Near Mine Exploration Maintaining the Base Load Justin Osborne - - PowerPoint PPT Presentation

Near Mine Exploration – Maintaining the Base Load Diggers and Dealers

Kalgoorlie, Western Australia 2nd August 2011

Justin Osborne

General Manager Near Mine Exploration – Gold Fields

Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. Such forward looking statements involve known and unknown risks, uncertainties and

• ther important factors that could cause the actual results, performance or achievements
• f the company to be materially different from the future results, performance or

achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa, Ghana, Australia, Peru and elsewhere ; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability terms and deployment of capital or credit, changes in government regulations, particularly environmental regulations; and new regulation affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of this document. The company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.

Forward Looking Statements

A Growth Story

Gold Fields

Building a global company

3 South Africa

KDC Beatrix

Mali

Yanfolila

South Deep

Chucapaca

Finland

APP

Philippines

FSE

Peru

Cerro Corona 2001

Australia

Agnew St Ives

Ghana

Tarkwa Damang

Gold Fields

A deep value opportunity

4

What Gold Fields Offers …. 77 million ounces of reserves Quality Reserve 3.6 million ounces annualised Solid Production Base US$154 million1 (Q1 2011) Robust Free Cash Flow

Targeting at least 5moz by 20152 Strong Growth Pipeline

Net debt only 0.3 of EBITDA3 Strong Balance Sheet If we cannot mine safely, we will not mine Commitment to Safety Full exposure to gold price Unhedged

1. Cash flow before financing activities and dividend payments 2. In production or development 3. Calendar 2010

Free Cash Flow Our Value Proposition

Unhedged

Grow cash flow margin per ounce Grow ounces per share Sustainability Secure Our Future Growing Gold Fields Optimise Our Assets

5

Targeting 5 million ounces by 2015*

* In production or development

6

Growth Portfolio

Strong pipeline in support of growth strategy

Cerro Corona

South Deep Chucapaca

Far Southeast

Arctic Platinum Yanfolila Woodjam Talas Exploration projects in 13 Countries

Exploration

Scoping Pre-feasibility Feasibility Construction Production

Athena (St Ives)

Hamlet (St Ives) Cerro Corona Oxides

Damang Super Pit

Cerro Corona Resource Conversion Project Argo-Athena Camp (St Ives) Agnew Life Extension, Tarkwa TOTOS Regional Exploration at St Ives, Agnew, Damang and Cerro Corona

Greenfields Projects Near Mine Projects Track record of delivery Maintaining the Base Load Growing Gold Fields

Exploration underpins the growth strategy

Exploration and Growth

Near Mine Activities Focus on Prolonging our Assets

7

Far South East Athena - Hamlet Greater Damang

Growth Projects – Our Future

Chucapaca – Au-Ag-Cu - Peru

• Canahuire initial resource of 5.6 Moz eq
• Scoping study results positive
• Feasibility study fast-tracked
• 100,000m drilling for FS

Arctic Platinum – PGE-Au-Cu-Ni - Finland

• 12Moz 2PGE+Au Resource
• Platsol Pre-Feasibility ongoing
• Aim to start Feasibility study

Yanfolila - Gold - Mali

• Significant land package - 180 x 60km
• Drill intensive project
• Scoping study Q3 2011

A Diversified Advanced Portfolio A Diversified A

5000m in the Andes Sub-Saharan Mali Arctic Finland

Growth Projects - Far Southeast

9

Drilling a world-class deposit

Well established mining district

Gold and Copper porphyry

• Exceptional grades and scale
• Significant exploration upside
• Potential Giant deposit

Established infrastructure

• Tarred access roads
• Existing power lines and substations
• Proximity to port facilities
• Established camp, and facilities
• Local landing strip
• Tailings facilities with capacity

Established workforce

• Local and supportive
• Based on site
• Established mining culture

Existing mineral tenure

Growth Projects - Far Southeast

A massive mineral system – 8 Drill Rigs working Underground

10

Exceptional grades – mineralisation open in every direction

100 m

• 200

m

FSE Au-Cu Porphyry

Historic Production

Victoria 18Mt @ 7.71g/t Au Enargite 40Mt @ 3.05g/t Au, 2.25% Cu

500m 1,600m

?

Some historic drill intersections: 691m at 2.5g/t Au, 0.9% Cu 907m at 1.5g/t Au, 0.5% Cu 613m at 0.8g/t Au, 0.8% Cu 460m at 3.2g/t Au, 1.0% Cu Drilling level Enargite

• Option signed Sept 2010
• Proof of Concept Drilling
• Initial 80000m planned
• Holes upto 2000m long
• Drilling to determine:
• Geology
• Grade confirmation
• Scale

After Hedenquist et al. 2002

St Ives Mine – a Great Gold Camp

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St Ives District

• One of Australia’s premier gold camps
• 10.8 Moz produced to June 2011
• 5.8 Moz Resource Dec 2010
• Multi-million ounce exploration potential

Athena-Hamlet

• Greenfields discovery in 2006 - 2007
• Combined reserve of 1.1 Moz Dec 2010
• Reserve additions of 525 koz H2 2010
• Established an UG baseload supporting St

Ives longer term future

• Hamlet

St Ives Gold Mine

A 20 Million Ounce Camp*

*Historic production plus Resource plus exploration potential endowment

Athena Underground

Development to Production

• Capital Project Completed
• Ore drives developed and full

production stoping commenced

• Ore body consistent with expectation

Reserve Growth

• Dec 2010: 2.15Mt @ 6.3g/t, 437Koz
• Increase of 104koz - June to Dec ‘10
• Considerable exploration and

extensional potential remains

Athena Underground

R

• North end

9143 Jupiter OD

South end

$100M Project – Delivered on time and on budget

Underground drilling

St Ives Gold Mine

Reserve price Dec 2010 = A$1225; Resource price Dec 2010 = A$1350

Hamlet Underground

Resource Development

• Focused Resource conversion H2 2010
• Approx 25,000m drilled to convert resources
• FS completed and construction commenced

Reserve Growth

• Dec 2010 Reserve: 4.2Mt @ 4.89g/t, 659Koz
• Increase of 423koz from June 2010
• Open down plunge potential
• Synergies with Argo-Athena have resulted in

formation of a single mining centre

Inferred to Development in 6 Months

June 2010 Reserve December 2010 Reserve

St Ives Gold Mine

Reserve price Dec 2010 = A$1225; Resource price Dec 2010 = A$1350

Base load underground for a 10 year mine life

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St Ives Gold Mine

Hamlet Underground

Project Progress

• Project commenced Dec 2010
• 1000m development to date
• Fresh Air Rise Complete
• Interim primary ventilation planned for

commissioning end of July

• Finalising power and dewatering strategy
• Primary Vent rise civil commenced

Decline Design Main access moved to south Primary Vent Rise in construction

St Ives Gold Mine

Defined endowment >3.5Moz – with upside potential

The Argo-Athena-Hamlet Corridor

15

Resource figures as of December 2010 ** Total Historic Production to June 2011 Reserve price Dec 2010 = A$1225; Resource price Dec 2010 = A$1350

Pollux Hero Zeus Dido Yorick Macbeth West East A’ A

F2010 Drill Targets

Undrilled Potential

Argo 1.3 Moz produced** 398Koz Resource Athena 777Koz Resource Hamlet 955koz Resource* Apollo 110 koz produced Underground drillholes testing for repeats

The Greater Damang Project

Tarkwa and Damang

• Largest gold producer in Ghana
• Minority acquisition of IAMGold’s 18.9% stake

approved in the June 2011 quarter

• US$667M for:
• Additional 181koz annual production
• $540/oz current cash cost and $940/oz NCE
• Additional 2.14Moz Reserve & 3.27Moz Resource

Greater Damang Upside

• Major open pit expansion opportunity
• Combined Huni-Damang-Juno complex
• Targeting a substantial growth profile

Tarkwa Upside

• TOTOS – mine optimisation project

Adding to the production base

A major expansion opportunity in Ghana

16 Bamako

MALI GHANA

Yanfolila Project Accra Tarkwa Gold Mine Damang Gold Mine

1 6 3

1 6 3 1 9 6 Current Strike Length Juno Damang Pit Cut Back Huni

v

Potential Strike Length Potential Depth Nth Sth

A major expansion opportunity in Ghana

The Greater Damang Project

Targeting a 4Moz Damang Reserve

• Conceptual modelling demonstrates a significant size potential
• Grade control model extrapolated to depth and evaluated for mining potential
• Evaluation demonstrated conceptual pit with >2Moz potential
• 25,000m Proof of Concept Drilling completed to test extrapolated continuity
• Pre Feasibility Study in progress targeting a major cut-back opportunity
• Mining, Environmental, Processing studies

17

Current Depth

Reserve price Dec 2010 = US$1000; Resource price Dec 2010 = US$1100 Dec 2010 total Damang Gold Mine Reserve = 2.08Moz

Greater Damang Project

Drilling in the Active Pit – A Logistical Challenge

A complex project in all ways

18

D illi i th A ti Pit A L i ti l Ch ll

project in all ways

Greater Damang Project

The Damang Deposit – Cross Section 25710mN

19

Drilling results are not true width. These drill holes are drilled down the steep dipping stratigraphy to define overall continuity of

• mineralisation. Individual flat lodes are intersected and demonstrate higher grade mineralisation consistent with mined ores

Proof of Concept Drilling – Defining Continuity of Mineralisation

Initial conceptual pit shell

Greater Damang Project

Detailed Cross Section 25710mN – High Grade Lodes

Initial concept pit shell

High grade lodes intersected to depth – consistent with mined lodes

Lodes are schematic and for illustrative purposes. Drill intersections represent mineralisation at an approximate 0.6g/t cut-off with maximum 3m internal dilution, and based on geological interpretation

The Greater Damang Project

21 current pit shell drill hole intersection surface topography drill hole trace

N

500m

Huni Damang Juno

current pit shell

N

500m

72m at 0.8 g/t Au 72m at 3.9 g/t Au 180m at 2.4 g/t Au 181m at 0.5g/t Au 351m at 0.8g/t Au 240m at 1.0 g/t Au 349m at 1.1 g/t Au 300m at 1.3 g/t Au 402m at 1.1 g/t Au 168m at 0.6g/t Au 189m at 0.6 g/t Au 122m at 1.7 g/t Au 270m at 1.0 g/t Au 605m at 0.6 g/t Au 425m at 0.7 g/t Au 408m at 0.5 g/t Au 144m at 3.9 g/t Au 355m at 0.8 g/t Au 351m at 1.2 g/t Au

Continuity of the Damang Mineralised System

The Future of Damang

Pre Feasibility Study commenced May 2011

• 45,000m drilling to an 80 x 40m spacing
• To approx 350m below current pit
• 14,000m geotechnical drilling
• Pre Feasibility studies ongoing
• Targeting completion by Q1 2012
• Targeting a total Damang Reserve of 4Moz

Growing Gold Fields - Securing Our Future – Optimising Assets

The Greater Damang Project

The Future of Damang

• Growth portfolio developing rapidly
• Global diversification accelerating
• Growing free cash flow margin per ounce
• Growing ounces per share
• A leader in sustainability

A deep value opportunity

Conclusions

Towards being the global leader in sustainable gold mining

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A DEEP VALUE OPPORTUNITY

Investor Relations

Zakira Amra Senior Vice President Head of Investor Relations (office) +27 11 562 9775 (mobile) +27 79 694 0267 zakira.amra@goldfields.co.za Nikki Catrakilis-Wagner Investor Relations Manager (office) +27 11 562 9706 (mobile) +27 83 309 6720 nikki.catrakilis-wagner@ goldfields.co.za