| Mon 9 Nov 2009, 13:43 | | SIM - Simmers - Buffelsfontein Gold Mines Celebrates Completion Of High Grade 5 |
|
SIM
SIIF
SIM - Simmers - Buffelsfontein Gold Mines Celebrates Completion Of High Grade 5
Shaft Project
Simmer & Jack Mines, Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN Code: ZAE000006722
("Simmers" or the "company")
BUFFELSFONTEIN GOLD MINES CELEBRATES COMPLETION OF HIGH GRADE 5 SHAFT PROJECT
Simmers is pleased to announce the completion of the rehabilitation project
designed to restore Buffelsfontein Gold Mines Limited`s ("BGM" or "Buffels")
high grade Number 5 shaft to full operational capacity. The rehabilitation
project was initiated following extensive earthquake damage sustained at Buffels
in 2005.
In the early hours of 9 March 2005, a seismic event measuring 3.9 on the Richter
scale rocked the town of Stilfontein causing severe and extensive damage to
Buffels and the town.
Number 5 shaft suffered heavily as a result of the quake. The concrete lining,
brattice wall and steel work in the main shaft were destroyed. The access route
from 28 level station to the Number 5a sub shaft winder hoist rooms was rendered
inaccessible and the refrigeration chamber on 29 level suffered irreparable
damage. The main ore pass and ore handling system on 28 and 29 levels were badly
damaged, while the main access route between Number 5 main shaft and the Number
5a sub shaft, leading to the prized high grade blocks of ore, had collapsed.
The ambitious repair project has taken 31 months to complete at a capital cost
of ZAR60 million. In total, the project is expected to cost ZAR170 million,
including further opening-up and development required to access the large, high
grade reserve blocks.
In March 2007, a specially selected team embarked on the first of a three-phase
rehabilitation programme following an extensive risk assessment conducted under
the guidance of the Bureau of International Risk Assessments.
Phase One focused on the re-commissioning of the surface men and rock winders
and repairs to the Number 5 main shaft between 27 and 29 level and hoisting via
the main shaft commenced in July 2008.
Phase Two, which tackled the opening up of the deeper levels via the Number 5a
sub shaft, was completed in March 2009. The final phase was completed at the end
of October 2009 following the installation of the new refrigeration plant on 72
level and the successful commissioning of the new loading arrangements on 28, 29
and 72 level.
Commenting on the news, Deon van der Mescht, MD of Simmers` gold operations
said: "This is a huge achievement for Buffels. It has been the mine`s key
capital project and focus since 2007. The rehabilitation work now provides
access to over 1.6 million ounces of gold contained in extensive higher-grade,
long-life reserve blocks. It is therefore a fundamental milestone for the mine
to enable it to succeed with its ramp-up plans."
The development and opening up of the Number 5 shaft towards the high grade ore
body will add an additional 20% to BGM`s annual production over the next three
years. This amounts to an additional 19 000 ounces per annum for FY2011, growing
thereafter to reach an additional 50 000 ounces by FY2016. In total, Number 5
shaft is expected to contribute 1.6 million ounces towards BGM`s life of mine
production profile, at an average delivered grade of 8 grams per tonne compared
to the mine`s average delivered grade of 5.4 grams per tonne.
Van der Mescht added that the focus at BGM would now be on opening up and
development of the shaft. "The decision to tackle the project in-house resulted
in the project coming in significantly under budget and confirms my view that
Buffels has some of the best and most highly-skilled development teams in the
industry. We very much look forward to harvesting those extra high grade ounces
that Number 5 shaft is going to deliver."
For further information please visit www.simmers.co.za or contact:
Gail Strauss Simmers: Group Communications
Mobile +27 82 936 8481
E-mail gail@simmers.co.za
Nick Goodwin Simmers: Investor Relations Executive
Mobile +27 83 629 8605
E-mail nick@simmers.co.za
Note to editors:
Simmers acquired Buffels out of liquidation in December 2005. Before and After
photographs of Number 5 shaft are available at www.simmers.co.za under the
Gallery section.
Johannesburg
9 November 2009
Sponsor
Macquarie First South Advisers (Pty) Limited
Date: 09/11/2009 13:43:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
