CENTRAL RAND GOLD LIMITED - OPERATIONAL UPDATERelease Date: 06/02/2013 09:00:00 Code(s): CRD PDF(s):
Central Rand Gold Limited
(Incorporated as a company with limited liability under the laws
Company Number 45108)
(Incorporated as an external company with limited liability under
the laws of South Africa,
Registration number 2007/0192231/10)
LSE share code: CRND JSE share code: CRD
("Central Rand Gold" or the “Company”)
The Company today provides an update on the year end production
ahead of the announcement of its 31 December 2012 year end results
to be released in April 2013.
During 2012, Central Rand Gold produced 13,709 ounces of gold
which was within 98% of the production guidance issued in the
third quarter Interim Management Statement. Underground production
continues to perform in line with management expectations and the
Company is currently extracting its target of 14,000 tonnes run
rate per month.
Gold production in the 2012 year was impacted by the previously
reported processing difficulties and below anticipated mine call
factor (“mcf”) recovery in the third quarter of the year which
flowed into the fourth quarter of 2012.
As previously reported, the Company had a significant focus on
reducing its gold losses throughout the production process. It was
identified that the majority of Central Rand Gold’s gold losses
(up to 40%) occurred as a result of the ore handling during its
primary and secondary crushing processes.
Major modifications to the VSI crushing circuit were undertaken in
January 2013 with the aim of replacing the existing open crushing
configuration which required external mobile jaw crushers with a
self contained closed circuit crushing train. The modifications
are intended to optimise tramming, eliminate external crushing
costs and most importantly to minimise fine gold losses during the
primary crushing stage. Batch testing of underground sulphide ore
is currently underway.
A further contributor to the lower than anticipated production in
the fourth quarter of 2012 was a marked decrease in the
availability of the smaller Bateman Mill dropping from 83%
availability in November 2012 to 54% availability in December 2012
with an overall availability of approximately 70% for the fourth
quarter. The root cause of this reduction in availability was
several gearbox failures culminating in a two week shutdown and
rectification during January 2013. The gearboxes have now been
modified to take up the extra load required and the mill has
performed well since.
A planned 5 day shutdown of the Carbon In Pulp Mill in early
January 2013, to replace a worn pinion gear, was unfortunately
extended for a further seven days upon discovery of a bent pinion
coupling shaft which required additional fabrication. The mill was
returned to full production on 28 January 2013 and it is expected
that production targets for both mills will now be consistently
Central Rand Gold commenced toll treating some of its surplus
underground ore to the Mintails Limited Mogale gold facility at
the end of January 2013, to limit production and cash losses
incurred during the month.
Continuous cash preservation and optimisation efforts retained
closing Cash and cash equivalents at 31 December 2012 at
US$4.5 million which is the same as that at 30 September 2012
(31 December 2011 – US$5.3 million).
Acid Mine Drainage
As previously announced, an agreement was reached with the Trans
Caledon Tunnel Authority (“TCTA”) on 26 November 2012 for the
donation of the pumps owned by Central Rand Gold. As planned,
construction of the High Density Sludge Treatment Plant commenced
on 14 January 2013 and the TCTA is hopeful that the plant will be
completed and operational during the course of this year.
As at 31 December 2012, the water was situated at 310 metres below
surface and the rate of rise remained between 0.2 and 0.3 metres
Focus areas for 2013
Central Rand Gold will continue to focus on improving its mcf to
achieve a more sustainable and industry norm of between 75% and
85%. A further focus will be to review the suitability of its
current metallurgical plants. Based on the current underground
production profile of 14,000 tons per month being maintained
Central Rand Gold expects full year production of 14,500 ounces to
15,000 ounces. Central Rand Gold does however understand the need
to move beyond the current production range and it plans to
finalise its medium and long term growth strategy by June 2013.
Further details for the year ended 31 December 2012 will be set
out in the results announcement due to be released in April 2012.
For further information, please contact:
Central Rand Gold +27 (0)87 310 4400
Johan du Toit / Patrick Malaza
Charles Stanley Securities Limited +44 (0) 20 7149 6478
Marc Milmo / Mark Taylor
Merchantec Capital +27 (0) 11 325 6363
Monique Martinez / Marcel Goncalves
Buchanan +44 (0) 20 7466 5000
Bobby Morse / Louise Mason
Jenni Newman Public Relations +27 (0) 11 506 7351
6 February 2013
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