| Wed 1 Apr 2009, 7:06 | | AFO - Aflease Gold - A Significant Step Toward Becoming A Gold Producer |
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AFO
AFO
AFO - Aflease Gold - A Significant Step Toward Becoming A Gold Producer
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")
2008 - A significant step toward becoming a gold producer
HIGHLIGHTS
- Modder East development successfully negotiates the water bearing
dolomites and intersects the reef horizon in all three development ends
- Modder East on schedule for first gold pour in Q4 2009
- Sub Nigel re-commissioned in December 2008 and stoping operations begin
with first gold production expected in June 2009
- Funding shortfall reduced to R30m following a post-year end R90m capital
raise
- Focused cost reduction strategy and a fair value adjustment to the bond
liability results in a significant financial performance improvement;
- The Ventersburg project moves into pre-feasibility phase with declaration
of first 1.437 million ounce indicated resource
- Strategic acquisition to create Gold One with a dual primary listing on
the JSE and ASX is well advanced
Johannesburg, 31 March 2009: Aflease Gold Limited ("Aflease" or "the company")
(AFO - JSE) today announced a reduced headline loss for the year ended
December 2008.
As reported in its trading update of 27 March 2009, the reduction in headline
loss from R81.9m to R44.8m was as a result of reduced general and
administrative as well as a fair value adjustment to the bond liability.
Available capital was in turn strategically focused on the company`s core
development project, Modder East.
While operationally Modder East is on track for its first gold pour at the end
of 2009, Aflease continued its advances to become a global mid-tier gold
producer, by announcing a reverse-takeover of Australian listed BMA Gold
Limited. The deal - subject to, inter alia, bondholder approval after all
regulatory and shareholder approvals were met - will bring significant
benefits to the company.
The newly formed company, to be known as Gold One International Limited, will
create an attractive international gold business with a new mine on the cusp
of production and a portfolio of growth prospects, coupled with a combined
resource of more than 13m ounces of gold across the portfolio of assets in
Australia, Mozambique, Namibia and South Africa.
SA operations
During 2008, Modder East successfully completed the development of all three
of the main access ends (main decline, return airway and decline west) through
the water bearing dolomites with the first gold pour expected to take place in
the last quarter of 2009.
During June 2008, the Company approved the first phase of the recommissioning
of Sub Nigel at a capital cost of R28.9 million after a detailed study showed
a reasonable return for a relatively small investment in infrastructure. In
March 2009, Sub Nigel began to hoist its first ore, to be treated at Modder
East, as the mine`s plant is commissioned towards the middle of 2009. Sub
Nigel will also provide a valuable training ground for employees earmarked for
Modder East.
Commented Neal Froneman, Aflease Gold CEO "2008 was a company changing year
for Aflease, as both the operations made strong headway towards becoming a
producer, while we announced a major transaction that will leapfrog us into
becoming a high-margin mid tier gold producer."
"Together with a dedicated team and strong shareholder support, I am positive
that 2009 will provide more opportunities to enhance returns for Gold One
"concluded Froneman.
For further information contact Neal Froneman, chief executive, on +27 83 628
0226
Issued by Aflease Gold Limited
Website: www.afleasegold.com
Note to editors:
Aflease Gold is a South African gold development company listed on the JSE
(share code AFO). It is developing the new Modder East mine on the East Rand,
some 30 kilometres from Johannesburg, and also owns the nearby existing Sub
Nigel mine, currently being brought back into production. Its other projects
and targets include Ventersburg, a large project with inferred resources, and
Bothaville, both in the Free State Goldfields, the Tulo concession in
Mozambique and the Etendeka greenfields project in Namibia. It has a resource
base of some 13 million ounces of gold.
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. In addition, this news release uses the terms
"indicated resources" and "inferred resources" as defined in accordance with
the SAMREC Code (South African Code for Reporting of Mineral Resources and
Mineral Reserves prepared by the South African Mineral Resource Committee)
(SAMREC) under the auspices of the South African Institute of Mining and
Metallurgy effective March 2000 or as amended from time to time. A mineral
reserve is the economically mineable part of a measured or indicated resource
demonstrated by at least a preliminary feasibility study. This study must
include adequate information on mining, processing, metallurgical, economic
and other relevant factors that demonstrate at the time of reporting that
economic extraction can be justified. A mineral reserve includes diluting
materials and allows for losses that may occur when the material is mined. A
proven mineral reserve is the economically mineable part of a measured
resource for which quantity, grade or quality, densities, shape and physical
characteristics are so well established that they can be estimated with
confidence sufficient to allow the
appropriate application of technical and economic parameters to support
production planning and evaluation of the economic viability of the deposit. A
probable mineral reserve is the economically mineable part of an indicated
mineral resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic
parameters to support mine planning and evaluation of the economic viability
of the deposit. A mineral resource is a concentration or occurrence of
natural, solid, inorganic or fossilized organic material in or on the earth`s
crust in such form and quantity and of such a grade or quality that it has
reasonable prospects for economic extraction. The location, quantity, grade,
geological characteristics and continuity of a mineral resource are known,
estimated or interpreted from specific geological evidence and knowledge. A
measured mineral resource is that part of a mineral resource for which
quantity, grade or quality, densities, shape and physical characteristics can
be estimated with a level of confidence sufficient to allow the appropriate
application of technical and economic parameters to support mine planning and
evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drillholes that are spaced closely enough to confirm both
geological and grade continuity. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic
parameters to support mine planning and evaluation of the economic viability
of the deposit. The estimate is based on detailed and reliable exploration and
testing information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drillholes that are spaced
closely enough for geological and grade continuity to be reasonably assumed.
An inferred mineral resource is that part of a mineral resource for which
quantity and grade or quality can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based on limited exploration
and sampling gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drillholes. Mineral resources which are
not mineral reserves do not have demonstrated economic viability. Investors
are cautioned not to assume that all or any part of the mineral deposits in
the measured and indicated resource categories will ever be converted into
reserves. In addition, "inferred resources" have a great amount of uncertainty
as to their existence and economic and legal feasibility. It cannot be assumed
that all or any part of an inferred mineral resource will be ever be upgraded
to a higher category. Under South African rules, estimates of inferred mineral
resources may not form the basis of feasibility or pre-feasibility studies or
economic studies except under conditions noted in the SAMREC Code. Investors
are cautioned not to assume that all or any part of an inferred resource
exists or is economically or legally mineable. Exploration data is acquired by
the corporation and its consultants under strict quality assurance and quality
control protocols. No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information contained
herein.
Date: 01/04/2009 07:06:00 Produced by the JSE SENS Department.
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