MINERAL RESOURCES AND MINERAL RESERVES REPORT 2015
SIBANYE GOLD MINERAL RESOURCES AND MINERAL RESERVES REPORT 2015 INTENT
Sibanye Gold Limited’s guiding principles are to ensure integrity and responsibility in reporting its Mineral Resources and Mineral Reserves, to be compliant with public and internal regulatory codes and to inform all stakeholders on the status of the Group’s fundamental asset base. Sibanye further aims to report on information, that is rated important for disclosure, to a level of detail that ensures competency, transparency and materiality.
Neal Froneman commented: 'The increase in Reserves reflects the continious positive impact of prior operational restructuring, the increased technical focus at the operations, as well as R3.6 billion capital investment into organic projects’
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CONTENTS
SECTION 1 GROUP OVERVIEW Introduction 2 SECTION 3 Highlights 3 SUPPLEMENTARY Location 4 INFORMATION Headline numbers 5 75 Professional organisations Corporate governance 6 75 SAMREC Code definitions Group consolidated Mineral 76 Glossary of terms Resource and Mineral Reserve Statement 10 78 Conversion table Group consolidated Mineral Resources and Mineral Reserves depletion and growth 15 79 Abbreviations 80 Disclaimer SECTION 2
OPERATIONS SECTION 4 AND PROJECTS SHAREHOLDER Introduction 20 PLANS Operations Beatrix Beatrix 24 Cooke Cooke 32 Driefontein Driefontein 42 Kloof Kloof 50 Burnstone
Projects Burnstone Project 59 Sibanye is a forerunner in West Rand Tailings Retreatment Project 64 South African gold mining, Southern Orange Free State Projects 67 with a portfolio of four operating mines, a surface mining operation and organic growth projects
Sibanye Gold Mineral Resources and Mineral Reserves 2015 1 SECTION 1 GROUP OVERVIEW
INTRODUCTION
Sibanye Gold Limited (‘Sibanye Gold’, ‘Sibanye’, or ‘the Group’) is an unhedged producer of gold, with an attributable, annualised production IMPORTANT of ~1.5Moz of gold from four underground mining operations and a NOTICES surface mining operation, all located in South Africa. The Group is • The United States Securities and additionally concentrating on growing its planned uranium production Exchange Commission (SEC) and ramping the Burnstone Project to full production. permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that The geology and evaluation models of the Group’s operational assets have been updated to reflect a company can economically the latest available data, and have proved to be stable with only minor variances in the Mineral and legally extract or produce Resources and Mineral Reserves year-on-year. Sibanye Mineral Resource and Mineral Reserve from. Certain terms are used protocols have been employed through all operations and project portfolios. Operational models in this report, such as ‘Mineral are coupled with an integrated and holistic mine design and schedule plan that is based on actual Resources’, that the SEC guidelines and expected performance levels. strictly prohibit companies from The Mineral Resources and Mineral Reserves have been prepared in compliance with and to including in filings. United States the extent required by the South African Code for the Reporting of Exploration Results, Mineral investors are urged to consider Resources and Mineral Reserves (SAMREC Code – 2007 edition and amended July 2009), South closely the disclosure in the Form African Code for the Reporting of Mineral Asset Valuation (SAMVAL Code – 2008 edition and 20-F submission. amended July 2009). • Mineral Resources and Mineral The mineral asset valuations supporting the Mineral Reserve estimates have been prepared in Reserves reported are managed compliance with and to the extent required by the 2008 SAMVAL Code, published under the joint by Sibanye unless otherwise auspices of the South African Institute of Mining and Metallurgy (SAIMM) and the Geological stated, and Mineral Resources are Society of South Africa (GSSA). inclusive of Mineral Reserves.
At 31 December 2015, Sibanye had total managed Mineral Resources, inclusive of projects, of • Rounding-off of figures in this report 98.8Moz of gold and 229.9Mlb of uranium. Managed Mineral Resources (excluding projects) may result in minor computational were 73.5Moz gold and 95.4Mlb uranium net of depletion. The corresponding total managed gold discrepancies. Where this occurs it and uranium Mineral Reserves inclusive of projects were 31.0Moz net of 1.6Moz depletion, and is not deemed significant. 113.8Mlb, net of 0.3Mlb depletion respectively. • The 31 December 2015 Mineral Resources and Mineral Reserves are net of depletion.
• Above infrastructure (AI) is that part of the Mineral Resources and/or Mineral Reserves, which is above the lowest mining level and can be accessed via the current mine infrastructure (shafts and underground haulages). • Below infrastructure (BI) is that part of the Mineral Resources and/ or Mineral Reserves which is below the lowest mining level and that can only be accessed following approved capital expenditure.
Driefontein 10 Shaft
2 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 1 GROUP OVERVIEW
HIGHLIGHTS 98.8Moz 31.0Moz Gold Mineral Resources Gold Mineral Reserves 229.9Mlb 113.8Mlb Uranium Mineral Resources Uranium Mineral Reserves
Mineralised conglomerate
TOTAL GOLD MINERAL TOTAL URANIUM MINERAL RESERVES INCREASED BY RESERVES INCREASED BY 9% 11% • The mature Sibanye operations planned production levels are • The total uranium Mineral Resources at the operations based on current and expected performance levels, and are increased year-on-year to 95.391Mlb (93.353Mlb as at reliant on the existing stable geology and estimation models. 31 December 2014). • Year-on-year the post production depleted Mineral Resources • The total Uranium Mineral Reserves at the operations of the underground operations Kloof, Driefontein, Beatrix and increased considerably from 3.827Mlb (as at December Cooke reduced to 73.103Moz (compared to 78.124Moz as at 2014) to 14.727Mlb (as at 31 December 2015). 31 December 2014). • Gold Mineral Reserves have increased by 2.294Moz with • The total gold Mineral Reserves at the operations increased the inclusion of Beisa and Burnstone Projects. by 4% to 20.591Moz compared to 19.878Moz as at • Uranium Mineral Reserves have increased by 11.654Mlb 31 December 2014. with the inclusion of the Beisa Project at Beatrix. • Development has commenced at Burnstone subsequent to • Ongoing assessment of secondary reefs and white areas the finalisation of the feasibility study (FS) in 2015. at Kloof and Driefontein, has resulted in the inclusion of • The Kloof drop-down project has proceeded into 1.435Moz gold Mineral Reserves. development phase.
Sibanye Gold Mineral Resources and Mineral Reserves 2015 3 SECTION 1 GROUP OVERVIEW GROUP OVERVIEW
LOCATION OF GOLD OPERATIONS AND PROJECTS
Competency and integrity are Legend key in the Sibanye Mineral Sibanye Resource and Mineral Reserve Witwatersrand Basin Limpopo declaration strategy. The aim is Limpopo sustained delivery and organic Vredefort Dome growth within existing operations and new projects. The Mineral Resources and Mineral Reserves, status and changes at each North West operation and project, are addressed Mpumalanga A WEST WITS within this supplement to the Sibanye Gold Integrated Annual Report 2015, to Randfontein Kloof Operation Westonaria Johannesburg Randfontein a level of detail that ensures competency, North West Carletonville Cooke Operation Balfour Johannesburg transparency and materiality. Potchefstroom Driefontein Operation Westonaria Parys West Rand Tailings Carletonville Retreatment Project A Potchefstroom Balfour B SOUTH RAND Vredefort Welkom B Virginia Burnstone Project Theunissen KwaZulu-Natal C FREE STATE Bloemfontein Beatrix Operation Beisa North Project Northern Cape Lesotho Beisa South Project Welkom Free State Durban SOFS Projects Virginia C Free State Theunissen
T N Eastern Cape Bloemfontein Lesotho 0 100 200km
Sibanye Northern Cape Witwatersrand Basin Western Cape Cape Town Operations Projects
0 100 200km Eastern Cape
Driefontein 1 Plant
4 Sibanye Gold Mineral Resources and Mineral Reserves 2015
Sibanye
Western Cape Witwatersrand Basin
Cape Town Operations Projects
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Gold Mineral Resources (98.8Moz)
10% 19%
16% HEADLINE NUMBERS 7%
20%
28% 31 DECEMBER 2014
103.944Moz 227.379Mlb Beatrix 9.6Moz Cooke 15.9Moz Gold Mineral Resources Uranium Mineral Resources Driefontein 19.8Moz Kloof 28.2Moz 28.425Moz 102.480Mlb WRTRP 6.5Moz Projects 18.8Moz Gold Mineral Reserves Uranium Mineral Reserves
Gold Mineral Reserves (31.0Moz)
12 MONTHS PRODUCTION DEPLETION 1.984Moz 0.187Mlb 13% 14% Gold Mineral Resources Uranium Mineral Resources 5% 1.577Moz 0.291Mlb 21% Gold Mineral Reserves Uranium Mineral Reserves 26%
21% 31 DECEMBER 2015* 98.790Moz 229.852Mlb Beatrix 4.3Moz Cooke 1.5Moz Gold Mineral Resources Uranium Mineral Resources Driefontein 8.2Moz Kloof 6.5Moz MANAGED GOLD MINERAL RESOURCES AND RESERVES SPLIT 31 DECEMBER 2015 AND PROJECT AS AT PER OPERATION WRTRP 6.5Moz Projects 3.9Moz 30.988Moz 113.814Mlb Gold Mineral Reserves Uranium Mineral Reserves Uranium Mineral Resources (229.9Mlb)
BEATRIX COOKE DRIEFONTEIN KLOOF 12% Capex Capex Capex Capex 15% R597m R337m R994m R1,130m
Operating profit Operating profit Operating profit Operating profit 30% R1,425m R(4)m R3,002m R1,914m 43% Gold produced Gold produced Gold produced Gold produced 10,105kg 6,252kg 17,350kg 14,068kg Beatrix 27.0Mlb Cooke 68.4Mlb Main development Main development Main development Main development WRTRP 99.1Mlb Projects 35.4Mlb 21,599m 12,923m 15,704m 17,899m Uranium Mineral Reserves (113.8Mlb) Area mined Area mined Area mined Area mined 416,684m2 204,835m2 384,109m2 307,750m2
10% 3% Yield Yield Yield Yield 2.34g/t 1.08g/t 3.01g/t 3.54g/t
* Refer to tables in following sub-sections for detailed Mineral Resource and Mineral Reserve classifications 87% Notes: • The 31 December 2015 Mineral Resources and Mineral Reserves are net of production depletion • Mineral Reserve gold price of R430,000/kg and long-term contract Mineral Reserve uranium price of R1,140/kg • Mineral Resources are inclusive of Mineral Reserves • Mineral Resources and Mineral Reserves are 100% attributable and managed by Sibanye Beatrix 11.7Mlb Cooke 3.1Mlb MANAGED URANIUM MINERAL RESOURCES AND RESERVES SPLIT PER 31 DECEMBER 2015 AND PROJECT AS AT OPERATION WRTRP 99.1Mlb
Sibanye Gold Mineral Resources and Mineral Reserves 2015 5 SECTION 1 GROUP OVERVIEW CORPORATE GOVERNANCE
The Mineral Resources and Mineral Reserves are supported by ENVIRONMENTAL AND SOCIAL appropriate Mineral Resource management processes and protocols that CONSIDERATIONS As part of the Sibanye Integrated, ensure adequate corporate governance in respect of the intent of the Compliance, Governance and Risk (ICGR) Sarbanes-Oxley Act of 2002 (SOX) framework, the company has initiated a process for improved regulatory risk profile and action plans to address any gaps in REPORTING CODE the identification of risk, level of adequacy Sibanye reports its Mineral Resources and Mineral Reserves in accordance with the SAMREC and effectiveness of control measures. Code, the SAMVAL Code and other relevant international codes such as the SEC Industry Guide 7 This has provided the Environmental for the reporting of Mineral Reserves. The assessment and reporting criteria, as outlined in the and Corporate Affairs Departments with SAMREC Code, have been used in the preparation of internal Competent Persons reports for the a much clearer picture of all the legal Mineral Resources and Mineral Reserves for each of the operations and projects from which the requirements, its risk exposure and numbers stated in this supplement are drawn. what mitigatory actions (compliance risk management plans) need to be put in The process followed in producing the declaration is in alignment with the guiding principles of place to improve and ensure compliance. SOX, and covers the entire Group’s Mineral Resource Management (MRM) function. SOX audits run in parallel with external Mineral Resource and Mineral Reserve audits and strengthen the The following key environmental internal control process, leading to world-class corporate governance practices. legislation and its associated subsequent amendments was identified for every The Sibanye operations operate under new order mining rights in terms of the Mineral and operation and project (where applicable), Petroleum Resources Development of Act, 2002 (Act No 28 of 2002) (MPRDA). All required and will be further subjected to the operating permits have been obtained and are in good standing. compliance methodology:
The gold Mineral Reserve price used for estimation is in accordance with the SEC guidelines and • South African Constitution approximate the three-year trailing average price, as calculated on a monthly basis, based on the • Mineral and Petroleum Resources London afternoon gold price fix. The Mineral Resource gold price used has a premium of ~10% Development Act, 2002 (Act No 28 of over the R/kg Mineral Reserve gold price, representing upside potential leverage to the spot price 2002) (MPRDA) of gold. The uranium Mineral Reserve price used for estimation is based on the long-term outlook • National Environmental price for uranium and is ~3% higher, in South African Rand terms, than the price used for the Management Act, 1998 (Act No 107 31 December 2014 declaration. of 1998) (NEMA) • National Environmental Management: Currency prices used in this declaration are as follows: Biodiversity Act, 2004 (Act No 10 31 Dec 2015 31 Dec 2014 of 2004) Commodity Unit Resource Reserve Resource Reserve • National Environmental Management Waste Act, 2008 (Act No 59 of 2008) Gold R/kg 470,000 430,000 460,000 420,000 (Waste Act)
$/oz 1,277 1,170 1,590 1,450 • National Nuclear Regulator Act, 1999 (Act No 47 of 1999) (NNR) Uranium R/kg* 1,140 1,140 1,110 1,110 • National Environmental Management: Air $/lb 45** 45 56 56 Quality Act, 2004 (Act No 39 of 2004) (Air Quality Act) * Sibanye used a ‘long-term’ Mineral Reserve uranium price for the declaration estimate (three-year average trailing R/kg) • National Water Act, 1998 The Group has proven expertise in exploration, resource modelling, mine planning and (Act No 36 of 1998) reconciliation methodologies for shallow and deep to ultra-deep underground mining operations. • Water Services Act, 1997 (Act No 108 Sibanye constantly reviews and considers the application of international leading practices in of 1997) Mineral Resource management at all its operations and projects. • Mineral and Petroleum Resources Royalty ESTIMATION PRINCIPLES Act, 2008 (Act No 28 of 2008) • Mineral Resource tonnages and grades are estimated in situ over an estimated mining • Hazardous Substances Act, 1973 width, and include mineralisation below the selected cut-off grade to ensure that the Mineral (Act No 15 of 1973) Resources comprise practical mining blocks of adequate size and continuity. Measured and • National Heritage Resources Act, 1999 Indicated Mineral Resources are reported inclusive of those Mineral Resources modified to (Act No 25 of 1999) produce Mineral Reserves. • National Forests Act, 1998 (Act No 84 • Mineral Reserves are that portion of the Mineral Resources which technical and economic of 1998) studies have demonstrated can justify extraction at the time of disclosure (to a minimum pre- • National Road Traffic Act, 1996 feasibility study (PFS) level). Estimates of tonnages and grades quoted as Mineral Reserves (Act No 93 of 1996) include allowances for all mining dilution, all other mining factors (modifying factors) and • Road Transportation Act, 1977 consequently are reported as net tons and grades delivered to the mill. (Act No 74 of 1977) • Estimation and modelling processes protocol includes the following: • Conservation of Agricultural Resources Act, 1983 (Act No 43 of 1983) • The Mineral Resource is divided into domains based on the geological models. The domains may be further sub-divided so as to ensure homogeneity, and are used as the basis for the • National Veld and Forest Fire Act, 1998 (Act No 101 of 1998) geostatistical estimation. Detailed exploratory data analyses, including sample verification,
6 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 1 GROUP OVERVIEW
histogram and cumulative frequency plots for distributional analysis, additive constant estimates, outlier checks, trend analyses, and de-clustering are carried out on individual domains. • The main interpolation methodology utilised is ordinary and simple Kriging of various block sizes including macro-Kriging. Detailed checks are carried out on the Kriged estimates by compiling Kriging efficiencies and Kriging slopes of regression on an individual Kriged block basis. • Variography studies are carried out on point and regularised data. Relative and traditional variograms are used for Kriging purposes. The Resource block widths are projections of the stoping width (SW), and are estimated using a study of the historical channel width/stoping width (CW/SW) relationship derived from the stope sampling records. • Historical statistics are used where unavoidable un-pay areas to be mined are included in the Mineral Resource. The historical percentage un-pay is then added to the portion of blocks above the pay limit, while ensuring there are sufficient Mineral Resources available. • All operations have documented the guidelines and modifying factors that underpin the life of mine (LoM) plans, which are supported by mine designs and schedules. • A detailed one-year operating and capital cost budget is produced and, where appropriate, extended for the LoM production schedule. The operational plan is prepared on a monthly basis, using zero-based costing. Of critical importance is the utilisation of historically achieved data to estimate planned productivity and operating cost. • Only Measured and Indicated Mineral Resources have been included in any PFS or FS. No Inferred Mineral Resources have been included in any of the above-mentioned studies. • Caution should be exercised when interpreting the grade tonnage curves presented. The ability to selectively mine the deposits may be precluded by the deposit geometry, mining method and the need for practical development of the orebody. • Gold and uranium are reported separately, therefore no gold equivalents are stated to avoid potential anomalies because of year-on-year metal price differentials. • Mineral Reserves are estimated using a total cost (excluding capital) pay limit/cut-off grade at a margin, historic cost levels and mining efficiencies at each operation. The conversion ratio from Mineral Resources to Mineral Reserves is further affected by the following key factors: • Mining constraints applied to the extraction, based on the geometry of the geological structures as presently interpreted. • Mining quality factors, such as Mine Call Factor (MCF) and dilution. • Power and utility escalation has been factored into all financial models. • All financial models are based on promulgated tax laws as at 31 December 2015. • The Sibanye operations are entitled to mine all declared material located within their Mining Rights and all necessary statutory mining authorisations and permits are in place or have reasonable expectation of being granted. However, the duration taken for final approval may impact the production schedules. • Uranium is not the commodity of primary interest and is only exploited in areas where the primary commodity (in this case gold) is of economic concern, hence the uranium Mineral Resources are a subset of the gold Mineral Resources and only included where the grades are sufficiently high to warrant the extraction thereof. • All tabulated numbers represent Sibanye’s total managed Mineral Resources and Mineral Reserves unless otherwise stated and all references to tons are metric units.
RELATIONSHIP BETWEEN EXPLORATION RESULTS, MINERAL RESOURCES AND MINERAL RESERVES (SAMREC CODE)
Exploration Results
Mineral Resources Mineral Reserves
Reported as in situ Reported as mineable mineralisation estimates production estimates Increasing level of Inferred geoscientific knowledge and confidence Indicated Probable
Measured Proved
Consideration of mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the ‘modifying’ factors)
Driefontein 7 Shaft bank entrance
Sibanye Gold Mineral Resources and Mineral Reserves 2015 7 SECTION 1 GROUP OVERVIEW
CORPORATE GOVERNANCE CONTINUED
CODE OF PRACTICE DISCOVERY AND EXPLORATION The discovery of gold in quartz-pebble conglomerates on the farm Langlaagte near Johannesburg in March 1886 focused the world’s attention on a sequence of rocks that was to become the greatest source of gold on earth. Initial activities were confined to outcrops but prospectors quickly realised, through geological synthesis and technological innovation, the extension of these rocks under younger cover rocks. Diamond drilling was used as early as 1889 and together with geophysical methods, led to the discovery of the Carletonville Goldfields (West Wits Line) in the 1930s and the Welkom Goldfields in 1946. After the initial discoveries, extensive exploration, using a combination of surface exploration drilling and geophysical methods, led to the discovery of the Sibanye operations (a detailed history of each operation is captured on the back of the shareholders’ plan of each operation which are attached as fold-outs at the end of this document).
Exploration drilling during the discovery period of the Sibanye operations and projects was executed from surface, on irregular grids of 500m to 2,000m depending on the exploration strategy, depth of the mineralised horizons and geological uncertainty. Once in operation with underground access established, infill grade control drilling is conducted from access haulages and cross-cuts to provide a 30m to 100m grid depending on geological requirements, evaluation and safety.
In the interests of proactive geological understanding, Sibanye’s exploration strategy includes the following: • Initial (discovery and secondary reefs) and infill (resource definition enhancement) exploration drilling (current and new projects) • Timeous prospect development • Reducing localised uncertainty inherent to the deposit at current operations • Grade-control drilling on current operations • Exploratory visits to previously mined areas to confirm structure and facies
A continuous Mineral Resource definition programme is in place at each operation and project in order to facilitate better planning and optimisation with appropriate lead time, and to ensure robust geological and evaluation models that will underpin the resource definition of the various reefs mined. The programme will confirm the orebody potential in all areas of operation, including secondary reefs and secondary uranium potential.
QUALITY ASSURANCE AND QUALITY CONTROL Sibanye upholds rigorous Quality Assurance and Quality Control (QA/QC) procedures on all of its exploration drilling and sampling programmes (including underground chip sampling). It follows industry best practice in data acquisition, ensuring data reliability, and utilises analytical laboratories which are frequently reviewed, both internally and externally. Analytical QA/QC is maintained and enforced through the submission of blanks, certified reference material, duplicate samples, umpire laboratory checks and density measurements.
Laboratories currently used by Sibanye and their related South African National Accreditation System (SANAS) facility accreditation numbers are as follows: • Sibanye Analytical Laboratory (Driefontein), Reg No. 2002/031431/07 (SANAS Facility Accreditation No. T0379) • Performance Laboratory (Randfontein), Reg No. 1996/01447/07 (now part of SGS) (SANAS Facility Accreditation No. T0265) • Performance Laboratory (Allanridge), Reg No. 1996/01447/07 (now part of SGS) (SANAS Ezulwini processing plant Facility Accreditation No. T0385) • The process to achieve SANAS accreditation for the Beatrix Analytical Laboratory (Reg No. 2002/031431/07) will be completed in C2016
The QA/QC of borehole data is handled through the Sibanye Borehole Management System. This software is developed by Century Systems and Datamine and comprises ‘DH Logger’ for borehole log inputs, and the Fusion sequel (SQL) database. The underground gold assay values are kept in digital format in Sibanye Integrated Resource and Reserve Information System (IRRIS) under the MineRP Sampling System. The database’s integrity is maintained by the initial authorisation of all sampling data. Final submission of each sample into the IRRIS database is only completed following a series of checks and approvals in the Borehole Management System or the MineRP Sampling System.
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The long mining history and the quantity and quality of the data upon which the Mineral Resource and Mineral Reserve estimates are based, are sufficient to support the estimates as derived. The Borehole Management and IRRIS Systems provide an auditable trail from sampling through to the Mineral Resource and Mineral Reserve estimates. MINERAL RESOURCE AND MINERAL RESERVE EVALUATION The Mineral Resource and Mineral Reserve evaluation is based on systematic and sustainable mineral reporting practices compliant with the SAMREC Code. Data from exploration drilling, underground mapping and prospect drilling is used to generate or update the geological models, which in turn are used as the basis of each declaration. At current operations, ongoing grid-based sampling of all development and stoping provides additional data which is incorporated into a detailed evaluation model.
Mineral Resource categories are based upon the quantity, distribution and quality of data available and confidence attached to the data, i.e. drilling, geological understanding, interpretation and mapping, sampling, analytical data and geostatistical relationships. Drilling, sampling and analytical QA/QC also plays a major part in the data confidence applied for the final classification.
Peer reviews, together with internal and external audits, ensure consistency and compliance with regulatory codes. Mineral Resources and Mineral Reserves are reported within each individual mining or prospecting right and are adjusted to show the separation between above (AI) and below (BI) current shaft infrastructure.
Sibanye Mineral Resources and Mineral Reserves are reviewed and audited on an ongoing basis by internal Competent Persons, with formal audits conducted as follows: • Ongoing technical review of all the operations and projects • Annual executive review of all operations and projects
In addition to the internal audits, the December 2015 statement was reviewed and audited by external auditors AMEC Foster Wheeler Plc (Mineral Resources) and by the Mineral Corporation Pty Ltd (Mineral Reserves), and was found to comply with the relevant codes. No material shortcomings were identified in any of the processes by which the Sibanye Mineral Resources and Mineral Reserves were compiled and evaluated.
The 31 December 2015 declaration reports on Mineral Resource and Mineral Reserve information that is rated important for disclosure and that reflects a level of detail required for competency, transparency and materiality in reporting.
COMPETENT PERSONS AND DECLARATION CONSENT The Competent Persons designated in terms of SAMREC who take responsibility for the reporting of Mineral Resources and Mineral Reserves are the respective operation (per mining unit) and project based Mineral Resource Manager or Manager Geology. The Competent Persons have sufficient experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye. Competent Persons’ consent and confirmation signatures are presented in each individual Competent Person’s Report per operation and project, which can be viewed on the company’s website at www.sibanyegold.co.za. Operational and project based Competent Persons are acknowledged in the pertinent section concerned in this Mineral Resources and Mineral Reserves Supplement.
Corporate Governance on the overall compliance of the company’s figures and responsibility for the generation of a Group consolidated statement has been overseen by the Libanon Business Park Technical Services team listed below. This team, whose members consent to the disclosure of the C2015 Mineral Resource and Mineral Reserve Statement, are permanent employees of Sibanye, and function independently of the operating mines and projects.
Competent Person Title Qualifications Years Gerhard Janse van Vuuren1 PMS0243 VP Mine Technical Services B Tech (Mineral Resource Management); GDE 28 (Mining Engineering); MBA; MSCC Johan van Eeden2 400043/09 Manager Geology MSc. (Geology) 32 Leon Tolmay3 704140 Manager Evaluation NHD (Mine Survey); GDE (Mining Engineering); MSCC 39 Steven Wild3 706556 Manager Mine Planning GDE (Mining Engineering); NHD MRM 20 Werner de Klerk1 PMS0233 Manager Survey GDE (Mining Engineering); MSCC; ND Survey 33 1 Registered South African Council for Professional and Technical Surveyors (PLATO) member 2 Registered South African Council for Natural Scientific Professions (SACNASP) members 3 Registered South African Institute of Mining and Metallurgy (SAIMM) members Note: Details of professional organisations to which the respective Competent Persons are affiliated to are listed at the end of the report under Supplementary information
Sibanye Gold Mineral Resources and Mineral Reserves 2015 9 SECTION 1 GROUP OVERVIEW GROUP CONSOLIDATED MINERAL RESOURCE AND MINERAL RESERVE STATEMENT
Gold Mineral Resources comparison 40 The graphs depict the Group’s
29.329 managed gold and uranium 30 28.186
22.880 Mineral Resources and 19.786 18.828 20 18.828
16.589 Mineral Reserves as at 15.911 Gold (Moz)
9.859 31 December 2015, split per 10 9.592 6.486 6.459 operation and projects and is 0 compared to the 31 December Beatrix Cooke Driefontein Kloof WRTRP Projects 2014 declaration. December 2014 December 2015
Gold Mineral Reserves comparison 10 8.196
8 7.354 6.900 6.546 6.486 6.459 6 4.326 3.911 4 3.669 Gold (Moz) 2.088 1.955
2 1.523
0 Beatrix Cooke Driefontein Kloof WRTRP Projects December 2014 December 2015
Uranium Mineral Resources comparison 125 99.088 100 98.653 68.423
75 66.385
50 35.373 35.373 Uranium (Mlb) 26.968 26.968 25
0 Beatrix Cooke WRTRP Projects December 2014 December 2015
Uranium Mineral Reserves comparison 125 99.088 100 98.653
75
50 Uranium (Mlb) 25 11.654 3.827 3.073 0 Beatrix Cooke WRTRP December 2014 December 2015 Cooke gold pour
10 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 1 GROUP OVERVIEW GROUP CONSOLIDATED MINERAL RESOURCE AND MINERAL RESERVE STATEMENT
Gold and uranium Mineral Resource and Mineral Reserve classification details are itemised in the respective tables below.
All stated Mineral Resources and Mineral Reserve estimates are net of 12 months production depletion with the 31 December 2014 declaration, where appropriate, also tabulated for an appraised comparison.
CLASSIFIED GOLD MINERAL RESOURCE AND MINERAL RESERVE STATEMENT1 Mineral Resources Mineral Reserves
31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014 Gold classification per Tons Grade Gold Gold classification per Tons Grade Gold operation/project (Mt) (g/t) (Moz) Gold (Moz) operation/project (Mt) (g/t) (Moz) Gold (Moz)
OPERATIONS OPERATIONS BEATRIX BEATRIX Measured AI 26.6 5.7 4.857 3.792 Proved AI 20.1 3.7 2.389 1.706 Indicated AI2 22.2 5.2 3.677 5.332 Probable AI2 18.1 3.2 1.875 1.892 Inferred AI 0.0 3.3 0.004 0.004 Total AI 48.8 5.4 8.538 9.128 Total AI 38.2 3.5 4.264 3.598 Indicated BI3 6.9 4.4 0.991 0.660 Beatrix – Beatrix – total underground 55.8 5.3 9.530 9.788 total underground 38.2 3.5 4.264 3.598 COOKE COOKE Measured AI 8.5 5.7 1.566 3.175 Proved AI 6.8 4.7 1.014 1.555 Indicated AI 34.7 7.1 7.969 7.659 Probable AI 3.1 4.6 0.457 0.286 Inferred AI 11.9 6.1 2.326 1.643 Total AI 55.1 6.7 11.862 12.477 Total AI 9.8 4.7 1.471 1.841 Inferred BI4 40.7 3.1 3.998 3.998 Cooke – Cooke – total underground 95.8 5.1 15.860 16.475 total underground 9.8 4.7 1.471 1.841 DRIEFONTEIN DRIEFONTEIN Measured AI 18.9 10.7 6.503 8.229 Proved AI 17.9 7.2 4.133 2.716 Indicated AI 7.5 12.7 3.053 4.088 Probable AI 8.6 6.7 1.846 3.387 Inferred AI 0.7 14.6 0.314 0.550 Total AI 27.0 11.4 9.870 12.867 Total AI 26.4 7.0 5.980 6.103 Indicated BI5 28.0 10.9 9.821 9.684 Probable BI5 9.1 7.3 2.122 1.126 Inferred BI5 0.204 Total BI 28.0 10.9 9.821 9.888 Total BI 9.1 7.3 2.122 1.126 Driefontein – Driefontein – total underground 55.0 11.1 19.691 22.755 total underground 35.5 7.1 8.102 7.228 KLOOF KLOOF Measured AI 14.4 13.4 6.196 9.618 Proved AI 19.6 7.7 4.857 2.932 Indicated AI 1.2 12.4 0.468 0.775 Probable AI 4.6 6.9 1.024 3.243 Total AI 15.5 13.3 6.664 10.393 Total AI 24.2 7.6 5.881 6.175 Indicated BI6 24.6 14.2 11.246 8.538 Indicated BI6 2.1 7.4 0.502 0.532 Inferred BI6 16.4 19.2 10.112 10.175 Total BI 41.0 16.2 21.359 18.713 Total BI 2.1 7.4 0.502 0.532 Kloof – Kloof – total underground 56.6 15.4 28.023 29.106 total underground 26.3 7.5 6.383 6.706
Sibanye Gold Mineral Resources and Mineral Reserves 2015 11 SECTION 1 GROUP OVERVIEW GROUP CONSOLIDATED MINERAL RESOURCE AND MINERAL RESERVE STATEMENT CONTINUED
CLASSIFIED GOLD MINERAL RESOURCE AND MINERAL RESERVE STATEMENT1 Mineral Resources Mineral Reserves
31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014 Gold classification per Tons Grade Gold Gold classification per Tons Grade Gold operation/project (Mt) (g/t) (Moz) Gold (Moz) operation/project (Mt) (g/t) (Moz) Gold (Moz) Operations – Operations – total underground 263.2 8.6 73.103 78.124 total underground 109.8 5.7 20.219 19.374
Surface Rock Dumps (SRD) and Tailings Storage Facilities (TSF) Surface Rock Dumps (SRD) and Tailings Storage Facilities (TSF) Beatrix (Indicated) 5.3 0.4 0.062 0.071 Beatrix (Probable) 5.3 0.4 0.062 0.071 Randfontein surface Randfontein surface (Measured) 4.7 0.3 0.052 0.086 (Proved) 4.7 0.3 0.052 0.086 Randfontein surface Randfontein surface (Indicated) 0.028 (Probable) 0.028 Driefontein (Indicated) 4.6 0.6 0.094 0.125 Driefontein (Probable) 4.6 0.6 0.094 0.125 Kloof (Indicated) 9.5 0.5 0.163 0.223 Kloof (Probable) 9.5 0.5 0.163 0.194 Operations – total Operations – total surface (SRD and TSF) 24.1 0.5 0.372 0.533 surface (SRD and TSF) 24.1 0.5 0.372 0.504 Total operations (incl. SRD and TSF – excl. Projects) Total operations (incl. SRD and TSF – excl. Projects) Beatrix 61.1 4.9 9.592 9.859 Beatrix 43.5 3.1 4.326 3.669 Cooke 100.5 4.9 15.911 16.589 Cooke 14.5 3.3 1.523 1.955 Driefontein 59.6 10.3 19.786 22.880 Driefontein 40.1 6.4 8.196 7.354 Kloof 66.1 13.3 28.186 29.329 Kloof 35.8 5.7 6.546 6.900 Operations – Operations – total (incl. SRD and TSF) 287.3 8.0 73.475 78.657 total (incl. SRD and TSF) 134.0 4.8 20.591 19.878
PROJECTS PROJECTS BEISA NORTH* BEISA NORTH Inferred 14.8 3.4 1.619 1.619 Beisa North – Beisa North – total underground 14.8 3.4 1.619 1.619 total underground BLOEMHOEK* BLOEMHOEK Indicated 27.4 4.7 4.163 4.163 Inferred 0.9 4.9 0.135 0.135 Bloemhoek – Bloemhoek – total underground 28.3 4.7 4.297 4.297 total underground BURNSTONE BURNSTONE Indicated 25.4 5.3 4.350 4.350 Probable 13.0 4.3 1.799 Inferred 28.7 4.9 4.540 4.540 Burnstone – Burnstone – total underground 54.1 5.1 8.890 8.890 total underground 13.0 4.3 1.799 DE BRON DE BRON MERRIESPRUIT* MERRIESPRUIT Indicated 23.0 4.5 3.307 3.307 Probable 15.4 4.3 2.112 2.088 Inferred 5.3 4.2 0.715 0.715 De Bron Merriespruit – De Bron Merriespruit – total underground 28.3 4.4 4.022 4.022 total underground 15.4 4.3 2.112 2.088 Projects – Projects – total underground 125.5 4.7 18.828 18.828 total underground 28.4 4.3 3.911 2.088
12 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 1 GROUP OVERVIEW
CLASSIFIED GOLD MINERAL RESOURCE AND MINERAL RESERVE STATEMENT1 Mineral Resources Mineral Reserves
31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014 Gold classification per Tons Grade Gold Gold classification per Tons Grade Gold operation/project (Mt) (g/t) (Moz) Gold (Moz) operation/project (Mt) (g/t) (Moz) Gold (Moz)
WRTRP WRTRP Measured 662.5 0.3 5.962 5.935 Proved Indicated 52.3 0.3 0.524 0.524 Probable 714.8 0.3 6.486 6.459 WRTRP – WRTRP – total surface 714.8 0.3 6.486 6.459 total surface 714.8 0.3 6.486 6.459 Projects – total surface 714.8 0.3 6.486 6.459 Projects – total surface 714.8 0.3 6.486 6.459 Projects – Projects – total underground total underground and surface 840.3 0.9 25.314 25.287 and surface 743.2 0.4 10.397 8.547 Grand total – Grand total – underground underground and surface 1,127.6 2.7 98.790 103.944 and surface 877.1 1.1 30.988 28.425
Al: Above Infrastructure Bl: Below Infrastructure Mineral Resources are inclusive of Mineral Reserves All tons (t) are expressed in metric units Rounding-off of figures may result in minor computational discrepancies. Where this happens, it is not deemed significant Cut-off grades have been calculated in accordance with the SEC Guidelines for mineral pricing and approximate the historic two- to 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 R470,000/kg and the Gold Mineral Reserves at R430,000/kg 1 Managed, unless otherwise stated 2 Beatrix Indicated Mineral Resources AI and Probable Mineral Reserves includes the Beisa Project 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
Sibanye Gold Mineral Resources and Mineral Reserves 2015 13 SECTION 1 GROUP OVERVIEW GROUP CONSOLIDATED MINERAL RESOURCE AND MINERAL RESERVE STATEMENT CONTINUED
CLASSIFIED URANIUM MINERAL RESOURCE AND MINERAL RESERVE STATEMENT1 Mineral Resources Mineral Reserves
31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014 Uranium Uranium
classification per Tons Grade U3O8 U3O8 classification per Tons Grade U3O8 U3O8 operation/project (Mt) (kg/t) (Mlb) (Mlb) operation/project (Mt) (kg/t) (Mlb) (Mlb)
OPERATIONS OPERATIONS BEATRIX2 BEATRIX2 Measured AI 3.6 1.086 8.548 8.548 Proved AI Indicated AI 7.8 1.069 18.330 18.330 Probable AI 7.4 0.715 11.654 Inferred AI 0.0 1.101 0.090 0.090 Beatrix (Beisa) – Beatrix (Beisa) – total underground 11.4 1.074 26.968 26.968 total underground 7.4 0.715 11.654 COOKE COOKE Measured AI 4.9 0.447 4.873 5.697 Proved AI 2.7 0.348 2.056 3.388 Indicated AI 11.0 0.476 11.546 15.987 Probable AI 1.5 0.314 1.017 0.439 Inferred AI 6.7 0.546 8.020 0.717 Total AI 22.6 0.490 24.439 22.401 Total AI 4.2 0.336 3.073 3.827 Inferred BI3 35.9 0.555 43.984 43.984 Cooke – Cooke – total underground 58.5 0.530 68.423 66.385 total underground 4.2 0.336 3.073 3.827 Operations – Operations – total underground 69.9 0.619 95.391 93.353 total underground 11.5 0.579 14.727 3.827
PROJECTS PROJECTS BEISA NORTH BEISA NORTH Inferred 14.8 1.084 35.373 35.373 Beisa North – Beisa North – total underground 14.8 1.084 35.373 35.373 total underground Projects – Projects – total underground 14.8 1.084 35.373 35.373 total underground WRTRP WRTRP Measured 654.3 0.062 89.151 88.717 Proved Indicated 52.3 0.086 9.936 9.936 Probable 706.6 0.064 99.088 98.653 WRTRP – WRTRP – total surface 706.6 0.064 99.088 98.653 total surface 706.6 0.064 99.088 98.653 Projects – Projects – total surface 706.6 0.064 99.088 98.653 total surface 706.6 0.064 99.088 98.653 Projects – total Projects – total underground and underground and surface 721.4 0.085 134.461 134.026 surface 706.6 0.064 99.088 98.653 Grand total – Grand total – underground and underground and surface 791.3 0.132 229.852 227.379 surface 718.1 0.072 113.814 102.480
Al: Above Infrastructure All tons (t) are expressed in metric units Mineral Resources are inclusive of Mineral Reserves Rounding-off of figures may result in minor computational discrepancies. Where this happens, it is not deemed significant For uranium Mineral Reserves, a long-term contract price of R1,140/kg was used 1 Managed, unless otherwise stated 2 Beatrix includes uranium Mineral Resources and Mineral Reserves from the Beisa Project 3 Cooke Inferred Mineral Resources BI refers to material within the Cooke 4 Shaft prospecting right (Zuurbekom)
14 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 1 GROUP OVERVIEW GROUP MINERAL RESOURCE AND MINERAL RESERVE DEPLETION AND GROWTH
DEPLETION AND GROWTH OUTLINE Quality Mineral Reserves are the foundation of wealth and future security of Sibanye, and Mineral SUMMARISED Reserve sustainability is reliant on a sound brownfield and growth project stream. PROJECT REVIEW Key aspects that impacted the 31 December 2015 Statement of Mineral Resources and Mineral BURNSTONE PROJECT Reserves were: Following the completion of a FS and the initiation of full-scale development, • Gold Mineral Reserves for the Group increased by 9% to 31.0Moz from 28.4Moz declared at a maiden gold Mineral Reserve 31 December 2014 despite depletion of 1.6Moz in C2015. of 1.8Moz was declared for the • Uranium Mineral Reserves for the Group increased by 11% to 113.8Mlb with a maiden Burnstone Project. Mineral Reserve declared at Beatrix’s Beisa Project. WEST RAND TAILINGS • Gold Mineral Reserves at Operations increased by 0.7Moz or 4% to 20.6Moz, from 19.9Moz RETREATMENT PROJECT declared at December 2014, despite depletion of 1.6Moz in 2015. The WRTRP entails processing the historic tailings storage facility (TSF) • The Group again made significant gains in the exploration of ‘secondary reefs’ at Kloof and of the Driefontein, Kloof and Cooke Driefontein, specifically in the Middelvlei (MVR) and Kloof Reef (KR) horizons. There is also a operations for gold and uranium. The comprehensive review and investigation programme in place to identify previously unmined definitive feasibility study (DFS) for areas with economic potential (white areas). These interventions resulted in additional gold this project was completed in C2015. Mineral Reserves of 1.4Moz. The project has an estimated gold and • A maiden gold Mineral Reserve of 1.8Moz was declared at the Burnstone Project, following the uranium Mineral Reserve of 6.5Moz and 99.1Mlb respectively. completion of a FS, and the initiation of the full-scale development of the operation. • Maiden gold and uranium Mineral Reserves of 0.5Moz and 11.7Mlb respectively were SOFS declared for the Beisa Project at Beatrix West. DE BRON MERRIESPRUIT PROJECT The gold Mineral Reserves for the SUMMARISED OPERATION REVIEW De Bron Merriespruit Project are re- BEATRIX estimated, based on additional work Beatrix is an established, low-cost, high-productivity asset with a LoM extending up to 2029. done on the production design and The Mineral Resources include 9.6Moz gold and 27.0Mlb uranium. Gold Mineral Reserves schedule in C2015. The production increased by 18% net of production depletion to 4.3Moz in C2015 due to an extended life design and schedule was modified to fall in line with geological and at Beatrix West, as well as a maiden Reserve being declared at the Beisa Project (0.5Moz). estimation models, which were Uranium Mineral Reserves for the Beisa Project are estimated at 11.7Mlb. The underground restated following the acquisition of production is supplemented by a low-cost surface operation treating historic rock dumps, which Wits Gold in 2014. The gold Mineral is estimated at 0.1Moz. Reserves, however, remain constant DRIEFONTEIN at 2.1Moz. Driefontein is a high-yield, medium- to long-term operation with Mineral Resources of 19.8Moz BLOEMHOEK PROJECT and Mineral Reserves of 8.2Moz, with a LoM extending to 2042. The Mineral Reserves increased The Bloemhoek Project, which is by 11% net of depletion from the previous year, mainly due to the extension of the area accessible adjacent to Beatrix North, has Mineral through the drop-down project at 5 Shaft and additional economically mineable secondary reefs Resources of 4.3Moz. A study to and white areas previously excluded. The underground production is supplemented by a low-cost access a portion of this area with a surface operation treating historical rock dumps, which is estimated at 0.1Moz. decline system from Beatrix North has commenced and is due for completion KLOOF in 2016. Concurrently, an exploration Kloof is a high-yield medium- to long-term operation, with Mineral Resources of 28.2Moz and programme, designed to improve Mineral Reserves of 6.5Moz, with a LoM extending to 2033. The Mineral Reserves decreased by geological confidence in the immediate 5% with production depletion mitigated by additional Mineral Reserves from secondary reefs and vicinity of the planned decline system, white areas. The underground production is also supplemented by a low-cost surface operation will also be completed. treating historical rock dumps, which is estimated at 0.2Moz.
COOKE Cooke is a low-cost, short- to medium-term asset, producing both gold and uranium. The current LoM is estimated to extend to 2023. The operation has gold Mineral Resources of approximately 16.0Moz and gold Mineral Reserves of 1.5Moz. Uranium Mineral Resources at the operation are 68.4Mlb and the uranium Mineral Reserves 3.1Mlb. The gold and uranium Mineral Reserves have decreased year-on-year mainly due to an increase in the pay limit, as well as the suspension of the mechanised mining section at Cooke 1 Shaft. The underground production is supplemented by a low-cost surface operation treating historical tailings storage facilities (gold Mineral Reserves estimated at 0.1Moz).
Sibanye Gold Mineral Resources and Mineral Reserves 2015 15 SECTION 1 GROUP OVERVIEW
GROUP MINERAL RESOURCE AND MINERAL RESERVE DEPLETION AND GROWTH CONTINUED
GOLD MINERAL RESOURCE RECONCILIATION Factors Gold (Moz) 31 December 2014 103.944 2015 depletion (1.984) Post-depletion 101.960 Changes in geology structure at operations 0.641 Changes in estimation models at operations due to additional sampling (0.053) Changes in geostatistical modelling parameters at operations 0.874 Specific inclusions: Deposition to active TSFs which form part of the WRTRP 0.027 Additional surface sources (SRDs) at Driefontein, Kloof and Beatrix 0.024 Specific exclusions: Resource blocks clean-up (0.608) Uneconomical areas excluded (3.308) Exclusion of inaccessible areas at Cooke 4 Shaft (0.767) 31 December 2015 98.790
Gold Mineral Resource reconciliation 120,000 103,944 874 101,960 641 27 24 98,790 100,000 (608) (1,984) (53) (3,308) (767) 80,000 60,000
Gold (’000oz) 40,000 20,000 0 31 Dec 2014 31 Dec 2015 2015 Depletion Post-depletion Changes in geology Changes in estimation Uneconomical exclusions Deposition to active TSFs Resource blocks clean-up Additional surface sources Inaccessible areas Cooke 4 Changes in geostatistical modelling
Driefontein 10 Shaft
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Kloof 7 Shaft
16 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 1 GROUP OVERVIEW
GOLD MINERAL RESERVE RECONCILIATION Factors Gold (Moz) LoM 31 December 2014 28.425 2015 depletion (1.577) Post-depletion LoM 26.848 Changes in geology structure at operations (0.081) Changes in estimation models at operations (0.845) Technical factors [Mine Call Factor (MCF), % waste mining] 0.452 Specific inclusions: Driefontein 5 Shaft drop-down project extension beyond inner core 1.016 Beatrix Beisa Project maiden Mineral Reserve 0.495 Revised mining method applied to De Bron Merriespruit Project 0.024 Burnstone Project maiden Mineral Reserve 1.799 Beatrix South G-Block Project 0.108 White areas and general additions mainly at Driefontein 8 Shaft and Beatrix West 1.073 Secondary reefs at Driefontein 8 Shaft and Kloof 8 Shaft 0.362 Deposition to active TSFs which form part of the WRTRP 0.027 Additional SRDs at Driefontein, Kloof and Beatrix 0.054 Specific exclusions: Beatrix South 2 Shaft decommissioned (0.113) Uneconomic areas excluded, mainly from Cooke (0.230) LoM 31 December 2015 30.988
Gold Mineral Reserve reconciliation 35,000 362 27 54 30,988 1,799 108 1,073 30,000 28,425 1,016 495 24 (113) (230) 26,848 452 25,000 (1,577) (81) (845) 20,000 15,000
Gold (’000oz) 10,000 5,000 0 White areas 31 Dec 2014 31 Dec 2015 Secondary reef 2015 Depletion Post-depletion DBM revised layout Changes in geology Beisa Project maiden Beatrix South G-Block Changes in estimation Uneconomic exclusions echnical factors (mine) Driefontein 5 Shaft drop T Deposition to active TSFs Additional surface sources Burnstone Project inclusion Beatrix 2 Shaft decommissioned
Sibanye Gold Mineral Resources and Mineral Reserves 2015 17 SECTION 1 GROUP OVERVIEW GROUP MINERAL RESOURCE AND MINERAL RESERVE DEPLETION AND GROWTH CONTINUED
URANIUM MINERAL RESOURCE RECONCILIATION
Factors U3O8 (Mlb) 31 December 2014 227.379 2015 depletion (0.187) Post-depletion 227.193 Changes in estimation models at operations due to additional sampling 0.427 Specific inclusions: Deposition to active TSFs which form part of the WRTRP 0.435 Specific exclusions: Uneconomical areas excluded 3.899 Resource blocks re-definition (2.102) 31 December 2015 229.852
Uranium Mineral Resource reconciliation 250,000 227,379 227,193 427 435 3,899 229,852 (187) (2,102) 200,000
150,000
100,000 Uranium (’000lb) 50,000
0 31 Dec 2014 31 Dec 2015 Post depletion 2015 Depletion Depostion to TSFs Changes in estimation Uneconomical exclusions Resource blocks re-definition URANIUM MINERAL RESERVE RECONCILIATION
Factors U3O8 (Mlb) 31 December 2014 102.480 2015 depletion (0.291) Post-depletion 102.189 Changes in estimation models at operations 0.341 Exclusions at Cooke 3 Shaft and Cooke 4 Shaft due to tail management (0.804) Specific inclusions: Beatrix Beisa Project maiden Mineral Reserve 11.654 Deposition to active TSFs which form part of the WRTRP 0.435 31 December 2015 113.814
Uranium Mineral Reserve reconciliation 150,000 11,654 120,000 435 113,814 102,480 102,189 341 90,000 (291) (804)
60,000 Uranium (’000lb) 30,000
0 31 Dec 2014 31 Dec 2015 Post depletion 2015 Depletion Beisa inclusion Depostion to TSFs Changes in estimation Cooke 4 Shaft Exclusions at Cooke 3 and 4
18 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 1 GROUP OVERVIEW
GOLD MINERAL RESERVE SENSITIVITY The sensitivities of gold Mineral Reserve ounces at all the operations are shown in the accompanying chart at -10%, -5%, Base (R430,000), +5% and +10%, and are derived from a factored application of the base-case scheduled Mineral Reserve, reflecting the impact of a changing gold price on the prevailing cut-offs.
The Mineral Reserve sensitivities are not based on detailed depletion schedules and should be considered on a relative and indicative basis only. WRTRP included across the range at the base declaration price and growth projects (Beisa North, Beatrix Beisa, Bloemhoek and Burnstone) were declared at a premium of 10% over the reserve price.
Managed gold Mineral Reserve sensitivities 35,000 30,000 2,112 2,162 2,207 1,795 1,799 1,801 1,803 25,000 6,486 6,486 6,486 6,486 6,486 20,000 6,528 6,544 6,546 6,537 6,521 15,000 Gold (’000oz) 10,000 7,868 8,042 8,196 8,329 8,442 5,000 1,382 1,524 1,523 1,519 1,513 4,057 4,088 4,326 4,626 4,642 0 -10% -5% R430,000 5% 10% Gold Price (R/kg) Beatrix Cooke Driefontein Kloof WRTRP Burnstone De Bron Merriespruit
Driefontein 8 Shaft bank area
Sibanye Gold Mineral Resources and Mineral Reserves 2015 19 SECTION 2 OPERATIONS AND PROJECTS HOME PRINT BACK NEXT
OPERATIONS AND PROJECTS
Sibanye is the largest individual producer of gold in South Africa and is one of the 10 largest gold producers globally.
Beatrix headgear
20 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS
FORECAST GOLD PRODUCTION BASED ON THE C2016 LOM PLAN
WRTRP 50,000 Burnstone DBM K4 Depth Ext. 40,000 D5 Depth Ext. Beisa Kloof 30,000 Driefontein
Kg Cooke Beatrix 20,000 Gold Fields 2012 Harvest Plan
10,000
0 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042
OVERVIEW Sibanye’s portfolio of operating assets includes the Beatrix, Cooke, Driefontein and Kloof operations. The Group’s new and exciting project opportunities include Burnstone, the drop-down project at Kloof, Beatrix (Beisa Project), Driefontein depth-extension project, Southern Orange Free State Projects (SOFS) and WRTRP.
Gold Mineral Reserves at the Group’s current operations increased by 0.7Moz or 3.6% to 20.591Moz from the 19.878Moz declared at 31 December 2014 despite a production depletion of 1.577Moz in 2015.
BEATRIX COOKE
Gold produced Gold produced Mineral Reserves Mineral Reserves 10,105kg 4.326Mlb 6,252kg 1.523Moz Uranium produced Uranium produced Mineral Reserves Mineral Reserves 11.654Mlb 79,839kg 3.073Mlb
DRIEFONTEIN KLOOF
Gold produced Gold produced Mineral Reserves Mineral Reserves 17,350kg 8.196Moz 14,068kg 6.546Moz
Sibanye Gold Mineral Resources and Mineral Reserves 2015 21 SECTION 2 OPERATIONS AND PROJECTS HOME PRINT BACK NEXT
OPERATIONS AND PROJECTS CONTINUED
GEOLOGICAL SETTING Gold was first discovered near Johannesburg in March 1886 with the recognition of gold in quartz- pebble conglomerates (traditionally termed ‘reefs’). The gold bearing 6,000m thick succession of principally argillaceous and arenaceous sediments is called the Witwatersrand Basin.
The basin is geographically located in the central north to north-eastern part of South Africa and extends from Johannesburg in the north to some 40km south of Welkom, and covers an area of approximately 70,000km2. More than 150 mines have operated in the basin since gold was first discovered, primarily producing gold, but since the early 1950s additionally uranium. Together, these mines have produced approximately 150,000 tons of uranium and more than 46,000 tons of gold, amounting to no less than 39% of all gold ever mined in the world. The Sibanye operations are hosted in this unique and renowned basin, which remains the world’s single largest gold- producing region.
The Sibanye operations and projects are located in three geographical regions of the Witwatersrand VCR buckshot pyrite Basin, namely the Far West Rand Goldfield (West Rand and West Wits Line), some 30km to 80km west to south-west of Johannesburg, the Free State Goldfield, 240km south-west of Johannesburg and the South Rand Goldfield, some 75km south-east of Johannesburg. The operations of the Far West Rand Goldfield are the Driefontein, Kloof and Cooke Operations between the towns of Carletonville and Randfontein, in the Free State Goldfield, the Beatrix Operation near Virginia and in the South Rand Goldfield, the Burnstone Project near Balfour some 30km east of Heidelberg.
The Witwatersrand Basin is overlain by outliers of Karoo Supergroup shales and sandstones at the surface, followed by Pretoria Group sediments and the Chuniespoort Group dolomites. The dolomite overlies the Klipriviersberg Group volcanic rocks which, in turn, cap the Ventersdorp Contact Reef (VCR) and sediments of the Central Rand Group that host the other gold-bearing reefs exploited.
The reefs, which are generally less than 2m thick, are widely considered to represent extensive fluvial deposits into a yoked basin. The gold is mainly of detrital origin, deposited syngenetically with the conglomerates interrelated with sedimentary features such as unconformities and fluvial UE1A mineralised conglomorate channels. Deposition took place along the interface between a fluvial system that brought the sediments and heavy minerals from an elevated source-area, and a lacustrine littoral system that reworked the material and redistributed the finer sediments along the shoreline of an intra- cratonic lake or shallow inland sea.
Although the gold generally occurs in native form and is usually associated with pyrite, carbon and uranium, most of it has been subsequently modified and remobilised during secondary hydrothermalism. This has informed the use of the modified palaeo-placer model, which emphasises a control on the occurrence of ore minerals by placer-forming mechanisms, while accepting some modification by metamorphism. It is the generally accepted model for the origin of gold and uranium mineralisation of the Witwatersrand Basin.
For several decades, models using sedimentological principles have been successfully used to define gold distribution on mine properties. The most fundamental control to the gold distribution remains the association with quartz-pebble conglomerates on intra-basinal unconformities. The VCR Reef reefs are continuous, as a consequence of the regional nature of the erosional surfaces. Bedrock (footwall) controls govern the distribution of many of the reefs. Consequently, the identification and modelling of erosional/sedimentary features are the keys to in situ resource estimation.
As early as 1923, the presence of uranium was noted in the Witwatersrand conglomerates. The changing economics regarding uranium near the end of World War II prompted a second look at the Witwatersrand conglomerates as a source of supply. It was found that on average the conglomerates contain about 0.03% uranium and, as a by-product of gold, relatively low uranium grades can be recovered.
Notwithstanding different opinions as to the origin of the uranium in the conglomerates of the Witwatersrand Basin, most theories accept localisation of both gold and uranium as a function of sedimentary textures. Mineral concentrations are directly related to conglomerate formations. Exploration programmes and evaluation of uranium as per the placer philosophy, have proved to be successful. VCR D Facies
22 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS
EXPLORATION ACTIVITIES 2015 Over the past 12 months, on-mine exploration activities focused mainly on Mineral Resource definition drilling, the timeous conversion of Mineral Resources to Mineral Reserves, delineating secondary reef potential and exploring white areas. The table below summarises exploration metres drilled and expenditure for the 12 months ending 31 December 2015 with the C2014 details added for comparison.
EXPLORATION DRILLING DETAILS FOR 12 MONTHS ENDING 31 DECEMBER 20151 2015 2014 Expenditure Expenditure Operation Metres drilled (Rm) Metres drilled (Rm) Beatrix North2 7,127 5.682 7,089 5.440 0 cm 1 Beatrix South2 1,303 0.883 1,480 0.961 Beatrix West2 2,316 1.541 733 0.395 Cooke* 21,029 20.870 18,323 17.590 Driefontein* 19,242 17.071 19,664 22.713 Kloof* 16,355 17.130 15,610 16.730 Burnstone3 1,354 1.852 WRTRP4 2,188 0.415 4,260 0.397 Total 69,560 63.592 68,513 66.078
1 Figures are exclusive of cover drilling 2 Includes Mineral Resource conversion drilling conducted for the Beatrix Beisa Project 3 Mineral Resource definition drilling conducted at Burnstone; further exploration drilling has been postponed until C2016 4 WRTRP Cooke and Cooke 4 South TSFs bulk sample project for metallurgical test work 0 cm 3 * C2014 numbers corrected from previous publication since some shafts included cover drilling figures
SCHEMATIC DEPOSITIONAL MODEL OF THE WITWATERSRAND BASIN
0 cm 10
T N 0 cm 10
Sibanye Gold Mineral Resources and Mineral Reserves 2015 23 SECTION 2 THE BEATRIX OPERATION HOME PRINT BACK NEXT
BEATRIX
Sibanye’s acquisition of the Wits Gold assets, contiguous to Beatrix, consolidated its position as a top producer of gold in the southernmost extent of the Witwatersrand Basin. The current Mineral Reserves of Beatrix are estimated to sustain the operation until 2029.
Beatrix 1 Shaft
24 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 THE BEATRIX OPERATION
LOCATION
Mining Right HARMONY Prospecting Right Welkom Towns Main roads HARMONY Arterial roads HARMONY ADAMSONS VLEY Virginia BEISA HAKKIES NORTH DE BRON MERRIESPRUIT
ROBIJN BEATRIX BLOEMHOEK
HARMONY
BEISA SOUTH
T N Co-ordinates 0 5km Latitude: 28° 15’00”S Gauss Conform Projection Longitude: 26° 47’00”E Theunissen Central Meridian 27°
OVERVIEW Gold Mineral Resources Beatrix, a shallow to intermediate level gold mine, has been producing gold since 1983, in the 9.592Moz (–3% post-production southern portion of the Free State-Goldfields. depletion of 0.383Moz) In accordance with Section 24 of the MPRDA, 2002 (Act No 28 of 2002), Beatrix has begun Uranium Mineral Resources 26.968Mlb (no change year-on-year) the process of applying for the extension, renewal and amendment of the valid Mining Right [DMR Ref. FS30/5/1/2/2(81) MR]. This application is amended to include the valid and Gold Mineral Reserves lapsed Prospecting Rights [PR (FS30/5/1/1/2(10134)PR), PR (FS30/5/1/1/2(10324)PR), and 4.326Moz (+18% post-production depletion of 0.325Moz) FS30/5/1/1/2 (10145) respectively. The current Mining Right [DMR Ref. FS30/5/1/2/2(81)MR] expires in February 2019, well before the estimated LoM ends in 2029. An application for the Uranium Mineral Reserve extension of the mining right period will be submitted in 2016. 11.654Mlb following the inclusion of the Beisa Project Beatrix is located in the magisterial district Matjhabeng, a semi-arid relatively flat region, near the towns of Welkom and Virginia, approximately 240km south-west of Johannesburg, in the Free Strategic intent State province of South Africa. Before the advent of mining, the land was used for agricultural • Extend the LoM purposes and very little natural vegetation remains. • Stabilise production profiles at current The current mine infrastructure consists of three producing shaft complexes. Mining is focused performance levels on open ground and pillars (white areas) of differing reef horizons with the deepest operating level • Reduce pay limits through quality some 2,055m below surface (22 Level at 4 Shaft). The principal mining takes place on the Beatrix mining and cost reduction Reef (BXR) and local facies variations thereof, which include the VS5 and Aandenk Reefs (AAR), • Fast track Mineral Resource to which constitutes almost 54% of the Mineral Reserve ounces and the Kalkoenkrans Reef (KKR) Mineral Reserve conversion 33%. With the inclusion of the Beisa Project, mining the Beisa Reef now makes up 11%, with • Regional synergies with the the remaining 2% from surface sources. Beatrix makes use of two gold processing plants, both acquisition of Wits Gold focused on treating underground and surface material. value creation • Beisa is a maiden reserve following the completion of a PFS in December 2014, further optimisation studies will be conducted in 2016
Sibanye Gold Mineral Resources and Mineral Reserves 2015 25 SECTION 2 THE BEATRIX OPERATION HOME PRINT BACK NEXT
BEATRIX CONTINUED
SCHEMATIC 3D SECTION THROUGH THE BEATRIX OREBODY LOOKING NORTH-NORTH-EAST
N T
BEATRIX OVERVIEW
Mineralisation style Palaeo-placer
Mineralisation characteristics • Hosted by auriferous and uraniferous predominantly quartz pebble conglomerates (reefs) • Laterally continuous with relatively long-range predictability • Clear patterns of mineralisation governed by sedimentary characteristics
Deposit type Shallow to intermediate-depth gold mine exploiting the Beatrix Reef (BXR) and the underlying Kalkoenkrans (KKR)/Aandenk (AAR) Reefs, both of the Kimberley Conglomerate Formation
Licence status and holdings Beatrix has a new order mining right in terms of the MPRDA, valid from 7 February 2007 to 6 February 2019 in respect of a mining area totalling 16,817ha. The process for an extension of the mining right is underway with the amendment to include adjacent prospecting rights. All required operating permits have been obtained and are in good standing
Infrastructure • Three shaft complexes (one sub-shaft) • Two mineral processing plants • Tailings storage facilities
Mining methods Conventional breast mining, scattered mining, some pillar mining and surface rock dump mining
Mineral processing Two gold processing plants: • No. 1 Carbon-in-leach (CIL) plant – processing underground ore and low-grade surface rock dump material • No. 2 CIL plant – processing underground ore and low-grade surface rock dump material
Tailings disposal Two TSFs with LoM deposition estimated at 58.9Mt against a combined capacity of 117.4Mt (surplus of 58.5Mt)
Climate No surface climatic conditions affect the underground mining operations
Environmental/Health and Safety Beatrix’s systems, procedures and training are in line with international best practice
Life of Mine It is estimated that the current Mineral Reserves will sustain the operation until 2029 (for 14 years)
26 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 THE BEATRIX OPERATION
Competent Persons The Competent Persons at each mining unit (MU) designated in terms of SAMREC who take responsibility for the consolidation, reporting and overall compliance of Beatrix’s 2015 Mineral Resources and Mineral Reserves are the respective Mineral Resource Managers: MU1: North Section (3 Shaft) Mr C Opperman [ND Mine Surveying, LDP (UNISA), MAP] is a registered SAIMM member (No. 706906) and has 34 years’ experience MU2: South Section (1 Shaft) Mr S Becker [BEng. Mining Engineering, Mine Manager’s Certificate] is a registered Engineering Council of South Africa (ECSA) member (No. H875564) and has 33 years’ experience MU3: West Section (4 Shaft) Mr D Oosthuizen [MSCC] is a registered SAIMM member (No. 706910) and has 27 years’ experience
ANNUAL DEVELOPMENT RESULTS REVIEW Financial year Gold Mineral Resources at Beatrix total decreased by approximately 0.267Moz Category Unit Beatrix* KKR 2015 2014 (3%) to 9.592Moz (inclusive of Beisa at Main development 1.194Moz). (advanced) km 16.8 4.8 21.6 19.7 Gold Mineral Reserves increased by Main on-reef development (advanced) km 5.3 1.0 6.3 6.1 18% to 4.326Moz, mainly as a result of Channel width cm 139 121 136 118 the tail management of the west section Average reef value g/t 7.4 12.1 8.1 8.7 (because of the inclusion of Beisa in cm.g/t 1,031 1,461 1,100 1,034 C2016 reserving). The Beisa North Project gold and *Includes development advances on the Aandenk and VS5 Reefs uranium Mineral Resources were re- estimated based on the same principles KEY PLAN TO MINING SECTIONS (SHAFT ZONES) as in 2014. During 2015, Sibanye continued studies relating to the two
projects with a view of optimising any T N potential synergies with Beatrix. 0 1km 2.5km Mineral Reserve development will remain a key performance indicator for C2016. The table details the West Section development advanced for the last 12 months to December 2015 (C2014 numbers included for comparison). A North Section (below infrastructure) total of 21.6km was developed in C2015 of which 6.3km was on-reef. Vlakpan A full account of all the operating North Section statistics of Beatrix is posted on the back of the Beatrix shareholders plan, attached to the end of this Mineral South Section Resources and Mineral Reserves Supplement.
KEY DEVELOPMENTS AND BROWNFIELD PROJECTS (ON-MINE) Beatrix is accessing the Vlakpan area over the LoM, as part of the strategy of optimising the Mineral Resource to Mineral Reserve conversion. The Vlakpan Project comprises ground between 16 and 22 Level to the west of the Beatrix North and South Sections. Access to the area is by means of twin haulages, and a winze from South Section. A detailed mine design and schedule, based on the current geological interpretation, evaluation and economic parameters, coupled with a detailed engineering layout, cost and cash flow models, have been completed for the project, and as a consequence has been incorporated into the current LoM plan.
The PFS for the Beisa Project was completed in December 2014 with the project requiring dual mining consideration with West Shaft as it was sub-economic at the reported uranium price as a stand alone project. The mine schedule was optimised during C2015 and the project has been subsequently included in the LoM plan for Beatrix West. The plan for C2016 is to review the PFS, finalise the remaining permitting issues with the planned uranium plant, and proceed with the FS.
A PFS is to be finalised in C2016 to assess the potential below current infrastructure at 3 Shaft, to access part of the Bloemhoek area to the north of 3 Shaft (outside the current Beatrix Mining Right). Additional Beatrix 3 Shaft drilling to firm up the structure and grade of the target area will additionally be completed in C2016.
Sibanye Gold Mineral Resources and Mineral Reserves 2015 27 SECTION 2 OPERATIONS AND PROJECTS HOME PRINT BACK NEXT
BEATRIX CONTINUED
Gold Mineral Resource reconciliation 12,000 9,859 233 10,000 9,454 387 13 9,592 (405) (51) (444) 8,000 6,000
Gold (’000oz) 4,000 2,000 0 Paylimit Depletion Dec 2015 Dec 2014 Modelling Post-depletion Surface sources
0 cm 5 Geological structure/sampling
Beatrix 2 Shaft decommissioned Aandenk channel
GOLD MINERAL RESOURCE CLASSIFICATION (REPORTED INCLUSIVE OF MINERAL RESERVES) Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Underground Measured 26.6 18.5 5.7 6.4 4,857 3,792 Indicated AI 22.2 32.0 5.2 5.2 3,677 5,332 Indicated BI 6.9 4.2 4.4 4.9 991 660 Inferred AI 0.037 0.037 3.3 3.3 4 4 Total underground 55.8 54.7 5.3 5.6 9,530 9,788 Total above infrastructure 48.8 50.5 5.4 5.6 8,538 9,128 Total below infrastructure 6.9 4.2 4.4 4.9 991 660 Surface Indicated surface rock dumps 5.3 6.2 0.4 0.4 62 71 Total gold Mineral Resources 61.1 60.9 4.9 5.0 9,592 9,859
URANIUM MINERAL RESOURCE CLASSIFICATION
Tons (Mt) Grade (kg/t) U3O8 (‘000 lb)
Uranium classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Measured AI 3.6 3.6 1.086 1.086 8,548 8,548 Indicated AI 7.8 7.8 1.069 1.069 18,330 18,330 Inferred AI 0.037 0.037 1.101 1.101 90 90 Total uranium Mineral Resources 11.4 11.4 1.074 1.074 26,968 26,968
28 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS
BEATRIX/AANDENK/VS5 REEFS KALKOENKRANS REEF
T N T N 0 1km 2.5km 0 1km 2.5km
Legend Classification Legend Classification Mine boundary Measured Mine boundary Measured Shafts Indicated Shafts Indicated Mined-out areas Inferred Mined-out areas Inferred Pillars Pillars
Gold grade tonnage curve MODIFYING FACTORS The grade tonnage curve represents undiluted grade (at block width) and tons within the total Mineral Resources Parameter Unit Dec 2015 Dec 2014 (all reefs at zero cut-off). Mineral Resource pay limit cm.g/t 760 710 120 3,500 Mineral Reserve pay limit cm.g/t 840 780 Mined value* cm.g/t 774 1,025 100 3,000 Mine call factor % 84 81 2,500 80 Block factor % 100 100 2,000 Shortfall % 7 6 60 ons (Mt) T 1,500 Mining dilution % 16 18 40 1,000 Stoping width cm 158 172
verage value above cut-off (cm.g/t) Mill width cm 189 203 20 500 A Plant recovery factor UG % 96 96 0 0 Plant recovery factor SRD % 88 89 0 500 1,000 1,500 2,000 2,500 Cut-off value (cm.g/t) * Includes lower grade Beisa Reef, which will be mined for both gold and uranium Tons Grade
Sibanye Gold Mineral Resources and Mineral Reserves 2015 29 SECTION 2 THE BEATRIX OPERATION HOME PRINT BACK NEXT
BEATRIX CONTINUED
GOLD MINERAL RESERVE CLASSIFICATION Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Underground Proved 20.1 13.0 3.7 4.1 2,389 1,706 Probable AI 18.1 14.0 3.2 4.2 1,875 1,892 Probable BI Total underground 38.2 27.0 3.5 4.1 4,264 3,598 Surface Probable surface rock dumps 5.3 6.2 0.4 0.4 62 71 Total gold Mineral Reserves 43.5 33.2 3.1 3.4 4,326 3,669
GOLD MINERAL RESERVES PER MINING AREA Total Mineral Reserves Total Proved Mineral Reserves Probable Mineral Reserves 31 Dec 2015 Dec 14
Tons Grade Gold Tons Grade Gold Tons Grade Gold Gold Mining area (Mt) (g/t) (‘000 oz) (Mt) (g/t) (‘000 oz) (Mt) (g/t) (‘000 oz) (‘000 oz) North Section (3 Shaft) 13.5 3.0 1,311 5.7 2.8 514 19.2 3.0 1,825 1,952 South Section (2 Shaft) 3.3 3.4 351 1.5 3.1 148 4.7 3.3 499 590 West Section (4 Shaft) 3.3 6.8 727 3.5 6.4 717 6.8 6.6 1,444 1,055 Beisa (4 Shaft)* 7.4 2.1 495 7.4 2.1 495 Total underground 20.1 3.7 2,389 18.1 3.2 1,875 38.2 3.5 4,264 3,598 Surface rock dumps 5.3 0.4 62 5.3 0.4 62 71 Total gold Mineral Reserves 20.1 3.7 2,389 23.4 2.6 1,938 43.5 3.1 4,326 3,669
*Further optimisation studies scheduled for 2016
URANIUM MINERAL RESERVE CLASSIFICATION
Tons (Mt) Grade (kg/t) U3O8 (‘000 lb)
Uranium classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Probable AI 7.4 0.715 11,654 Total AI 7.4 0.715 11,654 Total underground 7.4 0.715 11,654
Gold Mineral Reserve reconciliation GOLD MINERAL RESERVE RECONCILIATION AT 31 DECEMBER 2015 5,000 Factors Moz 4,500 495 4,326 602 31 December 2014 3.669 4,000 3,669 61 14 3,500 3,344 80 (237) (34) 2014 Depletion (0.325) 3,000 (325) 2,500 Post depletion 3.344 2,000 Geological changes 0.080 Gold (’000oz) 1,500 1,000 White areas 0.602 500 General exclusions (0.237) 0 Evaluation (0.034)
Beisa Technical factors 0.061 Depletion Dec 2014 Dec 2015 Evaluation White areas Surface sources 0.014 Post-depletion Surface sources echnical factors T Beisa 0.495 General exclusions Geological changes 31 December 2015 4.326
30 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 THE BEATRIX OPERATION
CURRENT LOM ESTIMATED TO SUSTAIN OPERATION UNTIL 2029, A FURTHER 14 YEARS
PRODUCTION AND HOISTING CAPACITIES Operational Planned Operating hoisting production Mining unit shaft capacity (ktpm) (ktpm)* 1 3 170 152 2 1 138 55 2 2 Decommissioned 3 4** 120 99 3 4 SV 120 51
* Planned production is a five-year hoisted average from 2016 onwards ** 4 Shaft includes Beisa
PLANT CAPACITIES Design Current Average capacity operational recovery Material Plant (ktpm) capacity (ktpm) factor (%) treated 1 (CIL) 233 243 95.8 UG 88.9 Surface 2 (CIP) 130 130 94.8 UG 86.1 Surface
CIP: Carbon in pulp
Beatrix 2 processing plant
Sibanye Gold Mineral Resources and Mineral Reserves 2015 31 SECTION 2 THE COOKE OPERATION HOME PRINT BACK NEXT
COOKE
Our Cooke operation was first established as the Western Areas Gold mine in 1961 following detailed exploration of the gold-and uranium-bearing conglomerates of the Elsburg Formation that had began in the 1950s. The current Mineral Reserves are estimated to sustain the operation until 2023.
Cooke 4 Shaft complex
32 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 THE COOKE OPERATION
LOCATION
WRTRP Mining Right RSO Section 102 application Randfontein COOKE Towns 123 National roads Arterial roads RSO Main roads HARMONY
Co-ordinates Latitude: 26° 15’00”S Longitude: 24° 45’00”E COOKE WRTRP 123
Westonaria WRTRP ZUURBEKOM PR TO BE INCLUDED IN Carletonville COOKE 4 COOKE 4
DRIEFONTEIN
WRTRP EX-BLYVOORUITZICHT KLOOF GOLD FIELDS
ANGLOGOLD T N HARMONY 0 5km Fochville Gauss Conform Projection WRTRP Central Meridian 27°
OVERVIEW Gold Mineral Resources Cooke is a large, established, shallow to intermediate-level gold mine. The mine has been 15.911Moz (4.08% decrease producing uranium and gold since 1961. As per legislation, the mine operates under three Mining post-production depletion of 0.120Moz) Rights, covering areas adjacent to each other. The Mining Rights are as follows:
Uranium Mineral Resources • Cooke 1,2,3 [DMR Ref. GP30/5/1/2/2(07) MR], valid from 18 December 2007 to 68.423Mlb (+3.1% post-production 17 December 2037 and covering a total area of 7,875ha depletion of 0.291Mlb) • Cooke 4 (Ezulwini) [DMR Ref. GP30/5/1/2/2(38) MR], valid from 20 November 2006 to Gold Mineral Reserves 19 November 2036 and covering a total area of 3,718ha 1.523Moz (-12% post-production depletion of 0.216Moz) • Randfontein Surface Operations (RSO) [DMR Ref. GP30/5/1/2/2(173) MR] valid from 07 May 2009 to 06 May 2039 with a total area of 3,130ha Uranium Mineral Reserves The underground mining activities at Cooke and the RSO are located in the Randfontein District 3.073Mlb (-13% post-production depletion of 0.291Mlb) of the Gauteng province in South Africa. Cooke shafts are located approximately 30km to 40km south-west of Johannesburg. The sites are accessed via the R28 highway between Randfontein Strategic intent and Westonaria or via the N12 national road between Johannesburg and Potchefstroom.
• Stabilise production profiles and The topography of the surface area is relatively flat and the vegetation of the area is classified as performance levels Bankenveld consisting of grassland. Livestock farming is widespread in the surrounding area and • Reduce pay limits through quality no climate extremes are experienced that affect mining operations. mining and cost reduction The RSO assets include several TSFs on the West Rand near Randfontein. • Strengthen uranium potential • Unlock secondary reef potentials
Sibanye Gold Mineral Resources and Mineral Reserves 2015 33 SECTION 2 THE COOKE OPERATION HOME PRINT BACK NEXT
COOKE CONTINUED
The current mine infrastructure consists of four producing shaft complexes that mine open ground and pillars (white areas), with the deepest operating level some 1,634m below surface (58 level at Cooke 4 SV Shaft). The production from the four Cooke shafts is hoisted to surface separately. Underground material from Cooke 1,2 and 3 is processed at the Doornkop Plant, operated by Harmony Gold Mining Company Ltd, on a toll treatment basis. Run-of-mine (ROM) from Cooke 4, is treated at the Ezulwini gold-uranium plant situated near Cooke 4 Shaft. Ore from the uranium section at Cooke 3 is hoisted separately and trucked, along private roads, to the Ezulwini gold-uranium plant for treatment.
The principal mining takes place on the UE1A Reef, which constitutes 63% of the underground Mineral Reserve ounces, the Upper Elsburg Reefs (24%), various secondary reefs of the Elsburg and Kimberley Formations (3%) and the VCR (10%). The principal source of uranium is the UE1A Reef.
SCHEMATIC 3D SECTION THROUGH THE COOKE OREBODY LOOKING NORTH-NORTH-WEST
T N
SCHEMATIC 3D SECTION OF THE COOKE 4 OREBODY LOOKING WEST-NORTH-WEST
T
N
34 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 THE COOKE OPERATION
COOKE OVERVIEW
Mineralisation style Palaeo-placer Mineralisation characteristics • Hosted by auriferous and uraniferous, quartz pebble conglomerates (reefs) • Laterally extensive with relatively long-range predictability • Clear patterns of mineralisation governed by sedimentary characteristics Deposit type Shallow to intermediate-depth gold mine exploiting the UE1A Reef, various secondary reefs of the Elsburg and Kimberley Conglomerate Formations and the VCR Licence status and holdings Cooke has a new order mining right in terms of the MPRDA, separated into three individual rights with granted durations as follows: • Cooke 1,2,3 from 18 December 2007 to 17 December 2037 in respect of a mining area totalling 7,875ha • Cooke 4 from 20 November 2006 to 19 November 2036 covering a total area of 3,718ha • RSO from 7 May 2009 to 6 May 2039 covering a total area of 3,230ha All required operating permits have been obtained and are in good standing. Cooke 4 also holds a prospecting right [DMR Ref. GP (10151)PR] in respect of a contiguous area (6,842ha) to the east of Cooke 1,2,3 and Cooke 4, which is valid until October 2016. Cooke 4 is in the process of finalising a Section 102 application to amend the Cooke 4 mining right through the inclusion of this prospecting right (Zuurbekom)
Cooke 1,2,3 holds a prospecting right GP(10055)PR over the Cooke 4 South TSF, measuring 244ha, a S102 application was submitted in 2015 for GP(10055)PR to be included into C123MR Infrastructure Four shaft complexes and a surface mining operation Mining methods • Cooke 1,2,3: conventional breast mining, scattered mining and pillar mining • Cooke 4: conventional breast mining, drift and benching, scattered mining and pillar mining • RSO: hydraulic reclamation (water jets), gravity feed to sump pump station and pumped via pipeline to processing plant Mineral processing Three processing plants (one external) • Harmony Doornkop Plant: processing Cooke 1,2,3 underground ore on a toll treatment basis for gold • Ezulwini Plant: processing Cooke 1,2,3 and Cooke 4 underground ore for gold and uranium • Cooke Plant: processing RSO tailings material for gold
Tailings disposal A tailings storage facility (Ezulwini) with LoM deposition estimated at 6.6Mt against a capacity of 10.0Mt (surplus of 3.4Mt) Cooke 1,2,3 tailings via the Doornkop Plant are deposited on the Doornkop TSF Currently RSO tailings are deposited down old, defunct open-cast mine workings estimated to accomodate all planned residue over the LoM Climate No extreme climate conditions are experienced that affect mining operations Environmental/Health and Safety Cooke systems, procedures and training are on par with international best practice Life of Mine It is estimated that the current Mineral Reserves will sustain the operation until 2023 (based on Cooke LoM) Competent Persons The Competent Persons at each MU designated in terms of SAMREC, who take responsibility for the consolidation, reporting and overall compliance of Cooke’s Mineral Resources and Mineral Reserves are the respective Mineral Resource Managers: MU1: 1 and 2 Shafts Mr L Madondo [BSc. Geology, COMSCC] is a registered SACNASP member (No. 200016/09) and has 11 years’ experience MU2: 3 Shaft Mr S Stander [BSc (Hon) Geology, GDE (Mining), B.Com., MBL, Dipl. PM] is a registered SACNASP member (No.400089/96) and has 13 years’ experience MU3: 4 Shaft Mr I Kitchin [BSc. (CPD Mineral Resource Management)] is a registered SAIMM member (No. 705144) and has 32 years’ experience Compliance Internal technical reviews have been conducted by the Competent Persons who gave their consent for the disclosure of the C2015 Mineral Resource and Mineral Reserve Statement. All have sufficient experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye
Sibanye Gold Mineral Resources and Mineral Reserves 2015 35 SECTION 2 OPERATIONS AND PROJECTS HOME PRINT BACK NEXT
COOKE CONTINUED
COOKE ANNUAL DEVELOPMENT RESULTS REVIEW Financial year total Gold Mineral Resources at Cooke decreased by 0.677Moz (-4.08%) to Elsburg Elsburg Kimberley Total 15.911Moz due to pay limit variations Category Unit VCR Reefs Massives Reefs 2015 pertaining to the Cooke 1,2,3 operations. Main development (advanced) km 2 .197 9.450 0.212 1.064 12.923 The Uranium Mineral Resources at Cooke increased by approximately Main on-reef 2.038Mlb (+3.07%) to 68.423Mlb. development (advanced) km 1. 250 3. 607 0.169 0.620 5.646 Gold Mineral Reserves decreased by Channel width cm 94 129 177 75 117 22% to 1.523Moz. The change was as a result of pay limit variation. Average reef value g/t 7.6 7.6 9.1 8.2 7.7 cm.g/t 712 977 1,616 614 898 Uranium Mineral Reserve decreased by 20% (-0.754Mlb) amounting to a total A full account of all the operating statistics of Cooke is posted on the back of the Cooke shareholders 3.073Mlb. plan attached to the end of this Mineral Resources and Mineral Reserves Supplement.
KEY PLAN TO MINING SECTIONS (SHAFT ZONES) KEY DEVELOPMENTS AND BROWNFIELD PROJECTS (ON-MINE) The potential that exists in the Zuurbekom area and the secondary reefs will be re-assessed during the course of C2016.
T N The build-up in the production of uranium at Cooke 3 and 4 Shafts will 0 1km 2.5km Cooke continue in C2016. 1 and 2 Shafts
Zuurbekom Prospecting Cooke Right 3 Shaft
Cooke 4 Shaft
Bullion scrubbing
Lining of the TSF
36 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS
GOLD MINERAL RESOURCE CLASSIFICATION (REPORTED INCLUSIVE OF MINERAL RESERVES) Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Underground Measured 8.5 11.5 5.7 8.6 1,566 3,175 Indicated AI 34.7 34.8 7.1 6.8 7,969 7,659 Inferred AI 11.9 8.6 6.1 5.9 2,326 1,643 Total above infrastructure 55.1 54.9 6.7 7.1 11,862 12,477 Inferred BI 40.7 40.7 3.1 3.1 3,998 3,998 Total underground 95.8 95.6 5.1 5.4 15,860 16,475 Surface – TSFs Measured 4.7 7.3 0.3 0.4 52 86 Indicated 2.2 0.4 28 Total surface 4.7 9.4 0.3 0.4 52 114 Total gold Mineral Resources 100.5 105.0 4.9 4.9 15,911 16,589
URANIUM MINERAL RESOURCE CLASSIFICATION (REPORTED INCLUSIVE OF MINERAL RESERVES)
Tons (Mt) Grade (kg/t) U3O8 (‘000 lb)
Uranium classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Underground Measured 4.9 4.4 0.447 0.590 4,873 5,697 Indicated AI 11.0 12.4 0.476 0.584 11,546 15,987 Inferred AI 6.7 1.1 0.546 0.288 8,020 717 Total above infrastructure 22.6 17.9 0.490 0.567 24,439 22,401 Inferred BI 35.9 35.9 0.555 0.555 43,984 43,984 Total uranium Mineral Resources 58.5 53.9 0.530 0.559 68,423 66,385
Ezulwini processing plant
Sibanye Gold Mineral Resources and Mineral Reserves 2015 37 SECTION 2 OPERATIONS AND PROJECTS HOME PRINT BACK NEXT
COOKE CONTINUED
ILLUSTRATION OF UE1A/E9EC CLASTIC WEDGE UE1A AND E9EC
T N 0 1km 2.5km
SINGLE REEF
UE1A/E9EC
1 MULTI REEF COOKE
4 2 UE1A/E9EC
COOKE
AND COOKE North AXIS 3 ANTICLINE COOKE Legend Classification Shafts Measured Mining Boundary Indicated Mined-out areas Inferred UE1A subcrop Pillars
UPPER ELSBURG VENTERSDORP CONTACT REEF
T N T N 0 1km 2.5km 0 1km 2.5km
Legend Classification Legend Classification Shafts Measured Shafts Measured Mining Boundary Indicated Mining Boundary Indicated Mined-out areas Inferred Mined-out areas Inferred Upper Elsburg VCR subcrop subcrop
Gold Mineral Resource reconciliation
20,000 3,168 332 16,589 16,298 (1,850) (140) 15,911 15,000 (291) (1,871) (26)
10,000 Gold (’000oz ) 5,000
0 Paylimit Dec 2015 Dec 2014 Modelling 2015 Depletion Post-depletion Surface sources Additional blocking Geological structure Ezulwini processing plant Resource blocks cleanup
38 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS
GOLD GRADE TONNAGE CURVE MODIFYING FACTORS (UNDERGROUND) The grade tonnage curve represents undiluted grade (at block width) and tons within the total Mineral Resources Parameter Unit Dec 2015 Dec 2014 (all reefs at zero cut-off). Mineral Resource pay limit cm.g/t 970 860 1,800 3500 Mineral Reserve pay limit cm.g/t 1,090 950 Mined value cm.g/t 1,150 1,039 1,600 3000 Mine call factor (gold) % 79 79 1,400 2500 Mine call factor (uranium) % 76 77 1,200 Block factor % 100 100 2000 1,000 Shortfall % 0 1 ons (Mt)
T 800 1500 Mining dilution % 17 28 600 Stoping width cm 188 160 1000 400 Mill width cm 235 206 verage value above cut off (cm.g/t) 500 A Plant recovery factor – 200 gold UG % 95 96 0 0 Plant recovery factor – 0 500 1,000 1,500 2,000 2,500 Cut-off grade (cm.g/t) uranium UG % 78 79 Tons Grade
RSO MODIFYING FACTORS (SURFACE) Parameter Unit Dec 2015 Dec 2014 Mineral Resource pay limit g/t 0.26 0.31 Mineral Reserve pay limit g/t 0.29 0.33 Mined value g/t 0.34 0.38 Plant recovery factor % 60 61
GOLD MINERAL RESERVE CLASSIFICATION Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Underground Proved 6.8 10.1 4.7 4.8 1,014 1,555 Probable AI 3.1 1.8 4.6 4.9 457 286 Total above infrastructure 9.8 11.9 4.7 4.8 1,471 1,841 Probable BI Total underground 9.8 11.9 4.7 4.8 1,471 1,841 Surface – TSFs Proved 4.7 7.3 0.3 0.4 52 86 Probable 2.2 0.4 28 Total surface 4.7 9.4 0.3 0.4 52 114 Total gold Mineral Reserves 14.5 21.3 3.3 2.8 1,523 1,955
Cooke 1 processing plant feed
Sibanye Gold Mineral Resources and Mineral Reserves 2015 39 SECTION 2 THE COOKE OPERATION HOME PRINT BACK NEXT
COOKE CONTINUED
URANIUM MINERAL RESERVE CLASSIFICATION
Tons (Mt) Grade (kg/t) U3O8 (‘000 lb) Uranium classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Underground Proved 2.7 4.1 0.348 0.379 2,056 3,388 Probable AI 1.5 0.5 0.314 0.369 1,017 439 Total above infrastructure 4.2 4.6 0.336 0.378 3,073 3,827 Probable BI Total uranium Mineral Reserves 4.2 4.6 0.336 0.378 3,073 3,827
GOLD MINERAL RESERVES PER MINING AREA Total Mineral Reserves Total Proved Mineral Reserves Probable Mineral Reserves 31 Dec 2015 Dec 14
Tons Grade Gold Tons Grade Gold Tons Grade Gold Gold Mining area (Mt) (g/t) (‘000 oz) (Mt) (g/t) (‘000 oz) (Mt) (g/t) (‘000 oz) (‘000 oz) 1 Shaft 0.5 7.4 111 0.0 2.1 1 0.5 7.2 112 134 2 Shaft 0.9 6.1 179 0.2 8.4 60 1.1 6.5 239 353 3 Shaft 3.3 4.6 493 0.8 3.1 76 4.1 4.3 569 669 4 Shaft 2.0 3.5 232 2.1 4.8 320 4.1 4.2 551 685 Total underground 6.8 4.7 1,014 3.1 4.6 457 9.8 4.7 1,471 1,841 RSO TSFs 4.7 0.3 52 4.7 0.3 52 114 Total gold Mineral Reserves 11.5 2.9 1,066 3.1 4.6 457 14.5 3.3 1,523 1,955
URANIUM MINERAL RESERVES PER MINING AREA Total Mineral Reserves Total Proved Mineral Reserves Probable Mineral Reserves 31 Dec 2015 Dec 14
Tons Grade U3O8 Tons Grade U3O8 Tons Grade U3O8 U3O8 Mining area (Mt) (kg/t) (‘000 lb) (Mt) (kg/t) (‘000 lb) (Mt) (kg/t) (‘000 lb) (‘000 lb) 1 Shaft 2 Shaft 3 Shaft 1.6 0.360 1,233 1.0 0.290 622 2.5 0.333 1,855 2,001 4 Shaft 1.1 0.330 823 0.5 0.360 394 1.6 0.340 1,218 1,826 Total underground 2.7 0.348 2,056 1.5 0.314 1,017 4.2 0.336 3,073 3,827 RSO TSFs Total uranium Mineral Reserves 2.7 0.348 2,056 1.5 0.314 1,017 4.2 0.336 3,073 3,827
Cooke processing plant gold pour
40 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 THE COOKE OPERATION
Gold Mineral Reserve reconciliation GOLD MINERAL RESERVE RECONCILIATION AT 31 DECEMBER 2015 2,000 1,955 Factors Moz 1,739 28 (216) (25) 47 1,523 1,500 31 December 2014 1.955 (230) (12) (25) 2015 Depletion (0.216) 1,000 Post-depletion 1.739 Gold (’000oz) 500 Geological changes (0.025) 0 General inclusions (white areas) 0.028 General exclusions (pay limit) (0.230) Pay limit Dec 2015 Dec 2014 Evaluation 0.047 Evaluation White areas
2015 Depletion Technical factors (0.012) Post-depletion Surface sources echnical factors T
Geological changes Surface exclusions (0.025) 31 December 2015 1.523
Uranium Mineral Reserve reconciliation URANIUM MINERAL RESERVE RECONCILIATION AT 31 DECEMBER 2015 4,000 3,827 3,536 Factors Mlb 3,500 (291) 3,073 31 December 2014 3.827 3,000 (463) 2,500 2015 Depletion (0.291) (’000lb)
8 2,000 O 3 1,500 U Post-depletion 3.536 1,000 500 General exclusions (pay limit) (0.463) 0 31 December 2015 3.073 Pay limit Dec 2015 Dec 2014 2015 Depletion Post-depletion
CURRENT LOM ESTIMATED TO SUSTAIN OPERATION UNTIL 2023, A FURTHER 8 YEARS
PRODUCTION AND HOISTING CAPACITIES Operational hoisting Planned production Mining unit Operating shaft capacity (ktpm)* (ktpm) 1 1 15 10 1 2 28 19 2 3 54 49 3 4 56 49 3 4 SV Decommissioned RSO TSF 400** 400 * Planned production is five-year hoisted average from C2016 onwards ** Reclamation capacity PLANT CAPACITIES Design capacity Current operational Average recovery Plant (ktpm) capacity (ktpm) factor (%) Material treated Doornkop 80 56 95.4 UG Ezulwini gold* 200 150 95.1 UG Ezulwini uranium 100 50 78.2 UG Cooke 400 400 60.4 TSF
* Ezulwini gold plant capacity is inclusive of the 100ktpm uranium plant tails
Sibanye Gold Mineral Resources and Mineral Reserves 2015 41 SECTION 2 THE DRIEFONTEIN OPERATION HOME PRINT BACK NEXT
DRIEFONTEIN
Driefontein started production in 1952 and is officially the most prolific gold mine, having produced more than 108Moz of gold over the past 63 years. The current Mineral Reserves are estimated to sustain the operation until 2042.
Driefontein 2 ventilation shaft
42 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 THE DRIEFONTEIN OPERATION
LOCATION
RSO C123
Mining Right (MR) WRTRP Section 102 application Randfontein C123 Towns RSO National roads Arterial roads RSO Main roads HARMONY
Coordinates Latitude: 26° 24’00”S Longitude: 27° 30’00”E WRTRP COOKE 123
EXTENSION OF Westonaria DRIEFONTEIN MR ZUURBEKOM PR TO BE INCLUDED INTO COOKE 4 Carletonville COOKE 123
DRIEFONTEIN
WRTRP EX-BLYVOORUITZICHT KLOOF GOLD FIELDS
ANGLOGOLD HARMONY T N Fochville 0 5km WRTRP Gauss Conform Projection Central Meridian 27°
OVERVIEW Driefontein is a large, established, shallow to ultra-deep-level gold mine, operating under a Mining Gold Mineral Resources Right [DMR Ref. GP30/5/1/2/2(51)MR] valid from 30 January 2007 to 29 January 2037 covering 19.786Moz (-14% post-production a total area of 8,561ha. depletion of 0.589Moz) Geographically, Driefontein is located in the West Wits Line Goldfield of the Witwatersrand Basin, Gold Mineral Reserves near Carletonville, approximately 70km west of Johannesburg in the Gauteng province of South 8.196Moz (+21% post-production Africa. Topography is characterised by moderately undulating plains, classified as Bankenveld, depletion of 0.581Moz) consisting of grassland with livestock farming widespread in the surrounding areas.
Strategic intent The current mine infrastructure consists of six producing shaft complexes that mine open ground • Extend the LoM and pillars (white areas), with the deepest operating level currently some 3,420m below surface • Stabilise production profiles at (50 Level at 5 Shaft), and three gold processing plants. The principal mining takes place on the current performance levels Carbon Leader Reef (CLR), which constitutes almost 67% of the Mineral Reserves, the VCR 29%, the Middelvlei Reef (MVR) 3% and the remainder from surface sources. • Reduce pay limits through quality mining and cost reduction • 1 Shaft pillar extraction PFS completed • 5 Shaft drop-down PFS completed and development commenced • Target secondary reefs on an incremental basis above infrastructure
Driefontein 1 Shaft
Sibanye Gold Mineral Resources and Mineral Reserves 2015 43 SECTION 2 THE DRIEFONTEIN OPERATION HOME PRINT BACK NEXT DRIEFONTEIN CONTINUED
SCHEMATIC 3D SECTION THROUGH THE DRIEFONTEIN OREBODY LOOKING NORTH
T N
DRIEFONTEIN OVERVIEW
Mineralisation style Palaeo-placer
Mineralisation characteristics • Hosted by auriferous and uraniferous quartz pebble conglomerates (reefs) • Laterally continuous with relatively long-range predictability • Clear patterns of mineralisation governed by sedimentary characteristics
Deposit type Auriferous and uraniferous quartz pebble conglomerates, hosted by the VCR and Main Conglomerate Formation, CLR and MVR, of the Central Rand Group
Licence status and holdings Driefontein has a new order mining right in terms of the MPRDA, valid from 30 January 2007 to 29 January 2037 in respect of a mining area totalling 8,561ha. All required operating permits have been obtained, and are in good standing
Infrastructure Six shaft complexes (five sub-shafts and one tertiary shaft)
Mining methods Scattered stoping, mini-longwall stoping with closely spaced dip pillars (140m x 40m and 130m x 30m regional pillars) and surface rock-dump mining
Mineral processing Three gold processing plants and a centralised elution and carbon treatment facility at the No. 1 Plant: • No. 1 CIP Plant: processing underground ore and low-grade surface rock dump material • No. 2 CIP Plant: processing only low-grade surface rock dump material • No. 3 CIL Plant: processing only low-grade surface rock dump material
Tailings disposal Three TSFs with LoM deposition estimated at 40.1Mt against a combined capacity of 94.5Mt (surplus 54.4Mt)
Climate No extreme climate conditions are experienced that may affect mining operations
Environmental/Health and Safety Driefontein’s systems, procedures and training are in line with international best practice
Life of Mine It is estimated that the current Mineral Reserves will sustain the operation until 2042 (for 27 years)
44 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 THE DRIEFONTEIN OPERATION
Competent Persons The Competent Persons at each MU designated in terms of SAMREC, who take responsibility for the consolidation, reporting and overall compliance of Driefontein’s Mineral Resources and Mineral Reserves are the respective Mineral Resource Managers: MU1: 1 Shaft Mr C Labuschagne [GDE Mining Eng. BSc (Hon) Geology. MSc. Env. Management] is a registered SACNASP member (No. 400237/08) and has 18 years’ experience MU2: 2 & 4 Shafts Mr M Tandree [ND Mine Surveying; MSCC; GDE Mining] is a registered SAIMM member (No. 706330) and has 18 years’ experience MU3: 6 & 8 Shafts Mr C Dewey [ND Mine Survey, MSCC, GDE (Mining Engineering), MSc. Eng (Mining Engineering)] is a registered PLATO member (PMS0234) and has 41 years’ experience MU4: 5 Shaft Mr J du Plessis [MSc. (Mining Engineering), GDE Mining Engineering NHD Mine Surveying, MSCC] is a registered PLATO member (PMS0145) and has 36 years’ experience
Compliance Internal technical reviews have been conducted by the Competent Persons who gave their consent for the disclosure of the C2015 Mineral Resource and Mineral Reserve Statement. All have sufficient experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye.
ANNUAL DEVELOPMENT RESULTS REVIEW Financial year total The Mineral Resources at Driefontein Category Unit CL VCR MR 2015 2014 decreased by 3.095Moz (14%) from the previous year. Main development (advanced) km 6.836 5.102 3.766 15.7 17.4 The Mineral Reserves increased overall by 0.842Moz (11%). This increase is Main on-reef development mainly a result of the inclusion of white (advanced) km 1.638 0.841 0.763 3.2 3.9 areas (0.538Moz) that have, since Channel width cm 89 54 79 78 72 the previous C2015 LoM plan, been Average reef value g/t 18.2 34.3 9.1 18.9 19.7 investigated for their economic potential. cm.g/t 1,621 1,852 717 1,468 1,415 Mineral Reserve development will remain a key performance indicator for C2016. The following table details the development advanced for the last 12 months to December 2015 C2014 added for comparison). A total of 15.7km was developed in C2015 of which 3.2km was on-reef. A full account of all the operating statistics of Driefontein is posted on the back of the Driefontein shareholders plan, attached at the end of this Mineral Resources and Mineral Reserves Report.
Surface rock dump 2 Surface rock dump 12 at Driefontein
Sibanye Gold Mineral Resources and Mineral Reserves 2015 45 SECTION 2 OPERATIONS AND PROJECTS HOME PRINT BACK NEXT DRIEFONTEIN CONTINUED
KEY PLAN TO MINING UNITS (SHAFT ZONES) KEY DEVELOPMENTS AND BROWNFIELD PROJECTS (ON-MINE) The following projects are ongoing and have been included in the LoM:
• The 1 Shaft Pillar Extraction Project PFS, completed by Royal HaskoningDHV in 2013, is included in the LoM production plan. It is planned to finalise the T N FS for this project over the next two years, as investigations are hampered by 0 1km 2.5km ventilation constraints for the sub vertical SV area. • The FS for the Driefontein 5 Shaft drop-down project (below 50 Level) was approved in November 2015, and it is planned to commence with the development in C2016. The mine design on the target levels has been extended towards the Driefontein mining boundary, resulting in additional Mineral Reserves of 1.0Moz. • The SRDs at Driefontein are expected to be depleted in C2017. As a result, detailed studies are underway to utilise the Driefontein Surface Plant infrastructure 8 Shaft 2 Shaft for the first phase of the WRTRP.
6 Shaft 4 Shaft 10 Shaft 1 Shaft 5 Shaft 6T Shaft
Driefontein 8 Shaft headgear
GOLD MINERAL RESOURCE CLASSIFICATION (REPORTED INCLUSIVE OF MINERAL RESERVES) Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Underground Measured 18.9 21.5 10.7 11.9 6,503 8,229 Indicated AI 7.5 10.5 12.7 12.1 3,053 4,088 Indicated BI 28.0 29.5 10.9 10.2 9,821 9,684 Inferred AI 0.7 1.1 14.6 16.0 314 550 Inferred BI 0.7 9.4 204 Total underground 55.0 63.2 11.1 11.2 19,691 22,755 Total above infrastructure 27.0 33.1 11.4 12.1 9,870 12,867 Total below infrastructure 28.0 30.1 10.9 10.2 9,821 9,888 Surface Indicated surface rock dump 4.6 6.8 0.6 0.6 94 125 Total gold Mineral Resources 59.6 70.0 10.3 10.2 19,786 22,880
46 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS
VENTERSDORP CONTACT REEF MIDDELVLEI REEF
T N T N 0 1km 2.5km 0 1km 2.5km
Legend Classification Legend Classification Shafts Measured Shafts Measured Mined-out areas Indicated Mined-out areas Indicated VCR subcrop Inferred MVR subcrop Inferred Pillars Pillars
Gold Mineral Resource reconciliation CARBON LEADER REEF
25,000 22,880 22,212 20,000 (668) 253 48 19,786 (2,529) (199) T N 15,000 0 1km 2.5km 10,000 Gold (’000oz ) 5,000 0 Paylimit Dec 2015 Dec 2014 Modelling post-depletion 2015 Depletion Surface sources Estimation and geology
Legend Classification Shafts Measured Mined-out areas Indicated CLR subcrop Inferred Pillars
Sibanye Gold Mineral Resources and Mineral Reserves 2015 47 SECTION 2 THE DRIEFONTEIN OPERATION HOME PRINT BACK NEXT
DRIEFONTEIN CONTINUED
GOLD GRADE TONNAGE CURVE MODIFYING FACTORS The grade tonnage curve represents undiluted grade (at Parameter Unit Dec 2015 Dec 2014 block width) and tons within the total Mineral Resources Mineral Resource pay limit cm.g/t 1,210 1,170 (all reefs at zero). Mineral Reserve pay limit cm.g/t 1,330 1,280 450 4,000 Mined value cm.g/t 1,654 1,726 400 3,500 Mine call factor % 86 86 350 3,000 300 Block factor % 100 100 2,500 250 Shortfall % 11 12 ons (Mt)
T 2,000 200 Mining dilution % 24 35 1,500 150 Stoping width cm 155 158 100 1,000
varage value above cut-off (cm.g/t) Mill width cm 203 214 50 500 A Plant recovery factor UG % 97 97 0 0 0 500 1,000 1,500 2,000 2,500 Plant recovery factor SRD % 81 86 Cut-off grade (cm.g/t) Tons Grade
GOLD MINERAL RESERVE CLASSIFICATION Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Underground Proved AI 17.9 12.1 7.2 7.0 4,133 2,716 Probable AI 8.6 14.4 6.7 7.3 1,846 3,387 Total above infrastructure 26.4 26.6 7.0 7.1 5,980 6,103 Probable BI 9.1 5.5 7.3 6.3 2,122 1,126 Total underground 35.5 32.1 7.1 7.0 8,102 7,228 Surface Probable surface rock dump 4.6 6.8 0.6 0.6 94 125 Total gold Mineral Reserves 40.1 38.9 6.4 5.9 8,196 7,354
GOLD MINERAL RESERVES PER MINING AREA Total Mineral Reserves Total Proved Mineral Reserves Probable Mineral Reserves 31 Dec 2015 Dec 14
Tons Grade Gold Tons Grade Gold Tons Grade Gold Gold Mining area (Mt) (g/t) (‘000 oz) (Mt) (g/t) (‘000 oz) (Mt) (g/t) (‘000 oz) (‘000 oz) 1 Shaft 2.2 8.6 599 0.0 3.7 5 2.2 8.5 604 684 1 SV Shaft Pillar 2.7 7.2 616 2.7 7.2 616 536 2 Shaft 1.3 7.5 327 0.2 3.3 22 1.6 7.0 350 459 4 Shaft 2.5 9.3 752 1.8 8.0 449 4.3 8.8 1,201 1,350 5 Shaft 6.2 7.0 1,404 2.6 7.0 582 8.8 7.0 1,985 2,286 5 Shaft drop-down 9.1 7.3 2,122 9.1 7.3 2,122 1,126 6 Shaft 1.3 7.6 306 0.2 5.0 33 1.5 7.2 339 304 8 Shaft 4.4 5.3 746 1.1 3.9 139 5.5 5.0 886 483 Total underground 17.9 7.2 4,133 17.6 7.0 3,968 35.5 7.1 8,102 7,228 Surface Surface rock dumps 4.6 0.6 94 4.6 0.6 94 125 Total gold Mineral Reserves 17.9 7.2 4,133 22.2 5.7 4,063 40.1 6.4 8,196 7,354
The Mineral Reserves increased overall by 0.842Moz (11%). This increase is mainly a result of the inclusion of white areas (0.538Moz) that have been investigated for their economic potential since the previous C2015 LoM plan.
48 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 THE DRIEFONTEIN OPERATION
GOLD MINERAL RESERVE RECONCILIATION AT 31 DECEMBER 2015 Gold Mineral Reserve reconciliation Factors Moz 10,000 9,000 49 8,196 1,061 390 31 December 2014 7.354 8,000 7,354 751 7,000 6,773 10 (792) 2015 Depletion (0.581) 6,000 (581) Post depletion 6.773 5,000 4,000 Geological changes 0.010 Gold (’000oz ) 3,000 White areas 0.751 2,000 1,000 5 Shaft drop-down additions 1.016 0 Change in average mining value (0.792) Dec 2015 Changes in modifying factors 0.390 Dec 2014 White areas Surface additions 0.049 2015 Depletion Post-depletion Surface sources echnical factors T
31 December 2015 8.196 Geological changes 5 Shaft dropdown changes Changes in average mining value
CURRENT LOM ESTIMATED TO SUSTAIN OPERATION UNTIL 2042, A FURTHER 27 YEARS
HOISTING AND PRODUCTION CAPACITIES Operational hoisting Planned production Mining unit Operating shaft capacity (ktpm) (ktpm)*
1 1 105 37 1 1 SV 105 37 1 1 T 121 37 2 2 165 108 2 4 SV 57 31 3 6 SV 26 14 3 8 60 42 4 5 N/A N/A 4 5 SV 159 67 * Planned production is five-year hoisted average from C2016 onwards
PLANT CAPACITIES Design capacity Current operational Average recovery Plant (ktpm) capacity (ktpm) factor (%) Material treated 1 (CIP) 240 240 97.3 UG/SRD 2 (CIP) 200 180 80.5 SRD 3 (CIL) 115 100 81.7 SRD
Sibanye Gold Mineral Resources and Mineral Reserves 2015 49 SECTION 2 THE KLOOF OPERATION HOME PRINT BACK NEXT
KLOOF
Kloof, a mature operation with a safe operational blueprint, remains a world-class asset and will continue to add value to all its stakeholders for many years to come. Kloof’s current Mineral Reserve is estimated as sufficient to sustain the operation until 2033.
Kloof 8 Shaft
50 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 THE KLOOF OPERATION
LOCATION
Mining Right WRTRP Section 102 application Randfontein Towns RSO National roads Arterial roads Main roads HARMONY
Coordinates Latitude: 26° 24’00”S Longitude: 27° 36’00”E EXTENSION OF COOKE 123 KLOOF MR
Westonaria
WRTRP ZUURBEKOM PR TO BE INCLUDED IN Carletonville COOKE 4 COOKE 123
DRIEFONTEIN
WRTRP EX-BLYVOORUITZICHT KLOOF GOLD FIELDS
ANGLOGOLD HARMONY T N Fochville 0 5km EXTENSION OF Gauss Conform Projection KLOOF MR Central Meridian 27°
OVERVIEW Kloof is an established, shallow to ultra-deep-level gold mine, operating under Mining Right [DMR Gold Mineral Resources Ref. GP30/5/1/2/2(66)MR] valid from 30 January 2007 to 29 January 2027 covering a total 28.2Moz (-3.9% post-production area of 20,087ha. Kloof is located in the West Wits Line Goldfield of the Witwatersrand Basin, depletion of 0.572Moz) near Westonaria in the Gauteng province of South Africa. The topography is characterised by Gold Mineral Reserves moderately undulating plains, consisting mainly of grassland. 6.5Moz (+2% post-production Kloof, in its current form, dates from April 2000 when the Venterspost (1939), Libanon (1945), depletion of 0.456Moz) Kloof (1968) and Leeudoorn (1993) Mines were amalgamated. The current mine infrastructure Strategic intent consists of five producing shaft complexes that mine open ground and pillars (white areas), with the deepest operating level some 3,347m below surface (45 Level at 4 Shaft), and two gold • Extend the LoM processing plants. The principal mining takes place on the VCR, which constitutes almost 81% of • Stabilise production profiles at the underground Mineral Reserve ounces, the MVR amounts to 6% and the remainder is made current performance levels up from the Kloof Reef (KR) at 9% and the Libanon Reef (LR) at 2%. Surface operations provide • Reduce pay limits through quality 2% to the total mined. mining and cost reduction • 4 Shaft drop-down project has commenced • Target secondary reefs on an incremental basis above infrastructure
Sibanye Gold Mineral Resources and Mineral Reserves 2015 51 SECTION 2 THE KLOOF OPERATION HOME PRINT BACK NEXT
KLOOF CONTINUED
SCHEMATIC 3D SECTION THROUGH THE KLOOF OREBODY LOOKING NORTH-NORTH-EAST
N T
KLOOF OVERVIEW
Mineralisation style Palaeo-placer
Mineralisation characteristics • Hosted by auriferous and uraniferous, quartz pebble conglomerates (reefs) • Laterally extensive with relatively long-range predictability • Clear patterns of mineralisation, governed by sedimentary characteristics
Deposit type Auriferous and uraniferous quartz pebble conglomerates hosted by the VCR, KR and LR of the Elsburg and Kimberley Conglomerate Formations and the MVR of the Main Conglomerate Formation
Licence status and holdings Kloof has a new order mining right in terms of the MPRDA, valid from 30 January 2007 to 29 January 2027 in respect of a mining area totalling 20,087ha. All required operating permits have been obtained, and are in good standing
Based on the current LoM and prevailing economic conditions, if needed, Kloof will ask for an extension of the mining right through a renewal application at the specified time
The Kloof operation also holds a prospecting right [DMR Ref. GP (10096)PR] in respect of a small area (25ha) confined within the Kloof mining right. Kloof has submitted a Section 102 application to amend Kloof’s mining right through the inclusion of the prospecting right
Infrastructure Five shaft complexes (five sub-shafts and one tertiary shaft)
Mining method Scattered stoping, mini-longwall stoping with closely spaced dip pillars (110 x 40m and 100 x 35m regional pillars) and surface rock-dump mining
52 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 THE KLOOF OPERATION
Mineral processing Two gold plants and a centralised elution and carbon treatment facility at the No. 2 Plant: • No. 1 CIP Plant – processing primarily low-grade surface rock dump material • No. 2 CIP Plant – processing primarily underground ore
Tailings disposal Two TSFs with LoM deposition estimated at 32.8Mt against a combined capacity of 61.6Mt (surplus of 28.8Mt)
Climate No extreme climatic conditions are experienced that may affect mining operations
Environmental/Health and Safety Kloof’s systems, procedures and training are on par with international best practice
Life of Mine It is estimated that the current Mineral Reserves will sustain the operation until 2033 (for 18 years)
Competent Persons The Competent Persons per MU designated in terms of SAMREC, that take responsibility for the consolidation, reporting and overall compliance of Kloof’s Mineral Resources and Mineral Reserves are the respective Mineral Resource Managers: MU1: Main Mr S Louw [MMCC] is a registered SAIMM member (No. 707018) and has 34 years’ experience MU2: 7 Shaft and 8 Shafts Mr M Dekeda [BTech. MRM, MSCC] is a registered SAIMM member (No. 703902) and has 14 years’ experience MU3: 3 Shaft Mr K Sibeko [ND Economic Geology; BSc. (Hon) Geology] is a registered GSSA member (No. 964872) and has 16 years’ experience MU4: 4 Shaft Mr JH Engelbrecht [GDE Mining Engineering NHD Mine Surveying, MSCC] is a registered SAIMM member (No. 706905) and has 33 years’ experience
Compliance Internal technical reviews have been conducted by the Competent Persons listed who gave their consent for the disclosure of the C2016 Mineral Resource and Mineral Reserve Statement. All have appropriate experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye
The table below details the development advanced for the last 12 months to December 2015 (C2014 numbers added for comparison). A total of 17.9km was developed in C2015 of which 4.3km was on-reef.
ANNUAL DEVELOPMENT RESULTS Financial year total REVIEW Category Unit VCR MVR LR KR C2015 C2014 Gold Mineral Resources at Kloof Main development decreased by approximately 1.143Moz (advanced) km 11.3 3.4 0.7 2.5 17.9 18.7 (-3.89%) to 28.186Moz post a production depletion of 0.572Moz. Main on-reef development The greatest influence to the year-on- (advanced) km 2.5 0.6 0.3 0.9 4.3 4.0 year change is mainly due to pay limit Channel width cm 110 120 163 154 125 118 adjustment. Average reef value g/t 23.0 7.4 2.6 6.6 14.6 14.1 Gold Mineral Reserves decreased cm.g/t 2,539 885 421 1,012 1,824 1,664 by 0.354Moz (5%) to 6.546Moz following a depletion of 0.456Moz. The decrease is as a result of the accumulation of modifying factors rather than due to one particular factor. Gold Mineral Reserve development will remain a key performance indicator for C2016. A full account of all the operating statistics of Kloof is posted on the back of the Kloof shareholders plan attached at the end of this Mineral Resources and Mineral Reserves Supplement.
Kloof 8 Shaft headgear and processing plant feed
Sibanye Gold Mineral Resources and Mineral Reserves 2015 53 SECTION 2 OPERATIONS AND PROJECTS HOME PRINT BACK NEXT
KLOOF CONTINUED
KEY PLAN TO MINING UNITS (SHAFT ZONES) KEY DEVELOPMENTS AND BROWNFIELD PROJECTS (ON-MINE) The following projects have been included in the Kloof LoM:
• Kloof have commenced with the development of the Kloof 4 Shaft depth extension project during C2015. It is planned to intersect reef during C2021. T N 0 1km 2.5km • A major exploration programme, targeting the KR and MVR at Main and Venterspost 8 Shafts, has resulted in additional Mineral Reserves of ~0.166Moz. • The Eastern Boundary Area (EBA) Project, included in the Mineral Resources, embodies a significantly high grade opportunity in the area below 7 Shaft. Various studies conducted since the 1990s indicated that the EBA project can be economically viable, and requires further study.
10 Shaft • A study to optimise the extraction of the SRD resources is underway. The intention is to improve the economic viability of SRDs that are a distance from 9 Shaft the processing plants.
3 Shaft (I)
8 Shaft3 Shaft (P) 3 Shaft (3D) Main Shaft
1SV Shaft 55 Main Decline 2 SV Shaft4 Shaft 7 Shaft KEA
4 Shaft EXT EBA1
EBA BBE
Kloof 4 Shaft
GOLD MINERAL RESOURCE CLASSIFICATION (REPORTED INCLUSIVE OF MINERAL RESERVES) Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Underground Measured 14.4 20.7 13.4 14.5 6,196 9,618 Indicated AI 1.2 1.9 12.4 12.6 468 775 Indicated BI 24.6 19.2 14.2 13.8 11,246 8,538 Inferred BI 16.4 19.0 19.2 16.7 10,112 10,175 Total underground 56.6 60.7 15.4 14.9 28,023 29,106 Total above infrastructure 15.5 22.6 13.3 14.3 6,664 10,393 Total below infrastructure 41.0 38.1 16.2 15.3 21,359 18,713 Surface Indicated surface rock dump 9.5 13.1 0.5 0.5 163 223 Total gold Mineral Resources 66.1 73.8 13.3 12.4 28,186 29,329
54 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS
VENTERSDORP CONTACT REEF MIDDELVLEI REEF
T N T N 0 1km 2.5km 0 1km 2.5km
Legend Legend Shafts Shafts Mine Boundary Mine Boundary Mined-out areas Mined-out areas VCR Subcrop MVR Subcrop Pillars Pillars Classification Classification Measured Measured Indicated Indicated Inferred Inferred
KLOOF REEF Gold Mineral Resource reconciliation 30,000 29,329 28,710 250 56 28,186 25,000 (620) (3) (815) (13)
T N 20,000 0 1km 2.5km 15,000
Gold (’000oz) 10,000 5,000 0 Paylimit Dec 2014 Dec 2015 Modelling 2015 Depletion Post-depletion Surface sources Geological structure Estimation and geology Legend Shafts Mine Boundary Mined-out areas KR Subcrop Pillars Classification Measured Indicated Inferred
Sibanye Gold Mineral Resources and Mineral Reserves 2015 55 SECTION 2 THE KLOOF OPERATION HOME PRINT BACK NEXT
KLOOF CONTINUED
GOLD GRADE TONNAGE CURVE MODIFYING FACTORS The grade tonnage curve represents undiluted grade (at block width) and tons within the total Mineral Resources (all reefs Parameter Unit Dec 2015 Dec 2014 at zero cut-off). Mineral Resource pay limit cm.g/t 1,430 1,610 Mineral Reserve pay limit cm.g/t 1,580 1,770 700 4,500 Mined value cm.g/t 1,912 2,065 4,000 600 Mine call factor % 82 82 3,500 500 Block factor % 100 100 3,000 Shortfall % 17 17 400 2,500 ons (Mt) T 300 2,000 Mining dilution % 23 34 1,500 Stoping width cm 161 160 200 1,000 Mill width cm 209 213 varage value above cut-off (cm.g/t)
100 A 500 Plant recovery factor UG % 98 98 0 0 Plant recovery factor SRD % 90 90 0 500 1,000 1,500 2,000 2,500 Cut-off grade (cm.g/t) Tons Grade
GOLD MINERAL RESERVE CLASSIFICATION Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Underground Proved 19.6 11.3 7.7 8.1 4,857 2,932 Probable AI 4.6 12.8 6.9 7.9 1,024 3,243 Total above infrastructure 24.2 24.1 7.6 8.0 5,881 6,175 Probable BI 2.1 2.1 7.4 7.9 502 532 Total underground 26.3 26.2 7.5 8.0 6,383 6,706 Surface Probable surface rock dump 9.5 10.3 0.5 0.6 163 194 Total gold Mineral Reserves 35.8 36.5 5.7 5.9 6,546 6,900
GOLD MINERAL RESERVES PER MINING AREA Total Mineral Reserves Total Proved Mineral Reserves Probable Mineral Reserves 31 Dec 2015 Dec 14
Tons Grade Gold Tons Grade Gold Tons Grade Gold Gold Mining area (Mt) (g/t) (‘000 oz) (Mt) (g/t) (‘000 oz) (Mt) (g/t) (‘000 oz) (‘000 oz) Main Shaft SV 1 3.4 3.7 411 3.4 3.7 411 504 Main Shaft SV 2 3.9 9.3 1,162 0.2 6.2 35 4.1 9.2 1,197 1,292 3 Shaft 2.7 10.1 881 0.5 2.8 48 3.2 8.9 929 983 4 Shaft 7.2 7.7 1,796 3.7 7.6 897 10.9 7.7 2,694 2,809 4 Shaft drop-down 2.1 7.4 502 2.1 7.4 502 532 7 Shaft 1.2 6.8 267 0.1 12.0 22 1.3 7.0 290 492 8 Shaft 1.1 9.4 340 0.1 5.3 21 1.2 9.0 361 95 Total underground 19.6 7.7 4,857 6.7 7.1 1,526 26.3 7.5 6,383 6,706 Surface Surface rock dumps 9.5 0.5 163 9.5 0.5 163 194 Total gold Mineral Reserves 19.6 7.7 4,857 16.2 3.2 1,689 35.8 5.7 6,546 6,900
56 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 THE KLOOF OPERATION
GOLD MINERAL RESERVE RECONCILIATION AT 31 DECEMBER 2015 Gold Mineral Reserve reconciliation Factors Moz 8,000 6,900 7,000 6,444 166 121 12 17 6,546 31 December 2014 6.900 6,000 (456) (147) (67) 2015 Depletion (0.456) 5,000 4,000 Post depletion 6.444 3,000 Gold (’000oz) Geological changes (0.147) 2,000 Secondary reefs 0.166 1,000 0 Inclusion of white areas 0.121 Evaluation (0.067) Dec 2014 Dec 2015 Evaluation Technical factors 0.012 White areas 2015 Depletion Post-depletion Secondary reefs echnical factors Surface sources T
Surface additions 0.017 Geological changes 31 December 2015 6.546
CURRENT LOM ESTIMATED TO SUSTAIN OPERATION UNTIL 2033, FOR A FURTHER 18 YEARS
HOISTING AND PRODUCTION CAPACITIES Operational hoisting Planned production Mining unit Operating shaft capacity (ktpm) (ktpm)* 1 Main 100 85 2 7 32 21 2 8 15 12 3 3 55 41 4 4 82 55 * Planned production is five-year hoisted average from C2016 onwards
PLANT CAPACITIES Design capacity Current operational Average recovery Material Plant (ktpm) capacity (ktpm) factor (%) treated 1 (CIP) 180 180 91.6 Primarily SRD 2 (CIP) 120 165 97.7 Primarily UG
Sibanye Gold Mineral Resources and Mineral Reserves 2015 57 SECTION 2 OPERATIONS AND PROJECTS HOME PRINT BACK NEXT
PROJECTS
In achieving the aim of growing Sibanye’s Mineral Reserves and commodity production, the focus is on high-quality targets and opportunities. Projects that enhance value are being assessed from the large Mineral Resource base.
Since the inorganic growth of 2014, Sibanye has a large endowment of brownfields projects that are at various stages of evaluation, from early stage scoping studies to FS that can be underpinned by leveraging synergies off existing infrastructure. Project evaluation criteria have been developed to guide the Mineral Resource and Mineral Reserve estimations, in the hope of acquiring a fundamental understanding of the potential of each project to extract optimal value.
In line with Sibanye’s strategy, steps to improve the quality of assets through delivery on major advanced and growth projects is in progress and include:
• Project appraisal that underpins a focus on value creation and dividend yield rather than driven by growth • An established in-house project assessment capacity • The risk assessment, returns and the impact of financing on returns, for each project
Surface drill rig
58 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS THE BURNSTONE PROJECT
LOCATION
Mining Right Section 102 Application Towns Arterial roads Main roads Vertical shafts Decline shaft Coordinates Latitude: 26° 39’00”S Longitude: 28° 40’12”E Balfour
BURNSTONE
Greylingstad
T N 0 2.5km 5km Gauss Conform Projection Central Meridian 29°
OVERVIEW The Burnstone Project (Burnstone), acquired in July 2014, is a project in execution. The completed Gold Mineral Resources FS was independently reviewed in November 2015, with finance approval for development to begin 8.890Moz in C2016. The mine design and schedule in the FS was limited to the mineable reserves within a Gold Mineral Reserves 3km radius of the shaft infrastructure. Extensive development will begin in C2016 with first gold 1.799Moz production due in C2018 and full production run rate to be achieved in C2020. Strategic intent The operation has a Mining Right [DMR Ref. MP30/5/1/2/2(248)MR] to mine and process gold, • Develop a new mine from first silver and aggregate, covering a total area of 13,135ha, and is valid from 17 February 2009 to principles, supported by existing, 16 February 2027. newly-built, plant and infrastructure A section 102 application in line with the MPRDA to enlarge the Burnstone MR to 38,900ha, is • Modifying the mining methods to pending execution. suit the orebody • Confirming areas with the Geographically, Burnstone is in the South Rand Goldfield of the Witwatersrand Basin next to the geological model town of Balfour, approximately 75km east of Johannesburg in the Mpumalanga province of South Africa. Burnstone is accessed from the Johannesburg to Durban N3 highway via the Heidelberg South R23 road at the Balfour exit. The town of Balfour is located approximately 18km east of the N3. The Burnstone property is accessible via a network of unpaved roads, approximately 6.5km east of Balfour.
The Burnstone area forms part of the South African Highveld, situated 1,670m above mean sea level. Gently-undulating grassland terrain predominates in the areas not used for farming activities. The mild climate, with warm to hot, moist summers and cool dry winters is conducive to farming activities including maize, fodder and livestock farming, prevalent in the project area.
Sibanye purchased Witwatersrand Consolidated Gold Resources Limited (Wits Gold) and, additionally, aquired Southgold Exploration (Pty) Limited, the sole owner of the Burnstone assets in 2014. Two shaft complexes; a 3-leg decline and vertical shaft (shaft bottom at 495m below surface), a 125,000tpm gold processing plant, TSF and all the necessary equipment and services of a producing operation comprise the Burnstone infrastructure. Burnstone has been on care and maintenance since mid-2012. Under previous ownership, the mine produced approximately 38koz of gold.
The UK9 Reef of the Kimberley Formation, is the only known exploitable gold bearing reef.
Sibanye Gold Mineral Resources and Mineral Reserves 2015 59 SECTION 2 OPERATIONS AND PROJECTS HOME PRINT BACK NEXT
BURNSTONE PROJECT CONTINUED
SCHEMATIC 3D SECTION OF THE BURNSTONE OREBODY LOOKING NORTH
T N
PROJECT FUNDAMENTALS Burnstone lies within the Witwatersrand Basin and Archaean (2.7 billion year-old) sedimentary basin. The Basin is filled with approximately 14,000m sedimentary and subordinate volcanic rocks, which have been folded along a north-east to south-west axis into an asymmetrical synclinorium. The sediments consist mainly of quartzites and shales and less prevalent, but generally economically important, gold-bearing conglomeratic zones, which occur on regional unconformities. These are commonly referred to as reefs or placers.
Burnstone is located in the South Rand Basin, a subsidiary of the main Witwatersrand Basin. The gold-bearing target UK9 Reef of the Kimberley Formation, occurs in the Central Rand Group of rocks. This reef lies between the outcrop and a depth of 1,300m below surface in the mining right area. Structurally, the project area is located on the northern limb of the arcuate South Rand Basin, which is locally deformed by a east-north-east-plunging anticline and cut by east-west and north-south normal faults, formed in response to the stress regime corresponding to the main structural feature of the region, which is the east-west striking Sugarbush Fault. This fault is a left-lateral wrench fault, which comprises the northern boundary of the South Rand Basin at this point.
The UK9 Reef is stratigraphically split into the UK9a and UK9b members, and the UK9a is further laterally subdivided into either channel or inter-channel facies. The UK9a channel facies represents the primary mining horizon, while the UK9a inter-channel Facies and UK9b offer only local upside potential. Intermediate Pump Station (IPC)
60 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS
SCHEMATIC NORTH – SOUTH SECTION ACROSS THE BURNSTONE PROJECT, SHOWING THE RELATIONSHIP BETWEEN UK9a AND UK9b
SOUTH NORTH
9a Channel Reef 9a Inter-channel Reef
4m
9b Channel remnants
Kimberley Reef in the South Rand Goldfields was first discovered in 1887 and soon led to the establishment of a few small operations that operated sporadically between 1892 and 1962 and collectively produced only 0.05Moz of gold at an average of 5.3g/t. A lack in continuity of grade and tonnage as well as structural complexity is commonly posed as the reason for the demise of these operations.
A steep rise in the gold price sparked renewed interest in the South Rand Goldfield and various major mining houses conducting fairly extensive exploration programmes between 1974 and 1993, but general low grades, notwithstanding at shallow depths, resulted in a poor ranking against rival projects elsewhere in the Witwatersrand Basin. As a consequence, none of these projects were advanced past the exploration phase.
Southgold drilled an additional 18 boreholes in 2002, prior to Sibanye’s acquisition. These were primarily within the current Burnstone mining right area and intermittently intersected higher grade Kimberley Reef. In November 2002 Great Basin Gold (GBG) acquired 100% of Southgold and immediately embarked on an extensive surface diamond drilling programme. Until September 2012, a further 374 boreholes were drilled, either within, or in close proximity to the current Burnstone mining right. Based on this drilling programme, GBG declared a large measured and indicated gold Mineral Resource, upon which the Burnstone operation was initiated, in June 2006. Burnstone saw the inclusion into Sibanye in 2014.
The Burnstone Project, as per the FS, was presented to the Sibanye Board for approval in 2015. The revised project envisages 110koz per annum mine with a 23-year LoM plan, with reserves of 1.8Moz and a resource of 8.9Moz. The mine design and schedule in the FS was limited to the mineable reserves within a 3km radius of the shaft infrastructure. Extensive development will begin in 2016 with first gold production due in 2018 and full production run rate to be achieved in 2020. Total project capital forecast at R1,852 million (in C2015 terms). Burnstone Shaft headgear In C2015, R282 million was spent on completing the pumping and rock hoisting infrastructure, dewatering the mine and approximately 2km of development to access the orebody. The project budget for C2016 is R705 million for procurement of additional mechanised fleet, extensive The major capital development to access the orebody and additional infrastructure. Approximately 4,500m of primary off-reef development will be done in 2016 to access the various projects’ budget planned mining blocks as well as 1,200m on-reef development in preparation for the first raise lines in C2017. Three existing mechanised development fleets were refurbished in C2015 and an (including adjacent property growth and exploration activities) presented additional three fleets will be procured and delivered in C2016. A mechanised development fleet for C2016 amounts to R1,028 million – comprises one twin-boom drill rig, one roof bolter, one LHD (load, haul, dump) machine, one or up from R484 million approved two dump trucks and a dedicated emulsion explosive charge-up utility vehicle. in C2015. The major capital projects’ budget (including growth and exploration) presented for C2016 amounts to R1,028 million – up from R484 million approved in 2015.
Sibanye Gold Mineral Resources and Mineral Reserves 2015 61 SECTION 2 OPERATIONS AND PROJECTS HOME PRINT BACK NEXT
BURNSTONE PROJECT CONTINUED
BURNSTONE OVERVIEW
Mineralisation style Palaeo-placer
Mineralisation characteristics • Hosted by auriferous and uraniferous predominantly quartz pebble conglomerates (reefs) • Laterally continuous with mid-range predictability • Clear patterns of mineralisation governed by sedimentary characteristics
Deposit type Shallow gold deposit exploiting the UK9a Reef of the Kimberley Formation, Central Rand Group, Witwatersrand Supergroup
Licence status and holdings Burnstone has a new order mining right in terms of the MPRDA, valid from 17 February 2009 to 16 February 2027 in respect of an area totalling 13,135.724ha. All required operating permits have been obtained, and are in good standing Burnstone also holds a large number of prospecting rights either contiguous or in the vicinity to the Burnstone mining right. Burnstone is in the process of finalising a Section 102 application to amend the Burnstone mining right with the inclusion of certain farms or portions thereof that form part of the prospecting right holdings
Infrastructure Shallow underground mining project with two established shaft complexes (one vertical and one decline shaft)
Mining method Conventional selective scattered breast mining with scraper cleaning and mechanised footwall infrastructure
Mineral processing One CIL gold processing plant
Tailings disposal One tailing storage facilities with LoM deposition capacity of 24Mt
Climate The area is characterised by a mild climate, with warm to hot, moist summers and cool dry winters. No extreme climate conditions are experienced that may affect mining operations
Environmental/Health and Safety Burnstone currently holds all material permits required to conduct mining and exploration, as well as an approved Environmental Management Programme (EMP)
Life of Mine LoM plan optimisation in progress
Competent Persons The Competent Persons designated in terms of SAMREC, who take responsibility for the consolidation, reporting and overall compliance of Burnstone’s Mineral Resources are: Mr L Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM member (No. 704140) and has 39 years experience Mr J van Eeden [MSc. Geology] is a registered SACNASP member (No. 400043/09) and has 31 years’ experience Mr S Wild [GDE (Mining Engineering); NHD MRM] a registerd SAIMM member (No. 706556) and has 20 years’ experience Mr G Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC] is a registered PLATO member (No. PMS0243) and has 27 years’ experience
Compliance Internal technical reviews have been conducted by the Competent Persons who gave their consent for the disclosure of the C2015 Mineral Resource Statement. The competent persons have appropriate experience relative to the type and style of mineral deposit under consideration and are a full-time employees of Sibanye
REVIEW A gold Mineral Resource of 8.890Mt at an average grade of 5.1g/t has been declared for Burnstone. A maiden gold Mineral Reserve of 1.799Moz has been stated. KEY DEVELOPMENTS DURING 2015 • The FS was approved and capital allocated in C2015 for development commencement in C2016. • The additional geological review included an updated structure model and a detailed sedimentological study of the UK9 Reef led to an updated facies model and related geo-domains and trends for evaluation. • A thorough review and QA/QC of all the data in line with Sibanye’s standards and procedures. The revised model is consistent with the characteristics of similar orebodies in the East Rand Basin, affording greater confidence in the interpretation and supporting the gold Mineral Resource estimate.
62 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS
GOLD MINERAL RESOURCE CLASSIFICATION AS AT 31 DECEMBER 2015 Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold Mineral Resource classification as at 31 December 2015 underground Dec15 Dec14 Dec15 Dec14 Dec15 Dec14 Indicated 25.4 25.4 5.3 5.3 4,350 4,350 Inferred (AI) 28.7 28.7 4.9 4.9 4,540 4,540 Total underground 54.1 54.1 5.1 5.1 8,890 8,890 Total Resource 54.1 54.1 5.1 5.1 8,890 8,890
GOLD GRADE TONNAGE CURVE MODIFYING FACTORS The grade tonnage curve represents undiluted grade (at block width) and tons within the total Mineral Resources (all reefs at Parameter Unit Dec 2015 Dec 2014 zero cut-off). Mineral Resource pay limit cm.g/t 440 250 3,500 Mineral Reserve pay limit cm.g/t 480 Mined value cm.g/t 605 3,000 200 Mine call factor % 86 2,500 Block factor % 100 150 2,000 Shortfall % (2)
ons (Mt) Mining dilution % 2 T 100 1,500 Stoping width cm 120 1,000 Mill width cm 122
50 verage value above cut-off (cm.g/t) A 500 Plant recovery factor UG % 96
0 0 0 500 1,000 1,500 2,000 2,500 Cut-off value (cm.g/t) Tons Grade
GOLD MINERAL RESERVE AS AT 31 DECEMBER 2015 Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold Mineral Resource classification as at 31 December 2015 underground Dec15 Dec14 Dec15 Dec14 Dec15 Dec14 Underground Proved Probable 13.0 4.3 1,799 Total underground 13.0 4.3 1,799 Surface
Total Resource 13.0 4.3 1,799
HOISTING AND PRODUCTION CAPACITIES Operational hoisting Planned production Mining unit Operating shaft capacity (ktpm) (ktpm)* 1 1 165 85
* At peak between 2022 – 2026
PLANT CAPACITIES Design capacity Current operational Average recovery Material Plant (ktpm) capacity (ktpm) factor (%) treated 1 125 125 96.0 UG
Sibanye Gold Mineral Resources and Mineral Reserves 2015 63 SECTION 2 OPERATIONS AND PROJECTS HOME PRINT BACK NEXT WEST RAND TAILINGS RETREATMENT PROJECT
RANDFONTEIN Mining right SURFACE OPERATION MILLSITE 38-41 Section 102 application TSF active MILLSITE PROSPECTING RIGHT TO BE INCLUDED INTO TSF dormant COOKE 1,2,3 Planned Regional TSF Randfontein LINDUM Towns
National roads HARMONY DOORNKOP Arterial roads PLANT EXTENSION OF KLOOF Main roads MINING RIGHT Surface plants COOKE Shafts VENTERSPOST NORTH
New Central Plant VENTERSPOST COOKE 123 (planned) DRIEFONTEIN 4 SOUTH DRIEFONTEIN 2 DRIEFONTEIN 1 Westonaria LIBANON ZUURBEKOM COOKE 4 Carletonville PROSPECTING RIGHT TO BE INCLUDED INTO COOKE 123
COOKE 4 SOUTH TSF PR DRIEFONTEIN TO BE INCLUDED INTO GOLD FIELDS COOKE 123 DRIEFONTEIN 5 KLOOF
DRIEFONTEIN 3 PLANNED RTSF Fochville EXTENSION OF T N KLOOF MINING RIGHT Co-ordinates 0 5km LEEUDOORN Latitude: 26° 21’00”S KLOOF 2 Gauss Conform Projection Longitude: 27° 42’00”E Central Meridian 27°
Sibanye is on track with its vision of creating sustainable value for all its stakeholders by growing the business, Sibanye will be able to provide that Gold Mineral Resources value into the future 6.486Moz (+0.4% year-on-year) Uranium Mineral Resources OVERVIEW 99.088Mlb (+0.4% year-on-year) Gold mining in the Witwatersrand area has accumulated TSFs, which Sibanye exploits, and has proven to contain recoverable grades of gold and uranium. Gold Mineral Reserves 6.486Moz (+0.4% year-on-year) WRTRP incorporates all of Sibanye’s current and dormant TSFs on the West Rand, all of which Uranium Mineral Reserves 99.088Mlb form part of new order MRs as well as several PRs, collectively valid from 2007 to 2027 (earliest (+0.4% year-on-year) expiry date of a valid mining right). The WRTRP assets stretch from Randfontein to Carletonville and are accessed via the local R28 highway between Randfontein and Westonaria, or via the N12 Strategic intent national road between Johannesburg and Potchefstroom. • Building Sibanye’s sixth operation Gently undulating savannah grassland plains prevail in the surrounds of the WRTRP. Pre-mining • Regional consolidation conditions were generally farmlands, which are now largely built-up and industrialised. The area is opportunities present potential characterised by a mild climate, with warm to hot, moist summers and cool dry winters. upside The WRTRP in its current form dates from May 2014 when Sibanye acquired the Cooke assets • The strategic phasing of capital in from Gold One, merging the Cooke TSF assets with those of the historic Kloof and Driefontein order to generate cash flow and TSF assets. enhanced value PROJECT FUNDAMENTALS • Considering utilisation of existing The WRTRP is key to the Sibanye surface-operations strategy, which involves leveraging existing surface infrastructure surface operations and infrastructure and developing a strong, long-life surface business, by • The DFS was completed during exploiting the low-risk and relatively high-margin characteristics of the surface resources located C2015 and further metallurgical on the West Rand. The WRTRP is well positioned to become Sibanye’s sixth mine and also work and front end engineering presents a valuable environmental solution for existing and future surface tailings, promoting design to be undertaken socially and environmentally responsible deposition of tailings in a centrally managed area. • West Rand community and social Prior to a WRTRP PFS a number of other studies had been conducted including the Gold Fields development upliftment Limited Tailings Treatment Project (DFS accuracy), Cooke Uranium Project (DFS accuracy and 70% engineering), Gold Fields/Senet Kloof Driefontein Complex Study (PFS accuracy) and the West Rand surface optimisation scoping study.
64 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS
The business rationale leading to the current Sibanye status of the WRTRP is based on the following:
REVIEW • Value accretive (net present value positive project) The WRTRP PFS (assessing the • regional synergies add potential upside to current value potential for extraction of gold and uranium from Sibanye’s West Wits • Remediation solution for existing and future surface tailings Line and the adjacent Cooke TSFs), • extracting residual gold and uranium unlocks value was successfully concluded and is • leverages existing metallurgical capacity and extends operational life currently the subject of a DFS. The Sibanye gold and uranium Mineral • reduces future environmental liability Resources and Mineral Reserves • releases land for development estimate for the WRTRP are tabulated • A modular and phased design below and are compliant in respect of • utilising capacity at existing infrastructure (lower upfront capital) the SAMREC Code. • phased and flexible capital scheduling The gold and uranium Mineral • early phases partially fund later capex Resources and Mineral Reserves remain largely unchanged year-on- • flexibility and leverage to future commodity prices year with only a small increase in • Significant investment into the declining West Rand Mineral Reserves due to deposition • direct and indirect job creation on active TSFs during 2014 (gold 0.027Moz and uranium 0.435Mlb). KEY DEVELOPMENTS WRTRP through the completion of the DFS has proven to be economically viable. This viability involves the construction of a large-scale Central Processing Plant for the extraction of gold and uranium from the re-treatment of historic and current tailings. A further objective remains the re-deposition of the residue onto a regional tailings facility, in accordance with modern sustainable deposition practices, reducing future environmental liabilities.
Sibanye’s revised strategy is to develop the WRTRP in phases. The conclusion of the DFS enables the Front End Engineering Design phase together with the roll-out of a pilot plant.
GOLD MINERAL RESOURCE AND MINERAL RESERVE CLASSIFICATION Mineral Resources Mineral Reserves
Dec Dec 31 Dec 2015 31 Dec 2015 2014 2014 Tons Grade Gold Gold Tons Grade Gold Gold Gold classification (Mt) (g/t) (‘000oz) (‘000oz) Gold classification (Mt) (g/t) (‘000oz) (‘000oz) Tailings storage facilities Tailings storage facilities Driefontein (Measured) 169.1 0.3 1,819 1,805 Driefontein (Proved) (Indicated) (Probable) 169.1 0.3 1,819 1,805 Kloof (Measured) 265.3 0.3 2,267 2,253 Kloof (Proved) (Indicated) (Probable) 265.3 0.3 2,267 2,253 Cooke (Measured) 228.1 0.3 1,876 1,876 Cooke (Proved) (Indicated) 52.3 0.3 524 524 (Probable) 280.4 0.3 2,401 2,401 Total 714.8 0.3 6,486 6,459 Total 714.8 0.3 6,486 6,459
Sibanye Gold Mineral Resources and Mineral Reserves 2015 65 SECTION 2 OPERATIONS AND PROJECTS HOME PRINT BACK NEXT
WEST RAND TAILINGS RETREATMENT PROJECT CONTINUED
URANIUM MINERAL RESOURCE AND MINERAL RESERVE CLASSIFICATION Mineral Resources Mineral Reserves
Dec Dec 31 Dec 2015 2014 31 Dec 2015 2014
Tons Grade U3O8 U3O8 Tons Grade U3O8 U3O8 Gold classification (Mt) (kg/t) (‘000lb) (‘000lb) Gold classification (Mt) (kg/t) (‘000lb) (‘000lb) Tailings storage facilities Tailings storage facilities Driefontein (Measured) 160.9 0.064 22,686 22,326 Driefontein (Proved) (Indicated) (Probable) 160.9 0.064 22,686 22,326 Kloof (Measured) 265.3 0.038 22,146 22,071 Kloof (Proved) (Indicated) (Probable) 265.3 0.038 22,146 22,071 Cooke (Measured) 228.1 0.088 44,320 44,320 Cooke (Proved) (Indicated) 52.3 0.086 9,936 9,936 (Probable) 280.4 0.088 54,256 54,256 Total 706.6 0.064 99,088 98,653 Total 706.6 0.064 99,088 98,653
Competent Persons The Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of WRTRP’s 2015 gold and uranium Mineral Resources and Mineral Reserves are:
Mr L Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM member (No. 704140)
Mr I Davidson [BSc. (Hons) Geology] is a registered SAIMM member (No. 706805)
Mr G Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC], a registered PLATO member (No. PMS0243)
Compliance Internal technical reviews have been conducted by the Competent Persons listed who gave their consent for the disclosure of the C2015 Mineral Resource and Mineral Reserve Statement. All have appropriate experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye.
Return water dam at TSF
66 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS SOUTHERN ORANGE FREE STATE PROJECTS
Quality opportunities and targets are the primary focus SOFS Mining Right when considering the Mineral Prospecting Rights Towns HARMONY Resource and Reserve of Arterial Roads the SOFS Projects. Options Main roads to increase value are being Welkom HARMONY HARMONY assessed for the Beisa North ADAMSONS Project, the Bloemhoek Project VLEY BEISA Virginia NORTH and the De Bron Merriespruit HAKKIES Project BEATRIX DE BRON MERRIESPRUIT
ROBIJN BEATRIX BLOEMHOEK Gold Mineral Resources 9.938Moz (no change) Uranium Mineral Resources 35.373Mlb (no change) HARMONY
Gold Mineral Reserves BEISA 2.112Moz (+1% year-on-year) SOUTH Uranium Mineral Reserves T N (not estimated) Co-ordinates 0 5km Strategic intent Latitude: 26° 39’00”S Gauss Conform Projection Longitude: 28° 40’12”E Central Meridian 27° • Sibanye is investing potential Theunissen synergies between the SOFS projects and the existing Beatrix operation • Sibanye intends to combine the OVERVIEW Beatrix and SOFS MRs within the The Southern Orange Free State (SOFS) Projects include Sibanye’s Wits Gold MR and PR greater Freestate MR holdings in the Free State Goldfield of the Witwatersrand Basin. The MR consolidating the De Bron Merriespruit, Bloemhoek, Hakkies and Robijn Projects into DMR Ref. FS30/5/1/2/2(10005) MR, has been approved for a period of 23 years and is in the process of being executed. Geographically the mining right is contiguous to the east of the Beatrix mining right some 5km south of Virginia. The prospecting rights are for the Beisa North [DMR Ref. FS30/5/1/1/2PR] and Beisa South [DMR Ref. FS30/5/1/1/2(10134)PR] Projects, which are respectively contiguous to the north and south of the Beatrix Beisa 4 Shaft ground. The PRs are valid until April 2016 and February 2016 respectively.
The project area is semi-arid and topographically flat. Activities mainly consist of agriculture. No extreme weather conditions are experienced that may affect exploration or mining operations.
The SOFS in its current form dates from April 2014 when Sibanye acquired Wits Gold. Sibanye is in the process of submitting a Section 102 application seeking consent from the Minister of Mineral Resources to amend the Beatrix MR by consolidating the Beatrix MR and the SOFS MR and PRs.
The De Bron Merriespruit mine design has been optimised to a semi-mechanised mining method similar to the Burnstone Project design. GEOLOGY A three dimensional reconstruction of the Central Rand Group stratigraphy in the Free State Goldfield indicates a progressive southerly thinning of the sequence, south of the Sand River, into the SOFS mining and prospecting right areas. This attenuation of the Central Rand Group is related to uplift during the latter phase of deposition in the basin, causing erosion by superimposed, on-lapping unconformities. These erosional relationships particularly affected the Basal Reef (main economic horizon of the historic gold mines around Welkom) that subcrops and does not extend to the south of the Sand River. However, four other reefs, prospective for gold and uranium, have been intersected in the Central Rand Group in the area south of the Sand River and include the Leader Reef, the B Reef, the AAR/KKR and the Beatrix/VS5 Reef. The Beisa Reef has also been extensively explored, as a potential uranium resource, along the over-folded western margin of the Southern Free State Goldfields.
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The Beatrix/VS5 unconformity at the base of the Eldorado Formation (Eldorado Unconformity) is developed across the entire SOFS area and therefore represents a reference surface for the construction of a structural map of the area. The resultant structure contours indicate that the Central Rand Group is deformed in a broad syncline, with smaller parasitic folds marking the southern limit of the prospective Witwatersrand Basin. This compression was responsible for active uplift towards the southern margin of the Free State Goldfield that resulted in a complex interplay between a series of superimposed unconformity surfaces. Repeated erosion of the footwall sequences caused the incorporation and winnowing of auriferous and uraniferous detritus into the reefs overlying the unconformities.
The north-easterly-plunging fold has been off-set by a series of later normal faults related to the regional Platberg extensional event. The normal faults generally strike north-south, the most significant being the De Bron Fault, which has a relative down-throw of more than 1,000m towards the west. A structure of greater magnitude, the Virginia Fault, strikes north-north-east and with a down throw to the east is responsible for the preservation of the Central Rand Group stratigraphy in the Robijn outlier. The Merriespruit Thrust Fault is a southerly-verging compressional structure that has an effective vertical displacement of 50 to 100m to the east of the De Bron Fault. These structures divide the SOFS area into four discrete domains or project areas in which the depth of the prospective reefs below surface will have a profound effect on any plan to exploit these resources.
STRATIGRAPHIC COLUMN FOR THE FREE STATE GOLDFIELDS
Formation Member Dreyerskuil VCR
Uitkyk VS1a
Eldorado Lorraine VS1 Van Den Heeversrust VS2 Multiple band reef package VS2 Rosedale VS4 Beatrix Beatrix /VS5 Reef
Aandenk A Reef
Aandenk Reef Kalkoenkrans Reef TURFONTEIN SUBGROUP Spes Bona
B Reef Doornkop
Dagbreek Upper Shale Marker
Leader Reef
Harmony Middle Reef Saaiplaas Reef CENTRAL RAND GROUP Basal/Steyn Reef LF1 LF2 Welkom LF3 Intermediate Reef/UF4 MF1 MF2 St Helena MF3 MF4 JOHANNESBURG SUBGROUP LF1 to LF4 LF5 Commonage Reef Virginia LF6 Beisa Reef Maraisburg 0 cm 10
Brecciated reef
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SCHEMATIC 3D SECTION OF THE SOFS OREBODY LOOKING NORTH
T N
DE BRON MERRIESPRUIT The De Bron Merriespruit (DBM) Project is located between the De Bron Fault, which marks SOFS PROJECT the western boundary of the project, and the Virginia Fault in the east. The northern boundary REVIEW includes the southern extent of the old Merriespruit gold mine obtained from Harmony, while the Sibanye has thoroughly reviewed the southern boundary extends past the subcrop position of the potential orebodies (reefs). The DBM geological and LoM models of the Project is the only SOFS project that was subjected to a FS. De Bron Merriespruit, Bloemhoek, PROJECT FUNDAMENTALS Hakkies and Robijn, and Beisa North Four primary reef horizons containing gold and uranium are developed on well-defined regional and Beisa South Projects in the SOFS, unconformities in the DBM Project area. These include the Beatrix/VS5, Aandenk, B and Leader and re-estimated the respective Reefs, all of which have been mined extensively in the southern Free State Goldfields. The four reefs Mineral Resources in accordance with are developed within a 20 to 40m stratigraphic interval on the DBM property and are preserved at the Group’s protocols and procedures depths of between 500 and 1,200m below surface. The, Beatrix/VS5 and Aandenk Reefs constitute and benchmark pay limits from the principal economic orebody, while the less extensive Leader and B Reefs are regarded as the Beatrix Operation. Sibanye is up-side potential for the Project. The reefs are generally characterised by shallow dips of between satisfied that the potential exploitable 10° and 25° and a thickness of 60 to 210cm that make them suitable for exploitation by means of reefs identified and evaluated have typical narrow stoping techniques similar as conducted at the Beatrix operation. been interpreted with a high degree The Leader, B and Aandenk Reefs all subcrop against the Beatrix/VS5 unconformity across the of diligence with respect to their project area. This unconformity is undulating forming remnant channels, resulting in complex stratigraphic continuity and geology subcrop patterns. structure. The erosion and reworking of underlying reefs is believed to play a strong role in controlling the gold and uranium mineralisation in the VS5 Reef. Consequently, gold mineralisation increases south of the respective subcrops, as the VS5 Reef becomes more oligomictic due to the re- working of the underlying material. This coincides with the development of “transitional facies” of the VS5 and eventually the BXR facies. All four of the above reefs contain uranium, although the quantities are regarded as uneconomic at current price levels and therefore has not been included in the valuation models.
Historically a total of 72 boreholes (31 surface and 41 underground) were drilled in the DBM Project area and immediate surrounds. Wits Gold drilled an additional 27 boreholes within the project area between 2006 and 2012. General consensus is that adequate quality assurance and quality control (QA/QC) has been applied for the data to be used for evaluation. Royal HaskoningDHV subsequently completed a FS for the DBM Project in 2013, which led to a SAMREC Code compliant Mineral Reserve declaration by Wits Gold. Sibanye has since re- estimated, further in line with Sibanye standards and protocols.
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THE SOUTHERN ORANGE FREE STATE PROJECTS OVERVIEW
Mineralisation style Palaeo-placer
Mineralisation characteristics • Hosted by auriferous and uraniferous predominantly quartz pebble conglomerates (reefs) • Laterally continuous with mid-range predictability • Clear patterns of mineralisation governed by sedimentary characteristics
Deposit type Shallow gold/uranium deposits comprising the BXR/VS5, Aandenk, B and Leader Reefs of the Central Rand Group; Witwatersrand Supergroup
Licence status and holdings De Bron Merriespruit Project forms part of a mining right in terms of the Minerals and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002), in respect of an area totalling 13,135ha. Although the mining right [DMR Ref. FS30/5/1/2/2(10005)MR] has been granted (25 February 2014) it still has to be executed. The DBM portion of the MR totals approximately 4,344 hectares. All required permits relative to the status of the project have been obtained, and are in good standing
Infrastructure DBM is an exploration project of which a FS has been completed in 2013 but no mining activities have been initiated yet
Mining method A provisional mine design caters for a standard Witwatersrand gold mine design accessing underground orebody via a vertical and decline shaft system and utilising conventional scattered breast mining methods
Climate The area is characterised by a mild climate, with warm to hot, moist summers and cool dry winters. No extreme climate conditions are experienced that may affect mining operations
Life of Mine The current LoM is estimated at 19 years
Competent Persons The Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of DBMs 2015 gold Mineral Resources and Mineral Reserves are:
Mr Q Meyer [MSc. Geology], a registered SACNASP member (No. 400063/88)
Mr L Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM member (No. 704140)
Mr J van Eeden [MSc. Geology], a registered SACNASP member (No. 400043/09)
Mr G Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC], a registered PLATO member (No. PMS0243)
Compliance Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 DBM gold Mineral Resource and Mineral Reserve Statement. The Competent Persons have appropriate experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye
70 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 2 OPERATIONS AND PROJECTS
REVIEW The DBM Mineral Resource estimated remains constant at 4.022Moz. The gold Mineral Reserves were derived from the latest revised geology and estimation models, with the main infrastructure design and capital based on that of the original FS conducted by Royal HaskoningDHV in 2013. The mine design has been optimised utilising a semi-mechanised mining method similar to the Burnstone design. The gold Mineral Reserves renained constant 2.1Moz. 0 cm 10
Aandenk Reef
GOLD GRADE TONNAGE CURVE MODIFYING FACTORS The grade tonnage curve represents undiluted grade (at block Parameter Unit Dec 2015 Dec 2014 width) and tons within the total Mineral Resources (all reefs at zero cut-off). Mineral Resource pay limit cm.g/t 760 * Mineral Reserve pay limit cm.g/t 830 * 180 3,000 160 Mined value cm.g/t 870 691 2,500 140 Mine call factor % 81 82 120 2,000 Block factor % 100 100 100 Shortfall % 0 0 1,500
ons (Mt) 80
T Mining dilution % 32 28 60 1,000 Stoping width cm 127 121 40 500 Mill width cm 187 170 varage value above cut-off (cm.g/t)
20 A Plant recovery factor UG % 96 96 0 0 0 500 1,000 1,500 2,000 2,500 * Estimated costs based on Beatrix South Cut-off grade (cm.g/t) Tons Grade
GOLD MINERAL RESOURCE AND MINERAL RESERVE CLASSIFICATION Mineral Resources Mineral Reserves
Dec Dec 31 Dec 2015 2014 31 Dec 2015 2014 Tons Grade Gold Gold Tons Grade Gold Gold Gold classification (Mt) (g/t) (‘000oz) (‘000oz) Gold classification (Mt) (g/t) (‘000oz) (‘000oz) Underground Underground Measured Proved Indicated 23.0 4.5 3,307 3,307 Probable 15.4 4.3 2,112 2,088 Inferred 5.3 4.2 715 715 Total 28.3 4.4 4,022 4,022 Total 15.4 4.3 2,112 2,088
GOLD MINERAL RESERVE RECONCILIATION AT 31 DECEMBER 2015 Gold Mineral Resource reconciliation Item Moz 2,500 2,088 2,088 24 2,112 2,000 31 December 2014 2.088 29,329 1,500 2014 Depletion 1,000 Post-depletion 2.088 Gold (’000oz ) 500 Mine design layout optimisation 0.024 0 31 December 2015 2.112 Dec 2014 Post-depletion Revised mine design Dec 2015
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BLOEMHOEK The Bloemhoek Project constitutes the western extent of the SOFS MR, covering an area of approximately 4,060ha. REVIEW New geological models, incorporating The southern boundary of the Bloemhoek Project is situated a few hundred metres north of borehole data from both Wits Gold Beatrix 3 Shaft and is enclosed to the north by the Beatrix MR and bounded to the east along and Beatrix have resulted in a the De Bron Fault. Sibanye reviewed the geological structure of the Bloemhoek project and an comprehensive revision of the geology updated facies model was compiled during C2015. models for the Bloemhoek Project. PROJECT FUNDAMENTALS Gold Mineral Resources remained Situated west of the De Bron Fault that separates the DBM and Bloemhoek Projects, the same unchanged at 4.297Moz. The Group four primary reef horizons encountered in the DBM Project are developed in the Bloemhoek is reviewing the economic viability Project area, namely the Beatrix/VS5, Aandenk, B and Leader Reefs. Geology fundamentals of accessing part of the Bloemhoek described for the four reefs at DBM are similar for the Bloemhoek Project where the four reefs are Mineral Resources from the existing preserved at depths of between 1,300m and 2,400m below surface, are between 100 to 250cm Beatrix underground infrastructure. thick and generally characterised by shallow dips of between 10° and 20°. As a consequence, no gold Mineral Reserves will be declared on the From 1947 to 2004, a total of 28 surface boreholes were drilled in the Bloemhoek Project. Most of Bloemhoek Project until these studies this drilling was completed by Anglo American during the 1980s. Wits Gold acquired the property have been completed. and data in 2004 and subsequently drilled a further four boreholes which culminated in a PFS, completed in 2009 with a SAMREC Code compliant Mineral Resource and Mineral Reserve Statement. An additional four boreholes are planned to be drilled in C2016.
GOLD MINERAL RESOURCE AND MINERAL RESERVE CLASSIFICATION Mineral Resources Mineral Reserves
Dec Dec 31 Dec 2015 2014 31 Dec 2015 2014 Tons Grade Gold Gold Tons Grade Gold Gold Gold classification (Mt) (g/t) (‘000oz) (‘000oz) Gold classification (Mt) (g/t) (‘000oz) (‘000oz) Underground Underground Measured Proved Indicated 27.4 4.7 4,163 4,163 Probable Inferred 0.9 4.9 135 135 Total 28.3 4.7 4,297 4,297 Total
Competent Persons The Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of Bloemhoek’s 2015 gold Mineral Resources and Mineral Reserves are:
Mr Q Meyer [MSc. Geology], a registered SACNASP member (No. 400063/88)
Mr L Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM member (No. 704140)
Mr J van Eeden [MSc. Geology], a registered SACNASP member (No. 400043/09)
Mr G Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC], a registered PLATO member (No. PMS0243)
Compliance Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 Bloemhoek gold Mineral Resource and Mineral Reserve Statement. The Competent Persons have appropriate experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye.
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BEISA NORTH The Beisa North Project (1,470ha) is located to the north of Beatrix, some 20km west of Virginia. REVIEW The economic potential of the prospecting right is centred on the uraniferous and auriferous Beisa Sibanye has thoroughly reviewed the Reef, which is the same reef exploited by the old Beisa uranium mine located within the Beatrix geological and LoM models of the mining right. Beisa North Project and re-estimated PROJECT FUNDAMENTALS the Mineral Resources, in accordance Structurally, the Free State Goldfield lies within a north-south trending syncline that forms an apex with the Group’s protocols and in the south-western corner of the Witwatersrand Basin. The Beisa North and South Project areas procedures. The Beisa North Project are structurally dominated by a major overfold structure, which is a large north-trending synclinal gold and uranium Mineral Resources fold associated with the western margin of the Witwatersrand Basin. are unchanged with an estimated 1.619Moz gold and 35.373Mlb The plane of the Beisa Reef occurs in an inverted sequence of overturned strata (upside down) uranium. along the upper limits of the overfold in the target area. The Beisa Reef dips at generally moderate angles to the west from its eastern north-south trending subcrop against the Ventersdorp and/ During C2016 Sibanye intends or Karoo Supergroups. However, further west, the dip of the Beisa Reef steepens to vertical in carrying out further studies relating the overfold, overturning to a normal stratigraphic succession and dipping towards the east. The to the Beisa Central and Beisa North depth below surface of the Beisa Reef is thus structural bound and occurs from approximately Projects, with the view of optimising 450m below surface, at its subcrop to >3,000m below surface in the overturn. synergies with the Beatrix West Operation. The reef in general can be described as an oligomictic grit to small pebble conglomerate, 5mm to 50cm thick consisting of well to sub-rounded quartz pebbles set in a dark grey to slight yellowish grey sub-siliceous quartzitic matrix containing disseminated pyrite and carbon, with the carbon nearly always a carbon seam (bed) of between 1mm and 15mm thick at the base of the reef.
The Wits Gold exploration programme, concluded in a technical report on the Mineral Resources of Beisa North in 2009. Sibanye has verified the Beisa North project data and is satisfied that the data acquisition, QA/QC and interpretation followed industry best practices, especially the consolidation and interpretation of historic data (surface boreholes, company in-house technical report, etc.).
BEISA NORTH GOLD MINERAL RESOURCE AND MINERAL RESERVE CLASSIFICATION Mineral Resources Mineral Reserves
Dec Dec 31 Dec 2015 2014 31 Dec 2015 2014 Tons Grade Gold Gold Tons Grade Gold Gold Gold classification (Mt) (g/t) (‘000oz) (‘000oz) Gold classification (Mt) (g/t) (‘000oz) (‘000oz) Underground Underground Measured Proved Indicated Probable Inferred 14.8 3.4 1,619 1,619 Total 14.8 3.4 1,619 1,619 Total
Borehole reef intersection
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BEISA NORTH URANIUM MINERAL RESOURCE AND MINERAL RESERVE CLASSIFICATION Mineral Resources Mineral Reserves
Dec Dec 31 Dec 2015 2014 31 Dec 2015 2014
Tons Grade U3O8 U3O8 Tons Grade U3O8 U3O8 Gold classification (Mt) (kg/t) (‘000lb) (‘000lb) Gold classification (Mt) (kg/t) (‘000lb) (‘000lb) Underground Underground Measured Proved Indicated Probable Inferred 14.8 1.084 35,373 35,373 Total 14.8 1.084 35,373 35,373 Total
Competent Persons The Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of Beisa North’s C2015 gold and uranium Mineral Resources and Mineral Reserves are:
Mr Q Meyer [MSc. Geology], a registered SACNASP member (No. 400063/88)
Mr G Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC], a registered PLATO member (No. PMS0243)
Mr L Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM member (No. 704140)
Mr J van Eeden [MSc. Geology], a registered SACNASP member (No. 400043/09)
Compliance Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 Beisa North’s gold and uranium Mineral Resource and Mineral Reserve Statement. The Competent Persons have appropriate experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye.
IDEALISED SCHEMATIC SECTION THROUGH THE WESTERN MARGIN SHOWING THE RELATIVE POSITION OF BEISA NORTH PROJECT AND THE SUBCROP RELATIONSHIPS
St. Helena 10# West Beisa North Project East
Karoo 500m Beisa Reef overturned limb VS5 overturned limb Only VS5 and Beisa Reefs have overturned limbs
Nose of fold on Nose of fold on Beisa Reef horizon VS5 horizon
VS5
Aandenk Reef 1,600m B Reef
Leader Reef
Basal Reef
3,200m Beisa Reef
Schematic not to scale
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PROFESSIONAL ORGANISATIONS Professional Body Postal address and contact details
Geological Society of South Africa PO Box 61809, Marshalltown 2107, Gauteng, South Africa (GSSA) Tel: +27 (11) 492 3370 Fax: +27 (11) 492 3371 Email: [email protected]
Engineering Council of South Africa Private Bag X691, Bruma 2026, Gauteng, South Africa (ECSA) Tel: +27 (11) 607 9500 Fax: +27 (11) 607 9556 Email: [email protected]
South African Council for Professional PO Box 83018, South Hills 2136, Gauteng, South Africa and Technical Surveyors (PLATO) Tel: +27 (11) 626 1040 Fax: +27 (11) 626 2007 Email: [email protected]
South African Council for Natural Private Bag X540, Silverton 0127, Gauteng, South Africa Scientific Professions (SACNASP) Tel: +27 (12) 841 1075 Fax: +27 (12) 841 1057 Email: [email protected]
Southern African Institute of P.O. Box 61127, Marshalltown 2107, Gauteng, South Africa Mining and Metallurgy (SAIMM) Tel: +27 (11) 834 1273/7 Fax: +27 (11) 838 5923 Email: [email protected]
SAMREC CODE DEFINITIONS Term Definition
Competency The public report is based on work that is the responsibility of suitably qualified and experienced persons who are subject to an enforceable professional code of ethics.
Competent Person A Competent Person is a person who is registered with SACNASP, ECSA or PLATO, or is a member or fellow of the SAIMM, the GSSA or a Recognised Overseas Professional Organisation (ROPO). The Competent Person must comply with the provisions of the relevant promulgated acts, have a minimum of five years experience relevant to the style of mineralisation and type of deposit or class of deposit under consideration and to the activity he or she is undertaking. Persons being called upon to sign as a Competent Person must be clearly satisfied in their own minds that they are able to face their peers and demonstrate competence in the commodity, type of deposit and the situation under consideration.
Deposit A concentration (or occurrence) of material of possible economic interest, in or on the earth crust, that may include mineralised material that cannot be estimated with sufficient confidence to be classified in the Inferred category. Portions of a deposit that do not have reasonable and realistic prospects for eventual economic extraction are not included in a Mineral Resource.
Materiality A public report contains all the relevant information that investors and their professional advisors would reasonably require, and expect to find, for the purpose of making a reasoned and balanced judgement regarding the exploration results, Mineral Resources and Mineral Reserves reported on.
Mineral Resource A concentration or occurrence of material of economic interest in or on the earth’s crust in such form, quality and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are known, or estimated from specific geological evidence, sampling and knowledge interpreted from an appropriately constrained and portrayed geological model. Mineral Resources are subdivided, and must be so reported, in order of increasing confidence in respect of geoscientific evidence, into Inferred, Indicated and Measured categories.
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SUPPLEMENTARY INFORMATION CONTINUED
SAMREC CODE DEFINITIONS Term Definition Indicated Mineral Resource That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on information from exploration, sampling and testing of material gathered from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
Measured Mineral Resource That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable information from exploration, sampling and testing of material from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity.
Inferred Mineral Resource That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and sampling and assumed but not verified geologically or through analysis of grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited or of uncertain quality and reliability.
Mineral Reserve The economically mineable material derived from a Measured and/or Indicated Mineral Resource. It is inclusive of diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a PFS for a project and a LoM plan for an operation must have been completed, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors). Such modifying factors must be disclosed.
Probable Mineral Reserve Economically mineable material derived from a Measured or Indicated Mineral Resource or both. It is estimated with a lower level of confidence than a Proved Mineral Reserve. It includes diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a PFS for a project or a LoM plan for an operation must have been carried out, including consideration of, and modification by, realistic assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. Such modifying factors must be disclosed.
Proved Mineral Reserve Economically mineable material derived from a Measured Mineral Resource. It is estimated with a high level of confidence. It includes diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a PFS for a project or a LoM Plan for an operation must have been carried out, including consideration of, and modification by, realistic assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. Such modifying factors must be disclosed.
Transparency The reader of a public report must be provided with sufficient information, the presentation of which is clear and unambiguous, to understand the report and not to be mislead.
GLOSSARY OF TERMS Term Definition
Above infrastructure (AI) That part of the Mineral Resources and/or Mineral Reserves, which are above the lowest mining level and can be accessed via the current mine infrastructure (shafts and underground haulages).
Below infrastructure (BI) That part of the Mineral Resources and/or Mineral Reserves which are below the lowest mining level and that can only be accessed following approved capital expenditure.
Block width The average width at which it is estimated a block of ore will be mined.
Brownfield A mineral deposit, not yet exploited but conceptualised as an extractable orebody.
Carbon-in-leach (CIL) Gold is leached from a gold ore slurry with cyanide in agitation tanks and absorbed onto carbon granules in the same circuit. The carbon granules are separated from the slurry and treated in an elution circuit to extract the gold.
Carbon-in-pulp (CIP) Gold is leached conventionally from a gold ore slurry with cyanide in agitation tanks. The leached slurry then passes into the CIP circuit where carbon granules are mixed with the slurry and gold is absorbed onto the carbon. The carbon granules are separated from the slurry and treated in an elution circuit to extract the gold.
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GLOSSARY OF TERMS Term Definition
Concept study A study of the viability of a range of major options designed to determine the potential value of the opportunity and confirm alignment with the business strategy. The study describes the work that needs to be conducted to fully define the opportunity, and comprises a number of economically attractive options that warrant further investigation.
Cut-off grade The lowest grade of mineralised rock, which determines as to whether or not it is economic to recover its gold content by further extraction.
Depletion The decrease in the quantity of ore in a deposit or property (mining right) resulting from extraction or production.
Dilution Waste or material below the cut-off grade that contaminates the ore during the course of mining operations and thereby reduces the average grade mined.
Elution Recovery of gold from the activated carbon into solution before zinc precipitation or electro-winning.
Feasibility study A comprehensive design and costing study of the selected option for the development of a mineral project in which appropriate assessments have been made of realistically assumed geological, mining, metallurgical, economic, marketing, legal, environmental, social, governmental, engineering, operational and all other modifying factors, which are considered in sufficient detail to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable) and the factors reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The overall confidence of the study should be stated.
LoM Number of years that an operation is currently planning to mine and treat ore and is derived from the current mining plan.
Mine call factor The ratio expressed as a percentage in which the specific product accounted for in ‘recovery plus residue’ bears the corresponding product ‘called for’ by the mine’s measuring and evaluation methods.
Net of depletion C2014 Reserves and Resources as at December 2014, minus C2015 mined-out areas, minus re-estimation year-on-year changes, is equivalent to C2015 statement.
Pay limit The value at which it is estimated that ore can be mined at break-even.
Pillars Pillars comprise of: • Dip and strike stability pillars • Water and ventilation pillars • Regional stability pillars as defined by rock engineering • Bracket pillars adjacent to seismically active areas or large structures • Boundary and remnant pillars • Abandoned pillars Inter alia, some pillars may become available to mine once appropriate investigations and rehabilitation have taken place.
Plant recovery factor The ratio expressed as a percentage, of the mass of the specific mineral product actually recovered from ore treated at the plant to its total specific mineral content before treatment.
Post-depletion C2014 Reserves and Resources as at December 2014, minus C2015 mined-out areas.
Pre-feasibility study (PFS) A comprehensive study of the viability of a range of options for a mineral project that has advanced to a stage at which the preferred mining method in the case of underground mining or the pit configuration in the case of an open pit has been established and an effective method of mineral processing has been determined. It includes a financial analysis based on realistic assumptions of technical, engineering, operating, economic factors and the evaluation of other relevant factors that are sufficient for a Competent Person, acting reasonably, to determine if all or part of the Mineral Resource may be classified as a Mineral Reserve. The overall confidence of the study should be stated. A PFS is at a lower confidence level than a FS.
Reef A gold-bearing sedimentary horizon, normally a conglomerate that may contain economic levels of gold.
Sibanye Gold Mineral Resources and Mineral Reserves 2015 77 SECTION 3 SUPPLEMENTARY INFORMATION
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GLOSSARY OF TERMS Term Definition
SAMREC code The South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves including the guidelines contained therein.
SAMVAL code The South African Code for the Reporting of Mineral Asset Valuation including the guidelines contained therein.
Stope Underground excavation where the orebody is extracted.
Subcrop An erosional marker surface indicating a lapse in time between two differing aged stratigraphic units.
Tonnage discrepancy Difference between the tonnage hoisted as ore and that accounted for by the plant measuring methods. Discrepancy is referred to as a shortfall when the calculated tonnage is less than the tonnage accounted for by the plant, or an excess when the opposite occurs.
Ton(s) Metric ton(s) = 1,000 kilograms.
Uraninite A strong radioactive mineral, UO2, forming the chief ore of uranium (U3O8) and containing variable amounts of radium, lead, thorium and other elements or impurities.
White areas Areas that were excluded from previous LoM plans that have since been proven to have realistic expectation of safe economic extraction, with the required investigations, rock engineering modelling and detail mining plan to support it. White areas include open ground, areas that were excluded due to economics or lack of information, and pillars.
Witwatersrand Basin A sedimentary basin in South Africa that contains close to a 6,000 metre thick sequence of principally argillaceous and arenaceous sediments with inter-bedded auriferous conglomerates.
CONVERSION TABLE The following conversion factors are applicable: Metric Imperial Imperial Metric 1 centimetre 0.3937 inches 1 inch 2.54 centimetres 1 metre 3.28084 feet 1 foot 0.3047972654 metres 1 kilometre 0.62150 miles 1 mile 1.609 kilometres 1 gram 0.03215 troy ounces 1 troy ounce 31.10419907 grams 1 kilogram 2.20458 pounds 1 pound 0.4536 kilograms 1 ton 1.10229 short tons 1 short ton 0.9072 tons 1 hectare 2.47097 acres 1 acres 0.4047 hectares
78 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT SECTION 3 SUPPLEMENTARY INFORMATION
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ABBREVIATIONS AAR Aandenk Reef MPRDA Mineral Petroleum Resource Development Act Au Gold MVR Middelvlei Reef BXR Beatrix Reef MRM Mineral Resource Management CIP Carbon in pulp MSCC Mine Surveyor Certificate of Competency CL Carbon Leader Reef Mt Million tons C2014 Calendar year 2014 Mtpa Million tons per annum COMSOC Chamber of Mines Safety Officers Certificate MU Mining unit CW Channel width NEMA National Environmental Management Act cm Centimetre NNR National Nuclear Regulator cm.g/t Centimetre gram per ton oz Ounces (troy) CPD Continual professional development PFS Pre-feasibility study DFS Definitive feasibility study PR Prospecting Right DMR Department of Mineral Resources Pr.Sci.Nat Professional Natural Scientist EBA Eastern Boundary Area QA/QC Quality Assurance and Quality Control EMP Environmental Management Programme R South African Rand FS Feasibility study R/kg South African Rand per kilogram g Gram ROM Run-of-mine g/t Grams per ton RSO Randfontein Surface Operation Ga Billion years SANAS South African National Accreditation System GDE Graduate Diploma Engineering SEC The United States Securities and Exchange Commission GBG Great Basin gold SGS SGS South Africa (Pty) Ltd ha Hectare SOFS Southern Orange Free State Operations ICGR Integrated, Compliance, Governance and Risk SOX Sarbanes-Oxley Act of 2002 ICMI International Cyanide Management code SQL Sequel database IRRIS Integrated Resource and Reserve Information system SRD Surface rock dump ISO International Standard Organisation for Standardisation SAMREC The South African Mineral Resources Committee JSE Johannesburg Stock Exchange Limited SAMVAL The South African Mineral Asset Valuation KDBC Kloof, Driefontein, Beatrix and Cooke operations SV Sub-vertical K9 Reef of the Kimberley Formation SW Stoping width kg Kilogram t Metric tons kg/t Kilograms per ton tpm Tons per months KKR Kalkoenkrans Reef TSF Tailings storage facility km Kilometre U Uranium koz Thousand ounces UE1A UE1A Reef of the Elsburg Formation KR Kloof Reef UE3 Upper Elsburg Reef of the Mondeor Formation LIB Long Incline Borehole UE5 Upper Elsburg Reef of the Elsburg Formation LoM Life of mine UE Upper Elsburg Massives of the Mondeor Formation LR Libanon Reef UG Underground
m Metre U3O8 Uranium oxide m2 Square metre US$ United States dollar MBA Master of Business Administration US$/oz United States dollar per ounce mbs Metres below surface VCR Ventersdorp Contact Reef MCF Mine Call Factor VS5 VS5 Reef of the Eldorado Formation Mlb Million pounds WRTRP West Rand Tailings Retreatment Project mm Millimetre (‘000 lb) Thousand pounds MMCC Mine Managers Certificate of Competency (‘000 oz) Thousand ounces Moz Million Ounces
Sibanye Gold Mineral Resources and Mineral Reserves 2015 79 SECTION 3 SUPPLEMENTARY INFORMATION
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DISCLAIMER
This Technical Supplement (the Report) contains information as at 31 December 2015 (the Effective Date of this Report). The statements and information set out in this Report speak only as of the Effective Date of this Report. Shareholders and other interested and affected parties are therefore urged to review all public disclosures made by Sibanye after the Effective Date of this Report, as some of the information contained in the Report may have changed or been updated. Sibanye does not undertake any obligation to update publicly or release any revisions to statements and information set out in this Report to reflect events or circumstances after the Effective Date of this Report, or to reflect the occurrence of unanticipated events, unless obliged to do so pursuant to law or regulation. In such event, Sibanye does not undertake to refer back to any information contained in this Report. REGISTERED OFFICE SOUTH AFRICA: Libanon Business Park Hospital Street (Off Cedar Ave) Libanon Westonaria, 1780 Gauteng
Private Bag X5 Westonaria, 1780
Website: http://www.sibanyegold.co.za Email: [email protected] Telephone: +27 (0) 11 278 9600 Facsimile: +27 (0) 86 520 5023
80 Sibanye Gold Mineral Resources and Mineral Reserves 2015 HOME PRINT BACK NEXT ADMINISTRATION AND CORPORATE INFORMATION
INVESTOR ENQUIRIES DIRECTORS OFFICE OF THE UNITED KINGDOM James Wellsted Sello Moloko* (Chairman) SECRETARIES – LONDON Senior Vice President: Investor Relations Neal Froneman (CEO) St James’s Corporate Services Limited Cell: +27 83 453 4014 Charl Keyter (CFO) Suite 31 Tel: +27 11 278 9656 Chris Chadwick# Second Floor Email: [email protected] Robert Chan# 107 Cheapside Timothy Cumming* London EC2V 6DN COMPANY SECRETARY Barry Davison* United Kingdom Cain Farrel Rick Menell* Tel: +44 20 7796 8644 Tel: +27 10 001 1122 Nkosemntu Nika* Fax: +44 20 7796 8645 Fax: +27 11 278 9863 Keith Rayner* Email: [email protected] Susan van der Merwe* TRANSFER SECRETARIES Jerry Vilakazi* UNITED KINGDOM REGISTERED OFFICE Jiyu Yuan# Capita Asset Services Libanon Business Park *Independent non-executive The Registry 1 Hospital Street (off Cedar Avenue) 34 Beckenham Road #Non-executive Libanon Beckenham
Westonaria 1780 JSE SPONSOR Kent BR3 4TU South Africa JP Morgan Equities South Africa England Proprietary Limited Tel: +44 20 8639 3399 Private Bag X5 Registration number 1995/011815/07 Fax: +44 20 8658 3430 Westonaria 1780 1 Fricker Road Email: [email protected] South Africa Illovo TRANSFER SECRETARIES Tel: +27 11 278 9600 Johannesburg 2196 SOUTH AFRICA Fax: +27 11 278 9863 South Africa Computershare Investor Services
SIBANYE GOLD LIMITED Proprietary Limited Private Bag X9936 Incorporated in the Republic of South Africa Ground Floor Sandton 2196 Registration number 2002/031431/06 70 Marshall Street South Africa Share code: SGL Johannesburg 2001
Issuer code: SGL AMERICAN DEPOSITARY RECEIPTS PO Box 61051 ISIN – ZAE E000173951 TRANSFER AGENT Marshalltown 2107 Bank of New York Mellon LISTINGS Tel: +27 11 370 5000 BNY Mellon Shareowner Services JSE: SGL Fax: +27 11 688 5248 PO Box 358516 NYSE: SBGL Pittsburgh PA15252-8516
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BEATRIX AND SOFS SHAREHOLDER PLAN BEATRIX HISTORY AT A GLANCE OPERATIONAL STATISTICS
1933 1969 1976 1981 1984 1985 BEATRIX Exploration in the Free Exploration drilling General Mining Beisa Shaft Beisa Uranium Mine Beatrix 1 and 2 Located in the Free State province of South Africa, some 240km south-west of Johannesburg, near Welkom State started as far for gold and uranium acquired Union commissioned to closed due to the low Shafts commissioned. back as 1885 but only commenced in the Corporation in 1976. exploit uranium. prevailing uranium Exploration for and Virginia, Beatrix operates under mining rights covering a total area of 16,821ha. Beatrix is principally an commenced in earnest southern limits of the General Mining Union Sinking of Beatrix price. Kalkoenkrans Reef underground mine with nominal surface reserves represented by surface rock dumps accumulated during the in 1933 when the first Free State Goldfields. Corporation Limited, 1 and 2 Shafts in the vicinity of operating history of the mine. borehole was drilled on as it was then called, commenced. the old Beisa Mine the farm Aandenk became Gencor commenced. 227 HP. The discovery Limited. of the Basal Reef in 1939 set exploration afire, which resulted in a score of mines being developed in the Free State.
2002 2001 1998 1995 1993 1987
St Helena Gold Mine Beatrix 3 Shaft A new company, Sinking of Gold production began Sinking of two new sold to Freegold, completed. Goldco, is formed, Beatrix 3 Shaft at Oryx Mine. sub-vertical shafts Beatrix and Oryx mines which brings together complex and down dip and a ventilation merged to form Beatrix the gold assets of Gold expansion of shaft at Beisa Mine, Gold Mine. Beatrix Gold Fields of South Africa mine initiated. renamed Oryx Mine, Mine is awarded ISO Limited with those of to exploit KKR, 14001 certification in the unbundled Gencor. commenced. July 2002. Goldco was later renamed Gold Fields Limited. 2015 KEY STATISTICS
2003 2004 2005 2007 2009 2010
Beatrix achieves Completion of a new Beatrix North and Beatrix granted a new Beatrix achieves full Beatrix West Section one million and Beatrix surface ventilation South Sections achieve order Mining Right. compliance from achieves two million North and South shaft to service the three million fatality- the ICMI during an fatality-free shifts for Sections achieve south-west corner of free shifts for the first external cyanide audit the first time. two million fatality-free the mine near 2 Shaft. time. conducted during shifts for the first time. Beatrix achieves June 2009. MAIN DEVELOPMENT AREA MINED TONNES MILLED YIELD GOLD PRODUCED/SOLD two million fatality-free 2 shifts for the first time. 21,599m 416,684m 4,319kt 2.34g/t 10,105kg (324,900oz)
UNDERGROUND UNDERGROUND SURFACE SURFACE SURFACE 21,599m 416,684m2 1,596kt 0.34g/t 548kg (17,600oz) UNDERGROUND UNDERGROUND UNDERGROUND 2015 2014 2013 2012 2011 2,723kt 3.51g/t 9,557kg (307,300oz)
Maiden gold and Sibanye’s acquisition Beisa Reef concept Announcement of the Partial extraction and COSTS AND MARGINS uranium Mineral of the Wits Gold study undertaken to unbundling of Sibanye flaring of methane gas Reserves are declared assets contiguous to establish the economic Gold Limited from Gold commenced in for Beatrix’s Beisa Beatrix consolidated potential in re-opening Fields Limited. May 2011. OPERATING COSTS OPERATING PROFIT OPERATING MARGIN CAPITAL EXPENDITURE ALL-IN COST Project. its position on the the old Beisa Mine R785/t R1,425m 30% R597m R408,422/kg southernmost extent (upper levels of Beatrix (US$996oz) Studies on the SURFACE SURFACE SURFACE ORE RESEVE Beatrix/VS5 Reef of the Witwatersrand 4 Shaft) to exploit gold DEVELOPMENT ALL-IN COST MARGIN were undertaken for Basin and extended and uranium R129/t R53m 21% R511m the Bloemhoek area, its LoM Mineral UNDERGROUND UNDERGROUND UNDERGROUND 14% underpinning future Reserves to sustain the R1,169/t R1,372m 30% PROJECTS TOTAL CASH COST technical studies in operation for another C2016. 14 years. R340,792/kg (US$831oz) The Wits Gold Mineral SUSTAINING Reserve and Resource R86m projects were aligned with the Sibanye Gold systems. COOKE SHAREHOLDER PLAN COOKE HISTORY AT A GLANCE OPERATIONAL STATISTICS
1886 1889 1890 1900 1910 1911 COOKE Exploration activities Randfontein Estates REGM Dump 20 Lindum tailings Exploration Dump 20 Sand commenced in the Gold Mining Company tailings facility formed; facility created. programmes to locate created as result Located near Randfontein, approximately 30km south-west of Johannesburg in the province of Gauteng, South West Rand. Limited (REGM) slimes material from gold bearing reefs of stamp milling at Africa, the Cooke underground operations comprise four vertical shafts (Cooke 1 to 4), a dedicated uranium established. Millsite plant deposited south of the Witpoortjie Millsite Gold Plant. processing facility as well as the surface operation, which are serviced by a developed network of mining and into Rietpan. Horst (“Gap”) civil infrastructure with adequate electricity and water supplies. commenced.
MARCH 2003 JULY 2001 2000 1997 1971 1961
South Deep (Placer Harmony ceases REGM (Cooke 4 WAGMC purchased The Cooke 123 Registration of Dome Western mining and pumping Section) acquired by by REGM. established as a Western Areas Gold Areas Joint Venture) operations at Harmony Gold Mine section of Randfontein Mining Company takes over pumping Cooke 4 and operation Limited, including the Estates Limited Waterpan Gold Mine. operations but ceased put under care and Randfontein Surface (Cooke 1 - 1971, Cooke pumping in maintenance. Operations. 2 - 1974 and Cooke February 2005. 3 - 1981). Cooke TSF established in 1976.
MAY 2005 DECEMBER 2006 DECEMBER 2006 DECEMBER 2007 DECEMBER 2007 JULY 2008
Simmer and Jack Ezulwini new Simmers sells its 90% Waterpan Mining Harmony and Pamodzi Ezulwini gold plant Limited apply for new order Mining Right interest in EMC to First Corporation sells 10% acquires the Cooke commissioned. order mining right in registered, construction Uranium Limited. interest to EMC. EMC Operations from 2015 KEY STATISTICS respect of Ezulwini of the new Ezulwini become wholly-owned Randfontein Estates Mining Company Gold and Uranium subsidiary of First Limited in a Special (Propriety) Limited Plant commenced. Uranium Limited. Purpose Vehicle called (EMC or Ezulwini) and Rand Uranium (Pty) assumed pumping Limited. operations as part of purchase agreement with Harmony.
MAIN DEVELOPMENT AREA MINED TONNES MILLED YIELD GOLD PRODUCED/SOLD 12,923m 204,835m2 5,793kt 1.08g/t 6,252kg (201,000oz) MAY 2014 MARCH 2014 MID-2012 2011 APRIL 2010 MAY 2009 UNDERGROUND UNDERGROUND SURFACE SURFACE SURFACE Sibanye Gold acquires The uranium plant Gold One acquires Gold One International Ezulwini mining right Ezulwini uranium plant 12,923m 204,835m2 4,323kt 0.21g/t 893kg (28,700oz) Rand Uranium and re-commissioned by 100% of EMC. Limited acquires Rand registered to EMC. commissioned. EMC from Gold One. Gold One. Uranium and place UNDERGROUND SURFACE UNDERGROUND Ezulwini uranium 1,470kt 3.65g/t 5,359kg (172,300oz) plant on care and maintenance. COSTS AND MARGINS
OPERATING COSTS OPERATING PROFIT OPERATING MARGIN CAPITAL EXPENDITURE ALL-IN COST R514/t R(4)m 0% R337m R544,658/kg 2015 (US$1,329oz) SURFACE SURFACE SURFACE ORE RESEVE First stage of aligning A section 102 R83/t R54m 13% DEVELOPMENT ALL-IN COST MARGIN acquired operations application has been R227m (14%) with Sibanye Gold submitted to the DMR UNDERGROUND UNDERGROUND UNDERGROUND through restructuring to extend the MR R1,782/t (R58m) (2%) PROJECTS TOTAL CASH COST of Cooke was boundaries to include R18m R474,584/kg completed. The second the TSFs that form part (US$1,158) stage of instituting of the WRTRPs. SUSTAINING protocols, standards R93m and business processes commenced. DRIEFONTEIN SHAREHOLDER PLAN DRIEFONTEIN HISTORY AT A GLANCE OPERATIONAL STATISTICS
1887 1892 1931 1932 1945 1952 DRIEFONTEIN Cecil Rhodes and The Gold Fields Using a magnetometer, On 12 November 1932, Exploration activities West Driefontein starts Located on the Far West Rand, in the mining district of Oberholzer, some 70km south-west of Johannesburg Charles Rudd, as joint of South Africa Dr Rudolf Krahman West Witwatersrand 1933 to 1939 culminate milling in 1952. Managing Directors, Limited is renamed discovered the vast Areas Limited is in registration of West in the province of Gauteng, South Africa, Driefontein operates under new order mining rights covering a total are co-founders of ‘The Consolidated Gold gold deposits of the formed to take over Driefontein Mining of 8,561ha. It is an underground mine with surface reserves represented by rock dumps and tailings surface Gold Fields of South Fields of South Africa West Wits Line near the Gold Fields Mineral Company on facility that have accumulated throughout the operating history of the mine. Africa Limited’ in 1887. to mine the deep-level Carletonville, including Rights and to continue 7 March 1945. Sinking gold deposits of the the mines known today exploration work. of the No. 1 and 2 Witwatersrand. as Driefontein and Shafts commences Kloof. (now the No. 11 and 12 Shafts).
1981 1979 1972 1968 1968 1962
On 1 July 1981 East West Driefontein East Driefontein starts Disaster strikes in Intensive drilling 29 people tragically Driefontein Gold Mining succeeds Crown Mines production in 1972, October 1968 when a carried out between lose their lives when Company Ltd changes as the largest gold with an expected life stope in the 8 Shaft 1962 and 1963 a severe subsidence its name to Driefontein producer ever. of 52 years, and is area is flooded and the indicates the viability results in the collapse Consolidated Ltd immediately among the entire East Driefontein of an area adjoining of the entire sorting and West Driefontein lowest cost producers development area and West Driefontein and crushing plant on becomes a wholly- in South Africa. threatens the whole mine and the East West Driefontein. owned subsidiary of West Driefontein, Driefontein Gold Mining of Driefontein a tremendous effort Company Limited is Consolidated Ltd but saves the mines registered on still manages its own without loss of life. 3 May 1968. lease area.
2015 KEY STATISTICS 1999 1999 2005 2006 2009 2010
In September 1999 Gold Fields wins control On 30 August 2005, Driefontein successfully Suspension of the 5 Shaft decline option the two entities are of the Driefontein Driefontein officially converts its old order 9 Shaft deepening pre-feasibility study formally amalgamated, Gold Mine by buying pours the 100 millionth mining licence to new Project. replaced the 9 Shaft pooling their resources AngloGold Ashanti’s ounce of gold after order Mining Rights deepening option. to form one mine, 21.5% shareholding, some 53 years of and approval given for Driefontein Gold Mine. making Gold Fields production. completion of 9 Shaft the world’s second Project. largest gold producer. MAIN DEVELOPMENT AREA MINED TONNES MILLED YIELD GOLD PRODUCED/SOLD Gold Fields Ltd holds 15,704m 384,109m2 5,772kt 3.01g/t 17,350kg (557,800oz) 100% interest in GFI Mining South Africa UNDERGROUND UNDERGROUND SURFACE SURFACE SURFACE (Proprietary) Limited 2 which in turn hold a 15,704m 384,109m 3,360kt 0.60g/t 2,005kg (64,500oz) 100% interest UNDERGROUND SURFACE UNDERGROUND in Driefontein. 2,412kt 6.36g/t 15,345kg (493,300oz)
COSTS AND MARGINS
2015 2014 2013 2012 2011 OPERATING COSTS OPERATING PROFIT OPERATING MARGIN CAPITAL EXPENDITURE ALL-IN COST R907/t R3,002m 36% R994m R374,790/kg Mining technicalities A section 102 The pre-feasibility Driefontein showed an Announcement of the TSFs pre-feasibility (US$1,914oz) of the Driefontein application has been study for the overall improvement unbundling of Sibanye study and trial mining SURFACE SURFACE SURFACE ORE RESEVE 5 shaft Drop-down submitted to the DMR Driefontein 5 Shaft in all safety lagging Gold Limited from Gold initiated. R165/t R399m 42% DEVELOPMENT ALL-IN COST MARGIN Project resulted in to extend the MR Drop-down Project indicators, particularly Fields Limited. R727m 21% reconsideration of boundaries to include completed. the FIFR, which UNDERGROUND UNDERGROUND UNDERGROUND certain aspects the TSFs that form part improved by 64% and R1,941/t R2,603m 36% PROJECTS TOTAL CASH COST of the FS. of the WRTRPs. was the lowest ever R18m R309,764/kg recorded by the mine (US$756oz) to date. SUSTAINING R249m KLOOF SHAREHOLDER PLAN KLOOF HISTORY AT A GLANCE OPERATIONAL STATISTICS
1898 1909 1930’S 1934 1936 1939 KLOOF Drilling commenced A shaft was sunk which Dr Krahmann used Shaft sinking Shaft sinking Crushing of ore began by the Pullinger flooded with water from geophysical techniques commenced at commenced at and first gold from Located in the Far West Rand mining district of Westonaria, some 60km south-west of Johannesburg in Gauteng brothers intersecting the dolomites and was to delineate the extent Venterspost using Libanon. the West Wits Line province, South Africa, Kloof’s mining rights cover a total of approximately 20,100ha. It is principally an Ventersdorp Contact abandoned. of the reefs underlying the newly developed Goldfield was poured at underground mine with nominal surface reserves represented by surface rock dumps and tailings surface Reef (VCR) and the dolomite. cementation process. Venterspost. facility accumulated during the operating history of the mine. Middelvlei Reef (MVR) at depth in the Far West Rand area (later renamed the West Wits Line).
1987 1982 1968 1964 1945 1939
The southern portion of Prospecting lease Kloof Gold Mine Work commenced on Libanon Mine reopened. Sinking of Libanon’s the Kloof Gold Mine and obtained over an area officially opened. Kloof’s main twin-shaft second shaft stopped part of the Bank Break to the south and west complex. to curtail capital area culminated in of the Kloof lease area, expenditure and the the Leeudoorn Mining dubbed the Bank Break mine closed for the Lease. Leeudoorn shaft area. duration of World sinking commenced. War II.
1992 1993 2000 2005 2007 2009 2015 KEY STATISTICS Venterspost Gold Mine Leeudoorn shaft Formation of the Kloof Production reached Kloof successfully Tailings surface incorporated into the completed. Gold Mine with the a cumulative converted its old order facility uranium Libanon division of the amalgamation of the 70 million ounces of mining right to new models completed and Kloof Gold Mine. Venterspost, Libanon, gold (yield). order mining rights. included in Mineral Kloof and Leeudoorn Resource Statement. Gold Mines.
MAIN DEVELOPMENT AREA MINED TONNES MILLED YIELD GOLD PRODUCED/SOLD 17,899m 307,750m2 3,977kt 3.54g/t 14,068kg (452,300oz)
UNDERGROUND UNDERGROUND SURFACE SURFACE SURFACE 2015 2014 2013 2012 2011 2010 17,899m 307,750m2 1,998kt 0.61g/t 1,220kg (39,200oz) Following the Concluded a pre- Secondary reef Announcement of the Surface rock dump Kloof and Driefontein UNDERGROUND SURFACE UNDERGROUND completion of the feasibility study on the project initiated. formation of Sibanye Python Plant Project were combined to 1,979kt 6.49g/t 12,848kg (413,100oz) drop-down decline mining area below Gold Limited following and TSFs pre-feasibility create the Kloof/ FS, capital approval 45 Level at Kloof the unbundling from study Driefontein Complex. was obtained from the 4 Shaft. Gold Fields Limited COSTS AND MARGINS Board and development Embarked on a major has since commenced. exploration programme, OPERATING COSTS OPERATING PROFIT OPERATING MARGIN CAPITAL EXPENDITURE ALL-IN COST A section 102 targeted at the Kloof R1,201/t R1,914m 29% R1,130m R430,751/kg application has been and MVR at Main and (US$1,051oz) SURFACE SURFACE SURFACE submitted to the DMR 8 Shafts. ORE RESEVE to extend the MR R161/t R256m 44% DEVELOPMENT ALL-IN COST MARGIN boundaries to include UNDERGROUND UNDERGROUND UNDERGROUND R841m 9% the TSFs that form part of the WRTRPs. R2,251/t R1,658m 27% PROJECTS TOTAL CASH COST R64m R342,764/kg (US$836oz) SUSTAINING R226m BURNSTONE SHAREHOLDER PLAN BURNSTONE HISTORY AT A GLANCE OPERATIONAL STATISTICS
1887 1974 2002 2002 2006 2006 BURNSTONE Gold discovered A steep rise in the Southgold Exploration Great Basin Gold Positive final The construction of Located on the Far South Rand basin in the mining district Balfour, some 70km south east of Johannesburg in in the South Rand gold price sparked (Pty) Ltd drilled acquired 100% of feasibility study the Burnstone Decline Basin outcrops of the renewed interest in an additional Southgold and drilled a declared a large Shaft started. the Mpumalanga province of South Africa. A maiden gold Reserve was declared in C2015. It is planned to be a Kimberley Reef. the South Rand Basin 18 boreholes, primarily further 374 boreholes Measured and semi-machanised mining operation using conventional stoping methods. - Union Corporation/ within the Burnstone until 2012 within or Indicated Gold Glencor and Anglovaal Mining Right and in close proximity of Resource (85.2 Mt @ conducted extensive again intermittently the Burnstone Mining 5.52 g/t for 15.3 Moz) drilling programmes, intersected payable Right. which confirmed the Kimberley Reef. occurrence of Kimberley Reef at relatively shallow depths of 200m – 300m. 2015 2014 2012 2009
Completion of the Sibanye Gold took over Southgold placed in a The Decline Shaft FS, capital approval Wits Gold and acquired business rescue plan tunnel intersects obtained to commence Southgold. Sibanye’s and Witwatersrand Kimberley Reef. with development in technical team Gold acquired the C2016. reviewed the technical company. aspects of Burnstone with its own feasibility study.
2015 KEY STATISTICS
MAIN DEVELOPMENT AREA MINED TONNES MILLED YIELD GOLD PRODUCED/SOLD Not applicable Not applicable Not applicable Not applicable Not applicable
UNDERGROUND UNDERGROUND SURFACE SURFACE SURFACE Not applicable Not applicable Not applicable Not applicable Not applicable UNDERGROUND SURFACE UNDERGROUND Not applicable Not applicable Not applicable
COSTS AND MARGINS
OPERATING COSTS OPERATING PROFIT OPERATING MARGIN CAPITAL EXPENDITURE ALL-IN COST All costs are Not applicable Not applicable R272m Not applicable capitalised until break-even PROJECTS ALL-IN COST MARGIN R272m Not applicable
TOTAL CASH COST Not applicable SIBANYE GOLD MINERAL RESOURCES AND MINERAL RESERVES REPORT 2015 www.sibanyegold.co.za