Damang gold mine - Damang reinvestment project update

The Damang reinvestment project (DRP) was approved by the Gold Fields Executive Committee and Board in Q4 2016. The Development Agreement (DA) reached between the Government of Ghana and Gold Fields supported the DRP.

The DRP is instrumental in providing the necessary operational flexibility, mining efficiencies and head grades capable of returning Damang to a financially sustainable, long life. Implementation of the DRP started at the beginning of 2017 and has progressed ahead of schedule in terms of production and is tracking below planned costs.

Due to anticipated long lead items for the SAG mill shell delivery and replacement, equipment was ordered in 2017 and the expected change out is scheduled for Q3 2018. The civil works for the Jaw Crushing Plant commenced in December 2017 and were completed in Q1 2018. The installation of the jaw crusher will mitigate the risk of significant production loss in the event of a failure of the Primary Crusher.

Trial deposition at the Far East tailings storage facility (FETSF) commenced in January 2018.

The Damang unconstrained study to evaluate the possibility of increasing the Damang Resource and Reserve base to extend the current LoM would entail a maximum main pit cut-back to access the deeper portions of the ore body beyond the constraints of the current DRP. The PFS will be progressed over the next 12 months.