In the media

DRDGold production up

23 April 2010

Source: www.timeslive.co.za

Listed gold producer DRDGold saw a four percent rise in total gold production to 62,404 ounces for its third quarter ended March 31.

In a statement on Friday it reported an 11 percent increase in cash operating profit for the quarter to R96.9 million and a one percent drop in cash operating unit costs to R221,400 per kilogram.

Headline earnings dropped to 0.4 cents per share from 1.4 cents in the previous quarter.

The average rand gold price received was just one percent higher at R269,980 per kilogram.

"Higher gold production was a result of improved recoveries at Blyvoor's underground operations during the period under review and of the on-going production build-up at Ergo," the company said.

At Blyvoor, underground gold production for the quarter rose by 31 percent to 21,412 ounces, reflecting a 21 percent increase in underground throughput to 166,000 tons and an eight percent improvement in underground yield to 4.01 grams per ton.

Based on this improved performance, DRDGold's application to lift the provisional judicial management order in place in respect of Blyvoor since November 2009 was granted.

Ergo's gold production for the quarter rose by three percent to 9773 ounces, reflecting an 11 percent improvement in yield to 0.10 grams per ton and a one percent increase in throughput to 3,150,000 tons.

Looking ahead, DRDGold CEO Niël Pretorius said the company's priorities would be achieving a full restoration of Blyvoor's underground recovery grades and developing synergies between its Ergo and Crown surface retreatment operations.

In Zimbabwe, preparations for an initial 28-week programme of exploration of the Leny claims, jointly held by DRDGOLD and Zimbabwe partner Chizim Investments had begun.

"Limited mining will take place during exploration, with any recovered gold helping to offset exploration costs."

Chizim conducted limited exploration of two Leny veins in 2009, which showed grades varying between five and 25 grams per ton.