| Thu 7 Sep 2006, 16:04 | | Simmer And Jack Mines Limited - Phase 1 Feasibilit |
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SIM
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Simmer And Jack Mines Limited - Phase 1 Feasibility Study Confirms Substantial
Uranium Resource At Ezulwini
SIMMER AND JACK MINES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
ISIN: ZAE000006722
("Simmers" or "the company")
JSE Share code: SIM
PHASE 1 FEASIBILITY STUDY CONFIRMS SUBSTANTIAL URANIUM RESOURCE AT EZULWINI
Ezulwini Mining Company (Pty) Limited, ("Ezulwini"), a 90% held subsidiary of
Simmer & Jack Mines, Limited ("Simmers"), has completed an independent Mineral
Resource statement for its Ezulwini project, following the completion of phase
one of a bankable feasibility study. The statement utilizes the measured,
indicated and inferred categories in accordance with the SAMREC code and is
Canadian National Instrument 43-101 compliant.
Formerly known as Randfontein Four Shaft, Ezulwini is approximately 40
kilometres south-west of Johannesburg. The ore body is concentrated in the Upper
and Middle Elsburg Reefs and contains both gold and uranium deposits which are
to be mined either separately or as co-products of each other. According to the
first phase of the study, the project is financially viable and technically
possible, putting the life of mine at approximately twenty years. Gold reserves
are expected to offset significantly the extraction costs of the uranium
deposits. Historically, uranium was mined from the Middle Elsburg section of the
mine but the plant was decommissioned in the late 1990s following the collapse
of the uranium price.
According to the Resource Statement, the project has measured and indicated gold
resources of 3.1 million ounces at 4.0 grams per metric tonne and uranium
resources of 6.8 million pounds at 1.77 pounds per tonne or 0.81 kg/t.
The measured and indicated Upper Elsburg resource is contained in the main shaft
pillar with the inferred resource from the balance of the property. The Upper
Elsburg ore body contains economic values of gold while the Middle Elsburg body
contains economic values of both gold and uranium.
"The technical work conducted during the compilation of the resource statement
confirms that gold and uranium mining at Ezulwini is economically viable and
puts us one step closer to our goal of on-reef development in the uranium
section of the mine by early 2008," commented Gordon Miller, CEO of Simmers.
"We have put all systems in place to fast-track the completion of the
feasibility process which is not that complicated given that the study will
focus on the requirements of starting up and expanding a mine that was
mothballed in the 1990"s. This brings us even closer towards fulfilling our
shareholders" expectations and creating value from the Ezulwini project."
Ezulwini Resource statement August 2006
GOLD
Upper Elsburg Tonnes Gold Gold Gold
Mt g/t (000oz) (t)
Measured 7.04 4.13 935 29.08
Indicated 8.33 4.36 1,169 36.35
Total M&I 15.38 4.25 2,104 65.43
Inferred 64.55 5.81 12,055 374.96
GOLD
Middle Elsburg Tonnes Gold Gold Gold
Mt g/t (000oz) (t)
Measured 3.64 4.43 518 16.11
Indicated 4.99 2.95 473 14.71
Total M&I 8.63 3.57 991 30.82
Inferred 132.11 4.65 19,742 614.05
GOLD
Total Tonnes Gold Gold Gold
Mt g/t (000oz) (t)
Measured 10.68 4.23 1,453 45.19
Indicated 13.32 3.83 1,642 51.06
Total M&I 24.01 4.01 3,095 96.25
Inferred 196.66 5.03 31,797 989.00
Ezulwini Resource statement August 2006
URANIUM
Upper Elsburg Tonnes U3O8 U3O8 U3O8
Mt kg/t tonne Mlb
Measured
Indicated
Total M&I
Inferred
URANIUM
Middle Elsburg Tonnes U3O8 U3O8 U3O8
Mt kg/t tonne Mlb
Measured 2.45 0.722 1,770 3.90
Indicated 1.37 0.953 1,306 2.88
Total M&I 3.82 0.805 3,076 6.78
Inferred 136.92 0.757 103,602 228.40
URANIUM
Total Tonnes U3O8 U3O8 U3O8
Mt kg/t tonne Mlb
Measured 2.45 0.722 1,770 3.90
Indicated 1.37 0.953 1,306 2.88
Total M&I 3.82 0.805 3,076 6.78
Inferred 136.92 0.757 103,602 228.4
All Resources calculated at a 1g/t Au equivalent cut off
The independent mineral resource audit on the Middle and Upper Elsburg reefs was
carried out by Minxcon, an independent advisory company whose consultants have
had extensive experience in preparing technical and economic advisors" and
valuation reports for mining and exploration companies in South Africa. Minxcon
reports comply with acceptable international reporting standards and its
personnel are members of the various regulatory bodies in South Africa that have
also been accepted by the Australian Stock Exchange (ASX) as members of their
Recognised Overseas Professional Organisation (ROPO) list.
The report on the Upper Elsburg Reefs within the shaft pillar was compiled by
Horizon Blue Resources (Pty) Ltd, an independent company that carries out
mineral resource evaluations, preparation of applications for prospecting rights
and project supervision and management of exploration drilling programmes.
Both reports can be viewed in full on the Simmers website (www.simmers.co.za).
The following persons are qualified persons, as defined by the SAMREC Code and
NI
43-101, and are responsible for the preparation of the Resource Statement:
Daan v Heerden (Director Minxcon): B.Sc. (Min.Eng.), M.Comm. (Bus. Admin.), ECSA
Reg.No.20050318, FSAIMM Reg. No.37309.
Francois Martens (Associate Minxcon): B Sc. Hons. M Sc. (Geol), Pr. Sci. Nat,
MGSSA Reg. No.56733,SACNASP ( Pr. Sci. Nat.) Reg. No.400057/01
Johan Odendaal (Director Minxcon): B.Sc. (Geol), B.Sc. Hons (Min.Econ.), M.Sc.
(Min. Eng.), Pr. Sci.Nat. Reg. No. 400024/04, FSAIMM Reg. No. 702615, MGSSA No.
965119, MAusIMM Reg. No. 220813,IAS.
Chris McKnight, (Director Horizon Blue Resources) B.Sc. Hons (Geol) Pr.Sci.Nat.
Reg. No 400153/93
Issued by: Gail Strauss
On behalf of: Simmer & Jack Mines, Limited
Contact information: +2784 777 4060
Email: gailstrauss@simmers.co.za
Website: www.simmers.co.za
7 September 2006
Sponsor
Sasfin Capital
A division of Sasfin Bank Limited
Editor"s note: Simmers is a gold and uranium company listed on the JSE. One of
South Africa"s oldest gold producers, it underwent a major transformation in
November 2004 that saw its gold production increase from 10 000 ounces per annum
to 150 000 ounces by mid 2006 with a rate of 250 000 ounces targeted for early
2007. It is also actively engaged in Brownfield and Greenfield exploration in
the Sabie/Pilgrim"s Rest goldfield. It has two gold production divisions: TGME
(Mpumalanga), Buffelsfontein (Stilfontein); and an exploration division, Sabie
Mines, based in Mpumalanga. When these development projects come on stream
production is forecast to grow to 800 000 ounces of gold per annum within a five
year period. The uranium aspect of the business is contained within a separate
division, First Uranium (Pty) Limited ("FUSA",) and centres around treatment of
the tailings dams at Buffelsfontein and the refurbishment of the mothballed
Upper and Middle Elsburg reef at Ezulwini. A detailed Mineral Resource
Statement for Ezulwini is contained on the company"s website www.simmers.co.za .
Date: 07/09/2006 04:04:36 PM Produced by the JSE SENS Department
