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CRD - Central Rand Gold Limited - Production and commercial update

Release Date: 16/02/2012 17:49:48      Code(s): CRD
CRD - Central Rand Gold Limited - Production and commercial update              
The following amendment has been made to the `PRODUCTION AND COMMERCIAL         
UPDATE` announcement released on 15 February 2012 at 07:00 under RNS No 4113X,  
and on SENS.                                                                    
In the paragraph pertaining to `Mine Production`, the date upon which the       
Cancellation was finally set aside by agreement between the Company and the     
Department of Mineral Resources has been corrected to 22 December 2011 rather   
than 2012, as previously released. This amendment is of significant nature as   
it means that this suspension is no longer of force at all, nor will it be      
revived, based on the facts relied upon in the initial suspension.              
Consequently, the Company may continue with its operations in line with its     
original timescale.                                                             
All other details remain unchanged.                                             
The full amended text is shown below.                                           
Central Rand Gold Limited                                                       
(Incorporated as a company with limited liability under the laws of             
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:                                                              
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       
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 2011.                                          
Mine production, using the conventional stoping methodology, for the last two   
months of 2011 was as follows:                                                  
        Underground      Surface                                                
        Tons   Grade     Tons     Grade (g/t)                                   
(t)    (g/t)     (t)                                                    
November 6 436  4.28      17 897   3.51                                         
December 4 374  4.09      14 490   3.36                                         
Totals   10     4.20      32 387   3.44                                         
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.          
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          
Depth Tons     Grade Content  Tons    Grade  Content  Tons    Grade  Content    
(mbs) (mil     (g/t) (Oz)     (mil    (g/t)  (Oz)     (mil    (g/t)  (Oz)       
     lion)                   lion)                   lion)                      
30 -  0.34     3.19  0.03     1.12    3.14   0.11                               
100 - 1.13     3.69  0.13     4.61    4.18   0.62                               
450 -                         3.25    5.21   0.54                               
900 -                         2.92    6.29   0.59     0.27    6.21   0.06       
1500                          2.68    7.57   0.65     0.25    7.97   0.07       
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)     (mil    (g/t)  (Oz)    (million)  (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                                                                    
16 February 2012                                                                
JSE Sponsor                                                                     
Merchantec Capital                                                              
Date: 16/02/2012 17:49:47 Supplied by www.sharenet.co.za                     
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