Central Rand Gold shares get pumped up

Central Rand Gold was boosted by news that water drainage problems, which have plagued the firm in the Central Basin, were a step closer to being solved.

Central Rand Gold was boosted by news that water drainage problems, which have plagued the firm in the Central Basin, were a step closer to being solved.

The business said it had signed deal to donate pumps to the Trans Caledon Tunnel Authority for the planned construction of a new High Density Sludge Treatment Plant for the Central Basin.

Construction of the treatment plant is scheduled to commence on January 8th 2013.

Last year the company temporarily lost its mining rights in the Central Basin after failing to overcome problems with the rising water table.

The pumps will provide the means to contain the rising water table below the Environmental Critical Level of 186 metres below surface (mbs), Central Rand said.

In addition, the pumps and the treatment plant will further enable Central Rand Gold to gradually dewater the Central Basin, at an incremental operating cost, to the maximum operating depth of the pumps of 400mbs.

Despite the pumps' operating capacity being limited to 400mbs, the agreement gives the company the option to undertake further dewatering activities.

This would allow the "liberation" of its resources lying below the 400mbs level, as future mining operations may dictate, the business said.

Shares were up 9.8% at 11:00 following the news.

Recommended

Share tips of the week - 12 August
Share tips

Share tips of the week - 12 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
12 Aug 2022
Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022

Most Popular

Are UK house prices set to fall? It’s not so simple
House prices

Are UK house prices set to fall? It’s not so simple

Figures suggest UK house prices are starting to slide, but we shouldn’t take these numbers at face value, explains Rupert Hargreaves.
11 Aug 2022
Is gold cheap relative to equities?
Gold price

Is gold cheap relative to equities?

Dominic Frisby looks at the Dow-gold ratio and explains why gold is starting to appear inexpensive compared to equities.
12 Aug 2022
Share tips of the week - 12 August
Share tips

Share tips of the week - 12 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
12 Aug 2022