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Robust exploration drill results from Harmony’s Kalgold open pit operation
Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
JSE share code: HAR
("Harmony" or the "Company")
Robust exploration drill results from Harmony’s Kalgold open pit operation
to underpin resource growth and expansion studies
Johannesburg, Monday 4 June 2018 - Harmony Gold Mining Company (“Harmony”
and/or “the Company”) , is pleased to announce encouraging exploration
results at its 100% owned, South African Kalgold open pit operation in the
North West Province, approximately 55km southwest of Mahikeng.
“Our exploration strategy targets highly prospective, underexplored
terrains and mining districts to discover and develop gold deposits. The
results from the exploration drilling at Kalgold – a safe and low risk open
pit mine - outline an expanded, robust mineralised system that extends
beyond the current resource limits. Resource development drilling underway
has outlined a mineralised zone that now comprises over 2.1 kilometres of
strike and extends to in excess of 300m below surface. The intersections
show good continuity of geology and mineralisation and presents an exciting
organic growth opportunity for Harmony”, said Peter Steenkamp, chief
executive officer of Harmony.
An updated mineral resource estimate will be prepared incorporating the
exploration data and will form the basis of prefeasibility studies planned
for 2019. The updated mineral resources for Kalgold will be released as
part of our annual reporting for FY18.
Key points:
- Highlight intercepts from drilling to date1:
Hole ID From (m) To (m) Interval (m) Grade (g/t)
KG014 299 350 51 1.46
KG016 257 341 84 1.51
KG023 287 346 59 1.28
KG026 259 304 45 1.38
KG033 371 413 42 1.39
KG034 322 356 34 2.21
KG037 47 89 42 1.32
1
Complete assay results are tabulated in the technical annexure: SAMREC table 1 report for the Kalgold
Drilling Program at www.harmony.co.za
Hole ID From (m) To (m) Interval (m) Grade (g/t)
KG038 138 185 47 1.77
KG040 205 225 20 2.81
KG042 106 161 55 2.01
KG044 315 371 56 1.51
KG045 273 302 29 2.49
WDD011 203 204 21 3.41
WDD015 122 158 36 1.89
WDD017 104 137 33 2.42
- The mineralisation outlined in the drilling is hosted in a banded
iron formation (BIF) which is an extension of the same structural-
geological setting of the known deposits at D Zone, A Zone, Watertank
and Windmill open pits.
- New mineralised zones defined outside of the current resource limit
include:
o Strike extensions north of the current Watertank open pit
o Significant drill intercepts in the “Pillar” zone that separates
the A Zone and Watertank pits
o New areas of mineralisation in the Western Limb BIF at depth and
along strike to the south of A Zone
o A new zone of mineralisation developing subparallel with the
Watertank lodes at Spanover Border prospect
- Drill intercepts from within the current resource limit demonstrate
good grade continuity. Higher-grade zones of mineralisation with in
excess of 2.0 g/t Au occur associated with shallow, north plunging,
crosscutting quartz veins which are developed along the main line of
lode.
Harmony commenced a brownfield drill campaign at the project in October
2017 to test the potential to merge the separate pit areas into a major
mineralised system and to test the strike extensions of the mineralised
zone towards the north and south of the existing open pits. In particular,
to develop a resource base that would support studies towards increased
mining and processing rates at the open pit operation. Some 16,400m of
Diamond and RC drilling has since been completed, results of which form the
basis of this news release.
The resource growth outlook is positive. The system is open-ended along
strike and remains open at depth. To the north under the cover of Kalahari
sand, reconnaissance drill sections highlight potential to extend the
mineralisation over an additional 1km of strike. Potential for sub-parallel
repeat lodes at the Spanover Border and Windmill prospect areas is evident.
Drilling continues onsite with 3 drill rigs.
Drill plans, longsection, and cross sections are included below for
reference. This press release should be read in conjunction with the
supporting technical annexure supporting the results at: http:
www.harmony.co.za/invest SAMREC table 1 report for the Kalgold Drilling
Program.
Harmony will be presenting on the Kalgold drilling program at the SBGS mining
conference on Wednesday 6 June 2018 and will include the presentation on
Harmony’s website at https://www.harmony.co.za/invest/presentations/2018.
For further information please contact
Lauren Fourie
Investor Relations Manager
+27 (0)71 607 1498
lauren.fourie@harmony.co.za
Marian van der Walt
Executive: Investor Relations
+27 (0)82 888 1242
Marian@harmony.co.za
Forward Looking Statements
This report contains forward-looking statements within the meaning of the
safe harbor provided by Section 21E of the Securities Exchange Act of 1934,
as amended, and Section 27A of the Securities Act of 1933, as amended, with
respect to our financial condition, results of operations, business
strategies, operating efficiencies, competitive positions, growth
opportunities for existing services, plans and objectives of management,
markets for stock and other matters. These include all statements other
than statements of historical fact, including, without limitation, any
statements preceded by, followed by, or that include the words “targets”,
“believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”,
“would”, “should”, “could”, “estimates”, “forecast”, “predict”, “continue”
or similar expressions or the negative thereof.
These forward-looking statements, including, among others, those relating
to our future business prospects, revenues and income, wherever they may
occur in this report and the exhibits to this report, are essentially
estimates reflecting the best judgment of our senior management and involve
a number of risks and uncertainties that could cause actual results to
differ materially from those suggested by the forward-looking statements.
As a consequence, these forward-looking statements should be considered in
light of various important factors, including those set forth in this
presentation. Important factors that could cause actual results to differ
materially from estimates or projections contained in the forward-looking
statements include, without limitation: overall economic and business
conditions in South Africa, Papua New Guinea, Australia and elsewhere,
estimates of future earnings, and the sensitivity of earnings to the gold
and other metals prices, estimates of future gold and other metals
production and sales, estimates of future cash costs, estimates of future
cash flows, and the sensitivity of cash flows to the gold and other metals
prices, statements regarding future debt repayments, estimates of future
capital expenditures, the success of our business strategy, development
activities and other initiatives, estimates of reserves statements
regarding future exploration results and the replacement of reserves, the
ability to achieve anticipated efficiencies and other cost savings in
connection with past and future acquisitions, fluctuations in the market
price of gold, the occurrence of hazards associated with underground and
surface gold mining, the occurrence of labor disruptions, power cost
increases as well as power stoppages, fluctuations and usage constraints,
supply chain shortages and increases in the prices of production imports,
availability, terms and deployment of capital, changes in government
regulation, particularly mining rights and environmental regulation,
fluctuations in exchange rates, the adequacy of the Group’s insurance
coverage and socio-economic or political instability in South Africa and
Papua New Guinea and other countries in which we operate.
For a more detailed discussion of such risks and other factors (such as
availability of credit or other sources of financing), see the Company’s
latest Integrated Annual Report and Form 20-F which is on file with the
Securities and Exchange Commission, as well as the Company’s other
Securities and Exchange Commission filings. The Company undertakes no
obligation to update publicly or release any revisions to these forward-
looking statements to reflect events or circumstances after the date of
this presentation or to reflect the occurrence of unanticipated events,
except as required by law.
Competent Persons Statement
The information in this announcement that relates to exploration results and
other scientific and technical information are based on information compiled
by Mr Mike Humphries. Mr Humphries is a full time employee of Harmony and
a member of the Australian Institute of Geoscientists. Mr Humphries has
sufficient experience which is relevant to the styles of mineralisation and
types of deposits under consideration and to the activities undertaken to
qualify as a Competent Person as defined in The JORC Code 2012 and SAMREC.
Mr Humphries consents to the inclusion in this announcement of the matters
based on this information in the form and context in which it appears.
Ends.
4 June 2018
JSE Sponsor: J.P. Morgan Equities South Africa Propriety Limited
Date: 04/06/2018 05:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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