Statement of Mineral Resources and Mineral Reserves – a summary

Sibanye's Mineral Resources and Mineral Reserves are reported in accordance with the SAMREC Code, and are considered to be fully compliant in all material respects with the requirements of the code.

The statement of 31 December 2015 outlines the Mineral Resources and Mineral Reserves at each of our operating mines and growth projects, and compares to the last full declaration made as at 31 December 2014, and therefore includes a 12-month production depletion period. The Mineral Resources and Mineral Reserves are underpinned by appropriate Mineral Resource Management processes and protocols that ensure adequate corporate governance.

The commodity prices used for the Mineral Reserve declaration are in accordance with the SEC guidelines and approximate the historic two- to three-year average commodity prices. As a result, a gold price of R430,000/kg and a uranium price of R1,140/kg has been used. The Mineral Resources were declared at a premium of 10% over the Mineral Reserve price. All stated Mineral Resources and Mineral Reserves are net of 12 months' production depletion since the 2014 declaration.

Gold and uranium Mineral Resources and Mineral Reserves

GOLD

Mineral Resources (98.8Moz)
Mineral Reserves (31.0Moz)

URANIUM

Mineral Resources (229.9Mlb)
Mineral Reserves (113.8Mlb)

This section is a condensed overview of the Sibanye Gold Mineral Resource and Mineral Reserve Supplement 2015. This supplement contains a comprehensive review of our Mineral Resources and Mineral Reserves as at 31 December 2015, and outlines in detail the location, geology, mining, processing, operational statistics and changes at each of Sibanye's mining operations and projects.

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 4.8573.792Proved AI 20.1 3.7 2.3891.706
Indicated AI2 22.2 5.2 3.6775.332Probable AI2 18.1 3.2 1.8751.892
Inferred AI 0.0 3.3 0.0040.004     
Total AI 48.8 5.4 8.5389.128Total AI 38.2 3.5 4.2643.598
Indicated BI3 6.9 4.4 0.9910.660     
Beatrix –
total underground
 55.8 5.3 9.5309.788Beatrix –
total underground
 38.2 3.5 4.2643.598
COOKE
    
COOKE
    
Measured AI 8.5 5.7 1.5663.175Proved AI 6.8 4.7 1.0141.555
Indicated AI 34.7 7.1 7.9697.659Probable AI 3.1 4.6 0.4570.286
Inferred AI 11.9 6.1 2.3261.643     
Total AI 55.1 6.7 11.86212.477Total AI 9.8 4.7 1.4711.841
Indicated BI4 40.7 3.1 3.9983.998     
Cooke –
total underground
 95.8 5.1 15.86016.475Cooke –
total underground
 9.8 4.7 1.4711.841
DRIEFONTEIN
    
DRIEFONTEIN
    
Measured AI 18.9 10.7 6.5038.229Proved AI 17.9 7.2 4.1332.716
Indicated AI 7.5 12.7 3.0534.088Probable AI 8.6 6.7 1.8463.387
Inferred AI 0.7 14.6 0.3140.550     
Total AI 27.0 11.4 9.87012.867Total AI 26.4 7.0 5.9806.103
Indicated BI5 28.0 10.9 9.8219.684Probable BI5 9.1 7.3 2.1221.126
Indicated BI5   0.204     
Total BI 28.0 10.9 9.8219.888Total BI 9.1 7.3 2.1221.126
Driefontein –
total underground
 55.0 11.1 19.69122.755Driefontein –
total underground
 35.5 7.1 8.1027.228
KLOOF
    
KLOOF
    
Measured AI 14.4 13.4 6.1969.618Proved AI 19.6 7.7 4.8572.932
Indicated AI 1.2 12.4 0.4680.775Probable AI 4.6 6.9 1.0243.243
Total AI 15.5 13.3 6.66410.393Total AI 24.2 7.6 5.8816.175
Indicated BI6 24.6 14.2 11.2468.538Indicated BI6 2.1 7.4 0.5020.532
Indicated BI6 16.4 19.2 10.11210.175     
Total BI 41.0 16.2 21.35918.713Total BI 2.1 7.4 0.5020.532
Kloof –
total underground
 56.6 15.4 28.02329.106Kloof –
total underground
 26.3 7.5 6.3836.706
Operations –
total underground
 263.2 8.6 73.10378.124Operations –
total underground
 109.8 5.7 20.21919.374
Surface Rock Dumps (SRD) and Tailings Storage Facilities (TSF) Surface Rock Dumps (SRD) and Tailings Storage Facilities (TSF)
Beatrix (Indicated) 5.3 0.4 0.0620.071Beatrix (Probable)5.3  0.4 0.0620.071
Randfontein surface (Measured)4.70.30.0520.086Randfontein surface (Proved)4.70.30.0520.086
Randfontein surface (Indicated)   0.028Randfontein surface (Probable)   0.028
Driefontein (Indicated)4.60.60.0940.125Driefontein (Probable)4.60.60.0940.125
Kloof (Indicated)9.50.50.1630.223Kloof (Probable)9.50.50.1630.194
Operations – total surface (SRD and TSF) 24.1 0.5 0.3720.533Operations – total surface (SRD and TSF) 24.1 0.5 0.3720.504
Total operations (incl. SRD and TSF – excl. Projects) Total operations (incl. SRD and TSF – excl. Projects)
Beatrix61.14.99.5929.859Beatrix43.53.14.3263.669
Cooke100.54.915.91116.589Cooke14.53.31.5231.955
Driefontein 59.6 10.3 19.78622.880Driefontein 40.1 6.4 8.1967.354
Kloof66.113.328.18629.329Kloof35.85.76.5466.900
Operations –
total (incl. SRD and TSF)
 287.3 8.0 73.47578.657Operations –
total (incl. SRD and TSF)
 134.0 4.8 20.59119.878
PROJECTS
    
PROJECTS
    
BEISA NORTH
    
BEISA NORTH
    
Inferred14.83.41.6191.619     
Beisa North –
total underground
14.83.41.6191.619Beisa North –
total underground
    
BLOEMHOEK
    
BLOEMHOEK
    
Indicated27.44.74.1634.163     
Inferred0.94.90.1350.135     
Bloemhoek –
total underground
28.34.74.2974.297Bloemhoek –
total underground
    
BURNSTONE
    
BURNSTONE
    
Indicated25.45.34.3504.350Probable13.04.31.799 
Inferred28.74.94.5404.540     
Burnstone –
total underground
54.15.18.8908.890Burnstone –
total underground
13.04.31.799 
DE BRON MERRIESPRUIT
    
DE BRON MERRIESPRUIT
    
Indicated23.04.53.3073.307Probable15.44.32.1122.088
Inferred5.34.20.7150.715     
De Bron Merriespruit –
total underground
28.34.44.0224.022De Bron Merriespruit –
total underground
15.44.32.1122.088
Projects –
total underground
125.54.718.82818.828Projects –
total underground
28.44.33.9112.088
WRTRP
    
WRTRP
    
Measured662.50.35.9625.935Proved    
Indicated52.30.30.5240.524Probable714.80.36.4866.459
WRTRP –
total surface
714.80.36.4866.459WRTRP –
total surface
714.80.36.4866.459
Projects –
total surface
714.80.36.4866.459Projects –
total surface
714.80.36.4866.459
Projects –
total underground
and surface
840.30.925.31425.287Projects –
total underground
and surface
743.20.410.3978.547
Grand total – underground
and surface
1127.62.798.790103.944Grand total – underground
and surface
877.11.130.98828.425
  • 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/kg.
  1. 1 Managed, unless otherwise stated
  2. 2 Beatrix Indicated Mineral Resources AI and Probable Mineral Reserves includes the Beisa Project
  3. 3 Beatrix Indicated Mineral Resources BI refers to material below 26 Level (1,341mbs)
  4. 4 Cooke Inferred Mineral Resources BI refers to material within Cooke 4 Shaft prospecting right (Zuurbekom)
  5. 5 Driefontein Indicated and Inferred Mineral Resources and Probable Mineral Reserves BI refers to material below 50 Level (3,300mbs)
  6. 6 Kloof Indicated and Inferred Mineral Resources and Probable Mineral Reserves BI refers to material below 45 Level (3,347mbs)
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 (g/t) U3O8 (Moz) U3O8 (Moz) Uranium classification per operation/project Tons (Mt) Grade (g/t) U3O8 (Moz) U3O8 (Moz)
OPERATIONS
    
OPERATIONS
    
BEATRIX2
    
BEATRIX2
    
Measured AI3.61.0868.5488.548Proved AI    
Indicated AI7.81.06918.33018.330Probable AI7.40.71511.654 
Inferred AI0.01.1010.0900.090     
Beatrix (Beisa) –
total underground
11.41.07426.96826.968Beatrix (Beisa) –
total underground
7.40.71511.654 
COOKE
     
COOKE
    
Measured AI4.90.4474.8735.697Proved AI2.70.3482.0563.388
Indicated AI11.00.47611.54615.987Probable AI1.50.3141.0170.439
Inferred AI6.70.5468.0200.717     
Total AI22.60.49024.43922.401Total AI4.20.3363.0733.827
Indicated BI335.90.55543.98443.984     
Cooke –
total underground
58.50.53068.42366.385Cooke –
total underground
4.20.3363.0733.827
Operations –
total underground
69.90.61995.39193.353Operations –
total underground
11.50.57914.7273.827
PROJECTS
    
PROJECTS
    
BEISA NORTH
    
BEISA NORTH
    
Inferred14.81.08435.37335.373     
Beisa North –
total underground
14.81.08435.37335.373Beisa North –
total underground
    
Projects –
total underground
14.81.08435.37335.373Projects –
total underground
    
WRTRP
    
WRTRP
    
Measured654.30.06289.15188.717Proved    
Indicated52.30.0869.9369.936Probable706.60.06499.08898.653
WRTRP –
total surface
706.60.06499.08898.653WRTRP –
total surface
706.60.06499.08898.653
Projects –
total surface
706.60.06499.08898.653Projects –
total surface
706.60.06499.08898.653
Projects –
total underground
and surface
721.40.085134.461134.026Projects –
total underground
and surface
706.60.06499.08898.653
Grand total –
underground and surface
791.30.132229.852227.379Grand total –
underground and surface
718.10.072113.814102.480
  • Al: Above Infrastructure
  • All tons (t) relate to 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 used.
  1. 1 Managed, unless otherwise stated
  2. 2 Beatrix includes uranium Mineral Resources and Mineral Reserves from the Beisa complex
  3. 3 Cooke Inferred Mineral Resources BI refers to material within the Cooke 4 Shaft prospecting right (Zuurbekom)
GOLD MINERAL RESOURCE RECONCILIATION
Factors Gold (Moz)
31 December 2014103.944
2015 depletion(1.984)
Post-depletion101.960
Changes in geology structure at operations0.641
Changes in estimation models at operations due to additional sampling(0.053)
Changes in geostatistical modelling parameters at operations0.874
Specific inclusions: 
Deposition to active TSFs which form part of the WRTRP0.027
Additional surface sources (SRDs) at Driefontein, Kloof and Beatrix0.024
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 201598.790

Rounding off of figures may result in minor computational discrepancies. Where this happens, it is not deemed significant.

GOLD MINERAL RESERVE RECONCILIATION
Factors Gold (Moz)
31 December 201428.425
2015 depletion(1.577)
Post-depletion26.848
Changes in geology structure at operations(0.081)
Changes in estimation models at operations(0.845)
Technical factors [Mine Call Factor (MCF), % waste mining, etc]0.452
Specific inclusions: 
Driefontein 5 Shaft drop-down project extension beyond inner core1.016
Beisa Project maiden Mineral Reserve0.495
Revised mining method applied to De Bron Merriespruit Project0.024
Burnstone Project maiden Mineral Reserve1.799
Beatrix South G-Block Project0.108
White areas and general additions mainly at Driefontein 8 Shaft and Beatrix West1.073
Secondary reefs at Driefontein 8 Shaft and Kloof 8 Shaft0.362
Deposition to active TSFs which form part of the WRTRP0.027
Additional SRDs at Driefontein, Kloof and Beatrix0.054
Specific exclusions: 
Beatrix South 2 Shaft decommissioned(0.113)
Uneconomic areas excluded, mainly from Cooke(0.230)
31 December 201530.988

Rounding off of figures may result in minor computational discrepancies. Where this happens, it is not deemed significant.

KEY ASPECTS

that impacted the 31 December 2015 Statement of Mineral Resources and Mineral Reserves were:

  • Gold Mineral Reserves, including projects, for the Group increased by 9% to 31.0Moz from 28.4Moz declared at 31 December 2014 despite depletion of 1.6Moz in 2015.
  • 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 Group operations, excluding projects, 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 and Kloof Reef 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 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 for the project, 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 at the Beisa Project at Beatrix West, following optimisation of the PFS, which was conducted in 2014.
URANIUM MINERAL RESOURCE RECONCILIATION
Factors U3O8 (Moz)
31 December 2014227.379
2015 depletion(0.187)
Post-depletion227.193
Changes in estimation models at operations due to additional sampling0.427
Specific inclusions: 
Deposition to active TSFs which form part of the WRTRP0.435
Specific exclusions: 
Uneconomical areas excluded3.899
Resource blocks clean-up(2.102)
31 December 2015229.852

Rounding off of figures may result in minor computational discrepancies. Where this happens, it is not deemed significant.

URANIUM MINERAL RESERVE RECONCILIATION
Factors U3O8 (Moz)
31 December 2014102.480
2015 depletion(0.291)
Post-depletion102.189
Changes in estimation models at operations0.341
Exclusions at Cooke 3 Shaft and Cooke 4 Shaft due to tail management(0.804)
Specific inclusions: 
Beisa Project maiden Mineral Reserve11.654
Deposition to active TSFs which form part of the WRTRP0.435
31 December 2015113.814

Rounding off of figures may result in minor computational discrepancies. Where this happens, it is not deemed significant.


ABRIDGED REVIEW PER OPERATION

BEATRIX

The Beatrix Operation is a low-cost, high productivity asset with a life of mine (LoM) extending to 2029, with 9.6Moz gold and 27.0Mlb uranium Mineral Resources. The underground production is supplemented by processing of historic rock dumps, with an estimated gold Mineral Reserve 0.1Moz. Gold Mineral Reserves increased by 18% to 4.3Moz net of production depletion in 2015 due to an extended life at Beatrix West and South, and due to the inclusion of white areas. In addition, a maiden 0.5Moz gold Mineral Reserve and 11.7Mlb uranium Mineral Reserve has been declared at the Beisa Project.

DRIEFONTEIN

The Driefontein Operation is a high-yield, medium to long-term operation with gold Mineral Resources of 19.8Moz and gold Mineral Reserves of 8.2Moz and a LoM extending to 2042, following the inclusion of the 2.1Moz below infrastructure decline project at number 5 Shaft. The underground production is supplemented by processing of an estimated 0.1Moz of gold Mineral Reserves contained in historic rock dumps. The gold Mineral Reserves increased by 11% net of depletion from the previous year, mainly due to the extension of the area accessible through the Driefontein 5 Shaft below infrastructure project, which will provide access to an additional 2.1Moz, with first production scheduled in 2024, as well as previously excluded secondary reefs and white areas at 8 Shaft which are able to be economically and safely extracted.

KLOOF

The Kloof Operation is a high-yield medium to long-term operation, with gold Mineral Resources of 28.2Moz and gold Mineral Reserves of 6.5Moz. The Kloof operation LoM has been extended by three years to 2033, following the inclusion of the below infrastructure project at number 4 Shaft, which will provide access to an additional 0.5Moz gold Mineral Reserve, and is scheduled for first gold production by 2021. The underground production is supplemented by processing of historic rock dumps with an estimated gold Mineral Resource of 0.2Moz. The Mineral Reserves decreased by 5% year-on-year, with production depletion partly offset by additional Mineral Reserves from secondary reefs and white areas.

COOKE

The Cooke Operation is a 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 15.9Moz 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 exploration development. The underground production is supplemented by processing historic tailings storage facilities (containing an estimated gold Mineral Reserve of 0.1Moz).

CORPORATE GOVERNANCE

Sibanye reports its Mineral Resources and Mineral Reserves in accordance with the SAMREC Code, the updated Section 12 of the JSE Listings Requirements and the SEC Industry Guide 7, aligned with guiding principles of the SOX. Guided by commitment to corporate governance, the statement has been reviewed by Group Technical Services, and the statement for the operations were independently reviewed by Amec Foster Wheeler (Mineral Resources) and by Mineral Corporation Consultancy Proprietary Ltd (Mineral Reserves), and has been found to be compliant with the relevant codes with no material shortcomings.

The Mineral Resources and Mineral Reserves are estimates at a point in time, and will be affected by fluctuations in the gold price, US dollar currency exchange rates, operating costs, mining permits, changes in legislation and operating factors. Although all permits may not be finalised and in place at the time of reporting, there is no reason to expect that these will not be granted. However, the length of the approval process for such permits may have an impact on the schedules stated.

All statement figures are managed, and Mineral Resources are reported inclusive of Mineral Reserves, while production volumes are reported in metric tons (t). Gold and uranium are reported separately, therefore no gold equivalents are stated to avoid potential anomalies as a result of year-on-year metal price differentials. All financial models used to determine the Mineral Reserves are based on current tax regulations at 31 December 2015.

The lead competent person designated in terms of the SAMREC Code, who takes responsibility for the consolidation and reporting of Sibanye's Mineral Resources and Mineral Reserves, and of the overall regulatory compliance of these figures, is Gerhard Janse van Vuuren, who gave his consent for the disclosure of the 2015 Mineral Resources and Mineral Reserves Statement. Gerhard [BTech (MRM), GDE (Mining Eng), MBA and MSCC] is registered with Plato (PMS No 243) and has 28 years' experience relative to the type and style of mineral deposit under consideration. He is the current Vice President: Mine Technical Services and is a full-time employee of Sibanye.

The respective business unit-based Mineral Resource managers, relevant project managers and the respective Mineral Resource Management discipline heads have been designated as the competent persons in terms of the SAMREC Code, and take responsibility for the reporting of Mineral Resources and Mineral Reserves for their respective area(s). Additional information regarding these personnel, as well as the teams involved with the compilation of the Mineral Resource and Mineral Reserve declaration is incorporated in the Mineral Resources and Mineral Reserves Supplement that has been published in conjunction with this Sibanye Gold Integrated Annual Report 2015.

ABRIDGED REVIEW PER PROJECT

BURNSTONE PROJECT

A maiden gold Mineral Reserve of 1.8Moz was declared at the Burnstone project, following the completion of a FS for the project, and the initiation of the full scale development of the operation. The project envisages steady state production of approximately 120,000oz per annum from 2021 over a 23-year LoM.

WEST RAND TAILINGS RETREATMENT PROJECT

The WRTRP will process the historical tailings storage facilities of the Driefontein, Kloof and Cooke operations for gold and uranium. The DFS for this project has been completed, and the project has an estimated gold and uranium Mineral Reserve of 6.5Moz and 99.1Mlb respectively.

DE BRON MERRIESPRUIT PROJECT

The gold Mineral Reserves for the De Bron Merriespruit Project are based on the original FS previously conducted by Wits Gold in 2013. However, the production design and schedule was modified during 2015 in line with geological and estimation models which were restated following the acquisition of Wits Gold in 2014. The Mineral Reserves for this project remain at 2.1Moz.

THE BLOEMHOEK PROJECT

The Bloemhoek Project, which is adjacent to Beatrix North operation, 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-drilling programme designed to improve geological confidence, in the immediate vicinity of the planned decline system, will also be completed.

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