DRD

Mineral reserve and mineral resource overview

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In 2002, the DRD attributed Mineral Resource has increased by 5.64 million ounces of gold (9%) to 70.9 million ounces compared to 2001 and the attributed Mineral Reserve, increased by 1.89 million ounces (13%) of gold to 16.3 million ounces.

1 REPORTING CODE AND DEFINITIONS

The Company reports its South African Mineral Resource and Mineral Reserves in compliance to the South African Code for Reporting Mineral Resources and Mineral Reserves (the “SAMREC Code”). The Code sets out the minimum standards, recommendations and guidelines for Public Reporting of exploration results, Mineral Resource and Mineral Reserves in South Africa. The Code has been adopted by the South African Institute of Mining and Metallurgy (“SAIMM”) and is incorporated in the JSE Securities Exchange rules in relation to listing requirements and reporting obligations.

The Company’s Australasian operation, Tolukuma, reports its Mineral Resource and Ore Reserves in compliance to the Australasian standards laid down by the Australasian Joint Ore Reserve Committee (“JORC”) Code for reporting identified Mineral Resources and Ore Reserves.

The SAMREC Code is based on and is compatible with the JORC Code. In this context, Ore Reserve has the same meaning as Mineral Reserve.

The Company’s Mineral Resource and Mineral Reserves were reviewed and audited for SAMREC and JORC Code compliance independently by Resource Service Group (RSG). RSG is an exploration, mining and resource consulting firm, which has been providing services and advice to the international mineral industry and financial institutions since 1987. The audit report has been compiled by Mr Mike Sperinck (MAUSIMM and SACNASP) and Mr Colin Jones (MAUSIMM) who have the appropriate relevant qualifications, experience, competence and independence to be considered an independent “Competent Person” under the definitions provided in the Codes. They each have over 20 years experience in the mining industry and regularly conduct due diligence studies and technical audits around the world for mining companies and financial institutions.

The audit process undertaken by RSG has been carried out through the review of the data, techniques, procedures and parameters used in the resource and reserve preparation during three separate site visits to the South African operations, and an extended trip to the Tolukuma operation. DRD personnel, or suitably qualified contractors, undertook the work with input and discussion from RSG. The audit included sampling, assaying, resource estimation, classification, conversion to reserves through the mine planning process, costing and mining factors. All reserves that have been included in the reserve tabulation are included in the current life of mine plans.

The relevant definitions of the Mineral Resource and Mineral Reserve categories are included in the “Glossary of Terms”.

2 THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT BILL

The Mineral and Petroleum Resources Development Bill (“The Bill”) in its current form was approved by Parliament but has not yet been enacted. The Bill cannot be implemented without further legislation (the Money Bill, Beneficiation Bill, Regulations and Prescribed Social and Labour Plans), which is expected by the end of 2002.

The main objective of The Bill is that the State becomes the custodian of the nation’s mineral and petroleum resources. The prospecting and mining rights will be granted in preference to historically disadvantaged persons. A Mining Right will be granted for a maximum of 30-years, which is renewable, in
30-year maximum terms.

DRD will have to convert its Mining Rights for current mining operations within five years and its Prospecting Rights for current prospecting operations within two years. Applications for new Mining Rights and Prospecting Rights, will only be granted when stipulated requirements are met.

3 COMPETENT PERSONS

The compilation of the Mineral Resource and Mineral Reserve statements is a team effort, with overall responsibility and accountability with the appointed Mineral Resource Manager for the Mineral Resources on each operation. The appointed Mineral Resource competent persons for each operation that have overall responsibility for the information in this report are:

• Crown William John Laing (SACNASP);
• Blyvoor Jan Johannes Jacobus Petrus Pretorius (SACNASP);
• Buffels and Harties Mathys Hendrik Greeff Heyns (SACNASP);
• Argonaut Daniël Stephanus du Toit van den Bergh (PLATO); and
• Tolukuma Michael John Bird (AusIMM).

The individuals who have provided input into this Annual Report, listed above, have extensive (greater than five years) relevant experience in the mining industry and type of deposits mined. They are all employees of the Company and are the designated competent persons, in terms of the SAMREC and JORC Codes, with relevant geological and survey backgrounds relative to the style of mineralisation and are registered members of recognised statutory organisations.

The competent person, designated in terms of the SAMREC Code for the Mineral Reserves, and taking corporate responsibility for the compilation and reporting of the DRD Mineral Resource and Mineral Reserves is Daniël Stephanus du Toit van den Bergh, who is an employee of the Company. He has an MSc in Mineral Economics and is a registered member of PLATO and the SAIMM and has 27-years relevant experience.

4 OPERATIONS

During the current reporting period, the Company has:

• Sold the West Wits Operation and closed Durban Roodepoort Deep Mine, a loss of 206 kozs of gold Mineral Reserve; and
• Sold 60% of Crown Recoveries, a reduction of 900 kozs of gold Mineral Reserve.

4.1 Combined
The DRD-attributed Mineral Resource (including the Argonaut Project) has increased in 2002 to 71.0 million ounces from 65.2 million ounces of gold in 2001. The Mineral Reserves has increased to 16.3 million ounces from 14.4 million ounces of gold, both increases being largely due to the increase of the Rand gold price used for the resource calculations, from R64,528/kg in 2001 to R102,500/kg in 2002.

4.2 Blyvoor
The total Mineral Resource was increased 45% by 12 Moz of gold predominately due to the inclusion of the Expansion Project and re-commissioning of the old Doornfontein 1 Shaft, now 6 Shaft. The total Mineral Reserves increased 2% by 135 koz of gold. This includes the negative impact of depletion and the positive contribution of the inclusion of carbon leader pillars, which were excluded due to lack of access previously, as well as the Expansion Project.

The mine is situated on the Far West Rand Goldfield, on the northwestern rim of the Witwatersrand Basin and comprises both underground and surface reclamation operations, a metallurgical plant, tailings deposition facilities and associated infrastructure. The mine exploits the Carbon leader (“CLR”) and Middelvlei (“MR”) reef horizons of the Central Rand Group. The CLR is the principal economic horizon across the lease area and is a planar single sheet conglomerate. The CLR typically comprises basal carbon seam, overlain by a thin, small pebble conglomerate, enriched in carbon in the lower portion. The MR lies some 50 m to 75 m above the CLR and consists of a variable number of polymictic quartz conglomerate bands, interbedded with coarse grain quartzites. The grade of the MR is more variable, with distinctive payshoots forming as southwards orientated linear zones.

4.3 Buffels
The operation’s total Mineral Resource reduced 1% by 64 koz due to depletion exceeding additional Mineral Resources. The total Mineral Reserves increased 37% by 488 koz of gold due to proportionally lower pay-limit.

The mine is situated on the Klerksdorp Goldfield, on the northwestern rim of the Witwatersrand Basin and comprises both underground and surface reclamation (waste rock dumps) operations, a metallurgical plant, tailings deposition facilities and associated infrastructure facilities. The mine exploits the Vaal Reef (“VR”) occurring within the Central Rand Group of the Witwatersrand Supergroup, at the base of the Strathmore formation. The VR is an oligomictic, pebble quartz arentic. Gold is present throughout the reef horizon, but is concentrated on the bottom contact, where carbon commonly forms as a thin seam.