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AFLEASE SEPTEMBER 2003 UPDATE
THE AFRIKANDER LEASE LIMITED
(Incorporated in the Republic of South Africa)
AFL (JSE) AFKDY (NASDAQ)
(Registration Number 1921/006955/06)
Share Code: AFL
ISIN: ZAE000000253
("Aflease")
Operations
AFL is pleased to advise that it has made significant progress towards achieving
its stated objective of tripling annualized gold production by December 2003
with annualized gold production for August and September 2003 having more than
doubled from the 35 000 oz"s produced in 2002.
190kg of gold was produced during August 2003 which translates to an annualized
gold production of 74 000 oz"s. August"s gold production was achieved on a
throughput of 226 000 tons processed through the new CIL plant. This exceeds
management"s target of 200 000 tonnes per month, that was to be achieved by the
end of the September quarter.
The loss for the September quarter is expected to be slightly lower than the
loss for the June quarter. This is despite the improvement in operational
efficiencies. Lower rand gold price and lower than expected recovered grades
impacted negatively on Aflease"s profitability during the September quarter.
Exploration
Exploration during the quarter has produced positive results at both Bonanza and
Modder East. (All grades stated below are in situ grades at a stope width of
100cm):
Bonanza South
The Bonanza South block is situated to the south of the Bonanza West mine.
Drilling results for the Bonanza South Project were positive and a preliminary
mine design is being developed, together with a mining schedule which should see
production commence in late 2004. Geological modeling for the various reef
horizons suggest a resource of over 250,000 tonnes on the Lower reef at an
average in situ grade of 8.2g/t, with the Upper reef contributing an additional
200,000 tonnes at an average in situ grade of 2.17g/t. The depth to reef ranges
from 70 meters to 100 meters, and initial access will be via the existing
decline at the Bonanza West mine.
Bonanza South Central
The South Central block is situated to the south of the Bonanza South block.
Drilling is ongoing and a number of holes still need to be drilled to add
confidence with regard to both the structure and the grade. Initial indications
are promising with a resource of approximately 550,000 tonnes identified on the
Bonanza Lower Reef, with a further 450,000 tonne contribution from the
Intermediate and Upper Reef horizons. An average in situ grade of approximately
8 g/t has been determined for the Lower Reef, at depths ranging from 80m to
230m. In situ grades in the Intermediate and Upper Reefs have been estimated at
2g/t and 3.5g/t respectively. Geological modeling for this resource will be
conducted during the next quarter.
Modder East and UC Prospecting
During the September quarter, exploration drilling continued at Modder East and
the UC Prospect area. Recent drilling has confirmed the geological model
proposed for the deposit, and has also provided new evidence of the potential
extension of the deposit towards the East. As a result of the drilling, the
measured and indicated resource has been upgraded to over 900,000 oz at 6.92g/t.
Drilling through the underlying Kimberley horizons has indicated that the UK3,
UK5, UK7 and UK9A bands hold good potential for adding to the resource base at
Modder East and UC Prospect area.
Drilling in the North West portion of the property failed to add to the Black
reef (BPLZ) resource but assisted in narrowing the target zone for the
anticipated Black reef channel resource.
Sufficient information has been gained from the ongoing exploration program to
allow for the commencement of the mine design and the initiation of mine
construction. A successful conceptual study of the Modder East mine has been
completed, and as such Aflease is proceeding to detailed mine design in order to
commence site establishment in the first quarter of 2004. Exploration will
continue to explore the Kimberley reef horizon and to extend our knowledge of
the Black Reef.
ADR L2 Upgrade
In line with US legal requirements, significant progress has been made on
enhancements to the company"s governance and operational systems. As such
Aflease is now in a position to progress the process of submission for the
upgrade.
Date: 29/09/2003 04:32:04 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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