Joint media release - Gold Fields and Buenaventura: Update on Chucapaca project
Johannesburg and Lima, November 14, 2012: Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) and Compañia de Minas Buenaventura S.A.A. (Buenaventura) (NYSE, BVN; Lima Stock Exchange: BUE.LM) today announced an update on the Chucapaca exploration project in the southern Peruvian region of Moquegua. The project is a joint venture by Gold Fields (51%) and Buenaventura (49%) and operated by Gold Fields.
The partners have studied the viability of a large open-pit operation capable of sustaining a 30,000 tonnes per day throughput. A first draft of the feasibility study has been completed and as a result of relatively high capital and operating costs this option would not have delivered acceptable project returns.
Consequently, further study work will have to be performed by the joint venture focusing on value engineering the project to achieve the expected returns. Future work will mainly include the following:
Analysing different options for mine development, including an underground or a combined open-pit underground operation, and alternative throughput levels;
Re-establishing exploration to add resource flexibility, once the required permits are granted; and,
Optimising capital and project operating costs.
The partners reiterate their commitment to unlocking the potential of the Chucapaca project, which will need the support of all stakeholders, particularly the neighbouring communities. Gold Fields has built a close relationship with them and expects to continue working together through this phase of the project.
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