Drilling by South Africa’s
Based on an additional 14,300 metres of infill drilling on the Konttijarvi and Ahmavaara deposits, plus 5,300 metres of definition drilling on extensions of the deposits at Konttijarvi North and Ahmavaara East, resources at the two deposits have climbed to 9.1 million from 6 million oz. combined platinum, palladium and gold, based on a cutoff of 0.5 gram platinum-palladium-gold.
Resources in all categories at Ahmavaara now stand at 99.8 million tonnes running 1.1 grams palladium, 0.23 gram platinum and 0.14 gram gold per tonne, plus 0.22% copper and 0.09% nickel. Included in that amount is a measured resource of 27.2 million tonnes grading 1.33 grams palladium, 0.27 gram platinum, 0.16 gram gold, 0.27% copper and 0.12% nickel.
At Ahmavaara East, total resources, based on 11 holes averaging 141 metres in length, are pegged at 29.8 million tonnes grading 0.83 gram palladium, 0.18 gram platinum, 0.11 gram gold, 0.17% copper, and 0.06% nickel. Indicated resources include 1.2 million tonnes running 0.71 gram palladium, 0.13 gram platinum, 0.10 gram gold, 0.15% copper, and 0.05% nickel.
With the discovery and evaluation of Konttijarvi North, an up-thrown extension to the Konttijarvi deposit, combined resources at Konttijarvi have increased to 54 million tonnes averaging 1.44 grams palladium, 0.4 gram platinum, 0.1 gram gold, 0.16% copper and 0.06% nickel. Measured resources ring in at 19.1 million tonnes of 1.56 grams palladium, 0.43 gram platinum, 0.1 gram gold, 0.15% copper and 0.08% nickel.
The partners are in the midst of a feasibility study of the Suhanko project. The study is looking at a proposed open-pit operation with on-site processing to concentrate. It will also combining open-pit with underground mining at the SK Reef, 20 km to the northeast.
When resources at the SK Reef (35 million tonnes running 3.55 grams palladium, 0.97 gram platinum, 0.15 gram gold, 0.12% copper and 0.1% nickel) are included, Suhanko’s total resource grows to 1.54 grams palladium, 0.38 gram platinum, 0.13 gram gold, 0.18% copper and 0.08% nickel for 14 million oz. of contained platinum group metals and gold.
Since the beginning of 2002, Gold Fields and Outokumpu have been jointly funding the project at their respective 51-49% interests.
Gold Fields posted record earnings of US$112 million (or 24 per share) on revenue of US$372 million for the recent fourth quarter of its fiscal year. A year earlier, the company suffered a net loss of US$194.7 million (43 per share) on US$235.6 million.
The quarter’s attributable gold production increased 36% from the previous year to 1.2 million oz., of which 29% was derived from international operations, up from 27% in the previous quarter. The increase is due to the acquisition of Damang mine in Ghana and the St. Ives and Agnew mines in Australia. Total cash costs climbed US$11 per oz. from the first quarter to US$171 per oz. on a strengthening rand.
Overall, in the company’s 2002 fiscal year, net earnings amounted to US$302 million (65 per share) on revenue of US$1.2 billion, compared with a year-earlier loss of US$119.2 million (26 per share) on US$1 billion.
Attributable gold production between the two periods rose to 4.1 million oz. from 3.7 million oz., while total cash costs fell to US$171 from US$196 per oz.
The company averaged US$311 per oz. for its quarterly production and US$292 per oz. for the year.
At the end of June, the company had US$196 million in cash and was US$182 million in debt.
Gold Fields’ board has declared a final dividend of R2.20 per share, payable to shareholders of record on Aug. 23, 2002.
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