Name: Masimong mine.

Location: The Masimong mine is located in the Free State, South Africa, about 260 km from Johannesburg.

Holding and Controlling Company: Harmony Gold Mining.

Brief Description: The Masimong complex comprises an operating shaft (Shaft 5), and a second shaft (Shaft 4), which, although closed for mining, is used for ventilation, pumping and as a second outlet.

The mine is a single-shaft operation which exploits the Basal and B reefs between 1 650 m and 2 010 m below surface.

The mine has a life expectancy of four years.

Brief History: Masimong was originally known as Erfdeel in 1985, when it was being sunk by Anglo American’s gold and uranium division.

Harmony bought Saaiplaas 3 in March 1997, from Anglo American’s gold and uranium division.

The two Erfdeel shafts were renamed Saaiplaas 4 and 5 in September 1998.

Saaiplaas 3 closed in early in 1998 following the collapse of the gold price. However, in September 1998 an opportunity arose to reopen the shaft complex. The operation was renamed Masimong and comprises the Masimong 4 (formerly Saaiplaas 4) and Masimong 5 (formerly Saaiplaas 5) shafts.

Products: Gold and uranium.

Geology/Mineralisation: Mining is conducted in a structurally complex zone between the north–south-trending faults – the De Bron/Homestead fault in the west and the Saaiplaas fault in the east.

The orebody has been subjected to severe deformation and contains many folds (anticlines and synclines), as well as an abundance of smaller faults. The dip of the reef bands is very variable – from 45° to the east, adjacent to the western side of the lease, to less than 2° in parts of the southern area.

Production is hosted within the Basal and B reefs.

Reserves: Total proven and probable reserves as at June 30, 2017, were estimated at 2.4-million tonnes grading 4.7 g/t gold.

Resources: Total measured, indicated and inferred mineral resources for gold as at June 30, 2017, were estimated at 4.1-million tonnes grading 7.36 g/t gold.

Total indicated and inferred mineral resources for uranium as at June 30, 2017, were estimated at 4.8-million tonnes grading 0.18 kg/t uranium.

Mining Method: Masimong mines at moderate depths of between 1 650 m and 2 010 m below surface. The reef horizon is accessed by conventional grid development.

The economic reef horizons extracted are the Basal and B reefs. Basal reef accounts for about 80% of the on-reef production profile, and is mined on open and undercut operations, depending on whether the reef is overlain by shale.

B reef mining constitutes the remaining 20% of the on-reef production profile. It is located about 120 m stratigraphically above the Basal reef, necessitating separate infrastructure (i.e. footwall development).

Major Infrastructure and Equipment: Masimong has a well-established network of paved roads and railway lines.

The mine uses a water pipeline and electrical lines to supply and deliver the materials required and to transport the ore hoisted to the central gold plant for treatment.

The underground infrastructure is that of a mature, low-cost mining operation approaching the end of its economic life span.

Ore mined is transported by rail for processing at the Harmony 1 carbon-in-pulp plant, located about 12 km from the shaft.

Prospects: The good progress made with high-grade on-reef development has resulted in an increase in the reserves available for mining, with the life-of-mine having increased from three to four years, despite depletion.

Contact: Harmony investor relations manager Lauren Fourie.

Contact Details:
Harmony
Cell +27 71 607 1498
Tel +27 71 607 1813
Email Lauren.Fourie@Harmony.co.za
Website https://www.harmony.co.za