Name of the Project
Salares Norte gold project.

Location
Atacama region, northern Chile.

Project Owner/s
Minera Gold Fields Salares Norte Ltda (MGFSNL), in which Gold Fields indirectly holds a 100% interest.

Project Description
Salares Norte has a maiden reserve of 21.1-million tonnes grading 5.1 g/t gold and 57.9 g/t silver. The definitive feasibility study (DFS) for the project, which includes Brecha Principal and Agua Amarga, has been completed and peer reviewed.

The DFS envisages an openpit mining operation using conventional mining equipment. It estimates an initial 11.5-year mine life, with production, on average, of 450 000 oz/y for the first seven years. At peak production, the project is expected to produce 550 000 oz/y of gold.

Mining and blasting services will be undertaken by contractors.

There will also be a significant stockpiling strategy.

An estimated 308-million tonnes of waste mining is expected over the mine life.

The company will introduce tailings filtration before it is dry-stacked at the tailings facility, which is 1 km away from the processing plant. The tailings will be transported hydraulically for filtration, and from there on trucks to the storage facility.

The plant will start with two filters, with a third to be added at a later stage.

The DFS also includes plans for an on-site diesel-generated 14 MW power station.

The company plans to introduce renewables in stages as the project progresses, with an ultimate target of 20% of power consisting of renewables.

Potential Job Creation
It is estimated that about 2 700 jobs will be created during the construction of the mine. About 900 workers are expected to be employed once the mine is operational.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 7.5% discount rate, of $654-million and an internal rate of return of 25%, with a payback of 2.2 years.

Capital Expenditure
The project is estimated at $860-million.

Planned Start/End Date
The project started construction in January 2021 and is scheduled for completion in late 2022, with the first gold production in early 2023.

Latest Developments
Gold Fields has confirmed the death of three foxes at its Salares Norte gold/copper project. The country’s environmental regulator has since issued some compliance orders to be adhered to.

These include Gold Fields’ submitting a detailed report of the three incidents; reducing the speed limit for all traffic on the project’s interior roads, since two of the foxes were killed in road accidents; and compiling a detailed report on each of the project’s pools, including sludge pools for exploration, since one fox drowned in such a pool.

Moreover, the company has to review the categorisation of incidents reportable to the authorities.

Gold Fields remains on track to start production at the mine in early 2023.  

Key Contracts, Suppliers and Consultants
Fluor (engineering, procurement and construction management).

Contact Details for Project Information
Gold Fields, email Investors@goldfields.com.