Gauteng, South Africa
10 km West of CARLETONVILLE
Commodities: Gold, Uranium
August 14, 2009
In the quarter ended Jun30/09, gold production at Driefontein decreased marginally from 6,693 kilograms (215,200 ounces) in the March quarter to 6,630 kilograms (213,200 ounces) in the June quarter due to a decrease in underground volumes. Underground tonnage decreased from 868,000 tons in the March quarter to 794,000 tons in the June quarter mainly due to additional public holidays in the June quarter. Surface tonnage increased from 669,000 tons to 742,000 tons partially offsetting the effect of the public holidays. Underground yield increased from 7.1 grams per ton to 7.6 grams per ton for the quarter as in the March quarter 105,000 lower grade underground tons from the stockpile accumulated for the Christmas break were milled. Surface yield remained constant at 0.8 grams per ton in the June quarter. Main development increased by 13 per cent for the quarter and on-reef development increased by 28 per cent, mainly as a result of the buildup post the completion of the backlog secondary support programme. The average development value increased from 791 centimetre grams per ton in the March quarter to 1,109 centimetre grams per ton in the June quarter, primarily due to improved values at 1 shaft and 4 shaft. Operating costs increased from R868 million (US$86 million) to R905 million (US$105 million). The increase in operating cost is mainly attributable to an increase in electricity supply cost due to winter tariffs. Total cash cost increased 5 per cent in rand terms from R122,680 per kilogram to R129,397 per kilogram and increased 22 per cent in US dollar terms, from US$384 per ounce to US$470 per ounce.
December 31, 2008
Gold production decreased by 6 per cent from 6,428 kilograms (206,700 ounces) in the September quarter to 6,063 kilograms (194,900 ounces) in the December quarter. This was 7 per cent below market guidance of 6,500 kilograms. The decrease in production was attributable to two seismic events. The first an event of 3.1 magnitude at 1 shaft on 2 October 2008 and the second an event of 2.4 magnitude at 5 shaft on 15 October 2008. The second event resulted in two fatalities. The resultant section 54 stoppage
issued by The Department of Minerals and Energy and the consequent decision to exit various high grade areas at 5 shaft following the fatalities, contributed to a decline in grade at this shaft of 1.3 grams per ton or approximately 550 kilograms. The seismic event at 5 shaft caused a loss of relatively high grade ore which was replaced with low grade ore. The seismic event at 1 shaft damaged footwall development on 36 level and this affected both volume and grade causing a loss of approximately 185 kilograms of gold.
October 17, 2008
Announced that the Section 54 Orders at the Driefontein mine have been lifted by the South African Department of Minerals and Energy and the operation has resumed production.