7. kdc · this technical statement is a summary of the detailed internally sourced documents...

SALIENT FEATURES

World-class ore body with long-life Mineral Resources at 71.9 Moz

(excluding Tailing Storage Facility ounces).

Mineral Reserves at 20.2 Moz.

Significant enhancement in resource classification.

Focus on safe steady state production driving quality volume.

Accelerate extraction of higher grade Mineral Reserves to bring value forward.

KDC-West below 50 level trackless decline feasibility study approved.

KDC-East 4 Shaft 46 level accepted against 55 decline project option.

Long-life franchise asset anchoring gold production to 2040 (30 years).

2010

Kloof-Driefontein Complex (KDC)Technical Short Form Report

31 December

The formation of the Kloof-Driefontein Complex (KDC) was to create

an environment of uniformity, alignment and cohesiveness that will

enhance the singular identity that will underpin the new consolidated

operation. The overall strategy of the amalgamation of the two mines

was to improve operational and financial efficiencies in line with Gold

Fields’ long-term stated vision, “To be the global leader in sustainable

gold mining”, which encompasses safety and human capital as well

as the environmental and social licence to operate.

Gold Fields Limited comprises a 100% interest in GFI Mining South

Africa (Pty) Limited (GFIMSA), which holds a 100% interest in KDC.

The mine is situated between 60 and 80 kilometres west of

Johannesburg near the towns of Westonaria and Carletonville in the

Gauteng Province of South Africa. The KDC Gold Mine is a large,

well-established shallow to ultra-deep level gold mine with workings

that are accessed through 13 shaft systems (five business units

– BUs) that mine various gold-bearing reefs from open ground and

pillars that occur at depths between 600 and 3,347 metres below

surface. The shaft systems include 10 sub-vertical shafts and two

tertiary shafts. Ore extracted from the gold bearing reefs is processed

at four metallurgical plants.

During the past 18 months KDC produced 1.9 Moz of gold from a

combination of underground mining and processing of surface

waste rock dump material. KDC total employees costed for the

period was 31,086 including contractors. The area mined averaged

some 74,503 m2 per month, underground ore processed at 453 kt

per month and surface material treated 429 kt per month. Total gold

production averaged some 3,287 kg per month at an average yield

grade of 3.8 g/t. Significant increases in power, consumable and

labour costs have limited the benefit of an increased gold price with

the effect that pay limits show only nominal reductions year-on-year.

This Technical Short Form Report reflects the latest Life of Mine plan,

coupled with an updated Mineral Resource and Mineral Reserve

statement, as at 31 December 2010. The geological and evaluation

models have been updated to reflect the latest available data. These

models are coupled with an integrated and holistic mine design and

schedule that is based on current performance levels and attempts

to take cognisance of the inherent risks associated with deep level

mining.

All Mineral Resource and Mineral Reserve figures reported are

managed unless otherwise stated and Mineral Resources are

inclusive of Mineral Reserves.

Kloof-Driefontein ComplexGold Fields’ objective of introducing a new business blueprint, together with an appropriate organisational structure, was to support sustainable gold output at a targeted NCE margin. As a first step in the review of the operations in the South Africa region, a Business Process Re-engineering (BPR) programme has been implemented at Driefontein and Kloof, where the senior management structures have been merged into a single entity with the objective to improve operational and financial efficiencies and ensure long-term sustainability.

The details of the new Kloof-Driefontein Complex (KDC) restructuring include:

� Kloof and Driefontein shafts and plants have been clustered into six business units (BU) each with its own Senior Manager responsible for safe production as well as ensuring an appropriate cost and manpower base for each operating unit. This will reduce the layers of management and increase the span of control. The new business units are:

� � BU 1 – Driefontein 1 and 5 shafts� � BU 2 – Driefontein 2 and 4 shafts KDC-West� � BU 3 – Driefontein 6, 7, 8 and 10 shafts� � BU 4 – Kloof 3 and 4 shafts� � BU 5 – Kloof Main, 7, 8 and 10 shafts, KDC-East� � BU 6 – Reef and waste plants.

� One of the key benefits of the new structure is that accountability, responsibility and line of sight is devolved to a lower level.

� The business units will be supported by site operations that provide common services across the units.

In addition, a strategic management office has been established and will identify and implement cost reductions and revenue enhancing opportunities. The aim is to reduce the rate of cost increases and improve the NCE margin.

}}

INTRODUCTION

South Africa •

KDC-West

KDC-East

Johannesburg •

• Witwatersrand Basin

Carletonville •

•Parys

Welkom •

1Kloof-Driefontein Complex (KDC) – Technical Short Form Report

KEY ASPECTS

Gold Fields has stated that: “If we cannot mine safely, we will not mine.”This principle is embedded at KDC.

Independent auditFigures reported in this declaration are as reviewed by independent external consultants as at

31 December 2010. Gold Fields has been informed that the audit identified no material shortcomings

in any process by which the KDC Mineral Resources and Mineral Reserves were evaluated

Prepared by Gold Fields Limited in compliance with the SAMREC Code (2007 edition)

Effective date 31 December 2010

Source of information This Technical Statement is a summary of the detailed internally sourced documents entitled “December 2010 Kloof Competent Persons report” and “December 2010 Driefontein Competent Persons Report”

Personal inspection Personal inspection takes place by the Competent Persons as listed, who are full-time employees of

Gold Fields Limited

General location

KDC is situated 60 to 80 km west of Johannesburg at latitude 26º 24’ S and longitude 27º 30’ E

between Westonaria and Carletonville in the Gauteng Province of South Africa. The site is accessed via

the N12 highway between Johannesburg and Potchefstroom with a well developed network of tarred

roads that surrounds the area

Climate No extreme climatic conditions are experienced that may affect mining operations

Licence status and holdings

KDC is entitled to mine all declared Mineral Resources and Mineral Reserves and has all the necessary

statutory mining rights in place. KDC-East also holds a small prospecting right situated within the mining

right. The mine has a new order mining right in respect of the mining area totalling 28,648 hectares.

GFI Mining South Africa (Pty) Limited (GFIMSA) holds a 100% interest in KDC. Gold Fields Limited holds

a 100% interest in GFIMSA

Operational infrastructure

KDC is a large, well-established shallow to ultra deep level gold mine that is accessed from surface

through a number of shafts to its lowest working levels some 3,347 m below surface. It comprises

11 producing shaft systems and five metallurgical plants

Deposit type

Gold mineralisation occurs within laterally extensive quartz pebble conglomerate horizons called reefs,

which are developed above unconformable surfaces within a depositional system near the basin margin.

KDC exploits three primary reefs namely the Carbon Leader Reef (CL), Ventersdorp Contact Reef (VCR)

and Middelvlei Reef (MR) with the CL representing the majority of the current Mineral Reserves in the

west of the mining right and the VCR representing the majority of the current Mineral Reserves in the

east of the mining right

Life of Mine (LoM) It is estimated that the current Mineral Reserves will be depleted in 2040

Environmental

KDC systems, procedures, training etc. are at international best practice levels. ISO 14001:2004

certification has been obtained for this operation. The Safety Management System was certified by

Bereau Veritas in F2009 for OHSAS 18001. The mine has full compliance status for the International

Cyanide Management Code with certification awarded in September 2009

Regulatory codes

Gold Fields reports its Mineral Resources and Mineral Reserves in accordance with the South African

Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (2007

SAMREC Code), and other relevant international codes such as SEC Industry Guide 7, JORC Code

and NI 43-101. The Mineral Resources and Mineral Reserves are underpinned by a sufficient Mineral

Resource Management process and protocol to ensure adequate corporate governance in respect of

the intent of the Sarbanes-Oxley Act

2 Kloof-Driefontein Complex (KDC) – Technical Short Form Report

GEOLOGICAL SETTING AND MINERALISATION KDC is located in the West Wits Line that forms part of the

Far West Rand Goldfields situated on the northwestern rim of

the Witwatersrand Basin. The Witwatersrand Basin comprises

a 6,000 metre thick sequence called the Witwatersrand

Supergroup, which consists of predominantly detrital sedimentary

rocks interspersed sporadically with auriferous and uraniferous

quartz pebble conglomerates, termed reefs, especially in the

upper parts of the succession classified as the Central Group.

The mining area is underlain by outliers of Karoo Supergroup

shales and sandstones, followed by Pretoria Group sediments

and the Chuniespoort Group dolomites. The dolomites overlie the

Klipriviersberg Group volcanic rocks, which in turn cap the

Ventersdorp Contact Reef and sediments of the Central Rand

Group that hosts the other gold-bearing reefs.

OPERATING STATISTICS

UnitsDec

2010*June2010

June2009

June2008

Mining

Main development km 23.9 46.8 42.9 61.1

Main on-reef development km 4.0 7.5 7.8 10.8

Main on-reef development value cm.g/t 2,082 2,030 1,304 1,462

Area mined ’000 m2 442 904 958 1,098

Tonnes milled (underground and surface) ’000 tonnes 5,152 10,383 9,536 9,934

Source of ore

– Underground ’000 tonnes 2,720 5,298 5,535 6,214

– Yield g/t 6.6 6.7 7.8 8.2

– Stockpile (surface) ’000 tonnes 2,477 5,085 4,001 3,720

– Yield g/t 0.7 0.8 0.7 0.8

Average yield g/t 3.8 3.8 4.8 5.5

Gold produced (underground and surface) kg 19,719 39,700 45,812 54,398

Gold production koz 634 1,277 1,473 1,749

Operating costs

– Underground R/ton 1,319 1,301 1,135 860

– Surface R/ton 92 72 83 74

Gold sold kg 19,719 39,700 43,812 54,398

Cash cost US$/oz 832 726 474 420

R/kg 190,973 176,819 137,298 98,230

Capital expenditure Rm 1,266 2,244 1,993 1,914

Notional cash expenditure (NCE) R/kg 257,391 239,305 187,883 138,546

General

Number of employees (TEC) No 31,086 32,772 31,778 33,136

Expected Life of Mine years 30 32 31 33

Mineral Reserves Mt 96.4 116.6 128.4 131,4

Grade of Mineral Reserves g/t 6.5 7.1 7.0 7.3

* Six-month period from July 2010 to December 2010. Rounding off of figures presented in this report may result in minor computational discrepancies. Where this occurs it is not deemed significant.

Witwatersrand Basin depositional model


Panvlakte Horst blocks, which are superimposed over broad

folding associated with the southeast plunging

West Rand Syncline. The northern limb of the syncline dips in

a south-southwesterly direction and the southern limb in an

east-southeasterly direction.

In the area east of the Bank Break (between the West Rand and

Bank Faults), the VCR and the underlying Central Rand Group

strata of the Witwatersrand Supergroup have a general north-

northeast strike and dip to the east-southeast at between 25° and

45°. Major geological structures within the domain comprise

normal faults sub-parallel to the West Rand Fault. Sympathetic to

it are north-northeast trending dykes with little or no apparent

offset of the stratigraphic units and younger, easterly trending

sinistral wrench faults, some of which host dyke material. Several

large dykes also contribute to dividing the West Wits Line into a

series of water compartments. Local bedding plane faulting along

the VCR has resulted in the elimination and local duplication of the

VCR horizon.

The vertical separation between the VCR and MR increases from

north to southwest of the Bank Break (VCR overlies progressively

older strata southwards) and from east to s of the Bank Break

(VCR overlies progressively older strata westwards). This is a

result of the relative angle of the VCR unconformity surface to the

regional strike and dip of the underlying Central Rand Group

strata. This unconformity feature, in conjunction with the structural

effects of the Bank Fault (Bank Anticline), results in the elimination

of the CL and MR in a V-shaped area closing to the south just

west of the Bank Fault (D5 Shaft area).

West of the Bank Break the VCR and

the underlying Central Rand Group

strata of the Witwatersrand

Supergroup have a general east-west

strike and dip to the south at between

20° and 25° (VCR 210 to the south-

southeast). Major geological structures

within the domain comprise normal

faults sub-parallel to the Bank Fault.

Sympathetic to it are north-northeast

trending dykes with little or no

apparent offset of the stratigraphic

units and younger, east-northeasterly

trending dextral wrench faults, some

of which host dyke material. The VCR

is most extensively developed just

west of the Bank Fault in the west of

Bank Break domain. The subcrop line

The reefs, which are generally less than 2 metres thick, are widely

considered to represent extensive fluvial fans. Deposition took

place along the interface between a fluvial system that brought

the sediments and heavy minerals from an elevated source-area

and a lacustrine littoral system that reworked the material and

redistributed the finer sediments along the shoreline of an

intracratonic lake or shallow water inland sea. The gold is mainly

of detrital origin, deposited syngenetically with the conglomerates

and interrelated with sedimentary features such as unconformities

and fluvial channels.

Although the gold generally occurs in native form and is usually

associated with pyrite and carbon, most of the gold has been

subsequently modified and remobilised during secondary

hydrothermalism, giving rise to the most favourite depositional

model currently in use, i.e. Modified Palaeoplacer Model. The

model emphasises a control on the occurrence of ore minerals by

placer-forming mechanisms, while accepting some modification

by metamorphism, is the generally accepted model for the origin

of gold and uranium mineralisation of the Witwatersrand Basin.

For several decades now, models using sedimentological

principles were very successfully used to predict gold distribution

on mine properties.

Local geology

The KDC is bound by the West Rand Fault to the east separating

it from the South Deep Gold Mine, and is bisected by the Bank

Fault, a large west dipping fault with a down-throw to the west

resulting in the Bank Break phenomenon. The structure east of

the Bank Break (KDC-East) is dominated by the West Rand and

Seismic section across the West Rand Fault

West Rand Fault


Schematic diagram of the VCR palaeomorphological model

VCR milky cobble terrace facies

VCR apple green terrace facies

For the 31 December 2010 Mineral Resource and Mineral

Reserve estimate, minor corrective changes were made to the

VCR facies model based on the latest geological information.

Middelvlei Reef

The MR is correlated with the South Reef of the Central Rand

Goldfields. It occurs some 55 metre above the CL over most of

the mining right area, except where eliminated by the VCR erosion

surface, and is made up of a number of well-packed, large quartz

pebble conglomerate bands. In some areas the MR assemblage

of the VCR against the Black Reef and overlying dolomites

trends west-southwest and consequently restricts the area to

the west that is underlain by VCR.

KDC exploits three primary reefs, namely the Ventersdorp

Contact Reef (VCR) located at the top of the Central Rand

Group, the Carbon Leader Reef (CL) near the base of the Group

and the Middelvlei Reef (MR), which stratigraphically occurs

some 50 to 75 metres above the CL. Various secondary reefs

are also being exploited, but only on a limited scale due to

localised payability. These reefs include the Kloof and Libanon

Reefs of the Kimberley Conglomerate Formation and the Erosion

Channel Reef of the Main Conglomerate Formation. This Erosion

Channel that eliminates the CL in a broad west-northwest to

east-southeast zone, sometimes contains a conglomerate which

is mined as a secondary reef. For reporting purposes, the

Erosion Channel Reef is grouped with the CL and is not reported

separately.

In the area east of the Bank Break, the majority of mining takes

place on the VCR, which constitutes 88% of the Mineral

Reserve, the MR 10%, and the Kloof Reefs the remaining 2%.

West of the Bank Break the CL is generally a high grade reef

and represents approximately 81% of the current Mineral

Reserve, the VCR 17% with the remaining 2% comprising mainly

the MR. Surface rock dump material is also processed.

Ventersdorp Contact Reef

In addition to the many economically viable reefs found in the

Central Rand group, the Ventersdorp Contact Reef, found at the

base of the Ventersdorp Supergroup, constitutes a further

significant principle economic reef practically unique to this

goldfield. The Ventersdorp Supergroup lithologies truncate the

Central Rand Group sediments, classifying the auriferous VCR

as part of the Venterspost Formation.

The VCR represents the final phase of sedimentation prior to the

extrusion of the lavas of the Klipriviersberg Group and

unconformably and disconformably overlies the underlying

sediments of the Witwatersrand Supergroup. The VCR is dated

at approximately 2.7 billion years and is an auriferous

palaeo¬placer consisting of several complex, inter-calated gravel

types (facies). Lavas of the Klipriviersberg Group lie conformably

on the gravels (conglomerates) and thus preserved unique

characteristics of the sediments and the geomorphology. The

sediments have been subdivided into five major facies types,

which consist of a complex series of intercalated oligomictic and

polymictic conglomerates of varying thicknesses and differing

average gold grades.

20 cm

4 Shaft Main Shaft

Slope ReefWEST RANDFAULT

VCR FACIES:

Surface

Bimodal Terrace

Milky Cobble Terrace

Apple Green Terrace

Sandy 1Sandy 2


is as much as 6 metres thick with well developed top, middle and

bottom bands, separated from each other by quartzite partings.

The Middelvlei Reef is particularly well developed on the eastern

side of the Bank Break (KDC-East) where it is considered as

a principle reef. West of the Bank Break the MR is less well

developed with only limited areas of potential economic viability,

which are restricted to the proximal facies of a braided-stream

depositional environment.

The MR in general has well defined “pay shoots” which are limited

in extent and therefore difficult to project or explore. The bottom

band is most exclusively the economic horizon of the MR, ranging

from a single pebble lag to a maximum thickness of 80 cm. The

current MR model is based on sedimentology and value/channel

width trends to highlight prospective areas and to constrain the

estimation process. For the 31 December 2010 Mineral Resource

estimate, changes were made to the facies model at various shaft

domains based on the latest geological information.

Carbon Leader Reef

The CL is the principal economic reef on the western side of the

Bank Break (KDC-West) and correlates with the Main Reef of

the Central Rand Goldfields and varies in thickness from a mere

carbon streak to a solid seam of carbon up to 7 mm thick, to a

multiple band medium pebble conglomerate, on average some

200 cm thick. Although the CL is present east of the Bank Break,

it is found as distal equivalents of the former and grades into

scattered grits with less gold mineralisation, generally of

uneconomic concentrations.

Multiple band CL stratigraphy

The CL is the deepest reef and is present all over the mining right

area west of the Bank Break except where eliminated by the

erosive surface at the base of the VCR in the central parts of the

mine and by the Erosion Channel in the north. Four facies of

CL are present; a carbon seam and a single band conglomeratic

facies in the west, a multiple band facies in the central parts and a

single band conglomeratic facies in the east. Geostatistically the

east and west single band facies differ markedly in their average

gold content and channel widths.

The CL has a low angle of unconformity. The footwall consists of

a package of conglomerates, usually referred to as the “Footwall

bands of the CL” (also the “North Leader Zone”) and this zone is

characterised by lenses of conglomerates, separated by yellowish

grey argillaceous quartzite. The basal conglomerate band of this

zone is called the North Leader (NL).

Carbon Leader carbon seam facies

The hangingwall of the CL consists of a siliceous grey quartzite

overlain by the Green Bar, a chloritoid shale occurring over most

of the Witwatersrand Basin.

The multiple band CL facies is defined sedimentologically as a

reef containing more than one conglomerate band separated

by internal quartzite bands. The internal quartzite is similar in

appearance to that forming the hangingwall of the CL. The

channel width of the facies varies from as little as 10 cm to more

than 420 cm and the number of conglomerates is highly variable

because of their lenticular nature. The gold grade of the multiple

band facies is generally lower than that of the single band facies

but, because of its channel width, their gold accumulation (cm.g/t)

is often similar. Carbon seams are also known to occur in these

reefs accompanied by an increase in gold content.

Example of multiple band CL

Carbon seam (2 – 2.5 cm)

20 cm


Secondary Reefs

The Kloof, Libanon and Erosion Channel Reefs are a relatively minor component of the KDC Mineral Resource. The reefs are channelised

and due to their localised payability, exploration is difficult and often neglected due to the sporadic nature of economic mineralisation.

However, when in reach of exploration platforms from current underground development, exploration programmes are initiated to test for

economic exploitable areas or zones.

At KDC, for the six months reporting period to 31 December 2010, the following was achieved:

Exploration drilling and expenditure

6 months to December 2010 June 2010 June 2009

Operation Metres drilled ZAR millions US$ millions US$ millions US$ millions

Driefontein 5,558 5,646 0,791 1,096 0,605

Kloof 6,603 5,661 0,793 1,767 1,252

Total 12,161 11,307 1,584 2,863 1,867

Exchange rate: US$1:ZAR7.138

Exploration and drilling

The exploration strategy includes the following:

� Reduced uncertainty inherent to the deposit;

� Underground fan drilling;

� Timeous prospect development;

� Proactive geology; and

� Reconnaissance visits to previously mined areas to confirm

structure and facies.

A continuous Mineral Reserve definition programme is in place

and is aligned to facilitate better planning and optimisation, with

appropriate lead time, to ensure robust geological and evaluation

models, that will underpin the resource definition of the VCR,

MR and CL. The programmes will confirm the ore body potential

in all areas of KDC, including secondary minerals such as uranium

and sulphur. Exploration activities are focused on the extension of

existing ore bodies and the identification of new ore bodies, both

at existing sites and at undeveloped sites. Once a potential area

has been discovered, exploration is extended and intensified in

order to enable clearer definition of the ore body and the potential

portions to be mined. Geological techniques are constantly

refined to improve the economic viability of prospecting and

mining activities.

A comprehensive borehole management QA/QC programme

is embedded at KDC and is intended to monitor sampling and

laboratory performance in an effort to control (minimise) the total

possible error in the sampling-splitting-analysis sequence. This is

achieved by monitoring and controlling four essential components

of the sequence:

i) Sample Management and Sample Security;

ii) Laboratory Sample Preparation and Assaying;

iii) Analytical Accuracy and Precision; and

iv) Reporting Accuracy.

Schematic 3D section through KDC-West

D11

Pretoria Group

KDC-WestMining Rights

Malmani Dolomite

CENTRAL RAND GROUP

S∕O VCRWEST RAND

GROUPDD

Erosion Channel

Ventersdorp Lava

D12 D10D13

D8D6

D7D1 D2 D4D3

D9

D5

22 Level

42 Level

Black Reef

S∕O CLand MR

� VCR � MR � CL S/O = Sub-crop


MININGThe KDC operation is engaged in underground and surface rock

dump mining and is a large, established shallow to deep level

gold mine that is accessed from surface via 13 shaft systems

to the current lowest working level some 3,347 metres below

surface. KDC comprises 11 producing shafts that mine varying

quantities from open ground and pillars. The shafts vary

in diameter, depth and hoisting capacities.

A significant challenge facing the KDC operation is seismicity and

to a lesser extent flammable gas. To reduce the impact of

seismicity, KDC practices the closely spaced dip pillar mining

method and has also adopted a revised stope support standard

in all areas with friable hangwall, especially in areas that have the

Westonaria Formation Lava hangingwall.

Early detection methods and increased ventilation of the shafts

are being used to minimise the risk of incidents caused by

flammable gas. Extensive cooling infrastructure is required to

maintain comfortable conditions for workers due to the depth of

the operations.

The rock engineering practices are aimed at reducing risks and

thus improving safety associated with gravity and seismic related

rockfall and rockburst incidents through implementing the

recommendations from the risk assessment department, testing

of high-yield elongate support units and continuous assessment

of the seismic systems.

An application for additional power was made to the supplier of

power in fiscal 2009. This has been granted and KDC-East is now

permitted to utilise power at an increased baseline of 234.4 MW,

rather than 214.4 MW. In addition, in the unlikely event of a total

power outage for a prolonged period, KDC-East has installed and

commissioned an emergency generation plant of 14.4 MW to

allow mine personnel to be evacuated speedily.

Emergency electricity plant

Mining methodsAccess to the various auriferous reefs being mined is provided

through vertical, inclined and declined shaft systems. If additional

depth is required to fully exploit the reef, and it is economically

feasible, then secondary (sub-vertical) or tertiary shafts are sunk

from the underground levels. Horizontal development at various

intervals of a shaft, known as levels, extends access to the horizon

of the reef to be mined. On-reef development then provides specific

mining access.

The predominant mining layout at KDC is breast stoping with

dip pillars, with a minor contribution from scattered mining.

Breast stoping with dip pillars has been selected for the below

infrastructure projects. Mining spans and pillar widths depend on

the location, the reef being mined and the depth of working.

The mining methods employed at KDC vary between shafts and

can be subdivided as follows:

1. KDC-West operation

� Breast mining with dip pillars in the shaft pillar extraction at

D1 Sub-Vertical Shaft;

� Breast mining with dip pillars at D1 Tertiary and D5

Sub-Vertical Shafts;

� Pillar extraction and scattered mining at D2 Shaft;

� Mini-longwall mining, scattered mining, shaft pillar and pillar

extraction at D4 Sub-Vertical Shaft;

� Pillar extraction and scattered mining at D6 Sub-Vertical

Shaft;

� Pillar extraction and scattered mining at D8 Shaft; and

� Reclamation and vamping at D6 Tertiary and D10 Sub-

Vertical Shaft.

2. KDC-East operation

� K1 SV Shaft – remnant pillar extraction and breast mining

with dip pillars;

� K2 SV Shaft – remnant pillar extraction and breast mining

with dip pillars;

� K3 and K7 Shafts – breast mining with dip pillars and

remnant pillar extraction;

� K4 Shaft – breast mining with dip pillars; and

� K8 Shaft – remnant pillar extraction and breast mining with

dip pillars.

KDC is also processing old surface rock dumps containing gold.

The dumps are loaded and screened to smaller fractions and then

processed at D2, D3 and K1 plants.


Mine planning and scheduling All mine design and scheduling is undertaken using Cadsmine©

computer software in conjunction with the Integrated Resource

and Reserve Information System (IRRIS) proprietary to Gold

Fields. This includes the delineation of mining or stoping areas for

each mining level and section, usually leading from an extension

to the existing mining sequence, and the definition of the

necessary development layouts. The latest update of the

geological structure model is referenced and incorporated into

the mine design.

The geological models are validated in IRRIS, where resource

blocking is also carried out. All blocks are captured according to

the geological models and geozones. The mine design includes

rock engineering pillars comprising bracket pillars along major

geological structures, as well as stability pillars related to the

appropriate mining method. An allowance for minor faulting,

structure and reef loss, based on historical results, is applied.

The mine design is scheduled on a monthly basis for the first

two years of the operational plan, which is extended on an annual

basis for the remaining period of the LoM Plan. The production

parameters necessary for the development of the strategic LoM

plan are captured from the computer models on a shaft basis for

each period. The inclusion of the surface Mineral Resources is

reviewed annually as part of the strategic planning process.

The C2011 operational plan, with respect to remnant pillar mining,

was aligned to the updated Gold Fields Pillar Mining Code of

Practice, which takes cognisance of a stringent safe remnant

extraction practice. The rock engineering risk factors (risk matrix)

associated with remnant extraction were identified as: Energy

Release Rate; Average Pillar Stress; Shape; Width-to-Height

Ratio; and the presence of seismically active geological

structures. Additional pillars and remnants have therefore been

excluded from KDC’s C2011 Mineral Reserves.

Mineral Reserve development will continue to be a key

performance indicator and will be accelerated further in appropriate

areas. The following table indicates the development advanced for

the last eighteen months to Dec 2010. A total of 70.7 kilometres

was developed with 11.5 kilometres driven on-reef.

Development results (for 18 months to Dec 2010):

Category CL MR VCR Kloof

Advanced (m) 25,616 9,527 34,532 1,071

On-reef (m) 4,383 1,773 5,239 100

Sampled (m) 3,879 1,841 4,352 114

Channel Width (cm) 76 83 118 183

Average grade (g/t) 24.3 8.3 22.7 14.1

Average value (cm.g/t) 1,838 690 2,691 2,572

KDC-West: Mine scheduling

Production and hoisting capacities

Business unit

Shaft zone

Operatingshaft

Planned production

(ktpm)*

Hoisting capacity

(ktpm)BU 1 D1 Shaft D1 – 155.0

D1 SV – 185.0

D1 T 51.1 155.0

D5 Shaft D5 – 70.0

D5 SV 87.8 175.0

BU 2 D2 Shaft D2 16.0 185.0

D4 Shaft D4 SV 33.8 180.0

BU 3 D6 Shaft D6 – 118.0

D6 SV 9.7 126.0

D6 T – 65.0

D8 Shaft D8 48.9 96.0

D9 Shaft D9 – 200.0

D10 Shaft D10 SV – 62.0

BU 4 K3 Shaft K3 SV 32.3 131.0

K4 Shaft K4 – 112.0

K4 SV 71.4 106.0

BU 5 K1 (Main) Shaft

K1 – 265.0

K1 SV 32.6 187.0

K2 Shaft K2 SV 18.2 101.0

K7 Shaft K7 – 176.0

K7 SV 28.1 150.0

K8 Shaft K8 24.0 84.0

K10 Shaft K10 – –

*Five-year average SV: Sub-vertical; T: Tertiary


PROJECTSKDC-West 5 Shaft Decline Project

During 2010, the economic viability of the D9 Shaft project at the

KDC-West Mine operation versus a phased mechanised decline

project below D5 Shaft was assessed. The results indicated that

the decline project provides a better return and a full feasibility

study will be conducted in C2011. Phase 1 of the decline option

will take mining down to 54 level (3,600 metres below surface),

whereas the original D9 Shaft project was designed to 57 level

(4,000 metres below surface). Consequently, the D9 Shaft project

has been excluded from the Mineral Reserves in favour of the

decline option.

KDC-East 46 Level Project

The 55 Decline project targeted the economic Sandy 1 VCR

facies present between 45 and 48 levels to the north of the

K4 Shaft complex. The project was recently reviewed and the

option to develop a 46 level from 4 Shaft instead of developing a

decline system, was accepted. The majority of higher grade ore

is concentrated between the existing 45 level and the 46 level

horizons resulting in two-thirds of the project ounces being

accessible via a single level (from the existing shaft system)

instead of a three level decline. The 4 SV shaft 46 level is

positioned some 72 metres below 45 level and comprises the

main ore transfer belt to the shaft as well as dams and pumping

infrastructure. The No. 1 Man winder provides access to a full

station on 46 level that could be used for men, material and

equipment to develop a haulage towards the target area.

KDC-East 46 level project

The GROWTH (Gold Recovery Opportunities from Waste

Treatment Holistically) Project

KDC-East has two proven metallurgical plants in process that

mostly have long operational histories. In addition, a pilot plant

(Growth Project) is being commissioned which aims to increase the

grade of the KDC-East Main Shaft surface rock dump feed to

produce a concentrate for processing. The project’s objective is to

treat the entire Main Shaft surface rock dump to produce pebbles

for milling, industrial aggregate suitable for an appropriate off-take

agreement, backfill for placement in underground operations and a

gold product. This basket of products will result in a positive cash

flow and will facilitate the ultimate rehabilitation of the surface rock

dump site ahead of current LoM schedules. The technical heart of

the project is the ‘Python’ gravity plant, together with an optical ore

sorting machine, as well as a mobile recovery and screening plant

as presently administered by contractors.

‘Python’ gravity concentration plant


MINERAL PROCESSINGKDC operates five gold processing plants, three at the KDC-West

operation and two at the KDC-East operation. Both operations’

plants uses proven metallurgical with a centralised elution, carbon

treatment and smelting facilities. The benefits of this centralisation

are better recovery rates, giving reduced dissolved gold losses

and operating cost, as well as improved security. Gold bullion

produced is dispatched to the Rand Refinery to further process it

to a saleable quality of 99.9% purity.

Plant capacities

PlantCapacity

(tpm)Efficiency

(% extraction) Material treated

D1 – CIP 240,000 97 Underground ore

D2 – CIP 200,000 92 Surface rock dump

D3 – CIL 115,000 92 Surface rock dump

K1 – CIP 170,000 92 Surface rock dump

K2 – CIP 167,000 98 Underground ore

KDC’s first gold pour took place in 1952 at the original KDC D2

Gold Plant with ore obtained from the now defunct 11 shaft. In

1962 the crusher unit of the plant collapsed down a sinkhole, and

the current D2 Plant was erected in less than 12 months. Currently

D2 Plant is only treating surface waste rock material at 200 kt per

month. It is delivered by rail from rock dumps to the plant feed

bunkers. The plant flow sheet incorporates two SAG mills and a

ball milling circuit, cyanide leaching and a carbon in pulp (CIP)

plant. Loaded carbon is transported to the central Elution Circuit

at 1 Plant.

The D1 Gold Plant was commissioned in 1972 as a three stage

crushing, two stage milling, filtration and zinc precipitation

operation. The plant was initially designed and installed to treat

100 kt of ore per month, but this has been gradually increased

to a monthly throughput of 240 kt. The mineral processing

technology in the plant is based on SAG milling circuit followed by

cyanide leaching. The SAG milling circuit was commissioned in

September 2003 and replaced the conventional crushing and

milling circuit while the filtration and zinc precipitation processes

were replaced by the state of the art carbon in pulp (CIP) plant.

Originally a uranium plant, D3 Gold Plant was converted in 1998

to a surface low-grade waste rock treatment facility. The plant

was constructed using a combination of new as well as existing

equipment on site. This plant has the capacity to treat 115 kt per

month of rock material reclaimed from the waste rock dumps

located on the mine.

The K1 Plant was commissioned in 1968 to treat underground

ore. This plant comprises three stage crushing, utilising open

circuit rod mills for primary milling and closed circuit pebble mills

for secondary milling. After milling, the pulp is thickened and then

processed through air agitated leaching, drum filtration, zinc

precipitation and smelting to doré. In June 2001 an AAC Pump

Cell CIP circuit was installed to replace the less efficient drum

filtration and zinc precipitation. Smelting was also discontinued,

with loaded carbon being transported to the K2 Plant for elution

and thermal regeneration.

The K2 Plant was commissioned in November 1990. This plant

receives underground Run-of-Mine ore (RoM), which is crushed

and delivered to a stacker reclaimer system, where the ore is

stored and blended prior to reclamation and delivery to the mills.

Surface material is also delivered to the stacker pad to utilise

plant capacity. There are two Semi-Autogenous Grinding (SAG)

mills, which are equipped with variable-speed ring motor drives,

and can be operated as fully autogenous units or as semi-

autogenous units by adding steel grinding balls. Milled ore is

thickened ahead of cyanide leaching in air-agitated tanks and

adsorption onto activated carbon in a conventional CIP circuit.

Loaded carbon is eluted in an AARL elution circuit, which was

upgraded in June 2001 and further in October 2003. It now

serves as the central elution facility for Kloof. The upgrade

included the installation of Continuous Electrowinning Sludge

Reactors, which are working very efficiently. Cathode sludge is

filtered and smelted to produce doré. The current operational

capacity of the K2 Plant is 167 ktpm.

D1 Plant, KDC-West


In terms of community involvement, KDC has continued to

support the Living Gold project that results in high quality roses

being exported and others sold within the local market. Living

Gold has created permanent employment to more than

150 people from the local communities. KDC has also recently

built a combined school that has been made available to more

than 1,600 children from the local community.

A bakery was also introduced within the local community and is

currently fully operational, which provides bread to the mine and

surrounding communities and is owned by representatives of the

local community. The bakery has created permanent

employment to more than 20 previously unemployed people.

KDC spent more than R300,000 establishing a garment

manufacturing project supporting more than 15 women. The

project produces amongst others, safety clothing and overalls

that are used at the mine. Other community projects include

waste recycling, alien vegetation eradication, making sporting

facilities available to local schools and employees volunteer their

time to assist local schools, especially to improve the

understanding of Mathematics and Science among school

pupils.

Community vegetable farming

SUSTAINABLE DEVELOPMENTGold Fields has embraced sustainable development as a

business imperative, which is reflected in its vision, values and

strategy. Through this, Gold Fields has introduced structures that

encourage a networked interface between disciplines like safety,

health, environmental engineering, natural environment, risk,

stakeholder engagement, legal and communication. This

approach has allowed Gold Fields to capitalise on synergies and

to avoid duplication. In this regard, several Key Performance

Indicators (KPIs) are monitored and utilised to make informed

business decisions.

Gold Fields is designing a safety management system called the

Safe Production Management System, to address outstanding

issues identified and to assist the operations to improve health

and safety to best practice levels. Gold Fields has committed itself

to the Mine Health and Safety Council target set by the industry in

conjunction with the Department of Mineral Resources. These

milestones are based on rate improvements for fatalities,

noise-induced hearing losses and silicosis, with the objective of

aligning with international norms. Passing of the Mine Health and

Safety Act in 1996 heralded a transition to a new paradigm shift in

mining health and safety in South Africa. Since that time, the Mine

Health and Safety Council has set a benchmark for reduction of

accidents to international standards in the South African mining

industry by 2013.

KDC’s environmental initiatives are focused on reducing the

impact that the mine may have on the receiving environment.

All potential sources of pollution like the water discharges are

sampled, analysed and monitored on a regular basis. Concurrent

rehabilitation projects, like alien vegetation eradication are the

current focus. The mine has an environmental management team

who are supported by specialist assistance from the regional

office in Libanon. The mine has been certified to be in compliance

with ISO 14001: 2004 standard. Quarterly internal audits of all

management units are performed. Bi-annual external surveillance

audits are conducted for ongoing verification of conformance.

Safety statistics

Class Units 2006 2007 2008 2009 2010

Fatalities (No) 26 31 16 22 11

Fatality rate (per mmhrs) 0.30 0.33 0.18 0.24 0.13

LDIFR (per mmhrs) 16.71 11.32 6.72 5.26 6.31


MINERAL RESOURCES AND MINERAL RESERVESThe Mineral Resources are classified as defined and described in the 2007 SAMREC Code and are consistent with the approach used at

other Witwatersrand deep level gold operations. An updated resource model provides an effective platform for realistic mine design with

the application of appropriate mining methods. KDC’s Mineral Resources and Mineral Reserves are reported within its mining right and are

adjusted to show the split between above (AI) and below (BI) current shaft infrastructure as defined by 50 level at KDC’s West operation

and 46 level at KDC’s East operation.

In this reporting cycle, considerable Mineral Resource ounces that previously converted to the Measured, Indicated and Inferred categories,

now remain in inventory. This revision is based on the enhanced in-house resource classification, which takes into account Gold Fields safety

value (“If we cannot mine safely, we will not mine”), as well as the principle that there must be reasonable and realistic prospects for eventual

economic extraction.

Mineral Resources

Mineral Resources are quoted at an appropriate in situ economic cut-off grade with tonnages and grades based on the resource block

model. They also include estimates of any material below the cut-off grade required to be mined to extract the complete pay portion of

the Mineral Resource.

Mineral Resource classification

Tonnes (Mt) Grade (g/t) Gold (’000 oz)

Dec 2010 June 2010 June 2009 Dec 2010 June 2010 June 2009 Dec 2010 June 2010 June 2009

Underground

Measured 40.4 116.4 121.3 15.2 11.1 11.1 19,731 41,727 43,436

Indicated (AI) 61.3 98.8 98.8 10.2 9.2 9.2 20,193 29,248 29,248

Inferred (AI) 4.7 17.4 17.4 7.8 6.0 6.0 1,174 3,343 3,343

Total above infrastructure 106.4 232.6 237.5 12.0 9.9 10.0 41,098 74,318 76,027

Indicated (BI) 50.1 122.7 122.7 13.6 12.7 12.7 21,865 49,991 49,991

Inferred (BI) 16.0 25.9 25.9 16.2 5.9 5.9 8,321 4,899 4,899

Total underground 172.5 381.2 386.1 12.9 10.5 10.5 71,284 129,208 130,917

Surface stockpiles

Indicated surface dumps 30.2 35.1 40.3 0.6 0.6 0.6 594 711 817

Total surface stockpiles 30.2 35.1 40.3 0.6 0.6 0.6 594 711 817

KDC total 202.7 416.3 426.4 11.0 9.7 9.6 71,878 129,919 131,734

Notes: AI = Above Infrastructure and BI = Below Infrastructure.

The Mineral Resource estimate for gold and uranium in the Tailings Storage Facilities (TSF) and the underground uranium, are included in

the figures below:

Mineral Resource

classification (Gold)

Tonnes (Mt) Grade (g/t) Gold (‘000 oz)

Dec 2010 June 2010 June 2009 Dec 2010 June 2010 June 2009 Dec 2010 June 2010 June 2009

Surface tailings

Measured tailings 418.1 414.9 385.8 0.3 0.3 0.3 4,069 4,055 3,848

Indicated tailings – – – – – – – – –

Inferred tailings – – 13.8 – – 0.2 – – 101

Total TSFs 418.1 414.9 399.6 0.3 0.3 0.3 4,069 4,055 3,949

Mineral Resourceclassification (Uranium)

Tonnes (Mt) Grade (kg/t) Uranium (Mlb)

Dec 2010

June 2010

June 2009

Dec 2010

June 2010

June 2009

Dec 2010

June 2010

June 2009

Underground

Inferred (scheduled) 79.6 79.6 85.7 0.046 0.075 0.075 8.054 13.207 14.099

Total underground 79.6 79.6 85.7 0.046 0.075 0.075 8.054 13.207 14.099

Surface tailings

Measured tailings 418.1 414.8 399.6 0.048 0.048 0.048 44.307 44.164 42.705

Indicated tailings – – – – – – – – –

Inferred tailings – – – – – – – – –

Total surface tailings 418.1 414.8 399.6 0.048 0.048 0.048 44.307 44.164 42.705

KDC total 497.7 494.4 485.3 0.048 0.053 0.053 52.361 57.371 56.804


Modifying factorsKDCEast

KDCWest

Mineral Resource

gold priceUS$/oz 1,100 1,100

Exchange rate ZAR:US$ 8.24 8.24

Mineral Resource

gold priceZAR/kg 290,000 290,000

Mineral Resource

pay limitcm.g/t 1,460 1,130

Mineral Reserve

gold priceUS$/oz 1,000 1,000

Mineral Reserve

gold priceZAR/kg 265,000 265,000

Mineral Reserve

pay limitcm.g/t 1,610 1,240

Mined value cm.g/t 1,950 1,687

Mine call factor % 83 90

Block factor % 100 99

Stopping (block)

widthcm 157 154

Mill width cm 206 201

Plant recovery

(underground)% 98 97

Modifying factors

� The Measured and Indicated Mineral Resources are inclusive

of those Mineral Resources modified to produce Mineral

Reserves;

� All Mineral Resources and Mineral Reserves are stated as at

31 December 2010. Unless otherwise stated, all Mineral

Resources and Mineral Reserves are quoted as 100%

(managed) and not attributable with respect to ownership;

� All Mineral Reserves are quoted in terms of Run-of-Mine

(RoM) grades and tonnage as delivered to the metallurgical

processing facilities and are fully diluted;

� Mineral Reserve statements include only Measured and

Indicated Mineral Resources, modified to produce Mineral

Reserves and contained in the LoM plan; and

� Mineral Resources and Mineral Reserves undergo both

internal and external audits either during the year, yearly or

biannually, and any issues identified are rectified at the earliest

opportunity – usually during the current reporting cycle.

Grade tonnage curve

The grade tonnage curves (GTC’s) represents undiluted grade

(at block width) and tonnes within the total Mineral Resource.

Underground Mineral Resources make provision for minor faulting

and minor geological losses.

KDC-West combined GTC

300

250

200

150

100

50

0

30

25

20

15

10

5

00 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

— T

onne

s (m

illio

ns)

— A

vera

ge g

rade

abo

ve c

ut-o

ff (g

/t)

Cut-off grade (g/t)

KDC-East combined GTC

500

450

400

350

300

250

200

150

100

50

0

45

40

35

30

25

20

15

10

5

00 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

— T

onne

s (m

illio

ns)

— A

vera

ge g

rade

abo

ve c

ut-o

ff (g

/t)

Cut-off grade (g/t)

Close-up of basal contact Milky Cobble VCR, KDC-East


Mineral Resource reconciliation (18-month period)

Factors that affected Mineral Resource reconciliation:

� Decrease due to mining operations during the past

18 months;

� The major enhancement in the in-house Mineral Resource

classification and an increase in pay limits, has resulted in a

significant reduction in ounces at KDC-West of 21 million

ounces and at KDC-East of 37 million ounces;

� KDC-West’s below infrastructure mechanised decline option

versus the D9 Shaft project has resulted in a decrease of

4.4 million ounces;

� KDC-East’s 46 level option versus the 55 decline project has

resulted in a decrease of 0.36 million ounces; and

� Economic factors (higher pay limit).

Change in Mineral Resource June 2009 to December 2010 130

100

70

40

10

131.7 129.9

71.9

1.58 0.70 0.23

5.6725.54

16.524.56

5.18 0.12

0.33

June

200

9

Depl

etio

n

Excl

usio

ns K

7 Sh

aft

June

201

0

Depl

etio

n

Reso

urce

mod

ellin

g

Recl

assi

ficat

ion

Reso

urce

bey

ond

foot

prin

t (KD

C-E

ast)

Pay

limits

Reso

urce

mod

ellin

g

Surfa

ce re

sour

ces

Excl

usio

ns

Dece

mbe

r 201

0

Mineral Reserves

Mineral Reserve estimation at KDC is based on development of an appropriately detailed and engineered LoM plan, which accounts for all

necessary access development and stope designs. The planning process incorporates appropriate modifying and technical-economic

factors.

Significant increases in power, consumable and labour costs have limited the benefit of an increased gold price with the effect that pay limits

show only nominal reductions since the June 2010 declaration despite the increase in the Mineral Reserves gold price. Optimised mine

design and scheduling on the Mineral Reserve estimate, utilising a US$1,000 per ounce gold price, resulted in a Proved and Probable

Mineral Reserve estimate as at 31 December 2010, as follows:

Mineral Reserve classification

Tonnes (Mt) Grade (g/t) Gold (’000 oz)Dec

2010June 2010

June 2009

Dec 2010

June 2010

June 2009

Dec 2010

June 2010

June 2009

UndergroundProved 19.0 32.1 36.8 8.4 7.4 10.7 5,140 7,648 8,861

Probable (AI) 44.5 35.7 39.0 7.6 8.4 8.2 10,934 9,613 10,344

Probable (BI) 16.1 30.8 30.8 7.2 9.1 9.1 3,713 8,965 8,965

Total underground 79.6 98.6 106.6 7.7 8.3 8.2 19,787 26,226 28,169

Surface stockpilesProbable surface 16.8 18.0 21.8 0.8 0.8 0.8 454 466 554

Total surface stockpiles 16.8 18.0 21.8 0.8 0.8 0.8 454 466 554

Grand total 96.4 116.6 128.4 6.5 7.1 7.0 20,241 26,692 28,723

Notes: AI = Above Infrastructure and BI = Below Infrastructure.

Mineral Reserves per business unit

Business unit

Proved Probable

Tonnes (Mt)

Grade(g/t)

Gold (’000 oz)

Tonnes (Mt)

Grade (g/t)

Gold (000 oz)

BU 1 (D1 and D5 shafts) 4.3 7.7 1,063 29.4 7.6 7,194

BU 2 (D2 and D4 shafts) 3.8 10.3 1,258 6.8 7.5 1,632

BU 3 (D6, D7, D8 and D10 shafts) 3.2 5.7 565 0.8 3.3 137

BU 4 (K3 and K4 shafts) 2.4 12.0 923 17.6 7.9 4,453

BU 5 (K Main, K 7, K8 and K10 shafts) 5.3 7.8 1,331 6.1 6.3 1,231

Total Mineral Reserves underground 19.0 8.4 5,140 60.7 7.5 14,647

Total Mineral Reserves surface – – – 16.8 0.8 454

Grand total 19.0 8.4 5,140 77.5 6.1 15,101

Go

ld (M

oz)


Mineral Reserve reconciliation (18-month period)

Factors that affected Mineral Reserve reconciliation:

� Depletion since June 2009;

� Geological and evaluation model enhancements coupled with

reef grade changes;

� Specific exclusions (D9 Shaft and K4 55 decline) and changes

in dip pillar layouts; and

� Economic factors.

REGULATORY CODESSAMREC

This Technical Statement has been prepared in compliance with

the South Africa Code for the Reporting of Exploration Results,

Mineral Resources and Mineral Reserves (2007 SAMREC Code).

JSE

This Technical Statement has been prepared in compliance with

the Listings Requirements of the JSE Limited, South Africa,

specifically Section 12 – Issue 11.

Sarbanes-Oxley Act

The Mineral Resources and Mineral Reserves are underpinned

by an adequate Mineral Resource management process and

protocol to ensure adequate corporate governance in respect of

the intent of the Sarbanes-Oxley Act.

Environmental

KDC has an environmental management team who are supported

by specialist assistance from the South Africa regional office at

Libanon. The systems, procedures and training are at international

best practice levels. Gold Fields produced a Sustainability Report

in 2010 and intends reporting annually in accordance with the

Global Reporting Initiative.

Change in Mineral Reserves June 2009 to December 2010

30

20

10

0

Gol

d (M

oz)

28.7

20.2

1.5 26.7 0.7 26.0 0.0

4.9 1.5 0.80.61.0

0.5

June

200

9

June

201

0

Min

ed d

eple

tion

2009

Min

ed d

eple

tion

2010

Spec

efic

excl

usio

ns

Spec

efic

excl

usio

ns

Spec

efic

incl

usio

ns

Post

dep

letio

n Ju

ne 2

010

Geo

logy

Econ

omic

fact

ors

Tech

nica

l fac

tors

Eval

uatio

n

LoM

Dec

embe

r 201

0

Mineral Reserve SensitivityThe following graph indicates the Mineral Reserve sensitivity at

25 –10%, -5%, base, +5%, +10% and +25% to the gold price.

The Mineral Reserve sensitivities are not based on detailed

depletion schedules and should be considered on a relative and

indicative basis only.

Managed Mineral Reserve sensitivity

30

25

20

15

10

5

0-10% -5% (265,000)

Base+5% +10% +25%

Gold price (ZAR/kg)

Gol

d (M

oz)

18.319.3

20.2 21.222.2

25.2

KDC-East shaft


36 years’ experience in the mining industry and is responsible

for the Sampling and Evaluation functions for KDC-East.

M Greenhalgh: Chief Evaluator (KDC-West operation) GDE Geostatistics, Mining Engineering and Certificate in

Mineral Resource Management. Registered with SAIMM,

Reg. No. 704826, Mr Greenhalgh has over 22 years experience

in the mining industry and is responsible for sampling and

evaluation functions at KDC-West.

W de Klerk: Chief Surveyor (KDC-West operation)Mine Surveyor’s Certificate of Competence and GDE. Registered

with PLATO Reg. No. MS70092, Mr De Klerk has over 28 years

experience in the mining industry and is responsible for Survey,

Reporting and Historical Modifying Factors for KDC-West.

JH Engelbrecht: Chief Surveyor (KDC-East operation)Chief Surveyor, NHD (Mineral Resource Management), National

Diploma in Mine Surveying, Mine Surveyor’s Certificate of

Competency, PLATO (Registration number MS 0105).

Mr Engelbrecht has 26 years’ experience in the mining industry

(24 years at KDC) and is responsible for the mine survey, reporting

and historical modifying factors for KDC-East.

S Wild: Chief Mine Planner (KDC-West operation)NHD Mineral Resource Management and GDE in Mining

Engineering. Mr Wild has over 14 years’ experience in the mining

industry and is responsible for the Mine Planning and Scheduling

for KDC-West. Registered with PLATO Reg. No. MET 0080.

W Swartz: Chief Mine Planner (KDC-East operation)NHD Mine Survey. Mr Swartz has over 20 years’ experience in the

mining industry and is responsible for Mine Planning

and Scheduling for KDC-East.

KEY TECHNICAL STAFF

Post Incumbent Qualifications Years Key responsibilitiesVice-President and Head of

Operations

JJ Barnard NHD Metalliferous Mining and Mine

Manager’s Certificate

26 Overall strategic direction, leadership and

management

Senior Manager operations

KDC BU 1

R Chaplin BSc Mining Eng (Hons) Mine Manager’s

Certificate

20 Full operational management


KDC BU 2

J Horn Mine Manager’s Certificate, Mine

Overseer’s Certificate, NHD Metal

Mining



KDC BU 3

K De Lange NHD, M Eng

Mine Manager’s Certificate



KDC BU 4

M Roebert B-Tech Metalliferous Mining, Mine

Managers Certificate of Competency,

ECSA Prof. Cert. Eng. Reg. No.

200690091



KDC BU 5

K Stead NHD Metalliferous Mining. EDP, Mine

Managers Certificate of Competency,

ECSA registered


Mineral Resources Manager

KDC (Acting)

Presley Reddi B Tech (MRM), GDE (Mining

Engineering), NHD & Mine Surveyor’s

Certificate of Competency

25 Mine Planning, Mineral Resources and

Mineral Reserves and compilation of CPR

Senior Manager Financial

KDC

H Engelbrecht Nat Diploma in Cost Accounting 29 Financial Reporting, compliance

Metallurgy Manager

KDC

D Taunyane NHD Extraction Metallurgy and MAP 27 Metallurgical management

Human Resource Manager

KDC

M Lancaster B Proc (Hons) and LLB 26 Human resources management

Engineering Manager

KDC

J J Botha GCC (Mine and works electrical and

Mech Eng) ECSA Prof Cert Eng

Reg No. 200090007

30 Engineering, logistics, infrastructure and

management

COMPETENT PERSONSS. Reddi: Manager Mine Planning and Resource Management (KDC-East operation)GDE (Mining Engineering), B.Tech (Mineral Resource

Management), Mine Surveyor’s Certificate of Competency,

Registered with PLATO as Professional Mine Surveyor

(Registration number PMS 0193), Fellow of the Institute of Mine

Surveyors of S.A. Mr Reddi has 26 years’ experience in the mining

industry (eight years at KDC-East) and is responsible for the overall

correctness, standard and compliance of the KDC-East

declaration.

JA du Plessis: Manager: Mine Planning and Resource Management (KDC-West operation)MSc (Mining Eng), GDE, National Higher Diploma Mine Surveying

and Mine Surveyors’ Certificate of Competency. Registered with

PLATO as a Professional Mine Surveyor (Registration number

PMS 0145), Fellow of the Institute of Mine Surveyors. Mr du

Plessis has over 31 years’ experience in the mining industry

(three years at KDC-West) and is responsible for the overall

correctness, standard and compliance of the KDC-West

declaration.

J van Eeden: Chief Geologist (KDC-West operation)MSc (Geology). Mr van Eeden has over 27 years’ experience

in the mining industry and is responsible for Geology and

Exploration for KDC-West.

K Sibeko: Chief Geologist (KDC-East operation)BSc (Hons) (Geology). Mr Sibeko has over 17 years’ experience

in the mining industry and is responsible for Geology and

Exploration for KDC-East.

C Dewey: Chief Evaluator (KDC-East operation)MSc Mining Engineering, GDE, ND Mine Survey and Mine

Surveyor’s Certificate of Competence. Mr Dewey has over

NOTES

BASTION GRAPHICS

DISCLAIMERForward-looking statementCertain statements in this document constitute “forward-looking statements” within the meaning of section 27A of the US Securities Act of 1933 and section 21E of the US Securities Exchange Act of 1934.

Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold or copper; hazards associated with underground and surface gold mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations; new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety reasons; and the impact of the Aids crisis in South Africa. These forward-looking statements speak only as of the date of this document. The company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.

Note: For abbreviations refer to page 24 and for glossary of terms refer to IBC – “Mineral Resource and Mineral Reserve Overview 2010”.

Incre

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know

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confid

ence

Consideration of mining, metallurgical, economic, marketing, legal,

environmental, social and governmental factors (the ‘modifying factors’)

MINERAL RESOURCES

INFERRED

INDICATED

MEASURED PROVED

PROBABLE

MINERAL RESERVES

EXPLORATIONRESULTS

Reported as in situ

mineralisation estimates

Reported as mineable

production estimates

96.4 Mt @ 6.5 g/t

20.2 Moz

19.0 Mt @ 8.4 g/t

5.1 Moz

77.4 Mt @ 6.1 g/t

15.1 Moz

202.7 Mt @ 11.0 g/t

71.9 Moz

141.6 Mt @ 9.4 g/t

42.7 Moz40.4 Mt @ 15.2 g/t

19.7 Moz

20.7 Mt @ 14.3 g/t9.5 Moz

KDC Life of Mine Mineral Resource classification

KDC Mineral Resource and Mineral Reserve Classification

REFERENCE

Mine Boundary

Shafts

Mined out areas

Carbon leader subcrop

VCR subcrop

Pillars

KDC-West: CL only

KDC-East: VCR only

Measured Mineral Resources

Indicated Mineral Resources

Inferred Mineral Resources

7. kdc · this technical statement is a summary of the detailed internally sourced documents...

Documents