In partnership with
  • Terry Bell's Inside Labour

    The PIC, which holds nearly R2trn of workers’ pension funds, needs to come clean or face legal action.

  • Ian Mann's book review

    Both giants and SMEs need to be prepared for the 15 disruptive forces that are driving change.

  • Redeem yourself, Gerrie!

    In joining AfriForum, Gerrie Nel has moved out of the reputational frying pan into the fire, says Solly Moeng.

Loading...

South Africa discovers fresh gold resource

Sep 11 2016 14:39
Kevin Crowley

Johannesburg - Harmony Gold Mining and White Rivers Exploration said they found a major gold deposit in South Africa’s Free State that could lead to one of the country’s first new mines for the metal in the last 25 years.

The resource contains 11.5 million ounces of gold at a grade of 8.9 grams per tonne of ore, White Rivers said in an e-mailed statement. Mining would take place 1.1 kilometers to 2.2 kilometers below ground, next to Harmony’s Target mine, it said. The project is 65% owned by White Rivers and 35% by Harmony.

“The joint venture project’s close proximity to Harmony Gold’s Target mine provides direct access to existing infrastructure, thereby limiting capital funding required and facilitating a fast-track development resulting in a payback of under four years,” White Rivers said.

The companies plan to conduct a full prefeasibility study to examine the economic merits of the project, which would be one of the first new gold mines to open in South Africa’s Witwatersrand Basin since the South Deep mine began in 1990. It is now owned by Gold Fields.

Producers have extensively mined the Witwatersrand gold basin since it was discovered in 1886. South Africa was the world’s top bullion producer for more than 100 years until 2007, and dropped to the sixth largest in 2015, according to the World Gold Council.

Once up and running, the White Rivers-Harmony project could produce 250 000 ounces to 300 000 ounces of gold a year for more than 30 years, White Rivers said. The area is also “highly prospective” for uranium, it said.

White Rivers said it plans to trade its shares in London and Johannesburg in 2017.

Read Fin24's top stories trending on Twitter:

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

harmony  |  gold
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Have you considered your options for retirement?

Previous results · Suggest a vote

Loading...