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HAR - Harmony Gold Mining Company Ltd - Mineral resources and mineral reserves
statement update as at 30 June 2010
Harmony Gold Mining Company Ltd
Incorporated in the Republic of South Africa
Registration number: 1950/038232/06
JSE Share code: HAR
NYSE Share code: HMY
NASDAQ Share code: HMY
ISIN: ZAE000015228
PRESS RELEASE
MINERAL RESOURCES AND MINERAL RESERVES STATEMENT UPDATE AS AT 30 JUNE 2010
Harmony maintains reserves at 48 million ounces while focusing on better quality
ounces to realise safe, profitable and sustainable operations.
Johannesburg, Monday 02 August 2010. Harmony Gold Mining Company Limited
(Harmony) is pleased to publish its Statement of Mineral Resources and Mineral
Reserves as at 30 June 2010, which has been produced in accordance with the
South African Code for the Reporting of Mineral Resources and Mineral Reserves
(SAMREC Code) and the Australian Code (JORC Code). The Measured and Indicated
Mineral Resources are inclusive of those Mineral Resources modified to produce
the Mineral Reserves.
Graham Briggs, Chief Executive Officer of Harmony, notes that, "Careful,
considered restructuring of Harmony`s asset base focusing on better-quality
ounces is in line with Harmony`s strategy to produce profitable and sustainable
operations. At the end of June 2010, Harmony`s attributable gold mineral reserve
was maintained at 48.1 million ounces, which is similar to the previous year`s
declared reserve, despite shaft closures and depletion which occurred during the
year. Attributable gold mineral resources declined by 9% to 189.2 million
ounces".
Briggs says that steps taken to improve the quality of Harmony`s portfolio have
included:
closure of the Brand 3, Merriespruit 3, Harmony 2, Evander 2, 5 and 7 shafts (a
total of six shafts) due to their ore bodies having reached the end of their
economic lives;
continued investment in exploration and development at the company`s Phakisa,
Kusasalethu, Doornkop and Hidden Valley growth projects, reaffirming their
robust life-of-mine plans and reserve positions;
acquisition of the Free State assets of Pamodzi Gold Mining Limited which
includes President Steyn 1 and 2 shafts, Lorraine 3, Freddies 7 and 9, the Steyn
plant and surface stockpiles;
an international exploration program resulting in the discovery of a new zone of
mineralisation adjacent to the main Golpu resource;
the reassessment of the Evander operations and projects. Following a review of
the economic viability of the Evander South project under various economic
scenarios, it was decided to exclude if from Harmony`s reserves, while the Libra
project, (retreating the Evander tailings) has been included in the reserve
statement;
the sale of the Mount Magnet project in Western Australia, which allows us to
focus on growing, developing and operating our portfolio of quality assets in
Papua New Guinea.
In converting the Mineral Resources to Mineral Reserves the following parameters
were applied:
a gold price of USD950/oz
an exchange rate of USD/ZAR 8.19 for South Africa
the above parameters resulted in a gold price of R250,000/kg
for the Papua New Guinea joint venture operations held within the Morobe Mining
Joint Venture, prices of AUD$1000/oz Au, AUD$15.33/oz Ag, AUD$5,883/ton copper
and AUD$17.33/lb Molybdenum were used with an exchange rate of PGK/AUDK2.30.
Harmony`s South African resources and reserves (excluding Rand Uranium) were
reviewed and audited by SRK Consulting Engineers and Scientists for compliance
with the South African Code for Reporting Mineral Resources and Mineral Reserves
- SAMREC Code (2008), Industry Guide 7 of the United States Securities Exchange
Commission and Sarbanes-Oxley requirements. Harmony`s Papua New Guinea Mineral
Resources and Mineral Reserves were independently reviewed by AMC Consultants
Pty Ltd for compliance with the standards set out in the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves - The JORC
Code.
The company`s detailed resource and reserve declaration will be published in the
FY2010 annual report, which will be made available to shareholders towards the
end of September 2010. The annual report will also include the latest update on
Harmony`s uranium resources.
We use certain terms in this press release such as "measured", "indicated" and
"inferred" resources, which the United States` Securities and Exchange
Commission (SEC) guidelines strictly prohibit US-registered companies from
including in their filings with the SEC. US investors are urged to closely
consider the disclosure in our Form 20-F.
Mineral Resources statement
The following tables summarise the Mineral Resources for the South African and
Papua New Guinea operations and projects:
SA underground operations
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Measured 137.9 7.16 988 31 769
Indicated 193.7 6.39 1 238 39 796
Inferred 452.5 4.53 2 049 65 887
Total 784.1 5.45 4 275 137 452
SA projects below infrastructure
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Measured - - - -
Indicated 70.1 8.90 624 20 077
Inferred 45.4 3.36 153 4 908
Total 115.5 6.73 777 24 985
SA surface
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Measured 155.9 0.41 64 2 065
Indicated 1 248.0 0.29 356 11 471
Inferred 234.1 0.32 74 2 392
Total 1 638.0 0.30 495 15 928
Papua New Guinea*
Hidden Valley and Hamata
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Measured 4.3 2.07 9 287
Indicated 36.0 1.76 63 2 040
Inferred 11.3 1.33 15 486
Total 51.6 1.69 87 2 813
Wafi/Golpu/Nambonga
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Measured - - - -
Indicated 76.7 1.20 92 2 952
Inferred 245.1 0.64 156 5 044
Total 321.8 0.77 248 7 996
* Represents Harmony`s 50% equity portion.
In addition to the gold resources, Harmony also reports its equity (50%) portion
of resources for silver, copper and molybdenum from its PNG operations.
Silver
Tonnes (Mt) g/t Ag (`000 Ag(`000 Oz)
Kg)
Measured 4.2 35.0 147 4 735
Indicated 33.1 33.4 1 105 35 511
Inferred 10.9 31.1 340 10 922
Total 48.2 33.0 1 592 51 168
Copper
Tonnes (Mt) % Cu (`000 t) Cu (M lbs)
Measured
Indicated 44.8 1.38 621 1 369
Inferred 225.3 0.80 1 806 3 982
Total 270.1 0.90 2 427 5 351
Molybdenum
Tonnes (Mt) ppm Mo (`000 t) Mo (M lbs)
Measured
Indicated 44.8 107.72 5 11
Inferred 205.4 111.30 23 50
Total 250.2 110.68 28 61
Mineral Reserve statement
The following table shows more detail of the year-on-year reserve
reconciliation:
Mineral Reserve reconciliation: FY2009 to FY2010
Gold Gold
(tonnes) (million Oz)
Balance at June 2009 1 498 48.2
Reductions
Mined during FY2010 (54) (1.7)
Mine closures (13) (0.4)
Projects (Evander South) (53) (1.7)
Geology and scope (14) (0.5)
changes
Increases
New acquisitions 36 1.2
Rand Uranium equity 37 1.2
(40%)
Projects (Libra) 59 1.9
Balance at June 2010 1 496 48.1
The following tables show the Mineral Reserves for the South African and Papua
New Guinea operations and projects:
SA underground operations
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Proved 50.9 6.04 308 9 901
Probable 76.9 6.24 480 15 421
Total 127.9 6.16 788 25 322
SA projects below infrastructure
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Proved
Probable 42.3 7.28 308 9 895
Total 42.3 7.28 308 9 895
SA surface
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Proved 52.5 0.51 27 861
Probable 1 145.6 0.26 295 9 494
Total 1 198.1 0.27 322 10 355
Papua New Guinea*
Hidden Valley and Hamata
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Proved 3.8 2.13 8 260
Probable 27.2 1.80 49 1 578
Total 31.0 1.84 57 1 838
Wafi/Golpu/Nambonga
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Proved
Probable 35.4 0.61 21 694
Total 35.4 0.61 21 694
* Represents Harmony`s 50% equity portion
In addition to the gold reserves, Harmony also reports its equity (50%) portion
of reserves for silver, copper and molybdenum from its PNG operations.
Silver
Tonnes (Mt) g/t Ag (`000 Ag(`000 Oz)
Kg)
Proved 3.8 35.58 134 4 320
Probable 24.3 35.52 862 27 726
Total 28.1 35.53 996 32 046
Copper
Tonnes (Mt) % Cu (`000 t) Cu (M lbs)
Proved
Probable 35.4 1.13 400 882
Total 35.4 1.13 400 882
Molybdenum
Tonnes (Mt) ppm Mo (`000 t) Mo (M lbs)
Proved
Probable 35.4 121.00 4 9
Total 35.4 121.00 4 9
Mineral Reserve statement
The following table shows more detail of the year-on-year reserve
reconciliation:
Mineral Reserve reconciliation: FY2009 to FY2010
Gold Gold
(tonnes) (million Oz)
Balance at June 2009 1 498 48.2
Reductions
Mined during FY2010 (54) (1.7)
Mine closures (13) (0.4)
Projects (Evander South) (53) (1.7)
Geology and scope (14) (0.5)
changes
Increases
New acquisitions 36 1.2
Rand Uranium equity 37 1.2
(40%)
Projects (Libra) 59 1.9
Balance at June 2010 1 496 48.1
The following tables show the Mineral Reserves for the South African and Papua
New Guinea operations and projects:
SA underground operations
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Proved 50.9 6.04 308 9 901
Probable 76.9 6.24 480 15 421
Total 127.9 6.16 788 25 322
SA projects below infrastructure
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Proved
Probable 42.3 7.28 308 9 895
Total 42.3 7.28 308 9 895
SA surface
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Proved 52.5 0.51 27 861
Probable 1 145.6 0.26 295 9 494
Total 1 198.1 0.27 322 10 355
Papua New Guinea*
Hidden Valley and Hamata
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Proved 3.8 2.13 8 260
Probable 27.2 1.80 49 1 578
Total 31.0 1.84 57 1 838
Wafi/Golpu/Nambonga
Tonnes (Mt) g/t Gold (`000 Gold (`000
Kg) Oz)
Proved
Probable 35.4 0.61 21 694
Total 35.4 0.61 21 694
* Represents Harmony`s 50% equity portion
In addition to the gold reserves, Harmony also reports its equity (50%) portion
of reserves for silver, copper and molybdenum from its PNG operations.
Silver
Tonnes (Mt) g/t Ag (`000 Ag(`000 Oz)
Kg)
Proved 3.8 35.58 134 4 320
Probable 24.3 35.52 862 27 726
Total 28.1 35.53 996 32 046
Copper
Tonnes (Mt) % Cu (`000 t) Cu (M lbs)
Proved
Probable 35.4 1.13 400 882
Total 35.4 1.13 400 882
Molybdenum
Tonnes (Mt) ppm Mo (`000 t) Mo (M lbs)
Proved
Probable 35.4 121.00 4 9
Total 35.4 121.00 4 9
The Mineral Resources and Mineral Reserves in the summary tables are based on
information compiled by the following competent persons:
Reserves and Resources South Africa:
Jaco Boshoff, Pri.Sci.Nat who has 15 years relevant experience and is registered
with the South African Council for Natural Scientific Professions.
Reserves and Resources PNG:
Michael Smith for the Wafi Golpu Mineral Resources, Gregory Job for the Golpu
Mineral Reserve, James Francis for the Hidden Valley Mineral Resources and Anton
Kruger for the Hidden Valley Mineral Reserve. Messers Smith, Job, Francis and
Kruger are corporate members of the Australian Institute of Mining and
Metallurgy and have relevant experience in the type and style of mineralisation
for which they are reporting, and are `Competent Persons` as defined by the
code.
These competent persons consent to the inclusion in the report of the matters
based on the information in the form and context in which it appears. Mr
Boshoff and and Mr Job are full-time employees of Harmony Gold Mining Company
Limited Ltd and Mr Smith is a full time employee of Harmony Gold (PNG Services)
(Pty) Ltd. Mr Francis and Mr Kruger are full-time employees of Newcrest Mining
Limited. Newcrest is Harmony`s joint venture partner in the Morobe Mining Joint
Venture in respect of the Hidden Valley mine.
For more details contact:
Graham Briggs
Chief Executive Officer
on +27(0)83 265 0274
or
Jaco Boshoff
Executive: Reserves and Resources
on +27 (0)83 3953810
or
Marian van der Walt
Executive: Corporate and Investor Relations
on +27 (0)82 888 1242
Corporate Office:
Randfontein Office Park
P O Box 2
Randfontein
South Africa 1760
T +27 (11) 411 2000
www.harmony.co.za
Sponsor:
J.P. Morgan Equities Limited
Date: 02/08/2010 15:57:01 Supplied by www.sharenet.co.za
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