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Far West Gold Recoveries project, South Africa

17th May 2019

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Far West Gold Recoveries (FWGR) project (formerly West Rand Tailings Retreatment Project).

Location
Gauteng, South Africa.

Project Owner/s
DRDGold's acquisition of Sibanye's FWGR assets was finalised on July 31, 2018.

Following the successful implementation of the transaction between the two companies, Sibanye-Stillwater now owns 38.05% of the issued share capital of DRDGold.

Under the terms of the transaction, entered into in November 2017, Sibanye agreed to exchange selected surface gold processing assets and tailings 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
The FWGR 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 between 400 000 t a month and 600 000 t a month, depositing the residue on the Driefontein 4 tailings dam.

Phase 2 envisages the construction of a high-volume central processing plant capable of processing 1.2-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 be 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 FWGR 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.

Capital Expenditure
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.

Planned Start/End Date
Phase 1 is targeted for commissioning within 12 months of implementation of the acquisition.

Latest Developments
Final commissioning of Phase 1 is expected to be completed before the end of the current financial year.

DRDGold announced on December 4 last year that, just four months into construction of Phase 1 of the FWGR, commissioning was set to start on the pumping of reclaimed tailings into the carbon-in-leach circuit.

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.

 

 

 

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Edited by Creamer Media Reporter

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