Gold mining returns to Johannesburg

9 October 2008

London and Johannesburg listed Central Rand Gold has received a new order mining right from the Department of Minerals and Energy, enabling the company to transform from an explorer to an active miner.

The company will commence trial mining at its Consolidated Main Reef, Langlaagte and Crown Mine tenements in the Central Rand Goldfield, situated to the south of the Johannesburg inner city.

“Receiving our mining right is a major step forward in our overall strategy as we can now focus on implementing the mining plans that will see us becoming a gold producer during 2009,” Central Rand Gold CEO Greg James said in a statement last month.

James stressed that comprehensive exploration, planning and analysis, as well as black economic empowerment structuring and community interaction had enabled the company to reach the current stage.

Central Rand Gold last month received a trial processing plant in Johannesburg, which it has since been commissioned for use. Trial mining has since commenced and full-scale surface mining is scheduled to start in the first quarter of 2009.

The new order mining right entitles Central Rand Gold to perform mining activities on the three tenements to a depth of 900 metres below surface. This application covers approximately 33.67 million tons of the company’s current resource base, and is expected to yield around 4.2 million ounces of gold over a seven year period.

This is also the first mining right in a series of new order mining rights that the company is seeking to apply for.

“We are grateful to the Department of Minerals and Energy for their professional handling of our application and related submissions,” James said, adding that Central Rand Gold’s immediate goal was to produce gold at an annualised rate of 100 000 ounces by the end of 2009.

SAinfo reporter