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Sub Nigel - Further Cautionary Announcement
SUB NIGEL GOLD MINING COMPANY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1984/006179/06)
Share code: SBN ISIN: ZAE000006391
("Sub Nigel" or "the company")
FURTHER CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the recent cautionary announcement, various SENS
announcements and press articles relating to the status of Sub-Nigel"s projects.
Attention is specifically drawn to the "Business Report" article of 14 April
2004 titled "JSE investigates Sub Nigel trades" and the board of directors of
Sub Nigel"s concern therewith.
At the request of the JSE, Sub Nigel wishes to clarify the following points:
- Development of both the "Spaarwater" and "Ventersburg" projects are
dependent on the outcomes of exploration, scoping and feasibility studies ("the
studies").
- Should bankable feasibility studies be forthcoming, the board of directors
of the company will evaluate the means of progressing the projects including the
raising of the necessary finance.
- Very early estimates, subject to the outcomes of the studies, are that:
- the "Spaarwater" project has an indicated resource of 3,5 million
ounces and that production could be anything between 30 000 and 50 000 tons per
month (and not between 30 000 and 100 000 tons as previously reported), with an
estimated recovery of between 30 000 and 50 000 ounces of gold per year (and not
between 30 000 and 100 000 ounces as previously reported);
- The "Ventersburg" project has an indicated and inferred resource of 8
million ounces of gold at a depth of between 250m and 1500m below the surface;
- The capital expenditure for the "Spaarwater" project is estimated at
approximately R 50 million (and not R35 million as previously reported). This
amount is dependent on outsourcing the metallurgical treatment or the
construction of a new recovery plant;
- The capital expenditure required for the "Ventersburg" project is
estimated at approximately R800 million (and not R 1 billion as previously
reported). This amount is dependent on outsourcing the metallurgical treatment
or the construction of a new recovery plant; and
- Goldfields Limited has an option to buy 51% of the project, by
contributing 51% of the capital expenditure required to launch the project and
paying 75% of exploration moneys spent by the company on the project, and a
joint venture could be entered into between both parties. Should the joint
venture go ahead Goldfields Limited will be appointed managers of the project.
- Finance will be investigated, when appropriate. One possible source of
finance is from offshore, and Toronto, Canada and London, UK have been
identified by the board. No decisions have been made in this regard.
- Sub Nigel is currently in informal discussions with a number of empowerment
groups with regards to the acquisition of a shareholding in the company.
Shareholders are advised to continue to exercise caution until further
announcements are made.
Cape Town
21 April 2004
Sponsor
SASFIN CORPORATE FINANCE
A Division of Sasfin Bank
Limited
Date: 21/04/2004 03:50:19 PM Produced by the JSE SENS Department
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