| Mon 5 Sep 2011, 11:45 | | VIL - Village Main Reef Limited - Village announces an increased resource of |
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VIL
VIL
VIL - Village Main Reef Limited - Village announces an increased resource of
41.8 Moz Starting at 700m below surface at Lesego Platinum
Village Main Reef Limited
(formerly known as Village Main Reef Gold Mining Company (1934) Limited)
(Registration number 1934/0057034/06)
Share Code: VIL
ISIN: ZAE000154761
("Village")
VILLAGE ANNOUNCES AN INCREASED RESOURCE OF 41.8 MOZ STARTING AT 700M BELOW
SURFACE AT LESEGO PLATINUM
- Confirms Lesego as a large, shallow to medium depth, high grade ore
body
- 41.8 Moz 3PGE + gold at an average grade of 6.61 g/t 3PGE + gold over
an average width of 1.17m
- Resource defined from 700m below surface
Shallowest intersection of Merensky reef 320m , with 3PGE + gold
grades of 5.7 g/t over 1 m
- Reduces capex and time to production
- Additional 14 hole shallow drilling programme to test economic
viability from 0 - 700m
Village today announces a significant increased resource of 41.8 m oz of 3 PGE`s
plus gold at their Lesego Platinum project. Concluded after 18 months of infill
drilling, the programme added a further 26 holes and as a result has increased
Lesego`s 3 PGE plus gold resource by 50% from the 27.8m oz Inferred Resource
previously defined.
The upgraded 41.8 Moz resource comprises 16.8 Moz of Merensky Reef and 25.0 Moz
of the slightly deeper UG2 Chromitite. On the Merensky Reef, an improved grade
of 6.75g/t was recorded over an average reef thickness of 1.08m, whilst the UG2
has produced a grade of 6.52g/t over a wider reef thickness 1.26m.
In addition to the increased resource ounces, the resource categorisation has
improved substantially with 11% of the 41.8m oz classified in the Measured
Resource category, 46% in the Indicated Resource category and the 43% balance
remains in an Inferred Resource category.
This upgrade brings Village Main Reef`s attributable share of the project to
32.2 Moz.
LESEGO PLATINUM MINERAL RESOURCES
REEF GRADE Width Moz CU Ni
TONNAGE (g/t) m 3PGE+Au TONNES TONNES
(Mt)* 3PGE+Au
Merensky 77.2 6.75 1.08 16.8 108,192 221,397
UG2 119.5 6.52 1.26 25.1 81,013 217,027
Total 196.7 6.61 1.17 41.8 189,206 438,424
CATEGORY GRADE Width Moz CU Ni
TONNAGE (g/t) m 3PGE+Au TONNES TONNES
(Mt)* 3PGE+Au
Measured 22.3 6.77 1.17 4.8 22,310 52,246
Indicated 91.0 6.60 1.18 19.3 82,586 195,357
Inferred 83.4 6.58 1.17 17.7 84,310 190,821
Total 196.7 6.61 1.17 41.8 189,206 438,424
* 17% Geological
discount applied to
Tonnage
Village Main Reef Limited
(formerly known as Village Main Reef Gold Mining Company (1934) Limited)
(Registration number 1934/0057034/06)
Share Code: VIL
ISIN: ZAE000154761
("Village")
VILLAGE ANNOUNCES AN INCREASED RESOURCE OF 41.8 MOZ STARTING AT 700M BELOW
SURFACE AT LESEGO PLATINUM
- Confirms Lesego as a large, shallow to medium depth, high grade ore
body
- 41.8 Moz 3PGE + gold at an average grade of 6.61 g/t 3PGE + gold over
an average width of 1.17m
- Resource defined from 700m below surface
- Shallowest intersection of Merensky reef 320m , with 3PGE + gold
grades of 5.7 g/t over 1 m
- Reduces capex and time to production
- Additional 14 hole shallow drilling programme to test economic
viability from 0 - 700m
Village today announces a significant increased resource of 41.8 m oz of 3 PGE`s
plus gold at their Lesego Platinum project. Concluded after 18 months of infill
drilling, the programme added a further 26 holes and as a result has increased
Lesego`s 3 PGE plus gold resource by 50% from the 27.8m oz Inferred Resource
previously defined.
The upgraded 41.8 Moz resource comprises 16.8 Moz of Merensky Reef and 25.0 Moz
of the slightly deeper UG2 Chromitite. On the Merensky Reef, an improved grade
of 6.75g/t was recorded over an average reef thickness of 1.08m, whilst the UG2
has produced a grade of 6.52g/t over a wider reef thickness 1.26m.
Remove sentence
In addition to the increased resource ounces, the resource categorisation has
improved substantially with 11% of the 41.8m oz classified in the Measured
Resource category, 46% in the Indicated Resource category and the 43% balance
remains in an Inferred Resource category.
This upgrade brings Village Main Reef`s attributable share of the project to
32.2 Moz.
LESEGO PLATINUM MINERAL RESOURCES
REEF GRADE Width Moz CU Ni
TONNAGE (g/t) m 3PGE+Au TONNES TONNES
(Mt)* 3PGE+Au
Merensky 77.2 6.75 1.08 16.8 108,192 221,397
UG2 119.5 6.52 1.26 25.0 81,013 217,027
Total 196.7 6.61 1.17 41.8 189,206 438,424
CATEGORY GRADE Width Moz CU Ni
TONNAGE (g/t) m 3PGE+Au TONNES TONNES
(Mt)* 3PGE+Au
Measured 22.3 6.77 1.17 4.8 22,310 52,246
Indicated 91.0 6.60 1.18 19.3 82,586 195,357
Inferred 83.4 6.58 1.17 17.7 84,310 190,821
Total 196.7 6.61 1.17 41.8 189,206 438,424
* 17% Geological
discount applied to
Tonnage
Additional intersections at shallower depths of 320m
Subsequent to initiating the resource upgrade statement, further boreholes have
continued to intersect well mineralised reef at depths shallower than 700m. The
shallowest of these boreholes thus far is LES 034 which intersected Merensky at
320m and has returned a grade of 5.7 g/t over 1m.These intersections continue to
suggest that economically viable mineralised reefs may be present closer to the
surface. As a result an additional 14 hole shallow drilling programme, to
determine the economic viability of Merensky and UG2 reef between 700m and the
surface, has been initiated.
Village CEO, Bernard Swanepoel noted, "We have defined this significant resource
at a starting depth of 700m, almost half the initial depth of 1200m. This
confirms the Lesego Project as a large, shallow to medium depth, high grade ore
body, which we believe will be economically viable. The intersection of Merensky
at a shallower depth of 320m is a further bonus and if the new shallow drilling
programme from 700m to surface produces the same quality and consistency of
results, we will realise the further benefit of reduced capex requirements and
time to production".
The resource upgrade has been independently verified by Venmyn Rand who have
acted as the Independent Competent Person on Lesego since 2006.
ENDS
The Venmyn report and an updated investor presentation on the Lesego project are
available on the www.villagemainreef.co.za
Contacts:
Village CEO - Bernard Swanepoel - bernard@villagemainreef.co.za - 083 303 9922
Vestor - Media and Investor Relations - Louise Brugman - louise@vestor.co.za -
011 787 3015 - 083 504 1186
About the Lesego Project
Village controls a 77% interest in the Lesego Project with the Industrial
Development Corporation (IDC) owning the remaining 23%. Situated near
Burgersfort, South Africa, Lesego is fully funded to bankable feasibility study
by the IDC, to the tune of R142 million
The orebody at the Phosiri dome consists of both the UG2 Chromitite and the
Merensky Reef, which occur as distinct layers of contrasting rock type to the
surrounding rocks. They are part of a 3 to 6 km layered package known as the
Rustenburg Layered Suite, which forms part of the Bushveld Igneous Complex. The
Bushveld Igneous Complex formed from molten rock injected into the sedimentary
rocks of the Transvaal Supergroup about 2,055 million years ago, and which
crystallised into distinct layers, a few of which contain concentrations of
valuable metals. The Bushveld Complex therefore contains the greatest
concentration of known mineral wealth on the planet and includes platinum group
element (PGE) ores, base metals such as chromium, iron, tin, titanium and
vanadium and industrial minerals such as andelusite, dimension stone and
magnesite.
5 September 2011
Date: 05/09/2011 11:45:01 Produced by the JSE SENS Department.
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