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CENTRAL RAND GOLD LIMITED - Reduction in the Central Basin water level

Release Date: 26/06/2014 08:00:00      Code(s): CRD       PDF(s):  
Reduction in the Central Basin water level

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: GG00B92NXM24
LSE share code: CRND JSE share code: CRD
("Central Rand Gold" or “CRG” or the “Company”)


Reduction in the Central Basin Water Level


-   High Density Sludge (“HDS”) Plant operational since 23 May 2014
-   No ‘fatal flaws’ identified throughout commissioning phase
-   HDS Plant discharging water within the approved specification
-   HDS Plant able to operate at nameplate de-watering capacity of 72
    million litres per day
-   Visible reduction of water at CRG mine site, with a reduction of
    1.5 metres observed last week


HDS Plant Commissioning Phase
As previously announced on 28 May 2014, the Trans Caledon Tunnel
Authority ("TCTA") has commenced pumping and treatment operations of
its HDS Plant. Since then, the HDS Plant has undergone a thorough
commissioning phase under the guidance of TCTA.


During the commissioning phase no ‘fatal flaws’ in the design of the
HDS Plant were identified. However, the HDS Plant did experience
typical ‘teething issues’, which resulted in TCTA operating the HDS
Plant at a reduced rate with only one of the two submersible pumps
running at any given time.


Since 23 June 2014, with the ‘teething issues’ largely resolved,
TCTA has been operating the HDS Plant at an increased rate, with
both of the submersible pumps now operational, de-watering capacity
of 72 million litres per day has been achieved.
Importantly, the commissioning phase has confirmed that the HDS
Plant is performing in line with design expectations and, most
importantly,is discharging water in line with the approved
specification.



Central Basin Water Level
Up to mid May 2014, the Company witnessed a rise in the water level,
to approximately 165 meters below surface, within its mining area in
the Central Basin. However, the Company has subsequently observed
that the water level within its mining area has remained relatively
stable. Furthermore, in the last week, the Company has witnessed a
reduction in water level as the performance of the HDS Plant has
improved throughout the commissioning phase.


The Company is encouraged by the fact that, notwithstanding only one
of the two submersible pumps operating, the water level was
initially stabilised and then reduced. The reduction provides the
first substantive evidence of the ability of the submersible pumps
and the HDS Plant to dewater the entire Central Basin which hosts
the Company’s significant resource base and exploration target.


Johan du Toit, Chief Executive Officer of the Company commented:
“This is the first time since 2008, when the previous pump
station was flooded, that the rising water table in the Central
Basin has been halted. The drop in the water table is a positive
indication that the Company’s large remaining resource within the
Central Basin can still be realistically de-watered and accessed.
With the HDS Plant now able to operate at full capacity, it is
further hoped that we will see an acceleration in the drop of the
water table so that the mining operations can re-access some of
the mining areas which were abandoned due to the rising water
table.”



For further information, please contact:
Central Rand Gold                     +27 (0) 87 310 4400
Johan du Toit / Nathan Taylor

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


Johannesburg
26 June 2014

Sponsor
Merchantec Capital

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