The Mission Group Regulatory News (TMG)

1 Feb 2007 07:01

Thistle Mining Inc.01 February 2007 THISTLE MINING INC. Toronto, January 31, 2007. Mineral Reserves and Mineral Resources Statement forPresident Steyn Gold Mine including the Golden Triangle Project Thistle Mining Inc. ("Thistle" or the "Company") (AIM:TMG) wishes to announcethe Resource and Reserve Declaration for President Steyn Gold Mines (FreeState) (Pty) Ltd. ("PSGM") and results of the Golden Triangle Feasibility study. Golden Triangle Feasibility Study- Highlights The feasibility study for the Company's Golden Triangle project located withinthe PSGM lease area has been completed. The feasibility study was completed bySound Mining Solutions (Pty) Ltd ("SMS"). The Golden Triangle project targets ablock of ground lying immediately below current infrastructure at PSGM Number 9shaft as shown in the Figure below. The block of ground is estimated to contain2.77 million tonnes of Measured and indicated resources amounting to 1.04million oz at an in situ grade of 11.66 grammes per tonne using a 3.0 gramme pertonne cut off. Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/5145q_-2007-1-31.pdf The feasibility study proposes that the Basal Reef orebody be developed andexploited from twin declines developed from the Number 9 Shaft loading level.The twin 9degrees declines include a Conveyor Decline (6.0m x 5.0m) and anAccess Decline (5.0m x 4.0m) planned over three legs. One decline has adedicated conveyor installation and adequate clearance for trackless equipment.The other decline is a dedicated service decline for trackless equipment. Aseparate chairlift installation facilitates the project's man-transportrequirements. Lateral development and mining is to be undertaken usingconventional mining methods common to the South African gold mining industry.The proven and probable reserves of the project have been estimated to be 2.6million tonnes at a grade of 6.31 grammes per tonne to yield 0.53 million oz. The refurbishment of the Number 9 shaft and development of the twin declines isplanned to commence in 2009 with sustained production commencing in early 2011.The anticipated production profile is illustrated below. Description Units 2009 2010 2011 2012 2013 2014 2015 2016 Total ProjectOz Produced oz 2.3 28.1 65.1 93.2 95.3 90.9 78.5 49.4 502.8000's The build up in production from 2010 and onwards will offset the loss inproduction anticipated when the South Division of PSGM comprising Numbers 1 and2 shafts ceases production in 2011.The capital required to develop the declinesand associated infrastructure is estimated to be $39.6 million in January 2007terms and cash and total unit costs are estimated at $361 and $477 per ozrespectively at a ZAR: US $ exchange rate of 7.35. The maximum cash draw down isanticipated to be $37.8 million. At a gold price of $550 per oz, the internalrate of return of the project is calculated to be 13% real. It is alsoanticipated that at gold prices of $600 per oz, PSGM will be able to fund thedevelopment of the Golden Triangle project from internally generated cash flows. This project will also allow for the capital efficient exploration, developmentand exploitation of additional resources within the Number 9 Shaft footprint notcovered in the feasibility study including the AC Target area, additional BasalReef resources adjacent to and surrounding the Golden Triangle project area. For additional information relating to the Golden Triangle project refer to thetechnical report titled " 43-101 document for the President Steyn Gold Mine 9Shaft Project situated in the Witwatersrand Basin, Free State Gold Field, SouthAfrica" dated January 28, 2007 which is available to the public atwww.sedar.com. At a board meeting held on January 31, 2007, the Board of Directors of theCompany has approved the development of the project on the condition that theproject can be funded from internal cash resources at PSGM. PSGM proposes tobuild up a cash reserve before development work on the project commences toenable the project to be financed internally. PSGM Mineral Reserves and Mineral Resources Statement The PSGM mineral reserve and mineral resource estimate that follows is compliantwith the Canadian Securities Regulators' National Instrument 43-101 ("NI 43-101") and the standard used is CIMM. Gross Attributable Mineral Reserves (Proven and Probable) at 31 December 2006(see notes 1, 2, 6, 8) Proven Mineral Reserves Probable Mineral Reserves Total Proven and Probable Mineral Reserves Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained Recovery millions g/t Oz millions g/t Oz millions g/t Oz millions % (see (millions) millions) note 5)GoldNo 1 shaft 0.50 4.74 0.08 0.47 4.06 0.06 0.97 4.41 0.14 95.0%No 2 Shaft 0.50 7.74 0.12 0.75 6.93 0.17 1.25 7.25 0.29 95.0%No 3 Shaft 1.04 4.71 0.16 3.58 7.51 0.87 4.63 6.88 1.02 95.0%No 9 Shaft 2.6 6.31 0.53 2.6 6.31 0.53 95.0%PSGM 2.05 5.46 0.36 7.55 6.68 1.62 9.60 6.42 1.98 95.0% Net Attributable Mineral Reserves (Proven and Probable) at 31 December 2006 (seenotes 1, 2, 6, 7,8) Proven Mineral Reserves Probable Mineral Reserves Total Proven and Probable Mineral Reserves Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained Recovery millions g/t Oz millions g/t Oz millions g/t Oz millions % (see (millions) millions) note 5)PSGM 1.74 5.46 0.31 6.42 6.68 1.38 8.16 6.41 1.68 95.0% Reconciliation of Gross Mineral Reserves (Proven and Probable) at 31 December2006 (see note 6) Mine Mineral Reserve Mined in 2006 Increase (Decrease ) in Mineral Reserve December millions oz mineral reserve millions 31, 2006 March, 2006 oz (see note 6) millions oz millions ozPSGMNo 1 shaft 0.22 0.02 (0.06) 0.14No 2 Shaft 0.39 0.06 (0.04) 0.29No 3 Shaft 1.66 0.06 (0.58) 1.02No 9 Shaft 0 0 0.53 0.53Total PSGM 2.27 0.14 (0.15) 1.98 The ore reserve reconciliation between the March 2006 and December 2006 forNumber's 1, 2 and 3 shafts shows a significant unfavorable variance of 0.82million oz. The differences are due lower regional block factors, managementapplying a 20% discount factor on the B-Reef at Steyn Number 3 Shaft due tooutliers in the grade distribution and changes in the depletion schedule of LongTerm Plan. Gross Attributable Mineral Resources (measured, indicated and inferred) at 31December 2006 (see notes 3, 4, 6, 8) Measured Mineral Indicated Mineral Total Measured and Indicated Inferred Mineral Resources Resources Mineral Resources Resources Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained Recovery Tonnes Grade Contained millions g/t 0z millions g/t Oz millions g/t Oz % milllions g/t Oz millions millions millions millionsGoldNo 1 shaft 4.23 7.9 1.07 3.02 7.4 0.72 7.25 7.7 1.78 95.0% 1.54 6.1 0.30No2 Shaft 3.00 10.3 0.99 1.35 11.8 0.51 4.36 10.8 1.51 95.0% 1.02 7.8 0.25No.3 Shaft 6.69 7.4 1.59 14.68 7.5 3.52 21.37 7.4 5.11 95.0% 9.32 5.8 1.74No 9 Shaft 0.71 8.90 0.29 2.06 11.33 0.75 2.77 11.65 1.04 95.0% 0 0 0Total PSGM 15.1 8.4 4.07 21.7 8.2 5.72 36.8 8.3 9.79 95.0% 11.9 6.0 2.29 Net Attributable Resources (measured, indicated and inferred) at 31 December2006 (see notes 3, 4, 6, 7,8) Measured Mineral Indicated Mineral Total Measured and Indicated Inferred Mineral Resources Resources Mineral Resources Resources Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained Recovery Tonnes Grade Contained millions g/t 0z millions g/t Oz millions g/t Oz % milllions g/t Oz millions millions millions millionsGoldTotal PSGM 12.84 8.4 3.46 18.45 8.2 4.86 31.28 8.3 8.32 95.0% 10.12 6.0 1.95 Notes to the Mineral Reserves, Reconciliation of Mineral Reserves, MineralResources and Mineral Resources (1) PSGM's mineral reserves were estimated as at December 31, 2006 and definedto include only those reserves that are included in PSGM's Long Term Plan("LTP"). PSGM's LTP was modeled on a shaft-by-shaft basis assuming a long termgold price of $550 per oz at an assumed exchange rate of ZAR: US $ of 7.35. Inthe opinion of the independent qualified persons the financial model represents,within a reasonable degree of confidence, the likely future production levelsand associated costs applicable to PSGM aand that the reserves as quantified inthe LTP are realistic. The qualified persons responsible for mineral resourceand reserve estimates are identified under note 7. Independent data verificationhas been performed by the third party firms for PSGM. Thistle is not aware ofany environmental, permitting, legal, title, taxation, socio-political,marketing or other relevant issues which may materially affect Thistle's mineralreserve and mineral resource estimates, other than the factors discussed inThistle's 2005 Annual Information Form publicly available at www.sedar.com. (2) The terms "mineral reserve", "proven mineral reserve" and "probable mineralreserve" conform to CIM definitions of those terms as at the effective date ofestimation, as required by NI 43-101. (3) Mineral resources are in addition to mineral reserves and have beenestimated as at December 31, 2006 using a cut off of 3.0 g/tonne. The qualifiedperson responsible for mineral resource estimates is identified under note 7.Consistent with Thistle's mineral resource estimation practices, independentdata verification has been performed by third party firms. (4) The terms "mineral resource", "measured mineral resource", "indicatedmineral resource" and "inferred mineral resource" conform to CIM definitions ofthose terms as at the effective date of estimation, as required by NI 43-101.Mineral resources that are not mineral reserves do not have demonstratedeconomic viability. (5) Based on the 2006 recovery percentage for PSGM. (6) Increase (decrease) in mineral reserves resulted from exploration success orreclassifications between mineral resources and mineral reserves, changes due togeological remodelling and mine planning, changes in currency exchange rates andcosts of input commodities and the impact of an increase in the averagelong-term gold price. (7) On December 12, 2006 the Company announce that Mindserv Limited, a whollyowned South African subsidiary of the Company that owns PSGM has concluded ashareholders agreement with Iningi Investments 167 (Pty) Ltd ("Iningi") (to berenamed Lefa La Gauta Pty Ltd) a broad-based black economic empowerment ("BEE")consortium pursuant to which Iningi will acquire an initial 15% equity stake inPSGM. (8) Thistle's mineral reserve and mineral resource estimates are based oninformation prepared by or under the supervision of a "qualified person", asthat term is defined in NI 43-101. The qualified persons responsible forThistle's PSGM mineral reserve and mineral resource estimates as at December 31,2006 listed below are independent of the Company for the purposes of NI 43-101and were at the time the estimates were prepared consultants. Both qualifiedpersons have no direct vested interests in any tenements adjoining PSGM. Inestimating the applicable mineral reserves and mineral resources, the qualifiedperson has used assumptions, parameters and methods appropriate for PSGM and hasverified the underlying data as appropriate in his professional opinion(including sampling, analytical and test data). The credentials of Messrs.Camden Smith and Graham Stripp are included below. Mineral Resources and Mineral Reserves excluding Mineral Reserves at No 9 Shaft PSGM Name and e mail address Company , Location Peter Camden Smith Camden-Geoserve, South Africa, 36 Slater Street, Parkrand, 1460,geoserve@icon.co.za South Africa ( Telephone +27 11 913 0522 ) Mineral Reserves at No 9 Shaft PSGM Name and e mail address Company , Location Graham Peter Stripp Independent Consultant , 36 Rooibekkie Avenuegpstripp@mweb.co.za Presidents Dam;Springs;Gauteng1560 (Telephone +27 832675551 ) P.M. Camden -Smith has been the appointed Competent Person for the entire PSGMresource base and is also responsible for the reserves of the operationalshafts. His qualifications include a M.Sc. (U.C.T) 1980, G.D. Eng. (Wits) 1985and a M.B.L. (Unisa) 1996. He is registered as a Professional Natural Scientist(40078/94) as defined by Section 11 of the Natural Scientific Professions Act,1993. Witwatersrand Basin gold mine orientated Competent Persons Reports (CPR)completed by P.M. Camde n-Smith, the Principle Member of Camden Geoserve cc,over the last few years includes those for PSGM, Petrex Limited, East RandProprietary Mines, Crown Consolidated and Afrikaander Leases, Limited. Dr Graham Stripp is an independent consulting mining engineer and graduated fromthe University of Wales in 1983 with a B.Sc (Hons) Degree in mining engineering.He completed an M.Sc in the field of mining engineering from the University ofNewcastle upon Tyne, England, in 1985 and a P.hD in the field of miningengineering from the University of the Witwatersrand, South Africa, in 1989. Heis a Fellow of the South African Institute of Mining and Metallurgy. For additional information relating to the Resources and Reserves titled "43-101document for the President Steyn Gold Mine situated in the Witwatersrand Basin,Free State Gold Field, South Africa, dated January 28, 2007 which is availableto the public at www.sedar.com. This news release contains forward-looking statements with the meaning ofapplicable securities laws including amongst others, statements made or impliedunder the headings "Golden Triangle Feasibility Study- Highlights", "PSGMMineral Reserves and Mineral Resources Statement" above relating to theCompany's objectives, strategies to achieve these objectives, future cash flowand financing requirements, and similar statements concerning anticipated futureevents, results, circumstances, performance or expectations that are nothistorical facts. Such forward-looking statements reflect the Company's currentbeliefs and are based on information currently available to management. Thesestatements are not guarantees of future performance and are based on theCompany's estimates and assumptions that are subject to risk and uncertaintiesinherent in the business of the Company including those discussed in theCompany's materials filed with the Canadian securities regulatory authoritiesfrom time to time, which could cause the actual results and performance of theCompany to differ materially from the forward-looking statements contained inthis news release. Those risks and uncertainties include, among other things,risks related to: the mining industry (including operational risks inexploration development and production; delays or changes in plans with respectto exploration or development projects or capital expenditures; theuncertainties involved in the discovery and delineation of mineral deposits,resources or reserves; the uncertainty of mineral resource and mineral reserveestimates and the ability to economically exploit mineral resources and mineralreserves; the uncertainty of estimates and projections in relation toproduction, costs and expenses; the uncertainty surrounding the ability of theCompany to obtain all permits, consents and authorizations required for itsoperations and activities; competition for the acquisition, exploration anddevelopment of mineral interests; and health and safety and environmentalrisks), the risk of gold and other commodity price and foreign exchange ratefluctuations; the ability of the Company to fund the capital and operatingexpenses necessary to achieve the business objectives of the Company; theuncertainty associated with commercial negotiations and negotiating with foreigngovernments; the risks associated with international business activities; thedependence on key personnel; the ability to access capital markets; theindebtedness of the Company; and labor relations matters. Material factors orassumptions that were applied in drawing a conclusion or making an estimate setout in the forward-looking statements include that the general economy remainsstable, the demand and price of gold continues to increase and the Rand remainsstrong against the US$. It is also assumed that there will be no majordisruptions in production including failure of infrastructure, seismic activity,underground fires and labor unrest. The Company cautions that this list offactors is not exhaustive. Although the forward-looking statements contained inthis news release are based upon what the Company believes are reasonableassumptions, there can be no assurance that actual results will be consistentwith these forward-looking statements. All forward-looking statements in thisnews release are qualified by these cautionary statements. These forward-lookingstatements are made as of the date hereof and the Company, except as required byapplicable law, assumes no obligation to update or revise them to reflect newinformation or the occurrence of future events or circumstances. For further information, contact: Andy Graetz, Chief Financial Officer at + 27 82 929 5562 or email toagraetz@disselgroup.com Gerry Beaney, Grant Thornton Corporate Finance at +44 (0) 207 383 5100 This information is provided by RNS The company news service from the London Stock Exchange