Johannesburg, South Africa — MININGREVIEW.COM — 20 October 2010 – Village Main Reef Gold Mining Company (1934) Limited (Village) has completed phase one “’ the scoping study “’ of the three-phase bankable feasibility study (BFS) programme of its Lesego platinum project.
Revealing this in a statement released here, the company said completion of the scoping study was the first milestone reached in the BFS, and had produced results in line with initial expectations from the Competent Person’s Report and information from historical boreholes.
The statement added that from the current exploration drilling programme on the Lesego site, four out of six boreholes had been completed and had intersected both the Merensky and UG2 reefs at expected depths of between 1 000 and 2 000m below surface. The remaining two boreholes should intersect the reefs shortly.
Reef thicknesses were also found to be in line with CPR averages of 1.47m for Merensky and 1.18m for UG2 at average grades of 6.43g/t of 3 PGEs (platinum, palladium and rhodium) plus gold for both reefs. Metallurgical test work done by Mintek Laboratories on borehole samples had yielded recoveries and grades for both the Merensky and UG2 reefs that were characteristic of other reefs in the region.
“The scoping study results continue to be positive,” commented CEO, Bernard Swanepoel. “Confidence in the ore body is growing and no significant structural anomalies in the geology are evident. This bodes well for underpinning our business case for the Lesego project.”
Successful completion of the scoping study has been to the satisfaction of all the key stakeholders, including the Industrial Development Corporation, (IDC) which has committed R142 million of funding of the BFS.
Phase two drilling will commence in November 2010 with the total number of on-site drill-rigs increasing from four to seven. It should result in an upgrade of some of the current inferred resource to an indicated resource category, and is due to be completed in the second half of 2011.