Appendix to the Updated Wafi-Golpu Feasibility Study
Johannesburg, Thursday, 12 April 2018. Harmony Gold Mining Company Limited (Harmony) hereby releases an appendix to the announcement “Updated Wafi-Golpu Feasibility Study” released on 19 March 2018. This release includes the JORC Code 2012 Edition – Table 1 which underpins the Golpu Mineral Resource and Ore Reserve. The updated production target which is planned to be mined is based solely on the Probable Ore Reserves.
Golpu Mineral Resource
The Mineral Resources for Golpu Project remain unchanged from the release titled “Golpu feasibility study confirms robust investment case” dated 15 February 2016 (the original release). Harmony confirms that it is not aware of any new information or data that materially affects the information included in the original release in regard to Mineral Resources, and that all material assumptions and technical parameters underpinning the Mineral Resource estimate in the original release continue to apply and have not materially changed. Harmony confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original release.
Mineral Resources are reported inclusive of Ore Reserves.
Golpu Ore Reserve
As stated in the market release “Updated Wafi-Golpu Feasibility Study” dated 19 March 2018, the Feasibility Study Update Ore Reserve is estimated to contain 5.5 million ounces of gold and 2.5 million tonnes of copper (Harmony’s 50% interest). This estimate is materially in line with previous estimates and reflects updated long term cost and metal price assumptions and optimised designs in the Golpu Feasibility Study Update (refer Golpu Ore Reserve Table below).
About the Wafi-Golpu Project
Harmony and Newcrest each currently own 50% of Wafi-Golpu through the WGJV.
The State of PNG retains the right to purchase, at a pro rata share of accumulated exploration expenditure, up to 30% equity interest in any mineral discovery at Wafi-Golpu, at any time before the commencement of mining. If the State of PNG chooses to take-up its full 30% interest, the interest of each of Newcrest and Harmony will become 35%.
The Golpu deposit is located approximately 65km south-west of Lae in the Morobe Province of PNG which is the second largest city in PNG and will host the Wafi-Golpu export facilities. The proposed mine site sits at an elevation of approximately 200 metres above sea level in moderately hilly terrain and is located near the Watut River approximately 30km upstream from the confluence of the Watut and Markham rivers.
For further information please contact
+27 (0)71 607 1498
Marian van der Walt
+27 (0)82 888 1242
This information is available on our website at www.harmony.co.za
Competent Person’s Statement
The information in this report that relates to Golpu Mineral Resources is based on information compiled by the Competent Person, Mr David Finn, who is a member of The Australasian Institute of Mining and Metallurgy. Mr David Finn, is a full-time employee of Newcrest Mining Limited or its relevant subsidiaries. Mr David Finn has sufficient experience which is relevant to the styles of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code 2012 and SAMREC 2016 (materially the same as the JORC code).. Mr David Finn consents to the inclusion of material of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Golpu Ore Reserves is based on information compiled by the Competent Person, Mr Pasqualino Manca, who is a member of The Australasian Institute of Mining and Metallurgy. Mr Pasqualino Manca, is a full-time employee of Newcrest Mining Limited or its relevant subsidiaries, Mr Pasqualino Manca has sufficient experience which is relevant to the styles of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code 2012 and SAMREC 2016 (materially the same as the JORC code). Mr Pasqualino Manca consents to the inclusion of material of the matters based on his information in the form and context in which it appears.
Mr Gregory Job, BSc, MSc, who has 29 years’ relevant experience and a member of the Australian Institute of Mining and Metallurgy (AusIMM), is Harmony’s competent person for Papua New Guinea.
Mr Jaco Boshoff, BSc (Hons), MSc, MBA, Pr. Sci. Nat, MSAIMM, MGSSA is Harmony’s lead competent person. Mr Boshoff who has 22 years’ relevant experience, is registered with the South African Council for Natural Scientific Professions (SACNASP) and is a member of the South African Institute of Mining and Metallurgy (SAIMM) and a member of the Geological Society of South Africa (GSSA).Forward Looking Statements
This report contains forward-looking statements within the meaning of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, with respect to our financial condition, results of operations, business strategies, operating efficiencies, competitive positions, growth opportunities for existing services, plans and objectives of management, markets for stock and other matters. These include all statements other than statements of historical fact, including, without limitation, any statements preceded by, followed by, or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “should”, “could”, “estimates”, “forecast”, “predict”, “continue” or similar expressions or the negative thereof.
These forward-looking statements, including, among others, those relating to our future business prospects, revenues and income, wherever they may occur in this report and the exhibits to this report, are essentially estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. As a consequence, these forward-looking statements should be considered in light of various important factors, including those set forth in this presentation. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation: overall economic and business conditions in South Africa, Papua New Guinea, Australia and elsewhere, estimates of future earnings, and the sensitivity of earnings to the gold and other metals prices, estimates of future gold and other metals production and sales, estimates of future cash costs, estimates of future cash flows, and the sensitivity of cash flows to the gold and other metals prices, statements regarding future debt repayments, estimates of future capital expenditures, the success of our business strategy, development activities and other initiatives, estimates of reserves statements regarding future exploration results and the replacement of reserves, the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, fluctuations in the market price of gold, the occurrence of hazards associated with underground and surface gold mining, the occurrence of labor disruptions, power cost increases as well as power stoppages, fluctuations and usage constraints, supply chain shortages and increases in the prices of production imports, availability, terms and deployment of capital, changes in government regulation, particularly mining rights and environmental regulation, fluctuations in exchange rates, the adequacy of the Group’s insurance coverage and socio-economic or political instability in South Africa and Papua New Guinea and other countries in which we operate.
For a more detailed discussion of such risks and other factors (such as availability of credit or other sources of financing), see the Company’s latest Integrated Annual Report and Form 20-F which is on file with the Securities and Exchange Commission, as well as the Company’s other Securities and Exchange Commission filings. The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as required by law.