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CRD - Central Rand Gold Limited - Interim management statement

Release Date: 20/05/2010 07:05:17      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 2007/019223/10)             
ISIN: GG00B24HM601                                                              
Share code on LSE: CRND                                                         
Share code on JSE: CRD                                                          
("CRG" or the "Company" or the "Group")                                         
INTERIM MANAGEMENT STATEMENT                                                    
HIGHLIGHTS                                                                      
Metallurgical plant upgrade and optimisation completed                          
Decline development 952m from portal                                            
Second decline two months ahead                                                 
Additional surface exploration target identified.                               
US$11.2 million cash balance at the end of March 2010                           
Progress towards further equity fund raising on track                           
OPERATIONAL UPDATE                                                              
Mining                                                                          
Decline development within the high grade eastern payshoot is now 155m below    
surface and advanced an estimated 952m. The second decline development targeting
the high grade western payshoot has started two months ahead of schedule and has
already advanced 85m and is 153mbs. A total of 271m of reef development has been
completed to date.                                                              
Both mining and processing personnel have now converted to a continuous 12-hour 
shift roster. This change in shift hours is expected to significantly improve   
efficiencies and reduce costs compared to the previous 8-hour shift cycle       
Metallurgy                                                                      
A number of initiatives were implemented on the Metallurgical plant to improve  
recovery and production. This was undertaken mainly during March 2010 when the  
plant was shut down while the necessary changes were made.                      
The steady feed into the Bateman concentrator was resolved by implementing a    
live stockpile with withdrawal tunnel underneath to enable a controlled         
vibrating feeder to consistently feed the optimal tonnage into the crushing     
circuit and eliminate the lumpy feed issues to date. This has improved          
throughput in the Bateman plant.                                                
The CIL plant has been successfully converted into an increased capacity CIP    
plant by the addition of a 150 cubic metres pre-leach tank with a shear reactor 
to increase effective retention time and improve dissolved oxygen levels that   
are critical to the leach process. Improved direct feed arrangements into the   
CIP plant have also enabled a step increase in throughput through the circuit   
and already a steady state 13 500 tpm has been achieved at current mining rates.
We are currently processing the oxide material from open pits through the plant 
while the underground development opens up new stoping areas for sulphide ore   
scheduled for the latter part of 2010.                                          
From a production perspective the Bateman concentrator is achieving an excellent
recovery on the oxide material, however, throughput and availability is still   
being optimised.                                                                
The CIP has been performing very well to forecast and is achieving both expected
recovery and throughput on the oxide material. Availability has since start up  
in March exceeded forecast.                                                     
During processing of underground sulphide material we achieved consistent tail  
grades of around 0.2g/t on both the flotation plant and leach circuit which are 
confirming the expected recoveries once steady state sulphide production is     
underway later this year.                                                       
The gold produced for year to date is 2 312 oz to 10 May 2010. This includes    
both bullion smelted on site and loaded carbon sent to Rand Refinery for        
processing.                                                                     
Exploration                                                                     
The Company has put in place several strategies to leverage off the current high
gold price and provide additional ore material to ensure that the process plant 
continues to operate to capacity during the ramp up to underground stope        
production.                                                                     
Current Expansion of Open Pit Operations                                        
The company has recently secured permission to extend open pit operations,      
approximately one kilometre from the process plant. Three open pits are         
envisaged for this area providing approximately four months of production. The  
highly weathered nature of the Main Reef, Middling and Main Reef Leader material
targeted by the company allows for extraction through free mechanical digging to
depths of around 20m. The pits will be rehabilitated concurrently with mining.  
An estimated "Exploration Target" of between 30 000t and 40 000t at a grade of  
between 2.8 g/t and 3.2 g/t has been identified to depths not exceeding 20m.    
The new open pit operations in the New Unified Area are close to the existing   
Process Plant at CMR.                                                           
Optimisation Studies underway for New Pits                                      
Systematic mechanical trenching and geological mapping and sampling has         
identified significant open pit "Exploration Target" potential in the "White    
Reef, approximately two kilometres from the processing plant. Current work has  
suggested that unlike the free digging Main Reef material in the immediate      
vicinity of the plant, limited drilling and blasting may be required. The White 
Reef is particularly well suited to open pit operations in that up to four gold 
bearing units are present in widths of up to 2.5m.                              
Trench results are tabulated below:                                             
Trench Top Band       Mid Top Band    Mid Basal     Basal Band                  
Id                                    Band                                      
TR1    0.67g/t/70cm   0.34g/t/30cm    3.86g/t/90cm  0.08g/t/74cm                
TR2    2.74g/t/52cm                                 0.45g/t/82cm                
TR3    Cavity                                                                   
TR4    1.16g/t/145cm                                10.08g/t/47cm               
TR4a   3.10g/t/200cm                                3.45g/t/54cm                
TR5    2.40g/t/195cm                                0.88g/t/36cm                
TR5a   2.59g/t/148cm                                                            
TR6a   2.54g/t/260cm                                                            
TR6b   4.1g/t/160cm                                                             
TR6c   10.04g/t/98cm                                0.08g/t/55cm                
TR6d   3.67g/t/130cm                                0.49g/t/100cm               
TR6f   0.37g/t/40cm                                 2.72g/t/280cm               
TR6g   Dyke                                                                     
TR6h   2.09g/t/191cm                                3.82g/t/65cm                
TR6i   3.20g/t/200cm                                2.46g/t/100cm               
TR7    4.05g/t/102cm                                3.72g/t/133cm               
TR8    1.73g/t/84cm                                 4.43g/t/54cm                
TR8a   1.18g/t/80cm   3.93g/t/50cm    2.26g/t/77cm  0.22g/t/90cm                
TR9    1.37g/t/66cm                   0.89g/t/123cm                             
TR10   2.26g/t/83cm   1.79g/t/45cm    0.61g/t/35cm  0.21g/t/20cm                
TR10a  2.33g/t/132cm                                1.26g/t/40cm                
TR10b  1.10g/t/120cm                                1.28g/t/120cm               
TR11   1.44g/t/30cm   4.12g/t/30cm    0.79g/t/30cm  0.19g/t/40cm                
TR12   0.63g/t/92cm   2.16g/t/40cm    0.61g/t/171cm                             
TR13   Dyke                                                                     
TR14   0.39g/t/79cm   1.44g/t/35cm    0.23g/t/37cm  0.35g/t/40cm                
An estimated "Exploration Target" of between 190,000t and 210,000t at an        
approximate grade of around 2.1 g/t has been discovered to date.                
Footnote:                                                                       
The potential quantity and grade described by the term "Exploration Target" is  
conceptual in nature and there has been insufficient exploration to define a    
Mineral Resource and it is uncertain if further exploration will result in the  
definition of a Resource. Further exploration work is ongoing, and includes     
trial mining and processing of this shallow target to establish grade and ore   
body continuity, mineability, dilution and throughput characteristics.          
Cash Position                                                                   
As at the end of March 2010, the Company had approximately US$11.2 million on   
hand. Set out below is an abridged cash flow statement.                         
Cash Reconciliation                          Value US$                          
                                            (million)                           
Balance as at 31 December 2009               15.9                               
Cash Box proceeds, 22 January 2010             5.8                              
Capital Expenditure                          -0.8                               
Operational and Administrative Expenditure   -11.5                              
Forex                                        -0.4                               
Other Income                                 0.8                                
Gold Sales                                   1.4                                
Balance as at end March 2010                 11.2                               
Capital Raising                                                                 
As indicated in the Chairman`s Report of Annual Report 2009, it is envisaged    
that additional equity finance of at least US$35 million will be sought to fund 
the Company`s mine development plan and provide the platform for sustainable    
gold production going forward.                                                  
Black Economic Empowerment                                                      
At the hearing of the interdict applications on 5 November 2009, the Court      
dismissed Puno`s request for an urgent interdict to halt CRG`s trial mining     
activities and made a costs order against Puno to pay the costs incurred by the 
CRG Group in opposing the application. Puno subsequently appealed and on 1 April
2010, the Court rejected Puno application for leave to appeal the decision      
handed down by the South Gauteng High Court. The arbitration procedures are     
continuing with Puno Gold Investments (Pty) Ltd. It is expected that the        
arbitration proceedings will be completed within 2010.                          
Johannesburg                                                                    
20 May 2010                                                                     
JSE Sponsor                                                                     
Macquarie First South Advisers (Pty) Limited                                    
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                                                    
Date: 20/05/2010 07:05:17 Supplied by www.sharenet.co.za                     
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