Revised resource and reserve estimates at the President Steyn gold mine in South Africa’s Free State gold field show a significant increase in reserves on the Steyn 1, Steyn 2 and Steyn 3 shafts. At the same time the orebodies on the Steyn 7 and 9 shafts have been downgraded to non-operating reserves.
Thistle Mining (THT-T) reported proven and probable reserves of 15.9 million tonnes grading 7.94 grams gold per tonne on the three working shafts, including probable reserves — defined in the estimate as those to be mined before the end of 2006 — of 2.4 million tonnes grading 7.82 grams per tonne. These are from a measured and indicated resource of 34.6 million tonnes with an average gold grade of 8.29 grams per tonne.
Most of the increase came at the Steyn 3 shaft, where geostatistical estimates on the Basal Reef zone increased the company’s confidence in the reserve estimate.
Thistle still regards 1.4 million tonnes of mineralization in the Steyn 7 and 9 areas as probable reserves, with a grade of 9.07 grams gold per tonne. It said the resources on the 7 and 9 shafts would only be economic if the gold price in South African rand were to “improve markedly.” The rand has risen faster against the United States dollar than has the gold price, putting considerable cost pressure on South African gold operations.
The two shafts ate on care and maintenance. They have measured and indicated resources of 15.4 million tonnes grading 9.59 grams gold per tonne.
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