Go Back Email this Link to a friend


CRD - Central Rand Gold Limited - Independent Competent Person`s Report

Release Date: 12/06/2012 08:00:04      Code(s): CRD
CRD - Central Rand Gold Limited - Independent Competent Person`s Report         
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")                                          
INDEPENDENT COMPETENT PERSON`S REPORT                                           
The Company is pleased to announce the completion of a new South African Mining 
Code compliant Independent Competent Person`s Report ("ICPR") undertaken by     
mineral industry experts, Venmyn Rand Proprietary Limited ("Venmyn").  Three key
areas were targeted in this report:                                             
1    To independently adjust the Company`s Resource base in line with the   
         rising water table;                                                    
    2    To re-establish and confirm the South African Code for the Reporting   
         of Exploration Results, Mineral Resources and Mineral Reserves         
("SAMREC Code") compliant Probable Reserves based on conventional      
         South African mining techniques; and                                   
    3    To ascribe an independent market related value to the Company based on 
         all of its mineral assets.                                             
*    Adjustment of Resources in line with the rising water table                
The Company has embarked on a strategic reassessment of the potential impact of 
the rising water table on the substantial Resource base the Company currently   
controls. The Company and Venymn have decided that Mineral Resources deeper than
450 metres below surface ("mbs") should be considered temporarily inaccessible  
pending signature of agreements between the South African Department of Water   
Affairs and Forestry ("DWAF") and South African Government contracted service   
provider, Trans Caledon Tunnel Authority ("TCTA") allowing for pumping of water 
below this level. This has the effect of downgrading all Resources below 450    
metres in depth to the SAMREC category of Exploration Target. It must be        
emphasised that the confidence in gold content and continuity remains unchanged 
and that the category may be restored upon signature of the aforementioned      
agreements and appropriate capital costing and economic assessments.            
SAMREC Compliant Mineral Resources above 450mbs                                 
Area         Category   Reef      Width  Tonnes(Mt) Grade  Content              
                                                   (g/t)  (Moz)                 
Consolidated Measured   Main Reef 143    1.47       3.57   0.16                 
Main Reefs                                                                      
            Indicated            133    5.73       3.98   0.73                  
            Indicated  Main Reef 100    0.71       9.98   0.23                  
Leader                                                   
            Inferred             100    1.11       11.18  0.40                  
            Indicated  White     164    2.99       4.21   0.40                  
                       Reef                                                     
Inferred             166    2.64       3.45   0.31                  
            Indicated  Kimberley 151    2.60       3.69   0.31                  
                       Reef                                                     
            Inferred             146    0.59       3.71   0.07                  
Crown Mines  Indicated  Main Reef 110    2.57       5.63   0.47                 
            Inferred             120    2.21       4.81   0.34                  
            Indicated  Main Reef 112    0.01       18.02  0.01                  
                       Leader                                                   
Inferred             123    0.56       16.76  0.30                  
City Deep    Indicated  Main Reef 112    0.78       7.63   0.19                 
            Inferred             118    0.17       6.42   0.04                  
            Inferred   Main Reef 102    0.53       8.29   0.14                  
Leader                                                   
Simmer and   Indicated  Main Reef 101    0.73       8.45   0.19                 
Jack                    Leader                                                  
            Inferred             121    0.15       8.20   0.04                  
Village Main Indicated  Main Reef 140    0.53       6.30   0.10                 
Reefs and                                                                       
Robinson                                                                        
Deep                                                                            
Inferred   Main Reef 116    0.17       14.35  0.08                  
                       Leader                                                   
Total                             134    26.24      5.34   4.51                 
Note, Rounding may result in minor computational discrepancies                  
*    Re-establishment and restatement of SAMREC Compliant Mineral Reserves      
As set out in the Company`s 2011 Annual Report, due to the change in mining     
technique from mechanised stoping to conventional hand held stoping, which was  
brought about as a result of excessive dilution and costs, a review of the      
Company`s Mineral Reserves was required. Prior to December 2011, the Reserve    
base was estimated at approximately 482,000oz of Probable Reserve. This estimate
was based on the now abandoned mechanised long hole stoping method. Reserves    
were largely defined around two high grade payshoots and tested to depths of    
around 900mbs at the deepest point.                                             
The new Reserve presented in the ICPR is estimated at approximately 406,900oz of
Probable Reserve. Aside from the change in mining method to reflect the methods 
now employed by the Company, this estimate differs from the former in that it is
only defined to a depth of 450mbs and that it incorporates mining of the lower  
grade area between the two payshoots.                                           
Reserve comparison December 2011 and May 2012                                   
           December 2011   May 2012                                             
Area        CMR West        CMR West                                            
Category    Probable        Probable Reserve                                    
           Reserve                                                              
Tonnage     3.73            3.55                                                
(MT)                                                                            
Grade (g/t) 4.00            3.56                                                
Content     482             407                                                 
(Koz)                                                                           
Maximum     900             450                                                 
Depth (m)                                                                       
This aforementioned change in estimated Probable Reserve is a significantly     
positive endorsement of the Company`s new strategy and the decision to revert to
a more traditional mining method in that, whilst the overall quantum of Reserves
is lower than that previously established, the declaration depth is considerably
less. The February 2012 Resource upgrade which incorporated additional sampling 
information gleaned from surface trenching, has demonstrated that the area      
between the two payshoots is of a higher grade than previously believed and has 
thus become a more viable  economic proposition. The Mineral Resource to Mineral
Reserve conversion was conducted by Mr M L Mohloki of Mohloki Mining CC         
("Mohloki") using actual mining performance and typical Witwatersrand gold      
mining ratios.                                                                  
*    Independent Market Related Valuation of Mineral Assets                     
The approach taken by Venmyn in ascribing a value to the extensive asset base   
was twofold.  The primary method considered all of the Company`s SAMREC         
compliant Resources on an area by area `sum of parts` basis utilising a `market 
related ounce value in the ground`.                                             
Valuation of project areas per unit of Mineral Resource                         
PROJECT      CATEGORY   CONTENT LOW UNIT  HIGH     LOW     HIGH   MEAN          
(Moz)   VALUE     UNIT     VALUE   VALUE  VALUE          
                               (USD/oz)  VALUE    (USDm)  (USDm) (USDm)         
                                         (USD/oz)                               
Consolidated Measured   0.16    80.00     140.00   12.80   22.40  17.60         
Main Reefs                                                                      
            Indicated  1.67    40.00     70.00    66.80   116.90 91.85          
            Inferred   0.79    6.00      10.00    4.71    7.85   6.28           
            Resource   4.33    0.60      1.00     2.60    4.33   3.46           
Target                                                              
            Sub-total  6.95    12.51     21.81    86.91   151.48 119.19         
Crown Mines  Indicated  0.47    40.00     70.00    18.92   33.11  26.02         
            Inferred   0.64    6.00      10.00    3.86    6.43   5.14           
Resource   7.52    0.60      1.00     4.51    7.52   6.02           
            Target                                                              
            Sub-total  8.64    3.16      5.45     27.29   47.06  37.18          
City Deep    Indicated  0.19    40.00     70.00    7.60    13.30  10.45         
Inferred   0.18    6.00      10.00    1.07    1.78   1.42           
            Resource   7.13    0.60      1.00     4.28    7.13   5.70           
            Target                                                              
            Sub-total  7.50    1.73      2.96     12.94   22.21  17.58          
Village and  Indicated  0.10    40.00     70.00    3.96    6.93   5.45          
Robinson                                                                        
            Inferred   0.08    6.00      10.00    0.47    0.79   0.63           
            Resource   4.61    0.60      1.00     2.77    4.61   3.69           
Target                                                              
            Sub-total  4.79    1.50      2.58     7.20    12.33  9.77           
Simmer and   Indicated  0.19    40.00     70.00    7.76    13.58  10.67         
Jack                                                                            
Inferred   0.04    6.00      10.00    0.24    0.40   0.32           
            Resource   3.16    0.60      1.00     1.90    3.16   2.53           
            Target                                                              
            Sub-total  3.39    2.92      5.05     9.90    17.14  13.52          
Other Reefs  Resource   5.41    0.60      1.00     3.25    5.41   4.33          
            Target                                                              
            Sub-total  5.41    0.60      1.00     3.25    5.41   4.33           
GRAND TOTAL / AVERAGE   36.67   4.02      6.97     147.48  255.63 201.56        
Note: In view of the approach that mineral resources deeper than 450mbs should  
be considered temporarily inaccessible, for the purposes of this valuation      
exercise, everything below 450 m is classified as "Resource Target"             
This valuation method is particularly useful in that it allows the Company to   
realise value for individual areas by adopting customised development           
strategies. An average market related value of USD202 million is ascribed to the
total Mineral asset base of the Company.                                        
The declaration of Mineral Reserves through the undertaking of an appropriate   
Pre-Feasibility Study has allowed for a further valuation approach to be        
undertaken. A Discounted Cashflow ("DCF") Analysis and Net Present Value ("NPV")
determination was also undertaken by Venmyn on the Consolidated Main Reef West  
Main Reef mining operation ("CMRW").                                            
As an addendum to the ICPR, Venmyn has also undertaken a production scenario    
analysis in respect of CMR West to gauge the impact of changing production rates
and staged capital deployment. These scenarios have been completed using an     
externally funded, partially externally funded and self funded basis            
representing the different approaches available to the Company. The approach the
Company will ultimately pursue will depend on prevailing market and economic    
conditions at the time of capital requirement. The funding scenarios return NPVs
of ZAR934 million (USD117 million), ZAR658 million (USD82 million) and ZAR344   
million (USD43 million) respectively, with an externally funded approach        
indicating an overall greater return. The externally funded model forms the base
case represented in the ICPR.                                                   
The following information will be available on the Company`s website            
www.centralrandgold.com                                                         
*    A synopsis ICPR report;                                                    
*    The Full ICPR report;                                                      
*    Short form ICPR report for CMRW; and                                       
*    Addendum: Assessing of differing valuation scenarios for CMRW.             
Note: The information in this statement relating to Mineral Resources and       
geology has been reviewed and approved by Mr Keith Matier, BSc (Hons), GDE, Pr  
Sci Nat, who is a competent person in terms of the SAMREC and JORC codes. Mr    
Matier is the Geology Manager of Central Rand Gold South Africa Proprietary     
Limited and has over 18 years` experience in precious metal exploration, mineral
resource management and evaluation.                                             
For further information please contact:                                         
Central Rand Gold                  + 27 (0) 87 310 4400                         
Johan du Toit/Patrick Malaza                                                    
                                                                                
Charles Stanley Securities         + 44 (0) 20 7149 6000                        
Mark Taylor/Marc Milmo/Darren                                                   
Vickers                                                                         
                                                                                
Merchantec Capital                 + 27 (0) 11 325 6363                         
Monique Martinez/Marcel Goncalves                                               
                                                                                
Buchanan                           + 44 (0) 20 7466 5000                        
Bobby Morse/James Strong                                                        

Jenni Newman Public Relations      + 27 (0) 11 506 7351                         
12 June 2012                                                                    
Johannesburg                                                                    
JSE Sponsor                                                                     
Merchantec Capital                                                              
Date: 12/06/2012 08:00:03 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          



                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2019 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.