Abstract Hematite, as a typical iron oxide slime in sulphide ore slurries, was artificially added into the leaching systems of pure gold and a sulphide ore respectively, in an attempt to investigate the effect of iron oxide slimes on the ammoniacal thiosulphate leaching of gold. The presence of hematite significantly reduced the dissolution of gold and this detrimental effect became more pronounced with increasing hematite concentration. Hematite formed coatings on gold surfaces, which could prevent leach solution from diffusing to the gold surfaces and hence, inhibit gold dissolution. Hematite catalysed the oxidative decomposition of thiosulphate to polythionates with oxygen present. XPS studies indicated a thin layer of iron oxide coating as well as the deposition of some copper and sulphur species on gold surfaces. SEM images revealed a lesser extent of corrosion for gold after leaching in the presence of hematite. The gold extraction from the sulphide ore was reduced with the addition of hematite and this effect became more noticeable with an addition of hematite at a higher concentration. A natural guar type surfactant (Gempolym M47) reduced the detrimental effect of hematite on gold extraction likely due to the prevention of hematite coating on gold and mineral particles and the dispersion of the mineral slurry. Gempolym M47 stabilised thiosulphate by weakening the interaction between cupric ions and thiosulphate and by minimising the catalytic effect of hematite on thiosulphate decomposition.