Gold Fields Acquires Cerro Corona Project in Peru
December 19 2003 - 1:00AM
PR Newswire (US)
Gold Fields Acquires Cerro Corona Project in Peru JOHANNESBURG,
South Africa, Dec. 19 /PRNewswire-FirstCall/ -- Gold Fields Ltd.
(NYSE: GFI; Johannesburg), through its subsidiary, Gold Fields
Corona BVI., has signed a definitive Share Purchase Agreement to
acquire 92 per cent of the voting shares of Sociedad Minera La Cima
S.A. from various members of the Gubbins family. Sociedad Minera La
Cima owns the Cerro Corona Project and other mineral properties in
Cajamarca, Peru. Closing of the agreement is conditional upon the
completion of the acquisition of required surface rights, approval
of the EIS and the issue of construction permits. Based upon a
Definitive Feasibility Study completed by GRD Minproc with an
amendment completed in August 2003, it is believed that the project
has the capacity to produce 147,000 ounces of gold and 65 million
pounds of copper per year (280,000 ounces of gold-equivalent), with
total operating costs of $212 per ounce of gold equivalent or $0.48
per pound of copper equivalent (using a gold price of $360/oz and a
copper price of 80c/lb). The deposit, which lies within a well
endowed trend just to the north of the Yanacocha mine in the
Cajamarca district of northern Peru, is well studied and has robust
economics. Previous feasibility studies of the deposit exploited a
larger resource base indicating potential for expansion over the
most recent Definitive Feasibility Study. The remainder of the belt
and the district has seen relatively little modern exploration and,
thus, is quite prospective. The Cerro Corona deposit is a
gold-copper porphyry with reserves, based on the Definitive
Feasibility Study, as presented in the table below. Cerro Corona
Ore reserves Contained Metal Classification Ore (1)(2) Cu Au Cu Au
(Mt) (%) (g/t) (kt) (koz) Proved 50.7 0.60 1.11 306 1809 Probable
14.5 0.62 1.24 91 579 Total 65.2 0.61 1.14 397 2388 Note: (1) Ore
cut-off based on individual block revenue after processing and
administration costs of at least $1.75/t. (2) Block revenue based
on Cu selling price of $0.90/lb and Au selling price of $275/oz.
Ian Cockerill, President and CEO of Gold Fields Ltd., commented,
"This transaction is in line with our strategy of diversifying our
geographical, technical and political risk by acquiring and
developing long-life, world class assets in all of the major gold
provinces of the world. This acquisition will give us our first
operational exposure in South America, a base from which we intend
to grow in the region." Gold Fields is the world's largest unhedged
gold company, with annual attributable gold production of 4.33
million ounces and attributable Mineral Resources of 196 million
ounces and Mineral Reserves of 84 million ounces. It has operations
in South Africa, Australia and Ghana (West Africa) and gold and
platinum group metals exploration projects throughout the world.
The company's primary listing is on the Johannesburg Securities
Exchange in South Africa (GFI) with secondary listings on the
London, Euronext, Paris, Brussels, and Swiss exchanges. The
company's American Depositary shares are listed on the New York
Stock Exchange, also under the symbol GFI. DATASOURCE: Gold Fields
Ltd. CONTACT: South Africa, Neriina Bodasing, +27-11-644-2630, or
fax, +27-11-484-0639, or North America, Cheryl A. Martin,
+1-303-796-8683, or fax, +1-303-796-8293, both of Gold Fields Ltd.
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