Wrap Text
Production results for the quarter ended 31 March 2013
VILLAGE MAIN REEF LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005703/06)
Share Code: VIL ISIN: ZAE000154761
(“Village” or “the company”)
PRODUCTION RESULTS FOR THE QUARTER ENDED 31 MARCH 2013
Village announces production results for the third quarter (ended 31 March 2013) of 44,806oz of gold and
1,433t of antimony.
Gold production for the quarter was 9% (or 4,306oz) lower than the gold production achieved during the
December quarter, largely as a result of safety-related stoppages and the seasonal effect of the slow start-up
following the Christmas break. Antimony production was 14% (or 178t) higher than the production achieved
during the December quarter, as a result of an improved ore mix following the implementation of a more
focused ore reserve management strategy at Cons Murch Gold and Antimony mine “(“Cons Murch”).
Village joint CEO Marius Saaiman commented: “The March quarter is traditionally a weak production
period for the gold mining industry. The down time in production over the festive season, combined with the
safety-related stoppages arising from the fatal accidents at our Tau and Buffels mines, resulted in lower
production volumes.
There were notable achievements during the quarter, the most significant of which saw Blyvoor return to
operational stability and making a positive contribution during February and March. At Cons Murch,
antimony and gold production increased by a pleasing 14% and 38% respectively.
We successfully initiated the Cons Murch disposal process, attracting a number of interested parties in the
process.
Village also took a significant step towards diversifying its asset portfolio, through an investment in
Continental Coal Limited, setting the company firmly on a path to becoming a diversified resource
investment company. ’’
Gold production at Tau Lekoa Gold Mine (“Tau”) for the March quarter was 20,865oz, a decline of 24% (or
6,496oz) compared to the December quarter. Lower production was largely due to safety related stoppages
following a fatal accident and the impact of lower production volumes on the overall mining mix, resulting
in a lower recovered grade. Production volumes and mining mix improved towards the latter part of the
quarter following specific interventions and the implementation of safety improvement plans. We expect
these efforts to positively affect production during the June 2013 quarter.
Gold production at Buffelsfontein Gold Mine (“Buffels”) was 7,150oz for the March quarter, a decline of
31% (or 3,209oz) over the December quarter. The high grade 2 shaft experienced a number of stoppages
resulting in almost no contribution from this shaft during the quarter. In addition, safety stoppages following
a fatal accident at our high volume 6 shaft, had a significant impact on both production volumes and grade.
The action plans arising from an independent safety system audit have been implemented and we continue to
strategise to de-risk the operation from ongoing safety stoppages.
Cons Murch delivered 1,433t of antimony and 2,806oz of gold for the March quarter, an improvement of
14% (or 178t) in antimony and 38% (or 769oz) in gold compared to the December quarter. Production
improved mainly due to an improved ore mix following successful implementation of a focused ore reserve
management strategy, resulting in more consistent production volumes throughout the quarter. Production
at Cons Murch is expected to be stable in the forthcoming quarter with the potential for additional
production from the Gravelotte decline as reef has been intersected.
Gold production at Blyvooruitzicht Gold Mine (“Blyvoor”) was 13,985oz, a 49% (or 4,630oz) improvement
over the December quarter. Production volumes from underground operations improved significantly
following improved labour relations, combined with the positive impact of more available working areas
resulting from the re-establishment of affected panels post the seismic event in the previous quarter. In line
with the overall turnaround strategy a revised fall of ground management strategy and ore reserve
management techniques were also implemented during the quarter. Blyvoor successfully concluded a
restructuring plan during the quarter resulting in some 960 employees being retrenched. Though regrettable,
the resulting cost benefit thereof should be evident in the June quarter and will contribute to the ongoing
sustainability of the mine.
The table below provides more information on the production achieved at each of the Village mines during
the March 2013 quarter versus the December 2012 quarter.
Production achieved at Village mines during March 2013 quarter versus December 2012 quarter
Mar-13 Dec-12 % change
quarter quarter
Tau Lekoa – gold oz 20,865 27,360 (24%)
Buffelsfontein – gold oz 7,150 10,359 (31%)
Blyvoor – gold oz 13,985 9,355 49%
Cons Murch – gold oz 2,806 2,037 38%
Cons Murch – antimony tons 1,433 1,255 14%
Total Village Gold oz 44,806 49,111 (9%)
Unaudited notional cash cost/Kg Mar-13 Dec-12 % change
quarter quarter
Tau Lekoa 404,925 317,140 (28%)
Buffelsfontein 781,029 530,552 (47%)
Blyvoor 534,048 749,635 29%
Cons Murch (cost per ton milled) 1,315 1,594 18%
Operational and financial details for the quarter ended March 2013 will be provided in the March 2013
Quarterly Report which is expected to be released on SENS towards the middle of May 2013.
Contacts
Village Joint CEO
Marius Saaiman
Email: msaaiman@villagemainreef.co.za
Mobile: 082 458 3420
Investor and media relations
Village Main Reef
Cheryl Walton
Email: cwalton@villagemainreef.co.za
Tel: 011 274 4610
10 April 2013
Sponsor
Java Capital
Date: 10/04/2013 01:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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