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SIM
SIIF
SIM - Simmers - New CIP plant expected to reduce costs and increase recoveries
at Buffelsfontein Gold Mine
SIMMER AND JACK MINES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN: ZAE000006722
("Simmers")
SIMMERS` NEW CIP PLANT EXPECTED TO REDUCE COSTS AND INCREASE RECOVERIES AT
BUFFELSFONTEIN GOLD MINE
Simmer and Jack Mines, Limited (Simmers) is pleased to announce that the new
170 000 tonne per month Carbon in Pulp (CIP) plant at its Buffelsfontein Gold
Mine (BGM) in the North West province is nearing completion. The plant has
been constructed at a cost of R58 million and commissioning of the new circuit
is scheduled to commence in October 2007.
By replacing the old filter plant and zinc precipitation circuit, it is
anticipated that the upgrading and expansion of the metallurgical plant will:
* Reduce plant treatment cost per tonne treated by 25% from R52 p/t to R39
p/t
* Increase plant throughput capacity by 21 % to 170 000 tonne per month
* Increase gold recoveries by 3% from 93% to 96%
The plant`s additional throughput capacity will be utilized to treat low grade
surface waste rock dumps. The CIP plant will allow BGM to economically process
low grade dumps that were previously untreatable through the old filter plant
due to the fineness of the ore in these dumps.
BGM has a total compliant surface resource of 18.5 million tonnes grading at
0.52 g/t.
BGM has also commenced a feasibility study to consider the re-commissioning of
the190 000 tonne per month North Gold plant and the 120 000 tonne per month
gold flotation plant adjacent to the new CIP plant. Initial flotation test
work has indicated that 67 % of the gold can be recovered from 12 % of the
mass pull in the float plant thus upgrading the mill feed from 0.52 g/t to a
CIP feed grade of 3.0 g/t. Buffelsfontein Mine previously successfully
operated the flotation plant which was mothballed during 2003 due to the
depletion of compatible surface sources which could be recovered through the
Filter plant. Should the feasibility prove to be successful, this could result
in a significant increase in gold production from surface sources. The
feasibility study is expected to be completed in the December 2007 quarter.
Despite the fact that total gold production is expected to increase in the
December 2007 quarter, gold sold as well as unit cash cost per kilogram will
be negatively impacted by an estimated lock up of gold in the new CIP circuit
of 160 kilograms. This will be partially offset by the recovery of gold from
the clean up of the redundant zinc precipitation circuit and old smelt house
building which will commence during the December 2007 quarter.
CEO Gordon Miller said: "I am delighted that our project team has successfully
completed this project which will assist in improving safety, reducing
operating costs and improving gold recoveries. The decision to invest
significant capital at BGM in order to improve efficiencies will pay dividends
in the long term and we look forward to extracting value from previously
unavailable gold resources by utilizing the inherent benefits of this state of
the art gold plant".
For further information please contact:
Gail Strauss
gail@simmers.co.za
+27 84 777 4060
+27 11 830 0390
www.simmers.co.za
JOHANNESBURG
10 September 2007
Sponsor
Sasfin Capital
A Division of Sasfin Bank Limited
Date: 10/09/2007 13:21:22 Produced by the JSE SENS Department.
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