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CRD - Central Rand Gold Limited - Production and commercial update

Release Date: 15/02/2012 10:05:44      Code(s): CRD
CRD - Central Rand Gold Limited - Production and commercial 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: GG00B24HM601                                                              
LSE share code: CRND   JSE share code: CRD                                      
("Central Rand Gold" or the "Company")                                          
PRODUCTION AND COMMERCIAL UPDATE                                                
Central Rand Gold is pleased to provide the following production and            
commercial update:                                                              
PRODUCTION                                                                      
During 2011, Central Rand Gold produced 14 856 ounces of gold, representing     
an increase in gold production of 60% from 2010, which was in line with the     
expected production figures provided in November 2011.                          
FINANCIAL UPDATE                                                                
Cash and cash equivalents as at 31 December 2011 amounted to $5.3 million,      
which was $0.5 million higher than the Company`s cash position at 30 June       
2011.                                                                           
MINE PRODUCTION                                                                 
Mine production was negatively impacted by the withdrawal of the Company`s      
New Order Mining Right on 22 September 2011. On 24 October 2011, the            
Minister of Mineral Resources of the Republic of South Africa temporarily       
suspended the cancellation of the Mining Right, thus enabling the Company to    
continue with its operations, work re-commenced on 1 November 2011, whilst      
the Cancellation was finally set aside by agreement between the Company and     
the Department of Mineral Resources on 22 December 2012.                        
Mine production, using the conventional stoping methodology, for the last       
two months of 2011 was as follows:                                              
        Underground      Surface                                                
        Tons   Grade     Tons  Grade                                            
        (t)    (g/t)     (t)   (g/t)                                            
November 6 436  4.28      17    3.51                                            
                         897                                                    
December 4 374  4.09      14    3.36                                            
                         490                                                    

Totals   10     4.20      32    3.44                                            
        810              387                                                    
Central Rand Gold is planning to increase underground production to 12 000      
tons per month by the third quarter of 2012 whilst surface mining is            
expected to continue for the next three to five months. Several new target      
areas, which could extend the life of the surface operations, have been         
identified.                                                                     
METALLURGY                                                                      
The gold plant continues to perform well with plant availability averaging      
92% and metallurgical recoveries of 95% having been reported during the last    
six months of 2011.                                                             
At present, plant capacity is being maintained at 12 000 tons per month.        
However, engineering studies are currently underway to improve the crushing     
circuit and increase plant capacity.                                            
The Company plans to maintain its current toll treatment strategy whereby,      
in conjunction with a neighbouring processing plant operated by Mintails        
Limited ("Mintails"), Central Rand Gold has undertaken to treat any excess      
mine production at Mintails` Mogale gold facility.                              
RESOURCES AND RESERVES                                                          
Recent Resource evaluation studies on the Main Reef undertaken by Dr Carina     
Lemmer (an Independent Competent Person) have incorporated additional           
sampling information obtained through the current surface and underground       
mining and this exercise has allowed for the reclassification and upgrade of    
approximately 160 000 ounces contained within the Consolidated Main Reef        
area into the SAMREC compliant Measured Resource category.                      
Main     Measured Resources   Indicated Resources       Inferred Resources      
Reef CMR                                                                        
Depth     Tons  Grade  Content Tons       Grade Content  Tons  Grade  Content   
(mbs)     (mil  (g/t)  (Oz)    (million)  (g/t) (Oz)     (mil  (g/t)  (Oz)      
         lion)                                          lion)                   
30 -      0.34  3.19   0.03    1.12       3.14  0.11                            
100m                                                                            
100 -     1.13  3.69   0.13    4.61       4.18  0.62                            
450m                                                                            
450 -                          3.25       5.21  0.54                            
900m                                                                            
900 -                          2.92       6.29  0.59     0.27  6.21   0.06      
1500m                                                                           
1500 -                         2.68       7.57  0.65     0.25  7.97   0.07      
3000m                                                                           
                                                                                
Total     1.47  3.57   0.16    14.58      5.38  2.51     0.52  7.07   0.13      
*Totals have been rounded off to two decimal points.                            
This represents an increase in Measured and Indicated Resources of              
approximately 3%. Whilst the quantum of increase is relatively minor, the       
confidence increase between Measured Resource and Indicated is substantial.     
This confidence increase is largely due to additional verification sampling     
undertaken during the course of current operations                              
         Measured Resources   Indicated Resources       Inferred Resources      
Update    Tons  Grade  Content Tons       Grade Content  Tons  Grade  Content   
         (mil  (g/t)  (Oz)    (million)  (g/t) (Oz)     (mil  (g/t)  (Oz)       
lion)                                          lion)                   
2009                           14.9       5.43  2.59     1.1   7.07   0.25      
2012      1.47  3.57   0.16    14.6       5.38  2.51     0.52  7.07   0.13      
*Totals have been rounded off to two decimal points.                            
It is worth noting that the Resource now excludes material shallower than 30    
metres (which has been reclassified as Exploration Target Material and is       
currently being exploited through open pit mining). This updated Mineral        
Resource also takes into account the Resource depletion arising from the        
Company`s underground mining activities over the past 24 months.                
The Company`s Resources in other areas remain unchanged. This upgrade only      
impacts the Main Reef in the CMR area.                                          
The decision to cease making use of the mechanised longhole stoping mining      
technique has required that the Company`s Mineral Reserve be revisited.         
Scoping studies and trial mining using conventional hand held mining            
techniques have been completed and appear robust and economic. The Company      
is currently in the process of updating the Mineral Reserves in line with       
this new mining methodology and an updated Reserve statement is expected to     
be completed during the first half of 2012.                                     
ACID MINE DRAINAGE                                                              
The current water level in the Central Basin is 428 metres below surface. It    
is pleasing to note that the current rate of rise of approximately 0.3          
metres per day ("mpd") is below the anticipated rate of rise of 0.5 mpd.        
The Company remains engaged in discussions with Trans Caledon Tunnel            
Authority ("TCTA") (the appointed implementing agent by the Minister of         
Water Affairs) and its legal team with regards to the use of the submersible    
pumps purchased by the Company.                                                 
NOTE:  The information in this statement relating to Mineral Resources and      
geology has been reviewed and approved by Mr Keith Matier, BSc (Hons), GDE,     
PrSci Nat, who is a competent person in terms of the SAMREC and JORC codes.     
Mr Matier is Geology Manager of Central Rand Gold South Africa (Proprietary)    
Limited and has over 17 year`s experience in exploration, mineral resource      
management and mineral evaluation.                                              
For further information, please contact:                                        
Central Rand Gold                                      +27 (0) 11 674 2304      
Johan du Toit / Patrick Malaza                                                  
Evolution Securities Limited                           +44 (0) 20 7071 4300     
Chris Sim / Neil Elliot                                                         
Merchantec Capital                                     +27 (0) 11 325 6363      
Roger Pitt / Monique Martinez                                                   
Buchanan                                               +44 (0) 20 7466 5000     
Bobby Morse / James Strong                                                      
Jenni Newman Public Relations (Proprietary) Limited    +27 (0) 11 506 7351      
Jenni Newman                                                                    
15 February 2012                                                                
Johannesburg                                                                    
JSE Sponsor                                                                     
Merchantec Capital                                                              
Date: 15/02/2012 10:05:44 Supplied by www.sharenet.co.za                     
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