| Thu 21 Apr 2005, 9:08 | | Report on activities for the third quarter |
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DRDGOLD - Report on activities for the third quarter ended 31 March 2005 of the
2005 financial year
DRDGOLD LIMITED
(Formerly Durban Roodepoort Deep, Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
ARBN number 086 277 616
JSE trading symbol: DRD
ISIN Code: ZAE 000058723
Issuer code: DUSM
Nasdaq trading symbol: DROOY
ASX trading symbol: DRD
(`DRDGOLD`)
REPORT ON ACTIVITIES FOR THE THIRD QUARTER ENDED 31 MARCH 2005 OF THE 2005
FINANCIAL YEAR
GROUP RESULTS (Unaudited)
KEY FEATURES
Buffelsfontein liquidated following the loss of No. 5 Shaft
Blyvoor production up 6%
R180 million capital raising
KEY RESULTS SUMMARY
GROUP Quarter Quarter 9 mths to Quarter
Mar 2005 Dec 2004 Mar 2005 Mar 2004
Attributable gold production(*)
Australasian operations oz 79 334 87 751 244 472 73 014
Kg 2 467 2 731 7 605 2 271
South African operations oz 60 733 59 832 187 150 79 908
Kg 1 889 1 861 5 821 2 485
Discontinued operations oz 47 584 75 714 199 850 87 836
Kg 1 480 2 355 6 216 2 732
Group oz 187 651 223 297 631 472 240 758
Kg 5 836 6 947 19 642 7 488
Gold price received US$/oz 431 433 423 406
ZAR/kg 83 341 84 843 83 765 88 577
Capital expenditure US$ million 1.3 6.5 13.8 5.9
ZAR million 7.1 39.0 85.0 39.9
* Attributable - including Emperor Mines Limited (`Emperor`) (45.33%) and Crown
Gold Recoveries (Pty) Limited (40%)
STOCK
ISSUED CAPITAL
263 401 932 ordinary no par value shares
5 000 000 cumulative preference shares
Total ordinary no par value shares issued
and committed: 307 968 956
STOCK TRADED JSE ASX NASDAQ FRANKFURT
Avg. volume for the quarter
per day (000) 263 20 3 966 131
% of issued stock traded
(annualised) 26% 2% 393% 8%
Price - High R9.10 A$2.10 US$1.57 Euro 1.18
- Low R4.50 A$0.95 US$0.78 Euro 0.63
- Close R6.15 A$1.20 US$0.92 Euro 0.72
SAFETY
Following a year in which the company distinguished itself with an outstanding
safety performance, the quarter under review has seen a disheartening
deterioration, specifically at the South African operations. It is with deep
regret that we record the deaths of five employees in work-related incidents:
four at the North West Operations and one at East Rand Proprietary Mines Limited
(`ERPM`). An enquiry into the deaths of two employees at the North West
Operations in an underground transport-related incident attributed the cause to
deliberate non-compliance with safety policies and procedures. Two employees
died in the earthquake that struck the North West Operations on 9 March 2005,
and the fatality at ERPM was similarly seismicity-related. The exposure of our
employees to seismicity risk was a factor in the decision to apply for the
provisional liquidation of Buffelsfontein Gold Mines Limited. A consequence of
these fatalities is a renewed focus on both behavior-based training and
underground support standards. Encouragingly, investigations in the aftermath of
a seismic event at Blyvooruitzicht Gold Mining Company Ltd`s (`Blyvoor`) No. 5
Shaft during February revealed that underground support was up to standard and
the particular efficacy of the rapid-yielding hydraulic props that had been
applied extensively.
PRODUCTION
Gold production for the quarter was 16% lower at 187 651 ounces (5 836
kilograms). This reflects a decline in gold production at both the North West
Operations in South Africa and at the Australasian operations of 37% and 10%
respectively. The North West Operations continued to experience a series of
reversals during the quarter and the holding company, Buffelsfontein Gold Mines
Limited, was put into provisional liquidation on 22 March, 2005. Continued,
successful implementation of the new mining plan at Blyvoor in South Africa,
however, resulted in a 6% increase in gold production to 39 995 ounces (1 244
kilograms), thus restoring the mine to breakeven.
COSTS
Ongoing cost improvements at Blyvoor are encouraging, restoring the mine to
profitability. Higher world oil prices, however, impacted negatively on cost at
the Australasian operations.
FINANCIAL
Cash and cash equivalents increased to R145.8 million from R 143.1 million in
the previous quarter and the current ratio improved to 1.12 from 0.84.
GOLD MARKET REVIEW
The average gold price received for the quarter, while virtually unchanged in US
Dollar terms at US$431 per ounce (US$433), was 2% lower in Rand terms at R83 341
per kilogram (R84 843) due to the sustained strength of the South African
currency. Consequently, all of the company`s South African operations faced
continued Rand-driven revenue and cost pressures. Overall, volumes in the gold
market have been flat globally, while lending rates available from Central Banks
have reached historic lows, a clear indication that hedging as an instrument has
all but lost its luster in the current environment. We are encouraged by these
facts and it provides further evidence in our continued belief in a higher gold
price. We are also encouraged by the decision last week of the South African
Reserve Bank to lower interest rates by 50 basis points. The continued high
interest rates environment in South Africa has had a dramatically negative
effect on the local currency and thus the export sector, which has suffered
under a strong Rand.
CORPORATE DEVELOPMENTS
All efforts in the quarter under review have been directed at restoring the
company as a whole - and its South African operations in particular - to
stability following a dismal, preceding six months. Undoubtedly, the most far-
reaching development was the provisional liquidation of Buffelsfontein Gold
Mines Limited and the consequent discontinuation of mining at the North West
Operations. The effect of this was to immediately staunch the unsustainable
drain on DRDGOLD`s resources, thus providing a platform for recovery and future
growth. Other measures taken to reach this stage have included a 30% reduction
in DRDGOLD`s corporate headcount, a 50% cut in corporate costs and the sale of
the company`s Johannesburg corporate office.
During the quarter DRDGOLD focused on its funding requirements:
- R38 million was received from Consolidated African Mines/JCI Limited in
respect of an outstanding legal dispute; and
- a subscription agreement was entered into with Baker Steel Capital Managers
LLP (`BSCM`) on behalf of BSCM clients. In terms of this, DRDGOLD will
raise, in aggregate, R93.5 million through the issue of new, ordinary, no
par value shares in the stated capital of DRDGOLD to BSCM clients through a
specific issue of shares for cash. (The securities offered to BSCM on
behalf of its clients have not been registered under the US Securities Act
of 1933, as amended, and may not be offered or sold in the United States
absent an applicable exemption from registration requirements.)
- an underwriting agreement to raise R86.9 million through the issue of new
ordinary no par value shares in the stated capital of DRDGOLD through a
claw-back offer.
Australasian operations
Porgera (20% of the Quarter Quarter % 9 mths to Quarter
Joint Venture) Mar 2005 Dec 2004 Change Mar 2005 Mar 2004
Ore milled t`000 297 318 (7) 903 319
Yield g/t 5.07 5.32 (5) 5.20 5.02
Gold produced oz 48 406 54 417 (11) 150 985 51 505
kg 1 506 1 693 (11) 4 697 1 602
Capital expenditure
US$ m 0.9 4.2 80 7.7 3.4
ZAR m 5.0 25.5 80 47.9 23.2
Gold production was 11% lower at 48 406 ounces (1 506 kilograms). This was due
to a 7% decline in tonnage milled to 297 000 tons and a 5% decline in yield to
5.07 grams per ton. The lower output arose from a failure of the West wall,
harder ore to the mill and unscheduled downtime due to power line vandalism.
Tolukuma Quarter Quarter % 9 mths to Quarter
Mar 2005 Dec 2004 Change Mar 2005 Mar 2004
Ore milled t`000 52 55 (5) 159 50
Yield g/t 11.27 10.85 4 11.25 13.38
Gold produced oz 18 878 19 183 (2) 57 545 21 509
kg 586 597 (2) 1 789 669
Capital expenditure
US$ m 0.5 1.2 57 2.9 1.2
ZAR m 3.2 7.5 57 17.6 8.2
Yield improved by 4% to 11.27 grams per ton but a 5% decline in ore milled to 52
000 tons resulted in a 2% decrease in gold production to 18 878 ounces (586
kilograms).
Emperor Quarter Quarter % 9 mths to Quarter
(45.33% attributable) Mar 2005 Dec 2004 Change Mar 2005 Mar 2004
Ore milled t`000 63 67 (6) 168 -
Yield g/t 5.95 6.58 (10) 6.66 -
Gold produced oz 12 050 14 151 (15) 35 942 -
kg 375 441 (15) 1 119 -
Gold production output from Emperor remained disappointing.
South African operations
Blyvoor Quarter Quarter % 9 mths to Quarter
Mar 2005 Dec 2004 Change Mar 2005 Mar 2004
Area mined m2 000 36 32 13 116 38
Development m 453 258 76 1 431 849
Face length m 1 234 1 268 (3) 1 419 2 121
Stoping width cm 108 107 1 109 107
Ore milled
Underground t`000 140 129 9 449 209
Surface t`000 780 768 2 1 125 750
Total t`000 920 897 3 2 574 959
Yield
Underground g/t 7.36 7.49 (2) 7.15 7.09
Surface g/t 0.27 0.27 2 0.25 0.39
Total g/t 1.35 1.31 3 1.46 1.85
Gold produced
Underground oz 33 115 31 057 7 103 203 47 615
kg 1 030 966 7 3 210 1 481
Surface oz 6 880 6 623 4 17 361 9 324
kg 214 206 4 540 290
Total oz 39 995 37 680 6 120 564 56 939
kg 1 244 1 172 6 3 750 1 771
Capital expenditure
US$ m (0.1) (0.3) (68) (0.2) 0.8
ZAR m (0.6) (1.9) (68) (1.0) 5.8
Overall gold production increased by 6% to 39 995 ounces (1 244 kilograms)
quarter-on-quarter, reflecting increases in tonnage from both underground and
surface sources.
Productivity, in terms of grams per total employee costed (`g/tec`) rose by 6%
to 124.75 g/tec. Improved temperature control from the installation of
underground spray chambers on both the western and eastern sides of No. 5 Shaft
are expected to contribute towards further productivity improvement, as is a
campaign - based on more coaching, communication and controls - to increase face
advance per blast.
Continued application of the new mining plan, with a focus on No. 5 and No. 6
Shafts, resulted in a 13% increase in area mined to 36 000 m2 and a substantial,
76% increase in development to 453 m. A six-month assessment is currently under
way to determine the viability of re-establishing mining operations from the No.
2 Shaft sub-shaft, at an estimated capital cost of R50 million (US$8.0 million).
If viable, this project could restore Blyvoor`s life of mine (`LOM`) to 20
years.
A 9% increase in underground tonnage to 140 000 tonnes more than compensated for
a slight decrease in underground yield to 7.36 grams per ton (`g/t`)(7.49 g/t),
resulting from the opening up of lower grade areas on the western side of No. 5
Shaft. Consequently, underground gold production rose by 7% to 33 115 ounces (1
030 kilograms).
A mine call factor (`MCF`) strategy applied underground during the quarter
involved tighter water management, the upgrading of mud settlers, and increased
sweeping and vamping, with consequent improvements in efficiencies. Plans are in
place to eliminate spillages and other inefficiencies in the plant.
Surface tonnage increased by 2% to 780 000 tonnes, reflecting continued
improvement in throughput from the Slimes Dam Project.
While heavy rains impacted negatively on the project throughout the quarter, a
sustained drive to identify and address faults timeously, together with pipe
layout changes to eliminate bottlenecks, led to record throughput of 260 000
tonnes during March, some 20 000 tonnes above designed capacity. Surface yield
was maintained at 0.27 g/t but the increase in tonnage led to a 4% rise in gold
production to 6 880 ounces (214 kilograms).
A project is under way currently to determine the potential for increasing
throughput from the Slimes Dam Project by 33% from 240 000 tonnes per month to
320 000 tonnes at an estimated capital cost of R7 million (US$1.1 million).
Crown Quarter Quarter % 9 mths to Quarter
(40% attributable) Mar 2005 Dec 2004 Change Mar 2005 Mar 2004
Ore milled t`000 841 894 (6) 2 648 1 024
Yield g/t 0.39 0.40 (3) 0.41 0.38
Gold produced oz 10 643 11 613 (8) 34 538 12 629
kg 331 361 (8) 1 074 393
Gold production was 8% lower at 10 643 oz (331 kg), reflecting a 6% drop in
tonnage to 841 000 tonnes. Yield was virtually unchanged at 0.39 g/t.
The lower throughput was due mainly to the impact of heavy rains on reclamation
operations generally and more specifically to both pipeline failures at the
Crown plant and to short-term difficulties arising from the high incidence of
rock encountered at the Crown Mines reclamation site.
A pipeline replacement programme is in place and the Crown plant is expected to
benefit both from better reclamation conditions and improved grade from a new
reclamation site at Consolidated Main Reef (CMR)(2/A/1) to be commissioned in
May and another at 3L17 which was commissioned at the end of March.
Crown`s City Deep and Knights plants both recorded steady-state performances in
the quarter under review.
ERPM Quarter Quarter % 9 mths to Quarter
(40% attributable) Mar 2005 Dec 2004 Change Mar 2005 Mar 2004
Area mined m2* 000 16 16 - 57 30
Development* m 253 108 134 435 363
Face length* m 694 683 2 716 1 189
Stoping width* cm 126 133 (5) 129 125
Ore milled
Underground t`000 30 35 (14) 112 57
Surface t`000 197 210 (6) 559 -
Total t`000 227 245 (7) 671 57
Yield
Underground g/t 7.61 7.27 5 7.11 5.62
Surface g/t 0.42 0.36 17 0.36 -
Total g/t 1.38 1.34 3 1.49 5.62
Gold produced
Underground oz 7 433 8 032 (7) 25 592 10 340
kg 231 250 (7) 796 321
Surface oz 2 662 2 507 6 6 456 -
kg 83 78 6 201 -
Total oz 10 095 10 539 (4) 32 048 10 340
kg 314 328 (4) 997 321
* Represents total mine
Overall gold production was 4% lower at 10 095 oz (314 kg).
Gold production from underground was 7% lower at 7 433 oz (231 kg), reflecting a
14% drop in tonnage to 30 000 tonnes due to technical problems on both the rock
hoist and the decline belt between 70 and 74 levels at Far East Vertical (`FEV`)
Shaft. These problems are being addressed. Underground yield improved by 5%,
assisted by an increased focus on sweepings.
While area mined was maintained at 16 000 m2, development increased by more than
134% to 253 m.
Gold production from the Cason surface retreatment project rose by 6% to 2 662
oz (83 kg) due to a 17% improvement in yield to 0.42 g/t. Tonnage was 6% lower
as a consequence of a plant breakdown and delays in sourcing spares from
overseas.
The first phase of a three-phase plugging project to isolate the FEV shaft from
the rest of the mine`s underground operations is progressing, on budget and on
schedule. Application to the Department of Minerals and Energy (`DME`) both for
a grant of R8.4 million for phase two of the project, and a pumping subsidy of
R1.3 million a month in fiscal 2006 have been approved.
Underground salvaging and reclamation at the mine`s Central and Hercules Shafts
is 90% completed. Some 30% of the proceeds of scrap approved for sale by the
DME have been directed to the rehabilitation fund. Central Shaft will be placed
on care and maintenance and Hercules Shaft closed permanently during the current
quarter.
Discontinued operations
North West Quarter Quarter % 9 mths to Quarter
(Hartebeestfontein Mar 2005 Dec 2004 Change Mar 2005 Mar 2004
and Buffelsfontein
mines)
Area mined m2 000 70 81 (14) 243 81
Development m 7 366 10 442 (29) 26 148 11 240
Face length m 2 404 2 871 (16) 2 759 2 834
Stoping width cm 120 121 (1) 120 125
Ore milled
Underground t`000 246 344 (28) 986 403
Surface t`000 320 394 (19) 884 31
Total t`000 566 738 (23) 1 870 434
Yield
Underground g/t 4.68 5.87 (20) 5.44 6.20
Surface g/t 1.03 0.85 21 0.96 7.58
Total g/t 2.61 3.19 (18) 3.32 6.29
Gold produced
Underground oz 37 006 64 944 (43) 172 522 80 280
kg 1 151 2 020 (43) 5 366 2 497
Surface oz 10 578 10 770 (2) 27 328 7 556
kg 329 335 (2) 850 235
Total oz 47 584 75 714 (37) 199 850 87 836
kg 1 480 2 355 (37) 6 216 2 732
Capital expenditure
US$ m (0.1) 1.3 109 3.3 0.4
ZAR m (0.7) 7.9 109 20.3 2.8
As has been previously reported, Buffelsfontein Gold Mines Limited, a wholly
owned subsidiary of DRDGOLD and operator of the Buffelsfontein and
Hartebeestfontein mines - better known as the North West Operations of DRDGOLD -
went into provisional liquidation on 22 March, 2005.
All operations, other than essential services, were discontinued from that date
to the end of the March quarter. Consequently, the results of the quarter under
review are not directly comparable with those of the previous quarter. The
North West Operations are now under the jurisdiction of three liquidators
appointed by the High Court.
The North West Operations` net loss of R279 million for the six months ended 31
December 2004 was compounded by the collective negative impact of a series of
events during the quarter under review that prompted the Board of Directors`
decision to pursue liquidation:
On 19 January 2005, an underground fire at No. 10 Shaft was detected. Although
the fire was brought under control and sealed off, the resultant loss of
production was estimated at 18 800 tonnes.
On 21 January 2005, a seismic event of magnitude 2.8 occurred at No. 2 Shaft,
incurring substantial damage to working places and other infrastructure.
Operations were adversely affected for a period of six weeks and the estimated
production loss was 15 840 tonnes.
On 4 March, two fatalities occurred underground at No. 10 Shaft. Management
stopped production for four days in order to conduct a full risk assessment and
safety review. The estimated production loss was 2 000 tonnes. A subsequent
enquiry into the cause of the fatalities revealed deliberate non-compliance with
safety procedures by certain employees.
on 9 March, an earthquake of magnitude 5.3 stopped operations at all of the
North West Operations` eight shafts for two full shifts, resulting in a
production loss estimated at 3 000 tonnes. A decision to discontinue production
from No. 5 Shaft, which was damaged beyond repair, resulted in a further loss of
production, estimated at 4 050 tonnes.
The total estimated loss of production from these events was 43 690 tonnes.
Estimated gold production lost - based on an average yield of 5.2 g/t - was 227
kg, worth some R18.7 million at an average gold price received of R82 376 per
kilogram.
CASH OPERATING COSTS
Cash operating costs per ounce are non-US GAAP financial measures that should
not be considered by investors in isolation or as alternatives to production
costs. While the Gold Institute has provided definitions for the calculation of
cash operating costs, the calculation of cash costs per ounce may vary
significantly among gold mining companies, and these definitions by themselves
do not necessarily provide a basis for comparison with other gold mining
companies. However, we believe that cash operating costs per ounce are useful
indicators to investors and management of an individual mine`s performance and
of the performance of our operations as a whole as they provide:
- an indication of a mine`s profitability and efficiency;
- the trend in costs;
- a measure of a mine`s margin per ounce, by comparison of the
cash operating costs per ounce by mine to the price of gold; and
- a benchmark of performance to allow for comparison against other
mines and mining companies.
A reconciliation of cash operating costs to production costs for the three
months ended March 31, 2005; December 31, 2004; and nine months ended March 31,
2005, is presented below:
For the three months ended March 31, 2005
Blyvoor Tolukuma Porgera Continued
Operations
Cash operating
costs US$000 16 888 6 066 9 240 32 194
Adjusted for:
Revenue from
byproducts US$000 - (309) (2 667) (2 976)
Other non-operating
cash costs US$000 148 835 751 1 734
Production costs US$000 17 036 6 592 7 324 30 952
Cash operating
costs US$/oz 422 321 191 312
Associates Emperor Crown ERPM
Cash operating
costs US$/oz 471 428 462
Discontinued Group
Operations
Cash operating
costs US$000 32 562 64 756
Adjusted for:
Revenue from
byproducts US$000 - (2 976)
Other non-operating
cash costs US$000 683 2 417
Production costs US$000 33 245 64 197
Cash operating
costs US$/oz 684 418
For the three months ended December 31, 2004
Blyvoor Tolukuma Porgera Continued
Operations
Cash operating
costs US$000 17 127 6 128 8 711 31 966
Adjusted for:
Revenue from
byproducts US$000 (27) (325) (107) (459)
Other non-operating
cash costs US$000 150 578 844 1 572
Production costs US$000 17 250 6 381 9 448 33 079
Cash operating
costs US$/oz 455 319 160 305
Associates Emperor Crown ERPM
Cash operating
costs US$/oz 419 398 423
Discontinued Group
Operations
Cash operating
costs US$000 34 868 66 834
Adjusted for:
Revenue from
byproducts US$000 - (459)
Other non-operating
cash costs US$000 1 122 2 694
Production costs US$000 35 990 69 069
Cash operating
costs US$/oz 461 357
For the nine months ended March 31, 2005
Blyvoor Tolukuma Porgera Continued
Operations
Cash operating
costs US$000 57 091 18 683 26 346 102 120
Adjusted for:
Revenue from
byproducts US$000 (46) (866) (2 774) (3 686)
Other non-operating
cash costs US$000 481 1 988 2 277 4 746
Production costs US$000 57 526 19 805 25 849 103 180
Cash operating
costs US$/oz 474 325 174 328
Associates Emperor Crown ERPM
Cash operating
costs US$/oz 404 394 428
Discontinued Group
Operations
Cash operating
costs US$000 102 543 204 663
Adjusted for:
Revenue from
byproducts US$000 (15) (3 701)
Other non-operating
cash costs US$000 2 924 7 670
Production costs US$000 105 452 208 632
Cash operating
costs US$/oz 513 387
For the three months ended March 31, 2005
Blyvoor Tolukuma Porgera Continued
Operations
Cash operating
costs ZAR000 101 518 36 569 55 832 193 919
Adjusted for:
Revenue from
byproducts ZAR000 - (1 868) (16 409) (18 277)
Other non-operating
cash costs ZAR000 894 5 072 4 533 10 499
Production costs ZAR000 102 412 39 773 43 956 186 141
Cash operating
costs ZAR/kg 81 606 62 404 37 073 60 404
Associates Emperor Crown ERPM
Cash operating
costs ZAR/kg 91 111 82 723 89 408
Discontinued Group
Operations
Cash operating
costs ZAR000 196 185 390 104
Adjusted for:
Revenue from
byproducts ZAR000 - (18 277)
Other non-operating
cash costs ZAR000 4 072 14 571
Production costs ZAR000 200 257 386 398
Cash operating
costs ZAR/kg 132 557 81 002
For the three months ended December 31, 2004
Blyvoor Tolukuma Porgera Continued
Operations
Cash operating
costs ZAR000 102 574 36 998 52 736 192 308
Adjusted for:
Revenue from
byproducts ZAR000 (161) (1 983) (662) (2 806)
Other non-operating
cash costs ZAR000 900 3 497 5 128 9 525
Production costs ZAR000 103 313 38 512 57 202 199 027
Cash operating
costs ZAR/kg 87 520 61 973 31 149 58 774
Associates Emperor Crown ERPM
Cash operating
costs ZAR/kg 81 925 77 628 82 721
Discontinued Group
Operations
Cash operating
costs ZAR000 210 837 403 145
Adjusted for:
Revenue from
byproducts ZAR000 - (2 806)
Other non-operating
cash costs ZAR000 6 790 16 315
Production costs ZAR000 217 627 416 654
Cash operating
costs ZAR/kg 89 527 69 305
For the nine months ended March 31, 2005
Blyvoor Tolukuma Porgera Continued
Operations
Cash operating
costs ZAR000 351 377 114 986 162 147 628 510
Adjusted for:
Revenue from
byproducts ZAR000 (286) (5 331) (17 071) (22 688)
Other non-operating
cash costs ZAR000 2 962 12 238 14 015 29 215
Production costs ZAR000 354 053 121 893 159 091 635 037
Cash operating
costs ZAR/kg 93 701 64 274 34 521 64 828
Associates Emperor Crown ERPM
Cash operating
costs ZAR/kg 79 752 77 951 84 595
Discontinued Group
Operations
Cash operating
costs ZAR000 631 112 1 259 622
Adjusted for:
Revenue from
byproducts ZAR000 (95) (22 783)
Other non-operating
cash costs ZAR000 18 000 47 215
Production costs ZAR000 649 017 1 284 054
Cash operating
costs ZAR/kg 101 530 76 563
EXPLORATION - TOLUKUMA
ML 104 EXPLORATION
120/Zine North Extension
The Zine structure intersected in drill holes and continues down dip and along
strike. Grades, however, are consistently low with highest being 13.0 grams per
ton Au over 1.1 metres. Drilling has been put on hold.
Hole No From depth To depth True width Au(g/t) Ag(g/t)
(m) (m) (m)
120/ZN_001 94.3 106.5 5.7 6.1 4.0
120/ZN_002 127.7 139.1 7.9 3.2 1.0
120/ZN_003 102.4 103.7 1.1 13.0 7.0
120/ZN_004 100.8 108.9 5.9 1.5 12.0
120/ZN_005 121.2 125.7 2.6 0.4 3.0
Tinabar and Tolukuma Northern Extension
Drilling of the Tinabar and Tolukuma structures continued at their convergence
north of the current underground workings. The structure is up to 8 metres wide,
but grades are less than 1.0 grams per ton Au. The best grade was 1.9 metres at
2.2 grams per ton Au and included a 0.7 metres interval at 5.5 grams per ton Au.
Hole No From depth To depth True width Au(g/t) Ag(g/t)
(m) (m) (m)
TTEX 005 189.7 193.6 1.8 1.1 5.0
TTEX 006 325.2 335.6 10.0 <1.0
Gulbadi Southern Extension - Surface
Drilling was targeted at the southern extension of the Gulbadi vein with the
best intersection of 61.0 grams per ton Au and included 0.5 metres at 77.3 grams
per ton Au.
Hole No From depth To depth True width Au(g/t) Ag(g/t)
(m) (m) (m)
DG007 37.7 39.7 1.5 16.0 41.0
DG008 60.5 62.5 1.0 61.0 197.0
DG012 44.8 46.9 0.9 3.2 8.5
DG013 50.1 51.4 0.9 7.3
Underground LMA90 drilling
During the quarter a total of 3 218.4 metres were drilled from 15 holes. The
structures are very encouraging with specks of visible gold in the drill core.
Assay results with grades greater than 10 g/t of gold are presented below.
Hole No From depth True width Au(g/t) Includes
(m) (m)
TU035 180.4 1.8 60.1 0.9m @ 117.4 g/t Au
TU039 144.2 1.8 10.9 0.9m @ 19.6 g/t Au
TU040 173.6 1.9 52.3 0.6m @ 148.7 g/t Au
TU043 183.5 1.7 34.3 0.5m @ 115.0 g/t Au
TU047 202 2.1 18.3 0.9m @ 63.3 g/t Au
BOARD CHANGES
Mr Ian Murray has resumed the role of Chief Financial Officer to DRDGOLD with
effect from 8 March 2005, while continuing with his corporate development
duties.
Ms Andrea Townsend has resigned as the Group Company Secretary to DRDGOLD with
effect from 31 March 2005. DRDGOLD`s Assistant Legal Advisor, Mr Themba John
Gwebu, has been appointed the Group Company Secretary with effect from 1 April
2005. Mr Gwebu, a former Magistrate, holds a B.Juris degree from the University
of the North West, an LLB and a Masters Degree in Law from The University of
South Africa and a Diploma in Corporate Law from Rand Afrikaans University.
Mr Anton Lubbe has resigned as an alternate director from the board of directors
of DRDGOLD.
MARK WELLESLEY-WOOD DR PASEKA NCHOLO
Chief Executive Officer Non-Executive Chairman
21 April 2005
INVESTOR INFORMATION
DIRECTORS - (*British)(**Australian)(***American)
Executives:
MM Wellesley-Wood (Chief Executive Officer)*
IL Murray (Chief Financial Officer)
Non-executives:
MP Ncholo (Non-Executive Chairman)
J Turk ***
Independent non-executives:
D Blackmur**; GC Campbell*; RP Hume
Group Company Secretary:
T Gwebu
INVESTOR RELATIONS
For further information, contact Ilja Graulich at:
Tel: (+27-11) 381-7800, Fax: (+27-11) 482-4641,
e-mail: ilja.graulich@za.drdgold.com,
website: http://www.drdgold.com
45 Empire Road,
Parktown,
South Africa.
PO Box 390,
Maraisburg, 1700,
South Africa.
Date: 21/04/2005 07:59:40 AM
Produced by the JSE SENS Department
