Assessment and reporting criteria
The assessment and reporting criteria
as outlined in the 2007 SAMREC Code
have been used in the preparation of
internal Competent Persons Reports
(CPR), from which the numbers stated in
this report are drawn. Reporting is also in
accordance with Section 12 of the JSE
listing requirements.
The CPR principally comprises a
technical review of the Mineral Resource
and Mineral Reserve, together with a
techno-economic appraisal of the
Mining Asset. The Mineral Resource
and Mineral Reserve figures are derived
from a rigorous strategic and operational
planning process that is embedded at
each of the operating mines.
The gold prices used for the Mineral
Reserve declaration are in accordance
with the SEC guidelines and
approximate historical two to three-year
average commodity prices. As such,
they incorporate the lower portions of
the price cycle seen during this period
in terms of US$/oz.
The gold prices used for the derivation
of Mineral Resources represent upside
potential to that used for Mineral
Reserves. The Mineral Resource price
leverage is US$:25%, A$:25% and ZAR:24% above the Mineral Reserve
price to align more with recently seen
spot prices, which together with Mineral
Reserve sensitivities of ±5%, ±10% and
+25%, indicates the upside potential and
risk in the orebodies.
The following currency prices were used as a basis for estimation in this declaration:
| |
June 2009 |
|
June 2008 |
|
| |
Resource |
|
Reserve |
|
Resource |
|
Reserve |
|
| |
South Africa1 |
Au – ZAR/kg |
|
285,000 |
|
230,000 |
|
180,000 |
|
150,000 |
|
| U3O8 – US$/lb |
|
75 |
|
|
|
40 |
|
|
|
| |
West Africa |
Au – US$/oz |
|
1,000 |
|
800 |
|
800 |
|
650 |
|
| |
Australasia |
Au – A$/oz |
|
1,250 |
|
1,000 |
|
925 |
|
750 |
|
| |
South
America |
Au – US$/oz |
|
1,000 |
|
800 |
|
800 |
|
650 |
|
| |
Cu – US$/lb |
|
2.752 |
|
2.202 |
|
2.10 |
|
1.75 |
|
| 1 |
South Deep has designed and scheduled the Upper Elsburg Reefs from 87 to 110 level in accordance with the Gfiprotocol.
The remainder of South Deep continues to be reported as per the acquisition model (low gold price and corresponding lower
costs). |
| 2 |
Whittle shells run at US$2.20/lb for Mineral Resource US$1.75/lb for Mineral Reserve. US$2.75/lb and US$2.20/lb used to
calculate equivalent gold for Mineral Resource and Mineral Reserve respectively and to compare cash flows. |
Mineral Resource tonnages and grades
are estimated in-situ over a minimum
mining width, and include mineralisation
below the selected cut-off grade to
ensure that the Mineral Resource
comprises mining blocks of adequate
size and continuity.
Open pit operations are typically confined
to pit shells that are defined by the price
and costs used for their estimates. This
approach has required the introduction
of un-engineered pit shells to constrain
the mineralisation to that which is
economically and practically extractable
under assumed economic conditions,
and departs from the disclosure of a
mineral inventory regardless of stripping
ratios, location and continuity.
|
