Go Back Email this Link to a friend

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)                            
          Disposals  and   shaft (34)          (1.1)                            
Total                  1 501         48.3                             
Additions  Evander  South   (Pre- 65            2.1                             
          Golpu            (Pre- 44            1.4                              
          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                             
Probable      275,2        4.65    1 278       41,1                             
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                            
Probable      11,5          0.59    6,8          0,2                            
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                      
 -    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).                                    
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                                                            
Jaco Boshoff                                                                    
Ore Reserve Manager                                                             
on +27(0)83 395 3810                                                            
Graham Briggs                                                                   
CE, Australasian Operations                                                     
on +27(0)83 2650274                                                             
For the comprehensive set of results please visit                               
JSE:        HAR                                                                 
NYSE:       HMY                                                                 
NASDAQ:     HMY                                                                 
ISIN No.:   ZAE000015228                                                        
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                             .                  

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2021 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.