Harmony Gold notes that the acquisition of its joint venture partner’s 50% share in Hidden Valley and the surrounding tenement package in Papua New Guinea is in line with the company’s overall aspiration to increase its annual production profile to 1.5 Moz within three years.
Harmony Gold plans to invest and develop stages 5 and 6 of the mine initially, mining approximately 1.4 Moz of gold and 27 Moz of silver over a period of seven years.
The company believes that Hidden Valley has the potential to contribute approximately 180 000 ozpa of gold to Harmony’s production profile, at an all-in sustaining cost of less than US$950/oz.
Harmony Gold’s CEO Peter Steenkamp comments: “Harmony has the skills and technology to successfully recommission one of PNG’s most recent mine developments.
Overview of the Hidden Valley mine
The Hidden Valley mine is an open pit gold and silver mine, jointly owned and managed as part of the joint venture between Harmony and Newcrest Mining.
The mine is situated in the highly prospective area of the Morobe province in Papua New Guinea, some 210 km northwest of Port Moresby.
The major gold and silver deposits of the Morobe goldfield and Hidden Valley are hosted in the Wau Graben.
The Hidden Valley-Kaveroi and Hamata pits, located approximately 6 km apart, are in operation.
Ore mined is also treated at the Hidden Valley processing plant.