| Mon 14 Aug 2006, 17:34 | | Aflease Gold Ltd - Interim Results to June 30 |
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Aflease Gold Ltd - Interim Results to June 30, 2006
Aflease Gold Ltd
(Formerly The Afrikander Lease Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1921/006955/06)
Share code: AFL & ISIN: ZAE000061461
("Aflease" or "the Company"))
(Text of Aflease Gold News Release - for Distribution in SA ONLY)
News Release
August 14, 2006
Aflease Gold Ltd. announces Interim Results to June 30, 2006
Johannesburg, South Africa - Aflease Gold Ltd. today announced its
unaudited interim results for the 12 months ended June 30, 2006. The
interim results are for the 12 month period due to a financial year end
change to December 31.
For the 12 months ended June 30, 2006, Aflease Gold reported a net loss of
ZAR9.3 million, or 2.41 cents per share, compared with a loss of ZAR1.2
million, or 0.36 cents a share, in the 12 months to June 30, 2005. The
increased loss results from the company moving into an aggressive
exploration and development phase with primary focus on the Modder East
feasibility study and more recently the bulk earthworks and construction of
the Modder East portal.
During the 12 months ended June 30, 2006, Aflease Gold incurred general and
administrative expenditures of ZAR4.2 million, compared with ZAR694
thousand in the 12 months to June 30, 2005, and exploration and associated
costs of ZAR5.1 million, compared with ZAR13 thousand in the prior period.
The financial statements of Aflease Gold reflect the nature of the company
as a mining development enterprise, and are expected to continue to reflect
this status while the Modder East Gold Project is under construction. The
increase in expenditure over the period related mainly to costs associated
with completing the Modder East feasibility study, exploration on the East
Rand assets and the sourcing of additional managerial and technical
capacity in order to develop Modder East and deliver on exploration
projects.
Subsequent to the reorganisation of Aflease Gold in January 2006, the
company raised approximately ZAR36.1 million through the issuance of
Aflease Gold shares, resulting in sxr Uranium One"s equity interest
decreasing by approximately 5% to approximately 75% as at June 30, 2006.
Said Neal Froneman, CEO of Aflease Gold and Uranium One:
"Aflease Gold has been very active since its formation in January 2006.
The company continues to make excellent progress on the initial phase of
construction at its Modder East Gold Project and is scheduled to announce
the results of the audited feasibility study for this project later this
week. In line with the company"s aggressive growth strategy, exploration
has begun at Sub Nigel (Spaarwater) and Etendeka in Namibia."
Grant of Additional Prospecting Rights
In addition to the old order mining right at Modder East, four prospecting
rights for an extensive area in the East Rand Basin have been granted.
* The Holfontein prospecting right
* The Turnbridge prospecting right
* The Sub Nigel area"s 4 and 5 prospecting right (Spaarwater)
* The Sub Nigel area 6 prospecting right
In total the four prospecting rights secure Aflease Gold an area of
approximately 10 000 hectares in the East Rand to undertake prospecting
activities over the next 5 years. In addition to the prospecting rights in
South Africa, Aflease Gold also has an exclusive prospecting licence for 65
000 hectares in Namibia.
About Aflease Gold
Aflease Gold Limited was reorganised on January 23, 2006 through the
reverse takeover of Sub Nigel Gold Mining Company Ltd. by New Kleinfontein
Mining Company Ltd. a wholly owned subsidiary of Aflease Gold and Uranium
Resources Ltd. The company is listed on the Johannesburg Stock Exchange
and is owned as to approximately 75% by sxr Uranium One Inc.
For further information please contact:
Neal Froneman Jean Nortier
Chief Executive Officer, Aflease Gold Chief Financial Officer,
Tel: + 27 11 482 3605 Aflease Gold
Tel: +27 11 482 3605
Forward-looking statements: Certain of the statements made herein,
including any information as to the Corporation"s future financial or
operating performance, may be forward-looking and subject to important risk
factors and uncertainties, many of which are beyond the Corporation"s
ability to control or predict. Forward-looking statements are necessarily
based on a number of estimates and assumptions that are inherently subject
to significant business, economic and competitive uncertainties and
contingencies. Known and unknown factors could cause actual results to
differ materially from those projected in the forward-looking statements.
Such factors include, among others: gold price volatility; impact of any
hedging activities, including margin limits and margin calls; discrepancies
between actual and estimated production, between actual and estimated
reserves and resources and between actual and estimated metallurgical
recoveries; changes in national and local government legislation, taxation,
controls, regulations and political or economic developments in South
Africa or other countries in which the Corporation does or may carry on
business in the future; risks of sovereign investment; the speculative
nature of gold exploration and development, including the risks of
obtaining necessary licenses and permits; dilution; competition; loss of
key employees; additional funding requirements; and defective title to
mineral claims or property. In addition, there are risks and hazards
associated with the business of gold exploration, development and mining,
including, among others, environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding and gold
bullion losses (and the risk of inadequate insurance or inability to obtain
insurance, to cover these risks). Accordingly, readers should not place
undue reliance on forward-looking statements. The Corporation undertakes no
obligation to update publicly or release any revisions to forward-looking
statements to reflect events or circumstances after the date of this
document or to reflect the occurrence of unanticipated events. Investors
are advised to refer to competent persons reports on the Corporation"s
material properties for detailed information with respect to such
properties, which information is subject to the qualifications and notes
set forth therein.
Date: 14/08/2006 05:34:03 PM Produced by the JSE SENS Department
