South Africa Region

The Witwatersrand Basin, discovered in 1886, extends from Johannesburg in the north to south of the town of Virginia, some 20 km south of Welkom, and covers an area of approximately 30,000 km2. Gold Fields’ four South Africa operations are hosted in this unique and world-renowned sedimentary basin, geographically situated in the central north northeastern parts of South Africa, which remains the most significant gold repository in the history of mining. Gold mines in the Witwatersrand Basin have collectively produced over 50 kt of gold over a period of more than 120 years.

The South Africa operations are located in two geographical regions of the Witwatersrand Basin, namely the Far West Rand Goldfield (West Rand and West Wits Line), some 60 to 70 km west of Johannesburg, and the Free State Goldfield, some 240 km southwest of Johannesburg. The operations of the Far West Rand Goldfield are the Driefontein, Kloof and South Deep Gold Mines near the towns of Carletonville and Westonaria and in the Free State, the Beatrix Gold Mine near Welkom.

The South Africa Region mining assets of Gold Fields Limited comprise a 100% interest in GFI Mining South Africa (Proprietary) Limited (GFIMSA), which holds a 100% interest in all four mining operations.

Annual overview

The Region has a declared attributable Mineral Resource of 223.9 (208.5) Moz, up 7% primarily due to the increase in the metal price (excludes TSF gold ounces). The South Africa Region has a Mineral Reserve of 64.7 (66.6) Moz, down 3%, net of 2.4 and 2.1 Moz depletion from the Mineral Resource and Mineral Reserve respectively. Aside from the restated Upper Elsburg Mineral Resource and Mineral Reserve figures, 87 to 110 level, the remainder are as per the original acquisition model (below 110 level, VCR and Old Mine).

The application to convert South Deep’s old order mining rights and to include Uncle Harry’s Prospecting Right into a new order mining right were submitted in Quarter 2 of F2009 to the Department of Mineral Resources (DMR) for approval.

The following points are noteworthy:

• All primary off-reef development at the long life shafts is planned to be fully mechanised by the end of Q4 F2010. This should have a positive impact on safety and productivity, which in turn should increase available Mineral Reserves and mining flexibility;
• The operations have re-focussed on quality mining programmes centred on improving the Mine Call Factor (MCF), optimal stope width control, optimal fragmentation, old gold reclamation and dilution controls;
• As part of the significant contribution to Safe Production Management (SPM), a key strategic initiative on Gold Fields operations, additional pillars and remnants have been excluded from the Driefontein (-537 koz) and Kloof (-146 koz) Mineral Reserves. In addition, a strong focus remains on ensuring that secondary support protocols, fundamental rock engineering criteria, robust mine design and layouts are incorporated into the Mineral Reserve declaration;
• During F2010 a mine design, planning and financial comparison will be undertaken between deepening 9 Subvertical Shaft and developing declines below 5 Shaft at Driefontein;
• At Kloof 7 Shaft, positive drilling results in the 69 line decline area below 39 Level have resulted in the original geometry of the high grade Ventersdorp Contact Reef (VCR) Sandy 1 facies being materially expanded. The extent of the Sandy 1 facies centred on the 45 level area to the south of 4 Shaft, was increased following prospective new borehole intersections;
• Key targets for underground and surface exploration drilling at Beatrix in F2010 include the VS5 zone at North Section, the G Block extension and Vlakpan access areas at South Section and the Kalkoenkrans Reef channel extensions at West Section (4 Shaft); and
• South Deep continued developing and enhancing the resource models and as a consequence has now designed and scheduled approximately 50% of the declared Mineral Reserve. The underground and surface exploration drilling programme to increase definition and confidence in the resource estimate continued during the year.

The creation of additional mineable face length remains key to providing increased production flexibility and is a priority focus at all operations.

Load-haul-dump training simulator, South Deep Gold Mine, South Africa		Ore conveyor belt, Kloof Gold Mine, South Africa

Mineral Resources and Mineral Reserves¹

Mineral Reserve sensitivities

The sensitivity of Mineral Reserve ounces at all the operations is shown in the accompanying chart, at -5%, -10% and +5%, +10% and +25%, relative to the base gold price used for this declaration. South Deep has been included across the range at its base declaration price.

The Mineral Reserve sensitivities are not based on detailed depletion schedules and should be considered on a relative and indicative basis only.

South Africa Region Mineral Reserve Sensitivity

2 Processing Plant, Driefontein Gold Mine, South Africa