PERU - GOLD FIELDS LIMITED of Johannesburg, South African, has environmental approval and will proceed with the development of its Cerro Corona project about 35 km north of NEWMONT's Yanacocha mine. The project involves the development of a 91-million-tonne gold-copper porphyry deposit at a capital cost of US$277 million. The project has reserves (non-NI-43-101-compliant) of 2.9 million oz of gold and 480,000 tonnes of copper, or approximately 5.4 million oz of gold equivalent.
Cerro Corona is expected to produce approximately 2.3 million oz of gold and 412,000 tons of copper over its 15-year life, averaging some 300,000 oz/year of gold equivalent. However, production in the initial years of the project will be closer to 400,000 oz/year. Life-of-mine total cash costs, on a gold equivalent basis, are estimated at US$250/oz. Construction will begin in February 2006.
"In Cerro Corona we will have a Gold Fields franchise asset at one of the best gold mining addresses in South America, a significant foothold from which we intend to grow in the region," said CEO Ian Cockerill.
Gold Fields acquired an 80.7% economic interest in the Cerro Corona project when it bought up 92% of the voting shares of Sociedad Minera La Cima SA, which owns the deposit. More information about the project is posted at www.GoldFields.co.za
In other news, Gold Fields and BOLIVAR GOLD of Toronto have agreed to a US$330-million merger that will give Gold Fields control of Bolivar's 95%-owned Choco 10 mine in Venezuela.
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