| Tue 17 Jul 2007, 11:00 | | DRD - DRDGOLD Limited - 150% increase in resources |
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DRD
DRDD
DRD - DRDGOLD Limited - 150% increase in resources at East Rand Proprietary
Mines Limited
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
JSE trading symbol: DRD
ISIN Code: ZAE000058723
Nasdaq trading symbol: DROOY
("DRDGOLD" or "the company")
150% increase in resources at East Rand Proprietary Mines Limited
DRDGOLD South African Operations (Pty) Limited ("DRDGOLD SA"), jointly owned by
DRDGOLD (74%), Khumo Gold SPV (20%) and an employee empowerment trust (6%),
today announced a 150% increase in total resources at its East Rand Proprietary
Mines Limited ("ERPM") operation at Boksburg.
The increase, from 16.58 million ounces at 30 June 2006 to 41.37 million ounces,
arises primarily from the addition of:
* 16.74 million inferred resource ounces at a average grade of 5.54 grams per
ton in ERPM`s southern lease area; and
* 8.32 million inferred resource ounces at an average grade of 9.06 grams per
ton at a stope width of 125 cm in the ERPM Ext 2 area (contiguous to the
ERPM Ext 1 prospecting right). This resource relates to 17% of the 5 500 ha
covered by the prospecting right.
The additional resources were estimated by ERPM, independent consultants Camden
Geoserve and Minxcon, and reviewed by RSG Global.
DRDGOLD SA Chief Executive Officer, Niel Pretorius, paid tribute to the
Department of Minerals and Energy ("DME") both for its granting of a prospecting
right over ERPM Ext 2 and for its financial support of an ambitious underground
plugging programme to secure ERPM`s Far East Vertical ("FEV") Shaft from water
rising in the Central Witwatersrand Basin.
"Without the DME-backed, three-year plugging programme now nearing completion,
FEV Shaft would be lost to flooding; and without FEV Shaft there would be little
prospect of ERPM increasing its resources, converting these to reserves and
mining the additional ounces into the future," Pretorius said.
"These ounces, all on the `dry` side of the water barrier, are a lifeline into
the future for the mine, a real option with flow-through benefits for all of its
stakeholders, not least surrounding community."
The plugging programme, started in November 2004 and scheduled for completion in
October 2007, has involved the construction of eight underground plugs at a
total cost of R35 million. The DME has contributed some R22 million, or 63% of
the total cost.
Johannesburg
17 July 2007
Queries:
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)
Background information
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.
For more information, please visit www.drdgold.com
Disclaimer:
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.
Date: 17/07/2007 11:00:01 Produced by the JSE SENS Department.
