SIBANYE GOLD LIMITED - Sibanye Gold declares significant increase in mineral reserves

Sibanye Gold declares significant increase in mineral reserves

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” or “the Company”)

SIBANYE GOLD DECLARES SIGNIFICANT INCREASE IN MINERAL RESERVES

Westonaria, 17 February 2014: Sibanye Gold Limited (JSE: SGL &
NYSE: SBGL) is pleased to advise stakeholders that at 31 December
2013, its economically extractable gold Mineral Reserves have
increased by 46% to 19.73Moz (net of 1.48Moz depleted from mining
in 2013). This increase in Mineral Reserves will significantly
enhance and extend Sibanye Gold’s Life of Mine (LOM) production
profile. All of the declared Mineral Reserves are above current
infrastructure.
The Mineral Resources and Mineral Reserves, have been      revised
taking into account, inter alia, lower operating costs,   improved
efficiencies and improved mining quality factors           at its
operations.    This follows significant restructuring     and the
implementation of a new operating model.
Highlights include:
  -   Capex maintained at approximately R3-R3.5 billion per annum.
  -   Successful results from the economic and technical
      assessment of previously unmined areas.
  -   A maiden gold and uranium Mineral Resource declared at Beisa
      Reef Section at the Beatrix West Section.
  -   Positive results from the pre-feasibility study on the West
      Rand Tailings Retreatment Project and the Driefontein 1
      Shaft Pillar extraction project.

The statement provided below summarises and compares Sibanye
Gold’s Mineral Resources and Mineral Reserves at each of its
operating mines and projects, as at 31 December 2013, with those
declared at 31 December 2012, net of depletion due to normal
mining activities during the relevant period.
At 31 December 2013, Sibanye Gold had total attributable gold
Mineral Resources of 64.96Moz (December 2012: 74.25Moz) and gold
Mineral Reserves of 19.73Moz (December 2012: 13.53Moz), net of
production depletion in 2013.    Total uranium Mineral Resources
attributable to the Group amounts to 68.81Mlb, inclusive of
43.16Mlb uranium Mineral Reserves.
Gold Mineral Resource and Mineral Reserve summary as at 31
December 2013
                                 Mineral Resources                            Mineral Reserves
Gold                                                      31 Dec                                           31 Dec
                                  31 Dec 2013               2012              31 Dec 2013                    2012

Operation and Growth         Tons     Grade        Gold     Gold           Tons     Grade      Gold          Gold
Projects                     (Mt)     (g/t)       (Moz)    (Moz)           (Mt)     (g/t)     (Moz)         (Moz)
Beatrix                      69.1          4.2    9.309    8.434           38.1        3.0    3.631         3.357
Driefontein                  66.5          9.9   21.253   22.241           32.0        5.9    6.057         4.369
Kloof                        81.0      11.6      30.378   39.836           37.9        4.9    6.023         5.804
West Rand Tailings
Retreatment Project         414.3          0.3    4.022    3.735       414.3           0.3    4.022             -
Total Sibanye Gold
Operations                  630.9          3.2   64.962   74.246       522.4           1.2   19.733        13.530
Rounding-off of figures may result in minor computational discrepancies, where this happens it
is not deemed significant


Uranium Mineral Resource and Mineral Reserve summary as at 31
December 2013
                                           Mineral Resources *                         Mineral Reserves *
Uranium                              31 December 2012            Dec-11           31 December 2012           Dec-11
                                    Tons     Grade      U308       U3 08      Tons       Grade      U308        U308
Growth Projects                     (Mt)    (kg/t)    (Mlb)    (Mlb)          (Mt)      (kg/t)    (Mlb)       (Mlb)
Beatrix (Beisa Section)             12.5     0.934   25.658           -            -         -        -             -
West Rand Tailings
Retreatment Project              406.0       0.048   43.155           -      406.0       0.048   43.155             -
Total Sibanye Gold
Operations                       418.5       0.075   68.813           -      406.0       0.048   43.155             -
Rounding-off of figures may result in minor computational discrepancies, where this happens it
is not deemed significant
* No uranium resources or reserves considered in 2012


Lower pay limits resulting from operating cost reductions,
improved mining quality factors and an 8% increase in the assumed
gold price to R410 000/kg, allowed the inclusion of 0.93Moz of
additional Mineral Reserves from secondary reefs. A comprehensive
review of all unmined areas across the operations (white areas)
resulted in the inclusion of an additional 2.85Moz in the Mineral
Reserves. Studies are ongoing and further additions from
secondary reefs and white areas are likely in the future. A pre-
feasibility study was also conducted on the safe extraction
potential of the Driefontein 1 Shaft Pillar, which resulted in a
further addition of a further 0.49Moz of gold to Driefontein’s
Mineral Reserves. Despite the increase in Mineral Reserves,
Reserve grades have been maintained at similar levels to those
declared in 2013.
The total Mineral Reserves also include the addition of 4.02Moz
of gold contained in Tailings Storage Facilities (TSF’s) at the
Kloof and Driefontein Operations that will be mined as part of
the West Rand Tailings Retreatment Project (WRTRP). A pre-
feasibility study on the WRTRP (assessing the potential for
extraction of gold and uranium from Sibanye Gold’s West Wits and
the adjacent Cooke Operations TSF’s), was successfully concluded
in 2013 and is currently      the    subject    of     a   more   detailed
feasibility study.
Total gold Mineral Resources decreased by 13% (net of 1.80Moz
production depletion), following a comprehensive review of
Mineral Resources classification at the operations. This was
partly offset by the inclusion of 1.14Moz gold contained in the
newly declared Mineral Resources at Beisa Reef Section at Beatrix
West Section.
Reconciliation of Mineral Reserves
LoM 2012                                   13.529
2013 Depletion (Actual)                    -1.481
Post Depletion LoM                         12.049
Changes in geological structure             0.145
and facies
Changes in resource estimation                 0.100
models
Specific Inclusions:
     Secondary Reefs                           0.932
     White Areas                               2.849
     Driefontein 1 Shaft Pillar                0.491
       WRTRP (not including Cooke              4.022
reserves)
Specific exclusions:
     Excluding areas below cut-            -0.704
off grades, and excluding areas
towards the end of life when
shafts become uneconomic.
    Areas that were re-                    -0.100
classified as Rock Engineering
pillars, and areas that were
abandoned due to unacceptable
risk.
Technical Factors                          -0.050
LoM 20133                                  19.733

Beatrix
The Beatrix Operation comprises three operating shafts and two
processing plants. Gold Mineral Reserves at Beatrix increased by
8% to 3.63 Moz, mainly due to a 10% decrease in the overall pay
limit and the inclusion of additional white areas in the new LOM
plan. Gold Mineral Resources increased by approximately 0.88Moz
(10%) to 9.31Moz.     A 25.66Mlb uranium Mineral Resource was
declared at the Beisa Section of Beatrix West Section (4 shaft)
for the first time, following the successful conclusion of a
concept study that investigated the economic potential of mining
uranium and gold from this section.
Driefontein
The Driefontein Operation consists of seven operating shafts and
three   processing  plants.   Mineral  Reserves   at  Driefontein
increased by 1.69Moz (39%) to 6.06Moz.      This increase is the
result of a detailed investigation into the economic potential of
white areas which were previously not considered in the LOM
plans, and secondary reefs which became available following an 8%
decrease in the overall pay limit. A pre-feasibility study was
also concluded in 2013 on the Driefontein 1 shaft pillar,
resulting in the inclusion of an additional 0.49Moz in the
Mineral Reserves. Mineral Resources decreased by approximately
0.99Moz (4%) to 21.25Moz.
Kloof
The Kloof Operation consists of five operating shafts and three
processing plants.     Mineral Reserves at Kloof increased by
0.20Moz (4%) to 6.02Moz. This increase is mainly as a result of
detailed investigation into the economic potential of white areas
which were previously not considered in the LOM plans and
secondary reefs which became available following an 15% decrease
in the overall pay limit. Mineral Resources decreased by
approximately 9.46Moz (-24%) to 30.38Moz. This decrease was due
to a comprehensive review and clean-up of the Mineral Resource
classification across all the shafts.
Corporate governance
The Mineral Resource and Mineral Reserve declaration at 31
December 2013 is compliant with the SAMREC Code, the updated
Section 12 (Oct 2008) of the JSE Listing Requirements and the
Securities and Exchange Commission (SEC) Industry Guide 7 and is
aligned to the guiding principles of the Sarbanes-Oxley (SOX) Act
of 2002.    This Mineral Resources and Mineral Reserves statement
has been independently audited by Minxcon (Pty) Ltd (Mineral
Resources) and by Royal HaskoningHDV (Mineral Reserves), and was
found to comply with the relevant codes.             No material
shortcomings in the processes used by Sibanye Gold to evaluate
the Mineral Resources and Mineral Reserves were identified.

In accordance with the SEC guidelines, historical, average
trailing commodity prices over a two to three-year period are
used for the declaration of Mineral Reserves, and a 10% premium
to these prices used to declare Mineral Resources. Sibanye Gold
has used a gold price of R410 000/kg (R380 000/kg in 2012), and a
uranium price of US$60/lb for the declaration of Mineral
Reserves.   A gold price of R450 000/kg and uranium price of
US$60/lb were used to declare Mineral Resources in its 31
December 2013 statement.

The declared Mineral Resources and Mineral Reserves are estimates
at a specific point in time, and are affected by: fluctuations in
the US dollar gold price; exchange rates; operating costs;
granting of pending mining permits; possible changes in
legislation and other operating factors. Mineral Resources are
reported inclusive of Mineral Reserves. Although all regulatory
permitting may not be finalised and granted at the date of
declaration of the Mineral Resources and Mineral Reserves, and
while recognising that schedules may be impacted by the time
taken for approvals, there is no reason to expect that these will
not be granted.     All financial models used to determine the
Mineral Reserves are based on existing South African tax
regulations at 31 December 2013.
The Competent Person designated in terms of SAMREC, who takes
responsibility for the reporting of Sibanye Gold’s Mineral
Resources and Mineral Reserves is the current Head of Mine
Planning and Mineral Resource Management for Sibanye Gold,
Gerhard Janse van Vuuren [BTech (MRM); GDE (Mining Eng.); MBA;
MSCoC (PLATO – No. 0243)). Mr. Janse van Vuuren has 26 years
experience in the mining industry. Additional information
pertaining to the teams involved in compiling the Mineral
Resource and Mineral Reserve declaration is incorporated in the
Mineral Resources and Mineral Reserves Supplement. The Competent
Person consents to the inclusion of the above information in the
form and context in which it appears.

ENDS


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

Date: 17/02/2014 02:09:00 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.