Bringing new life to the Damang mine through the Super Pit project

The Damang Super Pit project in Ghana is part of Gold Fields Greater Damang strategy, which is being implemented in two phases:

• ‘Phase 1’ (i.e. the Damang Super Pit) aims to expand the current pit through both the aggressive exploitation of ore at-depth and through the combination of the existing Huni, Juno and Damang
  deposits into a ‘Super Pit’. Gold Fields conceptual model indicates that the Super Pit contains between 50 and 80 million tonnes of ore at grades of 1.6 to 1.8 g/t
  
  
• ‘Phase 2’ focuses on the significant expansion of Damang’s Mineral Resources and Mineral Reserves beyond the existing pit

The Damang Super Pit project aims to transform what was previously a relatively modest operation into a longterm contributor to Group production by significantly expanding production at the mine. Given the mine’s established infrastructure and wealth of existing geological data, the project represents a high-potential growth opportunity for Gold Fields. The project is targeting a 4 million ounce resource to support a potential doubling of production. In addition, it could potentially increase Damang’s life of mine from 2024 to 2028.

The Super Pit project will require the development of enhanced mine infrastructure to cope with the increased production capability of the mine. To this end, Gold Fields is planning the construction of a new processing plant, as well as an upgrade of the existing plant. Once both plants are in operation (scheduled for early 2015), they will double Damang’s processing capacity to about 10 million tonnes. In addition, the new plant is targeting a recovery rate of about 95%, compared to a recovery rate of about 92% delivered by the existing plant. This – along with the construction of additional tailings storage capacity – will ensure that the Super Pit project is able to deliver on its exciting potential.

By significantly extending the life of the mine, the Damang Super Pit project will also deliver key benefits to local stakeholders. These include:

• The creation of new employment opportunities – as well as the maintenance of existing positions.
  
  
• The long-term maintenance of Damang’s contribution to local socio-economic development – and the economic sustainability of Damang village. This includes key health, water and sanitation projects funded through the Gold Fields Ghana Foundation – as well as the indirect economic contributions of mine employees.

The detailed operational and financial modelling for the Super Pit project will take cognisance of the final format of the new Ghanaian tax regime for the mining industry, which was tabled by the government in December 2011.