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Gold Fields Signs Option Agreement for 60% Interest in Philippines Gold-Copper FSE Project

September 20, 2010

JOHANNESBURG, September 20, 2010 /PRNewswire-FirstCall/ — Gold Fields
Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) is pleased to announce
that it has entered into option agreements with Lepanto Consolidated Mining
Company (Lepanto), a company listed in the Philippines, and Liberty Express
Assets (Liberty), a private holding company, to acquire a 60% interest in the
undeveloped gold-copper Far Southeast (FSE) deposit in the Philippines.

The agreements provide Gold Fields with an 18-month option on FSE, during
which time Gold Fields will conduct a major drilling programme as part of a
feasibility study on FSE. Gold Fields is required to pay (i) US$10 million in
option fees to Lepanto; and (ii) US$44 million as a non-refundable
down-payment to Liberty upon signing of the option agreements.

Should Gold Fields, after a 12-month period, decide to proceed with the
acquisition of the 60% interest in FSE, a further non-refundable down-payment
of $66 million will be payable to Liberty, with the final payment of US$220
million
payable at the expiration of the option period. The total pre-agreed
acquisition price for a 60% interest in FSE, inclusive of all of the above
payments, is US$340 million.

FSE is located within an existing mining camp and is in close proximity
to two other mines historically operated by Lepanto, one of which is
currently in production. FSE has ready access to established infrastructure,
including roads, tailings facilities, power and water. The existing workforce
on the doorstep of FSE is part of a supportive community established around
mining over the past 70 years.

While there has not been sufficient work completed to declare a mineral
resource for FSE, drilling undertaken over a number of years indicates the
presence of a large, concealed gold-copper mineralised porphyry system. More
than 80 diamond drill holes totalling more than 35,000 metres have
intersected a mineralised zone with approximate dimensions of 900 metres
east-west by 900 metres north-south by 900 metres vertical. Within this zone
Gold Fields considers that mineralisation is continuous. While grades are
variable, the following historic drill intersections are considered typical
of the mineralized zone: 691m at 2.5g/t Au, 0.9% Cu; 906.8m at 1.5g/t Au,
0.5% Cu; 613.1m at 0.8g/t Au, 0.8% Cu; 733.9m at 0.7g/t Au, 0.4% Cu; and
517.4m at 0.6g/t Au, 0.4% Cu.

Nick Holland, Chief Executive Officer of Gold Fields, said: “This
transaction provides Gold Fields with a unique and exciting opportunity to
gain exposure to what will undoubtedly prove to be a world-class deposit. It
also advances our strategy of growing each of our three international regions
to 1 million ounces, either in production or in development, by 2015.

“We now have exciting growth projects in each of the regions in which we
operate. In South Africa we have the world-class developing South Deep mine,
in South America we have the Chucapaca project in Peru, in West Africa the
Yanfolila project in Mali, and now Far Southeast in the Philippines, which
forms part of the Australasia region,” Mr Holland added.

FSE is located in the northern part of Luzon, the largest island in the
Philippines
.

Notes to editors

About Gold Fields

Gold Fields is one of the world’s largest unhedged producers of gold with
attributable production of 3.5 million gold equivalent ounces per annum from
nine operating mines in South Africa, Ghana, Australia and Peru. Gold Fields
also has an extensive growth pipeline with both greenfields and nearmine
exploration projects at various stages of development. Gold Fields has total
attributable gold equivalent Mineral Reserves of 78 million ounces and
Mineral Resources of 281 million ounces. Gold Fields is listed on JSE Limited
(primary listing), the New York Stock Exchange (NYSE), the NASDAQ Dubai
Limited, the Euronext in Brussels (NYX) and the Swiss Exchange (SIX).

SOURCE Gold Fields Limited


Source: newswire



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