| Tue 1 Mar 2011, 8:00 | | VIL - Village - Merensky Reef discovered at a depth of only 590m at Village`s |
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VIL
VIL
VIL - Village - Merensky Reef discovered at a depth of only 590m at Village`s
Lesego Platinum Project
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")
Merensky Reef discovered at a depth of only 590m at Village`s Lesego Platinum
Project
- Increasing potential for a shallow to medium depth ore body
Village announces that a second borehole, LES024 in the shallow drilling
exploration program, drilled up dip from the first shallow drilling program
borehole, LES022, on the Lesego Platinum project, has intersected Merensky Reef
at 590m below surface. This second borehole is positioned a further 250m closer
to the Phosiri Dome and has intersected a 45 dipping Merensky Reef with visible
sulphide mineralisation over a thickness of about 50cm. Continued drilling of
this borehole is expected to intersect UG2 Chromitite.
The first borehole from the shallow drilling exploration programme, LES022,
recorded an intersection of Merensky with a width of 1.46m at 943m below
surface. The UG2 Chromitite was intersected at a depth of 1,232m below surface
with an apparent thickness of 70cm and a dip of 30.
Chief Executive Officer of Village, Bernard Swanepoel noted, "Discovering
Merensky and UG2 at these shallower depths is a game changer and enhances the
potential value of this project significantly. Further confirmatory drilling
along strike will potentially position the Lesego Project as a shallow to medium
depth high grade ore body as opposed to the previous generally accepted
perception of it being a deep ore body".
The discoveries of these two shallower reef intersections has extended the
possible Merensky Reef resource up-dip, closer to the Phosiri Dome to depths of
less than 600m from the original resource boundary, which was defined at 1200m.
The results are in line with the company`s geological model, which indicates
that as drilling approaches the Phosiri Dome, shallower resources are expected
as the dome uplift is responsible for bringing both the Merensky Reef and the
UG2 Chromitite closer to the surface.
Assay results for these shallow reef intersections have not yet been received.
Further drilling will continue along strike in order to define a shallower
resource.
Village intends to release an updated resource statement once this drilling
program is completed and all assay results have been received and analysed.
The information in this statement relating to Mineral Resources and geology has
not been reviewed by an independent Competent Person in terms of the SAMREC and
JORC codes.
ENDS
Bryanston
01 March 2011
JSE Sponsor
Macquarie First South Advisers (Pty) Limited
Bernard Swanepoel
Village Chief Executive Officer
083 303 9922 (mobile)
Bernard@villagemainreef.co.za
Dorian Wrigley
Village Chief Operating Officer
011 484 5005 (Office)
082 493 2278 (mobile)
Dorian@villagemainreef.co.za
Louise Brugman
Vestor, Media and Investor Relations
011 787 3015 (office)
083 504 1186 (mobile)
louise@vestor.co.za
Date: 01/03/2011 08:00:01 Produced by the JSE SENS Department.
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