| Tue 25 Aug 2009, 8:31 | | CRD - Central Rand Gold - Initial reserve statement for Central Rand Gold |
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CRD
CRD
CRD - Central Rand Gold - Initial reserve statement for Central Rand Gold
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 2007/019223/10)
ISIN: GG00B24HM601
Share code on LSE: CRND
Share code on JSE: CRD
("Central Rand Gold" or "CRG")
INITIAL RESERVE STATEMENT FOR CENTRAL RAND GOLD
Johannesburg, August 25, 2009: Central Rand Gold Ltd (LSE: CRND, JSE: CRD), the
South African gold mining and exploration holding company, has released its
first independent Resources to Reserves conversion report ("Snowden Report" or
the "Report"). The Report was conducted by Snowden Mining Industry Consultants
on a section of the Company`s Central Rand Goldfield (the "Project") tenements
in southern Johannesburg.
Highlights
- The first CMR mine is economic and technically feasible;
- JORC Probable Reserve of 270,900 ounces of gold (2.06 million
tonnes at 4.1g/t) converted from Indicated Resources within the Main Reef on
the Consolidated Main Reef tenement in two well defined channels at depths of
between 70m and 500m and 70m and 750m below surface over approximately 2km of
strike where trial mining is set to begin;
- Conversion rate of 70% from Indicated Resource to Probable Reserve was
achieved for Main Reef mineralization exceeding 3g/t within the identified
channels; and
- Run of Mine Operating Costs for this initial Reserve conversion - US$580/oz.
The Ore Reserve is presented in the table below:
Area Classification Tonnes (Mt) Au (g/t) Au (oz)
East Limb Probable 0.719 4.1 94,400
West Limb Probable 1.342 4.1 176,500
Total Probable 2.061 4.1 270,900
The process for the compliant Reserve conversion (which has been reported in
accordance with the JORC code) developed with Snowden was necessarily rigorous
in its assumptions and the Board has strong confidence that the resultant
modeled outputs of this process represent a strong base case upon which the
Company will be able to build.
Commenting on the report, Chief Executive Officer, Johan du Toit, said:
"Today`s results are a significant milestone for CRG. The Report is based on two
well-defined channels in the Main Reef, without the inclusion of any additional
ore such as sweepings, vamping, Main Reef Leader pillars, auriferous middling
material and surface material. With Snowden confirming that our mining method
and mine plan can develop an economic mine, this is the first of many steps in
building a large and sustainable business over the next few years."
The full Snowden Report is available on the Company`s website:
www.centralrandgold.com
Central Rand Gold will host a conference call on Tuesday 25 August 2009 at 10:00
am (London, UK time) / 11:00am (South Africa) to update investors and analysts
on its Q2 Results and Reserve Update.
Participants may join the call by dialling one of the three following numbers,
approximately 10 minutes before the start of the call.
From UK: (toll free) 0808 109 1498
From South Africa: (toll free) 0800 999 539
From Australia: (toll free) 1800 052 112
Participant pass code: 878026#
Johan du Toit, Chief Executive Officer, will lead the discussion and will be
accompanied by other members of the management team. The discussion will be
followed by a question and answer period.
For further information, please contact:
Central Rand Gold +27 (0) 11 551 4000
Johan du Toit/ Wayne Epstein
Evolution Securities Limited +44 (0) 20 7071 4300
Simon Edwards/ Chris Sim/ Neil Elliot
Macquarie First South Advisers (Pty) Ltd +27 (0) 11 583 2000
Thembeka Mgoduso/ Annerie Britz/
Melanie de Nysschen/ Manisha Ramlakhan
Buchanan Communications +44 (0) 20 7466 5000
Bobby Morse/ Ben Willey/ Katherine Sutton
Jenni Newman Public Relations (Pty) Ltd +27 (0) 11 506 7300
Jenni Newman/ Megann Outram/ Lerato Tlatlane
25 August 2009
Johannesburg
Sponsor
Macquarie First South Advisers (Pty) Limited
Date: 25/08/2009 08:31:01 Produced by the JSE SENS Department.
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