Growth
Gold Fields has a target of achieving five million ounces per annum,
either in production or in development, by the end of 2015. To this end
we have developed an extensive pipeline of projects which are
discussed below.
PROJECT DEVELOPMENT
Far South East (FSE)
In the Philippines, exploration at the Far South East project (Gold
Fields have an option to earn 60 per cent) is progressing well with eight
underground diamond drill rigs operating and nearly 22,000 metres
completed in 17 core holes. In addition, surface drilling also
commenced during the quarter. Initial results of the proof-of-concept
drilling confirmed the preliminary model based on historic drilling and
identified the presence of significant mineralisation outside the model,
both laterally and at depth. Drilling is in progress to further scope the
system as well as complete a sufficient number of infill holes to support
the first resource model to be delivered in March 2012.
In addition to the resource definition drilling, a comprehensive
geotechnical programme is underway as well as studies on
hydrogeology, mining methods and potential sites for tailings disposal
and infrastructure. The community relations team has ramped up its
activities in the district and initiated sustainable development
programmes in partnership with the local communities.
Exploration expenditure of R26 million (US$4 million) and feasibility and
evaluation costs of R17 million (US$3 million) in the June quarter
compare with exploration expenditure of R17 million (US$2 million) and
feasibility and evaluation costs of R27 million (US$4 million) in the
March quarter.
Chucapaca
Progress is being made towards completion of the feasibility study at
the Chucapaca project in Peru (Gold Fields 51 per cent). Twelve drill
rigs are on site working on infill and geotechnical drilling within the
resource area. Results continue to be positive and an updated interim resource estimate is expected to be released in the last quarter of the
year. The final model for the feasibility study is planned for mid-2012.
Sterilisation drilling and additional holes for metallurgical samples have
commenced. A battery of metallurgical variability tests has been
completed and an optimisation study is in progress. The results of this
work will feed into the plant throughput and process design for the
environmental impact assessment and the feasibility study. Baseline
work for the environmental impact assessment is expected to be
completed in the March 2012 quarter. As part of our formal
agreements with the communities, a significant effort has been made to
hire and train local employees as well as establish sustainable
development programmes within communities impacted by the project.
Capitalised exploration expenditure for the June quarter amounted to
US$18 million compared with US$12 million in the March quarter.
Arctic Platinum project (APP)
In April 2011 a decision was reached to conduct a pre-feasibility
consolidation study (PFS) for the APP project in Finland (Gold Fields
100 per cent). The primary objective of the study is to review the
previous feasibility study completed in 2005, update the mineral
resource and mining profiles, incorporate the changed metallurgical
and residue disposal requirements and to develop an updated capital
and operating cost model for the project. The PFS is scheduled for
completion by the end of the year.
The pilot plant metallurgical test work which forms an integral part of
the PFS is on schedule. The pilot plant flotation runs were completed
in Finland on two 50 tonne samples from the Konttijarvi and Ahmavaara
deposits and both concentrate samples have been transported to
Canada for pilot plant hydrometallurgical recovery of gold, platinum,
palladium, copper and nickel. Overall metal recoveries in the flotation
concentrates appear to be satisfactory in relation to the prior benchscale
test work. The pilot-scale hydrometallurgical campaign
commenced in July 2011 and initial results are expected by September
2011.
A new mining licence application was filed in June for an area
measuring 2,434 hectares which is contiguous with the Suhanko
project. The new licence area, referred to as Suhanko II, covers the
Vaaralampi and Tuumasuo PGE-Cu–Ni deposits. The process of
completing the Environmental Impact Assessment for Suhanko II has
been initiated.
Yanfolila
At the Yanfolila project in southern Mali (Gold Fields 85 per cent),
resource delineation drilling continued with four rigs on the Komana
East, Komana West and Kabaya South deposits, in parallel with other
elements of a scoping study which is on schedule for completion during
the September 2011 quarter. Target definition work and initial drilling
also continued on several other promising targets which are located
within a 20 kilometre radius of Komana East.
EXPLORATION PROJECTS
In addition to the three resource development projects mentioned
above, the greenfields exploration portfolio also consists of two
advanced drilling projects, six initial drilling projects and nine target
definition projects in Peru, Chile, Ghana, Canada, Kyrgyzstan, and
Australia. Near mine exploration continued at St Ives, Agnew, Damang
and Cerro Corona during the quarter.
Advanced drilling projects
In British Columbia, Canada, Gold Fields can earn up to a 70 per cent
interest in the Woodjam project with joint venture partners Fjordland
Exploration Inc. (TSX.V:“FEX”) and Cariboo Rose Resources
(TSX.V:“CRB”). Resource delineation drilling continued during the
quarter with two drill rigs on the Southeast Zone porphyry copper-goldmolybdenum
target. The drilling programme is on schedule for
completion during the September 2011 quarter and delivery of a
SAMREC 2007 compliant mineral resource declaration on the
Southeast Zone and a conceptual study by September 2011.
Additional prospective third party concessions within the project area
were optioned during the quarter and will be incorporated into the initial
drilling plans to be carried out during the remainder of the year.
At the Talas project in Kyrgyzstan (Gold Fields 60 per cent), a new
community engagement strategy has been implemented.
Environmental monitoring and reclamation of disturbed areas is
ongoing. There has been a notable improvement in community
relations and the Central Government continues to be very supportive
of the project. The exploration programme is expected to re-start in
2012.
Initial drilling projects
The East Lachlan joint ventures in New South Wales, Australia,
comprise of two project areas (Wellington North and Cowal East) where
Gold Fields has an 80 per cent interest and another two projects where
Gold Fields is still earning into an 80 per cent interest with Clancy
Exploration Ltd (ASX:”CLY”). Reverse circulation drilling completed at
the MacGregors greenstone hosted orogenic gold prospect (Parkes
East JV Project) intersected wide zones of near surface, low grade gold
mineralisation confirming a large hydrothermal gold system from
surface which is open along strike and at depth. Initial reverse
circulation drilling was also undertaken at the Boxdale Prospect,
Moorefield Project. Initial indications confirm the presence of a wide,
near surface mineralised structure with encouraging gold and silver
contents together with anomalous arsenic and antimony values. Full
field air core drilling for porphyry copper-gold mineralisation at the Myall
joint venture has been temporarily suspended due to cereal crop
sowing and continuing wet weather.
On the Alectown tenements (Gold Fields 100 per cent) located within
the East Lachlan project area, reverse circulation drilling on the Buryan
targets confirmed the presence of low grade porphyry-style gold and
copper mineralisation in a strongly altered diorite intrusion. Drilling also
intersected a new carbonate base metal-gold epithermal target on the
edge of the porphyry system identified above and returned low grade
gold and copper mineralisation. The epithermal and porphyry
mineralisation at Buryan remains open along strike and at depth.
Reverse circulation scout drilling was carried out at the Salares Norte
property in Chile (Gold Fields has an option for 100 per cent) to test
selected epithermal targets. Initial results are encouraging and a
follow-up drilling programme is planned for the next field season. An
option agreement was signed for the adjacent third party-owned Rio
Baker concessions (Gold Fields option for 100 per cent) which will be
incorporated into the exploration plan for the Salares Norte project
area. At the nearby Pircas epithermal gold project in Chile (Gold Fields
has an option for 100 per cent), the reverse circulation drilling
programme was cut short by winter weather after only two holes were
completed. This drilling programme is planned to continue in
September 2011.
A 2,000 metre diamond drilling programme commenced in late June
2011 at the Toodoggone project in British Columbia, Canada where
Gold Fields can earn up to 75 per cent in a joint venture with
Cascadero Copper Corporation (TSX.V:“CCD”). The drill holes are
testing the Mex porphyry copper-gold target which was not drilled by
Gold Fields in the last exploration campaign completed in 2009.
At the Asheba project in Ghana (Gold Fields 90 per cent), interpretation
of the initial drill results combined with old mine maps have delineated
additional exploration targets along strike and the project warrants
further work.
Near Mine exploration
St Ives
The main focus this quarter has been on resource development drilling
in the Neptune and Victory prospective open pit expansion areas. In
excess of 25,000 metres of reverse circulation and diamond drilling
have been completed in the Neptune area and results continue to be
positive. Interim model updates are in progress and will be combined
in order to complete the global optimisation of the Greater Neptune-
Greater Revenge project area.
Framework diamond drilling has been completed around the Victory
complex. Prospective new mineralisation has been identified to the
west of the current Leviathan pit which will require follow up. Additional
mineralisation was also identified in the vicinity of the Britannia
Footwall, Sirius and Paddy’s resources.
Target generation drilling was carried out at several other targets within
the Junction – South Argo Trend and the South Foster area. Reserve
conversion and extensional drilling is in progress at Athena, Hamlet
and Cave rocks.
Agnew
Recent drilling has identified three high grade ore-shoots at depth on
the Waroonga Main Lode North: the Fitzroy, the Bengal and the
Hastings shoots. The Fitzroy and Bengal shoots plunge steeply to the
northwest and may intersect with the Porphyry Link Zone which was
previously identified between the Main North and Kim Lodes. Results of
the NAVI® drilling have been positive and resource delineation drilling
will take place in these areas during the second half of 2011.
Encouraging assay results from two new holes into the Porphyry Link
Zone suggest that the extensions to the shallow plunging, moderate
grade mineralisation situated on the southern edge of the Kim South
Lode extends to the south and may potentially join up with the high
grade mineralisation in the Fitzroy and Bengal Shoots. Although the
immediate focus at Waroonga is on confirming grade and continuity of
the high grade shoots, this mineralised trend between Kim Lode and
the Fitzroy Shoot requires follow-up which will be scheduled for the
2012 work programme.
Recent reconnaissance air core drilling was completed to the north of
the Cinderella deposit. Two zones of shallow mineralisation were
delineated, approximately 200 metres and 1 kilometre north of the
potential Cinderella pit position respectively. A follow-up drilling
programme is required.
Damang
Based on positive results of the recently completed Phase 1 proof of
concept drilling programme at Greater Damang, a pre-feasibility study
(PFS) commenced in July 2011. This includes the Phase 2 resource
definition drilling programme of 43,000 metres, already underway.
Drilling will be completed from the active pit floor in most cases and is
designed to test the limits of potential mineralisation at depth. Assay
results have been broadly consistent with expectation and continue to
define both continuity of the system to depth and presence of regular
higher grade pods which drive the economics of this deposit.
Cerro Corona
Initial assay results of the recently completed Phase 2 infill and
extensional drilling programme appear to generally confirm the existing
resource model, with local areas of either higher or lower grade than
modelled. The data will be used to develop a revised litho-structuralalteration
model and resource update to better define the Life of Mine
reserves.
Exploration framework drilling commenced in June on the adjacent
Sylvita project. Of the five holes completed, three have successfully
intersected altered porphyry and two intersected limestone with
narrower dykes intruding the sequence. Skarn and sulphide manto
mineralisation has been observed in the limestone close to dykes and
the porphyry, with some indications of localised strong copper
mineralisation.
The Oxide Stockpile Drilling project was completed in June 2011.
Assays received confirmed the estimated grade of the stockpile, as well
as distribution and very low levels of soluble copper within the stockpile
stack. Full analysis and modelling of the stockpiles was completed in
July 2011.
Business development
An option agreement was signed with a private owner in May 2011
which allows Gold Fields the right to acquire 100 per cent of the
Mandiana project in Guinea for a schedule of modest option payments
over three years. Field work will focus on the delineation and testing of
initial drilling targets within the first year.
An option agreement was signed in June 2011 which allows Gold
Fields the right to acquire the third party Robson claim within the
Eldorado project area in British Columbia, Canada. Terms include
modest work commitments over four years and a royalty which can be
purchased.
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