Thistle ups Steyn resource (May 17, 2004)

Thistle Mining (THT-T) has increased resources at its President Steyn gold mine, 280 km south of Johannesburg, South Africa.

The additional resource is in two areas of the Eldorado Massives zone. Known as Projects 11 and 12, these have a measured and indicated resource of about 1 million tonnes grading 7.11 grams gold per tonne, equivalent to 230,000 oz. gold. The estimate, prepared by consulting firm Camden Geoserve of South Africa, used a cutoff grade of 4 grams gold per tonne. The total probable resource is equivalent to about 65,000 contained ounces gold.

Meanwhile, plans to develop the Project 10 area are nearly complete. Project 10 has an estimated measured and indicated resource of 601,000 tonnes grading 7.88 grams gold, equivalent to roughly 152,000 oz. gold in total. In addition, there is a probable resource of 367,000 tonnes grading 6.33 grams gold.

A recent discovery, known as the Distal Eldorado, has a total measured and indicated resource of 550,000 tonnes grading 5.69 grams gold per tonne, equivalent to 101,000 oz. gold. Distal Eldorado also has an initial inferred resource of 3.6 million tonnes grading 6.24 grams gold, resulting in a combined total resource equivalent to 830,000 oz. gold. Gold is associated with reefs found in the Eldorado Formation.

Thistle’s South African operations sold 176,918 oz. gold in 2003; 1.3 million tonnes of ore grading 4.26 grams gold were hoisted.

An underground fire at President Steyn last summer reduced production by some 20,000 oz. Mining was shifted to lower-grade areas unaffected by the fire.

The strength of the South African rand, combined with higher wages secured by miners in contract negotiations, increased cash costs in 2003, resulting in an operating loss of US$17.7 million. In the previous year, Thistle reported an operating profit of $4.9 million.Thistle completed the takeover of President Steyn Gold Mines in April 2003.