilution Due to Blasting

Blast MovementIssue : Blast Movement monitoring to assist dilution reduction.

Actions : To measure and define the direction of Blasting Movements inproduction blasting.

All blasting is semi-parallel to strike of Ore body, unless approved by Mining Manager.

Looking at blast vector indicators (BVIs) for a large trial.

Supplied from JKTech. System has shown 1-3 m of horizontal movement. More senders on order


BMT Unit


Production Costs Open Pit2005/06 Telfer Open Pit Costs

$2.10 per tonne mined

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Westrac Liebherr Diesel Labour Tyres BulkExplosives

GET Lubes

Cost Center

P

e

r

c

e

n

t

o

f

T

o

t

a

l


The Bottom Line

To continue to feed the mill at 45-50 ktpd at a strip ratio of 2.87:1 ( Stage 3) requires a Mining Rate of 175 to 194 ktpd

Transitioning into Stage 4 next July requires 225 to 250 ktpd.

Improvements are being implemented in multiple areas and additional equipment is being delivered (4 Trucks Currently)


Operating Improvements

Mining Production Rates Quick Shift Change has been well accepted and improved truck

utilisation. Additional Capacity to be Added

4 x 793 Cat Haul Trucks 1 x 996 Excavator

Dump Optimization Using results of Dump Solver for operating costs savings

Refuelling Near Pit Refuelling system purchased. Reduces delays.


QUESTIONS & ANSWERS

1Telfer Underground

Grant Davidson Chief Underground Transition Manager

2Shaft, to 1126m @ 7m dia loading stn at 1100m,

6.5 Mtpa Two exhaust shafts

4.5m dia, centrifugal fans

Gyrator crusher; 54x74 Metso

Truck loading chutes; 2 commd, 6 in total

Main Pumps; 3 Apex, total installed

capacity of 135 l/sLevel interval 25m

X-cut at 14m centres

3Exhaust system

complete (red)

Crusher has been

commissioned

Shaft requires a sheave shaft change out for statutory compliance,

18 days shutdown

Undercut

Mining undercut and second level

2nd Level

2 of 6 ore passes with truck chutes

are being commissioned

(yellow)

East

West

ShaftCooled intake airway & hoisting

VR10Exhaust

VR 11Exhaust

Decommissioned

0 50 100

Scale, metres

4Comparison with RidgewayTelfer Deeps Characteristics: Differences with Ridgeway:

Immediate production ramp up post commissioning of hoisting system

Undercut extracted prior to commissioning ore handling system

Longer strike length; 50+ cross cuts 20 cross cuts

High grade in reefs with surrounding stockworks,39Mtonnes, Au 2.7g/t, Cu 0.50%

Porphyry; at the end of Feasibility, 32Mtonnes, Au 2.7g/t, Cu 0.76%

Starting depth; undercut at 850m Undercut at 500m

Open pit interaction No open pit interaction

LHD/truck haulage/hoisting/conveyor LHD/LHD/conveyor

5Changes since Oct 2003 analyst visit

New portal proposed from the western side of the open pit did not proceed New decline to surface completed; decoupled UG/Operations

Infrastructure/access to the SLC established on the east; Retains potential of mineralisation to the west of the SLC

6Mining Contractor Change Over

Mining targets were not being met under previous contract arrangement

Alliance agreement established with Byrnecut (BCM) September 2005 Offers Newcrest greater flexibility Confident that operating targets can be achieved in 06/07

Results so far; Integrated scheduling & co-ordination, improved development

performance Reduced workforce turn over

Underground site numbers; 330 NCM 40, BCM 231, Other Contractors 9, Remaining capital works 50

7 Good quality services & infrastructure Development capability is in place and will accelerate with

new infrastructure taking shape Ore handling system now commissioned Operations well planned

Detailed design & scheduling Deployment schedules are targeting critical areas with good

compliance to target

SLC undercut production commenced in March 2006

Sound Fundamentals are in Place

Undercut Level

Undercut Level Development Planned to Sept 2006

2nd Mining Level

2nd Mining Level Development Planned to Sept 2006

12

Production OutlookWith the ore handling system fully functional, post completion of the sheave shaft replacement, planning is focussed on achieving a 4 Million tonnes per annum rate by March 2007.

Critical drivers are: 1. Development Advance

2. Caving initiation

3. SLC recovery

13

Production Outlook2. Caving Initiation. Empirical models indicated initiation of caving

by Feb 07. The undercut area is 30% larger than the estimated threshold Localised geotechnical data from the undercut implies potential for

reduced hydraulic radius A range of monitoring systems are in place or planned Current micro-seismic system, effective for cave column height of 350m Planned Extension of the monitoring system

14

Production Outlook3. SLC Recovery. Estimation processes similar to Ridgeway Initially estimated recovery curves used, that require validation by

planned marker trials Build on knowledge gained at Ridgeway

Marker trial program established July 2002 at Ridgeway; 70 plus sets of results; provides insight into primary, secondary, tertiary recovery

Telfers Marker Trial Program: Facilitate an assessment of recovery (timing and location); Better understanding of ore flow to drawpoints, resource recovery, and hence

ability to predict/calibrate recovery life of mine Ability to design and implement strategies to improve recovery

Tools for drill and blast optimisation, and draw control management

15

QUESTIONS & ANSWERS


Telfer Geology


Telfer

Nifty

Montana

East Trotmans

Munro

Iron Hill

Minyari

Weenoo Granites


Paterson Province Regional Setting


Telfer Main Dome Aerial View ~1974


Stratigraphy of the Yeneena Supergroup

WilkieQuartzite

Kaliranu Beds(InformalName) 9000m

8000m

7000m

6000m

5000m

4000m

2000m

3000m

1000m

0m

PuntapuntaFormation

MaluQuartzite

IsdellFormation

BroadhurstFormation

Coolbro Sandstone

UPP

ER Y

ENEE

NA

SUB

-GR

OU

PLO

WER

YEN

EEN

ASU

B-G

RO

UP

RUDALLMETAMORPHIC COMPLEX

Telfer Fm

DOLOMITELIMESTONE

MUDSTONE

SANDSTONE

CONGLOMERATE

TELFERGOLDDEPOSITS

NIFTY (Cu)

KINTYRE (U)


TELFER PROJECTRESOURCE POTENTIAL

Looking NNE

TELFER PROJECTRESOURCE POTENTIAL

Looking NNE


Telfer Dome Mineralisation

Main Dome E-Reefs & MVR

I30 Monocline (SLC)

West Dome E-ReefsMVR

LLU

Telfer Dome Fold Axis


Monocline Pit Shell in Relation to Drilling

Main Dome M-Reef Resource Potential

Monocline Pit Shell Dictated by Drilling


Telfer Resource Interpretation

Review of dominant mineralisation styles incorporating new (June 2006) gold interpretation


Telfer Supergene Mineralisation

Oxide and Transition zones more complicated mineralogically thanexpected

Complex suite of sulphide minerals including arsenic species Mining practices in place to manage arsenic grade presented to mill Upper, more complicated remnant areas of the open pit mined to date


New Geological Interpretation Key findings

Increased geological data has improved confidence in interpretation

Mining to date has been through mineralisation styles dominantly parallel to stratigraphy with localised domains of sub-horizontal enrichment

June 06 interpretation identifies broader sub-horizontal high gold grade mineralisation styles evident in areas

since beginning of May 06 potential for northerly extension to known mineralisation beyond Monocline Pit

shell

Existing Monocline Pit shell is constrained by extents of existing resource definition drilling


Telfer Open Pit Feasibility & June 2006 Au Interpretation

TELFER OPEN PITCross-section looking North

Dominant stratigraphic control parallel to E-reefs

Consistent broad domains of stockwork mineralisation as well as reef development

EOM April 06 wireframe

0.8 g/t Gold Contours


Telfer Main Dome Pit June 2006

5344mRL 5344mRL

Dominant stratigraphic control parallel to E-reefs

Consistent broad domains of stockwork mineralisation as well as reef development

TELFER OPEN PITCross-section looking North

0.8 g/t Gold Contours


Arsenic and Cobalt Mineral Associations

AsSCoS Ratios


Testwork Results

Arsenic and cobalt are primarily hosted by Cobaltite, Gersdorffite, and inclusions within Pyrite

Arsenic and Cobaltite in concentrate deports to the 53 to 25 micron size fraction confirmed by Met studies and is the basis of the 2-Con project

Arsenic and cobalt-bearing mineral associations in:Main Dome Pit (upper ore zones - transition) are primarily hosted by CobaltiteMain Dome Pit (lower ore zones - primary) are primarily hosted by PyriteTelfer Deeps underground are primarily hosted by PyriteWest Dome Pit are primarily hosted by Pyrite

Plant testwork results show arsenic hosted by pyrite (primary mineralisation) can be suppressed in Sequential Float treatment mode


Grade Control Processes


Grade Control Processes

Grade Control process improvements in 2006

24/7 supervision of ore extraction since March 2006

RC Grade Control 100% of all samples since early 2006

Validation of interpretation ongoing with RC data testing boundaries and grades of marginal (Boundary Ore) domains

QAQC of data and coverage of ore mining 24 hours

Selective removal of HW waste from reefs (M10/12) under direct control of geologist

Ore Loss, dilution and bench height studies completed


Resource / Reserve Statement


MAIN DOME

TELFER OPEN PITTELFER OPEN PIT

TELFER DEEPSTELFER DEEPSTELFER DEEPS

Over 1 million samples from ~20,000 drillholes were utilised to produce the Open Pit resource estimate

Over 33,000 samples from 200 drillholes were utilised to produce the Telfer Deeps resource estimate

WEST DOME

MAIN DOME

TELFER OPEN PITTELFER OPEN PIT

TELFER DEEPSTELFER DEEPSTELFER DEEPS

Over 1 million samples from ~20,000 drillholes were utilised to produce the Open Pit resource estimate

Over 33,000 samples from 200 drillholes were utilised to produce the Telfer Deeps resource estimate

WEST DOME

59819.90.131.4444Resource (2005)

Cu (Kt)

Au (Moz)

Cu (%)Au (g/t)

Tonnes (Mt)

59819.90.131.4444Resource (2005)

Cu (Kt)

Au (Moz)

Cu (%)Au (g/t)

Tonnes (Mt)

3085.30.522.859Resource (2005)

Cu (Kt)

Au (Moz)

Cu (%)Au (g/t)

Tonnes (Mt)

3085.30.522.859Resource (2005)

Cu (Kt)

Au (Moz)

Cu (%)Au (g/t)

Tonnes (Mt)


MAIN DOME

TELFER OPEN PIT Proved and Probable ReserveTELFER OPEN PIT Proved and Probable Reserve

TELFER DEEPS

WEST DOME

TELFER DEEPS Probable ReserveTELFER DEEPS Probable Reserve

MAIN DOME

TELFER OPEN PIT Proved and Probable ReserveTELFER OPEN PIT Proved and Probable Reserve

TELFER DEEPS

WEST DOME

TELFER DEEPS Probable ReserveTELFER DEEPS Probable Reserve

46113.90.141.4320Open Pit Total

Cu (Kt)

Au (Moz)

Cu (%)Au (g/t)Tonnes (Mt)

46113.90.141.4320Open Pit Total

Cu (Kt)

Au (Moz)

Cu (%)Au (g/t)Tonnes (Mt)

2003.40.52.739Telfer Deeps

Cu (Kt)

Au (Moz)Cu (%)Au (g/t)

Tonnes (Mt)

2003.40.52.739Telfer Deeps

Cu (Kt)

Au (Moz)Cu (%)Au (g/t)

Tonnes (Mt)

(2005)

(2005)


QUESTIONS & ANSWERS

Telfer Gold Mine Fact Sheet Location: Great Sandy Desert, 480km ESE, Port Hedland

1900km North of Perth by road Geological Setting: Gold and copper mineralisation hosted within reef and

stockwork domains in Proterozoic sediments, weakly metamorphosed, structurally deformed by folding and faulting, and intruded by granites.

(As at 30 June 2005) Resource:

Open Pit Measured 150 Mt @ 1.3 g/t Au, 0.15% Cu Indicated 200 Mt @ 1.6g/t Au, 0.13% Cu Inferred 94 Mt @ 1.1 g/t Au, 0.12% Cu Underground Indicated 48 Mt @ 2.9 g/t Au, 0.54% Cu Inferred 11 Mt @ 2.4 g/t Au, 0.44% Cu

Proved Reserve: Open Pit - Main Dome 110 Mt @ 1.4 g/t Au, 0.18% Cu West Dome 37 Mt @ 1.0 g/t Au, 0.08% Cu

Probable Reserve: Open Pit - Main Dome 120 Mt @ 1.5 g/t Au, 0.15% Cu West Dome 49 Mt @ 1.1 g/t Au, 0.08% Cu Underground 39 Mt @ 2.7 g/t Au, 0.50% Cu

Total Production Gold Copper Average Production Gold Copper

18.4 Moz 640 kt 770,000 ounces pa 27,800 tonne pa

Mine Life: Open pit 23 years Underground 10 years

Capex Stage 1 & 2: A$1,472 million Pre Development Capex: A$170 million Total Throughput: 20-22Mtpa on softer ore

17Mtpa on hard ore including Telfer Deeps 4Mtpa

Process Facilities: - 1370 x 1880mm gyratory crusher (nominal P80 120mm) - Two parallel process trains - 2 x 15 MW (11m dia.) SAG mills - 2 x 13 MW (7.5m dia.) Ball Mills - Gravity gold concentration circuit - Copper Gold Flotation - Pyrite Flotation/Leach - Power

3 x 47MW LM 6000 gas turbines on site 450km gas pipeline, 138MW capacity

Open Pit Mining Method: - Conventional truck and hydraulic excavator operation, with excavators in backhoe configuration for selective mining in reef areas

- 12m benches for bulk mined mineralised areas - 4m lifts for selective mining - Mining Fleet

19 x 240 tonne haul trucks 1 x 630 tonne shovel 2 x 430 tonne shovel 1 x 230 tonne shovel 3 x D75S rotary drills

Pit Depth: - Main Dome 650m Started Production: November 2004 Underground Mining Method: Sub-level caving (SLC)

- between 900 1100m below surface - sub-level intervals of 25m

Shaft Dimensions: 700m west of Telfer Deeps SLC 7 m diameter x 1100m deep Possible Shaft Extension: to 1450m Workforce: Operating 1150 Dump Leach Material: 31Mt treated over LOM Ore Hardness (Bond Work Index): 13.7kWh/t (Range 7-16 kWh/t) Optimum Grind Size: 106m to 120 m Gold Recovery: 85% - 95% Copper Recovery: 75 86% Concentrate Production (Av): 130,000 170,000 dmt pa Concentrate Grade: 21 25% Cu

293_3x08x2006100444am

Documents

evaluationfrom telfer

telfer safety ltifr

town of port hedland

environment programs

martu agreements

environmental mgt

new waste transfer

dingo management plan