| Wed 19 Dec 2007, 11:23 | | SIM - Simmers - Significant boost for Simmers` Gold and Uranium reserves |
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SIM
SIIF
SIM - Simmers - Significant boost for Simmers` Gold and Uranium reserves
SIMMER AND JACK MINES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
("Simmers") or ("the Company")
Share code: SIM
ISIN: ZAE000006722
SIGNIFICANT BOOST FOR SIMMERS` GOLD AND URANIUM RESERVES
Simmer & Jack Mines, Limited (Simmers) recorded a 38 percent increase in its
attributable gold Reserves and a 519 percent increase in attributable uranium
Reserves as a result of an updated reserve declaration on First Uranium`s
Buffelsfontein Tailings Recovery Project (BTRP). Toronto-listed First Uranium is
a 62.37 percent held subsidiary of Simmers. This reduction in shareholding from
65.49 percent follows the SENS announcement on Tuesday 18 December 2007 by First
Uranium, setting out the acquisition of the remaining 10% of its Ezulwini Mine,
as disclosed in the prospectus for the initial public offering in December 2006
of First Uranium.
First Uranium Corporation intends to file a technical report for its BTRP by the
end of January 2008. This is an update on the technical report for BTRP, which
was based on a preliminary assessment and issued in May 2007, and presents the
results of a pre-feasibility study for the final design of the gold and uranium
plants. In the process, mineral resources were converted to proven and probable
reserves. The updated statement utilizes the measured, indicated and inferred
categories in accordance with the SAMREC code and is Canadian National
Instrument 43-101 compliant.
Simmers now has 6.696 million ounces of gold Reserves and 40.802 million pounds
of uranium, both in the Proven and Probable category. Simmers` attributable
Resources are now 39.981 million ounces of gold (formerly 39.305 million ounces)
and 193.635 million pounds of uranium (formerly 189.595 million pounds).
The BTRP is one of two gold and uranium projects belonging to First Uranium. It
is a tailings recovery project situated in South Africa`s North West province,
and aims to recover gold and uranium from some 360 million tonnes of tailings
dams in the Stilfontein area. Gold production from BTRP began in June 2007.
Based on the results of the updated report, First Uranium intends to begin
expanding the existing gold plant capacity immediately by 7 percent with the aim
of expanding its previously planned design capacity from 180,000 to 193,000
tonnes of tailings per month. It is expected that the life of this operation
will be approximately 16 years, with average annual production of 136,000 ounces
of gold and 1.3 million pounds of uranium. Uranium production is expected to
begin as originally scheduled in November 2008 following the construction of the
first two modules of the new uranium plant.
According to the Resource Statement issued for BTRP, the project has proven and
probable reserves of approximately 330 million tonnes with an average gold grade
of 0.28 grams per tonne containing 2.958 million ounces of gold and an average
uranium grade of 0.076 kilograms per tonne containing 54.85 million pounds of
uranium.
"As a result of all the technical work conducted during the past year, the
overall confidence in the project has improved significantly," commented Gordon
Miller, CEO of Simmers.
"Our priority now is to meet our delivery deadlines and ensure that the project
remains on track," said Miller.
For a detailed breakdown of how the findings of the new technical report will
impact on the economics of the BTRP, please refer to the release entitled: First
Uranium to File Revised Technical Report for the Buffelsfontein Tailings
Recovery Project which is available on the First Uranium website at
www.firsturanium.com.
The updated Simmers Consolidated Resource and Reserve statement can be accessed
at www.simmers.co.za under "Operations/ Resources & Reserves". These figures are
subject to the publication by First Uranium of the final technical report in
January 2008.
Technical Disclosure
All technical disclosure in this news release relating to the Consolidated
Simmers Resource and Reserve Statements have been prepared in accordance with
SAMREC and Canadian National instrument 43-101 (NI 43-101) by Daan van Heerden,
B.Sc., M.Comm., Charles Muller, B.Sc, Pr.Sci.Nat, and Johan Odendaal, B.Sc.,
M.Sc., Pr.Sci.Nat all of Minxcon Pty Ltd., each of whom is a "qualified person"
under NI 43-101 and is independent of Simmer & Jack Mines, Limited.
19 December 2007
Issued by : Gail Strauss
On behalf of : Simmer & Jack Mines, Limited
Contact information : +2784 777 4060
Email : gailstrauss@simmers.co.za
Website : www.simmers.co.za
Date: 19/12/2007 11:23:01 Produced by the JSE SENS Department.
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