The Tolukuma Times
Merry Christmas!
Issue Six December 2004
Exploration Drive
The major objective at Tolukuma at present is to investigate all opportunities to extend the life of the mine and deliver continued economic and employment opportunities for communities near Tolukuma and further afield.
This commitment to increase exploration and identify new gold ore bodies is evident in the mine's five drill rigs, including the new Boart Longyear underground rig, and the substantial drilling activity in and around the mine.
For years, geologists and explorers have believed that the Tolukuma area could host a major gold source, possibly equal to the Porgera mine.
While thoughts along those lines are exciting and bring a whole new dimension to future mine operations and management at TGM, the main focus at present is to make sure TGM continues to be fed adequate grade ore to consistently produce about 85,000 ounces of gold per year within the license provisions governing the mine?s operations.
Over the past 12 months, TGM has spent nearly K5 million on exploration and project expenditure. Regional exploration outside ML104 remains a key focus but of primary importance has been identifying new ore bodies within the mining area and more particularly within the existing
workings.
Since DRDGOLD took control of TGM in 2000, the company has remained confident that the life of the mine can be extended beyond its present four years.
When first commenced, the mine had an expected life of six years. The mine is now in its ninth year of operation, with four more definite years at present. Who?s to say how much longer the existing ore body can continue to generate
economic ore?
DRDGOLD Divisional Director Richard Johnson said the benefits of drilling were no more evident than through the recent results at Galbadi workings on 1435 level where, unexpectedly, part of the Zine vein structure appeared.
The results have been significant with visible gold being sighted in four drilling core samples.
International analysts visit Tolukuma
In November a number of senior stock broking analysts and investors from North America and Australia visited PNG to tour several mining projects including TGM, Lihir and Kainantu.
The TGM section of the tour included a full day presentation in POM followed by a mine tour the following day. The mine tour covered underground, open pit and drilling operations
including a visit to the low grade screening plant.
The tour was hosted by Richard Johnson and Ted Nohajer and was meticulously planned right down to providing the right sized gumboots for the visitors.
The aim of the visit was to raise the profile of TGM as one of PNG?s leading gold mining operations.
From the visit, the analysts will write reports for their clients advising them of the future
potential and management capabilities at TGM, which in turn will have an impact on whether people invest in DRDGOLD. Early indications are that the visitors were very impressed with all operations and the people they met at TGM.
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News Update from Richard Johnson
Divisional Director: Australasia
Tolukuma continually provides pleasant and stimulating surprises. Apart from the eager participation of the local workforce to become
more involved with all aspects of the mine, we are more than fortunate to have an orebody which is showing signs of providing a much longer life.
Most probably the biggest surprise so far has been the discovery of visible gold from four drill holes after drilling the Gulbadi vein. Unexpectedly the drilling results revealed we had intersected the Zine vein at least 200m
away from our predictions.
To many, this might seem fairly unexciting but to those of us interested in the geological structure within our mining lease, this is a real breakthrough.
It is far too early to start getting overly excited but I am pleased that if Tolukuma does unsurface a major resource, that we already have strong relationships with all communities and other stakeholders to plan for some major changes.
A longer life and possibly a bigger mine are issues which require close and ongoing communications with everyone associated to the mine. We need to remain committed to those relationships if we are all to seek benefits from any further mine expansion.
The release of the 2004 Tolukuma Social Responsibility Report was a major commitment by DRD and TGM to clearly state our intention to maintain open and responsible communication.
I want to thank all staff, their families, local and downstream communities for their input this year. It has been a challenging and rewarding year and I am sure we face many more exciting challenges as we continue to further develop Tolukuma.
I also want to take this opportunity to wish everyone a safe and Merry Christmas and a prosperous and Happy New Year.
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