Miranda regains prospecting right over Rozynenbosch

Miranda Mineral Holdings has regained a prospecting right over the multi-metal Rozynenbosch property after the Department of Mineral Resources initially declined to convert an old-order right over the property.

Miranda successfully appealed against the decision and has secured a new-order prospecting right.

Miranda started the appeal process in July 2006. It de-recognised the prospect in 2011‚ taking it off its balance sheet and reducing Miranda’s net asset value by about R284m.

The matter had become complicated‚ Miranda noted in its 2011 annual report‚ pointing out that a third party had been granted a prospecting right over the property despite a decision over Miranda’s application for a similar right being undecided.

Miranda will now review the lead‚ silver‚ zinc and copper deposit in the Northern Cape.

In February 2006‚ the value of the project in Miranda was R284m “based on a royalty payment linked to discounted revenue participation.”

This model included commodity prices and exchange rates forecast for the life of the mine.

Those price and exchange rate assumptions will have to be updated‚ with the market changing dramatically in the past seven years with the onset of the global financial crisis in 2008.

There is a code-compliant resource at the project and there are an estimated 14-million tons of mineral-bearing material.

“The executive management is currently undertaking a review of the valuation model and shareholders will be informed of the outcome thereof in due course‚” Miranda said.

Miranda’s MD‚ Mick Cook‚ was unavailable for comment on Tuesday.