Name of the Project
West Rand tailings retreatment project (WRTRP).

Location
Gauteng, South Africa.

Client
Following the successful implementation of the transaction between the two companies, Sibanye-Stillwater now owns 38.05% of the issued share capital of DRDGold, which is currently worth R895.7-million.

Under the terms of the transaction, entered into in November 2017, Sibanye agreed to exchange selected surface gold processing assets and tailing storage facilities (TSFs) for shares in DRDGold.

Sibanye also has an option to subscribe for further shares in DRDGold, enabling it to potentially hold up to 50.1% of DRDGold, within 24 months, at a 10% discount.

Project Description
If the transaction between Sibanye-Stilwater and DRDGold is finalised, the WRTRP will be rolled out in a phased approach.

According to DRDGold, the first phase, including early-stage production, design and planning over a 24-month period, will involve upgrading the Driefontein 2 and 3 plants to process tailings from the Driefontein 5 dump at a rate of between 40 000 t/m and 60 000 t/m, depositing the residue on the Driefontein 4 tailings dam.

Phase 2 envisages the construction of a high-volume central processing plant capable of processing at least one-million tonnes a month and the development of a new regional TSFs.

In this phase, reclamation will initially be from the Driefontein 3, Libanon and Kloof 1 dumps, and then from the Ventersdorp North and South dumps. The scale of the infrastructure established in this phase will allow for reclamation from other sources in the region.

As an alternative to Phase 2, or if Phase 2 is delayed, Phase 1 can extended by blending in material from the Driefontein 3 dump. Envisaged is the treatment of 77.7-million tonnes from the Driefontein 3 and 5 dumps, and a further upgrade of the Driefontein 4 tailings dam.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
DRDGold estimates the net present value (NPV) of the entire WRTRP at R2.1-billion.

The estimated NPV of the alternative option is R2.7-billion, assuming a capital outlay of R397 million in addition to the initial Phase 1 capital outlay.

Value
Phase 1 will require a “modest” upfront capital investment of R288-million.

The cost of Phase 2 will depend on its size, lining requirements and the technology used, which could be between R400-million and R800-million.

The alternative option would require a capital outlay of about R397-million.

Duration
Phase 1 is targeted for commissioning within 12 months of implementation of the acquisition.

Latest Developments
DRDGold has confirmed that its acquisition of Sibanye's WRTRP assets has been finalised.

The acquisition is key to DRDGold’s growth strategy, increasing the company’s gold reserves by 90%.

“The way is now clear for us to expedite Phase 1 of our phased plan for the development of WRTRP, to be known going forward as Far West Gold Recoveries,” DRDGold CEO Niël Pretorius has said.

DRDGold has secured a R300-million revolving credit facility from a South African financial institution for Phase 1.

The company has also confirmed orders for most of the long-lead items, and expects to be in production in the first quarter of 2019.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
R&A Strategic Communications James Duncan on behalf of DRDGold, tel +27 11 880 3924, fax +27 11 880 or email james@rasc.co.za.