Arrow Salient highlights
Arrow Strategic intent
Arrow Introduction
Arrow Governance
Arrow Group operations at a glance
Arrow Group Mineral Resource and Mineral Reserve Overview
Arrow Assessment and reporting criteria
Arrow Modifying factors
Arrow Exploration expenditure
Arrow Mineral Resource and Mineral Reserve statement
Arrow Mineral Resource and Mineral Reserve per operation
Arrow Mineral Resource and Mineral Reserve depletion and growth
Arrow South Africa Region
Arrow West Africa Region
Arrow Australasia Region
Arrow South America Region
  Growth Projects
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Arrow Competent Persons
Arrow Abbreviations
Arrow Glossary
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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:

  Region Unit   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$/oz   1,250   1,000   925   750  
Au – US$/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.