Integrated Annual Review 2012 Annual Financial Report 2012 Mineral Resources and Mineral Reserves Regional overview  

6.1 Larder Lake JV, Canada (Gold Fields earning into 65%)

During the second quarter of 2012 Gold Fields executed an agreement with Bear Lake Gold Limited on its Larder Lake project covering 2,788 hectares in eastern Ontario. For an expenditure of CDN$25 million over 36 months, Gold Fields will earn 51% of the project, with a firm commitment of CDN$5 million over the initial 12 months. An additional 10% may be earned by spending CDN$15 million over a further 24 months. Bear Lake may ask Gold Fields to arrange financing for an additional 5% interest.

Larder Lake Project, Canada
Larder Lake Project, Canada

Central to the Larder Lake Property is the Cheminis Mine which produced 7.6 million ounces of gold at a recovered grade of 3.7 g/t from a 331 metre vertical shaft and from six levels of which the deepest is at 315 metres. Bear Lake reported a NI43-101 compliant Indicated and Inferred Mineral Resource of 1.7 million tonnes at 5.0 g/t gold for 277,000 ounces (Mineral Resources reported using a minimal true thickness of 2 metres and a cut-off grade of 2.5g/t gold). In June, 2011 Bear Lake Gold reported an Inferred Mineral Resource estimate for their new Bear Lake Zone discovery of 3.7 million tonnes at 5.7 g/t gold for 683,000 ounces of gold. Both zones remain open on strike and at depth.

Other unexplored targets include Fernland where a hole completed in November 2007, intersected 11.3 g/t gold over 6.0 metres near surface.

The Larder Lake Project, located in the prolific Cadillac-Larder Lake Break in the southern Abitibi geological sub-province, is targeting orogenic gold style mineralisation of the green carbonate and flow ore styles renowned from the adjacent, now defunct, 11 million ounce Kerr-Addison Mine. Both styles of mineralisation have been encountered in the 22,466 metres of diamond drilling conducted during 2012. The current drill programme will terminate in the first half of 2013.