November

Durban Deep's 2001

Papua New Guinea gold play

By Brendan Ryan

DRD recently took some analysts and media to their Tolukuma operation in Papua New Guinea.
Left: The group travelled by helicopter, the only mode of transport to and from the mine.
Right: The harbour at Port Moresby, the main port of call for visitors to the island.

Maybe it was the jet lag but Tolukuma Gold Mine chief geologist Brett Duck's blanketed by dense forest nurtured by the
description of Papua New Guinea (PNG) as "elephant country" really amused me. rainfall which averages three metres annually.
He is, of course, correct. "If you want to hunt elephants you have to look in elephant There are no roads. Everything Tolukuma
country" is classic exploration geology philosophy. If you want to make a major requires is flown in by helicopter - a hulking
strike you need to look in the parts of the world where those kind of deposits are Russian Mil 8 - which is chartered at US dollar
most likely to be found. So far, four extensive gold and base metal finds have been rates and which easily uplifted the entire party
made in PNG making it indisputably "elephant country." But this image popped of visiting Australian analysts, South African
unbidden into my mind of an African Elephant taking a long, disbelieving look journalists and DRD/Tolukuma executives.
at the PNG topography. Tolukuma sits just one hundred kilometres inland from Tolukuma has just signed an A$4,2m loan
PNG's seaside capital of Port Moresby but at an altitude of 1600m. The land soars agreement to pay for the equipment needed
from the narrow coastal plain to reach that height in a series of jagged, abrupt to push its gold output from the 64,000oz just
ridges sloping at angles between 45 and 70 degrees. Much of the ground is produced in the year to June to around
116,000oz/year by financial 2005 but Duck,
like all good "geos", is looking longer-term.

Tolukuma
at a glance
• Reserves of 0.8 million oz
He reckons decisions by various mining majors
- most recently BHP/Billiton - to pull out of
PNG have put DRD in a powerful position
regarding future exploration developments
provided management allocates the necessary
• Resources of 2.4 million oz
funds. And, of course, continues to employ the
• An estimated mine life of more than 5 years kind of geos prepared to work in what has to
be one of the world's most difficult
• Annual production of some 120 000 oz
environments. This includes Port Moresby
• Costs (based on Q1 F2002 figures) of US$189/oz which enjoys a reputation for violent crime
• Highly encouraging grades at both the Saki & Kunda prospects that makes Johannesburg sound safe
by comparison.
 DRD helps American relief effort DRD in November
2001
New York
Durban Roodepoort DeepLtd lit up Times
Auction for America is a joint effort of
Square in New York with its first quarter results
eBay and Nasdaq to raise funds for those last month, as it took these to our US
affected by the September 11 attacks shareholders. With two thirds of our shares now
in the United States. DRD is pleased to in the hands of ADR holders, and three quarters
be one of the first companies to of our turnover being transacted on NASDAQ,
participate, and has contributed a 1- the U.S markets are very important to us. It was
largely in recognition of this, that we decided
kilogram gold bar in an effort to lend
to donate a special commemorative DRD gold
assistance to the families of the victims
bar to the disaster relief fund for the benefit of
of the tragedy. the victims’ families. I am pleased to be able to
report that this was auctioned on-line for a
Wellesley-Wood acknowledges that healthy premium over the gold content.
South Africa is DRD’s home market, but
“we rely heavily on Nasdaq for our Nevertheless, passing Ground Zero, just outside
the studio in Lower Manhattan where we had
liquidity and trading, and the Twin
presented our First Quarter results, was a
Towers tragedy has shocked us all. I
sobering moment. The size of the gap created
hope that what we have done makes a by the missing towers in both a physical and
difference to the lives of people affected spiritual sense is truly enormous. Yet, just a few
by the disaster, and that other blocks away the vibrancy of the marketplace is
companies and individuals will follow already returning with trading volumes and
our example,” he said. prices beginning to creep up. The scar may be
beginning to heal already.

Proceeds from the sale of the goods

But the world that we live in will have changed
and services contributed goes to the forever and the talk is of what “new normal’ will
benefit of organisations like the mean for us all.
September 11 Fund, The New York State
World Trade Centre Relief Fund, the Twin The world has certainly changed for several of
Towers Fund and the American Red the more ardent worshippers at the Temple of
Cross. The bar donated by DRD fetched Mammon in Wall St. Job losses in investment
US$10 534, bid by Alan Aliabadi from banks continue to make headlines and the
bullion bankers have certainly been no
Scottsdale, Arizona.
exception. Amazing as it may seem but several
banks have recently concluded that there is no
For more information on Auction for longer huge profits to be made out of the gold
America or if you would like to derivatives business. Banks are less willing to
participate, visit www.ebay.com or lend long, and producers less willing to hedge.
www.auctionforamerica.org Surely this end to tomorrow’s supply in today’s
price must be good news for spot gold?

Changing faces HOORAY for redundant bullion bankers. HIP HIP

HOORAY for unhedged gold miners.
The investor brief has undergone a transformation of sorts, with the look being
redesigned. This is part of our ongoing commitment to keeping the brief up-to- I am pleased to be able to say that, due to our
date and dynamic. Please let us have your thoughts on the new look by emailing recently improved financial performance, DRD
[email protected]. Enjoy! has decided to invest all its new found cash
flow into reducing its hedge book further.
Looking at current projections, the company
could be completely unhedged by June next
year. Not a moment too soon you may say. I
D URBAN R OODEPOORT D EEP, L IMITED have developed an allergic reaction to
DRD Building • 45 Empire Road • Parktown • Johannesburg hedging while in the States – and I don’t
PO Box 390 • Maraisburg 1700 • Tel: +27 (11) 482 4968 • www.durbans.com mind sharing it with anyone!
WANT A QUICK RESPONSE TO YOUR QUESTIONS ABOUT DRD? Email: [email protected]
Certain statements contained in this document contain certain forward–looking statements regarding Durban Roodepoort Deep, Limited’s operations, economic performance and financial condition. This includes those concerning the economic outlook of
Mark Wellesley–Wood
the gold mining industry, expectations regarding the price of gold and production, the completion and commencement of commercial operations of certain of Durban Roodepoort Deep’s exploration and production projects, its liquidity, and capital resources
and expenditure. Although Durban Roodepoort Deep, Limited is of the opinion that the expectations reflected in such forward–looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. Actual results
could differ materially from those set out in the forward–looking statements. Among other factors, this could be as a result of changes in economic and market conditions, the success of business and operating initiatives, changes in the regulatory environment
and other government actions, fluctuations in the price of gold and exchange rates, and business and operational risk management.