Further to the DRDGOLD announcement released on 26 November 2007 regarding the expansion of its East Rand gold tailings treatment joint venture with Mintails Limited of Australia ("the ERGO JV"), DRDGOLD is pleased to announce a new SAMREC compliant Measured Resource for the Elsburg Tailings Complex.
The ERGO JV was established to explore, evaluate and process approximately 1.7 billion tonnes of surface gold, uranium and sulphur bearing tailings on the East and Central Rand goldfields of South Africa. The ERGO JV will refurbish and utilise the full ERGO plant which previously produced significant quantities of gold, uranium and sulphuric acid.
Recent sampling and technical evaluation by RSG Global of the Elsburg Tailings Complex only has established a new SAMREC compliant Measured Resource containing an estimated 1.6 million ounces of gold as described below:
It has been assumed that the tailings dams would be mined in their entirety, therefore no cut off grades or losses were included in the estimation.
The above resources refer only to gold mineralisation. Further analysis is planned to be undertaken for uranium and sulphur content within the next two to six months.
The Elsburg Tailings Complex, which was introduced to the ERGO JV by DRDGOLD, represents approximately 10% of the total 1.7 billion tonnes of tailings materials forming the ERGO JV. The ERGO JV intends to continue with an ongoing programme of resource evaluation and upgrade to properly identify and classify the gold, uranium and sulphur content of all of its tailings materials.
Phase 1 of the ERGO JV will be confined to gold production only and is based on the refurbishment of one of the carbon in leach circuits at the Brakpan plant to treat and process approximately 15 million tonnes a year to produce an estimated 75 000 ounces of gold a year.
James Duncan, Russell & Associates
+27 11 880 3924 (office)
+27 82 892 8052 (mobile)
Investor and Media Relations
Barbara Cano, Breakstone Group International
+1 646 452 2334 (office)
Investor and Media Relations
Phil Dexter, St James’s Corporate Services
+44 20 7499 3916 (office)
+44 779 863 4398 (mobile)
For more information, please visit www.drdgold.com
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 2006, which we filed with the United States Securities and Exchange Commission on 22 December 2006 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.