DRDGOLD increases measured Mineral Resources and Mineral Reserves substantially
02 February 2017
Johannesburg, South Africa. 2 February 2017. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD), in a revised Mineral Resources and Mineral Reserves statement dated 31 December 2016, discloses a 52.6% increase in Measured Mineral Resources and a 66.6% increase in Mineral Reserves from those previously reported as at 30 June 2016.
Measured Mineral Resources increased from 161.9Mt@0.29g/t to 261.5Mt@0.28g/t and Mineral Reserves from 170.9Mt@ 0.33g/t to 312.6Mt @0.30g/t.
This results in a 66.6% increase in Gold in Reserves from 1.8Moz to 3Moz and a five-year extension to the operating life of Ergo.
The revised Mineral Resources and Mineral Reserves statement flows from a drilling programme and pre-feasibility study begun in September 2016, aimed at re-evaluating DRDGOLD’s surface gold tailings.
Tailings dumps and dams on the East Rand, to the east of the company’s Ergo plant – specifically 7L15, Rooikraal and Grootvlei (6L16/6L17 and 6L17A) – were a particular focus, the intention being to add these to the mineral reserve base.
Capital expenditure of R507.7 million will be needed to access these dumps and dams. Included is the cost of 162.4km of pipelines and new pump stations. All required permits are in place.
No major upgrades are required to the current Ergo processing plant, and the existing Brakpan/Withok Tailings Deposition Facility has sufficient capacity to dispose of processing waste.
Please note: the full revised Mineral Resources and Mineral Reserves statement is available on SENS and the DRDGOLD website, www.drdgold.com
South Africa and North America
Investor and Media Relations
Russell and Associates
+27 (0) 11 880 3924 (office)
+27 (0) 79 336 4010 (mobile)
Investor and Media Relations
Phil Dexter, St James's Corporate Services
+44 (0) 20 7796 8644 (office)
+44 (0) 779 863 4398 (mobile)
For more information, please visit www.drdgold.com
Forward looking Statements
Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD’s competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors. These risks include, without limitation, those described in the section entitled “Risk Factors” included in our annual report for the fiscal year ended 30 June 2016, which we filed with the United States Securities and Exchange Commission on 31 October 2016 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events. Any forward-looking statements included in this release have not been reviewed and reported on by DRDGOLD’s auditors.