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St Ives Gold Mine

Technical Short Form Report

St Ives Gold Mine represents a solid base for Gold Fields growth in Australia and is an important contributor to the Gold Fields’ vision, “To be the global leader in sustainable gold mining,” with a target contribution from the Australasia Region of ~1 Moz per annum.

Reported Mineral Resources and Mineral Reserves at St Ives gold mine show a headline increase of 1,105 and 443 koz during F2009 respectively, inclusive of a depletion of 490 koz, indicating an underlying increase of 1,595 and 933 koz respectively. Changes from June 2008 were dominated by discoveries at Athena and Hamlet, and the impact of the higher declared gold price. The St Ives LoM has again been extended by a further 12 months following a year of continued exploration successes.

The St Ives Gold Mining Company (Pty) Limited is wholly owned by Gold Fields Limited and is situated within the highly prospective Norseman-Wiluna Greenstone Belt in Western Australia. The St Ives operations are conducted within mining tenements comprised of 366 Mining Titles (69.919 ha), 9 Exploration Licences (15,530 ha), 47 Prospecting Licences (7,194 ha) and 19 Miscellaneous Licences (14,643 ha) for a total area of approximately 107,286 ha.

This Technical Short Form Report reflects the latest Life of Mine plan, coupled with an updated Mineral Resource and Mineral Reserve statement as at 30 June 2009. All Mineral Resource and Mineral Reserve figures reported are managed unless otherwise stated and Mineral Resources are inclusive of Mineral Reserves.

Salient Features

  • Highly prospective gold camp in the Norseman-Wiluna Archaean Greenstone Belt.
  • Dynamic mix of open pit and underground mining operations.
  • Mineral Resources at 5.6 Moz.
  • Mineral Reserves at 2.3 Moz – increase of 24% post F2009 depletion.
  • Continuous exploration and resource definition programmes supported by Research and Development (R&D) initiatives.
  • Athena – Hamlet complex; significant discovery in 2009.
  • Life of Mine extends to 2014 (5 years).

The St Ives gold mine is located 80 km south of Kalgoorlie, near Lake Lefroy in the Eastern Goldfields region of Western Australia. Gold was discovered at Kambalda in 1897 at “Red Hill Camp”. New discoveries during 1919 led to the construction of many small mines and a town in the St Ives area.

St Ives takes its name from the largest of the many small, historic workings scattered throughout the area, that of Ives Reward, which was discovered by prospector Pat Ives. Mining here was discontinued for many years until resumed by Western Mining Company (WMC) Limited in 1981, when gold production from St Ives began. Since then St Ives has produced 86.1 Mt of ore at an average grade of 3.3 g/t yielding 9.2 Moz from 40 open pits and 16 underground mining operations. Gold Fields Limited acquired the St Ives gold mining operations in Western Australia from WMC Limited in December 2001.


View enlarged graphic [file size - 418kb]

View enlarged graphic [file size - 418kb]

Key Features

  Independent Audit   Figures reported in this declaration were as reviewed and approved by independent, external consultants as at 30 June 2009
  Prepared by   Gold Fields Limited
  Effective date   30 June 2009
  Source of Information   This Technical Statement is a summary of the internally sourced document entitled F2010 St Ives Competent Persons Report
  Personal Inspection   Personal inspection is conducted by the Competent Persons as listed, who are full time employees of Gold Fields Limited
  General Location   The St Ives operations extend from 5 to 25 km south-southwest of the town of Kambalda in Western Australia, approximately 630 km east of Perth at latitude 31° 12` S and longitude 121° 40` E. The nearest major settlement is the town of Kalgoorlie situated 80 km to the north. Well established power, access roads and supporting infrastructure exist in the area
  Licence Status and Holdings   St Ives controls exploration and mineral rights over a total area of 92,643 ha(total of granted tenements) and has security of tenure for all current exploration and mining leases that contribute to future Mineral Reserves
  Operational Infrastructure   St Ives currently operates three underground mines accessed via declines and several open pits. Centralised administrative, engineering & Mill/CIP processing plant with a supplementary Heap Leach processing plant
  Climate   No extreme climatic conditions are experienced that may affect mining operations
  Deposit Type   Archaean Orogenic Greenstone gold hosted in a number of different styles of mineralisation
  Life of Mine (LoM)   It is estimated that the current Mineral Reserve will be depleted in 2014
  Environmental   The mine maintained AS4801:2000 Occupational Health and Safety Management System certification and ISO14001:2004, (Environmental Management System) certification. Post year end the mine was awarded full ICMI Cyanide Code compliance
  Regulatory Codes   Gold Fields reports its Mineral Resources and Mineral Reserves in accordance with the South African Code for The Reporting of Exploration Results, Mineral Resources and Mineral Reserves (2007 SAMREC Code), and other relevant international codes such as SEC Industry Guide 7, JORC Code and NI 43 – 101. The Mineral Resources and Mineral Reserves are underpinned by a sufficient Mineral Resource Management process and protocol to ensure adequate corporate governance in respect of the intent of the Sarbanes-Oxley Act

Gold Fields has stated that: “If we cannot mine safely, we will not mine”. This principle is embedded at St Ives.

Operating Statistics

  Year ended June Units   F2009   F2008   F2007   F2006   F2005  
  Open pit mining                        
  – Waste mined ’000 BCM   9,921   11,807   9,892   6,764   9,352  
  – Ore mined ’000 tons   5,799   5,143   3,928   4,487   3,738  
  – Head grade g/t   1.5   1.7   2.2   1.9   1.8  
  – Strip ratio waste:ore   4.3   5.8   6.8   4.4   6.3  
  Underground mining                        
  – Ore mined ’000 tons   1,222   901   1,336   1,771   2,134  
  – Head grade g/t   5.1   5.2   5.3   4.6   5.5  
  Processing                        
  – Milled ’000 tons   4,821   4,647   4,669   4,567   4,052  
  – Heap leach ’000 tons   2,441   2,586   2,090   2,123   2,280  
  Total ’000 tons   7,262   7,233   6,759   6,690   6,332  
  Yield                        
  – Milled g/t   2.5   2.5   3.3   3.1   3.7  
  – Heap leach g/t   0.5   0.6   0.9   0.5   0.6  
  Combined g/t   1.8   1.8   2.2   2.3   2.6  
  Gold produced                        
  – Milled kg   12,187   11,552   14,177   14,404   15,707  
  – Heap leach kg   1,135   1,440   969   1,036   1,286  
  Total kg   13,322   12,992   15,146   15,440   16,393  
  Total ’000 tons   428   418   487   496   527  
  Total cash costs A$/oz   805   649   540   453   447  
    US$/oz   596   582   424   339   336  
  NCE US$/oz   757   836   579   459   553  
    A$m   1,023   932   738      
  Capital expenditure A$m   92,9   120,3   96,6      
  – Life of Mine years   4   4   4   4   4  
  Mineral Reserves million tons   30.1   25.9   33.0   27.4   30.3  
  Mineral Reserves head grade g/t   2.4   2.3   2.4   2.5   2.6  

Rounding off of figures presented in this report may result in minor computational discrepancies, where this occurs it is not deemed significant.

Geological Setting and Mineralisation

St Ives is situated in the Norseman-Wiluna Greenstone Belt, which is part of the Yilgarn Craton, a 2.6 Ga granite-greenstone terrane in Western Australia. In comparison to other greenstone belts in the Yilgarn Craton, the Norseman-Wiluna Belt is highly mineralised, particularly in gold and nickel. The rock-types in the belt comprise abundant tholeiitic and komatiitic volcanic rocks, chert, sulphidic and albitic sedimentary rocks, and a chain of discrete felsic volcanic centres.

The gross structure is markedly linear with north-northwest trending strike-slip faults and other tectonic lineaments traceable for hundreds of kilometres, which disrupt the greenstone into fault-bounded domains. The generalised stratigraphic sequence comprises three mafic-ultramafic units, two felsic volcanic units, and an uppermost epiclastic sequence.

There has been a complex and long-lasting history of structural deformation incorporating up to 7 significant stages (D0-D7) during and after regional metamorphism. The gold mineralising episodes are interpreted to have occurred during thrusting and faulting associated with the D2-D3 structural events.

Metamorphism has affected all rock-types and ranges from low temperature prehnitepumpellyite facies to high temperature-pressure amphibolite and granulite facies. Flexures and irregularities in many local and regional shear zones are interpreted to be the major control on location of the majority of economic gold deposits in the belt.

Much of the Yilgarn Craton is deeply weathered and partially covered by Tertiary and Quaternary regolith. Pre-Tertiary lateritic horizons are variably exposed, eroded or buried by later deposits that have in turn been lateritised.

Local geology

St Ives lies within the Kambalda Domain, a subset of the Norseman-Wiluna Belt. The Kambalda Domain is bound by the northnorthwest trending Boulder-Lefroy Fault (BLF) and Zuleika Shear. The region has undergone four compressional events pre-dated by early extension and has been metamorphosed to upper greenschist or lower amphibolite facies.

The main structural feature of the St Ives area is the gently south plunging Kambalda Anticline, which extends 35 km from the south end of the Kambalda Dome to the Junction Mine. The majority of known gold deposits are proximal to the trace of the anticlinal axis. A major second order structure known as the Playa Shear splays off the BLF Shear Zone and can be traced through the St Ives field for a distance in excess of 10 km. Most of the St Ives orebodies mined to date are associated with third order splays off the Playa Shear – notable exceptions being Argo and Santa Ana which are situated on the western limb of the anticline. Mineralisation typically occurs where these structures intersect favourable rock units, with chemical or rheological contrasts combining with structural flexures to form the most important local controls to mineralisation. The interaction between structures and rock-types has produced a large number of individual deposits with at least 80 having been mined in the St Ives area.

The stratigraphic succession in the Kambalda Domain comprises Kalgoorlie Group volcanic rocks and the Black Flag Group felsic volcanic and sedimentary rocks overlain by the posttectonic Merougil Beds unit.

The most common host rocks of gold mineralisation are dolerites such as the Defiance, Condenser and Junction Dolerites. Granophyric dolerite and Kapai Slate tend to host the highest grade mineralisation. The Paringa Basalt and Kambalda Komatiite host deposits in discrete shear structures that are moderate in both tonnage and grade. Low to moderate grade, high tonnage mineralisation is commonly developed in porphyries, which are found in almost all deposits.

The Kambalda Domain to the north is structurally complex. Multiple phases of deformation occurred during and after regional metamorphism. The domain is crossed by a network of variably striking and dipping first, second, third and fourth-order shears, faults and thrusts that control the location of the gold mineralisation.

Hydrothermal alteration and associated gold mineralisation was synchronous with deformation on a network of shear zones. Alteration is concentrated in 10 cm to 300 m wide halos around shear zones. Gold is commonly associated with pyrite or granular pyrrhotite.

Schematic of gold mineralisation occurrences
Schematic of gold mineralisation occurrences

There are several styles of gold mineralisation at St Ives. The individual deposits may contain more than one of these styles:

  • Lode mineralisation: Lode mineralisation typically consists of a 0.5 cm to 20 m wide mesothermal vein complexes ± hydraulic breccias, ± mylonites;
  • Supergene: Broad zones of flat lying gold mineralisation in weathered Archaean and overlying Tertiary rocks; and
  • Subordinate Tertiary palaeoplacer mineralisation.
Exploration drilling
Exploration drilling

Exploration and drilling

The St Ives exploration strategy incorporates the integration of geological information and knowledge of ore forming systems to identify targets with the greatest potential for conversion from endowment, thus maintaining a high value project pipeline.

This strategy includes:

  • Greenfields – enhance the capacity and data consolidation to identify additional targets based on new knowledge and application of current Research & Development initiatives;
  • Continued support, application and integration of company/industry funded research projects aimed at understanding the structural, geochemical and ore mineralizing fluid pathways applicable to the St Ives gold camp;
  • Convert and integrate existing knowledge and research into 3 dimensional information data sets to identify additional target areas internally and externally to current lease areas;
  • Convert existing knowledge and expand the future potential of the Athena complex environs;
  • Increased targeting based on understanding of the structural and macro boundary modelling of ore shoot development at various mine sites; and
  • Aggressive and continued drill out of identified targets across the spectrum of exploration projects.
Visible gold within quartz vein   Diamond drilling on Lake Lefroy
Visible gold within quartz vein   Diamond drilling on Lake Lefroy

View enlarged graphic
Visible gold within quartz vein
Regional geology map

Mining

Gold mineralisation at St Ives is mined via both open pit and underground methods to depths generally not exceeding 500m below surface.

As many of the operations involve mining deposits on or under Lake Lefroy (a shallow salt lake), extraction requires construction of berms and other earthworks to provide access, short-term stockpile areas and to prevent water intrusion.

Mining methods

Open pit mining by conventional drill and blast/truck and shovel is employed at all open pits. Grade control is generally by inclined RC drilling. Open pit projects may include 10 – 40 m of unconsolidated sedimentary overburden which does not require drill and blast, but requires hard rock to be imported for sheeting to provide equipment access during mining, and/or dewatering of the sedimentary overburden prior to mining.

Load-and-haul is by 140t dump trucks and 150 – 250t excavators in backhoe and/or face shovel configuration. Mining benches vary from 5 – 10m which are excavated in 5 passes (flitches) of about 2.5m.

Gold mineralisation is mined selectively to cut-offs and segregated into grade ranges as required to balance the ore production and processing capacities on site and maximise cash flow from operations.

Underground mines at St Ives are commonly extensions of open pit mines. Underground operations are characterised by common features which allow a high level of standardisation in operating strategy, mine design, stoping methods, mining equipment and utilisation. Mines are accessed via declines, with additional development of raises for return airways and ladder-ways as second means of egress. Ore drives are developed to access the ore and future stoping production areas.

Underground mining at St Ives is predominantly mechanised and is conducted by long hole open stoping (LHOS), with subordinate cut-and-fill and room-and-pillar for the shallower dipping orebodies. The use of paste fill in conjunction with LHOS is applied where mandated by geotechnical factors. Development and stoping utilises electric-hydraulic drilling jumbos and rubber-tyred diesel-powered LHDs and trucks are used for load and haul operations.

Ore from both open pit and underground operations is transported with road trains from individual mining operations to the St Ives’ processing facilities.

Leviathan open pit
Leviathan open pit

Mine planning and scheduling

Mineral Reserve definition processes for open pit and underground operations are essentially similar. Cut-off grades are applied to define potentially economic mining panels based on direct mining and/or processing costs, commodity prices and other parameters. The economic viability of future mining panels is then tested by determining whether the margin above cut-off is sufficient to cover the required capital development costs and provide a return on investment.

Open pit planning entails the input of economic parameters and physical constraints into optimisation software to generate a series of nested pits, from which an optimal shell is selected. Detailed design is then undertaken to confirm the mineability of the optimised shell. The process is iterated until an acceptable level of correlation is achieved between the optimised shell and detailed design.

Underground mining methods are largely determined by the geometry of the mineralised zones and the evaluation may involve review of more than one method. Mine design and scheduling is done utilising sophisticated software.

Mine planning is based on three-dimensional block models of in-situ mineralisation, with allowances made for minimum mining widths, dilution and ore loss appropriate to the mining method being considered.

Infrastructure, waste disposal and ore stockpile management requirements are incorporated into the planning process.

Ore stockpile management at St Ives strives to optimise the metallurgical blend requirements to the Lefroy Mill and the Heap Leach, with regard to material types and grade management, to maximise cash flow from operations.

Datamine model of the Argo Complex
Datamine model of the Argo Complex

Projects

The major mine expansion project at St Ives is the initiation of underground mining at the new Athena deposit. Portal and access development has commenced to provide exploration platforms and detailed mine design coupled with full feasibility studies are in progress.

Ongoing infrastructure development to meet current and future mine extensions together with extending the individual mines through focused extensional exploration and development continue. Other future projects are:

Heap Leach Expansion

The remaining pad capacity of the Heap Leach is 0.4 million tons, or 2 months production at the current throughput rate. Consideration has been given to either the construction of a new pad or the removal of spent (leached) ore from the existing pads. Preliminary site trials indicated that removal of the current spent material and re-usage of the pads will be environmentally sound and economically viable. A strategy of flushing, removing, restacking and leaching will be employed to treat the remainder of the Heap Leach ore supply.

Tailings Storage Facility

A fourth tailings storage facility (TSF 4) may be constructed and commissioned by January 2013 to allow tailings deposition from the Lefroy Mill. TSF 2 has reached its renovation limit and is expected to reach deposition capacity by the end of 2009. It will be replaced as an alternate deposition to TSF 3 with North Orchin pit. Construction of TSF 4 will permit the continual implementation of this strategy beyond the current LoM.

LoM Tailings Deposition

    LoM   Available   Surplus/   Capital   Expenditure  
  Mining Deposition   Capacity   (Shortfall)   Requirement   Period  
  Operation (mt)   (mt)   (%)   (A$M)   (years)  
  St Ives 22.5   36.6   34   23.7*   6  

* Budget estimates including tailings lifts, TSF4 and North Orchin Construction

 

Mineral Processing

St Ives employs two separate beneficiation processes, CIP plant and Heap Leach facility, for the treatment of mined ore and existing stockpiles.

The Lefroy Mill was commissioned in December 2004 and achieved design capacity within seven months. It treats medium to high grade ore through a 4.8 Mtpa variable speed dual direction 13.5 MW SAG mill with wrap around motor. Oversize from the mill (scats) is in closed circuit with a 140 tphr pebble crusher. A gravity circuit recovers the gravity recoverable gold from the milling circuit and the concentrates are treated separately through to bullion form. The mill cyclone overflow product reports to a 5 stage leach circuit consisting of mechanical agitators, reagent addition and oxygen sparging. Leached slurry passes through the 6 stage carousel pump cell adsorption plant and subsequent 5 ton capacity acid wash, elution and electrowinning circuits which produce calcine ready for smelting. Bullion is shipped to the refinery. Tailings are alternately deposited on two tailings facilities which are constructed upstream and are of paddock type.

The Heap Leach process was commissioned during 2000 and is used to at treat lower grade ore at a rate of 2.3 Mtpa.

A three stage crushing circuit, of 900 kW installed comminution power, is currently used in a 24 hour operation to prepare -15 mm ores for agglomeration, stacking and leaching. A mobile oxide screen was recently introduced to the circuit to screen off oxides at 35 mm for direct feed into the agglomeration circuit thereby bypassing the comminution phase. The leach pads have been expanded in three stages of 5.5 Mt each with the third stage nearing full capacity. Alternate rehandling methods are currently under review for sustainable operation. Leaching on the heap is performed in 2 stages with typical solution application of 8-10 litres per m2 per hour. The second stage pregnant leach solution passes through a 6 stage carbon circuit for gold adsorption. Gold is stripped off the carbon, electro won and calcined at the Heap Leach wet plant prior to shipment to the Lefroy Gold room for smelting.

Lefroy CIP processing plant
Lefroy CIP processing plant

Sustainable Development

St Ives strives to achieve and maintain outstanding health and safety performance through the participation of all employees and the application of safe, innovative processes and technologies, within a framework of OHSAS 18001, which is an international occupational health and safety management system standard against which our management systems are assessed and certified.

At St Ives we strive to create a workplace culture of “zero harm” and to assist us in this pursuit for our people, we’ve embarked on a programme of ZIP (Zero Incident Process). ZIP is a process that gives the workplace the genuine opportunity to reach the goal of zero incidents. It is a process that empowers people to be able to take control of their personal safety. ZIP does this by giving them an insight into the way their brain works and how they can use it more effectively to keep themselves safe.

At St Ives the consideration of our activities in a manner which minimises our environmental and stakeholder impacts is fundamental to our operations and the way we do business. The operation is committed to responsible stewardship of natural resources, proactive engagement with all stakeholders and behaving in an environmentally responsible manner. This is demonstrated through our commitment to continuous improvement of the site management systems and operational performance. This is evident through our ISO 14001:2004 certification and compliance with our licence to operate.

  Safety Statistics Units   F2005   F2006   F2007   F2008   F2009  
  Fatalities (No)   0   0   0   0   0  
  Fatality Rate (per mmhrs)   0   0   0   0   0  
  LDIFR (per mmhrs)   2.1   2.1   2   1.8   0.8  

 

Mineral Resources and Mineral Reserves

Mineral Resources

The Mineral Resource statement for St Ives is summarised in the tables below. The following points apply to Mineral Resources presented in this report:

  • Quoted at an appropriate in-situ economic cut-off grade with tonnages and grades based on the inventory block model. They also include estimates of any material below the cut-off grade required to be mined to extract the economic portion of the Mineral Resource;
  • Attributable to St Ives Gold Mine;
  • All references to “tons” should be taken as being in metric units.
  • Surface sources are comprised of stockpiles. St Ives assumes that stockpiles are managed and monitored when mining occurs and are supported by adequate sampling, and are thus classified as Measured Mineral Resources.
  Mineral Resource Classification Tons (Mt)   Grade (g/t)   Gold (‘000 oz)  
June 2009   June 2008   Dec 2006   June 2009   June 2008   Dec 2006   June 2009   June 2008   Dec 2006  
  Open pit and underground                                    
  Measured 2.5   1.2   2.2   4.0   6.3   4.1   322   250   287  
  Indicated 41.3   32.4   42.9   2.7   2.8   2.7   3,544   2,951   3,689  
  Inferred 15.9   8.9   10.5   3.2   4.1   3.6   1,636   1,175   1,210  
  Total open pit and underground 59.7   42.5   55.5   2.9   3.2   2.9   5,503   4,376   5,185  
  Surface stockpiles                                    
  Measured 4.1   4.3   5.8   1.1   1.2   1.3   139   163   235  
  Total surface stockpiles 4.1   4.3   5.8   1.1   1.2   1.3   139   163   235  
  Grand Total 63.8   46.8   61.3   2.8   3.0   2.8   5,643   4,538   5,421  

  Mineral Resource by Source Tons (Mt)   Grade (g/t)   Gold (‘000 oz)  
June 2009   June 2008   Dec 2006   June 2009   June 2008   Dec 2006   June 2009   June 2008   Dec 2006  
  Open pit 40.4   27.8   34.8   1.8   1.9   1.9   2,337   1,699   2,041  
  Underground 19.4   14.7   20.7   5.1   5.7   5.5   3,166   2,677   3,145  
  Stockpiles 4.1   4.3   5.8   1.1   1.2   1.2   139   163   235  
  Total 63.8   46.8   61.3   2.8   3.0   2.8   5,643   4,538   5,421  

Modifying factors

  • The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Mineral Reserves;
  • Unless otherwise stated, all Mineral Resources and Mineral Reserves are quoted as 100% and are not attributable with respect to ownership;
  • All Mineral Reserves are quoted in terms of Run of Mine (RoM) grades and tonnages as delivered to the metallurgical processing facilities and are therefore fully diluted;
  • Mineral Reserve statements include only Measured and Indicated Mineral Resources, modified to produce Mineral Reserves and contained in the LoM plan; and
  • Mineral Resources and Mineral Reserves undergo both internal and external audits either during the year, yearly or bi-annually, and any issues identified are rectified at the earliest opportunity – usually during the current reporting cycle, though it does sometimes occur that more comprehensive work requires more time for adequate completion.
Lefroy CIP processing plant

  Mineral Resource Parameter      
  Mineral Resource Gold Price US$/ oz 1,000  
US$/A$ 1.25  
A$/oz 1,250  
  Cut off for heap leach g/t 0.37 - 0.50  
  Cut off mill feed g/t 0.53 - 3.30  
  Cut off for fresh ore g/t 0.53 - 3.30  
  Cut off for oxcide ore g/t 0.37 - 0.50  
  Cut off for open pit g/t 0.37 - 0.79  
  Cut off for underground g/t 2.10 - 3.30  
  Mineral Reserve Parameter      
  Mineral Resource Gold Price US$/ oz 800  
US$/A$ 1.25  
A$/oz 1000  
  Cut off for heap leach g/t 0.41 - 0.81  
  Cut off for mill feed open pit g/t 0.41 - 0.81  
  Cut off for mill feed u/g g/t 2.2 - 4.90  
  Cut off for fresh ore g/t 0.58 - 4.90  
  Cut off for oxide ore g/t 0.41 - 0.54  
  Stripping ratio waste:ore 3.6  
  Dulution (open pits) % 1 -13  
  Mining recovery (open pits) % 95 - 99  
  Mine Call Factor % 100  
  Plant recovery factor fresh ore % 85 - 95  
  Plant recovery factor oxide ore % 94 - 95  
  Heap Leach Recovery % 57 - 75  
  Processing capacity Mtpa 4.8  
  Heap Leach capacity Mtpa 2.5  
  Pit wall angles degrees 25 - 45  

Grade tonnage curves

Underground

Underground

Open pits

Open pits

 

Mineral Reserves

The Mineral Reserve statement for St Ives is summarised in the tables below and these following points apply:

  • Estimates for St Ives include allowances for all relevant modifying factors;
  • Gold price sensitivities have been derived by assessment of the impact of price changes on individual projects;
  • Attributable to St Ives;
  • Mineral Reserves are reported in terms of tonnages, grades and contained gold delivered for processing; and
  • All references to “tons” should be taken as being in metric units.

Surface sources are comprised of stockpiles. St Ives assumes that stockpiles are managed and monitored when mining occurs and are supported by adequate sampling, and are thus classified as Proved Mineral Reserves.

  Mineral Reserve Classification Tons (Mt)   Grade (g/t)   Gold (‘000 oz)  
June 2009   June 2008   Dec 2006   June 2009   June 2008   Dec 2006   June 2009   June 2008   Dec 2006  
  Open pit and underground                                    
  Proved 1.9   0.8   1.0   4.3   6.7   4.2   260   170   129  
  Probable 24.1   20.8   26.2   2.5   2.3   2.6   1,922   1,547   2,188  
  Total open pit and underground 26.0   21.6   27.2   2.6   2.5   2.7   2,182   1,716   2,317  
  Surface stockpiles                                    
  Probable 4.1   4.3   5.8   1.1   1.2   1.3   139   163   235  
  Total surface stockpiles 4.1   4.3   5.8   1.1   1.2   1.3   139   163   235  
  Grand Total 30.1   25.9   33.0   2.4   2.3   2.4   2,322   1,879   2,553  

Mineral Reserve split by source between CIP Plant and Heap Leach facility

  Source and Feed Tons (Mt)   Grade (g/t)   Gold (‘000 oz)  
June 2009   June 2008   Dec 2006   June 2009   June 2008   Dec 2006   June 2009   June 2008   Dec 2006  
  Open pit                                    
    CIP plant 15.8   11.0   11.1   1.9   2.2   2.6   956   774   918  
    Heap Leach 2.5   6.7   9.3   0.7   0.9   0.9   54   191   273  
  Total open pit 18.3   17.7   20.4   1.7   1.7   1.8   1,010   965   1,191  
  Underground                                    
    CIP plant 7.7   3.9   6.7   4.7   5.9   5.2   1,173   751   1,127  
    Heap Leach                  
  Total underground 7.7   3.9   6.7   4.7   5.9   5.2   1,173   751   1,127  
  Stockpiles                                    
    CIP plant 0.7   0.6   1.7   1.6   2.2   1.8   37   45   100  
    Heap Leach 3.3   3.7   4.1   1.0   1.0   1.0   103   118   135  
  Total stockpiles 4.1   4.3   5.8   1.1   1.2   1.3   139   163   235  
  Grand Total 30.1   25.9   33.0   2.4   2.3   2.4   2,322   1,879   2,553  

 

Mineral Resources and Mineral Reserves Reconciliation year-on-year

Mineral Resource

Factors that affected Mineral Resource reconciliation:

  • Mined depletion for the period was measured by processing feed (tonnes crushed);
  • Discovery is dominated by additions from Athena and Hamlet; and
  • Paylimit changes are dominated by Bellerophon and Sirius.

Change in Mineral Resource F2009 to F2010

Change in Mineral Resource F2009 to F2010

Mineral Reserve

Factors that affected Mineral Reserve reconciliation:

  • Mined depletion for the period was measured by processing feed;
  • Discovery was dominated by Athena, Argo, Hamlet, Cave Rocks and Belleisle;
  • Resource modelling reductions at Belleisle were partly offset by gains at Formidable; and
  • Paylimit impacted on Mineral Reserves at Sirius, Bellerophon, Agamannon, Swiftsure and Revenge.

Change in Mineral Reserve F2009 to F2010

Change in Mineral Reserve F2009 to F2010

 

Mineral Reserve sensitivity

Mineral Reserves are presented on a RoM basis delivered to the metallurgical processing facilities. To illustrate the impact of fluctuations in gold price and exchange rates on the current declaration, St Ives has generated sensitivities with respect to Mineral Reserves. These sensitivities (other than for the base case) are not supported by detailed plans and should only be considered on an indicative basis, specifically as such sensitivities assume 100% selectivity, without any operating cost increases.

Managed Mineral Reserve Sensitivity

Managed Mineral Reserve Sensitivity

Regulatory Codes

SAMREC
This Technical Statement has been prepared in Compliance with the South Africa Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (2007 SAMREC Code).

JSE
This Technical Statement has been prepared in compliance with the listing requirements of the JSE Securities Exchange, South Africa (JSE), specifically Section 12 – Issue 11.

Sarbanes-Oxley Act
The Mineral Resource and Mineral Reserve is underpinned by an adequate Mineral Resource Management process and protocol to ensure adequate corporate governance in respect of the intent of the Sarbanes-Oxley Act.

Environmental
St Ives has an environmental management team who are supported by specialist assistance from the Corporate office in Johannesburg. The systems, procedures, training etc. are at international best practice levels. Gold Fields has produced a Sustainability Report in 2009 and intends reporting annually in accordance with the Global Reporting Initiative.

 

Competent Persons

M Jolly: Manager: Mineral Resources
MSc (Geology), EDP Wits Business School, Pr. Sci. Nat. (Reg. No. 400006/02). Mr Jolly has 28 years experience in the mining industry (6 months at St Ives) and is responsible for the overall correctness, standard and compliance of this declaration.

M Briggs: Exploration Manager
BSc (Hons) in Geology, MAusIMM. Mr Briggs has 11 years experience in the mining industry (7 years at St Ives) and is responsible for surface exploration and resource development drilling and the oversight of resource development geology models.

J. Donaldson, Principal Resource Geologist
BSc. (Hons), MAusIMM, Mr Donaldson has 15 years mining industry experience (12 years at St. Ives), and is responsible for the gold resource estimation processes and models.

C Ferguson: Mine Geology Manager
BSc (Hons) Geology, Mr Ferguson has 12 years experience in the mining industry (5 years at St Ives) and is responsible for the mine geology functions at St Ives.

S Ellery: Resource Evaluation Supt
BSc (Hons), MSc Geology, Grad Dip Applied Finance and Investment (SIA), MAusIMM. Mr Ellery has 19 years experience in the mining industry (16 years at St Ives) and is responsible for some aspects of economic evaluation at St Ives.

 

Key Technical Staff

  Post Incumbent   Qualifications Years Key Responsibilities  
  General Manager Louw Smith   BSc (Hons) Geology; BComm; MSc Mining (Business Economics); The Executive Programme
(Darden Business School)
18 Overall strategic direction, leadership and management  
  Mining Manager
Mining Open Pit
Johan Labuschagne   MSc Mining (Wits); B-Eng Mining (UP)
MDP (Unisa)
22 Full operational management  
  Mining Manager
Mining Underground
Simon Fitzgerald   BE (Mining Engineering) BA (Economics) 11 Full operational management  
  Mineral Resources
Manager: Mineral esources
Malcolm Jolly   MSc (Geology), EDP (Wits) COM Cert. Rock Engineering 28 Exploration and Mine Geology. compilation of CPR  
  Financial
Commercial Manager
Sam Vogel   BComm 22 Financial management, reporting and compliance  
  Human Resources
Manager Employee Relations
Helen Anderson   BSc (OHS), Postgraduate Applied Science 18 Human Resources, Safety and Health, Emergency Services  
  Processing
Manager Metallurgy
Arno Dippenaar   NHD (Extractive metallurgy) 18 Mineral Processing, Metallurgy and Tailings management.  
  Engineering
Manager Engineering
Ted Lambourne   Associate Diploma 13 Engineering, logistics and infrastructure management  
  Mine Planning
Planning Superintendent
Max Sheppard   BEng (Mining) 20 Mineral Reserves, Planning Open Pits and Underground LoM  
  Environment
Manager
Peter Bayliss   BSc Hons. (Applied Biology)
MPhil (Environmental Sciences)
20 Environmental management  

St Ives History at a Glance

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Driefontein History at a Glance

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