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SALIENT FEATURES
World-class ore body with long-life Mineral Resources at 71.9 Moz
(excluding Tailing Storage Facility ounces).
Mineral Reserves at 20.2 Moz.
Significant enhancement in resource classification.
Focus on safe steady state production driving quality volume.
Accelerate extraction of higher grade Mineral Reserves to bring value forward.
KDC-West below 50 level trackless decline feasibility study approved.
KDC-East 4 Shaft 46 level accepted against 55 decline project option.
Long-life franchise asset anchoring gold production to 2040 (30 years).
2010
Kloof-Driefontein Complex (KDC)Technical Short Form Report
31 December
The formation of the Kloof-Driefontein Complex (KDC) was to create
an environment of uniformity, alignment and cohesiveness that will
enhance the singular identity that will underpin the new consolidated
operation. The overall strategy of the amalgamation of the two mines
was to improve operational and financial efficiencies in line with Gold
Fields’ long-term stated vision, “To be the global leader in sustainable
gold mining”, which encompasses safety and human capital as well
as the environmental and social licence to operate.
Gold Fields Limited comprises a 100% interest in GFI Mining South
Africa (Pty) Limited (GFIMSA), which holds a 100% interest in KDC.
The mine is situated between 60 and 80 kilometres west of
Johannesburg near the towns of Westonaria and Carletonville in the
Gauteng Province of South Africa. The KDC Gold Mine is a large,
well-established shallow to ultra-deep level gold mine with workings
that are accessed through 13 shaft systems (five business units
– BUs) that mine various gold-bearing reefs from open ground and
pillars that occur at depths between 600 and 3,347 metres below
surface. The shaft systems include 10 sub-vertical shafts and two
tertiary shafts. Ore extracted from the gold bearing reefs is processed
at four metallurgical plants.
During the past 18 months KDC produced 1.9 Moz of gold from a
combination of underground mining and processing of surface
waste rock dump material. KDC total employees costed for the
period was 31,086 including contractors. The area mined averaged
some 74,503 m2 per month, underground ore processed at 453 kt
per month and surface material treated 429 kt per month. Total gold
production averaged some 3,287 kg per month at an average yield
grade of 3.8 g/t. Significant increases in power, consumable and
labour costs have limited the benefit of an increased gold price with
the effect that pay limits show only nominal reductions year-on-year.
This Technical Short Form Report reflects the latest Life of Mine plan,
coupled with an updated Mineral Resource and Mineral Reserve
statement, as at 31 December 2010. The geological and evaluation
models have been updated to reflect the latest available data. These
models are coupled with an integrated and holistic mine design and
schedule that is based on current performance levels and attempts
to take cognisance of the inherent risks associated with deep level
mining.
All Mineral Resource and Mineral Reserve figures reported are
managed unless otherwise stated and Mineral Resources are
inclusive of Mineral Reserves.
Kloof-Driefontein ComplexGold Fields’ objective of introducing a new business blueprint, together with an appropriate organisational structure, was to support sustainable gold output at a targeted NCE margin. As a first step in the review of the operations in the South Africa region, a Business Process Re-engineering (BPR) programme has been implemented at Driefontein and Kloof, where the senior management structures have been merged into a single entity with the objective to improve operational and financial efficiencies and ensure long-term sustainability.
The details of the new Kloof-Driefontein Complex (KDC) restructuring include:
� Kloof and Driefontein shafts and plants have been clustered into six business units (BU) each with its own Senior Manager responsible for safe production as well as ensuring an appropriate cost and manpower base for each operating unit. This will reduce the layers of management and increase the span of control. The new business units are:
� � BU 1 – Driefontein 1 and 5 shafts� � BU 2 – Driefontein 2 and 4 shafts KDC-West� � BU 3 – Driefontein 6, 7, 8 and 10 shafts� � BU 4 – Kloof 3 and 4 shafts� � BU 5 – Kloof Main, 7, 8 and 10 shafts, KDC-East� � BU 6 – Reef and waste plants.
� One of the key benefits of the new structure is that accountability, responsibility and line of sight is devolved to a lower level.
� The business units will be supported by site operations that provide common services across the units.
In addition, a strategic management office has been established and will identify and implement cost reductions and revenue enhancing opportunities. The aim is to reduce the rate of cost increases and improve the NCE margin.
}}
INTRODUCTION
South Africa •
KDC-West
KDC-East
Johannesburg •
• Witwatersrand Basin
Carletonville •
•Parys
Welkom •
1Kloof-Driefontein Complex (KDC) – Technical Short Form Report
KEY ASPECTS
Gold Fields has stated that: “If we cannot mine safely, we will not mine.”This principle is embedded at KDC.
Independent auditFigures reported in this declaration are as reviewed by independent external consultants as at
31 December 2010. Gold Fields has been informed that the audit identified no material shortcomings
in any process by which the KDC Mineral Resources and Mineral Reserves were evaluated
Prepared by Gold Fields Limited in compliance with the SAMREC Code (2007 edition)
Effective date 31 December 2010
Source of information This Technical Statement is a summary of the detailed internally sourced documents entitled “December 2010 Kloof Competent Persons report” and “December 2010 Driefontein Competent Persons Report”
Personal inspection Personal inspection takes place by the Competent Persons as listed, who are full-time employees of
Gold Fields Limited
General location
KDC is situated 60 to 80 km west of Johannesburg at latitude 26º 24’ S and longitude 27º 30’ E
between Westonaria and Carletonville in the Gauteng Province of South Africa. The site is accessed via
the N12 highway between Johannesburg and Potchefstroom with a well developed network of tarred
roads that surrounds the area
Climate No extreme climatic conditions are experienced that may affect mining operations
Licence status and holdings
KDC is entitled to mine all declared Mineral Resources and Mineral Reserves and has all the necessary
statutory mining rights in place. KDC-East also holds a small prospecting right situated within the mining
right. The mine has a new order mining right in respect of the mining area totalling 28,648 hectares.
GFI Mining South Africa (Pty) Limited (GFIMSA) holds a 100% interest in KDC. Gold Fields Limited holds
a 100% interest in GFIMSA
Operational infrastructure
KDC is a large, well-established shallow to ultra deep level gold mine that is accessed from surface
through a number of shafts to its lowest working levels some 3,347 m below surface. It comprises
11 producing shaft systems and five metallurgical plants
Deposit type
Gold mineralisation occurs within laterally extensive quartz pebble conglomerate horizons called reefs,
which are developed above unconformable surfaces within a depositional system near the basin margin.
KDC exploits three primary reefs namely the Carbon Leader Reef (CL), Ventersdorp Contact Reef (VCR)
and Middelvlei Reef (MR) with the CL representing the majority of the current Mineral Reserves in the
west of the mining right and the VCR representing the majority of the current Mineral Reserves in the
east of the mining right
Life of Mine (LoM) It is estimated that the current Mineral Reserves will be depleted in 2040
Environmental
KDC systems, procedures, training etc. are at international best practice levels. ISO 14001:2004
certification has been obtained for this operation. The Safety Management System was certified by
Bereau Veritas in F2009 for OHSAS 18001. The mine has full compliance status for the International
Cyanide Management Code with certification awarded in September 2009
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
2 Kloof-Driefontein Complex (KDC) – Technical Short Form Report
GEOLOGICAL SETTING AND MINERALISATION KDC is located in the West Wits Line that forms part of the
Far West Rand Goldfields situated on the northwestern rim of
the Witwatersrand Basin. The Witwatersrand Basin comprises
a 6,000 metre thick sequence called the Witwatersrand
Supergroup, which consists of predominantly detrital sedimentary
rocks interspersed sporadically with auriferous and uraniferous
quartz pebble conglomerates, termed reefs, especially in the
upper parts of the succession classified as the Central Group.
The mining area is underlain by outliers of Karoo Supergroup
shales and sandstones, followed by Pretoria Group sediments
and the Chuniespoort Group dolomites. The dolomites overlie the
Klipriviersberg Group volcanic rocks, which in turn cap the
Ventersdorp Contact Reef and sediments of the Central Rand
Group that hosts the other gold-bearing reefs.
OPERATING STATISTICS
UnitsDec
2010*June2010
June2009
June2008
Mining
Main development km 23.9 46.8 42.9 61.1
Main on-reef development km 4.0 7.5 7.8 10.8
Main on-reef development value cm.g/t 2,082 2,030 1,304 1,462
Area mined ’000 m2 442 904 958 1,098
Tonnes milled (underground and surface) ’000 tonnes 5,152 10,383 9,536 9,934
Source of ore
– Underground ’000 tonnes 2,720 5,298 5,535 6,214
– Yield g/t 6.6 6.7 7.8 8.2
– Stockpile (surface) ’000 tonnes 2,477 5,085 4,001 3,720
– Yield g/t 0.7 0.8 0.7 0.8
Average yield g/t 3.8 3.8 4.8 5.5
Gold produced (underground and surface) kg 19,719 39,700 45,812 54,398
Gold production koz 634 1,277 1,473 1,749
Operating costs
– Underground R/ton 1,319 1,301 1,135 860
– Surface R/ton 92 72 83 74
Gold sold kg 19,719 39,700 43,812 54,398
Cash cost US$/oz 832 726 474 420
R/kg 190,973 176,819 137,298 98,230
Capital expenditure Rm 1,266 2,244 1,993 1,914
Notional cash expenditure (NCE) R/kg 257,391 239,305 187,883 138,546
General
Number of employees (TEC) No 31,086 32,772 31,778 33,136
Expected Life of Mine years 30 32 31 33
Mineral Reserves Mt 96.4 116.6 128.4 131,4
Grade of Mineral Reserves g/t 6.5 7.1 7.0 7.3
* Six-month period from July 2010 to December 2010. Rounding off of figures presented in this report may result in minor computational discrepancies. Where this occurs it is not deemed significant.
Witwatersrand Basin depositional model
3Kloof-Driefontein Complex (KDC) – Technical Short Form Report
Panvlakte Horst blocks, which are superimposed over broad
folding associated with the southeast plunging
West Rand Syncline. The northern limb of the syncline dips in
a south-southwesterly direction and the southern limb in an
east-southeasterly direction.
In the area east of the Bank Break (between the West Rand and
Bank Faults), the VCR and the underlying Central Rand Group
strata of the Witwatersrand Supergroup have a general north-
northeast strike and dip to the east-southeast at between 25° and
45°. Major geological structures within the domain comprise
normal faults sub-parallel to the West Rand Fault. Sympathetic to
it are north-northeast trending dykes with little or no apparent
offset of the stratigraphic units and younger, easterly trending
sinistral wrench faults, some of which host dyke material. Several
large dykes also contribute to dividing the West Wits Line into a
series of water compartments. Local bedding plane faulting along
the VCR has resulted in the elimination and local duplication of the
VCR horizon.
The vertical separation between the VCR and MR increases from
north to southwest of the Bank Break (VCR overlies progressively
older strata southwards) and from east to s of the Bank Break
(VCR overlies progressively older strata westwards). This is a
result of the relative angle of the VCR unconformity surface to the
regional strike and dip of the underlying Central Rand Group
strata. This unconformity feature, in conjunction with the structural
effects of the Bank Fault (Bank Anticline), results in the elimination
of the CL and MR in a V-shaped area closing to the south just
west of the Bank Fault (D5 Shaft area).
West of the Bank Break the VCR and
the underlying Central Rand Group
strata of the Witwatersrand
Supergroup have a general east-west
strike and dip to the south at between
20° and 25° (VCR 210 to the south-
southeast). Major geological structures
within the domain comprise normal
faults sub-parallel to the Bank Fault.
Sympathetic to it are north-northeast
trending dykes with little or no
apparent offset of the stratigraphic
units and younger, east-northeasterly
trending dextral wrench faults, some
of which host dyke material. The VCR
is most extensively developed just
west of the Bank Fault in the west of
Bank Break domain. The subcrop line
The reefs, which are generally less than 2 metres thick, are widely
considered to represent extensive fluvial fans. Deposition took
place along the interface between a fluvial system that brought
the sediments and heavy minerals from an elevated source-area
and a lacustrine littoral system that reworked the material and
redistributed the finer sediments along the shoreline of an
intracratonic lake or shallow water inland sea. The gold is mainly
of detrital origin, deposited syngenetically with the conglomerates
and interrelated with sedimentary features such as unconformities
and fluvial channels.
Although the gold generally occurs in native form and is usually
associated with pyrite and carbon, most of the gold has been
subsequently modified and remobilised during secondary
hydrothermalism, giving rise to the most favourite depositional
model currently in use, i.e. Modified Palaeoplacer Model. The
model emphasises a control on the occurrence of ore minerals by
placer-forming mechanisms, while accepting some modification
by metamorphism, is the generally accepted model for the origin
of gold and uranium mineralisation of the Witwatersrand Basin.
For several decades now, models using sedimentological
principles were very successfully used to predict gold distribution
on mine properties.
Local geology
The KDC is bound by the West Rand Fault to the east separating
it from the South Deep Gold Mine, and is bisected by the Bank
Fault, a large west dipping fault with a down-throw to the west
resulting in the Bank Break phenomenon. The structure east of
the Bank Break (KDC-East) is dominated by the West Rand and
Seismic section across the West Rand Fault
West Rand Fault
4 Kloof-Driefontein Complex (KDC) – Technical Short Form Report
Schematic diagram of the VCR palaeomorphological model
VCR milky cobble terrace facies
VCR apple green terrace facies
For the 31 December 2010 Mineral Resource and Mineral
Reserve estimate, minor corrective changes were made to the
VCR facies model based on the latest geological information.
Middelvlei Reef
The MR is correlated with the South Reef of the Central Rand
Goldfields. It occurs some 55 metre above the CL over most of
the mining right area, except where eliminated by the VCR erosion
surface, and is made up of a number of well-packed, large quartz
pebble conglomerate bands. In some areas the MR assemblage
of the VCR against the Black Reef and overlying dolomites
trends west-southwest and consequently restricts the area to
the west that is underlain by VCR.
KDC exploits three primary reefs, namely the Ventersdorp
Contact Reef (VCR) located at the top of the Central Rand
Group, the Carbon Leader Reef (CL) near the base of the Group
and the Middelvlei Reef (MR), which stratigraphically occurs
some 50 to 75 metres above the CL. Various secondary reefs
are also being exploited, but only on a limited scale due to
localised payability. These reefs include the Kloof and Libanon
Reefs of the Kimberley Conglomerate Formation and the Erosion
Channel Reef of the Main Conglomerate Formation. This Erosion
Channel that eliminates the CL in a broad west-northwest to
east-southeast zone, sometimes contains a conglomerate which
is mined as a secondary reef. For reporting purposes, the
Erosion Channel Reef is grouped with the CL and is not reported
separately.
In the area east of the Bank Break, the majority of mining takes
place on the VCR, which constitutes 88% of the Mineral
Reserve, the MR 10%, and the Kloof Reefs the remaining 2%.
West of the Bank Break the CL is generally a high grade reef
and represents approximately 81% of the current Mineral
Reserve, the VCR 17% with the remaining 2% comprising mainly
the MR. Surface rock dump material is also processed.
Ventersdorp Contact Reef
In addition to the many economically viable reefs found in the
Central Rand group, the Ventersdorp Contact Reef, found at the
base of the Ventersdorp Supergroup, constitutes a further
significant principle economic reef practically unique to this
goldfield. The Ventersdorp Supergroup lithologies truncate the
Central Rand Group sediments, classifying the auriferous VCR
as part of the Venterspost Formation.
The VCR represents the final phase of sedimentation prior to the
extrusion of the lavas of the Klipriviersberg Group and
unconformably and disconformably overlies the underlying
sediments of the Witwatersrand Supergroup. The VCR is dated
at approximately 2.7 billion years and is an auriferous
palaeo¬placer consisting of several complex, inter-calated gravel
types (facies). Lavas of the Klipriviersberg Group lie conformably
on the gravels (conglomerates) and thus preserved unique
characteristics of the sediments and the geomorphology. The
sediments have been subdivided into five major facies types,
which consist of a complex series of intercalated oligomictic and
polymictic conglomerates of varying thicknesses and differing
average gold grades.
20 cm
4 Shaft Main Shaft
Slope ReefWEST RANDFAULT
VCR FACIES:
Surface
Bimodal Terrace
Milky Cobble Terrace
Apple Green Terrace
Sandy 1Sandy 2
5Kloof-Driefontein Complex (KDC) – Technical Short Form Report
is as much as 6 metres thick with well developed top, middle and
bottom bands, separated from each other by quartzite partings.
The Middelvlei Reef is particularly well developed on the eastern
side of the Bank Break (KDC-East) where it is considered as
a principle reef. West of the Bank Break the MR is less well
developed with only limited areas of potential economic viability,
which are restricted to the proximal facies of a braided-stream
depositional environment.
The MR in general has well defined “pay shoots” which are limited
in extent and therefore difficult to project or explore. The bottom
band is most exclusively the economic horizon of the MR, ranging
from a single pebble lag to a maximum thickness of 80 cm. The
current MR model is based on sedimentology and value/channel
width trends to highlight prospective areas and to constrain the
estimation process. For the 31 December 2010 Mineral Resource
estimate, changes were made to the facies model at various shaft
domains based on the latest geological information.
Carbon Leader Reef
The CL is the principal economic reef on the western side of the
Bank Break (KDC-West) and correlates with the Main Reef of
the Central Rand Goldfields and varies in thickness from a mere
carbon streak to a solid seam of carbon up to 7 mm thick, to a
multiple band medium pebble conglomerate, on average some
200 cm thick. Although the CL is present east of the Bank Break,
it is found as distal equivalents of the former and grades into
scattered grits with less gold mineralisation, generally of
uneconomic concentrations.
Multiple band CL stratigraphy
The CL is the deepest reef and is present all over the mining right
area west of the Bank Break except where eliminated by the
erosive surface at the base of the VCR in the central parts of the
mine and by the Erosion Channel in the north. Four facies of
CL are present; a carbon seam and a single band conglomeratic
facies in the west, a multiple band facies in the central parts and a
single band conglomeratic facies in the east. Geostatistically the
east and west single band facies differ markedly in their average
gold content and channel widths.
The CL has a low angle of unconformity. The footwall consists of
a package of conglomerates, usually referred to as the “Footwall
bands of the CL” (also the “North Leader Zone”) and this zone is
characterised by lenses of conglomerates, separated by yellowish
grey argillaceous quartzite. The basal conglomerate band of this
zone is called the North Leader (NL).
Carbon Leader carbon seam facies
The hangingwall of the CL consists of a siliceous grey quartzite
overlain by the Green Bar, a chloritoid shale occurring over most
of the Witwatersrand Basin.
The multiple band CL facies is defined sedimentologically as a
reef containing more than one conglomerate band separated
by internal quartzite bands. The internal quartzite is similar in
appearance to that forming the hangingwall of the CL. The
channel width of the facies varies from as little as 10 cm to more
than 420 cm and the number of conglomerates is highly variable
because of their lenticular nature. The gold grade of the multiple
band facies is generally lower than that of the single band facies
but, because of its channel width, their gold accumulation (cm.g/t)
is often similar. Carbon seams are also known to occur in these
reefs accompanied by an increase in gold content.
Example of multiple band CL
Carbon seam (2 – 2.5 cm)
20 cm
6 Kloof-Driefontein Complex (KDC) – Technical Short Form Report
Secondary Reefs
The Kloof, Libanon and Erosion Channel Reefs are a relatively minor component of the KDC Mineral Resource. The reefs are channelised
and due to their localised payability, exploration is difficult and often neglected due to the sporadic nature of economic mineralisation.
However, when in reach of exploration platforms from current underground development, exploration programmes are initiated to test for
economic exploitable areas or zones.
At KDC, for the six months reporting period to 31 December 2010, the following was achieved:
Exploration drilling and expenditure
6 months to December 2010 June 2010 June 2009
Operation Metres drilled ZAR millions US$ millions US$ millions US$ millions
Driefontein 5,558 5,646 0,791 1,096 0,605
Kloof 6,603 5,661 0,793 1,767 1,252
Total 12,161 11,307 1,584 2,863 1,867
Exchange rate: US$1:ZAR7.138
Exploration and drilling
The exploration strategy includes the following:
� Reduced uncertainty inherent to the deposit;
� Underground fan drilling;
� Timeous prospect development;
� Proactive geology; and
� Reconnaissance visits to previously mined areas to confirm
structure and facies.
A continuous Mineral Reserve definition programme is in place
and is aligned to facilitate better planning and optimisation, with
appropriate lead time, to ensure robust geological and evaluation
models, that will underpin the resource definition of the VCR,
MR and CL. The programmes will confirm the ore body potential
in all areas of KDC, including secondary minerals such as uranium
and sulphur. Exploration activities are focused on the extension of
existing ore bodies and the identification of new ore bodies, both
at existing sites and at undeveloped sites. Once a potential area
has been discovered, exploration is extended and intensified in
order to enable clearer definition of the ore body and the potential
portions to be mined. Geological techniques are constantly
refined to improve the economic viability of prospecting and
mining activities.
A comprehensive borehole management QA/QC programme
is embedded at KDC and is intended to monitor sampling and
laboratory performance in an effort to control (minimise) the total
possible error in the sampling-splitting-analysis sequence. This is
achieved by monitoring and controlling four essential components
of the sequence:
i) Sample Management and Sample Security;
ii) Laboratory Sample Preparation and Assaying;
iii) Analytical Accuracy and Precision; and
iv) Reporting Accuracy.
Schematic 3D section through KDC-West
D11
Pretoria Group
KDC-WestMining Rights
Malmani Dolomite
CENTRAL RAND GROUP
S∕O VCRWEST RAND
GROUPDD
Erosion Channel
Ventersdorp Lava
D12 D10D13
D8D6
D7D1 D2 D4D3
D9
D5
22 Level
42 Level
Black Reef
S∕O CLand MR
� VCR � MR � CL S/O = Sub-crop
7Kloof-Driefontein Complex (KDC) – Technical Short Form Report
MININGThe KDC operation is engaged in underground and surface rock
dump mining and is a large, established shallow to deep level
gold mine that is accessed from surface via 13 shaft systems
to the current lowest working level some 3,347 metres below
surface. KDC comprises 11 producing shafts that mine varying
quantities from open ground and pillars. The shafts vary
in diameter, depth and hoisting capacities.
A significant challenge facing the KDC operation is seismicity and
to a lesser extent flammable gas. To reduce the impact of
seismicity, KDC practices the closely spaced dip pillar mining
method and has also adopted a revised stope support standard
in all areas with friable hangwall, especially in areas that have the
Westonaria Formation Lava hangingwall.
Early detection methods and increased ventilation of the shafts
are being used to minimise the risk of incidents caused by
flammable gas. Extensive cooling infrastructure is required to
maintain comfortable conditions for workers due to the depth of
the operations.
The rock engineering practices are aimed at reducing risks and
thus improving safety associated with gravity and seismic related
rockfall and rockburst incidents through implementing the
recommendations from the risk assessment department, testing
of high-yield elongate support units and continuous assessment
of the seismic systems.
An application for additional power was made to the supplier of
power in fiscal 2009. This has been granted and KDC-East is now
permitted to utilise power at an increased baseline of 234.4 MW,
rather than 214.4 MW. In addition, in the unlikely event of a total
power outage for a prolonged period, KDC-East has installed and
commissioned an emergency generation plant of 14.4 MW to
allow mine personnel to be evacuated speedily.
Emergency electricity plant
Mining methodsAccess to the various auriferous reefs being mined is provided
through vertical, inclined and declined shaft systems. If additional
depth is required to fully exploit the reef, and it is economically
feasible, then secondary (sub-vertical) or tertiary shafts are sunk
from the underground levels. Horizontal development at various
intervals of a shaft, known as levels, extends access to the horizon
of the reef to be mined. On-reef development then provides specific
mining access.
The predominant mining layout at KDC is breast stoping with
dip pillars, with a minor contribution from scattered mining.
Breast stoping with dip pillars has been selected for the below
infrastructure projects. Mining spans and pillar widths depend on
the location, the reef being mined and the depth of working.
The mining methods employed at KDC vary between shafts and
can be subdivided as follows:
1. KDC-West operation
� Breast mining with dip pillars in the shaft pillar extraction at
D1 Sub-Vertical Shaft;
� Breast mining with dip pillars at D1 Tertiary and D5
Sub-Vertical Shafts;
� Pillar extraction and scattered mining at D2 Shaft;
� Mini-longwall mining, scattered mining, shaft pillar and pillar
extraction at D4 Sub-Vertical Shaft;
� Pillar extraction and scattered mining at D6 Sub-Vertical
Shaft;
� Pillar extraction and scattered mining at D8 Shaft; and
� Reclamation and vamping at D6 Tertiary and D10 Sub-
Vertical Shaft.
2. KDC-East operation
� K1 SV Shaft – remnant pillar extraction and breast mining
with dip pillars;
� K2 SV Shaft – remnant pillar extraction and breast mining
with dip pillars;
� K3 and K7 Shafts – breast mining with dip pillars and
remnant pillar extraction;
� K4 Shaft – breast mining with dip pillars; and
� K8 Shaft – remnant pillar extraction and breast mining with
dip pillars.
KDC is also processing old surface rock dumps containing gold.
The dumps are loaded and screened to smaller fractions and then
processed at D2, D3 and K1 plants.
8 Kloof-Driefontein Complex (KDC) – Technical Short Form Report
Mine planning and scheduling All mine design and scheduling is undertaken using Cadsmine©
computer software in conjunction with the Integrated Resource
and Reserve Information System (IRRIS) proprietary to Gold
Fields. This includes the delineation of mining or stoping areas for
each mining level and section, usually leading from an extension
to the existing mining sequence, and the definition of the
necessary development layouts. The latest update of the
geological structure model is referenced and incorporated into
the mine design.
The geological models are validated in IRRIS, where resource
blocking is also carried out. All blocks are captured according to
the geological models and geozones. The mine design includes
rock engineering pillars comprising bracket pillars along major
geological structures, as well as stability pillars related to the
appropriate mining method. An allowance for minor faulting,
structure and reef loss, based on historical results, is applied.
The mine design is scheduled on a monthly basis for the first
two years of the operational plan, which is extended on an annual
basis for the remaining period of the LoM Plan. The production
parameters necessary for the development of the strategic LoM
plan are captured from the computer models on a shaft basis for
each period. The inclusion of the surface Mineral Resources is
reviewed annually as part of the strategic planning process.
The C2011 operational plan, with respect to remnant pillar mining,
was aligned to the updated Gold Fields Pillar Mining Code of
Practice, which takes cognisance of a stringent safe remnant
extraction practice. The rock engineering risk factors (risk matrix)
associated with remnant extraction were identified as: Energy
Release Rate; Average Pillar Stress; Shape; Width-to-Height
Ratio; and the presence of seismically active geological
structures. Additional pillars and remnants have therefore been
excluded from KDC’s C2011 Mineral Reserves.
Mineral Reserve development will continue to be a key
performance indicator and will be accelerated further in appropriate
areas. The following table indicates the development advanced for
the last eighteen months to Dec 2010. A total of 70.7 kilometres
was developed with 11.5 kilometres driven on-reef.
Development results (for 18 months to Dec 2010):
Category CL MR VCR Kloof
Advanced (m) 25,616 9,527 34,532 1,071
On-reef (m) 4,383 1,773 5,239 100
Sampled (m) 3,879 1,841 4,352 114
Channel Width (cm) 76 83 118 183
Average grade (g/t) 24.3 8.3 22.7 14.1
Average value (cm.g/t) 1,838 690 2,691 2,572
KDC-West: Mine scheduling
Production and hoisting capacities
Business unit
Shaft zone
Operatingshaft
Planned production
(ktpm)*
Hoisting capacity
(ktpm)BU 1 D1 Shaft D1 – 155.0
D1 SV – 185.0
D1 T 51.1 155.0
D5 Shaft D5 – 70.0
D5 SV 87.8 175.0
BU 2 D2 Shaft D2 16.0 185.0
D4 Shaft D4 SV 33.8 180.0
BU 3 D6 Shaft D6 – 118.0
D6 SV 9.7 126.0
D6 T – 65.0
D8 Shaft D8 48.9 96.0
D9 Shaft D9 – 200.0
D10 Shaft D10 SV – 62.0
BU 4 K3 Shaft K3 SV 32.3 131.0
K4 Shaft K4 – 112.0
K4 SV 71.4 106.0
BU 5 K1 (Main) Shaft
K1 – 265.0
K1 SV 32.6 187.0
K2 Shaft K2 SV 18.2 101.0
K7 Shaft K7 – 176.0
K7 SV 28.1 150.0
K8 Shaft K8 24.0 84.0
K10 Shaft K10 – –
*Five-year average SV: Sub-vertical; T: Tertiary
9Kloof-Driefontein Complex (KDC) – Technical Short Form Report
PROJECTSKDC-West 5 Shaft Decline Project
During 2010, the economic viability of the D9 Shaft project at the
KDC-West Mine operation versus a phased mechanised decline
project below D5 Shaft was assessed. The results indicated that
the decline project provides a better return and a full feasibility
study will be conducted in C2011. Phase 1 of the decline option
will take mining down to 54 level (3,600 metres below surface),
whereas the original D9 Shaft project was designed to 57 level
(4,000 metres below surface). Consequently, the D9 Shaft project
has been excluded from the Mineral Reserves in favour of the
decline option.
KDC-East 46 Level Project
The 55 Decline project targeted the economic Sandy 1 VCR
facies present between 45 and 48 levels to the north of the
K4 Shaft complex. The project was recently reviewed and the
option to develop a 46 level from 4 Shaft instead of developing a
decline system, was accepted. The majority of higher grade ore
is concentrated between the existing 45 level and the 46 level
horizons resulting in two-thirds of the project ounces being
accessible via a single level (from the existing shaft system)
instead of a three level decline. The 4 SV shaft 46 level is
positioned some 72 metres below 45 level and comprises the
main ore transfer belt to the shaft as well as dams and pumping
infrastructure. The No. 1 Man winder provides access to a full
station on 46 level that could be used for men, material and
equipment to develop a haulage towards the target area.
KDC-East 46 level project
The GROWTH (Gold Recovery Opportunities from Waste
Treatment Holistically) Project
KDC-East has two proven metallurgical plants in process that
mostly have long operational histories. In addition, a pilot plant
(Growth Project) is being commissioned which aims to increase the
grade of the KDC-East Main Shaft surface rock dump feed to
produce a concentrate for processing. The project’s objective is to
treat the entire Main Shaft surface rock dump to produce pebbles
for milling, industrial aggregate suitable for an appropriate off-take
agreement, backfill for placement in underground operations and a
gold product. This basket of products will result in a positive cash
flow and will facilitate the ultimate rehabilitation of the surface rock
dump site ahead of current LoM schedules. The technical heart of
the project is the ‘Python’ gravity plant, together with an optical ore
sorting machine, as well as a mobile recovery and screening plant
as presently administered by contractors.
‘Python’ gravity concentration plant
10 Kloof-Driefontein Complex (KDC) – Technical Short Form Report
MINERAL PROCESSINGKDC operates five gold processing plants, three at the KDC-West
operation and two at the KDC-East operation. Both operations’
plants uses proven metallurgical with a centralised elution, carbon
treatment and smelting facilities. The benefits of this centralisation
are better recovery rates, giving reduced dissolved gold losses
and operating cost, as well as improved security. Gold bullion
produced is dispatched to the Rand Refinery to further process it
to a saleable quality of 99.9% purity.
Plant capacities
PlantCapacity
(tpm)Efficiency
(% extraction) Material treated
D1 – CIP 240,000 97 Underground ore
D2 – CIP 200,000 92 Surface rock dump
D3 – CIL 115,000 92 Surface rock dump
K1 – CIP 170,000 92 Surface rock dump
K2 – CIP 167,000 98 Underground ore
KDC’s first gold pour took place in 1952 at the original KDC D2
Gold Plant with ore obtained from the now defunct 11 shaft. In
1962 the crusher unit of the plant collapsed down a sinkhole, and
the current D2 Plant was erected in less than 12 months. Currently
D2 Plant is only treating surface waste rock material at 200 kt per
month. It is delivered by rail from rock dumps to the plant feed
bunkers. The plant flow sheet incorporates two SAG mills and a
ball milling circuit, cyanide leaching and a carbon in pulp (CIP)
plant. Loaded carbon is transported to the central Elution Circuit
at 1 Plant.
The D1 Gold Plant was commissioned in 1972 as a three stage
crushing, two stage milling, filtration and zinc precipitation
operation. The plant was initially designed and installed to treat
100 kt of ore per month, but this has been gradually increased
to a monthly throughput of 240 kt. The mineral processing
technology in the plant is based on SAG milling circuit followed by
cyanide leaching. The SAG milling circuit was commissioned in
September 2003 and replaced the conventional crushing and
milling circuit while the filtration and zinc precipitation processes
were replaced by the state of the art carbon in pulp (CIP) plant.
Originally a uranium plant, D3 Gold Plant was converted in 1998
to a surface low-grade waste rock treatment facility. The plant
was constructed using a combination of new as well as existing
equipment on site. This plant has the capacity to treat 115 kt per
month of rock material reclaimed from the waste rock dumps
located on the mine.
The K1 Plant was commissioned in 1968 to treat underground
ore. This plant comprises three stage crushing, utilising open
circuit rod mills for primary milling and closed circuit pebble mills
for secondary milling. After milling, the pulp is thickened and then
processed through air agitated leaching, drum filtration, zinc
precipitation and smelting to doré. In June 2001 an AAC Pump
Cell CIP circuit was installed to replace the less efficient drum
filtration and zinc precipitation. Smelting was also discontinued,
with loaded carbon being transported to the K2 Plant for elution
and thermal regeneration.
The K2 Plant was commissioned in November 1990. This plant
receives underground Run-of-Mine ore (RoM), which is crushed
and delivered to a stacker reclaimer system, where the ore is
stored and blended prior to reclamation and delivery to the mills.
Surface material is also delivered to the stacker pad to utilise
plant capacity. There are two Semi-Autogenous Grinding (SAG)
mills, which are equipped with variable-speed ring motor drives,
and can be operated as fully autogenous units or as semi-
autogenous units by adding steel grinding balls. Milled ore is
thickened ahead of cyanide leaching in air-agitated tanks and
adsorption onto activated carbon in a conventional CIP circuit.
Loaded carbon is eluted in an AARL elution circuit, which was
upgraded in June 2001 and further in October 2003. It now
serves as the central elution facility for Kloof. The upgrade
included the installation of Continuous Electrowinning Sludge
Reactors, which are working very efficiently. Cathode sludge is
filtered and smelted to produce doré. The current operational
capacity of the K2 Plant is 167 ktpm.
D1 Plant, KDC-West
11Kloof-Driefontein Complex (KDC) – Technical Short Form Report
In terms of community involvement, KDC has continued to
support the Living Gold project that results in high quality roses
being exported and others sold within the local market. Living
Gold has created permanent employment to more than
150 people from the local communities. KDC has also recently
built a combined school that has been made available to more
than 1,600 children from the local community.
A bakery was also introduced within the local community and is
currently fully operational, which provides bread to the mine and
surrounding communities and is owned by representatives of the
local community. The bakery has created permanent
employment to more than 20 previously unemployed people.
KDC spent more than R300,000 establishing a garment
manufacturing project supporting more than 15 women. The
project produces amongst others, safety clothing and overalls
that are used at the mine. Other community projects include
waste recycling, alien vegetation eradication, making sporting
facilities available to local schools and employees volunteer their
time to assist local schools, especially to improve the
understanding of Mathematics and Science among school
pupils.
Community vegetable farming
SUSTAINABLE DEVELOPMENTGold Fields has embraced sustainable development as a
business imperative, which is reflected in its vision, values and
strategy. Through this, Gold Fields has introduced structures that
encourage a networked interface between disciplines like safety,
health, environmental engineering, natural environment, risk,
stakeholder engagement, legal and communication. This
approach has allowed Gold Fields to capitalise on synergies and
to avoid duplication. In this regard, several Key Performance
Indicators (KPIs) are monitored and utilised to make informed
business decisions.
Gold Fields is designing a safety management system called the
Safe Production Management System, to address outstanding
issues identified and to assist the operations to improve health
and safety to best practice levels. Gold Fields has committed itself
to the Mine Health and Safety Council target set by the industry in
conjunction with the Department of Mineral Resources. These
milestones are based on rate improvements for fatalities,
noise-induced hearing losses and silicosis, with the objective of
aligning with international norms. Passing of the Mine Health and
Safety Act in 1996 heralded a transition to a new paradigm shift in
mining health and safety in South Africa. Since that time, the Mine
Health and Safety Council has set a benchmark for reduction of
accidents to international standards in the South African mining
industry by 2013.
KDC’s environmental initiatives are focused on reducing the
impact that the mine may have on the receiving environment.
All potential sources of pollution like the water discharges are
sampled, analysed and monitored on a regular basis. Concurrent
rehabilitation projects, like alien vegetation eradication are the
current focus. The mine has an environmental management team
who are supported by specialist assistance from the regional
office in Libanon. The mine has been certified to be in compliance
with ISO 14001: 2004 standard. Quarterly internal audits of all
management units are performed. Bi-annual external surveillance
audits are conducted for ongoing verification of conformance.
Safety statistics
Class Units 2006 2007 2008 2009 2010
Fatalities (No) 26 31 16 22 11
Fatality rate (per mmhrs) 0.30 0.33 0.18 0.24 0.13
LDIFR (per mmhrs) 16.71 11.32 6.72 5.26 6.31
12 Kloof-Driefontein Complex (KDC) – Technical Short Form Report
MINERAL RESOURCES AND MINERAL RESERVESThe Mineral Resources are classified as defined and described in the 2007 SAMREC Code and are consistent with the approach used at
other Witwatersrand deep level gold operations. An updated resource model provides an effective platform for realistic mine design with
the application of appropriate mining methods. KDC’s Mineral Resources and Mineral Reserves are reported within its mining right and are
adjusted to show the split between above (AI) and below (BI) current shaft infrastructure as defined by 50 level at KDC’s West operation
and 46 level at KDC’s East operation.
In this reporting cycle, considerable Mineral Resource ounces that previously converted to the Measured, Indicated and Inferred categories,
now remain in inventory. This revision is based on the enhanced in-house resource classification, which takes into account Gold Fields safety
value (“If we cannot mine safely, we will not mine”), as well as the principle that there must be reasonable and realistic prospects for eventual
economic extraction.
Mineral Resources
Mineral Resources are quoted at an appropriate in situ economic cut-off grade with tonnages and grades based on the resource block
model. They also include estimates of any material below the cut-off grade required to be mined to extract the complete pay portion of
the Mineral Resource.
Mineral Resource classification
Tonnes (Mt) Grade (g/t) Gold (’000 oz)
Dec 2010 June 2010 June 2009 Dec 2010 June 2010 June 2009 Dec 2010 June 2010 June 2009
Underground
Measured 40.4 116.4 121.3 15.2 11.1 11.1 19,731 41,727 43,436
Indicated (AI) 61.3 98.8 98.8 10.2 9.2 9.2 20,193 29,248 29,248
Inferred (AI) 4.7 17.4 17.4 7.8 6.0 6.0 1,174 3,343 3,343
Total above infrastructure 106.4 232.6 237.5 12.0 9.9 10.0 41,098 74,318 76,027
Indicated (BI) 50.1 122.7 122.7 13.6 12.7 12.7 21,865 49,991 49,991
Inferred (BI) 16.0 25.9 25.9 16.2 5.9 5.9 8,321 4,899 4,899
Total underground 172.5 381.2 386.1 12.9 10.5 10.5 71,284 129,208 130,917
Surface stockpiles
Indicated surface dumps 30.2 35.1 40.3 0.6 0.6 0.6 594 711 817
Total surface stockpiles 30.2 35.1 40.3 0.6 0.6 0.6 594 711 817
KDC total 202.7 416.3 426.4 11.0 9.7 9.6 71,878 129,919 131,734
Notes: AI = Above Infrastructure and BI = Below Infrastructure.
The Mineral Resource estimate for gold and uranium in the Tailings Storage Facilities (TSF) and the underground uranium, are included in
the figures below:
Mineral Resource
classification (Gold)
Tonnes (Mt) Grade (g/t) Gold (‘000 oz)
Dec 2010 June 2010 June 2009 Dec 2010 June 2010 June 2009 Dec 2010 June 2010 June 2009
Surface tailings
Measured tailings 418.1 414.9 385.8 0.3 0.3 0.3 4,069 4,055 3,848
Indicated tailings – – – – – – – – –
Inferred tailings – – 13.8 – – 0.2 – – 101
Total TSFs 418.1 414.9 399.6 0.3 0.3 0.3 4,069 4,055 3,949
Mineral Resourceclassification (Uranium)
Tonnes (Mt) Grade (kg/t) Uranium (Mlb)
Dec 2010
June 2010
June 2009
Dec 2010
June 2010
June 2009
Dec 2010
June 2010
June 2009
Underground
Inferred (scheduled) 79.6 79.6 85.7 0.046 0.075 0.075 8.054 13.207 14.099
Total underground 79.6 79.6 85.7 0.046 0.075 0.075 8.054 13.207 14.099
Surface tailings
Measured tailings 418.1 414.8 399.6 0.048 0.048 0.048 44.307 44.164 42.705
Indicated tailings – – – – – – – – –
Inferred tailings – – – – – – – – –
Total surface tailings 418.1 414.8 399.6 0.048 0.048 0.048 44.307 44.164 42.705
KDC total 497.7 494.4 485.3 0.048 0.053 0.053 52.361 57.371 56.804
13Kloof-Driefontein Complex (KDC) – Technical Short Form Report
Modifying factorsKDCEast
KDCWest
Mineral Resource
gold priceUS$/oz 1,100 1,100
Exchange rate ZAR:US$ 8.24 8.24
Mineral Resource
gold priceZAR/kg 290,000 290,000
Mineral Resource
pay limitcm.g/t 1,460 1,130
Mineral Reserve
gold priceUS$/oz 1,000 1,000
Mineral Reserve
gold priceZAR/kg 265,000 265,000
Mineral Reserve
pay limitcm.g/t 1,610 1,240
Mined value cm.g/t 1,950 1,687
Mine call factor % 83 90
Block factor % 100 99
Stopping (block)
widthcm 157 154
Mill width cm 206 201
Plant recovery
(underground)% 98 97
Modifying factors
� The Measured and Indicated Mineral Resources are inclusive
of those Mineral Resources modified to produce Mineral
Reserves;
� All Mineral Resources and Mineral Reserves are stated as at
31 December 2010. Unless otherwise stated, all Mineral
Resources and Mineral Reserves are quoted as 100%
(managed) and not attributable with respect to ownership;
� All Mineral Reserves are quoted in terms of Run-of-Mine
(RoM) grades and tonnage as delivered to the metallurgical
processing facilities and are 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
biannually, and any issues identified are rectified at the earliest
opportunity – usually during the current reporting cycle.
Grade tonnage curve
The grade tonnage curves (GTC’s) represents undiluted grade
(at block width) and tonnes within the total Mineral Resource.
Underground Mineral Resources make provision for minor faulting
and minor geological losses.
KDC-West combined GTC
300
250
200
150
100
50
0
30
25
20
15
10
5
00 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
— T
onne
s (m
illio
ns)
— A
vera
ge g
rade
abo
ve c
ut-o
ff (g
/t)
Cut-off grade (g/t)
KDC-East combined GTC
500
450
400
350
300
250
200
150
100
50
0
45
40
35
30
25
20
15
10
5
00 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
— T
onne
s (m
illio
ns)
— A
vera
ge g
rade
abo
ve c
ut-o
ff (g
/t)
Cut-off grade (g/t)
Close-up of basal contact Milky Cobble VCR, KDC-East
14 Kloof-Driefontein Complex (KDC) – Technical Short Form Report
Mineral Resource reconciliation (18-month period)
Factors that affected Mineral Resource reconciliation:
� Decrease due to mining operations during the past
18 months;
� The major enhancement in the in-house Mineral Resource
classification and an increase in pay limits, has resulted in a
significant reduction in ounces at KDC-West of 21 million
ounces and at KDC-East of 37 million ounces;
� KDC-West’s below infrastructure mechanised decline option
versus the D9 Shaft project has resulted in a decrease of
4.4 million ounces;
� KDC-East’s 46 level option versus the 55 decline project has
resulted in a decrease of 0.36 million ounces; and
� Economic factors (higher pay limit).
Change in Mineral Resource June 2009 to December 2010 130
100
70
40
10
131.7 129.9
71.9
1.58 0.70 0.23
5.6725.54
16.524.56
5.18 0.12
0.33
June
200
9
Depl
etio
n
Excl
usio
ns K
7 Sh
aft
June
201
0
Depl
etio
n
Reso
urce
mod
ellin
g
Recl
assi
ficat
ion
Reso
urce
bey
ond
foot
prin
t (KD
C-E
ast)
Pay
limits
Reso
urce
mod
ellin
g
Surfa
ce re
sour
ces
Excl
usio
ns
Dece
mbe
r 201
0
Mineral Reserves
Mineral Reserve estimation at KDC is based on development of an appropriately detailed and engineered LoM plan, which accounts for all
necessary access development and stope designs. The planning process incorporates appropriate modifying and technical-economic
factors.
Significant increases in power, consumable and labour costs have limited the benefit of an increased gold price with the effect that pay limits
show only nominal reductions since the June 2010 declaration despite the increase in the Mineral Reserves gold price. Optimised mine
design and scheduling on the Mineral Reserve estimate, utilising a US$1,000 per ounce gold price, resulted in a Proved and Probable
Mineral Reserve estimate as at 31 December 2010, as follows:
Mineral Reserve classification
Tonnes (Mt) Grade (g/t) Gold (’000 oz)Dec
2010June 2010
June 2009
Dec 2010
June 2010
June 2009
Dec 2010
June 2010
June 2009
UndergroundProved 19.0 32.1 36.8 8.4 7.4 10.7 5,140 7,648 8,861
Probable (AI) 44.5 35.7 39.0 7.6 8.4 8.2 10,934 9,613 10,344
Probable (BI) 16.1 30.8 30.8 7.2 9.1 9.1 3,713 8,965 8,965
Total underground 79.6 98.6 106.6 7.7 8.3 8.2 19,787 26,226 28,169
Surface stockpilesProbable surface 16.8 18.0 21.8 0.8 0.8 0.8 454 466 554
Total surface stockpiles 16.8 18.0 21.8 0.8 0.8 0.8 454 466 554
Grand total 96.4 116.6 128.4 6.5 7.1 7.0 20,241 26,692 28,723
Notes: AI = Above Infrastructure and BI = Below Infrastructure.
Mineral Reserves per business unit
Business unit
Proved Probable
Tonnes (Mt)
Grade(g/t)
Gold (’000 oz)
Tonnes (Mt)
Grade (g/t)
Gold (000 oz)
BU 1 (D1 and D5 shafts) 4.3 7.7 1,063 29.4 7.6 7,194
BU 2 (D2 and D4 shafts) 3.8 10.3 1,258 6.8 7.5 1,632
BU 3 (D6, D7, D8 and D10 shafts) 3.2 5.7 565 0.8 3.3 137
BU 4 (K3 and K4 shafts) 2.4 12.0 923 17.6 7.9 4,453
BU 5 (K Main, K 7, K8 and K10 shafts) 5.3 7.8 1,331 6.1 6.3 1,231
Total Mineral Reserves underground 19.0 8.4 5,140 60.7 7.5 14,647
Total Mineral Reserves surface – – – 16.8 0.8 454
Grand total 19.0 8.4 5,140 77.5 6.1 15,101
Go
ld (M
oz)
15Kloof-Driefontein Complex (KDC) – Technical Short Form Report
Mineral Reserve reconciliation (18-month period)
Factors that affected Mineral Reserve reconciliation:
� Depletion since June 2009;
� Geological and evaluation model enhancements coupled with
reef grade changes;
� Specific exclusions (D9 Shaft and K4 55 decline) and changes
in dip pillar layouts; and
� Economic factors.
REGULATORY CODESSAMREC
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 Listings Requirements of the JSE Limited, South Africa,
specifically Section 12 – Issue 11.
Sarbanes-Oxley Act
The Mineral Resources and Mineral Reserves are 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
KDC has an environmental management team who are supported
by specialist assistance from the South Africa regional office at
Libanon. The systems, procedures and training are at international
best practice levels. Gold Fields produced a Sustainability Report
in 2010 and intends reporting annually in accordance with the
Global Reporting Initiative.
Change in Mineral Reserves June 2009 to December 2010
30
20
10
0
Gol
d (M
oz)
28.7
20.2
1.5 26.7 0.7 26.0 0.0
4.9 1.5 0.80.61.0
0.5
June
200
9
June
201
0
Min
ed d
eple
tion
2009
Min
ed d
eple
tion
2010
Spec
efic
excl
usio
ns
Spec
efic
excl
usio
ns
Spec
efic
incl
usio
ns
Post
dep
letio
n Ju
ne 2
010
Geo
logy
Econ
omic
fact
ors
Tech
nica
l fac
tors
Eval
uatio
n
LoM
Dec
embe
r 201
0
Mineral Reserve SensitivityThe following graph indicates the Mineral Reserve sensitivity at
25 –10%, -5%, base, +5%, +10% and +25% to the gold price.
The Mineral Reserve sensitivities are not based on detailed
depletion schedules and should be considered on a relative and
indicative basis only.
Managed Mineral Reserve sensitivity
30
25
20
15
10
5
0-10% -5% (265,000)
Base+5% +10% +25%
Gold price (ZAR/kg)
Gol
d (M
oz)
18.319.3
20.2 21.222.2
25.2
KDC-East shaft
16 Kloof-Driefontein Complex (KDC) – Technical Short Form Report
36 years’ experience in the mining industry and is responsible
for the Sampling and Evaluation functions for KDC-East.
M Greenhalgh: Chief Evaluator (KDC-West operation) GDE Geostatistics, Mining Engineering and Certificate in
Mineral Resource Management. Registered with SAIMM,
Reg. No. 704826, Mr Greenhalgh has over 22 years experience
in the mining industry and is responsible for sampling and
evaluation functions at KDC-West.
W de Klerk: Chief Surveyor (KDC-West operation)Mine Surveyor’s Certificate of Competence and GDE. Registered
with PLATO Reg. No. MS70092, Mr De Klerk has over 28 years
experience in the mining industry and is responsible for Survey,
Reporting and Historical Modifying Factors for KDC-West.
JH Engelbrecht: Chief Surveyor (KDC-East operation)Chief Surveyor, NHD (Mineral Resource Management), National
Diploma in Mine Surveying, Mine Surveyor’s Certificate of
Competency, PLATO (Registration number MS 0105).
Mr Engelbrecht has 26 years’ experience in the mining industry
(24 years at KDC) and is responsible for the mine survey, reporting
and historical modifying factors for KDC-East.
S Wild: Chief Mine Planner (KDC-West operation)NHD Mineral Resource Management and GDE in Mining
Engineering. Mr Wild has over 14 years’ experience in the mining
industry and is responsible for the Mine Planning and Scheduling
for KDC-West. Registered with PLATO Reg. No. MET 0080.
W Swartz: Chief Mine Planner (KDC-East operation)NHD Mine Survey. Mr Swartz has over 20 years’ experience in the
mining industry and is responsible for Mine Planning
and Scheduling for KDC-East.
KEY TECHNICAL STAFF
Post Incumbent Qualifications Years Key responsibilitiesVice-President and Head of
Operations
JJ Barnard NHD Metalliferous Mining and Mine
Manager’s Certificate
26 Overall strategic direction, leadership and
management
Senior Manager operations
KDC BU 1
R Chaplin BSc Mining Eng (Hons) Mine Manager’s
Certificate
20 Full operational management
Senior Manager operations
KDC BU 2
J Horn Mine Manager’s Certificate, Mine
Overseer’s Certificate, NHD Metal
Mining
23 Full operational management
Senior Manager operations
KDC BU 3
K De Lange NHD, M Eng
Mine Manager’s Certificate
24 Full operational management
Senior Manager operations
KDC BU 4
M Roebert B-Tech Metalliferous Mining, Mine
Managers Certificate of Competency,
ECSA Prof. Cert. Eng. Reg. No.
200690091
31 Full operational management
Senior Manager operations
KDC BU 5
K Stead NHD Metalliferous Mining. EDP, Mine
Managers Certificate of Competency,
ECSA registered
27 Full operational management
Mineral Resources Manager
KDC (Acting)
Presley Reddi B Tech (MRM), GDE (Mining
Engineering), NHD & Mine Surveyor’s
Certificate of Competency
25 Mine Planning, Mineral Resources and
Mineral Reserves and compilation of CPR
Senior Manager Financial
KDC
H Engelbrecht Nat Diploma in Cost Accounting 29 Financial Reporting, compliance
Metallurgy Manager
KDC
D Taunyane NHD Extraction Metallurgy and MAP 27 Metallurgical management
Human Resource Manager
KDC
M Lancaster B Proc (Hons) and LLB 26 Human resources management
Engineering Manager
KDC
J J Botha GCC (Mine and works electrical and
Mech Eng) ECSA Prof Cert Eng
Reg No. 200090007
30 Engineering, logistics, infrastructure and
management
COMPETENT PERSONSS. Reddi: Manager Mine Planning and Resource Management (KDC-East operation)GDE (Mining Engineering), B.Tech (Mineral Resource
Management), Mine Surveyor’s Certificate of Competency,
Registered with PLATO as Professional Mine Surveyor
(Registration number PMS 0193), Fellow of the Institute of Mine
Surveyors of S.A. Mr Reddi has 26 years’ experience in the mining
industry (eight years at KDC-East) and is responsible for the overall
correctness, standard and compliance of the KDC-East
declaration.
JA du Plessis: Manager: Mine Planning and Resource Management (KDC-West operation)MSc (Mining Eng), GDE, National Higher Diploma Mine Surveying
and Mine Surveyors’ Certificate of Competency. Registered with
PLATO as a Professional Mine Surveyor (Registration number
PMS 0145), Fellow of the Institute of Mine Surveyors. Mr du
Plessis has over 31 years’ experience in the mining industry
(three years at KDC-West) and is responsible for the overall
correctness, standard and compliance of the KDC-West
declaration.
J van Eeden: Chief Geologist (KDC-West operation)MSc (Geology). Mr van Eeden has over 27 years’ experience
in the mining industry and is responsible for Geology and
Exploration for KDC-West.
K Sibeko: Chief Geologist (KDC-East operation)BSc (Hons) (Geology). Mr Sibeko has over 17 years’ experience
in the mining industry and is responsible for Geology and
Exploration for KDC-East.
C Dewey: Chief Evaluator (KDC-East operation)MSc Mining Engineering, GDE, ND Mine Survey and Mine
Surveyor’s Certificate of Competence. Mr Dewey has over
NOTES
BASTION GRAPHICS
DISCLAIMERForward-looking statementCertain 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 other important factors that could cause the actual results, performance or achievements of 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; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold 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; new legislation 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 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.
Note: For abbreviations refer to page 24 and for glossary of terms refer to IBC – “Mineral Resource and Mineral Reserve Overview 2010”.
Incre
asin
g level of geoscie
ntific
know
led
ge a
nd
confid
ence
Consideration of mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors (the ‘modifying factors’)
MINERAL RESOURCES
INFERRED
INDICATED
MEASURED PROVED
PROBABLE
MINERAL RESERVES
EXPLORATIONRESULTS
Reported as in situ
mineralisation estimates
Reported as mineable
production estimates
96.4 Mt @ 6.5 g/t
20.2 Moz
19.0 Mt @ 8.4 g/t
5.1 Moz
77.4 Mt @ 6.1 g/t
15.1 Moz
202.7 Mt @ 11.0 g/t
71.9 Moz
141.6 Mt @ 9.4 g/t
42.7 Moz40.4 Mt @ 15.2 g/t
19.7 Moz
20.7 Mt @ 14.3 g/t9.5 Moz
KDC Life of Mine Mineral Resource classification
KDC Mineral Resource and Mineral Reserve Classification
REFERENCE
Mine Boundary
Shafts
Mined out areas
Carbon leader subcrop
VCR subcrop
Pillars
KDC-West: CL only
KDC-East: VCR only
Measured Mineral Resources
Indicated Mineral Resources
Inferred Mineral Resources