HARMONY Gold is to begin a pre-feasibility study in 2019 that will weigh expanding the group’s North West province mine, Kalgold, after initially testing to see whether the mine’s geology allowed for the merging of its current open pit operations.
Commenting on exploration activity underway since 2017, Harmony Gold CEO, Peter Steenkamp, said results had shown “… an expanded, robust mineralised system that extends beyond the current resource limits.
“Resource development drilling underway has outlined a mineralised zone that now comprises over 2.1 kilometres of strike and extends to in excess of 300 metres below surface,” he said. “The intersections show good continuity of geology and mineralisation and presents an exciting organic growth opportunity for Harmony,” he added.
Steenkamp unveiled a strategy in 2016, shortly after his appointment as CEO, of harvesting high-cost, troublesome gold mining operations, returning to previously abandoned ventures – such as Hidden Valley in Papua New Guinea – and embarking on gold production growth through acquisition. The latter was evidenced by Harmony’s $300m swoop on AngloGold Ashanti’s Moab Khotsong in October.
Harmony said today it has started a brownfield drill campaign in October to test the potential of merging its separate pit areas into a major mineralised system as well as to test the strike extensions of the mineralised zone north and south of the existing open pits.
“In particular, to develop a resource base that would support studies towards increased mining and processing rates at the open pit operation,” it said. Some 16,400 metres of drilling had been completed. “The resource growth outlook is positive. The system is open-ended along strike and remains open at depth,” the company said.
