28th May 2014 07:51
LONDON (Alliance News) - Shares in Central Rand Gold Ltd jumped in early trading Wednesday after the company said the commission of its Mill 3 was installed on time and budget and is expected to increase total mining capacity by more than 55%.
The stock led the AIM market shortly after the open Wednesday after the company said its new mill, Mill 3, was installed on time mid-May, within budget and with a full safety record.
Central Rand Gold said the plant upgrade is set to increase total milling capacity by over 55%, with the commission of the mill now complete and operating in line with expectations. The firm noted that availability rates of existing milling circuit has also improved significantly over the past quarter.
"The increased feed capacity generated by Mill 3 will significantly reduce the current pressure on the existing milling circuit. This will enable a more proactive and effective maintenance program to be conducted, which will in turn improve productivity and plant availability. It is anticipated that the increased milling capacity and availability will reduce the Company's reliance on external tolling which will improve both revenue generation and operating margins," said the firm in a statement.
Predictive mill modelling for Mill 3 indicates a throughput capability of 17 tonnes per hour which, when combined with Central Rand's two existing ball mills is targeted to increase capacity by at least 55% to 25,000 tonnes per month, it said, in line with current mining production. From May 2014 onward, the firm expects a combined capacity of 28,300 tonnes per month from the three mills.
Central Rand Gold, which operates in the Central Rand Gold field of South Africa, is also undertaking upgrade work in its downstream leaching capacity. Until these upgrades come on stream, monthly production will be carefully managed, it said, at approximately 20,000 tonnes per month, to ensure that metallurgical recoveries do not deteriorate.
In a separate statement Wednesday the gold prospecting and mining company said that the Trans Caledon Tunnel Authority has commenced pumping and treatment operations of its High Density Sludge plant. The HDS plant will initially treat approximately 63 million litres per day, with full capacity of 84 million litres per day, being reached by the end of May 2014, said the firm.
Once at full capacity, the HDS plant will be able to reduce the water levels within the Central Basin. The current water level at approximately 175 meters below surface level at its mining operations, therefore, the dewatering will provide significantly improved access to deeper mining levels, said Central Rand Gold.
Earlier this month the firm said it widened its pretax loss to USD13.3 million in 2013, compared with a loss of USD6.2 million in 2012, and reported a drop in revenues to USD14.6 million for the year, from USD23.2 million in 2012 due to a drop in internal gold production which fell 25% to 7,675 ounces.
Central Rand Gold was leading the AIM market Wednesday morning, trading 27.06% higher at 13.5 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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