| Fri 6 Mar 2009, 12:35 | | AFO - Aflease Gold`s Position Regarding The Pamodzi Gold Limited Pumping Crisis |
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AFO
AFO
AFO - Aflease Gold`s Position Regarding The Pamodzi Gold Limited Pumping Crisis
Aflease Gold Limited
(Incorporated in the Republic of South Africa)
(Registration number 1984/006179/06)
JSE Share code: AFO
ISIN: ZAE000075867
International Prime QX (OTCQX): AFSGY
("Aflease Gold" or "the company")
AFLEASE GOLD`S POSITION REGARDING THE PAMODZI GOLD LIMITED PUMPING CRISIS
Aflease Gold hereby clarifies its position regarding the Pamodzi Gold Limited
("Pamodzi") pumping crisis in respect of a possible rising water level at
Grootvlei Mine on the East Rand.
The pumping crisis reported by Pamodzi holds no immediate or short-term threat
to either the safety of Aflease Gold employees nor to the company`s mining
operation at Sub Nigel and in particular, holds no threat whatsoever to Aflease
Gold`s Modder East Operations.
The underground workings at Aflease Gold`s Modder East operations are totally
divorced from the East Rand Basin and are in no way affected by the current
pumping crisis or any future flooding of the Basin.
Whilst the company`s Sub Nigel operations are connected to the East Rand Basin
water, it does not constitute an immediate threat thereto. The decision to re-
commission the mine was taken with full knowledge of the risk that Pamodzi may
in the future cease pumping, hence the limited capital re-commissioning outlay
and the small production profile of 6000 ozs. Mining currently takes place on
17 level which is 150m above the level at which Grootvlei Mine would start
flooding. It is estimated that on flooding the water would rise at 300mm per
day.
Aflease Gold CEO, Neal Froneman, said that the company is aware of the risk to
Sub Nigel as a result of a possible rising water level on the East Rand Basin
and that such risk is factored into the scale of the re-commissioning operation.
Froneman said that the decision to re-commission Sub Nigel in phases (the first
phase of which the company recently announced was completed at a cost of R15
million) was taken specifically with that risk in mind.
For further information contact Neal Froneman, chief executive officer, on +27
83 628 0226
Issued by Aflease Gold Limited
Website: www.gold1.co.za
FORWARD-LOOKING STATEMENT: This news release includes certain "forward-looking
statements" and "forward-looking information". All statements other than
statements of historical fact included in this release including, without
limitation, statements regarding future plans and objectives of Aflease Gold and
BMA Gold are forward-looking statements (or forward-looking information) that
involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements. Important factors
could cause actual results to differ materially from Aflease Gold and BMA Gold`s
expectations. Such factors include, among others, the actual results of
exploration activities, actual results of reclamation activities, the estimation
or realisation of mineral reserves and resources, the timing and amount of
estimated future production, costs of production, capital expenditures, costs
and timing of the development of new deposits, availability of capital required
to place Aflease Gold and BMA Gold`s properties into production, conclusions of
economic evaluations, changes in project parameters as plans continue to be
refined, future prices of gold and other commodities, possible variations in ore
grade or recovery rates, failure of plant, equipment or processes to operate as
anticipated, accidents, labour disputes and other risks of the mining industry,
delays in obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, Aflease Gold and BMA
Gold`s hedging practices, currency fluctuations, title disputes or claims
limitations on insurance coverage, Although Aflease Gold and BMA Gold have
attempted to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements. Aflease
Gold and BMA Gold do not undertake to update any forward-looking statements that
are included herein, except in accordance with applicable securities laws. No
stock exchange, securities commission or other regulatory authority has approved
or disapproved the information contained herein.
Date: 06/03/2009 12:35:01 Produced by the JSE SENS Department.
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