| Thu 16 Feb 2012, 9:00 | | CRD - Central Rand Gold Limited - Central Rand Gold Signs Agreement with |
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CRD
CRD
CRD - Central Rand Gold Limited - Central Rand Gold Signs Agreement with
Goldplat plc to Mine in South Africa
Central Rand Gold Limited
(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
ofSouth Africa,
Registration number 2007/0192231/10)
ISIN: GG00B24HM601
LSE share code: CRNDJSE share code: CRD
("Central Rand Gold", "CRG" or the "Company")
Central Rand Gold
Signs Agreement with Goldplat plc to Mine in South Africa
Central Rand Gold is pleased to announce that, through its wholly owned
subsidiary Ferreira Estates and Investment Company Ltd, it has signed a
contract mining and beneficiation agreement with Goldplat plc (AIM: GDP), a
London quoted gold producer, with a view of recommencing gold mining at the
Crown East Main Reef (strike 1.2km) and CMR Bird Reef mines (strike 2km) in
the West Rand area near Johannesburg in South Africa. The above mining areas
fall outside of CRG`s near term target areas of CMR Main reef (East and West)
and Crown West.
Subject to due diligence, under the terms of the agreement Goldplat will have
the rights to assume mining, at its own cost and risk, of the two sites in
return for a 5% net smelter royalty to Central Rand Gold. It is envisaged
that the ore from the two sites will be processed at Goldplat`s own gold
recovery operations in South Africa.
During the 90 day due diligence phase, initial work by Goldplat will focus on
confirming historic data, sampling and evaluating the historically producing
reefs which start from surface to ascertain the higher grade areas from which
to commence production. Both parties believe that Crown East Main Reef and
CMR Bird Reef mines contain significant gold bearing ore available to mine at
commercial rates. A further announcement will be made following completion of
the due diligence phase.
Commenting on the agreement with Goldplat plc, Johan du Toit CEO, stated:
"This agreement with Goldplat is aligned with our strategy of seeking
opportunities to fully exploit our current mining right area. As the mining
areas identified were not part of CRG`s near term production plans, this
agreement will provide additional benefit to all stakeholders through job
creation and procurement opportunities as well as additional revenue to CRG
shareholders, through royalty payments."
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 +44 (0) 20 7466 5000
Bobby Morse / James Strong
Jenni Newman Public Relations (Proprietary) Limited +27 (0) 11 506 7351
Jenni Newman
16 February 2012
Johannesburg
JSE Sponsor
Merchantec Capital
Date: 16/02/2012 09:00:01 Produced by the JSE SENS Department.
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