Operations

TGME

Transvaal Gold Mining Estate Limited (TGME), a wholly-owned subsidiary of Simmer & Jack, situated in the Pilgrim's Rest/ Sabie goldfields approximately 450 kilometres North East of Johannesburg is the operational focus of the company's Mpumalanga operations. Another Simmers subsidiary, Sabie Mines Limited, houses various mining and prospecting rights in the area and is managed by the TGME team.

Scene of South Africa's first gold rush in 1873, the Sabie/Pilgrim's Rest area yielded 6 million ounces of gold before lack of capital and increasingly disinterested shareholders reduced a once proud operation to less than 10 000 ounces of gold per annum in 2004.

As part of Simmers' turn-around programme, two of TGME's underground mines, Frankfort and Beta Mine were targeted for an intensive recapitalization project aimed at developing the resource potential of these mines.

Mechanisation of existing underground mines
As a result, Frankfort Mine is now a highly mechanized underground operation capable of producing relatively high volumes of ore. Erstwhile narrow and restricted tunnels have been transformed into trackless access ways, resulting in a steady increase in production. Efficient conveyor systems for ore transport have been installed and LHD's have been introduced for efficient cleaning operations. High pressure water jets have also been introduced to move rock and boost production.

Recovery rates however have been disappointing owing to the highly refractory ore. For this reason, funding has been earmarked to improve plant recoveries from the current 45 % to between 60 and 70%, which will take effect by December 2007. The improved recovery will yield an additional 22.5kg per month, which translates into additional revenue of R3.6 million per month, or R43.2 million per annum. The Frankfort Mine plans to increase production to 25 000 ounces per annum by 2010.