Developing and Implementing SDS at Placer Dome Australia Kings Park, Perth

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Developing and Implementing SDS at Placer Dome
AustraliaKings Park, Perth

• 14/07/2005
• Graeme Hird
• Geological Modelling Specialist

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Cautionary Statement

• Some of the statements contained in this
  presentation are forward-looking statements, such
  as estimates and statements that describe Placer
  Domes future plans, objectives or goals,
  including words to the effect that Placer Dome or
  management expects a stated condition or result
  to occur. Forward-looking statements may be
  identified by such terms as believes,
  anticipates, intends, expects, estimates,
  may, could, would, will, or plan. Such
  forward-looking statements are made pursuant to
  the safe harbour provisions of the U.S. Private
  Securities Litigation Reform Act of 1995. Since
  forward-looking statements are based on
  assumptions and address future events and
  conditions, by their very nature they involve
  inherent risks and uncertainties. Actual results
  relating to among other things, mineral reserves,
  mineral resources, results of exploration,
  reclamation and other post-closure costs, capital
  costs, mine production costs, and Placer Domes
  financial condition and prospects, could differ
  materially from those currently anticipated in
  such statements by reason of factors such as the
  productivity of Placer Domes mining properties,
  changes in general economic conditions and
  conditions in the financial markets, the
  speculative nature of mining exploration and
  development activities, changes to the interest
  rate on borrowings, changes in demand and prices
  for the minerals Placer Dome produces, changes in
  the world wide price of other commodities such as
  diesel fuel and electricity, changes in expected
  effective tax rates in jurisdiction where Placer
  Dome operates, the accuracy of our reserve and
  resource estimates and our estimates of future
  production and future cash and total costs of
  production,litigation, legislative, environmental
  and other judicial, regulatory, political and
  competitive developments in domestic and foreign
  areas in which Placer Dome operates, mineral
  rights ownership in countries where Placer Dome
  mineral deposits are located, including the
  effect of the Mineral and Petroleum Resources
  Development Act (South Africa), technological and
  operational difficulties encountered in
  connection with Placer Domes mining activities,
  labour relations matters, costs, the effects of
  hedging instruments to protect against
  fluctuations in gold and copper prices, and the
  risks of counterparty defaults, and changing
  foreign exchange rates. This list is not
  exhaustive of the factors that may affect any of
  Placer Domes forward-looking statements. These
  and other factors should be considered carefully
  and readers should not place undue reliance on
  Placer Domes forward-looking statements. Further
  information regarding these and other factors
  which may cause results to differ materially from
  those projected in forward-looking statements are
  included in the filings by Placer Dome with the
  U.S. Securities and Exchange Commission and
  Canadian provincial securities regulatory
  authorities. Placer Dome does not undertake to
  update any forward-looking statement that may be
  made from time to time by Placer Dome or on its
  behalf, except in accordance with applicable
  securities laws. Throughout this presentation,
  all amounts are in U.S. currency and based on
  U.S. GAAP.
• Cautionary Note to U.S. Investors concerning
  estimates of measured, indicated and inferred
  mineral resources. This presentation uses the
  terms "Measured", "Indicated" and "Inferred"
  Resources. Investors are advised that while such
  terms are recognized and required by Canadian
  regulations, the Securities and Exchange
  Commission does not recognize them. Investors
  are cautioned not to assume that all or any part
  of Measured or Indicated Resources will ever be
  converted into reserves.

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Global Operations
Kanowna Belle
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Where?

• The Kalgoorlie operation of Placer Dome was the
  chosen test bed for SDS for several reasons,
  amongst which were
• The varied provenance of the data used by the
  operation
• The variety of different mining software packages
  currently used by the operation
• The willingness of the professional personnel to
  adopt new systems.

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When?

• I first heard about the system in July, 2004
• I first started using the beta version in January
  2005

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Why?

• Need for systematic storage of 3D objects.
• A search of the KB filing system reveals 31,000
  Datamine objects, with no metadata and no way of
  searching other than by file or folder name. This
  number is a typical outcome of such searches.

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Why?

• Need for quick file format conversion without
  opening the object in its native program.
• The Kalgoorlie operations regularly use Vulcan,
  Surpac, Gocad, Micromine, Mine 24D and Datamine
  (or have used them in the past). In addition, we
  often need to examine data from other companies,
  some of which has been derived in programs we
  dont use.

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Why? .
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Why?

• Need for quick and consistent grid conversions
• Most objects are created without any reference to
  the grid system they reside in. At best, this is
  an inconvenience which costs the worker time.
• At worst, costly mistakes can be generated when
  objects are assumed to be in a grid system which
  later turns out to be incorrect (eg AMG vs MGA
  conversions could mean follow-up drill holes may
  be 200m from their intended target)

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Why?

• Need to comply with 43-101 due to US stock
  exchange regulations
• The arrival of 43-101 means executives are now
  personally responsible for ensuring all relevant
  records which may affect an audit of resources
  are kept up to date and accessible. Information
  on objects used to constrain resources must be
  kept for at least 7 years.
• Failure to do so is punishable by incarceration.

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Why?

• Centralised storage of data to minimise
  information loss when staff move on.
• The loss of staff often means losing the
  location/knowledge of objects because haphazard
  file storage is rife. Objects are often stored on
  PC hard drives or in obscure locations on servers
  (and sometimes intentionally hidden for
  security of the object.) In the worst possible
  case, staff could maliciously delete objects with
  little recourse.
• The loss of that knowledge means work may be
  duplicated year after year.

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How?

• Formation of a Steering Committee consisting of
  dedicated stakeholders (However, we still managed
  to get the job done, in spite of the existence of
  a committee!)
• A customer survey was circulated to both
  ascertain the users requirements of the system,
  and to help pre-sell the concept of SDS to
  those who would eventually be using the system.
• Fractal Technologies waved (waived?) their magic
  wand to produce the program
• The Brisbane office of Placer Dome acquired a
  server to run the system on.

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How? .

• The IT staff at the Kalgoorlie operation cleared
  the decks to enable the installation of the
  server.
• Testing commenced with dummy data, allowing us to
  iron out the worst of the bugs (surprisingly few
  for a new concept in data management). Several
  version updates were completed within about 4
  weeks, and there have since been several minor
  updates.
• We now transfer data onto the server routinely
  SDS is an embedded part of my workflow. I supply
  all my customers through SDS, and ask them to
  supply me with 3D objects via SDS.

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Some Unexpected Outcomes

• The speed with which the development took place
  has surprised many.
• Placer Domes Campbell mine did not even know we
  were developing this tool, and my use of the
  Vancouver server to transfer their Datamine files
  into Gocad came as a revelation to them.
• My demonstration of this tool has given them
  confidence in the way I will be carrying out work
  for them and how I will deliver the latest 3D
  objects around the world in a few minutes.

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Some Unexpected Outcomes

• A collaboration with Goldcorp on the 3D
  geological model for the Campbell/Red Lake
  deposit will be greatly aided by the transfer of
  data between the neighbouring mines via SDS.
• By allowing Goldcorp completely free, real-time
  access to our data, the project will be
  progressed very quickly. The latest version will
  always be available to both myself and the
  Goldcorp geological modeller. That ensures
  neither of us will duplicate the others work,
  and intellectual collaboration is truly possible.
  SDS obviates the need for grid conversion,
  meaning the model we produce will be a unified
  model.

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Conclusions

• The Spatial Data Server has been implemented
  smoothly in the Kalgoorlie Operation of Placer
  Dome.
• Acceptance has been gradual and on an as needed
  basis.
• More importantly, resistance to implementation
  has not been encountered. The people who need the
  system most are using it and encouraging others
  to use it (actually, demanding is more
  accurate).
• The use of SDS is encouraging new ways of sharing
  and using data, some of which were not envisaged
  when SDS was conceived. I expect this trend of
  innovation to continue.

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And lastly

• The creation of the Spatial Data Server means
  Ill never be a servant to the data again.