[miningmx.com] — HARMONY Gold Mining Companysaid on Friday it had obtained approval to start developing its Wafi-Golpu gold project in Papua New Guinea and will spend $150m on the pre-feasibility study.
Harmony has said that based on drilling results, the Wafi-Golpu project could produce in excess of a previously estimated 700,000 ounces and even reach 1 million ounces per year.
Harmony, which is developing the project together with Australia’s Newcrest Mining Ltd, aims to complete the study at Wafi-Golpu by 2011 or early 2012. The study will include the construction of some infrastructure.
Harmony, Africa’s third-largest gold miner, has said the project is expected to produce more than 100,000 tonnes of copper.
Harmony said a concept study completed in August showed a robust business case for the project.
“The latest intercepts, together with the very positive outcome of the concept study emphasise the potential for the joint venture to establish another high quality, world-class operation in Papua New Guinea,” Harmony CEO Graham Briggs said in a statement.
Harmony said the Wafi-Golpu exploration target had been upgraded to 30 million ounces.
The company has said it plans to spend $50m a year on explorations for the next two years.
