Mineral Resources and Mineral Reserves Supplement 2018
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2018 Mineral Resources and Mineral Reserves 2018 Mineral Resources 2018 Mineral Resources and Mineral Reserves Supplement Supplement Contents 1\ INTRODUCTION AND GROUP OVERVIEW Introduction 1 Global footprint 2 Group highlights 4 Headline Mineral Resource and Mineral Reserve statement 6 2018 in review 9 Exploration highlights 15 Mine planning cycle 17 Corporate governance 18 Innovation and technology 24 Social and regulatory licence to operate 25 15 AMERICAS REGION Exploration 2\ highlights Regional overview 26 Cerro Corona mine 31 Salares Norte project 40 3\ AUSTRALIA REGION Regional overview 50 Agnew gold mine 55 Granny Smith gold mine 65 St Ives gold mine 74 Gruyere JV project 86 Far Southeast project 94 4\ SOUTH AFRICA REGION Regional overview 96 South Deep gold mine 101 5\ WEST AFRICA REGION 40 Regional overview 112 Salares Norte Damang gold mine 116 project Tarkwa gold mine 125 Asanko Gold Mine JV 134 6\ SUPPLEMENTARY INFORMATION Competent Persons 139 Conversion table 142 Abbreviations 143 86 Glossary of terms 144 GJV Plan Disclaimer (IBC) Construction Send us your feedback: To ensure that we report on issues that matter to our stakeholders please provide any feedback and questions to: [email protected] or visit www.goldfields.com to download the feedback form. linkedin.com/company/gold-fields business.facebook.com/GoldFieldsLTD @GoldFields_LTD Note: To be read in conjunction with the Gold Fields 2018 Integrated Annual Report (IAR). For abbreviations refer to p143; and for glossary of terms refer to p144; – Mineral Resource and Mineral Reserve Supplement 2018 The Gold Fields Mineral Resources and Mineral Reserves Supplement to the IAR 2018 1 INTRODUCTION AND GROUP OVERVIEW Introduction and Group overview Aim of this report Headline numbers – Group overview This report contains the Gold Fields Mineral Resource and December 2018 Mineral Reserve statement as at December 2018. It provides This year’s Mineral Resource and Mineral Reserve position key technical information to supplement the information reflects the Company strategy in action, specifically the summarised in the Integrated Annual Report (IAR) and it is consistent funding of brownfield exploration, reinvestment available on the Company website at www.goldfields.com. in the sustainability and growth of the operations, In addition to providing transparent and compliant information embedded Business Improvement (BI) programmes and in accordance with the South African Code for the Reporting the advancement of quality projects. The robustness of the of Exploration Results, Mineral Resources and Mineral Mineral Resources and Mineral Reserves is testimony to Reserves (SAMREC Code), 2016 edition, this supplement the quality of the assets in the portfolio and is the result of highlights issues viewed as material to the reporting of Mineral a rigorous annual planning process that enforces a strong Resources and Mineral Reserves per mining asset and growth linkage between strategic, business and life-of-mine (LoM) project. Gold Fields’ commitment to materiality, transparency planning that underpins alignment with Group objectives. and competency in its public reporting remains of paramount importance and continues to be endorsed by the Group’s external audit and assurance protocol. MANAGED ATTRIBUTABLE Au Mineral Resources 123.1Moz 103.7Moz DECEMBER Cu Mineral Resources 10,838Mlb 4,881Mlb 2017 Au Mineral Reserves 53.1Moz 49.0Moz Cu Mineral Reserves 767Mlb 764Mlb Au production depletion from Mineral Resources 2.3Moz 2.2Moz 12-MONTH Cu production depletion from Mineral Resources 91Mlb 91Mlb DEPLETION Au production depletion from Mineral Reserves 2.1Moz 2.0Moz Cu production depletion from Mineral Reserves 88Mlb 88Mlb Au Mineral Resources 115.3Moz 96.6Moz DECEMBER Cu Mineral Resources 10,769Mlb 4,813Mlb 2018 Au Mineral Reserves 51.9Moz 48.1Moz Cu Mineral Reserves 695Mlb 691Mlb – Group total figures for 2018, inclusive of projects, but exclusive of Asanko JV, are net of depletion – The gold and copper prices used for the December 2018 Mineral Resources were US$1,400/oz and US$3.2/lb and for the Mineral Reserves, US$1,200/oz and for copper a sliding scale from short to long term of US$2.5/lb to US$2.8/lb were used – Measured and Indicated Mineral Resources are reported inclusive of those Mineral Resources modified to produce Mineral Reserves GFI-managed Mineral Resource GFI-managed Mineral Resource reconciliation reconciliation Gold – Moz Copper – MIb 140.0 12,000 (91) 23 (2.3) (5.5) 120.0 10,000 10,838 123.1 100.0 10,769 115.3 8,000 80.0 6,000 60.0 4,000 40.0 2,000 20.0 0 0 Dec Mined Growth Dec Dec Mined Growth Dec 2017 depletion 2018 2017 depletion 2018 GFI-managed Mineral Reserve GFI-managed Mineral Reserve reconciliation reconciliation Gold – Moz Copper – MIb 60.0 900 (2.1) 0.8 800 (88) 50.0 15 53.1 700 767 51.9 40.0 600 695 500 30.0 400 20.0 300 200 10.0 100 0.0 0 Dec Mined Growth Dec Dec Mined Growth Dec 2017 depletion 2018 2017 depletion 2018 2 The Gold Fields Mineral Resources and Mineral Reserves Supplement to the IAR 2018 Introduction and Group overview continued Global footprint MINE: West Gold Fields’ West Africa region consists of three Africa mines in Ghana; Tarkwa, Damang and Asanko JV region* (open pit gold mines) Contribution to Group Mineral Reserves* 13% MINE: The South Deep South mine, which is still in production ramp-up Africa phase, is the only operating asset in the region South Africa region Contribution to Group Mineral Reserves* 59% * Attributable equivalent Au oz The Gold Fields Mineral Resources and Mineral Reserves Supplement to the IAR 2018 3 INTRODUCTION AND GROUP OVERVIEW MINE: Gold Fields’ Americas region consists of the Americas Cerro Corona mine in region* Peru and the Salares Norte project in Chile Contribution to Group Mineral Reserves* 15% MINE: Australia The Australia region consists of four mines: Agnew, region* Granny Smith and St Ives, with the Gruyere JV starting production in 2019. Includes the Far Southeast project in the Philippines Contribution to Group Mineral Reserves* 13% 4 The Gold Fields Mineral Resources and Mineral Reserves Supplement to the IAR 2018 Introduction and Group overview continued Group highlights* Gold Resource decreased by Gold Reserve decreased by 6% 2% ■■ 115.3Moz (123.1Moz) driven primarily by South ■■ 51.9Moz (53.1Moz) driven primarily by South Deep Deep (-10.2Moz) resulting from a detailed review of (-4.6Moz) due to increased cut-off grade, updated Current Mine’s geotechnical and mining constraints geostructural and related geotechnical loss factors, and an increased cut-off grade increased stoping loss factors and exclusion of the ■■ Mineral Resources increased at all other operations Ventersdorp Contact Reef (VCR) Reserve net of depletion except for nominal reductions at ■■ Inclusion of the maiden Salares Norte Reserve Cerro Corona and Damang (3.5Moz gold or 4.1Moz gold equivalents) ■■ Consistent significant investment in brownfield ■■ Increased proportion of Mineral Reserves outside of exploration in Australia for 2018 A$85M (US$63M) South Africa – total attributable gold-equivalent continues to pay dividends at St Ives, Granny Smith Mineral Reserves held by South Deep now 59%, and Agnew; A$76M (US$57M) is budgeted for 2019 down from 67% last year Company strategy has delivered: Portfolio management ■■ Significant restructuring at South Deep during ■■ Emphasis continues on improving the overall quality H2 2018 to recalibrate to a lower cost base and of the portfolio and to ensure the sustainability of the facilitate implementation of a revised operating cash-flow generated by the operations model designed to drive productivity improvements ■■ Focus is on reducing Group all-in costs (AIC), capital ■■ Brownfield exploration and extensional discovery at discipline, increasing the free cash-flow (FCF)/oz and St Ives, Agnew and Granny Smith in Australia extending the life of the assets ■■ Project advancement at Gruyere with first gold ■■ Near-mine exploration is also getting focus in Ghana expected to be poured during Q2 2019 and good at Damang, along the Amoanda-Tomento trend and traction on the Damang Reinvestment Project with at Tarkwa to profile potential palaeoplacer extensions significant gold production from the target Damang to current open pits cut back zone expected in 2020 ■■ A joint venture (JV) with Asanko Gold was confirmed ■■ Salares Norte feasibility study (FS) completed and in July 2018 and emphasis is now on completing a maiden Reserve reported for potential future mine fully integrated LoM plan, including finalisation of the with an indicative annual 355koz gold equivalent Esaase open pit FS production for the first 10 years of the project Regional highlights Australia region West Africa region ■■ Resources grew by 7% – strong contribution from ■■ Resources grew by 9% – Tarkwa grew 15% and Granny Smith (11%), Agnew (5%) and St Ives (2%) Damang decreased by a nominal 1% ■■ Reserves grew by 4% – St Ives grew by 11%, ■■ Reserves decreased by 3% – Damang decreased Agnew 4%, Granny Smith 2% and Gruyere JV by 7% and Tarkwa was 2% lower (GJV) by a nominal 1% Americas region South Africa region ■■ Resources were steady year-on-year – the 7% ■■ Resources decreased by 15% at South Deep growth at Salares Norte was offset by an 11% depletion at Cerro Corona ■■ Reserves increased 270% – the Salares Norte ■■ Reserves decreased by 12% at South Deep 3.5Moz gold maiden Reserve inclusion was marginally offset by the 10% reduction due to production depletion at Cerro Corona Note * All variances