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CRD - Central Rand Gold - Upgrades mineral resources; identifies first

Release Date: 12/03/2008 08:30:03      Code(s): CRD
CRD - Central Rand Gold - Upgrades mineral resources; identifies first          
                             surface mining targets                             
Central Rand Gold Limited                                                       
("CRG" or the "Company")                                                        
(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: GG00B248M601                                                              
Share code on LSE: CRND                                                         
Share code on JSE: CRD                                                          
CENTRAL RAND GOLD LIMITED UPGRADES MINERAL RESOURCES; IDENTIFIES FIRST          
SURFACE MINING TARGETS                                                          
HIGHLIGHTS                                                                      
-  Upgrade of Resource Statement                                                
-  Identification of first three probable mining targets                        
-  Lodgement of Environmental Impact Assessment with South African              
Department of Minerals and Energy                                               
Johannesburg, March 11, 2008                                                    
London and Johannesburg listed Central Rand Gold Limited ("CRG") has            
announced a 1.760 million ounce upgrade in its mineral resources and            
identified the first three probable surface mining targets it intends to        
mine when it receives its New Order Mining Right from South Africa`s            
Department of Minerals and Energy ("DME"). CRG lodged its Environmental         
Impact Assessment Report on February 4, 2008, which formally initiated the      
120-day review period for a New Order Mining Right application by the DME.      
Resource Upgrade                                                                
The Company, which listed on the LSE and the JSE on November 8 2007, has        
increased its indicated and inferred mineral resources to 35.6 million          
ounces of gold from 33.8 million ounces as at the time of the Initial Public    
Offering ("IPO"). Of the increase, 932,000 ounces are in the indicated          
category, taking this up to 22.3 million ounces from 21.4 million ounces,       
while 828,000 ounces are in the inferred category, taking this total up to      
13.2 million ounces from 12.4 million ounces.                                   
Importantly, of the 1.760 million ounce resource upgrade, 378,000 ounces        
were identified between the surface and 70 metres below surface and some        
152,000 ounces between 70 and 200 metres below surface. This represents some    
30% of the total resource upgrade.                                              
While the Company`s IPO mineral resource statement had been based primarily     
on the Main Reef and the Main Reef Leader sequences on the Consolidated Main    
Reef ("CMR"), Crown Mines, City Deep, Village Main and Robinson Deep            
properties, the updated mineral resource includes the Bird Reef and             
Kimberley Reef packages on CMR and Crown Mines properties. The updated          
mineral resource has been calculated by Dr Carina Lemmer, reported in           
accordance with the JORC and SAMREC reporting codes and reviewed by Snowden     
Mining Industry Consultants.                                                    
Current Activities                                                              
CRG is pleased to announce that assay results have now been received for 75%    
of assays submitted to date compared to 50% when the IPO prospectus was         
issued late last year. This has resulted in the Company`s initial               
requirement for acquiring an assay laboratory unnecessary at this point in      
time. Over the past 17 months, CRG has undertaken a comprehensive program of    
45,600 metres of diamond and reverse circulation drilling, of which over        
10,000 metres has been undertaken in the past five months.                      
To date, five existing shafts have been accessed, made safe and re-opened       
for the underground sampling program. This has commenced on East Shaft,         
situated on CMR and accessing slot 8, which has been re-opened down to 12       
level (296 metres below surface) and Number 9 Shaft situated on CMR and         
accessing slot 7 which has been re-opened down to 4 level (127 metres below     
surface). This program will assist in further upgrading CRG`s resource base.    
"CRG is continuing its drilling program coupled with underground sampling       
across all nine slots with the aim of further enhancing the current gold        
resource base in the Central Rand Goldfield," said Greg James, Central Rand     
Gold`s CEO.                                                                     
Operational and Resource Outlook                                                
Based on drilling, analytical conversion and empirical observations, the        
Company has identified the first three probable surface mining targets          
("slots") for initial mining once the Company`s New Order Mining Right has      
been granted by the DME. This is a significant refinement of the nine slots     
identified at the time of the IPO (Further details on the status and            
position of the slots are contained in an appendix to this release.)            
"At the time of the Company`s IPO, nine slots had been identified that          
warranted further assessment for shallow mining operations. As we refine our    
exploration understanding and seek to maximize our early cash flows and         
prove our mining methodology, we are now focussing on three slots to            
commence our mining program. These are referred to by the Company as slots      
4, 8 and 9, although slots 8 and 9 are in fact, part of a contiguous reef,"     
said Mr James.                                                                  
As described in the SAMREC and JORC codes, in order to upgrade the Company`s    
current indicated and inferred resources in previously mined areas into the     
measured resources category, ore development must be undertaken and on-reef     
sampling must be performed. Furthermore, the codes state that in order to       
convert resources into reserves, a pre-feasibility study needs to have been     
completed and that the Modifying Factors (additional procedures and             
documentation in government, social, mining, metallurgy and environmental       
spheres) as described in the codes need to be satisfied. This will only be      
achieved once on-reef development (trial mining) has commenced in 2009.         
Importantly, it must be noted that converting the Company`s resources into      
reserves is not a prerequisite for the commencement of mining activities.       
Submission of Environmental Impact Assessment                                   
Central Rand Gold submitted its comprehensive Environmental Impact              
Assessment report to the DME on February 4, 2008. This was done after a         
widespread consultative public participation process incorporating              
discussions and workshops with governmental departments, local community        
leaders and local community residents. Local community meetings were held       
and attended by many thousands of community residents and the Company           
believes that their involvement represents a new standard of public             
participation in the South African resources sector.                            
"We have had extremely positive responses from the vast majority of the         
local communities to CRG`s mining approach and have even been able to           
establish a database of local residents interested in obtaining jobs and        
providing services to the Company once mining gets under way," said Mr          
James.                                                                          
Central Rand Gold is planning to produce at an annualised rate of 100,000       
ounces of gold by the end of 2009, at an annualised rate of 250,000 ounces      
by 2010 and at an annualised rate of one million ounces a year by 2012. The     
Company expects to directly employ around 4,000 people at peak production.      
"Having interacted at length with community members and leaders, we are         
satisfied that the return of commercial scale gold mining to the city of        
Johannesburg will be very well received and have a positive impact on a city    
which is after all, Egoli, the city of gold," said Mr James.                    
Ends                                                                            
Issued on behalf of Central Rand Gold by                                        
Jenni Newman Public Relations (Pty) Ltd                                         
+ 27 11 772 1033                                                                
Jenni Newman   +27 82 882 8888                                                  
jenninewman@jnpr.co.za                                                          
Megann Outram  +27 83 320 7577                                                  
meganno@jnpr.co.za                                                              
11 March 2008                                                                   
Sponsor                                                                         
Macquarie First South Corporate Finance (Pty) Ltd                               
Amanda Markman           + 27 11 343 2307                                       
Done Hattingh            + 27 11 343 2308                                       
Appendix                                                                        
Map:  Slot positions on surface on Consolidated Main Reef, Langlaagte and       
Crown Mines prospecting areas available                                         
The above mentioned map can be viewed on the Company`s web-site:                
www.centralrandgold.com                                                         
The following tables represent the upgraded resource of 1.76 million ounces     
as per the press release:                                                       
Slot 1      Kimberley Reefs                                                     
           Depth      Au acc.   Recoverable  Mean      Metal    Metal           
           Domain     Cut off   tons after   Rec. Au   Content  Content         
           (metres)   (cmg/t)   10% Geol.    Grade     (kg)     (oz`s)          
Loss         (g/t)     `000`s   `000`s          
                                (millions)                                      
                                                                                
                                                                                

Indicated   0-70m      100       2.5          0.6       1.5      51             
Inferred    0-70m      100       0.9          0.7       0.6      20             
                                                                                
Slot 7      White Reef of the Bird Reef                                         
           (CMR)                                                                
           Depth      Au acc.   Recoverable  Mean      Metal    Metal           
           Domain     Cut off   tons after   Rec. Au   Content  Content         
(metres)   (cmg/t)   10% Geol.    Grade     (kg)     (oz`s)          
                                Loss         (g/t)     `000`s   `000`s          
                                (millions)                                      
                                                                                

                                                                                
Indicated   0 - 70     100       -            -         -        -              
           70 - 200   200       0.4          4         1.5      50              
200 - 900  350       3.1          3.7       11.5     400             
           900-1500   600       0.9          4.8       4.3      100             
           TOTAL                4.4          3.9       17.3     550             
                                                                                
Depth      Au acc.   Recoverable  Mean      Metal    Metal           
           Domain     Cut off   tons after   Rec. Au   Content  Content         
           (metres)   (cmg/t)   10% Geol.    Grade     (kg)     (oz`s)          
                                Loss         (g/t)     `000`s   `000`s          
(millions)                                      
                                                                                
                                                                                
Inferred    0 - 70     100       1.7          3.3       5.7      200            
70 - 200   200       -            -         -        -               
           200 - 900  350       0.0          2.8       0.0      0.1             
           900-1500   600       1.7          5.1       8.8      300             
           TOTAL                3.4          4.1       14.5     500             
Kimberley Reefs (CMR)                                                 
Slot 4                                                                          
Indicated  Depth      Au acc.   Recoverable   Mean      Metal    Metal          
          Domain     Cut off   tons after    Rec. Au   Content  Content         
(metres)   (cmg/t)   10% Geol.     Grade     (kg)     (oz`s)          
                               Loss          (g/t)     `000`s   `000`s          
                               (millions)                                       
                                                                                

                                                                                
          0 - 70     100       0.9           3.4       3.2      103             
          70 - 170   200       0.8           3.8       3.1      98              
170 - 420  350       0.9           4.0       3.4      110             
          TOTAL                2.6           3.7       9.7      311             
          Kimberley Reefs (CMR) continued                                       
Slot 4                                                                          
Inferred   Depth      Au acc.   Recoverable   Mean      Metal    Metal          
          Domain     Cut off   tons after    Rec. Au   Content  Content         
          (metres)   (cmg/t)   10% Geol.     Grade     (kg)     (oz`s)          
                               Loss          (g/t)     `000`s   `000`s          
(millions)                                       
                                                                                
                                                                                
                                                                                
0 - 70     100       0.1           2.4       0.1      4               
          70 - 170   200       0.04          3.0       0.1      4               
          170 - 420  350       0.5           3.9       1.9      63              
          TOTAL                0.6           3.7       2.1      70              

Slot 5  Bird Reefs (Crown                                                       
Mines)                                                                          
Indicated  Depth      Au acc.   Recoverable   Mean      Metal    Metal          
Domain     Cutoff    tons after    Rec. Au   Content  Content         
          (metres)   (cmg/t)   10% Geol.     Grade     (kg)     (oz`s)          
                               Loss          (g/t)     `000`s   `000`s          
                               (millions)                                       

                                                                                
          200 - 900  200       0.07          4.4       0.3      10              
          900 -      350       0.04          4.1       0.2      5               
1500                                                                  
          TOTAL                0.11          4.3       0.5      15              
                                                                                
Inferred   Depth      Au acc.   Recoverable   Mean      Metal    Metal          
Domain     Cutoff    tons after    Rec. Au   Content  Content         
          (metres)   (cmg/t)   10% Geol.     Grade     (kg)     (oz`s)          
                               Loss          (g/t)     `000`s   `000`s          
                               (millions)                                       

                                                                                
          200 - 900  200       0.7           4.3       2.9      90              
          900 -      350       1.2           4.6       5.5      180             
1500                                                                  
          TOTAL                1.9           4.5       8.4      270             
                                                                                
Total                           Recoverable   Mean      Metal    Metal          
tons after    Rec. Au   Content  Content         
                               10% Geol.     Grade     (kg)     (oz`s)          
                               Loss          (g/t)     `000`s   `000`s          
                               (millions)                                       

                                                                                
          Inferred             6.8           3.8       25.6     828             
          Indicated            9.61          3.0       29.0     932             
TOTAL                16.41         3.3       54.6     1 760           
                                                                                
The tables below demonstrate a more defined understanding of the resources      
in slot 8 and 9 that were included in the 33.8 million ounce resource at the    
time of the Initial Public Offering.                                            
Slot 8 &    Main Reef                                                           
9                                                                               
Indicated   Depth       Au acc.   Recoverable   Mean     Metal   Metal          
Domain      Cutoff    tons after    Rec. Au  Content Content         
           (metres)    (cmg/t)   10% Geol.     Grade    (kg)    (oz`s)          
                                 Loss          (g/t)    `000`s  `000`s          
                                 (millions)                                     

                                                                                
                                                                                
           0 - 70      100       0.5           3.5      1.5     50              
70 - 200    200       0.4           3.8      1.6     50              
           200 - 900   350       8.7           4.7      41.5    1 300           
           900-1500    600       2.8           6.4      18.1    600             
           TOTAL                 12.4          5.2      62.7    2 000           

Inferred    Depth       Au acc.   Recoverable   Mean     Metal   Metal          
           Domain      Cutoff    tons after    Rec. Au  Content Content         
           (metres)    (cmg/t)   10% Geol.     Grade    (kg)    (oz`s)          
Loss          (g/t)    `000`s  `000`s          
                                 (millions)                                     
                                                                                
                                                                                

           0 - 70      100       0.3           3.7      1.1     30              
           70 - 200    200       0.3           4.6      1.2     40              
           200 - 900   350       0.3           5.8      1.7     50              
900-1500    600       0.4           5.8      2.3     70              
           TOTAL                 1.3           4.8      6.3     190             
                                                                                
Slot 8 &    Main Reef Leader                                                    
9                                                                               
Indicated   Depth      Au acc.    Recoverable   Mean     Metal   Metal          
           Domain     Cutoff     tons after    Rec. Au  Content Content         
           (metres)   (cmg/t)    10% Geol.     Grade    (kg)    (oz`s)          
Loss          (g/t)    `000`s  `000`s          
                                 (millions)                                     
                                                                                
                                                                                

           200 - 900  350        0.1           11.5     1.5     50              
            900-1500  600        1.1           13.5     15.1    500             
           TOTAL                 1.2           13.8     16.6    550             
Main Reef Leader continued                                           
Slot 8 &                                                                        
9                                                                               
Inferred    Depth     Au acc.     Recoverable   Mean     Metal   Metal          
Domain    Cutoff      tons after    Rec. Au  Content Content         
           (metres)  (cmg/t)     10% Geol.     Grade    (kg)    (oz`s)          
                                 Loss          (g/t)    `000`s  `000`s          
                                 (millions)                                     

                                                                                
                                                                                
           200 -     350         0.2           13.6     3.3     100             
900                                                                  
           900-1500  600         0.0           12.4     0.1     4               
           TOTAL                 0.2           26.0     3.4     104             
                                                                                

Total                             Recoverable   Mean     Metal   Metal          
                                 tons after    Rec. Au  Content Content         
                                 10% Geol.     Grade    (kg)    (oz`s)          
Loss          (g/t)    `000`s  `000`s          
                                 (millions)                                     
                                                                                
                                                                                
Inferred              1.5           6.4      9.7     294             
           Indicate              13.60         5.8      79.30   2 550           
           d                                                                    
           TOTAL                 15.11         5.9      89.00   2 844           
Date: 12/03/2008 08:30:02 Supplied by www.sharenet.co.za                     
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