Media releases

Update on status at DRDGOLD’s North West operations following earthquake on 9 March 2005

Details

Published: Thursday, 10 March 2005 02:00

DRDGOLD CEO Mark Wellesley-Wood thanked mining and other employees of the North West Operations, medical personnel and brigadesmen of the Mine Rescue Service for their contributions to the rescue operations which had resulted in an efficient evacuation of 3,198 miners following the earthquake experienced in Stilfontein in North West Province on 9 March 2005.
Johannesburg, South Africa. 10 March 2005. DRDGOLD CEO Mark Wellesley-Wood thanked mining and other employees of the North West Operations, medical personnel and brigadesmen of the Mine Rescue Service for their contributions to the rescue operations which had resulted in an efficient evacuation of 3,198 miners following the earthquake experienced in Stilfontein in North West Province on 9 March 2005.

It is with regret that the company has confirmed that one employee died as a result of injuries sustained during the earthquake. Twenty employees sustained minor injuries which were treated at the mine’s first aid station, and a further 20 were hospitalized. One of those hospitalized suffered serious head trauma. One employee remains unaccounted for. All affected employees and their families are being provided with access to counselling services.

DRDGOLD Limited noted that preliminary assessments suggest that the earthquake felt across a large area of central South Africa yesterday was not caused by current mining activities conducted by DRDGOLD’s North West Operations. The company refers to measurements reported by the United States Geological Survey (http://earthquake.usgs.gov/recenteqsww/Quakes/usvkar.htm) which registered tectonic activity at a depth of 15 kilometres below surface. DRDGOLD’s own measurements suggested a point of origin approximately 2,000 metres below surface, in a fault which traverses the Stilfontein area.

Yesterday’s tremor, as measured by the Council for Geoscience, registered a magnitude of 5.3 on the Richter Scale, making it the largest recorded earthquake in South Africa since 1969.

The company added that it had no current mining activities within three kilometres of yesterday’s earthquake.

As in the normal course of business, the company has notified its insurers of the occurrence of the event.

The company notes that the mining areas affected by the tremors were properly supported according to mine standards. However as a result of the extent of the event, infrastructure sustained serious damage and various rockfalls occurred. The No 5 Shaft of DRDGOLD’s North West Operations, which accounts for approximately 11% of North West Operations total gold production and which suffered serious damage as a result of yesterday’s earthquake, remains closed. Production at the mine’s other seven shafts has returned to normal.

The Acting Minister of Minerals and Energy, Ms Buyelwa Sonjica, visited injured employees at the mine’s Duff Scott Hospital and No 5 Shaft today. She complimented DRDGOLD’s staff on the efficiency with which the rescue of employees was completed.

DRDGOLD is committed to cooperating in a thorough investigation into the cause of this event which will be conducted by the Department of Minerals and Energy.

Queries:

South Africa
Investor and Media Relations
Ilja Graulich, DRDGOLD
+27 11 381 7826 (office)
+27 83 604 0820 (mobile)

James Duncan, Russell & Associates
+27 11 880 3924 (office)
+27 82 892 8052 (mobile)

North America
Investor and Media Relations
Barbara Cano, Breakstone & Ruth International
+1 646-536-7015 (office)
+1 917-861-2530 (mobile)

Australasia
Investor and Media Relations
Paul Downie, Porter Novelli
+61 893 861 233 (office)
+61 414 947 129 (mobile)

United Kingdom/Europe
Investor and Media Relations
Phil Dexter, St James's Corporate Services
+44 20 7499 3916 (office)
+44 779 863 4398

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DRDGOLD is the world’s 9th largest primary gold producer, with mines in South Africa as well as Australasia, a key target for growth. For fiscal year 2004, DRDGOLD produced 905 000 ounces of gold, up from under 100 000 ounces a year in 1997, when current operations were amalgamated.

DRDGOLD has primary listings on the Johannesburg (JSE:DRD) and Australian (ASX:DRD) stock exchanges and secondary listings on NASDAQ (DROOY), the London and Port Moresby stock exchanges and the Paris and Brussels Bourses. Its shares are also traded on the regulated unofficial market of the Frankfurt Stock Exchange and the Berlin OTC Market.

For more information, please visit www.drdgold.com

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FORWARD-LOOKING STATEMENTS
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or other financial performance, including forward-looking statements and information relating to DRDGOLD that are based on the beliefs of management, as well as assumptions made by and information currently available to management. When used in this press release, the words "estimate", "project", "believe", "anticipate", "intend", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect management¹s current views with respect to future events and are subject to risks, uncertainties and assumptions. These statements include the Company's ability to continue as a going concern, its ability to successfully restructure the South African operations and, in particular the North West operations, its ability to significantly reduce its costs in South Africa, its ability to fund its future commitments, including the restructure of the North West Operations.

Many factors could cause 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 continuing strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD¹s competitive position, changes in business strategy, any major disruption in production at our 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 2004, which we filed with the United States Securities and Exchange Commission on 29 November 2004 on Form 20-F, as amended by the Form 20-F/A filed on December 3, 2004, and those detailed from time to time with the United States Securities and Exchange Commission. 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.