Gold Fields Cuts Minimum Output for New Mines By 60% (Update2)

By Carli Lourens

Sept. 29 (Bloomberg) -- Gold Fields Ltd., Africa's second- largest producer of the metal, cut the minimum output it demands before investing in new mines by 60 percent as larger, safer deposits become more scarce.

The company will consider deposits as small as 2 million ounces that yield about 200,000 ounces a year, compared with 5 million-ounce deposits yielding 500,000 ounces, Johannesburg- based Gold Fields said in its annual report published today on its Web site. There are ``very few'' large deposits, it said.

Interesting point about Gold Fields change in investment criteria with "larger, safer deposits" becoming more scarce. Also given today's climate it will be harder and harder for the juniors to finance their activities. Kodiak is in the rare position of not only having a great property, but also money in the bank to explore it without having to go back to the market.

I want to clarify that point with Brian on Sunday.

Regards

Kohai