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CRD - Central Rand Gold - Exploration And Operational Update

Release Date: 31/07/2008 08:18:39      Code(s): CRD
CRD - Central Rand Gold - Exploration 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: GG00B248M601                                                              
Share code on LSE: CRND                                                         
Share code on JSE: CRD                                                          
("CRG" or the "Company")                                                        
EXPLORATION AND OPERATIONAL UPDATE                                              
Positive results from underground bulk sampling                                 
On track to receive mining right                                                
Trial mining scheduled to begin in October 2008                                 
New Mining Order Right                                                          
Central Rand Gold remains firmly on track to be awarded its New Order Mining    
Right by the South African Department of Minerals and Energy (DME). The approval
process is well advanced and the Company looks forward to concluding the process
in the short term.                                                              
The Mining Right application was accepted by the DME on August 8 2007 and has   
been supplemented by the implementation and submission of all other necessary   
processes and documentation.                                                    
Exploration Update                                                              
Considerable exploration activity has taken place resulting in ongoing drilling,
assaying and bulk sampling initiatives across the Company`s prospecting areas.  
Bulk Sampling                                                                   
Underground bulk sampling has confirmed mineralisation outside of reefs and     
substantial thicknesses of mineralised grits have been identified.              
Significantly, mineralised halos have also been identified in the hanging wall  
and foot wall of conglomerate bands.  Underground bulk sampling is currently    
investigating these mineralised zones.                                          
As part of CRG`s exploration programme (surface mapping, diamond drilling, shaft
re-access and resource conversion investigations), zones of mineralisation (in  
the form of pervasive disseminated pyrite and grit bands) have been identified  
in the hanging wall of the Main Reef Leader and the South Reef on CMR.          
CRG has undertaken an extensive bulk sampling exercise to quantify these        
mineralised zones. These zones of mineralisation have the potential to add to   
the mineable tonnage and resource estimates. This also suggests that mass mining
in larger stopes will be viable.                                                
The Company embarked on its underground sampling process in June 2008. The first
samples were obtained through access via East Shaft (Consolidated Main Reef) on 
5 level (60 metres below surface).                                              
Approximately 100 metres of strike was sampled from the hanging wall of the     
South Reef utilising a method referred to as "slyping".  This involves drilling 
holes of approximately 200 to 500mm (spaced about 1m apart) into the hanging    
wall and utilising expanding gas cartridges to "pop" off the sample. The        
sampling is geologically controlled and a single bulk sample can be made up of  
10 to 15 separate entities, depending on the geological feature being analysed. 
A bulk sample can weigh up to 0.5 ton.                                          
The initial results have become available and are proving to be encouraging     
(Table 1). This represents a range of 0.5 g/t to 1731 g/t from each 0.5 tons of 
homogenised sample.                                                             
Table 1: Initial Results of Bulk Sampling                                       
Table 1: Initial Results of Bulk Sampling                                       
Table 1: Initial Results of Bulk Sampling                                       
Sample ID (WBS1)    Values(g/t)    Geology Comments                             
R_4801              0.5            Gritty Quartzite. Sulphides.                 
R_4802              0.68           Quartzite                                    
R_4803              28.3           MPC (South reef). Sulphides                  
R_4804              0.68           Quartzite                                    
R_4805              78.8           Gritty Quartzite. Sulphides. Veining         
R_4806              7.48           Gritty Quartzite. Sulphides. Veining         
R_4807              2.54           Quartzite                                    
R_4808              0.56           Quartzite                                    
R_4809              12.9           MPC (South reef). Sulphides                  
R_4810              1 731.0        Quartzite                                    
R_4811              11.5           Quartzite                                    
R_4812              82.7           MPC (South reef). Sulphides                  
R_4813              25.7           Gritty Quartzite                             
R_4814              19.4           South Reef. Sulphides                        
R_4815              1.86           Gritty Quartzite                             
The implications of these results are significant. They show that the source of 
gold is not only confined to the conglomerate bands, but are also present in    
grit bands, zones of disseminated pyrite and in inter-conglomerate quartzites.  
This finding would add significantly to the amount of tonnage and resources     
available for mining.                                                           
Bulk sampling is continuing and is currently focusing on a cross-cut from the   
Main Reef to the South Reef (on 5 level, East Shaft) and on 9 level (+/-190m    
below surface, East Shaft) and will commence in the near future on 5 level, New 
Unified Shaft (CMR, approximately 3500m to the west of East Shaft).             
(* please refer to the Company`s website for a diagram)                         
Other exploration achievements:                                                 
Seven shafts have been re-accessed                                              
Completed reconnaissance sampling and mapping over CMR, Crown Mines and         
Preliminary mapping on City Deep                                                
Confirmation of un-mined mineralised pillars and reefs through underground      
surveying an sampling programme                                                 
Reconnaissance drilling on Pyritic Quartzites of Village Main and City Deep     
Resource upgraded by 1.8Moz in March 2008                                       
Initial production slots/surface targets identified - slots 2,3,4,5,7,8,9 and 14
Reconnaissance mapping has identified:                                          
Un-mined sections of the North and Main Reef                                    
Un-mined duplicated sections of the Bird and Kimberley Reefs - due to faulting  
Large sections of un-worked Elsburg Reefs located towards the southern boundary 
of the 3C`s tenement areas                                                      
Pyritic Quartzites (Erosional Channels cutting through the North, Main Reefs and
Main Reef Leader)                                                               
Viable grades in the soils                                                      
Un-complicated mineralogy of orebodies increasing the potential for better      
Since the start of the drilling programme in November 2006, CRG has completed   
32,247m of reverse circulation drilling, 2,509m of soil sample drilling, 1,456m 
of geotechnical diamond drilling and 15,831m of diamond drilling.               
(* please refer to the company website for a diagram)                           
Drilling has provided the following information:                                
Geological setting                                                              
Mining Targets - Slots                                                          
Presence of mineralised zones                                                   
Presence of zones of low grade mineralisation                                   
Confirmation of positions of pillars, as reported on old stope plans            
Confirmation of the spatial distribution of values predicted by geostats        
Confirmation of structural information indicated by the regional mapping        
Confirmation of duplication of reef packages - wider surface target areas       
Presence of un-mined reefs (i.e. North Reef, South South Reef)                  
Presence of new reefs (i.e. additional conglomerate bands in the Bird Reefs)    
Water table heights and the localities of perched water tables                  
Geotechnical controls for mine design                                           
Additional Resources                                                            
Regional mapping first indicated the presence of mineralisation outside the     
conglomerate bands or `reefs`. Drilling these occurrences has confirmed zones of
mineralisation in disseminated pyrite and grit bands outside the known reefs.   
Following on from this discovery, underground exploration has confirmed its     
presence. It became apparent that quantifying these additional sources of gold  
would have to be through bulk sampling. Channel sampling produces a 1 in 12000  
representation whereas bulk sampling produces a 1 in 200 representation making  
the data more reliable.                                                         
The results from the underground bulk sampling are significant as they confirm  
the presence of mineralised material outside the conglomerate bands in zones of 
disseminated pyrite, grit bands and inter-conglomerate quartzites. This finding 
would also add significantly to the amount of mineable tonnage.                 
(* please refer to the Company`s website for a diagram)                         
Gold production ramp-up                                                         
The Company is on schedule to meet its initial target of producing gold at an   
annualised rate of 100,000 ounces by the end of 2009 with trial mining to begin 
in October 2008.                                                                
Trial Mining                                                                    
The Company has purchased a plant with the capacity to process ore at a rate of 
20 tons an hour from trial mining. The plant, acquired from Gekko Systems in    
Australia at a cost of US$5.74 million, comprises a communication circuit, a    
gravity circuit and a flotation circuit.                                        
It is expected that the plant will be shipped from Melbourne in August 2008 and 
is scheduled to arrive in Johannesburg mid September. It will be erected and be 
suitable for commissioning shortly after its arrival.                           
The trial mining plant, which will be situated on the surface, is expected to be
fully commissioned in October and is expected to ramp up in the following months
to a target rate of around 12,000 tons of ore per month.                        
Trial mining will confirm the Company`s mining and metallurgical concepts and   
determine the final configuration of mining/processing requirements, leading to 
the commencement of full scale mining from surface deposits by the end of the   
first quarter of 2009.                                                          
Full scale mining                                                               
Full scale mining of already targeted surface deposits (down to 10m below       
surface) and shallow underground mining (between depths of 10m to 70m) will     
begin by the end of Q1 2009. The first three mining slots will be accessed for  
surface mining as well as providing access for the company`s ongoing drilling   
and underground bulk sampling programmes.                                       
Issued on behalf of: Central Rand Gold Limited                                  
Date: 31 July 2008                                                              
Greg James                                                                      
Ric Vittino                                                                     
Wayne Epstein                                                                   
(011) 551 4000                                                                  
Buchanan Communications Limited         +44 (0) 20 7466 5000                    
Bobby Morse / Ben Willey                                                        
Evolution Securities Limited            +44 (0) 20 7071 4300                    
Simon Edwards / Chris Sim / Neil Elliot                                         
Jenni Newman Public Relations (Pty) Ltd +27 (0) 11 772 1033                     
Jenni Newman / Megann Outram                                                    
Macquarie First South Corporate Finance +27 (0) 11 583 2307                     
Amanda Markman / Thato Morojele / Annerie van den Berg                          
Date: 31/07/2008 08:18:38 Supplied by www.sharenet.co.za                     
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