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Gold Fields' reserves down 2%
Posted: Mon, 10 Dec 2007
[miningmx.com] -- GOLD FIELDS recorded a two percent decline in its updated reserves to 91.6 million oz by the end of June, including the 1.85 million oz of reserves at the Choco 10 mine in Venezuela which was subsequently sold to Rusoro.
In the reserves statement Choco 10 is accounted for as a 95% held asset. The sale was finalised in December, giving Gold Fields a 37% stake in Toronto-listed Rusoro.
The Essakane project in Burkina Faso did not reach reserve status before Gold Fields sold it to joint venture partner Orezone. The two asset sales in October for $732m generated around $380m in cash for the JSE-listed company.
A revised statement will be released in June 2008. It will include a full remodelling and rescheduling of reserve ounces. Gold Fields has 252 million oz of resources.
“The updated Ore Reserves took account of increased costs and a higher gold price. Attributable depletion accounted for 2.2 million ounces, while lower pay limits, limited remodelling and discoveries contributed an additional 0.3 million ounces,” Gold Fields said.
Ore Reserves were calculated using gold prices of R120,000/kg in South Africa; A$715/oz in Australia; and US$550/oz in Ghana, Venezuela and Peru, in line with the SEC guidelines.
The rand gold price
currently stands at record highs above R170,000/kg and the dollar price is $802.75.
The revised reserves statement, which includes copper as equivalent gold ounces, was part of the 20F filing which Gold Fields is obliged to submit under New York Stock Exchange and SEC requirements.
The copper price was kept steady at $1.25 per pound, which pulled the equivalent gold ounces down by 250,000 oz.
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