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Lyttelton Dolomite Centurion Mine resource update
Infrasors Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2007/002405/06);
Share code: IRA
ISIN: ZAE000101507
("Infrasors")
LYTTELTON DOLOMITE: Lyttelton Dolomite Centurion Mine – New Order
Mine Right Executed and Life of Mine Increase to 50 years and
Related Lyttelton Expansion programme ("Lyttleton 2")
Lyttelton Dolomite Proprietary Limited (“Lyttelton”), a wholly owned
subsidiary of Infrasors, comprising the Lyttelton Centurion and the
Marble Hall Mines. Lyttelton conducts opencast mining of a dolomite
ore-bodies supported by the beneficiation process of crushing,
washing, sizing and milling.
The dolomite products are beneficiated for the following markets:
- Metallurgical grade dolomite for the use in the iron and steel
industry;
- Metallurgical grade dolomite with higher silica content
(“construction dolomite”) for use in the production of reinforced
concrete and related products for the construction industry;
- Metallurgical dolomite stone dust for the coal industry;
- Powders for the chemical and agricultural industries.
LYTTELTON CENTURION MINE – CONVERTED NEW ORDER MINE RIGHT EXECUTED
In accordance with the Minerals and Petroleum Resources Development
Act (MPRDA), Lyttelton applied on 10 March 2009 to The Department of
Mineral Resources for the conversion of the Old Order Mining License
into a New Order Mining Right for the Lyttelton Centurion Mine.
The New Order Mining Right to mine dolomite at the centrally located
Lyttelton Centurion Mine was executed on 7 August 2012. The New
Order Mining Right remains valid for thirty years, at which time the
mine has sole right to apply for an extension to mine the remaining
minerals on hand.
LYTTELTON CENTURION MINE – LIFE OF MINE (“LOM”) INCREASE
The mineral resources and mineral reserves at the Lyttelton
Centurion Mine have increased due to the following reasons:
a) A revision of the pit design to extract minerals from areas
previously excluded; and
b) An extension to the mine footprint to allow mining on the
extended area.
The mine pit revision was conducted by the competent geologist:
Perold Earth Science Services.
As a result the dolomite resources have increased to 80.1 million
tons (“Mt”). 11.3 Mt represents metallurgical grade dolomite for the
iron, steel, coal and chemical industries and 69.9 Mt for the
construction industry. The construction dolomite resources have
increased since 2007 from a total of 13.9 Mt to the current total of
69.9 Mt. During the period since listing in 2007 construction
dolomite resources used in production has been 6.1 Mt.
The proved and probable dolomite reserves now consists of 11.2 Mt of
metallurgical dolomite, and 57.2 Mt of construction dolomite.
The total LOM of the Lyttelton Centurion Mine is currently
calculated to be in excess of 50 years and the metallurgical grade
component LOM is expected to be in excess of 20 years.
The Lyttelton Centurion Mine’s Mineral Resources and Mineral
Reserves statement at 30 June 2012 is as follows:
DOLOMITE RESOURCES AND RESERVES
MINERAL RESOURCES 2012 2011 2007
Operation Resource Metallur- Construc- Metallur- Construc- Metallur- Construc-
Category gical tion gical tion gical tion
Dolomite Dolomite Dolomite Dolomite Dolomite Dolomite
Mt Mt Mt Mt Mt Mt
Centurion Inferred - 12.614 - 0.924 - -
Mine Indicated 0.257 53.133 - 39.420 - 4.79
Measured 10.978 4.109 8.350 5.170 - 9.20
Grand Total 11.235 69.855 8.350 45.514 - 13.99
Mineral Resources are inclusive of Mineral Reserves
MINERAL RESERVES 2012 2011 2007
Operation Reserve Metallur- Construc- Metallur- Construc- Metallur- Construc
Category gical tion gical tion gical tion
Dolomite Dolomite Dolomite Dolomite Dolomite Dolomite
Mt Mt Mt Mt Mt Mt
Centurion Probable 0.257 53.133 - 39.420 - 4.79
Mine Proved 10.978 4.109 8.350 5.170 - 9.20
Grand Total l 11.235 57.242 8.350 44.590 - 13.99
Perold Earth Science Services has estimated Mineral Resources and
Mineral Reserves for the mining operations of Infrasors in
accordance with the South African Code for the Reporting of Mineral
Resources and Mineral Reserves (the SAMREC Code, 2007 edition as
amended July 2009).
The Mineral Resources and Mineral Reserves statement as at
30 June 2007 was compiled by the competent person L Nel (Msc)(AEP),
Department of Geology, University of the Free State, and was
included in the Pre-Listing Statement issued in July 2007. The
Mineral Resources and Mineral Reserves statement as at 30 June 2007
is included to illustrate the increase in Mineral Resource since
then. Infrasors subsequently embarked on an exploration and mine
redesign programme aimed at increasing the mining asset, which
resulted in the increase of the LOM from the 11.7 years on 30 June
2007 to a current LOM in excess of 50 years at 30 June 2012.
LYTTELTON 2 – EXPANSION PLAN
As a result of the approval and execution of the New Order Mining
Right for the Lyttelton Centurion Mine, and the associated increase
in the Mineral Resources and Mineral Reserves, Lyttelton proposes to
introduce the Lyttelton 2 project that will improve and increase its
production capacity in order to:-
- further mechanise the mine beneficiation processes;
- reduce costs per ton of finished beneficiated product due to inter
alia economies of scale;
- enhance the spread and recovery of fixed costs over broader mining
and beneficiation volumes;
- increase beneficiation capacity by up to 50%;
- separate out the beneficiated metallurgical dolomite products and
stockpiles for the iron, steel, chemical and coal industries;
- build strategic stock piles of finished product to:-
- facilitate forward sales;
- ensure continuity of supply in production downtime periods (such
as planned routine maintenance and Christmas close-down);
- provide greater flexibility for maintenance, shut downs of
production lines;
- minimise unplanned maintenance shut downs and unplanned production
interruptions;
- provide continuity of available products to its customers; and
- increase market share.
A portion of metallurgical minerals are currently sold into the
construction dolomite market due to the limitations on the current
beneficiation process. With the implementation of the Lyttelton 2
project the metallurgical beneficiation process will be improved and
increased thereby maximising the metallurgical grade component for
the iron steel, coal and chemical markets. By adding the Lyttelton 2
beneficiation plant the LOM serving the metallurgical market will
increase to approximately 22 years.
The Lyttelton 2 project will position the mine for future
infrastructure growth with the ability to be a low cost producer.
By order of the Board of Infrasors Holdings Limited
T.R Robinson
Chief Executive Officer
16 August 2012
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
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