31st Mar 2009 11:30
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Immediate Release |
31 March 2009 |
Central Rand Gold Limited
(Incorporated as a company with limited liability under the laws of Guernsey,
Company Number 45108)
(Incorporated as an external company with limited liability under the laws of
South Africa, registration number 2007/019223/10)
ISIN: GG00B24HM601
Share code on LSE: CRND
Share code on JSE: CRD
Toll Treatment Arrangement
Central Rand Gold's operating subsidiary, Central Rand Gold SA (Pty) Limited ("CRG" or the "Company") has entered into a toll treatment agreement with Cuminore (Pty) Limited ("Cuminore") for the toll treatment and extraction of gold from concentrate that is currently being produced from the 20tph crushing and concentrating plant located at Slot 8 on the Consolidated Main Reef tenement.
The agreement caters for the treatment of 3,600 tons of concentrate with cost expectations closely aligned with the Company's internal Carbon in Leach ("CIL") plant expected operational costs. The Cuminore plant is to be utilised exclusively for material supplied by CRG to ensure that there is no loss of material. A full clean up, including the stripping of the mill linings will also occur at the end of the contract. Cuminore's treatment facility is located less than 5 kilometres away from Slot 8.
The primary reason for this agreement is to ensure an early cashflow while the Company's CIL plant is being commissioned. The Company expects to begin treating concentrate through its own CIL plant by the end of April 2009. There are also potential synergies that could arise from the relationship with Cuminore including uranium and sulphur extraction.
Issued on behalf of: Central Rand Gold Limited
Date: 31 March 2009
Contact:
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Johan du Toit
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+ 27 (0) 11 551 4000
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Wayne Epstein
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+ 27 (0) 11 551 4000
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Enquiries:
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Evolution Securities Limited
Simon Edwards/Chris Sim/Neil Elliot
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+ 44 (0) 20 7071 4300
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Macquarie First South Advisors (Pty) Ltd
Thato Morajele/Annerie Britz/Melanie de Nysschen
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+ 27 (0) 11 583 2307
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Buchanan Communications Limited
Ben Willey/Bobby Morse
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+ 44 (0) 20 7466 5000
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Related Shares:
Central Rand Gold