HAR - Harmony Gold Mining Company - Statement of Ore Reserves Release Date: 25/07/2007 13:00:02 Code(s): HAR HAR - Harmony Gold Mining Company - Statement of Ore Reserves
HARMONY GOLD MINING COMPANY LIMITED
Incorporated in 1950
Registration number 1950/038232/06
Share code: HAR
NASDAQ, NYSE: HMY
ISIN: ZAE000015228
Statement of Ore Reserves
Johannesburg, Wednesday, 25 July 2007. Harmony Gold Mining Company
Limited (Harmony) is pleased to publish its Statement of Ore
Reserves which has been produced in accordance with the South
African Code for the Reporting of Mineral Resources and Mineral
Reserves (The SAMREC Code) and the Australian Code (The JORC Code)
as at 30 June 2007.
Harmony announces gold Ore Reserves of 53.6 million ounces as at
30 June 2007. Despite the disposal of assets, successful pre-
feasibility studies have added additional ounces to our reserves.
Table 1
Ore reserve reconciliation: FY2006 to FY2007
Gold Gold (million
(tonnes) ounces)
Balance at June 2006 1 742 56.0
Reductions Mined during FY2007 (76) (2.4)
Western areas equity (131) (4.2)
ounces
Disposals and shaft (34) (1.1)
closures
Total 1 501 48.3
Additions Evander South (Pre- 65 2.1
feasibility)
Golpu (Pre- 44 1.4
feasibility)
Other adjustments 56 1.8
Balance at June 2007 1 666 53.6
As indicated in the table above, Harmony`s Ore Reserves as at 30
June 2007 reflects a year-on-year depletion of 2.4 million ounces
when compared with the combined ore reserves for 30 June 2006.
Disposals of assets, shaft closures, and the loss of the Western
Areas equity ounces accounts for a further decrease of 5.3 million
ounces of reserves.
The successful pre-feasibility studies at Harmony`s Evander South
Project as well as Golpu in Papua New Guinea (PNG) added 3.5
million ounces to the reserves. A further increase of 1.8 million
ounces is attributable to growth in the reserves from the South
African operations.
A gold price of US$520/oz was used for the conversion of Mineral
Resources to Ore Reserves at our South African and Australasian
operations. An exchange rate of USD/ZAR6.88 for South Africa and
AUD/USD 0.73 for Australia has been used, resulting in a gold
price of R115 000/kg or A$712/oz respectively.
Table 2: Ore Reserves as at 30 June 2007
Underground, open pits, and projects
Tonnes (Mt) g/t Gold Gold
(`000 kg) (`000 oz)
Proven 56,3 5.81 327 10,5
reserves
Probable 275,2 4.65 1 278 41,1
reserves
Total 331,5 4.84 1 605 51,6
Surface Stockpiles
Tonnes (Mt) g/t Gold Gold
(`000 kg) (`000 oz)
Proven 196,1 0.29 57,2 1,8
reserves
Probable 11,5 0.59 6,8 0,2
reserves
Total 207,6 0.31 64,0 2,0
Harmony also announces the completion of pre-feasibility studies
for the Golpu copper/gold deposit, located at the Wafi/Golpu site
in the Morobe province of PNG. The Wafi pre-feasibility currently
underway is due for completion in October 2007.
The highlight of the pre-feasibility study is the definition of a
probable ore reserve of 70.8 million tonnes grading 1.13% copper,
0.61g/t gold, and 121ppm molybdenum. Importantly, the mining plan
has restricted the overall average arsenic grade to 136ppm, with
the highest grade in any single year restricted below 300ppm, to
ensure that a saleable concentrate is maintained throughout the
project life.
Further analysis undertaken during the pre-feasibility study
indicates that inclusion of inferred material in the mining plan
may see the mining inventory increase to 100.7 million tonnes
grading 0.95% copper, 0.54g/t gold, and 129g/t Molybdenum. Based
on this mining inventory and metal prices of $2.30/lb copper and
$520/oz gold, the mine will have a production life of
approximately 13 years, recovering 64 000 tonnes of copper, and 73
000 ounces of gold to concentrate per year.
Table 3: Golpu Ore Reserve (Poly metallic)
Cutoff Tonnes Cu Au As Mo
Cu % (Mt) % ppm ppm ppm
Probable 0.0 70.8 1.1 0.6 136 121
Cu Cu Metal Au Metal Mo Metal Mo Metal
Metal (million (`000oz) (`000t) (Million
(`000t) lbs) lbs)
Probable 800 1 763 1 389 8.6 18.9
In addition to the gold reserves of Hidden Valley included in
table 1 above, Hidden Valley has the following silver reserves:
Table 4: Ore reserves (silver)
Tonnes Silver* Silver*
(Mt) g/t (`000kg) (`000oz)
38.1 34 1 299 41 759
* Calculated using a gold cutoff of 0.8g/t
This Statement forms part of the company`s Mineral Reserves and
Mineral Resources declaration which will be published in our FY
2007 annual report towards the end of September 2007.
In addition our annual report will contain full details of our
uranium resources. In the meantime, we are pleased to declare the
following uranium mineral resources within the measured resource
category, as a result of an extensive drilling exploration
programme:
- 5 tailings dams in Randfontein; 360 million tonnes
containing 79 million pounds of U3O8
- 6 tailings dams in the Free State; 190 million tonnes
containing 30 million pounds of U3O8
The resources quoted above represent total contained dump
resources and no economic cut-offs have been applied. Economics of
dual pay limits have also not been applied.
Chief Executive Bernard Swanepoel says, "The FY 2007 annual report
will be the first report in our 57 year history in which we will
declare copper, molybdenum And uranium reserves and resources.
Despite the fact that we have always owned uranium, it was always
treated as a mere by-product and off-set against cost. The results
of our uranium deposits prove to be worthwhile to proceed to
feasibility study stage".
The competent persons responsible for the overall preparation and
reporting of the company`s mineral resources and ore reserves are
Jaco Boshoff (South Africa), Mark Cossam (Australia), Jake Russell
(Australia) and Greg Job (Papua New Guinea).
Ends.
Issued by Harmony Gold Mining Company Limited
25 July 2007
For more details contact:
Amelia Soares
Investor Relations General Manager
on +27(0)82 654 9241
or
Jaco Boshoff
Ore Reserve Manager
on +27(0)83 395 3810
or
Graham Briggs
CE, Australasian Operations
on +27(0)83 2650274
For the comprehensive set of results please visit
www.harmony.co.za
JSE: HAR
NYSE: HMY
NASDAQ: HMY
ISIN No.: ZAE000015228
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 25/07/2007 13:00:01 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department .
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