| Tue 24 Jan 2006, 7:43 | | Simmer & Jack Mines Limited - Resources And Reserv |
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Simmer & Jack Mines Limited - Resources And Reserves Summary
SIMMER & JACK MINES LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 1924/007778/06)
SHARE CODE: SIM ISIN: ZAE000006722
("SIMMERS" OR "THE COMPANY")
PRESS RELEASE: SUBSTANTIAL NEW SURFACE URANIUM AND GOLD
RESOURCE CONFIRMED AT SIMMERS" BUFFELSFONTEIN OPS
First Uranium (Pty) Ltd, a subsidiary of Simmer & Jack
Mines, Limited (Simmers), has completed an audited and
SAMREC compliant mineral resource estimate for all surface
tailings dams at Simmers" Buffelsfontein operations.
The extensive drilling and sampling campaign was amongst the
first steps in a feasibility study to determine whether or
not a uranium extraction project at Buffelsfontein was
economically viable. "All indications are that it is highly
workable," said Simmers" CEO, Gordon Miller, commenting on
the results.
According to the Resource Statement, the tailings dams,
using a zero grade cut-off, are estimated to contain
measured and indicated uranium mineral resources of 43.6
million pounds of U308 grading at 0.15 pounds per metric
tonne and 2.8 million ounces of gold grading at 0.3 g/t. The
resources are contained in 283 million tonnes of relatively
homogenous tailings dams and metallurgical test work is
currently underway to determine the most cost-effective
extraction methods. Results from early metallurgical test
work confirm that the project"s viability rests with
inherent metallurgical characteristics which allow for high
volume and low cost concentration of the in situ deposit,
which results in significantly reduced volumes and much
concentrated product reporting to the processing facilities.
"At current metal prices potentially 200 million tonnes of
the measured and indicated resource appears to be economic
on gold alone," said Miller.
Based purely on the surface re-treatment opportunity, the
initial results indicate a 15-year project life, with the
potential to extract 12 million pounds of uranium and 1.3
million ounces of gold. The underground mine will also be
sending uranium to the mill and the potential to recover
this by-product metal will be assessed when the underground
mine completes its Mineral Reserve statements at the end of
the first quarter of 2006.
The next important step for the feasibility study is to
complete the metallurgical test work that will be conducted
over the next few months in order to arrive at a definitive
process design for co-extraction of gold and uranium. "We
are also currently studying an `accelerated soft start"
option whereby the existing 250 000 tonne per month float
plant at Buffelsfontein would be re-commissioned to process
material recovered from hydraulic mining of adjacent
tailings dams, which could generate positive cash flow in
the near term," said Miller.
First Uranium (Pty) Ltd was established in November 2005 to
investigate the viability of uranium deposits at
Hartebeesfontein and Buffelsfontein mines (collectively
known as Buffelsfontein) and is 70% owned by Simmers and 30%
owned by a private Canadian entity, First Uranium
Corporation. Both mines were historically significant
producers of uranium.
"The project is fully funded by First Uranium Corporation,
which has raised US$ 3 million in private equity to fund the
bankable feasibility study. Should the feasibility study
prove to be viable, First Uranium Corp is obliged to inject
a further US$ 25 million in equity to fund the construction
of the extraction plants. The provision of this funding will
result in their ownership increasing to 49% of the project,"
said Miller.
Miller added that more good news coming out of
Buffelsfontein was that a successful uranium operation would
eliminate the rehabilitation liability of the slimes dams
since Simmers would be reprocessing and removing pollutants
such as pyrite. "By removing the minerals, we will not only
be adding value to shareholders but actually off-setting an
environmental liability incurred by out-dated design
processes. The end result will be a much more benign
tailings dam in line with global best practice," said
Miller.
The CEO also confirmed that Simmers had begun assessing the
viability of re-opening the Middle Elsburg uranium mine at
its Ezulwini project on the West Rand, where Simmers"
application for a mining right is being processed by the
Department of Minerals and Energy.
The Middle Elsburg section is a separate uranium operation,
which was discontinued when Uranium prices collapsed below
US$10/lb during the late 1990"s. "Initial investigations
have indicated that the mine is accessible and that it is
worth pursuing a full-blown feasibility study which we hope
to have completed by September this year," said Miller.
He added that historic results published by Western Areas
Gold Mining Company Ltd, which operated the uranium mine,
and the since demolished uranium plant, indicated metal co-
recoveries of 0.47kg/t for U308 and 4.5 to 5.0 g/t for gold
when uranium mining was discontinued.
Issued by Simmer & Jack Mines, Limited
24 January 2006
Sponsor:
Sasfin Capital
(A division of Sasfin Bank Limited)
Resource & Reserve summary for Simmer & Jack Mines, Limited
as at 18 January 2006
Buffelsfontein Gold Mine
Buffels 2005 Resource statement 2004
Resource
GOLD
Underground Block Gold Gold Gold Gold
Tons
Mt g/t (000oz) (t) (000oz)
Measured 22.70 10.32 7533 234.3 7458
Indicated 13.45 8.71 3764 117.1 3750
Total M&I 36.15 9.72 11297 351.4 11207
Inferred 11.40 8.45 3095 96.3 436
GOLD
Surface Tons Gold Gold Gold Gold
Mt g/t (000oz) (t) (000oz)
Measured 115.10 0.31 1144 35.59 56
Indicated 167.70 0.31 1658 51.55 469
Total M&I 282.80 0.31 2802 87.14 524
Buffels 2005 Resource statement 2004
Resource
Uranium
Underground Block U3O8 U3O8 U3O8 U3O8
Tons
Mt kg/t tons Mlb Mlb
Measured 18.09 0.207 3748 8.26 -
Indicated 12.13 0.185 2242 4.94 -
Total M&I 30.22 0.198 5990 13.21 -
Inferred - - - - 0
Uranium
Surface Tons U3O8 U3O8 U3O8 U3O8
Mt kg/t tons Mlb Mlb
Measured 107.20 0.083 8849 19.51 -
Indicated 173.80 0.061 10540 23.24 -
Total M&I 281.00 0.069 19389 42.75 -
Reserve Statement June 2004
Underground Tons Gold Gold Gold
Mt g/t (000oz) (t)
Proved 13.92 7.47 3346 104.06
Probable 7.78 6.75 1689 52.55
Total 21.71 7.22 5035 156.61
Reserve
Notes:
* This 2005 Resource Statement has been audited by
independent advisors Minxcon Pty Limited , and is SAMREC and
Canadian Instrument 43-101compliant.
* 2004 data is extracted from the Mineral Resource Statement
issued by DRDGold and is included for comparison purposes
* Underground Resource:
* Cut-off grade of the resource: 2g/t
* SG (specific gravity): 2.76
* Stoping width: South Division 130cm, North Division
120cm
* The effective date is January 2006;
* Mineral resources consultants, Geologix, employed a
method which entails the digitization of the ore blocks
on site in Datamine format to a scale of 1: 1000.. This
programme computes the Block grades and reef widths by
means of Kriging and compiles the Block plan;
* Mining method is a mix of breast stoping and cave mining
* Minxcom reviewed the mineral rights and mining
authorisation. To their knowledge there is no indication
that the resource may be materially affected by legal
issues.
* Surface Resource
* Mineral resources are inclusive of the reserve figures;
* The unit of measure is metric tons
* `Measured" is less than 10% error at the 90% confidence
limit and statistics support central limit theory
application.
* `Indicated" is between 10% and 20% error at the 90%
confidence limit and statistics support central limit
theory application.
* Resource at Zero Cut-off
* Reserve
* The Mineral Reserves figures are fully diluted delivered
tonnages and grades to the plants.
* Mineral Reserves were calculated using a total working
cost pay-limit, the previous three year"s mining
efficiencies and the life of mine plan.
* The working cost pay-limit were calculated per
individual shaft or costing area using area costing
figures, and then combined to formulate the total pay-
limit.
* The official Mineral Reserves for June 2004 were quoted
at US$400 per ounce at an exchange rate of ZAR/USD7.00
or R90,023 per kilogram.
* Input parameters used in the calculations of the Mineral
Reserve Statements for June 2004 are as follows:
2# 5# 6# 7# 8#
Paylimit g/t 12.4 9.85 6.82 9.17 7.84
Au
Marginal 5.21 4.83 3.28 4.4 3.27
Paylimit g/t
Au
Dilution 23.09% 23.09% 23.09% 23.09% 23.09%
MCF 81.50% 81.50% 81.50% 81.50% 81.50%
Mix 70:30 70:30 70:30 70:30 70:30
Competent persons for Buffels Resource statement:
Minxcon is an independent advisory company whose consultants
have had extensive experience in preparing technical and
economic advisors" and valuation reports for mining and
exploration companies around South Africa. Neither Minxcon
nor its staff have any interest capable of affecting its
ability to give a fair opinion, and will not receive any
pecuniary or other benefits in connection with this
assignment, other than standard consulting fees. Despite
several requests to the previous owners, Minxcon could not
get permission to view the audit reports done by RSG in 2003
and SRK in 2004 and could therefore not verify what has been
done prior to the Minxcon audit.
The authors of this report are members in good standing of
appropriate professional institutions. The following persons
made contributions to this report.
The following persons are qualified persons, as defined in
Samrec and NI 43-101*, and responsible for the preparation
of the report:
Johan Odendaal (Director Minxcon): B.Sc. (Geol), B.Sc. Hons
(Min.Econ.), M.Sc. (Min. Eng.), Pr. Sci. Nat., FSAIMM,
MGSSA, MAusIMM)*.
Daan v Heerden (Director Minxcon): B.Sc. (Min.Eng.), M.Comm.
(Bus. Admin.), ECSA, MSAIMM, AMMSA*.
Geology - Francois Martens (Associate Minxcon): B Sc. Hons.
M Sc. (Geol), Pr. Sci. Nat, MGSSA*.
Geostatistics - Carina Lemmer: PhD (Stanford), Consultant,
Geological & Geostatistical Services
The qualified person at mine level:
Jan Johannes Jacobus Petrus Pretorius, a qualified surveyor
with 32 years experience and registered with SAIMM* oversees
Buffelsfontein"s Resource and Reserve Statements.
Independent Consultants:
Underground Resource:
Simmers personnel, along with Geologix (Mineral Resource
Consultants), completed the resource Block models and
resources with input and discussion from Minxcon. Koos
Pienaar completed the work on behalf of Geologix. He has an
M.Sc Geology degree and is registered with SACNASP.*
Slimes Dams Resource:
The Resource was completed by Jim Fisher of Jim Fisher and
Associates. He has a BSc (Mineral Technology), an MBA and is
a Fellow and registered as a Chartered Engineer with the
Institute of Materials, Minerals and Mining, a member and
past president of the Mine Metallurgical Managers
Association of South Africa. He has 28 years experience in
the mining Industry, including 14 years in metallurgical and
general management in South African Gold mines*. Since
writing the report Jim Fisher has been employed by Simmer &
Jack Mines, Limited.
TGME
TGME 2005 Resource Statement
GOLD
Underground Tons Gold Gold Gold
Mt g/t (000oz) (tonnes)
Measured 2.37 12.55 957 29.80
Indicated 2.98 13.41 1282 39.90
Total M&I 5.35 13.03 2239 69.70
GOLD
Surface Tons Gold Gold Gold
Mt g/t (000oz) (tonnes)
Measured 3.64 0.85 99 3.10
Indicated - - - -
Total M&I 3.64 0.85 99 3.10
TGME 2004 Resource Statement
GOLD
Underground Tons Gold Gold Gold
Mt g/t (000oz) (tonnes)
Measured 2.98 10.46 1004 31.20
Indicated 5.38 9.06 1567 48.70
Total M&I 8.36 9.56 2571 79.90
GOLD
Surface Tons Gold Gold Gold
Mt g/t (000oz) (tonnes)
Measured 4.15 1.18 156 4.90
Indicated - - - -
Total M&I 4.15 1.18 156 4.90
Mineral Reserves - Proven
Tons Grade Content
(kt) (g/t) (kg) (oz)
Dukes Hill 255.1 4.98 1271.3 40874
Frankfort 130.2 3.75 488.2 15697
Beta 391.0 5.85 2287.6 73547
Total 776.3 5.21 4047.1 130118
Mineral Reserves - Probable
Tons Grade Content
(kt) (g/t) (kg) (oz)
Dukes Hill 146.0 2.85 415.3 13354
Frankfort 306.8 5.38 1651.0 53080
Beta 896.4 7.12 6379.0 205090
Total 1349.2 6.26 8445.3 271524
Mineral Reserves - Proven and Probable
Tons Grade Content
(kt) (g/t) (kg) (oz)
Dukes Hill 401.1 4.2 1686.6 54228
Frankfort 437.0 4.9 2139.2 68777
Beta 1287.4 6.7 8666.6 278637
Total 2125.5 5.9 12492.4 401642
Notes
* The following mineral resource table was compiled in terms
of the SAMREC code and has been reviewed by a competent
person and independent consultant, Professor RCA Minnitt,
Pr.Sci.Nat. (400380/83), FGSSA, FSAIMM, who has over 30
years experience in archaean greenstone belt geology and
mineralisation.
* For the conversion of mineral resources to mineral
reserves, applicable mining factors have been applied and
from the resource tables above, as compiled by RCA Minnitt,
the mineral reserves for Dukes Hill (including Clewer and
Morgenzon sections), Frankfort and Beta, and confirmed by Mr
R G Koelmans, Pr. Eng, from Read, Swatman & Voigt (Pty) Ltd.
Ezulwini
Ezulwini 2001 Resource statement
GOLD
Underground Tonnes Gold Gold Gold
Mt g/t (000oz) (tonnes)
Measured 4.90 6.30 992 30.85
Indicated 14.20 6.69 3054 94.99
Total M&I 19.10 6.59 4046 125.84
Inferred 194.70 3.20 20030 623.00
GOLD
Main Shaft Tonnes Gold Gold Gold
Pillar
Mt g/t (000oz) (tonnes)
Total M&I 12.50 6.03 2425 75.43
Ezulwini 2001 Reserve statement
GOLD
Underground Tonnes Gold Gold Gold
Mt g/t (000oz) (tonnes)
Proven 1.7 8.7 473 14.71
Probable 2.7 9.7 855 26.59
Total 4.4 9.3 1328 41.31
Reserve
Notes
* This statement was derived from the disclosed Mineral
Resources and Mineral Reserves obtained from the Harmony
Gold Mining Limited Annual Resource Statement (2001) and
from the Harmony Gold Mining Company Annual report (2001).
Mineral Resources and Mineral Reserves contained within the
shaft pillars were not included within this statement.
* Because the vast majority of the Mineral Resources are in
the inferred category, Simmer & Jack Mines, Limited
(Simmers) is mindful of the potential for the future but has
currently not afforded any demonstrated economic viability
to these Mineral Resources.
* Insofar as the 2001 Mineral Resource Statement and the
shaft pillar Mineral Resource Statement are concerned, a cut-
off grade of zero grams per tonne (0 g/t) has been applied.
* With regards to the 2001 Proven and Probable Mineral
Reserve Statement, a cut-off grade of 2.5 g/t was applied.
* Simmers is currently conducting a review of the Mineral
Resources contained in the main Shaft pillar only. This
review has the objective of converting 2.4 million ounces of
measured and indicated Mineral Resources to 1.5 million
ounces of proven and probable Mineral Reserves by April
2006.
* Gold occurrences of the Elsburg Formation at Ezulwini
Shaft comprise pillar areas (left when production ceased in
mid 2001), large shaft protection pillars at both the main
and sub-shafts and un-mined virgin areas. The Elsburg
formation is sub-divided into the Waterpan and Modderfontein
Members of which the set of reefs termed the Elsburg
Individuals and the `Massives" are the target areas. The
Elsburg Individuals comprise sub-Zones EA, EB, EC, and ED
from footwall to hanging wall with the sub-zones identified
within the Massives as MA, MI and MB. The shaft pillars were
historically never included in the mine"s Mineral Resource
Statement.
* The main shaft pillar Mineral Resource Statement quoted
was obtained from a recent technical report (April 2005) by
David Grant of Applied Geological Services under the
auspices and supervision of Read, Swatman and Voight (Pty)
Limited, a professional engineering enterprise in South
Africa. Historic data was gathered from the Western Areas
Gold Mining Company Prospectus and Annual Reports published
between 1959 and 1964; published geological papers and an
electronic model created in Datamine. The annual reports
provide details of the VCR and Elsburg reefs intersected in
the twin shaft system and exploration boreholes as well as
mine development in, and immediately adjacent to, the shaft
pillar. This information was published for the benefit of
shareholders and consists of averaged sample results. Whilst
the electronic model provides some insight into the
distribution of grade and channel widths, its data were
unverified. Consequently the existing modeling remains to be
verified as acceptable and compliant with the SAMREC code.
The database has been verified by Geologix MRC Pty Ltd using
verification routines within Sable. However the validity of
drilling, capturing and processing of raw data has not been
addressed.
* Horizon Blue (Pty) Limited is currently re-evaluating the
data for the total mining area to enable it to Submit a NI
43-101 compliant statement initially for the shaft pillar
only.
* At this stage none of the Mineral Resource contained
within the shaft pillar has yet been converted into the
Mineral Reserve category. In estimating the Mineral Resource
within the pillar, it is assumed that the mineralisation is
continuous. This assumption is based on previous and
extensive peripheral mining immediately adjacent to the
shaft pillar, which has demonstrated that individual reef
horizons within the overall package are continuous over
distances, which are far in excess of the dimensions of the
pillar. This is substantiated by the detailed analysis of
the channel sampling of the two shaft intersections within
the center region of the pillar.
* The Mineral Resource tonnage was calculated using the
physical dimensions of the mineralisation within the pillar
being horizontally 550m by 450m with a true of width 34.5 m.
The average density of the in-situ rock has been determined
to be 2.75 tonnes per cubic metre. Grades for the six
individual reef horizons comprising the pillar were
estimated by interpolating within the above block model
using Kriging statistics and blocked on a grid of 60m by
60m. As a result of this estimation process, all uneconomic
material within the pillar is dilutionary.
* The sub-shaft pillar and extensive water barrier pillars
have, as yet, not been investigated and are not included in
the Mineral Resource tabulation. Since mining has not taken
place since 2001, Mineral Resources and Mineral Reserves are
now disclosed as being in the inferred category, as no
economic viability has recently been determined.
Ends
For further information, please contact Ruben Els on +2783
302 6602
rubenels@worldonline.co.za
www.simmers.co.za
Date: 24/01/2006 07:43:57 AM Produced by the JSE SENS Department
