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VIL
VIL
VIL - Village - Village completes scoping study at its Lesego Platinum Project
and confirms key characteristics of Platinum Group Metal ("PGM") reefs in the
project area
Village Main Reef Gold Mining Company (1934) Limited
Incorporated in the Republic of South Africa
(Registration Number 1934/005703/06)
Share code on the JSE: VIL
ISIN: ZAE000007720
("Village" or the "company")
Village completes scoping study at its Lesego Platinum Project and confirms key
characteristics of Platinum Group Metal ("PGM") reefs in the project area
- Phase one extensive drilling conducted on time and within budget
- Phase two drilling programme to commence in November 2010
Village today announces that it has completed phase one, the scoping study of
the three phased bankable feasibility study (`BFS`) programme of its Lesego
Platinum project. The completion of the scoping study is the first milestone
reached in the BFS and has produced results in line with initial expectations
from the Competent Person`s Report (`CPR`) and information from historical
boreholes.
From the current exploration drilling programme on the Lesego site, four out of
six boreholes have been completed and have intersected both the Merensky and UG2
reefs at expected depths of between 1 000 metres and 2 000 metres below surface.
The remaining two boreholes should intersect the reefs shortly. Reef thicknesses
were also found to be in line with CPR averages of 1.47 metres for Merensky and
1.18 metres for UG2 at average grades of 6.43g/ton of 3 Platinum Group Elements
(Platinum, Palladium and Rhodium) plus gold for both reefs. Metallurgical
testwork done by Mintek Laboratories on borehole samples yielded recoveries and
grades for both Merensky and UG2 reefs that are characteristic of other reefs in
the region. From this drilling programme a total of 12 000 metres has been
drilled, which is a significant step towards the planned total of 62 000 metres
for the full BFS programme.
`The scoping study results continue to be positive. Confidence in the ore body
is growing and no significant structural anomalies in the geology are evident.
This bodes well for underpinning our business case for the Lesego project and we
look forward to progressing through towards a full bankable feasibility study.`
commented Chief Executive Officer, Bernard Swanepoel.
Successful completion of the Scoping Study milestone has been to the
satisfaction of all the key stakeholders, including the Industrial Development
Corporation, (`IDC`) who has committed R142 million of funding for all three
phases of the BFS. The second funding drawdown of R57 million for the
prefeasibility study has been issued by Village to the IDC and phase two
drilling will commence in November 2010 with the total number of on-site drill-
rigs increasing to seven from four.
Phase two of the drilling programme should result in an upgrade of some of the
current inferred resource to an indicated resource category and is due to be
completed in the second half of 2011.
The company will present an overview on Village tonight at the JSE Limited
("JSE") Mining Showcase hosted at the JSE. No new results not already in the
public will be disclosed and the presentation will be available on
www.villagemainreef.co.za later this evening.
Bryanston
20 October 2010
JSE Sponsor
Macquarie First South Advisers (Pty) Limited
Contacts:
Bernard Swanepoel Dorian Wrigley
Village Chief Executive Officer Village Chief Operating Officer
083 303 9922 (mobile) 011 484 5005 (office)
Bernard@villagemainreef.co.za 082 493 2278 (mobile)
dorian@villagemainreef.co.za
Louise Brugman
Vestor, Media and Investor
Relations
011 787 3015 (office)
083 594 1186 (mobile)
Date: 20/10/2010 12:00:03 Produced by the JSE SENS Department.
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