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DRDGold extends Ergo gold mine life by 5 years after resource update

As of 2016-end, DRDGold Ltd.'s mineral reserves increased 66.6% to 3 million ounces, compared to the June 30, 2016, estimate, extending the operating life of the Ergo gold project by five years.

The mineral reserves increased to 312.6 million tonnes at 0.30 g/t of gold, and measured mineral resources increased 52.6% to 261.5 million tonnes at 0.28 g/t of gold.

As part of a pre-feasibility study to reassess the company's surface gold tailings, DRDGOLD noted that a capital expenditure of 507.7 million South African rand will be required to access the tailings dumps and dams on the East Rand, located to the east of the Ergo plant.

All required permits are in place, and no major upgrades are required to the current Ergo processing plant as well as the Brakpan/Withok tailings deposition facility, the company added.