HAR - Harmony Gold Mining Company Ltd - Excellent results at Harmony`s PNG Release Date: 25/01/2011 07:30:01 Code(s): HAR
HAR - Harmony Gold Mining Company Ltd - Excellent results at Harmony`s PNG
Harmony Gold Mining Company Ltd
Incorporated in the Republic of South Africa
Registration number: 1950/038232/06
Share code: HAR
EXCELLENT RESULTS AT HARMONY`S PNG OPERATIONS
Improved production figures and significant exploration intercepts reported
Johannesburg. 25 January 2011. Harmony Gold Mining Company Limited (Harmony) is
pleased to announce excellent quarterly production results at its Hidden Valley
mine in Papua New Guinea (PNG), in line with its post-commissioning production
ramp-up plan. In addition, further significant exploration drill hole intercepts
at the Wafi Golpu deposit were obtained during the quarter.
Both of these assets are part of the Company`s 50% interest in the Morobe Mining
Gold production at Hidden Valley improved by 23%, quarter on quarter, at 26,584
ounces of gold (Harmony`s 50%) produced, due to higher gold feed grades and
improved recoveries. Silver production was 44% higher at 191,327 ounces of
silver (Harmony`s 50%), as a result of higher recoveries. The average grade for
the quarter was 2.21 g/t Au, while the silver grade was 26.6 g/t Ag, with unit
costs lower at R195 605/kg (US$884/oz), in comparison to R244 720/kg (US
$1042/oz) in the previous quarter.
"These production results, together with the excellent safety performance by the
mine during the quarter, demonstrate that our strategy of investing in safe,
quality growth projects is starting to deliver" says Harmony chief executive,
In October 2010, Harmony reported on drilling of the Wafi Golpu deposit, which
extended the mineralisation beyond the porphyry copper-gold resource of 16Moz of
gold and 4.8Mt of copper. Further drilling during the December 2010 quarter has
again extended the deposit.
Golpu drill results include:
WR359 860m @ 1.37% Cu and 0.70g/t Au (2.68g/t Au equivalent*) from
WR361 186m @ 2.01% Cu and 0.35g/t Au (3.25g/t Au equivalent*) from 446m
WR362 274m @ 1.07% Cu and 0.29g/t Au (1.83g/t Au equivalent*) from 160m
WR363 595m @ 2.03% Cu and 1.65g/t Au (4.58g/t Au equivalent*) from 914m
In addition, drill hole WR377, has intersected well-mineralised porphyry at a
depth of 1 091m down hole which, together with the significant intersections
above, has extended the high grade porphyry more than 200m north of the current
resource outline ( please refer to the press release on our website
www.harmony.co.za to view the section and plan view).
Other drilling has focused on pre-feasibility study requirements to gain
geotechnical and metallurgical data. The metallurgical drill holes targeted
zones in the Wafi gold lodes and have returned significant intersections
consistent with the known resource, but with an increased grade. Significant
WR370 202m @ 1.77g/t Au from surface
WR371 160m @ 3.35g/t Au from 41m
"The Golpu resource continues to expand to the north as ongoing drilling defines
further mineralization, providing us with added confidence that we are well on
track in achieving our previously stated exploration target of 30Moz of gold and
8Mt of copper. Golpu will be a future world class copper gold mine", says
Harmony chief executive, Graham Briggs. "Continued hard work on ramping up
production at Hidden Valley post commissioning is paying off and we are more
than pleased with our offshore growth profile", he added.
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 Greg Job 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. Greg Job is a full-
time employee of Harmony Gold Mining Company Ltd.
Refer to www.harmony.co.za for details on Wafi Golpu Resources and the Golpu
exploration target guidance.
* Gold equivalents calculated using a gold price of US$ 950/oz and copper price
of US$2.00 lb and assuming 100% recovery for all metals.
For more details contact:
Johannes van Heerden
CEO South East Asia
+27 83 292 1650 (mobile)
Chief Executive Officer
+27 83 265 0274 (mobile)
Marian van der Walt
Executive: Corporate and Investor Relations
+27 82 888 1242 (mobile)
Investor Relations Officer
+27 82 759 1775 (mobile)
+27 11 411 2314(office)
Randfontein Office Park
P O Box 2
South Africa 1760
T: +27 11 411 2000
J.P. Morgan Equities Limited
Date: 25/01/2011 07:30:01 Supplied by www.sharenet.co.za
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