South African gold-mining group Harmony has been granted a licence to develop a mine at Papua New Guinea’s Hidden Valley project.
The licence was granted after a comprehensive licensing process, including intensive reviews of all of Harmony’s environmental plans under Papua New Guinea’s newly enacted, strict environmental legislation.
Harmony CEO Bernard Swanepoel said that feasibility studies conducted by the group corroborate a robust project that is anticipated to produce on average more than 300 000 ounces of gold and 4,5 moz of silver a year from a proven reserve of 1,88 moz of gold and 25,5 moz of silver.
Harmony currently produces approximately 300 000 oz of gold a year from its Australian operations.
“Over and above the proven reserves which formed the basis of our feasibility study and decision to proceed with the project, the mine life will be extended by extensive inferred resources in the immediate area of the mine,” said Swanepoel.
“We also control many exciting prospects in this well-mineralised belt, which will be processed through the Hidden Valley plant.”
Swanepoel says he anticipates construction of an open pit mine to start in mid-2005 and that the first gold will be poured in early 2007.
“We expect our cash operating costs to be approximately $224 per ounce.”
Harmony holds the rights to develop and mine the Hidden Valley project through its wholly owned PNG subsidiary. Nearby, are Harmony’s world-class Wafi and Golpu projects, which are currently the subject of a pre-feasibility study. — I-Net Bridge