25th Aug 2009 07:30
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Immediate Release
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25 August 2009
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CENTRAL RAND GOLD LTD
INITIAL RESERVE STATEMENT FOR CENTRAL RAND GOLD ("CRG" or "the Company")
Johannesburg, August 25, 2009: Central Rand Gold Ltd (LSE: CRND, JSE: CRD), the South African gold mining and exploration holding company, has released its first independent Resources to Reserves conversion report ("Snowden Report" or the "Report"). The Report was conducted by Snowden Mining Industry Consultants on a section of the Company's Central Rand Goldfield (the "Project") tenements in southern Johannesburg.
Highlights
The first CMR mine is economic and technically feasible;
JORC Probable Reserve of 270,900 ounces of gold (2.06 million tonnes at 4.1g/t) converted from Indicated Resources within the Main Reef on the Consolidated Main Reef tenement in two well defined channels at depths of between 70m and 500m and 70m and 750m below surface over approximately 2km of strike where trial mining is set to begin;
Conversion rate of 70% from Indicated Resource to Probable Reserve was achieved for Main Reef mineralization exceeding 3g/t within the identified channels; and
Run of Mine Operating Costs for this initial Reserve conversion - US$580/oz.
The Ore Reserve is presented in the table below:
|
Area |
Classification |
Tonnes (Mt) |
Au (g/t) |
Au (oz) |
|
East Limb |
Probable |
0.719 |
4.1 |
94,400 |
|
West Limb |
Probable |
1.342 |
4.1 |
176,500 |
|
Total |
Probable |
2.061 |
4.1 |
270,900 |
The process for the Reserve conversion (which has been reported in accordance with the JORC code) developed with Snowden was necessarily rigorous in its assumptions and the Board has strong confidence that the resultant modeled outputs of this process represent a strong base case upon which the Company will be able to build.
Commenting on the report, Chief Executive Officer, Johan du Toit, said:
"Today's results are a significant milestone for CRG. The Report is based on two well-defined channels in the Main Reef, without the inclusion of any additional ore such as sweepings, vamping, Main Reef Leader pillars, auriferous middling material and surface material. With Snowden confirming that our mining method and mine plan can develop an economic mine, this is the first of many steps in building a large and sustainable business over the next few years."
The full Snowden Report is available on the Company's website: www.centralrandgold.com
Central Rand Gold will host a conference call on Tuesday 25 August 2009 at 10:00 am (London, UK time) / 11:00am (South Africa) to update investors and analysts on its Q2 Results and Reserve Update.
Participants may join the call by dialling one of the three following numbers, approximately 10 minutes before the start of the call.
From UK: (toll free) 0808 109 1498
From South Africa: (toll free) 0800 999 539
From Australia: (toll free) 1800 052 112
Participant pass code: 878026#
Johan du Toit, Chief Executive Officer, will lead the discussion and will be accompanied by other members of the management team. The discussion will be followed by a question and answer period.
For further information, please contact:
Central Rand Gold +27 (0) 11 551 4000
Johan du Toit/ Wayne Epstein
Evolution Securities Limited +44 (0) 20 7071 4300
Simon Edwards/ Chris Sim/ Neil Elliot
Macquarie First South Advisers (Pty) Ltd +27 (0) 11 583 2000
Thembeka Mgoduso / Annerie Britz / Melanie de Nysschen/ Manisha Ramlakhan
Buchanan Communications +44 (0) 20 7466 5000
Bobby Morse/ Ben Willey/ Katherine Sutton
Jenni Newman Public Relations (Pty) Ltd +27 (0) 11 506 7300
Jenni Newman/ Megann Outram/ Lerato Tlatlane
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