| Wed 8 Jun 2011, 7:47 | | GGM - Goliath Gold Mining Limited - Sub Nigel training centre to cease |
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GGM
GGM
GGM - Goliath Gold Mining Limited - Sub Nigel training centre to cease
operations
GOLIATH GOLD MINING LIMITED
(Formerly White Water Resources Limited)
Incorporated in the Republic of South Africa
(Registration number 1933/004523/06)
Share code: GGM ISIN: ZAE000154753
("Goliath Gold" or "the Company")
SUB NIGEL TRAINING CENTRE TO CEASE OPERATIONS
Goliath Gold advises that the underground training centre at the Sub Nigel 1
Shaft will temporarily cease operations, including production, due to rising
water levels in the East Rand Basin. The training centre will be relocated to
Gold One International Limited`s ("Gold One") Modder East mine.
The rising water levels at the Sub Nigel mine are the result of the cessation
of pumping at the nearby Grootvlei mine, which, up until 30 May 2011, was
managed by Aurora Empowerment Systems on behalf of the provisional liquidators
of the Pamodzi Gold group of companies.
Aurora stopped pumping at Grootvlei during February of this year, following
the removal of the mine`s underground pumps. Goliath Gold is of the considered
opinion that it is unlikely that the pump station will be re-instated in the
near future.
While the water level at the Sub Nigel mine has not yet reached a critical
level, Goliath Gold together with Gold One, estimates that the water level at
the Sub Nigel mine will reach a critical point around August 2011. In light of
this, the Company believes that the closure of the training centre at the Sub
Nigel 1 Shaft is a prudent and necessary step to secure the safety of employees.
Goliath Gold is also investigating, in conjunction with Gold One, the plugging
of the Sub Nigel 1 Shaft, just below the Kimberley Reef horizon, in order to
preserve certain underground workings for future use.
Subject to the Goliath Gold Transaction announced to shareholders on 13 October
2011, becoming unconditional, the Sub Nigel mine will form part of the Megamine
Business that will be acquired from Gold One Africa Limited, a wholly owned
subsidiary of Gold One.
Johannesburg
8 June 2011
Sponsor
Merchantec Capital
For further information contact:
Neal Froneman
Chief Executive Officer
+27 11 726 1047 (office)
+27 83 628 0226 (mobile)
neal.froneman@gold1.co.za
Ilja Graulich
Investor Relations
+27 11 726 1047 (office)
+27 83 604 0820 (mobile)
ilja.graulich@gold1.co.za
Carol Smith
Investor Relations
+27 11 726 1047 (office)
+27 82 338 2228 (mobile)
carol.smith@gold1.co.za
Date: 08/06/2011 07:47:02 Produced by the JSE SENS Department.
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