The Harmony Gold Mining Company Limited today announced that their SAMREC compliant consolidated ore reserves statement shows an increase of 3.4% from 54.1 million ounces to 56.0 million ounces for the year ending 30 June 2006.
| Gold (tonnes) | Gold (million ounces) | |
| Balance at June 2005 | 1,684 | 54.1 |
| Mined during FY2005 | 76 | (2.4) |
| Added equity ounces from Western Areas | 131 | 4.2 |
| Other adjustments | 3 | 0.1 |
| Balance at June 2006 | 1,742 | 56.0 |
| % Difference from June 2005 to June 2006 | 3.44% |
As reflected in the table above, Harmony’s Ore Reserves show an overall depletion of approximately 2.4 million ounces for the financial year. The 29.2% equity ounces from
Western Areas added 4.2 million ounces to the ore reserves, resulting in most of the positive increase as indicated.
The mineral resources have increased from 528,6 million ounces to 537,6 million ounces mainly as a result of an additional 9,8 million ounces, which came from Harmony’s 29,2% stake in Western Areas.
A gold price of US$500/oz was used for the conversion of Mineral Resources to Ore Reserves at our South African and Australian operations. An exchange rate of USD/ZAR6.53 for South Africa and AUD/USD 0.74 for Australia has been used, resulting in a gold price of R105 000/kg or A$680/oz respectively. These gold prices were also used in the calculations of mine planning.
The Hidden Valley feasibility study at Papua New Guinea was completed using a gold price of US$445/oz and a silver price of US$6.50/oz. These prices were also used in the declaration of Ore Reserves.
Independent consultant SRK has audited the Harmony South African and Australia June 2006 Mineral Resources and Ore Reserves. The Papua New Guinea Mineral Resources and Ore Reserves were independently audited by RSG Global. The 29,2% Western Areas equity ounces were extracted from their audited reserve statement in their Annual Report of December 2005 and adjusted for depletion for the period from January 2006 to June 2006.
Mineral Resources as at 30 June 2006
| Tons (Mt) | g/t | Gold (‘000 kg) | Gold (‘000 oz) | |
|---|---|---|---|---|
| Measured Resources | 387.9 | 5.85 | 2,268 | 72,907 |
| Indicated Resources | 916.3 | 5.09 | 4,664 | 149,936 |
| Inferred Resources | 2,485.2 | 3.82 | 9,495 | 305,258 |
| Total Mineral Resources | 3,789.4 | 4.33 | 16,427 | 528,101 |
* Resource ounces below infrastructure at Poplar and Rolspruit (21.7 million ounces)
** Western Areas 29.2% equity of some 9.8 million resource ounces
| Tons (Mt) | g/t | Gold (‘000 kg) | Gold (‘000 oz) | |
|---|---|---|---|---|
| Measured Resources | 67.6 | 0.38 | 26 | 823 |
| Indicated Resources | 362.2 | 0.35 | 125 | 4,028 |
| Inferred Resources | 514.6 | 0.28 | 145 | 4,672 |
| Total Mineral Resources | 944.4 | 0.31 | 296 | 9,523 |
Ore Reserves as at 30 June 2006
| Tons (Mt) | g/t | Gold (‘000 kg) | Gold (‘000 oz) | |
|---|---|---|---|---|
| Proven Reserves | 65.6 | 6.07 | 398 | 12,790 |
| Probable Reserves | 220.9 | 5.94 | 1,312 | 42,176 |
| Total | 286.5 | 5.97 | 1,710 | 54,966 |
* Ounces below infrastructure at Poplar and Rolspruit (9,8 million ounces)
** Western Areas 29.2% equity reserve of some 4.2 million ounces
| Tons (Mt) | g/t | Gold (‘000 kg) | Gold (‘000 oz) | |
|---|---|---|---|---|
| Proven Reserves | 68.0 | 0.37 | 25 | 815 |
| Probable Reserves | 12.0 | 0.63 | 7 | 237 |
| Total | 80.0 | 0.40 | 32 | 1,052 |
Full details will be published in the Harmony Gold Mining Co Ltd annual report due for release at the end of September 2006.
For more details contact:
Philip Kotze
Executive, Investor Relations
+27(0)83 453 0544
Lizelle du Toit
Investor Relations Officer
+27(0)82 465 1244