Wrap Text
Sibanye-Stillwater declares Mineral Resources and Mineral Reserves as at 31 December 2017
Sibanye Gold Limited
Trading as Sibanye-Stillwater
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye-Stillwater” or “the Group” or “the Company”)
Sibanye-Stillwater declares Mineral Resources and Mineral Reserves as at 31
December 2017
Johannesburg, 19 February 2018. Sibanye-Stillwater (Tickers JSE: SGL and NYSE: SBGL)
is pleased to report updated Mineral Resources and Mineral Reserves, as at 31
December 2017, including 2E Platinum Group Metals (PGM) Mineral Reserves and
Resources for the United States region (US region) following the acquisition of
Stillwater in May 2017.
Salient points
- SA Gold operations
- Total gold Mineral Reserves of 25.737 million ounces (Moz) declined by
2.957Moz (10%) due to:
- Depletion of 1.457Moz due to mining activities during 2017, mitigated
by the addition of 1.882Moz gold Mineral Reserves from successful
exploration of secondary reefs and white areas (primarily at Kloof and
Driefontein)
- The cessation of underground mining at Cooke 1,2 & 3, resulting in the
exclusion of 0.752Moz
- The reduction of gold Mineral Reserves at the Beatrix 4 Shaft, due to
a revised mine plan and increase in pay limit, resulted in 1.659Moz
being excluded. This exclusion includes the Beisa project
- A further reduction of 0.971Moz due to technical factors, including a
change in Mine Call Factor, Tail-end Management and increased pay
limits
- Total gold Mineral Resources declined by 16.924Moz to 85.111Moz. The decrease
is primarily due to increased pay limits at the Cooke and Beatrix West
operations
- SA PGM operations
-Total 4E PGM Mineral Reserves declined by 4% to 22.358Moz mainly due to:
- Depletion of 1.500Moz due to mining activities during 2017.
- A revision in the methodology of determining geological losses, by
calibrating against actual historical losses, resulted in a decrease
in the overall estimated losses applied to the SA PGM Operations. This
resulted in an increase of 2.077Moz in Reserves.
- Mineral Reserves at Siphumelele Mine declined by 0.691Moz as a result
of the deferral of the UG2 expansion project. This project will be
reviewed subject to an improving economic environment.
- A 0.752Moz decrease due to the removal of sub-economic ounces at the
end of the life of mine.
- Attributable PGM Mineral Reserves at Mimosa increased by 20% to
2.030Moz following a successful technical and economic valuation of a
part of the South Hill Orebody.
- Total 4E PGM Mineral Resources declined marginally to 100.175Moz
1
- US PGM operations
- The acquisition of Stillwater in May 2017, increased the Company’s 2E PGM
Mineral Reserves by 21.903Moz and 2E PGM Mineral Resources by 80.463Moz
(2E PGM) with an average Mineral Reserve grade of 16.3g/t
This Mineral Reserves and Mineral Resources declaration represents a condensed and
consolidated summary of the full Sibanye-Stillwater Mineral Resources and Mineral
Reserves declaration available in the Group Mineral Resource and Mineral Reserve
Report, which will be published on 29 March 2018 and will be available at
www.sibanyestillwater.com
In accordance with US Securities and Exchange Commission (SEC) guidelines and
Sibanye-Stillwater reporting standards, approximate three-year average, rolling,
historical commodity prices are assumed for the calculation of Mineral Reserves and
Resources. An average exchange rate of R13.05/US$ and the following commodity prices
were used:
Precious metals Assumed 2018 prices based on 3 year average
USD/oz ZAR/oz ZAR/kg
Gold 1,218 15,895 511,033
Platinum 1,092 14,251 458,167
Palladium 704 9,187 295,375
Rhodium 901 11,758 378,030
Iridium 575 7,504 241,251
Ruthenium 46 600 19,300
Base minerals
USD/lb ZAR/kg
Uranium* 42 1,208
Base minerals
USD/tonne ZAR/tonne
Nickel 12,185 159,014
Copper 5,614 73,263
*Long term contract prices used
Summarised Group Mineral Resources and Reserve Estimate at 31 December 2017
Gold Resource and Reserve Estimates as at 31 December 2017
Mineral Resources Mineral Reserves
31 Dec 31 Dec
31 Dec 2017 2016 31 Dec 2017 2016
Tonnes Grade Gold Gold Tonnes Grade Gold Gold
Gold Operations (Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
SA Region
Beatrix
underground* 45.5 5.6 8.249 12.729 20.1 3.2 2.086 3.723
Beatrix -
surface 3.7 0.3 0.041 0.052 3.7 0.3 0.041 0.052
2
Cooke –
underground** 10.7 11.8 4.039 13.837 0.826
Cooke – surface 5.7 0.3 0.059 0.047 5.7 0.3 0.059 0.047
Driefontein –
underground 50.7 11.2 18.337 17.684 34.8 6.2 6.980 6.851
Driefontein –
surface 1.1 0.5 0.019 0.076 1.1 0.5 0.019 0.076
Kloof –
underground 70.4 13.6 30.715 32.361 29.7 6.5 6.189 6.450
Kloof – surface 11.3 0.5 0.192 0.200 11.3 0.5 0.192 0.200
Total Gold
Operations 199.1 9.6 61.651 76.985 106.4 4.5 15.565 18.224
*The Beatrix Mineral Reserve and Resource, was impacted by the increased pay limit at Beatrix
West, resulting in a decrease in the Mineral Reserves of the Beatrix West operations and Beisa
Project and decrease in Mineral Resources at Beatrix West
** The Cooke Underground Resources reduced due to an increase in the Pay
Limit, as a result of higher unit costs associated with shafts being placed on
care and maintenance
Tonnes Grade Gold Gold Tonnes Grade Gold Gold
Gold Projects (Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
SA Region
Beisa North* 1.619
Bloemhoek 28.3 4.7 4.297 4.297
Burnstone 64.6 4.3 9.015 8.890 14.8 4.1 1.934 2.137
De Bron
Merriespruit 28.3 4.4 4.022 4.022 15.4 4.3 2.112 2.112
WRTRP - surface
tailings** 670.8 0.3 6.126 6.222 670.8 0.3 6.126 6.222
Total SA Region 792.0 0.9 23.460 25.050 701.0 0.5 10.171 10.470
US Region ***
Altar **** 2,614.0 0.1 6.321
Total US Region 2,614.0 0.1 6.321
Total Projects 3 406.0 0.3 29.781 25.050 701.0 0.5 10.171 10.470
Total Gold 3,605.1 0.8 91.432 102.035 807.4 1.0 25.737 28.694
* Beisa North has been excluded from Mineral Resources due to the expiry of prospecting licenses
** As part of the proposed transaction with DRDGOLD Limited (refer to
https://www.sibanyestillwater.com/investors/transactions/drdgold), selected assets (comprising gold
Mineral Reserves and Resources of 3.881Moz) from the West Rand Tailings Retreatment Project (WRTRP)
will be sold to DRDGOLD subject to all conditions of the transactions being met.
*** US operations were acquired in May 2017 and therefore no comparative information has been disclosed
**** Altar is a Copper-gold exploration project in Argentina
PGM Resource and Reserve Estimates as at 31 December 2017
Mineral Resources Mineral Reserves
31 Dec 31 Dec
31 Dec 2017 2016 31 Dec 2017 2016
Tonnes Grade Tonnes Grade
PGM Operations (Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
3
SA Region
Kroondal-
underground (50%
attributable)
(4E) 49.3 3.1 4.879 4.926 21.9 2.6 1.804 2.291
Blue Ridge (50%
attributable)
(4E) 23.1 3.3 2.430 2.430
Rustenburg -
underground (4E) 512.6 5.0 83.209 83.987 127.6 3.8 15.706 16.066
Rustenburg -
surface (4E) 81.9 1.1 2.818 3.140 81.9 1.1 2.818 3.140
Mimosa (50%
Attributable)
(4E) 59.0 3.6 6.839 7.045 18.1 3.5 2.030 1.689
Total SA Region 725.9 4.3 100.175 101.528 249.4 2.8 22.358 23.186
US Region*
Stillwater (2E) 72.8 18.0 42.144 17.8 20.2 11.519
East Boulder
(2E) 76.4 15.6 38.319 24.0 13.4 10.384
Total US Region 149.2 16.8 80.463 41.8 16.3 21.903
Total Operations 875.0 6.4 180.639 101.528 291.2 4.7 44.261 23.186
*Resources and Reserves for the US region were estimated on July 31, 2017, please refer to the CPR
available on https://www.sibanyestillwater.com/investors/documents-circulars. Mineral Resources
and Mineral Reserves have not been re-estimated as at 31 December 2017, however mining depletion
for the period from August to December 2017, has been included in the December 2017 estimates
Tonnes Grade Tonnes Grade
PGM Projects (Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
SA Region
Millenium (4E)* 1.720
Vygenhoek (4E) 1.4 5.1 0.230 0.230
Sheba's Ridge
(4E)* 7.100
Zondernaam (4E) 77.4 6.4 15.900 15.900
Hoedspruit
(4E)** 32.6 5.5 5.790
Total SA Region 111.4 6.1 21.920 24.950
US Region
Marathon (2E) 151.7 0.8 3.982
Total US Region 151.7 0.8 3.982
*The Resources at Millenium and Sheba’s ridge are omitted for 2017 as the mineral title has
expired
** The Mineral Resources at Hoedspruit have been included in the 2017 declaration following a
successful appeal to the DMR regarding the award of the prospecting right.
Total SA PGM
operations and
projects 837.2 4.5 122.095 126.478 249.4 2.8 22.358 23.186
Total US PGM
operations and
projects 300.9 8.7 84.447 41.8 16.3 21.903 21.198
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Uranium Resource and Reserve Estimate as at 31 December 2017
Mineral Resources Mineral Reserves
31 Dec
31 Dec 2017 31 Dec 2016 31 Dec 2017 2016
Tonnes Grade U3O8 U3O8 Tonnes Grade U3O8 U3O8
(Mt) (kg/t) (Mlb) (Mlb) (Mt) (kg/t) (Mlb) (Mlb)
Uranium Operations
SA Region
Beatrix (Beisa) 11.4 1.074 26.968 26.968 16.060
Total Operations 11.4 1.074 26.968 26.968 16.060
Tonnes Grade U3O8 U3O8 Tonnes Grade U3O8 U3O8
(Mt) (kg/t) (Mlb) (Mlb) (Mt) (kg/t) (Mlb) (Mlb)
Uranium Projects
SA Region
Beisa North 35.373
WRTRP - surface
tailings*** 670.8 0.065 96.083 97.166 670.8 0.065 96.083 97.166
Total Projects 670.8 0.065 96.083 132.539 670.8 0.065 96.083 97.166
Total Uranium 682.2 0.082 123.051 159.507 670.8 0.065 96.083 113.226
*** As part of the proposed transaction with DRDGOLD Limited (refer to
https://www.sibanyestillwater.com/investors/transactions/drdgold), selected assets (comprising uranium
reserves and resources of 44.359Mlb) from the West Rand Tailings Retreatment Project (WRTRP) will be
vended into DRDGOLD when all the conditions of the transactions are met
Copper Resource and Reserve Estimate as at 31 December 2017
Mineral Resources Mineral Reserves
31 Dec 31 Dec
31 Dec 2017 2016 31 Dec 2017 2016
Tonnes Grade Copper Copper Tonnes Grade Copper Copper
Copper Projects (Mt) (%) (Mlb) (Mlb) (Mt) (%) (Mlb) (Mlb)
US Region
Altar 2,614.0 0.311 17,931.0
Marathon 151.7 0.220 730.1
Total Projects 2,765.7 0.306 18,661.1
Mineral Reserve reconciliations
GOLD OPERATIONS
SA GOLD OPERATIONS
Factors Gold (Moz)
5
31 December 2016 28.694
2017 depletion (1.457)
Inclusions 1.882
White Areas1 1.503
Secondary Reefs2 0.379
Exclusions/reductions: (3.382)
Closure of Cooke underground (0.752)
Revised mine plan and increased pay limit at Beatrix West (including Beisa) (1.659)
Technical Factors3 (0.971)
31 December 2017 25.737
Rounding off of figures may result in minor computational discrepancies. Where this happens, it is not deemed
significant
1 Additional areas identified for mining through exploration and underground investigations, primarily at
Driefontein 4 Shaft, Driefontein 8 Shaft and Kloof 8 Shaft
2 The Carbon Leader at Driefontein 8 Shaft and the Kloof Reef at Kloof 8 Shaft
3 Primarily pay limits, tail management from the Life of Mine profiles, and Mine Call Factor adjustments
PGM OPERATIONS
SA PGM OPERATIONS
Factors 4E PGM(Moz)
31 December 2016 23.186
2017 depletion (1.500)
Inclusions
Evaluation 0.027
Geological Changes1 2.077
Boundary Changes 0.081
Exclusions/reductions:
Economic Valuation2 (0.752)
Technical Factors3 (0.757)
31 December 2017 22.362
Rounding off of figures may result in minor computational discrepancies. Where this happens, it is not deemed
significant
1 Decrease in geological losses following the revision of the geological losses methodology applied to the
Kroondal and Rustenburg Operations. The revision aligned estimated and actual geological losses.
2 Removal of sub-economic ounces at the end of the life of mine by tail cutting
3 Reserves in the UG2 section were downgraded back into Resources as a result of the deferment of the UG2 reef
expansion project at Siphumelele Mine (0.7Moz)
US PGM OPERATIONS
Factors 2E PGM(Moz)
31 July 20171 22.216
6
Depletion August 2017 to December 2017 (0.313)
31 December 2017 21.903
Rounding off of figures may result in minor computational discrepancies. Where this happens, it is not deemed
significant
1
Based on the competent persons report compiled by The Mineral Corporation as at 31 July 2017 available on
https://www.sibanyestillwater.com/investors/documents-circulars
SA URANIUM
Factors U3O8 (Mlb)
31 December 2016 113.226
Exclusions/reductions: (16.060)
Revised mine plan and increased pay limit at Beatrix West (including Beisa) (16.060)
31 December 2017 96.083
Rounding off of figures may result in minor computational discrepancies. Where this happens, it is not deemed
significant
Corporate governance
Sibanye-Stillwater 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. Both Altar and Marathon resources
are compliant with NI 43-101 guidelines. In accordance with SEC requirements, Reserves are based
on three year average, trailing, commodity prices.
Guided by a commitment to best practice corporate governance, the statement has been reviewed
by each Region’s Technical Services. For the Southern African Platinum Operations, the
Mineral Reserves and Mineral Resources was independently reviewed by Mineral Corporation
Consultancy Proprietary Ltd, and has been found to be compliant with the relevant codes with
no material shortcomings. The South African Gold Operations was subjected to an external
audit during 2016. The United States Region was audited by The Mineral Corporation
Consultancy Proprietary Ltd, and has been found to be compliant with the relevant codes with
no material shortcomings.
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-Stillwater 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 Southern African PGM Operations statement are reported as 4E PGM, which
consists of platinum, palladium, rhodium and gold. Individual proportions of the 4E PGM are
determined via prill splits as determined from the assays. The United States Region’s PGM
Operations statement consists of platinum reported as 2E PGM, which consists of palladium
and platinum.
All financial models used to determine Mineral Reserves are based on current tax regulations
at 31 December 2017.
For the Southern African Gold Operations, the lead competent person designated in terms of
the SAMREC Code, with responsibility for the consolidation and reporting of the SA Gold
Operations 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
7
2017 Mineral Resources and Mineral Reserves Statement. Gerhard [GDE (Mining Eng), MBA, MSCC
and B.Tech (MRM)] is registered with SAIMM (706705) and has 30 years’ experience relative
to the type and style of mineral deposit under consideration.
For the Southern African Platinum Operations, the lead competent person designated in terms
of the SAMREC Code, who takes responsibility for the consolidation and reporting of the SA
Platinum Operations 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
2017 Mineral Resources and Mineral Reserves Statement. Andrew [M.Sc Mining Eng] is registered
with SAIMM (705060) and has 33 years’ experience relative to the type and style of mineral
deposit under consideration.
For the United States Region, the lead competent person designated in terms of the SAMREC
Code, who takes responsibility for the consolidation and reporting of the Stillwater and
East Boulder Mineral Resources and Mineral Reserves, and for the overall regulatory
compliance of these figures, is Brent LaMoure, who gave his consent for the disclosure of
the 2017 Mineral Resources and Mineral Reserves Statement. Brent [B.Sc Mining Eng] is
registered with the Mining and Metallurgical Society of America (01363QP) and has 22 years’
experience relative to the type and style of mineral deposit under consideration. For the
foreign project Resource estimation, the competent person is Stanford Foy. Stan is registered
with the Society for Mining, Metallurgy and Exploration Inc. (4140727RM) and has 27 years’
experience relative to the type and style of mineral deposit under consideration.
Investor relations contact:
James Wellsted
Head of Investor Relations
Tel: +27 (0) 83 453 4014
Email: ir@sibanyestillwater.com
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
Ends.
FORWARD LOOKING STATEMENTS
This announcement includes “forward-looking statements” within the meaning of the
“safe harbour” provisions of the United States Private Securities Litigation Reform
Act of 1995. Forward-looking statements may be identified by the use of words such
as “target”, “will”, “forecast”, “expect”, “potential”, “intend”, “estimate”,
“anticipate”, “can” and other similar expressions that predict or indicate future
events or trends or that are not statements of historical matters. The forward-
looking statements set out in this announcement involve a number of known and unknown
risks, uncertainties and other factors, many of which are difficult to predict and
generally beyond the control of Sibanye-Stillwater, that could cause Sibanye-
Stillwater’s actual results and outcomes to be materially different from historical
results or from any future results expressed or implied by such forward-looking
statements. These forward-looking statements speak only as of the date of this
announcement. Sibanye-Stillwater 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 announcement or to reflect the occurrence of
unanticipated events, save as required by applicable law.
8
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