Media releases

DRDGOLD, Mintails announce East Rand gold tailings treatment joint venture and agreement with Anglogold Ashanti

DRDGOLD and Mintails Limited today announced the formation of a new joint venture between Mintails SA, a wholly owned subsidiary of Mintails Limited, and DRDGOLD South African Operations, which is 74% held by DRDGOLD with the balance being held by its BEE partners, Khumo Gold SPV and an employee trust. DRDGOLD and Mintails Limited (ASX: MLI) today announced the formation of a new joint venture (“the JV”) between Mintails SA (Pty) Limited (“Mintails SA”), a wholly owned subsidiary of Mintails Limited, and DRDGOLD South African Operations (Pty) Limited (“DRDGOLD SA”), which is 74% held by DRDGOLD with the balance being held by its BEE partners, Khumo Gold SPV (Pty) Limited and an employee trust.The JV has acquired from AngloGold Ashanti Limited (“AngloGold Ashanti”) significant gold-bearing tailings materials created from historic gold production and remaining infrastructure surrounding ERGO, a surface reclamation operation on South Africa‘s East Rand goldfields which was discontinued by AngloGold Ashanti in 2004.

It is envisaged that the JV, together with the additional tailings resources and infrastructure acquired from AngloGold Ashanti, will create significant potential for the processing of surface gold tailings on the East Rand goldfields.

Over its 25-year history, ERGO processed more than 890 million tonnes of tailings material on the East Rand and produced approximately 8.2 million ounces of gold through two plants, Brakpan and East Daggafontein. These two plants were purchased by Mintails SA in 2006.

Following discussions initiated in the first quarter of 2007, the JV parties agreed to pursue a strategy to consolidate certain of their assets on the East Rand. Mintails SA will contribute one fully refurbished CIL circuit at the Brakpan plant and DRDGOLD SA will contribute the Elsburg Tailings Complex, comprising approximately 180 million tonnes of tailings.

Mintails SA and DRDGOLD SA will each own 50% of the JV.The JV will be managed by Crown Gold Recoveries (Pty) Limited, a subsidiary of DRDGOLD SA, which has treated more than 200 million tonnes of sand and slime and produced approximately 2.8 million ounces of gold through its plants.

The initial phase of the project envisages the refurbishment of one CIL circuit at the Brakpan plant which will have the capacity to treat an estimated 1.25 million tonnes of tailings per month. This is dependent on the outcome of the current drilling and testing evaluation. Depending on the outcome of the feasibility study, it is possible that the first gold production could commence within 24 months. The process will involve the treatment of tailings from the Elsburg Tailings Complex through the Brakpan plant with residue being deposited on the East Daggafontein deposition site.

The JV has entered into a Sale of Assets agreement with Anglogold Ashanti in terms of which the JV will acquire the remaining moveable and immovable assets of ERGO. These assets will be operated by the JV, for its own account, under the Anglogold Ashanti authorisations until new order mining rights have been obtained and transferred to the JV. These assets, comprising servitudes (access agreements), infrastructure, piping, equipment and the right to an additional 15million tonnes of tailings material, provide a platform to consolidate these tailings assets with the Elsburg Tailings.

If certain necessary criteria are met, the JV parties consider that the consolidation and treatment of these remaining surface assets on the East Rand could provide significant potential value-add to the JV and to the respective participants.

On 26 April 2007, Mintails and DRDGOLD announced the formation of a separate joint venture company to explore, evaluate and potentially mine gold and uranium by open cast and underground mining methods on the West Rand. This West Rand joint venture is a distinct and separate entity from the JV described above. Th West Rand joint venture is expected to list as a new company on the Australian Stock Exchange in due course, once the Initial Public Offering is completed.


South Africa
Investor and Media Relations
Ilja Graulich, DRDGOLD
+27 11 219 8707(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 Group International
+1 646 452 2334 (office)

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

DRDGOLD is a medium-sized, unhedged gold producer with investments in South Africa and Australasia.
In South Africa, the company has a 74% interest in DRDGOLD South African Operations (Pty) Limited (DRDGOLD SA), while in Australasia, it has a 78.72% interest in Emperor Mines Limited.
In the 2006 financial year, DRDGOLD SA contributed 60% or 315 976 ounces – of total attributable gold production of 527 401 ounces, and Emperor 211 425 ounces. At 30 June 2006, DRDGOLD’s total attributable resource base was 47.6 million ounces and its total attributable reserves were 8.8 million ounces.
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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 continuing strengthening of the rand against the dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licences 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 2005, which we filed with the United States Securities and Exchange Commission on 15 December 2005 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