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CENTRAL RAND GOLD LIMITED - Crown West Scoping Study

Release Date: 28/02/2013 09:00:00      Code(s): CRD       PDF(s):  
Crown West Scoping Study

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”)

                                  CROWN WEST SCOPING STUDY

The Company is pleased to announce the completion of a positive
scoping study on the Crown West project. The Crown West project,
which will be mined in a manner similar to the Company’s existing
mining operations, is located approximately 5 kilometres east of
the CMR West mine and represents a fully stand alone operation.
The Crown West project is included within the existing New Order
Mining Right of the CMR West operation and is fully permitted for
ore extraction.

The scoping study, the salient features of which are set out in
the table below, undertaken by Mohloki Mining CC, the mining
engineering consultants (www.mohlokimining.co.za), confirms a ten
year life of mine (“LOM”) operation with tonnage production
profile building up over four years to a steady state of
approximately 40,000 tonnes per month production generating a
steady state average of 53,000 ounces of gold annually.     As this
is a scoping study the LOM is based on the bulk of the Mineral
Resources of SAMREC compliant Inferred Resources. This scoping
study does not impart Reserve status on the grades and a tonnage
portrayed and does not purport to be a definitive economic study.

Summary of Scoping Study:
                Input Variables                                  Output Metrics
Gold Price                         $1600/Oz     Life of Mine                       10 years
Exchange Rate                        R8:$1      Peak Production Rate              522 658 tpa
                                                Average Life of Mine State
Mine Call Factor                   85%          Annual Gold Production            33 326 Oz
Over-break                         10%          Cash Cost per tonne                  $86/t
Metallurgical Recovery             94%          Cash Cost per Ounce                $782/Oz
Mineral Inventory             3.02mt @ 4.3g/t   Capital Expenditure               $26 million
Discount Rate                      12%          Payback Period                      4 years
Royalty Rate                        5%          IRR                                   31%
Inflation Rate                      6%          NPV                               $63 million

Operating costs are drawn from current operations in CMR West
(specifically mining and processing costs) and have been optimised
to reflect the benefits of economies of scale of a larger
operation. Mining and Processing Cash Costs (excluding Capital,
Royalties, overheads and other Head Office costs) are estimated at
$782/ounce ($86/processed tonne), which compares very favourably
with similar sized peers. General overheads, water table pumping
and Head Office costs will be shared with the existing CMR West
and planned CMR East mines, thereby leveraging off the existing
fixed cost base of the Company’s operations.
This scoping study was undertaken as an initial low confidence
assessment of mineral potential in the area geared at determining
whether further work towards improving Resource confidence was

The positive economic output, whilst only at scoping level, amply
illustrates that further work towards the generation of Mineral
Reserves and associated Feasibility study is recommended. This
further work will consist of a diamond drilling programme aimed at
upgrading the existing Inferred Resources to at least Indicated
Resources coupled with a comprehensive Pre Feasibility study to
convert Resources to Reserves.

Further details and time frames will be announced at a later date.
The full scoping study is available on the Company’s website:

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
Proprietary Limited
Jenni Newman

28 February 2013

Merchantec Capital

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