IGO Interactive Annual Report 2019

MINING During FY19, 35.3 million bank cubic metres was mined at Tropicana, comprising of 14.7Mt of ore and 75.9Mt of waste. The mining strategy at Tropicana uses a phased approach with multiple cut-backs and inpit dumping of waste to minimise waste haulage distances. PROCESSING The mill throughput was 8.2Mt, at an average grade of 2.2g/t for FY19. Construction and installation of the second 6-megawatt (MW) ball mill was completed in October 2018, with the project commissioned in December 2018, enabling the processing throughput rate to be increased by about 5%. Gold recovery was 89.4% for the year, with gold production at 518,172oz Au (100% basis). BOSTON SHAKER UNDERGROUND On 28 March 2019, the Tropicana Joint Venture announced the commitment to the development of the Boston Shaker Underground mine following the successful completion of the Feasibility Study (FS). The FS assessed an underground operation mining at a rate of approximately 1.1Mtpa at an estimated grade of 3.5g/t Au to produce approximately 100,000 ounces of gold per annum over a period of seven years, based on three years production from Ore Reserves and a further four years from Inferred Mineral Resources. Underground material will displace lower grade open pit material, resulting in an improved Tropicana gold production profile. The development of the Boston Shaker Underground will enable gold production to be maintained at between 440,000 to 500,000 ounces per annum (100%) over the five years up to and including FY23. The FS estimated a capital cost of A$105 million (including contingency) and all-in sustaining costs of A$95 per tonne of underground material. Macmahon Holdings is the current open pit mining contractor at Tropicana and has been appointed as the underground mining contractor. Underground development commenced in May 2019 and first gold production is expected during the September 2020 quarter. TROPICANA EXPLORATION During FY19, exploration concentrated near the mine on the Tropicana mining lease (M39/1096). The focus was on looking for resource extensions, specifically the underground potential at Boston Shaker, Havana and Havana South. Exploration drilling was conducted around the Tropicana mining and exploration leases at different prospects and targets. Drilling, totalling 33,111m, comprised: • Aircore drilling at Angel Eyes, West Charmander and Iceberg North. • Reverse Circulation (RC) drilling at Watchtower and drilling stratigraphic fences. • RC and diamond drilling at New Zebra, Madras, Seahorse, Voodoo Child and Wild Thing. Encouraging aircore gold anomalies were returned from Angel Eyes West (E39/952). When combined with 2017 aircore results from around the same area, a NNW-trending zone of gold anomalism is present over 1km of strike and the anomaly remains open-ended. A total of 16,098m of drilling was also completed at Boston Shaker. The drilling, on a nominal 50m x 25m spacing, was designed to increase the Mineral Resource confidence through the conversion of Inferred Mineral Resource to Indicated Mineral Resource. An updated Mineral Resource model for the Boston Shaker Feasibility Study was stated on 20 February 2019. AngloGold Ashanti Australia (AGAA), Independence Group, Macmahon Holdings and Carey Mining celebrated a milestone with eight young Aboriginal trainees at the Tropicana Operation in November 2018. In a formal ceremony at the Tropicana Operation site, the trainees were presented with certificates and traineeship offers after successfully completing the eight-week Get Into Mining training programme. Get Into Mining is a collaborative programme run by Aboriginal- owned mining and civil contracting company Carey Mining, with the support of mining contractor Macmahon Holdings, and Tropicana Joint Venture partners AGAA and IGO. Macmahon Holdings and Carey Mining are also both contractors at Tropicana. Get Into Mining comprises a blended delivery of training in the classroom, at a simulated work site and via practical activities at Tropicana. The programme is structured to enable a phased transition into the fly-in, fly-out working environment. All eight of the successful applicants completed the full programme, qualifying for a Certificate II in Surface Extraction Operations. They have since accepted traineeships across the mining and exploration departments at the Tropicana Joint Venture. CASE STUDY: INDIGENOUS GRADUATES GET INTO MINING Get Into Mining graduates, Tropicana Operation Site IGO ANNUAL REPORT 2019 — 25