AVGOLD LIMITED
56 Main Street, Johannesburg, 2001, South Africa
Phone: (+27 11) 634-9111, Fax: (+27 11) 634-0038
Share Code : AVG
ISIN Code : ZAE000012175
News release
Contact details:
JULIAN GWILLIM
Direct line: (+27 11) 634-0092
Mobile: 082 4524 389
AVGOLD UPDATE
Johannesburg, 20 December 2001: During the early morning of Wednesday,
19 December 2001, Avgold Limited's Target gold mine reached its full mining
production rate of 17 500 tonnes over five consecutive days. At this rate
of 3 500 tonnes a day, the mine has achieved the full production level of
105 000 tonnes a month, thus achieving its completion test. At this
production level, Target will produce some 350 000 ounces of gold a year.
This achievement is within budget and two months ahead of the anticipated
schedule.
Avgold Chairman, Rick Menell, commented: "The commissioning of the mine's
new gold plant is continuing and I am sure that we will see the plant
running properly and the first gold pour within the next few weeks."
Menell continued: "Target is one of the most exciting deep-level gold mining
projects that southern Africa has seen in recent years and ushers in a new
era of mining in the Witwatersrand basin. This mine will operate within the
lowest cost quartile of world underground gold producers at a cash cost of
less than US$150.00 an ounce of gold." T
ETC sale process discontinued
On 22 May 2001, Avgold informed shareholders that it was considering the
merits of the disposal of the Company's ETC gold mining complex in
Barberton, Mpumalanga Province. Prospective buyers were invited to
participate in a formal process and numerous offers were received for the
mine. However, in view of a change in the mine's value, following recent
weakness of the South African rand against the United States dollar, the
Board has decided to discontinue the sale process and review future
strategic management plans for ETC.
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