Name and Location
Golpu gold project, Morobe province, Papua New Guinea.

Client
Harmony Gold Mining.

Project Description
The Golpu project is expected to comprise at least two stages.

The updated prefeasibility study (PFS) for Stage 1 of Golpu recommends two block caves accessing the high-value core of the Golpu orebody. During Stage 1, 146-million tonnes will be extracted at an average grade of 1.02 g/t of gold and 1.6% copper. The proposed start-up production rate is three-million tonnes a year, mined from Block Cave 1 (BC1), and six-million tonnes a year, mined from the deeper Block Cave 2 (BC2).

BC1 is about 425 m below surface and will extract 12-million tonnes of cave ore a year over a five-year period at a peak production rate of three-million tonnes a year. During caving operations, ore from the block cave draw points will be delivered by diesel load-haul dump units to an underground jaw crusher and then conveyed to surface.

BC2 is situated about 1 050 m below surface and will be mined at a rate of six-million tonnes a year to extract 134-million tonnes of cave ore over a 23-year period.

Access to the orebody is envisioned using twin declines developed from the Watut River flats. During the production phase, it is envisaged that an incline conveyor will be installed in one of the declines to transport production ore to the process plant, located near the portal; the other incline will be used for ventilation.

The two proposed block caves in Stage 1 are designed to access about 30% of the tonnes, which contain about 40% of the gold and copper of the Golpu reserve. The mining and processing infrastructure will then be used to exploit the remaining 70% of the tonnes, which contain about 60% of the gold and copper of the Golpu reserve.

Stage 2 will focus on Block Cave 3 (BC3).

Net Present Value/Internal Rate of Return
Stage 1 of the project has a net present value, at a discount rate of 8.58%, of $1.1-billion and an internal rate of return of 17%.

Value
The Stage 1 project capital on a 100% basis is estimated at $2.3-billion.

Duration
First production from BC1 is forecast for 2020, followed by the deeper BC2, reaching steady state from 2024.

Latest Developments
Following approval of the PFS prepared for Golpu, WorleyParsons has started with the feasibility-study stage. Adopting an innovative approach, the PFS has divided the project into two stages. The first stage targets the upper, higher-value portion of the orebody, which is expected to have a 27-year mine life, with the second stage encompassing the remaining ore reserve.

WorleyParsons’ scope for 2015 comprises a feasibility study for Stage 1, a PFS for Stage 2 and early works engineering for Stage 1.

The Golpu project feasibility is working on technical, procurement and operational plans to create a long-life, world-class mine in the Morobe province.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Harmony Gold Mining, tel +27 11 411 2000, fax +27 11 692 3879 or email corporate@harmony.co.za.