4.7 Billion Rand Investment In South Africa
Driefontein 9 Sub-vertical Shaft Depth Extensionand
Kloof Extension Area Decline Shaft System
7 September 2006
2
Forward Looking Statements
Certain statements in this presentation 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; decreases in the market price of gold; hazards associated with underground and surface gold mining; labour disruptions; changes in laws and government regulations, particularly environmental regulations and mineral rights legislation; changes in exchange rates; currency devaluations; inflation and other macro-economic factors; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of this document. Gold Fields 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.
Kloof Gold MineKEA Decline Shaft System
Brendan Walker
Head of South African Operations
7 September 2006
4
Kloof - KEA ProjectIntroduction
KEA Decline Shaft
• R1,4 billion capital investment
• Targeting 2 moz gold contained within 4.5 moz resource
• Mining extended from 43 - 48 level
• Average mining depth 3,827m below datum
Converting quality resource ounces
5
Kloof - KEA ProjectEnhanced gold profile
Adding incremental ounces to Kloof’s gold profile
Kloof life of mine including KEA - gold produced
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Go
ld p
rod
uce
d (
kg)
Kloof Current KEA
Years
6
Mined Areas
VCR
MR
Libanon Reef
Kloof Reef
Mined Areas
VCR on upthrown
side of West Rand Fault
Kloof - KEA ProjectLocality
Targeting VCR down dip of 3 & 4 Shaft
VCRVCR
MRMR
Libanon ReefLibanon Reef
Kloof ReefKloof Reef
KEA
000’ m2 975
Mt 5,2
Head grade g/t 12.1
Moz 2.0
7
KEA4
KEA5
KEA2
KEA3
N
0 500 1000
metres
45
45
48 48
43
4#
KEA1
Kloof - KEA ProjectGeology models & borehole data
Targeting Sandy 1 facies
Facies type
Sandy 2
Sandy 1
Slope
Milky Cobble
Apple Green
8
43 level (3.6km)
3 SV #
Chairlift
Wide Raise
Decline
RAW
44 level
45 level (4.3km)
46 level
47 level
48 level
4 SV #
43 level (4.1km)
42 level
Kloof - KEA ProjectDecline design
First reef intersection due mid C2009
9
Milestone Completion
Dates
Sink and develop to 44 level reef intersection End F2009
Sink and develop to 45 level reef intersection Mid F2011
Sink and develop to 46 level reef intersection End F2012
Sink and develop to 47 level reef intersection Mid F2014
Sink and develop to 48 level reef intersection Mid F2016
TOTAL CAPITAL REQUIRED (Rm) 1,375
Kloof - KEA ProjectCapital estimate (July 2006)
Capital expenditure US$95 per reserve ounce
10
Financials Units
Project evaluation gold price ZAR/kg 100,000 120,000
NPV (at 6% real discount rate) ZARm 297 675
Internal rate of return % 15 21
Breakeven gold price (at 0% discount rate) ZARm 83,137 83,137
Breakeven gold price (at 6% discount rate) ZARm 89,918 89,918
Working costs ZAR/ton 864 864
Project cash cost R/Kg 58,244 58,244
Leveraged to upswing in gold price
Kloof - KEA ProjectFinancials
11
• Ore body - Potential upside in Sandy 1 Facies
- Decline extension to 52 level (2 moz additional resource)
• Design- Earlier project delivery (1yr = 20% NPV improvement)
- Synergies with 3 and 4 shafts
• Costs- Implement new technology
- Increase face time – Productivity initiatives
Kloof - KEA ProjectOpportunities
Further upside potential
12
• Adds 2 moz incremental reserves
• Enhanced life of mine profile
• Optimise existing infrastructure
• Enhanced NPV
Technically and financially robust
Kloof - KEA ProjectConclusion
Driefontein Gold Mine9 Sub-vertical Shaft Depth Extension
Brendan Walker
Head of South African Operations
7 September 2006
14
9 Shaft ProjectIntroduction
9 Sub Vertical Shaft Depth Extension
• R3,3 billion capital investment
• Targeting 8.8 moz reserve contained within 13.9 moz resource
• Life of mine extended by 13 years
• 9SV shaft extended below 43 level
• Final depth of 4,121m below datum
Creating the deepest mine in the world
15
9 Shaft ProjectValue addition to Driefontein
0
5000
10000
15000
20000
25000
30000
35000
40000
2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035
Go
ld p
rod
uce
d (
kg)
Driefontein Life of mine 9# Shaft
U/G production maintained at 30 tons p.a until F2020
Years
16
1T Area
5# Area
1.1km
2.2km
1.5km
9# Area
9 Shaft Project Locality
Mining between 3,400 & 4,100 meters below datum at global average grade ~ 2,000 cmg/t
Depth Extension
000’ m2 5,337
Mt 33.5
Head grade g/t
8.2
Moz 8.8
17
9 Shaft ProjectGeology: Schematic Diagram of 9 Shaft
Ventersdorp Supergroup
Lava
Lava
Pe
gg
y’s
Dy
ke
38 Level
9 Sub #22 Level
Carbon Leader Reef
Middelvlei Reef
Ventersdorp Contact Reef
Dykes
Master Bedding Plane Fault
Existing Shaft
Proposed Shaft
Existing Development
North South
40 Level
43 Level
Sp
ott
ed
Dic
k D
yk
e
50 Level
55 Level
56 Level
40.4m
57 Level
54 Level
53 Level52 Level51 Level
Accessing carbon leader below current infrastructure
18
Milestone Completion
Dates
Preparation for sink Mid F2008
Sink, line and station development Mid F2012
Shaft equipping Mid F2013
First reef intersection Mid F2014
TOTAL CAPITAL REQUIRED (Rm) 3,251
9 Shaft ProjectCapital Estimates (July 2006)
Capital expenditure $51per reserve ounce
19
Financials Units
Project evaluation gold price ZAR/kg 100,000 120,000
NPV (6% real discount rate) ZARm 277 1414
Internal rate of return % 8 13
Breakeven gold price (at 0% discount rate) ZAR/kg 85,360 85,360
Breakeven gold price (at 6% discount rate) ZAR/kg 96,985 96,985
Average working costs ZAR/ton 543 543
Project cash cost R/kg 65,977 65,977
9 Shaft ProjectFinancial Valuation
Leveraged to upswing in gold price
20
9 Shaft ProjectConclusion
• Brings to account 8.8m ounces of reserve contained within 13.9moz resource
• Enhances Driefontein NPV
• Extends the life of mine by 13 years
• Optimises existing infrastructure
Technically and financially sound
4.7 Billion Rand Investment In South Africa
Driefontein 9 Sub-vertical Shaft Depth Extensionand
Kloof Extension Area Decline Shaft System
7 September 2006