execution of greater tgme mining right.pdf

7/27/2019 EXECUTION OF GREATER TGME MINING RIGHT.pdf

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25 October 2013

Australian Securities ExchangeLevel 5, 20 Bridge StreetSYDNEY NSW 2000

ASX ANNOUNCEMENT

EXECUTION OF GREATER TGME MINING RIGHT

HIGHLIGHTS TGME executes Greater TGME New Order Mining Right

4 out of 8 New Order Mining Rights held by TGME, Sabie Mines

and Bosveld Mines now executed

EXECUTION OF GREATER TGMR MINING RIGHTStonewall Resources Limited (ASX: SWJ)(Stonewall) is pleased toannounce that, on the 16

thof October 2013, the Department of Mineral

Resources in South Africa executed Transvaal Gold Mining Estates Ltd(TGME) a mining right (MP MR 83) for the Greater TGME area.TGME is a subsidiary of Stonewall Mining which has now been granted atotal of eight (8) new order mining rights of which four (4) have beenexecuted.

The execution of a granted mining right in South Africa means that the legalpermission is given by the Department of Mineral Resources to proceedwith physical mining activities as defined in the Mining Works Program andthat all other legal requirements, such as rehabilitation guarantees, havebeen met.

In addition to the eight (8) New Order Mining Rights, Stonewall Mining also

has six (6) New Order Prospecting Rights.

In commenting on the execution of the New Order Mining Right, CEO, Lloyd Birrell said:The execution of MR 83 presents the opportunity for us to recommission these historical mines as part ofthe Stonewall Mining future roll out strategy. The mines in the Greater TGME mining area have the samecharacteristics of our current projects namely easily accessible reefs and are susceptible to the TGMEMetallurgical process flow. The strategy of a rapid rollout of low Capex mines feeding concentrate to acentral plant is now ready for implementation. In addition, the discovery of reef residue in certain areas ofthese mines allows for the commencement of mining without development, drilling and blasting. We alsobelieve that the socio-economic impact of reopening these mines will be positive for the region.

MARKET DATAASX code: SWJ

Current share price: $0.14

Total free floating shares: 212 million

Total restricted shares: 260 million

South African shares: 80 million

Total shares: 552 million

DIRECTORS & SENIOR MANAGEMENT

David Murray, ChairmanTrevor Fourie, DirectorNathan Taylor, DirectorLiu Yang, Director

Andrew Macintosh, DirectorLloyd Birrell, CEO

MAJOR SHAREHOLDERS

Khan International LimitedSalamanca Ventures LimitedMurray SA Investment (Pty) LtdHanhong New Energy Holdings Ltd


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Mining AreaThe Greater TGME Mining Right extends over a total area of 9,413 Ha. The right covers the area from thefarm Frankfort 509KT through Krugershoop 527KT, Van der Merwes Reef 526KT, Morgenzon 525KT to theSouth and then finally includes the farm Ponieskrans 543KT. Ponieskrans is the farm on which the miningtown of Pilgrims Rest was established in 1892. TGME was also established on this farm when numeroussmaller mining concessions where consolidated at the turn of the 19

thcentury.

There are sixteen (16) historic mines in the mining area covered by the Greater TGME Mining Right of whichfour (4) are being evaluated and earmarked for recommissioning in the near future. One of these mines isthe Beta Mine for which a concept study undertaken by Minxcon yielded an Internal Rate of Return of 709%.

Execution of Other Mining RightsThe Glynns Lydenburg Mining Right (MP MR 433) which was granted earlier this year to Sabie Mines is due

for execution before the end of the year.Thereafter, the remaining two (2) mining rights granted but not executed, namely the Beta Mining Right andthe Pilgrims Trend Deposits Mining Right will be consolidated into the Greater TGME Mining Right (MR 83) through a Section 102 process allowed for in the Mineral Petroleum and Resources Development Act ofSouth Africa. This action then allows at least another six (6) mines to be recommissioned.

Stonewall Minings third subsidiary, Bosveld Mines, has also been awarded the conversion of an Old Orderto New Order Mining Right earlier this year. Execution of this New Order Right is eminent.

ABOUT STONEWALL RESOURCES LIMITED

Stonewall Resources Limited (ASX: SWJ) is a gold mining company making the transition from explorer to

producer. The Company holds a range of prospective gold assets, most of which are located in the world-renowned South African gold mining regions. These South African assets, which include several surface and

near-surface gold mineralisations, provide cost advantages relative to other gold producers in the region.

With significant infrastructure already in place, Stonewall is uniquely positioned to make the transition to

producer through highly efficient utilization of capital and within short lead times.

Stonewalls three key projects are the TGME Project, located around the towns of Pilgrims Rest and Sabie

in the Mpumalanga Province of South Africa (one of South Africas oldest gold mining d istricts), the Bosveld

Project, located in South Africas KwaZulu-Natal Province, and the Lucky Draw Project, located in

Australia, near the township of Burraga in New South Wales. Stonewall owns 74% of TGME, Sabie Mines

and Bosveld Mines.

The Companys exploration program is designed to identify additional potential Mineral Resources toestablish long-term mining plans.

Stonewall is currently processing gold from two underground mines at TGME and a tailings operation at

Bosveld Projects, from which it is earning revenue and aims to introduce two additional near term production

targets during 2013.

For more information please visit:www.stonewallresources.com
http://www.stonewallresources.com/http://www.stonewallresources.com/http://www.stonewallresources.com/http://www.stonewallresources.com/


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For further information please contact:Trevor Fourie, Director

Stonewall Resources Limited

E: [email protected]

Rod North, Managing Director

Bourse Communications Pty Ltd

T: (03) 9510 8309 M: 0408 670 706

E: [email protected]

On behalf of the Board

Peter HuntCompany Secretary

Competent Persons Statement

The information in this Presentation that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Charles

Muller, who is a Member or Fellow of the South African Council for Natural Scientific Professions, which is a Recognised Overseas Professional

Organisation (ROPO) included in a list promulgated by the ASX from time to time. Charles Muller is employed by Minxcon and h as sufficient experience

which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent

Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Charles Muller

consents to the inclusion in this Presentation of the matters based on his information in the form and context in which it appears.

Forward looking statements

Statements in this announcement regarding the Companys plans with respect to its mineral properties are or may be forward-looking statements. There

can be no assurance that the plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that theCompany will be able to convert Inferred resources to Indicated resources or Indicated resources to Measured resources, that any mineralisation will prove

to be economic, or that a mine will successfully be developed at any of the Companys min eral properties. The potential quantity and grade of exploration

targets is conceptual in nature at this stage as there has been insufficient exploration to define a Mineral Resource quantit y under the JORC code. Further,

it is uncertain if future exploration will result in the determination of a Mineral Resource.

execution of greater tgme mining right.pdf

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