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  South America Region

South America Region

The South America Region’s attributable gold and gold equivalent Mineral Resource base has increased by six per cent year-onyear, net of depletion, largely due to changes in the tailing storage facility (TSF) design and the additional pit cut-back resulting from the inclusion of the Sylvita concession area. The total attributable gold and copper-gold equivalent Mineral Reserve has decreased by five per cent, net of mined depletion. The South America Region currently accounts for two per cent and five per cent of the Group’s attributable precious metal and other metal gold equivalent Mineral Resource and Mineral Reserve base respectively.

Production at Cerro Corona in financial 2010 was 393,600 goldequivalent ounces, producing on average about 3,400 metric tonnes of copper and 11,600 ounces of gold per month. Construction of the TSF is progressing according to schedule. The Las Gordas tailings facility has been completed to an elevation of 3,740 mRL at the end of June 2010. Changes in the TSF design have been reviewed and as a result the overall capacity has been increased by 6 Mt.

Growth projects

Arctic Platinum project

During financial 2009 North American Palladium Limited (NAP) informed Gold Fields Finland Oy that it will not follow its option to acquire up to 60 per cent of the Arctic Platinum Project (APP). During the past two years NAP completed two phases of infill drilling on the SK Reef (21,723 meters) and Suhanko Project plus extensions (16,844 meters). The Resource modeling and estimation had not been completed by NAP by 31 August 2008 when the agreement expired, but all drill cores and assay data have been delivered to Gold Fields.

For financial 2010, a US$2.2 million exploration budget was approved to maintain APP’s mineral claim position and provide for additional flotation and hydrometallurgical recovery testing. A total of nine metallurgical ore samples from four deposits located at Suhanko and the SK Reef were delivered to SGS Lakefield, Ontario, for flotation of PGE- Cu- Ni concentrates and development of project hydrometallurgical recoveries. The budget also provided for updating of operating and capital cost estimates for construction of a ten million tonne per annum processing plant and for ongoing environmental baseline studies across the Suhanko and SK Reef project areas.

West Wits Tailings Treatment project (Uranium project)

The West Wits Tailings Treatment (WWTTP) project is a lowgrade gold and uranium recovery project focusing on the existing tailings storage facilities and the current underground mining horizons of Gold Fields’ three West Wits operations. The project will also produce sulphuric acid as a by-product for additional revenue streams and internal consumption.

The increase in tailings storage facilities’ uranium Mineral Resource (four per cent) and gold Mineral Resource (three per cent) is primarily due to the addition of material to the tailings from current underground production and the change in bulk density from 1.40 t/m3 to 1.42 t/m3 following test work and a regional benchmarking exercise. The underground uranium Mineral Resource has decreased by four per cent mainly due to depletion.

Work on the West Wits Tailings Treatment project feasibility study is continuing in terms of optimising the project implementation strategy through a phased approach and is on track for completion by the end of 2010. Modeling of the West Wits underground uranium resource is ongoing.

Chucapaca project

The Chucapaca project, located in southern Peru, is held by Canteras del Hallazgo S.A.C (CDH), a joint venture between Gold Fields and Compania de Minas Buenaventura (BVN). Gold Fields has been the project manager since exercising its “Back-In” right in June 2009 and, as of February 2010, has a 51 per cent interest in the project. A defined exploration programme has been implemented with the completion of 22,290 meters of framework drilling on the Canahuire deposit. In June 2010 the joint venture announced the completion of a positive mine scoping study and the decision to advance the project towards a pre-feasibility study.

CDH has received a permit for the expanded activities including further scoping and infill drilling on the Canahuire deposit. CDH has gained the confidence of the communities, reaching agreements with the Corire, Santiago de Oyo Oyo and Chucapaca communities to allow unfettered access for the next five years to complete the exploration and study phases of the work programme.

Talas project

The Talas project, located in Kyrgyzstan, is a joint venture between Gold Fields and Orsu Metals Corporation (Talas Copper Gold Joint Venture). Gold Fields is the project manager and holds a 60 per cent interest in the project. Taldybulak is the major deposit within the Talas project and has been the primary focus of exploration and Mineral Resource development since 2008. Since then the joint venture has drilled 21,728 meters at the Taldybulak project to further develop Inferred and Indicated Mineral Resources.

Exploration activities in the Talas project area are currently suspended due to political events in Kyrgyzstan. Gold Fields is monitoring political developments in the country before committing to further exploration activities.