Mineral Resources and Mineral Reserves Supplement
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Mineral Resources and Mineral Reserves Overview 31 December 2011 2 Introduction Gold Fields Limited has total managed precious metal and gold equivalent Mineral Resources of 234.4 (239.5) million ounces and Mineral Reserves of 85.1 (81.0) million ounces net of 4.2 million ounces and 4.0 million ounces depletion respectively. The December 2010 statement’s numbers are shown in brackets. The figures include Arctic Platinum (2PGE+Au), Chucapaca gold-copper-silver, Talas gold-copper-molybdenum, Yanfolila and the West Wits Tailings Treatment Project (WWTTP gold, which includes KDC East, KDC West and South Deep). Total managed gold only Mineral Resources including WWTTP (excluding platinum, other metal equivalents and projects) are 198.4 (204.8) million ounces and Mineral Reserves are 82.0 (78.4) million ounces. The Gold Fields Mineral Resources and Mineral Reserves guiding principle is to ensure integrity, transparency and materiality in reporting, that is compliant with public and internal regulatory codes, as well as to inform all stakeholders on the status of the Group’s fundamental asset base. Gold Fields is one of the world’s largest unhedged producers of gold, with attributable annualised production of ~3.5 million gold equivalent ounces from eight operating mines in Australia, South Africa, Peru and Ghana. Gold Fields is committed to continue pursuing value through exploration, acquisition and sustained delivery through organic growth within its existing operations. Mineral Reserve replacement and growth projects are ranked on value creation, quality, size, production profiles and sustainability and currently the Group has an extensive and diverse global growth outlook with a strong project pipeline at various levels of appraisal or development. The Mineral Resources and Mineral Reserves outlined in this report provide the key anchor point for operational excellence, growth in Gold Fields and securing the future. The information is presented on a Group and Regional basis and reports in appropriate detail on the current status and changes at each operation, whereas individual operational, project and exploration reviews are presented in depth within the relevant Technical Short Form Reports. Important notices 1. The United States Securities and Exchange Commission (SEC) permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce from. Certain terms are used in this report, such as “Mineral Resources”, that the SEC guidelines strictly prohibit companies from including in filings. US investors are urged to consider closely the disclosure in our Form 20-F. 2. All Mineral Resources and Mineral Reserves figures reported are managed by Gold Fields unless otherwise stated and Mineral Resources are inclusive of Mineral Reserves and both geotechnical support and stability pillars (December 2010 statement’s numbers are shown in brackets). 3. The Group’s Mineral Resources and Mineral Reserves figures are estimates at a point in time and will be affected by changes in the US dollar currency exchange rates, permitting, change in legislation, costs and operating parameters. 4. Rounding-off of figures in this report may result in minor computational discrepancies. Where this occurs it is not deemed significant. 5. All references to tonnes are metric units. 6. The 31 December 2011 Mineral Resource and Mineral Reserve figures are net of depletion. Gold Fields: Mineral Resource and Mineral Reserve Overview 2011 3 Contents Group highlights ¨ The Mineral Reserves at South Deep increased by 5.1 million ounces (15 per cent), primarily due to mine Introduction IFC design optimisation and inclusion of Group highlights Page 1 additional areas, which were not previously planned. 1. Group overview Page 2 ¨ A pre-feasibility study has been completed for the processing of the Strategic intent Page 2 West Wits tailings for the extraction Headline numbers Page 2 of gold. This has resulted in the Group Mineral Resources and Mineral Reserves overview Page 3 reporting of a maiden gold Mineral Reserve of 2.9 million ounces. Assessment and reporting criteria Page 4 ¨ At Cerro Corona the total gold Summary of the Gold Fields Limited Mineral Resources and Page 5 equivalent Mineral Reserve base Reserves statement improved substantially by 15 per cent Mineral Resources and Mineral Reserves split per operation and growth Page 7 from 5.3 million ounces to 6.1 million projects ounces, net of depletion. This is Reconciliation of Managed Mineral Resources and Mineral Reserves Page 8 primarily due the increase in total capacity of the tailings storage facility On-lease exploration Page 8 from 99 million tonnes to 130 million tonnes deposited, including historical 2. Operations Page 9 tailings production. Australasia Region Page 9 ¨ The purchase of the minority shareholders’ equity in Cerro Corona South Africa Region Page 12 (80.7 per cent to 98.5 per cent) has increased the attributable Mineral South America Region Page 16 Resources and Mineral Reserves by 1.4 million equivalent ounces and West Africa Region Page 19 1.1 million equivalent ounces respectively. This is inclusive of 3. Growth projects Page 22 growth and mined depletion as reflected in the 31 December 2011 Arctic Platinum Project (APP) Page 22 statement. Chucapaca Project Page 23 ¨ The Mineral Resource and Mineral Reserve position in the West Africa Yanfolila Project Page 24 Region has increased significantly, Talas Project Page 25 by 7.9 million ounces (46 per cent) and 2.4 million ounces (21 per cent) Woodjam Project Page 26 respectively, primarily due to an increase in the gold price, a planned 4. Supplementary information Page 27 additional CIP Plant at Tarkwa and Corporate governance Page 27 new discovery at the Greater Damang Project (Huni, Juno and Competent Persons Page 27 Damang main pit). Conversion table Page 28 ¨ The West Africa Region increased its Abbreviations Page 28 attributable Mineral Resources and Mineral Reserves by 4.8 million Glossary of terms Page 29 ounces and 2.5 million ounces respectively, following the buyout of the IAMGold share (71.1 per cent to 90 per cent). www.goldfields.co.za Integrated Annual Review 2011 Cover image: Panoramic view of the Twin Early morning photograph of mining operations at Tarkwa mine. Early morning photograph of mining operations at Tarkwa Shaft complex, South Deep 1 1. Group overview At the heart of Gold Fields’ strategy, the primary principle that “If we cannot mine safely, we will not mine” remains our core value. Continuous high levels of investment in mine site Mineral Reserves development, Mineral Resources to Mineral Reserves conversion, resource definition drilling, on lease and greenfields exploration is being maintained in an attempt to ensure a sustainable pipeline Strategic intent 3. Increase operational flexibility and margin Safe production Operational excellence delivery 2. Drive Resource to Reserve conversion Reserve definition ‘Mine design 1. Investment in exploration and discovery and planning” Realise asset potential Growing free cash flow Exploration space ‘Discovery” Leverage ore body capacity Sustaining the future Gold Fields Limited (GFI) is a leading Growing Gold Fields is not only about international unhedged gold mining increasing our production and Deliver executable plans company with eight operating mines development, it is also about ensuring spread across four geographical sustainable growth in our Notional regions, namely Australasia, South Cash Expenditure margin (NCE), Building a Growth Pipeline Africa, South America and West Africa. earnings and returns to shareholders As a result of its expanding exploration on a per share basis – as well as the Driving Value Creating Projects portfolio and growth projects, the robustness of our Mineral Resources to Feasibility company is poised to increase its global and Mineral Reserves. Furthermore, it reach. The company has a robust is about strengthening our position and Create Mineral Reserve Mining Flexibility production capability founded on its creating a truly global diversified high-quality, long-life assets and with portfolio. Growing the Safe Production Profile the size of its Mineral Reserves profile, remains one of the strongest in the Licence to Operate industry. Headline numbers1 (31 December 2011 Mineral Reserve gold price of US$1,300/oz) MANAGED ATTRIBUTABLE Gold Equivalent Mineral Resource 239.5 Moz 225.4 Moz 31 December 2010 Uranium Mineral Resource 90.1 Mlbs 90.1 Mlbs Gold Equivalent Mineral Reserve 81.0 Moz 76.7 Moz Production Depletion from Mineral Resource 4.2 Moz 4.1 Moz 12 Months Production Depletion from Mineral Reserve 4.0 Moz 3.9 Moz Gold Equivalent Mineral Resource 234.4 Moz 217.0 Moz 31 December Uranium Mineral Resource – – 2011 Gold Equivalent Mineral Reserve 85.1 Moz 80.6 Moz 1Group total figures are equivalent gold ounces and include Cerro Corona (Au and Cu as Au-Equivalents) and Growth Projects (Au and other metals as Au-Equivalents or 2PGE+Au). 31 December 2011 figures are net of production depletion. Gold Fields: Mineral Resource and Mineral Reserve Overview 2011 2 Toodoggone JV Woodjam JV Arctic Platinum VANCOUVER BEIJING DENVER Yanfolila Mankayan Kangare Far Southeast BAMAKO MANILA Telikan Talas JV Gladie Boako ◆◆ ACCRA Nabire Bakti JV Tarkwa Cerro Corona Damang Damang Hualgayoc JV Asheba Edwenase ◆ LIMA Tacna Moquegua Agnew Chucapaca JV Amantina JV Agnew JOHANNESBURG ◆◆ Rio Baker Taguas JV ◆ Pircas South Deep ◆ Salares