HomeGoldDRDGold secures R108 million

DRDGold secures R108 million

Pipelines at
DRDGold’s Ergo
Johannesburg, South Africa — MININGREVIEW.COM — 07 October 2010 – South African gold miner DRDGold Limited (DRD) – a medium-sized gold producer with several operations and exploration activities in South Africa – says it has secured R108 million for the planned R300 million pipeline and plant expansion project at its Ergo operation.

Announcing this here in a statement to the JSE, the company said the funds would extend the life of its Crown surface operations significantly. It added that its 74%-owned subsidiary DRDGold South African Operations (DRDGold SA), had established a R500 million domestic medium term note programme under which it might from time to time issue notes.

The statement said DRDGold SA had successfully issued R108 million under the programme, the proceeds of which would go towards the capital requirements of the Crown/Ergo pipeline project.

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

The new 600 000tpa 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 provide the potential to extend Crown’s life by bringing to account further surface tailings resources on the western and central Witwatersrand,” DRDGold pointed out.