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Wafi Golpu

Our business

Exploration

Highlights and milestones of FY16 exploration programme in Papua New Guinea

Advancement of the Golpu project
  • Optimised feasibility and prefeasibility studies completed and results released in February 2016
  • Completed and announced results of the feasibility study for stage 1 and the prefeasibility study for stage 2 of the Golpu project. For further details, see Wafi Golpu.
Maiden inferred resource declared for Kili Teke prospect
  • Drilling at Kili Teke continues to yield highly significant gold-copper mineralisation drill results. See Kili Teke.

Our exploration programme, like our operations, is focused in South Africa and Papua New Guinea. As these are prospective areas and we already have knowledge of the local geology, government, infrastructure and regulations of these countries, it makes sense to take advantage of this as we expand our project pipeline.

Our exploration strategy targets significant prospective geological regions to discover large long-life gold and gold-copper ore bodies that will allow us to create value for years to come. We aim to create a balanced brownfields and greenfields exploration portfolio.

Brownfields exploration allows us to maximise value from existing infrastructure by developing mineral resources that sustain our operations. Greenfields exploration, on the other hand, allows us to create new opportunities in highly prospective under-explored mineral provinces and emerging gold districts.

Brownfields exploration allows us to maximise value from existing infrastructure by developing mineral resources that sustain our operations. Greenfields exploration, on the other hand, allows us to create new opportunities in highly prospective under-explored mineral provinces and emerging gold districts.

Our flexible approach to potential exploration projects includes joint ventures, acquisitions and other arrangements. However, all projects undergo a robust assessment to determine whether they meet our exploration standards. Criteria include project- and country-related risk profiles, and minimum requirements on the potential size, production profile and investment targets.

In particular, we seek exploration projects that align with our operational imperatives of prioritising safety, maximising in-ground expenditure and drill testing high-priority targets. In this way we can ensure that future projects, once operational, will enable us to meet our long-term strategic objectives.

Harmony closely monitors the environment for new opportunities to enhance our project portfolio, in line with core operating capabilities. Given sustained low commodity prices, tenure over highly prospective target areas in Papua New Guinea continues to become available.

In FY16, we spent R433 million (US$29.9 million) (FY15: R385 million, US$33.6 million) on both brownfields and greenfields exploration, all of which was spent in Papua New Guinea.

Morobe Exploration Joint Venture (50%)

The Morobe Exploration Joint Venture refers to a key strategic tenement holding in the Morobe Province that encompasses the Golpu project. (Previously this JV also included the Hidden Valley mine until its acquisition in full by Harmony in October 2016.)

The tenement package is held jointly (50:50) between Harmony and Newcrest. The Morobe exploration strategy is to manage a portfolio pipeline of projects to develop bulk tonnage (~1Moz) or high-margin gold or gold-copper targets that provide new standalone opportunities or resource options to complement the operations at the Golpu project.

During FY16, we spent R9 million (US$0.6 million) compared to R12 million (US$1.1 million) in FY15 on exploration in the area throughout the joint venture. This represents Harmony's share which is 50% of the total work programme expenditure.

A reduced budget of R6 million (US$0.4 million) has been proposed for FY17 to continue the generative work programme planned to develop quality targets with the potential to provide resource optionality and leverage infrastructure associated with the Golpu project.

Harmony Gold Exploration (Papua New Guinea) Limited (100%)

A total of R164 million (US$11.3 million) was spent on exploration outside of the Morobe joint venture on Harmony-owned projects in FY16 (FY15: R87 million/US$7.5 million). This work focused almost exclusively on developing and drill testing the Kili Teke prospect.

Drilling was successful in defining a maiden resource for Kili Teke, which now stands at 785 000t of copper, and 1.8Moz of gold, and the Kili Teke prospect has been proven as a new porphyry camp with the potential to develop into a major gold-copper discovery.

Subject to further drilling success, a FY17 budget of R227 million (US$17.6 million) has been earmarked to expand the resource base and progress "pre-concept" studies of the Kili Teke mineralisation.

More detailed information on exploration and the progress made in FY16 is available in the exploration section of the Integrated annual report.

Recent news

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Annual report

Integrated annual report 2016
Integrated annual report 2016

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Investor brief

Harmony Investor brief, Sep 2017
September 2017 -
Harmony Investor brief

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