Name and Location
Burnstone gold mine restart project, Mpumalanga, South Africa.

Client
In April 2014, Sibanye Gold concluded the acquisition of Witwatersrand Consolidated Gold Resources (Wits Gold). Wits Gold had previously secured an option to acquire Southgold Exploration, which owns the Burnstone mine through a business rescue process. Following an extensive due diligence, Sibanye indicated its intention to exercise the option to acquire Southgold. Transaction closure is dependent on Southgold coming out of business rescue.

Project Description
Sibanye Gold is reviewing its options to bring the idled Burnstone mine back into production from a zero base.

Sibanye believes that the mine failed owing to several factors, including an incorrect resource model and the use of an inappropriate mining method for the complex structure, which led the previous owners of the mine, Great Basin Gold, to mine the wrong sections at a substantial cost.

Sibanye plans to design the mine around the orebody and institute conventional breast mining technology and narrowly focus on selective, higher-grade sections after redoing the mine resource model and targeting higher-grade areas earlier.

The company aims to remove tramming constraints through historically mined reef areas on footwall drives and use conventional and proven ventilation layouts.

Further, Sibanye plans to remove mechanised on-reef development to reduce unplanned dilution and loss factors, and use multiple existing development ‘attack’ points to fast-track development and create flexibility.

Conceptual model parameters envisage steady-state production at between 80 000 oz and 100 000 oz.

Value
Sibanye initially earmarked R180-million over 15 months for infrastructure capital.

Duration
Not stated.

Latest Developments
Sibanye is upgrading its due diligence study to a detailed life-of-mine plan, due for completion in the first quarter of 2015, which will be associated with South African Mineral Resource Committee-compliant resources and reserves.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sibanye Gold head of corporate affairs James Wellsted, tel +27 11 278 9600 or email james.wellsted@sibanyegold.co.za.