Wrap Text
Sibanye mineral resources and mineral reserves update for the gold and platinum divisions
Sibanye Gold Limited
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN - ZAE000173951
Issuer code: SGL
("Sibanye Gold", "Sibanye" or "the Group")
SIBANYE MINERAL RESOURCES AND MINERAL RESERVES UPDATE FOR THE GOLD AND PLATINUM DIVISIONS
Westonaria, 3 March 2017: Sibanye Gold Limited (JSE: SGL & NYSE: SBGL) is pleased to report updated
Group Mineral Resources and Mineral Reserves, declared as at 31 December 2016, which following the
acquisitions of Aquarius Platinum Limited and the Rustenburg Operations in 2016 includes maiden Platinum
Group Metals (4E PGM) Mineral Reserves and Resources.
Salient points:
- Total Gold Mineral Reserves of 28.7Moz declared represent a reduction of 2.3Moz, which after
accounting for depletion of 1.6Moz due to mining activities in 2016, equates to a 2% decrease
year on year.
- The cessation of underground mining at Cooke 4, resulted in the exclusion of 2.1Moz Gold Mineral
Resources and 0.5Moz Gold Mineral Reserves
- Uranium Mineral Reserves decreased negligibly to 113.2Mlb, with the exclusion of 2.9Mlb from
the Cooke Operations offset by additional Mineral Reserves from the Beisa Project being
declared.
- Total Gold Mineral Resources increased by 3% to 102.0Moz
- Maiden 4E PGM Mineral Resources of 126.5Moz and Reserves of 23. 2Moz declared, position Sibanye
in the top 5 PGM companies globally, based on these measures.
- The 12.5Moz decrease in 4E PGM Mineral Reserves year-on year, is primarily due to:
- Mining Depletion (1.7Moz),
- the sale of the Everest mine during the reporting period (1.1Moz),
- duplication of reported reserves of 2.4Moz declared by Anglo American Platinum at the
Rustenburg operations in relation to the Kroondal PSA area and
- the application of more conservative commodity price assumptions used by Sibanye relative
to those previously used by Anglo American Platinum and Aquarius Platinum ((resulting in a
reduction of 6.2Moz at Rustenburg and 0.9Moz at Kroondal's Marikana operation). In line with
Sibanye reporting standards, assumed commodity prices assumptions for estimating Mineral
Resource and Reserves are based on three year average, trailing and spot commodity prices.
Summarise Group Mineral Resources and Reserve Estimate at 31 December 2016
Mineral Resources(1) Mineral Reserves(1)
31 Dec 31 Dec
- Gold 31 Dec 2016 2015 Gold 31 Dec 2016 2015
Tonnes Grade Gold Gold Tonnes Grade Gold Gold
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Grand Total Grand Total
Underground and Underground
Surface 1104.5 2.9 102.035 98.790 and Surface 838.2 1.1 28.694 30.988
Mineral Resources(1) Mineral Reserves(1)
31 Dec 31 Dec
31 Dec 2016 2015 31 Dec 2016 2015
Uranium Uranium
Tonnes Grade U3O8 U3O8 Tonnes Grade U3O8 U3O8
(Mt) (kg/t) (Mlb) (Mlb) (Mt) (kg/t) (Mlb) (Mlb)
Grand Total Grand Total
(Underground (Underground
and Surface) 703.5 0.103 159.507 229.852 and Surface 687.5 0.075 113.226 113.814
Mineral Resources Mineral Reserves
31-Dec-
PGMs (4E) 31-Dec-2016 31-Dec- PGM (4)E 31-Dec-2016
2015 2015
Tonnes Grade 4E 4E Tonnes Grade 4E 4E
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Grand Total Grand Total
Underground 1064.8 3.7 126.478 141.487 Underground 261.6 2.7 23.186 35.703
and Surface and Surface
Mineral Reserves are reported in accordance with the SAMREC Code, with three year average, trailing,
commodity prices applied in accordance with SEC requirements. The PGM Reserves reported at December
2016,(including Rustenburg and Aquarius but excluding Mimosa), have been evaluated on this price deck.
An average exchange rate of R12.70/US$ and the following commodity prices were used:
Precious metals 2017 3 year average
US$/oz R/oz R/kg (US$/oz)
Gold 1,200 15,200 490,000 1,229
Platinum 1,222 15,500 499,000 1,209
Palladium 717 9,100 293,000 710
Rhodium 787 10,000 322,000 985
Base minerals US$/lb R/lb R/kg (US$/lb)
Uranium (long-term contract) 45 572 1,260 47
Group Consolidated Mineral Resource and Mineral Reserve Statement
Gold Division: Gold Resource and Reserve Estimate as at 31 December 2016
Mineral Resources(1) Mineral Reserves(1)
Gold 31 Dec Gold 31 Dec
31 Dec 2016 2015 31 Dec 2016 2015
Tonnes Grade Gold Gold Tonnes Grade Gold Gold
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Operations Operations
Beatrix(2) Beatrix(2)
Measured 34.3 5.3 5.786 4.857 Proved AI 15.8 4.0 2.048 2.389
Indicated AI 35.0 5.5 6.150 3.677 Probable AI 20.2 2.6 1.675 1.875
Inferred AI 0.0 3.3 0.004 0.004
Total AI 69.4 5.4 11.940 8.538 Total AI 36.0 3.2 3.723 4.264
Indicated BI(3) 6.7 3.7 0.789 0.991 Probable BI(3)
Beatrix - Total Beatrix - Total
Underground 76.1 5.2 12.729 9.530 Underground 36.0 3.2 3.723 4.264
Cooke Cooke
Measured 11.6 8.3 3.113 1.566 Proved AI 4.3 5.3 0.728 1.014
Indicated AI 15.8 8.1 4.091 7.969 Probable AI 0.6 4.8 0.097 0.457
Inferred AI 6.0 13.6 2.635 2.326
Total AI 33.5 9.1 9.839 11.862 Total AI 4.9 5.2 0.826 1.471
Inferred BI(4) 40.7 3.1 3.998 3.998
Cooke - Total Cooke - Total
Underground 74.2 5.8 13.837 15.860 Underground 4.9 5.2 0.826 1.471
Driefontein Driefontein
Measured AI 20.7 11.6 7.741 6.503 Proved AI 20.7 6.6 4.420 4.133
Indicated AI 5.2 7.2 1.207 3.053 Probable AI 5.8 4.0 0.737 1.846
Inferred AI 0.4 13.8 0.181 0.314
Total AI 26.3 10.8 9.129 9.870 Total AI 26.5 6.1 5.157 5.980
Measured BI(5) 8.5 8.0 2.180
Indicated BI(5) 22.0 9.0 6.376 9.821 Probable BI(5) 8.8 6.0 1.694 2.122
Total BI 30.4 8.7 8.556 9.821 Total BI 8.8 6.0 1.694 2.122
Driefontein-
Total Driefontein-Total
Underground 56.7 9.7 17.684 19.691 Underground 35.3 6.0 6.851 8.102
Kloof Kloof
Measured 14.4 17.1 7.928 6.196 Proved AI 18.4 7.9 4.700 4.857
Indicated AI 3.2 11.8 1.231 0.468 Probable AI 6.2 5.9 1.184 1.024
Total AI 17.6 16.1 9.159 6.664 Total AI 24.6 7.4 5.884 5.881
Indicated BI 44.9 13.4 19.371 11.246 Probable BI 2.5 7.2 0.566 0.502
Inferred BI 7.4 16.2 3.831 10.112
Total BI 52.2 13.8 23.202 21.359 Total BI 2.5 7.2 0.566 0.502
Kloof - Total Kloof - Total
Underground 69.9 14.4 32.361 28.023 Underground 27.1 7.4 6.450 6.383
Operations -
Total Operations - Total
Underground 276.8 8.6 76.611 73.103 Underground 103.2 5.4 17.849 20.219
Surface rock
dumps (SRD) Surface rock
and tailings dumps (SRD) and
storage tailings storage
facilities (TSF) facilities (TSFs)
Beatrix
(Indicated) 4.5 0.4 0.052 0.062 Beatrix (Probable) 4.5 0.4 0.052 0.062
Randfontein
Surf ace Randfontein Surf ace
(Measured) 4.5 0.3 0.047 0.052 (Proved) 4.5 0.3 0.047 0.052
Driefontein Driefontein
(Indicated) 4.0 0.6 0.076 0.094 (Probable) 4.0 0.6 0.076 0.094
Kloof (Indicated) 11.9 0.5 0.200 0.163 Kloof (Probable) 11.9 0.5 0.200 0.163
Operations - Operations - Total
Total Surface 24.8 0.5 0.375 0.372 Surface 24.8 0.5 0.375 0.372
Total operations
(Incl. SRD and Total operations
TSF - excl. (Incl. SRD and TSF
projects) - excl. projects)
Beatrix 80.6 4.9 12.781 9.592 Beatrix 40.5 2.9 3.775 4.326
Cooke 78.6 5.5 13.883 15.911 Cooke 9.4 2.9 0.872 1.523
Driefontein 60.7 9.1 17.760 19.786 Driefontein 39.2 5.5 6.926 8.196
Kloof 81.8 12.4 32.561 28.186 Kloof 39.0 5.3 6.650 6.546
Operations
Total 301.7 7.9 76.985 73.475 Operations Total 128.1 4.4 18.224 20.591
Projects Projects
Beisa North Beisa North
Inferred 14.8 3.4 1.619 1.619
Beisa North
Total 14.8 3.4 1.619 1.619 Beisa North Total
Bloemhoek Bloemhoek
Indicated 27.4 4.7 4.163 4.163 Probable
Inferred 0.9 4.9 0.135 0.135
Bloemhoek
Total 28.3 4.7 4.297 4.297 Bloemhoek Total
Burnstone Burnstone
Indicated 25.4 5.3 4.350 4.350 Probable 17.5 3.8 2.137 1.799
Inferred 28.7 4.9 4.540 4.540
Burnstone Total 54.1 5.1 8.890 8.890 Burnstone Total 17.5 3.8 2.137 1.799
De Bron De Bron
Merriespruit Merriespruit
Indicated 23.0 4.5 3.307 3.307 Probable 15.4 4.3 2.112 2.112
Inferred 5.3 4.2 0.715 0.715
De Bron
Merriespruit De Bron
Total 28.3 4.4 4.022 4.022 Merriespruit Total 15.4 4.3 2.112 2.112
Projects - Total Projects - Total
Underground 125.5 4.7 18.828 18.828 Underground 32.9 4.0 4.248 3.911
WRTRP WRTRP
Measured 625.0 0.3 5.697 5.962 Proved
Indicated 52.3 0.3 0.524 0.524 Probable 677.3 0.3 6.222 6.486
Projects - Total Projects - Total
Surface 677.3 0.3 6.222 6.486 Surface 677.3 0.3 6.222 6.486
Projects Total 802.8 1.0 25.050 25.314 Projects Total 710.2 0.5 10.470 10.397
Grand Total Grand Total
Underground Underground and
and Surface 1104.5 2.9 102.035 98.790 Surface 838.2 1.1 28.694 30.988
Mineral Resources are inclusive of Mineral Reserves
All tonnes (t) are expressed as metric units
Cut-off grades have been calculated in accordance with SEC Guidelines for mineral pricing and approximate the historic three-year average commodity prices
Mineral Resources were declared at a premium of 10% over the Mineral Reserve metal price
Gold Mineral Resources were determined at R540,000/kg and the Gold Mineral Reserves at R490,000/kg
1 Managed, unless otherwise stated
2 Beatrix Indicated Mineral Resources AI and Probable Mineral Reserves includes Beisa Central
3 Beatrix Indicated Mineral Resources BI refers to material below 26 Level (1,341mbs)
4 Cooke Inferred Mineral Resources BI refers to material within Cooke 4 Shaft Prospecting Right (Zuurbekom)
5 Driefontein Indicated and Inferred Mineral Resources and Probable Mineral Reserves BI refers to material below 50 Level (3,300mbs)
6 Kloof Indicated and Inferred Mineral Resources and Probable Mineral Reserves BI refers to material below 45 Level (3,347mbs)
* SOFS Projects
Gold Division: Uranium Resource and Reserve Estimate as at 31 December 2016
Mineral Resources(1) Mineral Reserves(1)
31 Dec 31 Dec
Uranium 31 Dec 2016 2015 Uranium 31 Dec 2016 2015
Tonnes Grade U()3O(8) U()3O(8) Tonnes Grade U()3O(8) U()3O(8)
(Mt) (kg/t) (Mlb) (Mlb) (Mt) (kg/t) (Mlb) (Mlb)
Operations Operations
Beatrix(2) Beatrix
Measured AI 3.6 1.086 8.548 8.548 Proved AI
Indicated AI 7.8 1.069 18.330 18.330 Probable AI 10.2 0.711 16.060 11.654
Inferred AI 0.0 1.101 0.090 0.090
Beatrix - Total Beatrix - Total
Underground 11.4 1.074 26.968 26.968 Underground 10.2 0.711 16.060 11.654
Cooke Cooke
Measured AI 4.873 Proved AI 2.056
Indicated AI 11.546 Probable AI 1.017
Inferred AI(3) 8.020
Total AI 24.439 Total AI 3.073
Inferred BI 43.984
Cooke - Total Cooke - Total
Underground 68.423 Underground 3.073
Operations -
Operations - Total Total
Underground 11.4 1.074 26.968 95.391 Underground 10.2 0.711 16.060 14.727
Projects Projects
Beisa North Beisa North
Inferred 14.8 1.084 35.373 35.373
Beisa North Total 14.8 1.084 35.373 35.373 Beisa North Total
Projects - Total Projects - Total
Underground 14.8 1.084 35.373 35.373 Underground
WRTRP WRTRP
Measured 625.0 0.063 87.230 89.151 Proved
Indicated 52.3 0.086 9.936 9.936 Probable 677.3 0.065 97.166 99.088
Projects - Total Projects - Total
Surface 677.3 0.065 97.166 99.088 Surface 677.3 0.065 97.166 99.088
Projects Total 692.1 0.087 132.539 134.461 Projects Total 677.3 0.065 97.166 99.088
Grand Total Grand Total
(Underground (Underground
and Surface) 703.5 0.103 159.507 229.852 and Surface 687.5 0.075 113.226 113.814
*Mineral Resources are inclusive of Mineral Reserves
1 Managed, unless otherwise stated
2 Beatrix includes uranium Mineral Resources and Mineral Reserves from the Beisa Central Project
3 Cooke Inferred Mineral Resources BI refers to material within the Cooke 4 Shaft Prospecting Right (Zuurbekom)
Key aspects that impacted on the 31 December 2016 Statement of Gold and Uranium Mineral Reserves
include:
- Following the cessation of underground mining at Cooke 4, 0.5Moz was excluded from Gold Mineral
Reserves.
- A focused exploration program on "secondary reefs" resulted in additional Mineral Reserves of
0.6Moz at Kloof (Middelvlei Reef and Kloof Reef at Main shaft), Driefontein (Middelvlei Reef
at 8 Shaft), and the Kimberley Reef at the Cooke Operations.
- The continuing review and investigation of previously unmined areas with economic potential
('white areas') resulted in a 0.9Moz increase in Gold Reserves during 2016. This was derived
primarily at Beatrix West, Driefontein 8 Shaft and Kloof Main Shaft.
- Ongoing exploration at the western extension at Driefontein 5 Shaft, delineated a lower grade,
overbank geological facies. This information underpinned an updated geological model, and this
geological anomaly has resulted in a decrease in Mineral Reserves of 0.6Moz. Drilling on the
opposite site of the overbank provides assurance that the extent of the overbank facies is
constrained.
- Minor decreases in grade as a result of additional geological information at Beatrix South and
the exclusion of certain high grade pillars at Kloof Main Shaft resulted in reserve decreases
of 0.4Moz and 0.3Moz at those operations respectively.
- Uranium Mineral Reserves decreased negligibly to 113.2Mlb, with the exclusion of 2.9Mlb from
the Cooke Operations alleviated by additional Reserves from the Beisa Project.
Group Consolidated Mineral Resource and Mineral Reserve Statement
Platinum Division: 4E PGM Resource and Reserve Estimate as at 31 December 2016
Mineral Resources Mineral Reserves
31-Dec- 31-Dec-
Category - 4E PGM 31-Dec-2016m 2015 Category - 4E PGM 31-Dec-2016 2015
Tonnes Grade 4E PGM 4E PGM Tonnes Grade 4E PGM 4E PGM
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
South African Operations South African Operations
Kroondal (50% attributable)(1) Kroondal (50% attributable)(1)
Measured 44.5 3.5 5.039 8.190 Proved(4) 21.0 2.7 1.802 4.030
Indicated 14.2 3.7 1.688 2.319 Probable 5.8 2.6 0.489 0.951
Inferred 6.0 3.2 0.629 0.903
Kroondal - Total Kroondal - Total
64.8 3.5 7.356 11.412 26.8 2.7 2.291 4.981
Underground Underground
Rustenburg (100% Rustenburg (100%
attributable) attributable)
Measured 375.9 4.9 59.745 63.017 Proved 123.1 3.8 15.165 21.278
Indicated 125.6 5.3 21.525 22.257 Probable 6.7 4.2 0.901 4.204
Inferred 15.2 5.6 2.717 2.760
Rustenburg - Total Rustenburg - Total
516.6 5.1 83.987 88.034 129.8 3.8 16.066 25.482
Underground Underground
South African Operations - South African Operations -
581.4 4.9 91.343 99.447 156.6 3.6 18.357 30.463
Total Underground Total Underground
Tailings Storage Facilities Tailings Storage Facilities
(TSF) (TSF)
Rustenburg (Measured) 90.4 1.1 3.140 3.280 Rustenburg (Proved )
Rustenburg (Indicated) Rustenburg (Probable) 90.4 1.1 3.140 3.280
South African Operations - South African Operations -
Total Surface 90.4 1.1 3.140 3.280 Total Surface 90.4 1.1 3.140 3.280
Total operations (Incl. TSF - Total operations (Incl. TSF -
Excl. Projects) Excl. Projects)
Kroondal 64.8 3.5 7.356 11.412 Kroondal 26.8 2.7 2.291 4.981
Rustenburg 607.0 4.5 87.127 91.314 Rustenburg 220.2 2.7 19.206 28.762
South African Operations
Total 671.7 4.4 94.483 102.727 South African Operations
Total 246.9 2.7 21.497 33.743
Non South African Non South African
Operations Operations
Mimosa (50% Attributable)(3) Mimosa (50% Attributable)(3)
Measured 31.9 3.7 3.776 4.120 Proved 9.2 3.5 1.053 1.310
Indicated 15.4 3.6 1.776 1.790 Probable 5.4 3.7 0.636 0.650
Inferred 4.4 3.6 0.512 0.520
Inferred (Oxides) 9.0 3.4 0.981 0.980
Mimosa - Total Underground 60.7 3.6 7.045 7.410 Mimosa - Total Underground 14.6 3.6 1.689 1.960
Non South African Non South African
Operations - Total 60.7 3.6 7.045 7.410 Operations - Total 14.6 3.6 1.689 1.960
Underground Underground
Projects Projects
Millenium
Indicated 1.430
Inferred 17.5 3.1 1.720 0.290
Millenium Total 17.5 3.1 1.720 1.720
Vygenhoek
Measured 1.4 5.1 0.230 0.230
Vygenhoek Total 1.4 5.1 0.230 0.230
Sheba's Ridge (3E PGM)
Measured 31.2 0.9 0.880 0.880
Indicated 37.9 0.9 1.040 1.040
Inferred 167.0 1.0 5.180 5.180
Sheba's Ridge Total 236.1 0.9 7.100 7.100
Zondernaam
Inferred 77.4 6.4 15.900 15.900
Zondernaam Total 77.4 6.4 15.900 15.900
Hoedspruit
Indicated 2.450
Inferred 0.530
Hoedspruit Total 2.980
Hoogland
Indicated 2.810
Inferred 0.610
Hoogland Total 3.420
Projects - Total Underground 332.4 2.3 24.950 31.350 Projects - Total Underground
Grand Total Grand Total
Underground & Surface 1064.8 3.7 126.478 141.487 Underground & Surface 261.6 2.7 23.186 35.703
Mineral Resources are inclusive of Mineral Reserves
All tonnes (t) are expressed as metric units
Mineral Resources were declared at a premium of 10% over the Mineral Reserve metal price
1. Kroondal year on year change includes the sale of Everest Mine during the reporting period and the removal of
sub-economic Reserves from the Marikana section. Kroondal is mined under a Pool and Share agreement (PSA) with Anglo American
Platinum (AAP) and mineral resources and reserves are reported as 50% attributable.
2. .Mimosa's change YoY is associated with depletions. Mimosa (Zimbabwe) is a non RSA operation managed as a standalone company
in Zimbabwe, 50% attributable to Sibanye. The Reserves reported are June 2016 declared by Mimosa less depletions to December 2016.
3. Kroondal is mined under a Pool and Share agreement (PSA) with AAP. Kroondal retains exclusive mining rights for the Kroondal Extension
and 1.130Moz 4E PGM (50% attributable) is included in the Sibanye statement ending 31 December 2016.
Key aspects that impacted on the 31 December 2016 Statement of the 4E PGM Mineral Resources and Reserves
include:
- At the Kroondal operations total 4E PGM Mineral Reserves decreased by 2.7Moz. This reduction
can be primarily attributed to:
- 0.4Moz due to mining depletion between June 2015 and December 2016. To align with
Sibanye reporting processes, this reserve declaration considers 18 months of mining
depletion.
- A 0.9Moz reduction in Mineral Reserves at Marikana. The Marikana operation was placed
on care and maintenance by Aquarius Platinum during 2015 and did not contribute to the
2015 Life of mine plans. These Reserves have been reassessed and are not considered
to be economically viable under Sibanye's economic assumptions.
- 1.1Moz associated with the sale of Everest South during the reporting period.
- The balance of the decrease was made up of technical and modifying factors that
accounted for approximately 0.3Moz
At the Rustenburg Operations total 4E PGM Mineral Reserves decreased by 9.4Moz year-on-year. This
reduction can be attributed to:
- 1.0Moz depletion due to mining activities during 2016.
- Anglo American Platinum declared the ounces contained in Mineral Reserves at the Kroondal
PSA 'Extension' area, amounting to 2.4Moz's, as 100% attributable to the Rustenburg
operations in 2015. Aquarius Platinum declared 50% attributable reserves over the same area
in 2015. Sibanye has reported these reserves as 50% attributable to the Kroondal operations
from where these reserves will be extracted, thus reducing the Rustenburg declared reserves
by 2.4Moz's.
- The application of Sibanye's more conservative economic assumptions at Rustenburg resulted
in several areas at Siphumulele, Thembelani and Khusuleka shafts, containing approximately
6.2Moz, being considered either uneconomic, or unable to generate sufficient returns from
the capital expenditure required to access these reserves, to meet internal project hurdle
rates.
- A sensitivity analysis has indicated that at sustained metal price increases of between 5%
and 10%, the majority of these resources could be converted back to mineral reserves.
- The 4E PGM Mineral Reserves at Mimosa, a non-managed independent company in which Sibanye
holds a 50% stake, are reported as at June 2016, less depletions to December 2016. A
revision in the LoM Plan i will be updated by June 2017.
- Mineral Resources at the Hoogland and Hoedspruit projects (6.4Moz's) have not been declared
in 2016 as these projects have been discontinued by Sibanye.
Abridged review per operation
BEATRIX
Beatrix is a low-cost, high productivity asset with a life of mine (LoM) extending to 2035. The Mineral
Resources include 12.8Moz gold and 27.0Mlb uranium. Gold Mineral Reserves decreased by 5% net of production
depletion of 0.3Moz to 3.8Moz in 2016, primarily as a result of lower grades affecting the tail end of the
production profile at Beatrix South and Beatrix West sections.
The underground Reserve grade decreased from 3.5g/t in 2015 to 3.2g/t in 2016, primarily due to the
inclusion of additional ground from the lower gold grade Beisa project at Beatrix West (a uranium rich
project which is currently in Feasibility Study stage). The additional Uranium Reserves from Beisa resulted
in an increase of 4.4Mlb
The underground production is supplemented by processing historic rock dumps, with an estimated gold
Mineral Reserve of 0.052Moz at a grade of 0.4g/t.
DRIEFONTEIN
Driefontein is a high-yield, long-term operation with gold Mineral Resources of 17.8Moz, gold Mineral
Reserves of 6.9Moz and a LoM that extends to 2036. The Mineral Reserves are based on current operations,
as well as the 5 Shaft Depth Extension project which commenced in 2016.
Gold Mineral Reserves decreased by 15% net of production depletion of 0.6Moz year on year. This reduction
was primarily due to the intersection of a large geological anomaly ("overbank area") at 5 Shaft and the
5 Shaft Depth Extension Project, resulting in a reduction of 0.574Moz and reducing the life of mine by
7 years. As a result of this geological anomaly, the Reserve Grade at 5 Shaft is expected to decrease by
0.5g/t to 6.5g/t, and by 1.3g/t to 6.0g/t at the 5 Shaft Depth Extension project. Despite the decrease in
grade, the Depth Extension project is still above the economic hurdle rate of the Group and will continue
as planned. Further exploration is being conducted in the area, but drilling on the opposite site of the
overbank provides assurance that the extent of the overbank is constrained and that the extent of this
lower grade zone is well delineated and should not have any further impact on the Reserves.
Underground production is supplemented by processing of an estimated 0.1Moz of gold Mineral Reserves
contained in historic rock dumps. Further exploration of historic rock dumps extended the life of the
surface operation by another year.
KLOOF
Kloof is a high-yield long-term operation with a LoM extending to 2034 and gold Mineral Resources of
32.6Moz and gold Mineral Reserves of 6.7Moz. Gold Mineral Reserves increased by 2% net of production
depletion year on year, with the underground Reserve grade largely unchanged from 7.5g/t to 7.4g/t. The
Mineral Reserves is based on the current operations, as well as the 4 Shaft Depth Extension project which
commenced in 2015. The increase in Mineral Reserves is largely due to additional Secondary Reefs (Middelvlei
Reef and Kloof Reef) of 0.2Moz, as well as white areas (0.3Moz).
Underground production is supplemented by processing historic rock dumps with an estimated gold Mineral
Reserve of 0.2Moz, an increase of 22% from last year.
COOKE
Cooke is a short- to medium-term asset, with gold Mineral Resources of approximately 13.9Moz and gold
Mineral Reserves of 0.9Moz. With the cessation of underground mining at the Cooke 4 mine, and closure of
the uranium processing circuit at the Ezulwini plant, the gold and uranium Mineral Reserve decreased by
0.5Moz and 2.9Mlbs respectively. With the exclusion of Cooke 4, as well as the inclusion of the expected
impact of the Grout Project (which will enable mining of high grade crush pillars at Cooke 1 and 3), the
average reserve grade at the Cooke Operations increased from 4.7g/t to 5.2g/t. Underground production is
supplemented by processing of historic tailings facilities at Cooke Plant which will be completed by end
2017.
KROONDAL
Kroondal is a low cost asset, with the current LoM estimated to extend to 2032. The operation is mined
under a pool and share agreement with Anglo Platinum in which the PSA, of which Sibanye has a 50%
stake, has exclusive mining rights to the area. Sibanye, through its Kroondal operations, has the
infrastructure and processing facilities to mine and process the ore from this PSA area. The operation
has 4E PGM Mineral Resources of approximately 7.356Moz (attributable) and 4E PGM Mineral Reserves of
2.291Moz (attributable). Marikana is a lease area situated east of the Kroondal area and forms a
natural extension to the existing mine plan for Kroondal. Marikana is however structurally complex
with the propensity for higher geological losses and as such, affects the extraction rates of this
orebody. The mine plan is sub economic considering the 4E PGM price deck applied to the 2016 valuation
and as such, is removed from reserves. AQPSA, the former owners of Marikana, had already placed this
operation on care and maintenance in 2015 owing to the high costs of extracting the ore from this
section.
RUSTENBURG OPERATIONS
The Rustenburg Operations are long term assets, with the current estimated LoM extending to 2046. The
operations contain 4E PGM Mineral Resources of approximately 87.127Moz and 4E PGM Mineral Reserves of
19.206Moz. The decline in the 4E PGM Mineral Reserves year-on-year, was primarily due to the use of
commodity price assumptions in line with Sibanye reporting standards and SEC guidelines. These prices
are more conservative and as such resulted in several areas at Siphumulele and Thembelani conventional
shafts being considered uneconomical.
MIMOSA
Mimosa is a long-term asset, with the current LoM estimated to extend to 2033. The operation has 4E
PGM Mineral Resources of approximately 7.0Moz (attributable to Sibanye) and 4E PGM Mineral Reserves
1.7Moz (attributable to Sibanye). The 4E PGM Mineral Reserves have decreased by 0.3Moz year on year,
mainly due to depletion.
Abridged review per project
BURNSTONE
The development of the Burnstone Project commenced in 2015, with the first gold production expected by
2018. With Mineral Reserves of 2.1Moz, the project envisages steady state production of approximately
115,000oz per annum from 2021, with a LoM extending up to 2042.
WEST RAND TAILINGS RETREATMENT PROJECT
The West Rand Tailings Retreatment Project (WRTRP) will process the historical tailings storage
facilities of the Driefontein, Kloof and Cooke operations for gold and uranium. The project has an
estimated gold and uranium Mineral Reserve of 6.2Moz and 97.2Mlb respectively.
The project, which will utilize current metallurgical capacity as well as a Central Processing Plant
and Central Tailings Storage Facility, will have an annual steady state production of ~0.1Moz gold and
~0.9Mlbs uranium. The project life will extend to beyond 2068, and will have the additional benefit
of reducing the environmental liability posed by historical tailings.
DE BRON MERRIESPRUIT
Gold Mineral Reserves of 2.1Moz for the De Bron Merriespruit Project are based on the original
feasibility study previously conducted by Royal HaskoningDHV in 2013. However, the production design
and schedule was modified during 2015 in line with enhanced geological and estimation models, with the
extraction plan optimized in line with new cut-off grades.
Corporate governance
Sibanye reports its Mineral Resources and Mineral Reserves in accordance with the SAMREC Code, the
updated Section 12 of the JSE Listings Requirements and the SEC Industry Guide 7, which is aligned
with the guiding principles of SOX. Guided by a commitment to best practice corporate governance, the
statement has been reviewed by each Division's Technical Services. For the Gold Division, the statement
for the operations was independently reviewed by Amec Foster Wheeler (Mineral Resources) and by Mineral
Corporation Consultancy Proprietary Ltd (Mineral Reserves), and has been found to be compliant with
the relevant codes with no material shortcomings. The Platinum Division for 2016 did not have an
external audit due to the acquisition approval process occurring during the year.
The Mineral Resources and Mineral Reserves are estimates at a particular date, and are affected by
fluctuations in mineral prices, the Rand-US dollar currency exchange rate, operating costs, mining
permits, changes in legislation and operating factors. Although all permits may not be finalised and
in place at the time of reporting, there is no reason to expect that these will not be granted. However,
the length of the approval process for such permits may have an impact on the schedules stated.
All statement figures are managed by Sibanye with the exception of those for Mimosa. Mineral Resources
are reported inclusive of Mineral Reserves, and production volumes are reported in metric tonnes (t).
Gold and uranium estimates are reported separately from each other, therefore no gold equivalents are
stated to avoid potential anomalies as a result of year-on-year metal price differentials. The Platinum
Division statement consists of platinum reported as 4E PGM, which consists of platinum, palladium,
rhodium and gold. Individual proportions of the 4E PGM are determined via prill split proportions as
determined from the assays.
All financial models used to determine Mineral Reserves are based on current tax regulations at 31
December 2016.
For the Gold Division, the lead competent person designated in terms of the SAMREC Code, with
responsibility for the consolidation and reporting of Sibanye's Mineral Resources and Mineral Reserves,
and for overall regulatory compliance of these figures, is Gerhard Janse van Vuuren, who gave his
consent for the disclosure of the 2016 Mineral Resources and Mineral Reserves Statement. Gerhard [GDE
(Mining Eng), MBA, MSCC and B.Tech (MRM)] is registered with SAIMM (706705) and has 29 years' experience
relative to the type and style of mineral deposit under consideration.
For the Platinum Division, the lead competent person designated in terms of the SAMREC Code, who takes
responsibility for the consolidation and reporting of the Division's Mineral Resources and Mineral
Reserves, and for the overall regulatory compliance of these figures, is Andrew Brown, who gave his
consent for the disclosure of the 2016 Mineral Resources and Mineral Reserves Statement. Andrew [M.Sc
Mining Eng] is registered with SAIMM (705060) and has 32 years' experience relative to the type and
style of mineral deposit under consideration.
The respective business unit-based Mineral Resource managers, relevant project managers and the
respective Mineral Resource management discipline heads, have been designated as competent persons, in
terms of the SAMREC Code. These persons take responsibility for the reporting of Mineral Resources and
Mineral Reserves for their respective area(s). Additional information regarding these personnel, as
well as the teams involved with the compilation of the Mineral Resource and Mineral Reserve declaration,
is incorporated in the Mineral Resources and Mineral Reserves Supplement that has been published in
conjunction with this Sibanye Integrated Annual Report 2016.
Contact
James Wellsted
Head of Corporate Affairs
Sibanye Gold Limited
+27 83 453 4014
james.wellsted@sibanyegold.co.za
Sponsor
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
FORWARD LOOKING STATEMENTS
Certain statements in this document constitute "forward-looking statements" within the meaning of
Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of
1934.
These forward-looking statements, including, among others, those relating to Sibanye's future
business prospects, revenues and income, wherever they may occur in this document and the exhibits to
this document, are necessarily estimates reflecting the best judgment of the senior management and
directors of Sibanye, and involve a number of known and unknown risks and uncertainties that could
cause actual results, performance or achievements of the Group to differ materially from those
suggested by the forward-looking statements. As a consequence, these forward-looking statements
should be considered in light of various important factors, including those set forth in this
document. Important factors that could cause the actual results to differ materially from estimates
or projections contained in the forward-looking statements include, without limitation, economic,
business, political and social conditions in South Africa, Zimbabwe and elsewhere; changes in
assumptions underlying Sibanye's estimation of its current Mineral Reserves and Resources; the
ability to achieve anticipated efficiencies and other cost savings in connection with past and future
acquisitions, as well as at existing operations; the ability of Sibanye to successfully integrate
acquired businesses and operations (whether in the gold mining business or otherwise) into its
existing businesses; the success of Sibanye's business strategy, exploration and development
activities; the ability of Sibanye to comply with requirements that it operate in a sustainable
manner; changes in the market price of gold, platinum group metals ("PGMs") and/or uranium; the
occurrence of hazards associated with underground and surface gold, PGMs and uranium mining; the
occurrence of labour disruptions and industrial action; the availability, terms and deployment of
capital or credit; changes in relevant government regulations, particularly environmental, tax health
and safety regulations and new legislation affecting water, mining, mineral rights and business
ownership, including any interpretations thereof which may be subject to dispute; the outcome and
consequence of any potential or pending litigation or regulatory proceedings or other environmental,
health and safety issues; power disruptions, constraints and cost increases; supply chain shortages
and increases in the price of production inputs; fluctuations in exchange rates, currency
devaluations, inflation and other macro-economic monetary policies; the occurrence of temporary
stoppages of mines for safety incidents and unplanned maintenance; Sibanye's ability to hire and
retain senior management or sufficient technically skilled employees, as well as its ability to
achieve sufficient representation of historically disadvantaged South Africans' in its management
positions; failure of Sibanye's information technology and communications systems; the adequacy of
Sibanye's insurance coverage; any social unrest, sickness or natural or man-made disaster at informal
settlements in the vicinity of some of Sibanye's operations; and the impact of HIV, tuberculosis and
other contagious diseases. These forward-looking statements speak only as of the date of this
document.
The Group undertakes no obligation to update publicly or release any revisions to these forward-
looking statements to reflect events or circumstances after the date of this document or to reflect
the occurrence of unanticipated events.
Date: 03/03/2017 01:38:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
