HAR - Harmony Gold Mining Company - Press Release Release Date: 04/08/2008 08:35:04 Code(s): HAR HAR - Harmony Gold Mining Company - Press Release
Harmony Gold Mining Company Ltd
Incorporated in the Republic of South Africa
Registration number: 1950/038232/06
Share code: HAR
ISIN: ZAE000015228
("Harmony")
Johannesburg. Monday, 4 August 2008. Harmony Gold Mining Company Limited
(Harmony) is pleased to publish its Statement of Mineral Resources and Ore
Reserves which has been 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) as at 30 June 2008.
Mineral Resources
Harmony announces gold Mineral Resources of 253.6 million ounces. The Mineral
Resources shows a year-on-year negative variance of 28 million ounces mainly as
a result of corporate activity and classifying operations as discontinued. The
discontinued operations amounts to 32,6 million ounces.
Ore Reserves
The declared Ore Reserves amounts to 50.5 million ounces with a year on year
negative variance of 3.1 million ounces. Corporate activity and discontinued
operations contributes to a significant portion of this variance of which the
discontinued operations totals 1.7 million ounces. Table 1 shows more detail of
the year on year reserve variance.
Table 1. Ore reserve reconciliation: FY2007 to FY2008
Gold Gold
(tonnes) (Moz)
Balance at June 2007 1 666 53.6
Reductions Mined during FY2008 (62) (2.0)
Corporate activity and (93) (3.0)
discontinued operations
Restructuring (28) (0.9)
Other adjustments (53) (1.7)
Total 1430 46.0
Additions Freestate Surface Sources 140 4.5
Balance at June 2008 1 570 50.5
As indicated in the table above, Harmony`s Ore Reserves as at 30 June 2008
reflects a year-on-year depletion of 2.0 million ounces. Corporate activity,
discontinued operations, restructuring of certain shafts and geological related
changes accounts for a further decrease of 5.6 million ounces of reserves. On
the positive side there is a net addition of 4.5 million ounces of reserves from
surface stockpiles.
A gold price of US$750/oz was used for the conversion of Mineral Resources to
Ore Reserves at our South African and Papua New Guinea operations. An exchange
rate of USD/ZAR 7.46 for South Africa and AUD/USD 0.80 for Australia has been
used, resulting in a gold price of R180 000/kg and A$850/oz respectively.
Table 2: Ore Reserves as at 30 June 2008
Underground and open pits
Tonnes (Mt) g/t Gold Gold
(`000 (`000 oz)
kg)
Proven 49 4.83 238 7,652
reserves
Probable 177 4.25 751 24,138
reserves
Total 226 4.37 989 31,790
Surface Stockpiles
Tonnes (Mt) g/t Gold Gold
(`000 (`000
kg) oz)
Proven 729 0.24 176 5,675
reserves
Probable 70 0.35 25 795
reserves
Total 799 0.25 201 6,470
Below infrastructure
Tonnes (Mt) g/t Gold Gold
(`000 (`000
kg) oz)
Proven - - - -
reserves
Probable 52 7.31 380 12,212
reserves
Total 52 7.31 380 12,212
In addition to the gold reserves, Harmony also reports its equity reserves
(69.9%) for silver, copper and molybdenum from its PNG operations (Table 3).
Metal prices are assumed at US$12/oz for silver, US$2.40/lb for copper and
US$20/lb for molybdenum.
Table 3. Silver, Copper and Molybdenum reserves as at 30 June 2008
SILVER Tonnes (Mt) g/t Silver Silver
(`000 kg) (`000 oz)
Proven 3 41.04 135 4,358
reserves
Probable 22 36.94 819 26,354
reserves
Total 25 37.47 954 30,712
COPPER Tonnes (Mt) % Cu (`000 Cu (M
t) lbs)
Proven - - - -
reserves
Probable 50 1.13 560 1,234
reserves
Total 50 1.13 560 1,234
MOLYBDENUM Tonnes (Mt) ppm Mo (`000 Mo (M
t) lbs)
Proven - - - -
reserves
Probable 50 121 6 13
reserves
Total 50 121 6 13
This Statement forms part of the company`s Mineral Resources and Ore
Reserve declaration which will be published in our FY 2008 annual report
towards the end of September 2008.
The competent persons responsible for the overall preparation and reporting
of the company`s mineral resources and ore reserves are Jaco Boshoff
(South Africa) and Greg Job (Papua New Guinea).
Issued by Harmony Gold Mining Company Limited
31 July 2008
For more details contact:
Graham Briggs
Chief Executive Officer
on +27 11 411 2012
+27(0)83 265 0274
Amelia Soares
General Manager, Investor Relations
on +27 11 411 2134
+27(0)82 654 9241
or
Jaco Boshoff
Executive, Ore Reserve & Resources
on +27(0)83 395 3810
Corporate Office:
Randfontein Gold Mine
P O Box 1
Randfontein
South Africa 1796
T +27 (11) 411 2000
For the comprehensive set of results please visit www.harmony.co.za
ends.
Date: 04/08/2008 08:35:03 Supplied by www.sharenet.co.za
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