Gold Fields Announces Resources of 251 Million Ounces and Reserves of 83 Million Ounces
August 25 2008 - 9:12AM
PR Newswire (US)
JOHANNESBURG, August 25 /PRNewswire-FirstCall/ -- Gold Fields
Limited (Gold Fields) (NYSE, JSE, DIFX: GFI) today published its
Resources and Reserves Statement, as at 30 June 2008. Gold Fields
CEO, Nick Holland said: "Gold Fields' 83moz reserve base remains
one of the strongest in the industry and provides Gold Fields with
a robust base from which to pursue its aggressive growth strategy.
Central to this growth strategy is the 251moz of resources which
represents significant organic growth potential at each of our
existing mines." Net of the 5.7moz of depletion over the last 18
months - the sale of the Choco 10 Gold Mine in Venezuela and the
Essakane Project in Burkina Faso; and inclusive of copper and
platinum as gold equivalent ounces: - Gold Fields' total
attributable precious metal Resources have remained flat at 251moz
from 252moz as at December 31 2006 (4% increase in resources after
depletion) - Gold Fields' total attributable precious metal
Reserves have decreased by 12% to 83moz from 94moz as at December
31 2006 (4% decrease in reserves after depletion) The Reserves were
calculated using approximate historical three-year average
commodity prices as required by the United States Securities and
Exchange Commission (SEC) guidelines (US$650/oz in Ghana and Peru,
ZAR150,000/kg in South Africa, and AUS$750/oz in Australia). The
copper price used for the reserve calculation is US$1.75/lb.
However, if the Reserves are calculated using gold prices which
approximate the spot price of gold (around US$810/oz), Gold Fields'
Reserves are robust at approximately 91moz. At these prices, which
are significantly higher than the SEC's mandated three-year trading
average, the leverage inherent in Gold Fields' resource base is
apparent. The gold prices used to calculate Resources represent
upside potential of US$ 23%, AUS$ 23% and ZAR 20% above the reserve
prices which is more aligned with recent spot prices, and reflect
the very significant upside potential in the Gold Fields ore
bodies. The copper price used for the resource calculation is
US$2.10/lb which reflects the same 20% delta between the gold
resource and reserve prices. Resources are reported inclusive of
Reserves, geotechnical support and stability pillars. The Group's
Resource and Reserve statement has been reviewed by the Gold Fields
Board and has been audited and approved by leading independent
global mining consultancies. The statement is SAMREC and Industry
Guide 7 (SEC) compliant and the process followed in producing the
declaration is in alignment with the guiding principles of the
Sarbanes-Oxley Code (SOX). Industry specific statutory codes
(SAMREC Code, NI 43-101, JORC, etc.) are not superseded by the SOX
directives, and consequently the Gold Fields Competent Persons
Reports integrate the requirements of the various reporting codes
and present compliant documentation for public reporting. The
pillar and remnant mining review commissioned in April 2008 as part
of Gold Fields' commitment to safety has now been completed. As a
result of the review, 600,000oz of reserves in pillar and remnant
areas at Driefontein have been removed, constituting 3% of the
total reserves over the life of that mine. At Kloof, 5% of the
total reserves over the life of the mine have been removed,
amounting to 500,000oz. Inclusive of the pillar mining impact,
production at Driefontein is projected to be 6,400kg during
Q1F2009, stabilising at 6,800kg during Q2F2009 and beyond.
Production at Kloof is projected to be 3,900kg during Q1 and
Q2F2009, stabilising at approximately 6,000kg in Q3F2009 and
beyond. This is line with previous guidance provided on 1 August
2008. The full Gold Fields 2008 Resources and Reserves Supplement
will be published with the Gold Fields F2008 Annual Report on 29
September 2008. Gold Fields' 2008 Resources and Reserves tables are
available on the company website at http://www.goldfields.co.za/.
About Gold Fields Gold Fields Limited is one of the world's largest
unhedged producers of gold with attributable production of 3,64
million ounces per annum from eight operating mines in South
Africa, Ghana and Australia. A ninth mine, Cerro Corona Gold/Copper
mine in Peru, commenced production in August 2008 at an initial
rate of approximately 375,000 gold equivalent ounces per annum. The
company has total attributable ore reserves of 83 million ounces
and mineral resources of 251 million ounces. Gold Fields is listed
on the JSE Limited (primary listing), the New York Stock Exchange
(NYSE) and the Dubai International Financial Exchange (DIFX), the
New Euronext in Brussels (NYX) and Swiss Exchange (SWX). For more
information please visit the Gold Fields website at
http://www.goldfields.co.za/. DATASOURCE: Gold Fields Limited
CONTACT: Media Enquires: Daniel Thole, Tel: +27-11-644-2638,
Mobile, +27-82-929-3672. Investor Enquires: Willie Jacobsz, Tel:
+1-508-358-0188, Mobile, +1-857-241-7127
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