| Tue 11 May 2010, 8:39 | | GFI - Gold Fields Limited - Gold Fields and Buenaventura announce major gold |
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GFI
GOGOF
GFI - Gold Fields Limited - Gold Fields and Buenaventura announce major gold
discovery in Southern Peru
Gold Fields Limited
Incorporated in the Republic of South Africa
Registration number 1968/004880/06
Share code: GFI
Issuer code: GOGOF
ISIN - ZAE 000018123
MEDIA RELEASE
GOLD FIELDS AND BUENAVENTURA ANNOUNCE MAJOR GOLD DISCOVERY IN SOUTHERN PERU
Johannesburg, 11 May 2010: Chucapaca`s joint venture partners, Gold Fields
Limited (51%) (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) and Compania de Minas
Buenaventura S.A.A. (49%) (Buenaventura, BVN), are pleased to announce the
discovery of a major gold-copper-silver deposit in their Chucapaca project area
(CPA) in southern Peru.
Called the Canahuire deposit, it has a Mineral Resource estimate of 5.6 million
gold equivalent ounces1 (Table 1), with mineralisation potential beyond the
extent of current drilling. The Inferred Mineral Resource for Canahuire is
approximately 83.7 Mt at 1.9 g/t gold, 0.09% copper and 8.2 g/t silver for a
total of 5.6 million gold equivalent (AuEq1) ounces.
Table 1: Chucapaca Project, Canahuire Deposit Inferred Mineral Resource (1 May
2010)(*)
Tonnes(Mt) Grade Grade Grade Cu Grade AuEq Metal AuEq(1)
Au(g/t) Ag(g/t) (%) (1) (g/t) (Moz)
83.7 1.9 8.2 0.09 2.1 5.6
* These Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability. Attributable metal to Gold Fields and Buenaventura is 2.9
Moz AuEq1 and 2.8 Moz AuEq1, respectively. The Mineral Resource is reported at
a 0.67 g/t gold equivalent cut-off grade constrained within an optimised pit
shell. The pit shell is based on price assumptions of US$1,150/oz gold,
US$3.00/lb copper and US$17/oz silver. The Mineral Resource estimate, which is
reported in accordance with the South African Code for the Reporting of
Exploration Results, Mineral Resources and Mineral Reserves, 2007 Edition
(SAMREC code), is reported without dilution or ore loss.
In a joint statement Nick Holland, Chief Executive Officer of Gold Fields, and
Roque Benavides, Chief Executive Officer of Buenaventura, said: "Canahuire is a
highly promising gold discovery in an emerging gold district in South America.
Geological indications are that there is significant upside at the Canahuire
deposit, as well as at other targets within the project area. This is an
important growth opportunity for Gold Fields and Buenaventura, and, could also
make a significant contribution to the economic development of our community
partners in the Moquegua region."
The Canahuire deposit is one of several targets in the 12,700 ha CPA, which is
on average 4,800 m high and located in the Altiplano area of southern Peru, 120
km northeast of the city of Moquegua. Both joint venture partners have
independently consolidated a significant portfolio of concessions adjacent to
the CPA and are advancing exploration on these concessions.
Tommy McKeith, Executive Vice president for Exploration and Business Development
of Gold Fields commented: "Delineating a 5.6 Moz AuEq1 resource in only 18
months from the first hole is a remarkable achievement by the exploration team.
The Canahuire interim scoping study is on track for completion by June 2010 and,
subject to a positive economic outcome, we will commence pre-feasibility in July
2010."
"While our initial focus is on the Canahuire deposit, we will at the same time
continue to explore the potential of the rest of the CPA," said Cesar Vidal,
Buenaventura`s Executive Vice President for Exploration.
The geometry of mineralisation in Canahuire indicates it is amenable to open-pit
mining. The proposed process consists of crushing and grinding with flotation
to produce a smelter-grade copper-gold concentrate followed by carbon in leach
(CIL) extraction from flotation tails. Recovery assumptions are for 77% gold,
82% copper and 44% silver recoveries respectively.
The joint venture partners` confidence in the success of Chucapaca is based on
the following factors:
- Drillhole sample and grade analysis data used in the
Mineral Resource estimate have been verified through
quality assurance and quality control programmes.
- The resource estimation has been independently
audited by AMEC, which has also been engaged to
complete the Interim Scoping Study.
- The Mineral Resource is relatively insensitive to
variations in metal prices and operating costs. A
25% decrease in metal pricing results in a 13.0%
decrease in Mineral Resource tonnes, a 9.3%
improvement in average AuEq1 grade and a 4.9%
decline in AuEq1 ounces above cut-off grade.
The joint venture company, Canteras del Hallazgo S.A.C (CDH), recently filed a
modification to the Environmental Impact Assessment with the Peru Ministry of
Energy and Mines to permit expanded activities for further scoping and in-fill
drilling and, which details the company`s commitment to environmental best
practice. Drilling activities will recommence after permitting approval is
obtained, which is expected by July 2010, and will focus on defining extensions
of mineralisation towards the west. In the interim drilling is underway to test
other exploration targets within the CPA.
Since exploration started at Chucapaca, CDH has worked closely with key
stakeholders, particularly local communities, by providing open and transparent
information. Agreements have been reached with the Corire, Santiago de Oyo Oyo
and Chucapaca communities, which facilitate the continuation of exploration
activities and studies. These agreements provide for health and education
programmes in collaboration with the appropriate authorities, sustainable
development programmes identified by the communities, participatory work and a
variety of training initiatives.
1.Gold equivalent grade was calculated based on gold, silver and copper grades
normalised to the differentials of metal prices and recoveries for silver and
copper (detailed in this release). Assuming the metal prices net of offsite
costs and recoveries as listed in this release.
Enquiries to Gold Fields
Investors
Willie Jacobsz
Tel +1 508 839-1188
Mobile +1 857 241-7127
Email Willie.Jacobsz@gfexpl.com
Nikki Catrakilis-Wagner
Tel +27 11 562-9706
Mobile +27 (0) 83 309-6720
Email Nikki.Catrakilis-Wagner@goldfields.co.za
Media
Sven Lunsche
Tel +27 11 562-9763
Mobile +27 (0) 83 260 9279
Email Sven.Lunsche@goldfields.co.za
Enquiries to Buenaventura
Carlos Galvez
Tel +51 1 419-2540
Email cegalvez@buenaventura.com.pe
Daniel Dominguez
Tel +51 1 419-2536
Email ddominguez@buenaventura.com.pe
Ends
NOTES TO EDITORS
About Gold Fields
Gold Fields is one of the world`s largest unhedged producers of gold with
attributable production of 3.6 million ounces per annum from nine operating
mines in South Africa, Ghana, Australia and Peru. Gold Fields also has an
extensive growth pipeline with both greenfields and near mine exploration
projects at various stages of development. Gold Fields has total attributable
Mineral Reserves of 81 million ounces and Mineral Resources of 271 million
ounces. Gold Fields is listed on JSE Limited (primary listing), the New York
Stock Exchange (NYSE), the Dubai International Financial Exchange (DIFX), the
Euronext in Brussels (NYX) and the Swiss Exchange (SWX). For more information
please visit the Gold Fields website at www.goldfields.co.za.
About Buenaventura
Compania de Minas Buenaventura S.A.A. is Peru`s largest, publicly traded,
precious metal company and a major holder of mining rights in Peru. The Company
is engaged in the mining, processing, development and exploration of gold and
silver and other metals via wholly owned mines, as well as through its
participation in joint exploration projects. Buenaventura`s annual gold
equivalent production is 1.2 million ounces. It currently operates several mines
in Peru (Orcopampa, Poracota, Uchucchacua, Antapite, Julcani and Recuperada) and
has controlling interests in two mining companies (CEDIMIN and El Brocal), as
well as minority interests in several other mining companies in Peru. The
Company owns 43.65% in precious metal producer Minera Yanacocha S.R.L., a
partnership with Newmont Mining Corporation, and 19.26% in Sociedad Minera Cerro
Verde, an important Peruvian copper producer. Buenaventura is listed on the New
York Stock Exchange (NYSE). For more information please visit the website at
www.buenaventura.com.
The information in this media release that relates to the Mineral Resources is
based on information compiled by Matthew Dusci, AIG, Exploration Manager Peru
and General Manager CDH, who has overall responsibility and accountability for
the Canahuire Project, in terms of the SAMREC Code 2007. Alex Trueman, P.Geo.,
MAusIMM(CP), Principal Resource Geologist, is accountable for the Mineral
Resource estimation. Both are full time employees of Gold Fields and qualify as
Competent Persons as defined in the SAMREC Code. Mr Dusci and Mr Trueman consent
to the inclusion in the press release of the matters based on their information
in the form and context in which it appears.
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 release, such as "Mineral Resource", 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.
Sponsor:
J.P. Morgan Equities Limited
Date: 11/05/2010 08:39:01 Produced by the JSE SENS Department.
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