In 2003, the DRD attributed mineral resource has
decreased by 7.0 million ounces (9.8%) to 63.9 million ounces (excluding
the Argonaut Project, increased by 4.0 million ounces to 48.5 million
ounces), compared to 2002 and the attributed mineral reserve, decreased
by 0.5 million ounces to 15.8 million ounces.
DRD combined operations (includes
40% Crown and 19.81% Emperor)
Attributable mineral reserve and identified
mineral resource statementas at 30 June 2003
Mineral
reserve (delivered)
Mineral
resource (inclusive of reserve and in-situ)
Tonnes
Grade
Gold
Gold
Tonnes
Grade
Gold
Gold
Category
(Mt)
(g/t)
(tonnes)
(Moz)
Category
(Mt)
(g/t)
(tonnes)
(Moz)
Proved
Measured
Underground
41.284
7.18
296.486
9.532
Underground
49.996
8.77
438.393
14.095
Open-pit
0.001
21.21
0.019
0.001
Open-pit
0.001
25.92
0.020
0.001
Surface
52.762
0.62
32.849
1.056
Surface
91.405
0.51
46.648
1.500
94.047
3.50
329.354
10.589
141.402
3.43
485.061
15.596
Probable
Indicated
Underground
22.502
6.67
150.154
4.828
Underground
48.755
6.98
340.074
10.934
Open-pit
0.003
28.72
0.077
0.002
Open-pit
0.022
5.61
0.126
0.004
Surface
14.890
0.77
11.505
0.37
Surface
152.130
0.31
46.572
1.497
37.395
4.33
161.736
5.2
200.907
1.93
386.772
12.435
Total
Sub total
Underground
63.786
7
446.640
14.360
Underground
98.751
7.00
778.467
25.029
Open-pit
0.004
26.9
0.096
0.003
Open-pit
0.023
26.90
0.146
0.005
Surface
67.652
0.66
44.354
1.426
Surface
243.535
0.66
93.220
2.997
131.442
3.74
491.090
15.789
342.309
3.74
871.833
28.031
Inferred
Underground
211.541
5.22
1 104.666
35.516
Open-pit
0.001
40.78
0.026
0.001
Surface
35.916
0.31
11.149
0.358
247.458
4.51
1 115.841
35.875
Total
Underground
310.292
6.07
1 883.133
60.545
Open-pit
0.024
7.20
0.172
0.006
Surface
279.451
0.37
104.369
3.355
589.767
3.37
1 987.674
63.906
1
Reporting code and definitions
The company reports its South African mineral
resources and mineral reserves in compliance with 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 resources 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 Johannesburg Securities Exchange (“JSE”)
rules in relation to listing requirements and reporting obligations.
The company’s Australasian operations, Tolukuma and Emperor,
report their mineral resources and ore reserves in compliance
with 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 resources and mineral reserves,
with the exception of Emperor, were independently reviewed and
audited for SAMREC and JORC Code compliance by Resource Services
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 Jan de Visser (MAUSIMM and MGAA) and Mr
Martin Millard (from Metallurgical Design Management and fellow
of AUSIMM) who have the appropriate relevant qualifications,
experience, competence and independence to be considered independent
“competent persons” under the definitions provided
in the codes. They each have more than 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 two 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 Act
The Mineral and Petroleum Resources Development
Act (“The Act”) in its current form, while approved
by Parliament, has not yet been enacted. The Act cannot be implemented
without further legislation (the Royalty Bill, Beneficiation
Bill, Regulations and Prescribed Social and Labour Plans) being
enacted.
The main objective of the Act is that the State becomes the
custodian of the nation’s mineral and petroleum resources.
The prospecting and mining rights will be granted preferentially
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. Application
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 Surface
William John Laing (PLATO);
•
ERPM
Johan Smit (PLATO);
•
Blyvoor
Jan Johannes Jacobus Petrus Pretorius
(PLATO);
•
Buffels and Harties
Jan Johannes Jacobus Petrus Pretorius
(PLATO);
•
Argonaut
Mathys Hendrik Greeff Heyns (SACNASP);
and
•
Tolukuma
Michael John Bird (AusIMM).
The individuals who have provided input into this annual report,
listed above, have extensive (more 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 resources
and mineral reserves, is Mathys Hendrik Greeff Heyns, who is
an employee of the company. He has an M.Com. degree in Business
Management and is a registered member of SACNASP and the SAIMM
and has 20 years’ relevant experience.
4
Operations
During the current reporting period, the
company has:
•
acquired 40% of ERPM, a gain of 0.794
million ounces of gold mineral reserve; and
•
obtained 19.81% of Emperor Mines Limited,
a gain of 0.168 million ounces of gold mineral reserve.
4.1
Combined
The DRD attributed mineral resource
(including the Argonaut Project) has decreased in 2003
to 63.9 million ounces from 70.9 million ounces of gold
in 2002 and the mineral reserves to 15.8 million ounces
from 16.3 million ounces of gold, both decreases due largely
to the decrease of the rand gold price used for the resource
calculations, from R102 500 per kilogram in 2002 to R96
500 per kilogram in 2003.
4.2
Blyvooruitzicht (“Blyvoor”)
The total mineral resource decreased
0.2% by 0.1 million ounces of gold only, due mainly to
the positive impact of the inclusion of the No’s
4 and 5 tailings dams. The total mineral reserve decreased
20.1% by 1.5 million ounces of gold. This includes the
negative impact of rock dump depletion and erratic Main
Reef values, and the positive contribution of the inclusion
of the No’s 4 and 5 tailings dams and Carbon Leader
pillars (which were excluded due to lack of access previously),
as well as good progress made with the expansion project.
The mine is situated on the Far West Rand goldfield, on
the north-western 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 metres to 75 metres 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 southward-orientated linear zones.
4.3
Buffelsfontein (“Buffels”)
The operation’s total mineral
resource increased 10.3% by 0.5 million ounces due to
depletion not exceeding additional mineral resources identified.
The total mineral reserve increased 7.2% by 0.1 million
ounces of gold due to timeous conversion of resources
to reserves with the opening up programme.
The mine is situated on the Klerksdorp goldfield, on the
north-western rim of the Witwatersrand Basin and comprises
both underground and surface reclamation (waste rock dump)
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, quartz-pebble conglomerate no more than 50 centimetres
thick. Gold is present throughout the reef horizon, but
is concentrated on the bottom contact, where carbon commonly
forms as a thin seam.
4.4
Hartebeestfontein (“Harties”)
The total Harties mineral resource
reduced 6.2% by 0.7 million ounces due to trimming
of high values, higher cut-off grade (“COG”),
completion of Townland’s area and depletion. The
total mineral reserve decreased 0.4% by 0.3 million ounces
of gold due to higher pay limit.
The mine is situated on the Klerksdorp goldfield adjacent
to Buffels, on the north-western rim of the Witwatersrand
Basin and comprises both underground and surface reclamation
(waste rock dump) operations, three metallurgical plants,
tailings deposition facilities and associated infrastructural
facilities. Similar to Buffels, the mine exploits the
VR within the Central Rand Group of the Witwatersrand
Supergroup.
4.5
Tolukuma
The Tolukuma operation’s mineral
resource has increased 17.24% by 0.05 million ounces of
gold and the mineral reserve has increased 84.62% by 0.07
million ounces of gold. The increase in mineral resource
is due to transfer to mineral reserves through development
and to development beyond the southern open end of Gulbadi
being completed. This area has increased the life of current
producing areas. Similarities to the Tolukuma-Gulbadi
area indicate a potential ore zone for the Milaihamba
area. The nature of the mineralisation and problems with
core recovery mean that mineral resources and mineral
reserves can only be increased through development. The
planned conversion of the stoping method from the mechanised
methods (“Avoca method”) to hand-held down-dip
stoping has significantly improved the mineral resource
to mineral reserve conversion ratio. High gold losses
inherent to the Avoca method create the possibility of
reworking abandoned areas of the mine and increasing production
in the future.
The Tolukuma deposit is essentially a single narrow epithermal
gold-silver vein that follows a series of linked structures
trending generally southeasterly from Tolukuma Hill. All
of the present resource is located within this vein in
four sections that have different geological characteristics.
From north to south these are Gifunis, Tolukuma, Tolimi
and Gulbadi.
4.6
Crown surface
The Crown operation’s mineral
resources have reduced by 0.09 million ounces of gold,
associated with depletion. The mineral reserve has reduced
accordingly with 0.12 million ounces.
The operation undertakes re-treatment of surface sources,
deposited as tailings from non-operational sites and includes
three metallurgical plants, tailings deposition facilities
and associated infrastructure, which are managed as three
separate business units. Material processed by Crown comes
from numerous secondary surface resources, including sand
dumps and tailings dams (sand and slimes) deposited as
residue from mining operations on the Central Rand goldfield.
The surface sources have generally undergone a complex
depositional history, resulting in grade variations associated
with improvements in plant recoveries, deposition of sands
on slimes, presence of ash, cladding of dumps with waste
rock and the dumping of waste rock in dams. There are
variations in gold grade within the dams as well as between
dams.
4.7
ERPM
The acquisition of ERPM means that
the DRD mineral resource and reserve base has increased
with 3.43 million ounces and 0.79 million ounces, respectively.
The additional mineral resource is made possible by the
detailed geological modeling completed recently. The mine
is situated on the Central Rand goldfield located within
and near the northern margin of the Witwatersrand Basin
in the town of Boksburg, 25 kilometres east of Johannesburg.
Underground mining and recovery operations comprise relatively
shallow remnant pillar mining in the central area and
conventional longwall mining in the south-eastern area.
Future surface reclamation (tailings dump) operations
are to be conducted through the metallurgical plant, tailings
depostion facilities and associated infrastructural facilities.
The mine exploits the conglomeratic South Reef, Main Reef
Leader and Main Reef in the control area and the Composite
Reef in the south-eastern area.
4.8
Emperor
The 19.81% attributed to DRD means
that the mineral resource and mineral reserve base has
increased with 0.87 million ounces and 0.168 million ounces,
respectively.
The mine is situated on the north coast of the island
of Viti Levu, the main island of Fiji. Gold mineralisation
is associated with a volcanic caldera, and occurs in both
flat-lying and steeply-dipping structures, typically less
than a metre in width, principally on the western fringe
of the caldera. Mining is conducted underground.
5
Mineral reserve parameters
Mineral reserves for the South African operations
are calculated using a total working cost pay-limit, the previous
year’s mining efficiencies and the current life of mine
plan. The working cost pay-limit is calculated per individual
shaft or costing area using area costing figures, then combined
to formulate the total pay-limit.
The summary tables below indicate the mineral reserve parameters
utilised for the South African operations.
Underground
Blyvoor
ERPM
Buffels
Harties
Crown
Working cost
Rm
522.54
360.17
354.10
777.72
R/t
560.66
486.06
575.48
422.81
Tonnes milled
t
932 000
741 000
615 312
1 839 403
Gold price
R/kg
96 500
96 500
96 500
96 500
Plant recovery
%
95
96
96
96
Mine call factor
%
82
85
80
85
Mining factors
Sundries
%
7.0
9.0
12.3
10.8
Off-reef
%
–
–
4
7
Reclamation
%
100
100
100
103
Development
%
1
–
0.24
1.12
Discrepancy
%
13.0
12.0
12.3
18.0
Required yield
g/t
5.81
5.04
5.96
4.38
Headgrade
g/t
6.12
5.25
6.19
4.55
Broken grade
g/t
7.46
6.17
7.73
5.35
Stoping width
cm
105
115
115
115
Surface
Working cost
Rm
59.17
26.13
63.75
40.59
366.95
R/t
24.26
23.75
31.25
43.64
31.82
Tonnes milled
t
2 439 000
1 100 000
2 040 00
930 000
11 532 000
Gold price
R/kg
96 500
96 500
96 500
96 500
96 500
Plant recovery
%
60
62
75
80
61.22
Mine call factor
%
100
100
100
100
100
Mining factors
Reclamation
%
100
100
100
100
100
Required yield
g/t
0.25
0.25
0.32
0.45
0.33
Headgrade
g/t
0.42
0.40
0.43
0.57
0.54
Broken grade
g/t
0.42
0.40
0.43
0.57
0.54
6
Mineral resource and mineral reserve
statements
Note: rounding off of figures
in this report may result in minor computational discrepancies.
The mineral reserves quoted below refer
only to fully diluted delivered tonnages and grades to
the plants.
DRD combined operations
Mineral reserve statement as at June
30, 2003
Mineral
reserves (delivered)
Proved
Probable
Total
Gold
Gold
(Mt)
(g/t)
(Mt)
(g/t)
(Mt)
(g/t)
(tonnes)
(Moz)
Combined 0perations
Blyvoor
Underground
15.596
7.67
6.318
6.74
21.913
7.40
162.245
5.216
Openpit
–
–
–
–
–
–
–
–
Surface
28.674
0.61
–
–
28.674
0.61
17.556
0.564
Subtotal
44.270
3.10
6.318
6.74
50.587
3.55
179.801
5.780
Buffels
Underground
1.467
7.45
3.600
7.07
5.066
7.18
36.368
1.169
Openpit
–
–
–
–
–
–
–
–
Surface
–
–
8.740
0.91
8.740
0.91
7.981
0.257
Subtotal
1.467
7.45
12.340
2.71
13.806
3.21
44.349
1.426
Harties
Underground
21.581
6.79
11.333
6.38
32.913
6.65
218.876
7.037
Openpit
–
–
–
–
–
–
–
–
Surface
–
–
0.930
0.70
0.930
0.70
0.651
0.021
Subtotal
21.581
6.79
12.263
5.95
33.843
6.49
219.527
7.058
Tolukuma
Underground
0.178
15.99
0.128
12.02
0.306
14.33
4.390
0.141
Openpit
0.001
21.21
0.003
28.72
0.004
26.90
0.096
0.003
Surface
–
–
–
–
–
–
–
–
Subtotal
0.179
16.02
0.131
12.36
0.310
14.47
4.486
0.144
Attributable
Crown
Underground
–
–
–
–
–
–
–
–
Openpit
–
–
–
–
–
–
–
–
Surface
15.929
0.64
5.220
0.55
21.148
0.62
13.009
0.418
Subtotal
15.929
0.64
5.220
0.55
21.148
0.62
13.009
0.418
ERPM
Underground
2.168
6.20
0.888
6.86
3.056
6.39
19.541
0.628
Openpit
–
–
–
–
–
–
–
–
Surface
8.160
0.63
–
–
8.160
0.63
5.157
0.166
Subtotal
10.328
1.80
0.888
6.86
11.216
2.20
24.698
0.794
Emperor
Underground
0.295
9.98
0.235
9.67
0.530
9.84
5.220
0.168
Openpit
–
–
–
–
–
–
–
–
Surface
–
–
–
–
–
–
–
–
Subtotal
0.295
9.98
0.235
9.67
0.530
9.84
5.220
0.168
Total combined
Underground
41.284
7.18
22.502
6.67
63.786
7.00
446.640
14.360
Openpit
0.001
21.21
0.003
28.72
0.004
26.90
0.096
0.003
Surface
52.763
0.62
14.890
0.77
67.652
0.66
44.354
1.426
Total
94.048
3.50
37.395
4.33
131.442
3.74
491.090
15.789
The mineral resources quoted below refer
only to in situ tonnages and grades:
DRD combined
operations Mineral resource statement as at
June 30, 2003
Mineral resources
(inclusive of reserve and in-situ)
