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1 Jul 2014 07:00
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 the "Company")
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| RE-RATING OF MINERAL RESOURCES BETWEEN 450 METRES AND 900 METRES BELOW SURFACE |
Reclassification of Resources
Central Rand Gold is pleased to announce that following the successful implementation of the Acid Mine Drainage ("AMD") pumping and treatment solution by the Trans Caledon Tunnel Authority ("TCTA"), gold mineralisation found between 450 metres and 900 metres below surface, which had previously been downgraded to 'Exploration Target', has been reclassified by Independent Consultants Venmyn Deloitte as 'Mineral Resource'.
The installation of the Ritz high capacity AMD pumps in March 2014, and the subsequent commissioning of the High Density Sludge ("HDS") plant on 23 May 2014, combined with a simultaneous reduction in the water level observed at the pumping station and at the CMR Mine, has demonstrated that the entire basin can be dewatered from a single point. Economic capital and operating cost studies have shown that further de-watering beyond the 450 metre level can be done efficiently and economically, with the installation of additional pumps and piping and thus the hurdle for "eventual economic extraction", a key aspect in the definition of 'Mineral Resources' in terms of the SAMREC Code, is satisfied.
Venmyn Deloitte have issued a new Competent Persons Report ("CPR"), reflecting the positive change in the resource base of the Company. This reclassification has more than doubled the resource base of the Company from 4.51 million ounces to 9.90 million ounces of contained gold.
Tonnes (Mt) | Au Grade (g/t) | Content (Moz) | |
Measured Resource | 1.46 | 3.62 | 0.17 |
Indicated Resource | 30.88 | 5.13 | 5.10 |
Inferred Resource | 30.70 | 4.69 | 4.63 |
Resources | 63.04 | 4.88 | 9.90 |
Exploration Target | 83.01 | 10.03 | 26.78 |
Note: Rounding may result in minor computational discrepancies. The potential quantity and grade described by the term "Exploration Target" is conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the definition of a Resource. Further exploration work is ongoing, and includes trial mining and processing of this shallow target to establish grade and ore body continuity, mineability, dilution and throughput characteristics.
As recently announced, within the Company's mining area in the Central Basin, the water level is currently approximately 165 metres below surface and therefore the focus is to exploit the resources currently available to it above this level.
The company focus in the short to mid term will remain on the exploitation of resources above 450m, which will be throttled by the success and discharge rate of the pumping and HDS treatment, however Reserve studies, mine planning and scheduling below 450m can now proceed with a view to extending the life of the CMR mine.
This basin wide increase in Mineral Resources will also significantly augment Reserve scheduling and Pre-Feasibility level studies on adjacent mining targets such as Crown and City Deep.
A copy of the CPR is available for download on the Company website: www.centralrandgold.com
Commenting on the reclassification of resources, Johan de Toit, Chief Executive Officer of the Company, stated:
"The progress made in the de-watering of the basin is positive for all stakeholders in the region - we have always believed that responsible mining goes hand in hand with improving the local economy, not only from a financial and social aspect, but also environmentally. The lower water table not only increases the life of mine of our assets through having higher quality reserves and resources, it also provides job opportunities as well as a sustainable AMD management system."
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 20 years' 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 / 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
Johannesburg
1 July 2014
Sponsor
Merchantec Capital
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