Furthermore Harmony is pleased to announce that the Wafi-Golpu concept study was completed during August 2010.
The concept study was building on previous studies and was updated with new information and enhanced
development approaches during the study. The concept study demonstrates that a very robust business case exists
for the projectand therefore both Harmony and Newcrest have approved that the project progresses to the rre-
feasibility study phase.
The main value drivers, for which several options will be considered during the pre-feasibility study, are:
•
Further increasing the tonnage and grade of the resource;
•
Optimise the production rates from the panel caves to suit the footprint and draw heights;
•
Optimise the gold recovery of the refractory Wafi ore bodies; and
•
Positioning of infrastructure, waste dumps and tailings storage facilities in such areas to minimize the impact
on the environment and to optimise the costs
The joint venture study team is targeting completion of the pre-feasibility study towards the end of 2011 or early 2012.
The Pre-Feasibility Study costs, which includes the construction of a new road, the establishment of a camp and
associated infrastructure and the commencement of underground exploration access (decline shaft) is estimated to be
US$150 million 2. Approval for the construction of the access road and establishment of a camp and associated
infrastructure has been obtained from the local landowners and construction of the new road will commence early
during 2011.
Harmony CEO Graham Briggs says, “We can hardly contain our excitement each time new drilling results are
received. The latest intercepts, together with the very positive outcome of the concept study emphasisethe potential
for the joint venture to establish another high quality, world-class operation in Papua New Guinea.”
Ends.
Note: The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Ore
Reserves. The estimates of Ore Reserves and Mineral Resources in this statement were prepared in accordance with the
standards set out in the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves – The
JORC Code" (December 2004) as published by the Joint Ore Reserve Committee of the Australian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC) The JORC Code is the accepted
reporting standard for the Australian Stock Exchange (ASX).
The Exploration Results, Mineral Resources and Ore Reserves in the summary tables and are based on information compiled by
Michael Smith who is corporate member of the Australian Institute of Mining and Metallurgy and who has relevant experience of a
'competent person' as defined by the code for reporting of Mineral Resources and Ore Reserves in relation to the mineralisation
being reported on and consents to the inclusion in the report of the matters based on his information in the form and context in
which it appears. Michael Smith is a full-time employee of Harmony PNG Service Pty Ltd
1
Refer to
www.harmony.co.za
for details on Wafi Resources and the Golpu exploration target guidance.
2
100% share.