Annual Report 2010 Annual Report 2010

Free State operations

Operations Map

Geology

Harmony’s Free State operations are located on the south-western corner of the Witwatersrand Basin, between the towns of Allanridge, Welkom, Theunissen and Virginia. The basin, situated on the Kaapvaal Craton, has been filled by a 6-kilometre thick succession of sedimentary rocks, which extends laterally for hundreds of kilometres.

The Free State goldfield is divided into two sections, cut by the north-south striking De Bron Fault. This major structure has a vertical displacement of about 1 500 metres in the region of Bambanani, as well as a lateral shift of 4 kilometres. This lateral shift can allow a reconstruction of the orebodies of Unisel to the west of the De Bron Fault and Merriespruit to the east. A number of other major faults (Stuirmanspan, Dagbreek, Arrarat and Eureka) lie parallel to the De Bron Fault.

To the west of the De Bron fault, the mines and shafts currently in operation are Target, Tshepong, Phakisa, Nyala, Unisel, Bambanani and Joel. Dips are mostly towards the east, averaging 30 degrees but become steeper as they approach the De Bron Fault. To the east of the fault lie Merriespruit 1 and Masimong. These mostly dip towards the west at 20 degrees, although Masimong is structurally complex and dips of up to 40 degrees have been measured. Between these two blocks lies the uplifted horst block of West Rand Group sediments with no reef preserved.

The western margin area is bound by synclines and reverse thrust faults and is structurally complex. Towards the south and east, reefs sub-crop against overlying strata, eventually cutting out against the Karoo to the east of the lease area.

Most of the mineral resource tends to be concentrated in reef bands located on one or two distinct unconformities. A smaller portion of the mineral resource is located on other unconformities. Mining that has taken place is mostly deep-level underground mining, exploiting the narrow, generally shallow dipping tabular reefs.

The Basal Reef is the most common reef horizon and is mined at all shafts except Target and Joel. It varies from a single pebble lag to channels of more than 2 metres thick. It is commonly overlain by shale, which thickens northwards. Tshepong has resorted to undercutting of its mining panels to reduce the effect of shale dilution.

The second major reef is the Leader Reef, located 15-20 metres above the Basal Reef. This is mined mostly at shafts to the south – Unisel and Merriespruit 1. Further north, it becomes poorly developed with erratic grades. The reef consists of multiple conglomerate units, separated by thin quartzitic zones, often up to 4 metres thick. A selected mining cut on the most economic horizon is often undertaken.

The B Reef is a highly channelised orebody located 140 metres stratigraphically above the Basal Reef. Because of its erratic nature, it is only mined at Masimong and Tshepong. Within the channels, grades are excellent, but this reduces to nothing outside of the channels. Consequently, both shafts have undertaken extensive exploration to locate these pay channels.

The A Reef is also a highly channelised reef, located some 40 metres above the B Reef. This is currently only mined at Harmony 2 and Brand, although an extensive channel lies along the western margin from Nyala to Lorraine. It consists of multiple conglomerate bands of up to 4 metres thick and a selected mining cut is usually required to optimise the orebody.

Joel Mine, located 30 kilometres south of Welkom, is the only Harmony Free State operation to mine the Beatrix Reef. This varies from a single-pebble lag to a multiple conglomerate, often showing mixing of the reef with some of the overlying lower grade VS5 (mixed pebble conglomerate) material. None of the other reefs are present this far south, having sub-cropped against the Beatrix Reef.

The Target operations are located at the northern extent of the Free State goldfields, some 20 kilometres north of Welkom. The reefs currently exploited are the Elsburg-Dreyerskuil conglomerates, which form a wedge-shaped stacked package, comprising 35 separate reef horizons, often separated by quartzite beds. The Elsburg Reefs are truncated by an unconformity surface at the base of the overlying Dreyerskuil Member. Below the sub-crop, the Elsburg dips steeply to the east, with dips becoming progressively shallower down dip. Close to the sub-outcrop, the thickness of the intervening quartzites reduces, resulting in the Elsburg Reefs coalescing to form composite reef packages that are exploited by massive mining techniques at the Target mine. The Dreyerskuil also consists of stacked reefs dipping shallowly to the east. These reefs tend to be less numerous, but more laterally extensive than the underlying Elsburg Reefs.

Gold - Mineral resources

 MeasuredIndicatedInferredTotal
OperationsTonnes
(Mt)
g/tGold
(000
kg)
Gold
oz
(000)
Tonnes
(Mt)
g/tGold
(000
kg)
Gold
oz
(000)
Tonnes
(Mt)
g/tGold
(000
kg)
Gold
oz
(000)
Tonnes
(Mt)
g/tGold
(000
kg)
Gold
oz
(000)
Underground
Bambanani                
Bambanani11.711.471344 3183.29.75311 0091.010.671135615.911.071765 683
Steyn 23.211.49371 1900.712.0482720.910.0192844.811.30541 746
Total14.911.47 1715 5083.910.16 391 2811.910.37 2064020.711.12 2307 429
Joel5.06.8534 1 0965.57.2740 1 27612.56.0676 2 439 23.06.521494 811
Masimong 511.17.68 852 7326.07.09 431 37179.75.89 46915 07396.86.17 59719 176
Phakisa4.67.0633 1 05225.710.90279 8 98660.76.69407 13 07491.07.90719 23 112
Target                
Target 15.410.11551 77014.47.371063 4115.16.32321 03824.97.751936 219
Target 37.19.83702 24010.18.67882 8275.56.85381 21022.78.591966 277
Total12.59.95 1254 01024.57.91 1946 23810.66.59 702 24847.68.15 38912 496
Tshepong12.811.00 1414 52712.510.90 1364 37111.39.55 1083 47336.610.52 38512 371
Virginia                
Merriespruit 18.15.47441 4173.34.211444435.43.881374 41046.84.181956 271
Unisel9.85.82571 8289.45.29501 60417.35.39933 00136.55.482006 433
Total17.95.66 1013 24512.75.01 642 04852.74.37 2307 41183.34.75 39512 704
Total Free State               
Underground78.88.75 69022 17090.88.76 79525 571229.46.01 1 38044 358399.07.18 2 86492 099
                 
Surface
Free State Surface               
Phoenix92.40.30288991.20.220993.60.3028908
St Helena288.50.25722 319288.50.25722 319
Waste rock dumps9.00.56516222.00.491134531.00.5116507
Slimes dams582.00.221294 135183.60.21381 220768.60.221675 355
Total Free State Surface 971.9 0.242347 515206.8 0.24491 5741 178.7 0.242839 089
Grand total78.8 69022 1701 062.7 1 02933 086436.2 1 42945 932 1 577.73 147 101 188

Uranium - Mineral resources

 MeasuredIndicatedInferredTotal
OperationsTonnes
(Mt)
kg/tU3O8
(Mkg)
U3O8
(Mlb)
Tonnes
(Mt)
kg/tU3O8
(Mkg)
U3O8
(Mlb)
Tonnes
(Mt)
kg/tU3O8
(Mkg)
U3O8
(Mlb)
Tonnes
(Mt)
kg/tU3O8
(Mkg)
U3O8
(Mlb)
Underground
Masimong 59.70.283610.70.283776.70.24184097.10.252453
Phakisa0.50.160022.20.2041012.70.202535.40.20615
Tshepong0.30.21003.50.201233.30.1651237.10.16614
Total Free State                
Underground10.50.283636.40.22819122.70.212557169.60.223682
Surface0.00.000159.90.11173813.50.34510173.40.122248
Total Free State                
Surface0.00.000159.90.11173813.50.34510173.40.122248
Grand total10.50.28 36196.30.13 2556136.20.22 30673430.17 58130

Modifying factors

OperationsMCF
(%)
SW
(cm)
MW
(cm)
PRF
(%)
Bambanani8218720696
Steyn 28114217396
Joel8815017695
Masimong 56813515696
Phakisa8210612796
Target 37610011996
Tshepong6610513096
Merriespruit 16817321494
Unisel7618620395
 
OperationsMCF
(%)
PRF
(%)
Target 110096
Free State (Phoenix)10055
Free State (St Helena)10055
Free State (Other)10055
  • MCF = Mine call factor
  • MW = Milling width
  • SW = Stoping width
  • PRF = Plant recovery factor

Gold - Mineral reserves

 ProvedProbableTotal
OperationsTonnes
(Mt)
(g/t)Gold
(000 kg)
Gold
(000 oz)
Tonnes
(Mt)
(g/t)Gold
(000 kg)
Gold
(000 oz)
Tonnes
(Mt)
(g/t)Gold
(000 kg)
Gold
(000 oz)
Underground
Bambanani            
Bambanani3.910.41401 3013.910.41401 301
Steyn 20.57.2631050.16.951250.67.204130
Total4.410.08431 4060.16.951254.510.00441 431
Joel1.26.2572401.55.6182642.75.9015504
Masimong 55.45.11288941.95.09103067.35.10381 200
Phakisa0.64.6539419.48.131585 06520.08.021615 159
Target            
Target 14.05.50227027.64.49341 10411.64.84561 806
Target 31.07.5982523.66.33237434.66.6131995
Total5.05.933095411.25.08571 84716.25.34872 801
Tshepong13.15.33702 2479.45.36511 62622.55.341213 873
Virginia            
Merriespruit 10.44.012580.13.55090.53.94267
Unisel2.34.71113491.44.6772143.74.7018563
Total2.74.60134071.54.6272234.24.6020630
Total Free State Underground 32.45.981946 242 456.462929 356 77.46.2648615 598
Surface
Free State Surface           
Phoenix92.40.302889992.40.3028899
St Helena288.50.25722 319288.50.25722 319
Waste rock dumps5.10.613995.10.61399
Slimes dams 540.50.221213 895540.50.221213 895
Total Free State            
Surface926.50.242247 212926.50.242247 212
Grand total32.4 1946 242971.5 51616 5681 003.90 71022 810

Bambanani: Grade tonnage curve (excl Steyn 2)

(measured and indicated resources)
Bambanani: Grade tonnage curve (excl Steyn 2)
 

Joel: Grade tonnage curve

(measured and indicated resources)
Joel: Grade tonnage curve

Masimong: Grade tonnage curve

(measured and indicated resources)
Masimong: Grade tonnage curve
 

Phakisa: Grade tonnage curve

(measured and indicated resources)
Phakisa: Grade tonnage curve

Target: Grade tonnage curve (excl Target 3)

(measured and indicated resources)
Target: Grade tonnage curve (excl Target 3)
 

Tshepong: Grade tonnage curve

(measured and indicated resources)
Tshepong: Grade tonnage curve

Merriespruit: Grade tonnage curve

(measured and indicated resources)
Merriespruit: Grade tonnage curve
 

Unisel: Grade tonnage curve

(measured and indicated resources)
Unisel: Grade tonnage curve

Bambanani – Basal reef

Bambanani – Basal reef

Joel mine – Beatrix reef

Joel mine – Beatrix reef

Masimong mine – Basal reef

Masimong mine – Basal reef

Masimong mine – B reef

Masimong mine – B reef

Phakisa mine, Tshepong mine – Basal reef

Phakisa mine, Tshepong mine – Basal reef

Target mine – Elsburg and Dreyerskuil reefs

Target mine – Elsburg and Dreyerskuil reefs

Target mine

Target mine

Unisel – Basal reef

Unisel – Basal reef

Unisel – Leader reef

Unisel – Leader reef

HARMONY ANNUAL REPORT 2010