Developing Gold Fields’ La Cima Cerro Corona Project in Peru

Gold Fields acquired an option to purchase the Cerro Corona project, located in Hualgayoc, Cajamarca Department, Peru, in December 2003. In January 2006, the option was taken up and the transaction closed. During the intervening months, project development occurred against the backdrop of a presidential election, increasing national social activism and environmental regulation, rapidly escalating operating and capital costs, as well as an unprecedented demand for engineering and technical skills. Project “Lessons Learned” are discussed in the context of an evolving strategy. The Cerro Corona project forms part of a porphyry copper-gold deposit situated within the Hualgayoc Mining District in northern Peru. It is located in the highest part of the Western Cordillera of the Andes, close to the headwaters of the Atlantic Continental Basin. It lies approximately 90 km (56 miles) by road north of the Department of Cajamarca’s capital city and near the village of Hualgayoc. Access to the Cerro Corona project from Cajamarca is by two roads, one from Cajamarca to the Yanacocha Mine 45 km (28 miles), and then from Yanacocha to the village of Hualgayoc and the town of Bambamarca 45 km (28 miles).