Johannesburg, South Africa — MININGREVIEW.COM — January 23, 2008 – Emerging South African resources company Simmer & Jack Mines Limited (Simmers) has
announced a 16% increase in gold production for the quarter ended 31 December 2007, compared with the corresponding period in the previous financial year.
A company production update released here today says Simmers’ attributable gold production went from 35 406 ounces in Q3 of the 2007 financial year to 41 046 ounces in Q3 of F2008.
“This increase would have been as much as 30% higher,” the update added, “were it not for the fact that Buffelsfontein Gold Mine’s production for the third quarter was affected by the lock-up of 151kg of gold as a result of the commissioning of its new CIP plant.”
This "lock-up" of gold is common when commissioning new plant and milling equipment, and refers to gold that goes through the system but is locked as a temporary inventory within the new processing plant. This can be accessed when the plant is cleaned or de-commissioned at a later stage.
The increase in Simmers’ gold production is largely as a result of the company’s growth and development strategy which has seen two new projects – the Ezulwini mine and the Buffelsfontein tailings recovery project – come on stream during that period. Substantially improved infrastructure at Buffelsfontein Gold Mine (Buffels) aimed at improving the production profile in a sustainable manner, and better recoveries at TGME, have also contributed to the increase in production, the update said.