Media releases

Offshore operations continue to shine

DRD today reported a continued strong performance from its offshore operations for the quarter ended 30 September 2004.


In line with practice in Australia and the United States, DRDGOLD will henceforth report as follows:

Quarters 1 & 3:
production statistics, operational performance and exploration results

Quarters 2 & 4:
as above, with either interim or final financial results, in US GAAP, which is DRDGOLD’s primary reporting convention, and SA GAAP, in accordance with the listing requirements of the JSE Securities Exchange South Africa

SA operational restructuring completed

Johannesburg, South Africa. 27 October 2004. South African-based Durban Roodepoort Deep, Limited (JSE: DUR; NASDAQ: DROOY; ASX: DRD; POM SoX: DRD) today reported a continued strong performance from its offshore operations for the quarter ended 30 September 2004.

Attributable gold production from DRDGOLD’s Australasian interests increased by 9% on the previous quarter to 77 387 oz (2 407 kg), mainly as a result of the the inclusion of its 45.33% share of Emperor Mines Limited’s production from August 2004. Offshore production increased from 31% to 35% of the Group’s total.

Exploration, based around the Company’s wholly owned Tolukuma operation in Papua New Guinea, has been increased, with a focus on near-mine exploration, and encouraging drill data has been collected during the past quarter. Surface diamond drilling of the Zine Vein south of the Zine pit has been completed and a resource calculation has been undertaken. A feasibility study looking at open cast mining of this vein is under way.

Group gold production was slightly down quarter on quarter at 220 524 oz (6 859 kg), due mainly to lower production from the South African operations, specifically Blyvooruitzicht (Blyvoor), where a 60-day review was completed, resulting in a slowdown in production.

Group unit costs were slightly higher as a direct result of lower production in South Africa but the second quarter’s costs are expected to be in line with those of the June quarter now that restructuring has been completed.

The average gold price received for the quarter under review was US$403 per ounce (R82 785 per kilogram) compared to US$395 per ounce (R85 804 per kilogram) the previous quarter.


Although ore milled at Porgera was slightly lower than the previous quarter at 288 000 tons, improved grade (5.20 g/t) assisted with continued good gold production performance.

At Tolukuma, an 18-month run of production exceeding 7 000 ounces per month was broken in August when the mine fell slightly short of its target. Production during the quarter was hampered by lower grades mined from the Gulbadi vein.

A feasibility study, based on infill drilling, is nearing completion for a proposed extension of the Zine open pit, to the south of the first pit finished earlier this year.

Emperor, in its report for the quarter, reported that “ gold won…decreased by 20% to 27 632 oz…. Gold shipped, however, increased by 3% to 35 169 oz.”


At Blyvoor, following the retrenchment of 1 619 employees, a six-month plan is in place, aimed at returning the mine to breakeven. The basis of the plan is to reduce mining of areas serviced by expensive infrastructure and to focus on areas where improved efficiencies will result.

Grade from underground has increased from 6.59 g/t to 6.74 g/t.

Mining volumes at Nos 4 and 6 shafts have been reduced, leaving No 5 shaft as the main production unit. Broken ore sampling has been introduced to reduce dilution and improve mining discipline.

The supervisory structure has been changed to incorporate production supervisors who will take charge of the stopes, the overall objective being to improve discipline, increase efficiencies and reduce supervisor costs.

The re-processing of surface slimes is showing improvement following a shift in the recovery of material from Dam 4 to Dam 5. Metallurgical improvements have resulted in an increase in recoveries by 53%. Other sources of surface production are being investigated to utilize excess capacity in the gold plant.

Phase 2 and 3 of the current plan is aimed at identifying the medium- to long-term potential of re-equipping the No 2A sub-shaft system to access previously abandoned resources. Implementation will depend on the successful turnaround of the existing operation.

At the North West Operations, the Buffels Nos 9 and 11 shafts have been kept in production. The main focus, however, is on improving recovered grade and so the balance of mining will move to the higher grade Nos 2, 4 and 5 shafts, with only selective mining taking place at Nos 6, 7 and 8 shafts.

All production from underground is now treated at the South plant and a treatment rate of 125 00 tonnes per month is planned for the rest of the financial year.

During the quarter the North plant was re-commissioned and fed with screened waste rock dump material. This will continue until such time that the current source of material is depleted, with the additional possibility of processing alternative surface source material. This project generated 2 572 ounces (80 kilograms) of gold during the month of September.

As reported in the previous quarter, the ERPM operation has undergone extensive restructuring. The outcome of the restructuring program was for the ERPM underground operations to be placed on controlled closure program ending in March 2005. Following the retrenchment of 806 employees in August 2004, the mine has achieved a significant reduction in costs coupled with improved productivity. As a result, the mine has been restored to profitability, and the original planned closure of the underground section has been postponed. Progress in the quarter under review has been very satisfactory, particularly the 55% improvement in productivity. Productivity, measured in terms of metres face advance per employee, had reached a new record of 11.8 metres in September 2004 compared with a low of 7.6 metres in March 2004. The focus now is on the mine’s Far East Vertical (FEV) and South East Vertical (SEV) shafts.

The plan is to insert up to eight high-pressure concrete ‘plugs’ to isolate the FEV and SEV shafts from the rest of the mine, allowing the rest of the mine to fill with water. Discussions with Government are currently under way in order to secure both its financial assistance for the plugs and the re-institution of the State water pumping subsidy which was suspended in April this year.

At Crown surface, production was steady. A number of new surface sources to complement the operation’s life of mine profile are being investigated.


South Africa
Investor and Media Relations
Ilja Graulich, DRDGOLD
+27 11 381 7826 (office)
+27 83 604 0820 (mobile)

James Duncan, Russell & Associates
+27 11 880 3924 (office)
+27 82 892 8052 (mobile)

North America
Investor Relations
Susan Borinelli, Breakstone & Ruth International
+1 646-536-7018 (office)
+1 917-570-8421 (mobile)

Media Relations
Barbara Cano, Breakstone & Ruth International
+1 646-536-7002 (office)
+1 347-423-5859 (mobile)

Investor and Media Relations
Paul Downie, Porter Novelli
+61 893 861 233 (office)
+61 414 947 129 (mobile)

United Kingdom/Europe
Investor and Media Relations
Phil Dexter, St James's Corporate Services
+44 20 7499 3916 (office)
+44 779 863 4398

DRDGOLD is the world’s 9th largest gold producer, with mines in South Africa as well as Australasia, a key target for growth. The company has a track record of success in extending the lives of older mines safely and profitably. For fiscal year 2004, DRDGOLD produced 905 000 ounces of gold, up from under 100 000 ounces a year in 1997, when current operations were amalgamated.

DRDGOLD has primary listings on the Johannesburg (JSE:DRD) and Australian (ASX:DRD) stock exchanges and secondary listings on NASDAQ (DROOY), the London and Port Moresby stock exchanges and the Paris and Brussels Bourses. Its shares are also traded on the regulated unofficial market of the Frankfurt Stock Exchange and the Berlin OTC Market.

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Some of the information in this media release may contain projections or other forward looking statements regarding future events or other future financial performance. We wish to caution you that these statements are only projections and those actual events or results may differ materially. In reviewing, please refer to the documents that we file from time to time with the SEC, specifically to our annual report on Form 20-F. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward looking statements, including such risks as difficulties in being a marginal producer of gold, changes and reliability of ore reserve estimates, gold price volatility, currency fluctuations, problems in the integration of operations, exploration and mining risks and a variety of risks described in our annual report on Form 20-F. We undertake no obligation to publicly release results of any of these forward looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results.

Cautionary note to US investors: the United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use the term "resources" (which includes "measured", "indicated", and "inferred") in our media releases, which the SEC guidelines strictly prohibit us from including in our filing with the SEC. US investors are urged to consider closely the disclosure in our Form 20-F, File No. 0-28800, available from us at 45 Empire Road, Parktown, Johannesburg, 2193, South Africa. You can also obtain this form from the SEC website at

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