| Mon 5 Sep 2011, 8:00 | | CRD - Central Rand Gold Limited - Central Rand Gold awaits Department of Mineral |
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CRD
CRD
CRD - Central Rand Gold Limited - Central Rand Gold awaits Department of Mineral
Resources` response to its timeous presentation and documentation
Central Rand Gold Limited
("Central Rand Gold" or the "Company" or the "Group")
(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 2007/0192231/10)
ISIN: GG00B24HM601
Share code on LSE: CRND
Share code on JSE: CRD
CENTRAL RAND GOLD AWAITS DEPARTMENT OF MINERAL RESOURCES` RESPONSE TO ITS
TIMEOUS PRESENTATION AND DOCUMENTATION
In response to recent media speculation, Central Rand Gold Limited can confirm
that it has responded in full to the South African Department of Mineral
Resources (DMR) in terms of a compliance notice it received from the DMR on
August 5, 2011.
In terms of this notice, the DMR said it was considering re-evaluating the
Company`s Mining Right as a result of certain elements of "non-compliance" with
Social Labour Plan (SLP) requirements of its New Order Mining Right. This plan
was based on its original 2008 operational plans submission which had envisaged
a considerably larger resource base and operation.
On August 24 2011, a presentation was made by the Company to the DMR, outlining
how the Company is rectifying these issues of "non-compliance".
The Company advised in its Interim Report for the six months to June 30 - issued
on RNS and SENS on August 26, 2011 - that it was engaged in discussions with the
DMR. The Interim Report stated: "A request has been made to the DMR to review
the Company`s current and future Social Labour Requirement commitments so that
they reflect the operational reality of a reduced short-term resource base more
closely. The reduction in the short term resource base is as result of a number
of factors, including AMD, which have impacted the Company and other mining
companies in the Witwatersrand basin.
CRG, in its first two years of operations, spent over R18m on various Social and
Labour Plan projects as well as recently spending R35m on acquiring the water
pumps that would be required to stop the rising water table in the Central
Basin, despite having no legal liability to do so. CRG believes that based on
the resource base available to it, which has substantially been flooded, it has
substantially complied with both the spirit and the intent of the original
Social and Labour Plan and furthermore the Minerals and Petroleum Resource
Development Act. Furthermore, CRG has made commendable progress in its
employment equity and procurement programmes to involve local communities and
black-owned entities.
It is important to note that the Company has until September 9 2011 to submit
further documentation to the DMR, if it feels that this is necessary. Central
Rand Gold is waiting for an official response from the DMR and continues to
evaluate its submission and will inform shareholders accordingly.
The Company remains confident of resolving these important issues with the
relevant South African authorities and developing the considerable economic
resources it has discovered during its short tenure in the Central Rand for the
benefit of all stakeholders, including shareholders, local communities and the
people of South Africa.
For further information, please contact:
Central Rand Gold +27 (0) 11 674 2304
Johan du Toit / Patrick Malaza
Evolution Securities Limited +44 (0) 20 7071 4300
Chris Sim / Neil Elliot
Merchantec Capital +27 (0) 11 325 6363
Roger Pitt / Monique Martinez
Buchanan Communications Limited +44 (0) 20 7466 5000
Bobby Morse / James Strong
Jenni Newman Public Relations (Pty) Ltd +27 (0) 11 506 7351
Jenni Newman
September 5, 2011
Johannesburg
JSE Sponsor
Merchantec Capital
Date: 05/09/2011 08:00:08 Produced by the JSE SENS Department.
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