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SIM - Simmers - Drill Results At Simmers` Mpumalanga Operations Exceed Expectations Simmer and Jack Mines Limited (Incorporated in the Republic of South Africa) (Registration number 1924/007778/06) Share code: SIM ISIN: ZAE000006722 ("Simmers" or "the company") Press Release 8 March 2007 DRILL RESULTS AT SIMMERS` MPUMALANGA OPERATIONS EXCEED EXPECTATIONS Plans for surface mining using heap leach technology at Simmer & Jack Mines` Mpumalanga operations have received a boost following the results of a comprehensive drill programme at the company`s wholly owned subsidiary, Transvaal Gold Mining Estates Limited (TGME). "The aim of the Mpumalanga exploration programme has been to define heap leach targets in the near surface oxide zones and define the deeper feeder systems of the surface gold occurrences," explained Gordon Miller, CEO of Simmer & Jack Mines, Limited (Simmers). Fifteen initial targets have been identified as having potential for heap leach recovery. They are: - One 300 000 ton sand dump at Elandsdrift, which will serve as a test heap leach pad; - Eight targets close to the metallurgical plant at TGME, termed DG 1 to DG8; and - Six targets in the vicinity of Frankfort mine known as the Molototse Valley Exploration Project, where Carlin-type deposits have been found. Elandsdrift ahead of schedule The company`s pilot heap leach pad at Elandsdrift, which has been built to test the process using 300 000 tons sand tailings, is ahead of schedule. "Elandsdrift is our guinea pig in terms of heap-leaching and the sand dump is currently being loaded onto the pad. All that is needed in order to produce the first gold is for the Carbon In Solution (CIS) plant to be completed. This is expected to take place in the June quarter (F2007)," said Miller. The CIS plant extracts the gold from the leach solution, capturing it onto carbon which is then eluted and smelted at TGME`s metallurgical plant. Testwork has confirmed that the sand dump has excellent leach characteristics with 30% of the gold expected to be leached within 30 days and the total of 60% to be recovered within 150 days. New drill results for DG target areas The results of the latest drill programme relate to the DG target areas at TGME. This area covers a total of 24.3 million m2 along 6 500 metres of the total 70 kilometre strike length of known gold occurrences, from Elandsdrift in the South, to Hermansberg in the North. As part of an initial comprehensive drill programme on DG2, 170 reverse circulation boreholes were drilled on an area that covers 178 537 m2 to a depth of 10 metres. A total delineated resource of 3.3 million tons had been defined down to a depth of 10 metres, and this had turned up 36 087 ounces of gold at an average grade of 0.34 g/t at a zero cut off. Through selective mining, a mineable resource of 733 000 tons (assuming a cut-off grade of 0.40 g/t) at a grade of 0.97 g/t has been defined equating to 22 745 ounces above the cut-off. Deeper exploratory drilling to a depth of 50 metres below surface was carried out on the same target, resulting in a further 26 boreholes having been drilled over the areas that had gold grades in the bottom of the shallow holes. Significantly, 7 of these 26 holes returned average composite values above 0.4 g/t over the entire length of the hole. "By incorporating the longer holes into the resource model, it has resulted in a total delineated resource of 20.8 million tons at 0.18 g/t at a zero cut-off. By being selective, a mineable resource of 2.3 million tons has been defined at an average grade of 0.95 g/t at a cut-off of 0.40 g/t. This results in a potential measured resource of 71 136 ounces in-situ, as opposed to the 66 106 ounces we originally believed we had at DG2. This will grow as the results of the other holes become available," said Miller. The DG2 RC percussion drill campaign is almost complete and there are eight boreholes (to a depth of 50 metres) remaining to test out a possible Carlin type deposit in this area. "It is possible that these results will increase the resource further but we will only know that in April 2007," said Miller. Independent verification on the results of the drilling programme at DG2 is currently being carried out to ensure the resource is SAMREC and NI 43-101 compliant. A second heap leach pad, in addition to the test pad at Elandsdrift, is currently under construction in the TGME area to serve a portion of the DG2 resource and is expected to be completed in the June quarter of 2007. This pad will accommodate 600 000 tons and will also serve as a test facility for the greater DG resource as the composition of materials to be loaded is significantly different from the sand at Elandsdrift. Leach tests for the DG 2 material indicate an overall recovery of over 65%. Permeability and compaction tests have also been conducted which will allow further tests on the effects of agglomeration and de-sliming to determine the optimum lift heights of the heap leach pad. The next DG target to be tackled is the DG1 grid, which is adjacent to the DG2 grid and covers an area of 252 357 m2. According to Miller, there are strong signs of oxidised mineralization in road cuttings and in rock outcrops, similar to the indicators present on the DG2 grid. "A drilling programme of 50 surface reverse circulation holes to a depth of 50 meters each has been approved and 29 holes have already been completed. Initial indications are that the DG1 resource will be equal to or exceed the DG2 resource," said Miller. New Order Prospecting Permits The Company`s New Order Prospecting Permits cover approximately 57 000 hectares of the Pilgrim`s Rest gold belt. A further 10 822 hectares of land are under application for new order mining rights, which application has been approved by the head office of the Department of Minerals and Energy (DME). The independent technical reports of the various exploration programmes can be found on the Simmers` website at wwww.simmers.co.za FOR FURTHER INFORMATION PLEASE CONTACT: GAIL STRAUSS ON +27 (0) 84 777 4060 gailstrauss@mweb.co.za www.simmers.co.za Date: 08/03/2007 11:43:52 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.
