Slide 1: Kalgold Greenstone Exploration
KALGOLD GREENSTONE EXPLORATION HARMONY’S EXPLORATION FOCUS UNLOCKS VALUE 6 June 2018 Mike Humphries
Slide 2: A Distinctive Exploration Opportunity
2 A DISTINCTIVE EXPLORATION OPPORTUNITY Exciting, underexplored Greenstone Belt exploration opportunity – initial drill results very encouraging © Harmony | Kalgold Greenstone exploration Potential to unlock significant value – short to medium term and low cost, quality organic growth option E
Slide 3: Kalgold – A Quality Organic Growth Prospect
3 KALGOLD – A QUALITY ORGANIC GROWTH PROSPECT Open pit operation, located in the North-West province − FY17 production approx. 40 000oz Area below and surrounding the existing operation presents a brownfields exploration prospect − Extensive drilling program planned © Harmony | Kalgold Greenston
Slide 4: Regional Context: Greenstone Gold and Geology at Kalgold
REGIONAL CONTEXT: GREENSTONE GOLD AND GEOLOGY AT KALGOLD
Slide 5: Southern African Shield and Greenstone Gold
5 SOUTHERN AFRICAN SHIELD AND GREENSTONE GOLD Contained Au (Moz) Granite-greenstone terrains of the >50 Southern African shield underexplored: 10 to 50 − Zimbabwe craton 5 to 50 − Kaapvaal craton >5 Mineral Occurrence Au Witwaterstrand Excellent exploration opportunity for Basin Harmony: Greenst
Slide 6: Greenstone Belt Potential
6 GREENSTONE BELT POTENTIAL Yandal Belt (Eastern Goldfields region of Australia) Yandal 1990: little known, obscure greenstone belt Jundee Belt 10 Moz Au − shallow workings and production <50Koz from Darlot Over 12 Moz of gold was discovered over a 10 year period − Bronzwing (1992) − Jundee (199
Slide 7: Increasing Volumes - The Opportunity for Kalgold
7 INCREASING VOLUMES - THE OPPORTUNITY FOR KALGOLD Gruyere: Siguiri: Kalgold: Resource: 150 Mt @ 1.29 g/t (6.3 Moz) Resource: 258 Mt @ 0.87 g/t (7.3 Moz) Resource: 41 Mt @ 0.95 g/t (1.2 Moz) Reserve: 97 Mt @ 1.2 g/t (3.7 Moz) Reserve: 87 Mt @ 0.8 g/t (3.7 Moz) Reserve: 26.6 Mt @ 1.1 g/t (930 Koz) St
Slide 8: Kraaipan Greenstone Belt
8 KRAAIPAN GREENSTONE BELT Located 276 km west of Johannesburg Harmony holds 448 square kilometres of granted tenure Mahikeng Botswana Northern Farms Block Madibe Madibe sector Madibe Block Mahikeng © Harmony | Kalgold Greenstone exploration Madibe Kalgold Kalgold Johannesburg Vryhof Stella Nort
Slide 9: Kraaipan Greenstone Belt continued
9 KRAAIPAN GREENSTONE Belt continued Little known, neglected greenstone belt: − Extensive Kalahari sand cover − Sparse outcrop, few gold occurrences − Historically insignificant gold production No complete regional stratigraphic succession: − Belt location guided largely on aeromagnetic and grav
Slide 10: Greenstone Geology at Kalgold
10 GREENSTONE GEOLOGY AT KALGOLD A Zone pit looking north; sequence dips ~70o to the east West East Western Eastern Limb © Harmony | Kalgold Greenstone exploration Fe rich Limb BIF lenses Footwall mafic schist Mine host sequence Hangingwall metasediments − Meta-quartz dolerite − Meta-laminated chemi
Slide 11: Mineralisation and Alteration Style at Kalgold
11 MINERALISATION AND ALTERATION STYLE AT KALGOLD KG012 Two main gold mineralisation events / styles recognised: 1. Pyrrhotite replacement of cherty BIF associated with early “ladder veins” − Sulphides: Pyrrhotite >>pyrite>>chalcopyrite. − Alteration: Stilpnomelaine, chlorite, magnetite, carbonates
Slide 12: Sulphidised and Mineralised BIF
12 SULPHIDISED AND MINERALISED BIF Typical sulphide replacement assemblage: Pyrrhotite>>Pyrite>>Chalcopyrite Massive pyrrhotite bodies are magnetic and conductive: mineralisation style lends itself to direct detection by electromagnetic (EM) geophysical surveys KG012: Interval 353.55 – 353.75m •
Slide 13: The Journey Thus Far
THE JOURNEY THUS FAR
Slide 14: Work Program Update
14 WORK PROGRAM UPDATE Windmill Pit KG053 Project initiated June 2017, targeting: KG051 − new mining areas for operational flexibility KG054 A’ − delineate higher grade ore KG010 WDD017 KG037 KG034 B’ − develop a large, robust, resource footprint that WDD011 B supports re-optimisation and expansio
Slide 15: Schematic Longsection Showing Eastern Limb Intercepts (AA')
15 SCHEMATIC LONGSECTION SHOWING EASTERN LIMB INTERCEPTS (AA’) A A’ South North 2017 life of mine pit shell Watertank & current resource limit (brown) North Extension 1243mAMSL Overburden Watertank Pit Oxidation base 42m / A Zone Pit 24m / 1.3 g/t 16m / 1.0 g/t © Harmony | Kalgold Greenstone explora
Slide 16: Cross-Section Watertank North Extension (BB')
16 CROSS-SECTION WATERTANK NORTH EXTENSION (BB’) B B’ Historic hole WRC049: 31m @ 0.8 g/t Au from 13m 1243mAMSL Overburden West East KG035: Oxidation base 23m @ 1.7 g/t Au from 90m Overburden: Kalahari sand WDD015: 36m @ 1.9 g/t Au from 122m “Stone line” WDD011: © Harmony | Kalgold Greenstone explor
Slide 17: Brownfield Extension and Satellite Targets
17 BROWNFIELD EXTENSION AND SATELLITE TARGETS Drill traces with >1 g/t assays (purple) Aerial photo with >1 g/t assays (purple) Magnetics with >1 g/t assays (purple) G58R: 26m @ 1.1 g/t Au from 9m G590R: 10m @ 0.7 g/t Au from 42m G100P: 7m @ 0.7 g/t Au from 7m © Harmony | Kalgold Greenstone explorat
Slide 18: Conclusion
CONCLUSION
Slide 19: Local Is Lekker
19 LOCAL IS LEKKER Kalgold exploration team: − 4 geologists and 3 local field assistants − Training provided: safe work systems, regolith and geology interpretation, core processing including digital logging, QAQC, software skills, hand held XRF, GPS, drill contractor management Local investment
Slide 20: Next Steps
20 NEXT STEPS FY18 Ongoing exploration drilling − complete planned holes at Windmill / Windmill south, Watertank north extensions Close off database mid June 2018 − mineral resource update FY19 © Harmony | Kalgold Greenstone exploration Transition to prefeasibility drilling − 15 000m (infill d
Slide 21: Brownfields Exploration Creates Value
21 BROWNFIELDS EXPLORATION CREATES VALUE Lower cost, lower risk growth option − Enhances viability of operation − Short production conversion time − Leverage existing infrastructure - less capital intensive Potential to contribute to Harmony’s strategy to increase margins © Harmony | Kalgold Gre
Slide 22: Appendix
APPENDIX
Slide 23: Kalgold Overview
23 KALGOLD OVERVIEW Location: 55km southwest of Mahikeng in the North West Province Geology: Kraaipan Greenstone Belt History: mining started in December 1995, acquired by Harmony in 1999 Nature of operation: open-pit © Harmony | Kalgold Greenstone exploration Processing: carbon-in-leach p
Slide 24: Lead Competent Person: Jaco Boshoff
24 LEAD COMPETENT PERSON: JACO BOSHOFF Jaco Boshoff (BSc (Hons), MSc, MBA, Pr. Sci. Nat, MSAIMM, MGSSA) South Africa, executive: ore reserve management Over 22 years relevant experience Registered with the South African Council for Natural Scientific Professions (SACNASP) and a member of the
Slide 25: Bio: Mike Humphries
25 BIO: MIKE HUMPHRIES Mike Humphries (BSc Honours) South-East Asia, executive general manager: exploration Over 26 years experience in minerals exploration, particularly in greenstone-hosted gold, porphyry copper-gold and epithermal gold systems Joined Harmony group in 2000 Previous exper
Slide 26: Private Securities Litigation Reform Act Safe Harbour Statement
26 PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOUR STATEMENT FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act
Slide 27: Contact Us
CONTACT US HarmonyIR@harmony.co.za +27 (11) 411 2314/+27 (82) 759 1775