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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                                                                   
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   
For more details contact:                                                       
Graham Briggs                                                                   
Chief Executive Officer                                                         
on +27 83 265 0274                                                              
Henrika Basterfield                                                             
Investor Relations Officer                                                      
on +27 82 759 1775                                                              
Corporate Office:                                                               
Randfontein Office Park                                                         
P O Box 2                                                                       
South Africa 1760                                                               
T +27 11 411 2000                                                               
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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