Wrap Text
Golpu gold equivalent reserve ounces significantly enhances value of Harmony’s asset portfolio
Harmony Gold Mining Company Limited
("Harmony" or "Company")
Incorporated in the Republic of South Africa
Registration number 1950/038232/06
JSE Share code: HAR
NYSE Share code: HMY
ISIN: ZAE000015228
Golpu gold equivalent reserve ounces significantly enhances
value of Harmony's asset portfolio
- Harmony's gold equivalent reserves increases 31% year on year to
52.9 Million ounces.
- Golpu* reserve of 450 million tonnes at 1.21% copper and 0.86 g/t
gold for 12.4 Moz gold and 5.4 Million tonnes copper declared.
Johannesburg. Wednesday, 29 August 2012. Harmony Gold Mining Company Limited
('Harmony' or 'the Company') is pleased to publish its Statement of Mineral Resources
and Mineral Reserves as at 30 June 2012, 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 commented, "Papua New Guinea (PNG) has
become one of the world's premier new gold regions. As part of Harmony's strategy to
diversify internationally, we have increased our exploration expenditure significantly over
the last 3 years. It is thus pleasing to see this investment has significantly enhanced the
value proposition of the Company. Gold equivalent reserve ounces in PNG now represent
42% of Harmony's total reserves in comparison to 11% as at 30 June 2011."
Briggs added, "In South Africa our world-class mines in build-up represent 32% of our
total gold equivalent mineral reserves. These mines, together with Wafi-Golpu in PNG,
are the solid foundation on which Harmony will in the long-term increase gold production,
reserves and profits."
As at 30 June 2012, Harmony's attributable gold equivalent Mineral Reserves in South
Africa and PNG amount to 52.9 million ounces (Moz), which represents a 31% annual
increase in declared reserves. The increase is largely due to the increase in mineral
reserves in PNG following the completion of the pre-feasibility study at Golpu*. As drilling
at Golpu continues, more ounces from PNG may be added to Harmony's Reserves.
*Jointly held by Harmony and Newcrest Mining Limited in a 50/50 joint venture
Figure 1. Geographical distribution of the Mineral Reserves (Please see PDF)
As at 30 June 2012 attributable gold equivalent Mineral Resources are 150.2 Moz, an 8% decrease year on year.
The decrease is largely due to not including the resources from the Evander assets being held for sale.
Harmony's PNG Gold Equivalent Resources at 41.2 Moz now represent 27% of Harmony's total Resources
(Figure 2).
Figure 2. Geographical distribution of the Mineral Resources (Please see PDF)
The Golpu pre-feasibility study Reserve and Resource statement validates management's long held belief that
Golpu is truly a world-class discovery and a company-changer for Harmony. On a 100% basis, Golpu alone now
hosts a high grade, quality reserve of 450Mt, containing 12.4Moz of gold and 5.4 million tonnes (Mt) of copper
(38.9Moz on a gold equivalent(1) basis).
Table 1. Golpu Mineral Resources on a 100% basis
Grade Contained Metal Gold
Equivalent
M tonnes Au g/t Cu% Au Moz Cu Mt Moz
2010 501 0.54 0.96 8.8 4.8 32
2011 869 0.69 1.03 19.3 8.9 62
2012 1 000 0.63 0.90 20.3 9.0 65(1)
1. Gold equivalent ounces are calculated assuming a US$1400/oz Au,
US$3.50/lb Cu and US$25.00/oz Ag with 100% recovery for all metals
Table 1 above depicts the resource changes at Golpu on a 100% basis during the previous three years. It is worth
noting that recent high grade intercepts from continued drilling on the ore body will further expand the resource in
future resource declarations (Figure 3), as the later results were not included in the pre-feasibility study.
Whilst the Golpu Resource is the largest, it is not the only mineralised body within the Wafi-Golpu complex. A
2.5km square around the diatreme (shown below in Figure 3) contains the Wafi and Nambonga Resources and
significant other mineralisation yet to be fully tested. Golpu has understandably been the focus of our drilling this
year, but other mineralisation continues to be found. For example, the Northern Zone recently returned a
significant intercept of 157m @ 1.0g/t Au when a drill hole targeting the northern extension of Golpu passed
through this area. Golpu itself remains open at depth and to the north east.
Figure 3. The 2.5km square around the Wafi Golpu diatreme host the Golpu, Wafi and Nambonga Resource and other
significant mineralisation yet to be fully tested.
(Please see PDF for Plan View)
Regionally, the Wafi Transfer structure is dominated by copper and gold geochemical anomalies which are being
systematically tested by the exploration department. Many of these anomalies fall within 10km of Golpu and there
is significant potential to increase the Resources in the Wafi Golpu region.
Figure 4. Regional geology showing the Wafi Transfer Zone (Please see PDF)
Table 2. Golpu Mineral Reserve on a 100% basis
Grade Contained Metal Gold
Equivalent
M tonnes Au g/t Cu% Au Moz Cu Mt Moz
2010 71 0.61 1.13 1.4 1.8 10
2011 71 0.61 1.13 1.4 1.8 10
2012 450 0.86 1.21 12.4 5.4 38.9(1)
1. Gold equivalent ounces are calculated assuming a US$1400/oz Au, US$3.50/lb Cu and US$25.00/oz Ag with 100% recovery for all
metals
Table 2 shows the year on year changes in the Golpu Reserve. The 2012 Golpu Reserve extracts ore from a two
lift block cave. Declines will be used for primary ore haulage and shafts will be used for early access, ventilation
and emergency egress. Processing will be via a conventional copper floatation plant with a copper gold
concentrate transported 70km to the Port of Lae for shipping to market.
The entirety of the Resource is not mined in the pre-feasibility study and therefore potential Reserve upside exist
with a third lift to be mined (Figure 5). Recent drilling also suggests that the Lift 1 ore body may extend to the
north and, importantly, closer to surface. The Resource is open at depth and to the north east. The 8 rig drill
programme is continuing and an additional drill fleet is being considered to expedite ore body growth and
definition.
Figure 5. Golpu ore body and associated mining lifts from the pre-feasibility study (Please see PDF)
More information on the results of the Golpu pre-feasibility study will be shared at Harmony's Investor Day held
on 29 August 2012.
Please refer to Annexure A, included in this press release, which provides all the underlying
detail to the information provided.
ANNEXURE A
In converting the Mineral Resources to Mineral Reserves the following parameters were applied:
- a gold price of US$1 400/oz
- an exchange rate of USD/ZAR 7.55
- the above parameters resulted in a gold price of R340 000/kg
- the Hidden Valley mine and Wafi-Golpu project in the Morobe Mining Joint Venture used prices of
US$1 250/oz Au, US$21/oz Ag, US$15/lb Mo and AUD3.10/lb Cu at an exchange rate of US/AUD 0.90
- Gold equivalent ounces are calculated assuming a US$1400/oz Au, US$3.50/lb Cu and US$25.00/oz Ag
with 100% recovery for all metals
Harmony's South African Resources to Reserves conversion process and three operations, Doornkop mine, Joel
mine and Kalgold mine, 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 have been 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 FY2012 annual report, which
will be made available to shareholders towards the end of September 2012. The annual report will also include
the latest update on Harmony's uranium Resources.
We use certain terms in this document 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 Kg) Gold ('000 Oz)
Measured 89.6 8.51 762 24 499
Indicated 104.9 8.07 846 27 201
Inferred 209.4 7.01 1 467 47 176
Total 403.9 7.61 3 075 98 876
SA surface operations
Tonnes (Mt) g/t Gold ('000 Kg) Gold ('000 Oz)
Measured 366.6 0.28 102 3 273
Indicated 685.3 0.27 182 5 847
Inferred 62.1 0.48 30 967
Total 1 114.0 0.28 314 10 087
South Africa Total
Tonnes (Mt) Gold ('000 Kg) Gold ('000 Oz)
Measured 456.2 864 27 772
Indicated 790.1 1 028 33 048
Inferred 271.6 1 497 48 143
Total 1 517.9 3 389 108 963
Papua New Guinea
Hidden Valley mine
Tonnes (Mt) * g/t G Gold ('000 Kg) * Gold ('000 Oz) * Equity Gold
('000 Oz) **
Measured 1.5 1.20 2 58 29
Indicated 146.6 1.32 194 6 238 3 119
Inferred 11.1 1.08 12 386 193
Total 159.2 1.31 208 6 682 3 341
Wafi-Golpu system
Tonnes (Mt) * g/t Gold ('000 Kg) * Gold ('000 Oz) * Equity Gold
('000 Oz) **
Measured - - - - -
Indicated 920.0 0.77 705 22 678 11 339
Inferred 252.0 0.70 177 5 662 2 831
Total 1 172.0 0.75 882 28 340 14 170
* Represents Harmony / Newcrest joint venture 100% portion
** Represents Harmony's 50% portion
Equivalent gold ounces
Hidden Valley mine
Equivalent Gold ('000 Oz) * Equity equivalent gold
('000 Oz) **
Measured 76 38
Indicated 8 192 4 096
Inferred 512 256
Total 8 780 4 390
Wafi-Golpu system
Equivalent Gold ('000 Oz) * Equity equivalent gold
('000 Oz) **
Measured - -
Indicated 59 768 29 884
Inferred 13 878 6 939
Total 73 646 36 823
* Represents Harmony / Newcrest joint venture 100% portion gold, silver and copper
** Represents Harmony's 50% portion gold, silver and copper
In addition to the gold Resources, Harmony also reports on silver, copper and molybdenum from its PNG
operations.
Silver
Tonnes (Mt) * g/t Ag ('000 Kg) * Ag ('000 Oz) * * Equity Silver
('000 Oz) **
Measured 1.5 19.2 28 900 450
Indicated 950.5 4.5 4 295 138 086 69 043
Inferred 240.1 2.2 519 16 678 8 339
Total 1192.1 4.1 4 842 155 664 77 832
Copper
Tonnes (Mt) * % Cu ('000 t) * Cu (M lbs) * Equity Copper
(M lbs) **
Measured - - - - -
Indicated 810.0 0.92 7 452 16 429 8 215
Inferred 230.0 0.70 1 604 3 536 1 768
Total 1 040.0 0.87 9 056 19 965 9 983
Molybdenum
Tonnes (Mt) * ppm Mo ('000 t) * Mo (M lbs) * Equity
Molybdenum
(M lbs) **
Measured - - - - -
Indicated 810.0 100 81 179 90
Inferred 190.0 75 14 31 15
Total 1 000.0 95 95 210 105
* Represents Harmony / Newcrest joint venture 100% portion
** Represents Harmony's 50% portion
Papua New Guinea including gold equivalents**
Tonnes (Mt) Gold ('000 Kg) Gold ('000 Oz)
Measured 0.7 1 38
Indicated 533.3 1 057 33 980
Inferred 131.6 224 7 195
Total 665.6 1 282 41 213
** Represents Harmony's 50% portion
Harmony Group including gold equivalents**
Tonnes (Mt) Gold ('000 Kg) Gold ('000 Oz)
Measured 457.0 865 27 810
Indicated 1 323.4 2 085 67 028
Inferred 403.1 1 721 55 338
Total 2 183.5 4 671 150 176
** Represents SA Total and Harmony's 50% portion from PNG
Gold Equivalent Mineral Resources Reconciliation - FY11 vs FY12
(Please see PDF for Graph)
MINERAL RESERVE STATEMENT
The following table shows more detail of the year-on-year Reserves reconciliation:
Mineral Reserves reconciliation: FY2011 to FY2012
Gold (tonnes) Gold (million Oz)
Balance at June 2011 1 294 41.6
Reductions
Evander held for sale (249) (8.0)
Mined during FY2012 (47) (1.5)
Increases
Geology and Scope changes SA 40 1.3
PNG gold and gold equivalents 607 19.5
Balance at June 2012 1 645 52.9
Gold Equivalent Mineral Reserves Reconciliation - FY11 vs FY12
(Please see PDF for Graph)
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 Kg) Gold ('000 Oz)
Proved 56.5 5.85 331 10 627
Probable 63.3 6.21 393 12 635
Total 119.8 6.04 724 23 262
SA surface operations
Tonnes (Mt) g/t Gold ('000 Kg) Gold ('000 Oz)
Proved 366.6 0.28 102 3 273
Probable 523.8 0.26 136 4 389
Total 890.4 0.27 238 7 662
South Africa Total
Tonnes (Mt) Gold ('000 Kg) Gold ('000 Oz)
Proved 423.1 432 13 900
Probable 587.1 530 17 024
Total 1 010.2 962 30 924
Papua New Guinea*
Hidden Valley mine
Tonnes (Mt) * g/t Gold ('000 Kg) * Gold ('000 Oz) * Equity Gold **
('000 Oz)
Proved 1.5 1.20 2 58 29
Probable 77.4 1.52 118 3 794 1 897
Total 78.9 1.52 120 3 852 1 926
Wafi-Golpu System
Tonnes (Mt) * g/t Gold ('000 Kg) * Gold ('000 Oz) * Equity Gold
('000 Oz) **
Proved - - - - -
Probable 450.0 0.86 387 12 442 6 221
Total 450.0 0.86 387 12 442 6 221
* Represents Harmony / Newcrest joint venture 100% portion
** Represents Harmony's 50% portion
Equivalent gold ounces
Hidden Valley mine
Equivalent Gold ('000 Oz) * Equity equivalent gold
('000 Oz) **
Proved 74 37
Probable 4 962 2 481
Total 5 036 2 518
Golpu
Equivalent Gold ('000 Oz) * Equity equivalent gold
('000 Oz) **
Proved - -
Probable 38 991 19 496
Total 38 991 19 496
* Represents Harmony / Newcrest joint venture 100% portion gold, silver and copper
** Represents Harmony's 50% portion gold, silver and copper
In addition to the gold Reserves, Harmony also reports on silver, copper and molybdenum from its PNG
operations.
Silver
Tonnes (Mt) * g/t Ag ('000 Kg) * Ag ('000 Oz) * Equity Silver
('000 Oz) **
Proved 1.5 19.5 28 916 458
Probable 72.8 27.9 2 032 65 308 32 654
Total 74.3 27.7 2 060 66 224 33 112
Copper
Tonnes (Mt) * % Cu ('000 t) * Cu (M lbs) * Equity Copper
(M lbs) **
Proved - - - - -
Probable 450.0 1.21 5 446 12 006 6 003
Total 450.0 1.21 5 446 12 006 6 003
Papua New Guinea including gold equivalents**
Tonnes (Mt) Gold ('000 Kg) Gold ('000 Oz)
Proved 0.8 1 38
Probable 263.7 684 21 976
Total 264.5 685 22 014
** Represents Harmony's 50% portion
Harmony Group including gold equivalents **
Tonnes (Mt) Gold ('000 Kg) Gold ('000 Oz)
Proved 423.9 433 13 937
Probable 850.8 1 213 39 000
Total 1 274.7 1 646 52 937
** Represents SA Total and Harmony's 50% portion from PNG
The Mineral Resources and Mineral Reserves in the press release and 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 17 years relevant experience is registered with the South African Council for
Natural Scientific Professions and a member of the South African Institute of Mining and Metallurgy.
Reserves and Resources PNG:
James Francis for the Wafi Golpu Mineral Resources, German Flores for the Golpu Mineral Reserve, Greg Job for the
Hidden Valley Mineral Resources and Anton Kruger for the Hidden Valley Mineral Reserve. Messrs Job, Francis,
Flores and Kruger are corporate members of the Australian Institute of Mining and Metallurgy and all 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 and Messrs Francis, Flores and 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
and Wafi-Golpu project.
Issued by Harmony Gold
Mining Company Limited
29 August 2012
For more details contact:
Graham Briggs
Chief Executive Officer
+27 (0) 83 265 0274 (mobile)
Jaco Boshoff
Executive: Minerals and
Growth
+27 (0) 83 395 3810 (mobile)
Greg Job
Harmony Gold (PNG Services)
Pty Ltd: Executive - Growth &
Resource Development
+61 417 172 387 (mobile)
Marian van der Walt
Executive: Corporate and
Investor Relations
+27 (0) 82 888 1242 (mobile)
Corporate Office:
Randfontein Office Park
P O Box 2
Randfontein
South Africa 1760
T +27 (11) 411 2000
www.harmony.co.za
JSE: HAR
NYSE: HMY
ISIN No.: ZAE000015228
Registration number:
1950/038232/06
Date: 29/08/2012 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.