Statement of Mineral Resources and Ore Reserves
Johannesburg. Monday, 4 August 2008. Harmony Gold Mining Company Limited (Harmony) is pleased to publish its Statement of Mineral Resources and Ore Reserves which has been produced in accordance with the South African Code for the Reporting of Mineral Resources and Mineral Reserves (SAMREC Code) and the Australian Code (JORC Code) as at 30 June 2008.
Mineral Resources
Harmony announces gold Mineral Resources of 253.6 million ounces. The Mineral Resources shows a year-on-year negative variance of 28 million ounces mainly as a result of corporate activity and classifying operations as discontinued. The discontinued operations amounts to 32,6 million ounces.
Ore Reserves
The declared Ore Reserves amounts to 50.5 million ounces with a year on year negative variance of 3.1 million ounces. Corporate activity and discontinued operations contributes to a significant portion of this variance of which the discontinued operations totals 1.7 million ounces. Table 1 shows more detail of the year on year reserve variance.
| Gold (tonnes) | Gold (Moz) | |
|---|---|---|
| Balance at June 2007 | 1 666 | 53.6 |
| Reductions | ||
| Mined during FY2008 | (62) | (2.0) |
| Corporate activity and discontinued operations | (93) | (3.0) |
| Restructuring | (28) | (0.9) |
| Other adjustments | (53) | (1.7) |
| Total | 1430 | 46.0 |
| Additions | ||
| Freestate Surface Sources | 140 | 4.5 |
| Balance at June 2008 | 1 570 | 50.5 |
As indicated in the table above, Harmony’s Ore Reserves as at 30 June 2008 reflects a year-on-year depletion of 2.0 million ounces. Corporate activity, discontinued operations, restructuring of certain shafts and geological related changes accounts for a further decrease of 5.6 million ounces of reserves. On the positive side there is a net addition of 4.5 million ounces of reserves from surface stockpiles.
A gold price of US$750/oz was used for the conversion of Mineral Resources to Ore Reserves at our South African and Papua New Guinea operations. An exchange rate of USD/ZAR 7.46 for South Africa and AUD/USD 0.80 for Australia has been used, resulting in a gold price of R180 000/kg and A$850/oz respectively.
| Tonnes (Mt) | g/t | Gold (‘000 kg) | Gold (‘000 oz) | |
|---|---|---|---|---|
| Underground and open pits | ||||
| Proven reserves | 49 | 4.83 | 238 | 7,652 |
| Probable reserves | 177 | 4.25 | 751 | 24,138 |
| Total | 226 | 4.37 | 989 | 31,790 |
| Surface Stockpiles | ||||
| Proven reserves | 729 | 0.24 | 176 | 5,675 |
| Probable reserves | 70 | 0.35 | 25 | 795 |
| Total | 799 | 0.25 | 201 | 6,470 |
| Below infrastructure | ||||
| Proven reserves | – | – | – | – |
| Probable reserves | 52 | 7.31 | 380 | 12,212 |
| Total | 52 | 7.31 | 380 | 12,212 |
In addition to the gold reserves, Harmony also reports its equity reserves (69.9%) for silver, copper and molybdenum from its PNG operations (Table 3). Metal prices are assumed at US$12/oz for silver, US$2.40/lb for copper and US$20/lb for molybdenum.
| SILVER | Tonnes (Mt) | g/t | Silver (‘000 kg) | Silver(‘000 oz) |
|---|---|---|---|---|
| Proven reserves | 3 | 41.04 | 135 | 4,358 |
| Probable reserves | 22 | 36.94 | 819 | 26,354 |
| Total | 25 | 37.47 | 954 | 30,712 |
| COPPER | Tonnes (Mt) | % | Cu (‘000 t) | Cu (M lbs) |
| Proven reserves | – | – | – | – |
| Probable reserves | 50 | 1.13 | 560 | 1,234 |
| Total | 50 | 1.13 | 560 | 1,234 |
| MOLYBDENUM | Tonnes (Mt) | ppm | Mo (‘000 t) | Mo (M lbs) |
| Proven reserves | – | – | – | – |
| Probable reserves | 50 | 121 | 6 | 13 |
| Total | 50 | 121 | 6 | 13 |
This Statement forms part of the company’s Mineral Resources and Ore Reserve declaration which will be published in our FY 2008 annual report towards the end of September 2008.
The competent persons responsible for the overall preparation and reporting of the company’s mineral resources and ore reserves are Jaco Boshoff (South Africa) and Greg Job (Papua New Guinea).
Graham Briggs
Chief Executive Officer
+27 11 411 2012
+27(0)83 265 0274
Amelia Soares
General Manager, Investor Relations
+27 11 411 2134
+27 (0)82 654 9241
Jaco Boshoff
Executive, Ore Reserve & Resources
+27(0)83 395 3810