Sub Nigel - Press Release
SUB NIGEL GOLD MINING COMPANY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1984/006179/06)
Share code: SBN ISIN: ZAE ZAE000006391
(`Sub Nigel` or `the company`)
SUB NIGEL TO COMMENCE MINING OPERATIONS AT SPAARWATER AND TO UNDERTAKE A
BANKABLE FEASIBILITY STUDY
The Company wishes to announce that it will be commencing with small-scale
underground mining operations at its Spaarwater project. These mining operations
are the first stage of the Company`s long-term strategy of establishing a
480,000 ton per annum gold mining operation on the East Rand, South Africa.
Historically, the contiguous gold mines of Spaarwater and Sub Nigel recovered in
excess of 10 grams per ton, making them two of the richest mines in South
Africa.
The mining operation will commence after an initial R600,000 capital expenditure
programme has been completed on upgrading the surface and underground
infrastructure at the Sub Nigel No 1 shaft complex. Ore produced from the mining
operation will be toll treated until such time as the mine can commence
construction of its own processing facility. This first stage of mining is
expected to be cash positive.
The Company will as part of the mining operations contemplated, engage in a
detailed underground sampling programme at Spaarwater. The results of this
programme will be collated and will form part of a bankable feasibility study.
This is in keeping with the Company`s previous announcements that Metallurgical
Design Management (Proprietary) Limited had signed off on a scoping study report
on the project and the Company was advised to verify the grade and tonnage used
in the scoping study.
6 April 2005
Nigel
Sponsor
SASFIN CORPORATE FINANCE
A division of Sasfin Bank Limited
Date: 06/04/2005 02:58:02 PM
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