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SIM
SIIF
SIM - Simmer and Jack Mines Limited - Two shaft re-opens 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
("Simmer aand Jack")
TWO SHAFT RE-OPENS AT BUFFELSFONTEIN GOLD MINE
Simmer and Jack announced today that it had received permission from the
Department of Minerals and Energy (DME) to resume mining at the Buffelsfontein
Gold Mine`s Number Two shaft. The shaft was closed on Friday 29 August 2008
following a seismic event that triggered a fall of ground, resulting in the
death of a mineworker.
According to Deon van der Mescht, Simmer and Jack`s chief operating officer, the
DME has lifted its suspension order subject to the shaft implementing additional
support elements in pillar areas over and above what has up until now been
considered to be best practice in the industry.
"The additional support recommendations however increase costs and will take
time to implement. For this reason the shaft will resume production at only 30%
of its planned production levels and ramp up to full production over a four
month period," said Van der Mescht.
"As a result, we are obliged to place the shaft under review to investigate
whether it can operate profitably and to what extent costs can be rationalised.
A rationalisation committee, which includes representatives from organised
labour, has been established to investigate the viability of the shaft," he
said.
Van der Mescht added that aside from lower than anticipated production levels
over the next four months, the shaft`s viability was also impacted by the recent
significant decline in the Rand/gold price which has been compounded by higher
than inflation increases in the cost of materials.
Despite this incident Buffelsfontein Gold Mine remains on track to produce
between 30 000 and 34 000 ounces for the current quarter, a 10% improvement
compared to the previous quarter.
Queries may be directed to Gail Strauss on 0847774060 or gail@simmers.co.za
Johannesburg
11 September 2008
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 11/09/2008 17:10:05 Produced by the JSE SENS Department.
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