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CRD
CRD
CRD - Central Rand Gold - Upgrades mineral resources; identifies first
surface mining targets
Central Rand Gold Limited
("CRG" or the "Company")
(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: GG00B248M601
Share code on LSE: CRND
Share code on JSE: CRD
CENTRAL RAND GOLD LIMITED UPGRADES MINERAL RESOURCES; IDENTIFIES FIRST
SURFACE MINING TARGETS
HIGHLIGHTS
- Upgrade of Resource Statement
- Identification of first three probable mining targets
- Lodgement of Environmental Impact Assessment with South African
Department of Minerals and Energy
Johannesburg, March 11, 2008
London and Johannesburg listed Central Rand Gold Limited ("CRG") has
announced a 1.760 million ounce upgrade in its mineral resources and
identified the first three probable surface mining targets it intends to
mine when it receives its New Order Mining Right from South Africa`s
Department of Minerals and Energy ("DME"). CRG lodged its Environmental
Impact Assessment Report on February 4, 2008, which formally initiated the
120-day review period for a New Order Mining Right application by the DME.
Resource Upgrade
The Company, which listed on the LSE and the JSE on November 8 2007, has
increased its indicated and inferred mineral resources to 35.6 million
ounces of gold from 33.8 million ounces as at the time of the Initial Public
Offering ("IPO"). Of the increase, 932,000 ounces are in the indicated
category, taking this up to 22.3 million ounces from 21.4 million ounces,
while 828,000 ounces are in the inferred category, taking this total up to
13.2 million ounces from 12.4 million ounces.
Importantly, of the 1.760 million ounce resource upgrade, 378,000 ounces
were identified between the surface and 70 metres below surface and some
152,000 ounces between 70 and 200 metres below surface. This represents some
30% of the total resource upgrade.
While the Company`s IPO mineral resource statement had been based primarily
on the Main Reef and the Main Reef Leader sequences on the Consolidated Main
Reef ("CMR"), Crown Mines, City Deep, Village Main and Robinson Deep
properties, the updated mineral resource includes the Bird Reef and
Kimberley Reef packages on CMR and Crown Mines properties. The updated
mineral resource has been calculated by Dr Carina Lemmer, reported in
accordance with the JORC and SAMREC reporting codes and reviewed by Snowden
Mining Industry Consultants.
Current Activities
CRG is pleased to announce that assay results have now been received for 75%
of assays submitted to date compared to 50% when the IPO prospectus was
issued late last year. This has resulted in the Company`s initial
requirement for acquiring an assay laboratory unnecessary at this point in
time. Over the past 17 months, CRG has undertaken a comprehensive program of
45,600 metres of diamond and reverse circulation drilling, of which over
10,000 metres has been undertaken in the past five months.
To date, five existing shafts have been accessed, made safe and re-opened
for the underground sampling program. This has commenced on East Shaft,
situated on CMR and accessing slot 8, which has been re-opened down to 12
level (296 metres below surface) and Number 9 Shaft situated on CMR and
accessing slot 7 which has been re-opened down to 4 level (127 metres below
surface). This program will assist in further upgrading CRG`s resource base.
"CRG is continuing its drilling program coupled with underground sampling
across all nine slots with the aim of further enhancing the current gold
resource base in the Central Rand Goldfield," said Greg James, Central Rand
Gold`s CEO.
Operational and Resource Outlook
Based on drilling, analytical conversion and empirical observations, the
Company has identified the first three probable surface mining targets
("slots") for initial mining once the Company`s New Order Mining Right has
been granted by the DME. This is a significant refinement of the nine slots
identified at the time of the IPO (Further details on the status and
position of the slots are contained in an appendix to this release.)
"At the time of the Company`s IPO, nine slots had been identified that
warranted further assessment for shallow mining operations. As we refine our
exploration understanding and seek to maximize our early cash flows and
prove our mining methodology, we are now focussing on three slots to
commence our mining program. These are referred to by the Company as slots
4, 8 and 9, although slots 8 and 9 are in fact, part of a contiguous reef,"
said Mr James.
As described in the SAMREC and JORC codes, in order to upgrade the Company`s
current indicated and inferred resources in previously mined areas into the
measured resources category, ore development must be undertaken and on-reef
sampling must be performed. Furthermore, the codes state that in order to
convert resources into reserves, a pre-feasibility study needs to have been
completed and that the Modifying Factors (additional procedures and
documentation in government, social, mining, metallurgy and environmental
spheres) as described in the codes need to be satisfied. This will only be
achieved once on-reef development (trial mining) has commenced in 2009.
Importantly, it must be noted that converting the Company`s resources into
reserves is not a prerequisite for the commencement of mining activities.
Submission of Environmental Impact Assessment
Central Rand Gold submitted its comprehensive Environmental Impact
Assessment report to the DME on February 4, 2008. This was done after a
widespread consultative public participation process incorporating
discussions and workshops with governmental departments, local community
leaders and local community residents. Local community meetings were held
and attended by many thousands of community residents and the Company
believes that their involvement represents a new standard of public
participation in the South African resources sector.
"We have had extremely positive responses from the vast majority of the
local communities to CRG`s mining approach and have even been able to
establish a database of local residents interested in obtaining jobs and
providing services to the Company once mining gets under way," said Mr
James.
Central Rand Gold is planning to produce at an annualised rate of 100,000
ounces of gold by the end of 2009, at an annualised rate of 250,000 ounces
by 2010 and at an annualised rate of one million ounces a year by 2012. The
Company expects to directly employ around 4,000 people at peak production.
"Having interacted at length with community members and leaders, we are
satisfied that the return of commercial scale gold mining to the city of
Johannesburg will be very well received and have a positive impact on a city
which is after all, Egoli, the city of gold," said Mr James.
Ends
Issued on behalf of Central Rand Gold by
Jenni Newman Public Relations (Pty) Ltd
+ 27 11 772 1033
Jenni Newman +27 82 882 8888
jenninewman@jnpr.co.za
Megann Outram +27 83 320 7577
meganno@jnpr.co.za
11 March 2008
Sponsor
Macquarie First South Corporate Finance (Pty) Ltd
Amanda Markman + 27 11 343 2307
Done Hattingh + 27 11 343 2308
Appendix
Map: Slot positions on surface on Consolidated Main Reef, Langlaagte and
Crown Mines prospecting areas available
The above mentioned map can be viewed on the Company`s web-site:
www.centralrandgold.com
The following tables represent the upgraded resource of 1.76 million ounces
as per the press release:
Slot 1 Kimberley Reefs
Depth Au acc. Recoverable Mean Metal Metal
Domain Cut off tons after Rec. Au Content Content
(metres) (cmg/t) 10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
Indicated 0-70m 100 2.5 0.6 1.5 51
Inferred 0-70m 100 0.9 0.7 0.6 20
Slot 7 White Reef of the Bird Reef
(CMR)
Depth Au acc. Recoverable Mean Metal Metal
Domain Cut off tons after Rec. Au Content Content
(metres) (cmg/t) 10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
Indicated 0 - 70 100 - - - -
70 - 200 200 0.4 4 1.5 50
200 - 900 350 3.1 3.7 11.5 400
900-1500 600 0.9 4.8 4.3 100
TOTAL 4.4 3.9 17.3 550
Depth Au acc. Recoverable Mean Metal Metal
Domain Cut off tons after Rec. Au Content Content
(metres) (cmg/t) 10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
Inferred 0 - 70 100 1.7 3.3 5.7 200
70 - 200 200 - - - -
200 - 900 350 0.0 2.8 0.0 0.1
900-1500 600 1.7 5.1 8.8 300
TOTAL 3.4 4.1 14.5 500
Kimberley Reefs (CMR)
Slot 4
Indicated Depth Au acc. Recoverable Mean Metal Metal
Domain Cut off tons after Rec. Au Content Content
(metres) (cmg/t) 10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
0 - 70 100 0.9 3.4 3.2 103
70 - 170 200 0.8 3.8 3.1 98
170 - 420 350 0.9 4.0 3.4 110
TOTAL 2.6 3.7 9.7 311
Kimberley Reefs (CMR) continued
Slot 4
Inferred Depth Au acc. Recoverable Mean Metal Metal
Domain Cut off tons after Rec. Au Content Content
(metres) (cmg/t) 10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
0 - 70 100 0.1 2.4 0.1 4
70 - 170 200 0.04 3.0 0.1 4
170 - 420 350 0.5 3.9 1.9 63
TOTAL 0.6 3.7 2.1 70
Slot 5 Bird Reefs (Crown
Mines)
Indicated Depth Au acc. Recoverable Mean Metal Metal
Domain Cutoff tons after Rec. Au Content Content
(metres) (cmg/t) 10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
200 - 900 200 0.07 4.4 0.3 10
900 - 350 0.04 4.1 0.2 5
1500
TOTAL 0.11 4.3 0.5 15
Inferred Depth Au acc. Recoverable Mean Metal Metal
Domain Cutoff tons after Rec. Au Content Content
(metres) (cmg/t) 10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
200 - 900 200 0.7 4.3 2.9 90
900 - 350 1.2 4.6 5.5 180
1500
TOTAL 1.9 4.5 8.4 270
Total Recoverable Mean Metal Metal
tons after Rec. Au Content Content
10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
Inferred 6.8 3.8 25.6 828
Indicated 9.61 3.0 29.0 932
TOTAL 16.41 3.3 54.6 1 760
The tables below demonstrate a more defined understanding of the resources
in slot 8 and 9 that were included in the 33.8 million ounce resource at the
time of the Initial Public Offering.
Slot 8 & Main Reef
9
Indicated Depth Au acc. Recoverable Mean Metal Metal
Domain Cutoff tons after Rec. Au Content Content
(metres) (cmg/t) 10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
0 - 70 100 0.5 3.5 1.5 50
70 - 200 200 0.4 3.8 1.6 50
200 - 900 350 8.7 4.7 41.5 1 300
900-1500 600 2.8 6.4 18.1 600
TOTAL 12.4 5.2 62.7 2 000
Inferred Depth Au acc. Recoverable Mean Metal Metal
Domain Cutoff tons after Rec. Au Content Content
(metres) (cmg/t) 10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
0 - 70 100 0.3 3.7 1.1 30
70 - 200 200 0.3 4.6 1.2 40
200 - 900 350 0.3 5.8 1.7 50
900-1500 600 0.4 5.8 2.3 70
TOTAL 1.3 4.8 6.3 190
Slot 8 & Main Reef Leader
9
Indicated Depth Au acc. Recoverable Mean Metal Metal
Domain Cutoff tons after Rec. Au Content Content
(metres) (cmg/t) 10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
200 - 900 350 0.1 11.5 1.5 50
900-1500 600 1.1 13.5 15.1 500
TOTAL 1.2 13.8 16.6 550
Main Reef Leader continued
Slot 8 &
9
Inferred Depth Au acc. Recoverable Mean Metal Metal
Domain Cutoff tons after Rec. Au Content Content
(metres) (cmg/t) 10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
200 - 350 0.2 13.6 3.3 100
900
900-1500 600 0.0 12.4 0.1 4
TOTAL 0.2 26.0 3.4 104
Total Recoverable Mean Metal Metal
tons after Rec. Au Content Content
10% Geol. Grade (kg) (oz`s)
Loss (g/t) `000`s `000`s
(millions)
Inferred 1.5 6.4 9.7 294
Indicate 13.60 5.8 79.30 2 550
d
TOTAL 15.11 5.9 89.00 2 844
Date: 12/03/2008 08:30:02 Produced by the JSE SENS Department.
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