As of 30 June 2009, Harmony reported ore reserves of 48.2 million ounces and mineral resources of 215.7 million ounces. The Measured and Indicated mineral resources are inclusive of those resources modified to produce the ore Reserves. Ore reserves are reported as mill delivered tonnes at the grade delivered to the mill. Of the companys 48.2 million ounces of ore reserves, 11.8 million ounces are classified as being below infrastructure, i.e. capital expenditure for the development of these has yet to be approved.
We use certain terms in this report such as measured, indicated and inferred resources, which the SEC guidelines strictly prohibit US-registered companies from including in their filings with the SEC. US investors are urged to consider closely the disclosure in our Form 20-F (PDF - 4.53MB).
A gold price of US$750/oz was used for the conversion of mineral resources to ore reserves at our South African and Papua New Guinea operations. An exchange rate of R9.33/U$ for South Africa and A$/US$0.75 for Papua New Guinea has been used, resulting in a gold price of R225 000/kg and A$1000/oz respectively.
The Harmony mineral resources and ore reserves have been comprehensively audited by a team of internal competent persons that operates independently of the operating units. The internal audit team verifies compliance with the Harmony Code of Resource blocking, valuation, classification, cut-off calculations, development of life-of-mine plans and SAMREC sheets which support Harmonys Annual Mineral Resource and Ore Reserve statement. This audit process is specifically designed to comply with the requirements for internationally recognised procedures and standards such as:
In addition to the internal audits, Harmony made use of SRK Consulting to review the gold mineral resources and reserves at all its South African operations.
Harmony employs an ore reserve manager at each of its operations who takes responsibility for the reporting of the mineral resources and ore reserves of the mines for which they are responsible. The competent person responsible for the overall preparation and reporting of the companys mineral resources and ore reserves in South Africa is Jaco Boshoff (BSc (Hons), MSc (Geology), MBA. Pri.Sci.Nat), who has 14 years relevant experience, and is registered with the South African Council for Natural Scientific Professions (SACNASP).
The competent person responsible for Papua New Guinea and Australia is Greg Job (BSc, MSc (Min Econ), MAusIMM). Greg has 21 years experience in mine and resource geology, and is a member of the Australian Institute of Mining and Metallurgy.
Jaco Boshoff
Greg Job
Year-on-year, the mineral resources had a negative variance of 40.6 million ounces. This was mainly as a result of the equity adjustment for Papua New Guinea (69.9% down to 50% attributable to Harmony) as well as stating the mineral resources for the South African underground operations at a gold price of R350 000/kg and not at a resource cut-off of 250cmg/t.
There was a year-on-year negative variance of 2.3 million ounces with respect to the ore reserves. As indicated in the table below, Harmony’s ore reserves as at 30 June 2009 reflected a year-on-year depletion of 1.6 million ounces. The equity adjustment at Papua New Guinea from 69.9% to 50% attributable to Harmony resulted in a further decrease of 0.9 million ounces. The net effect of positive changes at the South African operations accounted for an addition of 0.2 million ounces.
Gold (tonnes) | Gold (Moz) | |
---|---|---|
Balance as at June 2008 | 1 570 | 50.5 |
Reductions | ||
Mined during FY2009 | (50) | (1.6) |
Equity adjustment (PNG) | (28) | (0.9) |
Geology and scope changes | (78) | (2.5) |
Additions | ||
Surface sources | 34 | 1.1 |
Other adjustments | 50 | 1.6 |
Balance as at June 2009 | 1 499 | 48.2 |
The graph above illustrates ore reserve sensitivities, inclusive of projects below infrastructure and surface sources, to a changing gold price below and above R225 000/kg. Note that these sensitivities are approximations only and based on the orebodies in the current life of mine plans and pre-feasibility studies. Accordingly, at different gold prices, alternative mining strategies may be pursued, including the addition of more secondary reef horizons into reserves.
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
854.6 | 6.18 | 5 278 | 169 686 |
Reported as in situ mineralisation estimates
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
131.3 | 6.21 | 814 | 26 169 |
Reported as mineable production estimates
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
565.8 | 5.25 | 2 972 | 95 557 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
156.8 | 8.18 | 1 283 | 41 242 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
82.8 | 6.46 | 534 | 17 183 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
132.0 | 7.75 | 1 023 | 32 887 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
48.5 | 5.78 | 280 | 8 986 |
Consideration of mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors).
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
104.5 | 7.41 | 774 | 24 894 |
Reported as in situ mineralisation estimates
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
49.4 | 7.45 | 369 | 11 849 |
Reported as mineable production estimates
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
38.7 | 4.19 | 163 | 5 228 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
65.8 | 9.30 | 611 | 19 666 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
49.4 | 7.45 | 369 | 11 849 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
– | – | – | – |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
– | – | – | – |
Consideration of mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors).
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
1 313.6 | 0.32 | 415 | 13 357 |
Reported as in situ mineralisation estimates
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
968.4 | 0.26 | 250 | 8 036 |
Reported as mineable production estimates
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
228.9 | 0.32 | 73 | 2 359 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
208.0 | 0.52 | 109 | 3 502 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
110.7 | 0.32 | 36 | 1 152 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
876.7 | 0.27 | 233 | 7 496 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
857.7 | 0.25 | 214 | 6 884 |
Consideration of mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors).
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
198.5 | 1.22 | 243 | 7 790 |
Reported as in situ mineralisation estimates
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
56.4 | 1.16 | 65 | 2 096 |
Reported as mineable production estimates
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
92.8 | 1.00 | 93 | 2 979 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
102.7 | 1.40 | 144 | 4 604 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
54.9 | 1.12 | 62 | 1 984 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
3.0 | 2.16 | 6 | 207 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
1.5 | 2.32 | 3 | 112 |
Consideration of mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors).
* Represents Harmony’s equity portion of 50%
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
2 471.2 | 2.72 | 6 710 | 215 727 |
Reported as in situ mineralisation estimates
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
1 205.5 | 1.24 | 1 498 | 48 150 |
Reported as mineable production estimates
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
926.2 | 3.56 | 3 301 | 106 123 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
533.3 | 4.03 | 2 147 | 69 014 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
297.8 | 3.36 | 1 001 | 32 168 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
1 011.7 | 1.25 | 1 262 | 40 590 |
Tonnes (Mt) | Grade g/t | Gold (000kg) | Gold (000oz) |
907.7 | 0.55 | 497 | 15 982 |
Consideration of mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors).
Measured | Indicated | Inferred | Total | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
SA Underground | Tonnes (Mt) | Grade g/t | Gold (000kg) | Tonnes (Mt) | Grade g/t | Gold (000kg) | Tonnes (Mt) | Grade g/t | Gold (000kg) | Tonnes (Mt) | Grade g/t | Gold (000kg) |
Bambanani | 11.4 | 11.20 | 127 | 6.4 | 9.67 | 62 | 3.8 | 9.02 | 34 | 21.6 | 10.36 | 223 |
Joel | 4.3 | 6.44 | 28 | 3.9 | 6.82 | 27 | 12.3 | 6.50 | 80 | 20.5 | 6.55 | 135 |
Masimong | 14.0 | 7.55 | 106 | 14.9 | 6.51 | 97 | 100.3 | 6.69 | 671 | 129.2 | 6.76 | 874 |
Phakisa | ||||||||||||
Phakisa | 0.2 | 9.72 | 2 | 22.1 | 12.29 | 272 | 57.8 | 7.02 | 405 | 80.1 | 8.48 | 679 |
Nyala | 4.4 | 6.91 | 31 | 3.9 | 4.76 | 18 | | | | 8.3 | 5.91 | 49 |
Total | 4.6 | 7.03 | 33 | 26.0 | 11.17 | 290 | 57.8 | 7.02 | 405 | 88.4 | 8.24 | 728 |
Target | 6.3 | 9.81 | 62 | 13.9 | 7.65 | 106 | 5.2 | 6.26 | 32 | 25.4 | 7.90 | 200 |
Tshepong | 14.0 | 11.03 | 154 | 14.3 | 11.32 | 162 | 13.8 | 8.85 | 122 | 42.1 | 10.42 | 438 |
Virginia | ||||||||||||
Harmony 2 | 10.2 | 4.75 | 48 | 7.1 | 3.30 | 24 | 77.1 | 3.67 | 282 | 94.4 | 3.76 | 354 |
Merriespruit 1 | 8.5 | 5.20 | 45 | 3.8 | 5.25 | 20 | 39.6 | 4.19 | 166 | 51.9 | 4.43 | 231 |
Merriespruit 3 | 8.8 | 5.25 | 46 | 2.8 | 4.91 | 14 | 7.0 | 4.08 | 29 | 18.6 | 4.76 | 89 |
Unisel | 11.2 | 5.56 | 62 | 12.0 | 4.73 | 56 | 20.6 | 4.65 | 97 | 43.8 | 4.90 | 215 |
Brand 3 | 4.1 | 6.78 | 28 | 4.1 | 6.91 | 29 | 10.0 | 5.15 | 51 | 18.2 | 5.91 | 108 |
Total | 42.8 | 5.35 | 229 | 29.8 | 4.77 | 143 | 154.3 | 4.05 | 625 | 226.9 | 4.39 | 997 |
Doornkop | ||||||||||||
Doornkop Kimberley Reef | 9.1 | 3.27 | 30 | 6.8 | 2.64 | 18 | 159.7 | 2.51 | 401 | 175.6 | 2.56 | 449 |
Doornkop South Reef | 0.6 | 5.99 | 3 | 1.3 | 6.23 | 8 | 22.5 | 8.63 | 194 | 24.4 | 8.44 | 205 |
Total | 9.7 | 3.43 | 33 | 8.1 | 3.23 | 26 | 182.2 | 3.27 | 595 | 200.0 | 3.27 | 654 |
Elandsrand | 11.6 | 8.87 | 103 | 28.2 | 8.63 | 243 | 1.4 | 9.28 | 13 | 41.2 | 8.72 | 359 |
Evander | ||||||||||||
Evander operations | ||||||||||||
Evander 2/5 | 7.7 | 10.62 | 81 | 2.0 | 10.47 | 21 | 6.5 | 11.36 | 75 | 16.2 | 10.90 | 177 |
Evander 7 | 1.9 | 12.08 | 23 | 0.1 | 9.28 | 1 | 13.9 | 10.91 | 151 | 15.9 | 11.04 | 175 |
Evander 8 | 3.7 | 11.96 | 44 | 9.2 | 11.37 | 105 | 14.3 | 11.79 | 169 | 27.2 | 11.67 | 318 |
Sub-total | 13.3 | 11.20 | 148 | 11.3 | 11.8 | 127 | 34.7 | 11.36 | 395 | 59.3 | 11.29 | 670 |
Evander (below infrastructure) | ||||||||||||
Evander South | | | | 21.1 | 5.46 | 115 | 33.8 | 3.98 | 135 | 54.9 | 4.55 | 250 |
Rolspruit | | | | 29.1 | 11.59 | 337 | 4.9 | 5.69 | 28 | 34.0 | 10.74 | 365 |
Poplar | | | | 15.6 | 10.21 | 159 | | | | 15.6 | 10.21 | 159 |
Sub-total | | | | 65.8 | 9.30 | 611 | 38.7 | 4.19 | 163 | 104.5 | 7.41 | 774 |
Total | 13.3 | 11.20 | 148 | 77.1 | 9.58 | 738 | 73.4 | 7.58 | 558 | 163.8 | 8.81 | 1 444 |
Total SA Underground | 132.0 | 7.75 | 1 023 | 222.6 | 8.51 | 1 894 | 604.5 | 5.19 | 3 135 | 959.1 | 6.31 | 6 052 |
SA Surface | ||||||||||||
Kalgold | 34.5 | 0.93 | 32 | 66.0 | 0.94 | 62 | 28.4 | 0.95 | 27 | 128.9 | 0.94 | 121 |
Free State Surface | ||||||||||||
Phoenix | 130.8 | 0.27 | 36 | | | | 5.3 | 0.26 | 1 | 136.1 | 0.27 | 37 |
St Helena | 289.6 | 0.25 | 72 | | | | | | | 289.6 | 0.25 | 72 |
Other | 421.8 | 0.22 | 93 | 142.0 | 0.33 | 47 | 195.2 | 0.23 | 45 | 759.0 | 0.24 | 185 |
Total | 842.2 | 0.24 | 201 | 142.0 | 0.33 | 47 | 200.5 | 0.23 | 46 | 1 184.7 | 0.25 | 294 |
Total SA Surface | 876.7 | 0.27 | 233 | 208.0 | 0.52 | 109 | 228.9 | 0.32 | 73 | 1 313.6 | 0.32 | 415 |
Total SA | 1 008.7 | 1 256 | 430.6 | 2 003 | 833.4 | 3 208 | 2 272.7 | 6 467 | ||||
Papua New Guinea 1 | ||||||||||||
Hidden Valley and Kaveroi | 2.8 | 2.16 | 6 | 23.1 | 1.89 | 44 | 14.8 | 1.53 | 23 | 40.7 | 1.78 | 73 |
Hamata | 0.2 | 2.20 | | 3.9 | 2.34 | 9 | 0.6 | 2.58 | 2 | 4.7 | 2.37 | 11 |
Wafi | | | | 31.9 | 1.97 | 63 | 19.8 | 1.73 | 34 | 51.7 | 1.88 | 97 |
Golpu | | | | 43.8 | 0.63 | 28 | 37.7 | 0.49 | 18 | 81.5 | 0.57 | 46 |
Nambonga | | | | | | | 19.9 | 0.79 | 16 | 19.9 | 0.79 | 16 |
Total Papua New Guinea | 3.0 | 2.16 | 6 | 102.7 | 1.40 | 144 | 92.8 | 1.00 | 93 | 198.5 | 1.22 | 243 |
GRAND TOTAL | 1 011.7 | 1 262 | 533.3 | 2 147 | 926.2 | 3 301 | 2 471.2 | 6 710 |
Measured | Indicated | Inferred | Total | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Tonnes | Grade | U3O8 kg | Tonnes | Grade | U3O8 kg | Tonnes | Grade | U3O8 kg | Tonnes | Grade | U3O8 kg | |
Operations | (million) | (kg/t) | (million) | (million) | (kg/t) | (million) | (million) | (kg/t) | (million) | (million) | (kg/t) | (million) |
Free State Surface | ||||||||||||
Free State | 358.8 | 0.09 | 33 | 36.5 | 0.10 | 4 | 68.4 | 0.07 | 5 | 463.7 | 0.09 | 42 |
Total SA Surface | 358.8 | 0.09 | 33 | 36.5 | 0.10 | 4 | 68.4 | 0.07 | 5 | 463.7 | 0.09 | 42 |
Measured | Indicated | Inferred | Total | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Tonnes | Grade | Silver kg | Tonnes | Grade | Silver kg | Tonnes | Grade | Silver kg | Tonnes | Grade | Silver kg | |
Operations | (million) | (g/t) | (000) | (million) | (g/t) | (000) | (million) | (g/t) | (000) | (million) | (g/t) | (000) |
Papua New Guinea 1 | ||||||||||||
Hidden Valley and Kaveroi | 2.8 | 40.52 | 114 | 23.1 | 33.95 | 785 | 14.8 | 27.38 | 406 | 40.7 | 32.01 | 1 305 |
Measured | Indicated | Inferred | Total | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Tonnes | Grade | Cu kg | Tonnes | Grade | Cu kg | Tonnes | Grade | Cu kg | Tonnes | Grade | Cu kg | |
Operations | (million) | (%) | (million) | (million) | (%) | (million) | (million) | (%) | (million) | (million) | (%) | (million) |
Papua New Guinea 1 | ||||||||||||
Golpu | | | | 43.8 | 1.39 | 609 | 37.7 | 0.72 | 272 | 81.5 | 1.08 | 881 |
Nambonga | | | | | | | 19.9 | 0.21 | 42 | 19.9 | 0.21 | 42 |
Total | | | | 43.8 | 1.39 | 609 | 57.6 | 0.54 | 314 | 101.5 | 0.91 | 923 |
Measured | Indicated | Inferred | Total | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Tonnes | Grade | Mo kg | Tonnes | Grade | Mo kg | Tonnes | Grade | Mo kg | Tonnes | Grade | Mo kg | |
Operations | (million) | (ppm) | (million) | (million) | (ppm) | (million) | (million) | (ppm) | (million) | (million) | (ppm) | (million) |
Papua New Guinea 1 | ||||||||||||
Golpu | | | | 43.8 | 110.00 | 5 | 37.7 | 157.00 | 6 | 81.5 | 131.75 | 11 |
1 Represents Harmony's equity portion of 50%
Note: 1 tonne = 1 000 kg = 2 204 lbs
Measured | Indicated | Inferred | Total | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
SA Underground | Tons (million) | Grade (oz/ton) | Gold oz (000) | Tons (million) | Grade (oz/ton) | Gold oz (000) | Tons (million) | Grade (oz/ton) | Gold oz (000) | Tons (million) | Grade (oz/ton) | Gold oz (000) |
Bambanani | 12.5 | 0.327 | 4 087 | 7.1 | 0.282 | 1 993 | 4.2 | 0.263 | 1 101 | 23.8 | 0.302 | 7 181 |
Joel | 4.8 | 0.188 | 895 | 4.3 | 0.199 | 855 | 13.6 | 0.190 | 2 580 | 22.7 | 0.191 | 4 330 |
Masimong | 15.4 | 0.220 | 3 401 | 16.5 | 0.190 | 3 128 | 110.6 | 0.195 | 21 576 | 142.5 | 0.197 | 28 105 |
Phakisa | ||||||||||||
Phakisa | 0.2 | 0.285 | 65 | 24.4 | 0.358 | 8 745 | 63.7 | 0.205 | 13 036 | 88.3 | 0.247 | 21 846 |
Nyala | 4.9 | 0.201 | 985 | 4.3 | 0.139 | 592 | | | | 9.2 | 0.172 | 1 577 |
Total | 5.1 | 0.205 | 1 050 | 28.7 | 0.326 | 9 337 | 63.7 | 0.205 | 13 036 | 97.5 | 0.240 | 23 423 |
Target | 7.0 | 0.286 | 1 991 | 15.3 | 0.223 | 3 412 | 5.7 | 0.182 | 1 043 | 28.0 | 0.230 | 6 446 |
Tshepong | 15.4 | 0.322 | 4 949 | 15.8 | 0.330 | 5 211 | 15.2 | 0.258 | 3 922 | 46.4 | 0.304 | 14 082 |
Virginia | ||||||||||||
Harmony 2 | 11.2 | 0.139 | 1 559 | 7.9 | 0.096 | 757 | 84.9 | 0.107 | 9 082 | 104.0 | 0.110 | 11 398 |
Merriespruit 1 | 9.4 | 0.152 | 1 421 | 4.1 | 0.153 | 635 | 43.7 | 0.122 | 5 334 | 57.2 | 0.129 | 7 390 |
Merriespruit 3 | 9.7 | 0.153 | 1 491 | 3.1 | 0.143 | 436 | 7.7 | 0.119 | 917 | 20.5 | 0.139 | 2 844 |
Unisel | 12.3 | 0.162 | 1 989 | 13.3 | 0.138 | 1 828 | 22.7 | 0.136 | 3 086 | 48.3 | 0.143 | 6 903 |
Brand 3 | 4.6 | 0.198 | 892 | 4.5 | 0.201 | 916 | 11.0 | 0.150 | 1 650 | 20.1 | 0.172 | 3 458 |
Total | 47.2 | 0.156 | 7 352 | 32.9 | 0.139 | 4 572 | 170.0 | 0.118 | 20 069 | 250.1 | 0.128 | 31 993 |
Doornkop | ||||||||||||
Doornkop Kimberley Reef | 10.1 | 0.095 | 960 | 7.4 | 0.077 | 574 | 176.0 | 0.073 | 12 893 | 193.5 | 0.075 | 14 427 |
Doornkop South Reef | 0.6 | 0.175 | 113 | 1.5 | 0.181 | 265 | 24.8 | 0.252 | 6 239 | 26.9 | 0.246 | 6 617 |
Total | 10.7 | 0.100 | 1 073 | 8.9 | 0.094 | 839 | 200.8 | 0.095 | 19 132 | 220.4 | 0.095 | 21 044 |
Elandsrand | 12.8 | 0.259 | 3 313 | 31.0 | 0.252 | 7 812 | 1.6 | 0.270 | 431 | 45.4 | 0.254 | 11 556 |
Evander | ||||||||||||
Evander operations | ||||||||||||
Evander 2/5 | 8.5 | 0.310 | 2 618 | 2.2 | 0.305 | 678 | 7.2 | 0.331 | 2 386 | 17.9 | 0.318 | 5 682 |
Evander 7 | 2.1 | 0.353 | 754 | 0.2 | 0.268 | 44 | 15.3 | 0.318 | 4 857 | 17.6 | 0.322 | 5 655 |
Evander 8 | 4.0 | 0.349 | 1 404 | 10.1 | 0.332 | 3 361 | 15.8 | 0.344 | 5 424 | 29.9 | 0.340 | 10 189 |
Sub-total | 14.6 | 0.327 | 4 776 | 12.5 | 0.326 | 4 083 | 38.3 | 0.331 | 12 667 | 65.4 | 0.329 | 21 526 |
Evander (below infrastructure) | ||||||||||||
Evander South | | | | 23.2 | 0.159 | 3 696 | 37.3 | 0.116 | 4 326 | 60.5 | 0.133 | 8 022 |
Rolspruit | | | | 32.1 | 0.338 | 10 847 | 5.4 | 0.166 | 902 | 37.5 | 0.313 | 11 749 |
Poplar | | | | 17.2 | 0.298 | 5 123 | | | | 17.2 | 0.298 | 5 123 |
Sub-total | | | | 72.5 | 0.271 | 19 666 | 42.7 | 0.122 | 5 228 | 115.2 | 0.216 | 24 894 |
Total | 14.6 | 0.327 | 4 776 | 85.0 | 0.279 | 23 749 | 81.0 | 0.221 | 17 895 | 180.6 | 0.257 | 46 420 |
Total SA Underground | 145.5 | 0.226 | 32 887 | 245.5 | 0.248 | 60 908 | 666.4 | 0.151 | 100 785 | 1 057.4 | 0.184 | 194 580 |
SA Surface | ||||||||||||
Kalgold | 38.1 | 0.027 | 1 037 | 72.7 | 0.028 | 2 002 | 31.3 | 0.028 | 871 | 142.1 | 0.028 | 3 910 |
Free State Surface | ||||||||||||
Phoenix | 144.1 | 0.008 | 1 148 | | | | 5.9 | 0.008 | 44 | 150.0 | 0.008 | 1 192 |
St Helena | 319.2 | 0.007 | 2 327 | | | | | | | 319.2 | 0.007 | 2 327 |
Other | 465.0 | 0.006 | 2 984 | 156.5 | 0.010 | 1 500 | 215.1 | 0.007 | 1 444 | 836.6 | 0.007 | 5 928 |
Total | 928.3 | 0.007 | 6 459 | 156.5 | 0.010 | 1 500 | 221.0 | 0.007 | 1 488 | 1 305.8 | 0.007 | 9 447 |
Total SA Surface | 966.4 | 0.008 | 7 496 | 229.2 | 0.015 | 3 502 | 252.3 | 0.009 | 2 359 | 1 447.9 | 0.009 | 13 357 |
Total SA | 1 111.9 | 40 383 | 474.7 | 64 410 | 918.7 | 103 144 | 2 505.3 | 207 937 | ||||
Papua New Guinea 1 | ||||||||||||
Hidden Valley and Kaveroi | 3.1 | 0.063 | 195 | 25.5 | 0.055 | 1 409 | 16.3 | 0.045 | 730 | 44.9 | 0.052 | 2 334 |
Hamata | 0.2 | 0.064 | 12 | 4.2 | 0.068 | 291 | 0.7 | 0.075 | 50 | 5.1 | 0.069 | 353 |
Wafi | | | | 35.1 | 0.057 | 2 017 | 21.8 | 0.050 | 1 099 | 56.9 | 0.055 | 3 116 |
Golpu | | | | 48.3 | 0.018 | 887 | 41.6 | 0.014 | 595 | 89.9 | 0.016 | 1 482 |
Nambonga | | | | | | | 21.9 | 0.023 | 505 | 21.9 | 0.023 | 505 |
Total Papua New Guinea | 3.3 | 0.063 | 207 | 113.1 | 0.041 | 4 604 | 102.3 | 0.029 | 2 979 | 218.7 | 0.036 | 7 790 |
GRAND TOTAL | 1 115.2 | 40 590 | 587.8 | 69 014 | 1 021.0 | 106 123 | 2 724.0 | 215 727 |
Measured | Indicated | Inferred | Total | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Tons | Grade | U3O8 lbs | Tons | Grade | U3O8 lbs | Tons | Grade | U3O8 lbs | Tons | Grade | U3O8 lbs | |
Operations | (million) | (lbs/ton) | (million) | (million) | (lbs/ton) | (million) | (million) | (lbs/ton) | (million) | (million) | (lbs/ton) | (million) |
Free State surface | ||||||||||||
Free State | 395.5 | 0.182 | 72 | 40.3 | 0.195 | 8 | 75.4 | 0.140 | 11 | 511.2 | 0.177 | 91 |
Total SA Surface | 395.5 | 0.182 | 72 | 40.3 | 0.195 | 8 | 75.4 | 0.140 | 11 | 511.2 | 0.177 | 91 |
Measured | Indicated | Inferred | Total | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Tons | Grade | Silver oz | Tons | Grade | Silver oz | Tons | Grade | Silver oz | Tons | Grade | Silver oz | |
Operations | (million) | (oz/ton) | (000) | (million) | (oz/ton) | (000) | (million) | (oz/ton) | (000) | (million) | (oz/ton) | (000) |
Papua New Guinea 1 | ||||||||||||
Hidden Valley and Kaveroi | 3.1 | 1.182 | 3 668 | 25.5 | 0.990 | 25 246 | 16.3 | 0.799 | 13 054 | 44.9 | 0.934 | 41 968 |
Measured | Indicated | Inferred | Total | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Tons | Grade | Cu lbs | Tons | Grade | Cu lbs | Tons | Grade | Cu lbs | Tons | Grade | Cu lbs | |
Operations | (million) | (%) | (million) | (million) | (%) | (million) | (million) | (%) | (million) | (million) | (%) | (million) |
Papua New Guinea 1 | ||||||||||||
Golpu | | | | 48.3 | 1.261 | 1 343 | 41.6 | 0.653 | 599 | 89.9 | 0.980 | 1 942 |
Nambonga | | | | | | | 21.9 | 0.191 | 92 | 21.9 | 0.191 | 92 |
Total | | | | 48.3 | 1.261 | 1 343 | 63.5 | 0.493 | 691 | 111.8 | 0.825 | 2 034 |
Measured | Indicated | Inferred | Total | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Tons | Grade | Mo lbs | Tons | Grade | Mo lbs | Tons | Grade | Mo lbs | Tons | Grade | Mo lbs | |
Operations | (million) | (lbs/ton) | (million) | (million) | (lbs/ton) | (million) | (million) | (lbs/ton) | (million) | (million) | (lbs/ton) | (million) |
Papua New Guinea 1 | ||||||||||||
Golpu | | | | 48.3 | 0.220 | 11 | 41.6 | 0.314 | 13 | 89.9 | 0.263 | 24 |
1 Represents Harmony's equity portion of 50%
Note: 1 ton = 907 kg = 2 000 lbs
Proven Reserves | Probable Reserves | Total Reserves | |||||||
---|---|---|---|---|---|---|---|---|---|
SA Underground | Tonnes (million) | Grade g/t | Gold1 (000kg) | Tonnes (million) | Grade g/t | Gold1 (000kg) | Tonnes (million) | Grade g/t | Gold1 (000kg) |
Bambanani | 3.5 | 8.48 | 30 | 1.2 | 10.90 | 13 | 4.7 | 9.09 | 43 |
Joel | 0.9 | 5.74 | 5 | 2.2 | 5.52 | 13 | 3.1 | 5.58 | 18 |
Masimong | 4.5 | 5.20 | 24 | 1.4 | 5.27 | 7 | 5.9 | 5.22 | 31 |
Phakisa | |||||||||
Phakisa | 0.3 | 5.38 | 1 | 20.1 | 8.12 | 163 | 20.4 | 8.08 | 164 |
Nyala | 0.1 | 4.01 | 1 | 0.0 | 3.37 | – | 0.1 | 3.82 | 1 |
Total | 0.4 | 4.98 | 2 | 20.1 | 8.11 | 163 | 20.5 | 8.05 | 165 |
Target | 4.8 | 6.10 | 29 | 9.0 | 5.60 | 50 | 13.8 | 5.77 | 79 |
Tshepong | 12.8 | 5.30 | 68 | 11.5 | 5.78 | 66 | 24.3 | 5.53 | 134 |
Virginia | |||||||||
Harmony 2 | 0.9 | 3.56 | 3 | 0.1 | 3.28 | – | 1.0 | 3.53 | 3 |
Merriespruit 1 | 1.2 | 4.55 | 6 | 0.6 | 4.45 | 2 | 1.8 | 4.52 | 8 |
Merriespruit 3 | 0.9 | 3.69 | 3 | 0.2 | 2.80 | 1 | 1.1 | 3.54 | 4 |
Unisel | 3.0 | 4.95 | 15 | 1.8 | 4.85 | 9 | 4.8 | 4.91 | 24 |
Brand 3 | 0.6 | 3.92 | 2 | 0.1 | 4.42 | 1 | 0.7 | 4.02 | 3 |
Total | 6.6 | 4.43 | 29 | 2.8 | 4.56 | 13 | 9.4 | 4.47 | 42 |
Doornkop | |||||||||
Doornkop Kimberley Reef | 0.3 | 2.48 | 1 | 0.3 | 2.57 | 1 | 0.6 | 2.53 | 2 |
Doornkop South Reef | 0.4 | 4.30 | 2 | 0.9 | 4.27 | 4 | 1.3 | 4.28 | 6 |
Total | 0.7 | 3.55 | 3 | 1.2 | 3.85 | 5 | 1.9 | 3.75 | 8 |
Elandsrand | 11.5 | 6.50 | 74 | 26.2 | 6.11 | 160 | 37.7 | 6.23 | 234 |
Evander | |||||||||
Evander operations | |||||||||
Evander 2/5 | 0.8 | 6.35 | 5 | 0.2 | 6.17 | 1 | 1.0 | 6.32 | 6 |
Evander 7 | 0.2 | 4.64 | 1 | 0.0 | 8.48 | – | 0.2 | 4.81 | 1 |
Evander 8 | 1.8 | 5.66 | 10 | 7.0 | 6.21 | 43 | 8.8 | 6.09 | 53 |
Sub-total | 2.8 | 5.79 | 16 | 7.2 | 6.21 | 44 | 10.0 | 6.09 | 60 |
Evander (below infrastructure) | |||||||||
Evander South | – | – | – | 11.5 | 4.80 | 55 | 11.5 | 4.80 | 55 |
Rolspruit | – | – | – | 24.4 | 8.71 | 213 | 24.4 | 8.71 | 213 |
Poplar | – | – | – | 13.5 | 7.45 | 101 | 13.5 | 7.45 | 101 |
Sub-total | – | – | – | 49.4 | 7.45 | 369 | 49.4 | 7.45 | 369 |
Total | 2.8 | 5.79 | 16 | 56.6 | 7.30 | 413 | 59.4 | 7.22 | 429 |
Total SA Underground | 48.5 | 5.78 | 280 | 132.2 | 6.83 | 903 | 180.7 | 6.55 | 1 183 |
SA Surface | |||||||||
Kalgold | 15.5 | 0.84 | 13 | 9.0 | 1.07 | 10 | 24.5 | 0.93 | 23 |
Free State Surface | |||||||||
Phoenix | 130.8 | 0.27 | 36 | – | – | – | 130.8 | 0.27 | 36 |
St Helena | 289.6 | 0.25 | 72 | – | – | – | 289.6 | 0.25 | 72 |
Other | 421.8 | 0.22 | 93 | 101.7 | 0.26 | 26 | 523.5 | 0.23 | 119 |
Total | 842.2 | 0.24 | 201 | 101.7 | 0.26 | 26 | 943.9 | 0.24 | 227 |
Total SA Surface | 857.7 | 0.25 | 214 | 110.7 | 0.32 | 36 | 968.4 | 0.26 | 250 |
Total SA | 906.2 | 494 | 242.9 | 939 | 1 149.1 | 1 433 | |||
Papua New Guinea 2 | |||||||||
Hidden Valley and Kaveroi | 1.4 | 2.34 | 3 | 17.6 | 1.99 | 35 | 19.0 | 2.02 | 38 |
Hamata | 0.1 | 2.05 | – | 1.9 | 2.69 | 5 | 2.0 | 2.66 | 5 |
Golpu | – | – | – | 35.4 | 0.61 | 22 | 35.4 | 0.61 | 22 |
Total Papua New Guinea | 1.5 | 2.32 | 3 | 54.9 | 1.12 | 62 | 56.4 | 1.16 | 65 |
GRAND TOTAL | 907.7 | 497 | 297.8 | 1 001 | 1 205.5 | 1 498 |
Proven Reserves | Probable Reserves | Total Reserves | |||||||
---|---|---|---|---|---|---|---|---|---|
Tonnes | Grade | Silver1 | Tonnes | Grade | Silver1 | Tonnes | Grade | Silver1 | |
Operations | (million) | (g/t) | (000kg) | (million) | (g/t) | (000kg) | (million) | (g/t) | (000kg) |
Papua New Guinea 2 | |||||||||
Hidden Valley and Kaveroi | 1.4 | 39.00 | 55 | 17.6 | 36.70 | 646 | 19.0 | 36.87 | 701 |
Proven Reserves | Probable Reserves | Total Reserves | |||||||
---|---|---|---|---|---|---|---|---|---|
Tonnes | Grade | Cu kg1 | Tonnes | Grade | Cu kg1 | Tonnes | Grade | Cu kg1 | |
Operations | (million) | (%) | (million) | (million) | (%) | (million) | (million) | (%) | (million) |
Papua New Guinea 2 | |||||||||
Golpu | – | – | – | 35.4 | 1.13 | 400 | 35.4 | 1.13 | 400 |
Proven Reserves | Probable Reserves | Total Reserves | |||||||
---|---|---|---|---|---|---|---|---|---|
Tonnes | Grade | Mo kg1 | Tonnes | Grade | Mo kg1 | Tonnes | Grade | Mo kg1 | |
Operations | (million) | (ppm) | (million) | (million) | (ppm) | (million) | (million) | (ppm) | (million) |
Papua New Guinea 2 | |||||||||
Golpu | | | | 35.4 | 121.00 | 4 | 35.4 | 121.00 | 4 |
1 Metal figures are fully inclusive of all mining dilutions and gold losses, and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
2 Represents Harmony's equity portion of 50%
Note: 1 tonne = 1 000 kg = 2 204 lbs
Proven Reserves | Probable Reserves | Total Reserves | |||||||
---|---|---|---|---|---|---|---|---|---|
SA Underground | Tons (million) | Grade (oz/t) | Gold1 (000oz) | Tons (million) | Grade (oz/t) | Gold1 (000oz) | Tons (million) | Grade (oz/t) | Gold1 (000oz) |
Bambanani | 3.9 | 0.247 | 965 | 1.3 | 0.318 | 420 | 5.2 | 0.265 | 1 385 |
Joel | 1.0 | 0.168 | 161 | 2.5 | 0.161 | 404 | 3.5 | 0.163 | 565 |
Masimong | 4.9 | 0.152 | 751 | 1.5 | 0.154 | 233 | 6.4 | 0.152 | 984 |
Phakisa | |||||||||
Phakisa | 0.3 | 0.158 | 43 | 22.1 | 0.237 | 5 234 | 22.4 | 0.236 | 5 277 |
Nyala | 0.1 | 0.114 | 13 | 0.1 | 0.101 | 5 | 0.2 | 0.110 | 18 |
Total | 0.4 | 0.145 | 56 | 22.2 | 0.236 | 5 239 | 22.6 | 0.235 | 5 295 |
Target | 5.3 | 0.178 | 942 | 9.9 | 0.163 | 1 617 | 15.2 | 0.168 | 2 559 |
Tshepong | 14.1 | 0.154 | 2 184 | 12.6 | 0.169 | 2 130 | 26.7 | 0.161 | 4 314 |
Virginia | |||||||||
Harmony 2 | 1.0 | 0.104 | 103 | 0.1 | 0.091 | 9 | 1.1 | 0.103 | 112 |
Merriespruit 1 | 1.4 | 0.133 | 183 | 0.7 | 0.130 | 86 | 2.1 | 0.132 | 269 |
Merriespruit 3 | 1.0 | 0.107 | 102 | 0.2 | 0.080 | 16 | 1.2 | 0.103 | 118 |
Unisel | 3.3 | 0.144 | 482 | 1.9 | 0.142 | 276 | 5.2 | 0.143 | 758 |
Brand 3 | 0.6 | 0.114 | 70 | 0.2 | 0.131 | 20 | 0.8 | 0.117 | 90 |
Total | 7.3 | 0.129 | 940 | 3.1 | 0.133 | 407 | 10.4 | 0.130 | 1 347 |
Doornkop | |||||||||
Doornkop Kimberley Reef | 0.3 | 0.072 | 20 | 0.3 | 0.076 | 25 | 0.6 | 0.074 | 45 |
Doornkop South Reef | 0.4 | 0.126 | 50 | 1.0 | 0.125 | 128 | 1.4 | 0.125 | 178 |
Total | 0.7 | 0.104 | 70 | 1.3 | 0.113 | 153 | 2.0 | 0.110 | 223 |
Elandsrand | 12.6 | 0.190 | 2 395 | 28.9 | 0.178 | 5 146 | 41.5 | 0.182 | 7 541 |
Evander | |||||||||
Evander operations | |||||||||
Evander 2/5 | 0.9 | 0.185 | 163 | 0.2 | 0.179 | 38 | 1.1 | 0.184 | 201 |
Evander 7 | 0.2 | 0.133 | 27 | 0.0 | 0.203 | 2 | 0.2 | 0.137 | 29 |
Evander 8 | 2.0 | 0.165 | 332 | 7.7 | 0.181 | 1 394 | 9.7 | 0.178 | 1 726 |
Sub-total | 3.1 | 0.169 | 522 | 7.9 | 0.181 | 1 434 | 11.0 | 0.177 | 1 956 |
Evander (below infrastructure) | |||||||||
Evander South | – | – | – | 12.7 | 0.140 | 1 773 | 12.7 | 0.140 | 1 773 |
Rolspruit | – | – | – | 26.9 | 0.254 | 6 842 | 26.9 | 0.254 | 6 842 |
Poplar | – | – | – | 14.9 | 0.217 | 3 234 | 14.9 | 0.217 | 3 234 |
Sub-total | – | – | – | 54.5 | 0.217 | 11 849 | 54.5 | 0.217 | 11 849 |
Total | 3.1 | 0.169 | 522 | 62.4 | 0.213 | 13 283 | 65.5 | 0.211 | 13 805 |
Total SA Underground | 53.3 | 0.169 | 8 986 | 145.7 | 0.199 | 29 032 | 199.0 | 0.191 | 38 018 |
SA Surface | |||||||||
Kalgold | 17.3 | 0.025 | 425 | 9.8 | 0.031 | 307 | 27.1 | 0.027 | 732 |
Free State Surface | |||||||||
Phoenix | 144.1 | 0.008 | 1 148 | – | – | – | 144.1 | 0.008 | 1 148 |
St Helena | 319.2 | 0.007 | 2 326 | – | – | – | 319.2 | 0.007 | 2 326 |
Other | 465.0 | 0.006 | 2 985 | 112.2 | 0.008 | 845 | 577.2 | 0.007 | 3 830 |
Total | 928.3 | 0.007 | 6 459 | 112.2 | 0.008 | 845 | 1 040.5 | 0.007 | 7 304 |
Total SA Surface | 945.6 | 0.007 | 6 884 | 122.0 | 0.009 | 1 152 | 1 067.6 | 0.008 | 8 036 |
Total SA | 998.9 | 15 870 | 267.7 | 30 184 | 1 266.6 | 46 054 | |||
Papua New Guinea 2 | |||||||||
Hidden Valley and Kaveroi | 1.5 | 0.068 | 105 | 19.4 | 0.058 | 1 126 | 20.9 | 0.059 | 1 231 |
Hamata | 0.2 | 0.064 | 7 | 2.1 | 0.078 | 164 | 2.3 | 0.078 | 171 |
Golpu | – | – | – | 39.0 | 0.018 | 694 | 39.0 | 0.018 | 694 |
Total Papua New Guinea | 1.7 | 0.068 | 112 | 60.5 | 0.033 | 1 984 | 62.2 | 0.034 | 2 096 |
GRAND TOTAL | 1 000.6 | 15 982 | 328.2 | 32 168 | 1 328.8 | 48 150 |
Proven Reserves | Probable Reserves | Total Reserves | |||||||
---|---|---|---|---|---|---|---|---|---|
Tons | Grade | Silver oz1 | Tons | Grade | Silver oz1 | Tons | Grade | Silver oz1 | |
Operations | (million) | (oz/t) | (million) | (million) | (oz/t) | (million) | (million) | (oz/t) | (million) |
Papua New Guinea 2 | |||||||||
Hidden Valley and Kaveroi | 1.5 | 1.137 | 1 755 | 19.4 | 1.070 | 20 767 | 20.9 | 1.075 | 22 522 |
Proven Reserves | Probable Reserves | Total Reserves | |||||||
---|---|---|---|---|---|---|---|---|---|
Tons | Grade | Cu lbs1 | Tons | Grade | Cu lbs1 | Tons | Grade | Cu lbs1 | |
Operations | (million) | (%) | (million) | (million) | (%) | (million) | (million) | (%) | (million) |
Papua New Guinea 2 | |||||||||
Golpu | – | – | – | 39.0 | 1.025 | 882 | 39.0 | 1.025 | 882 |
Proven Reserves | Probable Reserves | Total Reserves | |||||||
---|---|---|---|---|---|---|---|---|---|
Tons | Grade | Mo lbs1 | Tons | Grade | Mo lbs1 | Tons | Grade | Mo lbs1 | |
Operations | (million) | (ppm) | (million) | (million) | (ppm) | (million) | (million) | (ppm) | (million) |
Papua New Guinea 2 | |||||||||
Golpu | | | | 39.0 | 0.231 | 9 | 39.0 | 0.231 | 9 |
1 Metal figures are fully inclusive of all mining dilutions and gold losses, and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
2 Represents Harmony's equity portion of 50%
Note: 1 ton = 907 kg = 2 000 lbs
Harmony uses the South African Code for the Reporting of Exploration Results, mineral resources and ore reserves (SAMREC Code), which sets out the internationally recognised procedures and standards for reporting of mineral resources and ore reserves in South Africa. This code was developed by the South African Institute of Mining and Metallurgy and is the recommended guideline for reserve and resource reporting for companies listed on the JSE Limited. Harmony’s reporting of its Australian and PNG mineral resources and ore reserves also complies with the Australian Code for the Reporting of mineral resources and ore reserves (JORC code) of the Australian Institute of Mining and Metallurgy. This code is materially the same as the SAMREC code. In reporting reserves, distinct cognisance has also been taken of Industry Guide 7 of the United States Securities Exchange Commission. Harmony uses the term ‘ore reserves,’ which has the same meaning as ‘mineral reserves’, as defined in the SAMREC code.
A mineral resource is a concentration (or occurrence) of material of economic interest in or on the earth’s crust in such form, quality and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a mineral resource are known, estimated from specific geological evidence and knowledge, or are interpreted from a well constrained and portrayed geological model.
Mineral resources are sub-divided in order of increasing confidence in respect of geoscientific evidence into inferred, indicated and measured categories. An inferred mineral resource is that part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and sampling, and assumed but not verified geologically and/or through analysis of grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited or of uncertain quality and reliability.
An indicated mineral resource is that part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and the testing of information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
A measured mineral resource is that part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity.
An ore reserve is the economically mineable material derived from a measured and/or indicated mineral resource. It includes diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a pre-feasibility study for a project, or a life of mine plan for an operation, must have been carried out, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors). Such modifying factors must be disclosed.
A probable ore reserve is the economically mineable material derived from a measured and/or indicated mineral resource. It is estimated with a lower level of confidence than a proved ore reserve. It includes diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a pre-feasibility study for a project, or a life of mine plan for an operation, must have been carried out, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. Such modifying factors must be disclosed.
A proven ore reserve is the economically mineable material derived from a measured mineral resource. It is estimated with a high level of confidence. It includes diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a pre-feasibility study for a project, or a life of mine plan for an operation, must have been carried out, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. Such modifying factors must be disclosed.
In order to meet the requirements of the SAMREC code that the material reported as a mineral resource should have "reasonable and realistic prospects for eventual economic extraction", Harmony has determined an appropriate cut-off grade which has been applied to the quantified mineralised body according to a process incorporating a long-term view on future economic modifying factors. In applying this process, Harmony uses a gold price of R350 000/kg at a derived cut-off grade to determine the mineral resources at each of its South African underground operations. Mineral resources have been estimated on the basis of geoscientific knowledge with input from the company’s ore reserve managers, geologists and geostatistical staff. Each mine’s mineral resources are categorised blocked-out and ascribed an estimated value. At most mines computerised geostatistical estimation processes are used.
In order to define that portion of a measured and indicated mineral resource that can be converted to a proven and probable ore reserve, Harmony applies the concept of a cut-off grade. At our underground South African mines, this is done by defining the optimal cut-off as the lowest grade at which an orebody can be mined such that the total profits, under a specified set of mining parameters, are maximised. The cut-off grade is determined using the company’s Optimiser computer programme which requires the following as input: the database of measured and indicated resource blocks (per shaft section); an assumed gold price which, for this ore reserve statement, was taken as R225 000/kg; planned production rates; the mine recovery factor (MRF) which is equivalent to the mine call factor (MCF) multiplied by the plant recovery factor (PRF); and planned cash operating costs (rand per tonne). Rand per tonne cash operating costs are historically based but take cognisance of distinct changes in the cost environment such as restructuring, right-sizing, and other cost reduction initiatives, and for below infrastructure ounces, an estimate of capital expenditure.
The block cave reserve at Golpu in PNG uses the PCBC computer programme to define the optimal mine plan and sequencing. The open-pit reserve at Hidden Valley in PNG is constrained by the capacity of the tailings storage facility with the Whittle optimisation programme guiding the most efficient mine design given this constraint.
The ore reserves represent that portion of the measured and indicated resources above cutoff in the life-of-mine plan and have been estimated after consideration of the factors affecting extraction, including mining, metallurgical, economic, marketing, legal, environmental, social, and governmental factors.
A range of disciplines which includes geology, survey, planning, mining engineering, rock engineering, metallurgy, financial management, human resources management and environmental management have been involved at each mine in the life-of-mine planning process and the conversion of resources into reserves.
The modifying factors related to the oreflow used to convert the mineral resources to ore reserves through the life-of-mine planning process are stated for each individual shaft. For these factors, historical information is used, except if there is a valid reason to do otherwise. As a result of the epth at which mining occurs and the resulting rock engineering requirements at our South African underground mines, some shafts design stope support pillars into their mining layouts which accounts for discounts of 7% to 10%. A further 15% discount is applied as a life-of-mine factor to provide for unpay and off-reef mining. In general, life-of-mine plan extraction factors do not exceed 85% and are reflected in the ore reserves.