| Wed 30 Jan 2008, 13:59 | | SIM - Simmers - 80% Of Total Power Consumption Restored To Simmers |
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SIM
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SIM - Simmers - 80% Of Total Power Consumption Restored To Simmers
SIMMER AND JACK MINES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN: ZAE000006722
("Simmers")
80% OF TOTAL POWER CONSUMPTION RESTORED TO SIMMERS
Simmer & Jack Mines, Limited is pleased to announce that its operations have
been permitted to increase their energy usage to a maximum 80% of their typical
load profile with immediate effect. If the national situation allows, this will
be increased to 90% by Thursday 31 January 2008.
Operating activities will be gradually ramped up to 90% in the interests of
safety.
"We have put plans in place to reduce our peak power consumption and are in the
process of assessing the effect this will have on production levels, especially
at Buffelsfontein Gold Mine and First Uranium`s Ezulwini Mine - the Group`s
two operations that are most affected by the Eskom power crisis. We are looking
at ways to minimize the impact and will advise our shareholders accordingly,"
said Simmers CEO and President of First Uranium, Gordon Miller.
Buffelsfontein Gold Mine`s production has thus far been negatively affected as
a result of the power crisis which began on Friday 25 January when Eskom advised
that it could no longer guarantee power to the mine. As of today, production
would continue at selected shafts, in line with the directive to use only 80% of
the company`s allotted power supply, ramping up to 90% from Thursday onwards,
Eskom permitting.
Underground operations at TGME remain unaffected by the power cuts, as Frankfort
Mine is powered by a diesel generator.
At First Uranium`s Ezulwini Mine, which is in a relatively early stage of
development, normal weekly operations are comprised of three days of mining and
four days of shaft rehabilitation. First Uranium estimates that for every
operation day lost during the quarter ending March 31, 2008, it would expect to
lose an average of 888 tonnes of ore processed and approximately 170 ounces of
gold produced. Thus far, only three days of production time have been lost but
shaft rehabilitation has not been interrupted. First Uranium believes that this
production can be made up once the shaft rehabilitation work is complete.
Randfontein Estates has suspended toll milling of ore from the Ezulwini Mine as
a result of its energy usage reductions, and it is not clear when this will
resume, if at all. Should Randfontein Estates` energy reduction plan cause toll
milling to be suspended indefinitely, Ezulwini Mine will stockpile ore which
will then be processed when its own mill is commissioned in April 2008.
Given its relatively low power requirements, First Uranium`s tailings recovery
operation at Mine Waste Solutions has been unaffected by the power cuts.
Enquiries: Gail Strauss - +2784 777 4060; gail@simmers.co.za
About Simmer & Jack Mines, Limited
Simmer & Jack Mines, Limited (Simmers) is a gold and uranium company listed on
the JSE. A development company with the aim of becoming a tier one, low-cost
gold and uranium producer, Simmers` focus is on sustainable expansion through
the organic growth of its large resource base, coupled with a targeted
exploration programme. It has a 62.4% stake in TSX and JSE-listed First Uranium
Corporation.
Issue by Simmer and jack Mines, Limited
30 January 2008
Date: 30/01/2008 13:59:01 Produced by the JSE SENS Department.
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