Thistle granted two South Africa mining licences

South Africa’s Department of Minerals and Energy has granted Thistle Mining (THT-T) two new mining authorizations that run until July 9, 2015.

The new permits replace the existing 3-month, renewable mining authorizations Thistle’s mines have been operating under. However, Thistle will have to apply within 5 years to convert permits into new 30-year mining rights under the South African Mineral and Petroleum Resources Development Bill, which is expected to be enacted by year’s end.

To do so, Thistle says it must, “demonstrate its plans and strategies to fulfill the social objectives of this new legislation including social upliftment and black empowerment.”

Earlier this year, Thistle acquired five underground gold mines in the Free State of South Africa for US$32 million in cash, plus a monthly royalty of US$8 per oz. gold for five years.

Among the assets are the company Mindserv and its wholly owned subsidiary, President Steyn Gold Mines (Free State), which operates the mines.

In the third quarter of 2001, President Steyn Gold Mines produced 45,597 oz. at a cash cost of US$213 per oz. The company realized a price of US$247.83 per oz. During the first nine months of 2001, production tallied to 134,743 oz. at an average cost of US$218 per oz.

In April, Thistle reported an independent estimate of recoverable ore reserves at the mines of 15.6 million tonnes running 4.95 grams gold per tonne for 2.5 million contained oz. of gold. Total resources, including reserves, run 38.1 million tonnes of 8.7 grams gold, and another 37.7 million tonnes of inferred material averages 7.6 grams gold.