Operations

Buffelsfontein

Simmers acquired Buffelsfontein Gold Mines Limited (comprising Hartebeesfontein and Buffelsfontein mines) for R70-million in October 2005 after it had been placed into provisional liquidation by DRDGold in March that year. Underground operations began in earnest in December 2005 and the first positive cashflow from mining operations was generated in March 2006.

Buffelsfontein's large resource base featuring measured and indicated resources of 11.12 million ounces coupled with excellent conversion potential makes Buffels the golden heart of Simmers, providing the company with a cash-generating, long-life mine with the potential to produce 318 000 oz per annum by F2014.

In June 2007, Buffelsfontein mine received an independent NI 43 -101 valuation. The competent person's report was undertaken by Minxcon (Pty) Limited and is the first independent valuation on the Buffelsfontein Life of Mine plan since Simmers acquired the mine in 2005.

In May 2007, the company concluded a successful capital raising project to finance the re-opening of the high-grade Number Five Shaft that was rendered inaccessible following a seismic event in March 2005. Rehabilitation of Five Shaft has been underway since September 2006 and 80% of the rehabilitation on the Main Shaft barrel has already been completed. The project is expected to cost R170-million and will add 700 000 reserve ounces at a capital cost of US$33 per reserve ounce.

Production at Five Shaft will commence in the current financial year and is expected to deliver 12 000 ounces by March 2008 at a cash cost of US$378 per ounce. The Five Shaft project will result in:

  • An 11.29% increase in total Life of Mine ounces , from 4.544 million ounces to 5.057 million ounces
  • A 5% increase in the overall Life of Mine (LOM) grade
  • An improvement in peak production forecast to 318 000 ounces by F2014/15

 

The re-opening of Number Five Shaft is part of Buffelsfontein's strategy to restore face length flexibility through increased development and opening up rates.

The independent technical report on Buffelsfontein, incorporating the inclusion of Five Shaft, can be found on this website under the 'Reports' section