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Reporting On Bakubung Platinum Mine Mineral Resources
WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2003/020161/06
Share code: WEZ
ISIN number: ZAE000075859
(‘‘Wesizwe’’ or ‘‘the Company’’)
REPORTING ON BAKUBUNG PLATINUM MINE MINERAL RESOURCES
The following section of the JSE Listing Requirements
regarding the minimum contents of Annual Reports (Mineral
Companies) refers:
Section 12.11 iii (7) - description of the methods and
the key assumptions and parameters by which the Mineral
Resources and Mineral Reserves were estimated and
classified.
Shareholders are referred to the disclosure in the
Company’s 2016 Integrated Annual report dealing with key
assumptions and parameters utilised during the
classification of Mineral Resources and estimation of
Mineral Reserves. Certain disclosure items were omitted
in error by Wesizwe’s Competent Person. The full
information can be accessed on the Company’s website
www.wesizwe.com under the Projects section.
Wesizwe will never willfully omit or withhold material
information from the JSE and other stakeholders and
therefore seeks to correct any misconception that might
have arose from not disclosing information pertaining to
Section 12.11 iii (7) through the issuing of this SENS
announcement.
MINERAL RESOURCE CLASSIFICATION
DEFINITION
A ‘Mineral Resource’ is a concentration or occurrence of
solid material of economic interest in or on the Earth’s
crust in such form, grade or quality and quantity that
there are reasonable prospects for eventual economic
extraction. The location, quantity, grade, continuity
and other geological characteristics of a Mineral
Resource are known, estimated or interpreted from
specific geological evidence and knowledge, including
sampling.
Mineral Resources are subdivided, and must be so
reported, in order of increasing confidence in respect
of geoscientific evidence, into Inferred, Indicated or
Measured categories.
The following considerations have been employed in the
final classification of the Mineral Resources.
STRUCTURE: The position and nature of structural
discontinuities (faults, dykes, IRUP, sills, potholes)
are well defined through a total of 173 boreholes and a
detailed 3D-Seismic survey. Cognizance is taken of the
local structural complexity before upgrading any blocks
to the Indicated or Measured category.
BOUNDARY CONDITIONS: An overriding consideration is
taken of the risk associated with the confidence of the
boundary of the facies types before upgrading blocks from
Inferred to Indicated Mineral Resources. Kriging
Efficiency (KE) has been chosen as the guideline for
classification over other more stringent methods
previously applied to this project due to the support
given by the geological continuity of the two reefs from
the 3D seismic survey.
CLASSIFICATION PROCESS: Due to either a lack of data
density or the effect of structure certain blocks within
both the Merensky and UG2 Reef, certain blocks remain in
the Inferred category. Reef Blocks with a KE > 0.3 are
deemed to be in the Indicated category and a KE > 0.5
are deemed to be in the Measured category.
GEOLOGICAL LOSSES: A minimum geological loss of 25% is
applied to the Merensky Reef and 27.5% to the UG2 Reef.
MINERAL RESERVE CLASSIFICATION
DEFINITION
A Mineral Reserve is the economically mineable part of a
Measured and/or Indicated Mineral Resource.
It includes diluting materials and allowances for losses,
which may occur when the material is mined or extracted
and is defined by studies at Pre-Feasibility or
Feasibility level as appropriate that include
application of Modifying Factors. Such studies
demonstrate that, at the time of reporting, extraction
could reasonably be justified. The confidence in the
Modifying Factors applying to a Probable Mineral Reserve
is lower than that applying to a Proved Mineral Reserve.
The categorisation of a Mineral Reserve is governed by
the relevant level of confidence of the Mineral Resource
and the Modifying Factors and must be made by the
Competent Person.
The Basic Grade Equation (BGE) for the lease area
provides a compilation of geological and mining
information relevant to the project and also applies key
modifying factors identified from the nature of the
resources and the mining methods employed. During this
process, the geological losses have been split into
geological losses including faults and intrusions; and
geological losses included in the scheduling efficiency
(bracket pillars, inaccessible areas etc.) and off reef
mining losses.
DISCUSSION OF MODIFYING FACTORS
1. Planned waste dilution: The planned waste dilution
accounts for the waste generated from the development of
reef access drive (RADs), reef raises, ASGs and the
blasting of winch beds.
2. Planned and unplanned over-break: Taking into account
the relatively thick Mineral Resource width and
benchmarking against similar operations, the levels of
over-break planned appears reasonable.
3. Pillar losses: An extensive rock engineering study
has been conducted for the Study utilising cores from
over 53 boreholes and information gathered from
operations in the area and taking into account the local
geotechnical environment. Many different elements (like
rock quality designation, rock mass rating, rock mass
uniaxial compressive strength, rock quality index,
stress and support regimes and mining sequence) were
utilised to design the various pillar support
requirements.
4. Gulley pillar losses: The gully pillar losses account
for the in-stope panel crush pillars which are accounted
for in the stope designs.
5. Regional pillar losses: The regional pillar losses
account for the pillars required between the RADs in
addition to the 5m bracket pillars allowed for on either
side of the various geological structures (faults and
dykes) identified in the structural model.
6. Boundary pillar losses: A 9m boundary pillar on both
reef horizons has been designed as per legal requirements
to isolate the Bakubung Platinum Mine from its
surrounding mines (Styldrift, WBJV Project 1 Platinum
Mine and BRPM).
7. Reef left in the footwall / hangingwall: The allowance
for reef losses in the BGE appears reasonable considering
the Mineral Resource width and is aligned with general
industry practice and benchmarks for orebodies with the
same width.
8. Mining quality: Reviewing the general on-reef mining
layout for both reefs and the limited amount of
forecasted off-reef mining and based on the limited
amount of information available, the planned level of
losses associated with this off-reef mining appears
reasonable. However, these losses will have to be
monitored closely during the development of the mine as
faults with a throw of less than 7m have probably not
been identified by the 3D seismic survey.
9. Mine Call Factor (MCF): The Mine Call Factor (MCF)
applied of 95% benchmarks well against general industry
performance.
10. Grade dilution: The total planned grade dilution for
the Merensky Reef appears reasonable at 16.6% (UG2 at
17.9%).
BAKUBUNG PLATINUM MINE RESOURCE/RESERVE STATEMENT
Total (MR + UG2) Resource (4E) Total (MR + UG2) Reserve (4E)
Categor Tons Grade Metal Catego Tons Grade Metal
y (m) (g/t) content ry (m) (g/t) content
(kg) (kg)
Measure 6,69 6,27 42 021 Proved 7,05 5,08 35 800
d 8 0
Indicat 50,9 5,15 262 389 Probab 54,0 4,13 223 545
ed 87 le 70
Inferre 21,3 5,07 108 022 Not
d 2 converted
Total 79,0 5,22 412 432 Total 61,1 4,24 259 345
05 20
Johannesburg
17 November 2016
Sponsor: PSG Capital Proprietary Limited
Date: 17/11/2016 11:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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