AMN - SOUTH AFRICA: Far West recovery project underway

DRDGOLD Ltd has started phase 1 of the development of Far West Gold Recoveries in South Africa and gold production from the project is expected to kick off by the first quarter of 2019.

The first ground was broken by CEO Niël Pretorius at the project on Monday, August 6 and two days later the first 100 metres of the pipeline from the Driefontein 5 dump to the Driefontein 2 plant had been installed.

This comes within a week of DRDGOLD concluding its acquisition of Sibanye-Stillwater’s West Rand Tailings Retreatment Project, which will now be known as Far West Gold Recoveries. The acquisition increases DRD's gold reserves by 90%.

The first stage will see upgrading of the Driefontein 2 plant to process tailings from the Driefontein 5 dump at a monthly rate of between 400,000 and 600,000 tonnes and depositing the residue on the Driefontein 4 tailings dam.

In relation to the acquisition, Niël Pretorius said, “We have secured an R300 million revolving credit facility from a South African Financial Institution for phase 1, confirmed orders for most of the long-lead items, and expect to be in production in the first quarter of calendar year 2019.”

Sibanye-Stillwater now holds 38.05% of DRDGOLD and is entitled to exercise, within 24 months, an option for cash to increase its shareholding by up to 50.1%.

DRDGOLD is a South African gold producer and the world's leading producer of gold from tailings, which are the by-products left over from mining. Its technology allows recovery of up to 40% of the gold left in particle form.

www.drdgold.com