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CRD - Central Rand Gold Limited - Production and commercial update
The following amendment has been made to the `PRODUCTION AND COMMERCIAL
UPDATE` announcement released on 15 February 2012 at 07:00 under RNS No 4113X,
and on SENS.
In the paragraph pertaining to `Mine Production`, the date upon which the
Cancellation was finally set aside by agreement between the Company and the
Department of Mineral Resources has been corrected to 22 December 2011 rather
than 2012, as previously released. This amendment is of significant nature as
it means that this suspension is no longer of force at all, nor will it be
revived, based on the facts relied upon in the initial suspension.
Consequently, the Company may continue with its operations in line with its
original timescale.
All other details remain unchanged.
The full amended text is shown below.
Central Rand Gold Limited
(Incorporated as a company with limited liability under the laws of
Guernsey,
Company Number 45108)
(Incorporated as an external company with limited liability under the
laws of South Africa,
Registration number 2007/0192231/10)
ISIN: GG00B24HM601
LSE share code: CRND JSE share code: CRD
("Central Rand Gold" or the "Company")
PRODUCTION AND COMMERCIAL UPDATE
Central Rand Gold is pleased to provide the following production and
commercial update:
PRODUCTION
During 2011, Central Rand Gold produced 14 856 ounces of gold, representing an
increase in gold production of 60% from 2010, which was in line with the
expected production figures provided in November 2011.
FINANCIAL UPDATE
Cash and cash equivalents as at 31 December 2011 amounted to $5.3 million,
which was $0.5 million higher than the Company`s cash position at 30 June
2011.
MINE PRODUCTION
Mine production was negatively impacted by the withdrawal of the Company`s New
Order Mining Right on 22 September 2011. On 24 October 2011, the Minister of
Mineral Resources of the Republic of South Africa temporarily suspended the
cancellation of the Mining Right, thus enabling the Company to continue with
its operations, work re-commenced on 1 November 2011, whilst the Cancellation
was finally set aside by agreement between the Company and the Department of
Mineral Resources on 22 December 2011.
Mine production, using the conventional stoping methodology, for the last two
months of 2011 was as follows:
Underground Surface
Tons Grade Tons Grade (g/t)
(t) (g/t) (t)
November 6 436 4.28 17 897 3.51
December 4 374 4.09 14 490 3.36
Totals 10 4.20 32 387 3.44
810
Central Rand Gold is planning to increase underground production to 12 000
tons per month by the third quarter of 2012 whilst surface mining is expected
to continue for the next three to five months. Several new target areas, which
could extend the life of the surface operations, have been identified.
METALLURGY
The gold plant continues to perform well with plant availability averaging 92%
and metallurgical recoveries of 95% having been reported during the last six
months of 2011.
At present, plant capacity is being maintained at 12 000 tons per month.
However, engineering studies are currently underway to improve the crushing
circuit and increase plant capacity.
The Company plans to maintain its current toll treatment strategy whereby, in
conjunction with a neighbouring processing plant operated by Mintails Limited
("Mintails"), Central Rand Gold has undertaken to treat any excess mine
production at Mintails` Mogale gold facility.
RESOURCES AND RESERVES
Recent Resource evaluation studies on the Main Reef undertaken by Dr Carina
Lemmer (an Independent Competent Person) have incorporated additional sampling
information obtained through the current surface and underground mining and
this exercise has allowed for the reclassification and upgrade of
approximately 160 000 ounces contained within the Consolidated Main Reef area
into the SAMREC compliant Measured Resource category.
Main Measured Resources Indicated Resources Inferred Resources
Reef
CMR
Depth Tons Grade Content Tons Grade Content Tons Grade Content
(mbs) (mil (g/t) (Oz) (mil (g/t) (Oz) (mil (g/t) (Oz)
lion) lion) lion)
30 - 0.34 3.19 0.03 1.12 3.14 0.11
100m
100 - 1.13 3.69 0.13 4.61 4.18 0.62
450m
450 - 3.25 5.21 0.54
900m
900 - 2.92 6.29 0.59 0.27 6.21 0.06
1500m
1500 2.68 7.57 0.65 0.25 7.97 0.07
-
3000m
Total 1.47 3.57 0.16 14.58 5.38 2.51 0.52 7.07 0.13
*Totals have been rounded off to two decimal points.
This represents an increase in Measured and Indicated Resources of
approximately 3%. Whilst the quantum of increase is relatively minor, the
confidence increase between Measured Resource and Indicated is substantial.
This confidence increase is largely due to additional verification sampling
undertaken during the course of current operations
Measured Resources Indicated Resources Inferred Resources
Update Tons Grade Content Tons Grade Content Tons Grade Content
(mil (g/t) (Oz) (mil (g/t) (Oz) (million) (g/t) (Oz)
lion) lion)
2009 14.9 5.43 2.59 1.1 7.07 0.25
2012 1.47 3.57 0.16 14.6 5.38 2.51 0.52 7.07 0.13
*Totals have been rounded off to two decimal points.
It is worth noting that the Resource now excludes material shallower than 30
metres (which has been reclassified as Exploration Target Material and is
currently being exploited through open pit mining). This updated Mineral
Resource also takes into account the Resource depletion arising from the
Company`s underground mining activities over the past 24 months.
The Company`s Resources in other areas remain unchanged. This upgrade only
impacts the Main Reef in the CMR area.
The decision to cease making use of the mechanised longhole stoping mining
technique has required that the Company`s Mineral Reserve be revisited.
Scoping studies and trial mining using conventional hand held mining
techniques have been completed and appear robust and economic. The Company is
currently in the process of updating the Mineral Reserves in line with this
new mining methodology and an updated Reserve statement is expected to be
completed during the first half of 2012.
ACID MINE DRAINAGE
The current water level in the Central Basin is 428 metres below surface. It
is pleasing to note that the current rate of rise of approximately 0.3 metres
per day ("mpd") is below the anticipated rate of rise of 0.5 mpd.
The Company remains engaged in discussions with Trans Caledon Tunnel Authority
("TCTA") (the appointed implementing agent by the Minister of Water Affairs)
and its legal team with regards to the use of the submersible pumps purchased
by the Company.
NOTE: The information in this statement relating to Mineral Resources and
geology has been reviewed and approved by Mr Keith Matier, BSc (Hons), GDE,
PrSci Nat, who is a competent person in terms of the SAMREC and JORC codes. Mr
Matier is Geology Manager of Central Rand Gold South Africa (Proprietary)
Limited and has over 17 year`s experience in exploration, mineral resource
management and mineral evaluation.
For further information, please contact:
Central Rand Gold +27 (0) 11 674 2304
Johan du Toit / Patrick Malaza
Evolution Securities Limited +44 (0) 20 7071 4300
Chris Sim / Neil Elliot
Merchantec Capital +27 (0) 11 325 6363
Roger Pitt / Monique Martinez
Buchanan +44 (0) 20 7466 5000
Bobby Morse / James Strong
Jenni Newman Public Relations (Proprietary) Limited+27 (0) 11 506 7351
Jenni Newman
16 February 2012
Johannesburg
JSE Sponsor
Merchantec Capital
Date: 16/02/2012 17:49:47 Supplied by www.sharenet.co.za
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