Bringing gold mining back to its roots in Johannesburg

On November 1 Central Rand Gold (CRG), a holding company formed to re-establish commercial gold mining activities in the Central Rand Goldfield of Johannesburg, published its Admission Document in connection with its Admission to the Official List of the UK Listing Authority and to trading on the main market of the London Stock Exchange (ticker code: CRND). The company is simultaneously listing its shares on the Main Board of the Johannesburg Stock Exchange (ticker code: CRD).
CRG has gold prospecting operations in the historic gold mining area of the Central Rand Goldfield, which lies to the south of Johannesburg. The company’s aim is to ultimately re-establish commercial gold mining activities in the Central Rand Goldfield by using modern exploration, development and production techniques. CRG is able to benefit from reduced exploration time and costs due to the use of existing old mining infrastructure for the purposes of further exploration. CRG does not intend to recommence mining old stopes or old faces using historically conventional mining techniques. Instead, CRG’s philosophy is to mass mine underground areas using modern techniques accessed through old workings. Mining applications have been lodged in respect of certain of the tenement areas in which the Company has an interest and which mining rights the Company will hold once ultimately granted. CRG currently has Indicated resources of 21.4 Moz of gold at average grade of 8.9 g/t and 12.4 Moz of Inferred resources at average grade of 7.4 g/t as at July 2007, in accordance with the JORC and SAMREC Codes.

Commenting on the announcement, Alastair Walton, Non-executive Chairman of CRG, said: “The broad range of high quality investors that Central Rand Gold has attracted during the IPO is testimony to the strong proposition that lies at the core of our business. Our new status as a listed company in London and South Africa will raise our profile and give us the flexibility we require to further develop our business.”

Greg James, Chief Executive of CRG, said: “The proceeds from this offering will allow us to start the move from exploration to production, enabling us to bring gold mining home to the Central Rand Goldfields, the birthplace of goldmining in Johannesburg.”

CRG is the holding company for a group of companies. The Group’s principal operating subsidiary (74% indirectly owned), Central Rand Gold South Africa holds interests in prospecting rights and operates gold prospecting operations in South Africa. The Group has a number of projects in the Central Rand Goldfield located in or near the southern part of Johannesburg. These projects comprise eight contiguous New Order prospecting rights and a large area comprising a prospecting right application located to the south and southwest of the New Order prospecting rights. The prospecting rights constitute the central part of the Central Rand Goldfield.