Harmony Gold reports exploration success at Kili Teke prospect in Papua New Guinea

14 April 2016 (Last Updated April 14th, 2016 18:30)

South African-based Harmony Gold Mining Company has reported ‘continuing exploration success’ at its 100% held Kili Teke prospect in the Hela province of Papua New Guinea (PNG).

South African-based Harmony Gold Mining Company has reported 'continuing exploration success' at its 100% held Kili Teke prospect in the Hela province of Papua New Guinea (PNG).

The company announced maiden mineral resource estimate for Kili Teke in November 2015, which showed 128 million tonnes at 0.4% copper and 0.3 grams per tonne (g/t) gold.

This deposit contains two main areas of higher-grade quartz stockwork related mineralisation.

Drilling of 10 holes of 6,820m were completed since the release of mineral resource estimate in November.

"The latest drilling results support our belief that Kili Teke has the potential to develop into a major new porphyry copper-gold system."

The drilling focused on potential to expand these zones along strike and down dip, and indicated encouraging results, the company claimed.

Most cases indicated more than 0.5% copper and 0.4 g/t gold.

Harmony Gold Mining Company chief executive officer Peter Steenkamp said: "It is a rare phenomenon, in this day and age, to drill a 584 metre borehole and achieve grades averaging over 0.5% copper and 0.35g/t gold from surface.

"Massive sulphide lodes averaging 13% copper and 11.4g/t gold are even rarer, which is what we are seeing from our Kili Teke drill results."

Drilling at the prospect continues with two drill rigs. A revised mineral resource estimate including the latest drill results is planned to be released in the September 2016 quarter.

Peter added: "The latest drilling results support our belief that Kili Teke has the potential to develop into a major new porphyry copper-gold system.

"Developing a portfolio of world class copper-gold assets in PNG, replacing ounces at a discovery cost of less than US$10 per gold equivalent ounce, creates excellent long-term value for our shareholders."