Formal Alliance Concluded Between Ps!gold And Bran
President Steyn Gold Mines Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/014461/06)
("PS!Gold" or "the company")
Formal alliance concluded between PS!Gold and Brandrill Limited.
Further to the cautionary announcement dated 26 March 2001, PS!Gold has now
entered into a formal alliance with Brandrill Limited ("Brandrill") by way
of a co-development arrangement. Brandrill is a very successful mining
technology company and holds various worldwide patents. The company is
active in Australasia, the USA and South Africa. Brandrill has identified
South Africa as a major focus area for the implementation of its rock
breaking technology
The PS!Gold development team has executed an intensive analysis of
controlled rock breaking and structural continuous mining processes and has
concluded that the PCF(tm) patented technology developed and owned by
Brandrill is a leading methodology. Trials and development work undertaken
by Brandrill with leading South African platinum and gold producers support
this perception.
PS!Gold and development partner Brandrill are convinced that skills transfer
will play a paramount role in the institutionalisation of the new rock
breaking routine. PS!Gold will assume responsibility ensuring the
development of practical and outcome based training material supporting the
implementation of continuous mining. TMTI, a wholly owned subsidiary of
PS!Gold, has been engaged to develop suitable course material to be used in
this regard. Brandrill personnel will support this process with technical
and operational know how.
PS!Gold and Brandrill have investigated the viability and desirability of
entering into a formal working alliance aiming at commercialising continuous
mining using Brandrill's PCF(tm) rock breaking technology. The parties have
formulated a plan to forward the alliance by means of a systematic step-by-
step approach. The first step involved the President Steyn 1a shaft being
re-equipped for use as a continuous mining development area. A dedicated
mining team has been designated to the project. A comprehensive independent
project due diligence has already been finalised and the groundwork for
implementation completed. The next step will involve Brandrill completing a
200 PCF(tm) cartridge test during June 2001 to establish the types of
cartridges that should be used at President Steyn 1a shaft. Upon successful
completion of the tests a four-month controlled rock-breaking trial is
scheduled to commence during July 2001. Based on the outcome of the four-
month trial period, a formal technology development and joint intellectual
property ownership agreement will be formulised. PS!Gold will then commence
a two year phased implementation of a continuous mining programme at all the
shafts.
The benefits of continuous mining will have a quantum leap impact on the
viability and "life of mine" expectancy of PS!Gold. Production enhancement
along with major cost savings will result in significant cash flow
advantages. Generic studies indicated underground cost reduction in the
order of 30% and substantial increases in recovered grades. Drastic
improvements in productivity are also foreseen.
Johannesburg
1 June 2001
Corporate Advisor Sponsor
ARGIL BOE
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