| Fri 19 Dec 2003, 9:45 | | Gold Fields Acquires Cerro Corona Project In Peru |
|
MEDIA RELEASE
Gold Fields Limited
(Incorporated in the Republic of South Africa)
(Registration number 1968/004880/06)
Share code: GFI ISIN: ZAE000018123
("Gold Fields")
GOLD FIELDS ACQUIRES CERRO CORONA PROJECT IN PERU
Johannesburg, 19 December 2003: Gold Fields Ltd. (JSE, NYSE: GFI), 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(koz)
(Mt) (g/t) (kt)
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.
- End-
Date: 19/12/2003 09:22:11 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
