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CRD - Central Rand Gold Limited - Interim Management Statement
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")
INTERIM MANAGEMENT STATEMENT
1 Summary
* Quarterly production up 70% to 4,777 ounces ("oz").
* Surface mining extended from June 2012 to 31 December 2012.
* New surface exploration targets being investigated.
* Underground production of 19,216 tonnes at a mined grade of 4.9 grams per
tonne ("g/t").
* On target to increase mill capacity by 70% to 20,000 tonnes per month.
Company cash flow positive, by US$1 million, for the first quarter of 2012.
* Reduced rate of rise of the water level in the Central Basin.
2 Operational update
2.1 Geology
Updated Main Reef Resources
The first quarter of 2012 ("first quarter") showed marked improvements in
the resource base of the Company, with an updated resource statement
resulting from work undertaken in February 2012. Sampling information
collected during the past three years of surface and underground mining was
incorporated into the already substantial sampling database and used to re-
evaluate the Main Reef Resources underlying the Consolidated Main Reef
("CMR") area.
Main Reef Measured Resources Indicated Resources
Depth Tonnes Grade Content Tonnes Grade Content
(metres (million) (g/t) ( (million) (g/t) (million
below million oz)
surface) oz)
30 - 100 0.34 3.19 0.03 1.12 3.14 0.11
100 - 450 1.13 3.69 0.13 4.61 4.18 0.62
450 - 900 3.25 5.21 0.54
900 - 1 2.92 6.29 0.59
500
1 500 - 3 2.68 7.57 0.65
000
Total 1.47 3.57 0.16 14.58 5.38 2.51
Main Reef Inferred Resources
Depth (metres Tonnes Grade Content
below surface) (million) (g/t) (million
oz)
30 - 100
100 - 450
450 - 900
900 - 1 500 0.27 6.21 0.06
1 500 - 3 000 0.25 7.97 0.07
Total 0.52 7.07 0.13
Decimal rounding may result in minor discrepancies in totals.
Surface Exploration
Exploration through systematic mechanical trenching, geological mapping and
sampling continued through the first quarter, resulting in the
identification and delineation of further open pit "Exploration Target"
areas within the New Order Mining Right.
Central Rand Gold Exploration Target Summary as at 31 March 2012
Mining Area Reef Exploration Target Material
SLOTS 8 and 9 (Areas within 4 km of Plant)
Central MR&MRL 2.2 - 2.8 g/t 6,000 - 18,000 t
New Unified MR&MRL 2.7 - 3.8 g/t 9,000 - 19,000 t
Spenser MR&MRL 3.0 - 3.1 g/t 9,000 - 19,000 t
Avon Target MR&MRL 2.2 - 4.8 g/t 107,000 - 156,000 t
ROM Pad Cleanup Various 1.6 - 3.2 g/t 20,000 - 50,000 t
SLOTS 5 and 7 (Areas more than 4 km from Plant)
Slot 5 A White 2.9 - 3.1 g/t 27,000 - 48,000 t
Slot 5 B,C,D White 1.5 - 1.9 g/t 17,000 - 33,000 t
Slot 7 White 2.1 - 3.2 g/t 87,000 - 200,000 t
Note: The potential quantity and grade described by the term "Exploration
Target" is conceptual in nature and there has been insufficient exploration
to define a Mineral Resource. It is uncertain if further exploration will
result in the definition of a Resource. Further exploration work is ongoing
and includes trial mining and processing of this shallow target to
establish grade and orebody continuity, mineability, dilution and
throughput characteristics.
An additional open pittable target area, Avon Target, has been identified
approximately 4km to the west of the current operations, representing a
potential open pittable strike length of more than 1.5km. Current
investigations comprising close spaced mechanical trenching (30m to 50m
spacing) in the western 400m strike of this area, have yielded potentially
economic grades and mining widths.
Trench results for the initial 560m of strike in the Avon Target.
Trench Results Comment
LLMRR1A 1.98 g/t over 66 cm
LLMRR1B 0.43 g/t over 72 cm
LLMRR1C 0.76 g/t over 51 cm
LLMRR1 0.45 g/t over 55 cm
LLMRR2 1.07 g/t over 100 cm
LLMRR3 3.11 g/t over 125 cm
LLMRR4 2.51 g/t over 106 cm
LLMRR5 2.33 g/t over 117 cm
LLMRR6 Not Sampled Unsafe, Intersected
Underground Workings
LLMRR7 0.83 g/t over 78 cm Not Fully Exposed
LLMRR8 2.00 g/t over 143 cm
LLMRR9 Cavity/Backfill Intersected Underground
Workings
LLMRR10 2.15 g/t over 100 cm Thin pebble band
running 10.3 g/t over
21 cm
LLMRR11 3.40 g/t over 66 cm
LLMRR12 Cavity/Backfill Intersected Underground
Workings
LLMRR13 16.81 g/t over 120 cm
LLMRR14 Cavity/Backfill Intersected Underground
Workings
LLMRR15 Cavity/Backfill Intersected Underground
Workings
LLMRR16 19.2 g/t over 50 cm
2.2 Mining
Underground Mining
Just under 20,000 tonnes of underground ore was mined in the first quarter,
which was largely in line with Central Rand Gold`s production targets. The
Company remains confident in achieving its production target of 12,000
tonnes per month during the second half of 2012.
Monthly underground production results
MONTH (2012) ACTUAL TONNES MINED GRADE
January 4,681 5.02
February 7,506 4.99
March 7,029 4.73
Total Tonnes 19,216 4.90
Surface Mining
Open pit production has held up well in the first quarter. However, the
current pits at Slot 8, being New Unified Pit and Spencer Pit, are nearing
the end of production. Production in these pits is envisaged to cease by
mid June 2012. The Central Pit is being extended, and this has the
potential to extend the surface mining for an additional three month
period.
Monthly surface mining production results
MONTH (2012) ACTUAL TONNES MINED GRADE
January 10,521 3.88
February 12,363 3.71
March 13,337 3.47
Total Tonnes 36,211 3.67
The rehabilitation of the Main Pit has been completed, whilst
rehabilitation of the Central Pit will continue once mining of the extended
area has commenced.
2.3 Metallurgy
Gold production in the first quarter was 70% higher than last year at 4,777
oz, with 3,051 oz having been produced by the Company`s own operating
plant. The ore processing plant continued to perform above expectations
during the first quarter showing an overall reduction in operating costs
and a substantial increase in ore throughput and gold output. This was due
to ongoing cost saving initiatives in the case of the former, and by
engineering projects in the case of the latter.
September to January 2012 February March 2012
December 2011 2012
(Monthly
average)
Tonnage 12,200 t 11,932 t 13,490 t 16,783 t
Grade 2.44 g/t 2.59 g/t 2.48 g/t 2.33 g/t
Recovery 95% 96% 96% 95%
Availability 92% 85% 96% 96%
OPEX US$27/t US$24/t US$22/t US$27/t
Notes:
Due to the October 2011 production stoppage, September 2011 figures have
been used instead of those of October 2011.
Minor capital items used in the upgrade of the Bateman Mill have been
expensed for March 2012.
Plant availability remained high, ending the first quarter at 96%.
Recoveries remained consistently positive, averaging just under 96% for the
first quarter. Internal processing costs for the first quarter were reduced
from US$27/tonne in the fourth quarter of 2011 to US$24/tonne.
Toll Processing
Toll processing of surplus ore at Mintails Limited`s ("Mintails") Mogale
facility continued throughout the first quarter with approximately 23,136
tonnes of mixed underground sulphide and low grade oxide being delivered to
the Mogale facility.
January 2012 February 2012 March 2012
Wet Tonnage 10,810 t 5,415 t 6,852 t
Grade 2.17 g/t 2.77 g/t 2.33 g/t
Milling Upgrade
In February 2012, the Company embarked on a retrofit engineering project
aimed at increasing the overall plant capacity by around 70% to 20,000
tonnes per month. This reconfiguration of the Bateman milling section was
completed in March 2012 and is currently undergoing throughput trials. As
the Bateman was utilised, the upgrade has come at an insignificant cost to
the Company.
Central Rand Gold is pleased to announce that total plant throughput of
just under 17,000 tonnes was achieved for the month of March 2012.
In addition, the upgrade will also reduce the Company`s current reliance on
the toll treating of Central Rand Gold`s excess mine production.
2.4 Financial Update
The Company is pleased that it continues to remain cash flow positive,
with cash and cash equivalents for the three months ended 31 March
2012 being US$6.3 million. This represents an increase from US$5.3
million as at 31 December 2011.
2.5 Acid Mine Drainage
Encouragingly, the rate of rise of the water level has remained
constant at around 0.3m per day. This figure is below the expected
rate of rise of 0.5m per day. Based on the latest estimate,
Environmentally Critical Level ("ECL") will therefore only be breached
during the second quarter of 2013. This delay provides Trans Caledon
Tunnel Authority ("TCTA") with more time to construct the High Density
Sludge Plant.
The final agreement between Central Rand Gold and TCTA is near completion
and will provide Central Rand Gold the right to dewater the Central Basin
below ECL, at the incremental dewatering cost.
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
Monique Martinez / Marcel Goncalves
Buchanan +44 (0) 20 7466 5000
Bobby Morse / James Strong
Jenni Newman Public Relations +27 (0) 11 506 7351
Proprietary Limited
Jenni Newman
Note: The information in this statement relating to Mineral Resources and
geology has been reviewed and approved by Mr Matier, BSc (Hons), GDE, Pr Sci
Nat, who is a competent person in terms of the SAMREC and JORC codes. Mr Matier
is the Geology Manager of Central Rand Gold South Africa (Proprietary) Limited
and has over 17 years` experience in precious metal exploration, mineral
resource management and evaluation.
24 April 2012
Johannesburg
JSE Sponsor
Merchantec Capital
Date: 24/04/2012 09:00:01 Supplied by www.sharenet.co.za
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