| Thu 26 Apr 2007, 10:12 | | DRD - DRDGOLD - Mintails and DRDGOLD Agree West Ra |
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DRD
DRDD
DRD - DRDGOLD - Mintails and DRDGOLD Agree West Rand Gold and Uranium
Exploration and Mining Joint Venture
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
ARB number 086 277 616
JSE trading symbol: DRD
ISIN Code: ZAE000058723
Issuer code: DUSM
Nasdaq trading symbol: DROOY
("DRDGOLD" or "the company")
MINTAILS AND DRDGOLD AGREE WEST RAND GOLD AND URANIUM EXPLORATION AND MINING
JOINT VENTURE
Mintails Limited (ASX: MLI) and DRDGOLD Limited ("DRDGOLD")(NASDAQ: DROOY: JSE:
DRD) announced today that they had reached agreement on the formation of a joint
venture company which is yet to be formed ("the JV")in South Africa to explore,
evaluate and potentially mine gold and uranium by opencast and underground
mining methods in the Western Rand Goldfield of South Africa`s Witwatersrand
Basin.
Following discussions initiated during the fourth quarter of 2006, the JV
stakeholders, DRDGOLD, Mintails SA (wholly owned by Mintails Limited) and
Mineral & Mining Reclamation Services (Pty) Ltd ("MMRS") have agreed to
consolidate their West Rand Goldfield projects comprising Rand Leases, Durban
Roodepoort Deep, East Champ D`Or, Luipaardsvlei and West Rand Consolidated
(including West Wits). The JV`s goal is to re-evaluate and re-start mining in
the West Rand Goldfield, situated in the Witwatersrand Basin in South Africa`s
Gauteng province.
Initially, DRDGOLD and Mintails SA will hold 45% each in the JV and MMRS will
hold 10%. It is intended that the JV will be listed on the Australian Stock
Exchange to raise a minimum of $6 million as an initial public offering, and
subsequently list on the JSE Limited, the Johannesburg stock exchange.
The Witwatersrand is arguably one of the greatest gold and uranium-producing
regions in the world. The JV`s lease consolidation provides a package of
tenements with a continuous strike of over 20 kilometres, covering significant
gold and uranium-producing, historical mines over the western margin of the
Witwatersrand.
Gold production in the West Rand Goldfield began in the late 1880s with the
focus on the Main and South reefs. Discovery of further reefs was quick to
follow. The known reef groups on the JV`s consolidated lease area include the
Main, Johnstone, Bird and Kimberley, with less extensive reefs such as the Black
reef located in pockets.
Historical gold production on the constituent leases exceeds 30 million ounces
and 17 000 tons U3O8.
Fluctuating gold and uranium commodity prices during the 20th century saw the
closure and re-opening of mines and changes in mining focus between gold and
uranium.
The JV`s objective for the first two years is to aggressively delineate Au and
U3O8 resource/reserves, progress into advanced stages of commissioning or
commence mining on the consolidated lease area. Modern mining techniques will
be utilised and all activities conducted will be to a world-class standard.
Exploration targets are in the process of being generated across the
consolidated lease area. The intention is to begin exploration for surface
resource/reserves, while concurrently delineating remaining pillar reserves and
areas previously unmined. Deeper exploration programmes will be designed later
in 2008.
To achieve the JV`s goals, various exploration techniques will be utilised,
including but not limited to surface reverse circulation and diamond drilling,
underground diamond drilling and channel sampling of underground pillars.
In the creation of the exploration programme, the Witwatersrand reefs are being
evaluated and prioritised. The U3O8- and Au-producing Bird Reef Group found
across the JV consolidated lease area become the initial primary target for
open-
cut and underground mining. Other Au-producing reef groups such as the Main and
Kimberley will be targeted subsequently.
A programme of data compilation and cataloguing has begun and early results are
encouraging. Given the disbursement of information and possible losses over the
past 100 years of mining, the data collection programme will be on-going.
Under the South African Mineral and Petroleum Resources Development Act of 2002,
a new mineral rights regime was introduced to install a pro-active exploration
and mining industry. The new legislation has introduced a "use it or lose it"
philosophy, allowing previously held, under-utilised land to receive attention
from capable explorers willing to commit to the area and people. The JV holds
new order and old order rights; the latter are in the process of being
converting to new order.
For further information, please contact Ilja Graulich, Head of Investor
Relations or Niel Pretorius, CEO DRDGOLD South African Operations (Pty) Ltd at +
27 11 219 8700.
Johannesburg
26 April 2007
Sponsor
Standard bank
Date: 26/04/2007 10:12:01 Produced by the JSE SENS Department.
