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Thistle Mining Inc. - Major New Discovery: 26 Tonnes Within the Eldorado Massives
09:30 EST Thursday, February 05, 2004
TORONTO, Feb. 5 /CNW Telbec/ - The directors of Thistle Mining are pleased to announce the discovery of a new, significant resource block in the Eldorado Reef Package at its President Steyn complex in South Africa. The discovery is the subject of a report dated 5 February 2004 received from Camden Geoserve CC, the Company's independent expert.
The discovery has been named Distal Eldorado. It consists of a block totalling 4.2 million tonnes with an in-situ grade of 6.2 grammes per tonne. Of this amount; 100,000 ounces are in the Indicated category and 730,000 ounces are in the Inferred resource category, amounting to a total of 26 tonnes of gold. The block is situated to the East and South of the previously announced Eldorado Massive project, Project 10, in the Northern section of the mine. The initial area now identified is 2,000 metres by 350 metres and forms part of a 6,500-metre strike length containing the auriferous EA1-EA7A reef packages. Further reefs are still to be explored at this location.
The initial resource identified in the Eldorado Reefs to date now exceeds 1.3 million ounces of gold, equivalent to approximately 41 tonnes in total. Production has already begun from the Massives area and is now running at approximately 17,000 tonnes per month at a cost of ZAR 250 per tonne, equivalent to US$ 240 per ounce.
All increased production will be sold on an un-hedged basis.
Through the process of continuous development in the Northern Section,
the President Steyn complex has achieved an increased re-stated resource base (excluding the Eldorado projects) from Camden Geoserve CC, of 20 million ounces compared to 19.4 million ounces as announced in October 2002. The reserve base (also excluding the Eldorado projects) has been re-stated, using a 15 percent lower gold price of ZAR 85,000 per kilogramme and the cut off grade has been increased from 3.0 to 4.0 grammes per tonne. Reserves now stand at 2.7 million ounces compared to 3.2 million ounces in October 2002.
Commenting on the results, Mr William McLucas, President and CEO, said: "This discovery is very exciting. The Distal Eldorado block forms a small part of what we believe will be a multi million ounce ore-body. The ability to increase the resource base of a mature mine through continuous development work in the Golden Triangle is testament to the work being done in South Africa".