| Thu 25 Jan 2007, 15:05 | | SIM - Simmers- Simmers to pursue surface mining po |
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SIM
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SIM - Simmers- Simmers to pursue surface mining potential at Mpumlanga
SIMMER AND JACK MINES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN: ZAE000006722
("Simmers" or "the company")
ISSUED ON BEHALF OF SIMMER & JACK MINES, LIMITED
25 January 2007
SIMMERS TO PURSUE SURFACE MINING POTENTIAL AT MPUMLANGA
Simmer & Jack Mines, Limited has announced that it intends to pursue new
opportunities for surface mining at its Mpumalanga-based subsidiaries,
Transvaal Gold Mining Estates Limited (TGME) and Sabie Mines.
"Simmers has invested over R8-million in an extensive exploration
programme in the historically rich Mpumalanga gold fields in the Sabie/
Pilgrim`s Rest area over the past two years and I`m happy to report that
it`s paid off," said Gordon Miller, Simmers CEO.
"We`ve turned up some very exciting results and all indications are that
we will be able to extract the gold using low-cost, low-risk heap leach
technology, which is relatively unknown in South Africa but widely used
elsewhere in the world where this type of gold deposit is found.
"In the process we have already started cleaning up the environmental
legacy of almost a century of gold mining in the area, filling in
abandoned holes and replacing alien vegetation with indigenous plants,"
said Miller.
The new surface mining developments are in addition to the gold resources
contained at TGME`s underground mines at Frankfort and Dukes Hill, both
of which have undergone extensive mechanisation in the past 24 months.
Fifteen targets have been identified to investigate the potential for
heap leach recoveries. These comprise a sand dump at Elandsdrift near
Sabie, 6 targets in the vicinity of the Frankfort underground mine and
another 8 in relative close proximity to the existing TGME metallurgical
plant at Pilgrim`s Rest. These latter targets, termed DG1 to DG8, are on
ground for which TGME has new order prospecting rights.
As part of its exploration programme, Simmers is already in the process
of completing its first heap leach test pad at Elandsdrift , with the aim
of proving the viability of the concept by treating and rehabilitating an
old 300 000 ton sand dump. Recoveries are estimated at 0.83 g/t with a
production forecast of 8 114 ounces (230 kilograms).
To cater for the DG targets 170 reverse circulation (RC) boreholes were
drilled to a depth of 10 metres and an additional 26 RC holes drilled to
a depth of 50 metres on DG2. This drilling, at an average depth of 10
metres produced a measured resource of 733 000 tons at 0.97 g/t using a
0.4 g/t cut off.
The deeper holes have identified resources in areas down to a depth of 25
metres. A mineable reserve is being defined and the conversion permitting
process is in place.
A second heap leach test pad to firm up the metallurgical characteristics
of DG2 is in the final stages of design and construction is planned to
commence by the end of the current quarter.
DG1 will immediately follow DG2 as a target in this region. Drilling has
already commenced and will be complete by the end of this quarter. Leach
pad sites for the remaining DG targets are also being identified.
With respect to the 6 targets in the vicinity of the Frankfort mine, a
shallow surface gridded soil geochemistry programme was conducted by
independent consultants Horizon Blue. The results point to the discovery
of new gold deposits that have a similar style of mineralization to the
Carlin-type deposits found in the northern Nevada goldfields in the USA.
These findings were based on an earlier study that suggested that the
gold occurrences in the area were potentially caused by wide spread
hydrothermal alterations of the carbonate host rock similar to the
occurrences in Nevada.
The results are sufficiently encouraging to warrant the investment of a
further R13 million in the next financial year on exploration, spread
over the remaining targets as well as areas in Sabie Mines for which
there are prospecting permits in place.
"It`s early days yet but if this is indeed proven to be a Carlin-type
deposit it will be the first major gold find in South Africa in many
years," said Miller.
Historically, the area has yielded some six million ounces of gold, most
of which was produced by TGME, but interest waned in the 1950s, when the
focus of gold production switched to the Witwatersrand. This is the
first time in decades that sufficient funds have been invested to
understand the source of the deposits in this area.
"The application of heap leach technology for the extraction of gold,
means that this area could well resume its role as one of South Africa`s
key gold producing regions," said Miller.
The independent technical reports of the various exploration programmes
can be found on the Simmers` website at wwww.simmers.co.za
FOR FURTHER INFORMATION PLEASE CONTACT:
GAIL STRAUSS ON +27 (0) 84 777 4060
gailstrauss@mweb.co.za
www.simmers.co.za
Date: 25/01/2007 15:05:02 Produced by the JSE SENS Department.
