| Wed 28 Feb 2007, 9:41 | | ERPM Quarter |
|
ERPM Quarter Quarter %
100% consolidated from Dec 06 Sep 06 Change
1 Dec 2005(Previously
40% attributable)
Ore milled
Underground t`000 64 76 (16)
Surface t`000 388 435 (11)
Total t`000 452 511 (12)
Yield
Underground g/t 7.06 7.49 (6)
Surface g/t 0.34 0.36 (6)
Total g/t 1.29 1.42 (9)
Gold produced
Underground oz 14 532 18 325 (21)
kg 452 570 (21)
Surface oz 4 276 5 016 (15)
kg 133 156 (15)
Total oz 18 808 23 341 (19)
kg 585 726 (19)
Cash operating costs
Underground US$/oz 627 510 (23)
ZAR/kg 148 044 117 481 (26)
ZAR/t 1 046 880 (19)
Surface US$/oz 704 599 (18)
ZAR/kg 166 173 137 949 (20)
ZAR/t 57 49 (16)
Total US$/oz 644 529 (22)
ZAR/kg 152 166 121 879 (25)
ZAR/t 197 173 (14)
Cash operating (loss)/
profit US$ m (0.7) 2.1 (133)
ZAR m (5.1) 15.1 (134)
Capital expenditure (net)US$ m 1.2 1.1 (9)
ZAR m 8.5 8.1 (5)
6 months to 6 months to 6 months to
31 Dec 06 30 Jun 06 31 Dec 05
Ore milled
Underground t`000 140 149 76
Surface t`000 823 1 011 587
Total t`000 963 1 160 663
Yield
Underground g/t 7.30 8.50 7.88
Surface g/t 0.35 0.39 0.41
Total g/t 1.36 1.43 1.26
Gold produced
Underground oz 32 857 40 735 19 264
kg 1 022 1 267 599
Surface oz 9 292 12 699 7 626
kg 289 395 238
Total oz 42 149 53 434 26 890
kg 1 311 1 662 837
Cash operating costs #
Underground US$/oz 562 475 447
ZAR/kg 130 998 96 548 94 025
ZAR/t 956 821 752
Surface US$/oz 647 550 456
ZAR/kg 150 938 111 737 95 857
ZAR/t 53 44 40
Total US$/oz 581 493 450
ZAR/kg 135 394 100 158 94 525
ZAR/t 184 144 126
Cash operating profit # US$ m 1.4 5.2 0.6
ZAR m 10.0 33.2 3.8
Cash operating profit attributable
to DRDGOLD US$ m 1.4 5.2 (0.6)
ZAR m 10.0 33.2 (3.9)
Capital expenditure (net) #
US$ m 2.3 1.4 0.7
ZAR m 16.6 9.2 4.5
Capital expenditure (net) attributable
to DRDGOLD US$ m 2.3 1.4 0.2
ZAR m 16.6 9.2 1.4
# Represents total operation
Total gold production for the quarter was 18 808 oz, 19% down on the previous
quarter, reflecting lower gold production from both underground and surface
sources.
Lower extraction rates due to faulting in the eastern portion of the
underground mining area led to a 16% decline in underground throughput to 64
000 t. This, together with the mining of higher volumes of lower grade
material from above 70 level, contributed to a 6% decline in underground yield
to 7.06 g/t. Consequently, underground gold production was 21% lower at 14 532
oz.
Installation of both a new surface compressor and mud-pumping infrastructure
continued during the quarter. The latter, scheduled for completion by the end
of the December 2007 quarter, is expected to yield some 6 kg of gold a month
from the treatment of 2 000 t of mud with an average grade of 3.0 g/t.
ERPM`s ambitious, three-phase plugging project, designed to protect the mine`s
underground operations from rising water levels in the Central Witwatersrand
Basin, has progressed according to schedule and is expected to be completed by
the end of the June 2007 quarter.
Surface gold production for the quarter was 15% lower at 4 276 oz. An 11%
decline in throughput to 388 000 t resulted from water shortages, pipe and
pump failures, cable theft and power outages. Work to change the Cason Dump
face shape to improve safety and environmental controls led to a 6% drop in
yield to 0.34 g/t.
A project has begun to recover and treat residual surface material from the
ERPM lease area. It is expected to treat between 10 000 and 15 000 t per
month at an average grade of 1.00 g/t until December 2007, generating revenue
while substantially reducing environmental obligations.
Total cash operating costs for the quarter increased by 22% to US$644/oz,
reflecting lower gold production. Underground cash costs rose by 23% to
US$627/oz and surface cash costs by 18% to US$704/oz.
CASH OPERATING COSTS RECONCILIATION
AUSTRALASIAN OPERATIONS (R000 unless otherwise stated)
Tolukuma Porgera Continued Discontinued
JV (20%)Operations Vatukoula
Total cash costs
Dec 06 Qtr 90 006 39 474 129 480 114 894
Sep 06 Qtr 72 686 84 853 157 539 95 607
6 months to Dec 06 162 692 124 327 287 019 210 501
Movement in gold in process
Dec 06 Qtr (4 017) 40 494 36 477 (12 002)
Sep 06 Qtr 11 241 3 968 15 209 (3 215)
6 months to Dec 06 7 224 44 462 51 686 (15 217)
Less: Exploration, production
taxes, rehabilitation and other
Dec 06 Qtr 5 847 7 836 13 683 620
Sep 06 Qtr 4 437 1 325 5 762 -
6 months to Dec 06 10 284 9 161 19 445 620
Less: Retrenchment costs
Dec 06 Qtr - - - 27 162
Sep 06 Qtr - - - (1 009)
6 months to Dec 06 - - - 26 153
Less: Corporate and general
administration costs
Dec 06 Qtr 7 288 3 070 10 358 (198)
Sep 06 Qtr 6 867 3 008 9 875 13 626
6 months to Dec 06 14 155 6 078 20 233 13 428
Cash operating costs
Dec 06 Qtr 72 854 69 062 141 916 75 308
Sep 06 Qtr 72 623 84 488 157 111 79 775
6 months to Dec 06 145 477 153 550 299 027 155 083
Gold produced (kg)
Dec 06 Qtr 373 736 1 109 284
Sep 06 Qtr 377 913 1 290 539
6 months to Dec 06 750 1 649 2 399 823
Cash operating costs (R/kg)
Dec 06 Qtr 195 319 93 834 127 968 265 169
Sep 06 Qtr 192 634 92 539 121 791 148 006
6 months to Dec 06 193 969 93 117 124 647 188 436
Cash operating costs (US$/oz)
Dec 06 Qtr 827 396 541 1 120
Sep 06 Qtr 835 401 529 642
6 months to Dec 06 831 399 535 807
SOUTH AFRICAN OPERATIONS(R000 unless otherwise stated)
Crown ERPM Blyvoor Total
Total cash costs
Dec 06 Qtr 93 703 94 829 153 520 342 052
Sep 06 Qtr 89 650 94 418 162 201 346 269
6 months to Dec 06 183 353 189 247 315 721 688 321
Movement in gold in process
Dec 06 Qtr 33 187 419 639
Sep 06 Qtr 241 (38) 587 790
6 months to Dec 06 274 149 1 006 1 429
Less: Exploration, production
taxes, rehabilitation and other
Dec 06 Qtr 2 943 2 064 1 443 6 450
Sep 06 Qtr 2 643 1 960 1 374 5 977
6 months to Dec 06 5 586 4 024 2 817 12 427
Less: Retrenchment costs
Dec 06 Qtr - - - -
Sep 06 Qtr - - - -
6 months to Dec 06 - - - -
Less: Corporate and general
administration costs
Dec 06 Qtr 3 878 3 935 4 170 11 983
Sep 06 Qtr 3 828 3 936 4 270 12 034
6 months to Dec 06 7 706 7 871 8 440 24 017
Cash operating costs
Dec 06 Qtr 86 915 89 017 148 326 324 258
Sep 06 Qtr 83 420 88 484 157 144 329 048
6 months to Dec 06 170 335 177 501 305 470 653 306
Gold produced (kg)
Dec 06 Qtr 922 585 1 209 2 716
Sep 06 Qtr 856 726 1 259 2 841
6 months to Dec 06 1 778 1 311 2 468 5 557
Cash operating costs (R/kg)
Dec 06 Qtr 94 268 152 166 122 685 119 388
Sep 06 Qtr 97 453 121 879 124 817 115 821
6 months to Dec 06 95 801 135 394 123 772 117 565
Cash operating costs (US$/oz)
Dec 06 Qtr 399 644 519 505
Sep 06 Qtr 423 529 542 503
6 months to Dec 06 411 581 531 504
EXPLORATION AND DEVELOPMENT
FIJI
Vatukoula
Limited underground exploration was undertaken in the Philip Shaft section
prior to the cessation of mining.
A commercial and technical review of mine site and near mine exploration was
completed. This involved data compilation, integration and interpretation and
was aimed at identifying new near mine exploration targets. A number of target
areas have been defined to be of interest.
Fiji Regional
No regional exploration work was carried out elsewhere in Fiji. Historical
data on the Tuvatu Project was reviewed in preparation for additional work in
this area. Regional programs for all other surface permits were reviewed.
PAPUA NEW GUINEA
Tolukuma
Exploration activity at Tolukuma continued to concentrate on the Zine and
Fundoot structures. Minor drilling was undertaken on the Triple M structure to
the east of Zine. Surface trenching aimed at generating drill targets
continued in the Degot/Fundoot area and in areas further south of the lease.
An exploration review workshop conducted during the month of November
identified multiple exploration targets within the Tolukuma corridor. From
late November to December exploration activity was scaled down (as a result of
the SAG mill breakdown) and is yet to return to full capacity.
In the next (January - March 2007) quarter exploration will continue to be
focused on delineation and extensional drilling of the Zine and Fundoot South
structures. Intensive drilling is planned to fully test the Zine structure as
soon as access to appropriate underground locations become available. Surface
trenching and mapping will continue to the southern part of the lease into the
Aivelolop and Kagam structures. The Aivelolop structure will be tested with
several drill holes both from the surface and underground.
Zine Exploration Drilling & Underground Development
The Zine structure continued to be tested by drilling and underground
development in an effort to define the extents of the mineralisation. Within
the Zine Mid section underground development has been carried out from 1525 up
to 1565 and down to 1505 levels. On 1505 level development face grades of up
to 1.8m @ 190.7 g/t Au (uncut) have been obtained from the central section of
the Zine Mid pod. Drilling to date has indicated mineralisation within the
Zine Mid pod to extend at least 160m below current developments at 1505 level.
Initial surface drilling results of the Zine North section have not been
encouraging but the presence of the structure has been confirmed and the lower
sections (below 1495 level) are yet to be tested. Further testing is yet to be
carried out in the Zine South and Zine Far South areas.
Drilling Results from October - December 2006*
Hole No. Intersection Comments RL (m) Core
Recovery %
TU084 2.08m @ 2.25 g/t Au Zine Mid North 1322 100
and 4.4 g/t Ag
TU085 No significant Zine Mid South 1405 100
mineralisation
ZN087 0.62m @ 6.38 g/t Au Zine North 1556 96
and 24.6 g/t Ag
ZN088 2.0m @ 0.86 g/t Au Zine North 1510 100
and 13.5 g/t Ag
ZN089 0.40 @ 6.23 g/t Au Zine North 1495 70
and 24.9 g/t Ag
* Assay results are uncut; Intersection widths calculated based on angle to
core axis
Fundoot Exploration
The upper zones of the Fundoot structure continued to be tested from the
surface with mixed results. A mechanical trenching exercise using an excavator
to expose the top of the vein (in areas of overburden cover) is planned for a
150m wide zone.
Drilling Results from October - December 2006*
Hole No. Intersection Comments RL (m) Core
Recovery %
IV026 0.40m @ 34.08 g/t Au Fundoot 1600 100
and 5.21 g/t Ag
TU027 0.75m @ 5.31 g/t Au Fundoot 1600 100
and 25.0 g/t Ag
ZN028 No significant Fundoot 1632 100
mineralisation
ZN029 0.27m @ 39.73 g/t Au Fundoot 1584 100
and 121.0 g/t Ag
ZN031 0.30m @ 21.21 g/t Au HW Splay 1560 100
and 43.4 g/t Ag
ZN033 0.83 @ 10.39 g/t Au Fundoot 1585 100
and 161.5 g/t Ag
ZN034 0.77 @ 2.93 g/t Au Fundoot 1529 100
and 21.2 g/t Ag
ZN035 0.95@ 0.35g/t Au Fundoot 1643 86
And 24.1 g/t Ag
*Assay results are uncut; intersection widths calculation based on angle to
drill core axis
Regional Program
The company maintains eleven Exploration Licenses. A major technical review
of all exploration tenements completed earlier this year highlighted multiple
prospects with several areas requiring advanced stage exploration and
drilling. Field work in EL1271 and 1366 has commenced and planning for work in
ELs 894 and 683 is underway. Weather problems difficulty in employing
additional geologists and field personnel and the unavailability of
helicopters greatly restricted the scope of work. Further data interpretation
is in progress.
An assessment of the porphyry associated copper and gold potential within
Emperor`s regional ELs is underway.
Field work was completed in the Ipi Creek EL1352 during the previous quarter.
Compilation of field results has shown that porphyry copper type alteration
and mineralisation occurs in the area centered on a small intrusive stock. A
collapsed diatreme breccia has also been interpreted to occur in the Ipi area
and further work is aimed at delineating the diatreme and to further map and
sample the area.
Results of soil sampling at Belavista in EL1284 during the previous quarter
has shown a 1 km x 1 km area to be anomalous in Au with co-incident As, Hg and
Pb anomalies. This is interpreted to be due to mineralisation within the
regional Goilala Fault structures that occur in the area. Samples taken across
discrete structures within the Goilala Fault zone returned assays of 0.46 ppm
Au, 5.5 ppm Ag, 0.14% Cu and 0.1% As, and 6.32 ppm Au, 20 ppm Ag, 0.12% Cu and
0.7 % As. Further work is planned for the area to test strike extensions of
the two structures and to expose additional structures that may be responsible
for the soil anomaly observed in the area.
Porgera Joint Venture
The Porgera Deeps drilling program continued with 2 holes being drilled, one a
re-drill that was again abandoned due to difficult drilling conditions.
Drilling at Tupagai (located immediately north of Porgera) is expected to
historical mapping data. Additional targets have been identified based on
coincident geochemical and geophysical anomalies in favourable litho-
structural positions within the Porgera Transfer Zone.
SOUTH AFRICA
ERPM
ERPM Extension 1 (Sallies)
The second and third exploration boreholes have been completed and surveyed to
assist with geological interpretation. Assays and check assays have been
conducted.
Borehole assay results:
BH No. 2 Channel Value 11.11 g/t / 64 cm (715 cmgt)
BH No. 3 Channel Value 2.45 g/t / 227 cm (556 cmgt)
A fourth exploration borehole is being drilled to determine extent of
paleohigh and is currently at 32.3 m. An additional machine has begun drilling
within the ERPM lease area.
On completion of the fourth borehole, drilling will be concentrated within the
mine lease area to firm up on geological structures.
ERPM Extension No. 2
The prospecting right for ERPM Extension 2 was granted. The area covers 5
500.231 hectares to the east of the ERPM Extension 1 (Sallies) prospecting
area, which incorporates the southern sections of the old Van Dyk mining lease
area and a small portion of Sallies. The area has a potential exploration
target of some 7-11 million ounces, which could result in the development of a
deep-level mine with a life of mine in excess of 15 years.
BLYVOORUITZICHT
Savuka Exploration - Alpha Dyke
The current depth of the exploration borehole, drilling of which was suspended
during the quarter due to the Blyvoor No. 5 Shaft underground fire, is 81.4 m.
Tenders for the diamond drilling contract closed on 23 January 2007. On
awarding of the contract, additional drilling will be undertaken to firm up on
geology and valuation down dip of current mining operations.
CROWN
Elsburg exploration drilling results:
4L50 dump: 17 holes were drilled on a 200 x 200 m grid. A resource of 18.6
million tons at 0.251 g/t has been determined.
4L 48 dump: 24 holes were drilled on a 200 x 200 m grid. A resource of 80.8
million tons at 0.351 g/t has been determined.
4L 47 dump: 32 holes were drilled on a 200 x 200 m grid. A provisional
valuation of 37.8 million tons at 0.261 g/t has been determined and while test
work remains to be completed, no significant changes are expected.
3/L/10 and Angelo: drilling of the ERGO portions has been completed and assay
results are awaited.
WPU Slime Roodepoort: drilling of slimes for toll treatment has been completed
and results are awaited.
ARGONAUT
A desktop survey has been conducted, using historical geophysical information,
to confirm that the proposed borehole is sited favourably in terms of
structure and grade.
INVESTOR RELATIONS
DIRECTORS - (*British)(**Australian)(***American)
Executive:
JWC Sayers (Chief Executive Officer)
Non-executives:
J Turk ***
Independent non-executives:
DJM Blackmur** (Senior Non-Executive Director); GC Campbell*(Non-Executive
Chairman); RP Hume
Alternate:
JH Dissel
Group Company Secretary:
TJ Gwebu
INVESTOR RELATIONS
For further information, contact Ilja Graulich at:
Tel: (+27-11) 219-8700, Fax: (+27-11) 476-2637,
e-mail: ilja.graulich@za.drdgold.com,
website: http://www.drdgold.com
Ebsco House 4, 299 Pendoring Avenue,
Blackheath, Randburg, South Africa.
PO Box 390,
Maraisburg, 1700,
South Africa.
Johannesburg
28 February 2007
Date: 28/02/2007 08:00:01 Produced by the JSE SENS Department.
