| Mon 15 Sep 2008, 16:43 | | SIM - Simmers - Major Milestone For Buffelsfontein Gold Mine`s Five Shaft |
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SIM
SIIF
SIM - Simmers - Major Milestone For Buffelsfontein Gold Mine`s Five Shaft
Project As Hoisting Begins
SIMMER AND JACK MINES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN: ZAE000006722
("Simmers" or "the company")
MAJOR MILESTONE FOR BUFFELSFONTEIN GOLD MINE`S FIVE SHAFT PROJECT AS HOISTING
BEGINS
Simmer & Jack Mines, Limited (Simmers or the Company) is pleased to announce
that Buffelsfontein Gold Mine (BGM) has commenced hoisting operations at its
high grade Number Five shaft.
"This is a significant step in terms of getting the Number Five shaft to the
point where it can begin making a meaningful contribution to BGM`s production
profile," said Deon van der Mescht, the Company`s chief operating officer.
"Up until now, production at Five shaft has been constrained by cage hoisting.
With the commissioning of the new hoisting facility at the Number Five main
shaft, this constraint has been resolved. The immediate impact will be to
increase the shaft`s production for the current month by 50% compared to the
previous month. In the longer term, it gives us the capacity to take advantage
of the expected 20% month on month increase in face length coming out of Five
shaft over the next four months," said Van der Mescht.
Number Five shaft is undergoing a three-phase rehabilitation programme which has
thus far added 1.6 million reserve ounces to BGM`s reserve base at a capital
cost of US$13/oz. It is one of six operational shafts at BGM and is destined to
play a significant role in the mine`s profitability by the end of the current
financial year which is March 2009. Currently, the bulk of the mine`s production
comes from the Number Six, Seven and Eight shafts.
"The exciting thing about Five Shaft is that it contains large blocks of virgin
ore which are of a better grade and easier to mine than the `remnant` mining
that has occupied us to date."
"Phase One was completed at the end of the first quarter this year. The new
hoisting facility is part of Phase Two and makes it significantly easier and
more efficient to get ore to the surface. By March next year we hope to have
completed the third phase of the project which involves installing a
refrigeration plant on 72 Level in order to facilitate access to the lower
blocks and the high grade haulage pillar on 77 level," said Van der Mescht.
Five Shaft is expected to contribute 20% (or 1.2 million ounces) of BGM`s
production over the life of mine. With an average delivered grade of 8 grams per
tonne compared to the mine`s average delivered grade of 5.4 grams per tonne, it
is also expected to boost volumes and gold output at the mine.
The shaft, which suffered extensive damage in March 2005 at the hands of a
severe seismic event, is expected to be fully operational at the end of March
2009.
Queries may be directed to Gail Strauss on +27 (0) 847774060 or via email to
gail@simmers.co.za
Johannesburg
15 September 2008
Sponsor
Sasfin Capital (A division of Sasfin Bank Limited)
Date: 15/09/2008 16:43:18 Produced by the JSE SENS Department.
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