Gold fields adds to riches with share of South Deep: Gold Fields is to operate its recently acquired South Deep stake as a single economic unit with its Kloof mine, using existing infrastructure. The acquisition makes GF number-one in reserve ounce terms writes Priscilla Ross.(Mining)

BARRICK, THE CANADIAN major, has agreed to sell its 50 per cent stake in the South Deep project to Gold Fields for US$1.6bn of which US$1.2bn is in cash and the rest--US$325mn--is in shares. South Deep is one of the truly massive gold ore bodies in the world with resources of 56mn ounces.

Barrick acquired its stake in South Deep following its US$10bn acquisition of the other Canadian major Placer Dome earlier in 2006. The sale of Barrick's stake in South Deep is expected to close in early 2007. Barrick's stake in South Deep represents two per cent of its annual production but some 10 per cent of its reserve count. In a separate transaction Gold Fields of South Africa has made an offer to acquire the entire issued share capital of Western Areas of South Africa other than the 18-19 per cent of the shares owned already by Gold Fields. Western Areas owns the other 50 per cent of the South Deep project. …