| Tue 7 Feb 2006, 8:07 | | Aflease Gold announces an increase in reserves and |
|
AFO
AFO
Aflease Gold announces an increase in reserves and resources at Modder East
Aflease Gold Limited
(Formerly Sub Nigel Gold Mining Company Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1984/006179/06)
Share Code: AFO ISIN Code: ZAE000075867
For immediate release: 7th February 2006
Aflease Gold announces an increase in reserves and resources at Modder East
Aflease Gold today announced a 28% increase in the Modder East reserve base, as
a result of the bankable feasibility study drilling programme.
The 2005 drilling programme has provided further confidence in the quality and
quantity of the ore body, and will underpin the bankable feasibility study.
Said Aflease Gold CEO Neal Froneman:
"Even without the recent surge in the gold price, we have one of the most
exciting ore bodies in the South African gold mining industry.
"As we had expected, the drilling results have expanded the areas where we can
profitably mine gold, giving us new data on both the quantity and quality of the
deposit.
"In addition, we now have a better idea of the areas of focus for the next phase
of our exploratory drilling program, which will continue in 2006, as we commence
development operations at Modder East."
Modder East Project - Gold Reserves Summary (December 2005)1
Probable Mineral Reserves
Mining Type Tonnes Gold Grade Contained Gold
(thousands) (g/t) (k/oz)
BPLZ Mining 6,310 4.83 979
(including
Blanket
Facies)
Channel Facies 2,466 1.92 152
Mining
UK9A (Kimberly 1,289 4.10 170
Reef) Mining
Total Probable 10,065 4.02 1,301
1 Mineral reserve estimated by Turgis Consulting (PTY) LTD, Mining &
Engineering. Mineral Reserves are reported in accordance with SAMREC, and have
been audited by Steffen, Robertson & Kirsten (SRK) Consulting. Mineral Reserves
have demonstrated economic viability.
Modder East Project - Gold Resources Summary (December 2005)1
Indicated Mineral Resources
Reef Unit Tonnes Gold Grade Contained Gold
(thousands) (g/t) (k/oz)
BPLZ+BF2 5,720 6.07 1,120
Channel+BF3 15,200 1.32 650
UK9A4 1,350 5.47 240
UK5A5
Total 22,270 2.79 2,010
Indicated
Inferred Mineral Resource
Reef Unit Tonnes Gold Grade Contained Gold
(thousands) (g/tonne) (k/oz)
BPLZ+BF2 470 3.31 50
Channel+BF3
UK9A4 2,500 5.00 400
UK5A5 9,700 1.82 570
Total Inferred 12,670 2.50 1,020
1 Mineral resource estimated by Mr. Charles Muller, B.Sc.(Hons), Pr.Sci.Nat., of
Global Geo Services (Pty) Ltd. Mineral Resources are reported in accordance with
SAMREC, and have been audited by SRK Consulting. Mineral resources are not
Mineral Reserves and do not have demonstrated economic viability.
2 Reported to a cut-off of 167 cmg/t (1.67 g/t) gold.
3 Reported to a cut-off of 379 cmg/t (1.00 g/t) gold.
4 Reported to a cut-off of 199 cmg/t (1.99 g/t) gold.
5 Reported to a cut-off of 496 cmg/t (1.99 g/t) gold.
The increase in mineral reserves of 28% from 1.020 million ounces to 1.301
million ounces is due to an increase of 4% on the BPLZ and 20% in the Channel
Facies of the Black Reef. In addition, 0.170 million ounces of the UK9A have
been converted to reserves.
The Indicated Mineral Resource increased by 21% to 2.010 million ounces from
1.664 million ounces in the 2004 declaration. The increase is due to an increase
in the BPLZ from 1.080 million ounces to 1.120 million ounces. The Channel and
Blanket Facies have increased by 11% from 0.584 million ounces to 0.650 million
ounces. As expected an additional 0.240 million ounces of UK9A has been added to
the indicated category.
The BPLZ contributed an additional 50 000 ounces to the inferred category while
the reclassification of the UK9A to the indicated category was the primary
reason for the 50% reduction of UK9A in the inferred category. In addition,
0.570 million ounces has been delineated on the UK5As.
The 2005 drilling program has been to clearly delineate the BPLZ target zone of
the black reef and to gauge the potential of the Kimberly reefs, which evidently
exist in economic proportions.
Mr. Froneman said, "I am very pleased that we have been able to delineate this
BPLZ ore body in sufficient volume and grade to convince our Board of Directors
that development of Modder East can commence in the near future. I am equally
pleased with the other Kimberly reef results and we will be focusing on the
UK9A, UK5 and UK3 reefs in 2006."
For further information please contact Neal Froneman: 011 482 3605
John Fraser 082 331 7330
Date: 07/02/2006 08:07:19 AM Produced by the JSE SENS Department
