GVM (Ticker : GVM), the mineral processing and coal mining...

GVM (Ticker : GVM), the mineral processing and coal mining company announces today the results of the Holfontein Scoping Study.

HIGHLIGHTS

· Holfontein Coal Project contains an indicated gross in situ coal resource of 56 million tons

· The Scoping Study was based on mining of 140,000 tons per month yielding 870,000 tons of steaming coal and 420,000 tons of coking coal per annum. At today’s prices this equates to an annual revenue of
approximately 200 million Rand or AUS$40 million.

· The Project shows an IRR of 41% and GVM’s 49% interest has a NPV of AUS$19million using a 10% discount rate and a Rand/AUS$ exchange rate of 5 to 1

GVM appointed BRSW Mining Consultants to carry out a Scoping Study of the Holfontein Coal Project in the Evander District of Mpumalanga, South Africa. The scope of work included selecting the seams to be mined using the most appropriate mining methods and designing a fit for purpose infrastructure.

It is planned to mine 140,000 tons of coal per month, employing approximately 250 people to carry out the task. The run of mine number 4 Seam coal will be road hauled to an Eskom power station and the number 5 Seam coal will be beneficiated on site and dispatched to inland and export markets.

Commenting today, Simon Farrell, Managing Director of GVM Metals said: “The Board is very encouraged by the results of the study and intends progressing the Bankable Feasibility Study as soon as the new mining titles are issued. The Board has been advised by our partners Motjoli Pty Ltd that they expect to receive the new titles in either January or February of 2006.”

Access to the mine will be by way of twin downcast 9° decline shafts. One shaft 4m x 3m for equipment and material with another 3m x 3m for aconveyor belt and personnel access. These two declines will be placed 10m
apart to immediately comply with second outlet requirements.