HAR - Harmony Gold Mining Company Limited - Press release Release Date: 22/10/2010 09:17:01 Code(s): HAR HAR - Harmony Gold Mining Company Limited - Press release
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")
PRESS RELEASE
MORE SIGNIFICANT EXPLORATION DRILL HOLE INTERCEPTS AT GOLPU - A WORLD-CLASS
COPPER-GOLD PORPHYRY
Johannesburg. Friday, 22 October 2010. Harmony Gold Mining Company Limited
(Harmony) is pleased to announce further significant exploration drill hole
intercepts at the Golpu porphyry copper-gold deposit at the Wafi-Golpu Project
in Papua New Guinea (PNG), which is part of the company`s joint venture with
Newcrest Mining Limited (Newcrest).
During the past quarter Harmony released an updated Statement of Reserves and
Resources which included an appreciable increase in the Wafi-Golpu Resource to
16Moz of gold and 4.8Mt of copper. Additional exploration drilling at Golpu
undertaken during the quarter has further extended the deposit with significant
intercepts as follows:
- WR347 799m@1.43g/t Au, 1.90% Cu from 883m including 616m @ 1.79g/t Au,
2.34% Cu from 910m
- WR348 561m@0.51g/t Au, 0.99% Cu from 179m including 209m@0.89g/t Au,
1.88% Cu from 359m
- WR349 327m@0.39g/t Au, 1.23% Cu from 194m including 117m @0.63g/t Au,
2.09% Cu from 262m
WR347 was drilled as a 100 metres step-out hole on the northern margin of the
existing resource. The intercept correlates with a zone of bornite
mineralisation and represents the highest grade results ever returned from
drilling at the project. This intersection significantly extends the higher
grade core of the Golpu resource to the north with the ore body remaining open
in this direction and at depth.
WR349 indicates that the high grade porphyry mineralisation extends to the north
and closer to the surface than previously modelled.
As a result of this drilling, the Wafi-Golpu exploration target(1) has been
upgraded to 30Moz of gold and 8Mt of copper based on a tonnage range between 900
and 1,400 million tonnes. This targets growth of epithermal deposits to between
100 and 200 million tonnes at a grade range between 1.5g/t and 2.0g/t plus
porphyry deposits to a range of 800 and 1,200 million tonnes at grades between
0.7 and 1.1% copper and 0.5g/t to 0.9g/t gold.
Furthermore Harmony is pleased to announce that the Wafi-Golpu concept study was
completed during August 2010. The concept study was building on previous studies
and was updated with new information and enhanced development approaches during
the study. The concept study demonstrates that a very robust business case
exists for the project and therefore both Harmony and Newcrest have approved
that the project progresses to the rre-feasibility study phase.
The main value drivers, for which several options will be considered during the
pre-feasibility study, are:
Further increasing the tonnage and grade of the resource;
Optimise the production rates from the panel caves to suit the footprint and
draw heights;
Optimise the gold recovery of the refractory Wafi ore bodies; and
Positioning of infrastructure, waste dumps and tailings storage facilities in
such areas to minimize the impact on the environment and to optimise the costs
The joint venture study team is targeting completion of the pre-feasibility
study towards the end of 2011 or early 2012. The Pre-Feasibility Study costs,
which includes the construction of a new road, the establishment of a camp and
associated infrastructure and the commencement of underground exploration access
(decline shaft) is estimated to be US$150 million(2). Approval for the
construction of the access road and establishment of a camp and associated
infrastructure has been obtained from the local landowners and construction of
the new road will commence early during 2011.
Harmony CEO Graham Briggs says, "We can hardly contain our excitement each time
new drilling results are received. The latest intercepts, together with the very
positive outcome of the concept study emphasise the potential for the joint
venture to establish another high quality, world-class operation in Papua New
Guinea."
For more details contact:
Graham Briggs
Chief Executive Officer
on +27 83 265 0274
or
Henrika Basterfield
Investor Relations Officer
on +27 82 759 1775
Corporate Office:
Randfontein Office Park
P O Box 2
Randfontein
South Africa 1760
T +27 11 411 2000
www.harmony.co.za
Sponsor:
J.P. Morgan Equities Limited
Note: The Measured and Indicated Mineral Resources are inclusive of those
Mineral Resources modified to produce the Ore Reserves. The estimates of Ore
Reserves and Mineral Resources in this statement were prepared in accordance
with the standards set out in the "Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves - The JORC Code"
(December 2004) as published by the Joint Ore Reserve Committee of the
Australian Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia (JORC) The JORC Code is the
accepted reporting standard for the Australian Stock Exchange (ASX).
The Exploration Results, Mineral Resources and Ore Reserves in the summary
tables and are based on information compiled by Michael Smith who is corporate
member of the Australian Institute of Mining and Metallurgy and who has relevant
experience of a `competent person` as defined by the code for reporting of
Mineral Resources and Ore Reserves in relation to the mineralisation being
reported on and consents to the inclusion in the report of the matters based on
his information in the form and context in which it appears. Michael Smith is a
full-time employee of Harmony PNG Service Pty Ltd
(1) Refer to www.harmony.co.za for details on Wafi Resources and the Golpu
exploration target guidance.
(2) 100% share.
Date: 22/10/2010 09:17:01 Supplied by www.sharenet.co.za
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