Harmony (NYSE:HMY), Newcrest (OTC:NCMGY) Wafi-Golpu Project Resources Double Original Estimates

Harmony Gold Mining Co. (NYSE:HMY) and Newcrest Mining (OTC:NCMGY) are about to start their $150 million prefeasibility study at the Wafi-Golpu copper-gold project in Papua New Guinea.

According to Harmony Chief Executive Officer Graham Briggs, the mine may contain almost double the previous copper and gold resources estimated at the project.

Wafi-Golpu may have as much as 30 million ounces of gold and 8 million metric tons of copper.

So far it appears we have found “another high-quality, world-class operation in Papua New Guinea,” asserted Briggs.

Cost to construct the mine could be as high as $3 billion. The prefeasibility study should be completed by the early part of 2012.

Part of the strategy for Harmony for Wafi is to move away from the volatile and unpredictable South African market, where the ruling socialists are pushing to nationalize the mining industry.

The business-friendly Papua New Guinea is “rapidly being seen as a significant and welcoming gold region,” said Harmony in a recent statement.

They and Newcrest are also looking to increase production at their Hidden Valley mine. Gold production is expected to increase to 250,000 ounces and silver to 3.5 million ounces annually.