ERPM Extensions 1 and 2

Exploration and project development continue to enhance DRDGOLD’s strategy to extend and replace existing production ounces.

Unlocking value

In April 2011 DRDGOLD’s board of directors approved a R37 million three-year exploration project to further define the resources of the ERPM Exts 1 and 2 exploration tenements which cover 6 752ha. ERPM is a 21 million ounce (Moz) gold resource asset adjacent to old mine workings that is not recognised in the company's market valuation.

ERPM Ext 1

DRDGOLD has a prospecting right over 1 252ha of Sallies mine, which is adjacent to ERPM and is known as ERPM Extension (Ext) 1. At the end of FY2012, the estimated total resource for Ext 1 was 36.5Mt at 8.5g/t (9.97Moz). The regional geology of the area indicates that there will be a strike change due to faulting associated with an east-west trending sinistral tear fault. The anticipated change in the geological structure and hence payshoot orientation will be confirmed during the prospecting phases.

ERPM Ext 2

In 2007 ERPM’s prospecting right over ERPM Ext 1 was extended eastwards into the Rooikraal/Withok area, incorporating the southern section of the old Van Dyk mining lease area and a small portion of Sallies. Known as ERPM Ext 2, the additional area is 5 500ha in size and is recognised as one of the largest virtually unexplored areas on the East Rand. The reef is at a depth of between 1.8km and 3.0km below surface.

The resource for ERPM Ext 2 was estimated in 2007 by independent consultants Camden Geoserve and Minxcon, audited by Coffey Mining. At the end of FY2012, an inferred resource of 28.6Mt at 9.06g/t (8.32Moz) at a stope width of 125cm was declared.

The above resource estimate only includes the main conglomerate formation (Composite/Nigel Reef) and excludes the Kimberley Reef at a depth of between 800 and 1 100 metres below surface. The prospecting activities will include evaluation of a possible gold target of between 0.7 and 1Moz of gold contained in the Kimberley Reef.

Regional plan showing ERPM mining lease and adjoining ERPM Extensions 1 and 2

ERPM [Geographical map]