(PR NEWSWIRE) Gold Fields Acquires Cerro Corona Project in Peru
JOHANNESBURG, South Africa, Dec. 19 /PRNewswire-FirstCall/ -- Gold Fields
Ltd. (NYSE: GFI; Johannesburg), through its subsidiary, Gold Fields Corona
BVI., has signed a definitive Share Purchase Agreement to acquire 92 per cent
of the voting shares of Sociedad Minera La Cima S.A. from various members of
the Gubbins family. Sociedad Minera La Cima owns the Cerro Corona Project and
other mineral properties in Cajamarca, Peru. Closing of the agreement is
conditional upon the completion of the acquisition of required surface rights,
approval of the EIS and the issue of construction permits.
Based upon a Definitive Feasibility Study completed by GRD Minproc with an
amendment completed in August 2003, it is believed that the project has the
capacity to produce 147,000 ounces of gold and 65 million pounds of copper per
year (280,000 ounces of gold-equivalent), with total operating costs of
$212 per ounce of gold equivalent or $0.48 per pound of copper equivalent
(using a gold price of $360/oz and a copper price of 80c/lb).
The deposit, which lies within a well endowed trend just to the north of
the Yanacocha mine in the Cajamarca district of northern Peru, is well studied
and has robust economics. Previous feasibility studies of the deposit
exploited a larger resource base indicating potential for expansion over the
most recent Definitive Feasibility Study. The remainder of the belt and the
district has seen relatively little modern exploration and, thus, is quite
prospective.
The Cerro Corona deposit is a gold-copper porphyry with reserves, based on
the Definitive Feasibility Study, as presented in the table below.
Cerro Corona Ore reserves
Contained Metal
Classification Ore (1)(2) Cu Au Cu Au
(Mt) (%) (g/t) (kt) (koz)
Proved 50.7 0.60 1.11 306 1809
Probable 14.5 0.62 1.24 91 579
Total 65.2 0.61 1.14 397 2388
Note:
(1) Ore cut-off based on individual block revenue after processing and
administration costs of at least $1.75/t.
(2) Block revenue based on Cu selling price of $0.90/lb and Au selling
price of $275/oz.
Ian Cockerill, President and CEO of Gold Fields Ltd., commented, "This
transaction is in line with our strategy of diversifying our geographical,
technical and political risk by acquiring and developing long-life, world
class assets in all of the major gold provinces of the world. This
acquisition will give us our first operational exposure in South America, a
base from which we intend to grow in the region."
Gold Fields is the world's largest unhedged gold company, with annual
attributable gold production of 4.33 million ounces and attributable Mineral
Resources of 196 million ounces and Mineral Reserves of 84 million ounces. It
has operations in South Africa, Australia and Ghana (West Africa) and gold and
platinum group metals exploration projects throughout the world. The
company's primary listing is on the Johannesburg Securities Exchange in South
Africa (GFI) with secondary listings on the London, Euronext, Paris, Brussels,
and Swiss exchanges. The company's American Depositary shares are listed on
the New York Stock Exchange, also under the symbol GFI.
SOURCE Gold Fields Ltd.
-0- 12/19/2003
/CONTACT: South Africa, Neriina Bodasing, +27-11-644-2630, or fax,
+27-11-484-0639, or North America, Cheryl A. Martin, +1-303-796-8683, or fax,
+1-303-796-8293, both of Gold Fields Ltd./
(GFI)
CO: Gold Fields Ltd.; Gold Fields Corona BVI.; Sociedad Minera La Cima S.A.;
GRD Minproc
ST: England, Peru, South Africa
IN: MNG
SU: TNM
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