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GFI - Gold Fields Limited - Mineral Resource and Mineral Reserve Update
Gold Fields Limited
(Reg. No. 1968/004880/06)
(Incorporated in the Republic of South Africa)
("Gold Fields" or "the Company")
JSE, NYSE, DIFX Share Code: GFI
ISIN Code: ZAE000018123
MEDIA RELEASE
MINERAL RESOURCE AND MINERAL RESERVE UPDATE
Johannesburg, 27 February 2012: Gold Fields Limited (Gold Fields) (JSE, NYSE,
NASDAQ Dubai: GFI) has announced its Mineral Resource and Mineral Reserve
statement as at 31 December 2011.
Gold Fields has total attributable precious metal and gold equivalent Mineral
Resources of 217.0 million ounces (31 December 2010: 225.4 million ounces) and
Mineral Reserves of 80.6 million ounces (76.7 million ounces). This represents
a 5% increase in Mineral Reserves after taking into account the inventory mined
during 2011 ("post depletion") and a 4% decrease in Mineral Resources when
compared to the December 2010 position.
"The improved Mineral Reserve position bodes well for our growth ambition in
line with our long-term target of 5 million gold-equivalent ounces either in
production or in development by 2015," says Nick Holland, CEO of Gold Fields.
All Mineral Resource and Mineral Reserve numbers in this note are managed,
unless otherwise stated. The accompanying tables highlight Gold Fields Mineral
Resource and Mineral Reserve position as at 31 December 2011. Mineral Resources
are quoted inclusive of Mineral Reserves.
Table 1 - Headline Numbers: Gold Fields Limited Mineral Resource and Mineral
Reserve summary as at 31 Dec 2011
Total: Mineral Resources Mineral Reserves
Operating mines
(including Cu
as Au
equivalents &
TSF Au)
31 December December 31 December December
2011 2010 2011 2010
Tonnes All Metal All Metal Tonnes All (Moz)
(Mt) EqOz EqOz (Mt) Metal
(Moz) (Moz) EqOz
Managed 1749.1 202.2 208.8 1062.4 85.1 81.0
Attributable(1) 1667.1 193.4 202.3 1011.0 80.6 76.7
Totals Tonnes All Metal All Metal Tonnes All All Metal
including (Mt) EqOz EqOz (Mt) Metal EqOz
platinum and (Moz) (Moz) EqOz (Moz)
gold (Moz)
equivalents
(from Cu, Ag &
Mo), excl
Woodjam
Managed 2475.8 234.4 239.5 1062.4 85.1 81.0
Attributable(1) 2158.2 217.0 225.4 1011.0 80.6 76.7
Note: 1 During 2011 the Gold Fields attributable portion of Mineral
Resources and Mineral Reserves for Tarkwa and Damang have increased from 71.1%
to 90% following the buyout of the IAMGold share. Similarly, the purchase of
the minority shareholders equity in Cerro Corona has increased the Group`s
attributable portion of Mineral Resources and Mineral Reserves from 80.7% to
98.5%.
The commodity prices used for the Mineral Reserve and Mineral Resource
declaration are in accordance with SEC guidelines and approximate to the
historical three year trailing average commodity prices. Metal price
assumptions used for evaluating Gold Fields Mineral Reserves are as follows:
US$1,300/oz (Dec 2010: US$1,000/oz) for gold and US$3.50/lb (Dec 2010:
US$2.72/lb) for copper. Price assumptions for Mineral Resources are:
US$1,450/oz (Dec 2010: US$1,100/oz) for gold and US$3.90/lb (Dec 2010: US$3.00)
for copper. A complete list of price assumptions are contained in Table 2
below.
Key highlights for the Mineral Resource and Mineral Reserve statement in our
four Regions and for our Growth Projects are as follows:
The Mineral Resource position in the West Africa region has increased by 46%
from 17.3 million ounces to 25.2 million ounces net of depletion, primarily due
to the increase in the gold price and discovery at the Greater Damang Project
(Huni, Juno and Damang main pit). The total Mineral Reserve has increased by
21% from 11.3 million ounces to 13.7 million ounces, net of mine depletion.
After taking depletion into account the Mineral Reserve at Tarkwa increased
from 9.2 million ounces to 10.3 million ounces, mainly due to the rise in the
gold price. The Mineral Reserves at Damang increased from 2.1 million ounces to
3.4 million ounces net of depletion. This is primarily due to the increase in
the Mineral Reserves for the Greater Damang Project from 1.1 million ounces to
2.5 million ounces.
In the South Africa region Mineral Resources declined by 8% to 160.2 million
ounces (173.8 million ounces), due to pay limit increases, resource clean-up
and changes in geological models. The total Mineral Reserve base has increased
by 2%, net of depletion, primarily due to an increase of 5.2 million ounces at
South Deep and the first-time inclusion of 2.9 million ounces gold reserves
from the West Wits Tailings Treatment Project (WWTTP). This is partially offset
by a 3.7 million ounce reduction in the below-infrastructure Mineral Reserves
at KDC West (Driefontein), with the balance due to life-of-mine tail end
management adjustments.
In the South American region, Cerro Corona`s gold equivalent Mineral Resource
position decreased by 5% from 8.1 million ounces to 7.7 million ounces,
primarily due to depletion. The total gold equivalent Mineral Reserve base
improved substantially by 15% from 5.3 million ounces to 6.1 million ounces,
net of depletion, primarily due to the increase in the total capacity of the
Tailings Storage Facility from 99 million to 130 million tonnes.
The Australasia region`s Mineral Resource position decreased by 5% from 9.6
million ounces to 9.2 million ounces, primarily because of depletion. The total
Mineral Reserve remained flat at 4.1 million ounces, net of depletion.
Amongst Gold Fields` Growth Projects there was an updated Mineral Resource
declaration for the APP Project in Finland (12.2 million 2PG + gold ounces) and
the Chucapaca Project in Peru (7.6 million gold-equivalent ounces).
Approximately 70% of Chucapaca`s Mineral Resource has been upgraded to the
Indicated category. A first-ever Inferred Mineral Resource of 1,060 million
pounds copper was declared for the Woodjam Project in British Columbia, Canada.
The information contained in the Mineral Resource and Mineral Reserve statement
has been compiled by the Gold Fields competent person, Kevin Robertson,
Pri.Sci.Nat, who is registered with the South African Council for Natural
Scientific Professions. The Group`s Mineral Resource and Mineral Reserve
numbers have been externally audited by recognised independent mining
consultants. The Mineral Resource and Mineral Reserve statement is compliant
with the SAMREC 2007 Code, the updated Section 12 (Oct 2008) of the
Johannesburg Stock Exchange (JSE) listing requirements, Industry Guide 7 (SEC)
and aligned to the guiding principles of the Sarbanes-Oxley (SOX) Act of 2002.
Technical Short-form reports will be released to the market during April 2012
as supplements to the Integrated Annual Report for 2011.
Table 2 - Metal price assumptions as at 31 Dec 2011
Location Unit December 2011 December 2010
Reserves Resources Reserves Resources
Ghana & Au (US$/oz) 1,300 1,450 1,000 1,100
Peru
Australia Au (A$/oz) 1,400 1,550 1,225 1,350
South Au (R/kg) 310,000 340,000 265,000 290,000
Africa U(3)O(8) - - - 75
(US$/lb)
Peru Cu (US$/lb) 3.50 3.90 2.72 3.00
Table 3 - Summary table of Gold Fields Limited Mineral Resources and Mineral
Reserves as at 31 Dec 2011
SUMMARY (1) 93% 94% 95% 95%
Mineral Resources (100%) Mineral Reserves (100%)
31 Dec 2011 Dec-10 31 Dec 2011 Dec-10
Tonnes Grade Gold Gold Tonnes Grade Gold Gold
GOLD (Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Australia
Operations
Agnew(2) 24.2 4.9 3.838 3.845 7.1 5.7 1.302 1.321
St Ives 63.3 2.6 5.314 5.765 37.9 2.3 2.813 2.820
Total 87.5 3.3 9.152 9.610 45.0 2.8 4.114 4.141
Australasia
Region
South African
Operations
Beatrix 53.5 6.5 11.120 15.934 34.0 4.5 4.901 5.367
(surface &
underground)
KDC E 94.7 12.6 38.435 40.233 27.8 7.8 6.951 7.937
(underground)
KDC W 66.3 11.7 24.999 31.051 26.5 7.5 6.382 11.850
(underground)
Kloof 161.0 12.3 63.434 71.284 54.3 7.6 13.333 19.787
Driefontein
Complex (ug)
South Deep 355.8 7.1 80.974 81.454 225.0 5.5 39.584 34.533
(underground)
(3)
Beatrix 12.4 0.4 0.156 0.078 5.5 0.3 0.057 0.078
Surface Rock
Dumps
WWTTP 430.5 0.3 4.164 4.490 247.2 0.4 2.916 0.000
(Tailings
Storage
Facility)(7)
WW Surface 14.9 0.7 0.327 0.594 14.9 0.7 0.327 0.454
Rock Dumps
Total South 1,028.0 4.8 160.175 173.834 580.8 3.3 61.118 60.219
Africa Region
Peru
Operation
Cerro Corona 151.7 0.8 3.946 4.115 110.0 0.9 3.072 2.672
Total South 151.7 0.8 3.946 4.115 110.0 0.9 3.072 2.672
America
Region
Ghana
Operations
Damang 165.4 1.9 10.044 4.638 61.7 1.7 3.390 2.080
Tarkwa 316.5 1.5 15.123 12.642 264.8 1.2 10.345 9.249
Total West 481.9 1.6 25.167 17.280 326.5 1.3 13.735 11.329
Africa Region
Total 721.1 1.7 38.266 31.004 481.6 1.4 20.921 18.142
International
Operations
GOLD ONLY
Total Gold 1,749.1 3.5 198.441 204.839 1,062.4 2.4 82.040 78.361
Managed
Total Gold 1,667.1 3.5 189.678 199.051 1,011.0 2.4 77.612 74.571
Attributable
-6.398 3.679
COPPER Tonnes Grade Copper Copper Tonnes Grade Copper Copper
(Peru) - (Mt) (% Cu) (Mlbs) (Mlbs) (Mt) (% (Mlbs) (Mlbs)
Cerro Corona Cu)
Cerro Corona 144.1 0.45 1,386 1,464 110.0 0.51 1,126 965
- Copper
(Cu) only
COPPER as Au- Au-Eq Au-Eq Au-Eq Au-Eq
Eq(4)
(Moz) (Moz) (Moz) (Moz)
Cerro Corona 3.729 3.992 3.031 2.624
- Cu as Au-Eq
Total Cerro 7.676 8.107 6.103 5.296
Corona
(Au + Cu as
Au-Eq)
PLATINUM Tonnes 2PGE + 2PGE + 2PGE + Tonnes 2PGE 2PGE + 2PGE +
Au Au Au + Au Au Au
(Finland) (Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
- APP
Project(6)
Total 2PGE as 161.9 2.3 12.159 12.601
Au-Eq + Au
COPPER - Tonnes Grade Metal Metal
GOLD -
SILVER(4)
(Peru) - (Mt) (Moz) (Moz)
Chucapaca
Project
Total Au-Eq 132.7 7.628 5.639 -
oz (Au + Ag +
Cu)
COPPER - GOLD
-
MOLYBDENUM(4) Tonnes Grade Metal Metal
(Kyrgyzstan) (Mt) (Moz) (Moz)
- Talas
Project
Total Au-Eq 423.0 - 11.695 11.710 -
oz (Au + Cu +
Mo - ID & IF)
GOLD Tonnes Grade Gold Gold
(Mali) - (Mt) (g/t) (Moz) (Moz)
Yanfolila
Project
Total Gold 9.1 2.5 0.740 0.740 -
(Inferred)
GOLD & COPPER Tonnes Au = Au = Au =
(g/t) (Moz) (Moz)
Canada - (Mt) Cu = Cu = Cu =
Woodjam (%) (Mlb) (Mlb)
Project(5)
Inferred - 146.5 0.33 1,060 - - - -
Copper
SUMMARY(1)
Attributable R & R (%)
31 Dec 2011
Resource Reserve
GOLD (%) (Moz) (Moz)
Australia
Operations
Agnew(2) 100 3.838 1.302
St Ives 100 5.314 2.813
Total 100 9.152 4.114
Australasia
Region
South African
Operations
Beatrix (surface 100 11.120 4.901
& underground)
KDC E 100 38.435 6.951
(underground)
KDC W 100 24.999 6.382
(underground)
Kloof 100 63.434 13.333
Driefontein
Complex (ug)
South Deep 92.4 74.820 36.576
(underground)(3)
Beatrix Surface 100 0.156 0.057
Rock Dumps
WWTTP (Tailings 4.131 2.916
Storage
Facility)(7)
WW Surface Rock 100 0.327 0.327
Dumps
Total South 153.989 58.110
Africa Region
Peru Operation
Cerro Corona 98.5 3.887 3.026
Total South 98.5 3.887 3.026
America Region
Ghana Operations
Damang 90 9.040 3.051
Tarkwa 90 13.611 9.310
Total West 90 22.651 12.361
Africa Region
Total 35.690 19.502
International
Operations
GOLD ONLY
Total Gold - -
Managed
Total Gold 189.678 77.612
Attributable
COPPER Copper Copper
(Peru) - Cerro % (Mlbs) (Mlbs)
Corona
Cerro Corona - 98.5 1,366 1,109
Copper (Cu) only
COPPER as Au- Au-Eq Au-Eq
Eq(4)
(Moz) (Moz)
Cerro Corona - 98.5 3.673 2.985
Cu as Au-Eq
Total Cerro 7.560 6.012
Corona (Au + Cu
as Au-Eq)
PLATINUM 2PGE + Au 2PGE + Au
(Finland) - APP (%) (Moz) (Moz)
Project(6)
Total 2PGE as Au-100 12.159 -
Eq + Au
COPPER - GOLD - Metal Metal
SILVER(4)
(Peru) - (%) (Moz) (Moz)
Chucapaca
Project
Total Au-Eq oz 51 3.890 -
(Au + Ag + Cu)
COPPER - GOLD -
MOLYBDENUM(4) Metal Metal
(Kyrgyzstan) - (%) (Moz) (Moz)
Talas Project
Total Au-Eq oz 60 7.017 -
(Au + Cu + Mo -
ID & IF)
GOLD Gold Gold
(Mali) - (Moz) (Moz)
Yanfolila
Project
Total Gold 85 0.629 -
(Inferred)
GOLD & COPPER Au = (Moz) Au =
(Moz)
Canada - Woodjam Cu = (Mlb) Cu =
Project(5) (Mlb)
Inferred - 51 541 -
Copper
Footnotes
Managed, unless otherwise stated
Agnew deposits, Miranda & Vivien, are subject to a royalty agreement
The BEE transaction concluded in December 2010 grants an empowerment consortium
10% of South Deep. Based on the relevant sliding scale of the vesting of the
economic benefit attached to the 10% and the current Life of Mine profile, the
Mineral Resource and Mineral Reserve portion attributable to Gold Fields is
92.4%.
Copper, silver and molybdenum are reported as gold equivalent ounces (commodity
revenue is divided by the gold price for the conversion to gold equivalent
ounces).
Woodjam is a copper deposit with gold as a by product.
The declared Mineral Resource for Konttijarvi and Ahmavaara is pit constrained
(7.1 Moz 2PGE +Au). The declared Mineral Resource includes the original
unconstrained SK reef estimates (5.1 Moz 2PGE +Au).
The WWTTP has been included into the gold Mineral Reserve figures this year,
whereas the uranium Mineral Resource figures have been excluded, but remain in
the inventory.
Notes to editors
About Gold Fields
Gold Fields is one of the world`s largest unhedged producers of gold with
attributable annualised production of 3.5 million gold equivalent ounces from
eight operating mines in Australia, Ghana, Peru and South Africa. Gold Fields
also has an extensive and diverse global growth pipeline with four major
projects in resource development and feasibility, with construction decisions
expected in the next 18 to 24 months. Gold Fields has total attributable gold
equivalent Mineral Reserves of 80.6 million ounces and Mineral Resources of 217
million ounces. Gold Fields is listed on the JSE Limited (primary listing), the
New York Stock Exchange (NYSE), NASDAQ Dubai Limited, Euronext in Brussels
(NYX) and the Swiss Exchange (SWX).
Gold Fields Limited
Reg. 1968/004880/06
150 Helen Road,
Sandown, Sandton,
2196
Postnet Suite 252
Private Bag X30500
Houghton, 2041
South Africa
Tel +27 11 562 9700
Fax +27 11 562 9838
www.goldfields.co.za
Enquiries
Investor Enquiries
Zakira Amra
Tel +27 11 562 9775
Mobile +27 79 694 0267
E-mail Zakira.Amra@goldfields.co.za
Willie Jacobsz
Tel +1 508 839 1188
Mobile +1 857 241 7127
E-mail Willie.Jacobsz@gfexpl.com
Media Enquiries
Sven Lunsche
Tel +27 11 562 9763
Mobile +27 83 260 9279
E-mail Sven.Lunsche@goldfields.co.za
Sponsor:
J.P. Morgan Equities Limited
Date: 27/02/2012 17:49:56 Supplied by www.sharenet.co.za
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