DRDGold secures R108m funds for expansion

[miningmx.com] — SOUTH African gold miner DRDGold (DRD) on Tuesday said it has secured R108m for its R300m pipeline and plant expansion project at its Ergo operation.

The funds would significantly extend the life of its Crown surface operations.

The company said its 74%-owned subsidiary DRDGold South African Operations (DRDGold SA) has established a R500m Domestic Medium Term Note Programme under which it may from time to time issue notes.

It said DRDGold SA has successfully issued R108m under the programme, the proceeds of which would go towards the capital requirements of the Crown/Ergo pipeline project.

Involving the construction of a 50-kilometre pipeline and a plant expansion, the project could boost to 600 million tonnes the potential resource contained in DRDGold’s gold mine tailings dumps.

The new 600 000 tonnes per annum capacity pipeline, scheduled for completion in August next year, will link two of the Crown operation’s plants – Crown and City Deep – in the west with Ergo in the east.

“This will provide Crown with increased tailings deposition capacity – a constraint in recent times – and thus the potential to extend Crown’s life by bringing to account further surface tailings resources on the western and central Witwatersrand,” DRDGold said in a statement to the JSE.