Company becomes producer – drillings reach gold values of up to 53.7 g/t
Heidelberg. Deutsche Rohstoff Australia Pty Ltd, a 100 per cent subsidiary of Deutsche Rohstoff AG, has started to mine gold ores on 07 October 2010. The Georgetown goldmine is located near the same named town in the North of Queensland.
We are planning to extract around 50,000 tonnes of gold-bearing rocks by open-pit mining before the end of the year. The oxidic gold ores will be processed into bars of raw gold. From November on, production will amount to 2,000 ounces per month.
“This is an important milestone for Deutsche Rohstoff AG“, says CEO Titus Gebel, “only 4 years after our foundation, we have launched the first production. This is a very short period in the mining sector. It proves our serious intention to establish a German primary producer. The current price development confirms our assessment to bank on gold for the first mining project.”
First, oxidic gold ores from the deposits of Red Dam and Electric Light will be mined simultaneously. For dressing reasons, it is favourable to mix the two ore types from both deposits before processing. Another characteristic: In North Queensland, mining is hardly possible during the rainy season (December to April). However, the processing plant in Georgetown can be operated throughout the whole year. Therefore, we speed up production during the dry season so that the plant can operate at full capacity in the upcoming rainy season. In April/May 2011, mining will then resume.
Processing and Production
Since beginning of July when the operating plan was approved, refurbishment works of the processing plant in Georgetown have been in progress. The standard gold processing plant has an annual processing capacity of around 100,000 tonnes. It was built in 1994 and was operating until 1997. The refurbishment is already in an advanced stage and shall be completed in October. As soon as it is ready for operation, a test run with old dump material containing around 1g of gold per tonne will be carried out to test and optimise it. Processing of the high grade gold ores currently being mined will start in November. Before, they will be stockpiled in front of the plant.
The resources of Red Dam and Electric Light had been explored in the 1980s and 1990s and amount to around 150,000 ounces of gold. The licensed territories in the Georgetown area belong to Deutsche Rohstoff Australia to 100 per cent and comprise an additional eleven mining leases as well as six exploration licences. The total area spans around 400 km². The mining leases of Red Dam and Electric light account for only 0.6 km². Especially the large-scale exploration licences have hardly been explored.
In Red Dam and Electric Light, besides the preparation for production, we have carried out further exploration works. All in all, 3100 meters have been explored. On the one hand, the drilling campaign aimed at upgrading a large part of the resource from “inferred” to “indicated”; on the other hand, it investigated how far the sulphidic mineralisation extends to depth. Independent lab results for the first five drillings (RD 1000 – RD 1004) in Red Dam are now available. All drillings have encountered sulphidic vein mineralisation at a depth of 30 to 45 meters; RD-1000 even encountered an extraordinary peak value of 53.7 grams per tonne of gold over one meter or 14.1 g/t over seven meters, respectively. RD-1001 encountered 7.5g/t over 2.4 m, RD-1002 15.85 g/t over 0.9 m, RD-1003 8.5 g/t over 0.9 m and RD-1004 25.4 g/t over 0.7 m. The other drilling analyses of Red Dam are expected to be available within the next days or weeks. On that basis, we will compile a resource update.
The drillings in Electric Light fully confirmed the former results; all seven drillings have encountered the mineralised zone. EL-1003 encountered a peak value of 26.25 g/t of gold over six meters. Thereupon, the independent consultant geologist approved that the total oxidic resource of Electric Light (20,000 t with an average content of 9.7 g/t) can be upgraded from “inferred” to “indicated” according to JORC.
The deposit JubileePlunger, located south of Georgetown, is another prospective area for oxidic gold ore mining. ¬¬¬¬¬Six prospecting trenches with a breadth of up to 60 m have been constructed. All trenches detected significant oxidic mineralisations, the peak value being 16.9 g/t over one meter. The metallurgical eligibility of the ore is currently being investigated. Mining could potentially start as early as in 2011.
Photos and videos depicting the current state and progress of the Georgetown project can be accessed on our website (http://www.rohstoff.de/index-en.shtml), our Facebook page (http://www.facebook.com/pages/Deutsche-Rohstoff-AG/122709644409218?ref=ts) as well as the corresponding YouTube channel (http://www.youtube.com/user/DeutscheRohstoffAG).
Heidelberg, 7 October 2010
Deutsche Rohstoff AG (Heidelberg, Germany), listed in the Entry Standard segment of Frankfurt Stock Exchange, is establishing a new primary producer. The company’s focus is placed on gold, oil/gas and so called high tech metals such as indium, gallium, rare earth metals, cobalt. All projects are located in countries marked by political stability, the core area being Germany. The business concept is based on redeveloping deposits which have been well explored in the past. Production start is scheduled for 2010. For more information please visit www.rohstoff.de.
Dr. Thomas Gutschlag
Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 26, 69117 Heidelberg
Tel: 06221/652 4730
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