| Thu 31 Jul 2008, 8:18 | | CRD - Central Rand Gold - Exploration And Operational Update |
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CRD
CRD
CRD - Central Rand Gold - Exploration And Operational Update
Central Rand Gold Limited
(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
("CRG" or the "Company")
EXPLORATION AND OPERATIONAL UPDATE
HIGHLIGHTS
Positive results from underground bulk sampling
On track to receive mining right
Trial mining scheduled to begin in October 2008
New Mining Order Right
Central Rand Gold remains firmly on track to be awarded its New Order Mining
Right by the South African Department of Minerals and Energy (DME). The approval
process is well advanced and the Company looks forward to concluding the process
in the short term.
The Mining Right application was accepted by the DME on August 8 2007 and has
been supplemented by the implementation and submission of all other necessary
processes and documentation.
Exploration Update
Considerable exploration activity has taken place resulting in ongoing drilling,
assaying and bulk sampling initiatives across the Company`s prospecting areas.
Bulk Sampling
Underground bulk sampling has confirmed mineralisation outside of reefs and
substantial thicknesses of mineralised grits have been identified.
Significantly, mineralised halos have also been identified in the hanging wall
and foot wall of conglomerate bands. Underground bulk sampling is currently
investigating these mineralised zones.
As part of CRG`s exploration programme (surface mapping, diamond drilling, shaft
re-access and resource conversion investigations), zones of mineralisation (in
the form of pervasive disseminated pyrite and grit bands) have been identified
in the hanging wall of the Main Reef Leader and the South Reef on CMR.
CRG has undertaken an extensive bulk sampling exercise to quantify these
mineralised zones. These zones of mineralisation have the potential to add to
the mineable tonnage and resource estimates. This also suggests that mass mining
in larger stopes will be viable.
The Company embarked on its underground sampling process in June 2008. The first
samples were obtained through access via East Shaft (Consolidated Main Reef) on
5 level (60 metres below surface).
Approximately 100 metres of strike was sampled from the hanging wall of the
South Reef utilising a method referred to as "slyping". This involves drilling
holes of approximately 200 to 500mm (spaced about 1m apart) into the hanging
wall and utilising expanding gas cartridges to "pop" off the sample. The
sampling is geologically controlled and a single bulk sample can be made up of
10 to 15 separate entities, depending on the geological feature being analysed.
A bulk sample can weigh up to 0.5 ton.
The initial results have become available and are proving to be encouraging
(Table 1). This represents a range of 0.5 g/t to 1731 g/t from each 0.5 tons of
homogenised sample.
Table 1: Initial Results of Bulk Sampling
Table 1: Initial Results of Bulk Sampling
Table 1: Initial Results of Bulk Sampling
Sample ID (WBS1) Values(g/t) Geology Comments
R_4801 0.5 Gritty Quartzite. Sulphides.
R_4802 0.68 Quartzite
R_4803 28.3 MPC (South reef). Sulphides
R_4804 0.68 Quartzite
R_4805 78.8 Gritty Quartzite. Sulphides. Veining
R_4806 7.48 Gritty Quartzite. Sulphides. Veining
R_4807 2.54 Quartzite
R_4808 0.56 Quartzite
R_4809 12.9 MPC (South reef). Sulphides
R_4810 1 731.0 Quartzite
R_4811 11.5 Quartzite
R_4812 82.7 MPC (South reef). Sulphides
R_4813 25.7 Gritty Quartzite
R_4814 19.4 South Reef. Sulphides
R_4815 1.86 Gritty Quartzite
The implications of these results are significant. They show that the source of
gold is not only confined to the conglomerate bands, but are also present in
grit bands, zones of disseminated pyrite and in inter-conglomerate quartzites.
This finding would add significantly to the amount of tonnage and resources
available for mining.
Bulk sampling is continuing and is currently focusing on a cross-cut from the
Main Reef to the South Reef (on 5 level, East Shaft) and on 9 level (+/-190m
below surface, East Shaft) and will commence in the near future on 5 level, New
Unified Shaft (CMR, approximately 3500m to the west of East Shaft).
(* please refer to the Company`s website for a diagram)
Other exploration achievements:
Seven shafts have been re-accessed
Completed reconnaissance sampling and mapping over CMR, Crown Mines and
Langlaagte
Preliminary mapping on City Deep
Confirmation of un-mined mineralised pillars and reefs through underground
surveying an sampling programme
Reconnaissance drilling on Pyritic Quartzites of Village Main and City Deep
Resource upgraded by 1.8Moz in March 2008
Initial production slots/surface targets identified - slots 2,3,4,5,7,8,9 and 14
Reconnaissance mapping has identified:
Un-mined sections of the North and Main Reef
Un-mined duplicated sections of the Bird and Kimberley Reefs - due to faulting
Large sections of un-worked Elsburg Reefs located towards the southern boundary
of the 3C`s tenement areas
Pyritic Quartzites (Erosional Channels cutting through the North, Main Reefs and
Main Reef Leader)
Viable grades in the soils
Un-complicated mineralogy of orebodies increasing the potential for better
recoveries
Drilling
Since the start of the drilling programme in November 2006, CRG has completed
32,247m of reverse circulation drilling, 2,509m of soil sample drilling, 1,456m
of geotechnical diamond drilling and 15,831m of diamond drilling.
(* please refer to the company website for a diagram)
Drilling has provided the following information:
Geological setting
Mining Targets - Slots
Presence of mineralised zones
Presence of zones of low grade mineralisation
Confirmation of positions of pillars, as reported on old stope plans
Confirmation of the spatial distribution of values predicted by geostats
Confirmation of structural information indicated by the regional mapping
Confirmation of duplication of reef packages - wider surface target areas
Presence of un-mined reefs (i.e. North Reef, South South Reef)
Presence of new reefs (i.e. additional conglomerate bands in the Bird Reefs)
Water table heights and the localities of perched water tables
Geotechnical controls for mine design
Additional Resources
Regional mapping first indicated the presence of mineralisation outside the
conglomerate bands or `reefs`. Drilling these occurrences has confirmed zones of
mineralisation in disseminated pyrite and grit bands outside the known reefs.
Following on from this discovery, underground exploration has confirmed its
presence. It became apparent that quantifying these additional sources of gold
would have to be through bulk sampling. Channel sampling produces a 1 in 12000
representation whereas bulk sampling produces a 1 in 200 representation making
the data more reliable.
The results from the underground bulk sampling are significant as they confirm
the presence of mineralised material outside the conglomerate bands in zones of
disseminated pyrite, grit bands and inter-conglomerate quartzites. This finding
would also add significantly to the amount of mineable tonnage.
(* please refer to the Company`s website for a diagram)
Gold production ramp-up
The Company is on schedule to meet its initial target of producing gold at an
annualised rate of 100,000 ounces by the end of 2009 with trial mining to begin
in October 2008.
Trial Mining
The Company has purchased a plant with the capacity to process ore at a rate of
20 tons an hour from trial mining. The plant, acquired from Gekko Systems in
Australia at a cost of US$5.74 million, comprises a communication circuit, a
gravity circuit and a flotation circuit.
It is expected that the plant will be shipped from Melbourne in August 2008 and
is scheduled to arrive in Johannesburg mid September. It will be erected and be
suitable for commissioning shortly after its arrival.
The trial mining plant, which will be situated on the surface, is expected to be
fully commissioned in October and is expected to ramp up in the following months
to a target rate of around 12,000 tons of ore per month.
Trial mining will confirm the Company`s mining and metallurgical concepts and
determine the final configuration of mining/processing requirements, leading to
the commencement of full scale mining from surface deposits by the end of the
first quarter of 2009.
Full scale mining
Full scale mining of already targeted surface deposits (down to 10m below
surface) and shallow underground mining (between depths of 10m to 70m) will
begin by the end of Q1 2009. The first three mining slots will be accessed for
surface mining as well as providing access for the company`s ongoing drilling
and underground bulk sampling programmes.
Issued on behalf of: Central Rand Gold Limited
Date: 31 July 2008
Contact:
Greg James
Ric Vittino
Wayne Epstein
(011) 551 4000
info@centralrandgold.com
Enquiries:
Buchanan Communications Limited +44 (0) 20 7466 5000
Bobby Morse / Ben Willey
Evolution Securities Limited +44 (0) 20 7071 4300
Simon Edwards / Chris Sim / Neil Elliot
Jenni Newman Public Relations (Pty) Ltd +27 (0) 11 772 1033
Jenni Newman / Megann Outram
Macquarie First South Corporate Finance +27 (0) 11 583 2307
Amanda Markman / Thato Morojele / Annerie van den Berg
Date: 31/07/2008 08:18:38 Produced by the JSE SENS Department.
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