2.3 South Africa region World-class mechanised mine in the Witwatersrand Basin. As project construction shifts to production build-up, South Deep is a kingpin asset to support the Gold Fields vision: South Africa To be the global leader in sustainable gold mining The South Africa region Mineral Resources currently accounts for 73% of the gold Mineral Resource 76.0 million ounces and 73% of the gold Mineral Mineral Reserves Reserve base, excluding growth projects. 38.0 million ounces The Gold Fields Mineral Resource and Mineral Reserve Supplement to the Integrated Annual Report 31 December 2014 REGIONS, OPERATIONS AND PROJECTS 87 SOUTH DEEP The mechanised mine is still in the production ramp-up phase. The current Life-of-Mine (LoM) is estimated to extend to 2087 (73 years). The review by the Geotechnical Review Board (GRB), of South LIMPOPO Deep’s current mining layout and methodology, as well as the geotechnical support regime, commenced in 2014. Concurrent with the GRB review, Gold Fields is undertaking a wholesale strategic review of the operation with the objective of re-basing the production profile and positioning South Deep as NORTH a core franchise asset. WEST GAUTENG Johannesburg 2015 will focus on a new mining strategy, which will be aligned to the new pillar configuration, once completed and approved. This will be anchored by the latest updated resource model, so that MPUMALANGA new mine designs and schedules will inform the December 2015 Mineral Reserves. SOUTH The ore body is AFRICA well understood FREE STATE and all key infrastructure LESOTHO is now installed to deliver the mine as a low cost, long-life mechanised mining operation. Operational pro¿le Mining method Long-hole stoping, low-profile mining (destress) and drift and benching Two shaft systems are in production – the twin shaft complex, with the main and ventilation shafts to Infrastructure and Mineral 110 level, as well as the south shaft complex, which has a main and two sub-vertical shafts to 95 level Processing and one CIP gold plant with a capacity of 4.0Mtpa Mineralisation style Palaeoplacer i. Mineralisation hosted by conglomerates (reefs); ii. Laterally continuous with long-range predictability; Mineralisation characteristics iii. Clear patterns of predictable mineralisation governed by sedimentary characteristics; and iv Exploration programmes and grade control drilling ongoing to test homogeneity of geology and grade domains The Gold Fields Mineral Resource and Mineral Reserve Supplement to the Integrated Annual Report 31 December 2014 88 REGIONS, OPERATIONS AND PROJECTS 2.3 South Africa region (continued) Positioning Regional Geology South South Deep is located in the Far West Rand hydrothermalism. The most fundamental control Goldfield on the north-western rim of the to the gold distribution remains the association Deep to Witwatersrand Basin. This basin comprises a with quartz-pebble conglomerates on intra- 6,000 metre-thick sequence of predominantly basinal unconformities. The Modified Palaeoplacer deliver on clastic sedimentary rocks, the upper part of which, Model is the favoured mineralisation model that is one of the the Central Rand Group, is characterised by the currently in use. occurrence of auriferous and uraniferous quartz- largest pebble conglomerates (reefs) that are sporadically EXPLORATION DRILLING AND EXPENDITURE known gold interspersed between finer grained quartzitic On-lease metres drilled and expenditure for the units. All major reef units are developed above 12-month period ended 31 December 2014 are ore bodies unconformity surfaces. The angle of unconformity summarised below. No brownfields surface drilling is typically greatest near the basin margin and exploration was conducted in 2014. in the world decreases toward more distal areas. Underground long-inclined borehole (LIB) drilling The reefs are considered to represent extensive continues from 100 2W into Corridor 1 to increase fluvial deposits into a yoked basin, some geological confidence and the targeted 30m x 350 kilometres long in an east-north-easterly 30m underground drilling protocol to provide direction, and 200 kilometres wide in a north- increased resource definition and grade control north-westerly direction. The reefs are continuous is adhered to where drilling platforms permit. as a consequence of the regional nature of the In accordance with the SAMREC 2007 Code, erosional surfaces. Preferential reef development rigorous QA/QC protocols are maintained on within channel systems and sedimentary features all exploration programmes. Leading industry such as facies variations and channel frequency practice for data acquisition is applied and assist in mapping out local gold distributions. accredited laboratories, which are regularly The gold is deemed to be primarily of detrital reviewed both internally and externally, are utilised. origin, deposited syngenetically with the Analytical QA/QC is maintained and monitored conglomerates. Although the gold generally occurs through the submission of blanks, certified in native form and is usually associated with pyrite reference material and duplicates plus umpire and carbon, most of it has been subsequently laboratory checks. modified and locally remobilised during secondary December 2014 December 2013 Metres ZAR US$ Metres ZAR US$ Operation drilled (millions) (millions) drilled (millions) (millions) South Deep 3,2956.150.579,983 26.9 2.8 The Gold Fields Mineral Resource and Mineral Reserve Supplement to the Integrated Annual Report 31 December 2014 REGIONS, OPERATIONS AND PROJECTS 89 Reference Gold Fields T. N. Roads Farm Boundaries Sibanye Gold R500 Westonaria Towns Sibanye Gold N 12 Durban R501 Sibanye Gold Roodepoort Deep CARLETONVILLE Harmony Sibanye Gold AngloGold Ashanti Blyvooruitzicht SOUTH DEEP R28 Tautona Sibanye Gold GOLD MINE Mponeng Kusasalethu R500 FOCHVILLE N 12 0 5 10 Kilometres Social licence to operate South Deep’s commitment to continued improvement in health, to develop a solution for managing acid mine drainage (AMD) safety and environmental management is underpinned by generation in the underground workings at mine closure. its ISO 14001:2004 and OHSAS 18001 certification, and its Underground AMD generation is well managed during the certification to the International Cyanide Management Code. operational phase by ongoing pumping to surface of the underground water. Energy and carbon management is a key business imperative to reduce our carbon footprint and to realise cost savings through South Deep has an approved Water Use Licence (WUL) that the implementation of energy efficiency initiatives. South Deep was issued in November 2011. A water use license amendment will be developing a five-year energy security plan (which will application will be submitted to the Department of Water Affairs include an assessment of renewable energy options) to manage and Sanitation (DWAS) in Q2 2015, mainly to reflect various the supply risks currently faced by South Africa’s national water management initiatives and updates to the mines water electricity utility, Eskom. In the short term, a load curtailment management approach, since the licence was issued. arrangement has been negotiated with Eskom to minimise South African legislation requires the submission of a Social and production disruptions and ensure the continued safe operation Labour Plan (SLP) as a prerequisite for the granting of mining or of the mine. production rights. The SLP requires mining companies to develop Other environmental initiatives are focussed on responsible and implement comprehensive human resources development water, air (including dust control) and mine closure management, programmes (including employment equity plans) and Local and on maintaining our licence to operate through regulatory Economic Development (LED) programmes. These programmes compliance. A comprehensive water management action plan are aimed at promoting employment and advancing the social was developed in 2014 to ensure an integrated approach to and economic welfare of all South Africans with a strong focus on water management. The plan includes cost saving measures community development. South Deep submitted a revised SLP to such as the installation of reverse osmosis plants to treat mine the regulatory authority in Q2 2013, which remains under review. water to potable standards, which reduces the mines Rand However, South Deep continues to implement the commitments Water intake (saving an estimated R300 000 per month from in the SLP and provides an annual report to the regulator on its July 2015). In 2015, additional technical studies are planned progress with meeting these commitments. Total Recordable CO2 Fatal Injury Injury Energy emissions Water Frequency Frequency consumption (000 tonnes) withdrawal Sustainability factors Rate Rate (TJ) (scope 1 & 2) (million litres) C2014 0.16 4.65 1,807 497.9 2,225 South Deep C2013 0.06 5.19 2,137 559.3 3,370 The Gold Fields Mineral Resource and Mineral Reserve Supplement to the Integrated Annual Report 31 December 2014 90 REGIONS, OPERATIONS AND PROJECTS 2.3 South Africa region (continued) South Deep Gold Mine www.goldfields.com GENERAL LOCATION South Deep Gold Mine is situated in the magisterial districts of Westonaria and Vanderbijlpark (Gauteng province), some 45 kilometres south-west of Johannesburg at latitude 26º 25’ S and longitude 27º 40’ E. It is accessed via the N12 provincial road between Johannesburg and Potchefstroom. ASSET FUNDAMENTALS The conversion of the old order mining right to a new-order mining right,