Johannesburg, South Africa — MININGREVIEW.COM —14 March, 2008 – London and Johannesburg-listed Central Rand Gold Limited (CRG) has announced a 1.76 million ounce upgrade in its mineral resources, and has identified the first three probable surface targets it intends to mine.
CRG lodged its environmental impact assessment report with the Department of Minerals and Energy (DME) early last month, thereby initiating the 120-day review period by the DME for a New Order Mining Right application.
A media release issued by the company yesterday says the company –which listed on the LSE and JSE last November – has increased its indicated and inferred mineral resources from 33.8 million to 35.6 million oz since the last upgrade. The indicated category rose 932 000 oz from 21.4 million to 22.3 million oz, while the inferred category resource rose by 828 000 oz from 12.4 to 13.2 million oz.
The company release emphasised that of the 1.76 million oz resource upgrade, 378 000 oz were identified at a depth of less than 70m, and 152 000 oz between 70m and 200m. This represents some 30% of the total resource upgrade.
“Based on drilling, analytical conversion and empirical observations,” the release adds, “the company has identified the first three probable surface mining targets for initial mining once it has been granted its New Order Mining Right by the DME. This is a significant refinement on the nine slots originally identified,” it points out.
“As we refine our exploration understanding, and seek to maximise our early cash flows and prove our mining methodology, we are focusing on these three slots to commence our mining programme. These are referred to as slots 4, 8 and 9,” the statement says.
It adds that, in order to convert indicated and inferred resources to measured resources, ore development and on-reef sampling have to be undertaken, and a pre-feasibility study needs to be completed. “This will be achieved only once trial mining has commenced in 2009,” the statement concludes.
Central Rand Gold is planning to produce at an annualised rate of 100 000 oz by the end of 2009, at a rate of 250 000 oz by the end of 2010, and at 1Moz pa by 2012.