Gold- and uranium-miner Simmer & Jack says it produced 140 000 oz during the last financial year and is aiming for 180 000 oz/y in the current financial year, up from 10 000 oz/y in 2004, and hopes to reach the one-million-ounce-a-year mark in the next five years. Speaking at the JSE's general companies showcase last week, CEO Gordon Miller said that the several exploration and expansion projects at the Transvaal Gold Mining Estate (TGME), in Mpumalanga, and at Ezulwini mine, situated on the outskirts of the town of Westonaria, in Gauteng, will add significantly to the current resource base. Acquisitions, which have added 50-million ounces of measured, indicated and inferred gold and 291-million pounds of uranium to the company's resource base since 2005, will continue to play a role in the company's growth strategy. Based on the organic growth of Buffelsfontein mine and First Uranium's two projects, the gold production is forecast to reach 500 000 oz/y by the end of 2011. This will exclude any addi- tional growth derived from exploration and further expansion of projects. Exploration projects that have the potential to increase the resource base include the Strathmore deepening pro- ject, at Buffelsfontein mine, which, if successful, has the potential to double the mine's resources. An initial technical assess- ment is currently under way on the Strathmore project. The most advanced exploration project is at TGME, where a conceptual study has outlined the potential to define one-million ounces of resources and 733 000 oz of reserves. A prefeasibility study will be conducted in March next year, and will be followed by a bankable feasibility study in March 2009. This is fully funded and includes the construction of three heap-leach pads. The project is expected to ramp up to 250 000 oz of gold by 2010 at a total capital and operating cost of $240/oz. Miller indicates that while accretive deals may arise, the company is committed to its growth plan. "If we can grow at the right price, we will continue to focus on our organic growth plan," he adds. "Building up to half-a-mil- lion ounces of gold a year is based on engineering and technical studies. "Obviously, we have to do a lot of work in the exploration field and technical studies on the resources we have. "The balance of growth is expected to come out of the area of exploration and technical studies. "We also expect acquisitions to add to this profile," says Miller. He says that all projects are on track and the company expects a significant growth profile in uranium and gold production when First Uranium's two projects come on stream next year. The Buffelsfontein mine tailings-reprocessing facility is now producing gold, 15 months ahead of schedule, owing to the acquisition of Mine Waste Solutions. The uranium plant will be commissioned in November next year, when a significant expansion of the plant is expected. Ezulwini mine expects to begin producing gold in April 2008, with uranium production scheduled to start in June 2008. (Mining Weekly)
