mineral resources and mineral reserves report 2015 · and uranium mineral reserves inclusive of...
TRANSCRIPT
SIBANYE GOLD M
INERAL RESOU
RCES AND M
INERAL RESERVES REPORT 2015
MINERAL RESOURCES AND MINERAL RESERVES REPORT 2015
Sibanye Gold Limited’s guiding principles are to ensure integrity and responsibility
in reporting its Mineral Resources and Mineral Reserves, to be compliant with public and internal
regulatory codes and to inform all stakeholders on the status of the Group’s fundamental asset base.
Sibanye further aims to report on information, that is rated important for disclosure, to a level of detail
that ensures competency, transparency and materiality.
INTENT
Neal Froneman commented: 'The increase in Reserves reflects the continious positive impact of prior operational restructuring, the increased technical focus at the operations, as well as R3.6 billion capital investment into organic projects’
Beatrix 3 Shaft
SECTION 1
SECTION 2
GROUP OVERVIEW
OPERATIONS AND PROJECTS
Introduction 2
Highlights 3
Location 4
Headline numbers 5
Corporate governance 6Group consolidated Mineral
Resource and Mineral Reserve Statement 10Group consolidated Mineral Resources and Mineral
Reserves depletion and growth 15
Introduction 20
OperationsBeatrix 24
Cooke 32
Driefontein 42
Kloof 50
ProjectsBurnstone Project 59
West Rand Tailings Retreatment Project 64
Southern Orange Free State Projects 67
SECTION 3
SUPPLEMENTARYINFORMATION75 Professional organisations
75 SAMREC Code definitions
76 Glossary of terms
78 Conversion table
79 Abbreviations
80 Disclaimer
CONTENTS
SECTION 4
SHAREHOLDERPLANSBeatrix
Cooke
Driefontein
Kloof
Burnstone
Sibanye is a forerunner in South African gold mining, with a portfolio of four operating mines, a surface mining operation and organic growth projects
Sibanye Gold Mineral Resources and Mineral Reserves 2015 11
CONTENTSNEXTBACKPRINTHOME
INTRODUCTION
Sibanye Gold Limited (‘Sibanye Gold’, ‘Sibanye’, or ‘the Group’) is an unhedged producer of gold, with an attributable, annualised production of ~1.5Moz of gold from four underground mining operations and a surface mining operation, all located in South Africa. The Group is additionally concentrating on growing its planned uranium production and ramping the Burnstone Project to full production.
The geology and evaluation models of the Group’s operational assets have been updated to reflect the latest available data, and have proved to be stable with only minor variances in the Mineral Resources and Mineral Reserves year-on-year. Sibanye Mineral Resource and Mineral Reserve protocols have been employed through all operations and project portfolios. Operational models are coupled with an integrated and holistic mine design and schedule plan that is based on actual and expected performance levels.
The Mineral Resources and Mineral Reserves have been prepared in compliance with and to the extent required by the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code – 2007 edition and amended July 2009), South African Code for the Reporting of Mineral Asset Valuation (SAMVAL Code – 2008 edition and amended July 2009).
The mineral asset valuations supporting the Mineral Reserve estimates have been prepared in compliance with and to the extent required by the 2008 SAMVAL Code, published under the joint auspices of the South African Institute of Mining and Metallurgy (SAIMM) and the Geological Society of South Africa (GSSA).
At 31 December 2015, Sibanye had total managed Mineral Resources, inclusive of projects, of 98.8Moz of gold and 229.9Mlb of uranium. Managed Mineral Resources (excluding projects) were 73.5Moz gold and 95.4Mlb uranium net of depletion. The corresponding total managed gold and uranium Mineral Reserves inclusive of projects were 31.0Moz net of 1.6Moz depletion, and 113.8Mlb, net of 0.3Mlb depletion respectively.
IMPORTANT NOTICES• The United States Securities and
Exchange Commission (SEC) permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce from. Certain terms are used in this report, such as ‘Mineral Resources’, that the SEC guidelines strictly prohibit companies from including in filings. United States investors are urged to consider closely the disclosure in the Form 20-F submission.
• Mineral Resources and Mineral Reserves reported are managed by Sibanye unless otherwise stated, and Mineral Resources are inclusive of Mineral Reserves.
• Rounding-off of figures in this report may result in minor computational discrepancies. Where this occurs it is not deemed significant.
• The 31 December 2015 Mineral Resources and Mineral Reserves are net of depletion.
• Above infrastructure (AI) is that part of the Mineral Resources and/or Mineral Reserves, which is above the lowest mining level and can be accessed via the current mine infrastructure (shafts and underground haulages).
• Below infrastructure (BI) is that part of the Mineral Resources and/or Mineral Reserves which is below the lowest mining level and that can only be accessed following approved capital expenditure.
Driefontein 10 Shaft
Sibanye Gold Mineral Resources and Mineral Reserves 2015 22
SECTION 1 GROUP OVERVIEW
HIGHLIGHTS98.8Moz 31.0Moz
Gold Mineral Resources Gold Mineral Reserves
229.9Mlb 113.8MlbUranium Mineral Resources Uranium Mineral Reserves
TOTAL GOLD MINERAL RESERVES INCREASED BY
9%
TOTAL URANIUM MINERAL RESERVES INCREASED BY
11%• The mature Sibanye operations planned production levels are
based on current and expected performance levels, and are reliant on the existing stable geology and estimation models.
• Year-on-year the post production depleted Mineral Resources of the underground operations Kloof, Driefontein, Beatrix and Cooke reduced to 73.103Moz (compared to 78.124Moz as at 31 December 2014).
• The total gold Mineral Reserves at the operations increased by 4% to 20.591Moz compared to 19.878Moz as at 31 December 2014.
• Development has commenced at Burnstone subsequent to the finalisation of the feasibility study (FS) in 2015.
• The Kloof drop-down project has proceeded into development phase.
• The total uranium Mineral Resources at the operations increased year-on-year to 95.391Mlb (93.353Mlb as at 31 December 2014).
• The total Uranium Mineral Reserves at the operations increased considerably from 3.827Mlb (as at December 2014) to 14.727Mlb (as at 31 December 2015).
• Gold Mineral Reserves have increased by 2.294Moz with the inclusion of Beisa and Burnstone Projects.
• Uranium Mineral Reserves have increased by 11.654Mlb with the inclusion of the Beisa Project at Beatrix.
• Ongoing assessment of secondary reefs and white areas at Kloof and Driefontein, has resulted in the inclusion of 1.435Moz gold Mineral Reserves.
Mineralised conglomerate
Sibanye Gold Mineral Resources and Mineral Reserves 2015 33
SECTION 1 GROUP OVERVIEWNEXTBACKPRINTHOME
LOCATION OF GOLD OPERATIONS AND PROJECTS
Competency and integrity are key in the Sibanye Mineral Resource and Mineral Reserve declaration strategy. The aim is sustained delivery and organic growth within existing operations and new projects.The Mineral Resources and Mineral Reserves, status and changes at each operation and project, are addressed within this supplement to the Sibanye Gold Integrated Annual Report 2015, to a level of detail that ensures competency, transparency and materiality.
GROUP OVERVIEW
Sibanye Witwatersrand BasinOperationsProjects
Sibanye Witwatersrand BasinOperationsProjects
Eastern Cape
Lesotho
Free State
North West
Randfontein
CarletonvilleWestonaria
PotchefstroomVredefort
Welkom
Virginia
Theunissen
Bloemfontein
Limpopo
Western Cape
Northern Cape
Cape Town
Johannesburg
Balfour
0 100 200km
Eastern Cape
KwaZulu-Natal
Lesotho
Mpumalanga
Free State
North WestRandfontein
WestonariaCarletonville
PotchefstroomParys
Welkom Virginia
Theunissen
Bloemfontein
Durban
Limpopo
Western Cape
Northern Cape
Cape Town
JohannesburgBalfour
0 100 200km
B
A
C
Legend
Sibanye
Witwatersrand Basin
Vredefort Dome
A WEST WITSKloof OperationCooke OperationDriefontein OperationWest Rand Tailings Retreatment Project
B SOUTH RANDBurnstone Project
C FREE STATEBeatrix OperationBeisa North ProjectBeisa South ProjectSOFS Projects
Driefontein 1 Plant
T N
0 100 200km
44
SECTION 1 GROUP OVERVIEW
Sibanye Gold Mineral Resources and Mineral Reserves 2015
Uranium Mineral Resources (229.9Mlb)
Beatrix 27.0Mlb
WRTRP 99.1Mlb
Cooke 68.4Mlb
Projects 35.4Mlb
12%
30%
43%
15%
Uranium Mineral Reserves (113.8Mlb)
3%10%
87%
Beatrix 11.7Mlb
WRTRP 99.1Mlb
Cooke 3.1Mlb
Gold Mineral Reserves (31.0Moz)
14%
5%
26%
21%
21%
13%
Beatrix 4.3Moz
Driefontein 8.2Moz
WRTRP 6.5Moz
Cooke 1.5Moz
Kloof 6.5Moz
Projects 3.9Moz
Gold Mineral Resources (98.8Moz)
Beatrix 9.6Moz
Driefontein 19.8Moz
WRTRP 6.5Moz
Cooke 15.9Moz
Kloof 28.2Moz
Projects 18.8Moz
10%
20%
16%
28%
7%
19%
MAN
AGED
URA
NIU
M M
INER
AL R
ESOU
RCES
AN
D M
INER
AL R
ESER
VES
SPLI
T PE
R OP
ERAT
ION
AN
D PR
OJEC
T AS
AT
31 D
ECEM
BER
2015
MAN
AGED
GOL
D M
INER
AL R
ESOU
RCES
AN
D M
INER
AL R
ESER
VES
SPLI
T
PER
OPER
ATIO
N A
ND
PROJ
ECT
AS A
T 31
DEC
EMBE
R 20
15
HEADLINE NUMBERS
12 MONTHS PRODUCTION DEPLETION
1.984Moz 0.187MlbGold Mineral Resources Uranium Mineral Resources
1.577Moz 0.291MlbGold Mineral Reserves Uranium Mineral Reserves
31 DECEMBER 2015*
98.790Moz 229.852MlbGold Mineral Resources Uranium Mineral Resources
30.988Moz 113.814MlbGold Mineral Reserves Uranium Mineral Reserves
* Refer to tables in following sub-sections for detailed Mineral Resource and Mineral Reserve classificationsNotes:• The 31 December 2015 Mineral Resources and Mineral Reserves are net of production depletion• Mineral Reserve gold price of R430,000/kg and long-term contract Mineral Reserve uranium price of
R1,140/kg• Mineral Resources are inclusive of Mineral Reserves• Mineral Resources and Mineral Reserves are 100% attributable and managed by Sibanye
31 DECEMBER 2014
103.944Moz 227.379MlbGold Mineral Resources Uranium Mineral Resources
28.425Moz 102.480MlbGold Mineral Reserves Uranium Mineral Reserves
BEATRIX COOKE DRIEFONTEIN KLOOF
Capex Capex Capex Capex
R597m R337m R994m R1,130m
Operating profit Operating profit Operating profit Operating profit
R1,425m R(4)m R3,002m R1,914m
Gold produced Gold produced Gold produced Gold produced
10,105kg 6,252kg 17,350kg 14,068kg
Main development Main development Main development Main development
21,599m 12,923m 15,704m 17,899m
Area mined Area mined Area mined Area mined
416,684m2 204,835m2 384,109m2 307,750m2
Yield Yield Yield Yield
2.34g/t 1.08g/t 3.01g/t 3.54g/t
Sibanye Gold Mineral Resources and Mineral Reserves 2015 55
SECTION 1 GROUP OVERVIEWNEXTBACKPRINTHOME
CORPORATE GOVERNANCE
The Mineral Resources and Mineral Reserves are supported by appropriate Mineral Resource management processes and protocols that ensure adequate corporate governance in respect of the intent of the Sarbanes-Oxley Act of 2002 (SOX)
REPORTING CODESibanye reports its Mineral Resources and Mineral Reserves in accordance with the SAMREC Code, the SAMVAL Code and other relevant international codes such as the SEC Industry Guide 7 for the reporting of Mineral Reserves. The assessment and reporting criteria, as outlined in the SAMREC Code, have been used in the preparation of internal Competent Persons reports for the Mineral Resources and Mineral Reserves for each of the operations and projects from which the numbers stated in this supplement are drawn.
The process followed in producing the declaration is in alignment with the guiding principles of SOX, and covers the entire Group’s Mineral Resource Management (MRM) function. SOX audits run in parallel with external Mineral Resource and Mineral Reserve audits and strengthen the internal control process, leading to world-class corporate governance practices.
The Sibanye operations operate under new order mining rights in terms of the Mineral and Petroleum Resources Development of Act, 2002 (Act No 28 of 2002) (MPRDA). All required operating permits have been obtained and are in good standing.
The gold Mineral Reserve price used for estimation is in accordance with the SEC guidelines and approximate the three-year trailing average price, as calculated on a monthly basis, based on the London afternoon gold price fix. The Mineral Resource gold price used has a premium of ~10% over the R/kg Mineral Reserve gold price, representing upside potential leverage to the spot price of gold. The uranium Mineral Reserve price used for estimation is based on the long-term outlook price for uranium and is ~3% higher, in South African Rand terms, than the price used for the 31 December 2014 declaration.
Currency prices used in this declaration are as follows:
31 Dec 2015 31 Dec 2014
Commodity Unit Resource Reserve Resource Reserve
Gold R/kg 470,000 430,000 460,000 420,000
$/oz 1,277 1,170 1,590 1,450
Uranium R/kg* 1,140 1,140 1,110 1,110
$/lb 45** 45 56 56
* Sibanye used a ‘long-term’ Mineral Reserve uranium price for the declaration estimate (three-year average trailing R/kg)
The Group has proven expertise in exploration, resource modelling, mine planning and reconciliation methodologies for shallow and deep to ultra-deep underground mining operations. Sibanye constantly reviews and considers the application of international leading practices in Mineral Resource management at all its operations and projects.
ESTIMATION PRINCIPLES • Mineral Resource tonnages and grades are estimated in situ over an estimated mining
width, and include mineralisation below the selected cut-off grade to ensure that the Mineral Resources comprise practical mining blocks of adequate size and continuity. Measured and Indicated Mineral Resources are reported inclusive of those Mineral Resources modified to produce Mineral Reserves.
• Mineral Reserves are that portion of the Mineral Resources which technical and economic studies have demonstrated can justify extraction at the time of disclosure (to a minimum pre-feasibility study (PFS) level). Estimates of tonnages and grades quoted as Mineral Reserves include allowances for all mining dilution, all other mining factors (modifying factors) and consequently are reported as net tons and grades delivered to the mill.
• Estimation and modelling processes protocol includes the following:
• The Mineral Resource is divided into domains based on the geological models. The domains may be further sub-divided so as to ensure homogeneity, and are used as the basis for the geostatistical estimation. Detailed exploratory data analyses, including sample verification,
ENVIRONMENTAL AND SOCIAL CONSIDERATIONSAs part of the Sibanye Integrated, Compliance, Governance and Risk (ICGR) framework, the company has initiated a process for improved regulatory risk profile and action plans to address any gaps in the identification of risk, level of adequacy and effectiveness of control measures. This has provided the Environmental and Corporate Affairs Departments with a much clearer picture of all the legal requirements, its risk exposure and what mitigatory actions (compliance risk management plans) need to be put in place to improve and ensure compliance.
The following key environmental legislation and its associated subsequent amendments was identified for every operation and project (where applicable), and will be further subjected to the compliance methodology:
• South African Constitution
• Mineral and Petroleum Resources Development Act, 2002 (Act No 28 of 2002) (MPRDA)
• National Environmental Management Act, 1998 (Act No 107 of 1998) (NEMA)
• National Environmental Management: Biodiversity Act, 2004 (Act No 10 of 2004)
• National Environmental Management Waste Act, 2008 (Act No 59 of 2008) (Waste Act)
• National Nuclear Regulator Act, 1999 (Act No 47 of 1999) (NNR)
• National Environmental Management: Air Quality Act, 2004 (Act No 39 of 2004) (Air Quality Act)
• National Water Act, 1998 (Act No 36 of 1998)
• Water Services Act, 1997 (Act No 108 of 1997)
• Mineral and Petroleum Resources Royalty Act, 2008 (Act No 28 of 2008)
• Hazardous Substances Act, 1973 (Act No 15 of 1973)
• National Heritage Resources Act, 1999 (Act No 25 of 1999)
• National Forests Act, 1998 (Act No 84 of 1998)
• National Road Traffic Act, 1996 (Act No 93 of 1996)
• Road Transportation Act, 1977 (Act No 74 of 1977)
• Conservation of Agricultural Resources Act, 1983 (Act No 43 of 1983)
• National Veld and Forest Fire Act, 1998 (Act No 101 of 1998)
Sibanye Gold Mineral Resources and Mineral Reserves 2015 66
SECTION 1 GROUP OVERVIEW
histogram and cumulative frequency plots for distributional analysis, additive constant estimates, outlier checks, trend analyses, and de-clustering are carried out on individual domains.
• The main interpolation methodology utilised is ordinary and simple Kriging of various block sizes including macro-Kriging. Detailed checks are carried out on the Kriged estimates by compiling Kriging efficiencies and Kriging slopes of regression on an individual Kriged block basis.
• Variography studies are carried out on point and regularised data. Relative and traditional variograms are used for Kriging purposes. The Resource block widths are projections of the stoping width (SW), and are estimated using a study of the historical channel width/stoping width (CW/SW) relationship derived from the stope sampling records.
• Historical statistics are used where unavoidable un-pay areas to be mined are included in the Mineral Resource. The historical percentage un-pay is then added to the portion of blocks above the pay limit, while ensuring there are sufficient Mineral Resources available.
• All operations have documented the guidelines and modifying factors that underpin the life of mine (LoM) plans, which are supported by mine designs and schedules.
• A detailed one-year operating and capital cost budget is produced and, where appropriate, extended for the LoM production schedule. The operational plan is prepared on a monthly basis, using zero-based costing. Of critical importance is the utilisation of historically achieved data to estimate planned productivity and operating cost.
• Only Measured and Indicated Mineral Resources have been included in any PFS or FS. No Inferred Mineral Resources have been included in any of the above-mentioned studies.
• Caution should be exercised when interpreting the grade tonnage curves presented. The ability to selectively mine the deposits may be precluded by the deposit geometry, mining method and the need for practical development of the orebody.
• Gold and uranium are reported separately, therefore no gold equivalents are stated to avoid potential anomalies because of year-on-year metal price differentials.
• Mineral Reserves are estimated using a total cost (excluding capital) pay limit/cut-off grade at a margin, historic cost levels and mining efficiencies at each operation. The conversion ratio from Mineral Resources to Mineral Reserves is further affected by the following key factors:
• Mining constraints applied to the extraction, based on the geometry of the geological structures as presently interpreted.
• Mining quality factors, such as Mine Call Factor (MCF) and dilution.
• Power and utility escalation has been factored into all financial models.
• All financial models are based on promulgated tax laws as at 31 December 2015.
• The Sibanye operations are entitled to mine all declared material located within their Mining Rights and all necessary statutory mining authorisations and permits are in place or have reasonable expectation of being granted. However, the duration taken for final approval may impact the production schedules.
• Uranium is not the commodity of primary interest and is only exploited in areas where the primary commodity (in this case gold) is of economic concern, hence the uranium Mineral Resources are a subset of the gold Mineral Resources and only included where the grades are sufficiently high to warrant the extraction thereof.
• All tabulated numbers represent Sibanye’s total managed Mineral Resources and Mineral Reserves unless otherwise stated and all references to tons are metric units.
Driefontein 7 Shaft bank entrance
Consideration of mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the ‘modifying’ factors)
Exploration Results
Mineral Resources
Inferred
Indicated
Measured
Probable
Proved
Mineral Reserves
Reported as mineableproduction estimates
Reported as in situ mineralisation estimates
Increasinglevel of
geoscientificknowledge
and confidence
RELATIONSHIP BETWEEN EXPLORATION RESULTS, MINERAL RESOURCES AND MINERAL RESERVES (SAMREC CODE)
Sibanye Gold Mineral Resources and Mineral Reserves 2015 77
SECTION 1 GROUP OVERVIEWNEXTBACKPRINTHOME
CODE OF PRACTICEDISCOVERY AND EXPLORATIONThe discovery of gold in quartz-pebble conglomerates on the farm Langlaagte near Johannesburg in March 1886 focused the world’s attention on a sequence of rocks that was to become the greatest source of gold on earth. Initial activities were confined to outcrops but prospectors quickly realised, through geological synthesis and technological innovation, the extension of these rocks under younger cover rocks. Diamond drilling was used as early as 1889 and together with geophysical methods, led to the discovery of the Carletonville Goldfields (West Wits Line) in the 1930s and the Welkom Goldfields in 1946. After the initial discoveries, extensive exploration, using a combination of surface exploration drilling and geophysical methods, led to the discovery of the Sibanye operations (a detailed history of each operation is captured on the back of the shareholders’ plan of each operation which are attached as fold-outs at the end of this document).
Exploration drilling during the discovery period of the Sibanye operations and projects was executed from surface, on irregular grids of 500m to 2,000m depending on the exploration strategy, depth of the mineralised horizons and geological uncertainty. Once in operation with underground access established, infill grade control drilling is conducted from access haulages and cross-cuts to provide a 30m to 100m grid depending on geological requirements, evaluation and safety.
In the interests of proactive geological understanding, Sibanye’s exploration strategy includes the following:
• Initial (discovery and secondary reefs) and infill (resource definition enhancement) exploration drilling (current and new projects)
• Timeous prospect development
• Reducing localised uncertainty inherent to the deposit at current operations
• Grade-control drilling on current operations
• Exploratory visits to previously mined areas to confirm structure and facies
A continuous Mineral Resource definition programme is in place at each operation and project in order to facilitate better planning and optimisation with appropriate lead time, and to ensure robust geological and evaluation models that will underpin the resource definition of the various reefs mined. The programme will confirm the orebody potential in all areas of operation, including secondary reefs and secondary uranium potential.
QUALITY ASSURANCE AND QUALITY CONTROLSibanye upholds rigorous Quality Assurance and Quality Control (QA/QC) procedures on all of its exploration drilling and sampling programmes (including underground chip sampling). It follows industry best practice in data acquisition, ensuring data reliability, and utilises analytical laboratories which are frequently reviewed, both internally and externally. Analytical QA/QC is maintained and enforced through the submission of blanks, certified reference material, duplicate samples, umpire laboratory checks and density measurements.
Laboratories currently used by Sibanye and their related South African National Accreditation System (SANAS) facility accreditation numbers are as follows:
• Sibanye Analytical Laboratory (Driefontein), Reg No. 2002/031431/07 (SANAS Facility Accreditation No. T0379)
• Performance Laboratory (Randfontein), Reg No. 1996/01447/07 (now part of SGS) (SANAS Facility Accreditation No. T0265)
• Performance Laboratory (Allanridge), Reg No. 1996/01447/07 (now part of SGS) (SANAS Facility Accreditation No. T0385)
• The process to achieve SANAS accreditation for the Beatrix Analytical Laboratory (Reg No. 2002/031431/07) will be completed in C2016
The QA/QC of borehole data is handled through the Sibanye Borehole Management System. This software is developed by Century Systems and Datamine and comprises ‘DH Logger’ for borehole log inputs, and the Fusion sequel (SQL) database. The underground gold assay values are kept in digital format in Sibanye Integrated Resource and Reserve Information System (IRRIS) under the MineRP Sampling System. The database’s integrity is maintained by the initial authorisation of all sampling data. Final submission of each sample into the IRRIS database is only completed following a series of checks and approvals in the Borehole Management System or the MineRP Sampling System.
CORPORATE GOVERNANCE CONTINUED
Ezulwini processing plant
Sibanye Gold Mineral Resources and Mineral Reserves 2015 88
SECTION 1 GROUP OVERVIEW
The long mining history and the quantity and quality of the data upon which the Mineral Resource and Mineral Reserve estimates are based, are sufficient to support the estimates as derived. The Borehole Management and IRRIS Systems provide an auditable trail from sampling through to the Mineral Resource and Mineral Reserve estimates.
MINERAL RESOURCE AND MINERAL RESERVE EVALUATIONThe Mineral Resource and Mineral Reserve evaluation is based on systematic and sustainable mineral reporting practices compliant with the SAMREC Code. Data from exploration drilling, underground mapping and prospect drilling is used to generate or update the geological models, which in turn are used as the basis of each declaration. At current operations, ongoing grid-based sampling of all development and stoping provides additional data which is incorporated into a detailed evaluation model.
Mineral Resource categories are based upon the quantity, distribution and quality of data available and confidence attached to the data, i.e. drilling, geological understanding, interpretation and mapping, sampling, analytical data and geostatistical relationships. Drilling, sampling and analytical QA/QC also plays a major part in the data confidence applied for the final classification.
Peer reviews, together with internal and external audits, ensure consistency and compliance with regulatory codes. Mineral Resources and Mineral Reserves are reported within each individual mining or prospecting right and are adjusted to show the separation between above (AI) and below (BI) current shaft infrastructure.
Sibanye Mineral Resources and Mineral Reserves are reviewed and audited on an ongoing basis by internal Competent Persons, with formal audits conducted as follows:
• Ongoing technical review of all the operations and projects
• Annual executive review of all operations and projects
In addition to the internal audits, the December 2015 statement was reviewed and audited by external auditors AMEC Foster Wheeler Plc (Mineral Resources) and by the Mineral Corporation Pty Ltd (Mineral Reserves), and was found to comply with the relevant codes. No material shortcomings were identified in any of the processes by which the Sibanye Mineral Resources and Mineral Reserves were compiled and evaluated.
The 31 December 2015 declaration reports on Mineral Resource and Mineral Reserve information that is rated important for disclosure and that reflects a level of detail required for competency, transparency and materiality in reporting.
COMPETENT PERSONS AND DECLARATION CONSENTThe Competent Persons designated in terms of SAMREC who take responsibility for the reporting of Mineral Resources and Mineral Reserves are the respective operation (per mining unit) and project based Mineral Resource Manager or Manager Geology. The Competent Persons have sufficient experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye. Competent Persons’ consent and confirmation signatures are presented in each individual Competent Person’s Report per operation and project, which can be viewed on the company’s website at www.sibanyegold.co.za. Operational and project based Competent Persons are acknowledged in the pertinent section concerned in this Mineral Resources and Mineral Reserves Supplement.
Corporate Governance on the overall compliance of the company’s figures and responsibility for the generation of a Group consolidated statement has been overseen by the Libanon Business Park Technical Services team listed below. This team, whose members consent to the disclosure of the C2015 Mineral Resource and Mineral Reserve Statement, are permanent employees of Sibanye, and function independently of the operating mines and projects.
Competent Person Title Qualifications Years
Gerhard Janse van Vuuren1 PMS0243 VP Mine Technical Services B Tech (Mineral Resource Management); GDE (Mining Engineering); MBA; MSCC
28
Johan van Eeden2 400043/09 Manager Geology MSc. (Geology) 32
Leon Tolmay3 704140 Manager Evaluation NHD (Mine Survey); GDE (Mining Engineering); MSCC 39
Steven Wild3 706556 Manager Mine Planning GDE (Mining Engineering); NHD MRM 20
Werner de Klerk1 PMS0233 Manager Survey GDE (Mining Engineering); MSCC; ND Survey 331 Registered South African Council for Professional and Technical Surveyors (PLATO) member 2 Registered South African Council for Natural Scientific Professions (SACNASP) members3 Registered South African Institute of Mining and Metallurgy (SAIMM) members
Note: Details of professional organisations to which the respective Competent Persons are affiliated to are listed at the end of the report under Supplementary information
Sibanye Gold Mineral Resources and Mineral Reserves 2015 99
SECTION 1 GROUP OVERVIEWNEXTBACKPRINTHOME
GROUP CONSOLIDATED MINERAL RESOURCE AND MINERAL RESERVE STATEMENT
The graphs depict the Group’s managed gold and uranium Mineral Resources and Mineral Reserves as at 31 December 2015, split per operation and projects and is compared to the 31 December 2014 declaration.
Gold Mineral Reserves comparison
Beatrix Cooke Driefontein Kloof WRTRP Projects0
2
4
6
8
10
3.91
1
2.08
8
6.48
6
6.45
9
6.54
6
6.90
08.19
6
7.35
4
1.52
3
1.95
5
3.66
9
4.32
6
Gold
(Moz
)
December 2014 December 2015
Gold Mineral Resources comparison
Beatrix Cooke Driefontein Kloof WRTRP Projects
December 2014 December 2015
0
10
20
30
40
18.8
28
18.8
28
6.48
6
6.45
9
28.1
86
29.3
29
19.7
8622.8
80
15.9
11
16.5
89
9.85
9
9.59
2Gold
(Moz
)
Uranium Mineral Reserves comparison
Beatrix Cooke WRTRP0
25
50
75
100
125
98.6
53
99.0
88
3.07
3
3.82
7
11.6
54
Uran
ium
(Mlb
)
December 2014 December 2015
Uranium Mineral Resources comparison
Beatrix Cooke WRTRP Projects0
25
50
75
100
125
35.3
73
35.3
73
99.0
88
98.6
53
68.4
23
66.3
85
26.9
68
26.9
68
Uran
ium
(Mlb
)
December 2014 December 2015
Cooke gold pour
Sibanye Gold Mineral Resources and Mineral Reserves 2015 1010
SECTION 1 GROUP OVERVIEW
GROUP CONSOLIDATED MINERAL RESOURCE AND MINERAL RESERVE STATEMENT
Gold and uranium Mineral Resource and Mineral Reserve classification details are itemised in the respective tables below.
All stated Mineral Resources and Mineral Reserve estimates are net of 12 months production depletion with the 31 December 2014 declaration, where appropriate, also tabulated for an appraised comparison.
CLASSIFIED GOLD MINERAL RESOURCE AND MINERAL RESERVE STATEMENT1
Mineral Resources Mineral Reserves
31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014
Gold classification per operation/project
Tons (Mt)
Grade (g/t)
Gold (Moz) Gold (Moz)
Gold classification per operation/project
Tons (Mt)
Grade (g/t)
Gold (Moz) Gold (Moz)
OPERATIONS OPERATIONS
BEATRIX BEATRIX
Measured AI 26.6 5.7 4.857 3.792 Proved AI 20.1 3.7 2.389 1.706
Indicated AI2 22.2 5.2 3.677 5.332 Probable AI2 18.1 3.2 1.875 1.892
Inferred AI 0.0 3.3 0.004 0.004
Total AI 48.8 5.4 8.538 9.128 Total AI 38.2 3.5 4.264 3.598
Indicated BI3 6.9 4.4 0.991 0.660
Beatrix – total underground 55.8 5.3 9.530 9.788
Beatrix – total underground 38.2 3.5 4.264 3.598
COOKE COOKE
Measured AI 8.5 5.7 1.566 3.175 Proved AI 6.8 4.7 1.014 1.555
Indicated AI 34.7 7.1 7.969 7.659 Probable AI 3.1 4.6 0.457 0.286
Inferred AI 11.9 6.1 2.326 1.643
Total AI 55.1 6.7 11.862 12.477 Total AI 9.8 4.7 1.471 1.841
Inferred BI4 40.7 3.1 3.998 3.998
Cooke – total underground 95.8 5.1 15.860 16.475
Cooke – total underground 9.8 4.7 1.471 1.841
DRIEFONTEIN DRIEFONTEIN
Measured AI 18.9 10.7 6.503 8.229 Proved AI 17.9 7.2 4.133 2.716
Indicated AI 7.5 12.7 3.053 4.088 Probable AI 8.6 6.7 1.846 3.387
Inferred AI 0.7 14.6 0.314 0.550
Total AI 27.0 11.4 9.870 12.867 Total AI 26.4 7.0 5.980 6.103
Indicated BI5 28.0 10.9 9.821 9.684 Probable BI5 9.1 7.3 2.122 1.126
Inferred BI5 0.204
Total BI 28.0 10.9 9.821 9.888 Total BI 9.1 7.3 2.122 1.126
Driefontein – total underground 55.0 11.1 19.691 22.755
Driefontein – total underground 35.5 7.1 8.102 7.228
KLOOF KLOOF
Measured AI 14.4 13.4 6.196 9.618 Proved AI 19.6 7.7 4.857 2.932
Indicated AI 1.2 12.4 0.468 0.775 Probable AI 4.6 6.9 1.024 3.243
Total AI 15.5 13.3 6.664 10.393 Total AI 24.2 7.6 5.881 6.175
Indicated BI6 24.6 14.2 11.246 8.538 Indicated BI6 2.1 7.4 0.502 0.532
Inferred BI6 16.4 19.2 10.112 10.175
Total BI 41.0 16.2 21.359 18.713 Total BI 2.1 7.4 0.502 0.532
Kloof – total underground 56.6 15.4 28.023 29.106
Kloof – total underground 26.3 7.5 6.383 6.706
Sibanye Gold Mineral Resources and Mineral Reserves 2015 1111
SECTION 1 GROUP OVERVIEWNEXTBACKPRINTHOME
GROUP CONSOLIDATED MINERAL RESOURCE AND MINERAL RESERVE STATEMENTCONTINUED
CLASSIFIED GOLD MINERAL RESOURCE AND MINERAL RESERVE STATEMENT1
Mineral Resources Mineral Reserves
31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014
Gold classification per operation/project
Tons (Mt)
Grade (g/t)
Gold (Moz) Gold (Moz)
Gold classification per operation/project
Tons (Mt)
Grade (g/t)
Gold (Moz) Gold (Moz)
Operations – total underground 263.2 8.6 73.103 78.124
Operations – total underground 109.8 5.7 20.219 19.374
Surface Rock Dumps (SRD) and Tailings Storage Facilities (TSF) Surface Rock Dumps (SRD) and Tailings Storage Facilities (TSF)
Beatrix (Indicated) 5.3 0.4 0.062 0.071 Beatrix (Probable) 5.3 0.4 0.062 0.071
Randfontein surface (Measured) 4.7 0.3 0.052 0.086
Randfontein surface (Proved) 4.7 0.3 0.052 0.086
Randfontein surface (Indicated) 0.028
Randfontein surface (Probable) 0.028
Driefontein (Indicated) 4.6 0.6 0.094 0.125 Driefontein (Probable) 4.6 0.6 0.094 0.125
Kloof (Indicated) 9.5 0.5 0.163 0.223 Kloof (Probable) 9.5 0.5 0.163 0.194
Operations – total surface (SRD and TSF) 24.1 0.5 0.372 0.533
Operations – total surface (SRD and TSF) 24.1 0.5 0.372 0.504
Total operations (incl. SRD and TSF – excl. Projects) Total operations (incl. SRD and TSF – excl. Projects)
Beatrix 61.1 4.9 9.592 9.859 Beatrix 43.5 3.1 4.326 3.669
Cooke 100.5 4.9 15.911 16.589 Cooke 14.5 3.3 1.523 1.955
Driefontein 59.6 10.3 19.786 22.880 Driefontein 40.1 6.4 8.196 7.354
Kloof 66.1 13.3 28.186 29.329 Kloof 35.8 5.7 6.546 6.900
Operations – total (incl. SRD and TSF) 287.3 8.0 73.475 78.657
Operations – total (incl. SRD and TSF) 134.0 4.8 20.591 19.878
PROJECTS PROJECTS
BEISA NORTH* BEISA NORTH
Inferred 14.8 3.4 1.619 1.619
Beisa North – total underground 14.8 3.4 1.619 1.619
Beisa North – total underground
BLOEMHOEK* BLOEMHOEK
Indicated 27.4 4.7 4.163 4.163
Inferred 0.9 4.9 0.135 0.135
Bloemhoek – total underground 28.3 4.7 4.297 4.297
Bloemhoek – total underground
BURNSTONE BURNSTONE
Indicated 25.4 5.3 4.350 4.350 Probable 13.0 4.3 1.799
Inferred 28.7 4.9 4.540 4.540
Burnstone – total underground 54.1 5.1 8.890 8.890
Burnstone – total underground 13.0 4.3 1.799
DE BRON MERRIESPRUIT*
DE BRON MERRIESPRUIT
Indicated 23.0 4.5 3.307 3.307 Probable 15.4 4.3 2.112 2.088
Inferred 5.3 4.2 0.715 0.715
De Bron Merriespruit – total underground 28.3 4.4 4.022 4.022
De Bron Merriespruit – total underground 15.4 4.3 2.112 2.088
Projects – total underground 125.5 4.7 18.828 18.828
Projects – total underground 28.4 4.3 3.911 2.088
Sibanye Gold Mineral Resources and Mineral Reserves 2015 1212
SECTION 1 GROUP OVERVIEW
CLASSIFIED GOLD MINERAL RESOURCE AND MINERAL RESERVE STATEMENT1
Mineral Resources Mineral Reserves
31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014
Gold classification per operation/project
Tons (Mt)
Grade (g/t)
Gold (Moz) Gold (Moz)
Gold classification per operation/project
Tons (Mt)
Grade (g/t)
Gold (Moz) Gold (Moz)
WRTRP WRTRP
Measured 662.5 0.3 5.962 5.935 Proved
Indicated 52.3 0.3 0.524 0.524 Probable 714.8 0.3 6.486 6.459
WRTRP – total surface 714.8 0.3 6.486 6.459
WRTRP – total surface 714.8 0.3 6.486 6.459
Projects – total surface 714.8 0.3 6.486 6.459 Projects – total surface 714.8 0.3 6.486 6.459
Projects – total underground and surface 840.3 0.9 25.314 25.287
Projects – total underground and surface 743.2 0.4 10.397 8.547
Grand total – underground and surface 1,127.6 2.7 98.790 103.944
Grand total – underground and surface 877.1 1.1 30.988 28.425
Al: Above Infrastructure
Bl: Below Infrastructure
Mineral Resources are inclusive of Mineral Reserves
All tons (t) are expressed in metric units
Rounding-off of figures may result in minor computational discrepancies. Where this happens, it is not deemed significant
Cut-off grades have been calculated in accordance with the SEC Guidelines for mineral pricing and approximate the historic two- to three-year average commodity prices
Mineral Resources were declared at a premium of 10% over the Mineral Reserve metal price
Gold Mineral Resources were determined at R470,000/kg and the Gold Mineral Reserves at R430,000/kg1 Managed, unless otherwise stated2 Beatrix Indicated Mineral Resources AI and Probable Mineral Reserves includes the Beisa Project3 Beatrix Indicated Mineral Resources BI refers to material below 26 Level (1,341mbs)4 Cooke Inferred Mineral Resources BI refers to material within Cooke 4 Shaft prospecting right (Zuurbekom)5 Driefontein Indicated and Inferred Mineral Resources and Probable Mineral Reserves BI refers to material below 50 Level (3,300mbs)6 Kloof Indicated and Inferred Mineral Resources and Probable Mineral Reserves BI refers to material below 45 Level (3,347mbs)
* SOFS Projects
Sibanye Gold Mineral Resources and Mineral Reserves 2015 1313
SECTION 1 GROUP OVERVIEWNEXTBACKPRINTHOME
GROUP CONSOLIDATED MINERAL RESOURCE AND MINERAL RESERVE STATEMENTCONTINUED
CLASSIFIED URANIUM MINERAL RESOURCE AND MINERAL RESERVE STATEMENT1
Mineral Resources Mineral Reserves
31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014
Uranium classification per operation/project
Tons (Mt)
Grade (kg/t)
U3O8 (Mlb)
U3O8
(Mlb)
Uranium classification per operation/project
Tons (Mt)
Grade (kg/t)
U3O8 (Mlb)
U3O8
(Mlb)
OPERATIONS OPERATIONS
BEATRIX2 BEATRIX2
Measured AI 3.6 1.086 8.548 8.548 Proved AI
Indicated AI 7.8 1.069 18.330 18.330 Probable AI 7.4 0.715 11.654
Inferred AI 0.0 1.101 0.090 0.090
Beatrix (Beisa) – total underground 11.4 1.074 26.968 26.968
Beatrix (Beisa) – total underground 7.4 0.715 11.654
COOKE COOKE
Measured AI 4.9 0.447 4.873 5.697 Proved AI 2.7 0.348 2.056 3.388
Indicated AI 11.0 0.476 11.546 15.987 Probable AI 1.5 0.314 1.017 0.439
Inferred AI 6.7 0.546 8.020 0.717
Total AI 22.6 0.490 24.439 22.401 Total AI 4.2 0.336 3.073 3.827
Inferred BI3 35.9 0.555 43.984 43.984
Cooke – total underground 58.5 0.530 68.423 66.385
Cooke – total underground 4.2 0.336 3.073 3.827
Operations – total underground 69.9 0.619 95.391 93.353
Operations – total underground 11.5 0.579 14.727 3.827
PROJECTS PROJECTS
BEISA NORTH BEISA NORTH
Inferred 14.8 1.084 35.373 35.373
Beisa North – total underground 14.8 1.084 35.373 35.373
Beisa North – total underground
Projects – total underground 14.8 1.084 35.373 35.373
Projects – total underground
WRTRP WRTRP
Measured 654.3 0.062 89.151 88.717 Proved
Indicated 52.3 0.086 9.936 9.936 Probable 706.6 0.064 99.088 98.653
WRTRP – total surface 706.6 0.064 99.088 98.653
WRTRP – total surface 706.6 0.064 99.088 98.653
Projects – total surface 706.6 0.064 99.088 98.653
Projects – total surface 706.6 0.064 99.088 98.653
Projects – total underground and surface 721.4 0.085 134.461 134.026
Projects – total underground and surface 706.6 0.064 99.088 98.653
Grand total – underground and surface 791.3 0.132 229.852 227.379
Grand total – underground and surface 718.1 0.072 113.814 102.480
Al: Above Infrastructure
All tons (t) are expressed in metric units
Mineral Resources are inclusive of Mineral Reserves
Rounding-off of figures may result in minor computational discrepancies. Where this happens, it is not deemed significant
For uranium Mineral Reserves, a long-term contract price of R1,140/kg was used1 Managed, unless otherwise stated2 Beatrix includes uranium Mineral Resources and Mineral Reserves from the Beisa Project3 Cooke Inferred Mineral Resources BI refers to material within the Cooke 4 Shaft prospecting right (Zuurbekom)
Sibanye Gold Mineral Resources and Mineral Reserves 2015 1414
SECTION 1 GROUP OVERVIEW
GROUP MINERAL RESOURCE AND MINERAL RESERVE DEPLETION AND GROWTH
DEPLETION AND GROWTH OUTLINEQuality Mineral Reserves are the foundation of wealth and future security of Sibanye, and Mineral
Reserve sustainability is reliant on a sound brownfield and growth project stream.
Key aspects that impacted the 31 December 2015 Statement of Mineral Resources and Mineral
Reserves were:
• Gold Mineral Reserves for the Group increased by 9% to 31.0Moz from 28.4Moz declared at
31 December 2014 despite depletion of 1.6Moz in C2015.
• Uranium Mineral Reserves for the Group increased by 11% to 113.8Mlb with a maiden
Mineral Reserve declared at Beatrix’s Beisa Project.
• Gold Mineral Reserves at Operations increased by 0.7Moz or 4% to 20.6Moz, from 19.9Moz
declared at December 2014, despite depletion of 1.6Moz in 2015.
• The Group again made significant gains in the exploration of ‘secondary reefs’ at Kloof and
Driefontein, specifically in the Middelvlei (MVR) and Kloof Reef (KR) horizons. There is also a
comprehensive review and investigation programme in place to identify previously unmined
areas with economic potential (white areas). These interventions resulted in additional gold
Mineral Reserves of 1.4Moz.
• A maiden gold Mineral Reserve of 1.8Moz was declared at the Burnstone Project, following the
completion of a FS, and the initiation of the full-scale development of the operation.
• Maiden gold and uranium Mineral Reserves of 0.5Moz and 11.7Mlb respectively were
declared for the Beisa Project at Beatrix West.
SUMMARISED OPERATION REVIEWBEATRIXBeatrix is an established, low-cost, high-productivity asset with a LoM extending up to 2029.
The Mineral Resources include 9.6Moz gold and 27.0Mlb uranium. Gold Mineral Reserves
increased by 18% net of production depletion to 4.3Moz in C2015 due to an extended life
at Beatrix West, as well as a maiden Reserve being declared at the Beisa Project (0.5Moz).
Uranium Mineral Reserves for the Beisa Project are estimated at 11.7Mlb. The underground
production is supplemented by a low-cost surface operation treating historic rock dumps, which
is estimated at 0.1Moz.
DRIEFONTEINDriefontein is a high-yield, medium- to long-term operation with Mineral Resources of 19.8Moz
and Mineral Reserves of 8.2Moz, with a LoM extending to 2042. The Mineral Reserves increased
by 11% net of depletion from the previous year, mainly due to the extension of the area accessible
through the drop-down project at 5 Shaft and additional economically mineable secondary reefs
and white areas previously excluded. The underground production is supplemented by a low-cost
surface operation treating historical rock dumps, which is estimated at 0.1Moz.
KLOOF Kloof is a high-yield medium- to long-term operation, with Mineral Resources of 28.2Moz and
Mineral Reserves of 6.5Moz, with a LoM extending to 2033. The Mineral Reserves decreased by
5% with production depletion mitigated by additional Mineral Reserves from secondary reefs and
white areas. The underground production is also supplemented by a low-cost surface operation
treating historical rock dumps, which is estimated at 0.2Moz.
COOKECooke is a low-cost, short- to medium-term asset, producing both gold and uranium. The current
LoM is estimated to extend to 2023. The operation has gold Mineral Resources of approximately
16.0Moz and gold Mineral Reserves of 1.5Moz. Uranium Mineral Resources at the operation are
68.4Mlb and the uranium Mineral Reserves 3.1Mlb. The gold and uranium Mineral Reserves have
decreased year-on-year mainly due to an increase in the pay limit, as well as the suspension of
the mechanised mining section at Cooke 1 Shaft. The underground production is supplemented
by a low-cost surface operation treating historical tailings storage facilities (gold Mineral Reserves
estimated at 0.1Moz).
SUMMARISED PROJECT REVIEWBURNSTONE PROJECTFollowing the completion of a FS and the initiation of full-scale development, a maiden gold Mineral Reserve of 1.8Moz was declared for the Burnstone Project.
WEST RAND TAILINGS RETREATMENT PROJECT The WRTRP entails processing the historic tailings storage facility (TSF) of the Driefontein, Kloof and Cooke operations for gold and uranium. The definitive feasibility study (DFS) for this project was completed in C2015. The project has an estimated gold and uranium Mineral Reserve of 6.5Moz and 99.1Mlb respectively.
SOFSDE BRON MERRIESPRUIT PROJECTThe gold Mineral Reserves for the De Bron Merriespruit Project are re-estimated, based on additional work done on the production design and schedule in C2015. The production design and schedule was modified to fall in line with geological and estimation models, which were restated following the acquisition of Wits Gold in 2014. The gold Mineral Reserves, however, remain constant
at 2.1Moz.
BLOEMHOEK PROJECT The Bloemhoek Project, which is adjacent to Beatrix North, has Mineral Resources of 4.3Moz. A study to access a portion of this area with a decline system from Beatrix North has commenced and is due for completion in 2016. Concurrently, an exploration programme, designed to improve geological confidence in the immediate vicinity of the planned decline system, will also be completed.
Sibanye Gold Mineral Resources and Mineral Reserves 2015 1515
SECTION 1 GROUP OVERVIEWNEXTBACKPRINTHOME
GOLD MINERAL RESOURCE RECONCILIATION
Factors Gold (Moz)
31 December 2014 103.944
2015 depletion (1.984)
Post-depletion 101.960
Changes in geology structure at operations 0.641
Changes in estimation models at operations due to additional sampling (0.053)
Changes in geostatistical modelling parameters at operations 0.874
Specific inclusions:
Deposition to active TSFs which form part of the WRTRP 0.027
Additional surface sources (SRDs) at Driefontein, Kloof and Beatrix 0.024
Specific exclusions:
Resource blocks clean-up (0.608)
Uneconomical areas excluded (3.308)
Exclusion of inaccessible areas at Cooke 4 Shaft (0.767)
31 December 2015 98.790
Gold Mineral Resource reconciliation
31 D
ec 2
014
31 D
ec 2
015
2015
Dep
letio
n
Post
-dep
letio
n
Chan
ges
in g
eolo
gy
Chan
ges
in e
stim
atio
n
Chan
ges
in g
eost
atis
tical
mod
ellin
g
Depo
sitio
n to
act
ive
TSFs
Addi
tiona
l sur
face
sou
rces
Reso
urce
blo
cks
clea
n-up
Unec
onom
ical
exc
lusi
ons
Inac
cess
ible
are
as C
ooke
4
(1,984) (53)641 874 27 24
(608) (3,308) (767)
Gold
(’00
0oz)
103,944 101,960 98,790
0
20,000
40,000
60,000
80,000
100,000
120,000
Kloof 7 Shaft
GROUP MINERAL RESOURCE AND MINERAL RESERVE DEPLETION AND GROWTH CONTINUED
Please supply pic
Driefontein 10 Shaft
Sibanye Gold Mineral Resources and Mineral Reserves 2015 1616
SECTION 1 GROUP OVERVIEW
Gold Mineral Reserve reconciliation
31 D
ec 2
014
31 D
ec 2
015
2015
Dep
letio
n
Post
-dep
letio
n
Chan
ges
in g
eolo
gy
Chan
ges
in e
stim
atio
n
Tech
nica
l fac
tors
(min
e)
Drie
font
ein
5 Sh
aft d
rop
DBM
revi
sed
layo
ut
Burn
ston
e Pr
ojec
t inc
lusi
on
Beat
rix S
outh
G-B
lock
Beis
a Pr
ojec
t mai
den
Whi
te a
reas
Depo
sitio
n to
act
ive
TSFs
Addi
tiona
l sur
face
sou
rces
Beat
rix 2
Sha
ft de
com
mis
sion
ed
Seco
ndar
y ree
f
Unec
onom
ic e
xclu
sion
s
(1,577) (81) (845)
1,0161,799
452(113) (230)495
108 1,073 362 27 54
24
Gold
(’00
0oz)
28,425 26,848
30,988
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
GOLD MINERAL RESERVE RECONCILIATION
Factors Gold (Moz)
LoM 31 December 2014 28.425
2015 depletion (1.577)
Post-depletion LoM 26.848
Changes in geology structure at operations (0.081)
Changes in estimation models at operations (0.845)
Technical factors [Mine Call Factor (MCF), % waste mining] 0.452
Specific inclusions:
Driefontein 5 Shaft drop-down project extension beyond inner core 1.016
Beatrix Beisa Project maiden Mineral Reserve 0.495
Revised mining method applied to De Bron Merriespruit Project 0.024
Burnstone Project maiden Mineral Reserve 1.799
Beatrix South G-Block Project 0.108
White areas and general additions mainly at Driefontein 8 Shaft and Beatrix West 1.073
Secondary reefs at Driefontein 8 Shaft and Kloof 8 Shaft 0.362
Deposition to active TSFs which form part of the WRTRP 0.027
Additional SRDs at Driefontein, Kloof and Beatrix 0.054
Specific exclusions:
Beatrix South 2 Shaft decommissioned (0.113)
Uneconomic areas excluded, mainly from Cooke (0.230)
LoM 31 December 2015 30.988
Sibanye Gold Mineral Resources and Mineral Reserves 2015 1717
SECTION 1 GROUP OVERVIEWNEXTBACKPRINTHOME
URANIUM MINERAL RESOURCE RECONCILIATION
Factors U3O8 (Mlb)
31 December 2014 227.3792015 depletion (0.187)
Post-depletion 227.193Changes in estimation models at operations due to additional sampling 0.427
Specific inclusions:
Deposition to active TSFs which form part of the WRTRP 0.435
Specific exclusions:
Uneconomical areas excluded 3.899
Resource blocks re-definition (2.102)
31 December 2015 229.852
URANIUM MINERAL RESERVE RECONCILIATION
Factors U3O8 (Mlb)
31 December 2014 102.480
2015 depletion (0.291)
Post-depletion 102.189
Changes in estimation models at operations 0.341
Exclusions at Cooke 3 Shaft and Cooke 4 Shaft due to tail management (0.804)
Specific inclusions:
Beatrix Beisa Project maiden Mineral Reserve 11.654
Deposition to active TSFs which form part of the WRTRP 0.435
31 December 2015 113.814
GROUP MINERAL RESOURCE AND MINERAL RESERVE DEPLETION AND GROWTH CONTINUED
Cooke 4 Shaft
Uranium Mineral Resource reconciliation
31 D
ec 2
014
31 D
ec 2
015
2015
Dep
letio
n
Post
dep
letio
n
Chan
ges
in e
stim
atio
n
Depo
stio
n to
TSF
s
Reso
urce
blo
cks
re-d
efin
ition
Unec
onom
ical
exc
lusi
ons
(187) (2,102)427 435 3,899
Uran
ium
(’00
0lb)
0
50,000
100,000
150,000
200,000
250,000 227,379 229,852227,193
Uranium Mineral Reserve reconciliation
31 D
ec 2
014
31 D
ec 2
015
2015
Dep
letio
n
Post
dep
letio
n
Chan
ges
in e
stim
atio
n
Beis
a in
clus
ion
Depo
stio
n to
TSF
s
Excl
usio
ns a
t Coo
ke 3
and
4
(291) (804)341
11,654435
Uran
ium
(’00
0lb)
0
30,000
60,000
90,000
120,000
150,000
113,814102,480 102,189
Sibanye Gold Mineral Resources and Mineral Reserves 2015 1818
SECTION 1 GROUP OVERVIEW
GOLD MINERAL RESERVE SENSITIVITYThe sensitivities of gold Mineral Reserve ounces at all the operations are shown in the accompanying chart at -10%, -5%, Base (R430,000), +5% and +10%, and are derived from a factored application of the base-case scheduled Mineral Reserve, reflecting the impact of a changing gold price on the prevailing cut-offs.
The Mineral Reserve sensitivities are not based on detailed depletion schedules and should be considered on a relative and indicative basis only. WRTRP included across the range at the base declaration price and growth projects (Beisa North, Beatrix Beisa, Bloemhoek and Burnstone) were declared at a premium of 10% over the reserve price.
Managed gold Mineral Reserve sensitivities
-10% -5% R430,000 5% 10%
WRTRP Beatrix Cooke Driefontein Kloof Burnstone De Bron Merriespruit
Gold Price (R/kg)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
4,0571,382
7,868
6,528
6,486
4,0881,524
8,042
6,544
6,486
1,795
4,3261,523
8,196
6,486
1,7992,112
6,546
4,6261,519
8,329
6,537 6,521
6,486
1,8012,162
4,6421,513
8,442
6,486
1,8032,207
Gold
(’00
0oz)
Driefontein 8 Shaft bank area
Sibanye Gold Mineral Resources and Mineral Reserves 2015 1919
SECTION 1 GROUP OVERVIEWNEXTBACKPRINTHOME
Sibanye is the largest individual producer of gold in South Africa and is one of the 10 largest gold producers globally.
OPERATIONS AND PROJECTS
Beatrix headgear
Sibanye Gold Mineral Resources and Mineral Reserves 2015 2020
SECTION 2 OPERATIONS AND PROJECTS
Sibanye Gold Mineral Resources and Mineral Reserves 2015
NEXTBACKPRINTHOME
OVERVIEWSibanye’s portfolio of operating assets includes the Beatrix, Cooke, Driefontein and Kloof operations. The Group’s new and exciting project opportunities include Burnstone, the drop-down project at Kloof, Beatrix (Beisa Project), Driefontein depth-extension project, Southern Orange Free State Projects (SOFS) and WRTRP.
Gold Mineral Reserves at the Group’s current operations increased by 0.7Moz or 3.6% to 20.591Moz from the 19.878Moz declared at 31 December 2014 despite a production depletion of 1.577Moz in 2015.
FORECAST GOLD PRODUCTION BASED ON THE C2016 LOM PLAN
Gold produced
17,350kg
DRIEFONTEIN
Gold produced
14,068kg
KLOOF
WRTRPBurnstoneDBMK4 Depth Ext.D5 Depth Ext.BeisaKloofDriefonteinCookeBeatrixGold Fields 2012 Harvest Plan
0
10,000
20,000
30,000
40,000
50,000
2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042
Kg
Gold produced
10,105kgUranium produced
Gold produced
6,252kgUranium produced
79,839kgMineral Reserves
3.073Mlb
BEATRIX COOKE
Mineral Reserves
11.654Mlb
Mineral Reserves
4.326MlbMineral Reserves
1.523Moz
Mineral Reserves
8.196MozMineral Reserves
6.546Moz
Sibanye Gold Mineral Resources and Mineral Reserves 2015 2121
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
OPERATIONS AND PROJECTS CONTINUED
GEOLOGICAL SETTING Gold was first discovered near Johannesburg in March 1886 with the recognition of gold in quartz-pebble conglomerates (traditionally termed ‘reefs’). The gold bearing 6,000m thick succession of principally argillaceous and arenaceous sediments is called the Witwatersrand Basin.
The basin is geographically located in the central north to north-eastern part of South Africa and extends from Johannesburg in the north to some 40km south of Welkom, and covers an area of approximately 70,000km2. More than 150 mines have operated in the basin since gold was first discovered, primarily producing gold, but since the early 1950s additionally uranium. Together, these mines have produced approximately 150,000 tons of uranium and more than 46,000 tons of gold, amounting to no less than 39% of all gold ever mined in the world. The Sibanye operations are hosted in this unique and renowned basin, which remains the world’s single largest gold-producing region.
The Sibanye operations and projects are located in three geographical regions of the Witwatersrand Basin, namely the Far West Rand Goldfield (West Rand and West Wits Line), some 30km to 80km west to south-west of Johannesburg, the Free State Goldfield, 240km south-west of Johannesburg and the South Rand Goldfield, some 75km south-east of Johannesburg. The operations of the Far West Rand Goldfield are the Driefontein, Kloof and Cooke Operations between the towns of Carletonville and Randfontein, in the Free State Goldfield, the Beatrix Operation near Virginia and in the South Rand Goldfield, the Burnstone Project near Balfour some 30km east of Heidelberg.
The Witwatersrand Basin is overlain by outliers of Karoo Supergroup shales and sandstones at the surface, followed by Pretoria Group sediments and the Chuniespoort Group dolomites. The dolomite overlies the Klipriviersberg Group volcanic rocks which, in turn, cap the Ventersdorp Contact Reef (VCR) and sediments of the Central Rand Group that host the other gold-bearing reefs exploited.
The reefs, which are generally less than 2m thick, are widely considered to represent extensive fluvial deposits into a yoked basin. The gold is mainly of detrital origin, deposited syngenetically with the conglomerates interrelated with sedimentary features such as unconformities and fluvial channels. 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 intra-cratonic lake or shallow inland sea.
Although the gold generally occurs in native form and is usually associated with pyrite, carbon and uranium, most of it has been subsequently modified and remobilised during secondary hydrothermalism. This has informed the use of the modified palaeo-placer model, which emphasises a control on the occurrence of ore minerals by placer-forming mechanisms, while accepting some modification by metamorphism. It is the generally accepted model for the origin of gold and uranium mineralisation of the Witwatersrand Basin.
For several decades, models using sedimentological principles have been successfully used to define gold distribution on mine properties. The most fundamental control to the gold distribution remains the association with quartz-pebble conglomerates on intra-basinal unconformities. The reefs are continuous, as a consequence of the regional nature of the erosional surfaces. Bedrock (footwall) controls govern the distribution of many of the reefs. Consequently, the identification and modelling of erosional/sedimentary features are the keys to in situ resource estimation.
As early as 1923, the presence of uranium was noted in the Witwatersrand conglomerates. The changing economics regarding uranium near the end of World War II prompted a second look at the Witwatersrand conglomerates as a source of supply. It was found that on average the conglomerates contain about 0.03% uranium and, as a by-product of gold, relatively low uranium grades can be recovered.
Notwithstanding different opinions as to the origin of the uranium in the conglomerates of the Witwatersrand Basin, most theories accept localisation of both gold and uranium as a function of sedimentary textures. Mineral concentrations are directly related to conglomerate formations. Exploration programmes and evaluation of uranium as per the placer philosophy, have proved to be successful.
VCR buckshot pyrite
UE1A mineralised conglomorate
VCR Reef
VCR D Facies
Sibanye Gold Mineral Resources and Mineral Reserves 2015 2222
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
EXPLORATION ACTIVITIES 2015Over the past 12 months, on-mine exploration activities focused mainly on Mineral Resource definition drilling, the timeous conversion of Mineral Resources to Mineral Reserves, delineating secondary reef potential and exploring white areas. The table below summarises exploration metres drilled and expenditure for the 12 months ending 31 December 2015 with the C2014 details added for comparison.
EXPLORATION DRILLING DETAILS FOR 12 MONTHS ENDING 31 DECEMBER 20151
2015 2014
Operation Metres drilledExpenditure
(Rm) Metres drilledExpenditure
(Rm)
Beatrix North2 7,127 5.682 7,089 5.440
Beatrix South2 1,303 0.883 1,480 0.961
Beatrix West2 2,316 1.541 733 0.395
Cooke* 21,029 20.870 18,323 17.590
Driefontein* 19,242 17.071 19,664 22.713
Kloof* 16,355 17.130 15,610 16.730
Burnstone3 1,354 1.852
WRTRP4 2,188 0.415 4,260 0.397
Total 69,560 63.592 68,513 66.0781 Figures are exclusive of cover drilling2 Includes Mineral Resource conversion drilling conducted for the Beatrix Beisa Project3 Mineral Resource definition drilling conducted at Burnstone; further exploration drilling has been postponed
until C20164 WRTRP Cooke and Cooke 4 South TSFs bulk sample project for metallurgical test work
* C2014 numbers corrected from previous publication since some shafts included cover drilling figures
SCHEMATIC DEPOSITIONAL MODEL OF THE WITWATERSRAND BASIN
T N
0 cm 1
0 cm 3
0 cm 10
0 cm 10
Sibanye Gold Mineral Resources and Mineral Reserves 2015 2323
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
Sibanye’s acquisition of the Wits Gold assets, contiguous to Beatrix, consolidated its position as a top producer of gold in the southernmost extent of the Witwatersrand Basin.The current Mineral Reserves of Beatrix are estimated to sustain the operation until 2029.
BEATRIX
Beatrix 1 Shaft
2424 Sibanye Gold Mineral Resources and Mineral Reserves 2015
SECTION 2 THE BEATRIX OPERATION NEXTBACKPRINTHOME
Gauss Conform Projection Central Meridian 27°
0 5km
Mining RightProspecting RightTownsMain roadsArterial roads
T N
BEATRIX BLOEMHOEKROBIJN
DE BRONMERRIESPRUIT
Virginia
HAKKIESBEISANORTH
ADAMSONSVLEY
BEISASOUTH
Welkom
Co-ordinatesLatitude: 28° 15’00”SLongitude: 26° 47’00”E Theunissen
HARMONY
HARMONY
HARMONY
HARMONY
LOCATION
OVERVIEWBeatrix, a shallow to intermediate level gold mine, has been producing gold since 1983, in the southern portion of the Free State-Goldfields.
In accordance with Section 24 of the MPRDA, 2002 (Act No 28 of 2002), Beatrix has begun the process of applying for the extension, renewal and amendment of the valid Mining Right [DMR Ref. FS30/5/1/2/2(81) MR]. This application is amended to include the valid and lapsed Prospecting Rights [PR (FS30/5/1/1/2(10134)PR), PR (FS30/5/1/1/2(10324)PR), and FS30/5/1/1/2 (10145) respectively. The current Mining Right [DMR Ref. FS30/5/1/2/2(81)MR] expires in February 2019, well before the estimated LoM ends in 2029. An application for the extension of the mining right period will be submitted in 2016.
Beatrix is located in the magisterial district Matjhabeng, a semi-arid relatively flat region, near the towns of Welkom and Virginia, approximately 240km south-west of Johannesburg, in the Free State province of South Africa. Before the advent of mining, the land was used for agricultural purposes and very little natural vegetation remains.
The current mine infrastructure consists of three producing shaft complexes. Mining is focused on open ground and pillars (white areas) of differing reef horizons with the deepest operating level some 2,055m below surface (22 Level at 4 Shaft). The principal mining takes place on the Beatrix Reef (BXR) and local facies variations thereof, which include the VS5 and Aandenk Reefs (AAR), which constitutes almost 54% of the Mineral Reserve ounces and the Kalkoenkrans Reef (KKR) 33%. With the inclusion of the Beisa Project, mining the Beisa Reef now makes up 11%, with the remaining 2% from surface sources. Beatrix makes use of two gold processing plants, both treating underground and surface material.
Gold Mineral Resources 9.592Moz (–3% post-production depletion of 0.383Moz)
Uranium Mineral Resources 26.968Mlb (no change year-on-year)
Gold Mineral Reserves 4.326Moz (+18% post-production depletion of 0.325Moz)
Uranium Mineral Reserve 11.654Mlb following the inclusion of the Beisa Project
Strategic intent
• Extend the LoM
• Stabilise production profiles at current performance levels
• Reduce pay limits through quality mining and cost reduction
• Fast track Mineral Resource to Mineral Reserve conversion
• Regional synergies with the acquisition of Wits Gold focused on value creation
• Beisa is a maiden reserve following the completion of a PFS in December 2014, further optimisation studies will be conducted in 2016
Sibanye Gold Mineral Resources and Mineral Reserves 2015 2525
SECTION 2 THE BEATRIX OPERATIONNEXTBACKPRINTHOME
BEATRIX CONTINUED
BEATRIX OVERVIEW
Mineralisation style Palaeo-placer
Mineralisation characteristics • Hosted by auriferous and uraniferous predominantly quartz pebble conglomerates (reefs)
• Laterally continuous with relatively long-range predictability
• Clear patterns of mineralisation governed by sedimentary characteristics
Deposit type Shallow to intermediate-depth gold mine exploiting the Beatrix Reef (BXR) and the underlying Kalkoenkrans (KKR)/Aandenk (AAR) Reefs, both of the Kimberley Conglomerate Formation
Licence status and holdings Beatrix has a new order mining right in terms of the MPRDA, valid from 7 February 2007 to 6 February 2019 in respect of a mining area totalling 16,817ha. The process for an extension of the mining right is underway with the amendment to include adjacent prospecting rights. All required operating permits have been obtained and are in good standing
Infrastructure • Three shaft complexes (one sub-shaft)
• Two mineral processing plants
• Tailings storage facilities
Mining methods Conventional breast mining, scattered mining, some pillar mining and surface rock dump mining
Mineral processing Two gold processing plants:
• No. 1 Carbon-in-leach (CIL) plant – processing underground ore and low-grade surface rock dump material
• No. 2 CIL plant – processing underground ore and low-grade surface rock dump material
Tailings disposal Two TSFs with LoM deposition estimated at 58.9Mt against a combined capacity of 117.4Mt (surplus of 58.5Mt)
Climate No surface climatic conditions affect the underground mining operations
Environmental/Health and Safety Beatrix’s systems, procedures and training are in line with international best practice
Life of Mine It is estimated that the current Mineral Reserves will sustain the operation until 2029 (for 14 years)
SCHEMATIC 3D SECTION THROUGH THE BEATRIX OREBODY LOOKING NORTH-NORTH-EAST
T N
Sibanye Gold Mineral Resources and Mineral Reserves 2015 2626
SECTION 2 THE BEATRIX OPERATION NEXTBACKPRINTHOME
Competent Persons The Competent Persons at each mining unit (MU) designated in terms of SAMREC who take responsibility for the consolidation, reporting and overall compliance of Beatrix’s 2015 Mineral Resources and Mineral Reserves are the respective Mineral Resource Managers:
MU1: North Section (3 Shaft) Mr C Opperman [ND Mine Surveying, LDP (UNISA), MAP] is a registered SAIMM member (No. 706906) and has 34 years’ experience
MU2: South Section (1 Shaft) Mr S Becker [BEng. Mining Engineering, Mine Manager’s Certificate] is a registered Engineering Council of South Africa (ECSA) member (No. H875564) and has 33 years’ experience
MU3: West Section (4 Shaft) Mr D Oosthuizen [MSCC] is a registered SAIMM member (No. 706910) and has 27 years’ experience
ANNUAL DEVELOPMENT RESULTS
Financial year total
Category Unit Beatrix* KKR 2015 2014
Main development (advanced) km 16.8 4.8 21.6 19.7
Main on-reef development (advanced) km 5.3 1.0 6.3 6.1
Channel width cm 139 121 136 118
Average reef value g/t 7.4 12.1 8.1 8.7
cm.g/t 1,031 1,461 1,100 1,034
*Includes development advances on the Aandenk and VS5 Reefs
REVIEWGold Mineral Resources at Beatrix decreased by approximately 0.267Moz (3%) to 9.592Moz (inclusive of Beisa at 1.194Moz).
Gold Mineral Reserves increased by 18% to 4.326Moz, mainly as a result of the tail management of the west section (because of the inclusion of Beisa in C2016 reserving).
The Beisa North Project gold and uranium Mineral Resources were re-estimated based on the same principles as in 2014. During 2015, Sibanye continued studies relating to the two projects with a view of optimising any potential synergies with Beatrix.
Mineral Reserve development will remain a key performance indicator for C2016. The table details the development advanced for the last 12 months to December 2015 (C2014 numbers included for comparison). A total of 21.6km was developed in C2015 of which 6.3km was on-reef.
A full account of all the operating statistics of Beatrix is posted on the back of the Beatrix shareholders plan, attached to the end of this Mineral Resources and Mineral Reserves Supplement.
West Section
North Section
South Section
North Section (below infrastructure)
Vlakpan
KEY PLAN TO MINING SECTIONS (SHAFT ZONES)
0 2.5km1kmT N
KEY DEVELOPMENTS AND BROWNFIELD PROJECTS (ON-MINE)Beatrix is accessing the Vlakpan area over the LoM, as part of the strategy of optimising the Mineral Resource to Mineral Reserve conversion. The Vlakpan Project comprises ground between 16 and 22 Level to the west of the Beatrix North and South Sections. Access to the area is by means of twin haulages, and a winze from South Section. A detailed mine design and schedule, based on the current geological interpretation, evaluation and economic parameters, coupled with a detailed engineering layout, cost and cash flow models, have been completed for the project, and as a consequence has been incorporated into the current LoM plan.
The PFS for the Beisa Project was completed in December 2014 with the project requiring dual mining consideration with West Shaft as it was sub-economic at the reported uranium price as a stand alone project. The mine schedule was optimised during C2015 and the project has been subsequently included in the LoM plan for Beatrix West. The plan for C2016 is to review the PFS, finalise the remaining permitting issues with the planned uranium plant, and proceed with the FS.
A PFS is to be finalised in C2016 to assess the potential below current infrastructure at 3 Shaft, to access part of the Bloemhoek area to the north of 3 Shaft (outside the current Beatrix Mining Right). Additional drilling to firm up the structure and grade of the target area will additionally be completed in C2016.Beatrix 3 Shaft
Sibanye Gold Mineral Resources and Mineral Reserves 2015 2727
SECTION 2 THE BEATRIX OPERATIONNEXTBACKPRINTHOME
Gold Mineral Resource reconciliation
Dec
2014
Depl
etio
n
Beat
rix 2
Sha
ft de
com
mis
sion
ed
Geol
ogic
al s
truct
ure/
sam
plin
g
Mod
ellin
g
Payli
mit
Surfa
ce s
ourc
es
Dec
2015
(405) (444)(51)
387 13233
Gold
(’00
0oz)
0
2,000
4,000
6,000
8,000
10,000
12,0009,859 9,454 9,592
Post
-dep
letio
n
GOLD MINERAL RESOURCE CLASSIFICATION (REPORTED INCLUSIVE OF MINERAL RESERVES)
Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014
Underground
Measured 26.6 18.5 5.7 6.4 4,857 3,792
Indicated AI 22.2 32.0 5.2 5.2 3,677 5,332
Indicated BI 6.9 4.2 4.4 4.9 991 660
Inferred AI 0.037 0.037 3.3 3.3 4 4
Total underground 55.8 54.7 5.3 5.6 9,530 9,788
Total above infrastructure 48.8 50.5 5.4 5.6 8,538 9,128
Total below infrastructure 6.9 4.2 4.4 4.9 991 660
Surface
Indicated surface rock dumps 5.3 6.2 0.4 0.4 62 71
Total gold Mineral Resources 61.1 60.9 4.9 5.0 9,592 9,859
URANIUM MINERAL RESOURCE CLASSIFICATION
Tons (Mt) Grade (kg/t) U3O8 (‘000 lb)
Uranium classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014
Measured AI 3.6 3.6 1.086 1.086 8,548 8,548
Indicated AI 7.8 7.8 1.069 1.069 18,330 18,330
Inferred AI 0.037 0.037 1.101 1.101 90 90
Total uranium Mineral Resources 11.4 11.4 1.074 1.074 26,968 26,968
Aandenk channel
BEATRIX CONTINUED
0 cm 5
Sibanye Gold Mineral Resources and Mineral Reserves 2015 2828
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
BEATRIX/AANDENK/VS5 REEFS
Legend ClassificationMine boundaryShaftsMined-out areasPillars
MeasuredIndicatedInferred
KALKOENKRANS REEF
Legend ClassificationMine boundaryShaftsMined-out areasPillars
MeasuredIndicatedInferred
0 2.5km1kmT N
0 2.5km1kmT N
Tons
(Mt)
Aver
age
valu
e ab
ove
cut-
off (
cm.g
/t)
Tons GradeCut-off value (cm.g/t)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
20
40
60
80
100
120
2,5002,0001,000 1,5005000
Gold grade tonnage curveThe grade tonnage curve represents undiluted grade (at block width) and tons within the total Mineral Resources (all reefs at zero cut-off).
MODIFYING FACTORS
Parameter Unit Dec 2015 Dec 2014
Mineral Resource pay limit cm.g/t 760 710
Mineral Reserve pay limit cm.g/t 840 780
Mined value* cm.g/t 774 1,025
Mine call factor % 84 81
Block factor % 100 100
Shortfall % 7 6
Mining dilution % 16 18
Stoping width cm 158 172
Mill width cm 189 203
Plant recovery factor UG % 96 96
Plant recovery factor SRD % 88 89
* Includes lower grade Beisa Reef, which will be mined for both gold and uranium
Sibanye Gold Mineral Resources and Mineral Reserves 2015 2929
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
BEATRIX CONTINUED
GOLD MINERAL RESERVE CLASSIFICATION
Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014
Underground
Proved 20.1 13.0 3.7 4.1 2,389 1,706
Probable AI 18.1 14.0 3.2 4.2 1,875 1,892
Probable BI
Total underground 38.2 27.0 3.5 4.1 4,264 3,598
Surface
Probable surface rock dumps 5.3 6.2 0.4 0.4 62 71
Total gold Mineral Reserves 43.5 33.2 3.1 3.4 4,326 3,669
GOLD MINERAL RESERVES PER MINING AREA
Proved Mineral Reserves Probable Mineral ReservesTotal Mineral Reserves
31 Dec 2015Total
Dec 14
Mining areaTons (Mt)
Grade (g/t)
Gold (‘000 oz)
Tons (Mt)
Grade (g/t)
Gold (‘000 oz)
Tons (Mt)
Grade (g/t)
Gold (‘000 oz)
Gold (‘000 oz)
North Section (3 Shaft) 13.5 3.0 1,311 5.7 2.8 514 19.2 3.0 1,825 1,952
South Section (2 Shaft) 3.3 3.4 351 1.5 3.1 148 4.7 3.3 499 590
West Section (4 Shaft) 3.3 6.8 727 3.5 6.4 717 6.8 6.6 1,444 1,055
Beisa (4 Shaft)* 7.4 2.1 495 7.4 2.1 495
Total underground 20.1 3.7 2,389 18.1 3.2 1,875 38.2 3.5 4,264 3,598
Surface rock dumps 5.3 0.4 62 5.3 0.4 62 71
Total gold Mineral Reserves 20.1 3.7 2,389 23.4 2.6 1,938 43.5 3.1 4,326 3,669
*Further optimisation studies scheduled for 2016
URANIUM MINERAL RESERVE CLASSIFICATION
Tons (Mt) Grade (kg/t) U3O8 (‘000 lb)
Uranium classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014
Probable AI 7.4 0.715 11,654
Total AI 7.4 0.715 11,654
Total underground 7.4 0.715 11,654
GOLD MINERAL RESERVE RECONCILIATION AT 31 DECEMBER 2015
Factors Moz
31 December 2014 3.669
2014 Depletion (0.325)
Post depletion 3.344
Geological changes 0.080
White areas 0.602
General exclusions (0.237)
Evaluation (0.034)
Technical factors 0.061
Surface sources 0.014
Beisa 0.495
31 December 2015 4.326
Gold Mineral Reserve reconciliation
Dec
2014
Depl
etio
n
Geol
ogic
al c
hang
es
Whi
te a
reas
Gene
ral e
xclu
sion
s
Eval
uatio
n
Tech
nica
l fac
tors
Surfa
ce s
ourc
es
Beis
a
Dec
2015
(325)
80 (237)
602
(34)
61 14495
Gold
(’00
0oz)
0500
1,0001,5002,0002,5003,0003,5004,0004,5005,000
3,6693,344
4,326
Post
-dep
letio
n
Sibanye Gold Mineral Resources and Mineral Reserves 2015 3030
SECTION 2 THE BEATRIX OPERATION NEXTBACKPRINTHOME
CURRENT LOM ESTIMATED TO SUSTAIN OPERATION UNTIL 2029, A FURTHER 14 YEARS
PRODUCTION AND HOISTING CAPACITIES
Mining unitOperating
shaft
Operational hoisting
capacity (ktpm)
Planned production
(ktpm)*
1 3 170 152
2 1 138 55
2 2 Decommissioned
3 4** 120 99
3 4 SV 120 51
* Planned production is a five-year hoisted average from 2016 onwards
** 4 Shaft includes Beisa
PLANT CAPACITIES
Plant
Design capacity
(ktpm)
Current operational
capacity (ktpm)
Average recovery
factor (%)Material treated
1 (CIL) 233 243 95.8 88.9
UG Surface
2 (CIP) 130 130 94.8 86.1
UG Surface
CIP: Carbon in pulp
Beatrix 2 processing plant
Sibanye Gold Mineral Resources and Mineral Reserves 2015 3131
SECTION 2 THE BEATRIX OPERATIONNEXTBACKPRINTHOME
Our Cooke operation was first established as the Western Areas Gold mine in 1961 following detailed exploration of the gold-and uranium-bearing conglomerates of the Elsburg Formation that had began in the
1950s. The current Mineral Reserves are estimated to sustain the operation until 2023.
COOKE
Cooke 4 Shaft complex
3232 Sibanye Gold Mineral Resources and Mineral Reserves 2015
SECTION 2 THE COOKE OPERATION NEXTBACKPRINTHOME
Mining RightSection 102 applicationTownsNational roadsArterial roadsMain roads
EX-BLYVOORUITZICHT
Fochville
KLOOF
DRIEFONTEIN
ZUURBEKOMPR TO BE INCLUDED INCOOKE 4
WRTRP
WRTRP
WRTRP
Westonaria
Randfontein
Carletonville
WRTRP
RSOWRTRP
HARMONY
HARMONY
GOLD FIELDS
ANGLOGOLD
COOKE 4
COOKE 123
COOKE 123
RSO
Gauss Conform Projection Central Meridian 27°
0 5km
Co-ordinatesLatitude: 26° 15’00”SLongitude: 24° 45’00”E
T N
OVERVIEWCooke is a large, established, shallow to intermediate-level gold mine. The mine has been producing uranium and gold since 1961. As per legislation, the mine operates under three Mining Rights, covering areas adjacent to each other. The Mining Rights are as follows:
• Cooke 1,2,3 [DMR Ref. GP30/5/1/2/2(07) MR], valid from 18 December 2007 to 17 December 2037 and covering a total area of 7,875ha
• Cooke 4 (Ezulwini) [DMR Ref. GP30/5/1/2/2(38) MR], valid from 20 November 2006 to 19 November 2036 and covering a total area of 3,718ha
• Randfontein Surface Operations (RSO) [DMR Ref. GP30/5/1/2/2(173) MR] valid from 07 May 2009 to 06 May 2039 with a total area of 3,130ha
The underground mining activities at Cooke and the RSO are located in the Randfontein District of the Gauteng province in South Africa. Cooke shafts are located approximately 30km to 40km south-west of Johannesburg. The sites are accessed via the R28 highway between Randfontein and Westonaria or via the N12 national road between Johannesburg and Potchefstroom.
The topography of the surface area is relatively flat and the vegetation of the area is classified as Bankenveld consisting of grassland. Livestock farming is widespread in the surrounding area and no climate extremes are experienced that affect mining operations.
The RSO assets include several TSFs on the West Rand near Randfontein.
LOCATION
Gold Mineral Resources 15.911Moz (4.08% decrease post-production depletion of 0.120Moz)
Uranium Mineral Resources 68.423Mlb (+3.1% post-production depletion of 0.291Mlb)
Gold Mineral Reserves 1.523Moz (-12% post-production depletion of 0.216Moz)
Uranium Mineral Reserves 3.073Mlb (-13% post-production depletion of 0.291Mlb)
Strategic intent
• Stabilise production profiles and performance levels
• Reduce pay limits through quality mining and cost reduction
• Strengthen uranium potential
• Unlock secondary reef potentials
Sibanye Gold Mineral Resources and Mineral Reserves 2015 3333
SECTION 2 THE COOKE OPERATIONNEXTBACKPRINTHOME
COOKE CONTINUED
The current mine infrastructure consists of four producing shaft complexes that mine open ground and pillars (white areas), with the deepest operating level some 1,634m below surface (58 level at Cooke 4 SV Shaft). The production from the four Cooke shafts is hoisted to surface separately. Underground material from Cooke 1,2 and 3 is processed at the Doornkop Plant, operated by Harmony Gold Mining Company Ltd, on a toll treatment basis. Run-of-mine (ROM) from Cooke 4, is treated at the Ezulwini gold-uranium plant situated near Cooke 4 Shaft. Ore from the uranium section at Cooke 3 is hoisted separately and trucked, along private roads, to the Ezulwini gold-uranium plant for treatment.
The principal mining takes place on the UE1A Reef, which constitutes 63% of the underground Mineral Reserve ounces, the Upper Elsburg Reefs (24%), various secondary reefs of the Elsburg and Kimberley Formations (3%) and the VCR (10%). The principal source of uranium is the UE1A Reef.
SCHEMATIC 3D SECTION THROUGH THE COOKE OREBODY LOOKING NORTH-NORTH-WEST
T N
SCHEMATIC 3D SECTION OF THE COOKE 4 OREBODY LOOKING WEST-NORTH-WEST
T N
Sibanye Gold Mineral Resources and Mineral Reserves 2015 3434
SECTION 2 THE COOKE OPERATION NEXTBACKPRINTHOME
COOKE OVERVIEW
Mineralisation style Palaeo-placer
Mineralisation characteristics • Hosted by auriferous and uraniferous, quartz pebble conglomerates (reefs)
• Laterally extensive with relatively long-range predictability
• Clear patterns of mineralisation governed by sedimentary characteristics
Deposit type Shallow to intermediate-depth gold mine exploiting the UE1A Reef, various secondary reefs of the Elsburg and Kimberley Conglomerate Formations and the VCR
Licence status and holdings Cooke has a new order mining right in terms of the MPRDA, separated into three individual rights with granted durations as follows:
• Cooke 1,2,3 from 18 December 2007 to 17 December 2037 in respect of a mining area totalling 7,875ha
• Cooke 4 from 20 November 2006 to 19 November 2036 covering a total area of 3,718ha
• RSO from 7 May 2009 to 6 May 2039 covering a total area of 3,230ha
All required operating permits have been obtained and are in good standing. Cooke 4 also holds a prospecting right [DMR Ref. GP (10151)PR] in respect of a contiguous area (6,842ha) to the east of Cooke 1,2,3 and Cooke 4, which is valid until October 2016. Cooke 4 is in the process of finalising a Section 102 application to amend the Cooke 4 mining right through the inclusion of this prospecting right (Zuurbekom)
Cooke 1,2,3 holds a prospecting right GP(10055)PR over the Cooke 4 South TSF, measuring 244ha, a S102 application was submitted in 2015 for GP(10055)PR to be included into C123MR
Infrastructure Four shaft complexes and a surface mining operation
Mining methods • Cooke 1,2,3: conventional breast mining, scattered mining and pillar mining
• Cooke 4: conventional breast mining, drift and benching, scattered mining and pillar mining
• RSO: hydraulic reclamation (water jets), gravity feed to sump pump station and pumped via pipeline to processing plant
Mineral processing Three processing plants (one external)
• Harmony Doornkop Plant: processing Cooke 1,2,3 underground ore on a toll treatment basis for gold
• Ezulwini Plant: processing Cooke 1,2,3 and Cooke 4 underground ore for gold and uranium
• Cooke Plant: processing RSO tailings material for gold
Tailings disposal A tailings storage facility (Ezulwini) with LoM deposition estimated at 6.6Mt against a capacity of 10.0Mt (surplus of 3.4Mt)
Cooke 1,2,3 tailings via the Doornkop Plant are deposited on the Doornkop TSF
Currently RSO tailings are deposited down old, defunct open-cast mine workings estimated to accomodate all planned residue over the LoM
Climate No extreme climate conditions are experienced that affect mining operations
Environmental/Health and Safety Cooke systems, procedures and training are on par with international best practice
Life of Mine It is estimated that the current Mineral Reserves will sustain the operation until 2023 (based on Cooke LoM)
Competent Persons The Competent Persons at each MU designated in terms of SAMREC, who take responsibility for the consolidation, reporting and overall compliance of Cooke’s Mineral Resources and Mineral Reserves are the respective Mineral Resource Managers:
MU1: 1 and 2 Shafts Mr L Madondo [BSc. Geology, COMSCC] is a registered SACNASP member (No. 200016/09) and has 11 years’ experience
MU2: 3 Shaft Mr S Stander [BSc (Hon) Geology, GDE (Mining), B.Com., MBL, Dipl. PM] is a registered SACNASP member (No.400089/96) and has 13 years’ experience
MU3: 4 Shaft Mr I Kitchin [BSc. (CPD Mineral Resource Management)] is a registered SAIMM member (No. 705144) and has 32 years’ experience
Compliance Internal technical reviews have been conducted by the Competent Persons who gave their consent for the disclosure of the C2015 Mineral Resource and Mineral Reserve Statement. All have sufficient experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye
Sibanye Gold Mineral Resources and Mineral Reserves 2015 3535
SECTION 2 THE COOKE OPERATIONNEXTBACKPRINTHOME
Cooke 1 and 2Shafts
Cooke 3 Shaft
Cooke 4 Shaft
ZuurbekomProspecting
Right
KEY PLAN TO MINING SECTIONS (SHAFT ZONES)
0 2.5km1kmT N
KEY DEVELOPMENTS AND BROWNFIELD PROJECTS (ON-MINE)The potential that exists in the Zuurbekom area and the secondary reefs will be re-assessed during the course of C2016.
The build-up in the production of uranium at Cooke 3 and 4 Shafts will continue in C2016.
COOKE CONTINUED
REVIEWGold Mineral Resources at Cooke decreased by 0.677Moz (-4.08%) to 15.911Moz due to pay limit variations pertaining to the Cooke 1,2,3 operations.
The Uranium Mineral Resources at Cooke increased by approximately 2.038Mlb (+3.07%) to 68.423Mlb.
Gold Mineral Reserves decreased by 22% to 1.523Moz. The change was as a result of pay limit variation.
Uranium Mineral Reserve decreased by 20% (-0.754Mlb) amounting to a total 3.073Mlb.
COOKEANNUAL DEVELOPMENT RESULTS
Financial year total
Category Unit VCRElsburg
ReefsElsburg
MassivesKimberley
ReefsTotal 2015
Main development (advanced) km 2 .197 9.450 0.212 1.064 12.923
Main on-reef development (advanced) km 1. 250 3. 607 0.169 0.620 5.646
Channel width cm 94 129 177 75 117
Average reef value g/t 7.6 7.6 9.1 8.2 7.7
cm.g/t 712 977 1,616 614 898
A full account of all the operating statistics of Cooke is posted on the back of the Cooke shareholders plan attached to the end of this Mineral Resources and Mineral Reserves Supplement.
Lining of the TSF
Bullion scrubbing
Sibanye Gold Mineral Resources and Mineral Reserves 2015 3636
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
GOLD MINERAL RESOURCE CLASSIFICATION (REPORTED INCLUSIVE OF MINERAL RESERVES)
Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014
Underground
Measured 8.5 11.5 5.7 8.6 1,566 3,175
Indicated AI 34.7 34.8 7.1 6.8 7,969 7,659
Inferred AI 11.9 8.6 6.1 5.9 2,326 1,643
Total above infrastructure 55.1 54.9 6.7 7.1 11,862 12,477
Inferred BI 40.7 40.7 3.1 3.1 3,998 3,998
Total underground 95.8 95.6 5.1 5.4 15,860 16,475
Surface – TSFs
Measured 4.7 7.3 0.3 0.4 52 86
Indicated 2.2 0.4 28
Total surface 4.7 9.4 0.3 0.4 52 114
Total gold Mineral Resources 100.5 105.0 4.9 4.9 15,911 16,589
URANIUM MINERAL RESOURCE CLASSIFICATION (REPORTED INCLUSIVE OF MINERAL RESERVES)
Tons (Mt) Grade (kg/t) U3O8 (‘000 lb)
Uranium classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014
Underground
Measured 4.9 4.4 0.447 0.590 4,873 5,697
Indicated AI 11.0 12.4 0.476 0.584 11,546 15,987
Inferred AI 6.7 1.1 0.546 0.288 8,020 717
Total above infrastructure 22.6 17.9 0.490 0.567 24,439 22,401
Inferred BI 35.9 35.9 0.555 0.555 43,984 43,984
Total uranium Mineral Resources 58.5 53.9 0.530 0.559 68,423 66,385
Ezulwini processing plant
Sibanye Gold Mineral Resources and Mineral Reserves 2015 3737
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
SINGLE REEF
MULTI REEF
UE1A/E9EC
AN
TIC
LIN
E A
XIS
UE1A/E9EC
North
COOKE 3
COOKE 2
AND COOKE 4
COOKE 1
ILLUSTRATION OF UE1A/E9EC CLASTIC WEDGE
UPPER ELSBURG
0 2.5km1kmT N
Ezulwini processing plant
Legend ClassificationShaftsMining BoundaryMined-out areasUpper Elsburg subcrop
MeasuredIndicatedInferred
VENTERSDORP CONTACT REEF
0 2.5km1kmT N
UE1A AND E9EC
0 2.5km1kmT N
Legend ClassificationShaftsMining BoundaryMined-out areasUE1A subcropPillars
MeasuredIndicatedInferred
Legend ClassificationShaftsMining BoundaryMined-out areasVCR subcrop
MeasuredIndicatedInferred
COOKE CONTINUED
Gold Mineral Resource reconciliation
Dec
2014
2015
Dep
letio
n
Addi
tiona
l blo
ckin
g
Mod
ellin
g
Payli
mit
Geol
ogic
al s
truct
ure
Reso
urce
blo
cks
clea
nup
Surfa
ce s
ourc
es
Dec
2015
(291)
3,168
(1,850)(1,871) (26)
(140)
332
Gold
(’00
0oz)
0
5,000
10,000
15,000
20,00016,589 16,298 15,911
Post
-dep
letio
n
Sibanye Gold Mineral Resources and Mineral Reserves 2015 3838
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
RSO MODIFYING FACTORS (SURFACE)
Parameter Unit Dec 2015 Dec 2014
Mineral Resource pay limit g/t 0.26 0.31
Mineral Reserve pay limit g/t 0.29 0.33
Mined value g/t 0.34 0.38
Plant recovery factor % 60 61
GOLD MINERAL RESERVE CLASSIFICATION
Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014
Underground
Proved 6.8 10.1 4.7 4.8 1,014 1,555
Probable AI 3.1 1.8 4.6 4.9 457 286
Total above infrastructure 9.8 11.9 4.7 4.8 1,471 1,841
Probable BI
Total underground 9.8 11.9 4.7 4.8 1,471 1,841
Surface – TSFs
Proved 4.7 7.3 0.3 0.4 52 86
Probable 2.2 0.4 28
Total surface 4.7 9.4 0.3 0.4 52 114
Total gold Mineral Reserves 14.5 21.3 3.3 2.8 1,523 1,955
GOLD GRADE TONNAGE CURVEThe grade tonnage curve represents undiluted grade (at block width) and tons within the total Mineral Resources (all reefs at zero cut-off).
MODIFYING FACTORS (UNDERGROUND)
Parameter Unit Dec 2015 Dec 2014
Mineral Resource pay limit cm.g/t 970 860
Mineral Reserve pay limit cm.g/t 1,090 950
Mined value cm.g/t 1,150 1,039
Mine call factor (gold) % 79 79
Mine call factor (uranium) % 76 77
Block factor % 100 100
Shortfall % 0 1
Mining dilution % 17 28
Stoping width cm 188 160
Mill width cm 235 206
Plant recovery factor – gold UG % 95 96
Plant recovery factor –
uranium UG % 78 79
Tons GradeCut-off grade (cm.g/t)
Tons
(Mt)
Aver
age
valu
e ab
ove
cut o
ff (c
m.g
/t)
0
500
1000
1500
2000
2500
3000
3500
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,5002,0001,000 1,5005000
Cooke 1 processing plant feed
Sibanye Gold Mineral Resources and Mineral Reserves 2015 3939
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
COOKE CONTINUED
URANIUM MINERAL RESERVE CLASSIFICATION
Tons (Mt) Grade (kg/t) U3O8 (‘000 lb)
Uranium classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014
Underground
Proved 2.7 4.1 0.348 0.379 2,056 3,388
Probable AI 1.5 0.5 0.314 0.369 1,017 439
Total above infrastructure 4.2 4.6 0.336 0.378 3,073 3,827
Probable BI
Total uranium Mineral Reserves 4.2 4.6 0.336 0.378 3,073 3,827
GOLD MINERAL RESERVES PER MINING AREA
Proved Mineral Reserves Probable Mineral ReservesTotal Mineral Reserves
31 Dec 2015Total
Dec 14
Mining areaTons (Mt)
Grade (g/t)
Gold (‘000 oz)
Tons (Mt)
Grade (g/t)
Gold (‘000 oz)
Tons (Mt)
Grade (g/t)
Gold (‘000 oz)
Gold (‘000 oz)
1 Shaft 0.5 7.4 111 0.0 2.1 1 0.5 7.2 112 134
2 Shaft 0.9 6.1 179 0.2 8.4 60 1.1 6.5 239 353
3 Shaft 3.3 4.6 493 0.8 3.1 76 4.1 4.3 569 669
4 Shaft 2.0 3.5 232 2.1 4.8 320 4.1 4.2 551 685
Total underground 6.8 4.7 1,014 3.1 4.6 457 9.8 4.7 1,471 1,841
RSO TSFs 4.7 0.3 52 4.7 0.3 52 114
Total gold Mineral Reserves 11.5 2.9 1,066 3.1 4.6 457 14.5 3.3 1,523 1,955
URANIUM MINERAL RESERVES PER MINING AREA
Proved Mineral Reserves Probable Mineral ReservesTotal Mineral Reserves
31 Dec 2015Total
Dec 14
Mining areaTons (Mt)
Grade (kg/t)
U3O8 (‘000 lb)
Tons (Mt)
Grade (kg/t)
U3O8 (‘000 lb)
Tons (Mt)
Grade (kg/t)
U3O8 (‘000 lb)
U3O8
(‘000 lb)
1 Shaft
2 Shaft
3 Shaft 1.6 0.360 1,233 1.0 0.290 622 2.5 0.333 1,855 2,001
4 Shaft 1.1 0.330 823 0.5 0.360 394 1.6 0.340 1,218 1,826
Total underground 2.7 0.348 2,056 1.5 0.314 1,017 4.2 0.336 3,073 3,827
RSO TSFs
Total uranium Mineral Reserves 2.7 0.348 2,056 1.5 0.314 1,017 4.2 0.336 3,073 3,827
Cooke processing plant gold pour
Sibanye Gold Mineral Resources and Mineral Reserves 2015 4040
SECTION 2 THE COOKE OPERATION NEXTBACKPRINTHOME
GOLD MINERAL RESERVE RECONCILIATION AT 31 DECEMBER 2015
Factors Moz
31 December 2014 1.955
2015 Depletion (0.216)
Post-depletion 1.739
Geological changes (0.025)
General inclusions (white areas) 0.028
General exclusions (pay limit) (0.230)
Evaluation 0.047
Technical factors (0.012)
Surface exclusions (0.025)
31 December 2015 1.523
URANIUM MINERAL RESERVE RECONCILIATION AT 31 DECEMBER 2015
Factors Mlb
31 December 2014 3.827
2015 Depletion (0.291)
Post-depletion 3.536
General exclusions (pay limit) (0.463)
31 December 2015 3.073
Gold Mineral Reserve reconciliation
Dec
2014
2015
Dep
letio
n
Geol
ogic
al c
hang
es
Whi
te a
reas
Pay l
imit
Eval
uatio
n
Tech
nica
l fac
tors
Surfa
ce s
ourc
es
Dec
2015
(216) 47(12) (25)(230)
28(25)
Gold
(’00
0oz)
0
500
1,000
1,500
2,000 1,9551,739
1,523Po
st-d
eple
tion
Uranium Mineral Reserve reconciliation
Dec
2014
2015
Dep
letio
n
Pay l
imit
Dec
2015
(463)(291)
U 3O 8 (’00
0lb)
0500
1,0001,5002,0002,5003,0003,5004,000 3,827
3,5363,073
Post
-dep
letio
n
PRODUCTION AND HOISTING CAPACITIES
Mining unit Operating shaftOperational hoisting
capacity (ktpm)*Planned production
(ktpm)
1 1 15 10
1 2 28 19
2 3 54 49
3 4 56 49
3 4 SV Decommissioned
RSO TSF 400** 400* Planned production is five-year hoisted average from C2016 onwards
** Reclamation capacity
PLANT CAPACITIES
PlantDesign capacity
(ktpm)Current operational
capacity (ktpm)Average recovery
factor (%) Material treated
Doornkop 80 56 95.4 UG
Ezulwini gold* 200 150 95.1 UG
Ezulwini uranium 100 50 78.2 UG
Cooke 400 400 60.4 TSF
* Ezulwini gold plant capacity is inclusive of the 100ktpm uranium plant tails
CURRENT LOM ESTIMATED TO SUSTAIN OPERATION UNTIL 2023, A FURTHER 8 YEARS
Sibanye Gold Mineral Resources and Mineral Reserves 2015 4141
SECTION 2 THE COOKE OPERATIONNEXTBACKPRINTHOME
Driefontein started production in 1952 and is officially the most prolific gold mine, having produced more than 108Moz of gold over the past 63 years. The current Mineral Reserves are estimated to sustain the
operation until 2042.
DRIEFONTEIN
Driefontein 2 ventilation shaft
4242 Sibanye Gold Mineral Resources and Mineral Reserves 2015
SECTION 2 THE DRIEFONTEIN OPERATION NEXTBACKPRINTHOME
EX-BLYVOORUITZICHT
HARMONY RSO
RSO
RSOC123
C123
HARMONY
ANGLOGOLD
Fochville
KLOOF
COOKE 4
Westonaria
COOKE 123
Randfontein
Carletonville
DRIEFONTEIN
CoordinatesLatitude: 26° 24’00”SLongitude: 27° 30’00”E
ZUURBEKOM PR TO BE INCLUDED INTOCOOKE 123
WRTRP
EXTENSION OFDRIEFONTEIN MR
WRTRP
WRTRP
Mining Right (MR)Section 102 applicationTownsNational roadsArterial roadsMain roads
Gauss Conform Projection Central Meridian 27°
0 5kmT N
WRTRP
GOLD FIELDS
LOCATION
OVERVIEWDriefontein is a large, established, shallow to ultra-deep-level gold mine, operating under a Mining Right [DMR Ref. GP30/5/1/2/2(51)MR] valid from 30 January 2007 to 29 January 2037 covering a total area of 8,561ha.
Geographically, Driefontein is located in the West Wits Line Goldfield of the Witwatersrand Basin, near Carletonville, approximately 70km west of Johannesburg in the Gauteng province of South Africa. Topography is characterised by moderately undulating plains, classified as Bankenveld, consisting of grassland with livestock farming widespread in the surrounding areas.
The current mine infrastructure consists of six producing shaft complexes that mine open ground and pillars (white areas), with the deepest operating level currently some 3,420m below surface (50 Level at 5 Shaft), and three gold processing plants. The principal mining takes place on the Carbon Leader Reef (CLR), which constitutes almost 67% of the Mineral Reserves, the VCR 29%, the Middelvlei Reef (MVR) 3% and the remainder from surface sources.
Gold Mineral Resources 19.786Moz (-14% post-production depletion of 0.589Moz)
Gold Mineral Reserves 8.196Moz (+21% post-production depletion of 0.581Moz)
Strategic intent
• Extend the LoM
• Stabilise production profiles at current performance levels
• Reduce pay limits through quality mining and cost reduction
• 1 Shaft pillar extraction PFS completed
• 5 Shaft drop-down PFS completed and development commenced
• Target secondary reefs on an incremental basis above infrastructure
Driefontein 1 Shaft
Sibanye Gold Mineral Resources and Mineral Reserves 2015 4343
SECTION 2 THE DRIEFONTEIN OPERATIONNEXTBACKPRINTHOME
SCHEMATIC 3D SECTION THROUGH THE DRIEFONTEIN OREBODY LOOKING NORTH
DRIEFONTEIN OVERVIEW
Mineralisation style Palaeo-placer
Mineralisation characteristics • Hosted by auriferous and uraniferous quartz pebble conglomerates (reefs)
• Laterally continuous with relatively long-range predictability
• Clear patterns of mineralisation governed by sedimentary characteristics
Deposit type Auriferous and uraniferous quartz pebble conglomerates, hosted by the VCR and Main Conglomerate Formation, CLR and MVR, of the Central Rand Group
Licence status and holdings Driefontein has a new order mining right in terms of the MPRDA, valid from 30 January 2007 to 29 January 2037 in respect of a mining area totalling 8,561ha. All required operating permits have been obtained, and are in good standing
Infrastructure Six shaft complexes (five sub-shafts and one tertiary shaft)
Mining methods Scattered stoping, mini-longwall stoping with closely spaced dip pillars (140m x 40m and 130m x 30m regional pillars) and surface rock-dump mining
Mineral processing Three gold processing plants and a centralised elution and carbon treatment facility at the No. 1 Plant:
• No. 1 CIP Plant: processing underground ore and low-grade surface rock dump material
• No. 2 CIP Plant: processing only low-grade surface rock dump material
• No. 3 CIL Plant: processing only low-grade surface rock dump material
Tailings disposal Three TSFs with LoM deposition estimated at 40.1Mt against a combined capacity of 94.5Mt (surplus 54.4Mt)
Climate No extreme climate conditions are experienced that may affect mining operations
Environmental/Health and Safety Driefontein’s systems, procedures and training are in line with international best practice
Life of Mine It is estimated that the current Mineral Reserves will sustain the operation until 2042 (for 27 years)
DRIEFONTEIN CONTINUED
T N
Sibanye Gold Mineral Resources and Mineral Reserves 2015 4444
SECTION 2 THE DRIEFONTEIN OPERATION NEXTBACKPRINTHOME
Competent Persons The Competent Persons at each MU designated in terms of SAMREC, who take responsibility for the consolidation, reporting and overall compliance of Driefontein’s Mineral Resources and Mineral Reserves are the respective Mineral Resource Managers:
MU1: 1 Shaft Mr C Labuschagne [GDE Mining Eng. BSc (Hon) Geology. MSc. Env. Management] is a registered SACNASP member (No. 400237/08) and has 18 years’ experience
MU2: 2 & 4 Shafts Mr M Tandree [ND Mine Surveying; MSCC; GDE Mining] is a registered SAIMM member (No. 706330) and has 18 years’ experience
MU3: 6 & 8 Shafts Mr C Dewey [ND Mine Survey, MSCC, GDE (Mining Engineering), MSc. Eng (Mining Engineering)] is a registered PLATO member (PMS0234) and has 41 years’ experience
MU4: 5 Shaft Mr J du Plessis [MSc. (Mining Engineering), GDE Mining Engineering NHD Mine Surveying, MSCC] is a registered PLATO member (PMS0145) and has 36 years’ experience
Compliance Internal technical reviews have been conducted by the Competent Persons who gave their consent for the disclosure of the C2015 Mineral Resource and Mineral Reserve Statement. All have sufficient experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye.
REVIEWThe Mineral Resources at Driefontein decreased by 3.095Moz (14%) from the previous year.
The Mineral Reserves increased overall by 0.842Moz (11%). This increase is mainly a result of the inclusion of white areas (0.538Moz) that have, since the previous C2015 LoM plan, been investigated for their economic potential.
Mineral Reserve development will remain a key performance indicator for C2016. The following table details the development advanced for the last 12 months to December 2015 C2014 added for comparison). A total of 15.7km was developed in C2015 of which 3.2km was on-reef.
A full account of all the operating statistics of Driefontein is posted on the back of the Driefontein shareholders plan, attached at the end of this Mineral Resources and Mineral Reserves Report.
ANNUAL DEVELOPMENT RESULTS
Financial year total
Category Unit CL VCR MR 2015 2014
Main development (advanced) km 6.836 5.102 3.766 15.7 17.4
Main on-reef development (advanced) km 1.638 0.841 0.763 3.2 3.9
Channel width cm 89 54 79 78 72
Average reef value g/t 18.2 34.3 9.1 18.9 19.7
cm.g/t 1,621 1,852 717 1,468 1,415
Surface rock dump 12 at DriefonteinSurface rock dump 2
Sibanye Gold Mineral Resources and Mineral Reserves 2015 4545
SECTION 2 THE DRIEFONTEIN OPERATIONNEXTBACKPRINTHOME
KEY DEVELOPMENTS AND BROWNFIELD PROJECTS (ON-MINE)The following projects are ongoing and have been included in the LoM:
• The 1 Shaft Pillar Extraction Project PFS, completed by Royal HaskoningDHV in 2013, is included in the LoM production plan. It is planned to finalise the FS for this project over the next two years, as investigations are hampered by ventilation constraints for the sub vertical SV area.
• The FS for the Driefontein 5 Shaft drop-down project (below 50 Level) was approved in November 2015, and it is planned to commence with the development in C2016. The mine design on the target levels has been extended towards the Driefontein mining boundary, resulting in additional Mineral Reserves of 1.0Moz.
• The SRDs at Driefontein are expected to be depleted in C2017. As a result, detailed studies are underway to utilise the Driefontein Surface Plant infrastructure for the first phase of the WRTRP.
DRIEFONTEIN CONTINUED
KEY PLAN TO MINING UNITS (SHAFT ZONES)
2 Shaft8 Shaft
6 Shaft10 Shaft 1 Shaft
4 Shaft
5 Shaft
6T Shaft
0 2.5km1kmT N
GOLD MINERAL RESOURCE CLASSIFICATION (REPORTED INCLUSIVE OF MINERAL RESERVES)
Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014
Underground
Measured 18.9 21.5 10.7 11.9 6,503 8,229
Indicated AI 7.5 10.5 12.7 12.1 3,053 4,088
Indicated BI 28.0 29.5 10.9 10.2 9,821 9,684
Inferred AI 0.7 1.1 14.6 16.0 314 550
Inferred BI 0.7 9.4 204
Total underground 55.0 63.2 11.1 11.2 19,691 22,755
Total above infrastructure 27.0 33.1 11.4 12.1 9,870 12,867
Total below infrastructure 28.0 30.1 10.9 10.2 9,821 9,888
Surface
Indicated surface rock dump 4.6 6.8 0.6 0.6 94 125
Total gold Mineral Resources 59.6 70.0 10.3 10.2 19,786 22,880
Driefontein 8 Shaft headgear
Sibanye Gold Mineral Resources and Mineral Reserves 2015 4646
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
VENTERSDORP CONTACT REEF
0 2.5km1kmT N
MIDDELVLEI REEF
CARBON LEADER REEF
Legend ClassificationShaftsMined-out areasCLR subcropPillars
MeasuredIndicatedInferred
0 2.5km1kmT N
0 2.5km1kmT N
Legend ClassificationShaftsMined-out areasVCR subcropPillars
MeasuredIndicatedInferred
Legend ClassificationShaftsMined-out areasMVR subcropPillars
MeasuredIndicatedInferred
Gold Mineral Resource reconciliation
Dec
2014
2015
Dep
letio
n
post
-dep
letio
n
Estim
atio
n an
d ge
olog
y
Mod
ellin
g
Payli
mit
Surfa
ce s
ourc
es
Dec
2015
(668)(2,529)
22,212
(199)253 48
Gold
(’00
0oz)
0
5,000
10,000
15,000
20,000
25,000 22,88019,786
Sibanye Gold Mineral Resources and Mineral Reserves 2015 4747
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
GOLD MINERAL RESERVE CLASSIFICATION
Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014
Underground
Proved AI 17.9 12.1 7.2 7.0 4,133 2,716
Probable AI 8.6 14.4 6.7 7.3 1,846 3,387
Total above infrastructure 26.4 26.6 7.0 7.1 5,980 6,103
Probable BI 9.1 5.5 7.3 6.3 2,122 1,126
Total underground 35.5 32.1 7.1 7.0 8,102 7,228
Surface
Probable surface rock dump 4.6 6.8 0.6 0.6 94 125
Total gold Mineral Reserves 40.1 38.9 6.4 5.9 8,196 7,354
GOLD MINERAL RESERVES PER MINING AREA
Proved Mineral Reserves Probable Mineral ReservesTotal Mineral Reserves
31 Dec 2015Total
Dec 14
Mining areaTons (Mt)
Grade (g/t)
Gold (‘000 oz)
Tons (Mt)
Grade (g/t)
Gold (‘000 oz)
Tons (Mt)
Grade (g/t)
Gold (‘000 oz)
Gold (‘000 oz)
1 Shaft 2.2 8.6 599 0.0 3.7 5 2.2 8.5 604 684
1 SV Shaft Pillar 2.7 7.2 616 2.7 7.2 616 536
2 Shaft 1.3 7.5 327 0.2 3.3 22 1.6 7.0 350 459
4 Shaft 2.5 9.3 752 1.8 8.0 449 4.3 8.8 1,201 1,350
5 Shaft 6.2 7.0 1,404 2.6 7.0 582 8.8 7.0 1,985 2,286
5 Shaft drop-down 9.1 7.3 2,122 9.1 7.3 2,122 1,126
6 Shaft 1.3 7.6 306 0.2 5.0 33 1.5 7.2 339 304
8 Shaft 4.4 5.3 746 1.1 3.9 139 5.5 5.0 886 483
Total underground 17.9 7.2 4,133 17.6 7.0 3,968 35.5 7.1 8,102 7,228
Surface
Surface rock dumps 4.6 0.6 94 4.6 0.6 94 125
Total gold Mineral Reserves 17.9 7.2 4,133 22.2 5.7 4,063 40.1 6.4 8,196 7,354
The Mineral Reserves increased overall by 0.842Moz (11%). This increase is mainly a result of the inclusion of white areas (0.538Moz) that have been investigated for their economic potential since the previous C2015 LoM plan.
DRIEFONTEIN CONTINUED
MODIFYING FACTORS
Parameter Unit Dec 2015 Dec 2014
Mineral Resource pay limit cm.g/t 1,210 1,170
Mineral Reserve pay limit cm.g/t 1,330 1,280
Mined value cm.g/t 1,654 1,726
Mine call factor % 86 86
Block factor % 100 100
Shortfall % 11 12
Mining dilution % 24 35
Stoping width cm 155 158
Mill width cm 203 214
Plant recovery factor UG % 97 97
Plant recovery factor SRD % 81 86
Tons
(Mt)
Tons Grade
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
0
50
100
150
200
250
300
350
400
450
Avar
age
valu
e ab
ove
cut-
off (
cm.g
/t)
Cut-off grade (cm.g/t)2,5002,0001,000 1,5005000
GOLD GRADE TONNAGE CURVEThe grade tonnage curve represents undiluted grade (at block width) and tons within the total Mineral Resources (all reefs at zero).
Sibanye Gold Mineral Resources and Mineral Reserves 2015 4848
SECTION 2 THE DRIEFONTEIN OPERATION NEXTBACKPRINTHOME
GOLD MINERAL RESERVE RECONCILIATION AT 31 DECEMBER 2015
Factors Moz
31 December 2014 7.354
2015 Depletion (0.581)
Post depletion 6.773
Geological changes 0.010
White areas 0.751
5 Shaft drop-down additions 1.016
Change in average mining value (0.792)
Changes in modifying factors 0.390
Surface additions 0.049
31 December 2015 8.196
Gold Mineral Reserve reconciliation
Dec
2014
2015
Dep
letio
n
Post
-dep
letio
n
Geol
ogic
al c
hang
es
Whi
te a
reas
5 Sh
aft d
ropd
own
chan
ges
Chan
ges
in a
vera
ge m
inin
g va
lue
Tech
nica
l fac
tors
Surfa
ce s
ourc
es
Dec
2015
(581)10 (792)
751 1,061 390 49
Gold
(’00
0oz)
01,0002,0003,0004,0005,0006,0007,0008,0009,000
10,000
7,3546,773
8,196
PLANT CAPACITIES
PlantDesign capacity
(ktpm)Current operational
capacity (ktpm)Average recovery
factor (%) Material treated
1 (CIP) 240 240 97.3 UG/SRD
2 (CIP) 200 180 80.5 SRD
3 (CIL) 115 100 81.7 SRD
HOISTING AND PRODUCTION CAPACITIES
Mining unit Operating shaftOperational hoisting
capacity (ktpm)Planned production
(ktpm)*
1 1 105 37
1 1 SV 105 37
1 1 T 121 37
2 2 165 108
2 4 SV 57 31
3 6 SV 26 14
3 8 60 42
4 5 N/A N/A
4 5 SV 159 67
* Planned production is five-year hoisted average from C2016 onwards
CURRENT LOM ESTIMATED TO SUSTAIN OPERATION UNTIL 2042, A FURTHER 27 YEARS
Sibanye Gold Mineral Resources and Mineral Reserves 2015 4949
SECTION 2 THE DRIEFONTEIN OPERATIONNEXTBACKPRINTHOME
Kloof, a mature operation with a safe operational blueprint, remains a world-class asset and will continue to add value to all its stakeholders for many years to come.
Kloof’s current Mineral Reserve is estimated as sufficient to sustain the operation until 2033.
KLOOF
Kloof 8 Shaft
5050 Sibanye Gold Mineral Resources and Mineral Reserves 2015
SECTION 2 THE KLOOF OPERATION NEXTBACKPRINTHOME
COOKE 123
COOKE 4
DRIEFONTEIN
CoordinatesLatitude: 26° 24’00”SLongitude: 27° 36’00”E
EX-BLYVOORUITZICHT
Westonaria
Randfontein
Carletonville
Fochville
KLOOF
Gauss Conform Projection Central Meridian 27°
0 5km
Mining RightSection 102 applicationTownsNational roadsArterial roadsMain roads
ZUURBEKOM PRTO BE INCLUDED INCOOKE 123
EXTENSION OFKLOOF MR
EXTENSION OFKLOOF MR
T N
HARMONY
HARMONY
WRTRP
WRTRP
WRTRP
GOLD FIELDS
ANGLOGOLD
RSO
OVERVIEWKloof is an established, shallow to ultra-deep-level gold mine, operating under Mining Right [DMR Ref. GP30/5/1/2/2(66)MR] valid from 30 January 2007 to 29 January 2027 covering a total area of 20,087ha. Kloof is located in the West Wits Line Goldfield of the Witwatersrand Basin, near Westonaria in the Gauteng province of South Africa. The topography is characterised by moderately undulating plains, consisting mainly of grassland.
Kloof, in its current form, dates from April 2000 when the Venterspost (1939), Libanon (1945), Kloof (1968) and Leeudoorn (1993) Mines were amalgamated. The current mine infrastructure consists of five producing shaft complexes that mine open ground and pillars (white areas), with the deepest operating level some 3,347m below surface (45 Level at 4 Shaft), and two gold processing plants. The principal mining takes place on the VCR, which constitutes almost 81% of the underground Mineral Reserve ounces, the MVR amounts to 6% and the remainder is made up from the Kloof Reef (KR) at 9% and the Libanon Reef (LR) at 2%. Surface operations provide 2% to the total mined.
Gold Mineral Resources 28.2Moz (-3.9% post-production depletion of 0.572Moz)
Gold Mineral Reserves 6.5Moz (+2% post-production depletion of 0.456Moz)
Strategic intent
• Extend the LoM
• Stabilise production profiles at current performance levels
• Reduce pay limits through quality mining and cost reduction
• 4 Shaft drop-down project has commenced
• Target secondary reefs on an incremental basis above infrastructure
LOCATION
Sibanye Gold Mineral Resources and Mineral Reserves 2015 5151
SECTION 2 THE KLOOF OPERATIONNEXTBACKPRINTHOME
KLOOF CONTINUED
SCHEMATIC 3D SECTION THROUGH THE KLOOF OREBODY LOOKING NORTH-NORTH-EAST
KLOOF OVERVIEW
Mineralisation style Palaeo-placer
Mineralisation characteristics • Hosted by auriferous and uraniferous, quartz pebble conglomerates (reefs)
• Laterally extensive with relatively long-range predictability
• Clear patterns of mineralisation, governed by sedimentary characteristics
Deposit type Auriferous and uraniferous quartz pebble conglomerates hosted by the VCR, KR and LR of the Elsburg and Kimberley Conglomerate Formations and the MVR of the Main Conglomerate Formation
Licence status and holdings Kloof has a new order mining right in terms of the MPRDA, valid from 30 January 2007 to 29 January 2027 in respect of a mining area totalling 20,087ha. All required operating permits have been obtained, and are in good standing
Based on the current LoM and prevailing economic conditions, if needed, Kloof will ask for an extension of the mining right through a renewal application at the specified time
The Kloof operation also holds a prospecting right [DMR Ref. GP (10096)PR] in respect of a small area (25ha) confined within the Kloof mining right. Kloof has submitted a Section 102 application to amend Kloof’s mining right through the inclusion of the prospecting right
Infrastructure Five shaft complexes (five sub-shafts and one tertiary shaft)
Mining method Scattered stoping, mini-longwall stoping with closely spaced dip pillars (110 x 40m and 100 x 35m regional pillars) and surface rock-dump mining
T N
Sibanye Gold Mineral Resources and Mineral Reserves 2015 5252
SECTION 2 THE KLOOF OPERATION NEXTBACKPRINTHOME
Mineral processing Two gold plants and a centralised elution and carbon treatment facility at the No. 2 Plant:
• No. 1 CIP Plant – processing primarily low-grade surface rock dump material
• No. 2 CIP Plant – processing primarily underground ore
Tailings disposal Two TSFs with LoM deposition estimated at 32.8Mt against a combined capacity of 61.6Mt (surplus of 28.8Mt)
Climate No extreme climatic conditions are experienced that may affect mining operations
Environmental/Health and Safety Kloof’s systems, procedures and training are on par with international best practice
Life of Mine It is estimated that the current Mineral Reserves will sustain the operation until 2033 (for 18 years)
Competent Persons The Competent Persons per MU designated in terms of SAMREC, that take responsibility for the consolidation, reporting and overall compliance of Kloof’s Mineral Resources and Mineral Reserves are the respective Mineral Resource Managers:
MU1: Main Mr S Louw [MMCC] is a registered SAIMM member (No. 707018) and has 34 years’ experience
MU2: 7 Shaft and 8 Shafts Mr M Dekeda [BTech. MRM, MSCC] is a registered SAIMM member (No. 703902) and has 14 years’ experience
MU3: 3 Shaft Mr K Sibeko [ND Economic Geology; BSc. (Hon) Geology] is a registered GSSA member (No. 964872) and has 16 years’ experience
MU4: 4 Shaft Mr JH Engelbrecht [GDE Mining Engineering NHD Mine Surveying, MSCC] is a registered SAIMM member (No. 706905) and has 33 years’ experience
Compliance Internal technical reviews have been conducted by the Competent Persons listed who gave their consent for the disclosure of the C2016 Mineral Resource and Mineral Reserve Statement. All have appropriate experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye
REVIEWGold Mineral Resources at Kloof decreased by approximately 1.143Moz (-3.89%) to 28.186Moz post a production depletion of 0.572Moz. The greatest influence to the year-on-year change is mainly due to pay limit adjustment.
Gold Mineral Reserves decreased by 0.354Moz (5%) to 6.546Moz following a depletion of 0.456Moz. The decrease is as a result of the accumulation of modifying factors rather than due to one particular factor. Gold Mineral Reserve development will remain a key performance indicator for C2016.
A full account of all the operating statistics of Kloof is posted on the back of the Kloof shareholders plan attached at the end of this Mineral Resources and Mineral Reserves Supplement.
The table below details the development advanced for the last 12 months to December 2015 (C2014 numbers added for comparison). A total of 17.9km was developed in C2015 of which 4.3km was on-reef.
ANNUAL DEVELOPMENT RESULTS
Financial year total
Category Unit VCR MVR LR KR C2015 C2014
Main development (advanced) km 11.3 3.4 0.7 2.5 17.9 18.7
Main on-reef development (advanced) km 2.5 0.6 0.3 0.9 4.3 4.0
Channel width cm 110 120 163 154 125 118
Average reef value g/t 23.0 7.4 2.6 6.6 14.6 14.1
cm.g/t 2,539 885 421 1,012 1,824 1,664
Kloof 8 Shaft headgear and processing plant feed
Sibanye Gold Mineral Resources and Mineral Reserves 2015 5353
SECTION 2 THE KLOOF OPERATIONNEXTBACKPRINTHOME
Venterspost
10 Shaft
BBEEBA
EBA1
4 Shaft EXT
KEA
3 Shaft (P)3 Shaft (I)
3 Shaft (3D)
7 Shaft
55Decline4
Shaf
t
2 SV
Sha
ft
Mai
n Sh
aft
8 Sh
aft
9 Sh
aft
Mai
n1S
V Sh
aft
KEY PLAN TO MINING UNITS (SHAFT ZONES)
0 2.5km1kmT N
KEY DEVELOPMENTS AND BROWNFIELD PROJECTS (ON-MINE)The following projects have been included in the Kloof LoM:
• Kloof have commenced with the development of the Kloof 4 Shaft depth extension project during C2015. It is planned to intersect reef during C2021.
• A major exploration programme, targeting the KR and MVR at Main and 8 Shafts, has resulted in additional Mineral Reserves of ~0.166Moz.
• The Eastern Boundary Area (EBA) Project, included in the Mineral Resources, embodies a significantly high grade opportunity in the area below 7 Shaft. Various studies conducted since the 1990s indicated that the EBA project can be economically viable, and requires further study.
• A study to optimise the extraction of the SRD resources is underway. The intention is to improve the economic viability of SRDs that are a distance from the processing plants.
GOLD MINERAL RESOURCE CLASSIFICATION (REPORTED INCLUSIVE OF MINERAL RESERVES)
Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014
Underground
Measured 14.4 20.7 13.4 14.5 6,196 9,618
Indicated AI 1.2 1.9 12.4 12.6 468 775
Indicated BI 24.6 19.2 14.2 13.8 11,246 8,538
Inferred BI 16.4 19.0 19.2 16.7 10,112 10,175
Total underground 56.6 60.7 15.4 14.9 28,023 29,106
Total above infrastructure 15.5 22.6 13.3 14.3 6,664 10,393
Total below infrastructure 41.0 38.1 16.2 15.3 21,359 18,713
Surface
Indicated surface rock dump 9.5 13.1 0.5 0.5 163 223
Total gold Mineral Resources 66.1 73.8 13.3 12.4 28,186 29,329
KLOOF CONTINUED
Kloof 4 Shaft
Sibanye Gold Mineral Resources and Mineral Reserves 2015 5454
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
VENTERSDORP CONTACT REEF
Legend
Classification
ShaftsMine BoundaryMined-out areasVCR SubcropPillars
MeasuredIndicatedInferred
KLOOF REEF
Legend
Classification
ShaftsMine BoundaryMined-out areasKR SubcropPillars
MeasuredIndicatedInferred
0 2.5km1kmT N
MIDDELVLEI REEF
Legend
Classification
ShaftsMine BoundaryMined-out areasMVR SubcropPillars
MeasuredIndicatedInferred
0 2.5km1kmT N
0 2.5km1kmT N
Gold Mineral Resource reconciliation
Dec
2014
2015
Dep
letio
n
Estim
atio
n an
d ge
olog
y
Geol
ogic
al s
truct
ure
Mod
ellin
g
Payli
mit
Surfa
ce s
ourc
es
Dec
2015
(620) (3)56
(13)250
(815)
Gold
(’00
0oz)
05,000
10,00015,00020,00025,00030,000 29,329 28,710 28,186
Post
-dep
letio
n
Sibanye Gold Mineral Resources and Mineral Reserves 2015 5555
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
KLOOF CONTINUED
GOLD MINERAL RESERVE CLASSIFICATION
Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold classification Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014
Underground
Proved 19.6 11.3 7.7 8.1 4,857 2,932
Probable AI 4.6 12.8 6.9 7.9 1,024 3,243
Total above infrastructure 24.2 24.1 7.6 8.0 5,881 6,175
Probable BI 2.1 2.1 7.4 7.9 502 532
Total underground 26.3 26.2 7.5 8.0 6,383 6,706
Surface
Probable surface rock dump 9.5 10.3 0.5 0.6 163 194
Total gold Mineral Reserves 35.8 36.5 5.7 5.9 6,546 6,900
GOLD MINERAL RESERVES PER MINING AREA
Proved Mineral Reserves Probable Mineral ReservesTotal Mineral Reserves
31 Dec 2015Total
Dec 14
Mining areaTons (Mt)
Grade (g/t)
Gold (‘000 oz)
Tons (Mt)
Grade (g/t)
Gold (‘000 oz)
Tons (Mt)
Grade (g/t)
Gold (‘000 oz)
Gold (‘000 oz)
Main Shaft SV 1 3.4 3.7 411 3.4 3.7 411 504
Main Shaft SV 2 3.9 9.3 1,162 0.2 6.2 35 4.1 9.2 1,197 1,292
3 Shaft 2.7 10.1 881 0.5 2.8 48 3.2 8.9 929 983
4 Shaft 7.2 7.7 1,796 3.7 7.6 897 10.9 7.7 2,694 2,809
4 Shaft drop-down 2.1 7.4 502 2.1 7.4 502 532
7 Shaft 1.2 6.8 267 0.1 12.0 22 1.3 7.0 290 492
8 Shaft 1.1 9.4 340 0.1 5.3 21 1.2 9.0 361 95
Total underground 19.6 7.7 4,857 6.7 7.1 1,526 26.3 7.5 6,383 6,706
Surface
Surface rock dumps 9.5 0.5 163 9.5 0.5 163 194
Total gold Mineral Reserves 19.6 7.7 4,857 16.2 3.2 1,689 35.8 5.7 6,546 6,900
MODIFYING FACTORS
Parameter Unit Dec 2015 Dec 2014
Mineral Resource pay limit cm.g/t 1,430 1,610
Mineral Reserve pay limit cm.g/t 1,580 1,770
Mined value cm.g/t 1,912 2,065
Mine call factor % 82 82
Block factor % 100 100
Shortfall % 17 17
Mining dilution % 23 34
Stoping width cm 161 160
Mill width cm 209 213
Plant recovery factor UG % 98 98
Plant recovery factor SRD % 90 90
Tons
(Mt)
Avar
age
valu
e ab
ove
cut-
off (
cm.g
/t)
2,5002,0001,000500 1,5000
Tons GradeCut-off grade (cm.g/t)
0
100
200
300
400
500
600
700
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
GOLD GRADE TONNAGE CURVEThe grade tonnage curve represents undiluted grade (at block width) and tons within the total Mineral Resources (all reefs at zero cut-off).
Sibanye Gold Mineral Resources and Mineral Reserves 2015 5656
SECTION 2 THE KLOOF OPERATION NEXTBACKPRINTHOME
GOLD MINERAL RESERVE RECONCILIATION AT 31 DECEMBER 2015
Factors Moz
31 December 2014 6.900
2015 Depletion (0.456)
Post depletion 6.444
Geological changes (0.147)
Secondary reefs 0.166
Inclusion of white areas 0.121
Evaluation (0.067)
Technical factors 0.012
Surface additions 0.017
31 December 2015 6.546
(456) (147) (67)121 12 17
Gold Mineral Reserve reconciliation
Dec
2014
2015
Dep
letio
n
Geol
ogic
al c
hang
es
Seco
ndar
y ree
fs
Whi
te a
reas
Eval
uatio
n
Tech
nica
l fac
tors
Surfa
ce s
ourc
es
Dec
2015
Gold
(’00
0oz)
01,0002,0003,0004,0005,0006,0007,0008,000
6,9006,444 6,546166
Post
-dep
letio
n
HOISTING AND PRODUCTION CAPACITIES
Mining unit Operating shaftOperational hoisting
capacity (ktpm)Planned production
(ktpm)*
1 Main 100 85
2 7 32 21
2 8 15 12
3 3 55 41
4 4 82 55
* Planned production is five-year hoisted average from C2016 onwards
PLANT CAPACITIES
PlantDesign capacity
(ktpm)Current operational
capacity (ktpm)Average recovery
factor (%)Material treated
1 (CIP) 180 180 91.6 Primarily SRD
2 (CIP) 120 165 97.7 Primarily UG
CURRENT LOM ESTIMATED TO SUSTAIN OPERATION UNTIL 2033, FOR A FURTHER 18 YEARS
Sibanye Gold Mineral Resources and Mineral Reserves 2015 5757
SECTION 2 THE KLOOF OPERATIONNEXTBACKPRINTHOME
In achieving the aim of growing Sibanye’s Mineral Reserves and commodity production, the focus is on
high-quality targets and opportunities. Projects that enhance value are being assessed from the large
Mineral Resource base.
PROJECTS
Surface drill rig
Since the inorganic growth of 2014, Sibanye has a large endowment of brownfields projects that are at various stages of evaluation, from early stage scoping studies to FS that can be underpinned by leveraging synergies off existing infrastructure. Project evaluation criteria have been developed to guide the Mineral Resource and Mineral Reserve estimations, in the hope of acquiring a fundamental understanding of the potential of each project to extract optimal value.
In line with Sibanye’s strategy, steps to improve the quality of assets through delivery on major advanced and growth projects is in progress and include:
• Project appraisal that underpins a focus on value creation and dividend yield rather than driven by growth
• An established in-house project assessment capacity
• The risk assessment, returns and the impact of financing on returns, for each project
5858
SECTION 2 OPERATIONS AND PROJECTS
Sibanye Gold Mineral Resources and Mineral Reserves 2015
NEXTBACKPRINTHOME
Gold Mineral Resources 8.890Moz
Gold Mineral Reserves 1.799Moz
Strategic intent
• Develop a new mine from first principles, supported by existing, newly-built, plant and infrastructure
• Modifying the mining methods to suit the orebody
• Confirming areas with the
geological model
LOCATION
THE BURNSTONE PROJECT
BURNSTONE
Greylingstad
Balfour
Mining RightSection 102 ApplicationTownsArterial roadsMain roadsVertical shaftsDecline shaft
CoordinatesLatitude: 26° 39’00”SLongitude: 28° 40’12”E
Gauss Conform Projection Central Meridian 29°
0 5km2.5km
T N
OVERVIEWThe Burnstone Project (Burnstone), acquired in July 2014, is a project in execution. The completed FS was independently reviewed in November 2015, with finance approval for development to begin in C2016. The mine design and schedule in the FS was limited to the mineable reserves within a 3km radius of the shaft infrastructure. Extensive development will begin in C2016 with first gold production due in C2018 and full production run rate to be achieved in C2020.
The operation has a Mining Right [DMR Ref. MP30/5/1/2/2(248)MR] to mine and process gold, silver and aggregate, covering a total area of 13,135ha, and is valid from 17 February 2009 to 16 February 2027.
A section 102 application in line with the MPRDA to enlarge the Burnstone MR to 38,900ha, is pending execution.
Geographically, Burnstone is in the South Rand Goldfield of the Witwatersrand Basin next to the town of Balfour, approximately 75km east of Johannesburg in the Mpumalanga province of South Africa. Burnstone is accessed from the Johannesburg to Durban N3 highway via the Heidelberg South R23 road at the Balfour exit. The town of Balfour is located approximately 18km east of the N3. The Burnstone property is accessible via a network of unpaved roads, approximately 6.5km east of Balfour.
The Burnstone area forms part of the South African Highveld, situated 1,670m above mean sea level. Gently-undulating grassland terrain predominates in the areas not used for farming activities. The mild climate, with warm to hot, moist summers and cool dry winters is conducive to farming activities including maize, fodder and livestock farming, prevalent in the project area.
Sibanye purchased Witwatersrand Consolidated Gold Resources Limited (Wits Gold) and, additionally, aquired Southgold Exploration (Pty) Limited, the sole owner of the Burnstone assets in 2014. Two shaft complexes; a 3-leg decline and vertical shaft (shaft bottom at 495m below surface), a 125,000tpm gold processing plant, TSF and all the necessary equipment and services of a producing operation comprise the Burnstone infrastructure. Burnstone has been on care and maintenance since mid-2012. Under previous ownership, the mine produced approximately 38koz of gold.
The UK9 Reef of the Kimberley Formation, is the only known exploitable gold bearing reef.
Sibanye Gold Mineral Resources and Mineral Reserves 2015 5959
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
BURNSTONE PROJECT CONTINUED
SCHEMATIC 3D SECTION OF THE BURNSTONE OREBODY LOOKING NORTH
Intermediate Pump Station (IPC)
T N
PROJECT FUNDAMENTALSBurnstone lies within the Witwatersrand Basin and Archaean (2.7 billion year-old) sedimentary basin. The Basin is filled with approximately 14,000m sedimentary and subordinate volcanic rocks, which have been folded along a north-east to south-west axis into an asymmetrical synclinorium. The sediments consist mainly of quartzites and shales and less prevalent, but generally economically important, gold-bearing conglomeratic zones, which occur on regional unconformities. These are commonly referred to as reefs or placers.
Burnstone is located in the South Rand Basin, a subsidiary of the main Witwatersrand Basin. The gold-bearing target UK9 Reef of the Kimberley Formation, occurs in the Central Rand Group of rocks. This reef lies between the outcrop and a depth of 1,300m below surface in the mining right area. Structurally, the project area is located on the northern limb of the arcuate South Rand Basin, which is locally deformed by a east-north-east-plunging anticline and cut by east-west and north-south normal faults, formed in response to the stress regime corresponding to the main structural feature of the region, which is the east-west striking Sugarbush Fault. This fault is a left-lateral wrench fault, which comprises the northern boundary of the South Rand Basin at this point.
The UK9 Reef is stratigraphically split into the UK9a and UK9b members, and the UK9a is further laterally subdivided into either channel or inter-channel facies. The UK9a channel facies represents the primary mining horizon, while the UK9a inter-channel Facies and UK9b offer only local upside potential.
Sibanye Gold Mineral Resources and Mineral Reserves 2015 6060
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
Kimberley Reef in the South Rand Goldfields was first discovered in 1887 and soon led to the establishment of a few small operations that operated sporadically between 1892 and 1962 and collectively produced only 0.05Moz of gold at an average of 5.3g/t. A lack in continuity of grade and tonnage as well as structural complexity is commonly posed as the reason for the demise of these operations.
A steep rise in the gold price sparked renewed interest in the South Rand Goldfield and various major mining houses conducting fairly extensive exploration programmes between 1974 and 1993, but general low grades, notwithstanding at shallow depths, resulted in a poor ranking against rival projects elsewhere in the Witwatersrand Basin. As a consequence, none of these projects were advanced past the exploration phase.
Southgold drilled an additional 18 boreholes in 2002, prior to Sibanye’s acquisition. These were primarily within the current Burnstone mining right area and intermittently intersected higher grade Kimberley Reef. In November 2002 Great Basin Gold (GBG) acquired 100% of Southgold and immediately embarked on an extensive surface diamond drilling programme. Until September 2012, a further 374 boreholes were drilled, either within, or in close proximity to the current Burnstone mining right. Based on this drilling programme, GBG declared a large measured and indicated gold Mineral Resource, upon which the Burnstone operation was initiated, in June 2006. Burnstone saw the inclusion into Sibanye in 2014.
The Burnstone Project, as per the FS, was presented to the Sibanye Board for approval in 2015. The revised project envisages 110koz per annum mine with a 23-year LoM plan, with reserves of 1.8Moz and a resource of 8.9Moz. The mine design and schedule in the FS was limited to the mineable reserves within a 3km radius of the shaft infrastructure. Extensive development will begin in 2016 with first gold production due in 2018 and full production run rate to be achieved in 2020. Total project capital forecast at R1,852 million (in C2015 terms).
In C2015, R282 million was spent on completing the pumping and rock hoisting infrastructure, dewatering the mine and approximately 2km of development to access the orebody. The project budget for C2016 is R705 million for procurement of additional mechanised fleet, extensive development to access the orebody and additional infrastructure.
Approximately 4,500m of primary off-reef development will be done in 2016 to access the various planned mining blocks as well as 1,200m on-reef development in preparation for the first raise lines in C2017. Three existing mechanised development fleets were refurbished in C2015 and an additional three fleets will be procured and delivered in C2016. A mechanised development fleet comprises one twin-boom drill rig, one roof bolter, one LHD (load, haul, dump) machine, one or two dump trucks and a dedicated emulsion explosive charge-up utility vehicle.
The major capital projects’ budget (including growth and exploration) presented for C2016 amounts to R1,028 million – up from R484 million approved in 2015.
SOUTH NORTH
4m
9a Inter-channel Reef9a Channel Reef
9b Channel remnants
SCHEMATIC NORTH – SOUTH SECTION ACROSS THE BURNSTONE PROJECT, SHOWING THE RELATIONSHIP BETWEEN UK9a AND UK9b
Burnstone Shaft headgear
The major capital projects’ budget
(including adjacent property growth and exploration activities) presented for C2016 amounts to R1,028 million – up from R484 million approved in C2015.
Sibanye Gold Mineral Resources and Mineral Reserves 2015 6161
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
BURNSTONE OVERVIEW
Mineralisation style Palaeo-placer
Mineralisation characteristics • Hosted by auriferous and uraniferous predominantly quartz pebble conglomerates (reefs)
• Laterally continuous with mid-range predictability
• Clear patterns of mineralisation governed by sedimentary characteristics
Deposit type Shallow gold deposit exploiting the UK9a Reef of the Kimberley Formation, Central Rand Group, Witwatersrand Supergroup
Licence status and holdings Burnstone has a new order mining right in terms of the MPRDA, valid from 17 February 2009 to 16 February 2027 in respect of an area totalling 13,135.724ha. All required operating permits have been obtained, and are in good standing
Burnstone also holds a large number of prospecting rights either contiguous or in the vicinity to the Burnstone mining right. Burnstone is in the process of finalising a Section 102 application to amend the Burnstone mining right with the inclusion of certain farms or portions thereof that form part of the prospecting right holdings
Infrastructure Shallow underground mining project with two established shaft complexes (one vertical and one decline shaft)
Mining method Conventional selective scattered breast mining with scraper cleaning and mechanised footwall infrastructure
Mineral processing One CIL gold processing plant
Tailings disposal One tailing storage facilities with LoM deposition capacity of 24Mt
Climate The area is characterised by a mild climate, with warm to hot, moist summers and cool dry winters. No extreme climate conditions are experienced that may affect mining operations
Environmental/Health and Safety Burnstone currently holds all material permits required to conduct mining and exploration, as well as an approved Environmental Management Programme (EMP)
Life of Mine LoM plan optimisation in progress
Competent Persons The Competent Persons designated in terms of SAMREC, who take responsibility for the consolidation, reporting and overall compliance of Burnstone’s Mineral Resources are:
Mr L Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM member (No. 704140) and has 39 years experience
Mr J van Eeden [MSc. Geology] is a registered SACNASP member (No. 400043/09) and has 31 years’ experience
Mr S Wild [GDE (Mining Engineering); NHD MRM] a registerd SAIMM member (No. 706556) and has 20 years’ experience
Mr G Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC] is a registered PLATO member (No. PMS0243) and has 27 years’ experience
Compliance Internal technical reviews have been conducted by the Competent Persons who gave their consent for the disclosure of the C2015 Mineral Resource Statement. The competent persons have appropriate experience relative to the type and style of mineral deposit under consideration and are a full-time employees of Sibanye
REVIEWA gold Mineral Resource of 8.890Mt at an average grade of 5.1g/t has been declared for Burnstone. A maiden gold Mineral Reserve of 1.799Moz has been stated.
KEY DEVELOPMENTS DURING 2015• The FS was approved and capital allocated in C2015 for development commencement in C2016.
• The additional geological review included an updated structure model and a detailed sedimentological study of the UK9 Reef led to an updated facies model and related geo-domains and trends for evaluation.
• A thorough review and QA/QC of all the data in line with Sibanye’s standards and procedures. The revised model is consistent with the characteristics of similar orebodies in the East Rand Basin, affording greater confidence in the interpretation and supporting the gold Mineral Resource estimate.
BURNSTONE PROJECT CONTINUED
Sibanye Gold Mineral Resources and Mineral Reserves 2015 6262
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
2,5002,0001,000 1,5005000
Tons Grade
0
50
100
150
200
250
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Tons
(Mt)
Aver
age
valu
e ab
ove
cut-
off (
cm.g
/t)
Cut-off value (cm.g/t)
GOLD MINERAL RESOURCE CLASSIFICATION AS AT 31 DECEMBER 2015
Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold Mineral Resource classification as at 31 December 2015 underground Dec15 Dec14 Dec15 Dec14 Dec15 Dec14
Indicated 25.4 25.4 5.3 5.3 4,350 4,350
Inferred (AI) 28.7 28.7 4.9 4.9 4,540 4,540
Total underground 54.1 54.1 5.1 5.1 8,890 8,890
Total Resource 54.1 54.1 5.1 5.1 8,890 8,890
GOLD MINERAL RESERVE AS AT 31 DECEMBER 2015
Tons (Mt) Grade (g/t) Gold (‘000 oz)
Gold Mineral Resource classification as at 31 December 2015 underground Dec15 Dec14 Dec15 Dec14 Dec15 Dec14
Underground
Proved
Probable 13.0 4.3 1,799
Total underground 13.0 4.3 1,799
Surface
Total Resource 13.0 4.3 1,799
HOISTING AND PRODUCTION CAPACITIES
Mining unit Operating shaftOperational hoisting
capacity (ktpm)Planned production
(ktpm)*
1 1 165 85
* At peak between 2022 – 2026
PLANT CAPACITIES
PlantDesign capacity
(ktpm)Current operational
capacity (ktpm)Average recovery
factor (%)Material treated
1 125 125 96.0 UG
GOLD GRADE TONNAGE CURVE The grade tonnage curve represents undiluted grade (at block width) and tons within the total Mineral Resources (all reefs at zero cut-off).
MODIFYING FACTORS
Parameter Unit Dec 2015 Dec 2014
Mineral Resource pay limit cm.g/t 440
Mineral Reserve pay limit cm.g/t 480
Mined value cm.g/t 605
Mine call factor % 86
Block factor % 100
Shortfall % (2)
Mining dilution % 2
Stoping width cm 120
Mill width cm 122
Plant recovery factor UG % 96
Sibanye Gold Mineral Resources and Mineral Reserves 2015 6363
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
WEST RAND TAILINGS RETREATMENT PROJECT
Gold Mineral Resources 6.486Moz (+0.4% year-on-year)
Uranium Mineral Resources 99.088Mlb (+0.4% year-on-year)
Gold Mineral Reserves 6.486Moz (+0.4% year-on-year)
Uranium Mineral Reserves 99.088Mlb (+0.4% year-on-year)
Strategic intent
• Building Sibanye’s sixth operation
• Regional consolidation opportunities present potential upside
• The strategic phasing of capital in order to generate cash flow and enhanced value
• Considering utilisation of existing surface infrastructure
• The DFS was completed during C2015 and further metallurgical work and front end engineering design to be undertaken
• West Rand community and social development upliftment
Sibanye is on track with its vision of creating sustainable value for all its stakeholders by growing the business, Sibanye will be able to provide that value into the future
EXTENSION OFKLOOF MINING RIGHT
PLANNED RTSF
KLOOF 2LEEUDOORN
MILLSITE PROSPECTING RIGHTTO BE INCLUDED INTOCOOKE 1,2,3
COOKE 4
Gauss Conform Projection Central Meridian 27°
0 5km
Mining rightSection 102 applicationTSF activeTSF dormantPlanned Regional TSFTownsNational roadsArterial roadsMain roadsSurface plantsShaftsNew Central Plant (planned)
Co-ordinatesLatitude: 26° 21’00”SLongitude: 27° 42’00”E
T N
Carletonville
DRIEFONTEIN
Fochville
KLOOF
Westonaria
VENTERSPOST NORTH
EXTENSION OF KLOOF MINING RIGHT
VENTERSPOSTSOUTH
LIBANON
DRIEFONTEIN 2
DRIEFONTEIN 4
DRIEFONTEIN 1
DRIEFONTEIN 5
DRIEFONTEIN 3
COOKE 123
Randfontein
MILLSITE 38-41
HARMONY DOORNKOPPLANT
COOKE
RANDFONTEINSURFACE OPERATION
LINDUM
ZUURBEKOMPROSPECTING RIGHTTO BE INCLUDED INTOCOOKE 123
COOKE 4 SOUTH TSF PRTO BE INCLUDED INTOCOOKE 123GOLD FIELDS
OVERVIEWGold mining in the Witwatersrand area has accumulated TSFs, which Sibanye exploits, and has proven to contain recoverable grades of gold and uranium.
WRTRP incorporates all of Sibanye’s current and dormant TSFs on the West Rand, all of which form part of new order MRs as well as several PRs, collectively valid from 2007 to 2027 (earliest expiry date of a valid mining right). The WRTRP assets stretch from Randfontein to Carletonville and are accessed via the local R28 highway between Randfontein and Westonaria, or via the N12 national road between Johannesburg and Potchefstroom.
Gently undulating savannah grassland plains prevail in the surrounds of the WRTRP. Pre-mining conditions were generally farmlands, which are now largely built-up and industrialised. The area is characterised by a mild climate, with warm to hot, moist summers and cool dry winters.
The WRTRP in its current form dates from May 2014 when Sibanye acquired the Cooke assets from Gold One, merging the Cooke TSF assets with those of the historic Kloof and Driefontein TSF assets.
PROJECT FUNDAMENTALSThe WRTRP is key to the Sibanye surface-operations strategy, which involves leveraging existing surface operations and infrastructure and developing a strong, long-life surface business, by exploiting the low-risk and relatively high-margin characteristics of the surface resources located on the West Rand. The WRTRP is well positioned to become Sibanye’s sixth mine and also presents a valuable environmental solution for existing and future surface tailings, promoting socially and environmentally responsible deposition of tailings in a centrally managed area.
Prior to a WRTRP PFS a number of other studies had been conducted including the Gold Fields Limited Tailings Treatment Project (DFS accuracy), Cooke Uranium Project (DFS accuracy and 70% engineering), Gold Fields/Senet Kloof Driefontein Complex Study (PFS accuracy) and the West Rand surface optimisation scoping study.
Sibanye Gold Mineral Resources and Mineral Reserves 2015 6464
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
The business rationale leading to the current Sibanye status of the WRTRP is based on the following:
• Value accretive (net present value positive project)
• regional synergies add potential upside to current value
• Remediation solution for existing and future surface tailings
• extracting residual gold and uranium unlocks value
• leverages existing metallurgical capacity and extends operational life
• reduces future environmental liability
• releases land for development
• A modular and phased design
• utilising capacity at existing infrastructure (lower upfront capital)
• phased and flexible capital scheduling
• early phases partially fund later capex
• flexibility and leverage to future commodity prices
• Significant investment into the declining West Rand
• direct and indirect job creation
KEY DEVELOPMENTSWRTRP through the completion of the DFS has proven to be economically viable. This viability involves the construction of a large-scale Central Processing Plant for the extraction of gold and uranium from the re-treatment of historic and current tailings. A further objective remains the re-deposition of the residue onto a regional tailings facility, in accordance with modern sustainable deposition practices, reducing future environmental liabilities.
Sibanye’s revised strategy is to develop the WRTRP in phases. The conclusion of the DFS enables the Front End Engineering Design phase together with the roll-out of a pilot plant.
REVIEWThe WRTRP PFS (assessing the potential for extraction of gold and uranium from Sibanye’s West Wits Line and the adjacent Cooke TSFs), was successfully concluded and is currently the subject of a DFS. The Sibanye gold and uranium Mineral Resources and Mineral Reserves estimate for the WRTRP are tabulated below and are compliant in respect of the SAMREC Code.
The gold and uranium Mineral Resources and Mineral Reserves remain largely unchanged year-on-year with only a small increase in Mineral Reserves due to deposition on active TSFs during 2014 (gold 0.027Moz and uranium 0.435Mlb).
GOLD MINERAL RESOURCE AND MINERAL RESERVE CLASSIFICATION
Mineral Resources Mineral Reserves
31 Dec 2015Dec
201431 Dec 2015
Dec 2014
Gold classificationTons (Mt)
Grade (g/t)
Gold (‘000oz)
Gold (‘000oz) Gold classification
Tons (Mt)
Grade (g/t)
Gold (‘000oz)
Gold (‘000oz)
Tailings storage facilities Tailings storage facilities
Driefontein (Measured) 169.1 0.3 1,819 1,805 Driefontein (Proved)
(Indicated) (Probable) 169.1 0.3 1,819 1,805
Kloof (Measured) 265.3 0.3 2,267 2,253 Kloof (Proved)
(Indicated) (Probable) 265.3 0.3 2,267 2,253
Cooke (Measured) 228.1 0.3 1,876 1,876 Cooke (Proved)
(Indicated) 52.3 0.3 524 524 (Probable) 280.4 0.3 2,401 2,401
Total 714.8 0.3 6,486 6,459 Total 714.8 0.3 6,486 6,459
Sibanye Gold Mineral Resources and Mineral Reserves 2015 6565
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
WEST RAND TAILINGS RETREATMENT PROJECT CONTINUED
URANIUM MINERAL RESOURCE AND MINERAL RESERVE CLASSIFICATION
Mineral Resources Mineral Reserves
31 Dec 2015Dec
2014 31 Dec 2015Dec
2014
Gold classificationTons (Mt)
Grade (kg/t)
U3O8
(‘000lb)U3O8
(‘000lb) Gold classificationTons (Mt)
Grade (kg/t)
U3O8
(‘000lb)U3O8
(‘000lb)
Tailings storage facilities Tailings storage facilities
Driefontein (Measured) 160.9 0.064 22,686 22,326 Driefontein (Proved)
(Indicated) (Probable) 160.9 0.064 22,686 22,326
Kloof (Measured) 265.3 0.038 22,146 22,071 Kloof (Proved)
(Indicated) (Probable) 265.3 0.038 22,146 22,071
Cooke (Measured) 228.1 0.088 44,320 44,320 Cooke (Proved)
(Indicated) 52.3 0.086 9,936 9,936 (Probable) 280.4 0.088 54,256 54,256
Total 706.6 0.064 99,088 98,653 Total 706.6 0.064 99,088 98,653
Competent Persons The Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of WRTRP’s 2015 gold and uranium Mineral Resources and Mineral Reserves are:
Mr L Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM member (No. 704140)
Mr I Davidson [BSc. (Hons) Geology] is a registered SAIMM member (No. 706805)
Mr G Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC], a registered PLATO member (No. PMS0243)
Compliance Internal technical reviews have been conducted by the Competent Persons listed who gave their consent for the disclosure of the C2015 Mineral Resource and Mineral Reserve Statement. All have appropriate experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye.
Return water dam at TSF
Sibanye Gold Mineral Resources and Mineral Reserves 2015 6666
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
Gold Mineral Resources 9.938Moz (no change)
Uranium Mineral Resources 35.373Mlb (no change)
Gold Mineral Reserves 2.112Moz (+1% year-on-year)
Uranium Mineral Reserves (not estimated)
Strategic intent
• Sibanye is investing potential synergies between the SOFS projects and the existing Beatrix operation
• Sibanye intends to combine the Beatrix and SOFS MRs within the greater Freestate MR
Gauss Conform Projection Central Meridian 27°
0 5km
SOFS Mining RightProspecting RightsTownsArterial RoadsMain roads
Theunissen
T N
Welkom
Virginia
ROBIJN
DE BRONMERRIESPRUIT
BLOEMHOEK
HAKKIES
BEISANORTH
BEISASOUTH
HARMONY
BEATRIX
BEATRIX
HARMONY
HARMONY
HARMONY
Co-ordinatesLatitude: 26° 39’00”SLongitude: 28° 40’12”E
ADAMSONSVLEY
OVERVIEWThe Southern Orange Free State (SOFS) Projects include Sibanye’s Wits Gold MR and PR holdings in the Free State Goldfield of the Witwatersrand Basin. The MR consolidating the De Bron Merriespruit, Bloemhoek, Hakkies and Robijn Projects into DMR Ref. FS30/5/1/2/2(10005)MR, has been approved for a period of 23 years and is in the process of being executed. Geographically the mining right is contiguous to the east of the Beatrix mining right some 5km south of Virginia. The prospecting rights are for the Beisa North [DMR Ref. FS30/5/1/1/2PR] and Beisa South [DMR Ref. FS30/5/1/1/2(10134)PR] Projects, which are respectively contiguous to the north and south of the Beatrix Beisa 4 Shaft ground. The PRs are valid until April 2016 and February 2016 respectively.
The project area is semi-arid and topographically flat. Activities mainly consist of agriculture. No extreme weather conditions are experienced that may affect exploration or mining operations.
The SOFS in its current form dates from April 2014 when Sibanye acquired Wits Gold. Sibanye is in the process of submitting a Section 102 application seeking consent from the Minister of Mineral Resources to amend the Beatrix MR by consolidating the Beatrix MR and the SOFS MR and PRs.
The De Bron Merriespruit mine design has been optimised to a semi-mechanised mining method similar to the Burnstone Project design.
GEOLOGYA three dimensional reconstruction of the Central Rand Group stratigraphy in the Free State Goldfield indicates a progressive southerly thinning of the sequence, south of the Sand River, into the SOFS mining and prospecting right areas. This attenuation of the Central Rand Group is related to uplift during the latter phase of deposition in the basin, causing erosion by superimposed, on-lapping unconformities. These erosional relationships particularly affected the Basal Reef (main economic horizon of the historic gold mines around Welkom) that subcrops and does not extend to the south of the Sand River. However, four other reefs, prospective for gold and uranium, have been intersected in the Central Rand Group in the area south of the Sand River and include the Leader Reef, the B Reef, the AAR/KKR and the Beatrix/VS5 Reef. The Beisa Reef has also been extensively explored, as a potential uranium resource, along the over-folded western margin of the Southern Free State Goldfields.
Quality opportunities and targets are the primary focus when considering the Mineral Resource and Reserve of the SOFS Projects. Options to increase value are being assessed for the Beisa North Project, the Bloemhoek Project and the De Bron Merriespruit Project
SOUTHERN ORANGE FREE STATE PROJECTS
Sibanye Gold Mineral Resources and Mineral Reserves 2015 6767
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
The Beatrix/VS5 unconformity at the base of the Eldorado Formation (Eldorado Unconformity) is developed across the entire SOFS area and therefore represents a reference surface for the construction of a structural map of the area. The resultant structure contours indicate that the Central Rand Group is deformed in a broad syncline, with smaller parasitic folds marking the southern limit of the prospective Witwatersrand Basin. This compression was responsible for active uplift towards the southern margin of the Free State Goldfield that resulted in a complex interplay between a series of superimposed unconformity surfaces. Repeated erosion of the footwall sequences caused the incorporation and winnowing of auriferous and uraniferous detritus into the reefs overlying the unconformities.
The north-easterly-plunging fold has been off-set by a series of later normal faults related to the regional Platberg extensional event. The normal faults generally strike north-south, the most significant being the De Bron Fault, which has a relative down-throw of more than 1,000m towards the west. A structure of greater magnitude, the Virginia Fault, strikes north-north-east and with a down throw to the east is responsible for the preservation of the Central Rand Group stratigraphy in the Robijn outlier. The Merriespruit Thrust Fault is a southerly-verging compressional structure that has an effective vertical displacement of 50 to 100m to the east of the De Bron Fault. These structures divide the SOFS area into four discrete domains or project areas in which the depth of the prospective reefs below surface will have a profound effect on any plan to exploit these resources.
Multiple band reef package
Brecciated reef
SOUTHERN ORANGE FREE STATE PROJECTS CONTINUED
Virginia
Maraisburg
St Helena
Welkom
Harmony
Dagbreek
Spes Bona
Aandenk
CENT
RAL
RAND
GRO
UP
JOHA
NNES
BURG
SUB
GROU
PTU
RFON
TEIN
SUB
GROU
P
Eldorado
Formation Member
Doornkop
Beatrix
Rosedale
Van Den Heeversrust
Uitkyk
Dreyerskuil
Lorraine
LF6
Beisa Reef
Commonage Reef
MF4
LF5
LF1 to LF4
MF3MF2MF1
LF3Intermediate Reef/UF4
VS4
VS2VS2
VS1
VS1a
LF2
Middle Reef
Leader Reef
Upper Shale Marker
Kalkoenkrans ReefAandenk Reef
A Reef
Beatrix /VS5 Reef
B Reef
LF1
Basal/Steyn ReefSaaiplaas Reef
VCR
STRATIGRAPHIC COLUMN FOR THE FREE STATE GOLDFIELDS
0 cm 10
Sibanye Gold Mineral Resources and Mineral Reserves 2015 6868
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
SCHEMATIC 3D SECTION OF THE SOFS OREBODY LOOKING NORTH
DE BRON MERRIESPRUITThe De Bron Merriespruit (DBM) Project is located between the De Bron Fault, which marks the western boundary of the project, and the Virginia Fault in the east. The northern boundary includes the southern extent of the old Merriespruit gold mine obtained from Harmony, while the southern boundary extends past the subcrop position of the potential orebodies (reefs). The DBM Project is the only SOFS project that was subjected to a FS.
PROJECT FUNDAMENTALSFour primary reef horizons containing gold and uranium are developed on well-defined regional unconformities in the DBM Project area. These include the Beatrix/VS5, Aandenk, B and Leader Reefs, all of which have been mined extensively in the southern Free State Goldfields. The four reefs are developed within a 20 to 40m stratigraphic interval on the DBM property and are preserved at depths of between 500 and 1,200m below surface. The, Beatrix/VS5 and Aandenk Reefs constitute the principal economic orebody, while the less extensive Leader and B Reefs are regarded as up-side potential for the Project. The reefs are generally characterised by shallow dips of between 10° and 25° and a thickness of 60 to 210cm that make them suitable for exploitation by means of typical narrow stoping techniques similar as conducted at the Beatrix operation.
The Leader, B and Aandenk Reefs all subcrop against the Beatrix/VS5 unconformity across the project area. This unconformity is undulating forming remnant channels, resulting in complex subcrop patterns.
The erosion and reworking of underlying reefs is believed to play a strong role in controlling the gold and uranium mineralisation in the VS5 Reef. Consequently, gold mineralisation increases south of the respective subcrops, as the VS5 Reef becomes more oligomictic due to the re-working of the underlying material. This coincides with the development of “transitional facies” of the VS5 and eventually the BXR facies. All four of the above reefs contain uranium, although the quantities are regarded as uneconomic at current price levels and therefore has not been included in the valuation models.
Historically a total of 72 boreholes (31 surface and 41 underground) were drilled in the DBM Project area and immediate surrounds. Wits Gold drilled an additional 27 boreholes within the project area between 2006 and 2012. General consensus is that adequate quality assurance and quality control (QA/QC) has been applied for the data to be used for evaluation. Royal HaskoningDHV subsequently completed a FS for the DBM Project in 2013, which led to a SAMREC Code compliant Mineral Reserve declaration by Wits Gold. Sibanye has since re-estimated, further in line with Sibanye standards and protocols.
SOFS PROJECT REVIEWSibanye has thoroughly reviewed the geological and LoM models of the De Bron Merriespruit, Bloemhoek, Hakkies and Robijn, and Beisa North and Beisa South Projects in the SOFS, and re-estimated the respective Mineral Resources in accordance with the Group’s protocols and procedures and benchmark pay limits from the Beatrix Operation. Sibanye is satisfied that the potential exploitable reefs identified and evaluated have been interpreted with a high degree of diligence with respect to their stratigraphic continuity and geology structure.
T N
Sibanye Gold Mineral Resources and Mineral Reserves 2015 6969
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
THE SOUTHERN ORANGE FREE STATE PROJECTS OVERVIEW
Mineralisation style Palaeo-placer
Mineralisation characteristics • Hosted by auriferous and uraniferous predominantly quartz pebble conglomerates (reefs)
• Laterally continuous with mid-range predictability
• Clear patterns of mineralisation governed by sedimentary characteristics
Deposit type Shallow gold/uranium deposits comprising the BXR/VS5, Aandenk, B and Leader Reefs of the Central Rand Group; Witwatersrand Supergroup
Licence status and holdings De Bron Merriespruit Project forms part of a mining right in terms of the Minerals and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002), in respect of an area totalling 13,135ha. Although the mining right [DMR Ref. FS30/5/1/2/2(10005)MR] has been granted (25 February 2014) it still has to be executed. The DBM portion of the MR totals approximately 4,344 hectares. All required permits relative to the status of the project have been obtained, and are in good standing
Infrastructure DBM is an exploration project of which a FS has been completed in 2013 but no mining activities have been initiated yet
Mining method A provisional mine design caters for a standard Witwatersrand gold mine design accessing underground orebody via a vertical and decline shaft system and utilising conventional scattered breast mining methods
Climate The area is characterised by a mild climate, with warm to hot, moist summers and cool dry winters. No extreme climate conditions are experienced that may affect mining operations
Life of Mine The current LoM is estimated at 19 years
Competent Persons The Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of DBMs 2015 gold Mineral Resources and Mineral Reserves are:
Mr Q Meyer [MSc. Geology], a registered SACNASP member (No. 400063/88)
Mr L Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM member (No. 704140)
Mr J van Eeden [MSc. Geology], a registered SACNASP member (No. 400043/09)
Mr G Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC], a registered PLATO member (No. PMS0243)
Compliance Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 DBM gold Mineral Resource and Mineral Reserve Statement. The Competent Persons have appropriate experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye
SOUTHERN ORANGE FREE STATE PROJECTS CONTINUED
Sibanye Gold Mineral Resources and Mineral Reserves 2015 7070
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
REVIEWThe DBM Mineral Resource estimated remains constant at 4.022Moz. The gold Mineral Reserves were derived from the latest revised geology and estimation models, with the main infrastructure design and capital based on that of the original FS conducted by Royal HaskoningDHV in 2013. The mine design has been optimised utilising a semi-mechanised mining method similar to the Burnstone design. The gold Mineral Reserves renained constant 2.1Moz.
GOLD GRADE TONNAGE CURVEThe grade tonnage curve represents undiluted grade (at block width) and tons within the total Mineral Resources (all reefs at zero cut-off).
Tons
(Mt)
Tons Grade
0
500
1,000
1,500
2,000
2,500
3,000
Avar
age
valu
e ab
ove
cut-
off (
cm.g
/t)
Cut-off grade (cm.g/t)
0
20
40
60
80
100
120
140
160
180
2,5002,0001,000500 1,5000
MODIFYING FACTORS
Parameter Unit Dec 2015 Dec 2014
Mineral Resource pay limit cm.g/t 760 *
Mineral Reserve pay limit cm.g/t 830 *
Mined value cm.g/t 870 691
Mine call factor % 81 82
Block factor % 100 100
Shortfall % 0 0
Mining dilution % 32 28
Stoping width cm 127 121
Mill width cm 187 170
Plant recovery factor UG % 96 96
* Estimated costs based on Beatrix South
GOLD MINERAL RESOURCE AND MINERAL RESERVE CLASSIFICATION
Mineral Resources Mineral Reserves
31 Dec 2015Dec 2014 31 Dec 2015
Dec 2014
Gold classificationTons (Mt)
Grade (g/t)
Gold (‘000oz)
Gold (‘000oz) Gold classification
Tons (Mt)
Grade (g/t)
Gold (‘000oz)
Gold (‘000oz)
Underground Underground
Measured Proved
Indicated 23.0 4.5 3,307 3,307 Probable 15.4 4.3 2,112 2,088
Inferred 5.3 4.2 715 715
Total 28.3 4.4 4,022 4,022 Total 15.4 4.3 2,112 2,088
GOLD MINERAL RESERVE RECONCILIATION AT 31 DECEMBER 2015
Item Moz
31 December 2014 2.088
2014 Depletion
Post-depletion 2.088
Mine design layout optimisation 0.024
31 December 2015 2.112 Dec 2014 Revised mine designPost-depletion Dec 2015
24
Gold Mineral Resource reconciliation
Gold
(’00
0oz)
0
500
1,000
1,500
2,000
2,500
29,3
29 2,1122,088 2,088
Aandenk Reef
0 cm 10
Sibanye Gold Mineral Resources and Mineral Reserves 2015 7171
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
SOUTHERN ORANGE FREE STATE PROJECTS CONTINUED
BLOEMHOEK The Bloemhoek Project constitutes the western extent of the SOFS MR, covering an area of approximately 4,060ha.
The southern boundary of the Bloemhoek Project is situated a few hundred metres north of Beatrix 3 Shaft and is enclosed to the north by the Beatrix MR and bounded to the east along the De Bron Fault. Sibanye reviewed the geological structure of the Bloemhoek project and an updated facies model was compiled during C2015.
PROJECT FUNDAMENTALSSituated west of the De Bron Fault that separates the DBM and Bloemhoek Projects, the same four primary reef horizons encountered in the DBM Project are developed in the Bloemhoek Project area, namely the Beatrix/VS5, Aandenk, B and Leader Reefs. Geology fundamentals described for the four reefs at DBM are similar for the Bloemhoek Project where the four reefs are preserved at depths of between 1,300m and 2,400m below surface, are between 100 to 250cm thick and generally characterised by shallow dips of between 10° and 20°.
From 1947 to 2004, a total of 28 surface boreholes were drilled in the Bloemhoek Project. Most of this drilling was completed by Anglo American during the 1980s. Wits Gold acquired the property and data in 2004 and subsequently drilled a further four boreholes which culminated in a PFS, completed in 2009 with a SAMREC Code compliant Mineral Resource and Mineral Reserve Statement. An additional four boreholes are planned to be drilled in C2016.
GOLD MINERAL RESOURCE AND MINERAL RESERVE CLASSIFICATION
Mineral Resources Mineral Reserves
31 Dec 2015Dec
2014 31 Dec 2015Dec
2014
Gold classificationTons (Mt)
Grade (g/t)
Gold (‘000oz)
Gold (‘000oz) Gold classification
Tons (Mt)
Grade (g/t)
Gold (‘000oz)
Gold (‘000oz)
Underground Underground
Measured Proved
Indicated 27.4 4.7 4,163 4,163 Probable
Inferred 0.9 4.9 135 135
Total 28.3 4.7 4,297 4,297 Total
Competent Persons The Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of Bloemhoek’s 2015 gold Mineral Resources and Mineral Reserves are:
Mr Q Meyer [MSc. Geology], a registered SACNASP member (No. 400063/88)
Mr L Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM member (No. 704140)
Mr J van Eeden [MSc. Geology], a registered SACNASP member (No. 400043/09)
Mr G Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC], a registered PLATO member (No. PMS0243)
Compliance Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 Bloemhoek gold Mineral Resource and Mineral Reserve Statement. The Competent Persons have appropriate experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye.
REVIEWNew geological models, incorporating borehole data from both Wits Gold and Beatrix have resulted in a comprehensive revision of the geology models for the Bloemhoek Project. Gold Mineral Resources remained unchanged at 4.297Moz. The Group is reviewing the economic viability of accessing part of the Bloemhoek Mineral Resources from the existing Beatrix underground infrastructure. As a consequence, no gold Mineral Reserves will be declared on the Bloemhoek Project until these studies have been completed.
Sibanye Gold Mineral Resources and Mineral Reserves 2015 7272
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
REVIEWSibanye has thoroughly reviewed the geological and LoM models of the Beisa North Project and re-estimated the Mineral Resources, in accordance with the Group’s protocols and procedures. The Beisa North Project gold and uranium Mineral Resources are unchanged with an estimated 1.619Moz gold and 35.373Mlb uranium.
During C2016 Sibanye intends carrying out further studies relating to the Beisa Central and Beisa North Projects, with the view of optimising synergies with the Beatrix West Operation.
BEISA NORTH The Beisa North Project (1,470ha) is located to the north of Beatrix, some 20km west of Virginia. The economic potential of the prospecting right is centred on the uraniferous and auriferous Beisa Reef, which is the same reef exploited by the old Beisa uranium mine located within the Beatrix mining right.
PROJECT FUNDAMENTALSStructurally, the Free State Goldfield lies within a north-south trending syncline that forms an apex in the south-western corner of the Witwatersrand Basin. The Beisa North and South Project areas are structurally dominated by a major overfold structure, which is a large north-trending synclinal fold associated with the western margin of the Witwatersrand Basin.
The plane of the Beisa Reef occurs in an inverted sequence of overturned strata (upside down) along the upper limits of the overfold in the target area. The Beisa Reef dips at generally moderate angles to the west from its eastern north-south trending subcrop against the Ventersdorp and/or Karoo Supergroups. However, further west, the dip of the Beisa Reef steepens to vertical in the overfold, overturning to a normal stratigraphic succession and dipping towards the east. The depth below surface of the Beisa Reef is thus structural bound and occurs from approximately 450m below surface, at its subcrop to >3,000m below surface in the overturn.
The reef in general can be described as an oligomictic grit to small pebble conglomerate, 5mm to 50cm thick consisting of well to sub-rounded quartz pebbles set in a dark grey to slight yellowish grey sub-siliceous quartzitic matrix containing disseminated pyrite and carbon, with the carbon nearly always a carbon seam (bed) of between 1mm and 15mm thick at the base of the reef.
The Wits Gold exploration programme, concluded in a technical report on the Mineral Resources of Beisa North in 2009. Sibanye has verified the Beisa North project data and is satisfied that the data acquisition, QA/QC and interpretation followed industry best practices, especially the consolidation and interpretation of historic data (surface boreholes, company in-house technical report, etc.).
BEISA NORTH GOLD MINERAL RESOURCE AND MINERAL RESERVE CLASSIFICATION
Mineral Resources Mineral Reserves
31 Dec 2015Dec
2014 31 Dec 2015Dec
2014
Gold classificationTons (Mt)
Grade (g/t)
Gold (‘000oz)
Gold (‘000oz) Gold classification
Tons (Mt)
Grade (g/t)
Gold (‘000oz)
Gold (‘000oz)
Underground Underground
Measured Proved
Indicated Probable
Inferred 14.8 3.4 1,619 1,619
Total 14.8 3.4 1,619 1,619 Total
Borehole reef intersection
Sibanye Gold Mineral Resources and Mineral Reserves 2015 7373
SECTION 2 OPERATIONS AND PROJECTSNEXTBACKPRINTHOME
SOUTHERN ORANGE FREE STATE PROJECTS CONTINUED
BEISA NORTH URANIUM MINERAL RESOURCE AND MINERAL RESERVE CLASSIFICATION
Mineral Resources Mineral Reserves
31 Dec 2015Dec
2014 31 Dec 2015Dec
2014
Gold classificationTons (Mt)
Grade (kg/t)
U3O8
(‘000lb)U3O8
(‘000lb) Gold classificationTons (Mt)
Grade (kg/t)
U3O8
(‘000lb)U3O8
(‘000lb)
Underground Underground
Measured Proved
Indicated Probable
Inferred 14.8 1.084 35,373 35,373
Total 14.8 1.084 35,373 35,373 Total
Competent Persons The Competent Persons designated in terms of SAMREC that take responsibility for the consolidation, reporting and overall compliance of Beisa North’s C2015 gold and uranium Mineral Resources and Mineral Reserves are:
Mr Q Meyer [MSc. Geology], a registered SACNASP member (No. 400063/88)
Mr G Janse van Vuuren [GDE Mining, B Tech MRM, MBA, MSCC], a registered PLATO member (No. PMS0243)
Mr L Tolmay [GDE Mineral Resource, NHD Mineral Resource, MSCC], a registered SAIMM member (No. 704140)
Mr J van Eeden [MSc. Geology], a registered SACNASP member (No. 400043/09)
Compliance Internal technical reviews have been conducted by the Competent Persons who gave consent for the disclosure of the C2015 Beisa North’s gold and uranium Mineral Resource and Mineral Reserve Statement. The Competent Persons have appropriate experience relative to the type and style of mineral deposit under consideration and are full-time employees of Sibanye.
500m
West EastSt. Helena 10#
VS5 overturned limb Only VS5 and Beisa Reefshave overturned limbs
Beisa Reef
Beisa Reef overturned limb
Karoo
Beisa North Project
Nose of fold onBeisa Reef horizon
Nose of fold onVS5 horizon
VS5
Aandenk Reef
B Reef
Leader Reef
Basal Reef
1,600m
3,200m
Schematic not to scale
IDEALISED SCHEMATIC SECTION THROUGH THE WESTERN MARGIN SHOWING THE RELATIVE POSITION OF BEISA NORTH PROJECT AND THE SUBCROP RELATIONSHIPS
Sibanye Gold Mineral Resources and Mineral Reserves 2015 7474
SECTION 2 OPERATIONS AND PROJECTS NEXTBACKPRINTHOME
SUPPLEMENTARY INFORMATION
PROFESSIONAL ORGANISATIONS
Professional Body Postal address and contact details
Geological Society of South Africa (GSSA)
PO Box 61809, Marshalltown 2107, Gauteng, South AfricaTel: +27 (11) 492 3370Fax: +27 (11) 492 3371Email: [email protected]
Engineering Council of South Africa (ECSA)
Private Bag X691, Bruma 2026, Gauteng, South AfricaTel: +27 (11) 607 9500Fax: +27 (11) 607 9556Email: [email protected]
South African Council for Professional and Technical Surveyors (PLATO)
PO Box 83018, South Hills 2136, Gauteng, South AfricaTel: +27 (11) 626 1040Fax: +27 (11) 626 2007Email: [email protected]
South African Council for Natural Scientific Professions (SACNASP)
Private Bag X540, Silverton 0127, Gauteng, South AfricaTel: +27 (12) 841 1075Fax: +27 (12) 841 1057Email: [email protected]
Southern African Institute of Mining and Metallurgy (SAIMM)
P.O. Box 61127, Marshalltown 2107, Gauteng, South AfricaTel: +27 (11) 834 1273/7Fax: +27 (11) 838 5923Email: [email protected]
SAMREC CODE DEFINITIONS
Term Definition
Competency The public report is based on work that is the responsibility of suitably qualified and experienced persons who are subject to an enforceable professional code of ethics.
Competent Person A Competent Person is a person who is registered with SACNASP, ECSA or PLATO, or is a member or fellow of the SAIMM, the GSSA or a Recognised Overseas Professional Organisation (ROPO). The Competent Person must comply with the provisions of the relevant promulgated acts, have a minimum of five years experience relevant to the style of mineralisation and type of deposit or class of deposit under consideration and to the activity he or she is undertaking. Persons being called upon to sign as a Competent Person must be clearly satisfied in their own minds that they are able to face their peers and demonstrate competence in the commodity, type of deposit and the situation under consideration.
Deposit A concentration (or occurrence) of material of possible economic interest, in or on the earth crust, that may include mineralised material that cannot be estimated with sufficient confidence to be classified in the Inferred category. Portions of a deposit that do not have reasonable and realistic prospects for eventual economic extraction are not included in a Mineral Resource.
Materiality A public report contains all the relevant information that investors and their professional advisors would reasonably require, and expect to find, for the purpose of making a reasoned and balanced judgement regarding the exploration results, Mineral Resources and Mineral Reserves reported on.
Mineral Resource A concentration or occurrence of material of economic interest in or on the earth’s crust in such form, quality and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are known, or estimated from specific geological evidence, sampling and knowledge interpreted from an appropriately constrained and portrayed geological model. Mineral Resources are subdivided, and must be so reported, in order of increasing confidence in respect of geoscientific evidence, into Inferred, Indicated and Measured categories.
75
SECTION 3 SUPPLEMENTARY INFORMATION
75Sibanye Gold Mineral Resources and Mineral Reserves 2015
NEXTBACKPRINTHOME
SAMREC CODE DEFINITIONS
Term Definition
Indicated Mineral Resource That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on information from exploration, sampling and testing of material gathered from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
Measured Mineral Resource That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable information from exploration, sampling and testing of material from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity.
Inferred Mineral Resource That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and sampling and assumed but not verified geologically or through analysis of grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited or of uncertain quality and reliability.
Mineral Reserve The economically mineable material derived from a Measured and/or Indicated Mineral Resource. It is inclusive of diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a PFS for a project and a LoM plan for an operation must have been completed, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors). Such modifying factors must be disclosed.
Probable Mineral Reserve Economically mineable material derived from a Measured or Indicated Mineral Resource or both. It is estimated with a lower level of confidence than a Proved Mineral Reserve. It includes diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a PFS for a project or a LoM plan for an operation must have been carried out, including consideration of, and modification by, realistic assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. Such modifying factors must be disclosed.
Proved Mineral Reserve Economically mineable material derived from a Measured Mineral Resource. It is estimated with a high level of confidence. It includes diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a PFS for a project or a LoM Plan for an operation must have been carried out, including consideration of, and modification by, realistic assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. Such modifying factors must be disclosed.
Transparency The reader of a public report must be provided with sufficient information, the presentation of which is clear and unambiguous, to understand the report and not to be mislead.
GLOSSARY OF TERMS
Term Definition
Above infrastructure (AI) That part of the Mineral Resources and/or Mineral Reserves, which are above the lowest mining level and can be accessed via the current mine infrastructure (shafts and underground haulages).
Below infrastructure (BI) That part of the Mineral Resources and/or Mineral Reserves which are below the lowest mining level and that can only be accessed following approved capital expenditure.
Block width The average width at which it is estimated a block of ore will be mined.
Brownfield A mineral deposit, not yet exploited but conceptualised as an extractable orebody.
Carbon-in-leach (CIL) Gold is leached from a gold ore slurry with cyanide in agitation tanks and absorbed onto carbon granules in the same circuit. The carbon granules are separated from the slurry and treated in an elution circuit to extract the gold.
Carbon-in-pulp (CIP) Gold is leached conventionally from a gold ore slurry with cyanide in agitation tanks. The leached slurry then passes into the CIP circuit where carbon granules are mixed with the slurry and gold is absorbed onto the carbon. The carbon granules are separated from the slurry and treated in an elution circuit to extract the gold.
SUPPLEMENTARY INFORMATION CONTINUED
Sibanye Gold Mineral Resources and Mineral Reserves 2015 76
SECTION 3 SUPPLEMENTARY INFORMATION
76
GLOSSARY OF TERMS
Term Definition
Concept study A study of the viability of a range of major options designed to determine the potential value of the opportunity and confirm alignment with the business strategy. The study describes the work that needs to be conducted to fully define the opportunity, and comprises a number of economically attractive options that warrant further investigation.
Cut-off grade The lowest grade of mineralised rock, which determines as to whether or not it is economic to recover its gold content by further extraction.
Depletion The decrease in the quantity of ore in a deposit or property (mining right) resulting from extraction or production.
Dilution Waste or material below the cut-off grade that contaminates the ore during the course of mining operations and thereby reduces the average grade mined.
Elution Recovery of gold from the activated carbon into solution before zinc precipitation or electro-winning.
Feasibility study A comprehensive design and costing study of the selected option for the development of a mineral project in which appropriate assessments have been made of realistically assumed geological, mining, metallurgical, economic, marketing, legal, environmental, social, governmental, engineering, operational and all other modifying factors, which are considered in sufficient detail to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable) and the factors reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The overall confidence of the study should be stated.
LoM Number of years that an operation is currently planning to mine and treat ore and is derived from the current mining plan.
Mine call factor The ratio expressed as a percentage in which the specific product accounted for in ‘recovery plus residue’ bears the corresponding product ‘called for’ by the mine’s measuring and evaluation methods.
Net of depletion C2014 Reserves and Resources as at December 2014, minus C2015 mined-out areas, minus re-estimation year-on-year changes, is equivalent to C2015 statement.
Pay limit The value at which it is estimated that ore can be mined at break-even.
Pillars Pillars comprise of:• Dip and strike stability pillars
• Water and ventilation pillars
• Regional stability pillars as defined by rock engineering
• Bracket pillars adjacent to seismically active areas or large structures
• Boundary and remnant pillars
• Abandoned pillars
Inter alia, some pillars may become available to mine once appropriate investigations and rehabilitation have taken place.
Plant recovery factor The ratio expressed as a percentage, of the mass of the specific mineral product actually recovered from ore treated at the plant to its total specific mineral content before treatment.
Post-depletion C2014 Reserves and Resources as at December 2014, minus C2015 mined-out areas.
Pre-feasibility study (PFS) A comprehensive study of the viability of a range of options for a mineral project that has advanced to a stage at which the preferred mining method in the case of underground mining or the pit configuration in the case of an open pit has been established and an effective method of mineral processing has been determined. It includes a financial analysis based on realistic assumptions of technical, engineering, operating, economic factors and the evaluation of other relevant factors that are sufficient for a Competent Person, acting reasonably, to determine if all or part of the Mineral Resource may be classified as a Mineral Reserve. The overall confidence of the study should be stated. A PFS is at a lower confidence level than a FS.
Reef A gold-bearing sedimentary horizon, normally a conglomerate that may contain economic levels of gold.
Sibanye Gold Mineral Resources and Mineral Reserves 2015 77
SECTION 3 SUPPLEMENTARY INFORMATION
77
NEXTBACKPRINTHOME
SUPPLEMENTARY INFORMATION CONTINUED
GLOSSARY OF TERMS
Term Definition
SAMREC code The South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves including the guidelines contained therein.
SAMVAL code The South African Code for the Reporting of Mineral Asset Valuation including the guidelines contained therein.
Stope Underground excavation where the orebody is extracted.
Subcrop An erosional marker surface indicating a lapse in time between two differing aged stratigraphic units.
Tonnage discrepancy Difference between the tonnage hoisted as ore and that accounted for by the plant measuring methods. Discrepancy is referred to as a shortfall when the calculated tonnage is less than the tonnage accounted for by the plant, or an excess when the opposite occurs.
Ton(s) Metric ton(s) = 1,000 kilograms.
Uraninite A strong radioactive mineral, UO2, forming the chief ore of uranium (U3O8) and containing variable amounts of radium, lead, thorium and other elements or impurities.
White areas Areas that were excluded from previous LoM plans that have since been proven to have realistic expectation of safe economic extraction, with the required investigations, rock engineering modelling and detail mining plan to support it. White areas include open ground, areas that were excluded due to economics or lack of information, and pillars.
Witwatersrand Basin A sedimentary basin in South Africa that contains close to a 6,000 metre thick sequence of principally argillaceous and arenaceous sediments with inter-bedded auriferous conglomerates.
CONVERSION TABLE
The following conversion factors are applicable:
Metric Imperial Imperial Metric
1 centimetre 0.3937 inches 1 inch 2.54 centimetres
1 metre 3.28084 feet 1 foot 0.3047972654 metres
1 kilometre 0.62150 miles 1 mile 1.609 kilometres
1 gram 0.03215 troy ounces 1 troy ounce 31.10419907 grams
1 kilogram 2.20458 pounds 1 pound 0.4536 kilograms
1 ton 1.10229 short tons 1 short ton 0.9072 tons
1 hectare 2.47097 acres 1 acres 0.4047 hectares
Sibanye Gold Mineral Resources and Mineral Reserves 2015 78
SECTION 3 SUPPLEMENTARY INFORMATION
78
SUPPLEMENTARY INFORMATION CONTINUED
AAR Aandenk Reef
Au Gold
BXR Beatrix Reef
CIP Carbon in pulp
CL Carbon Leader Reef
C2014 Calendar year 2014
COMSOC Chamber of Mines Safety Officers Certificate
CW Channel width
cm Centimetre
cm.g/t Centimetre gram per ton
CPD Continual professional development
DFS Definitive feasibility study
DMR Department of Mineral Resources
EBA Eastern Boundary Area
EMP Environmental Management Programme
FS Feasibility study
g Gram
g/t Grams per ton
Ga Billion years
GDE Graduate Diploma Engineering
GBG Great Basin gold
ha Hectare
ICGR Integrated, Compliance, Governance and Risk
ICMI International Cyanide Management code
IRRIS Integrated Resource and Reserve Information system
ISO International Standard Organisation for Standardisation
JSE Johannesburg Stock Exchange Limited
KDBC Kloof, Driefontein, Beatrix and Cooke operations
K9 Reef of the Kimberley Formation
kg Kilogram
kg/t Kilograms per ton
KKR Kalkoenkrans Reef
km Kilometre
koz Thousand ounces
KR Kloof Reef
LIB Long Incline Borehole
LoM Life of mine
LR Libanon Reef
m Metre
m2 Square metre
MBA Master of Business Administration
mbs Metres below surface
MCF Mine Call Factor
Mlb Million pounds
mm Millimetre
MMCC Mine Managers Certificate of Competency
Moz Million Ounces
MPRDA Mineral Petroleum Resource Development Act
MVR Middelvlei Reef
MRM Mineral Resource Management
MSCC Mine Surveyor Certificate of Competency
Mt Million tons
Mtpa Million tons per annum
MU Mining unit
NEMA National Environmental Management Act
NNR National Nuclear Regulator
oz Ounces (troy)
PFS Pre-feasibility study
PR Prospecting Right
Pr.Sci.Nat Professional Natural Scientist
QA/QC Quality Assurance and Quality Control
R South African Rand
R/kg South African Rand per kilogram
ROM Run-of-mine
RSO Randfontein Surface Operation
SANAS South African National Accreditation System
SEC The United States Securities and Exchange Commission
SGS SGS South Africa (Pty) Ltd
SOFS Southern Orange Free State Operations
SOX Sarbanes-Oxley Act of 2002
SQL Sequel database
SRD Surface rock dump
SAMREC The South African Mineral Resources Committee
SAMVAL The South African Mineral Asset Valuation
SV Sub-vertical
SW Stoping width
t Metric tons
tpm Tons per months
TSF Tailings storage facility
U Uranium
UE1A UE1A Reef of the Elsburg Formation
UE3 Upper Elsburg Reef of the Mondeor Formation
UE5 Upper Elsburg Reef of the Elsburg Formation
UE Upper Elsburg Massives of the Mondeor Formation
UG Underground
U3O8 Uranium oxide
US$ United States dollar
US$/oz United States dollar per ounce
VCR Ventersdorp Contact Reef
VS5 VS5 Reef of the Eldorado Formation
WRTRP West Rand Tailings Retreatment Project
(‘000 lb) Thousand pounds
(‘000 oz) Thousand ounces
ABBREVIATIONS
Sibanye Gold Mineral Resources and Mineral Reserves 2015 79
SECTION 3 SUPPLEMENTARY INFORMATION
79
NEXTBACKPRINTHOME
This Technical Supplement (the Report) contains information as at 31 December 2015 (the Effective Date of this Report). The statements and information set out in this Report speak only as of the Effective Date of this Report. Shareholders and other interested and affected parties are therefore urged to review all public disclosures made by Sibanye after the Effective Date of this Report, as some of the information contained in the Report may have changed or been updated. Sibanye does not undertake any obligation to update publicly or release any revisions to statements and information set out in this Report to reflect events or circumstances after the Effective Date of this Report, or to reflect the occurrence of unanticipated events, unless obliged to do so pursuant to law or regulation. In such event, Sibanye does not undertake to refer back to any information contained in this Report.
REGISTERED OFFICE SOUTH AFRICA:Libanon Business Park Hospital Street (Off Cedar Ave) Libanon Westonaria, 1780 Gauteng
Private Bag X5 Westonaria, 1780
Website: http://www.sibanyegold.co.zaEmail: [email protected]: +27 (0) 11 278 9600Facsimile: +27 (0) 86 520 5023
DISCLAIMER
SUPPLEMENTARY INFORMATION CONTINUED
Sibanye Gold Mineral Resources and Mineral Reserves 2015 80
SECTION 3 SUPPLEMENTARY INFORMATION
80
ADMINISTRATION AND CORPORATE INFORMATION
INVESTOR ENQUIRIESJames WellstedSenior Vice President: Investor RelationsCell: +27 83 453 4014Tel: +27 11 278 9656Email: [email protected] COMPANY SECRETARYCain FarrelTel: +27 10 001 1122Fax: +27 11 278 9863Email: [email protected] REGISTERED OFFICELibanon Business Park1 Hospital Street (off Cedar Avenue)LibanonWestonaria 1780South Africa Private Bag X5Westonaria 1780South AfricaTel: +27 11 278 9600Fax: +27 11 278 9863 SIBANYE GOLD LIMITEDIncorporated in the Republic of South AfricaRegistration number 2002/031431/06Share code: SGLIssuer code: SGLISIN – ZAE E000173951 LISTINGSJSE: SGLNYSE: SBGL WEBSITEwww.sibanyegold.co.za
DIRECTORSSello Moloko* (Chairman)Neal Froneman (CEO)Charl Keyter (CFO)Chris Chadwick#
Robert Chan#
Timothy Cumming*Barry Davison*Rick Menell*Nkosemntu Nika*Keith Rayner*Susan van der Merwe*Jerry Vilakazi*Jiyu Yuan#
*Independent non-executive#Non-executive JSE SPONSORJP Morgan Equities South Africa Proprietary LimitedRegistration number 1995/011815/071 Fricker RoadIllovoJohannesburg 2196South Africa Private Bag X9936Sandton 2196South Africa AMERICAN DEPOSITARY RECEIPTS TRANSFER AGENTBank of New York MellonBNY Mellon Shareowner ServicesPO Box 358516Pittsburgh PA15252-8516Tel: +1 888 269 2377 (US toll-free) +1 201 680 6825Email: [email protected]
OFFICE OF THE UNITED KINGDOM SECRETARIES – LONDONSt James’s Corporate Services LimitedSuite 31Second Floor107 CheapsideLondon EC2V 6DNUnited KingdomTel: +44 20 7796 8644Fax: +44 20 7796 8645 TRANSFER SECRETARIES UNITED KINGDOMCapita Asset ServicesThe Registry34 Beckenham RoadBeckenhamKent BR3 4TUEnglandTel: +44 20 8639 3399Fax: +44 20 8658 3430Email: [email protected] TRANSFER SECRETARIES SOUTH AFRICAComputershare Investor Services Proprietary LimitedGround Floor70 Marshall StreetJohannesburg 2001 PO Box 61051Marshalltown 2107Tel: +27 11 370 5000Fax: +27 11 688 5248
NEXTBACKPRINTHOME
BEAT
RIX
AND
SOFS
SH
AREH
OLDE
R PL
AN
2007
Beatrix granted a new order Mining Right.
2004
Completion of a new surface ventilation shaft to service the
south-west corner of the mine near 2 Shaft.
Beatrix achieves two million fatality-free shifts for the first time.
2009
Beatrix achieves full compliance from
the ICMI during an external cyanide audit
conducted during June 2009.
2005
Beatrix North and South Sections achieve three million fatality-free shifts for the first
time.
2010
Beatrix West Section achieves two million fatality-free shifts for
the first time.
1933
Exploration in the Free State started as far
back as 1885 but only commenced in earnest in 1933 when the first borehole was drilled on
the farm Aandenk 227 HP. The discovery of the Basal Reef in 1939 set exploration
afire, which resulted in a score of mines being
developed in the Free State.
2002
St Helena Gold Mine sold to Freegold,
Beatrix and Oryx mines merged to form Beatrix Gold Mine. Beatrix Gold
Mine is awarded ISO 14001 certification in
July 2002.
1981
Beisa Shaft commissioned to exploit uranium.
Sinking of Beatrix 1 and 2 Shafts commenced.
2013
Beisa Reef concept study undertaken to
establish the economic potential in re-opening
the old Beisa Mine (upper levels of Beatrix 4 Shaft) to exploit gold
and uranium
1995
Sinking of Beatrix 3 Shaft
complex and down dip expansion of
mine initiated.
1969
Exploration drilling for gold and uranium
commenced in the southern limits of the Free State Goldfields.
2001
Beatrix 3 Shaft completed.
1984
Beisa Uranium Mine closed due to the low prevailing uranium
price.
2012
Announcement of the unbundling of Sibanye Gold Limited from Gold
Fields Limited.
1993
Gold production began at Oryx Mine.
1976
General Mining acquired Union
Corporation in 1976. General Mining Union Corporation Limited, as it was then called,
became Gencor Limited.
2014
Sibanye’s acquisition of the Wits Gold
assets contiguous to Beatrix consolidated its position on the
southernmost extent of the Witwatersrand Basin and extended
its LoM Mineral Reserves to sustain the operation for another
14 years.
1998
A new company, Goldco, is formed,
which brings together the gold assets of Gold Fields of South Africa Limited with those of
the unbundled Gencor. Goldco was later
renamed Gold Fields Limited.
1985
Beatrix 1 and 2 Shafts commissioned.
Exploration for Kalkoenkrans Reef in the vicinity of
the old Beisa Mine commenced.
2011
Partial extraction and flaring of methane gas
commenced in May 2011.
1987
Sinking of two new sub-vertical shafts and a ventilation
shaft at Beisa Mine, renamed Oryx Mine,
to exploit KKR, commenced.
2003
Beatrix achieves one million and Beatrix
North and South Sections achieve
two million fatality-free shifts for the first time.
BEATRIX HISTORY AT A GLANCE
2015
Maiden gold and uranium Mineral
Reserves are declared for Beatrix’s Beisa
Project.
Studies on the Beatrix/VS5 Reef
were undertaken for the Bloemhoek area, underpinning future technical studies in
C2016.
The Wits Gold Mineral Reserve and Resource projects were aligned with the Sibanye Gold
systems.
OPERATIONAL STATISTICS
BEATRIXLocated in the Free State province of South Africa, some 240km south-west of Johannesburg, near Welkom and Virginia, Beatrix operates under mining rights covering a total area of 16,821ha. Beatrix is principally an underground mine with nominal surface reserves represented by surface rock dumps accumulated during the operating history of the mine.
2015 KEY STATISTICS
MAIN DEVELOPMENT
21,599mAREA MINED
416,684m2
TONNES MILLED
4,319ktYIELD
2.34g/tGOLD PRODUCED/SOLD
10,105kg (324,900oz)
UNDERGROUND
21,599m UNDERGROUND
416,684m2SURFACE
1,596kt
UNDERGROUND
2,723kt
SURFACE
0.34g/t
UNDERGROUND
3.51g/t
SURFACE
548kg (17,600oz)
UNDERGROUND
9,557kg (307,300oz)
COSTS AND MARGINS
OPERATING COSTS
R785/t
SURFACE
R129/t
UNDERGROUND
R1,169/t
OPERATING PROFIT
R1,425m
SURFACE
R53m
UNDERGROUND
R1,372m
OPERATING MARGIN
30%
SURFACE
21%
UNDERGROUND
30%
CAPITAL EXPENDITURE
R597m
ORE RESEVE DEVELOPMENT
R511m
PROJECTS
SUSTAINING
R86m
ALL-IN COST
R408,422/kg (US$996oz)
ALL-IN COST MARGIN
14%
TOTAL CASH COST
R340,792/kg (US$831oz)
COOK
E SH
AREH
OLDE
R PL
AN
COOKE HISTORY AT A GLANCE
DECEMBER 2007
Waterpan Mining Corporation sells 10% interest to EMC. EMC become wholly-owned
subsidiary of First Uranium Limited.
DECEMBER 2006
Ezulwini new order Mining Right
registered, construction of the new Ezulwini Gold and Uranium Plant commenced.
DECEMBER 2007
Harmony and Pamodzi acquires the Cooke
Operations from Randfontein Estates Limited in a Special
Purpose Vehicle called Rand Uranium (Pty)
Limited.
DECEMBER 2006
Simmers sells its 90% interest in EMC to First
Uranium Limited.
JULY 2008
Ezulwini gold plant commissioned.
1886
Exploration activities commenced in the
West Rand.
MARCH 2003
South Deep (Placer Dome Western
Areas Joint Venture) takes over pumping
operations but ceased pumping in
February 2005.
1900
Lindum tailings facility created.
2011
Gold One International Limited acquires Rand
Uranium and place Ezulwini uranium plant on care and
maintenance.
1997
WAGMC purchased by REGM.
1889
Randfontein Estates Gold Mining Company
Limited (REGM) established.
JULY 2001
Harmony ceases mining and pumping
operations at Cooke 4 and operation
put under care and maintenance.
1910
Exploration programmes to locate
gold bearing reefs south of the Witpoortjie
Horst (“Gap”) commenced.
APRIL 2010
Ezulwini mining right registered to EMC.
1971
The Cooke 123 established as a
section of Randfontein Estates Limited
(Cooke 1 - 1971, Cooke 2 - 1974 and Cooke 3 - 1981). Cooke TSF established in 1976.
1890
REGM Dump 20 tailings facility formed; slimes material from
Millsite plant deposited into Rietpan.
MID-2012
Gold One acquires 100% of EMC.
MARCH 2014
The uranium plant re-commissioned by
Gold One.
MAY 2014
Sibanye Gold acquires Rand Uranium and EMC from Gold One.
First stage of aligning acquired operations with Sibanye Gold
through restructuring of Cooke was
completed. The second stage of instituting
protocols, standards and business
processes commenced.
A section 102 application has been submitted to the DMR
to extend the MR boundaries to include
the TSFs that form part of the WRTRPs.
2000
REGM (Cooke 4 Section) acquired by Harmony Gold Mine
Limited, including the Randfontein Surface
Operations.
1911
Dump 20 Sand created as result
of stamp milling at Millsite Gold Plant.
MAY 2009
Ezulwini uranium plant commissioned.
1961
Registration of Western Areas Gold Mining Company
Waterpan Gold Mine.
MAY 2005
Simmer and Jack Limited apply for new order mining right in respect of Ezulwini Mining Company
(Propriety) Limited (EMC or Ezulwini) and
assumed pumping operations as part of purchase agreement
with Harmony.
2015
OPERATIONAL STATISTICS
COOKELocated near Randfontein, approximately 30km south-west of Johannesburg in the province of Gauteng, South Africa, the Cooke underground operations comprise four vertical shafts (Cooke 1 to 4), a dedicated uranium processing facility as well as the surface operation, which are serviced by a developed network of mining and civil infrastructure with adequate electricity and water supplies.
2015 KEY STATISTICS
MAIN DEVELOPMENT
12,923mAREA MINED
204,835m2
TONNES MILLED
5,793ktYIELD
1.08g/tGOLD PRODUCED/SOLD
6,252kg (201,000oz)
UNDERGROUND
12,923m UNDERGROUND
204,835m2SURFACE
4,323kt
UNDERGROUND
1,470kt
SURFACE
0.21g/t
SURFACE
3.65g/t
SURFACE
893kg (28,700oz)
UNDERGROUND
5,359kg (172,300oz)
COSTS AND MARGINS
OPERATING COSTS
R514/t
SURFACE
R83/t
UNDERGROUND
R1,782/t
OPERATING PROFIT
R(4)m
SURFACE
R54m
UNDERGROUND
(R58m)
OPERATING MARGIN
0%
SURFACE
13%
UNDERGROUND
(2%)
CAPITAL EXPENDITURE
R337m
ORE RESEVE DEVELOPMENT
R227m
PROJECTS
R18m
SUSTAINING
R93m
ALL-IN COST
R544,658/kg (US$1,329oz)
ALL-IN COST MARGIN
(14%)
TOTAL CASH COST
R474,584/kg (US$1,158)
DRIE
FON
TEIN
SH
AREH
OLDE
R PL
AN
2006
Driefontein successfully converts its old order mining licence to new order Mining Rights
and approval given for completion of 9 Shaft
Project.
1999
Gold Fields wins control of the Driefontein
Gold Mine by buying AngloGold Ashanti’s 21.5% shareholding, making Gold Fields the world’s second
largest gold producer. Gold Fields Ltd holds 100% interest in GFI Mining South Africa (Proprietary) Limited which in turn hold a
100% interest in Driefontein.
2009
Suspension of the 9 Shaft deepening
Project.
2005
On 30 August 2005, Driefontein officially
pours the 100 millionth ounce of gold after some 53 years of
production.
2010
5 Shaft decline option pre-feasibility study replaced the 9 Shaft deepening option.
1887
Cecil Rhodes and Charles Rudd, as joint Managing Directors,
are co-founders of ‘The Gold Fields of South
Africa Limited’ in 1887.
1981
On 1 July 1981 East Driefontein Gold Mining Company Ltd changes its name to Driefontein
Consolidated Ltd and West Driefontein becomes a wholly-owned subsidiary
of Driefontein Consolidated Ltd but still manages its own
lease area.
1932
On 12 November 1932, West Witwatersrand
Areas Limited is formed to take over
the Gold Fields Mineral Rights and to continue
exploration work.
2013
Driefontein showed an overall improvement in all safety lagging
indicators, particularly the FIFR, which
improved by 64% and was the lowest ever recorded by the mine
to date.
1968
Disaster strikes in October 1968 when a stope in the 8 Shaft
area is flooded and the entire East Driefontein development area and threatens the whole of West Driefontein, a tremendous effort
saves the mines without loss of life.
1892
The Gold Fields of South Africa
Limited is renamed Consolidated Gold
Fields of South Africa to mine the deep-level gold deposits of the
Witwatersrand.
1979
West Driefontein succeeds Crown Mines
as the largest gold producer ever.
1945
Exploration activities 1933 to 1939 culminate in registration of West
Driefontein Mining Company on
7 March 1945. Sinking of the No. 1 and 2 Shafts commences (now the No. 11 and
12 Shafts).
2012
Announcement of the unbundling of Sibanye Gold Limited from Gold
Fields Limited.
1968
Intensive drilling carried out between
1962 and 1963 indicates the viability of an area adjoining
West Driefontein mine and the East
Driefontein Gold Mining Company Limited is
registered on 3 May 1968.
1931
Using a magnetometer, Dr Rudolf Krahman discovered the vast gold deposits of the West Wits Line near
Carletonville, including the mines known today
as Driefontein and Kloof.
2014
The pre-feasibility study for the
Driefontein 5 Shaft Drop-down Project
completed.
Mining technicalities of the Driefontein
5 shaft Drop-down Project resulted in reconsideration of certain aspects
of the FS.
A section 102 application has been submitted to the DMR
to extend the MR boundaries to include
the TSFs that form part of the WRTRPs.
1972
East Driefontein starts production in 1972, with an expected life of 52 years, and is
immediately among the lowest cost producers
in South Africa.
1952
West Driefontein starts milling in 1952.
2011
TSFs pre-feasibility study and trial mining
initiated.
1962
29 people tragically lose their lives when a severe subsidence
results in the collapse of the entire sorting
and crushing plant on West Driefontein.
1999
In September 1999 the two entities are
formally amalgamated, pooling their resources
to form one mine, Driefontein Gold Mine.
DRIEFONTEIN HISTORY AT A GLANCE
2015
OPERATIONAL STATISTICS
DRIEFONTEINLocated on the Far West Rand, in the mining district of Oberholzer, some 70km south-west of Johannesburg in the province of Gauteng, South Africa, Driefontein operates under new order mining rights covering a total of 8,561ha. It is an underground mine with surface reserves represented by rock dumps and tailings surface facility that have accumulated throughout the operating history of the mine.
2015 KEY STATISTICS
MAIN DEVELOPMENT
15,704mAREA MINED
384,109m2
TONNES MILLED
5,772ktYIELD
3.01g/tGOLD PRODUCED/SOLD
17,350kg (557,800oz)
UNDERGROUND
15,704m UNDERGROUND
384,109m2SURFACE
3,360kt
UNDERGROUND
2,412kt
SURFACE
0.60g/t
SURFACE
6.36g/t
SURFACE
2,005kg (64,500oz)
UNDERGROUND
15,345kg (493,300oz)
COSTS AND MARGINS
OPERATING COSTS
R907/t
SURFACE
R165/t
UNDERGROUND
R1,941/t
OPERATING PROFIT
R3,002m
SURFACE
R399m
UNDERGROUND
R2,603m
OPERATING MARGIN
36%
SURFACE
42%
UNDERGROUND
36%
CAPITAL EXPENDITURE
R994m
ORE RESEVE DEVELOPMENT
R727m
PROJECTS
R18m
SUSTAINING
R249m
ALL-IN COST
R374,790/kg (US$1,914oz)
ALL-IN COST MARGIN
21%
TOTAL CASH COST
R309,764/kg (US$756oz)
KLOO
F SH
AREH
OLDE
R PL
AN
2005
Production reached a cumulative
70 million ounces of gold (yield).
1993
Leeudoorn shaft completed.
2007
Kloof successfully converted its old order
mining right to new order mining rights.
2000
Formation of the Kloof Gold Mine with the
amalgamation of the Venterspost, Libanon, Kloof and Leeudoorn
Gold Mines.
2009
Tailings surface facility uranium
models completed and included in Mineral
Resource Statement.
1898
Drilling commenced by the Pullinger
brothers intersecting Ventersdorp Contact
Reef (VCR) and Middelvlei Reef (MVR)
at depth in the Far West Rand area (later
renamed the West Wits Line).
1987
The southern portion of the Kloof Gold Mine and part of the Bank Break
area culminated in the Leeudoorn Mining
Lease. Leeudoorn shaft sinking commenced.
1934
Shaft sinking commenced at
Venterspost using the newly developed cementation process.
2012
Announcement of the formation of Sibanye
Gold Limited following the unbundling from Gold Fields Limited
1964
Work commenced on Kloof’s main twin-shaft
complex.
1909
A shaft was sunk which flooded with water from the dolomites and was
abandoned.
1982
Prospecting lease obtained over an area to the south and west of the Kloof lease area, dubbed the Bank Break
area.
1936
Shaft sinking commenced at
Libanon.
2011
Surface rock dump Python Plant Project
and TSFs pre-feasibility study
1945
Libanon Mine reopened.
1930’S
Dr Krahmann used geophysical techniques to delineate the extent of the reefs underlying
the dolomite.
2013
Secondary reef project initiated.
2014
Concluded a pre-feasibility study on the
mining area below 45 Level at Kloof
4 Shaft.
Embarked on a major exploration programme,
targeted at the Kloof and MVR at Main and
8 Shafts.
2015
Following the completion of the drop-down decline
FS, capital approval was obtained from the Board and development has since commenced.
A section 102 application has been submitted to the DMR
to extend the MR boundaries to include
the TSFs that form part of the WRTRPs.
1968
Kloof Gold Mine officially opened.
1939
Crushing of ore began and first gold from the West Wits Line
Goldfield was poured at Venterspost.
2010
Kloof and Driefontein were combined to create the Kloof/
Driefontein Complex.
1939
Sinking of Libanon’s second shaft stopped
to curtail capital expenditure and the mine closed for the duration of World
War II.
1992
Venterspost Gold Mine incorporated into the
Libanon division of the Kloof Gold Mine.
KLOOF HISTORY AT A GLANCE OPERATIONAL STATISTICS
KLOOFLocated in the Far West Rand mining district of Westonaria, some 60km south-west of Johannesburg in Gauteng province, South Africa, Kloof’s mining rights cover a total of approximately 20,100ha. It is principally an underground mine with nominal surface reserves represented by surface rock dumps and tailings surface facility accumulated during the operating history of the mine.
2015 KEY STATISTICS
MAIN DEVELOPMENT
17,899mAREA MINED
307,750m2
TONNES MILLED
3,977ktYIELD
3.54g/tGOLD PRODUCED/SOLD
14,068kg (452,300oz)
UNDERGROUND
17,899m UNDERGROUND
307,750m2SURFACE
1,998kt
UNDERGROUND
1,979kt
SURFACE
0.61g/t
SURFACE
6.49g/t
SURFACE
1,220kg (39,200oz)
UNDERGROUND
12,848kg (413,100oz)
COSTS AND MARGINS
OPERATING COSTS
R1,201/t
SURFACE
R161/t
UNDERGROUND
R2,251/t
OPERATING PROFIT
R1,914m
SURFACE
R256m
UNDERGROUND
R1,658m
OPERATING MARGIN
29%
SURFACE
44%
UNDERGROUND
27%
CAPITAL EXPENDITURE
R1,130m
ORE RESEVE DEVELOPMENT
R841m
PROJECTS
R64m
SUSTAINING
R226m
ALL-IN COST
R430,751/kg (US$1,051oz)
ALL-IN COST MARGIN
9%
TOTAL CASH COST
R342,764/kg (US$836oz)
BURN
STON
E SH
AREH
OLDE
R PL
AN
1887
Gold discovered in the South Rand
Basin outcrops of the Kimberley Reef.
2002
Great Basin Gold acquired 100% of
Southgold and drilled a further 374 boreholes until 2012 within or in close proximity of
the Burnstone Mining Right.
2014
Sibanye Gold took over Wits Gold and acquired Southgold. Sibanye’s
technical team reviewed the technical aspects of Burnstone
with its own feasibility study.
1974
A steep rise in the gold price sparked renewed interest in
the South Rand Basin - Union Corporation/
Glencor and Anglovaal conducted extensive drilling programmes, which confirmed the
occurrence of Kimberley Reef at relatively shallow depths of
200m – 300m.
2006
Positive final feasibility study declared a large Measured and Indicated Gold
Resource (85.2 Mt @ 5.52 g/t for 15.3 Moz)
2012
Southgold placed in a business rescue plan and Witwatersrand Gold acquired the
company.
2002
Southgold Exploration (Pty) Ltd drilled an additional
18 boreholes, primarily within the Burnstone
Mining Right and again intermittently intersected payable
Kimberley Reef.
2015
Completion of the FS, capital approval
obtained to commence with development in
C2016.
2006
The construction of the Burnstone Decline
Shaft started.
2009
The Decline Shaft tunnel intersects Kimberley Reef.
BURNSTONE HISTORY AT A GLANCE OPERATIONAL STATISTICS
BURNSTONELocated on the Far South Rand basin in the mining district Balfour, some 70km south east of Johannesburg in the Mpumalanga province of South Africa. A maiden gold Reserve was declared in C2015. It is planned to be a semi-machanised mining operation using conventional stoping methods.
2015 KEY STATISTICS
MAIN DEVELOPMENT
Not applicableAREA MINED
Not applicableTONNES MILLED
Not applicableYIELD
Not applicableGOLD PRODUCED/SOLD
Not applicable
UNDERGROUNDNot applicable
UNDERGROUND
Not applicableSURFACE
Not applicable
UNDERGROUND
Not applicable
SURFACE
Not applicable
SURFACE
Not applicable
SURFACE
Not applicable
UNDERGROUND
Not applicable
COSTS AND MARGINS
OPERATING COSTS
All costs are capitalised until break-even
OPERATING PROFIT
Not applicableOPERATING MARGIN
Not applicableCAPITAL EXPENDITURE
R272m
PROJECTS
R272m
ALL-IN COST
Not applicable
ALL-IN COST MARGIN
Not applicable
TOTAL CASH COST
Not applicable
SIBANYE GOLD M
INERAL RESOU
RCES AND M
INERAL RESERVES REPORT 2015
www.sibanyegold.co.za