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DRDGold's SA plan grinds into motion Posted: Thu, 01 Nov 2007 [miningmx.com] -- DRDGOLD set about breathing growth into its South African operations unveiling a R400m retreatment project, and detailing millions of pounds worth of uranium resources it could develop. However, other plans to expore for gold at its Argonaut gold project in Johannesburg have hit regulatory problems. DRDGOLD also expressed its concern regarding a recent standoff on safety with the minerals and energy department. These developments are in the context of an improved performance at DRDGOLD's South African operations. In the September quarter, the group's South African mines produced an R18.4m profit compared to a R7.8m profit in the June quarter. Including the discontinued Australasian mines held in its Emperor Mines investment, however, the quarterly outcome was a R11.7m loss (June: 10.2m loss), a deterioration that CEO John Sayers said supported the decision to sell Emperor Mines. All in all, DRDGOLD grossed R1.3bn from the sale of the offshore mines which helped the group to a R964m profit in the September quarter. Cash and cash equivalents stood at R425.4m as of September 30 with assets classified as 'held up for sale' totalling a further R634.5m. As DRDGOLD stated previously, these monies would be used to expand its surface operations and develop its uranium and exploration potential in South Africa. DRDGOLD appears to have all but abandoned its African (non-South African) exploration strategy. Growth & growing pains DRDGOLD and its joint venture partner Mintails SA, controlled by an Australian listed firm Mintails, said they hoped to produce 200kg/month of gold when a R400m project to retreat gold-bearing slimes from the Elsburg Tailings Complex begins production. The project was underway. The joint venture, called the Ergo Mining Joint Venture, is using equipment bought from AngloGold Ashanti's discontinued Ergo mine. It will begin at an initial rate of 1.25 million tonnes/month. A drilling programme of Blyvoor's tailings dam has defined 17.5 million in uranium resources. Gold resources at the dam also increased to 1.69 million oz. The group is also working on finding other uranium elsewhere among its resources. Elsewhere, however, DRDGOLD has hit its head against the regulators. Plans to extend an exploration programme for gold at its Argonaut project was banned by the South African government because the resources lie beneath residential areas in Johannesburg. Click Here to subscribe to our daily newsletter
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