Wrap Text
Transaction and Operational Update
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: GG00B92NXM24
LSE share code: CRND JSE share code: CRD
("Central Rand Gold" or the “Company”)
TRANSACTION AND OPERATIONAL UPDATE
Highlights
* Positive engagement with all MOU Parties and due diligence
programs continue to advance
* Completion date for all MOU agreements reset to 12 June 2015
to ensure common timetable for all MOU Parties and completion
of required due diligence by all parties
* Metallurgical plant performing well with significant
improvements in both Mine Call Factor and plant availability
* Selective metallurgical plant upgrades to continue in H1 2015
with aim of further improving Mine Call Factor and plant
availability
* TCTA has successfully completed phase 1 upgrade to the
clarifier rakes at HDS plant
* HDS plant running at 86% nameplate capacity in March
resulting in a daily pumping rate of 72 mlpd
Extension of MOU Dates
Throughout the first quarter of 2015, the Company has advanced due
diligence discussions with Hiria Group Company Limited (“Hiria”),
Shengbang Jiabo Consulting Company (“Shengbang”), Beijing Ankong
Investment Company (“Ankong”) and Huili Resources Group Ltd
(“Huili”) (together the “MOU Parties”). All MOU Parties remain
engaged and continue to work towards due diligence completion.
As previously announced on 12 February 2015, the Company executed
a MOU with Huili which had a target completion date for execution
of a formal sale agreement by 12 June 2015. After consultation
with all MOU Parties, the Company has decided to realign the
target completion date for all MOU Parties to 12 June 2015. The
purpose of the realignment of the target completion date is to
ensure that all MOU Parties are working on a common timetable and
have the ability to complete their required due diligence. This
will enable the Company to streamline the process and ensure that
Company resources are not wasted. The planned site visits
scheduled for February 2015, were postponed by mutual agreement,
to allow all MOU Parties further time to complete their due
diligence on all information supplied via the Central Rand Gold
data room. To ensure that the due diligence process is completed
effectively, the Board has tasked Jason Hou, a Non-Executive
Director of Central Rand Gold, to lead the due diligence process.
The Board believes that with Jason being permanently based in
Beijing, coupled with his proficiency in English and Mandarin, he
is able to engage with all MOU Parties on a regular basis, to
ensure the timeous completion of the due diligence process.
Commenting on the due diligence progress, Nathan Taylor, Interim
Chairman of the Company said: “The feedback from all MOU Parties
is positive at this stage. Significant attention has been focussed
on examining the Company’s geological information and database,
resources estimation method, and finally Central Rand Gold’s
growth strategy via the CMR and Crown Competent Persons Report.”
Acid Mine Drainage
The interim solution to strengthen the clarifier rakes in the HDS
plant was completed at the end of February 2015. This improvement
has allowed for an increase in daily pumping to approximately
72mlpd. This level of pumping was only anticipated to be achieved
in June 2015 once the permanent solution had been implemented.
Since the beginning of March 2015, Central Rand Gold has seen a
steady decrease in the water table and a reduction of around 1.6
vertical metres has been reported to date, with the current water
level at approximately 142 metres below surface. This is very
encouraging as it once again proves that the Central Basin can be
de-watered even during the typical ‘rainy season’.
Mining Update
With the water level at approximately 142 metres below surface,
underground mining remains suspended. The Company continues to
focus on exploiting the open pit potential in its tenement area,
during this interim phase. Open pit mining has performed in line
with management’s expectations in the first quarter. During the
first two months of the year, 8,471 tons were mined from slot 7
and 15,974 tons were mined from slot 5. Mining at slot 5 recommenced
in March 2015, having been temporarily suspended in February 2015,
to allow for the existing stockpile levels to be reduced to more
acceptable levels. Overall, an average mined grade of 2.01g/t was
achieved with a Mine Call Factor of 84%.
Metallurgical Update
The maintenance and upgrades to the plant, following the January
2015 annual maintenance block, have been successful with
availability increasing to 89% in February 2015. In February, the
combined ore processing (toll inclusive) reached 19,900 tons. Due
to improved metallurgical processes and recoveries, despite the
feed grade being 23% lower than last year, gold production was 10%
higher than last year at 1,145oz.
Toll Treatment and Outsourcing
The low grade Joint Tolling Venture is progressing well with
Mintails Limited. This arrangement allows both companies
to monetise low grade material within dumps on the Company’s property
that would otherwise be uneconomical to process. To date 5,613
tons at an average landed grade of 0.91g/t has been processed.
For further information, please contact:
Central Rand Gold +27 (0) 11 674 2304
Johan du Toit
Charles Stanley Securities Limited +44 (0) 20 7149 6478
Marc Milmo / Mark Taylor
Merchantec Capital +27 (0) 11 325 6363
Monique Martinez / Marcel Goncalves
Johannesburg
31 March 2015
Sponsor
Merchantec Capital
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