Thistle Mining Inc - News Release
Thistle records more reserves at President Steyn mine
Thistle Mining Inc THT
Shares issued 94,872,625 Apr 26 2002 close $.680
Friday Apr 26 2002 News Release
Mr. Willie McLucas reports
THISTLE ANNOUNCES INCREASE IN RESERVES AT PRESIDENT STEYN MIN ...
Thistle Mining has recorded a significant increase in its mineral reserves and mineral resources at its recently acquired President Steyn gold mine complex in the Free State gold region of South Africa.
In comparison with the reserve and resources reported by the former owners of the mines, at the end of 2001, the in situ gold reserves have increased over the same period from 2.6 million to 4.17 million ounces. The recoverable gold reserves (as confirmed by Thistle's independent qualified person) have increased from 1.7 million to 2.5 million ounces.
As at April 24, 2002, current ore reserves and mineral resources at all five shafts at the President Steyn complex are as follows:
ORE RESERVES
Gold
recovered
Tons Grade (millions
(millions) (gm/ton) of oz)
Proven 6.26 5.42 1.1
Probable 9.39 4.64 1.4
Total 15.65 4.95 2.5
MINERAL RESOURCES (1)(2)
Gold in situ
Tons Grade (millions
(millions) (gm/ton) of oz.)
Measured 21.1 8.95 6.07
Indicated 16.97 8.36 4.56
Total 38.1 8.7 10.6
(1) Includes proven and probable reserves.
(2) Mineral resources which are not mineral reserves do not have demonstrated economic viability.
Additional inferred resources of 37.7 million tons grading 7.63 grams/ton gold, estimated to contain approximately 7.96 million ounces of gold in situ, have also been identified.
"We are pleased with this important development at our new South African project," said William McLucas, Thistle's president and chief executive officer. "This is an important step forward in the realization of Thistle's strategic plan to become a significant world gold producer."
The new reserve and resource figures detailed above have been reviewed, audited and confirmed by Thistle's independent geological and mining consultant, Peter. M. Camden-Smith, (MSc (U.C.T); GDEng (Univ. Wits.); MBI (UNISA); Pr. Sci. Nat.). Mr. Camden-Smith has previously audited and reported on mineral reserves and mineral resources at the President Steyn mines for its former owners and in such capacity acted as the "competent person" in accordance with the mining disclosure standards of the Johannesburg Securities Exchange. Mr. Camden-Smith is a "qualified person" in accordance with the standards of disclosure for mineral projects in Canada. The above reserves and resources have been calculated in accordance with the definitions and classification system, developed by the South African Mineral Resource Committee of the South African Institute of Mining and Metallurgy and known as the SAMREC Code, which is the standard applicable to mineral disclosure by public mining companies in South Africa. Mr. Camden-Smith has confirmed that these definitions and classifications are substantially the same as the definitions and classification system as the Canadian Institute of Mining Metallurgy and Petroleum (CIM) standards on mineral resources and reserves definitions and guidelines adopted by the Council of the Canadian Institute of Mining, Metallurgy and Petroleum on Aug. 20, 2002.
Thistle also announces that the Kuwait Fund for Arab Economic Development (KFAED) and International Civil Company (ICC) have both converted the principal and all-accrued interest on their loans into common shares and warrants of Thistle. The KFAED loan, which was due on April 18, 2003, was in the principal amount of $750,000 (U.S.) ($1,194,975 (Canadian)) and bore interest at 8-1/2 per cent per year. The principal and interest were converted into 3,834,883 common shares and 809,572 warrants. The ICC loan, which was due on April 30, 2003, was in the principal amount of $755,600 and also bore interest at 8-1/2 per cent per year. It was converted into 2,418,820 common shares and 539,715 warrants. Each warrant is exercisable into one common share at 70 cents per share up to March 30, 2007.
Thistle's liquidity and cash resources were also significantly enhanced by the exercise of the 10.5 million warrants, which were held by Resources Investment Trust PLC. The exercise of these warrants provided Thistle with an additional $2,625,000.
"By converting the principal and interest of these loan notes, Thistle has in effect removed in excess of $2-million of debt from its balance sheet. This, together with the gross proceeds of $2,625,000 from the exercise of the warrants, has significantly strengthened Thistle's balance sheet," said Willie McLucas.
Thistle has also repaid the first quarterly instalment of its secured debt facility from Standard Bank of London and has fully financed its debt service reserve account in an amount equal to a further quarterly debt repayment.
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