| Mon 22 Jul 2002, 0:00 | | The Afrikander Lease Ltd - Press Release |
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THE AFRIKANDER LEASE LTD - PRESS RELEASE
AFLEASE UPGRADE ACHIEVES TARGET
The management of AFLEASE is pleased to announce that the upgrade undertaken in
September 2001 and commissioned in March 2002 is performing to expectation. The
gold pour, attended by various dignitaries, on 18th July 2002, exceeded the
anticipated operational budget (weekly budget 1,150 oz) to achieve a bullion
pour of 1,415 oz. The improved gold production is now achieving the planned
level of expectation.
DETAILS OF SEPTEMBER 2001 UPGRADE
The Aflease open cast pit and process plant upgrade plan, implemented in
September 2001, completed on budget during February 2002, commissioned in March
2002 and commenced full operational service from the second quarter of 2002,
produced first gold from pad #3 in April 2002. Highlights relating to this
upgrade which will benefit the mine with increased gold production are
summarised below:
OPEN PIT UPGRADE DETAILS
- Excavator fleet increased by 20% with the acquisition of two new 75 ton
excavators.
- Truck fleet increased by 40% with the acquisition of seven new 85 ton dump
trucks.
- High grade pit commenced production, now producing additional tons for
blending.
- Open cast pit production capacity increased by 35% to 165,000 tpm.
PROCESS PLANT UPGRADE DETAILS
- Process plant upgraded by 40% to treat deeper, harder sulphide ore at 165,000
tpm.
- Average crush size reduced by 43%.
- Recovery increased from 70% to 80% (of leachable gold) from sulphides.
- The overall cycle time to be reduced from 150 days to 120 days.
DETAILS OF PREVIOUS AFLEASE UPGRADES
Aflease has a successful history of upgrades commencing with the acquisition of
the mine in 1998, as follows :
1998 : The Afrikander Lease Gold Mine acquired from Anglo American.
The underground mining section closed.
Exploration and open pit mining operations of the Inner Basin
commenced.
1999 : Closure of the old Aflease uranium/gold processing plant (10kms from
ore body).
The heap leach project conceived and funding raised.
Exploration of the open pit resources confirms 1,000,000 oz.
2000 : The pit production upgrade from 50,000 tpm to 150,000 tpm implemented.
The heap leach processing plant successfully commissioned.
The first US$150/oz cash cost heap leach gold produced from Aflease.
2001 : The September 2001 pit and plant upgrade plan conceived and
implemented.
Exploration of the open pit resources confirms 3,070,000 oz.
2002 : The September 2001 upgrade completed and commissioned on budget.
The September 2001 upgrade gold production increase achieved.
The Aflease 230,000 tpm CIL upgrade conceived and implemented.
METALLURGICAL TEST WORK
Additional ongoing metallurgical test work undertaken by Metallurgical Design &
Management (Pty) Ltd (MDM), in conjunction with Lakefield Research Africa (Pty)
Ltd, continues to confirm the suitability of the Aflease ore for treatment by a
CIL plant. Results confirm a higher than anticipated percentage of free gold for
gravity separation. (For further details contact Mr Hayward @ 083 602 5776.)
AFLEASE 230,000 TPM CIL EXPANSION
With the increase in the gold price in March 2002 and the consequent viability
of the underground mining operations planned for the high grade Bonanza area and
the Outer Basin, the decision to proceed with the next upgrade, the Aflease
230,000 tpm CIL upgrade, has been finalised. The board of directors and the
Aflease shareholders have approved this upgrade, implementation commenced in
July 2002 and commissioning is anticipated in the second quarter of 2003. The
upgrade is expected to more than double gold production to in excess of 120,000
oz per annum.
OUTLOOK
The successful implementation of the Aflease 230,000 tpm CIL expansion, and
further operational improvements and planned acquisitions, will steadily make
progress towards the goal of The Afrikander Lease Ltd to produce 200,000 oz of
gold at less than US$175.00/oz.
Date: 22/07/2002 03:55:11 PM Produced by the JSE SENS Department
