Joint Media Release Update on Chucapaca Project in Southern Peru

JOHANNESBURG & LIMA, Peru--(BUSINESS WIRE)-- Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) and Compañia de Minas Buenaventura S.A.A. (Buenaventura) (NYSE, BVN; Lima Stock Exchange: BUE.LM) today announced an update on the Chucapaca exploration project in the southern Peruvian region of Moquegua. The project is a joint venture by Gold Fields (51%) and Buenaventura (49%) and operated by Gold Fields.

The partners have studied the viability of a large open-pit operation capable of sustaining a 30,000 tonnes per day throughput. A first draft of the feasibility study has been completed and as a result of relatively high capital and operating costs this option would not have delivered acceptable project returns.


Consequently, further study work will have to be performed by the joint venture focusing on value engineering the project to achieve the expected returns. Future work will mainly include the following:

  • Analysing different options for mine development, including an underground or a combined open-pit underground operation, and alternative throughput levels;
  • Re-establishing exploration to add resource flexibility, once the required permits are granted; and,
  • Optimising capital and project operating costs.

The partners reiterate their commitment to unlocking the potential of the Chucapaca project, which will need the support of all stakeholders, particularly neighbouring communities. Gold Fields has built a close relationship with them and expects to continue working together through this phase of the project.

Notes to editors

About Gold Fields

Gold Fields is one of the world's largest unhedged producers of gold with attributable annualised production of 3.6 million gold equivalent ounces from eight operating mines in Australia, Ghana, Peru and South Africa. Gold Fields also has an extensive and diverse global growth pipeline with four major projects in resource development and feasibility, with construction decisions expected in the next 18 to 24 months. Gold Fields has total attributable gold equivalent Mineral Reserves of 76.7 million ounces and Mineral Resources of 225.4 million ounces. Gold Fields is listed on the JSE Limited (primary listing), the New York Stock Exchange (NYSE), NASDAQ Dubai Limited, Euronext in Brussels (NYX) and the Swiss Exchange (SWX).

About Buenaventura

Compañía de Minas Buenaventura S.A.A. is Peru's largest, publicly traded, Precious Metals Company and a major holder of mining rights in Peru. The Company is engaged in the mining, processing, development and exploration of gold and silver and other metals via wholly owned mines as well as through its participation in joint exploration projects. Buenaventura currently operates several mines in Peru (Orcopampa*, Poracota*, Uchucchacua*, Antapite*, Julcani*, Recuperada*, El Brocal, La Zanja, Coimolache and CEDIMIN*). The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation), an important precious metal producer; 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer, and 49% of Canteras del Hallazgo S.A, owner the Chucapaca project.



Enquiries: Gold Fields
Investor Relations
Willie Jacobsz, +27 11 562-9775
Mobile: +27 (0) 82 971 9238
Willie.Jacobsz@goldfields.co.za
or
Media
Sven Lunsche, +27 11 562-9763
Mobile: +27 (0) 83 260 9279
Sven.Lunsche@goldfields.co.za
or
Diego Ortega
Mobile: +51 (0) 9963 70508
Diego.Ortega@gfexpl.com
or
Enquiries: Buenaventura
Carlos Galvez, +51 1 419-2540
cegalvez@buenaventura.com.pe
or
Daniel Dominguez, +51 1 419-2536
ddominguez@buenaventura.com.pe

KEYWORDS:   South America  Peru  South Africa  Africa

INDUSTRY KEYWORDS:

The article Joint Media Release Update on Chucapaca Project in Southern Peru originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Managing your Portfolio

Keeping your portfolio and financial life fit!

View Course »

What Is Your Risk Tolerance?

Answer the question "What type of investor am I?".

View Course »

Add a Comment

*0 / 3000 Character Maximum