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CRD - Central Rand Gold Limited - Trial Mining update - Successful stoping and

Release Date: 01/03/2010 09:06:35      Code(s): CRD
CRD - Central Rand Gold Limited - Trial Mining update - Successful stoping and  
CAF pillar testing                                                              
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 2007/019223/10)                               
ISIN: GG00B24HM601                                                              
Share code on LSE: CRND                                                         
Share code on JSE: CRD                                                          
("Central Rand Gold" or "CRG" or the "Company")                                 
TRIAL MINING UPDATE - SUCCESSFUL STOPING AND CAF PILLAR TESTING                 
Central Rand Gold, the gold mining company with assets in Southern Johannesburg,
is pleased to announce an update on the progress of its Trial Mining operations.
Key highlights include:                                                         
-    All objectives of first trial stoping successfully met                     
-    New geotechnical Cemented Aggregate Fill ("CAF") pillar has performed to   
    specifications                                                              
-    Stoping successfully commenced on either side of the trial CAF pillar      
-    Second trial stope panel blast on schedule for completion  by end of March 
    2010                                                                        
-    CRG remains on track to complete trial mining by the end of 1Q 2010, where 
    after Snowden Mining Industry Consultants ("Snowden") will complete a       
revised competent person`s report on the project.                           
"The results of the initial stoping and CAF pillar installation have been very  
encouraging as they have proven that CRG has developed an economic, practical   
and viable geotechnical methodology through the use of CAF pillars. The final   
trial mining stage involves the mining of the second trial stope panel in early 
March to test and refine the ore extraction methodology. The conclusion of the  
trial mining will herald a significant milestone for the Company as it will, for
the first time clearly define and physically prove the economic viability of its
designed mining methodology." said Central Rand Gold`s CEO, Johan du Toit.      
BACKGROUND                                                                      
As indicated in CRG`s Operational and Strategic Roadmap update on 22 January    
2010, the company`s objectives in 1Q 2010 are to:                               
-    Extract first stoping block in February 2010                               
-    Complete trial mining and metallurgical testing on underground ore         
    -    Trial mining exercise was designed to achieve three major objectives   
    -    To process ("ore") parcels from underground and surface activities as  
bulk samples to test gold grades and recoveries                        
    -    To allow the conversion of mineral resources into ore reserves after   
         confirming mining and metallurgical processes; and                     
    -    To physically test mining and backfilling techniques                   
-    Validate Snowden assumptions                                               
-     Commence metallurgical plant upgrade to improve recoveries to 86%         
-    Confirm technical feasibility and economic viability of the CRG Project    
-    Issue a revised Snowden CPR based on the results of trial mining           
-    Prepare for US$25 to US$35 million Q2 Capital Raising                      
Set out below is an update on the initial stoping and backfilling technique.    
GEOTECHNICAL SUPPORT                                                            
One of the key challenges for the Company`s mining project has been to ensure   
that a stringent geotechnical methodology was developed. CRG used the services  
of Middindi Consulting, who have considerable experience in underground mining  
in South Africa, to assist in the design of this methodology, which was also    
independently reviewed by Snowden.                                              
The basic geotechnical support design is as follows:                            
-    The Main Reef stope comprises a lateral 12m wide stope slot. The length of 
    the stope slot will be determined by ground conditions and payability, but  
    should not exceed 15m in length beween levels.                              
-    Between each main reef stope a 3m wide trench will be cut into the middling
    and Main Reef, which will then be filled using CAF, to create a cement      
    pillar from footwall to hanging wall.                                       
-    CAF consists of waste rock, water and cement which is mixed underground in 
a stockpile, and installed into the excavated trench using a loader. A      
    bulkhead or stopper will be constructed below the trench. The CAF pillar    
    will be allowed to cure for at least seven days.                            
-    After the Main Reef stope has been blasted a void will remain between the  
two CAF pillars that can be filled with backfilled waste                    
This geotechnical support design has been tested in full by the first trial     
mining blast, which took place on Wednesday, 24 February 2010.  Photographs     
relating to the CAF pillar installation and stope blasting exercise can be      
viewed at www.centralrandgold.com                                               
TRIAL STOPING                                                                   
All set objectives have been successfully achieved through the first trial      
stoping blast. The main objectives of this trial stoping panel were as follows: 
OBJECTIVES                           RESULT                                    
1 Would the stope blast on either      Production drill holes were drilled      
 side of the CAF pillar damage the    at 35 degrees, 10m east and 10m           
 integrity of cemented pillar?        west of the installed CAF pillar.         

                                      CAF pillar suffered no damage on          
                                      either side due to blasting.              
                                                                                
A 64mm hole was also drilled              
                                      through the centre of the CAF             
                                      pillar and examined by independent        
                                      geotechnical consultants. No              
cavities were detected confirming         
                                      successful continuity and                 
                                      installation of the CAF                   
                                      methodology.                              
2 Would the stope drill and blast      Planned fragmentation achieved.          
 designed achieve the required                                                  
 fragmentation?                                                                 
3 Would stope blasting damage the      Stope blasting resulted in minimal       
hangingwall of the stope and cause   damage to the hangingwall. No             
 significant rock failure?            significant rock failure was              
                                      detected.                                 
4 Would the blasted ore fall down a    Encouragingly, an estimated 90% of       
35 degree slope (footwall) to the    the blasted material fell to the          
 level below?                         level below allowing easy                 
                                      extraction using a conventional           
                                      loader. The remaining 10% was             
washed down to the reef drive             
                                      below.                                    
FURTHER PLANNED TRIAL STOPING                                                   
The second trial stope panel will test the performance of ore extraction over a 
15m stope length between 12m spaced CAF pillars. This trial panel will test the 
resue stope mining method where the middling is mined first and then removed,   
followed by the mining of the Main Reef. This panel will be mined in early March
2010 and will determine the potential modifying dilution factors to be applied  
to the mine plan. A schematic of the mining method can be viewed at             
www.centralrandgold.com                                                         
PRE-FEASIBILITY PROGRESS                                                        
Snowden has commenced revising the new operating and capital cost estimates to  
be applied to the mine plan based on real data determined during the trial      
mining phase.                                                                   
Snowden is also reviewing the additional optical sorting test work currently    
being completed following the successful preliminary work concluded in December 
2009. The additional test work has been carried out on higher grade Main Reef   
ore (6.5 g/t) in comparison to the previous test work which used a lower grade  
sample (2.4 g/t). The aim of these tests is to determine the efficiency of the  
optical sorter in upgrading the Main Reef ore by removing waste dilution or     
lower grade middling encountered during resue stoping.                          
Based on progress to date, CRG remains confident that it can achieve all the    
objectives within the stated timelines as communicated in January 2010.         
For further information, please contact:                                        
Central Rand Gold                                 +27 (0) 11 551 4000           
Johan du Toit / Patrick Malaza                                                  
                                                                                
Evolution Securities Limited                      +44 (0) 20 7071 4300          
Simon Edwards / Chris Sim / Neil Elliot                                         
                                                                                
Macquarie First South Advisers (Pty) Limited      +27 (0) 11 583 2000           
Thembeka Mgoduso / Annerie Britz / Melanie de                                   
Nysschen / Manisha Ramlakhan                                                    
                                                                                
Buchanan Communications                           +44 (0) 20 7466 5000          
Bobby Morse / Katharine Sutton                                                  

Jenni Newman Public Relations (Pty) Limited       +27 (0) 11 506 7300           
Jenni Newman / Megann Outram                                                    
Johannesburg                                                                    
1 March 2010                                                                    
JSE Sponsor                                                                     
Macquarie First South Advisers (Pty) Limited                                    
Date: 01/03/2010 09:06:35 Supplied by www.sharenet.co.za                     
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