This is a star performer” was the branding given to Cerro Corona, Gold Fields’ new gold/copper mine in Peru that generated a free cash flow of $29-million in the quarter.

Gold Fields South America head Juan Luis Kruger tells Mining Weekly that Cerro Corona outperformed the plan. He believes that its strong cash generation will be ongoing.

Kruger says that the mine is continuing to improve its operational performance in the current quarter, when he expects it to deliver 100 000 gold-equivalent ounces at a cash cost of $355/oz and a notional cash expenditure (NCE) of $575/oz.

Gold Fields is the only gold company to report NCE, which is the total all-in cost including the capital cost that some gold-miners tend to conceal.

The final phase of construction of Cerro Corona’s tailings dam up to level 37/40 is scheduled to be completed on budget by April.

The operation increased its NCE margin from 38% in the September quarter to 43% in the December quarter.

“There have been three consecutive quarters of positive cash-flow generation,” Kruger says.

Cerro Corona is ser-ving as a regional growth base, with the Chucapaca exploration project under way in southern Peru described as “one of the most encouraging projects for Gold Fields in the world”.

Improved drilling is revealing grades of up to 9 g/t and hopes are rising that Chucapaca will become Gold Fields’ next mine in South America.

The company is also drilling the Maricunga belt, in central Chile.

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