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Revised Mineral Resources and Mineral Reserves
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
JSE share code: DRD
ISIN: ZAE000058723
Issuer code: DUSM
NYSE trading symbol: DRD
(“DRDGOLD” or the “Company”)
REVISED MINERAL RESOURCES AND MINERAL RESERVES
DRDGOLD is pleased to announce its revised Mineral Resources and Mineral Reserves statement.
Highlights
- Increase in Measured Mineral Resources from 161.9Mt@0.29g/t Au to 261.5Mt@0.28g/t Au
- Increase in Mineral Reserves from 170.9Mt@ 0.33g/t Au to 312.6Mt @0.30g/t Au
- Gold in Reserves increased from 1.8Moz to 3Moz
About DRDGOLD
DRDGOLD is a low-risk South African gold producer recovering gold from the retreatment of surface
tailings. It owns a wide range of gold-bearing tailings dumps and dams across the Central
Witwatersrand gold field. These are operated as a single entity and DRDGOLD is focused on
optimising them to increase gold production.
To this extent, DRDGOLD began a drilling programme and pre-feasibility study (“PFS”) in September
2016 aimed at re-evaluating its surface gold tailings. The PFS focused on tailings on the East Rand,
to the east of the ERGO Mining Proprietary Limited (“ERGO”) plant, with the aim of adding these to
the mineral reserve base.
Mineral Resources
Mineral Resources as at 31 December 2016 included an increase of 99.4Mt from new surface
sources and upgrades, offset by a mining depletion of 9.8Mt@0.32g/t and 20Mt@0.31g/t based on
the re-evaluation of the Elsburg Tailings Complex.
Mineral Resources that have been upgraded had good historical data but required infill drilling and
confirmation of grades and volumes in order to upgrade the Inferred or Indicated Mineral Resources
to an Indicated or Measured Mineral Resource. Additions to the Mineral Resources are from dams
which have always been included under the DRDGOLD mineral rights, but which have not been
previously included in Mineral Resources due to a lack of exploration drilling.
Mineral Resources as at 31 December 2016 are given in Table I below, along with the Mineral
Resources as at 30 June 2016.
Table I
Mineral Resources
Classification 30 June 2016 31 December 2016
Tonnes Grade Au Au Tonnes Grade Au Au
(Mt) Au g/t tonnes Moz (Mt) Au g/t tonnes Moz
Measured 161.9 0.29 47.3 1.52 261.5 0.28 72.2 2.32
Indicated 547.8 0.27 150.3 4.83 426.6 0.28 119.4 3.83
Inferred 846.6 0.20 169.1 5.44 867.1 0.20 173.6 5.58
Total Measured and
709.7 0.28 197.6 6.35 688.1 0.28 191.6 6.15
Indicated
Total Mineral Resources 1556.3 0.23 336.8 11.79 1555.2 0.23 365.2 11.73
DRDGOLD returns the processed tailings to the mineral resources with a depleted gold grade. These
tailings still contain significant gold and may be retreated in the future to recover gold, uranium or
sulphur, when commodity prices and technological developments allow. These Mineral Resources are
the bulk of the Inferred Mineral Resources.
Mineral Reserves
Mineral Reserves reported as at 30 June 2016 reflected Mineral Resources accessible with
DRDGOLD’s current infrastructure or requiring only small upgrades to the existing infrastructure to
access the mineral resource. The current study is a PFS aimed at evaluating the viability of adding
tailings dams 7L15, Rooikraal and Grootvlei (6L16/6L17 and 6L17A), all of which require substantial
capital investment.
PFS results:
- Operating life extended to 2031 (15-years)
- Mineral Reserves increased from 170.9Mt @ 0.33g/t Au to 312.6Mt @0.30g/t Au.
- Gold in Reserves increased from 1.8Moz to 3Moz.
- Improved recoveries from the ERGO plant have enabled lower grade material to be added to
the Mineral Reserves.
- All required permits are in place.
- The Brakpan/Withok Tailings Deposition Facility has sufficient capacity to dispose of
processing waste.
- Capital expenditure of R507.7 million is required to support proposed mining operations and
to access the East Rand slime dumps and dams. This includes 162.4km of pipelines and
pumpstations. No major upgrades are required to the current processing plant.
The figure of DRDGOLD’s operations, including current reserves as at 31 December 2016
(“Current Reserves”), can be viewed on the Company’s website, www.drdgold.com
Changes in the Mineral Reserves reflect both the changes in the Mineral Resources and a longer
operating life than previously reported. The Current Reserves reflect an operating life of 15 years
rather than 10 years as reported as at 30 June 2016.
Mineral Reserves as at 31 December 2016 reflect the depletion from current operations for the six
months to 31 December 2016, the adjustment of the Elsburg Tailing Complex tonnages and the
addition of the 7L15, Rooikraal and Grootvlei tailings dams and minor additional tonnages from other
sources.
Mineral Reserves as at 31 December 2016 are given in the table below along with the previous
Mineral Reserves as at 30 June 2016.
MINERAL RESERVE RECONCILIATION – 31 December 2016
Au Au
Tons Grade
Contents Ounces
(Mt) (Au g/t)
(Kg’000) (Moz)
Proved Mineral Reserves 30 June 2016 127.72 0.31 39.25 1.26
Probable Mineral Reserves 30 June 2016 43.21 0.42 17.99 0.58
Proved and Probable Reserves
170.93 0.33 57.24 1.84
as at 30 June 2016
Depletion Proved Reserves -9.80 0.32 -3.18 -0.10
Depletion Probable Reserves -1.99 0.40 -0.79 -0.03
Survey Adjustments Proved Reserves -19.88 0.31 -6.09 -0.20
Survey Adjustments Probable Reserves 0.12 0.36 0.04 0.001
New Probable Mineral Reserves 173.20 0.27 46.61 1.50
Total Proved Mineral Reserves 98.04 0.31 29.98 0.97
Total Probable Mineral Reserves 214.54 0.30 63.86 2.05
Total Mineral Reserves 312.58 0.30 93.83 3.01
as at 31 December 2016
Probable Reserves contain 129 Mt @ 0.26 g/t Au Measured Mineral Resources.
The survey adjustment for Proved Reserves mostly includes a reduction in tonnages from the Elsburg
Tailings Complex (20Mt) which is due to the re-evaluation of the position of the base of the dam which
could not be accurately positioned in the earlier evaluations due to water saturated slimes causing
drilling problems and poor quality pre-deposition topographic maps.
Reporting
DRDGOLD reports its Mineral Resources and Mineral Reserves in accordance with the 2016 edition
of the South African Code for Reporting of Exploration Results Mineral Resources and Mineral
Reserves (“SAMREC Code 2016”) and section 12 of the JSE Limited Listings Requirements. In
South Africa, we are legally required to publicly report Mineral Resources and Mineral Reserved in
compliance with the SAMREC Code 2016. It should be noted that the Mineral Resources and Mineral
Reserves update was not conducted under the terms of USA Securities and Exchange Commission
(“SEC”) Industry Guide 7. We will report our ore reserves estimates in accordance with Guide 7 in our
next Annual Report filed with the SEC.
Mineral Resources are INCLUSIVE of Mineral Reserves. All units are metric unless otherwise stated.
Mineral Resources and Mineral Reserves are reported at a gold price of ZAR575,000/kg Au
(USD1244 and ZAR14.40 to the USD).
Mineral Resources and Mineral Reserves estimates are affected by multiple factors that are subject to
change over time. Fluctuations in the gold price, exchange rates, legislation in the operating country,
as well as other reporting jurisdictions and a wide range of operating conditions may affect the
estimates. Estimates of Mineral Resources and Mineral Reserves should be considered best
estimates at the time of reporting.
Due to the length of approval times for the renewal of permits, some of the Mineral Resources and
Mineral Reserves may be based on permits undergoing the renewal process. At this time there is no
indication that these renewals will not be granted.
Competent Persons
In accordance with the SAMREC Code 2016 the lead Competent Person for the PFS report and all
historical Mineral Resources reports is Ms Kathleen Body, BS Arts and Sci, GDE (Mining), Pr Sci Nat
400071/07. Ms Body is a geologist with 21 years’ experience in the minerals industry including
mineral exploration, mineral resource estimation in multiple commodities and project management.
Ms Body is a Director of Red Bush Geoservices (Pty) Ltd and is contracted to Ergo Mining Operations
Proprietary Limited (EMO) a subsidiary of DRDGOLD. Ms Body is independent of DRDGOLD, its
subsidiaries and related companies.
The Competent Person for the recent Mineral Resources estimated in 2016 is Mr Mpfariseni Mudau
(BSc, MSc) Pr Sci Nat 400305/12. Mr Mudau is a geologist with 11 years’ experience in mineral
exploration and mineral resource estimation of precious metals. Mr Mudau is a Director of RVN
Group (Pty) Ltd and contracted to EMO a subsidiary of DRDGOLD. Mr Mudau is independent of
DRDGOLD, its subsidiaries and related companies.
The Mineral Reserves and the financial evaluation of the PFS have been prepared by DRDGOLD and
reviewed by Dr. Steven Rupprecht. The Competent Person for the Mineral Reserves is Dr Rupprecht
(BSc Mining Engineering., PhD, Mechanical Engineering, Pr. Eng (ECSA Registration #980556),
FSAIMM), who has 30 years’ experience in the South African minerals industry, including production
and management of gold mining operations, mine planning and design, Mineral Reserve estimations
and as a consulting mining engineer. Dr Rupprecht is an Associate Principal Mining Engineer at Red
Bush Geoservices (Pty) Ltd and is contracted to EMO, a subsidiary of DRDGOLD. He is independent
of DRDGOLD, its subsidiaries and related companies.
The abovementioned Competent Persons have reviewed this announcement and have provided
written approval of its publication.
Johannesburg
2 February 2017
Sponsor
One Capital
Forward looking Statements
Many factors could cause the actual results, performance or achievements to be materially different from any
future results, performance or achievements that may be expressed or implied by such forward-looking
statements, including, among others, adverse changes or uncertainties in general economic conditions in the
markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory
developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental
approvals, changes in DRDGOLD's competitive position, changes in business strategy, any major disruption in
production at key facilities or adverse changes in foreign exchange rates and various other factors
These risks include, without limitation, those described in the section entitled "Risk Factors" included in our
annual report for the fiscal year ended 30 June 2016, which we filed with the United States Securities and
Exchange Commission on 31 October 2016 on Form 20-F. You should not place undue reliance on these
forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to
publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this
report or to the occurrence of unanticipated events. Any forward-looking statement included in this report has not
been reviewed and reported on by DRDGOLD's auditors.
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