Thistle Mining Inc. - Mineral Reserves and Mineral Resources Statement for President Steyn Gold Mine including the Golden Triangle Project



    TORONTO, Jan. 31 /CNW/ - Thistle Mining Inc. ("Thistle" or the "Company")
(AIM:TMG) wishes to announce the Resource and Reserve Declaration for
President Steyn Gold Mines (Free State) (Pty) Ltd. ("PSGM") and results of the
Golden Triangle Feasibility study.

    Golden Triangle Feasibility Study - Highlights

    The feasibility study for the Company's Golden Triangle project located
within the PSGM lease area has been completed. The feasibility study was
completed by Sound Mining Solutions (Pty) Ltd ("SMS"). The Golden Triangle
project targets a block of ground lying immediately below current
infrastructure at PSGM Number 9 shaft. To see the illustrated figure of the
7 and 9 Shaft Complex, go to 
http://files.newswire.ca/279/7_AND_9_SHAFT_COMPLEX.pdf. The block of ground is
estimated to contain 2.77 million tonnes of Measured and indicated resources
amounting to 1.04 million oz at an in situ grade of 11.66 grammes per tonne
using a 3.0 gramme per tonne cut off.
    The feasibility study proposes that the Basal Reef orebody be developed
and exploited from twin declines developed from the Number 9 Shaft loading
level. The twin 9 degrees declines include a Conveyor Decline (6.0m x 5.0m)
and an Access Decline (5.0m x 4.0m) planned over three legs. One decline has a
dedicated conveyor installation and adequate clearance for trackless
equipment. The other decline is a dedicated service decline for trackless
equipment. A separate chairlift installation facilitates the project's
man-transport requirements. Lateral development and mining is to be undertaken
using conventional mining methods common to the South African gold mining
industry. The proven and probable reserves of the project have been estimated
to be 2.6 million tonnes at a grade of 6.31 grammes per tonne to yield
0.53 million oz.
    The refurbishment of the Number 9 shaft and development of the twin
declines is planned to commence in 2009 with sustained production commencing
in early 2011. The anticipated production profile is illustrated below.

    
    -------------------------------------------------------------------------
    Descrip-                                                            Total
     tion     Units   2009  2010  2011  2012  2013  2014  2015  2016  Project
    -------------------------------------------------------------------------
    Oz
    Produced     oz    2.3  28.1  65.1  93.2  95.3  90.9  78.5  49.4   502.8
    000's
    -------------------------------------------------------------------------
    

    The build up in production from 2010 and onwards will offset the loss in
production anticipated when the South Division of PSGM comprising Numbers 1
and 2 shafts ceases production in 2011. The capital required to develop the
declines and associated infrastructure is estimated to be $39.6 million in
January 2007 terms and cash and total unit costs are estimated at $361 and
$477 per oz respectively at a ZAR: US $ exchange rate of 7.35. The maximum
cash draw down is anticipated to be $37.8 million. At a gold price of $550 per
oz, the internal rate of return of the project is calculated to be 13% real.
It is also anticipated that at gold prices of $600 per oz, PSGM will be able
to fund the development of the Golden Triangle project from internally
generated cash flows.
    This project will also allow for the capital efficient exploration,
development and exploitation of additional resources within the Number 9 Shaft
footprint not covered in the feasibility study including the AC Target area,
additional Basal Reef resources adjacent to and surrounding the Golden
Triangle project area.
    For additional information relating to the Golden Triangle project refer
to the technical report titled "43-101 document for the President Steyn Gold
Mine 9 Shaft Project situated in the Witwatersrand Basin, Free State Gold
Field, South Africa" dated January 28, 2007 which is available to the public
at www.sedar.com.
    At a board meeting held on January 31, 2007, the Board of Directors of
the Company has approved the development of the project on the condition that
the project can be funded from internal cash resources at PSGM. PSGM proposes
to build up a cash reserve before development work on the project commences to
enable the project to be financed internally.

    PSGM Mineral Reserves and Mineral Resources Statement

    The PSGM mineral reserve and mineral resource estimate that follows is
compliant with the Canadian Securities Regulators' National Instrument 43-101
("NI 43-101") and the standard used is CIMM.

    Gross Attributable Mineral Reserves (Proven and Probable) at 31 December
    2006 (see notes 1, 2, 6, 8)

    
    -------------------------------------------------------------------------
                      Proven Mineral Reserves      Probable Mineral Reserves
    -------------------------------------------------------------------------
                    Tonnes     Grade   Contained    Tonnes  Grade  Contained
                  millions       g/t          Oz  millions    g/t         Oz
                                       (millions)                  (millions)
    -------------------------------------------------------------------------
    Gold
    -------------------------------------------------------------------------
    No 1 shaft        0.50      4.74      0.08      0.47      4.06      0.06
    -------------------------------------------------------------------------
    No 2 Shaft        0.50      7.74      0.12      0.75      6.93      0.17
    -------------------------------------------------------------------------
    No 3 Shaft        1.04      4.71      0.16      3.58      7.51      0.87
    -------------------------------------------------------------------------
    No 9 Shaft                                       2.6      6.31      0.53
    -------------------------------------------------------------------------
    PSGM              2.05      5.46      0.36      7.55      6.68      1.62
    -------------------------------------------------------------------------


    --------------------------------------------------------
                  Total Proven and Probable Mineral Reserves
    --------------------------------------------------------
                    Tonnes     Grade   Contained  Recovery
                  millions       g/t          Oz    % (see
                                        millions    note 5)
    --------------------------------------------------------
    Gold
    --------------------------------------------------------
    No 1 shaft        0.97      4.41      0.14      95.0%
    --------------------------------------------------------
    No 2 Shaft        1.25      7.25      0.29      95.0%
    --------------------------------------------------------
    No 3 Shaft        4.63      6.88      1.02      95.0%
    --------------------------------------------------------
    No 9 Shaft         2.6      6.31      0.53      95.0%
    --------------------------------------------------------
    PSGM              9.60      6.42      1.98      95.0%
    --------------------------------------------------------


    Net Attributable Mineral Reserves (Proven and Probable) at 31 December
    2006 (see notes 1, 2, 6, 7, 8)

    -------------------------------------------------------------------------
                      Proven Mineral Reserves      Probable Mineral Reserves
    -------------------------------------------------------------------------
                    Tonnes     Grade   Contained    Tonnes  Grade Contained
                  millions       g/t          Oz  millions    g/t        Oz
                                       (millions)                 (millions)
    -------------------------------------------------------------------------
    PSGM              1.74      5.46      0.31      6.42      6.68      1.38
    -------------------------------------------------------------------------


    --------------------------------------------------------
                  Total Proven and Probable Mineral Reserves
    --------------------------------------------------------
                    Tonnes     Grade   Contained  Recovery
                  millions       g/t          Oz    % (see
                                        millions    note 5)
    --------------------------------------------------------
    PSGM              8.16      6.41      1.68      95.0%
    --------------------------------------------------------


    Reconciliation of Gross Mineral Reserves (Proven and Probable) at
    31 December 2006 (see note 6)

    -------------------------------------------------------------------------
                                              Increase
                                         (Decrease) in        Mineral
                   Mineral                     mineral        Reserve
                   Reserve         Mined       reserve       December
               March, 2006       in 2006   millions oz       31, 2006
    Mine       millions oz   millions oz   (see note 6)   millions oz
    -------------------------------------------------------------------------
    PSGM
    -------------------------------------------------------------------------
    No 1 shaft        0.22          0.02         (0.06)          0.14
    -------------------------------------------------------------------------
    No 2 Shaft        0.39          0.06         (0.04)          0.29
    -------------------------------------------------------------------------
    No 3 Shaft        1.66          0.06         (0.58)          1.02
    -------------------------------------------------------------------------
    No 9 Shaft           0             0          0.53           0.53
    -------------------------------------------------------------------------
    Total PSGM        2.27          0.14         (0.15)          1.98
    -------------------------------------------------------------------------

    The ore reserve reconciliation between the March 2006 and December 2006
for Number's 1, 2 and 3 shafts shows a significant unfavorable variance of
0.82 million oz. The differences are due lower regional block factors,
management applying a 20% discount factor on the B-Reef at Steyn Number 3
Shaft due to outliers in the grade distribution and changes in the depletion
schedule of Long Term Plan.

    Gross Attributable Mineral Resources (measured, indicated and inferred)
    at 31 December 2006 (see notes 3, 4, 6, 8)

    -------------------------------------------------------------------------
                                Measured Mineral           Indicated Mineral
                                       Resources                   Resources
    -------------------------------------------------------------------------
                    Tonnes    Grade    Contained    Tonnes  Grade  Contained
                  millions      g/t           Oz  millions    g/t         Oz
                                       (millions)                  (millions)
    -------------------------------------------------------------------------
    Gold
    -------------------------------------------------------------------------
    No 1 shaft        4.23       7.9      1.07      3.02       7.4      0.72
    -------------------------------------------------------------------------
    No 2 Shaft        3.00      10.3      0.99      1.35      11.8      0.51
    -------------------------------------------------------------------------
    No 3 Shaft        6.69       7.4      1.59     14.68       7.5      3.52
    -------------------------------------------------------------------------
    No 9 Shaft        0.71      8.90      0.29      2.06     11.33      0.75
    -------------------------------------------------------------------------
    Total PSGM        15.1       8.4      4.07      21.7       8.2      5.72
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                      Total Measured and Indicated          Inferred Mineral
                                 Mineral Resources                 Resources
    -------------------------------------------------------------------------
                Tonnes    Grade Contained Recovery   Tonnes   Grade Contained
              millions      g/t       Oz         % millions     g/t       Oz
                                millions                            millions
    -------------------------------------------------------------------------
    Gold
    -------------------------------------------------------------------------
    No 1 shaft    7.25      7.7     1.78     95.0%    1.54      6.1     0.30
    -------------------------------------------------------------------------
    No 2 Shaft    4.36     10.8     1.51     95.0%    1.02      7.8     0.25
    -------------------------------------------------------------------------
    No 3 Shaft   21.37      7.4     5.11     95.0%    9.32      5.8     1.74
    -------------------------------------------------------------------------
    No 9 Shaft    2.77    11.65     1.04     95.0%       0        0        0
    -------------------------------------------------------------------------
    Total PSGM    36.8      8.3     9.79     95.0%    11.9      6.0     2.29
    -------------------------------------------------------------------------


    Net Attributable Resources (measured, indicated and inferred) at
    31 December 2006 (see notes 3, 4, 6, 7, 8)

    -------------------------------------------------------------------------
                              Measured Mineral             Indicated Mineral
                                     Resources                     Resources
    -------------------------------------------------------------------------
                    Tonnes     Grade Contained    Tonnes     Grade Contained
                  millions       g/t        Oz  millions       g/t        Oz
                                     (millions)                    (millions)
    -------------------------------------------------------------------------
    Gold
    -------------------------------------------------------------------------
    Total PSGM       12.84       8.4      3.46     18.45       8.2      4.86
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                      Total Measured and Indicated          Inferred Mineral
                                 Mineral Resources                 Resources
    -------------------------------------------------------------------------
                Tonnes    Grade Contained Recovery   Tonnes   Grade Containe
              millions      g/t       Oz         % millions     g/t       Oz
                                millions                            millions
    -------------------------------------------------------------------------
    Gold
    -------------------------------------------------------------------------
    Total PSGM   31.28      8.3     8.32     95.0%   10.12      6.0     1.95
    -------------------------------------------------------------------------


    Notes to the Mineral Reserves, Reconciliation of Mineral Reserves,
    Mineral Resources and Mineral Resources

    (1) PSGM's mineral reserves were estimated as at December 31, 2006 and
        defined to include only those reserves that are included in PSGM's
        Long Term Plan ("LTP"). PSGM's LTP was modeled on a shaft-by-shaft
        basis assuming a long term gold price of $550 per oz at an assumed
        exchange rate of ZAR: US $ of 7.35. In the opinion of the independent
        qualified persons the financial model represents, within a reasonable
        degree of confidence, the likely future production levels and
        associated costs applicable to PSGM aand that the reserves as
        quantified in the LTP are realistic. The qualified persons
        responsible for mineral resource and reserve estimates are identified
        under note 7. Independent data verification has been performed by the
        third party firms for PSGM. Thistle is not aware of any
        environmental, permitting, legal, title, taxation, socio-political,
        marketing or other relevant issues which may materially affect
        Thistle's mineral reserve and mineral resource estimates, other than
        the factors discussed in Thistle's 2005 Annual Information Form
        publicly available at www.sedar.com.
    (2) The terms "mineral reserve", "proven mineral reserve" and "probable
        mineral reserve" conform to CIM definitions of those terms as at the
        effective date of estimation, as required by NI 43-101.
    (3) Mineral resources are in addition to mineral reserves and have been
        estimated as at December 31, 2006 using a cut off of 3.0 g/tonne. The
        qualified person responsible for mineral resource estimates is
        identified under note 7. Consistent with Thistle's mineral resource
        estimation practices, independent data verification has been
        performed by third party firms.
    (4) The terms "mineral resource", "measured mineral resource", "indicated
        mineral resource" and "inferred mineral resource" conform to CIM
        definitions of those terms as at the effective date of estimation, as
        required by NI 43-101. Mineral resources that are not mineral
        reserves do not have demonstrated economic viability.
    (5) Based on the 2006 recovery percentage for PSGM.
    (6) Increase (decrease) in mineral reserves resulted from exploration
        success or reclassifications between mineral resources and mineral
        reserves, changes due to geological remodelling and mine planning,
        changes in currency exchange rates and costs of input commodities and
        the impact of an increase in the average long-term gold price.
    (7) On December 12, 2006 the Company announce that Mindserv Limited, a
        wholly owned South African subsidiary of the Company that owns PSGM
        has concluded a shareholders agreement with Iningi Investments 167
        (Pty) Ltd ("Iningi") (to be renamed Lefa La Gauta Pty Ltd) a broad-
        based black economic empowerment ("BEE") consortium pursuant to which
        Iningi will acquire an initial 15% equity stake in PSGM.
    (8) Thistle's mineral reserve and mineral resource estimates are based on
        information prepared by or under the supervision of a "qualified
        person", as that term is defined in NI 43-101. The qualified persons
        responsible for Thistle's PSGM mineral reserve and mineral resource
        estimates as at December 31, 2006 listed below are independent of the
        Company for the purposes of NI 43-101 and were at the time the
        estimates were prepared consultants. Both qualified persons have no
        direct vested interests in any tenements adjoining PSGM. In
        estimating the applicable mineral reserves and mineral resources, the
        qualified person has used assumptions, parameters and methods
        appropriate for PSGM and has verified the underlying data as
        appropriate in his professional opinion (including sampling,
        analytical and test data). The credentials of Messrs. Camden Smith
        and Graham Stripp are included below.

    -------------------------------------------------------------------------
    Mineral Resources and Mineral Reserves excluding Mineral Reserves at
    No 9 Shaft PSGM
    -------------------------------------------------------------------------
    Name and
    email address                  Company, Location
    -------------------------------------------------------------------------
    Peter Camden Smith             Camden-Geoserve, South Africa, 36 Slater
    geoserve@icon.co.za         Street, Parkrand, 1460, South Africa
                                   (Telephone +27 11 913 0522)
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Mineral Reserves at No 9 Shaft PSGM
    -------------------------------------------------------------------------
    Name and
    email address                  Company, Location
    -------------------------------------------------------------------------
    Graham Peter Stripp            Independent Consultant, 36 Rooibekkie
    gpstripp@mweb.co.za         Avenue
                                   Presidents Dam; Springs; Gauteng1560
                                   (Telephone +27 832675551)
    ------------------------------------------------------------------------
    

    P.M. Camden -Smith has been the appointed Competent Person for the entire
PSGM resource base and is also responsible for the reserves of the operational
shafts. His qualifications include a M.Sc. (U.C.T) 1980, G.D. Eng. (Wits) 1985
and a M.B.L. (Unisa) 1996. He is registered as a Professional Natural
Scientist (40078/94) as defined by Section 11 of the Natural Scientific
Professions Act, 1993. Witwatersrand Basin gold mine orientated Competent
Persons Reports (CPR) completed by P.M. Camde n-Smith, the Principle Member of
Camden Geoserve cc, over the last few years includes those for PSGM, Petrex
Limited, East Rand Proprietary Mines, Crown Consolidated and Afrikaander
Leases, Limited.
    Dr Graham Stripp is an independent consulting mining engineer and
graduated from the University of Wales in 1983 with a B.Sc (Hons) Degree in
mining engineering. He completed an M.Sc in the field of mining engineering
from the University of Newcastle upon Tyne, England, in 1985 and a P.hD in the
field of mining engineering from the University of the Witwatersrand, South
Africa, in 1989. He is a Fellow of the South African Institute of Mining and
Metallurgy.
    For additional information relating to the Resources and Reserves titled
"43-101 document for the President Steyn Gold Mine situated in the
Witwatersrand Basin, Free State Gold Field, South Africa, dated January 28,
2007 which is available to the public at www.sedar.com.

    This news release contains forward-looking statements with the meaning of
applicable securities laws including amongst others, statements made or
implied under the headings "Golden Triangle Feasibility Study- Highlights",
"PSGM Mineral Reserves and Mineral Resources Statement" above relating to the
Company's objectives, strategies to achieve these objectives, future cash flow
and financing requirements, and similar statements concerning anticipated
future events, results, circumstances, performance or expectations that are
not historical facts. Such forward-looking statements reflect the Company's
current beliefs and are based on information currently available to
management. These statements are not guarantees of future performance and are
based on the Company's estimates and assumptions that are subject to risk and
uncertainties inherent in the business of the Company including those
discussed in the Company's materials filed with the Canadian securities
regulatory authorities from time to time, which could cause the actual results
and performance of the Company to differ materially from the forward-looking
statements contained in this news release. Those risks and uncertainties
include, among other things, risks related to: the mining industry (including
operational risks in exploration development and production; delays or changes
in plans with respect to exploration or development projects or capital
expenditures; the uncertainties involved in the discovery and delineation of
mineral deposits, resources or reserves; the uncertainty of mineral resource
and mineral reserve estimates and the ability to economically exploit mineral
resources and mineral reserves; the uncertainty of estimates and projections
in relation to production, costs and expenses; the uncertainty surrounding the
ability of the Company to obtain all permits, consents and authorizations
required for its operations and activities; competition for the acquisition,
exploration and development of mineral interests; and health and safety and
environmental risks), the risk of gold and other commodity price and foreign
exchange rate fluctuations; the ability of the Company to fund the capital and
operating expenses necessary to achieve the business objectives of the
Company; the uncertainty associated with commercial negotiations and
negotiating with foreign governments; the risks associated with international
business activities; the dependence on key personnel; the ability to access
capital markets; the indebtedness of the Company; and labor relations matters.
Material factors or assumptions that were applied in drawing a conclusion or
making an estimate set out in the forward-looking statements include that the
general economy remains stable, the demand and price of gold continues to
increase and the Rand remains strong against the US$. It is also assumed that
there will be no major disruptions in production including failure of
infrastructure, seismic activity, underground fires and labor unrest. The
Company cautions that this list of factors is not exhaustive. Although the
forward-looking statements contained in this news release are based upon what
the Company believes are reasonable assumptions, there can be no assurance
that actual results will be consistent with these forward-looking statements.
All forward-looking statements in this news release are qualified by these
cautionary statements. These forward-looking statements are made as of the
date hereof and the Company, except as required by applicable law, assumes no
obligation to update or revise them to reflect new information or the
occurrence of future events or circumstances.





For further information:

For further information: Andy Graetz, Chief Financial Officer at + 27 82
929 5562 or email to agraetz@disselgroup.com; Gerry Beaney, Grant Thornton
Corporate Finance at +44 (0) 207 383 5100

Organization Profile

THISTLE MINING INC.

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