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HAR - Harmony Gold Mining Company Ltd - Excellent Drilling Results At Golpu

Release Date: 26/01/2010 08:01:02      Code(s): HAR
HAR - Harmony Gold Mining Company Ltd - Excellent Drilling Results At Golpu     
West Spells Excitement For Harmony`s Exploration Activities In PNG              
Harmony Gold Mining Company Ltd                                                 
Incorporated in the Republic of South Africa                                    
Registration number: 1950/038232/06                                             
Share code: HAR                                                                 
ISIN: ZAE000015228                                                              
PRESS RELEASE                                                                   
EXPLORATION ACTIVITIES IN PNG                                                   
Johannesburg. Tuesday, 26 January 2010. Harmony Gold Mining Company Limited     
(Harmony) is pleased to advise that encouraging results were achieved from      
recent drilling conducted on the Golpu West prospect, as part of the company`s  
exploration programme in Papua New Guinea (PNG).                                
Golpu West is located off the western margin of the Golpu orebody and entirely  
outside of the existing resource limits. Drilling to date has defined           
approximately 160 metres of strike and the high-grade mineralisation remains    
open in all directions.                                                         
Results of the significant new drill intercepts include:                        
WR321:         331m @ 0.51 g/t Au & 0.93 % Cu from 694m                     
    Including:     155m @ 0.88 g/t Au & 1.51% Cu from 868m                      
    WR327A:        478.4m @ 0.85 g/t Au & 1.36 % Cu from 506m                   
    Including:     155m @ 1.47 g/t Au & 2.29% Cu from 691m                      
WR328:         597m @ 0.57 g/t Au & 0.96 % Cu from 399m                     
    Including:     198m @ 1.13 g/t Au & 1.88 % Cu from 788m                     
The Wafi-Golpu project area is located in the Morobe Province of PNG and is     
part of Harmony`s 50/50 Joint Venture with Newcrest Mining Limited of           
The high grade portions of copper-gold intercepts are coincident with           
stockwork veined and altered diorite porphyry. The porphyry is biotite          
altered, variably silicified and veined, and contains abundant chalcopyrite as  
fine disseminated sulphide. A halo of lower grade copper-gold mineralisation    
surrounds porphyry and comprises a stockwork vein network of laminated quartz-  
magnetite-chalcopyrite veins. Stockwork vein intensity is best developed at     
the diorite porphyry contact in the adjacent metasediments and gradually        
decreases away from the contact.                                                
The tenor and continuity of the mineralisation is particularly encouraging.     
The average gold and copper grades of the Golpu West intercepts are             
significantly higher than the main Golpu porphyry, which for comparison         
averages 0.65 g/t Au and 1.4% copper. The current Golpu resource is 163 Mt @    
0.6 g/t gold and 1.1% copper for 2.93 Moz of gold and 1.76 million tonnes of    
The drilling has also intersected near surface supergene copper-gold            
mineralisation including:                                                       
    WR316:    24m @ 0.6 g/t Au & 0.54% Cu from 82m                              
    WR327A:   22m @ 0.55 g/t Au & 0.9% Cu from 175m                             
Harmony`s Chief Executive Officer, Graham Briggs says, "We are thrilled with    
the outcome of the drilling results at Golpu West. The results are very         
encouraging and highlight the fact that the Golpu system is poorly constrained  
at depth. Excellent potential exists for additional mineralised intrusions      
and/or structural repetitions around the margins."                              
The way forward and concept studies                                             
Drilling to scope out the geometry and full extent of the new mineralised zone  
is continuing, with three exploration drill rigs. Two additional deep capacity  
rigs will arrive in mid-February to accelerate the work programme. It is        
expected that this drilling will significantly expand the current Golpu         
The 2007 Golpu pre-feasibility study contemplated a block cave operation that   
would mine 100 million tonnes of ore and produce 1.7 million ounces gold and    
1.0Mt copper over a 10 year life of mine. Per the pre-feasibility study the     
operation would have a low cash cost of approximately US$0.54/lb Cu (or $300/   
oz Au equivalent) but high capital expenditure of US$1.3 billion and a maximum  
cash out of US$1.0 billion. It was considered that a resource upgrade or        
significant change in upfront capital would be the most likely means to         
increasing the margin and lowering the risk profile for a favourable            
development decision.                                                           
The Golpu West drill results outline potential for a step-change impact on the  
minable resource base. This would provide a key driver to fundamentally alter   
the economics of the project.                                                   
In addition to resources, other aspects of the concept study, which may change  
significantly from previous work include:                                       
1.   Reduced upfront infrastructure capital through advances caving             
    technology, and staged development options                                  
2.   Geo-metallurgical solution for treatment of high sulphidation ore from     
    the Wafi A,B and Link zones                                                 
The current schedule for completion of the new resource model and progressing   
of the concept study is June 2010.                                              
Please view the Harmony website for a map outline showing drilling results in   
relation to existing resources in the region.                                   
For more details contact:                                                       
Marian van der Walt                                                             
Executive: Corporate and Investor Relations                                     
On +27 (0)82 888 1242                                                           
Esha Brijmohan                                                                  
Investor Relations Officer                                                      
On +27 (0)82 759 1775                                                           
Corporate Office:                                                               
Randfontein Office Park                                                         
PO Box 2                                                                        
South Africa 1760                                                               
T +27 (0)11 411 2000                                                            
J.P. Morgan Equities Limited                                                    
Date: 26/01/2010 08:01:02 Supplied by www.sharenet.co.za                     
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