Mineral Resources and Mineral Reserves Supplement to the

Transcription

Mineral Resources and Mineral Reserves
Supplement to the Integrated Annual Report 2014
INTENT
Sibanye Gold Limited’s guiding principle
is to ensure integrity and responsibility
in reporting its Mineral Resources and
Mineral Reserves, to be compliant with
public and internal regulatory codes
and to inform all stakeholders on the
status of the Group’s fundamental asset
base. Sibanye further aims to report
on information that is rated important
for disclosure to a level of detail that
ensures competency, transparency
and materiality.
Neal Froneman
commented: “It is
extremely pleasing
to see our operating
strategy taking
effect. Significant
improvements in the
quality of mining
and cost control at
our operations in the
last two years, has
facilitated a further
increase in our
Mineral Reserve base
at our key operations”
www.sibanyegold.co.za
CONTENTS
CONTENTS
SECTION 1 – GROUP
OVERVIEW
SIBANYE IS A LEADING SOUTH
AFRICAN GOLD MINING COMPANY
WITH A PORTFOLIO OF FOUR
OPERATING MINES, A SURFACE
RETREATMENT OPERATION AND A
PORTFOLIO OF ORGANIC PROJECTS
WHICH QUALIFIES ITS MINERAL
RESERVE PROFILE AS ONE OF THE
STRONGEST IN THE INDUSTRY.
SECTION 2 – OPERATIONS
AND PROJECTS
02 22
Introduction
Group Highlights
Group Overview
Headline Numbers
Corporate Governance
Reporting Code
Estimation Principles
Code of Practice
– Discovery and Exploration
– Quality Assurance and
Quality Control
– Mineral Resource and
Mineral Reserve Evaluation
–C
ompetent Persons and
Declaration Consent
Group Consolidated
Mineral Resource and
Mineral Reserve Statement
Group Mineral Resources
and Mineral Reserves
Depletion and Growth
SECTION 3 –
SUPPLEMENTARY
INFORMATION
77
02
03
04
04
06
06
06
08
08
Overview
Geological Setting and
Mineralisation
Exploration Activities in 2014
23
Operations
Beatrix
Cooke
Driefontein
26
26
34
44
08
Projects
Burnstone Project
West Rand Tailings
Retreatment Project
Southern Orange Free
State Projects
De-Bron Merriespruit
Bloemhoek
Hakkies & Robijn
Beisa North & Beisa South
60
61
Professional Organisations
77
SAMREC Code Definitions
77
Glossary of Terms
78
Conversion Table
80
Abbreviations
80
Disclaimer
81
09
09
10
17
Kloof
24
25
52
66
68
70
73
74
75
SECTION 4 – SHAREHOLDER PLANS
Beatrix
History
Shareholder Plan
Key Statistics
Cooke
History
Shareholder Plan
Key Statistics
Driefontein
History
Shareholder Plan
Key Statistics
Kloof
History
Shareholder Plan
Key Statistics
Administration and
Corporate Information
IBC
Sibanye Gold Mineral Resources and Mineral Reserves 2014
01
SECTION 1 INTRODUCTION
INTRODUCTION
Sibanye Gold Limited (“Sibanye Gold”, “Sibanye”, or “the
Group”) is an unhedged producer of gold, with attributable,
annualised production of ~1.6Moz of gold from four mining
operations and a surface retreatment operation located in South
Africa. The Group is also growing its uranium portfolio, with
planned production of more than 250,000lbs in 2015.
Sibanye’s portfolio of operating assets has changed materially
in 2014, with the acquisition of the Cooke Operations from
Gold One International Limited (“Gold One”). Sibanye now
also holds a comprehensive portfolio of brownfields projects
at its operating mines, as well as greenfields projects with the
acquisition of Witwatersrand Consolidated Gold Resources
Limited (“Wits Gold”).
The geology and evaluation models of the Group’s operational
assets have been updated to reflect the latest available data,
and have proved to be stable with only minor variances in
the Mineral Resources and Mineral Reserves year-on-year.
Operational models are coupled with an integrated and
holistic mine design and schedule plan based on actual and
expected performance levels. During 2014, the geology and
evaluation models of the projects acquired from Wits Gold
have been revised and brought in line with Sibanye’s protocols
and procedures. The newly acquired Wits Gold Projects have
seen larger changes in the Mineral Resources and Mineral
Reserves year-on-year due to the more conservative protocols
that Sibanye applies to ensure compliance with the relevant
reporting codes.
At 31 December 2014, Sibanye had total managed Mineral
Resources, inclusive of projects, of 103.9 (128.7) million
ounces (Moz) of gold and 227.4 (282.3) million pounds (Mlb)
of uranium. Managed Mineral Resources (excluding projects)
were 78.7 (80.2)Moz gold and 93.4 (76.5)Mlb uranium net of
depletion. The corresponding total managed gold and uranium
Mineral Reserves inclusive of projects were 28.4 (32.7)Moz net
of 1.7Moz depletion, and 102.5 (102.8)Mlb, net of 0.2Mlb
depletion respectively.
Please note that the Mineral Resources and Mineral Reserves
stated in this supplement include the Sibanye 2014 acquisitions
as declared at 31 December 2013. All valued 31 December
2014 comparisons/reconciliations are therefore against the 31
December 2013 numbers, unless otherwise stated.
IMPORTANT NOTICES
1. The United States Securities and Exchange Commission
(SEC) permits mining companies, in their filings with
the SEC, to disclose only those mineral deposits that a
company can economically and legally extract or produce
from. Certain terms are used in this report, such as
“Mineral Resources”, that the SEC guidelines strictly
prohibit companies from including in filings. US investors
are urged to consider closely the disclosure in the Form
20-F submission.
2. Mineral Resources and Mineral Reserves reported are
managed by Sibanye unless otherwise stated, and Mineral
Resources are inclusive of Mineral Reserves.
3. Rounding-off of figures in this report may result in minor
computational discrepancies. Where this occurs it is not
deemed significant.
4. The 31 December 2014 Mineral Resources and Mineral
Reserves are net of depletion.
02
Sibanye Mineral Resources and Mineral Reserves 2014
SECTION 1 GROUP HIGHLIGHTS
GROUP HIGHLIGHTS
GOLD MINERAL
RESOURCES
GOLD MINERAL
RESERVES
103.9Moz
28.4Moz
URANIUM MINERAL
RESOURCES
URANIUM MINERAL
RESERVES
227.4Mlb
102.5Mlb
• Stable geology and estimation models at the historic Sibanye operations, with
planned production levels based on current and expected performance levels;
• Acquisition of Wits Gold, which included the Burnstone Project and related assets
(April 2014);
• Acquisition of the Cooke operations from Gold One (May 2014);
• The incorporation of the Wits Gold and Cooke assets resulted in a significant increase
in the C2014 gold and uranium Mineral Reserves and production, and extended the
C2014 LoM production profile of Sibanye:
• Mineral Reserves increased by 44% to 28.425Moz
(19.733Moz pre acquisitions);
• Uranium Mineral Reserves increased by 137% to 102.480Mlb (43.155Mlb pre
acquisitions);
• Cooke production has increased Sibanye’s gold production for 2014 by 12% to
1.59Moz; and
• Sibanye realised it’s first uranium shipment from the Cooke operations.
• Year-on-year the post production depleted Mineral Resources of the mature
underground operations Kloof, Driefontein, Beatrix and Cooke (KDBC) remained
virtually unchanged at 78.124Moz (79.398Moz at 31 December 2013);
• Pre-feasibility studies of the Driefontein and Kloof Drop-down Projects were
approved, and realised an additional 1.657Moz gold Mineral Reserves;
• Ongoing assessment of Secondary Reefs and White Areas at Kloof and Driefontein,
has resulted in the inclusion of 0.978Moz gold Mineral Reserves;
• The Burnstone geology model has been de-risked, and the definitive feasibility
study (DFS) is in progress. The project presents an attractive opportunity, from
both a strategic and operational perspective; and
• A phased development approach has been adopted for the West Rand Tailings
Retreatment Project (WRTRP), specifically considering how to leverage available
surface infrastructure. The WRTRP is on schedule with a DFS due for completion
during Q1 2015.
Image
Cooke 1 Shaft headgear
03
SECTION 1 GROUP OVERVIEW
GROUP OVERVIEW
THE SIBANYE MINERAL RESOURCE AND MINERAL
RESERVE DECLARATION STRATEGY IS TO ENSURE
COMPETENCY AND INTEGRITY IN REPORTING AND TO
CONTINUE PURSUING SUSTAINED DELIVERY THROUGH
ORGANIC GROWTH WITHIN EXISTING OPERATIONS AND
NEW PROJECTS.
The Mineral Resources and Mineral Reserves outlined in this Supplement to the Sibanye Gold Integrated
Annual Report 2014 provide the major aspects for operational excellence and goals in securing the future of
Sibanye. The information presented addresses the current status and changes at each operation, advanced and
growth project to a level of detail that ensures competency, transparency and materiality.
HEADLINE NUMBERS
31 DECEMBER 2013
(PRE ACQUISITIONS)
Gold Mineral Resources
64.962Moz
Uranium Mineral Resources
68.813Moz
Gold Mineral Reserves
19.733Moz
Uranium Mineral Reserves
43.155Mlb
GEOGRAPHIC LOCATION
31 DECEMBER 2013*
(POST ACQUISITIONS)
FAR WEST RAND
• Cooke
• Driefontein
• Kloof
• Randfontein Surface
• WRTRP
Limpopo
128.733Moz
N1
282.290Mlb
Mpumalanga
North West
Randfontein
Westonaria
Carletonville
Potchefstroom
N12
Welkom
Free State
Johannesburg
Balfour
N1
32.702Moz
Parys
102.827Mlb
Virginia
N3
Theunissen
KwaZulu-Natal
12 MONTHS
PRODUCTION DEPLETION
From Gold Mineral Resources
Bloemfontein
Northern Cape
1.923Moz
Lesotho
Durban
SOUTH RAND
• Burnstone
From Uranium Mineral Resources
0.299Mlb
From Gold Mineral Reserves
1.723Moz
Eastern Cape
Western Cape
Cape Town
FREE STATE
• Beatrix
• De-Bron Merriespruit
• Bloemhoek
• Hakkies and Robijn
• Beisa North and South
From Uranium Mineral Reserves
0.218Mlb
31 DECEMBER 2014**
103.944Moz
227.379Mlb
Sibanye Gold
Witwatersrand Basin
0
100 200km
28.425Moz
102.480Mlb
*Total managed Mineral Resources and Mineral Reserves realised following the acquisition of the Wits Gold and Gold One Cooke operation as at 31 December 2013 (published 04 June 2014); and
** Refer to tables following for detailed Mineral Resource and Reserve classifications.
Notes:
• The 31 December 2013 Mineral Resources and Mineral Reserves are inclusive of acquisition numbers;
• The 31 December 2014 Mineral Resources and Mineral Reserves are net of production depletion;
• Mineral Reserve gold price of R420,000/kg and long term contract Mineral Reserve uranium price of R1,110/kg;
• Mineral Resources are inclusive of Mineral Reserves; and
• Mineral Resources and Mineral Reserves 100% attributable and managed by Sibanye.
04
SECTION 1 GROUP OVERVIEW
MANAGED GOLD MINERAL RESOURCES AND MINERAL RESERVES SPLIT PER OPERATION AND PROJECT AS AT 31 DECEMBER 2014
Gold Mineral Resources (103.9Moz)
9.9Moz
10%
6.5Moz
Gold Mineral Reserves (28.4Moz)
9.9Moz
2.1Moz
10%
7%
6%
16%
8.9Moz 8%
3.7Moz
16.6Moz
6.5Moz
7% 2.0Moz
23%
29.3Moz
6.9Moz
Beatrix
Driefontein
Burnstone
Projects
Cooke
Kloof
WRTRP
7.4Moz
26%
22% 22.9Moz
28%
13%
24%
Beatrix
Driefontein
WRTRP
Cooke
Kloof
Projects
“Gold Mineral
Reserves increased
44% year-on-year”
MANAGED URANIUM MINERAL RESOURCES AND MINERAL RESERVES SPLIT PER OPERATION AND PROJECT AS AT 31 DECEMBER 2014
Uranium Mineral Resources (227.4Mlb)
Uranium Mineral Reserves (102.5Mlb)
3.8Moz
27.0Moz
35.4Moz
16%
4%
12%
29% 66.4Moz
98.7Moz
96% 98.7Moz
43%
Beatrix (Beisa)
WRTRP
Cooke
Projects
Cooke
WRTRP
“Uranium Mineral
Reserves increased
137% year-on-year”
The stated gold and uranium Mineral Resources and Mineral Reserves are 100% attributable to Sibanye
05
SECTION 1 CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
THE MINERAL RESOURCES
AND MINERAL RESERVES ARE
SUPPORTED BY APPROPRIATE
MINERAL RESOURCE
MANAGEMENT PROCESSES
AND PROTOCOLS THAT ENSURE
ADEQUATE CORPORATE
GOVERNANCE IN RESPECT OF
THE INTENT OF THE SARBANESOXLEY ACT.
REPORTING CODE
Sibanye 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
(SAMREC Code – 2007 edition and amended
July 2009), South African Code for the reporting
of Mineral Asset Valuation (SAMVAL Code – 2008
edition amended July 2009) and other relevant
international codes such as the United States
Securities and Exchange Commission (SEC)
Industry Guide 7 for the reporting of Mineral
Reserves. The assessment and reporting criteria,
as outlined in the SAMREC Code, have been
used in the preparation of internal Competent
Persons Reports for the Mineral Resources and
Mineral Reserves for each of the operations and
projects from which the numbers stated in this
supplement are drawn.
The process followed in producing the
declaration is in alignment with the guiding
principles of the Sarbanes-Oxley Act of 2002
(SOX). Covering the entire Group’s Mineral
Resource Management (MRM) function,
SOX audits run in parallel with external Mineral
Resource and Mineral Reserve audits and
strengthens the internal control process, leading
to world class corporate governance practices.
The Sibanye operations operate under new
order mining rights in terms of the Minerals
and Petroleum Resources Development of Act
of 2002 (Act No. 28, of 2002) (MPRDA). All
required operating permits have been obtained,
and are in good standing.
The gold Mineral Reserve price used for
estimation is in accordance with the SEC
guidelines and approximate the three-year
trailing average price, as calculated on a monthly
basis based on the London afternoon gold price
fix. The Mineral Resource gold price used has
a premium of ~10% over the R/kg Mineral
Reserve gold price, representing upside potential
leverage to the spot price of gold. The uranium
Mineral Reserve price used for estimation
is based on the long-term outlook price for
uranium and is ~1% lower in South African
rand terms than the price used for the
31 December 2013 declaration.
Currency prices used in this declaration are as follows:
31 Dec 2014
Commodity
Gold
Unit
ZAR/kg
US$/oz
Uranium
ZAR/kg*
US$/lb
Resource
460,000
1,590**
31 Dec 2013
Reserve
420,000
1,450**
Resource
Reserve
450,000
410,000
1,650
1,500
1,110 (860)
1,110 (860)
1,124
1,124
56**
56**
60
60
*Sibanye used a ‘Long Term’ Mineral Reserve uranium price for the declaration estimate (three year average trailing R/kg spot price in
brackets)
** At an exchange rate of R9.00/US$
The Group has proven expertise in exploration, resource modelling, mine planning and reconciliation
methodologies for shallow and deep to ultra-deep underground mining operations. It constantly reviews
and considers the application of international leading practices in Mineral Resource Management at all its
operations and projects.
ESTIMATION PRINCIPLES
• Mineral Resource tonnages and grades are
estimated in situ over a minimum mining width,
and include mineralisation below the selected
cut-off grade to ensure that the Mineral
Resources comprise practical mining blocks
of adequate size and continuity. Measured
and Indicated Mineral Resources are reported
inclusive of those Mineral Resources modified
to produce Mineral Reserves;
• Mineral Reserves, are that portion of the
Mineral Resources, which technical and
economic studies have demonstrated can
justify extraction at the time of disclosure (to a
minimum pre-feasibility study level). Estimates
of tonnages and grades quoted as Mineral
Reserves include allowances for all mining
dilution, all other mining factors (modifying
06
factors) and consequently are reported as net
tons and grades delivered to the mill;
• Estimation and modelling processes protocol
includes the following:
• The Mineral Resource is divided into
domains based on the geology models.
The domains may be further sub-divided
in order to ensure homogeneity, which
are used as the basis for the geostatistical
estimation. Detailed exploratory data
analyses, including
sample verification, histogram and
cumulative frequency plots for
distributional analysis, additive
constant estimates, outlier checks,
trend analyses, and de-clustering are
carried out on individual domains;
• The main interpolation methodology
utilised is ordinary and simple Kriging
of various block sizes including macro
Kriging. Detailed checks are carried out
on the Kriged estimates by compiling
Kriging efficiencies and Kriging slopes
of regression on an individual Kriged
block basis;
• Variography studies are carried out on
point and regularised data. Relative
and traditional variograms are used
for Kriging purposes. The Resource
block widths are projections of the
stoping width (“SW”), and are estimated
using a study of the historical CW/SW
relationship derived from the stope
sampling records, with the exception of
Cooke where a planned mining cut is
applied; and
• Historical statistics are used as the
basis of the unavoidable un-pay mined
included in the Mineral Resource. The
historical percentage un-pay is then
added to the portion of blocks above
the pay limit, while ensuring there are
sufficient Mineral Resources available.
• All operations have documented the
guidelines and modifying factors that
underpin the Life of Mine (LoM) plans,
which are supported by mine designs
and schedules;
• A detailed one year operating and capital
cost budget is produced and, where
appropriate, extended for the LoM
production schedule. The operational plan
is prepared on a monthly basis, using
zero-based costing. Of critical importance
is the utilisation of historically achieved
data to estimate planned productivity and
operating cost;
• For the 2014 declaration only Measured
and Indicated Mineral Resources have
been included in any pre-feasibility or
feasibility study. No Inferred Mineral
Resources has been included in any of the
above-mentioned studies.
• Caution should be exercised when
interpreting the grade tonnage curves
presented. The ability to high-grade
(selectively mine) the deposits may be
precluded by the deposit geometry,
mining method and the need for practical
development of the ore body;
• Gold and uranium are reported separately,
therefore no gold equivalents are stated to
avoid potential anomalies because of yearon-year metal price differentials;
• Mineral Reserves are estimated using a
total cost (excluding capital) pay limit/cutoff grade at a margin, historic cost levels
and mining efficiencies at each operation.
The conversion ratio from Mineral
Resources to Mineral Reserves is further
affected by the following key factors:
• Mining quality factors, such as Mine Call
Factor (MCF) and dilution.
• Power and utility escalation has been
factored into all financial models;
• All financial models are based on
promulgated tax laws as at
31 December 2014;
• The Sibanye operations are entitled to mine
all declared material located within their
Mining Rights and all necessary statutory
mining authorisations and permits are
in place or have reasonable expectation
of being granted. However, the duration
taken for final approval may impact the
production schedules;
• Uranium is not the commodity of primary
interest and is only exploited in areas
where the primary commodity (in this case
gold) is of economic concern, hence the
uranium Mineral Resources are a subset of
the gold Mineral Resources and only where
the grades are sufficiently high to warrant
the extraction thereof; and
• All tabulated numbers represent Sibanye’s
total managed Mineral Resources and
Mineral Reserves unless otherwise
stated and all references to tons are
metric units.
• Mining constraints applied to the
extraction, based on the geometry of
the geological structures as presently
interpreted; and
RELATIONSHIP BETWEEN EXPLORATION RESULTS, MINERAL RESOURCES AND MINERAL RESERVES
(SAMREC CODE)
Exploration Results
Increasing
level of
geoscientific
knowledge
and confidence
Mineral Resources
Mineral Reserves
Reported as in situ
mineralisation estimates
Reported as mineable
production estimates
Inferred
Indicated
Probable
Measured
Proved
Consideration of mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors (the ‘modifying’ factors)
07
CORPORATE GOVERNANCE
CONTINUED
CODE OF PRACTICE
DISCOVERY AND EXPLORATION
The discovery of gold in quartz-pebble
conglomerates on the farm Langlaagte near
Johannesburg in March 1886 focused the
world’s attention on a sequence of rocks that was
to become the greatest source of gold on earth.
Initial activities were confined to outcrops but
prospectors quickly realised, through geological
synthesis and technological innovation, the
extension of these rocks under younger cover
rocks. Diamond drilling was used as early as
1889 and together with geophysical methods led
to the discovery of the Carletonville Goldfields
(West Wits Line) in the 1930s and the Welkom
Goldfields in 1946. After the initial discoveries,
extensive exploration, using a combination of
surface exploration drilling and geophysical
methods, led to the discovery of the Sibanye
operations (a detail history per operation is
captured on the back of the shareholders plan of
each operation which is attached as tear-outs at
the end of this document).
Exploration drilling during the discovery period
of the Sibanye operations and projects was
executed from surface, on irregular grids
of 500 to 2,000 metres depending on the
exploration strategy, depth of the mineralised
horizons and geological uncertainty. Once in
operation with underground access established,
infill grade control drilling is conducted from
access haulages and cross-cuts to provide a
30 to 100 metre grid depending on geological
requirements, evaluation and safety.
In the interests of proactive geological
understanding, Sibanye’s exploration strategy
includes the following:
i.Initial (discovery and secondary reefs) and
infill (resource definition enhancement)
exploration drilling (current and new projects);
ii.timeous prospect development;
iii.reducing localised uncertainty inherent to the
deposit at current operations;
iv.grade control drilling on current operations; and
v.exploratory visits to previously mined areas to
confirm structure and facies.
Image
Exploration drilling
08
A continuous Mineral Resource definition
programme is in place at each operation
and project to facilitate better planning and
optimisation with appropriate lead time, and to
ensure robust geological and evaluation models
that will underpin the resource definition of the
of the various reefs mined. The programme
will confirm the ore body potential in all areas
of operation, including secondary reefs and
minerals such as uranium.
QUALITY ASSURANCE AND QUALITY CONTROL
Sibanye upholds rigorous Quality Assurance and
Quality Control (QA/QC) procedures on all of its
exploration drilling and sampling programmes
(including underground chip sampling). It
follows industry best practice in data acquisition,
ensuring data reliability and utilises analytical
laboratories which are frequently reviewed,
both internally and externally. Analytical QA/
QC is maintained and enforced through the
submission of blanks, certified reference
material, duplicate samples, umpire laboratory
checks and frequent density measurements.
Laboratories currently used by Sibanye and their
related SANAS facility accreditation numbers are
as follow:
• Sibanye Analytical Laboratory (Driefontein)
Reg. no 2002/031431/07 (SANAS Facility
Accreditation No: T0379);
• SGS South Africa (Pty) Ltd (Booysens)
Reg. no. 1949/032643/07 (SANAS Facility
Accreditation No: T0169);
• Performance Laboratory (Randfontein)
Reg. no. 1996/01447/07 (now part of SGS)
(SANAS Facility Accreditation No: T0265);
• Performance Laboratory (Allanridge) Reg.
no. 1996/01447/07 (now part of SGS)
(SANAS Facility Accreditation No: T0385); and
• The process to achieve SANAS accreditation
for the Beatrix Analytical Laboratory (Reg. no
2002/031431/07) has commenced in 2014.
The QA/QC of borehole data is handled through
the Sibanye Borehole Management System.
This software is developed by Century Systems
and Datamine and comprises “DH Logger”
for borehole log inputs, and the “Fusion”
database. The underground gold assay values
are kept in digital format in Sibanye Integrated
Resource and Reserve Information System
(“IRRIS”) under the MineRP Sampling System.
The database integrity is maintained by the
initial authorisation of all sampling data. Final
submission of each sample into the IRRIS
database is only completed following
a series of checks and approvals in the
Borehole Management System or the MineRP
Sampling System.
The long mining history and the quantity and
quality of the data upon which the Mineral
Resource and Mineral Reserve estimates are
based, are sufficient to support the estimates as
derived. The Borehole Management and IRRIS
Systems provide an auditable trail from sampling
through to the Mineral Resource and Mineral
Reserve estimates.
MINERAL RESOURCE AND
MINERAL RESERVE EVALUATION
The Mineral Resource and Mineral Reserve
evaluation is based on systematic and
sustainable mineral reporting practices
compliant with the SAMREC Code. Data from
exploration drilling, underground mapping and
prospect drilling is used to generate or update
the geological models, which in turn are used
as the basis of each declaration. At current
operations, on-going grid-based sampling of all
development and stoping provides additional
data which is incorporated into a detailed
evaluation model (discussed in detail under
Estimation Principles).
Mineral Resource categories are based upon
the quantity, distribution and quality of data
available and confidence attached to the data,
i.e. drilling, mapping (geological understanding
and interpretation), sampling, analytical data and
geostatistical relationships. Drilling, sampling and
analytical QA/QC also plays a major part in the
data confidence applied for the final classification.
Peer reviews, together with internal and external
audits, ensure consistency and compliance with
regulatory codes. Mineral Resources and Mineral
Reserves are reported within each individual
mining or prospecting right and are adjusted to
show the separation between above (AI) and
below (BI) current shaft infrastructure.
Sibanye Mineral Resources and Mineral
Reserves are reviewed and audited on an ongoing basis by internal competent persons, with
formal audits conducted as follows:
• On-going technical review of all the operations
and projects; and
• Annual executive review of all operations
and projects.
In addition to the internal audits, the December
2014 statement were reviewed and audited
by external auditors CJM Consulting (Pty)
Ltd (Mineral Resources) and by Royal
HaskoningDHV (Mineral Reserves), and was
found to comply with the relevant codes. No
material shortcomings were identified in any
of the processes by which the Sibanye Mineral
Resources and Mineral Reserves were compiled
and evaluated.
The December 2014 declaration reports
on Mineral Resource and Mineral Reserve
information that is rated important for disclosure
and reflects a level of detail required for
competency, transparency and materiality
in reporting.
COMPETENT PERSONS AND DECLARATION CONSENT
The Competent Persons designated in terms of
SAMREC that take responsibility for the reporting
of Mineral Resources and Mineral Reserves are
the respective operation (per mining unit) and
project based Mineral Resource Manager or
Manager Geology. The Competent Persons have
sufficient experience relative to the type and
style of mineral deposit under consideration and
are full time employees of Sibanye. Competent
Persons consent and confirmation signatures
are presented in each individual Competent
Persons Report per operation and project, which
can be viewed on the company’s website at
www.sibanyegold.co.za. Operational and Project
based Competent Persons are acknowledged in
the pertinent section concerned in this Mineral
Resources and Mineral Reserves Supplement.
Corporate Governance on the overall compliance
of the company’s figures and responsibility
for the generation of a Group consolidated
statement has been overseen by the Libanon
Business Park Technical Services team listed
below. This team, who consent to the disclosure
of the C2015 Mineral Resource and Mineral
Reserve Statement, are permanent employees
of Sibanye, and function independently of the
operating mines and projects.
Competent Person
Title
Qualifications
Gerhard Janse van Vuuren 1
PMS0243
VP Mineral Resource
Management and Mine
Planning
B Tech (Mineral Resource
Management); GDE (Mining
Engineering); MBA; MSCC
27
Johan van Eeden 2
400043/09
Manager Geology
MSc (Geology)
31
Leon Tolmay 3
704140
Manager Evaluation
NHD (Mine Survey); GDE
(Mining Engineering); MSCC
38
S Wild 3
706556
Manager Mine Planning
GDE Mining Engineering;
NHD MRM
19
W de Klerk 1
PMS0233
Manager Survey
GDE Mining Engineering; MSCC;
ND Survey
32
1
Years
“Group consent
attained that the
Mineral Resources
and Mineral Reserves
reported in the
Supplement is
published in the
form and context it
was intended.”
Registered PLATO Members, 2 Registered SACNASP Members, 3 Registered SAIMM Members
Note: Details in respect of Professional Organisations to which the respective Competent Persons referred in the Mineral Resources and
Mineral Reserves Supplement to the Sibanye Integrated Annual Report 2014 are affiliated to, are listed at the end of the report under
Supplementary Information.
09
SECTION 1 GROUP CONSOLIDATED MINERAL RESOURCE AND RESERVE STATEMENT
MINERAL RESOURCES AND MINERAL
RESERVES ARE REPORTED IN
COMPLIANCE WITH THE SAMREC
CODE AND ARE CONSISTENT
WITH INDUSTRY BEST PRACTICES
FOR WITWATERSRAND GOLD
OPERATIONS.
10
Sibanye Mineral Resources and Mineral Reserves 2014
GROUP CONSOLIDATED MINERAL RESOURCE AND MINERAL RESERVE STATEMENT
42.046
Beatrix
Cooke 4
December 2013 (128.7Moz)
Driefontein
Kloof
RSO
6.459
6.475
18.828
22.880
0.283
7.785
7.140
11.202
9.334
Cooke 123
0.114
0
9.859
10
9.311
20
21.253
30
30.378
40
29.329
50
Gold (Moz)
The graphs depict the Group’s managed gold
and uranium Mineral Resources and Mineral
Reserves as at 31 December 2014, split per
operation and projects and compared to the
31 December 2013 declaration, which was
restated following the acquisition of Cooke and
Wits Gold.
Gold and Uranium Mineral Resource and
Mineral Reserve classification details are
itemised in the respective tables hereafter.
WRTRP
Projects
8.500
6.459
6.422
6.900
6.023
6.057
Beatrix
Cooke 123
2.088
0.230
0.685
Cooke 4
Driefontein
Kloof
0.114
0
0.629
2
1.157
1.210
4
3.669
6
3.631
Gold (Moz)
8
7.354
10
RSO
WRTRP
Projects
0
Cooke 123
December 2013 (282.3Mlb)
10.073
35.373
56.312
Beatrix (Beisa)
20.075
25
30.785
50
26.968
75
25.658
“Independently audited
and SAMREC compliant”
U308 (Mlb)
100
107.840
97.931
125
98.653
Cooke 4
WRTRP
Projects
97.411
125
75
Beatrix (Beisa)
Cooke 123
Cooke 4
WRTRP
0
0
1.826
3.566
0
0
Image
Cooke 4 Shaft
0
25
1.850
50
2.001
U308 (Mlb)
100
98.653
Projects
11
CONTINUED
All stated Mineral Resources and Mineral Reserves are net of 12 months production depletion with the acquisition declaration totals as at
31 December 2013, where appropriate, also tabulated for an appraised comparison.
CLASSIFIED GOLD MINERAL RESOURCE AND MINERAL RESERVE STATEMENT 1
Mineral Resources
Mineral Reserves
31 Dec
2013
31 Dec 2014
Gold
Classification
OPERATIONS
BEATRIX
Measured AI
Indicated AI
Inferred AI
Total AI
Indicated BI 2
Beatrix –
Total underground
COOKE 1, 2 AND 3
Measured AI
Indicated AI
Inferred AI
Cooke 1, 2 and 3 –
Total underground
COOKE 4
Measured AI
Indicated AI
Inferred AI
Total AI
Indicated BI 3
Cooke 4 –
Total underground
DRIEFONTEIN
Measured AI
Indicated AI
Inferred AI
Total AI
Indicated BI 4
Inferred BI 4
Total BI 4
Driefontein –
Total underground
KLOOF
Measured AI
Indicated AI
Total AI
Indicated BI 5
Inferred BI 5
Total BI 5
Tons
(Mt)
Grade
(g/t)
Gold
(Moz)
Gold
(Moz)
18.5
32.0
0.0
50.5
4.2
6.4
5.2
3.3
5.6
4.9
3.792
5.332
0.004
9.128
0.660
3.092
4.399
0.566
8.058
1.119
54.7
5.6
9.788
9.177
6.5
26.9
6.0
10.8
6.9
5.7
2.243
5.991
1.101
5.772
3.529
1.900
39.4
7.4
9.334
11.202
5.0
7.9
2.6
15.5
40.7
5.8
6.6
6.4
6.3
3.1
0.932
1.668
0.542
3.142
3.998
0.411
3.804
3.570
7.785
56.2
4.0
7.140
7.785
21.5
10.5
1.1
33.1
29.5
0.7
30.1
11.9
12.1
16.0
12.1
10.2
9.4
10.2
8.229
4.088
0.550
12.867
9.684
0.204
9.888
7.542
3.351
0.315
11.208
9.694
0.201
9.895
63.2
11.2
22.755
21.103
20.7
1.9
22.6
19.2
19.0
38.1
14.5
12.6
14.3
13.8
16.7
15.3
9.618
0.775
10.393
8.538
10.175
18.713
8.636
2.232
10.868
8.983
10.281
19.264
Kloof –
Total underground
60.7
14.9
29.106
30.132
Operations –
Total underground
274.2
8.9
78.124
79.398
12
31 Dec
2013
31 Dec 2014
Gold
Classification
Tons
(Mt)
Grade
(g/t)
Gold
(Moz)
Gold
(Moz)
OPERATIONS
BEATRIX
Proved AI
Probable AI
13.0
14.0
4.1
4.2
1.706
1.892
1.836
1.706
27.0
–
4.1
–
3.598
–
3.543
–
27.0
4.1
3.598
3.543
6.4
0.7
5.0
5.6
1.035
0.122
0.830
0.380
7.1
5.1
1.157
1.210
3.7
1.1
4.3
4.5
0.520
0.164
0.132
0.497
4.9
–
4.4
–
0.685
–
0.629
–
Total AI
Probable BI 2
Beatrix –
Total underground
COOKE 1, 2 AND 3
Proved AI
Probable AI
Total underground
COOKE 4
Proved AI
Probable AI
Total AI
Probable BI 3
Cooke 4 –
Total underground
DRIEFONTEIN
Proved AI
Probable AI
4.9
4.4
0.685
0.629
12.1
14.4
7.0
7.3
2.716
3.387
2.467
3.440
Total AI
Probable BI 4
26.6
5.5
7.1
6.3
6.103
1.126
5.907
–
5.5
6.3
1.126
–
32.1
7.0
7.228
5.907
11.3
12.8
24.1
2.1
8.1
7.9
8.0
7.9
2.932
3.243
6.175
0.532
3.599
2.178
5.777
–
2.1
7.9
0.532
–
Kloof –
Total underground
26.2
8.0
6.706
5.777
Operations –
Total underground
97.2
6.2
19.374
17.065
Total BI 4
Driefontein –
Total underground
KLOOF
Proved AI
Probable AI
Total AI
Probable BI 5
Total BI 5
Mineral Resources
Mineral Reserves
31 Dec
2013
31 Dec 2014
Gold
Classification
Tons
(Mt)
Grade
(g/t)
Gold
(Moz)
Gold
(Moz)
Beatrix (Indicated)
6.2
0.4
0.071
0.134
Randfontein Surface
(Measured)
7.3
0.4
0.086
Randfontein Surface
(Indicated)
2.2
0.4
0.028
Tons
(Mt)
Grade
(g/t)
Gold
(Moz)
Gold
(Moz)
Beatrix (Probable)
6.2
0.4
0.071
0.088
0.200
Randfontein Surface
(Proved)
7.3
0.4
0.086
0.190
0.072
Randfontein Surface
(Probable)
2.2
0.4
0.028
0.040
Driefontein (Probable)
6.8
0.6
0.125
0.150
SRD AND TSF
Randfontein Surface
(Inferred)
Driefontein (Indicated)
Kloof (Indicated)
Operations – Total
surface (SRD and TSF)
31 Dec
2013
31 Dec 2014
Gold
Classification
SRD AND TSF
–
–
–
0.011
6.8
0.6
0.125
0.150
13.1
0.5
0.223
0.246
Kloof (Probable)
10.3
0.6
0.194
0.246
0.813
surface (SRD and TSF)
32.7
0.5
0.504
0.715
35.5
0.5
0.533
Total Operations (Incl. SRD and TSF – Excl. Projects)
Total Operations (Incl. SRD and TSF – Excl. Projects)
OPERATIONS
OPERATIONS
Beatrix
60.9
5.0
9.859
9.311
Beatrix
33.2
3.4
3.669
3.631
Cooke
105.0
4.9
16.589
19.270
Cooke
21.3
2.8
1.955
2.069
Driefontein
70.0
10.2
22.880
21.253
Driefontein
38.9
5.9
7.354
6.057
Kloof
73.8
12.4
29.329
30.378
Kloof
36.5
5.9
6.900
6.023
309.7
7.9
78.657
80.211
(Incl. SRD and TSF)
129.9
4.8
19.878
17.780
(Incl. SRD and TSF)
PROJECTS
PROJECTS
BEISA NORTH 6
BEISA NORTH 6
Inferred
Beisa North –
Total underground
14.8
14.8
3.4
3.4
1.619
1.619
1.546
Probable
–
–
–
–
1.546
Beisa North –
Total underground
–
–
–
–
Probable
–
–
–
5.400
Bloemhoek –
Total underground
–
–
–
5.400
Probable
–
–
–
–
Burnstone –
Total underground
–
–
–
–
Probable
17.4
3.7
2.088
3.100
De-Bron Merriespruit –
Total underground
17.4
3.7
2.088
3.100
BLOEMHOEK 7
Indicated
Inferred
Bloemhoek –
Total underground
BLOEMHOEK 7
27.4
4.7
4.163
10.600
0.9
4.9
0.135
3.400
28.3
4.7
4.297
14.000
BURNSTONE
BURNSTONE
Indicated
25.4
5.3
4.350
–
Inferred
28.7
4.9
4.540
–
Burnstone –
Total underground
54.1
5.1
8.890
–
DE-BRON
MERRIESPRUIT 8
DE-BRON
MERRIESPRUIT 8
Indicated
Inferred
Total underground
23.0
4.5
3.307
7.500
5.3
4.2
0.715
3.400
28.3
4.4
4.022
10.900
13
CONTINUED
Mineral Resources
Mineral Reserves
31 Dec
2013
31 Dec 2014
Gold
Classification
Tons
(Mt)
Grade
(g/t)
Gold
(Moz)
Gold
(Moz)
HAKKIES AND ROBIJN 9
Gold
Classification
Tons
(Mt)
Grade
(g/t)
Gold
(Moz)
Gold
(Moz)
Probable
–
–
–
–
–
–
–
–
17.4
3.7
2.088
8.500
–
–
–
–
166.4
0.3
1.805
1.786
–
–
–
–
262.2
0.3
2.253
2.236
HAKKIES AND ROBIJN 9
Indicated
–
–
–
5.400
Inferred
–
–
–
10.200
Hakkies and Robijn –
Total underground
–
–
–
15.600
Total underground
42.046
Projects –
Total underground
Projects –
Total underground
125.5
4.7
18.828
WRTRP
Driefontein
(Measured)
31 Dec
2013
31 Dec 2014
WRTRP
166.4
0.3
1.805
1.786
–
–
–
–
Kloof (Measured)
262.2
0.3
2.253
2.236
Kloof (Indicated)
–
–
–
–
Driefontein
(Proved)
Kloof (Proved)
Kloof (Probable)
Cooke (Measured)
228.1
0.3
1.876
1.930
Cooke (Proved)
–
–
–
–
Cooke (Indicated)
52.3
0.3
0.524
0.524
Cooke (Probable)
280.4
0.3
2.401
2.400
709.0
0.3
6.459
6.475
WRTRP –
Total surface
709.0
0.3
6.459
6.422
48.521
Projects – Total
underground and
surface
726.4
0.4
8.547
14.922
128.733
Grand Total –
underground and
surface
856.3
1.0
28.425
32.702
WRTRP –
Total surface
Projects – Total
underground and
surface
Grand Total –
underground and
surface
834.5
1144.2
0.9
25.287
2.8 103.944
Al: Above Infrastructure; Bl: Below Infrastructure. Mineral Resources are inclusive of Mineral Reserves. All tons (t) relate to metric units. Rounding-off of figures may result in minor computational
discrepancies, where this happens it is not deemed significant.
Cut-off grades have been calculated in accordance with the SEC Guidelines and approximate the historic two to three year average commodity prices. Mineral Resources were declared at a premium
of 10% over the Mineral Reserve metal price. Gold Mineral Resources were determined at R460,000/kg and the Gold Mineral Reserves at R420,000/kg.
1
Managed, unless otherwise stated;
2
Beatrix Indicated Mineral Resources BI refers to material below 26 level (1,341 mbs);
3
Cooke 4 Indicated Mineral Resources BI refers to material within Cooke 4 Prospecting Right (Zuurbekom);
4
Driefontein Indicated and Inferred Mineral Resources and Probable Mineral Reserves BI refers to material below 50 level (3,300 mbs);
5
Kloof Indicated and Inferred Mineral Resources and Probable Mineral Reserves BI refers to material below 45 level (3,347 mbs);
6
he 2013 Mineral Resource at Beisa North is based on a Technical Report National Instrument 43-101 Technical Report, in accordance with Form 43-101F1 on behalf of Wits Gold, as compiled
T
by ExplorMine Consultants on 30 June 2009. The Competent Persons who prepared the statement were Andre Deiss BSc (Hons), Pr.Sci.Nat (Consulting Geologist), and Bill Northrop BSc (Hons),
MSc, PhD, GDE, Pr.Sci.Nat., FGSSA, FSAIMM (Consulting Geostatistician) and Garth Mitchell BSc (Hons), BCom, Pr.Sci.Nat., MSAIMM, MGSSA (Consulting Geologist);
7
he 2013 Bloemhoek Project Mineral Resources and Mineral Reserves are based on a Technical Report National Instrument 43-101 Technical Report, in accordance with Form 43-101F1 on
T
behalf of Wits Gold, compiled by Turnberry Projects (Pty) Ltd in September 2009. The Qualified Persons for the preparation of this pre-feasibility study report were Gordon Cunningham and Timothy
Spindler;
8
he Competent Person designated in terms of SAMREC, who took responsibility for the reporting of the De-Bron Merriespruit Project Mineral Reserves as at 20 August 2013, was Mr JHK Hudson,
T
Principal Engineer employed by Royal HaskoningDHV. The Competent Person designated in terms of SAMREC, who took responsibility for the reporting of the De-Bron Merriespruit Project gold
Mineral Resources as at 20 August 2013, was Mr G Gilchrist, BSc (Hons) Geology, MGSSA, Pr.Sci.Nat. The gold Mineral Resources and Mineral Reserves at this project were determined at a cutoff of 300cm.g/t. This 2013 Mineral Resource and Mineral Reserve statement was declared by Wits Gold and was deemed compliant with the SAMREC Code; and
9
he Competent Person designated in terms of SAMREC, who took responsibility for the reporting of the Hakkies & Robijn Projects Mineral Resources as at 6 September 2013, was
T
Mr M Burnett, Principal Consultant at Snowden. The total gold 2013 Mineral Resources at these projects were determined at a cut-off of 300cm.g/t. This 2013 Mineral Resource and Mineral
Reserve statement as declared by Wits Gold was deemed compliant with the SAMREC Code.
14
CLASSIFIED URANIUM MINERAL RESOURCE AND MINERAL RESERVE STATEMENT1
Mineral Resources
Mineral Reserves
31 Dec
2013
31 Dec 2014
Uranium
Classification
Tons
(Mt)
Grade
(kg/t)
U 3O 8
(Mlb)
U 3O 8
(Mlb)
Uranium
Classification
Tons
(Mt)
OPERATIONS
OPERATIONS
BEATRIX (BEISA)
BEATRIX (BEISA)
Measured AI
3.6
1.086
8.548
–
Indicated AI
7.8
1.069
18.330
13.867
Inferred AI
0.0
1.101
0.090
11.791
11.4
1.074
26.968
25.658
Beatrix (Beisa) –
Total underground
COOKE 1, 2 AND 3
31 Dec
2013
31 Dec 2014
Grade
(kg/t)
U 3O 8
(Mlb)
U 3O 8
(Mlb)
Proved AI
–
–
–
–
Probable AI
–
–
–
–
Beatrix (Beisa) –
Total underground
–
–
–
–
COOKE 1, 2 AND 3
Measured AI
2.2
0.512
2.457
17.828
Proved AI
2.6
0.322
1.814
0.920
Indicated AI
7.5
0.598
9.871
10.755
Probable AI
0.2
0.408
0.187
0.930
–
–
–
2.203
9.7
0.579
12.328
30.785
Total underground
2.8
0.329
2.001
1.850
Inferred AI
Total underground
COOKE 4
COOKE 4
Measured AI
2.2
0.666
3.240
4.174
Proved AI
1.5
0.475
1.574
1.209
Indicated AI
4.9
0.563
6.117
6.211
Probable AI
0.3
0.345
0.252
2.357
Inferred AI
1.1
0.288
0.717
9.691
Total AI
8.3
0.553
10.073
20.075
Total AI
1.8
0.452
1.826
3.566
35.9
0.555
43.984
–
Indicated BI
2
Cooke 4 –
Total underground
44.2
0.555
54.057
Operations –
Total underground
65.2
0.649
93.353
–
–
–
–
20.075
Cooke 4 –
Total underground
Probable BI
1.8
0.452
1.826
3.566
76.519
Operations –
Total underground
4.6
0.378
3.827
5.416
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total underground
–
–
–
–
Projects –
Total underground
–
–
–
–
PROJECTS
PROJECTS
BEISA NORTH 3
BEISA NORTH 3
Inferred
14.8
1.084
35.373
47.840
Beisa North –
Total underground
14.8
1.084
35.373
47.840
BLOEMHOEK 4
BLOEMHOEK 4
Inferred
–
–
–
20.900
Bloemhoek –
Total underground
–
–
–
20.900
DE-BRON MERRIESPRUIT
–
–
–
8.200
Inferred
–
–
–
4.600
Total underground
–
–
–
12.800
–
–
–
26.300
Total underground
–
–
–
26.300
14.8
1.084
35.373
107.840
5
Probable
Total underground
HAKKIES & ROBIJN
6
Inferred
Projects –
Total underground
Bloemhoek –
Total underground
DE-BRON MERRIESPRUIT
5
Indicated
HAKKIES & ROBIJN
Beisa North –
Total underground
6
15
CONTINUED
Mineral Resources
Mineral Reserves
31 Dec
2013
31 Dec 2014
Uranium
Classification
Tons
(Mt)
Grade
(kg/t)
U 3O 8
(Mlb)
U 3O 8
(Mlb)
WRTRP
Driefontein
(Measured)
Kloof (Measured)
Kloof (Indicated)
158.2
0.064
22.326
21.764
–
–
–
–
Grade
(kg/t)
U 3O 8
(Mlb)
U 3O 8
(Mlb)
–
–
–
–
0.064
22.326
21.764
262.2
0.038
22.071
21.391
–
–
–
–
262.2
0.038
22.071
21.391
–
–
–
44.320
Cooke (Probable)
280.4
0.088
54.256
9.936
WRTRP –
Total surface
700.8
0.064
98.653
97.411
205.771
Projects – Total
underground and surface
700.8
0.064
98.653
97.411
282.290
Grand Total –
705.4
0.066 102.480
102.827
–
–
–
–
0.088
44.320
44.840
Cooke (Indicated)
52.3
0.086
9.936
9.936
Grand Total –
Tons
(Mt)
158.2
228.1
Projects – Total
Uranium
Classification
WRTRP
Cooke (Measured)
WRTRP –
Total surface
31 Dec
2013
31 Dec 2014
700.8
715.6
780.8
0.064
98.653
0.085 134.026
0.132 227.379
97.931
Driefontein (Proved)
Kloof (Proved)
Kloof (Probable)
Cooke (Proved)
Al: Above Infrastructure. All tons (t) relate to metric units. Mineral resources are inclusive of Mineral Reserves. Rounding-off of figures may result in minor computational discrepancies, where this
happens it is not deemed significant. For Uranium Mineral Reserves a long-term contract price of R1 110/kg was used.
1
Managed, unless otherwise stated;
2
Cooke 123 Indicated Mineral Resources BI refers to material within Cooke Prospecting Right (Zuurbekom);
3
The 2013 Mineral Resource at Beisa North is based on a Technical Report National Instrument 43-101 Technical Report, in accordance with Form 43-101F1 on behalf of Wits Gold, as compiled
by ExplorMine Consultants on 30 June 2009. The Qualified Competent Persons who prepared the statement were Andre Deiss BSc (Hons), Pr.Sci.Nat (Consulting Geologist), and Bill Northrop BSc
(Hons), MSc, PhD, GDE, Pr.Sci.Nat., FGSSA, FSAIMM (Consulting Geostatistician) and Garth Mitchell BSc (Hons), BCom, Pr.Sci.Nat., MSAIMM, MGSSA (Consulting Geologist). A U3O8 cut-off of
50 cm.kg/t has been applied to determine the Uranium Mineral Resources;
4
The 2013 Bloemhoek Project Mineral Resources and Mineral Reserves are based on a Technical Report National Instrument 43-101 Technical Report, in accordance with Form 43-101F1 on
behalf of Wits Gold, compiled by Turnberry Projects (Pty) Ltd in September 2009. The Qualified Persons for the preparation of this pre-feasibility study report were Gordon Cunningham and
Timothy Spindler;
5
The Competent Person designated in terms of SAMREC, who took responsibility for the reporting of the De-Bron Merriespruit Project Mineral Reserves as at 20 August 2013, was Mr JHK Hudson,
Principal Engineer employed by Royal HaskoningDHV. The Competent Person designated in terms of SAMREC, who took responsibility for the reporting of the De-Bron Merriespruit Project gold
Mineral Resources as at 20 August 2013, was Mr G Gilchrist, BSc (Hons) Geology, MGSSA, Pr.Sci.Nat. This 2013 Mineral Resource and Mineral Reserve statement was declared by Wits Gold and
was deemed compliant with the SAMREC Code; and
6
The Competent Person designated in terms of SAMREC, who took responsibility for the reporting of the Hakkies and Robijn Projects Mineral Resources as at 6 September 2013, was
Mr M Burnett, Principal Consultant at Snowden. This 2013 Mineral Resource and Mineral Reserve statement as declared by Wits Gold was deemed compliant with the SAMREC Code.
Image
Beatrix SRD mining
16
SECTION 1 GROUP MINERAL RESOURCE AND MINERAL RESERVE DEPLETION AND GROWTH
GROUP MINERAL RESOURCE AND MINERAL RESERVE DEPLETION AND GROWTH
Key aspects that impacted the Sibanye
31 December 2014 Mineral Resource and Mineral
Reserve Statement are summarised below:
• Economically extractable gold Mineral
Reserves from current operations have
increased by 12% to 19.878Moz (net of
1.723Moz production depleted from mining in
2014). The gold Mineral Resources from the
current operations have decreased by 2% to
78.657Moz;
• Underground gold Mineral Reserves increased
by 2.308Moz, net of production depletion,
following the successful conclusion of prefeasibility studies on various organic growth
projects at the operations;
• The 12% increase in gold Mineral Reserves
is primarily a result of an additional
1.657Moz of gold Mineral Reserves
being declared at the Driefontein 5 and
Kloof 4 shafts, following the completion
of pre-feasibility studies (PFS) on below
infrastructure “Drop-down Projects”.
Development of these brownfield projects
will substantially enhance the life of these
key operations. Definitive feasibility studies
(DFS) for these projects are in progress and
will be completed during 2015; and
• An additional 0.978Moz from so-called
“secondary reefs” and white areas were
also declared. Studies to bring more of
these potential Mineral Resources to
account are on-going.
• A maiden gold Mineral Resource of 54.1Mt
at an average grade of 5.1g/t (8.890Moz) at
the recently acquired Burnstone Project has
been declared;
• The geological model at the Burnstone
Project has been significantly revised
after extensive re-logging of existing
surface boreholes, combined with
additional information from infill drilling
and a thorough review of all available
data. The revised model is consistent with
the characteristics of similar ore bodies
in the East Rand Basin, affording greater
confidence in the interpretation and
underpinning the gold Mineral
Resource estimate.
• Mineral Resources and Mineral Reserves
at the Company’s West Rand Tailings
Retreatment Project (“WRTRP”) remain
largely unchanged year-on-year. This project
is currently the subject of a DFS that will be
completed during the March 2015 quarter;
• Since acquiring Wits Gold in April 2014,
Sibanye has reviewed the geology and/or
LoM models of the De-Bron Merriespruit,
Bloemhoek, Hakkies and Robijn, as well
as the Beisa North and South Projects in
the Southern Free State Goldfields and
re-estimated the Mineral Resources in
accordance with the Group’s protocols
and procedures;
• At the De-Bron Merriespruit Project, the
application of Sibanye’s resource estimation
protocols and procedures resulted in
gold Mineral Resources declining from
10.900Moz to 4.022Moz. Gold Mineral
Reserves also declined from 3.100Moz
to 2.088Moz. The gold Mineral Reserves
for the De-Bron Merriespruit Project
were derived from the original feasibility
study previously conducted by Royal
HaskoningDHV in 2013. During 2015,
Sibanye intends undertaking a full review of
this feasibility study with a view to optimise
any potential synergies with the Beatrix
Operations; and
QUALITY MINERAL RESERVES
ARE THE FOUNDATION OF WEALTH
AND FUTURE SECURITY OF
SIBANYE, AND MINERAL RESERVE
SUSTAINABILITY IS RELIANT ON
A SOUND BROWNFIELDS AND
GROWTH PROJECT STREAM.
• New geological models, incorporating
borehole data from both Wits Gold and
Beatrix has resulted in a complete revision
of the geological model for the Bloemhoek
Project. This, together with the application of
Sibanye’s Mineral Resource
estimation protocols and higher cut-off
grades, has resulted in the gold Mineral
Resources decreasing from 14.000Moz
to 4.297Moz. The Group is reviewing the
economic viability of accessing part of the
Bloemhoek Mineral Resource by using
the existing underground infrastructure of
Beatrix 3 Shaft. No gold Mineral Reserves
will be declared on the Bloemhoek Project
until these studies have been completed.
• Uranium production from the Cooke operation
continued uninterrupted from June 2014
under Sibanye management. The additional
information derived during mining, combined
with revised uranium Mineral Resource
estimates resulted in uranium Mineral
Resources and Mineral Reserves increasing
at the Cooke 1, 2 and 3 operations. At Cooke
4, uranium Mineral Reserves were negatively
impacted due to reduced ore reserve
development during the Section 189 process.
This will be reconsidered subject to on-going
operational profitability; and
• The uranium Mineral Resources contained at
Beatrix’s Beisa Project increased marginally
to 26.968Mlb (25.658Mlb). The application
of Sibanye’s Mineral Resource estimation and
declaration protocols resulted in a decrease
in the uranium Mineral Resource at the Beisa
North Project from 47.840Mlb to 35.373Mlb.
17
CONTINUED
Gold Mineral Resource Reconciliation
Item
Moz
31 December 2013*
128.733
2014 Depletion
(1.923)
Post Depletion
126.810
Changes in estimation models at Operations
4.177
Changes in geology structure at Operations
2.451
Changes in Mineral Resource modelling at Operations
(0.847)
Changes in pay limits primarily at Cooke Operation
(9.271)
Beisa North Project changes based on new data and pay limit
0.073
Bloemhoek Project changes in geology facies and pay limit
(9.703)
De-Bron Merriespruit (DBM) Project changes in pay limit
(6.878)
Cooke additions (Zuurbekom)
3.980
Uneconomic surface sources at Randfontein Surface Operations (RSO)
(0.121)
Changes in WRTRP TSFs during 2014
(0.017)
Specific Inclusions:
Burnstone Project maiden Mineral Resources
8.890
Specific Exclusions:
Hakkies & Robijn Projects do not meet base case pay limit
(15.600)
31 December 2014
103.944
*Restated in June 2014 after the acquisition of Cooke and Wits Gold
Gold Mineral Resource Reconciliation
150
18
2.451
(0.847)
(1.923)
(9.271)
0.073
8.890
(15.600)
(9.703)
90
3.980
(0.121) (0.017)
(6.878)
103.944
128.733
110
4.177
70
Dec 2014
WRTRP deposition
RSO
Cooke additions
DBM
Burnstone
Bloemhoek
Beisa North
Hakkies & Robijn excluded
Pay limit
Modelling
Geology structure
Estimation
Depletion
50
Dec 2013
“Since becoming
an independent
company, Sibanye has
delivered an operating
and financial
performance, which
has exceeded market
expectations.”
Gold (Moz)
130
Gold Mineral Reserve Reconciliation
Item
Moz
31 December 2013*
32.702
2014 Depletion
(1.723)
Post Depletion
30.979
Changes in geology structure at Operations
(0.018)
Changes in estimation models at Operations
0.806
Specific Inclusions:
• Inclusion of additional secondary reefs at Driefontein and Kloof Operations
0.333
• White Areas and general additions primarily at Kloof due to tail management and
at Beatrix West Section due to cost rationalisation
0.645
• Driefontein 5 Shaft Drop-down (D5 DD) Project included following the completion
of a PFS in 2014
1.126
• Kloof 4 Shaft Drop-down (K4 DD) Project included following the completion of a
PFS in 2014
0.532
• Deposition to those active TSFs which form part of the WRTRP during 2014
0.037
Specific Exclusions:
• Bloemhoek Project excluded based on revised geology and evaluation models
(5.400)
• Selective evaluation method applied to De-Bron Merriespruit (DBM) Project along
with updated modifiers and cost estimates
(1.012)
• Uneconomic surface sources at RSO
(0.051)
Technical Factors (MCF, % Waste Mining, etc.)
0.448
31 December 2014
28.425
40
0.645
1.126
0.532
(0.037)
(0.018)
(5.400)
0.448
(1.012)
(0.051)
28.425
(1.723)
0.333
20
Dec 2014
Technical factors
RSO
DBM revised
Bloemhoek excluded
WRTRP deposition
K4 DD
D5 DD
White areas
Secondary reefs
Estimation
Geology structure
0
Depletion
10
Dec 2013
Gold (Moz)
30
32.702
0.806
“During 2014 the
company further
increased its Mineral
Reserves and
extended its LoM
production profile.”
19
CONTINUED
Uranium Mineral Resource Reconciliation
Item
Mlb
31 December 2013*
282.290
2014 Depletion
(0.299)
Post Depletion
281.991
Changes in geology structure
1.099
Changes in estimation models
9.557
Changes in pay limit
(49.972)
Projects included (Zuurbekom)
43.984
Projects excluded (DBM, Bloemhoek and Hakkies)
(60.000)
Deposition to active TSFs which form part of the WRTRP during 2014
0.722
31 December 2014
227.379
Uranium Mineral Resource Reconciliation
400
9.557
Depletion
43.984
(1.099)
0.722
(49.972)
(60.000)
227.379
282.290
200
(0.299)
Dec 2013
U3O8 (Mlb)
300
100
Image
Beatrix No 1 processing plant
20
Dec 2014
WRTRP
Projects excluded (DBM,
Bloemhoek and Hakkies)
Projects included
(Zuurbekom)
Pay limit
Estimation
Geology
0
Uranium Mineral Reserve Reconciliation
Item
Mlb
31 December 2013*
102.827
2014 Depletion
(0.218)
Post Depletion
102.609
Changes in Mineral Resource models
(0.594)
Inclusion of additional areas at Cooke 3 following a revised geological model
0.926
Exclusions at Cooke 4 due to a change in mining ratio between
Middle Elsburg (ME) and Upper Elsburg (UE)
(1.794)
Deposition to active TSFs which form part of the WRTRP during 2014
1.242
Technical Factors (MCF, % Waste Mining, etc.)
0.091
31 December 2014
102.480
(0.091)
102.480
Dec 2014
Depletion
1.242
(0.594)
Technical factors
102.827
100
0.926
(0.218)
Dec 2013
U3O8 (Mlb)
105
(1.794)
95
WRTRP
Cooke 4 changes
Models
Cooke 3 add
90
GOLD MINERAL RESERVE SENSITIVITY
The sensitivity of Mineral Reserve ounces at all the operations is shown in the accompanying chart at
-10%, -5%, Base (R420 00), +5% and +10%, and are derived from a factored application of the base
case scheduled Mineral Reserve, reflecting the impact of a changing gold price on the prevailing cut-offs.
The Mineral Reserve sensitivities are not based on detailed depletion schedules and should be
considered on a relative and indicative basis only. WRTRP included across the range at the base
declaration price and growth projects (Beisa North, Beatrix Beisa, Bloemhoek and Burnstone) brought
in at 10% increase in Mineral Reserve price.
Managed Gold Mineral Reserve Sensitivities
40
Gold (Moz)
30
20
10
0
5.576
2.088
6.305
6.603
6.901
2.088
7.199
6.945
1.833
3.469
7.121
7.354
1.956
3.669
7.704
2.030
3.784
8.084
1.889
3.563
6.459
6.459
6.459
6.459
6.459
2.088
-10%
-5%
R420,000
5%
7.497
2.112
3.905
10%
Gold Price (R/kg)
WRTRP
Beatrix
Cooke
Driefontein
Kloof
DBM
Projects
21
SECTION 2 OPERATIONS AND PROJECTS
OPERATIONS AND PROJECTS
SIBANYE IS THE LARGEST INDIVIDUAL PRODUCER OF GOLD
FROM SOUTH AFRICA AND IS ONE OF THE 10 LARGEST
GOLD PRODUCERS GLOBALLY. IN 2014, THE GROUP
PRODUCED 1.59MOZ (49,432KG) OF GOLD AT AN ALL-IN
COST OF R372,492/KG (US$1.071/OZ).
BEATRIX
COOKE
DRIEFONTEIN
FAR WEST RAND
• Cooke
• Driefontein
• Kloof
• Randfontein Surface
• WRTRP
Limpopo
N1
Mpumalanga
North West
Randfontein
Westonaria
Carletonville
Potchefstroom
N12
FREE STATE
• Beatrix
• De-Bron Merriespruit
• Bloemhoek
• Hakkies and Robijn
• Beisa North and South
Welkom
Johannesburg
Balfour
Parys
Virginia
N3
Theunissen
Free State
KwaZulu-Natal
Bloemfontein
Northern Cape
N1
Lesotho
Durban
SOUTH RAND
• Burnstone
Eastern Cape
Cape Town
22
Western Cape
KLOOF
SECTION 2 OPERATIONS PROJECTS
Capex
Main development
Operating profit
Area mined
Gold produced
Yield
10,354kg
2.3g/t
Capex
Main development
R548m
R1,362m
R230m
19,733m
384,701m2
9,508m
Operating profit
Area mined
Gold produced
Yield
Capex
Main development
Operating profit
Area mined
Gold produced
Yield
Capex
Main development
Operating profit
Area mined
Gold produced
Yield
R189m
4,305kg
R1,149m
R2,917m
17,735kg
R1,236m
R3,001m
17,038kg
175,627m2
1.2g/t
17,376m
374,914m2
3.3g/t
OVERVIEW
Sibanye’s portfolio of operating
assets includes the Beatrix,
Driefontein and Kloof
Operations and the Cooke
Operation acquired from
Gold One in May 2014. The
Cooke Operation consists of
the Cooke 1, 2 & 3 Shafts
underground operation (Cooke
123), the Cooke 4 or Ezulwini
Shaft underground operation
(Cooke 4) and the Randfontein
Surface Operation that reclaims
sand and slime tailings in the
Randfontein area (RSO).
at the Group operations
increased by 2.097Moz or
12% to 19.878Moz, from
the 17.780Moz declared at
31 December 2013, despite
a production depletion of
1.723Moz in 2014. The historic
Kloof, Driefontein and Beatrix
Operations produced 45,127kg
(1.45Moz) of gold during the
year, which was just over
1% higher than in 2013. The
Cooke Operation contributed
4,305kg (138,400 ounces)
during the seven months
of incorporation in Sibanye.
Uranium production from the
Cooke Operation continued
uninterrupted from May 2014,
resulting in a stockpile of
approximately 180,000
pounds uranium at year-end.
18,743m
304,930m2
3.7g/t
“A proudly
South African
mining
company”
23
OPERATIONS AND PROJECTS
CONTINUED
GEOLOGICAL SETTING AND MINERALISATION
Gold was first discovered near Johannesburg
in March 1886 with the recognition of gold
in quartz-pebble conglomerates (traditionally
termed “reefs”) contained in a ~6,000 metre
thick succession of principally argillaceous and
arenaceous sediments in a sedimentary basin
called the Witwatersrand Basin.
The Basin is geographically located in the central
north to north-eastern part of South Africa and
extends from Johannesburg in the north to some
40 kilometres south of Welkom, and covers an
area of approximately 70,000 square kilometres.
More than 150 mines have operated in the
Basin since gold was first discovered, producing
primarily gold, but since the early 1950s,
uranium as well. Together, these mines have
produced approximately 150,000 tons of uranium
and more than 46,000 tons of gold, amounting
to no less than 39% of all gold ever mined in the
world (in excess of 4.5 billion tons of ore, with
an average grade of 9 g/t – after Handley, 1990,
1995). The Sibanye operations are hosted in this
unique and renowned basin, which remains the
world’s largest gold producing region.
The Sibanye operations and projects are
located in three geographical regions of the
Witwatersrand Basin, namely the Far West
Rand Goldfield (West Rand and West Wits Line),
some 30 to 80 kilometres west to southwest of
Johannesburg, the Free State Goldfield, 240
kilometres southwest of Johannesburg and
the South Rand Goldfield, some 75 kilometres
south-east of Johannesburg. The operations of
the Far West Rand Goldfield are the Driefontein,
Kloof and Cooke Operations between the
towns of Carletonville and Randfontein, in the
Free State Goldfield, the Beatrix Operation
near Virginia and in the South Rand Goldfield,
the Burnstone Project near Balfour some 30
kilometres east of Heidelberg.
The basin is overlain by outliers of Karoo
Supergroup shales and sandstones at the
surface, followed by Pretoria Group sediments
and the Chuniespoort Group dolomites.
The dolomite overlies the Klipriviersberg
Group volcanic rocks, which in turn cap the
Ventersdorp Contact Reef (VCR) and sediments
of the Central Rand Group that host the other
gold bearing reefs exploited.
Image
Cooke A1 Reef
24
The reefs, which are generally less than
2 metres thick, are widely considered to
represent extensive fluvial deposits into a yoked
basin. The gold is mainly of detrital origin,
deposited syngenetically with the conglomerates
interrelated with sedimentary features such as
unconformities and fluvial channels. 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 intra-cratonic lake or
shallow inland sea.
Although the gold generally occurs in native form
and is usually associated with pyrite, carbon
and uranium, most of it has been subsequently
modified and remobilised during secondary
hydrothermalism. This has informed the use
of the Modified Palaeo-placer Model, which
emphasises a control on the occurrence of ore
minerals by placer-forming mechanisms, while
accepting some modification by metamorphism.
It is the generally accepted model for the origin
of gold and uranium mineralisation of the
Witwatersrand Basin.
For several decades, models using
sedimentological principles have been
successfully used to define gold distribution
on mine properties. The most fundamental
control to the gold distribution remains the
association with quartz-pebble conglomerates
on intra-basinal unconformities. The reefs are
continuous, as a consequence of the regional
nature of the erosional surfaces. Bedrock
(footwall) controls govern the distribution
of many of the reefs. Consequently, the
identification and modelling of erosional/
sedimentary features is the key to in situ
resource estimation.
As early as 1923, the presence of uranium was
noted in the Witwatersrand conglomerates. The
changing economics regarding uranium near
the end of World War II prompted a second look
at the Witwatersrand conglomerates as a source
of supply. It was found that on average the
conglomerates contain about 0.03% uranium
and as a by-product of gold relatively low
uranium grades can be recovered.
Notwithstanding different opinions as to the
origin of the uranium in the conglomerates
of the Witwatersrand Basin, most theories
accept localisation of both gold and uranium
as a function of sedimentary textures. Metal
concentrations are directly related to the
conglomerates and exploration programmes and
eventual evaluation of uranium according to a
placer philosophy, prove to be highly successful.
SCHEMATIC DEPOSITIONAL MODEL OF THE WITWATERSRAND BASIN
EXPLORATION ACTIVITIES 2014
Over the past 12 months, on-mine exploration activities focused mainly on Mineral Resource definition
drilling, the timeous conversion of Mineral Resources to Mineral Reserves, delineating secondary
reef potential and exploring white areas. The table below summarises exploration metres drilled
and expenditure for the 12 months ending 31 December 2014 with the C2013 details added for a
comparison.
Exploration drilling details for 12 months ending 31 December 20141
2014
2013
Metres
drilled
Expenditure
R (million)
Metres
drilled
Expenditure
R (million)
11,067
12.261
7,966
6.295
16,370
16.403
15,868
12.636
4,117
4.914
2,251
2.970
Driefontein
21,560
25.319
18,211
16.003
Kloof
Operation
Beatrix 2
Cooke 1, 2 & 3
3
Cooke 4 3
16,974
14.937
22,762
17.616
Burnstone 4
1,354
1.852
–
–
WRTRP
4,260
0.397
–
–
–
–
9,910
12.701
75,702
76.083
76,968
68.221
5
Zuurbekom 6
Total
1
Figures are exclusive of cover drilling;
2
Includes Mineral Resource conversion drilling conducted for the Beisa Project;
3
Cooke 1, 2 & 3 and Cooke 4 pre-acquisition numbers added for completeness;
4
Mineral Resource definition drilling conducted at Burnstone;
5
Driefontein TSF 3 and 5 bulk sample project for metallurgical test work; and
6
Exploration activities on the Zuurbekom Prospecting Right.
“Group investment
in on-lease
exploration is
focused on Mineral
Reserve replacement
and Mineral
Resource definition
drilling”
25
SECTION 2 THE BEATRIX OPERATION
THE BEATRIX OPERATION
SIBANYE’S ACQUISITION OF THE
WITS GOLD ASSETS CONTIGUOUS
TO BEATRIX CONSOLIDATED
ITS POSITION IN THE
SOUTHERNMOST EXTENT OF THE
WITWATERSRAND BASIN.
THE CURRENT LOM MINERAL
RESERVES OF BEATRIX ARE
ESTIMATED TO SUSTAIN THE
OPERATION UNTIL 2028.
Gold Mineral Resources 9.859Moz
(+5.9% post production depletion of
0.383Moz)
Uranium Mineral Resources 26.968Mlb
(+5.1% year-on-year)
Gold Mineral Reserves 3.669Moz
0.345Moz)
Strategic intent:
• Extend the Life of Mine
• Stabilise production profiles at current
performance levels
• Reduce pay limits through quality
mining and cost reduction
• Fast track Mineral Resource to Mineral
Reserve conversion
• Beisa optimisation studies in progress
• Regional synergies with the
acquisition of Wits Gold focused on
value creation
26
LOCATION
Mining Right
Towns
Main roads
Arterial roads
WELKOM
BEISA
NORTH
VIRGINIA
HAKKIES
DE-BRON
MERRIESPRUIT
BEATRIX
OPERATION
BLOEMHOEK
ROBIJN
BEISA
SOUTH
N
Coordinates
Latitude: 28° 15’00”S
Longitude: 26° 47’00”E
OVERVIEW
Beatrix is a large, established, shallow to deep
level gold mine, operating under a Mining Right
[DMR Ref. FS30/5/1/2/2(81)MR] valid from
07 February 2007 to 06 February 2019, covering
a total area of 16,835 hectares. The Beatrix
Mining Right was amended during the year,
with the exchange of ground along the common
boundary between Beatrix and Joel [ARMgold/
Harmony Freegold Joint Venture Company
(Proprietary) Limited]. The current LoM plan of
Beatrix continues beyond 2019, however, Beatrix
in the near future, intends to apply for a Mining
Right renewal in terms of Section 24 of the
Mineral and Petroleum Resources Development
Act, 2002 (Act No. 28 of 2002).
Geographically Beatrix is located in the southern
portion of the Free State Goldfields of the
Witwatersrand Basin near the towns of Welkom
0
5km
Gauss Conform Projection
Central Meridian 27°
THEUNISSEN
and Virginia, approximately 240km southwest of
Johannesburg in the Free State Province of South
Africa. The topography of the area is relatively
flat, situated in a semi-arid region. Pre-mining
conditions were generally that of farmlands, where
the natural vegetation had been removed and
replaced with cultivated crops.
The current mine infrastructure consists of
three producing shaft complexes that mine
open ground and pillars (white areas), with the
deepest operating level some 2,055 metres
below surface (22 Level at 4 Shaft), and two
gold processing plants. The principal mining
takes place on the Beatrix Reef (BXR and local
facies variations thereof, which includes the VS5
and Aandenk Reefs), which constitutes almost
69% of the Mineral Reserve ounces and the
Kalkoenkrans Reef (KKR) 29%. The remaining
2% is derived from surface sources.
Image
Beatrix 1 Shaft
27
CONTINUED
SCHEMATIC 3D SECTION THROUGH THE BEATRIX ORE BODY LOOKING NORTH-NORTHEAST
ASSET FUNDAMENTALS
Mineralisation style
Palaeo-placer
Mineralisation characteristics
i. Hosted by auriferous and uraniferous predominantly quartz pebble conglomerates (reefs);
ii. Laterally continuous with relatively long-range predictability; and
iii. Clear patterns of mineralisation governed by sedimentary characteristics.
Deposit type
Shallow to intermediate-depth gold mine exploiting the Beatrix and the underlying Kalkoenkrans Reefs, both of
the Kimberley Conglomerate Formation.
Licence status and holdings
Beatrix has a new order mining right in terms of the Minerals and Petroleum Resources Development Act, No
28, 2002 (MPRDA), valid from 7 February 2007 to 6 February 2019 in respect of a mining area totalling 16,835
hectares. Application for an extension of the mining right will be applied for in due course. All required operating
permits have been obtained, and are in good standing.
Infrastructure
Three shaft complexes (one sub-shaft).
Mining method
Conventional breast mining, scattered mining, some pillar mining and surface rock dump mining.
Mineral processing
Two gold plants:
i. No. 1 CIL Plant – Processing underground ore and low-grade surface rock dump material; and
ii. No. 2 CIL Plant – Processing underground ore and low-grade surface rock dump material.
Tailings disposal
Two tailing storage facilities with LoM deposition estimated at 33.2Mt against a combined capacity of 122.0Mt
(surplus of 88.8Mt).
Climate
No extreme climate conditions are experienced that may affect mining operations.
Environmental/Health and
Saftety
Beatrix’s systems, procedures and training are on a par with international best practice.
Life of Mine (LoM)
It is estimated that the current Mineral Reserves will sustain the operation until 2028 (for 14 years).
28
Competent Person(s)
The Competent Persons per mining unit (MU) designated in terms of SAMREC, that take responsibility for the
consolidation, reporting and overall compliance of Beatrix’s 2014 Mineral Resources and Mineral Reserves are
the respective Mineral Resource Managers:
MU1: North Section (3 Shaft)
Mr SG Becker [BEng. Mining Engineering, Mine Manager’s Certificate] is a registered ECSA member
(No. H875564) and has 32 years’ experience;
MU2: South Section (1 Shaft)
Mr C Opperman [ND Mine Surveying, LDP (UNISA), MAP] is a registered SAIMM member (No. 706906) and
has 33 years’ experience; and
MU3: West Section (4 Shaft)
Mr D Oosthuizen [MSCC] is a registered SAIMM member (No. 706910) and has 26 years’ experience.
Internal technical reviews have been conducted by the Competent Persons who gave their consent for the
disclosure of the C2015 Mineral Resource and Mineral Reserve Statement. All have sufficient experience relative
to the type and style of mineral deposit under consideration and are full-time employees of Sibanye.
REVIEW
Gold Mineral Resources at Beatrix increased
by approximately 0.548Moz (6%) to 9.859Moz
(inclusive of Beisa at 1.194Moz). Gold Mineral
Reserves increased by 1% to 3.669Moz, mainly
due to an increase in value at North and West
Sections, and the inclusion of additional white
areas and tail-end management at West Section.
Structural changes in the area east of the North
Section (Vlakpan) and in the syncline area at
West Section, negatively impacted on the total
Mineral Resources declared by 0.318Moz.
Beisa mine optimisation studies are currently
in progress and consequently only a gold and
uranium Mineral Resource has been declared
for the Beisa Reef (above current infrastructure
and confined to the Beatrix Mining Right). The
uranium Mineral Resource declared for the
Beisa Reef is marginally higher than last year
at 26.968Mlb (C2013 at 25.658Mlb) following
additional Mineral Resource conversion drilling.
Mineral Reserve development will remain a key
performance indicator for C2015. The following
table details the development advanced for the
last 12 months to December 2014 (C2012 and
C2013 numbers added for comparison). A total
of 19.7km was developed in C2014 of which
6.1km was on-reef.
Beatrix concluded a pre-feasibility study on
the re-opening of the old Beisa Mine at 4 Shaft
(West Section), with the intent of mining and
processing the uraniferous and auriferous
Beisa Reef for gold and uranium respectively.
Financial Year Total
Category
Unit
Beatrix*
KKR
2014
2013
2012
Main development
(advanced)
km
Main on-reef development
(advanced)
16.0
3.8
19.7
17.5
20.1
km
4.9
1.2
6.1
4.3
4.8
Channel width
cm
116
128
118
136
120
Average Reef Value
g/t
7.7
12.7
8.7
7.4
9.3
cm.g/t
890
1,623
1,034
1,012
1,121
*Includes development advances on the Aandenk and VS5 Reefs
A full account of all the operating statistics of Beatrix is posted on the back of the Beatrix shareholders
plan attached to the end of this Mineral Resources and Mineral Reserves Supplement.
KEY DEVELOPMENTS AND BROWNFIELD PROJECTS
(ON-MINE)
• Beatrix is accessing the Vlakpan area over
the LoM, as part of the strategy of optimising
the Mineral Resource to Mineral Reserve
conversion. The Vlakpan Project comprises
ground between 16 and 22 Level to the west
of the Beatrix North and South Sections.
Access to the area is by means of twin
haulages, and a winze from South Section.
A detailed mine design and schedule, based
on the current geological interpretation,
evaluation and economic parameters, coupled
with a detailed engineering layout, cost and
cash flow models, have been completed for
the Project, and as a consequence has been
incorporated into the current LoM plan;
• The Operation has concluded a PFS on the
re-opening of the old Beisa Mine at 4 Shaft.
The intent is to advance this study to a DFS
during 2015; and
• Further studies are required to assess the
potential below current infrastructure at 3 Shaft
to access part of the Bloemhoek area to the
north of 3 Shaft (outside the current Beatrix
Mining Right).
“On-reef Mineral
Reserve development
accelerated to
6.1 km, an increase
of 42% year-on-year”
29
CONTINUED
Gold Mineral Resource Classification (reported inclusive of Mineral Reserves)
Tons (Mt)
Gold Classification
Grade (g/t)
Gold (‘000 oz)
Dec 2014
Dec 13
Dec 2014
Dec 2013
Dec 2014
Dec 2013
Measured
18.5
15.2
6.4
6.3
3,792
3,092
Indicated AI
32.0
27.9
5.2
4.9
5,332
4,399
Indicated BI
4.2
9.8
4.9
3.6
660
1,119
0.037
5.7
3.3
3.1
4
566
Underground
Inferred AI
Total Underground
54.7
58.5
5.6
4.9
9,788
9,177
Total above infrastructure
50.5
48.8
5.6
5.1
9,128
8,058
Total below infrastructure
4.2
9.8
4.9
3.6
660
1,119
Surface
Indicated SRD
Total Gold Mineral Resources
6.2
10.5
0.4
0.4
71
134
60.9
69.0
5.0
4.2
9,859
9,311
AI: A
bove infrastructure; BI: Below infrastructure. SRD: Surface Rock Dumps. Rounding-off of figures may result in minor computational discrepancies. Where this happens it is not deemed significant.
Uranium Mineral Resource Classification
Tons (Mt)
Uranium Classification
Measured AI
Indicated AI
Inferred AI
Total Uranium Mineral Resources
Grade (kg/t)
U3O8 (‘000 lb)
Dec 2014
Dec 2013
Dec 2014
Dec 2013
Dec 2014
Dec 2013
3.6
–
1.086
–
8,548
–
7.8
6.8
1.069
0.925
18,330
13,867
0.037
5.7
1.101
0.946
90
11,791
11.4
12.5
1.074
0.931
26,968
25,658
Dec 2014
Dec 2013
AI: Above infrastructure. Rounding-off of figures may result in minor computational discrepancies. Where this happens it is not deemed significant.
Modifying Factors
Gold Grade Tonnage Curve
The grade tonnage curve represents undiluted grade (at block
width)
3,500
120 and tons within the total Mineral Resources (all reefs).
2,500
Tons (millions)
80
2,000
60
1,500
40
1,000
20
500
0
500
1,000
2,000
2,500
Cut-off grade (cm.g/t)
Tons
30
Grade
Average grade above cut-off (cm.g/t)
3,000
100
0
0
Parameter
Unit
Mineral Resource pay limit
cm.g/t
710
750
Mineral Reserve pay limit
cm.g/t
780
830
Mined value
cm.g/t
1,025
868
Mine call factor
%
81
82
Block factor
%
100
100
Shortfall
%
6
3
Mining dilution
%
18
14
Stoping width
cm
172
176
Mill width
cm
203
201
Plant recovery factor – UG
%
96
96
Plant recovery factor – SRD
%
89
85
Gold Mineral Reserve Classification
Tons (Mt)
Gold Classification
Grade (g/t)
Dec 2014
Dec 2013
Gold (‘000 oz)
Dec 2014
Dec 2013
Dec 2014
Dec 2013
Underground
Proved
13.0
15.2
4.1
3.8
1,706
1,836
Probable AI
14.0
15.5
4.2
3.4
1,892
1,706
–
–
–
–
–
–
27.0
30.7
4.1
3.6
3,598
3,543
Probable BI
Total Underground
Surface
Probable SRD
Total Gold Mineral Reserves
6.2
7.5
0.4
0.4
71
88
33.2
38.1
3.4
3.0
3,669
3,631
AI: Above infrastructure; BI: Below infrastructure. SRD: Surface Rock Dumps. Rounding-off of figures may result in minor computational discrepancies. Where this happens it is not deemed
significant.
Note: No Uranium Reserves have been estimated as at 31 December 2014
Gold Mineral Reserves per Mining Area
Proved Mineral Reserves
Probable Mineral Reserves
Total Mineral Reserves
31 Dec 2014
Total
Dec 13
Tons
(Mt)
Grade
(g/t)
Gold
(‘000 oz)
Tons
(Mt)
Grade
(g/t)
Gold
(‘000 oz)
Tons
(Mt)
Grade
(g/t)
Gold
(‘000 oz)
Gold
(‘000 oz)
North Section (3 Shaft)
8.8
3.5
975
8.6
3.5
978
17.4
3.5
1,952
2,144
South Section (2 Shaft)
2.2
3.7
265
3.2
3.2
326
5.4
3.4
590
570
West Section (4 Shaft)
2.0
7.2
466
2.2
8.3
589
4.2
7.8
1,055
829
–
–
–
–
–
–
–
–
–
–
13.0
4.1
1,706
14.0
4.2
1,892
27.0
4.1
3,598
3,543
–
–
–
6.2
0.4
71
6.2
0.4
71
88
13.0
4.1
1,706
20.1
3.0
1,963
33.2
3.4
3,669
3,631
Mining Area
Beisa (4 Shaft)*
Total Underground
Surface Rock Dumps
Rounding–off of figures may result in minor computational discrepancies, where this happens it is not deemed significant.
*Further studies scheduled for 2015
Gold Mineral Reserve Reconciliation at 31 December 2014
(0.070)
Evaluation
0.465
Technical factors
(0.055)
Surface sources
0.008
Beisa
31 December 2014
–
3.669
3.669
0
Dec 2014
Pay limit
1
Surface sources
(0.056)
2
Technical factors
General exclusions
(0.070)
Pay limit
0.410
(0.056)
Exclusions
White areas
(0.318)
0.008
(0.055)
(0.318)
White areas/general
inclusions/exclusions
3.286
(0.345)
Geology
Post Depletion
3
Depletion
(0.345)
0.465
0.410
3.631
2014 Depletion
Geology changes
4
Evaluation
Moz
3.631
Dec 2013
31 December 2013
Gold (Moz)
Factors
31
CONTINUED
CURRENT LOM ESTIMATED TO
SUSTAIN OPERATION FOR A
FURTHER 14 YEARS
TOTAL MINERAL RESERVES
3.7Moz
BEATRIX MINERAL RESOURCE CLASSIFICATION
N
0
1km
2.5km
West Section
North Section
(below infrastructure)
Vlakpan
North
Section
South
Section
Key plan to mining units (shaft zones)
Production and Hoisting Capacities
Operating
Shaft
Operational
Hoisting
Capacity (ktpm)
Planned
Production
(ktpm)*
1
3
170
128
2
1
50
45
2
2
Decommissioned
Mining Unit
3
4
40
41
3
4 (SV)
40
41
*Planned production is 5 year hoisted average from 2015 onwards
32
Plant Capacities
Design
Capacity
(ktpm)
Current
Operational
Capacity (ktpm)
Average
Recovery
Factor (%)
Material
Treated
1 (CIL)
233
243
95.6
89.4
UG
Surface
2 (CIP)
130
130
95.5
88.2
UG
Surface
Plant
N
0
1km
N
2.5km
Legend
Classification
Mine Boundary
Measured
Shafts
Indicated
Mined out Areas
Inferred
Pillars
Beatrix/Aandenk/VS5 Reefs
0
1km
2.5km
Legend
Classification
Mine Boundary
Measured
Shafts
Indicated
Mined out Areas
Inferred
Pillars
Kalkoenkrans Reef
33
SECTION 2 THE COOKE OPERATION
THE COOKE OPERATION
THE RECOGNITION OF THE
DISPOSITION OF THE WITPOORTJIE
“GAP” AND AN EXTENSIVE
EXPLORATION PROGRAMME THAT
STARTED IN THE 1950S, LED TO THE
DISCOVERY OF PAYABLE GOLD-ANDURANIUM BEARING CONGLOMERATES
OF THE ELSBURG FORMATION
AND THE ESTABLISHMENT OF THE
COOKE OPERATION IN 1961. THE
CURRENT LOM MINERAL RESERVES
ARE ESTIMATED TO SUSTAIN THE
(-13.9% post production depletion of
0.131Moz)
0.299Mlb)
0.226Moz)
Uranium Mineral Reserves 3.827Mlb
(-25.3% post production depletion of
0.218Mlb)
Strategic intent:
• Stabilise production profiles
performance levels
• Strengthen uranium potential
34
LOCATION
MILLSITE PROSPECTING RIGHT
Mining Right
Prospecting Rights
Towns
National roads
Arterial roads
Main roads
RANDFONTEIN SURFACE
OPERATION (RSO)
RANDFONTEIN
RSO
HARMONY GOLD
MINING COMPANY LTD
DOORNKOP OPERATIONS
Coordinates
COOKE 1,2,3
OPERATION
WESTONARIA
ZUURBEKOM
PROSPECTING RIGHT
COOKE 4
OPERATION
CARLETONVILLE
DRIEFONTEIN OPERATION
EX-BLYVOORUITZICHT
OPERATIONS
KLOOF OPERATION
SAVUKA
HARMONY GOLD
MINING COMPANY LTD
KUSASALETHU OPERATIONS
MPONENG
GOLD FIELDS LTD
SOUTH DEEP
N
ANGLOGOLD
ASHANTI
OVERVIEW
The Cooke Operation is a large, established,
shallow to intermediate level gold mine
consisting of three contiguous Mining Rights:
1.Cooke 1, 2 & 3 (Cooke 123) [DMR
Ref. GP30/5/1/2/2(07)MR] valid from
18 December 2007 to 17 December 2037
covering a total area of 7,875 hectares;
2.Cooke 4 (Ezulwini) [DMR Ref.
GP30/5/1/2/2(38)MR] valid from
20 November 2006 to 19 November 2036
covering a total area of 3,718 hectares; and
3.Randfontein Surface Operations (RSO)
[DMR Ref. GP30/5/1/2/2(173)MR] valid
from 07 May 2009 to 06 May 2039
covering a total area of 3,130 hectares.
Geographically Cooke is located along the
western limb of the West Rand Goldfields of
the Witwatersrand Basin near the towns of
Randfontein and Westonaria, approximately
30 kilometres west of Johannesburg in the
Gauteng province of South Africa. The site is
accessed via the local R28 highway between
Randfontein and Westonaria or via the N12
national road between Johannesburg
and Potchefstroom.
0
FOCHVILLE
5km
The surface topography over the area is
characterised by moderately undulating
plains, with savannah grassland being
the natural vegetation in the area. Premining conditions were generally that of
farmlands, which is now largely built-up and
industrialised. The area is characterised
by a mild climate, with warm to hot, moist
summers and cool dry winters.
Cooke 123 in its current form dates
from 22 April 2010 with the cession
of Randfontein Estate Limited to Rand
Uranium Pty Ltd (inclusive of RSO) and
Cooke 4 dates from 20 April 2010 with the
cession of Simmer and Jack Mines Ltd to
Ezulwini Mining Company (Pty) Limited
(Ezulwini). In-turn Gold One acquired
Rand Uranium and Ezulwini in August
2012 followed by the transaction between
Sibanye and Gold One when Sibanye
acquired Rand Uranium Pty Ltd and
Ezulwini in May 2014.
The current mine infrastructure consists
of four producing shaft complexes that
mine open ground and pillars (white
areas), with the deepest operating level some
1,634 metres below surface (58 level at
Cooke 4 SV Shaft). The production from the
four Cooke shafts is being hoisted to surface
individually. Underground material from
Cooke 123 is processed at the Doornkop
Plant, operated by Harmony Gold Mining
Company Ltd, on a toll treatment basis and
from Cooke 4, at the Ezulwini gold-uranium
Plant situated near the Cooke 4 Shaft.
Ore from the uranium section at Cooke 3
is hoisted separately and trucked to the
Ezulwini gold-uranium Plant for treatment.
The principal mining takes place on the
UE1A Reef, which constitutes 48% of the
underground Mineral Reserve ounces, the
Upper Elsburg Reefs (25%), the Middle
Elsburg Reefs (12%), various secondary
reefs of the Elsburg and Kimberley
Formations (4%) and the VCR (11%).
Image
Cooke 3 Shaft
35
THE COOKE OPERATION
CONTINUED
SCHEMATIC 3D SECTION THROUGH THE COOKE 123 ORE BODY LOOKING WEST-NORTHWEST
ASSET FUNDAMENTALS
Palaeo-placer
Deposit type
Shallow to intermediate-depth gold mine exploiting the UE1A Reef, various secondary reefs of the Elsburg and
Kimberley Conglomerate Formations and the Ventersdorp Contact Reef (VCR).
The Cooke Operation has a new order mining right in terms of the Minerals and Petroleum Resources
Development Act, 2002 (Act No. 28 of 2002), separated into three individual rights with granted durations
as follow:
1. Cooke 123 from 18 December 2007 to 17 December 2037 in respect of a mining area totalling
7,875 hectares;
2. Cooke 4 from 20 November 2006 to 19 November 2036 covering a total area of 3,718 hectares; and
3. RSO from 07 May 2009 to 06 May 2039 covering a total area of 3,130 hectares.
All required operating permits have been obtained, and are in good standing. Cooke 4 also holds a prospecting
right [DMR Ref. GP(10151)PR] in respect of an area (6,843 ha) contiguous to the east of Cooke 123 and Cooke 4,
which is valid until October 2016. Cooke 4 is in the process of finalising a Section 102 application to amend
Cooke 4’ mining right through the inclusion of the prospecting right (Zuurbekom).
Infrastructure
Four shaft complexes and a surface mining operation.
Mining method(s)
Cooke 123: Conventional breast mining, scattered mining and pillar mining;
Cooke 4: Conventional breast mining, drift and benching, scattered mining and pillar mining; and
RSO: Hydraulic reclamation (water jets), gravity feed to sump pump station and pumped via pipeline to
processing plant.
Mineral processing
Three processing plants (one external):
i. Harmony Doornkop Plant – Processing Cooke 123 underground ore on a toll treatment basis for gold;
ii. Ezulwini Plant – Processing Cooke 123 No. 3 Shaft and Cooke 4 underground ore for gold and uranium; and
iii. Cooke Plant – Processing RSO tailings material for gold.
36
Tailings disposal
One tailing storage facility (Ezulwini) with LoM deposition estimated at 7.6Mt against a capacity of 17.1Mt
(surplus of 9.5Mt).
Cooke 123 tailing via the Doornkop Plant is deposited on the Doornkop tailings facility.
Currently RSO tailings are deposited down old defunct open cast mine workings estimated to accept all planned
residue over the LoM.
Climate
Safety
Cooke systems, procedures and training are on a par with international best practice.
Life of Mine (LoM)
It is estimated that the current Mineral Reserves will sustain the operation until 2025 (based on Cooke LoM).
Competent Person(s)
consolidation, reporting and overall compliance of Cooke’s Mineral Resources and Mineral Reserves are the
respective Mineral Resource Managers:
MU1: 1 and 2 Shafts
Mr L Madondo [BSc. Geology, COMSCC] is a registered SACNASP member (No. 200016/09) and has 10 years’
experience;
MU2: 3 Shaft
Labuschagne [GDE Mining Engineering, BSc. (Hons) Geology MSc. (Environmental Management)] is a
registered SACNASP member (No. 400237/08) and has 17 years’ experience;
MU3: 4 Shaft
Mr V Sewpersad [BSc. (Mathematics and Applied Mathematics), ND and NHD (Economic Geology), BSc.
(Geology), MBA, HDE] is a registered SACNASP member (No. 400313/14) and has 27 years’ experience.
RSO
Mr I Davidson [BSc. (Hons) Geology] is a registered SAIMM member (No. 706805) and has 32 years’ experience.
disclosure of the C2015 Mineral Resource and Mineral Reserve Statement. All have appropriate experience relative
REVIEW
Gold Mineral Resources at Cooke decreased
by approximately 2.681Moz (-13.9%) to
16.589Moz mainly due to losses as a result
of geology models (-3,432Moz) and the pay
limit (-5,093Moz). These losses were however
largely offset by a comprehensive review of the
Mineral Resource classification and estimation
across all shafts, ensuring compliance with the
SAMREC Code in accordance with Sibanye’s
protocols and procedures (+6,789Moz) and
new areas added (+3,998Moz).
Uranium Mineral Resources at Cooke
increased by approximately 15.525Mlb
(+30.5%) to 66.385Mlb, notwithstanding
a decrease of 10.337Mlb declared for
Cooke 3 Shaft and is mainly due to the
inclusion of new ground (43.984Mlb).
white areas, the displacement of Middle
Elsburg (ME) mining areas with Upper
Elsburg (UE) areas and reduced ore reserve
development during the Section 189 at Cooke
4 (-1.794Mlb), led to an overall decrease in
Mineral Reserves.
Gold Mineral Reserves decreased by
5.5% to 1.955Moz, mainly due to depletion
(-0.226Moz). Decreasing working costs
and improvement in technical factors
led to an overall increase post depletion
(+0.112Moz). Uranium Mineral Reserves
show an overall decrease of 1.589Mlb
(29.3%) to 3.827Mlb. Despite the increase
at Cooke 3 (+0.151Mlb) due to additional
tables summarise the development advances
for Cooke 123 and Cooke 4 respectively over
the last 12 months to December 2014.
COOKE 123
A total of 7.8km was developed in C2014 of which 3.8km was on-reef.
Category
Main development (advanced)
Main on-reef development (advanced)
Channel width
Average Reef value
Unit
VCR
UE1A
Kimberley
Reefs
Total
C2014
m
1,376
5,713
724
7,813
m
565
2,817
402
3,784
cm
52
116
136
109
g/t
8.6
8.9
6.9
8.7
cm.g/t
452
1,040
941
942
Unit
Upper
Elsburg
E9EC
Total
C2014
m
1,649
72
1,721
COOKE 4
A total of 1.7km was developed in C2014 of which 0.5km was on-reef.
Category
Channel width
Average Reef value
m
469
53
522
cm
220
234
221
g/t
3.8
6.6
4.1
cm.g/t
825
1,549
898
A full account of all the operating statistics of the Cooke Operation is posted on the back of the shareholders plan attached at the end of this Mineral
37
THE COOKE OPERATION
CONTINUED
KEY DEVELOPMENTS AND BROWNFIELD PROJECTS (ON-MINE)
• The mechanised mining towards the Zuurbekom area at Cooke 1 Shaft was stopped during 2014. The Group will investigate mining of this area
through conventional means.
• The build-up in the production of uranium at Cooke 3 and 4 Shafts will continue in C2015.
Tons (Mt)
Gold Classification
Grade (g/t)
Gold (‘000 oz)
Dec 2014
Dec 2013
Dec 2014
Dec 2013
Dec 2014
Dec 2013
Measured
11.5
38.4
8.6
5.0
3,175
6,183
Indicated AI
34.8
56.2
6.8
4.1
7,659
7,333
Underground
Inferred AI
8.6
48.0
5.9
3.5
1,643
5,470
54.9
142.6
7.1
4.1
12,477
18,987
Inferred BI
40.7
–
3.1
–
3,998
–
Total Underground
95.6
142.6
5.4
4.1
16,475
18,987
Measured
7.3
17.5
0.4
0.4
86
200
Indicated
2.2
6.7
0.4
0.3
28
72
Surface – TSFs
Inferred
Total surface
–
0.5
–
0.6
–
11
9.4
24.8
0.4
0.4
114
283
105.0
167.4
4.9
3.6
16,589
19,270
AI: Above infrastructure; BI: Below infrastructure. TSF: Surface Tailings Facility. Rounding-off of figures may result in minor computational discrepancies. Where this happens it is not
deemed significant.
Uranium Mineral Resource Classification (reported inclusive of Mineral Reserves)
Tons (Mt)
Grade (kg/t)
U3O8 (‘000 lb)
Dec 2014
Dec 2013
Dec 2014
Dec 2013
Dec 2014
Dec 2013
4.4
22.4
0.590
0.446
5,697
22,002
12.4
16.1
0.584
0.479
15,987
16,965
1.1
9.7
0.288
0.554
717
11,894
Underground
Measured
Indicated AI
Inferred AI
17.9
48.2
0.567
0.479
22,401
50,861
Inferred BI
35.9
–
0.555
–
43,984
–
Total Uranium Mineral Resources
53.9
48.2
0.559
0.479
66,385
50,861
AI: Above infrastructure; BI: Below infrastructure. Rounding-off of figures may result in minor computational discrepancies. Where this happens it is not deemed significant.
SCHEMATIC 3D SECTION OF THE COOKE 4 ORE BODY LOOKING WEST-NORTHWEST
38
Grade Tonnage Curves
The grade tonnage curve represents undiluted grade (at block width) and tons within the total Mineral Resources (all reefs).
Cooke 4 (Upper Elsburg) – Gold
16
3,500
14
3,000
Tons (millions)
400
2,500
2,000
300
1,500
200
1,000
100
0
0
500
1,000
2,000
30
25
12
Tons (millions)
500
4,000
600
20
10
8
15
6
10
4
500
2
0
0
0
2,500
5
0
2
4
6
8
Tons
10
12
14
Tons
0.50
100
0.40
50
Average grade above cut-off (kg/t)
0.60
150
Tons (millions)
20
Grade
Parameter
0.70
0.30
400
18
Cooke Modifying Factors (underground)
200
200
16
Cut-off grade (g/t)
Grade
Cooke (All Reefs) – Uranium
0
0
Average grade above cut-off (g/t)
Cooke 123 and Cooke 4 (UEIA and E9EC) – Gold
600
800
1,000
Unit
Dec 2014
Dec 2013
cm.g/t
860
720
cm.g/t
950
760
Mined value
cm.g/t
1,039
1,026
Mine call factor
%
79
75
Block factor
%
100
100
Shortfall
%
1
-2.7
Mining dilution
%
28
40
Stoping width
cm
160
178
Mill width
cm
206
238
Plant recovery factor – Gold UG
%
96
95
Plant recovery factor –
Uranium UG
%
79
80
Cut-off grade (cm.kg/t)
Grade
RSO Modifying Factors (surface)
Parameter
ILLUSTRATION OF UE1A CLASTIC WEDGE
Unit
Dec 2014
Dec 2013
g/t
0.31
0.34
g/t
0.33
0.36
Mined value
g/t
0.38
0.45
Plant recovery factor
%
61
64
SINGLE REEF
UE1A
MULTI REEF
UE1A
ANTICLINE
AXIS
Tons
North
39
THE COOKE OPERATION
CONTINUED
Tons (Mt)
Gold Classification
Head Grade (g/t)
Gold (‘000 oz)
Dec 2014
Dec 2013
Dec 2014
Dec 2013
Dec 2014
Dec 2013
10.1
6.1
4.8
4.9
1,555
962
Underground
Proved
1.8
6.8
4.9
4.0
286
877
11.9
12.9
4.8
4.4
1,841
1,839
–
–
–
–
–
–
11.9
12.9
4.8
4.4
1,841
1,839
Proved
7.3
16.5
0.4
0.4
86
190
Probable
2.2
3.3
0.4
0.4
28
40
Probable AI
Probable BI
Total Underground
Surface – TSFs
Total Surface
9.4
19.7
0.4
0.4
114
230
21.3
32.6
2.8
2.0
1,955
2,069
AI: Above infrastructure; BI: Below infrastructure. TSF: Surface Tailings Facility. Rounding-off of figures may result in minor computational discrepancies. Where this happens it is not deemed
significant.
Uranium Mineral Reserve Classification
Tons (Mt)
Head Grade (kg/t)
Dec 2014
Dec 2013
Dec 2014
U3O8 (‘000 lb)
Dec 2013
Dec 2014
Dec 2013
Underground
Proved
4.1
2.2
0.379
0.446
3,388
2,129
Probable AI
0.5
3.5
0.369
0.431
439
3,287
4.6
5.6
0.378
0.436
3,827
5,416
–
–
–
–
–
–
4.6
5.6
0.378
0.436
3,827
5,416
Probable BI
Total Uranium Mineral Reserves
AI: Above infrastructure; BI: Below infrastructure. Rounding-off of figures may result in minor computational discrepancies. Where this happens it is not deemed significant.
31 Dec 2014
31 Dec
2013
Tons
(Mt)
Grade
(g/t)
Gold
(‘000 oz)
Tons
(Mt)
Grade
(g/t)
Gold
(‘000 oz)
Tons
(Mt)
Grade
(g/t)
Gold
(‘000 oz)
Gold
(‘000 oz)
1 Shaft
0.4
8.4
119
0.1
4.1
15
0.6
7.5
134
110
2 Shaft
1.5
5.9
279
0.3
7.0
75
1.8
6.1
353
360
3 Shaft
4.5
4.4
637
0.2
4.4
32
4.7
4.4
669
740
4 Shaft
3.7
4.3
520
1.1
4.5
164
4.9
4.4
685
629
10.1
4.8
1,555
1.8
4.9
286
11.9
4.8
1,841
1,839
7.3
0.4
86
2.2
0.4
28
9.4
0.4
114
230
17.4
2.9
1,641
4.0
2.5
314
21.3
2.8
1,955
2,069
Mining Area
Total Underground
RSO TSFs
TSF: Surface Tailings Facility. Rounding-off of figures may result in minor computational discrepancies. Where this happens it is not deemed significant.
40
Uranium Mineral Reserves per Mining Area
31 Dec 2014
31 Dec
2013
Tons
(Mt)
Grade
(kg/t)
U3O8
(‘000 lb)
Tons
(Mt)
Grade
(kg/t)
U3O8
(‘000 lb)
Tons
(Mt)
Grade
(kg/t)
U3O8
(‘000 lb)
U3O8
(‘000 lb)
1 Shaft
–
–
–
–
–
–
–
–
–
–
2 Shaft
–
–
–
–
–
–
–
–
–
–
3 Shaft
2.6
0.322
1,814
0.2
0.408
187
2.8
0.329
2,001
1,850
4 Shaft
1.5
0.475
1,574
0.3
0.345
252
1.8
0.452
1,826
3,566
Total Underground
4.1
0.379
3,388
0.5
0.369
439
4.6
0.378
3,827
5,416
–
–
–
–
–
–
–
–
–
–
4.1
0.379
3,388
0.5
0.369
439
4.6
0.378
3,827
5,416
Mining Area
RSO TSFs
Total Uranium
Mineral Reserves
TSF: Surface Tailings Facility. Rounding-off of figures may result in minor computational discrepancies. Where this happens it is not deemed significant.
Uranium Mineral Reserve Reconciliation at 31 December 2014
Item
Moz
31 December 2013
2.069
2014 Depletion
Item
Mlb
31 December 2013
5.416
(0.226)
2014 Depletion
(0.218)
Post depletion
1.843
Post Depletion
5.198
General inclusions (white areas)
0.145
White areas at Cooke 3
0.926
General exclusions
(0.171)
ME displaced by UE at Cooke 4
(1.794)
(0.594)
Evaluation
0.070
Evaluation
Technical factors
0.069
Technical factors
0.091
31 December 2014
1.955
31 December 2014
3.827
5.416
(0.171)
1
(0.218)
4
0.091
(1.794)
(0.594)
3.827
0.069
U3O8 (Mlb)
(0.226)
0.070
1.955
2.069
0.145
2
Dec 2014
Thecnical factors
Evaluation
General exclusions
White areas
Depletion
Dec 2014
Thecnical factors
Evaluation
General exclusions
White areas
Depletion
Dec 2013
0
0
Dec 2013
Gold (Moz)
2
0.926
6
3
41
THE COOKE OPERATION
CONTINUED
FURTHER 11 YEARS
TOTAL GOLD MINERAL RESERVES
2.0Moz
COOKE MINERAL RESOURCE CLASSIFICATION
N
0
1km
N
2.5km
0
Cooke
1 and 2
Shafts
Cooke
3 Shaft
1km
2.5km
Zuurbekom
Prospecting
Right
Cooke
4 Shaft
Legend
Classification
Shafts
Measured
Mined out Areas
Indicated
Upper Elsburg
Inferred
Subcrop
UE1A and E9EC
Operating
Shaft
Operational
Hoisting
Capacity (ktpm)*
1
1
13.5
9
1
2
28.5
24
2
3
55
42
45
53
Mining
Unit
3
4
3
4 SV
RSO
TSF
*Planned production is five-year hoisted average from C2015 onwards
Image
Cooke 2 shaft Complex
42
Planned
Production
(ktpm)
Decommissioned
400
400
Plant Capacities
Plant
Doornkop
Ezulwini Gold
Design
Capacity
(ktpm)
Current
Operational
Capacity (ktpm)
Average
Recovery
Factor (%)
Material
Treated
80
56
95.9
UG
200
150
95.5
UG
Ezulwini Uranium
100
50
79.0
UG
Cooke
400
400
61
TSF
Note: Ezulwini gold plant capacity is inclusive of the 100 ktpm uranium plant tails
N
0
1km
N
2.5km
Legend
Classification
Shafts
Measured
Mined out Areas
Indicated
Upper Elsburg
Inferred
Subcrop
Upper Elsburg
0
1km
2.5km
Legend
Classification
Shafts
Measured
Mined out Areas
Indicated
Upper Elsburg
Inferred
Subcrop
VCR
43
SECTION 2 THE DRIEFONTEIN OPERATION
THE DRIEFONTEIN OPERATION
DRIEFONTEIN STARTED PRODUCTION
IN 1952 AND IS OFFICIALLY THE MOST
PROLIFIC GOLD MINE EVER, HAVING
PRODUCED MORE THAN 107MOZ OF
GOLD OVER THE PAST 62 YEARS. THE
ARE ESTIMATED TO SUSTAIN THE
0.610Moz)
0.598Moz)
Strategic intent:
• Stabilise production profiles at
current performance levels
• 5 Shaft Drop-down pre-feasibility
completed
• Target secondary reefs on an
incremental basis above infrastructure
44
LOCATION
Mining Right
Prospecting Right
Towns
National roads
Arterial roads
Main roads
RANDFONTEIN SURFACE
RANDFONTEIN
HARMONY GOLD
DOORNKOP OPERATIONS
Coordinates
COOKE 1, 2, 3
OPERATION
WESTONARIA
ZUURBEKOM
PROSPECTING RIGHT
CARLETONVILLE
COOKE 4
OPERATION
DRIEFONTEIN
OPERATION
EX-BLYVOORUITZICHT
OPERATIONS
SAVUKA
KLOOF OPERATION
MPONENG
GOLD FIELDS LTD
SOUTH DEEP
N
HARMONY GOLD
ANGLOGOLD
ASHANTI
FOCHVILLE
0
5km
OVERVIEW
Driefontein is a large, established, shallow to ultradeep level gold mine, operating under a Mining
Right [DMR Ref. GP30/5/1/2/2(51)MR] valid from
30 January 2007 to 29 January 2037 covering a
total area of 8,561 hectares.
Geographically Driefontein is located in the West
Wits Line Goldfield of the Witwatersrand Basin,
near Carletonville, approximately 75 kilometres
west of Johannesburg in the Gauteng Province
of South Africa. Topography is characterised
by moderately undulating plains, classified as
Bankenveld consisting of grassland with livestock
farming widespread in the surrounding areas.
The current mine infrastructure consists of six
producing shaft complexes that mine open
ground and pillars (white areas), with the deepest
operating level currently some 3,420 metres
below surface (50 Level at 5 Shaft), and three
gold processing plants. The principal mining takes
place on the Carbon Leader Reef (CL), which
constitutes almost 65% of the Mineral Reserves,
the Ventersdorp Contact Reef (VCR) 31%, the
Middelvlei Reef (MR) 2% and the remaining 2%
from surface sources (SRD).
Image
Driefontein 8 shaft
Image
Driefontein No 1 Plant
45
CONTINUED
SCHEMATIC 3D SECTION THROUGH THE DRIEFONTEIN ORE BODY LOOKING NORTH
ASSET FUNDAMENTALS
Palaeo-placer
Mineralisation
characteristics
Deposit type
Shallow to ultra-deep gold mine exploiting various auriferous and uraniferous quartz pebble conglomerates
hosted by the Ventersdorp Contact Reef (VCR) and Main Conglomerate Formation [Carbon Leader Reef (CL) and
Middelvlei Reef (MR)] of the Central Rand Group.
Driefontein has a new order mining right in terms of the Minerals and Petroleum Resources Development Act,
No 28, 2002 (MPRDA), valid from 30 January 2007 to 29 January 2037 in respect of a mining area totalling
8,561 hectares. All required operating permits have been obtained, and are in good standing.
Infrastructure
Six shaft complexes (five sub-shafts and one tertiary shaft).
Mining method
Scattered stoping, mini longwall stoping with closely spaced dip pillars (140 x 40 m and 130 x 30 m regional
pillars) and surface rock dump mining.
Mineral processing
Three gold processing plants and a centralised elution and carbon treatment facility at the No 1 Plant:
i. No 1 CIP Plant – Processing underground ore and low-grade surface rock dump material;
ii. No 2 CIP Plant – Processing only low-grade surface rock dump material; and
iii. No 3 CIL Plant – Processing only low-grade surface rock dump material.
Tailings disposal
Three tailing storage facilities with LoM deposition estimated at 34.9Mt against a combined capacity of 85.2Mt
(surplus 49.7Mt).
Climate
Environmental/Health
and Safety
Driefontein’s systems, procedures and training are on par with international best practice.
Life of Mine (LoM)
46
Competent Person(s)
consolidation, reporting and overall compliance of Driefontein’s Mineral Resources and Mineral Reserves are the
MU1: 1 Shaft
Mr M Tandree [ND Mine Surveying; MSCC; GDE Mining] is a registered SAIMM member (No. 706330) and has
17 years’ experience;
MU2: 2 & 4 Shafts
Mr D Foley [GDE Mining Engineering] is a registered SAIMM member (No. 703902) and has 36 years’ experience;
MU3: 6 & 8 Shafts
Mr C Dewey [ND Mine Survey, MSCC, GDE (Mining Engineering), MSc. Eng (Mining Engineering)] is a registered
PLATO member (PMS0234) and has 40 years’ experience; and
MU4: 5 Shaft
Mr J du Plessis [MSc. (Mining Engineering), GDE Mining Engineering NHD Mine Surveying, MSCC] is a registered
PLATO member (PMS0145) and has 35 years’ experience.
disclosure of the C2015 Mineral Resource and Mineral Reserve Statement. All have sufficient experience relative
REVIEW
The Mineral Resources at Driefontein increased
by approximately 1.627Moz (7.7%) post
production depletion to 22.880Moz, mainly as a
result of geology structure changes.
Mineral Reserves increased by 1.296Moz
(21.4%) to 7.354Moz, primarily due to the
inclusion of the 5 Shaft Drop-down Project
ounces (1.126Moz) and as a result of a detailed
investigation into the economic potential of white
areas, which were previously not considered in
the LoM plan (0.491Moz). General exclusions
amounts to 0.308Moz and are related to areas
stopped due to grade and tail managed changes
at 4, 6 and 8 Shafts.
C2013 added for comparison). A total of 17.4km
was developed in C2014 of which 3.9km was
on-reef.
Unit
CL
VCR
MR
2014
2013
2012
Category
km
9.6
4.2
3.5
17.4
17.8
20.1
km
1.8
0.9
1.3
3.9
4.4
4.1
Channel width
cm
103
59
38
72
67
67
Average reef value
g/t
18.6
28.7
14.9
19.7
21.0
23.0
cm.g/t
1,903
1,694
563
1,415
1,409
1,482
A full account of all the operating statistics of Driefontein is posted on the back of the Driefontein shareholders plan attached at the end of this
Mineral Resources and Mineral Reserves Supplement.
The following projects are on-going and have been included in the LoM:
• The 1 Shaft Pillar Extraction Project PFS, completed by Royal HaskoningDHV in 2013, is included in the LoM production plan. With Mineral
Reserves of 0.536Moz, this project will advance to DFS in 2015.
• The PFS for the Driefontein 5 Shaft Drop-down Project (below 50 Level) was completed during 2014, resulting in Mineral Reserve of 1.126Moz.
A DFS for this project will be conducted during 2015.
47
CONTINUED
Tons (Mt)
Gold Classification
Grade (g/t)
Gold (‘000 oz)
Dec 14
Dec 13
Dec 14
Dec 13
Dec 14
Dec 13
Measured
21.5
20.3
11.9
11.6
8,229
7,542
Indicated AI
10.5
8.2
12.1
12.7
4,088
3,351
Indicated BI
Underground
29.5
30.2
10.2
10.0
9,684
9,694
Inferred AI
1.1
0.8
16.0
12.7
550
315
Inferred BI
0.7
0.6
9.4
9.7
204
201
Total Underground
63.2
60.1
11.2
10.9
22,755
21,103
33.1
29.2
12.1
11.9
12,867
11,208
30.1
30.9
10.2
10.0
9,888
9,895
Surface
Indicated SRD
6.8
6.4
0.6
0.7
125
150
70.0
66.5
10.2
9.9
22,880
21,253
AI: Above infrastructure; BI: Below infrastructure. SRD: Surface Rock Dumps. Rounding-off of figures may result in minor computational discrepancies, where this happens it is not
deemed significant.
Modifying Factors
width) and tons within the total Mineral Resources (all reefs).
Dec 2014
Dec 2013
cm.g/t
1,170
1,220
4,000
cm.g/t
1,280
1,340
300
3,500
Mined value
cm.g/t
1,726
1,766
3,000
Mine call factor
%
86
80
Block factor
%
100
100
Shortfall
%
12
11
Mining dilution
%
35
33
Stoping width
cm
158
150
Mill width
cm
214
199
%
97
97
%
86
85
2,500
200
2,000
150
1,500
100
1,000
50
0
0
500
0
500
1,000
2,000
2,500
Tons
Grade
Image
Tons (millions)
Unit
350
250
48
Parameter
Tons (Mt)
Gold Classification
Grade (g/t)
Gold (‘000 oz)
Dec 14
Dec 13
Dec 14
Dec 13
Dec 14
Dec 13
Proved AI
12.1
10.4
7.0
7.3
2,716
2,467
Probable AI
14.4
15.2
7.3
7.1
3,387
3,440
26.6
25.6
7.1
7.2
6,103
5,907
5.5
–
6.3
–
1,126
–
32.1
25.6
7.0
7.2
7,228
5,907
6.8
6.4
0.6
0.7
125
150
38.9
32.0
5.9
5.9
7,354
6,057
Underground
Probable BI
Total Underground
Surface
Probable SRD
deemed significant.
31 Dec 2014
31 Dec
2013
Tons
(Mt)
Grade
(g/t)
Gold
(‘000 oz)
Tons
(Mt)
Grade
(g/t)
Gold
(‘000 oz)
Tons
(Mt)
Grade
(g/t)
Gold
(‘000 oz)
Gold
(‘000 oz)
1 Shaft
2.0
7.7
498
0.8
7.3
187
2.8
7.6
684
739
2 Shaft
0.5
8.0
134
3.5
7.6
862
4.0
7.7
995
925
4 Shaft
1.6
9.0
469
3.1
8.9
880
4.7
9.0
1,350
1,421
5 Shaft
5.3
6.9
1,180
4.9
7.0
1,106
10.2
7.0
2,286
1,979
–
–
–
5.5
6.3
1,126
5.5
6.3
1,126
–
6 Shaft
0.8
6.5
169
0.7
5.8
136
1.5
6.2
304
328
8 Shaft
1.8
4.5
266
1.4
4.7
217
3.3
4.6
483
516
12.1
7.0
2,716
20.0
7.0
4,512
32.1
7.0
7,228
5,907
–
–
–
6.8
0.6
125
6.8
0.6
125
150
12.1
7.0
2,716
26.8
5.4
4,638
38.9
5.9
7,354
6,057
Mining Area
5 Shaft Drop-down
Total Underground
Surface
Surface rock dumps
Rounding-off of figures may result in minor computational discrepancies. Where this happens it is not deemed significant.
0.166
Changes in modifying factors
0.272
Surface additions
0.026
31 December 2014
7.354
7.354
2
0
Dec 2014
Change in average mining value
Surface sources
1.126
0.026
Technical factors
(0.308)
5 Shaft Drop-down
Evaluation
0.491
Drop-down
Inclusion of white areas
0.272
4
General exclusions
0.122
0.166
(0.308)
White area
5.460
Geology changes
0.122
1.126
0.491
(0.598)
Geology
Post Depletion
6
Depletion
(0.598)
6.057
6.057
2013 Depletion
Areas stopped due to grade or tail management
8
Dec 2013
31 December 2013
Moz
Gold (Moz)
Item
49
CONTINUED
FURTHER 19 YEARS.
7.4Moz
DRIEFONTEIN MINERAL RESOURCE CLASSIFICATION PER REEF
N
N
0
1km
0
2.5km
8 Shaft
2.5km
2 Shaft
6 Shaft
10 Shaft
1km
1 Shaft
4 Shaft
5 Shaft
6T Shaft
Legend
Classification
Shafts
Measured
Mined out Areas
Indicated
VCR Subcrop
Inferred
Pillars
VCR
Mining
Unit
Operational
Hoisting
Capacity (ktpm)
Planned
Production
(ktpm)*
1
1
55
42
1
1 SV
55
42
1
1T
55
42
2
2
165
117
2
4 SV
57
32
3
6 SV
26
17
3
8
55
43
4
5
70
–
4
5 SV
159
72
50
Operating
Shaft
Plant Capacities
Design
Capacity
(ktpm)
Current
Operational
Capacity (ktpm)
Average
Recovery
Factor (%)
Material
Treated
1 (CIP)
240
240
97.2
UG/SRD
2 (CIP)
200
180
90.3
SRD
3 (CIL)
115
100
79.2
SRD
Plant
N
0
1km
N
2.5km
Legend
Classification
Shafts
Measured
Mined out Areas
Indicated
MR Subcrop
Inferred
Pillars
Middelvlei Reef
0
1km
2.5km
Legend
Classification
Shafts
Measured
Mined out Areas
Indicated
CL Subcrop
Inferred
Pillars
Carbon Leader Reef
Image
51
SECTION 2 THE KLOOF OPERATION
THE KLOOF OPERATION
KLOOF, AS A MATURE OPERATION,
WITH A SAFE OPERATIONAL
BLUEPRINT REMAINS A WORLD CLASS
ASSET AND WILL CONTINUE TO ADD
VALUE TO ALL ITS STAKEHOLDERS
FOR MANY YEARS TO COME. KLOOF’S
IS ESTIMATED TO SUSTAIN THE
Gold Mineral Resources 29.3Moz (-3.5%
post production depletion of 0.587Moz)
Gold Mineral Reserves 6.9Moz (+23.7%
post depletion of 0.553Moz)
Strategic intent:
• Stabilise production profiles at current
performance levels
• 4 Shaft Drop-down PFS completed
• Target secondary reefs on an
incremental basis above infrastructure
52
LOCATION
Mining Right
Prospecting Right
Towns
National roads
Arterial roads
Main roads
RANDFONTEIN SURFACE
RANDFONTEIN
HARMONY GOLD
MINING COMPANY LTD
DOORNKOP OPERATIONS
Coordinates
COOKE 1, 2, 3
OPERATION
WESTONARIA
ZUURBEKOM
PROSPECTING RIGHT
CARLETONVILLE
COOKE 4
OPERATION
DRIEFONTEIN
OPERATION
EX-BLYVOORUITZICHT
OPERATIONS
SAVUKA
KLOOF
OPERATION
MPONENG
GOLD FIELDS LTD
SOUTH DEEP
N
HARMONY GOLD
MINING COMPANY LTD
ANGLOGOLD
ASHANTI
FOCHVILLE
0
5km
OVERVIEW
Kloof is a large, established, shallow to ultra-deep
level gold mine, operating under a Mining Right
[DMR Ref. GP30/5/1/2/2(66)MR] valid from 30
January 2007 to 29 January 2027 covering a
total area of 20,087 hectares. Geographically
Kloof is located in the West Wits Line Goldfield of
the Witwatersrand Basin, near Westonaria in the
Gauteng Province of South Africa. The topography
is characterised by moderately undulating plains,
consisting mainly of grassland with livestock
farming widespread in the surrounding areas.
Kloof in its current form dates from April 2000
when the Venterspost (1939), Libanon (1945),
Kloof (1968) and Leeudoorn (1993) Mines were
amalgamated. The current mine infrastructure
consists of five producing shaft complexes that
mine open ground and pillars (white areas), with
the deepest operating level some 3,347 metres
below surface (45 Level at 4 Shaft), and two gold
processing plants. The principal mining takes
place on the Ventersdorp Contact Reef (VCR),
which constitutes almost 86% of the underground
Mineral Reserve ounces, the Middelvlei Reef
(MR) 8% and the remaining 7% comprising
mainly the Kloof Reef (KR) at 6% and the Libanon
Reef (LR) at 1%.
Image
Kloof 7 shaft
Image
SRD Mining
53
THE KLOOF OPERATION
SCHEMATIC 3D SECTION OF THE KLOOF ORE BODY LOOKING NORTH-NORTHWEST
ASSET FUNDAMENTALS
Palaeo-placer
iii. C
lear patterns of mineralisation governed by sedimentary characteristics.
Deposit type
Shallow to ultra-deep gold mine exploiting various auriferous and uraniferous quartz pebble conglomerates
hosted by the Ventersdorp Contact Reef, the Kloof and Libanon Reefs of the Elsburg and Kimberley
Conglomerate Formations and the Middelvlei Reef of the Main Conglomerate Formation.
Kloof has a new order mining right in terms of the Minerals and Petroleum Resources Development Act, No 28,
2002 (MPRDA), valid from 30 January 2007 to 29 January 2027 in respect of a mining area totalling 20,087
hectares. All required operating permits have been obtained, and are in good standing.
Based on the current LoM and prevailing economic conditions, if needed, Kloof will ask for an extension of the
mining right through a renewal application at the specified time.
The Kloof operation also holds a prospecting right [DMR Ref. GP(10096)PR] in respect of a small area (25 ha)
confined within the Kloof mining right. Kloof has submitted a Section 102 application to amend Kloof’s mining
right through the inclusion of the prospecting right.
Infrastructure
Five shaft complexes (five sub-shafts and one tertiary shaft).
Mining method
Scattered stoping, mini longwall stoping with closely spaced dip pillars (75 x 25 m and 100 x 35 m regional
pillars) and surface rock dump mining.
Mineral processing
Two gold plants and a centralised elution and carbon treatment facility at the No 2 Plant:
i. No 1 CIP Plant – Processing only low-grade surface rock dump material; and
ii. No 2 CIP Plant – Processing underground ore.
Tailings disposal
Two tailing storage facilities with LoM deposition estimated at 36.5Mt against a combined capacity of 66.6Mt
(surplus of 30.1Mt).
Climate
54
Environmental/Health
and Safety
Kloof’s systems, procedures and training are on par with international best practice.
Life of Mine (LoM)
Competent Person(s)
The Competent Persons per mining unit (MU) designated in terms of SAMREC, that take responsibility for
the consolidation, reporting and overall compliance of Kloof’ Mineral Resources and Mineral Reserves are the
MU1: Main and 8 Shafts
Mr SJ Louw [MMCC] is a registered AMMSA member (No. 3156) and has 33 years’ experience;
MU2: 7 Shaft
Mr M Dekeda [BTech. MRM, MSCC] is a registered SAIMM member (No. 703902) and has 13 years’
experience;
MU3: 3 Shaft
Mr K Sibeko [ND Economic Geology; BSc. (Hon) Geology] is a registered GSSA member (No. 964872) and has
15 years’ experience; and
MU4: 4 Shaft
Mr JH Engelbrecht [GDE Mining Engineering NHD Mine Surveying, MSCC] is a registered SAIMM member (No.
706905) and has 32 years’ experience.
Internal technical reviews have been conducted by the Competent Persons listed who gave their consent
for the disclosure of the C2015 Mineral Resource and Mineral Reserve Statement. All have appropriate
experience relative to the type and style of mineral deposit under consideration and are full-time employees of
Sibanye.
REVIEW
Mineral Resources at Kloof decreased by
approximately 1.049Moz (-3.5%) to 29.329Moz
post a production depletion of 0.587Moz. The
year-on-year change is mainly due to geology
structure changes (-0.899Moz) and modelling
(-0.354Moz), offset by estimation gains
(+0.787Moz).
Mineral Reserves increased by 0.877Moz
(14.6%) to 6.900Moz post a production
depletion of 0.553Moz. This increase is mainly
as a result of the 4 Shaft Drop-down Project
estimated to add an additional 0.532Moz to the
LoM. Continued investigations into the economic
potential of white areas and secondary reefs
realised an additional 0.611Moz.
C2013 numbers added for comparison). A total
of 18.7km was developed in C2014 of which
4.0km was on-reef.
Unit
VCR
MR
LR
KR
C2014
C2013
C2012
Category
km
12.1
3.6
0.5
2.6
18.7
19.3
16.4
km
2.0
0.8
0.4
0.7
4.0
3.6
2.2
Channel width
cm
117
82
116
161
118
117
121
Average Reef Value
g/t
19.4
11.8
5.1
8.3
14.1
17.0
19.0
cm.g/t
2,273
970
595
1,325
1,664
1,864
2,365
A full account of all the operating statistics of Kloof is posted on the back of the Kloof shareholders plan attached at the end of this Mineral
The following projects have been included in the Kloof LoM:
• Kloof concluded a PFS on the mining of the area below 45 Level at Kloof 4 Shaft, resulting in additional Mineral Reserves of 0.532Moz
• A major exploration programme, targeted the Kloof and Middelvlei Reefs at Main and 8 Shafts, has resulted in additional Mineral Reserves
of 0.156Moz.
• The Eastern Boundary Area (EBA) Project, included in the Mineral Resources, embodies a significant high grade opportunity in the
area below 7 Shaft. Various studies conducted since the 1990s indicated that the EBA Project can be economically viable, and requires
further study.
55
THE KLOOF OPERATION
CONTINUED
Tons (Mt)
Gold Classification
Grade (g/t)
Gold (‘000 oz)
Dec 14
Dec 13
Dec 14
Dec 13
Dec 14
Dec 13
20.7
19.0
14.5
14.1
9,618
8,636
Underground
Measured
Indicated AI
1.9
2.9
12.6
11.7
775
1,088
Indicated BI
19.2
24.0
13.8
13.1
8,538
10,126
Inferred AI
–
–
–
–
–
–
Inferred BI
19.0
19.2
16.7
16.6
10,175
10,281
Total Underground
60.7
65.2
14.9
14.4
29,106
30,132
22.6
21.9
14.3
13.5
10,393
9,24
38.1
43.2
15.3
15.0
18,713
20,407
Indicated SRD
13.1
15.8
0.5
0.5
223
246
73.8
81.0
12.4
11.6
29,329
30,378
Surface
deemed significant.
3,000
400
2,000
300
200
1,000
100
0
500
1,000
2,000
2,500
Tons
Grade
Image
Well mineralised reef sample
Tons (millions)
500
56
Parameter
4,000
600
0
0
Modifying Factors
Unit
Dec 2014
Dec 2013
cm.g/t
1,610
1,560
cm.g/t
1,770
1,710
Mined value
cm.g/t
2,065
2,032
Mine Call Factor
%
82
83
Block factor
%
100
99
Shortfall
%
17
17
Mining dilution
%
34
34
Stoping width
cm
160
156
Mill width
cm
213
208
%
98
98
%
90
80
Tons (Mt)
Gold Classification
Grade (g/t)
Gold (‘000 oz)
Dec 14
Dec 13
Dec 14
Dec 13
Dec 14
Dec 13
Proved
11.3
11.9
8.1
9.4
2,932
3,599
Probable AI
12.8
10.3
7.9
6.6
3,243
2,178
24.1
22.2
8.0
8.1
6,175
5,777
2.1
–
7.9
–
532
–
26.2
22.2
8.0
8.1
6,706
5,777
Probable SRD
10.3
15.8
0.6
0.5
194
246
36.5
37.9
5.9
4.9
6,900
6,023
Underground
Probable BI
Total Underground
Surface
AI: Above infrastructure; BI: Below infrastructure. SRD: Surface Rock Dumps. Rounding-off of figures may result in minor computational discrepancies, where this happens it is not deemed
significant.
31 Dec 2014
Tons
(Mt)
Grade
(g/t)
Gold
(‘000 oz)
Tons
(Mt)
Main Shaft SV 1
1.7
4.0
211
Main Shaft SV 2
1.7
8.0
431
3 Shaft
1.5
11.8
4 Shaft
4.8
–
7 Shaft
8 Shaft
Mining Area
4 Shaft Drop-down
Total Underground
Surface rock dumps
31 Dec
2013
Grade
(g/t)
Gold
(‘000 oz)
Tons
(Mt)
Grade
(g/t)
Gold
(‘000 oz)
Gold
(‘000 oz)
2.2
4.2
293
3.8
4.1
504
446
2.4
11.2
860
4.1
9.8
1,292
1,214
568
1.3
9.8
415
2.8
10.8
983
927
8.6
1,334
5.8
7.9
1,474
10.7
8.2
2,809
2,626
–
–
2.1
7.9
532
2.1
7.9
532
–
1.2
8.6
323
0.9
6.1
169
2.0
7.5
492
462
0.4
4.5
64
0.2
4.5
31
0.7
4.5
95
103
11.3
8.1
2,932
14.9
7.9
3,774
26.2
8.0
6,706
5,777
–
–
–
10.3
0.6
194
10.3
0.6
194
246
11.3
8.1
2,932
25.2
4.9
3,968
36.5
5.9
6,900
6,023
Rounding-off of figures may result in minor computational discrepancies, where this happens it is not deemed significant.
(0.318)
4 Shaft Drop-down
0.532
Evaluation
0.105
Technical Factors
0.004
31 December 2014
6.900
6.900
2
0
Dec 2014
General exclusions
Technical Factors
0.773
Evaluation
Inclusion of white Areas1
0.004
K4 DD
0.156
0.105
4
General Exclusions
Secondary Reefs (7 & 8 Shafts)
0.532
(0.318)
White areas
0.178
0.178
Seconady Reefs
5.470
Structural changes at 4 Shaft
(0.553)
0.156
Geology
Post Depletion
6
Depletion
(0.553)
6.023
0.773
6.023
2013 Depletion
1
8
Dec 2013
31 December 2013
Gold Mineral Reserves Reconciliation
Moz
Gold (Moz)
Item
VCR (K2, K3, K4 & K7), Kloof (K8) and Middelvlei Reef (K1) additions
57
THE KLOOF OPERATION
CONTINUED
MAINTAIN OPERATION FOR A
FURTHER 19 YEARS.
6.9Moz
KLOOF MINERAL RESOURCE CLASSIFICATION
N
N
1km
Venterspost
2.5km
1km
2.5km
VS
2S
ha
ft
V
4 S Sha
ha ft
ft
8S
ha
3 Shaft (I)
3 Shaft (P)
3 Shaft (3D)
1S
Ma
in
Ma
in
Sh
aft
ft
9S
ha
10 Shaft
0
ft
0
7 Shaft
Legend
Shafts
Mine Boundary
Mined out Areas
VCR Subcrop
Pillars
55
Decline
KEA
4 Shaft EXT
EBA1
BBE
EBA
Classification
Measured
Indicated
Inferred
VCR
Hoisting and Production Capacities
Mining
Unit
Operational
Hoisting
Capacity (ktpm)
Planned
Production
(ktpm)*
1
Main
100
45
1
Main 1 SV
110
25
1
Main 2 SV
30
20
2
7
32
26
2
7 SV
32
26
2
8
13
14
3
3 SV
36
31
4
4
82
54
4
4 SV
120
54
58
Operating
Shaft
Plant Capacities
Design
Capacity
(ktpm)
Current
Operational
Capacity (ktpm)
Average
Recovery
Factor (%)
Material
Treated
180
180
90.0
SRD
2 (CIP)
120
165
97.8
UG
3 (Python)
150
Plant
1 (CIP)
Plant decommissioned in Q3 2014
SRD: Surface Rock Dump
N
N
0
1km
2.5km
0
1km
2.5km
Legend
Shafts
Mine Boundary
Mined out Areas
MR Subcrop
Pillars
Legend
Shafts
Mine Boundary
Mined out Areas
KR Subcrop
Pillars
Classification
Measured
Indicated
Inferred
Classification
Measured
Indicated
Inferred
Middelvlei Reef
Kloof Reef
Image
Kloof 7 shaft
59
SECTION 3 PROJECTS
PROJECTS
OPTIONS TO CREATE VALUE ARE
BEING ASSESSED AIMING TO GROW
SIBANYE’S MINERAL RESERVES
AND COMMODITY PRODUCTION
BY FOCUSING ON HIGH QUALITY
TARGETS AND OPPORTUNITIES BY
LEVERAGING OF A LARGE MINERAL
RESOURCE BASE
PROJECTS OVERVIEW
Growing Sibanye’s Mineral Resources
and Mineral Reserves, ensuring a premier
All-in Cost margin, maximising earnings
and returns to shareholders requires a
fundamental understanding of the potential
of each project to extract optimal value.
Following the 2014 acquisitions, Sibanye
now has a large endowment of brownfields
projects that are at various stages of
evaluation, from early stage scoping studies
to feasibility studies that can be underpinned
by leveraging synergies off existing
infrastructure. Project evaluation criteria
have been developed to guide the Mineral
Resource and Mineral Reserve estimations.
Current delivery on major advanced and
growth projects and steps to improve the
quality of the assets, in line with Sibanye’s
strategy, includes the following:
• Project appraisal is underpinned by a
focus on value creation and dividend yield
rather than driven by growth;
• In-house project assessment capacity has
been established; and
• Each project is assessed for risk, returns
and the impact of financing on returns.
60
SECTION 2 THE BURNSTONE PROJECT
THE BURNSTONE PROJECT
BURNSTONE PRESENTS AN
ATTRACTIVE OPPORTUNITY
FOR SIBANYE, FROM BOTH A
STRATEGIC AND OPERATIONAL
PERSPECTIVE, TO BUILD A FIT
FOR PURPOSE OPERATION
Mining Right
Section 102 Application
Towns
Arterial roads
Main roads
Coordinates
BALFOUR
BURNSTONE
PROJECT
Strategic intent:
• Opportunity to develop a new mine
from first principles, supported
by existing, newly built, plant and
infrastructure;
GREYLINGSTAD
• Geological model significantly
enhanced;
• Orebody lends itself to
conventional mining methods; and
• DFS scheduled for completion
early in 2015.
N
0 2.5km 5km
OVERVIEW
The Burnstone Project (Burnstone) is a new
gold mining operation currently under care
and maintenance, subject to the outcome of a
DFS currently in progress. The operation has
a Mining Right [DMR Ref. MP30/5/1/2/2(248)
MR] to mine and process gold, silver and
aggregate, covering a total area of 13,135
hectares, and is valid from 17 February 2009
to 16 February 2027.
Geographically Burnstone is in the South
Rand Goldfields of the Witwatersrand Basin
next to the town of Balfour, approximately
75 kilometres east of Johannesburg in the
Mpumalanga Province of South Africa.
Burnstone is accessed from the main
Johannesburg to Durban N3 highway via
the Heidelberg South R23 road at the
Balfour exit. The town of Balfour is located
Image
approximately 18 kilometres east of the N3.
The Burnstone property is accessible via a
network of unpaved roads, approximately 6.5
kilometres east of Balfour.
The Burnstone area forms part of a
physiographic region known as the South
African Highveld, lying at an altitude of
1,670 m (5,480 feet). Topographic relief
in the area is primarily a gently rolling
grassland terrain that is now intensively
farmed for maize, fodder and livestock, with
very little indigenous vegetation remaining
in the area. The climate is characterised as
mild, with warm to hot, moist summers and
cool dry winters.
Burnstone in its current form dates from
14 April 2014 when Sibanye purchased
Witwatersrand Consolidated Gold Resources
Limited and exercised the option to purchase
Southgold Exploration (Pty) Limited, the
sole owner of the Burnstone assets. The
current infrastructure consists of two shaft
complexes; a 3-leg decline and vertical shaft
(shaft bottom at 495 metres below surface),
a 125,000 tpm gold processing plant,
tailings storage facility and all the necessary
equipment and services of a producing
operation. The infrastructure for a fully
operational gold mine is largely complete.
Burnstone, under previous ownership,
produced approximately 38 koz of gold before
being put under care and maintenance in
mid-2012.
The ore body consists of the UK9 Reef of
the Kimberley Formation which constitutes
100% of the shallow underground Mineral
Resource ounces.
“A new, substantial goldfield”
61
CONTINUED
SCHEMATIC 3D SECTION OF THE BURNSTONE ORE BODY LOOKING NORTH
“Leverage
off historical
knowledge to build
a fit-for-purpose
operation”
PROJECT FUNDAMENTALS
The Burnstone Project is situated in the South
Rand Goldfields, which is an arcuate basin
bounded by a major fault (Sugarbush Fault) to
the north, and outcropping or sub-cropping to
the south, east and west. It is separated from
the Evander Basin (which lies to the north) by
the Devon Dome. Predominantly, the major
structure is a northeast-plunging syncline, cut
by east-west striking faults. The northern limb of
this syncline is deformed by a west-northwest to
east-southeast plunging anticline, resting in the
Central Rand Group, which includes the target
Kimberley Reef (UK9). The UK9 Reef occurs at
its shallowest depth along the axis of the anticline
and consequently the Burnstone mining right is
positioned mainly along and across the anticlinal
structure where the UK9 occurs on average
between 350 and 1,300 metres below surface.
The UK9 Reef is stratigraphically split into the
UK9a and UK9b members, while the UK9a is
further laterally subdivided into either channel or
inter-channel facies. The UK9a Channel Facies
represents the primary mining horizon, while the
UK9a Inter-channel Facies and UK9b offer only
local upside potential.
Outcropping Kimberley Reef in the South Rand
Goldfields was first discovered in 1887 and
soon led to the establishment of a few small
SCHEMATIC NORTH – SOUTH SECTION ACROSS THE BURNSTONE PROJECT, SHOWING THE RELATIONSHIP BETWEEN UK9a AND UK9b
SOUTH
NORTH
9a Channel Reef
4m
9b Channel remnants
62
9a Inter-channel Reef
operations that operated sporadically between
1892 and 1962 and collectively produced only
0.05Moz of gold at an average of 5.3g/t. A lack
in continuity of grade and tonnage as well as
structural complexity is commonly posed as the
reason for the demise of these operations.
In the seventies, a steep rise in the gold
price sparked renewed interest in the South
Rand Goldfields and various major mining
houses conducting fairly extensive exploration
programmes between 1974 and 1993, but
general low grades, notwithstanding at shallow
depths, resulted in a poor ranking against rival
projects elsewhere in the Wits Basin.
As a consequence, none of these projects were
advanced past the exploration phase.
Southgold Exploration (Pty) Ltd (Southgold),
incorporated in 2000, drilled an additional
18 boreholes to 2002. These were primarily
within the current Burnstone mining right area
and intermittently intersected higher grade
Kimberley Reef. In November 2002 Great Basin
Gold (GBG) acquired 100% of Southgold and
immediately embarked on an extensive surface
diamond drilling programme. Until September
2012, a further 374 boreholes were drilled,
either within, or in close proximity to the current
Burnstone mining right. Based on this drilling
programme, GBG declared a large Measured
and Indicated Gold Mineral Resource upon
which the Burnstone operation was initiated in
June 2006.
ASSET FUNDAMENTALS
Palaeo-placer
ii. Laterally continuous with mid-range predictability; and
Deposit type
Shallow gold deposit exploiting the UK9a Reef of the Kimberley Formation, Central Rand Group, Witwatersrand
Supergroup.
Burnstone Project has a new order mining right in terms of the Minerals and Petroleum Resources Development
Act, 2002 (Act No. 28 of 2002), valid from 17 February 2009 to 16 February 2027 in respect of an area totalling
13,135.724 hectares. All required operating permits have been obtained, and are in good standing.
Burnstone also holds a large number of prospecting rights contiguous around the Burnstone mining right.
Burnstone is in the process of finalising a Section 102 application to amend the Burnstone mining right with the
inclusion of certain farms or portions thereof that form part of the prospecting right holdings.
Infrastructure
Shallow underground mining project with two established shaft complexes (one vertical and one decline shaft).
Mining method
Conventional selective scattered breast mining with scraper cleaning and mechanised footwall infrastructure.
Mineral processing
One CIL gold processing plant.
Tailings disposal
One tailing storage facilities with LoM deposition capacity of 43Mt.
Climate
The area is characterised by a mild climate, with warm to hot, moist summers and cool dry winters. No extreme
climate conditions are experienced that may affect mining operations.
Safety
Burnstone currently holds all material permits required to conduct mining and exploration, as well as an
approved EMP.
Life of Mine (LoM)
LoM Plan optimisation in progress.
Competent Person(s)
The Competent Persons designated in terms of SAMREC, that take responsibility for the consolidation, reporting
and overall compliance of Burnstone’ Mineral Resources are:
Mr J van Eeden [MSc (Geology)] is a registered SACNASP member (No. 400043/09) and has 31 years’ experience;
and
Mr GJ Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC] is a registered PLATO member (No. PMS0243)
and has 27 years’ experience.
disclosure of the C2015 Mineral Resource Statement. The competent persons have appropriate experience
relative to the type and style of mineral deposit under consideration and are a full-time employees of Sibanye.
63
CONTINUED
REVIEW
A maiden gold Mineral Resource of 54.1Mt at an
average grade of 5.1g/t for 8.890Moz has been
declared for the Burnstone Project.
KEY DEVELOPMENTS DURING 2014:
1.Initiation of an in-house pre-feasibility study
shortly after Sibanye acquired Wits Gold in
April 2014;
2.The geology models for the project have been
significantly revised after extensive re-logging
of the existing surface boreholes and detailed
underground geological mapping of accessible
development haulages and existing stopes;
3.Data gaps for meaningful Mineral Resource
evaluation and classification have been
addressed with additional infill exploration
drilling. Five surface boreholes were drilled
some distance west-northwest of the previous
mine workings;
4.The review included an updated structure model
and a detailed sedimentological study of the
UK9 Reef led to an updated facies model and
related geo-domains and trends for evaluation;
5.A thorough review and QA/QC of all the data in
line with Sibanye’s standards and procedures.
The revised model is consistent with the
characteristics of similar ore bodies in the East
Rand Basin, affording greater confidence in the
interpretation and supporting the gold Mineral
Resource estimate;
6.A maiden gold Mineral Resource estimation; and
7.DFS scheduled for completion in Q1 2015.
Gold Mineral Resource Classification as at 31 December 2014
Gold
Classification
Tons
(Mt)
Grade
(g/t)
Gold
(‘000 oz)
Measured
–
–
–
Indicated
25.4
5.3
4,350
Inferred
28.7
4.9
4,540
54.1
5.1
8,890
The grade tonnage curve represents undiluted grade (at block width) and tons within the total Mineral
Resources.
3,500
250
Tons (millions)
2,500
150
2,000
1,500
100
1,000
50
500
0
0
500
1,000
1,500
Tons
64
Grade
2,000
2,500
0
3,000
200
Image
Burnstone historic mining
Image
TSF monitoring
65
SECTION 2 THE WEST RAND TAILINGS RETREATMENT PROJECT
THE WEST RAND TAILINGS RETREATMENT PROJECT
Mining Right
TSF Active
TSF Dormant
Planned Regional TSF
Towns
National Roads
Arterial Roads
Main Roads
Surface Plants
Shafts
New Central Plant
(Planned)
SIBANYE IS ON TRACK WITH
ITS VISION OF CREATING
SUSTAINABLE VALUE FOR ALL
ITS STAKEHOLDERS AND BY
GROWING THE BUSINESS,
SIBANYE WILL BE ABLE TO
PROVIDE THAT VALUE INTO
THE FUTURE.
(-0.3% year-on-year)
Coordinates
HARMONY
DOORNKOP
PLANT
COOKE 1,2,3
WESTONARIA
CARLETONVILLE
ZUURBEKOM
PROSPECTING
RIGHT
COOKE 4
DRIEFONTEIN
Strategic intent:
FOCHVILLE
• Building Sibanye’s “sixth”
Operation;
• The strategic phasing of capital in
order to generate cash flow and
enhanced value;
• Considering utilisation of existing
surface infrastructure; and
• Additional metallurgical test work
and Front End Engineering Design
to be executed over the next
months, following the successful
outcome of a DFS.
OVERVIEW
Historically, Witwatersrand gold mine tailings
have been treated very successfully for gold
and uranium. Sibanye currently operates in a
region with a long history of gold and uranium
mining, which contains numerous old tailings
storage facilities, that contains recoverable
grades of gold and uranium.
The West Rand Tailings Retreatment Project
(WRTRP) incorporates all Sibanye’s current
and dormant tailing storage facilities (TSF)
on the West Rand, all of which form part of
new order mining rights as well as several
prospecting rights, collectively valid from
2007 to 2027 (earliest expiry date of a valid
mining right). The WRTRP assets stretch
from Randfontein to Carletonville and is
66
N
KLOOF
Uranium Mineral Reserves 98.653Mlb
• Regional consolidation
opportunities present potential
upside;
RANDFONTEIN
SURFACE
RANDFONTEIN
accessed via the local R28 highway between
Randfontein and Westonaria, or via the N12
national road between Johannesburg and
Potchefstroom.
The surface topography over the area is
characterised by moderately undulating
plains, with savannah grassland being
the natural vegetation in the area. Premining conditions were generally that of
farmlands, which is now largely built-up and
industrialised. The area is characterised
by a mild climate, with warm to hot, moist
summers and cool dry winters.
The WRTRP in its current form dates from May
2014 when Sibanye acquired the Cooke assets
from Gold One, merging the Cooke TSF assets
with that of the historic Kloof and Driefontein
WRTRP TSF assets.
The WRTRP is key to the Sibanye surface
operation’s strategy, which involves leveraging
existing surface operations and infrastructure
and developing a strong, long-life surface
business, by exploiting the low-risk and
relatively high-margin characteristics of the
surface resources located on the West Rand.
The WRTRP is well positioned to become
Sibanye’s sixth mine and also presents a
valuable environmental solution for existing
and future surface tailings, promoting socially
and environmentally responsible deposition of
tailings in a centrally managed area.
Prior to a WRTRP pre-feasibility study
a number of other studies have been
0
5km
conducted including the Gold Fields Limited
Tailings Treatment Project (DFS accuracy),
Cooke Uranium Project (DFS accuracy and
70% engineering), Gold Fields/Senet Kloof
Driefontein Complex Study (PFS accuracy)
and the West Rand Surface Optimisation
Scoping Study.
The business rationale leading to the current
Sibanye status of the WRTRP is based on the
following:
• Value accretive (NPV and IRR positive
project);
• Regional synergies add potential upside
to current value
• Remediation solution for existing and future
surface tailings;
• Extracting residual gold and uranium
unlocks value
• Leverages existing metallurgical capacity
and extends operational life
• Reduces future environmental liability
• Releases land for development
• A modular and phased design to get into
business; and
• Utilising capacity at existing
infrastructure (lower upfront capital)
• Phased and flexible capital scheduling
• Early phases partially fund later capex
• Flexibility and leverage to future
commodity prices
• Significant investment into the declining
West Rand.
• Direct and indirect job creation
SECTION 2 THE WEST RAND TAILINGS RETREATMENT PROJECT
REVIEW
The WRTRP pre-feasibility study (assessing
the potential for extraction of gold and
uranium from Sibanye’s West Wits Line and
the adjacent Cooke TSF’s), was successfully
concluded and is currently the subject of
a definitive feasibility study. The Sibanye
gold and uranium Mineral Resource and
Mineral Reserve estimate for the WRTRP are
tabulated below and are compliant in respect
of the SAMREC Code.
The gold and uranium Mineral Resources
and Mineral Reserves year-on-year remain
largely unchanged with only a small increase
in Mineral Reserves due to deposition on
active TSFs during 2014 (Gold 0.037Moz and
Uranium 1.242Mlb).
KEY DEVELOPMENTS
Studies to date confirmed the economic
viability of the WRTRP, which involves
the construction of a large-scale Central
Processing Plant for the extraction of gold and
uranium from the re-treatment of historic and
current tailings. A further objective remains
the re-deposition of the residue in accordance
with modern sustainable deposition practices,
reducing future environmental liabilities.
Sibanye’s revised strategy is to develop
the WRTRP in phases. The DSF will be
concluded during Q1 2015 and following a
successful outcome may move into a Front
End Engineering Design phase together with
the roll out of a pilot plant.
Gold Mineral Resource and Mineral Reserve Classification
Mineral Resources
Mineral Reserves
Dec
2013
31 Dec 2014
Gold
Classification
Tons
(Mt)
Grade
(g/t)
Gold
(‘000oz)
Gold Gold
(‘000oz) Classification
Tailings Storage Facilities
Tons
(Mt)
Grade
(g/t)
Gold
(‘000oz)
Gold
(‘000oz)
Driefontein (Measured)
166.4
0.337
1,805
–
–
–
Kloof (Measured)
262.2
0.267
2,253
Kloof (Indicated)
–
–
–
Cooke (Measured)
228.1
0.256
1,876
Cooke (Indicated)
52.3
0.312
524
709.0
0.283
6,459
Total
Dec
2013
31 Dec 2014
1,786 Driefontein (Proved)
– Driefontein (Probable)
2,236 Kloof (Proved)
– Kloof (Probable)
1,930 Cooke (Proved)
524 Cooke (Probable)
6,475 Total
–
–
–
–
166.4
0.337
1,805
1,786
–
–
–
–
262.2
0.267
2,253
2,236
–
–
–
–
280.4
0.266
2,401
2,400
709.0
0.283
6,459
6,422
Mineral Resources reported inclusive of Mineral Reserves. Rounding-off of figures may result in minor computational discrepancies. Where this happens it is not deemed significant.
1
he Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of WRTRP’s 2014 gold Mineral Resources and Mineral
T
Reserves are: Mr LCK Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM member (No. 704140), Mr I Davidson [BSc. (Hons) Geology] is a registered SAIMM
member (No. 706805) and Mr GJ Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC] a registered PLATO member (No. PMS0243). Internal technical reviews have been conducted by
the Competent Persons who gave consent for the disclosure of the C2015 WRTRP gold Mineral Resource and Mineral Reserve Statement. The Competent Persons have appropriate experience
relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye.
Uranium Mineral Resource and Mineral Reserve Classification
Mineral Resources
Mineral Reserves
Dec
2013
31 Dec 2014
Uranium
Classification
Tons
(Mt)
Grade
(kg/t)
U3O8
(‘000lb)
U3O8
(‘000lb)
Driefontein (Measured)
158.2
0.064
22.326
21.764
–
–
–
–
Kloof (Measured)
262.2
0.038
22,071
21,391
Kloof (Indicated)
–
–
–
–
Cooke (Measured)
228.1
0.088
44,320
44,840
Cooke (Indicated)
52.3
0.086
9,936
9,936
700.8
0.064
98,653
97,931
Total
Dec
2013
31 Dec 2014
Uranium
Classification
Tons
(Mt)
Grade
(kg/t)
U3O8
(‘000lb)
U3O8
(‘000lb)
Driefontein (Proved)
Kloof (Proved)
Kloof (Probable)
–
–
–
–
158.2
0.064
22.326
21.764
–
–
–
–
262.2
0.038
22,071
21,391
–
–
–
44,320
Cooke (Probable)
280.4
0.088
54,256
9,936
Total
700.8
0.064
98,653
97,411
Cooke (Proved)
1
he Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of WRTRP’s 2014 uranium Mineral Resources and
T
Mineral Reserves are: Mr LCK Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM member (No. 704140), Mr I Davidson [BSc. (Hons) Geology] is a registered
SAIMM member (No. 706805) and Mr GJ Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC] a registered PLATO member (No. PMS0243). Internal technical reviews have been
conducted by the Competent Persons who gave consent for the disclosure of the C2015 WRTRP uranium Mineral Resource and Mineral Reserve Statement. The Competent Persons have
appropriate experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye.
67
SECTION 2 THE SOUTHERN ORANGE FREE STATE PROJECTS
THE SOUTHERN ORANGE FREE STATE PROJECTS
SOFS Mining Right
Prospecting Rights
Towns
Arterial Roads
Main roads
OPTIONS TO INCREASE VALUE
ARE BEING ASSESSED AIMING
TO GROW SIBANYE’S MINERAL
RESERVES AND COMMODITY
PRODUCTION BY FOCUSING
ON HIGH-QUALITY TARGETS
AND OPPORTUNITIES BY
LEVERAGING OFF A LARGE
MINERAL RESOURCE BASE.
WEKOM
BEISA
NORTH
VIRGINIA
HAKKIES
DE-BRON
MERRIESPRUIT
ROBIJN
BLOEMHOEK
HARMONY GOLD
MINING COMPANY
BEISA
SOUTH
(not estimated)
N
Strategic intent:
0
• Sibanye has thoroughly reviewed the
geology and LoM models per SOFS
project;
• Mineral Resources and Mineral
Reserves were re-estimated in
accordance with Sibanye’s protocols
and procedures;
• Optimisation of any potential
synergies with the Beatrix Operation
is being investigated; and
• Ensure optimal capital employment,
sustainability of dividend profile.
THEUNISSEN
OVERVIEW
The Southern Orange Free State (SOFS)
Projects include Sibanye’s Wits Gold mining
and prospecting right holdings in the
Free State Goldfields of the Witwatersrand
Basin. The mining right consolidating
the De-Bron Merriespruit, Bloemhoek,
Hakkies and Robijn Projects into DMR
Ref. FS30/5/1/2/2(10005)MR mining right,
has been approved for a period of 23 years
and is in the process of being executed.
Geographically the mining right is situated
contiguous to the east of the Beatrix mining
right some 5km south of Virginia. The
prospecting rights are for the Beisa North
[DMR Ref. FS30/5/1/1/2(486)PR] and Beisa
South [DMR Ref. FS30/5/1/1/2(487)PR]
Projects, which are respectively contiguous to
the north and south of the Beatrix (Beisa) 4
Shaft ground. The prospecting rights
are valid until April 2016 and February
2016 respectively.
The topography of the area is relatively flat,
situated in a semi-arid region. Conditions are
generally that of farmlands, where the natural
vegetation has been removed and replaced
with cultivated crops. No extreme weather
conditions are experienced that may affect
exploration or mining operations.
68
5km
The SOFS in its current form dates from
April 2014 when Sibanye acquired Wits
Gold. Sibanye is in the process of finalising a
Section 102 application seeking consent from
the Minister of Mineral Resources to amend
the Beatrix mining right by consolidating the
Beatrix mining right and the SOFS mining and
prospecting righs.
SOFS REGIONAL GEOLOGY
A three dimensional reconstruction of the
Central Rand Group stratigraphy in the
Free State Goldfield indicates a progressive
southerly thinning of the sequence, south of
the Sand River, into the SOFS mining and
prospecting right areas. This attenuation of
the Central Rand Group is related to uplift
during the latter phase of deposition in the
Basin, causing erosion by superimposed,
on-lapping unconformities. These erosional
relationships particularly affected the Basal
Reef (main economic horizon of the historic
gold mines around Welkom) that subcrops
and does not extend to the south of the Sand
River. However, four other Reefs, prospective
for gold and uranium, have been intersected
in the Central Rand Group in the area south of
the Sand River and include the Leader Reef,
the B Reef, the Aandenk/Kalkoenkrans Reef
and the Beatrix/VS5 Reef. The Beisa Reef has
also been extensively explored, as a potential
uranium resource, along the over-folded western
margin of the Southern Free State Goldfields.
The Beatrix/VS5 unconformity at the base of the
Eldorado Formation (Eldorado Unconformity)
is developed across the entire SOFS area and
therefore represents a reference surface for the
construction of a structural map of the area.
The resultant structure contours indicate that
the Central Rand Group is deformed in a broad
syncline, with smaller parasitic folds marking the
southern limit of the prospective Witwatersrand
Basin. This compression was responsible for
active uplift towards the southern margin of the
Free State Goldfield that resulted in a complex
interplay between a series of superimposed
unconformity surfaces. Repeated erosion of the
footwall sequences caused the incorporation and
winnowing of auriferous and uraniferous detritus
into the reefs overlying the unconformities.
The north-easterly-plunging fold has been
off-set by a series of later normal faults related
to the regional Platberg extensional event. The
normal faults generally strike north-south, the
most significant being the De-Bron Fault, which
has a relative down-throw of more than 1,000
metres towards the west. A structure of greater
magnitude, the Virginia Fault, strikes northnortheast and with a down throw to the east is
responsible for the preservation of the Central
Rand Group stratigraphy in the Robijn outlier.
The Merriespruit Thrust Fault is a southerlyverging compressional structure that has an
effective vertical displacement of 50 to 100
metre to the east of the De-Bron Fault. These
structures divide the SOFS area into four discrete
domains or project areas in which the depth of
the prospective reefs below surface will have a
profound effect on any plan to exploit
these resources.
STRATIGRAPHIC COLUMN FOR THE FREE STATE GOLDFIELDS
Formation
TURFONTEIN SUBGROUP
Eldorado
Member
Dreyerskuil
VCR
Uitkyk
VS1a
Lorraine
Van Den Heeversrust
VS1
VS2
VS2
Rosedale
Beatrix
VS4
Beatrrix /VS5 Reef
A Reef
Aandenk
Aandenk Reef
Kalkoenkrans Reef
B Reef
Doornkop
Dagbreek
Upper Shale Marker
Leader Reef
Harmony
JOHANNESBURG SUBGROUP
CENTRAL RAND GROUP
Spes Bona
Welkom
St Helena
Middle Reef
Saaiplaas Reef
Basal/Steyn Reef
LF1
LF2
LF3
Intermediate Reef/UF4
MF1
MF2
MF3
MF4
LF1 to LF4
LF5
Virginia
Commonage Reef
LF6
Maraisburg
Beisa Reef
69
CONTINUED
SCHEMATIC 3D SECTION OF THE SOFS ORE BODY LOOKING NORTH
SOFS PROJECT REVIEW
Since acquiring Wits Gold in April 2014, Sibanye has thoroughly reviewed the geological and LoM models of the De-Bron Merriespruit, Bloemhoek,
Hakkies and Robijn, and Beisa North and Beisa South Projects in the SOFS, and re-estimated the respective Mineral Resources in accordance with
the Group’s protocols and procedures and benchmark pay limits from the Beatrix Operation. Sibanye is satisfied that the potential exploitable reefs
identified and evaluated have been interpreted with a high degree of diligence with respect to their stratigraphic continuity and geology structure.
Following is a short synopsis of each project.
1. DE-BRON MERRIESPRUIT PROJECT
The De-Bron Merriespruit (DBM) Project is
located between the De-Bron Fault, which
marks the western boundary of the project,
and the Virginia Fault in the east. The
northern boundary includes the southern
extent of the old Merriespruit gold mine
obtained from Harmony, while the southern
boundary extends past the subcrop position
of the potential ore bodies (reefs). The DBM
Project is the only SOFS project that was
subjected to a feasibility study.
Four primary reef horizons containing
gold and uranium are developed on welldefined regional unconformities in the DBM
Project area. These include the Beatrix/
VS5, Aandenk, B and Leader Reefs, all of
which have been mined extensively in the
southern Free State Goldfields. The four
reefs are developed within a 20 to 40 metre
stratigraphic interval on the DBM property
and are preserved at depths of between
70
500 and 1,200 metres below surface. The,
Beatrix/VS5 and Aandenk Reefs constitute
the principal economic orebody, while the less
extensive Leader and B Reefs are regarded
as up-side potential for the Project. The reefs
are generally characterised by shallow dips of
between 10 and 25 degrees and a thickness
of 60 to 210 cm that make them suitable
for exploitation by means of typical narrow
stoping techniques similar as conducted at
the Beatrix operation.
The Leader, B and Aandenk Reefs all
subcrop against the Beatrix/VS5 unconformity
across the project area. This unconformity is
undulating to mild channel forming, causing
complex subcrop patterns.
The erosion and reworking of underlying reefs
is believed to play a strong role in controlling
the gold and uranium mineralisation in the
VS5 Reef. Consequently, gold mineralisation
increases south of the respective subcrops,
as the VS5 Reef becomes more oligomictic
due to the re-working of the underlying
material. This coincides with the development
of “Transitional Facies” of the VS5 and
eventually the Beatrix Reef facies. All four of
the above reefs contain uranium, although
the quantities are regarded as uneconomic
at current price levels and therefore has not
been included in the valuation models.
Historically a total of 72 boreholes (31
surface and 41 underground) were drilled
in the DBM Project area and immediate
surrounds. Wits Gold has drilled an additional
27 boreholes within the project area between
2006 and 2012. General consensus is that
adequate quality assurance and quality
control has been applied for the data to be
used for evaluation. Royal HaskoningDHV
subsequently completed a feasibility study
for the DBM Project in 2013, which led to a
SAMREC Code compliant Mineral Reserve
declaration by Wits Gold.
ASSET FUNDAMENTALS
Palaeo-placer
ii. Laterally continuous with mid-range predictability; and
Deposit type
Shallow gold/uranium deposits comprising the Beatrix/VS5, Aandenk, B and Leader Reefs of the Central Rand
Group; Witwatersrand Supergroup.
De-Bron Merriespruit Project forms part of a mining right in terms of the Minerals and Petroleum Resources
Development Act, 2002 (Act No. 28 of 2002), in respect of an area totalling 13,135 hectares. Although the
mining right [DMR Ref. FS30/5/1/2/2(10005)MR] has been granted (25 February 2014) it still has to be
executed. The DBM portion of the mining right totals approximately 4,344 hectares.
All required permits relative to the status of the project have been obtained, and are in good standing.
Infrastructure
Exploration project of which a feasibility study has been completed in 2013. No mining activities have been
initiated yet.
Mining method
A provisional mine design caters for a standard Witwatersrand gold mine design accessing underground ore
body via a vertical and decline shaft system and utilising conventional scattered breast mining methods .
Climate
The area is characterised by a mild climate, with warm to hot, moist summers and cool dry winters. No
extreme climate conditions are experienced that may affect mining operations.
Life of Mine (LoM)
2013 feasibility study indicated an estimated LoM of 23 years (to be reviewed by Sibanye during 2015).
REVIEW
At the DBM, the application of Sibanye’s Mineral Resources estimation protocols, procedures and benchmarked pay limits, resulted in the gold
Mineral Resource declining from 10.900Moz to 4.022Moz. Subsequent updates to the economic inputs by Sibanye resulted in the uranium
Mineral Resources being omitted from the December 2014 Statement. The gold Mineral Reserves were derived from the latest revised geology and
estimation models, with the mine design and capital based on that of the original feasibility study conducted by Royal HaskoningDHV in 2013. The
gold Mineral Reserves also declined from 3.100Moz to 2.088Moz.
During 2015, Sibanye intends undertaking a full review of this feasibility study with a view to optimising any potential synergies with the Beatrix
Operation, and to optimise the mining plan in line with the restated estimation models.
Gold Mineral Resource and Mineral Reserve Classification 1 and 2
Mineral Resources
Mineral Reserves
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(g/t)
Gold
(‘000oz)
Gold
(‘000oz)
Measured
–
–
–
–
Indicated
23.0
4.5
3,307
5.3
4.2
715
3,400
28.3
4.4
4,022
10,900
Gold Classification
Underground
Inferred
Total
Dec
2013
31 Dec 2014
Gold Classification
Tons
(Mt)
Grade
(g/t)
Gold
(‘000oz)
Gold
(‘000oz)
–
–
–
–
17.4
3.7
2,088
3,100
17.4
3.7
2,088
3,100
Underground
Proved
7,500 Probable
Total
1
he Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of DBM’s 2014 gold Mineral Resources and Mineral
T
Reserves are: Mr Q Meyer [MSc. Geology], a registered SACNASP member (No. 400063/88), Mr LCK Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM
member (No. 704140), Mr J van Eeden [MSc. Geology], a registered SACNASP member (No. 400043/09) and Mr GJ Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC], a registered
PLATO member (No. PMS0243). Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 De-Bron Merriespruit gold
Mineral Resource and Mineral Reserve Statement. The Competent Persons have appropriate experience relative to the type and style of mineral deposit under consideration and are full-time
employees of Sibanye.
2
he Competent Person designated in terms of SAMREC, who took responsibility for the reporting of the De-Bron Merriespruit Project Mineral Reserves as at 20 August 2013, was Mr JHK
T
Hudson, Principal Engineer employed by Royal HaskoningDHV. The Competent Person designated in terms of SAMREC, who took responsibility for the reporting of the De-Bron Merriespruit
Project gold Mineral Resources as at 20 August 2013, was Mr G Gilchrist, BSc (Hons) Geology, MGSSA, Pr.Sci.Nat. The total gold Mineral Resources and Mineral Reserves at this project were
determined at a cut-off of 300cm.g/t. This 2013 Mineral Resource and Mineral Reserve statement was declared by Wits Gold and was deemed compliant with the SAMREC Code.
71
CONTINUED
Uranium Mineral Resource and Mineral Reserve Classification 1 and 2
Mineral Resources
Mineral Reserves
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(kg/t)
U 3 O8
(‘000lb)
U3O8
(‘000lb)
Underground
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(kg/t)
U3O8
(‘000lb)
U3O8
(‘000lb)
Proved
–
–
–
–
Probable
–
–
–
–
Total
–
–
–
–
Underground
Measured
–
–
–
-
Indicated
–
–
–
8,200
Inferred
–
–
–
4,600
Total
–
–
–
12,800
1
he Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of DBM’s 2014 uranium Mineral Resources and Mineral
T
Reserves are: Mr Q Meyer [MSc. Geology], a registered SACNASP member (No. 400063/88), Mr LCK Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM
member (No. 704140), Mr J van Eeden [MSc. Geology], a registered SACNASP member (No. 400043/09) and Mr GJ Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC], a registered
PLATO member (No. PMS0243). Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 De-Bron Merriespruit uranium
2
he Competent Person designated in terms of SAMREC, who took responsibility for the reporting of the De-Bron Merriespruit Project Mineral Reserves as at 20 August 2013, was Mr JHK
T
Hudson, Principal Engineer employed by Royal HaskoningDHV. The Competent Person designated in terms of SAMREC, who takes responsibility for the reporting of the De-Bron Merriespruit
Project gold Mineral Resources as at 20 August 2013, was Mr G Gilchrist, BSc (Hons) Geology, MGSSA, Pr.Sci.Nat. This 2013 Mineral Resource and Mineral Reserve statement was declared by
Wits Gold and was deemed compliant with the SAMREC Code.
20
500
0
0
7.354
1,000
2.088
40
Dec 2014
1,500
Technical factors
60
(0.248)
1
0
Pay limit
2,000
(1.082)
2
Evaluation
80
(0.000)
Depletion
2,500
3
3.100
100
0.318
Dec 2013
3,000
4
Gold (Moz)
120
Tons (millions)
0
500
1,000
1,500
2,000
2,500
Tons
Grade
Item
31 December 2013
2014 Depletion
Post Depletion
Pay limit/extraction
Evaluation
Technical factors
31 December 2014
72
Moz
3.100
–
3.100
(1.082)
0.318
(0.248)
2.088
2. BLOEMHOEK PROJECT
The Bloemhoek Project constitutes the western
extent of the SOFS mining right, covering
an area of approximately 4,060 hectares.
The southern boundary of the Bloemhoek
Project is situated a few hundred metres
north of Beatrix 3 Shaft and is enclosed to
the north by the Beatrix mining right and
bounded to the east along the De-Bron Fault.
The Bloemhoek Project was the subject of a
pre-feasibility study in 2009 conducted by
Turnberry Projects (Pty) Ltd, with subsequent
updates to the economic inputs undertaken
by Wits Gold in 2013.
in the Bloemhoek Project area, namely the
Beatrix/VS5, Aandenk, B and Leader Reefs.
Geology fundamentals described for the four
reefs at DBM are similar for the Bloemhoek
Project where the four reefs are preserved at
depths of between 1,300 metres and 2,400
metres below surface, are between 100 to
250 cm thick and generally characterised by
shallow dips of between 10 and 20 degrees.
From 1947 to 2004, a total of 28 surface
boreholes were drilled in the Bloemhoek
Project. Most of this drilling was completed by
Anglo American during the 1980s. Wits Gold
acquired the property and data in 2004 and
subsequently drilled a further four boreholes
which culminated in a pre-feasibility study,
completed in 2009 with a SAMREC Code
compliant Mineral Resource and Mineral
Reserve Statement.
Situated west of the De-Bron Fault that
separates the DBM and Bloemhoek
Projects, the same four primary reef horizons
encountered in the DBM Project are developed
REVIEW
New geological models, incorporating
borehole data from both Wits Gold and
Beatrix has resulted in a comprehensive
revision of the geology models for the
Bloemhoek Project. A combination of the
application of Sibanye’s improved Mineral
Resource estimation protocol and higher cutoff grades, has resulted in the gold Mineral
Resources decreasing from 14.000Moz
to 4.297Moz and the uranium Mineral
Resources revoked from the December
2014 declaration. The Group is reviewing
the economic viability of accessing part of
the Bloemhoek Mineral Resources from the
existing Beatrix underground infrastructure.
As a consequence, no gold Mineral Reserves
will be declared on the Bloemhoek Project
until these studies have been completed.
Gold Mineral Resource and Mineral Reserve Classification 1 and 2
Mineral Resources
Mineral Reserves
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(g/t)
Gold
(‘000oz)
Gold
(‘000oz)
Measured
–
–
–
–
Indicated
27.4
4.7
4,163
10,600
0.9
4.9
135
3,400
28.3
4.7
4,297
14,000
Gold Classification
Underground
Inferred
Total
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(g/t)
Gold
(‘000oz)
Proved
–
–
–
–
Probable
–
–
–
5,400
Total
–
–
–
5,400
Gold Classification
Gold
(‘000oz)
Underground
1
The Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of Bloemhoek’s 2014 gold Mineral Resources and
Mineral Reserves are: Mr Q Meyer [MSc. Geology], a registered SACNASP member (No. 400063/88), Mr LCK Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered
SAIMM member (No. 704140), Mr J van Eeden [MSc. Geology], a registered SACNASP member (No. 400043/09) and Mr GJ Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC],
a registered PLATO member (No. PMS0243). Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 Bloemhoek gold
2
The 2013 Bloemhoek Project Mineral Resources and Mineral Reserves were based on a Technical Report National Instrument 43-101 Technical Report, in accordance with Form 43-101F1
on behalf of Wits Gold, compiled by Turnberry Projects (Pty) Ltd in September 2009. The Qualified Persons for the preparation of this pre-feasibility study report were Gordon Cunningham and
Timothy Spindler.
Uranium Mineral Resource and Mineral Reserve Classification 1 and 2
Mineral Resources
Mineral Reserves
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(kg/t)
U3O8
(‘000lb)
Measured
–
–
–
Indicated
–
–
Inferred
–
–
Total
–
–
U3O8
(‘000lb) Uranium Classification
Underground
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(kg/t)
U3O8
(‘000lb)
U3O8
(‘000lb)
Underground
–
Proved
–
–
–
–
–
–
Probable
–
–
–
–
–
20,900
–
20,900
Total
–
–
–
–
1
The Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of Bloemhoeks’s 2014 uranium Mineral Resources and
SAIMM member (No. 704140), Mr J van Eeden [MSc. Geology], a registered SACNASP member (No. 400043/09) and Mr GJ Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC], a
registered PLATO member (No. PMS0243). Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 Bloemhoek uranium
2
The 2013 Bloemhoek Project Mineral Resources and Mineral Reserves were based on a Technical Report National Instrument 43-101 Technical Report, in accordance with Form 43-101F1 on behalf
of Wits Gold, compiled by Turnberry Projects (Pty) Ltd in September 2009. The Qualified Persons for the preparation of this pre-feasibility study report were Gordon Cunningham and Timothy Spindler.
73
CONTINUED
3. HAKKIES AND ROBIJN PROJECTS
The Hakkies Project, approximately 1,686
hectares in size, extends over an L-shaped
area due south of the Sand River, west of
the De-Bron Fault and directly north of the
Bloemhoek Project. Of all the project areas of
the SOFS mining right, the Hakkies Project,
has the most northerly location where the
thickest stratigraphic sequence, containing
the various target reefs, is preserved.
As a consequence of the Hakkies Project
location, all four of the principle reefs of the
SOFS mining right are extensively preserved
within the area. While the Beatrix/VS5 and
Aandenk Reefs are ubiquitously present,
the B and Leader Reefs subcrop against the
Eldorado Unconformity in the extreme south.
The reef facies on the Eldorado Unconformity
is dominated by the polymictic VS5 Reef,
which covers most of the Hakkies Project area.
The Robijn Project is also a subset of
the SOFS mining right with a size of
approximately 6,870 hectares and occupies
the eastern portion of the right where the
potential economic horizons are located east
of the Virginia Fault. The fault displaces the
potential economic horizons that subcrop in
the De-Bron Merriespruit Project downwards
to the east, preserving a wedge (or half
graben) of the relevant Central Rand Group
stratigraphy in the Robijn Project area.
The Eldorado Unconformity (Beatrix/VS5
basal contact) is also extensively preserved
in the Robijn Project area and is overlain by
a polymictic VS5 Reef in the north and an
oligomictic Beatrix Reef in the south of the
property. From its eastern subcrop against the
Karoo Supergroup at a depth of approximately
550 metres below surface, the Beatrix/VS5
Reef zone dips westwards to reach a depth
of 2,200 metres below surface at the Virginia
Fault. Only relatively small remnants of the
Aandenk and Leader Reefs are preserved
below the Eldorado Unconformity.
REVIEW
Sibanye has thoroughly reviewed the geology
and LoM models of the acquired Wits Gold
Hakkies & Robijn Projects and re-estimated
their gold and uranium Mineral Resources,
in accordance with the Group’s protocols and
procedures.
Subsequent updates to the economic
inputs by Sibanye resulted in the gold and
uranium Mineral Resources revoked from the
December 2014 Statement.
Sibanye intends to review the full strategic
importance of the two projects, seeking
optimisation of any potential synergies with
the Beatrix Operation, while ensuring optimal
capital employment and sustainability of the
Group’s dividend profile. No exploration is
planned for the projects in 2015.
Hakkies and Robijn Gold Mineral Resource and Mineral Reserve Classification1 and 2
Mineral Resources
Mineral Reserves
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(g/t)
Gold
(‘000oz)
Measured
–
–
–
–
Indicated
–
–
–
5,400
Inferred
Total
–
–
–
–
–
–
10,200
15,600
Gold Classification
Gold
(‘000oz)
Underground
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(g/t)
Gold
(‘000oz)
Gold
(‘000oz)
Proved
–
–
–
–
Probable
–
–
–
–
Total
–
–
–
–
Gold Classification
Underground
1
The Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of Hakkies & Robijn’s 2014 gold Mineral Resources and
a registered PLATO member (No. PMS0243). Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 Hakkies & Robijn’s
gold Mineral Resource and Mineral Reserve Statement. The Competent Persons have appropriate experience relative to the type and style of mineral deposit under consideration and are full-time
2
The Competent Person designated in terms of SAMREC, who took responsibility for the reporting of the Hakkies & Robijn Projects Mineral Resources as at 6 September 2013,
was Mr M Burnett, Principal Consultant at Snowden. The total gold Mineral Resources at these projects were determined at a cut-off of 300cm.g/t. This Mineral Resource and Mineral Reserve
statement as declared by Wits Gold was deemed compliant with the SAMREC Code.
Hakkies and Robijn Uranium Mineral Resource and Mineral Reserve Classification1 and 2
Mineral Resources
Mineral Reserves
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(kg/t)
U3O8
(‘000lb)
–
–
–
–
–
–
–
–
–
–
–
–
Underground
Measured
Indicated
Inferred
Total
U3O8
(‘000lb)
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(kg/t)
U3O8
(‘000lb)
U3O8
(‘000lb)
–
–
–
–
–
–
–
–
–
–
–
–
Underground
– Proved
– Probable
26,300
26,300 Total
1
he Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of Hakkies & Robijn’s 2014 uranium Mineral Resources and
T
a registered PLATO member (No. PMS0243). Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 Hakkies & Robijn’s
uranium Mineral Resource and Mineral Reserve Statement. The Competent Persons have appropriate experience relative to the type and style of mineral deposit under consideration and are fulltime employees of Sibanye.
2
The Competent Person designated in terms of SAMREC, who took responsibility for the reporting of the Hakkies & Robijn Projects uranium Mineral Resources as at 6 September 2013, was
Mr M Burnett, Principal Consultant at Snowden. This Mineral Resource and Mineral Reserve statement as declared by Wits Gold was deemed compliant with the SAMREC Code.
74
4. BEISA NORTH AND BEISA SOUTH PROJECTS
The Beisa North (1,470 ha) and Beisa South
(2,580 ha) Projects are located respectively
contiguous to the north and south of the West
Section (4 Shaft) of the Beatrix Operation, some
20km west of Virginia. The economic potential
of the two prospecting rights are centred on the
uraniferous and auriferous Beisa Reef, which is
the same reef exploited by the old Beisa uranium
mine located within the Beatrix mining right.
Structurally, the Free State Goldfield lies within a
north-south trending syncline that forms an apex
in the south-western corner of the Witwatersrand
Basin. The Beisa North and South Project areas
are structurally dominated by a major overfold
structure, which is a large north trending synclinal
fold associated with the western margin of the
Witwatersrand Basin.
The plane of the Beisa Reef occurs in an inverted
sequence of overturned strata (upside down)
along the upper limits of the overfold in the target
area. The Beisa Reef dips at generally moderate
angles to the west from its eastern north south
trending subcrop against the Ventersdorp and/
or Karoo Supergroups. However, further west,
the dip of the Beisa Reef steepens to vertical in
the overfold, overturning to a normal stratigraphic
succession and dipping towards the east. The
depth below surface of the Beisa Reef is thus
structural bound and occurs from approximately
450 metres below surface, at its subcrop to
>3,000 metres below surface and the overturn.
The reef in general can be described as an
oligomictic grit to small pebble conglomerate,
5 to 50 centimetres thick consisting of well to
sub-rounded quartz pebbles set in a dark grey to
slight yellowish grey sub-siliceous quartzitic matrix
containing disseminated pyrite and carbon, with
the carbon nearly always a carbon seam (bed) of
between 1 to 15 mm thick at the base of the reef.
information on the two projects and also
concluded an initial exploration programme
comprising of three surface boreholes, drilled
between December 2009 and March 2010;
two boreholes were drilled on the Beisa North
prospecting right and one on the Beisa South
prospecting right. The exploration programme
concluded in a technical report on the Mineral
Resources of Beisa North in 2009. Sibanye has
verified the Beisa North and South Project data
and is satisfied that the data acquisition, QA/
QC and interpretation followed industry best
practices, especially the consolidation and
interpretation of historic data (surface boreholes,
company in-house technical reports, etc.).
Information pertaining to Beisa South however,
was considered inadequate for the construction
of meaningful geology models (borehole spacing
and information) and for evaluation purposes.
REVIEW
Sibanye has thoroughly reviewed the geology
and LoM models of the acquired Wits Gold Beisa
North and Beisa South Projects and re-estimated
their Mineral Resources, in accordance with the
Group’s protocols and procedures. Based on
Sibanye’s Mineral Resources estimation protocol,
under current procedures scoped in line with
the SAMREC Code, the Beisa South Project
Mineral Resources cannot be classified and was
therefore omitted from the Sibanye December
2014 Statement. The Beisa North Project gold
and uranium Mineral Resources were also
re-estimated based on the same principles
and as a result increased by approximately
5% to 1.619 Moz, while the uranium Mineral
Resources decreased by 26% to 35.373Mlb.
During 2015 Sibanye intends carrying out further
studies related to the two projects with a view
of optimising any potential synergies with the
Beatrix Operation.
Since acquiring the prospecting rights, Wits
Gold concluded a desk top study of all available
Image
Beisa Reef borehole intersection
75
SECTION 2 SOUTHERN ORANGE FREE STATE (SOFS) PROJECTS
SOUTHERN ORANGE FREE STATE (SOFS) PROJECTS
CONTINUED
Beisa North Gold Mineral Resource and Mineral Reserve Classification 1 and 2
Mineral Resources
Mineral Reserves
Dec
2013
31 Dec 2014
Gold Classification
Tons
(Mt)
Grade
(g/t)
Gold
(‘000oz)
Gold
(‘000oz)
–
–
–
-
Underground
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(g/t)
Gold
(‘000oz)
Gold
(‘000oz)
Proved
–
–
–
–
Probable
–
–
–
–
Total
–
–
–
–
Gold Classification
Underground
Measured
–
–
–
-
Inferred
14.8
3.4
1,619
1,546
Total
14.8
3.4
1,619
1,546
Indicated
1
he Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of Beisa North’s 2014 gold Mineral Resources and
T
a registered PLATO member (No. PMS0243). Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 Beisa North’s
2
The 2013 Mineral Resource at Beisa North is based on a Technical Report National Instrument 43-101 Technical Report, in accordance with Form 43-101F1 on behalf of Wits Gold, as
compiled by ExplorMine Consultants on 30 June 2009. The Competent Persons who prepared the statement were Andre Deiss BSc (Hons), Pr.Sci.Nat (Consulting Geologist), and Bill Northrop
BSc (Hons), MSc, PhD, GDE, Pr.Sci.Nat., FGSSA, FSAIMM (Consulting Geostatistician) and Garth Mitchell BSc (Hons), BCom, Pr.Sci.Nat., MSAIMM, MGSSA (Consulting Geologist).
Beisa North Uranium Mineral Resource and Mineral Reserve Classification 1 and 2
Mineral Resources
Mineral Reserves
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(kg/t)
U3O8
(‘000lb)
U3O8
(‘000lb)
Measured
–
–
–
–
Indicated
–
–
–
–
Inferred
14.8
1.084
35,373
47,840
Total
14.8
1.084
35,373
47,840
Underground
Dec
2013
31 Dec 2014
Tons
(Mt)
Grade
(kg/t)
U3O8
(‘000lb)
U3O8
(‘000lb)
Proved
–
–
–
–
Probable
–
–
–
–
Total
–
–
–
–
Underground
1
he Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of Beisa North’s 2014 uranium Mineral Resources and
T
SAIMM member (No. 704140), Mr J van Eeden [MSc. Geology], a registered SACNASP member (No. 400043/09) and Mr GJ Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC], a
registered PLATO member (No. PMS0243). Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 Beisa North’s uranium
2
he Mineral Resource at Beisa North is based on a Technical Report National Instrument 43-101 Technical Report, in accordance with Form 43-101F1 on behalf of Wits Gold, as compiled by
T
ExplorMine Consultants on 30 June 2009. The Competent Persons who prepared the statement were Andre Deiss BSc (Hons), Pr.Sci.Nat (Consulting Geologist), and Bill Northrop BSc (Hons),
MSc, PhD, GDE, Pr.Sci.Nat., FGSSA, FSAIMM (Consulting Geostatistician) and Garth Mitchell BSc (Hons), BCom, Pr.Sci.Nat., MSAIMM, MGSSA (Consulting Geologist). A U3O8 cut-off of 50
cm.kg/t has been applied to determine the Mineral Resources.
IDEALISED SECTION THROUGH THE WESTERN MARGIN SHOWING THE RELATIVE POSITION OF BEISA NORTH PROJECT AND THE SUBCROP RELATIONSHIPS
West
500m
St. Helena 10#
Beisa North Project
Karoo
Beisa Reef overturned limb
Nose of fold on
Beisa Reef horizon
Nose of fold on
VS5 hirizon
1,600m
3,200m
Image
Drill core
of Beisa Reef
Schematic
notpicture
to scale
76
East
VS5 overturned limb
Only VS5 and Beisa Reefs
have overturned limbs
VS5
Aandenk Reef
B Reef
Leader Reef
Basal Reef
Beisa Reef
SECTION 3 SUPPLEMENTARY INFORMATION
SUPPLEMENTARY INFORMATION
PROFESSIONAL ORGANISATIONS
Professional Body
Postal address and contact details
Geological Society of South Africa (GSSA)
PO Box 61809, Marshalltown 2107, Gauteng South Africa
Tel: +27 (11) 492 3370
Fax: +27 (11) 492 3371
Email: [email protected]
Engineering Council of South Africa (ECSA)
Private Bag X691, Bruma 2026, Gauteng South Africa
Tel: +27 (11) 607 9500
Fax: +27 (11) 607 9556
South African Council for Professional and
Technical Surveyors (PLATO)
PO Box 83018, South Hills 2136, Gauteng South Africa
Tel: +27 (11) 626 1040
Fax: +27 (11) 626 2007
South African Council for Natural
Scientific Professions (SACNASP)
Private Bag X540, Silverton 0127, Gauteng South Africa
Tel: +27 (12) 841-1075
Fax: +27 (12) 841-1057
Southern African Institute of
Mining and Metallurgy (SAIMM)
P.O. Box 61127, Marshalltown 2107, Gauteng South Africa
Tel: +27 (11) 834-1273/7
Fax: +27 (11) 838-5923
SAMREC CODE DEFINITIONS
Term
Definition
Competency
The Public Report is based on work that is the responsibility of suitably qualified and experienced persons
who are subject to an enforceable Professional Code of Ethics.
Competent Person
A ‘Competent Person’ is a person who is registered with SACNASP, ECSA or PLATO, or is a Member
or Fellow of the SAIMM, the GSSA or a Recognised Overseas Professional Organisation (ROPO). The
Competent Person must comply with the provisions of the relevant promulgated Acts, have a minimum
of five years experience relevant to the style of mineralisation and type of deposit or class of deposit
under consideration and to the activity he or she is undertaking. Persons being called upon to sign as a
Competent Person must be clearly satisfied in their own minds that they are able to face their peers and
demonstrate competence in the commodity, type of deposit and the situation under consideration.
Deposit
A concentration (or occurrence) of material of possible economic interest, in or on the earth crust, that
may include mineralised material that cannot be estimated with sufficient confidence to be classified
in the Inferred category. Portions of a deposit that do not have reasonable and realistic prospects for
eventual economic extraction are not included in a Mineral Resource.
Materiality
A Public Report contains all the relevant information that investors and their professional advisors would
reasonably require, and expect to find, for the purpose of making a reasoned and balanced judgement
regarding the Exploration Results, Mineral Resources and Mineral Reserves reported on.
Mineral Resource
A concentration or occurrence of material of economic interest in or on the earth’s crust in such form,
quality and quantity that there are reasonable and realistic prospects for eventual economic extraction.
The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are
known, or estimated from specific geological evidence, sampling and knowledge interpreted from an
appropriately constrained and portrayed geological model. Mineral Resources are subdivided, and must
be so reported, in order of increasing confidence in respect of geoscientific evidence, into Inferred,
Indicated and Measured categories.
Measured Mineral Resource
That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and
mineral content can be estimated with a high level of confidence. It is based on detailed and reliable
information from exploration, sampling and testing of material from locations such as outcrops, trenches,
pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade
continuity.
Indicated Mineral Resource
That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and
mineral content can be estimated with a reasonable level of confidence. It is based on information from
exploration, sampling and testing of material gathered from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/
or grade continuity but are spaced closely enough for continuity to be assumed.
77
CONTINUED
Term
Definition
Inferred Mineral Resource
That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with
a low level of confidence. It is inferred from geological evidence and sampling and assumed but not
verified geologically or through analysis of grade continuity. It is based on information gathered through
appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may
be limited or of uncertain quality and reliability.
Mineral Reserve
The economically mineable material derived from a Measured and/or Indicated Mineral Resource. It is
inclusive of diluting and contaminating materials and allows for losses that are expected to occur when
the material is mined. Appropriate assessments to a minimum of a pre-feasibility study for a project and
a LoM Plan for an operation must have been completed, including consideration of, and modification
by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and
governmental factors (the modifying factors). Such modifying factors must be disclosed.
Probable Mineral Reserve
Economically mineable material derived from a Measured or Indicated Mineral Resource or both. It
is estimated with a lower level of confidence than a Proved Mineral Reserve. It includes diluting and
contaminating materials and allows for losses that are expected to occur when the material is mined.
Appropriate assessments to a minimum of a pre-feasibility study for a project or a LoM Plan for an
operation must have been carried out, including consideration of, and modification by, realistic assumed
mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. Such
modifying factors must be disclosed.
Proved Mineral Reserve
Economically mineable material derived from a Measured Mineral Resource. It is estimated with a
high level of confidence. It includes diluting and contaminating materials and allows for losses that are
expected to occur when the material is mined. Appropriate assessments to a minimum of a pre-feasibility
study for a project or a LoM Plan for an operation must have been carried out, including consideration of,
and modification by, realistic assumed mining, metallurgical, economic, marketing, legal, environmental,
social and governmental factors. Such modifying factors must be disclosed.
Transparency
The reader of a Public Report must be provided with sufficient information, the presentation of which is
clear and unambiguous, to understand the report and not to be mislead.
Glossary of Terms
Term
Definition
Above Infrastructure (AI)
That part of the Mineral Resources and/or Mineral Reserves, which are above the lowest mining level and
can be accessed via the current mine infrastructure (shafts and underground haulages).
Below Infrastructure (BI)
That part of the Mineral Resources and/or Mineral Reserves which are below the lowest mining level and
that can only be accessed following approved capital expenditure.
Block Width
The average width at which it is estimated a block of ore will be mined.
Carbon-in-leach (CIL)
Gold is leached from a gold ore slurry with cyanide in agitation tanks and absorbed onto carbon granules
in the same circuit. The carbon granules are separated from the slurry and treated in an elution circuit to
extract the gold.
Carbon-in-pulp (CIP)
Gold is leached conventionally from a gold ore slurry with cyanide in agitation tanks. The leached slurry
then passes into the CIP circuit where carbon granules are mixed with the slurry and gold is absorbed
onto the carbon. The carbon granules are separated from the slurry and treated in an elution circuit to
extract the gold.
Concept Study
A study of the viability of a range of major options designed to determine the potential value of the
opportunity and confirm alignment with the business strategy. The study describes the work that needs to
be conducted to fully define the opportunity, and comprises a number of economically attractive options
that warrant further investigation.
Cut-off Grade
The lowest grade of mineralised rock, which determines as to whether or not it is economic to recover its
gold content by further concentration.
Depletion
The decrease in the quantity of ore in a deposit or property (mining right) resulting from extraction or
production.
Dilution
Waste or material below the cut-off grade that contaminates the ore during the course of mining
operations and thereby reduces the average grade mined.
Elution
Recovery of gold from the activated carbon into solution before zinc precipitation or electro-winning
78
Glossary of Terms
Term
Definition
Feasibility Study
A comprehensive design and costing study of the selected option for the development of a mineral
project in which appropriate assessments have been made of realistically assumed geological, mining,
metallurgical, economic, marketing, legal, environmental, social, governmental, engineering, operational
and all other modifying factors, which are considered in sufficient detail to demonstrate at the time of
reporting that extraction is reasonably justified (economically mineable) and the factors reasonably serve
as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the
development of the project. The overall confidence of the study should be stated.
Grade
The quantity of gold contained within a unit weight of gold-bearing material, generally expressed in grams
per metric ton (g/t).
Life of Mine (LoM)
Number of years that an operation is currently planning to mine and treat ore and is derived from the
current mining plan.
Mill Width
Calculated width expressing the relationship between the total reef area excavated and the total mill tons
milled from underground sources.
Mine Call Factor
The ratio expressed as a percentage which the specific product accounted for in “recovery plus residue”
bears to the corresponding product “called for” by the mine’s measuring and evaluation methods.
Pay Limit
The value at which it is estimated that ore can be mined at break-even.
Pillars
Pillars comprise of:
• Dip and strike stability pillars
• Water and ventilation pillars
• Regional stability pillars as defined by Rock Engineering
• Bracket pillars adjacent to seismically active areas or large structures
• Boundary and remnant pillars
• Abandoned pillars
Inter alia, some pillars may become available to mine once appropriate investigations and rehabilitation
have taken place.
Plant Recovery Factor
The ratio expressed as a percentage, of the mass of the specific mineral product actually recovered from
ore treated at the plant to its total specific mineral content before treatment.
Pre-feasibility Study
A comprehensive study of the viability of a range of options for a mineral project that has advanced to a
stage at which the preferred mining method in the case of underground mining or the pit configuration
in the case of an open pit has been established and an effective method of mineral processing has been
determined. It includes a financial analysis based on realistic assumptions of technical, engineering,
operating, economic factors and the evaluation of other relevant factors that are sufficient for a Competent
Person, acting reasonably, to determine if all or part of the Mineral Resource may be classified as a
Mineral Reserve. The overall confidence of the study should be stated. A pre-feasibility study is at a lower
confidence level than a feasibility study.
Reef
A gold-bearing sedimentary horizon, normally a conglomerate that may contain economic levels of gold.
SAMREC
The South African Mineral Resources Committee.
SAMREC Code
The South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves
including the guidelines contained therein.
SAMVAL
The South African Mineral Asset Valuation.
SAMVAL Code
The South African Code for the Reporting of Mineral Asset Valuation including the guidelines contained
therein.
Stope
Underground excavation where the ore body is extracted.
Subcrop
A rock stratum that unconformable underlies another rock stratum.
Tonnage Discrepancy
Difference between the tonnage hoisted as ore and that accounted for by the plant measuring methods.
Discrepancy is referred to as a shortfall when the calculated tonnage is less than the tonnage accounted
for by the plant, or an excess when the opposite occurs.
Ton(s)
Metric ton(s) = 1,000 kilograms.
Uraninite
A strong radioactive mineral, UO2, forming the chief ore of uranium (U3O8) and containing variable
amounts of radium, lead, thorium and other elements of impurities.
79
CONTINUED
Glossary of Terms
Term
Definition
White Areas
Areas that were excluded from previous LoM plans that have since been proven to have realistic
expectation of safe economic extraction, with the required investigations, rock engineering modelling
and detail mining plan to support it. White areas include open ground, areas that were excluded due to
economics or lack of information, and pillars
Witwatersrand Basin
A sedimentary basin in South Africa that contains close to a 6,000 metre thick sequence of principally
argillaceous and arenaceous sediments with inter-bedded auriferous conglomerates.
CONVERSION TABLE
The following conversion factors are applicable:
Metric
Imperial
Imperial
Metric
1 centimetre
0.3937 inches
1 inch
2.54 centimetres
1 metre
3.28084 feet
1 foot
0.3047972654 metres
1 kilometre
0.62150 miles
1 mile
1.609 kilometres
1 gram
0.03215 troy ounces
1 troy ounce
31.10419907 grams
1 gram/ton
0.0292 ounce/ton
1 ounce/ton
34.28 grams/ton
1 kilogram
2.20458 pounds
1 pound
0.4536 kilograms
1 ton
1.10229 short tons
1 short ton
0.9072 tons
1 hectare
2.47097 acres
1 acres
0.4047 hectares
Abbreviations
AAR
Aandenk Reef
IRRIS
Integrated Resource and Reserve Information System
AI
Above infrastructure
ISO
International Organisation for Standardisation
Au
Gold
JSE
Johannesburg Stock Exchange Limited
BI
Below infrastructure
K9
Reef of the Kimberley Formation
BXR
Beatrix Reef
kg
Kilogram
CIL
Carbon in Leach
kg/t
Kilograms per ton
CIP
Carbon in Pulp
KKR
Kalkoenkrans Reef
CL
Carbon Leader Reef
km
Kilometre
cm
Centimetre
koz
Thousand ounces
cm. g/t
Centimetre gram per ton
KR
Kloof Reef
CW
Channel width
LIB
Long Incline Borehole
C2014
Calendar year 2014
LoM
Life of Mine
DFS
Definitive Feasibility Study
LR
Libanon Reef
DMR
Department of Mineral Resources
m
Metre
EBA
Eastern Boundary Area
m2
Square metre
FS
Feasibility Study
MBA
Master of Business Administration
g
Gram
mbs
Metres below surface
g/t
Grams per ton
MCF
Mine Call Factor
Ga
Billion years
Mlb
Million pounds
GDE
Graduate Diploma Engineering
mm
Millimetre
ha
Hectare
MMCC
Mine Managers Certificate of Competency
ICMI
International Cyanide Management code
Moz
Million ounces
80
Abbreviations
MR
Middelvlei Reef
SOX
Sarbanes - Oxley Act of 2002
MSCC
Mine Surveyor Certificate of Competency
SRD
Surface rock dump
Mt
Million tons
SV
Sub - vertical
Mtpa
Million tons per annum
SW
Stoping width
MU
Mining Unit
t
Metric tons
NPV
Net present value
tpm
Tons per months
OHSAS
Occupational Health & Safety Advisory Services
TSF
Tailings Storage Facility
oz
Ounces (troy)
U
Uranium
PFS
Pre-feasibility Study
UE1A
UE1A Reef of the Elsburg Formation
PR
Prospecting Right
UE3
Upper Elsburg Reef of the Mondeor Formation
Pr.Sci.Nat
Professional Natural Scientist
UE5
Upper Elsburg Reef of the Elsburg Formation
QA/QC
Quality Assurance and Quality Control
UE
Upper Elsburg Massives of the Mondeor Formation
R
South African Rand
UG
Underground
R/kg
South African Rand
U3O8
Uranium oxide
RSO
Randfontein Surface Operation
US$
United States dollar
SANAS
South African National Accreditation System
US$/oz
United States dollar per ounce
SAMREC
Code
The South African Code for the Reporting of Exploration
Results, Mineral Resources and Mineral Reserves
VCR
Ventersdorp Contact Reef
SAMVAL
Code
The South African Code for the Reporting of Mineral Asset
Valuation
VS5
VS5 Reef of the Eldorado Formation
SEC
The United States Securities and Exchange Commission
WRTRP
West Rand Tailings Retreatment Project
SGL
Sibanye Gold Limited
(‘000 lb)
Thousand pounds
SGS
SGS South Africa (Pty) Ltd
(‘000 oz)
Thousand ounces
DISCLAIMER
This Technical Supplement (the Report) contains information as at 31 December 2014 (the Effective Date of this Report). The statements and
information set out in this Report speak only as of the Effective Date of this Report. Shareholders and other interested and affected parties are
therefore urged to review all public disclosures made by Sibanye after the Effective Date of this Report, as some of the information contained in the
Report may have changed or been updated. Sibanye does not undertake any obligation to update publicly or release any revisions to statements
and information set out in this Report to reflect events or circumstances after the Effective Date of this Report, or to reflect the occurrence of
unanticipated events, unless obliged to do so pursuant to law or regulation. In such event, Sibanye does not undertake to refer back to any
information contained in this Report.
REGISTERED OFFICE SOUTH AFRICA:
Libanon Business Park
Hospital Street (Off Cedar Ave)
Libanon
Westonaria, 1780
Gauteng
Private Bag X5
Westonaria, 1780
Website: http://www.sibanyegold.co.za
Telephone: +27 (0) 11 278 9600
Facsimile: +27 (0) 86 520 5023
81
NOTES
82
OPERATIONAL STATISTICS
BEATRIX HISTORY AT A GLANCE
1933
1969
1976
1981
1984
1985
Exploration in the Free
State started as far
back as 1885 but only
commenced in earnest
in 1933 when the first
borehole was drilled on
the farm Aandenk 227
HP. The discovery of the
Basal Reef in 1939 set
exploration afire, which
resulted in a score of
mines being developed
in the Free State.
for gold and uranium
commenced in the
southern limits of the
Free State Goldfields.
General Mining
acquired Union
Corporation in 1976.
General Mining Union
Corporation Limited,
as it was then called,
became Gencor Limited.
Beisa Shaft
commissioned to exploit
uranium. Sinking of
Beatrix 1 and 2 Shafts
commenced.
Beisa Uranium Mine
closed due to the low
prevailing uranium price.
Beatrix 1 and 2
Shafts commissioned.
Exploration for
Kalkoenkrans Reef
in the vicinity of
the old Beisa Mine
commenced.
BEATRIX
Located in the Free State province of South Africa, some 240km south-west of Johannesburg, near Welkom
and Virginia, Beatrix operates under mining rights covering a total area of 16,821ha. Beatrix is principally an
underground mine with nominal surface reserves represented by surface rock dumps accumulated during the
operating history of the mine.
2014 KEY STATISTICS
2002
2001
1998
1995
1993
1987
St Helena Gold Mine
sold to Freegold,
Beatrix and Oryx mines
merged to form Beatrix
Gold Mine. Beatrix Gold
Mine is awarded ISO
14001 certification in
July 2002.
Beatrix 3 Shaft
completed.
A new company,
Goldco, is formed,
which brings together
the gold assets of Gold
Fields of South Africa
Limited with those of
the unbundled Gencor.
Goldco was later
renamed Gold Fields
Limited.
Sinking of Beatrix
3 Shaft complex and
down dip expansion
of mine initiated.
Gold production began
at Oryx Mine.
Sinking of two new
sub-vertical shafts and
a ventilation shaft at
Beisa Mine, renamed
Oryx Mine, to exploit
KKR, commenced.
MAIN DEVELOPMENT
19,733m
2013: 17,531m
UNDERGROUND: 19,733m
2013:17,531m
AREA MINED
384,701m2
2013: 434,438m2
UNDERGROUND: 384,701m2
2013: 434,438m2
SURFACE: 1,975,000t
2013: 1,720,000t
TONS MILLED
4,546,000t
2013: 4,091,000t
2003
2004
2005
2007
2009
2010
Beatrix achieves one
million and Beatrix
North and South
Sections achieve two
million fatality-free
shifts for the first time.
Completion of a new
surface ventilation shaft
to service the southwest corner of the mine
near 2 Shaft. Beatrix
achieves two million
fatality-free shifts for the
first time.
Beatrix North and
South Sections achieve
three million fatality-free
shifts for the first time.
Beatrix granted a new
order Mining Right.
Beatrix achieves full
compliance from
the ICMI during an
external cyanide audit
conducted during June
2009.
Beatrix West Section
achieves two million
fatality-free shifts for the
first time.
UNDERGROUND: 2,571,000t
2013: 2,371,000t
SURFACE: 0.38g/t
2013: 0.31g/t
YIELD
2.28g/t
2013: 2.38g/t
UNDERGROUND: 3.74g/t
2013: 3.88g/t
GOLD PRODUCED/SOLD
10,354kg (332,900oz)
2013: 9,722kg (312,600oz)
SURFACE: 751kg (24,200oz)
2013: 527kg (17,000oz)
UNDERGROUND: 9,603kg (308,700oz)
2013: 9,195kg (295,600oz)
BEATRIX SHAREHOLDER PLAN
COSTS AND MARGINS
2014
2013
2012
2011
Sibanye’s acquisition
of the Wits Gold
assets contiguous to
Beatrix consolidated
its position on the
southernmost extent of
the Witwatersrand Basin
and extended its LoM
Mineral Reserves to
sustain the operation for
another 14 years.
Beisa Reef concept
study undertaken to
establish the economic
potential in re-opening
the old Beisa Mine
(upper levels of Beatrix
4 Shaft) to exploit gold
and uranium
Announcement of the
unbundling of Sibanye
Gold Limited from Gold
Fields Limited.
Partial extraction and
flaring of methane gas
commenced in
May 2011.
OPERATING COST
R705/t
2013: R731/t
CAPITAL EXPENDITURE
R548m
2013: R537m
TOTAL CASH COST
R313,888/kg (US$902/oz)
2013: R306,593/kg (US$993/oz)
SURFACE: R77/t
2013: R84/t
UNDERGROUND: R1,187/t
2013: R1,201/t
SUSTAINING: R102m
2013: R201m
ORE RESERVE DEVELOPMENT: R446m
2013: R336m
OPERATING PROFIT
R1,362m
2013: R1,223m
OPERATING MARGIN
30%
2013: 29%
ALL-IN COST
R378,008/kg (US$1,087/oz)
2013: R377,206/kg (US$1,222/oz)
ALL-IN COST MARGIN
14%
2013: 13%
COOKE HISTORY AT A GLANCE
1886
1889
1890
1900
1910
1911
COOKE
Exploration activities
commenced in the
West Rand
Randfontein Estates
Gold Mining Company
Limited (“REGM”)
established
REGM Dump 20 tailings
facility formed; slimes
material from Millsite
plant deposited into
Rietpan
Lindum tailings
facility created
Exploration programmes
to locate gold bearing
reefs south of the
Witpoortjie Horst
(“Gap”) commenced
Dump 20 Sand
created as result of
stamp milling at Millsite
Gold Plant
Located near Randfontein, approximately 30km south-west of Johannesburg in the province of Gauteng, South Africa, the Cooke
Underground operations comprise four vertical shafts (Cooke 1 to 4 and the Ezulwini plant) as well as the surface operation,
which are serviced by a developed network of mining and civil infrastructure with adequate electricity and water supplies.
2014 KEY STATISTICS (SINCE INCORPORATION ON 15 MAY 2014)
MARCH 2003
JULY 2001
2000
1997
1971
1961
South Deep (Placer
Dome Western Areas
Joint Venture) takes over
pumping operations
but stop pumping in
February 2005
Harmony ceases
mining and pumping
operations at Cooke 4
and operation put under
care and maintenance
REGM (Cooke 4
Section) acquired by
Harmony Gold Mine
Limited (“Harmony”).
The deal included the
Randfontein Surface
Operations (“RSO”)
WAGMC purchased
by REGM
The Cooke 123
established as a section
of Randfontein Estates
Limited (Cooke 1 1971, Cooke 2 - 1974
and Cooke 3 - 1981).
Cooke TSF established
in 1976
Registration of Western
Areas Gold Mining
Company (“WAGMC”) –
Waterpan Gold Mine
MAIN DEVELOPMENT
9,508m
UNDERGROUND: 9,508m
AREA MINED
175,627m2
SURFACE: 2,779,000t
TONS MILLED
3,672,000t
UNDERGROUND: 893,000t
MAY 2005
DECEMBER 2006
DECEMBER 2006
DECEMBER 2007
DECEMBER 2007
JUL 2008
Simmer and Jack
Limited (“Simmers”)
apply for new order
mining right in respect
of Ezulwini Mining
Company (Propriety)
Limited (“EMC”
or “Ezulwini”) and
assumed pumping
operations as part of
purchase agreement
with Harmony
Ezulwini new order
Mining Right registered.
Construction of the
new Ezulwini Gold
and Uranium Plant
commenced
Simmers sells its 90%
interest in EMC to First
Uranium Limited
Waterpan Mining
Corporation sells 10%
interest to EMC. EMC
become wholly-owned
subsidiary of First
Uranium Limited
Harmony and Pamodzi
acquires the Cooke
Operations from
Randfontein Estates
Limited in a Special
Purpose Vehicle called
Rand Uranium (Pty)
Limited
Ezulwini gold plant
commissioned
SURFACE: 0.21g/t
YIELD
1.17g/t
SURFACE: 586kg (18,800oz)
GOLD PRODUCED/SOLD
4,305kg (138,400oz)
COOKE SHAREHOLDER PLAN
COSTS AND MARGINS
MAY 2014
MARCH 2014
MID-2012
2011
APRIL 2010
MAY 2009
Sibanye Gold acquires
Rand Uranium and
EMC from Gold One
March 2014 The
uranium plant recommissioned by
Gold One
Gold One acquires
100% of EMC
Gold One International
Limited acquires Rand
Uranium and place
Ezulwini uranium
plant on care and
maintenance
Ezulwini mining right
registered to EMC
Ezulwini uranium plant
commissioned
OPERATING COST
R461/t
SURFACE: R82/t
OPERATING PROFIT
R189m
OPERATING MARGIN
10%
ALL-IN COST
R461,045/kg (US$1,325oz)
ALL-IN COST MARGIN
(6)%
SUSTAINING: R52m
CAPITAL EXPENDITURE
R230m
PROJECTS: R61m
TOTAL CASH COST
R395,168/kg (US$1,136/oz)
DRIEFONTEIN SHAREHOLDER PLAN
DRIEFONTEIN HISTORY AT A GLANCE
1887
1892
1931
1932
1945
1952
DRIEFONTEIN
Cecil Rhodes and
Charles Rudd, as joint
Managing Directors, are
co-founders of ‘The Gold
Fields of South Africa
Limited’ in 1887.
The Gold Fields of
South Africa Limited is
renamed Consolidated
Gold Fields of South
Africa to mine the
deep-level gold deposits
of the Witwatersrand.
Using a magnetometer,
Dr Rudolf Krahman
discovered the vast
gold deposits of the
West Wits Line near
Carletonville, including
the mines known today
as Driefontein and
Kloof.
On 12 November 1932,
West Witwatersrand
Areas Limited is formed
to take over the Gold
Fields Mineral Rights
and to continue
exploration work.
Exploration activities
between 1933 and
1939 culminate in the
registration of West
Driefontein Mining
Company on March
07, 1945. Sinking of
the No’s 1 and 2 Shafts
commences (now the
No’s 11 and 12 Shafts).
West Driefontein starts
milling in 1952.
Located on the Far West Rand, in the mining district of Oberholzer, some 70km south-west of Johannesburg in the province of
Gauteng, South Africa, Driefontein operates under new order mining rights covering a total of 8,561ha. It is an underground
mine with surface reserves represented by rock dumps and tailings storage facilities that have accumulated throughout the
operating history of the mine.
2014 KEY STATISTICS
1981
1979
1972
1968
1968
1962
On July 01, 1981 East
Driefontein Gold Mining
Company Ltd changes
its name to Driefontein
Consolidated Ltd
and West Driefontein
becomes a whollyowned subsidiary of
Driefontein Consolidated
Ltd but still manages its
own lease area.
West Driefontein
succeeds Crown Mines
as the largest gold
producer ever.
East Driefontein starts
production in 1972,
with an expected life
of 52 years, and is
immediately among the
lowest cost producers in
South Africa.
Disaster strikes again in
October 1968 when a
stope in the 8 Shaft area
is flooded. It floods the
entire East Driefontein
development area and
threatens the whole of
West Driefontein. Only a
tremendous effort saves
the mines without loss
of life.
Intensive drilling carried
out between 1962
and 1963 indicates
the viability of an
area adjoining West
Driefontein mine and
the East Driefontein
Gold Mining Company
Limited is registered on
May 03, 1968.
Disaster strikes in
1962 when 29 people
tragically lose their
lives when a severe
subsidence results
in the collapse of the
entire sorting and
crushing plant on West
Driefontein.
MAIN DEVELOPMENT
17,376m
2013: 17,751m
2013:17,751m
AREA MINED
374,914m2
2013: 397,579m2
2013: 397,579m2
SURFACE: 2,867,000t
2013: 2,783,000t
TONS MILLED
5,364,000t
2013: 5,310,000t
1999
1999
2005
2006
2009
2010
In September 1999 the
two entities are formally
amalgamated, pooling
their resources to form
one mine, Driefontein
Gold Mine.
Gold Fields wins control
of the Driefontein
Gold Mine by buying
AngloGold Ashanti’s
21.5% shareholding.
The deal makes Gold
Fields the world’s
second largest gold
producer. Gold Fields
Ltd holds 100% interest
in GFI Mining South
Africa (Proprietary)
Limited which in turn
hold a 100% interest
in Driefontein.
On 30th August 2005,
Driefontein officially
pours the 100 millionth
ounce of gold after some
53 years of production.
Driefontein successfully
converts its old order
mining licence to new
order Mining Rights.
Approval given for
completion of 9 Shaft
Project.
Suspension of the 9
Shaft deepening project.
5 Shaft decline option
pre-feasibility study
replaced the 9 Shaft
deepening option.
2013: 2,527,000t
SURFACE: 0.49g/t
2013: 0.66g/t
YIELD
3.31g/t
2013: 3.54g/t
2013: 6.70g/t
GOLD PRODUCED/SOLD
17,735kg (570,200oz)
2013: 18,775kg (603,600oz)
SURFACE: 1,406kg (45,200oz)
2013: 1,848kg (59,400oz)
2013: 16,927kg (544,200oz)
COSTS AND MARGINS
2014
2013
2012
2011
The pre-feasibility study
for the Driefontein 5
Shaft Drop-down Project
was completed in 2014.
A definitive feasibility
study will be conducted
in 2015.
Driefontein showed an
overall improvement
in all safety lagging
indicators, particularly
the FIFR, which
improved by 64% and
was the lowest ever
recorded by the mine
to date.
Announcement of the
unbundling of Sibanye
Gold Limited from Gold
Fields Limited.
TSFs pre-feasibility
study and trial mining
initiated.
OPERATING COST
R916/t
2013: R919/t
CAPITAL EXPENDITURE
R1,149m
2013: R1,023m
TOTAL CASH COST
R283,129/kg (US$814/oz)
2013: R265,997/kg (US$862/oz)
SURFACE: R169/t
2013: R165/t
2013: R1,750/t
SUSTAINING: R465m
2013: R320m
2013: R703m
OPERATING PROFIT
R2,917m
2013: R3,282m
OPERATING MARGIN
37%
2013: 40%
ALL-IN COST
R357,333/kg (US$1,027/oz)
2013: R332,660/kg (US$1,078/oz)
ALL-IN COST MARGIN
19%
2013: 23%
KLOOF HISTORY AT A GLANCE
1898
1909
1930’s
1934
1936
1939
Drilling commenced by
the Pullinger brothers
intersecting VCR and
MR at depth in the Far
West Rand area (later
renamed the West Wits
Line).
A shaft was sunk which
flooded with water from
the dolomites and was
abandoned.
Dr Krahmann used
geophysical techniques
to delineate the extent
of the reefs underlying
the dolomite.
Shaft sinking
commenced at
Venterspost using
the newly developed
cementation process.
Shaft sinking
commenced at
Libanon.
Crushing of ore began
and first gold from
the West Wits Line
Goldfield was poured at
Venterspost.
KLOOF
Located in the Far West Rand mining district of Westonaria, some 60km south-west of Johannesburg in Gauteng province, South
Africa, Kloof’s mining rights cover a total of approximately 20,087ha. It is principally an underground mine with nominal surface
reserves represented by surface rock dumps and tailings storage facilities accumulated during the operating history of the mine.
2014 KEY STATISTICS
1987
1982
1968
1964
1945
1939
The southern portion of
the Kloof Gold Mine and
part of the Bank Break
area culminated in
the Leeudoorn Mining
Lease. Leeudoorn shaft
sinking commenced.
Prospecting lease
obtained over an area
to the south and west
of the Kloof lease area,
dubbed the Bank Break
area.
Kloof Gold Mine
officially opened.
Work commenced on
Kloof’s main twin-shaft
complex.
Libanon Mine
reopened.
Sinking of Libanon’s
second shaft stopped
to curtail capital
expenditure and the
mine closed for the
duration of the 2nd
world war.
MAIN DEVELOPMENT
18,743m
2013: 19,331m
2013:19,331m
AREA MINED
304,930m2
2013: 300,985m2
2013: 300,985m2
SURFACE: 2,670,000t
2013: 2,325,000t
TONS MILLED
4,653,000t
2013: 4,223,000t
1992
1993
2000
2005
2007
2009
Venterspost Gold Mine
incorporated into the
Libanon division of the
Kloof Gold Mine.
Leeudoorn shaft
completed.
Formation of the Kloof
Gold Mine with the
amalgamation of the
Venterspost, Libanon,
Kloof and Leeudoorn
Gold Mines.
Production reached a
cumulative 70 million
ounces of gold (yield).
Kloof successfully
converted its old order
mining right to new
order mining rights.
TSF uranium models
completed and
included in Mineral
Resource Statement.
2013: 1,898,000t
SURFACE: 0.52g/t
2013: 0.62g/t
YIELD
3.66g/t
2013: 3.78g/t
2013: 7.66g/t
GOLD PRODUCED/SOLD
17,038kg (547,800oz)
2013: 15,977kg (513,700oz)
SURFACE: 1,385kg (44,500oz)
2013: 1,444kg (46,400oz)
2013: 14,533kg (467,300oz)
KLOOF SHAREHOLDER PLAN
COSTS AND MARGINS
2014
2013
2012
2011
2010
Concluded a prefeasibility study on the
mining area below 45
level at Kloof 4 Shaft
Secondary reef
project initiated.
Announcement of the
formation of Sibanye
Gold Limited following
the unbundling from
Gold Fields Limited
Surface rock dump
Python Plant Project
and TSFs pre-feasibility
study
Kloof and Driefontein
were combined to
create the Kloof/
Driefontein Complex
(KDC).
Embarked on a major
exploration programme,
targeted at the Kloof and
Middelvlei Reefs at Main
and 8 Shafts.
OPERATING COST
R968/t
2013: R971/t
CAPITAL EXPENDITURE
R1,236m
2013: R1,304m
TOTAL CASH COST
R271,282/kg (US$780/oz)
2013: R261,570/kg (US$847/oz)
SURFACE: R156/t
2013: R146/t
2013: R1,982/t
SUSTAINING: R356m
2013: R460m
2013: R844m
OPERATING PROFIT
R3,001m
2013: R2,854m
OPERATING MARGIN
40%
2013: 41%
ALL-IN COST
R352,624/kg (US$1,014/oz)
2013: R353,884/kg (US$1,147/oz)
ALL-IN COST MARGIN
20%
2013: 19%
ADMINISTRATION AND CORPORATE INFORMATION
INVESTOR ENQUIRIES
James Wellsted
Senior Vice President: Investor Relations
Sibanye Gold Limited
Tel: +27 83 453 4014
+27 11 278 9656
E-mail: [email protected]
CORPORATE SECRETARY
Cain Farrel
Tel: +27 10 001 1122
Fax: +27 11 278 9863
REGISTERED OFFICE
Libanon Business Park
1 Hospital Street
(off Cedar Avenue)
Libanon
Westonaria
1780
South Africa
Private Bag X5
Westonaria
1780
South Africa
Tel: +27 11 278 9600
Fax: +27 11 278 9863
SIBANYE GOLD LIMITED
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
Issuer code: SGL
ISIN – ZAE E000173951
LISTINGS
JSE: SGL
NYSE: SBGL
WEBSITE
DIRECTORS
Sello Moloko* (Chairman)
Neal Froneman (CEO)
Charl Keyter (CFO)
Chris Chadwick#
Robert Chan*
Timothy Cumming*
Barry Davison*
Rick Menell*
Nkosemntu Nika*
Keith Rayner*
Zola Skweyiya*
Susan van der Merwe*
Jerry Vilakazi*
* Independent non-executive
#
Non-executive
JSE SPONSOR
JP Morgan Equities South Africa
(Proprietary) Limited
(Registration number: 1995/011815/07)
1 Fricker Road, Illovo, Johannesburg, 2196
Private Bag X9936, Sandton, 2196, South Africa
OFFICE OF THE UNITED KINGDOM SECRETARIES
St James’s Corporate Services Limited
Suite 31, Second Floor
107 Cheapside
London
EC2V 6DN
United Kingdom
Tel: +44 20 7796 8644
Fax: +44 20 7796 8645
AMERICAN DEPOSITARY RECEIPT TRANSFER AGENT
BNY Mellon Shareowner Services
PO Box 358516
Pittsburgh, PA 15252-8516
US Toll Free: +1 888 269 2377
Tel: +1 201 680 6825
Kim Schwarz
Vice President, Relationship Manager
BNY Mellon
Depositary Receipts
Direct Line: +1 212 815 2852
Mobile: +1 347 515 0068
Fax: +1 212 571 3050
TRANSFER SECRETARIES SOUTH AFRICA
Computershare Investor Services
(Proprietary) Limited
Ground Floor
70 Marshall Street
Johannesburg
2001
PO Box 61051
Marshalltown
2107
Tel: +27 11 370 5000
Fax: +27 11 688 5248
TRANSFER SECRETARIES UNITED KINGDOM
Capita Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: 0871 664 0300 (calls cost 10p a minute
plus network extras, lines are open 8:30 to
17:00, Monday to Friday) or
+44 20 8639 3399 (overseas)
Fax: +44 20 8658 3430
AUDITORS
KPMG Inc.
KPMG Crescent
85 Empire Road
Parktown 2193
Johannesburg
South Africa
Tel: +27 11 647 7111
Fax: +27 11 647 8000
A

Mineral Resources and Mineral Reserves Supplement to the

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