News Column

Central Rand Gold Doubles Resource Base On Reclassification

July 1, 2014

Tom McIvor

LONDON (Alliance News) - Central Rand Gold Ltd Tuesday said that independent consultants have reclassified gold mineralisation at its Central Basin mining area in South Africa to 'Mineral Resource' from 'Exploration Target', more than doubling the company's resource base.

Shares are up 21% at 12.08 pence in early trade Tuesday.

The South Africa-based gold mining and exploration company said that following the successful start of an acid mine drainage pumping and treatment process by the Trans Caledon Tunnel Authority on site, independent consultants Venmyn Deloitte upgraded gold mineralisation found between 450 metres and 900 metres below surface.

The company said that new pumps installed in March and a high-density sludge plant which was commissioned in May, have shown that the entire basin can be drained of water from a single point. It added that studies have shown it can drain beyond the 450 metre level, allowing for extraction, which brought the mineralisation into the resources category.

As a result, Venmyn Deloitte have issued a new competent persons report for the site, which shows that the reclassification has more than doubled the resource base of the company to 9.9 million ounces of contained gold from 4.5 million ounces previously.

Central Rand Gold now has an exploration target of 83.0 million tonnes at 10.03 grams per tonne of gold, for 26.8 million ounces of gold.

The company said that the water level at the site is at roughly 165 metres below surface and so its focus is to exploit resources available above this level. As such, its focus in the short to mid term is on the exploitation of resources above 450 metres.

However, Central Rand Gold also noted that reserve studies, mine planning and scheduling below 450 metres can now proceed with a view to extending the life of the mine.

"The lower water table not only increases the life of mine of our assets through having higher quality reserves and resources, it also provides job opportunities as well as a sustainable AMD management system," Chief Executive Officer Johan de Toit said in a statement.

Central Rand Gold is holding its annual general meeting Tuesday.

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Source: Alliance News

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