Gold Fields Updates Operational Guidance for Q1 F2009, on Track to Produce Approximately 1 MOZ in Q3 F2009



    JOHANNESBURG, South Africa, Oct. 10 /CNW/ - Gold Fields Limited (Gold
Fields) (NYSE, JSE, DIFX: GFI) today updated its operational guidance for Q1
F2009.
    Group attributable production for Q1 F2009 is expected to be
approximately 798,000 ounces. This is 2.7% lower than the guidance provided on
1 August 2008, which indicated production of 820,000 ounces. This is due
mainly to slower than expected build-up of production at Cerro Corona.
    Group cash costs are expected to be in line with previous guidance, at
approximately R154,000/kg (US$618/oz). Notional Cash Expenditure (NCE), which
includes all operating costs as well as sustaining and project capital, is
expected to be approximately 6% better than previous guidance, at R227,000 /kg
(US$910/oz).
    Nick Holland, Chief Executive Officer of Gold Fields, said: "In line with
our previous guidance, production in the September quarter was expected to be
impacted by rehabilitation actions at South Deep, Driefontein and Kloof. With
all of the rehabilitation work in South Africa as well as the international
growth projects scheduled for completion and full build up by the end of
December, we remain on track to achieve our short-term target of a run rate of
approximately 1 million attributable equivalent ounces of gold during the
March quarter next year, at an NCE of approximately US$725/oz at R/US$8.00."
    Q1 F2009 gold production for the South African operations is expected to
be approximately 492,000 ounces. This is 2% better than previous guidance
provided on 1 August 2008. South African cash costs and NCE is expected to be
approximately R154,000/kg (US$618/oz) and R213,000/kg (US$857/oz)
respectively, compared with previous guidance of R157,000/kg (US$610/oz) and
R221,000/kg (US$860/oz) respectively.

    
    -   Driefontein is expected to produce approximately 206,700 ounces of
        gold, which is better than previous guidance. Cash costs and NCE are
        expected to be approximately R130,000/kg (US$522/oz) and R169,000/kg
        (US$680/oz) respectively.

    -   Kloof is expected to produce approximately 156,600 ounces of gold,
        which is approximately 25% better than previous guidance. Cash costs
        and NCE are expected to be approximately R155,000/kg (US$623/oz) and
        R211,400/kg (US$850/oz) respectively.

    -   Beatrix is expected to produce approximately 101,400 ounces of gold,
        which is approximately 13% below previous guidance. This decline is
        as a result of lower volumes mined and a lower mine call factor which
        resulted in lower yields. Cash costs and NCE are expected to be
        approximately R151,000/kg (US$607/oz) and R206,600/kg (US$830/oz)
        respectively.

    -   South Deep is expected to produce approximately 27,300 ounces of
        gold, which is approximately 13% below previous guidance. This is due
        to a slower than expected return to operational stability after the
        completion of the restructuring of the mine, which decreased the
        workforce from 4,500 to 2,400 following the depletion of the VCR
        above 95 level. Cash costs and NCE are expected to be approximately
        R340,000/kg (US$1,365/oz) and R580,000/kg (US$2,328/oz) respectively.
    

    Q1 F2009 attributable gold production for the international operations is
expected to be approximately 306,000 equivalent ounces. This is approximately
30,000 equivalent ounces below the guidance given on 1 August 2008, due mainly
to the slower than expected build-up of production at Cerro Corona. Cash costs
and NCE for the international operations are expected to be approximately
US$616/oz and US$983/oz respectively, compared with the previous guidance of
US$570/oz and US$1,060/oz.

    
    -   Tarkwa is expected to produce approximately 156,200 ounces of gold,
        which is approximately 2% below previous guidance. This decrease is
        mainly due to a build-up of Gold in Process (GIP) in the South Heap
        Leach pads. Cash costs and NCE are expected to be approximately US
        $548/oz and US$1,029/oz respectively. NCE includes the effect of the
        high capital expenditure on the mill expansion, which is nearing
        completion.

    -   Damang is expected to produce approximately 44,000 ounces of gold,
        which is approximately 12% below previous guidance. This decrease is
        mainly due the premature failure of the pebble crusher, which has
        since been repaired. Cash costs and NCE are expected to be
        approximately US$790/oz and US$895/oz respectively.

    -   St Ives is expected to produce approximately 101,200 ounces of gold,
        which is approximately 6% below previous guidance. This decrease is
        mainly due to lower grades at Leviathan and Cave Rocks. The ramp up
        at Cave Rocks was impacted by complex geology which delayed the
        production build-up, but which is now better understood and should
        result in improved production in Q2 F2009. Cash costs and NCE are
        expected to be approximately US$708/oz and US$986/oz respectively.

    -   Agnew is expected to produce approximately 52,200 ounces of gold,
        which is approximately 5% better than previous guidance. Cash costs
        and NCE are expected to be approximately US$494/oz and US$588/oz
        respectively.

    -   Cerro Corona, which started production during the quarter and is
        still in the commissioning phase, is expected to produce
        approximately 12,000 gold equivalent ounces for the quarter. This is
        below previous guidance of 42,000 gold equivalent ounces, and is due
        to commissioning problems, with the flotation circuits not
        simultaneously achieving both copper and gold recoveries. These
        commissioning problems are not unusual and are expected to be
        resolved by the end of December 2008. The first shipment of
        concentrate was made on 30 September 2008. October month production
        is expected to be between 15,000 and 20,000 gold equivalent ounces.
        Full production is still expected to be achieved by the end of
        December 2008.
    

    The Driefontein backlog secondary support as well as the South Deep 95 2
West and 3 West ramp rehabilitation projects were completed as planned by the
end of Q1 F2009. The Kloof Main shaft steelwork replacement is expected to be
completed by the end of Q2 F2009.
    Despite the slower than expected build-up, the commissioning of Cerro
Corona is progressing well and the mine is on track to reach full production
by the end of December this year. The Tarkwa CIL Plant expansion is on track
for completion and build-up to full throughput by the end of December 2008. At
St Ives, Cave Rocks and Belleisle are expected to reach full production by the
end of Q2 F2009.
    Detailed results for Q1 F2009 will be published on 29 October 2008, at
08:00am, South African time.

    About Gold Fields

    Gold Fields Limited is one of the world's largest unhedged producers of
gold with attributable production of 3,64 million ounces per annum from eight
operating mines in South Africa, Ghana and Australia. A ninth mine, Cerro
Corona Gold/Copper mine in Peru, commenced production in August 2008 at an
initial rate of approximately 375,000 gold equivalent ounces per annum. Gold
Fields aims to reach a production rate of approximately 4.0 million ounces per
annum during the March quarter of 2009. The company has total attributable ore
reserves of 83 million ounces and mineral resources of 251 million ounces.
Gold Fields is listed on the JSE Limited (primary listing),New York Stock
Exchange (NYSE) and Dubai International Financial Exchange (DIFX) New Euronext
in Brussels (NYX) and Swiss Exchange (SWX). For more information please visit
the Gold Fields website at http://www.goldfields.co.za





For further information:

For further information: Willie Jacobsz, Tel: +27-508-358-0188,  Mobile:
+27-857-241-7127, Email: willie.jacobsz@gfexpl.com


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