ERPM is situated on the Witwatersrand Basin near the town of Boksburg, 25km to the east of Johannesburg. It was established as an underground mining operation more than 100 years ago. Underground mining was suspended in October 2008 following the cessation of the pumping of underground water for safety reasons.
ERPM continues as a surface retreatment operation. It holds 65% of ErgoGold through the contribution of its Elsburg Tailings Complex. ERPM’s wholly owned Cason surface retreatment operation is managed by Crown which processes 1.9Mt of surface material through the Knights plant.
With the closure of the underground operations for eight months of 2009, gold production dropped from 79 479 ounces in 2008 to 34 174 ounces.
All exploration activities have been suspended.
| 12 months to 30 Jun 2009 | 12 months to 30 Jun 2008 | ||
|---|---|---|---|
| Ore milled | |||
| Underground | t000 | 184 | 303 |
| Surface | t000 | 1 430 | 1 859 |
| Total | t000 | 1 614 | 2 162 |
| Yield | |||
| Underground | g/t | 3.20 | 5.83 |
| Surface | g/t | 0.33 | 0.38 |
| Total | g/t | 0.66 | 1.14 |
| Gold produced | |||
| Underground | oz | 18 935 | 56 812 |
| kg | 589 | 1 767 | |
| Surface | oz | 15 239 | 22 667 |
| kg | 474 | 705 | |
| Total | oz | 34 174 | 79 479 |
| kg | 1 063 | 2 472 | |
| Cash operating costs | |||
| Underground | US$ per oz | 1 287 | 812 |
| ZAR per kg | 361 141 | 190 938 | |
| ZAR per tonne | 1 156 | 1 113 | |
| Surface | US$ per oz | 778 | 588 |
| ZAR per kg | 222 430 | 138 250 | |
| ZAR per tonne | 74 | 52 | |
| Total | US$ per oz | 1 060 | 748 |
| ZAR per kg | 299 289 | 175 912 | |
| ZAR per tonne | 197 | 201 | |
| Gold and silver revenue | (US$ million) | 28.4 | n/a |
| (ZAR million) | 247.9 | n/a | |
| Cash operating (loss)/profit | US$ million | (7.9) | 4.4 |
| ZAR million | (70.2) | 32.2 | |
| Capital expenditure (net) | US$ million | 2.8 | 4.1 |
| ZAR million | 25.9 | 30.1 | |