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CRD - Central Rand Gold Limited - Interim Management Statement

Release Date: 12/11/2008 10:32:11      Code(s): CRD
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: GG00B248M601                                                              
Share code on LSE: CRND                                                         
Share code on JSE: CRD                                                          
Interim Management Statement                                                    
November 12 2008 - London and Johannesburg listed Central Rand Gold ("CRG") is  
pleased to provide an operational update on progress being made with the        
development of CRG`s assets in southern Johannesburg.  Highlights include:      
-    Award of New Order Mining Right on September 17, 2008, with the formal     
    execution of the right on November 11, 2008.                                
-    Commencement of trial mining - Gekko Plant was commissioned on October 1,  
    2008                                                                        
-    Bulk sampling and drilling results                                         
-    Appointments - geologist and project manager                               
-    CRG remains on track to produce at an annualised rate of 100,000 oz Au by  
    Dec 2009                                                                    
-    Publication of feasibility study expected in Q1 2009                       
-    Update on water pumping at South West Vertical 1 (SWV1) shaft              
-    Cash at hand as at 30 September 2008 - US$ 105.8 million                   
-    First gold pour expected before year end 2008                              
"After receiving our first New Order Mining Right on September 17, we moved     
swiftly to commence trial mining on October 1, with our focus now firmly on     
generating early cash flows, publishing our feasibility study and meeting our   
initial gold production target," said Greg James, CEO of Central Rand Gold.     
"Ongoing exploration and underground bulk sampling continue to be a major       
priority as we concentrate on building our resource base and upgrading resources
to proven reserves."                                                            
For further information please contact:                                         
Greg James                                                                      
(011) 551 4000                                                                  
Greg.james@centralrandgold.com                                                  
Enquiries:                                                                      
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 Advisers (Pty) Ltd +27 (0) 11 583 2307                    
Amanda Markman / Thato Morojele / Annerie Britz                                 
The full version of this release with the appropriate diagrams is available on  
the CRG website www.centralrandgold.com.                                        
Operational Update                                                              
New Order Mining Right                                                          
Central Rand Gold received its first New Order Mining Right ("the mining right")
from the South African Department of Minerals and Energy (DME) on September 17, 
just 14 months after initial application was made.                              
(For the diagram, please refer to the full version of this release on the CRG   
website, www.centralrandgold.com)                                               
The mining right enables the company to now rapidly transform from an explorer  
to an active miner at its Consolidated Main Reef, Langlaagte and Crown Mines    
tenements in the Central Rand Goldfield.                                        
The targeted resource for initial operations in the awarded New Order Mining    
Right has been depicted in the table below:                                     
SITE           MASS-t          GRADE-g/t       CONTENT-oz                       
8/9            12 930 000      5,76            2 400 000                        
5              13 000 000      5,54            2 320 000                        
4              3 790 000       3,61            440 000                          
7              3 950 000       3,71            940 000                          
Total          33 670 000      5,19            5 620 000                        
This is the first mining right in a series of New Order mining rights that will 
be applied for by CRG. The next two applications will be made in 2009.          
(For the diagram, please refer to the full version of this release on the CRG   
website, www.centralrandgold.com)                                               
Commencement of Trial Mining                                                    
Trial mining commenced as scheduled on October 1, utilising a crushing and      
concentrating plant acquired from Gekko Systems in Australia. The plant has a   
capacity of 20 tons/hour or around 12,000 tonnes per month and is expected to   
produce gold at a rate of 750-1,500 ounces per month.                           
A major objective of the trial mining process is to convert resources into      
reserves by affirming mining and metallurgical processes, physically testing    
mining and backfilling techniques and refining metallurgical processes and      
equipment.                                                                      
Ore parcels of between 100 tons and 500 tonnes are being processed through the  
Gekko plant to test ore grades and recoveries.                                  
Order placed for concentrate processing plant; board approves purchase of second
crusher and concentrator plant                                                  
The company has ordered a pilot Carbon In Leach (CIL) concentrate processing    
plant and has received Board approval to acquire an additional 30 tonnes/hour   
(18,000 tonnes/month) crusher and concentrator plant to increase its initial    
gold production rate and enhance its bulk mining opportunities.                 
The CIL plant is expected to be operational in the first quarter of 2009 while  
the second processing plant is scheduled to be operational before the end of    
March or early April 2009.                                                      
By processing its own concentrate instead of toll-treating, the company will    
gain higher gold recoveries and benefit from cost savings. It is estimated the  
CIL plant will operate initially at a cost of some R90/tonne, reducing to some  
R60/tonne in October 2009 as capacity is increasingly utilised. This compares   
with considerably higher toll treatment costs.                                  
The additional crushing and concentrating plant will enable the company to      
process up to 30,000 tonnes of material per month in total at two different     
locations and accelerate gold production.                                       
The first crushing and concentrating plant (costing approximately US$ 1.7       
million) as well as the CIL plant (costing approximately US$ 2.5 million) have  
already been paid for and the second crusher and concentrating plant will cost  
approximately US$ 5.5 million.                                                  
Surface drilling and bulk sampling results                                      
-    Surface Drilling:                                                          
-    Around 59,000 metres of diamond and RC drilling has been completed     
    -    Resource has been upgraded by 1.8 million oz to 35.6 million oz as a   
         result of exploration work                                             
    -    There has been confirmation of un-mined mineralised pillars and reefs  
-    RC drilling has been carried out on pyritic quartzites at Village Main 
         and City Deep                                                          
    -    Uncomplicated orebodies = potential for better recoveries.             
-    Reconnaissance mapping & trenching has identified:                         
-    Un-mined sections of North and Main Reef                               
    -    Un-mined duplicated sections of Bird & Kimberley Reefs - faulting      
    -    Large sections of un-worked Elsburg Reefs towards southern boundary of 
         3Cs                                                                    
-    Potential additional tonnage  - mineralised halos in hanging wall and  
         footwall of conglomerate bands of Main Reef package - leaching         
         potential                                                              
-    Bulk Sampling                                                              
-    Discovery of gold outside reef horizons indicates a potential increase 
         in mineable tonnes and resources.                                      
    -    Underground bulk sampling has been undertaken to quantify mineralized  
         zones in hanging and footwalls and between reef mineralization (it was 
established that channel/chip sampling was not delivering sufficient   
         representivity)                                                        
    -    Using an innovative approach CRG has developed a breakthrough in       
         continuous bulk sampling                                               
-    A headgear, winder and hoistroom have been successfully installed on   
         East Shaft to assist with haulage of bulk samples                      
Appointments                                                                    
Two further senior members to the senior management team have been appointed:   
Riccardo Francesco Tonini: Riccardo started his project management career at    
Bateman Engineered Technologies 13 years ago, where he has held various         
positions from Senior Project Manager to his present position as General        
Manager:  Project Execution (a board level position within the company).  In    
this role, he had overall responsibility for management of projects,            
construction, commercial, safety, health & environment and IT systems           
development and implementation.                                                 
Keith Matier: Keith started his career as a geologist at a contract geological  
service provider in 1993, where he was responsible for all geological activities
for clients.  He specialises in large scale platinum and gold exploration       
projects. Keith has gained his experience through working at MSA Geoservices.   
Water Pumping at SWV1 Shaft                                                     
On October 6, 2008, the company received notification of East Rand Proprietary  
Mines Limited`s (ERPM) withdrawal of pumping at the SVW1 shaft. This was in     
response to the death of two employees owing to asphyxiation while conducting   
routine water measurements. These pumps are utilised to maintain the water      
levels in the Central Rand at approximately 900 metres below surface.           
Central Rand Gold has calculated that ERPM`s decision to stop pumping at its    
south-west vertical shaft will have no short or medium term effects on its own  
mining operations.                                                              
Pre-empting that pumping may at some stage cease, CRG five months ago conducted 
an investigation which showed that it would take at least four years for this   
underground water to affect or interfere with its own shallow mining operations 
in the area. ERPM had been pumping water at a rate of 60 megalitres per day.    
CRG is confident that it has ample time to address this situation and is        
examining its various options.                                                  
Cash Position                                                                   
At at September 31, 2008 the company had US$ 105.8 million in cash. The majority
of cash is currently held in British Pounds. Despite the weakening of the Pound 
against the US$ over the last few weeks, the South African Rand is the currency 
in which the company has most of its operational cash exposure. The Rand has    
reported weakening against both the US$ and the Pound over this period.         
The Board is meeting in December where a full review of the 2009 mining plan and
budget will be considered in light of the current cash resources available to   
the company. Further updates to the market will follow in due course.           
Following this review the Company will revise, update and upgrade its current   
draft feasibility study to the level and accuracy appropriate to the reviewed   
mining plan. This exercise is expected to take four months to complete and will 
be a significant part of the confirmation and upgrading of mineral resources to 
reserves.                                                                       
The current cash spend is in line with budget estimations.                      
Overview                                                                        
CRG has one of the largest gold resources in the world. Its management ream has 
a strong track record of building large scale mining projects. Through the      
application of tried and tested mining methods, around four million ounces of   
gold is expected to be extracted from the CMR, Langlaagte and CMR tenements     
alone over the next seven years. The company has the necessary political and    
community backing following a highly inclusive Environmental Impact Study       
process.                                                                        
Ends                                                                            
Issued on behalf of: Central Rand Gold Limited                                  
Date: November 12, 2008                                                         
About CRG                                                                       
Central Rand Gold is engaged in gold mining and exploration in southern         
Johannesburg, South Africa.  With JORC and SAMREC-compliant resources of over   
35.6m oz of gold, CRG has a primary listing on the London Stock Exchange and a  
secondary listing on the JSE Limited. CRG`s operating subsidiary Central Rand   
Gold South Africa is currently involved in prospecting an area south of the     
Johannesburg Central Business District, known as the 3C`s (Consolidated Main    
Reef, Crown Mines and City Deep) as well as Langlaagte, the farm where gold was 
first discovered in the Witwatersrand in 1886 by Australian prospector George   
Harrison.                                                                       
Date: 12/11/2008 10:32:11 Supplied by www.sharenet.co.za                     
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