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SUB NIGEL - SUCCESSFUL COMPLETION OF SCOPING STUDIES AND WITHDRAWAL OF
CAUTIONARY ANNOUNCEMENTS
Sub Nigel Gold Mining Company Limited
(Incorporated in the Republic of South Africa)
(Registration number 1984/006179/06)
JSE Share code: SBN
ISIN: ZAE000006391
(`Sub Nigel` or `the company`)
SUCCESSFUL COMPLETION OF SCOPING STUDIES AND WITHDRAWAL OF CAUTIONARY
ANNOUNCEMENTS
1. Shareholders are referred to the cautionary announcement dated 8 April 2004
relating to the company completing a scoping study on both its Ventersburg
and Spaarwater projects and are advised that the board of directors of Sub
Nigel has completed these studies.
2. The Sub Nigel board is pleased to announce that the scoping studies for
both the Spaarwater project on the East Rand, South Africa and the
Ventersburg project in the Free State, South Africa have now been finalised
and signed off by Metallurgical Design Management (Proprietary) Limited
(`MDM`).
3. The scoping study for the Spaarwater project indicates that at the current
gold price, the project is robust, and the recommendations put forward by
MDM to the Sub Nigel board are as follows:
3.1 The company should commence with a 3-month pre Bankable Feasibility
Study (pre-BFS) on the project to verify the grade and tonnage used in
the scoping study as well as to verify the state of the underground
conditions.
3.2 The project should ultimately be developed as a 40,000 ton per month
operation, from two existing shafts on the property and should include
the construction of a 40,000-ton per month carbon in leach (`CIL`)
processing facility to treat this ore.
4. The project is currently estimated to cost R126 million, which includes R70
million for a CIL processing facility. The company previously reported that
it expected the project to cost R 50 million, however, this assumed that
the company would toll treat its ore at a suitable processing facility in
the region.
5. The company has completed its first phase of drilling on the northern most
area of the Spaarwater property. 1 primary intersection and 4 deflections
intersected a mineralised Nigel reef at an approximate depth of 453 metres.
The grades ranged from 1.4 g/t to 3.8 g/t over an average thickness of 0.89
metres and illustrated the potential for significant pay shoot development.
The recommendation by the consultants is for a secondary drilling programme
over the area at close spacing to be completed.
6. The scoping study for the Ventersburg project indicates that at the current
gold price, the project is robust, and the recommendations put forward by
MDM to the Sub Nigel board are as follows:
6.1 The company should continue with a drilling programme on the project
area to confirm the historical drilling results in the area, to
increase the resource base to the North and South of the current
project area and thirdly to do in-fill drilling on the project area.
The company recently announced that it had begun drilling on the
Ventersburg project area to confirm an extension of the resource.
6.2 The project should be developed as a 90,000 ton per month operation
and include the construction of a 90,000 ton per month CIL processing
facility to treat this ore
The project is estimated to cost R241 million. The company previously
reported that it expected the project to cost R800 million to
complete, but this assumed a 200,000-ton per month mining operation.
7. Shareholders are therefore no longer required to exercise caution when
dealing in their Sub Nigel shares in this regard.
8. Shareholders are further referred to the cautionary announcement dated 4
May 2004 and are advised that the negotiations referred to therein have
been terminated.
Johannesburg
28 June 2004
Sponsor
Sasfin Corporate Finance
A division of Sasfin Bank Limited
Date: 28/06/2004 08:19:07 AM
Produced by the JSE SENS Department
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