Wrap Text
Statement of Coal Resources and Coal Reserves
Resource Generation Limited
Registered in Australia under the Corporations Act, 2001 (Cth) with
registration number ACN: 059 950 337
ISIN: AU000000RES1
Share Code on the ASX: RES
Share Code on the JSE: RSG
(“Resource Generation” or the “Company”)
Statement of Coal Resources and Coal Reserves for Resource
Generation Limited
ASX Release
23 January 2017
Introduction
Resource Generation Limited (Resgen) holds various Coal Mining Tenements in South Africa through
its subsidiaries Ledjadja Coal (Proprietary) Limited (Ledjadja), (the owner of the Boikarabelo Coal
Mine), and Waterberg One Coal (Proprietary) Limited (Waterberg One). Ledjadja and Waterberg One
are ventures between Resgen (74% ownership) and black economic empowerment entity, Fairy Wing
Trading 136 (Proprietary) Limited (26% ownership).
Ledjadja holds title to the Mining Right and Tenements listed in the schedule below:
Mining
Size Attributable
Asset Farm Project Area Holder Right Comments
(ha) Share
number
Witkopje 238LQ Ledjadja #1
1)
Draai Om 244 LQ Ledjadja #2 Resource Granted
169MR
Generation 20 April
Kalkpan 243 LQ Ledjadja #3 Ledjajda (previously
Boikarabelo Ltd. 74% 2011
9018 Coal (Pty) identified as
Coal Mine Osorno 700 LQ Ledjadja #4
Ltd MPT15/201
Zeekoevley 241 2) Fairy Expiry 19
Ledjadja #5 2MR)
LQ Wing April 2044
Trading
Vischpan 274 LQ Ledjadja #6
Resource Generation Australia (ACN 059 950 337)
c/o Level 1, 17 Station Road, Indooroopilly, QLD, 4068
GPO Box 126, Albion QLD 4010. Phone +27 (012) 345 1057 Fax +27 (012) 345 5314
Directors: Denis Gately (Chairman), Lulamile Xate (Deputy Chairman), Rob Lowe (CEO), Robert Croll, Dr. Konji Sebati,
Colin Gilligan, Leapeetswe Molotsane www.resgen.com.au
136 (Pty)
Kruishout 271 LQ Ledjadja #7
Ltd. 26%
Waterberg One Coal holds title to Prospecting Rights over the farms Koert Louw Zyn Pan 234 LQ
(Project Area Waterberg #1) (Prospecting Right number PR678/2007), and the farms Lisbon19 LQ
(Project Area Waterberg #2) and Zoetfontein 22 LQ (Project Area Waterberg #3) (Prospecting Right
number PR720/2007).
The Coal Resources and Coal Reserves estimate for Boikarabelo Coal Mine has been updated in
accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves, (The JORC Code, 2012 Edition) (the JORC Code 2012).
This update of the Coal Resources and Coal Reserves estimates relate specifically to the Ledjadja
#1 and Ledjadja #3 project areas where an optimised mine design has now been completed. These
two project areas make up 27% of Resgen’s Coal Resources and 46% of Resgen’s Coal Reserves.
Resgen has previously secured export offtake contracts and has developed a dual export/domestic
business model intending to service both export customers and domestic power stations. This model
has resulted in a meaningful increase in the Net Present Value (NPV) and Internal Rate of Return
(IRR) of the project.
The previously announced 2010 estimated Coal Resources and Coal Reserves (“the 2010 Release”)
was based on a single, low quality product for sale to domestic power stations.
An updated statement of those estimated Coal Resources and Coal Reserves as at 31 December
2016 is included below.
Statement of Coal Resources and Coal Reserves
The total Coal Resources base is summarised in the Table below:
Coal Coal
Area
Project Area Resources Reserves
(hectares)
(Mt) (Mt)
Ledjadja #1 and Ledjadja #3 (*) 830.0 994.81 267.09
Ledjadja #1 and Ledjadja #2(**)(i) 877.0 1479.6 -
Waterberg #1 (***) (i) 536.0 426.3 314.2
Waterberg #1(**)(i) 706.0 551.7 -
Total 2,949.0 3,711.61 581.29
(*)- determined by applying the JORC Code 2012
(**)- determined by applying the JORC Code 2004; and relates to the Inferred Resources of the Project Area
(***)- determined by applying the JORC Code 2004, and relates to the Measured and Indicated Resources of the Project Area
Note (i) -This information was prepared and first disclosed under the JORC Code 2004. It has not
been updated since to comply with the JORC Code 2012 on the basis that the information has not
materially changed since it was last reported.
This new business model for the Boikarabelo Coal Mine has resulted in the following
variations to the 2010 Release:
PAGE 2
Coal Resources
The Measured and Indicated Tonnes of 664.2 million tonnes have increased to 994.81 million tonnes.
This is attributable to an increase in the Measured Resource Area as a result of additional drilling.
Coal Reserves
The Marketable Coal Reserves have reduced from 430.6 million tonnes to 267.09 million tonnes
and are now based on:
. an export quality product with an average of 14% ash and an average 25.73 MJ/kg
calorific value determined on an Air Dried (AD) basis; and
a domestic power station product with an average 19.5 MJ/kg calorific value and an
average 31.43 % ash determined on an AD basis.
The export quality product has an average yield of 23.68% and the domestic power station product
has an average yield of 19.61 %. This equates to an overall average yield of 43.3%.
The run of mine (ROM) of 616.85 million tonnes equates to a life of mine in excess of 40 years at an
annual production rate of 15.12 million tonnes and sales for a similar period at a rate of 6.55 million
tonnes per annum (Production Target). The material assumptions on which this Production Target is
based are (see Section 2 Coal Reserves below and Section 4 of Appendix 1 for more detail):
. open pit truck and shovel terrace operation,
. minimum coal seam/mining height thickness of 0.5m,
. dual product mine applying a minimum total yield cut off of 24%,
. appropriate pit slope angles (overall 450),
. appropriate mining recovery factors, dilution and contamination, and
. beneficiation of the coal for a dual product in a high density beneficiation plant and
applying appropriate plant factors.
This Production Target is based purely on Probable Coal Reserves and these Coal Reserves have
been signed off by the Competent Persons.
The following information prescribed by the JORC Code 2012 is included in this Release:
. Section One and Section Two detail the Coal Resources and Coal Reserves as at 31
December 2016 with respect to the Boikarabelo Coal Mine. A comparison to the 2010
Release is also shown.
. Appendix 1 provides a summary of important assessment and reporting criteria used
at the Boikarabelo Coal Mine for reporting of Coal Resources and Coal Reserves in
accordance with the Table 1 checklist in the JORC Code 2012.
. Appendix 2 provides borehole co-ordinates and collar elevations.
PAGE 3
The Inferred Coal Resources and Coal Reserves for Ledjadja #1 and Ledjadja #2 and the Coal
Resources for Waterberg #1 will be subject to review and update under the JORC Code 2012 during
the 2017 calendar year and will be released to the market once this review and update has been
completed and approved.
Competent Persons’ Statement
The information contained in this Release which relates to estimates of Coal Resources and Coal
Reserves is based on and accurately reflects reports prepared by Competent Persons named beside
the respective information in the Table below. Mr Ben Bruwer is a Principal Consultant with VBKom
(Pty) Ltd (VBKOM). Mr Riaan Joubert is the Principal Geologist employed by Ledjadja.
Summary of Competent Persons responsible for Coal Resources and Coal Reserves
Competent Area of Professional Year of Membership
Person Competency Society Registration Number
R. Joubert Coal SACNASP* 2002 400040/02
Resources
Member
B. Bruwer Coal SAIMM** 1994 701068
Reserves
Member
*SACNASP - South African Council for Natural Scientific Professions
** SAIMM - Southern African Institute of Mining and Metallurgy
The above-named Competent Persons both consent to the inclusion of material in the form and
context in which it appears in this Release. Both individuals are members of a Recognised
Professional Organisation in terms of the JORC Code 2012, and both have a minimum of five years’
relevant experience in relation to the mineralisation and type of deposit being reported on by them to
qualify as Competent Persons as defined in the JORC Code 2012.
Neither Mr Bruwer, nor VBKOM has a material interest or entitlement, direct or indirect, in the
securities of Resource Generation Ltd. Mr Joubert holds no shares in Resource Generation Limited.
About Resource Generation Ltd:
Resource Generation Ltd. (Resgen) is an emerging ASX and JSE-listed energy company, currently
developing the Boikarabelo Coal Mine in South Africa’s Waterberg region. The Waterberg accounts
for around 40% of the country’s currently known coal resources. Resgen’s primary shareholders are
the Public Investment Corporation of South Africa SOC Limited (PIC), Noble Resources International
Pte Limited and Altius Investment Holdings (Pty) Limited.
For further information please contact:
PAGE 4
Mike Meintjes, Company Secretary on mmeintjes@resgen.com.au or +61 413 706 143
Media enquiries:
Australia: Martin Debelle on + 61 282 340 102 or +61 409 911 189
South Africa: Marion Brower/Thembisa Kotobe on +27 11 880 3924
JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd
PAGE 5
STATEMENT OF COAL RESOURCES AND COAL RESERVES
Section 1 – Coal Resources
The Table below is an extract from the 2010 Release containing an estimate of the Coal Resources:
Farm Indicated Measured Total
Project Inferred
Resources Coal
Reference Resources Resources
Resources
Witkopje South & Kalkpan Ledjadja #1, 664.2 664.2
Ledjadja # 3
Draai Om Ledjadja #2 791.3 791.3
Witkopje Ledjadja #1 688.3 688.3
Waterberg One Waterberg #1 426.3 426.3
Waterberg One Waterberg #1 551.7 551.7
Total 1,479.6 551.7 1,090.5 3,121.8
. Coal Resources are inclusive of Coal Reserves.
. Rounding figures may cause computational discrepancies.
. Figures are reported at 100% irrespective of percentage attributable to Resource Generation Limited.
. Tonnages are quoted in metric tonnes on an Air Dried Basis (AD) and million tonnes are abbreviated as Mt.
The Table below summarises the revised Coal Resources estimate as at 31 December 2016 applying
the JORC Code 2012:
Project Coal Mineable
Gross Tonnes In Geological Total Tonnes In
Resource Tonnes In situ
Area situ (GTIS) (Mt) Losses (%) situ (TTIS) (Mt)
Category (MTIS) (Mt)
Ledjadja #1, Measured 1,011.99 10 910.79 910.79
Ledjadja # 3
Ledjadja #1, Indicated 93.36 10 84.02 84.02
Ledjadja # 3
Total 1,105.35 994.81 994.81
. Coal Resources are inclusive of Coal Reserves.
. Rounding figures may cause computational discrepancies.
. Figures are reported at 100% irrespective of percentage attributable to Resource Generation Limited.
. Tonnages are quoted in metric tonnes on an Air Dried Basis (AD) and million tonnes are abbreviated as Mt.
. MTIS tonnage is equivalent to TTIS as no theoretical height cut offs have been applied as a result of the mining
method.
PAGE 6
In accordance with Listing Rule 5.8.1 and 5.9.1, the following summary is provided of information
material to understanding the reported estimates of Coal Resources at 31 December 2016. Further
detail is included in Appendix 1 – JORC Code, 2012 Edition- Table 1
Coal Resources
Geology and geological interpretation
The coal deposits of the Waterberg Coalfield occur in the Grootegeluk and Vryheid Formations of the
Karoo Supergroup. These formations and their numerous coal zones vary in thickness from a few
centimetres to several metres.
The interpreted sub-crop of the Boikarabelo Coal Mine specifically consists of the following
formations:
? the Eendragtpan Formation (Triassic – Beaufort Group) which consists of barren
sediments and overlies the coal zones,
? the Grootegeluk Formation (Permian – Upper Ecca Group), which consists of
intercalated bright coal (zones 5 to 11) and mudstone and contains the majority of the
Coal Resources in the coalfield, and
? the Goedgedacht or Vryheid Formation (Permian – Middle Ecca Group), which consists
predominantly of dull coal (zones 1 to 4) with minor carbonaceous mudstone and
sandstone intercalations.
The Grootegeluk Formation consists of cyclical repetitions of mudstone and coal with the coal seams
named from the base upwards. Individual plies are named and correlated according to the
Grootegeluk Coal Mine (located in the Waterberg Coalfield) nomenclature. Faure et al. (1996)
describe divisions applied to the Ecca Group coals in the Ellisras (Waterberg) Basin by staff of the
Grootegeluk Coal Mine. The predominantly dull coal seams (1, 2, 3, 4 and 4A) of the Goedgedacht
Formation retained the original numbering. The remaining seams were re-classified by the
Grootegeluk Coal mine staff into zones 5 to 11. (Faure K, Willis J.P, Dreyer J.C. 1996. The
Grootegeluk Formation of the Waterberg Coalfield, South Africa: facies, paleo-environment and
thermal history- evidence from organic and clastic matter. International Journal of Coal Geology, 29,
147-186.).
These Zones are further divided into coal seam plies which constitute the coal samples within each
zone. This comprises of a sequence of sample names that group plies together in each classic
Waterberg Zone. These samples can be correlated across the entire Waterberg Coalfield. A typical
Waterberg borehole has 11 coal zones from Zone 1 at the base to Zone 11 at the top. The lower three
zones do not comprise of alternating plies but are more typical uniform coal seams.
The Eendragtpan Formation provides a thin covering of 25-35m thickness over the majority of the
area and thus preserves the Grootegeluk and Goedgedacht Formations.
The Grootegeluk Formation was intersected during the drilling programme and varying thicknesses
for the coal zones 1 to 11 have been reported.
Drilling techniques
The drilling and drilling techniques that were employed during the drilling programme included the
following:
PAGE 7
. Diamond Cored (DC) boreholes were drilled and it was conventional TNW size
(60.5mm). The boreholes were drilled vertically,
. Reverse Circulation (RC) drilling was done in between the DC holes. The RC
boreholes were drilled vertically,
. T6-146 (123mm) boreholes were drilled for bulk sample purposes,
. the boreholes were logged down the hole geophysically, and
. the geophysical borehole log was used in the logging of the boreholes and to
determine the sample depth intervals.
Sampling and sub-sampling techniques
The sampling methods and sampling techniques employed at Ledjadja were as follows:
. the whole core was transported to an onsite core storage facility,
. the geophysical borehole logs were used in the logging of the boreholes and the
determination of the sample depth intervals,
. all coal seams and intra seam stone partings intersected were sampled separately,
. the whole core was sampled as per South African Industry standard, and
. sample intervals and the unique sample numbers were included in the borehole log.
Sample analysis method
The sampling was done according to the litho-stratigraphy utilizing the geophysical log and the whole
coal core was sampled. The sample analyses and methods used at Ledjadja can be summarized as
follows:
. the samples were bagged in double bags, the borehole number, sample number and
sample width were recorded on the sample tags,
. all samples received at the laboratories were entered into a Laboratory Integrated
Management System (LIMS) by means of a code,
. the samples were air dried, weighed and automatically recorded in the LIMS. Relative
densities of each sample were determined and entered into LIMS,
. the samples were crushed to 25mm top size (size deemed appropriate for the type and
nature of the coal deposit). The crushed samples were screened and divided into -
0.5mm and +0.5-25mm fractions,
. proximate analyses (raw) were done on the fractions and analyses done include:
inherent moisture, ash content, volatile matter content, fixed carbon by difference, raw
gross calorific value (MJ/kg) and total sulphur content, and
. washability tests (Float and Sink) were done on all diamond cored borehole samples.
Wash fractions were set at relative densities from 1.35, 1.4, 1.45, 1.5, 1.55, 1.6, 1.7,
1.8, 1.9, 2.0, 2.1, 2.2 and Sink2.2. After the washing process, all wash fractions were
PAGE 8
submitted for gross calorific value, inherent moisture, volatile matter, total sulphur and
ash content.
Criteria used for classification (including drill spacing)
The geological model (structural and quality models) was created in Geovia MinexTM software and
used to estimate the Coal Resources. Sections were drawn across the Coal Resources area to
ensure that all correlations were consistent. The sections were correlated and verified using the
geophysical log and lithological log. The following were modelled:
. coal ply thickness, roof and floor depths, roof and floor elevations, the topography and
the limit of weathering,
. the limit of weathering was used as a limiting horizon and no Coal Resources were
estimated above the limit of weathering, and
. the modelling was done on a 50mX50m grid and extrapolation was limited to 500m
from the last borehole and terminated against known areas of no coal development.
The Coal Resources were classified into Measured Coal Resources and Indicated Coal Resources
utilising the following:
. the Coal Resources were estimated using geostatistical analyses and variograms were
constructed,
. the variograms indicated that there is little change in the raw ash variability within the
Coal Resources,
. a borehole spacing of 500m was used for Measured Coal Resources and a 1000m for
Indicated Coal Resources, and
. a 0.5m seam thickness cut-off and a cut-off of > 65% ash was applied on the coal
zones to establish the overall Coal Resources.
Estimation methodology
The Competent Person applied the principles of the JORC Code 2012 in estimating the Coal
Resources at Boikarabelo Coal Mine as follows:
. the Coal Resources were estimated using geostatistical analyses,
. the distance of interpolation between boreholes was determined by plotting variograms
which indicated that there is little change in the raw ash variability within the Coal
Resources, and
. a borehole spacing of 500m was used for Measured Coal Resources and a 1000m
spacing was used for Indicated Coal Resources.
Cut-off grades, including the basis for selected cut of grades
The cut-off grades applied in the Coal Resources estimation were:
. a 0.5m seam thickness cut-off was applied to all coal zones,
. a cut-off of > 65% ash was applied on the coal zones to establish the overall Coal
Resources, and
PAGE 9
. a geological loss of 10% was applied.
Mining and metallurgical methods and parameters and other material modifying factors
considered to date
Consideration was given to a number of mining methods, including open pit and underground. The
optimal mine design has been based on an open pit terrace mine. In addition, consideration was given
to the following:
. a minimum coal ply thickness of 0.5m was applied to the Coal Resource estimate,
. the extent of the Mining Right,
. geological constraints, and
. environmental constraints.
Various metallurgical studies were carried out to establish the beneficiation characteristics of the coal
plies and their combined reaction in the coal beneficiation process.
Section 2 – Coal Reserves
The 2010 Coal Reserves estimate was based on a single product for domestic power station
consumption of 19.5 MJ/kg calorific value (AD).
The Table below is an extract from the 2010 Release summarising the Coal Reserves:
Coal
Product
Reserves
(Mt)
Category
Probable 430.6
The Table below summarises the revised Coal Reserves estimate, based on a dual export/domestic
business model as at 31 December 2016 and applying the JORC Code 2012:
Coal MTIS (Yield & Mining ROM Primary Secondary
MTIS
Reserve plant cut-offs) Loss Tonnes Product Product
(Mt)
Category (Mt) (%) (Mt) (Mt) (Mt)
Probable 994.81 649.32 5% 616.85 146.00 121.09
In accordance with Listing Rule 5.8.1 and 5.9.1, the following summary is provided of information
material to understanding the reported estimates of Coal Reserves at 31 December 2016. Further
detail is included in Appendix 1 below, as set out in the JORC Code, 2012 Edition
PAGE 10
Coal Reserves
Material assumptions and outcomes from an optimised mine design and technical studies that
have been completed
The material assumptions applied in the Coal Reserve estimation process include the following:
. a detailed mine design was done and the mining method selected is a truck and shovel
open pit terrace mine,
. a mining recovery factor of 95% was applied and was considered to be appropriate for
the mining method and the large band of multiple coal seams considered,
. minimum mining widths of 0.5m were applied in the geological model and subsequently
in the mine modelling which was deemed appropriate for the mining equipment
employed,
. no Inferred Coal Resources were included in the mine plan,
. all relevant infrastructure required to execute the life of mine plan relevant for the type
and size of the mine was considered,
. a mine schedule, based and constrained by the throughput rate of the mine equipment
selected, was developed, and
. appropriate factors, including dilution and losses, were applied with the agglomeration
of mining horizons.
Criteria used for classification (including the classification of the mineral resources on which
the ore reserves are based and the confidence in the modifying factors applied
The principles of the JORC Code 2012 was used in estimating the Coal Resources. The criteria and
classification are listed below:
. the Coal Resources were estimated using geostatistical analyses and the distance of
interpolation to be used between boreholes was determined by plotting variograms of
the raw ash content of the coal zones, and
. the Coal Resources were classified into Measured and Indicated Coal Resources.
Mining method selected and other mining assumptions, including mining recovery factors and
dilution factors
An optimised mine design exercise was completed which indicated that an open pit terrace truck and
shovel mine was the preferred option. The main principals of this mining design are:
. the establishment of a box-cut,
. pre-stripping of the overburden, and
. once steady-state mining operations have been established, roll-over backfill of the
overburden will be carried out.
PAGE 11
The key mining Modifying Factors, based on the results of the various studies conducted by Resgen
are:
. a cut-off of > 65% ash content,
. a minimum coal ply thickness of 0.5m,
. a geological loss of 10%, applied to the tonnage of the Coal Resources,
. a mining extraction factor of 10%,
. a practical plant yield of 90% was applied on the export quality product,
. a yield cut-off of 24%,
. a mining recovery factor of 95%,
. a mining dilution factor of 5%,
. a contamination factor of 0.1m of both the roof and floor of the mining horizons,
. an overall pit slope angle of 450,
. a minimum bench width of 60m,
. all seams will be mined together, and no stop-start operation or separate stockpiles
will be required, and
. the inclusion of two 75kt blending stockpiles.
No Inferred Coal Resources have been included in the mine plan.
Processing method selected and other processing assumptions, including recovery factors
and allowances made for deleterious elements
The processing design and assumptions considered included the following:
. a coal handling and processing plant that has been based on a dense medium
separation process to produce two different quality products. Density separation is a
well-known and widely used method to upgrade ROM coal to saleable clean coal
products,
. the discarded material will be placed in the mining void in accordance with the mine
design, and
. a practical plant yield (plant recovery) of 90% was applied on the export quality product.
Basis of cut-off grades or quality parameters applied
The quality parameters that were applied were based on a dual export/domestic business model and
are:
. an export quality product with an average of 14% ash and an average 25.73 MJ/kg
calorific value determined on an AD basis, and
. a domestic power station product with an average 19.5 MJ/kg calorific value and an
average 31.43 % ash determined on an AD basis.
PAGE 12
Economic assumptions
The key economic factors and parameters that were considered (using both internal and externally
sourced information) in determining the financial viability of the Boikarabelo Coal Mine Project and
associated Production Target are listed below:
. the forecast costs of bulk services, water and electricity,
. the forecast costs of consumables, magnetite and flocculants,
. the costs associated with logistics, including rail and port transport and handling costs,
. the potential sales price achieved for the products produced,
. the estimated capital costs of the project itself; and
. the forecast mining costs and beneficiation costs.
PAGE 13
Appendix 1- JORC Code, 2012 Edition – Table 1
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling
Nature and quality of sampling (e.g. cut channels, random chips, or Diamond Cored (TNW 60.5mm) boreholes were drilled to below the last
techniques
specific specialised industry standard measurement tools appropriate coal intersection using conventional drilling equipment. The boreholes
to the minerals under investigation, such as down hole gamma were drilled vertically. Coal recoveries were in excess of 95%. The core
sounds, or handheld XRF instruments, etc.). These examples should was packed in steel core trays. The boreholes were logged geophysically.
not be taken as limiting the broad meaning of sampling.
The drilling programme was overseen by qualified geologists.
Include reference to measures taken to ensure sample representation
The whole core was transported to an onsite core storage facility.
and the appropriate calibration of any measurement tools or systems
used. Care was taken during transport of the core to retain the integrity of the
core in the boxes.
Aspects of the determination of mineralisation that are Material to the
Public Report. The boreholes were logged in detail and the geophysical borehole log was
used in the logging of the boreholes and to determine the sample depth
In cases where ‘industry standard’ work has been done this would be
intervals.
relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1
m samples from which 3 kg was pulverised to produce a 30 g charge The logging and sampling were done by qualified geologists. Standard
for fire assay’). In other cases more explanation may be required, such measuring tapes were used.
as where there is coarse gold that has inherent sampling problems.
All coal seams and intra seam stone partings intersected were sampled
Unusual commodities or mineralisation types (e.g. submarine
separately.
nodules) may warrant disclosure of detailed information.
The whole core was sampled as per South African Industry standard.
Sample intervals and the unique sample numbers were included in the
borehole log.
Resource Generation Australia (ACN 059 950 337)
c/o Level 1, 17 Station Road, Indooroopilly, QLD, 4068
GPO Box 126, Albion QLD 4010. Phone +27 (012) 345 1057 Fax +27 (012) 345 5314
Directors: Denis Gately (Chairman), Lulamile Xate (Deputy Chairman), Rob Lowe (CEO), Robert Croll, Dr. Konji Sebati,
Colin Gilligan, Leapeetswe Molotsane www.resgen.com.au
Criteria JORC Code explanation Commentary
The samples were bagged, marked and sent to laboratories for analyses.
Reverse Circulation (RC) drilling was done between diamond cored
boreholes. The RC boreholes were geophysically logged.
All the Boreholes were drilled vertically.
Drilling
Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air The Diamond Cored boreholes that were drilled were done using
techniques
blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple conventional TNW size (60.5mm). They were drilled vertically and not
or standard tube, depth of diamond tails, face-sampling bit or other orientated.
type, whether core is oriented and if so, by what method, etc.).
The RC drilling that was done was conventional RC drilling.
T6-146 (123mm) boreholes were drilled for bulk sample purposes.
Drill sample
Method of recording and assessing core and chip sample recoveries Borehole core depths were measured at the end of each core run and
recovery
and results assessed. recorded.
Measures taken to maximise sample recovery and ensure Core recovery was assessed by the geologist when logging. The
representative nature of the samples. recovered core thickness was compared with the thickness from the
geophysical log.
Whether a relationship exists between sample recovery and grade
and whether sample bias may have occurred due to preferential A borehole was re-drilled if the coal recovery was below 95%.
loss/gain of fine/coarse material.
The borehole core was transported to a central core store where it was
logged and sampled from the core trays.
Core losses were recorded in the field log.
Logging
Whether core and chip samples have been geologically and Boreholes were logged by independent qualified geologists.
geotechnically logged to a level of detail to support appropriate
Total lengths of boreholes were logged according to industry accepted
Mineral Resource estimation, mining studies and metallurgical
lithological descriptions, protocols and methods.
studies.
Logging of the core was done down to 1cm scale.
Whether logging is qualitative or quantitative in nature. Core (or,
channel, etc.) photography. Logging is qualitative in nature.
The total length and percentage of the relevant intersections logged. All boreholes were geophysically logged. A standard suite of geophysical
sounds were done namely: Long Spaced Density, Short Spaced Density,
Gamma and Caliper. The geophysical logging was done by independent
Criteria JORC Code explanation Commentary
contractors and the geophysical tools were calibrated on a regular basis
before being deployed on site.
Borehole chip samples from the RC drilling were logged by qualified
geologists.
Boreholes were not geotechnically logged as a standard.
Specific boreholes were drilled where geotechnical data is required i.e. the
box-cut position.
Sub-sampling
If core, whether cut or sawn and whether quarter, half or all core taken. Sampling was done according the litho-stratigraphy utilizing the
techniques
geophysical log.
and sample If non-core, whether riffled, tube sampled, rotary split, etc. and
preparation whether sampled wet or dry. The whole coal core was sampled.
For all sample types, the nature, quality and appropriateness of the The samples were not dried and the boreholes were sampled as received
sample preparation technique. as soon as possible after drilling.
Quality control procedures adopted for all sub-sampling stages to Care was taken to ensure that all the material including the fine coal for a
maximise representation of samples. particular interval was sampled.
Measures taken to ensure that the sampling is representative of the in The samples were bagged on site.
situ material collected, including for instance results for field
The samples were bagged in double bags, the borehole number, sample
duplicate/second-half sampling.
number and sample width were written on the sample tags.
Whether sample sizes are appropriate to the grain size of the material
One sample tag was placed inside the bag with the coal sample, a second
being sampled.
sample tag was secured to the outside of the sample bags. The borehole
number, sample number and sample width were written on the sample
bags with paint markers.
The samples were delivered to the laboratories by road transport by the
responsible geologist overseeing the drilling programme.
Duplicate sampling was not undertaken.
The sample size was appropriate to the grain size of the material being
sampled.
Quality of
The nature, quality and appropriateness of the assaying and The majority of the core samples were sent to ALS Limited - ALS Energy
assay data
laboratory procedures used and whether the technique is considered Division, Coal Services South Africa Laboratory (ALS Witlab), previously
and
partial or total. known as Witlab. ALS Witlab is accredited with the South African National
Criteria JORC Code explanation Commentary
laboratory Accreditation body (SANAS), accreditation number T0478. SANAS is the
For geophysical tools, spectrometers, handheld XRF instruments,
tests national body responsible for carrying out accreditations in respect of
etc., the parameters used in determining the analysis including
conformity assessment, as mandated through the Accreditation for
instrument make and model, reading times, calibrations factors
Conformity Assessment, Calibration and Good Laboratory Practice Act
applied and their derivation, etc.
(Act 19 of 2006).
Nature of quality control procedures adopted (e.g. standards, blanks,
Some samples were sent to Advanced Coal Technology Laboratory
duplicates, external laboratory checks) and whether acceptable levels
(ACT). ACT was subsequently purchased by Bureau Veritas. Bureau
of accuracy (i.e. lack of bias) and precision have been established.
Veritas is accredited with the South African National Accreditation body
(SANAS), accreditation number T0313. SANAS is the national body
responsible for carrying out accreditations in respect of conformity
assessment, as mandated through the Accreditation for Conformity
Assessment, Calibration and Good Laboratory Practice Act (Act 19 of
2006).
Some samples were sent to South African Bureau of Standards Laboratory
Coalspec (SABS Coalspec). SABS Coalspec is accredited with the South
African National Accreditation body (SANAS), accreditation number T0230.
SANAS is the national body responsible for carrying out accreditations in
respect of conformity assessment, as mandated through the Accreditation
for Conformity Assessment, Calibration and Good Laboratory Practice Act
(Act 19 of 2006).
At the time of analyses of the bulk of the samples both ACT and ALS Witlab
were not accredited. These laboratories are now SANAS accredited and
they are accredited according to professional laboratory standard – ISO
17025.
For each core sample the following analyses were performed:
. all samples received at ALS Witlab, ACT and SABS were entered
into a Laboratory Integrated Management System (LIMS) by means
of a code,
. samples were air dried, weighed and automatically recorded in the
LIMS. Relative densities of each sample were determined and
entered into LIMS. Samples were bagged in encoded bags,
Criteria JORC Code explanation Commentary
. samples were crushed to 25mm top size (size deemed appropriate
for the type and nature of the coal deposit). The crushed samples
were screened and divided into -0.5mm and +0.5-25mm fractions,
. proximate analyses (raw) were done on the fractions as follows:
inherent moisture content according to ISO 331, ash content based
on ISO1171:97, volatile matter content based on ISO562:98 and
fixed carbon by difference. Raw gross calorific value (MJ/kg) was
based on ISO1928:95 and total sulphur content was based on
ASTM: D4239-04a,
. washability tests (Float and Sink) were done on all diamond cored
borehole samples. Wash fractions were set at relative densities from
1.35, 1.4, 1.45, 1.5, 1.55, 1.6, 1.7, 1.8, 1.9, 2.0, 2.1, 2.2 and Sink2.2.
All fractions were weighed, checked, verified and captured in the
LIMS. All float and sink fractions were dried and weighed and all
weights were recorded on LIMS. After the washing process all wash
fractions were submitted for gross calorific value, inherent moisture,
volatile matter, total sulphur and ash content,
. the calculation of cumulative values for each cut-point density and of
reconstituted raw coal values for each washability test sample was
carried out, and
. ultimate analyses, ash analyses were done on selective samples
only.
All crushing and splitting equipment was thoroughly cleaned and inspected
after each sample. Crushing equipment was selected so as to not generate
excess fines. Internal audits were carried out monthly in accordance with
the ALS Witlab audit schedule. Random checks by independent
consultants were carried out on an ad-hoc basis to check crusher and mill
product compliance and washing density accuracy.
The three laboratories are recognised as leading coal laboratories in South
Africa and abroad. The laboratories carry out all analytical procedures in
accordance with international standards. A detailed analytical programme
designed by Resgen and followed by the laboratories ensured that all
Criteria JORC Code explanation Commentary
necessary analytical elements of the Coal Resources were covered. All
routine analyses were carried out in accordance with their respective ISO
international standards, for ash content ISO 1171:97, for inherent moisture
content ISO 331, for volatile matter content ISO 562:98, for total sulphur
content ASTM-D 4239-04a and for calorific value ISO 1928:98.
Further special analyses in accordance with ISO standards were carried
out on composite samples which allowed for the total nature of the Coal
Resources to be established. This detailed analysis programme affords
Resgen a wide field of insight as to how to best utilise the Coal Reserves
or Coal Resources economically and environmentally.
Samples were analysed by twin stream duplicate analysis, results were
automatically entered into LIMS and any abnormalities were flagged. The
equipment and sampling processes were regularly checked using certified
standards and reference material. Any analytical discrepancies were
scheduled for re-analysis. The laboratories also participated in proficiency
testing (Round Robins) with other laboratories such as ALS Limited Group
– Global Services, Yanka Laboratories (Pty) Ltd. and SABS Coalspec
Laboratory. Control charts for each specific area were used, and accepted
levels of repeatability were sustained. All reports were generated
automatically by LIMS. These reports were vetted by a Competent
Person.
Verification of
The verification of significant intersections by either independent or All coal intersections were verified against the geophysical logs.
sampling and
alternative company personnel.
assaying An independent Competent Person reviewed the results and validated the
The use of twinned holes. coal sampling.
Documentation of primary data, data entry procedures, data The laboratories made use of a custom designed LIMS with traceability to
verification, data storage (physical and electronic) protocols. all raw data. Data calculations were done automatically, checked by
laboratory supervisors for duplicate results and repeatability. Out of
Discuss any adjustment to assay data.
tolerance results were repeated.
Data was extracted to Microsoft Excel spreadsheets where it was
displayed in graphs with pre-set limits using calorific value/ash correlation
with upper and lower tolerance levels. Results were evaluated by
experienced personnel and results that deviated from the pre-set tolerance
values were repeated.
Criteria JORC Code explanation Commentary
Sample results were both reported and received in electronic and hard
copy formats.
All data was electronically imported and stored in an electronic geological
database – Micro Mine (Pty) Ltd. Geobank (Geobank) geological data
base software was used as the database.
Coal quality data was checked and verified in the geological database.
Unreliable data was flagged and removed from the database.
Lithology interval, coal seam intervals, borehole survey data and sample
intervals with sample numbers were recorded on the field log sheets in
hardcopy format.
All borehole data was transferred to the Geobank geological database.
Checks were carried out to ensure that sample intervals and lithology
intervals corresponded.
Location of
Accuracy and quality of surveys used to locate drill holes (collar and All boreholes were initially positioned by geologists using a hand-held GPS
data points
down-hole surveys), trenches, mine workings and other locations with accuracies of +/- 10m. At the completion of each drilling programme
used in Mineral Resource estimation. final collar positions of the boreholes were surveyed using a high-accuracy
differential GPS (Leica 1200 Dual Frequency GPS with Base Station),
Specification of the grid system used.
operated by professional, qualified surveyors at X-Y accuracies of less
Quality and adequacy of topographic control. than 10mm and Z accuracies of less than 1 metre.
Grid used: South Africa LO27 grid system, Hartbeeshoek 94 (WGS84)
datum.
A detailed surface survey was also conducted by professional, qualified
surveyors using a differential GPS system, and used to validate and verify
hole collar elevations, and for detailed mine and surface infrastructure
planning (1m contour intervals). Relevant surface features (e.g. roads)
were surveyed for accuracy.
Data spacing
Data spacing for reporting of Exploration Results. Exploration drilling was conducted on a grid, spaced at approximately
and
500mX500m. The data spacing and distribution were sufficient to meet the
distribution Whether the data spacing and distribution is sufficient to establish the
JORC Code 2012 limits for classification of Measured, Indicated and
degree of geological and grade continuity appropriate for the Mineral
Criteria JORC Code explanation Commentary
Resource and Ore Reserve estimation procedure(s) and Inferred Coal Resources, and were appropriate for the structural and
classifications applied. quality modelling.
Whether sample compositing has been applied. No sample compositing was applied.
Orientation of
Whether the orientation of sampling achieves unbiased sampling of No major structures are present that have an influence on the coal
data in
possible structures and the extent to which this is known, considering quantities.
relation to
the deposit type.
geological Coal seams are near horizontal, and an even-spaced drilling grid was
structure If the relationship between the drilling orientation and the orientation applied across the area.
of key mineralised structures is considered to have introduced a
The orientation of the sampling achieved unbiased sampling of the
sampling bias, this should be assessed and reported if material.
deposit.
Sample
The measures taken to ensure sample security. The samples were bagged in double bags, with the borehole number,
security
sample number and sample width being written on the sample tags.
One sample tag was placed inside the bag with the coal sample, and a
second sample tag was secured to the outside of the sample bags. The
borehole number, sample number and sample width was written on the
sample bags with paint markers.
The samples were delivered to the laboratories by road transport by the
responsible geologist overseeing the drilling programme.
Sample security was ensured under a chain of custody between Resgen
contractor geologists and the laboratories.
Audits or
The results of any audits or reviews of sampling techniques and data. Regular site inspections, verification of exploration procedures and
reviews
activities were undertaken by the Competent Person.
The laboratories undertook internal audits and “Round Robin” checks
between laboratories, in line with international standards, were undertaken
to ensure their analysis results were consistent and reporting was correct.
Venmyn Deloitte conducted an audit of all the Geological drilling, Logging
and Modelling and an independent validation of the Geobank database.
Section 2 Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral
Type, reference name/number, location and ownership including Resgen holds various Coal Mining Tenements in South Africa through its
tenement and
agreements or material issues with third parties such as joint ventures, subsidiaries Ledjadja, (the owner of the Boikarabelo Coal Mine), and
land tenure
partnerships, overriding royalties, native title interests, historical sites, Waterberg One. Ledjadja and Waterberg One are ventures between
status
wilderness or national park and environmental settings. Resgen (74% ownership) and black economic empowerment entity, Fairy
Wing Trading 136 (Proprietary) Limited (26% ownership).
The security of the tenure held at the time of reporting along with any
known impediments to obtaining a license to operate in the area. Ledjadja holds title to the Mining Right and Tenements listed in the
schedule below:
Mining
Project Size Applica Attributab Comment
Asset Farm Right
Area (ha) nt le Share s
number
Witkopje Ledjadja
238LQ #1
Draai
Ledjadja
Om 244 1)
#2
LQ Resource
169MR
Kalkpan Ledjadja Generati
(previou Granted
243 LQ #3 on Ltd.
sly 20 April
Boikarab Osorno Ledjadja Ledjajda 74%
901 identifie 2011
leo Coal 700 LQ #4 Coal
8 d as
Mine Zeekoev (Pty) Ltd 2) Fairy
Ledjadja MPT15/ Expiry 19
ley 241 Wing
#5 2012MR April 2044
LQ Trading
)
Vischpa 136 (Pty)
Ledjadja Ltd. 26%
n 274
#6
LQ
Kruishou Ledjadja
t 271 LQ #7
Waterberg One Coal holds title to Prospecting Rights over the farms Koert
Louw Zyn Pan 234 LQ (Project Area Waterberg #1) (Prospecting Right
number PR678/2007 expiring 21 May 2016; Mining Right application
submitted November 2015) and the farms Lisbon19 LQ (Project Area
Criteria JORC Code explanation Commentary
Waterberg #2) and Zoetfontein 22 LQ (Project Area Waterberg #3)
(Prospecting Right number PR720/2007).
Exploration
Acknowledgment and appraisal of exploration by other parties. No historic exploration data has been used by Resgen in the Coal
done by other
Resources estimations.
parties
Geology
Deposit type, geological setting and style of mineralisation. The coal deposits of South Africa are hosted in sedimentary rocks of the
Karoo Supergroup. The Karoo sedimentary rocks were deposited in a
large retro-foreland basin which developed on the Kaapvaal Craton and
filled between the Late Carboniferous and Middle Jurassic periods. The
Karoo Supergroup is subdivided into the Dwyka, Ecca and Beaufort
Groups, succeeded by the Molteno, Elliot, Clarens and Drakensburg
Formation (as per the South African Committee for Stratigraphy (SACS),
1st edition published in 1980 as Handbook 8 of the Geological Survey).
The coals range in age from Early Permian (Ecca Group) through to Late
Triassic (Molteno Formation) and are predominantly bituminous to
anthracitic in rank.
The coal deposits of the Waterberg Coalfield occur in the Grootegeluk and
Vryheid Formations of the Karoo Supergroup. These formations and their
numerous coal zones vary in thickness from a few centimetres to several
metres.
The interpreted sub-crop of the Boikarabelo Coal Mine specifically
consists of the following formations:
. the Eendragtpan Formation (Triassic – Beaufort Group) which
consists of barren sediments and overlies the coal zones,
. the Grootegeluk Formation (Permian – Upper Ecca Group), which
consists of intercalated bright coal (zones 5 to 11) and mudstone
and contains the majority of the Coal Resources in the coalfield, and
. the Goedgedacht or Vryheid Formation (Permian – Middle Ecca
Group), which consists predominantly of dull coal (zones 1 to 4) with
minor carbonaceous mudstone and sandstone intercalations.
Criteria JORC Code explanation Commentary
The regional Geology of the Waterberg Coalfield is shown in the figure
below, which is an extract of the 2326 Ellisras 1:250 000 Geological Map
Sheet: Republic of South Africa. 1:250 000 Geological Series, sheet 2326
Ellisras; Authors: Brandl G., Van Reenen D.D., Van Wyk J.P., et al.; Geol.
Survey of South Africa; 1993.
The general stratigraphy of the Waterberg Coalfield is shown in the figure
below.
Criteria JORC Code explanation Commentary
The Local Geology of the Waterberg Coalfield is as follows:
. the Grootegeluk Formation consists of cyclical repetitions of
mudstone and coal with the coal seams named from the base
upwards. Individual plies are named and correlated according to the
Grootegeluk Coal Mine (located in the Waterberg Coalfield)
nomenclature. Faure et al. (1996) describe divisions applied to the
Ecca Group coals in the Ellisras (Waterberg) Basin by staff of the
Grootegeluk Coal Mine. The predominantly dull coal seams (1, 2, 3,
4 and 4A) of the Vryheid Formation retained the original numbering.
The remaining seams were re-classified by the Grootegeluk Coal
mine staff into zones 5 to 11. (Faure K, Willis J.P, Dreyer J.C. 1996.
The Grootegeluk Formation of the Waterberg Coalfield, South
Criteria JORC Code explanation Commentary
Africa: facies, paleo-environment and thermal history- evidence from
organic and clastic matter. International Journal of Coal Geology,
29, 147-186.).
These Zones are further divided into coal seam plies which constitute the
coal samples within each zone. This comprises of a sequence of sample
names that group plies together in each classic Waterberg Zone. These
samples can be correlated across the entire Waterberg Coalfield. A
typical Waterberg borehole has 11 coal zones from Zone 1 at the base to
Zone 11 at the top. The lower three zones do not comprise of alternating
plies but are more typical uniform coal seams.
The Eendragtpan Formation provides a thin covering of 25-35m thickness
over the majority of the area and thus preserves the Grootegeluk and
Goedgedacht Formations.
The Grootegeluk Formation was intersected during the drilling programme
and varying thicknesses for the coal zones 1 to 11 have been reported.
Intra-basin faults affect the coal bearing formations further to the south
and north of the Boikarabelo Coal Mine area, so that the upper zones are
either preserved or destroyed through up-lift and erosion.
The boreholes drilled were geo-physically logged and sampled according
to the South African National Standard - South African Guide to the
Systematic Evaluation of Coal Resources and Coal Reserves (SANS
10320:2004) and correlated with the Grootegeluk Coal Mine coal zones
and sample nomenclature.
The Grootegeluk Formation comprising the top zones (Zones 5 to 11)
consists of various coal and mudstone seams. These zones are well
defined and can be correlated across the coalfield. This formation, from
the top of Zone 4 through to Zone 11, is characterised by an increasing
ratio of bright coal to dull coal. Each zone typically starts with
predominantly bright coal at the base, with the proportion of dull coal
increasing towards the top of each zone. The ratio of coal to shale
decreases from the base of each zone in an upward direction. The ash
content of these zones increases upwards and generally the “better
Criteria JORC Code explanation Commentary
quality” coals are present in Zones 9 to Zone 11 over the majority of the
coalfield.
The Grootegeluk Formation is underlain by the Goedgedacht Formation
of the Middle Ecca Group. This formation consists predominantly of dull
coal with minor carbonaceous mudstone and sandstone intercalations.
The zones occur within a stratigraphic interval of some 40m and have
thicknesses ranging from 1.5 metres to 9 metres. Zones 2 and 3 are the
best developed coal zones. Zone 1 has not been developed throughout
the Boikarabelo Coal Mine area and occurs only in a few isolated
intersections.
A Typical Stratigraphic sequence is illustrated below:
Criteria JORC Code explanation Commentary
Drill hole
A summary of all information material to the understanding of the A full list of drill holes used in the Coal Resource estimate can be found in
Information
exploration results including a tabulation of the following information Appendix 2.
for all Material drill holes:
All drill holes have been used and modelled as vertical.
easting and northing of the drill hole collar
Criteria JORC Code explanation Commentary
elevation or RL (Reduced Level – elevation above sea level in metres)
of the drill hole collar
dip and azimuth of the hole
down hole length and interception depth
hole length.
If the exclusion of this information is justified on the basis that the
information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly
explain why this is the case.
Data
In reporting Exploration Results, weighting averaging techniques, All seams where multiple coal quantity samples are taken were given a
aggregation
maximum and/or minimum grade truncations (e.g. cutting of high composite value (generated within the Geovia MinexTM 6.4.2 software
methods
grades) and cut-off grades are usually Material and should be stated. (Minex)) weighting each quality by thickness and relative density, with the
exception of relative density which is weighted on thickness.
Where aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used for
such aggregation should be stated and some typical examples of such
aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship
These relationships are particularly important in the reporting of The coal seams are horizontal to sub-horizontal and the apparent
between
Exploration Results. thickness (width) of the intersected coal seams does not always
mineralisation
approximate the true thickness. The difference is however small, and does
widths and If the geometry of the mineralisation with respect to the drill hole angle
not have a material impact on the Coal Resources estimate. Undulating
intercept is known, its nature should be reported.
contacts are honoured in the geological model.
lengths
If it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (e.g. ‘down hole length, true
width not known’).
Diagrams
Appropriate maps and sections (with scales) and tabulations of A plan of the Boikarabelo Coal Mine Area with drill hole collar positions
intercepts should be included for any significant discovery being and appropriate sectional views is presented below:
reported. These should include, but not be limited to a plan view of
Borehole distribution is shown in the figure below:
drill hole collar locations and appropriate sectional views.
Criteria JORC Code explanation Commentary
Criteria JORC Code explanation Commentary
In the figures below a plan view and a section, along the section line
indicated in the plan view, is shown.
. Plan and North-west South-east section.
Plan and North-west South-east section
Criteria JORC Code explanation Commentary
. Plan and South-west North-east Section
Plan and South-west North-east Section
Criteria JORC Code explanation Commentary
Balanced
Where comprehensive reporting of all Exploration Results is not All exploration results within the Boikarabelo Coal Mine have been
reporting
practicable, representative reporting of both low and high grades reported on and no intersections were excluded.
and/or widths should be practiced to avoid misleading reporting of
Exploration Results.
Other
Other exploration data, if meaningful and material, should be reported A geotechnical (pit slope stability) investigation was carried out in
substantive
including (but not limited to): geological observations; geophysical November 2016, entitled:
exploration
survey results; geochemical survey results; bulk samples – size and
data
method of treatment; metallurgical test results; bulk density, . Technical Report – Geotechnical Investigation and High Wall Design
groundwater, geotechnical and rock characteristics; potential for the Box-cut Area at Boikarabelo Coal Mine 6 November 2016,
deleterious or contaminating substances. Geomech Consulting.
Further work
The nature and scale of planned further work (e.g. tests for lateral Infill drilling to investigate the planned position of the box-cut for mine
extensions or depth extensions or large-scale step-out drilling). planning purposes is in progress. The borehole information gleaned from
this programme will be used for geological modelling and Coal Resources
Diagrams clearly highlighting the areas of possible extensions,
estimations, as well as to determine if suitable construction material for
including the main geological interpretations and future drilling areas,
road building, and laydown areas exists in the box-cut area.
provided this information is not commercially sensitive.
Section 3: Estimation and reporting of Mineral Resources
Criteria JORC Code explanation Commentary
Database
Measures taken to ensure that data has not been corrupted by, for All the exploration data and analytical results were imported into the
integrity
example, transcription or keying errors, between its initial collection Geobank database and subjected to independent validation routines.
and its use for Mineral Resource estimation purposes.
Lithological descriptions were verified and checked against the downhole
Data validation procedures used. geophysical log.
The coal seam correlations were validated within the Geobank database
software. The coal seam intersections start and end depths were checked
for no overlaps or negative seam thicknesses. Sections were drawn in the
software and comparisons between boreholes were made.
Criteria JORC Code explanation Commentary
Coal sample positions were verified against the coal seams and correlated
with the geophysical log. The coal samples were compared with the raw
coal analyses.
The raw and washability data received from the laboratory was validated
by various routines including ash/cv correlations.
Anomalies were identified, queried and corrected before being
incorporating into the final quality database.
Site visits
Comment on any site visits undertaken by the Competent Person and The site was, frequently visited by the Competent Person, who is familiar
the outcome of those visits. with the project area and its geology.
If no site visits have been undertaken indicate why this is the case. The Competent Person reviewed the geological logging, the sampling and
laboratory and analyses and was satisfied with the data collection
procedures and protocols.
Geological
Confidence in (or conversely, the uncertainty of) the geological The confidence in the geological interpretation is high.
interpretation
interpretation of the mineral deposit.
The boreholes confirmed the nature, continuity of the seams and the
Nature of the data used and of any assumptions made. quality.
The effect, if any, of alternative interpretations on Mineral Resource The boreholes were logged in detail, and all coal intersections and
estimation. interburden were sampled and analysed. The data generated was
independently validated.
The use of geology in guiding and controlling Mineral Resource
estimation. Mineral Resource estimation was done by geological interpretation and
modelling.
The factors affecting continuity both of grade and geology.
The continuity of the geology and the coal sample intersection is affected
by the basement rocks.
Dimensions
The extent and variability of the Mineral Resource expressed as length The Coal Resources extend beyond the boundary of the defined Open Pit
(along strike or otherwise), plan width, and depth below surface to the Boundary.
upper and lower limits of the Mineral Resource.
The dimension of the Open Pit was determined by the Mineral Right
boundary, environmental factors and data point distribution.
Criteria JORC Code explanation Commentary
The planned extent of the Open Pit is given below:
The first coal intersection, when all the coal zones are present, is on
average 19.4 m below surface.
The Coal Resource extends to a depth of 140 m.
A typical cross section is shown below:
Criteria JORC Code explanation Commentary
Estimation
The nature and appropriateness of the estimation technique(s) The geological model (structural and quality models) was created in
and modelling
applied and key assumptions, including treatment of extreme grade Geovia MinexTM software.
techniques
values, domaining, interpolation parameters and maximum distance
Coal Resources estimation was performed using Geovia MinexTM
of extrapolation from data points. If a computer assisted estimation
Software.
method was chosen include a description of computer software and
parameters used.
Criteria JORC Code explanation Commentary
The availability of check estimates, previous estimates and/or mine Sections were drawn across the Coal Resource area to ensure that all
production records and whether the Mineral Resource estimate takes correlations were consistent. The sections were correlated and verified
appropriate account of such data. using the geophysical log and lithological log.
The assumptions made regarding recovery of by-products. The sections were drawn utilising Geobank and Minex software and
compared.
Estimation of deleterious elements or other non-grade variables of
economic significance (e.g. Sulphur for acid mine drainage Structural models were created for all the coal sample plies. The
characterisation). thickness, roof and floor depths and elevations of all the coal sample plies
were modelled. The topography, as well as a limit of weathering, was
In the case of block model interpolation, the block size in relation to
modelled.
the average sample spacing and the search employed.
The limit of weathering was used as a limiting horizon and no Coal
Any assumptions behind modelling of selective mining units.
Resources were estimated above the limit of weathering.
Any assumptions about correlation between variables.
The modelled topography was generated from a detailed surveyed digital
Description of how the geological interpretation was used to control terrain model (DTM).
the resource estimates.
The DTM was used to verify the borehole collar elevation.
Discussion of basis for using or not using grade cutting or capping.
The stratigraphic sequence was verified in Geobank as well as Minex.
The process of validation, the checking process used, the comparison
The modelling was done on a 50mX50m grid.
of model data to drill hole data, and use of reconciliation data if
available. Coal extrapolation was limited to 500m from the last borehole and
terminated against known areas of no coal development.
Moisture
Whether the tonnages are estimated on a dry basis or with natural Tonnages were estimated using the in situ density estimation method
moisture, and the method of determination of the moisture content. using the air dried moisture and relative density as determined in the
laboratories.
Cut-off
The basis of the adopted cut-off grade(s) or quality parameters A cut-off of > 65% ash was applied on the coal zones to establish the
parameters
applied. overall Coal Resources.
No cut off values were applied but the individual coal and inter-burden/bed
ply thickness and qualities were used in the mine design.
This was done to optimize the design of practical mining horizons. The
optimized design was based on dual export/domestic business model:
Criteria JORC Code explanation Commentary
? an export quality product with an average of 14% ash and an average
25.73 MJ/kg calorific value determined on an Air Dried (AD) basis, and
? a domestic power station product with an average 19.5 MJ/kg calorific
value and an average 31.43 % ash determined on an AD basis.
Mining factors
Assumptions made regarding possible mining methods, minimum Consideration was given was given to a number of mining methods,
or
mining dimensions and internal (or, if applicable, external) mining including open pit and underground. The optimal mine design has been
assumptions
dilution. It is always necessary as part of the process of determining based on an open pit terrace mine. In addition, consideration was given to
reasonable prospects for eventual economic extraction to consider the following:
potential mining methods, but the assumptions made regarding mining
methods and parameters when estimating Mineral Resources may not . a minimum coal ply thickness of 0.5m was applied to the Coal
always be rigorous. Where this is the case, this should be reported Resource estimate,
with an explanation of the basis of the mining assumptions made. . the extent of the Mining Right,
. geological constraints, and
. environmental constraints.
Metallurgical
The basis for assumptions or predictions regarding metallurgical Various metallurgical studies were carried out to establish the
factors or
amenability. It is always necessary as part of the process of beneficiation characteristics of the coal plies and their combined reaction
assumptions
determining reasonable prospects for eventual economic extraction to in the coal beneficiation process.
consider potential metallurgical methods, but the assumptions
regarding metallurgical treatment processes and parameters made
when reporting Mineral Resources may not always be rigorous. Where
this is the case, this should be reported with an explanation of the
basis of the metallurgical assumptions made.
Environmenta
Assumptions made regarding possible waste and process residue There are no limiting environmental factors other than Regulations relating
l factors or
disposal options. It is always necessary as part of the process of to mining adjacent to wetlands and the 1:100 year floodline.
assumptions
determining reasonable prospects for eventual economic extraction to
These areas fall outside the Open Pit area and therefore have been
consider the potential environmental impacts of the mining and
excluded from the Coal Resources estimate.
processing operation. While at this stage the determination of potential
environmental impacts, particularly for a greenfields project, may not The relevant regulatory permissions for waste and process residue
always be well advanced, the status of early consideration of these disposal have been obtained.
potential environmental impacts should be reported. Where these
aspects have not been considered this should be reported with an
explanation of the environmental assumptions made.
Criteria JORC Code explanation Commentary
Bulk density
Whether assumed or determined. If assumed, the basis for the The density used in the tonnage calculations is the relative density as
assumptions. If determined, the method used, whether wet or dry, the determined from borehole core samples in the laboratory. The relative
frequency of the measurements, the nature, size and density was determined according to ISO 5072:1997. The density was
representativeness of the samples. determined by weighing a sample suspended in water, then allowing the
sample to drain and the surface water removed and then reweighing the
The bulk density for bulk material must have been measured by
sample in air.
methods that adequately account for void spaces (vugs, porosity,
etc.), moisture and differences between rock and alteration zones Relative densities were determined for all borehole cores submitted to the
within the deposit. laboratories.
Discuss assumptions for bulk density estimates used in the evaluation No bulk densities were determined.
process of the different materials.
Classification
The basis for the classification of the Mineral Resources into varying Coal Resources classification has been done according to the JORC 2012
confidence categories. Code.
Whether appropriate account has been taken of all relevant factors It is the view of the Competent Person that the current classification is
(i.e. relative confidence in tonnage/grade estimations, reliability of acceptable for the type of deposit, drilling density and coal quality data.
input data, confidence in continuity of geology and metal values,
The estimations have been classified into Measured and Indicated Coal
quality, quantity and distribution of the data).
Resources.
Whether the result appropriately reflects the Competent Person’s view
The estimation results appropriately reflect the confidence in tonnage
of the deposit.
estimation, reliability of coal intersection data and quality data.
The result appropriately reflect the CP’s view of the Coal Resources.
Audits or
The results of any audits or reviews of Mineral Resource estimates. Various independent third party audits and reviews have been conducted
reviews
on the Coal Resources estimate and no material issues with either the
methodology applied and the Coal Resources estimate were identified.
Discussion of
Where appropriate a statement of the relative accuracy and The Competent Person applied the principles of the JORC Code 2012 in
relative
confidence level in the Mineral Resource estimate using an approach estimating the Coal Resources at Boikarabelo Coal Mine.
accuracy/
or procedure deemed appropriate by the Competent Person. For
confidence The Coal Resources were estimated using geostatistical analyses and
example, the application of statistical or geostatistical procedures to
variograms of the raw ash content of the coal zones. The variograms
quantify the relative accuracy of the resource within stated confidence
indicate that there is little change in the raw ash variability within the Coal
limits, or, if such an approach is not deemed appropriate, a qualitative
Resources.
discussion of the factors that could affect the relative accuracy and
confidence of the estimate. There is a high level of confidence in the coal zone continuity as is
depicted in the south-west north-east sections shown above (along strike).
Criteria JORC Code explanation Commentary
The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should
include assumptions made and the procedures used.
These statements of relative accuracy and confidence of the estimate
should be compared with production data, where available.
Section 4 Estimation and Reporting of Ore Reserves
Criteria JORC Code explanation Commentary
Mineral Description of the Mineral Resource estimate used as a basis Measured & Indicated Coal Resources were considered for conversion to
Resource Probable Coal Reserves. All Measured and Indicated Coal Resources
for the conversion to an Ore Reserve.
estimate for were converted after applying appropriate modifying factors.
conversion to Clear statement as to whether the Mineral Resources are
The Coal Resources were defined and compiled by the Competent
Ore Reserves reported additional to, or inclusive of, the Ore Reserves.
Person.
The Coal Resources above have been reported separately from other Coal
Resources in Resgen’s tenure for the purpose of this Coal Resources and
Coal Reserves Statement.
The Coal Resources are reported inclusive of the Coal Reserves.
Site visits Comment on any site visits undertaken by the Competent The Competent Persons have visited the site.
Person and the outcome of those visits.
The site visit confirmed the existing infrastructure and services, which were
If no site visits have been undertaken indicate why this is the taken into consideration as part of the modifying factors used to convert
case. the Coal Resources to Coal Reserves.
Study status The type and level of study undertaken to enable Mineral The studies carried out to date, including the optimised mine design,
Resources to be converted to Ore Reserves. equate to a Feasibility Study. These studies confirm that the mine plan is
technically achievable and economically viable.
Criteria JORC Code explanation Commentary
The Code requires that a study to at least Pre-Feasibility
Study level has been undertaken to convert Mineral
Resources to Ore Reserves. Such studies will have been
carried out and will have determined a mine plan that is
technically achievable and economically viable, and that
material Modifying Factors have been considered.
Cut-off The basis of the cut-off grade(s) or quality parameters applied. The quality parameters applied, based on a dual export/domestic business
parameters model, are:
. an export quality product with an average of 14% ash and an
average 25.73 MJ/kg calorific value determined on an AD basis,
and
. a domestic power station product with an average 19.5 MJ/kg
calorific value and an average 31.43 % ash determined on an AD
basis.
Mining factors The method and assumptions used as reported in the Pre- The optimised mine design exercise indicated that an open pit terrace
or
Feasibility or Feasibility Study to convert the Mineral Resource truck and shovel mine was the preferred option. The mining methods are
assumptions
to an Ore Reserve (i.e. either by application of appropriate appropriate and have been well proven over time and are comparable with
factors by optimisation or by preliminary or detailed design). the practices and parameters at Grootegeluk.
The choice, nature and appropriateness of the selected The main principals of this mining design are:
mining method(s) and other mining parameters including
. the establishment of a box-cut,
associated design issues such as pre-strip, access, etc.
. pre-stripping of the overburden, and
The assumptions made regarding geotechnical parameters
(e.g. pit slopes, stope sizes, etc.), grade control and pre- . once steady-state mining operations have been established, roll-
production drilling. over backfill of the overburden will be carried out.
The major assumptions made and Mineral Resource model The key mining Modifying Factors, based on the results of the various
used for pit and stope optimisation (if appropriate). studies conducted by Resgen are:
The mining dilution factors used. ? a cut-off of > 65% ash content,
Criteria JORC Code explanation Commentary
The mining recovery factors used. . a yield cut-off of 24%,
Any minimum mining widths used. . a minimum coal ply thickness of 0.5m,
The manner in which Inferred Mineral Resources are utilised . a mining recovery factor of 95%,
in mining studies and the sensitivity of the outcome to their . a mining dilution factor of 5%,
inclusion.
. a contamination factor of 0.1m of both the roof and floor of the
The infrastructure requirements of the selected mining mining horizons,
methods.
. an overall pit slope angle of 450,
. a minimum bench width of 60m,
. all seams will be mined together, and no stop-start operation or
separate stockpiles will be required, and
. the inclusion of two 75kt blending stockpiles.
The factors are considered to be appropriate for the level of geological
confidence and the type of mining considered.
No Inferred Coal Resources are included in the mine plan.
All relevant infrastructure required to execute the life-of-mine plan has
been considered. The infrastructure to facilitate the open pit terrace mining
will include berms, service stations, workshops and fuel stations.
The access and pre strip requirements were addressed and haul roads
catered for in the waste stripping requirements.
The coal handling and process plant design caters for an appropriate
amount of gangue material to be rejected (i.e. low yield) by the primary
cyclone.
Criteria JORC Code explanation Commentary
Metallurgical The metallurgical process proposed and the appropriateness The coal handling and processing plant has been based on a dense
factors or
of that process to the style of mineralisation. medium separation process to produce two different quality products. The
assumptions
design also incorporates a fines beneficiation circuit. The coarse material
Whether the metallurgical process is well-tested technology or
will be beneficiated through a primary and secondary dense medium
novel in nature.
cyclone. The fines circuit comprises of a fine- and ultra-fine reflux
The nature, amount and representativeness of metallurgical classifier.
test work undertaken, the nature of the metallurgical
Density separation is a well-known and widely used method to upgrade
domaining applied and the corresponding metallurgical
ROM coal to saleable clean coal products.
recovery factors applied.
The discarded material will be placed in the mining void in accordance with
Any assumptions or allowances made for deleterious
the mine design.
elements.
The plant design with regards to sizing and yield envelope is based on slim
The existence of any bulk sample or pilot scale test work and
core information (wash data) which was tested against results obtained
the degree to which such samples are considered
from large diameter core. The tests were conducted by accredited
representative of the orebody as a whole.
laboratories. The slim core data is representative of the deposit. The
For minerals that are defined by a specification, has the ore correlation between large diameter core samples and the slim cores is
reserve estimation been based on the appropriate mineralogy deemed sufficient to base the plant design and operating criteria on. No
to meet the specifications? bulk samples other than the large diameter core samples have been taken.
The large diameter core samples were deemed sufficient for the mine
design process.
The Coal Reserves estimation is based on ROM tonnes and the amount
of saleable product with typical qualities for the product is reported.
Environmental
The status of studies of potential environmental impacts of the Ledjadja has an approved environmental management plan, water-use
mining and processing operation. Details of waste rock license and waste management license, which are required to operate a
characterisation and the consideration of potential sites, mine in South Africa.
status of design options considered and, where applicable, the
The proposed discard and waste dumps have been designed to the
status of approvals for process residue storage and waste
standards required by the National Waste Management Act and form part
dumps should be reported.
of the above-mentioned approvals. The designs include insulation layers
Criteria JORC Code explanation Commentary
at the base and water recovery. Water recovered will be treated before
reuse.
Infrastructure The existence of appropriate infrastructure: availability of land Lephalale is the main source for skilled labour and accommodation for the
for plant development, power, water, transportation project. Travel time from Lephalale to the mine by bus is expected to be 1
(particularly for bulk commodities), labour, accommodation; or hour 30 minutes maximum.
the ease with which the infrastructure can be provided, or
Sufficient commercial, industrial and mining support services are located
accessed.
in Lephalale, including fuel, telecommunications and security.
Expert studies confirm sufficient water is available through identified water
sources. A water use license is in place for sourcing water from these
water sources, as well as the approval of the required water storage
facilities.
A power supply agreement has been signed with the National Power
Supplier (Eskom). An 80MW power supply substation has already been
erected and equipped. Final connection to the national grid and
commissioning is still outstanding. The construction power is being
supplied to the mine through two 22kV rural lines which have already been
installed and commissioned.
To ensure road access to the mine and the farms in the immediate
surrounding area Ledjadja will assist the relevant Authorities to upgrade
the regional road network. .
Transnet Freight Rail (TFR) will be used for the transportation by rail of
both the export and domestic coal products. A railway link between
Ledjadja and the TFR main line is to be constructed and will be operated
by TFR. A rapid load-out facility and railway siding will be constructed on
the mine.
All infrastructure required for mining and coal production, including the coal
handling and processing plant, all mine buildings, heavy machinery
equipment support infrastructure, fuel supply, power supply, water supply,
Criteria JORC Code explanation Commentary
sanitation services, information and communication services and security
will be constructed as part of the project.
Costs The derivation of, or assumptions made, regarding projected Capital Costs for the project include:
capital costs in the study.
. the capital cost for the construction of the rail siding,
The methodology used to estimate operating costs.
. Ledjadja’s capital contribution towards the upgrades to the
Allowances made for the content of deleterious elements. regional road network,
The source of exchange rates used in the study. . the capital cost for the construction of the coal handling and
processing plant,
Derivation of transportation charges.
. the capital costs for the establishment of the On Mine
The basis for forecasting or source of treatment and refining Infrastructure,
charges, penalties for failure to meet specification, etc. . the capital costs for Overburden and Discard dumps, and
The allowances made for royalties payable, both Government . the capital cost for electricity, equipment & vehicles, staff &
and private. ancillaries based on actual costs incurred on the project to date.
Mining costs are based on a Contractor Mining price quotation.
Processing costs are based on a lump-sum turnkey pricing structure and
quotation.
Distribution costs for the export Coal product are based on indicative rates
for rail and port charges received from Trans Freight Rail (TFR).
Marketing costs are based on a contract for Supply Chain Management
and Marketing services with Noble Resources International Pte Ltd.
The USD/ZAR exchange rate assumed is based on actual historical
average exchange rates.
Allowances have been made for taxes and royalties payable based on
South African legislative requirements.
Criteria JORC Code explanation Commentary
Operational costs for staff, electricity, water, engineering, safety and
environmental management, security, vehicles, specialist services,
information and communication services and consumables are based on
estimate quantities and benchmark rates.
Revenue The derivation of, or assumptions made regarding revenue A price forecast for Ledjadja’s export coal was prepared by an independent
factors
factors including head grade, metal or commodity price(s) third party. The economic evaluation for the project has, however, been
exchange rates, transportation and treatment charges, based on a long term price forecast by Resgen’s Management.
penalties, net smelter returns, etc.
The pricing assumed for the domestic coal sales has been based on a
The derivation of assumptions made of metal or commodity conservative assumption of the typical margin on costs typically paid on
price(s), for the principal metals, minerals and co-products. cost-plus supply agreements within South Africa.
Market The demand, supply and stock situation for the particular An independent market analysis predicts a gradual depletion of the current
assessment
commodity, consumption trends and factors likely to affect oversupply of export thermal coal over the next 6 years which will lead to
supply and demand into the future. a slow increase in thermal seaborne coal prices from the low US$50/tonne
to mid US$60/tonne. Thereafter, a further increase in prices, to nearly
A customer and competitor analysis along with the
$90/tonne for exports out of Richards Bay is expected, as new projects will
identification of likely market windows for the product.
need to be developed to meet demand.
Price and volume forecasts and the basis for these forecasts.
An independent market analysis by a third party predicts a decline in
For industrial minerals the customer specification, testing and domestic supply due to declining Coal Reserves and mine closures. An
acceptance requirements prior to a supply contract. independent assessment of Ledjadja’s project against comparable
probable projects, indicates that based on indicative costs, Ledjadja would
be in the top half of the cost curve of competing projects when at maximum
production.
Economic The inputs to the economic analysis to produce the net An economic analysis (financial valuation) was conducted to determine the
present value (NPV) in the study, the source and confidence net present value (NPV) of the project. The economic analysis confirms
of these economic inputs including estimated inflation, the economic viability of the project.
discount rate, etc.
Key inputs and assumptions to the economic analyses include:
NPV ranges and sensitivity to variations in the significant
assumptions and inputs.
Criteria JORC Code explanation Commentary
. the financial model has been based on a ROM production of 304
million tonnes, for a 21 year period at an average annual ROM
production rate of 14.5 million tonnes,
. based on the above, a total of 132 million tonnes coal product will
be produced at an estimated 6.3 million tonnes average annual
coal production rate,
. a discount rate of 10% has been applied, and
. an estimated annual inflation rate, based on an actual historical
average rate, has been applied.
The financial model has been based on inputs from a combination of offer
price and estimates provided by potential suppliers based on designs and
study work at Feasibility Study level. Owner’s cost inputs were based on
actual costs experienced on the project thus far and factored estimates
from previous projects. An independent market analysis was conducted
on the domestic and export product which produced consensus pricing for
the export product and a prediction of supply and demand in both markets.
The inputs to the financial model meet the requirements of the JORC
Code 2012 .
The financial model was analysed to test the sensitivity of the NPV on
different cost and revenue input variables. The sensitivity analyses
indicates that the project is extremely sensitive to price, the ZAR/US$
exchange rate and coal quality.
An independent evaluation of the financial model carried out a Monte Carlo
simulation, with sensitivities based on economic parameters as well as
production volumes and product quality. This evaluation has indicated that
the Project is financially sound.
Social The status of agreements with key stakeholders and matters Ledjadja has a social and labour plan, which has been approved by the
leading to social licence to operate. Department of Mineral Resources.
Criteria JORC Code explanation Commentary
Other To the extent relevant, the impact of the following on the An approved Mining Right, together with all of the legal permits and
project and/or on the estimation and classification of the Ore licences required to operate a mine in South Africa, has been received.
Reserves:
Floods in excess of the magnitude of a 1 in 100 year of the Limpopo River
Any identified material naturally occurring risks. and other smaller streams that are crossed by means of railway bridges
towards Lephalale have been considered.
The status of material legal agreements and marketing
arrangements.
The status of governmental agreements and approvals critical
to the viability of the project, such as mineral tenement status,
and government and statutory approvals. There must be
reasonable grounds to expect that all necessary Government
approvals will be received within the timeframes anticipated in
the Pre-Feasibility or Feasibility study. Highlight and discuss
the materiality of any unresolved matter that is dependent on
a third party on which extraction of the reserve is contingent.
Classification The basis for the classification of the Ore Reserves into At this stage Resgen has converted its Coal Resources to Probable Coal
varying confidence categories. Reserves. No Proved Coal Reserves have been declared based on the
level of confidence associated with the potential domestic off-take prices.
Whether the result appropriately reflects the Competent
Person’s view of the deposit. All Measured Coal Resources have been converted into Probable Coal
Reserves.
The proportion of Probable Ore Reserves that have been
derived from Measured Mineral Resources (if any). The classification of the Coal Reserves appropriately reflects the view of
the Competent Person.
Audits or The results of any audits or reviews of Ore Reserve estimates. No independent third party review and audit of the Coal Reserves has
reviews
been conducted.
Discussion of Where appropriate a statement of the relative accuracy and The Coal Reserves are based on global estimates and appropriate
relative
confidence level in the Ore Reserve estimate using an Modifying Factors. The Competent Person is of the opinion that the
accuracy/
approach or procedure deemed appropriate by the Competent approach and procedure used to quantify the relative accuracy of the Coal
confidence
Person. For example, the application of statistical or Reserve is appropriate, to a high level of confidence.
Criteria JORC Code explanation Commentary
geostatistical procedures to quantify the relative accuracy of
the reserve within stated confidence limits, or, if such an
approach is not deemed appropriate, a qualitative discussion
of the factors which could affect the relative accuracy and
confidence of the estimate.
The statement should specify whether it relates to global or
local estimates, and, if local, state the relevant tonnages,
which should be relevant to technical and economic
evaluation. Documentation should include assumptions made
and the procedures used.
Accuracy and confidence discussions should extend to
specific discussions of any applied Modifying Factors that may
have a material impact on Ore Reserve viability, or for which
there are remaining areas of uncertainty at the current study
stage.
It is recognised that this may not be possible or appropriate in
all circumstances. These statements of relative accuracy and
confidence of the estimate should be compared with
production data, where available.
Appendix 2 Borehole Coordinates and Collar elevation
Resource Generation Australia (ACN 059 950 337)
c/o Level 1, 17 Station Road, Indooroopilly, QLD, 4068
GPO Box 126, Albion QLD 4010. Phone +27 (012) 345 1057 Fax +27 (012) 345 5314
Directors: Denis Gately (Chairman), Lulamile Xate (Deputy Chairman), Rob Lowe (CEO), Robert Croll, Dr. Konji Sebati,
Colin Gilligan, Leapeetswe Molotsane www.resgen.com.au
BOREID EASTING NORTHING COLLAR ELEVATION FINAL DEPTH AZIMUTH DIP TYPE COORDSYS
DO01 17854.79 -2609505.27 838.46 160 0 -90 PDH LO27_WGS84
DO02 18883.5 -2610442.86 838.16 150 0 -90 PDH LO27_WGS84
DO03 20126.64 -2610170.13 840.5 156 0 -90 PDH LO27_WGS84
DO04 21815.37 -2609997.69 841.06 162 0 -90 PDH LO27_WGS84
DO05 20139.97 -2609353.93 838.89 162 0 -90 PDH LO27_WGS84
DO06 21502.57 -2608954.88 839.04 162 0 -90 PDH LO27_WGS84
K01 16987.89 -2611445.52 838.79 138 0 -90 PDH LO27_WGS84
K02 17313.82 -2611964.34 845.1 132 0 -90 PDH LO27_WGS84
K03 17630.51 -2612413.89 845.82 108 0 -90 PDH LO27_WGS84
K04 17879.6 -2612780.97 847.6 90 0 -90 PDH LO27_WGS84
K05 15371.7 -2611512.76 840.33 130 0 -90 PDH LO27_WGS84
K06 15751.75 -2611872.22 842.83 108 0 -90 PDH LO27_WGS84
K07 16077.12 -2612235.04 845.25 108 0 -90 PDH LO27_WGS84
K08 16392.4 -2612614.84 848.16 168 0 -90 PDH LO27_WGS84
K09 16694.63 -2612975.23 850.41 168 0 -90 PDH LO27_WGS84
K10 18127.68 -2613149.45 850.36 90 0 -90 PDH LO27_WGS84
K12 17239.24 -2613350.24 854.93 108 0 -90 PDH LO27_WGS84
KALK07 17937.83 -2612828.78 847.79 145 0 -90 PDH LO27_WGS84
KD01 14833.11 -2611688.19 842.32 131.2 0 -90 DDH LO27_WGS84
KD02 15454.9 -2611769.61 842.49 125.27 0 -90 DDH LO27_WGS84
KD03 15915.42 -2611410.71 838.78 124.81 0 -90 DDH LO27_WGS84
KD04 16261.47 -2611789.98 842.25 138.02 0 -90 DDH LO27_WGS84
KD05 16386.34 -2611251.64 838.3 146.65 0 -90 DDH LO27_WGS84
KD06 16814.88 -2611099.52 838.75 149.32 0 -90 DDH LO27_WGS84
KD07 16600.23 -2611566.39 839.7 137.6 0 -90 DDH LO27_WGS84
KD08 16949.81 -2611839.47 842.54 130.55 0 -90 DDH LO27_WGS84
KD09 17332.62 -2611108.91 838.96 150 0 -90 PDH LO27_WGS84
KD10 17437.64 -2611549.42 840.92 116.46 0 -90 DDH LO27_WGS84
KD11 17621.41 -2610887.36 839.8 152.53 0 -90 DDH LO27_WGS84
KD12 17835.69 -2611349.34 840.04 141.91 0 -90 DDH LO27_WGS84
KD13 17892.96 -2611726.73 842.59 122.67 0 -90 DDH LO27_WGS84
KD14 18163.72 -2612054.74 844.71 119.85 0 -90 DDH LO27_WGS84
KD15 18074.96 -2610786.83 840.01 146.63 0 -90 DDH LO27_WGS84
KD16 18333.5 -2611200.49 840.07 139.78 0 -90 DDH LO27_WGS84
KD17 18474.01 -2611554.92 842.54 121.08 0 -90 DDH LO27_WGS84
KD18 18686.29 -2611927.12 844.89 151.76 0 -90 PDH LO27_WGS84
KD19 19022.11 -2612231.94 846.44 108 0 -90 PDH LO27_WGS84
KD20 17695.31 -2613466.73 852.9 70 0 -90 PDH LO27_WGS84
KD22A 16250 -2611723 841 128.7 0 -90 LCDDH LO27_WGS84
KD22B 16251 -2611720 841 128.7 0 -90 LCDDH LO27_WGS84
KD25 16189 -2611391 840 134.62 0 -90 DDH LO27_WGS84
KD26 16169.22 -2611514.56 839.68 128.3 0 -90 DDH LO27_WGS84
KD27 16155.06 -2611660.11 840.92 124.18 0 -90 DDH LO27_WGS84
KD28 16139.28 -2611778.06 842.13 122.45 0 -90 DDH LO27_WGS84
PAGE 51
KD29 16123.43 -2611897.63 843.11 113 0 -90 DDH LO27_WGS84
W01 13813.52 -2609102.38 826.41 383.91 0 -90 PDH LO27_WGS84
W02 13882.96 -2610321.52 831.03 148 0 -90 PDH LO27_WGS84
W03 14960.11 -2610001.44 831.83 168 0 -90 PDH LO27_WGS84
W04 16472.47 -2609382.33 839.84 180 0 -90 PDH LO27_WGS84
W05 13723.99 -2611591.54 843.8 144 0 -90 PDH LO27_WGS84
W06 16327.63 -2610947.57 838.23 162 0 -90 PDH LO27_WGS84
WDN01 14062.97 -2611546.93 841.83 141.74 0 -90 DDH LO27_WGS84
WDN02 14730.72 -2611368.37 839.52 152.63 0 -90 DDH LO27_WGS84
WDN03 15460.85 -2611184.17 837.87 176.92 0 -90 DDH LO27_WGS84
WDN04 13716.51 -2611246.25 839.72 152.59 0 -90 DDH LO27_WGS84
WDN05 14423.03 -2611057.8 836.78 162 0 -90 DDH LO27_WGS84
WDN06 15124 -2610864.69 836.19 144.68 0 -90 DDH LO27_WGS84
WDN07 15828.07 -2610689.85 837.57 161.92 0 -90 DDH LO27_WGS84
WDN08 16500.12 -2610817.58 838.5 146.3 0 -90 DDH LO27_WGS84
WDN09 17801.74 -2610496.17 840.09 164.92 0 -90 DDH LO27_WGS84
WDN10 17084.11 -2609996.06 838.59 149.44 0 -90 DDH LO27_WGS84
WDN11 14717.83 -2610607.96 833.44 141.23 0 -90 DDH LO27_WGS84
WDN12 16619.25 -2610068.81 838.82 155.92 0 -90 DDH LO27_WGS84
WDN13 15316.6 -2610471.88 834.94 215.85 0 -90 DDH LO27_WGS84
WDN14 16537.59 -2610413.69 838.47 167.92 0 -90 DDH LO27_WGS84
WDN15 16062.24 -2611024.66 837.74 144.23 0 -90 DDH LO27_WGS84
WDN16 16192.61 -2610520.25 838.05 155.9 0 -90 DDH LO27_WGS84
WDN17 16953.93 -2610393.56 838.66 161.58 0 -90 DDH LO27_WGS84
WDN18 17338.32 -2610278.14 838.69 155.64 0 -90 DDH LO27_WGS84
WDN19 17827.97 -2610135.43 838.94 158.6 0 -90 DDH LO27_WGS84
WDN20 17510.33 -2610658.72 839.05 160.12 0 -90 DDH LO27_WGS84
WDN21A 15447 -2611122 840 146.74 0 -90 LCDDH LO27_WGS84
WDN21B 15442 -2611125 840 147.2 0 -90 LCDDH LO27_WGS84
WDN22A 16195 -2610461 840 162.37 0 -90 LCDDH LO27_WGS84
WDN22B 16191 -2610457 840 145.1 0 -90 LCDDH LO27_WGS84
WPN01 17156.4 -2610713.42 839 168 0 -90 PDH LO27_WGS84
WPN03 17738.61 -2609820.86 838.5 168 0 -90 PDH LO27_WGS84
WPN04 14060.98 -2610828.39 834.7 168 0 -90 PDH LO27_WGS84
WPN06 15945.17 -2610194.46 837.5 142 0 -90 PDH LO27_WGS84
WPN07 14419.35 -2611459.18 840.3 150 0 -90 PDH LO27_WGS84
WPN08 15131.87 -2611270.07 838.46 150 0 -90 PDH LO27_WGS84
WPN09 15869.59 -2611054.56 837.42 168 0 -90 PDH LO27_WGS84
WPN10 14060.52 -2611139.42 837.65 168 0 -90 PDH LO27_WGS84
WPN11 14738.74 -2610977.14 836.01 168 0 -90 PDH LO27_WGS84
WPN12 15464.31 -2610785.76 836.44 162 0 -90 PDH LO27_WGS84
PAGE 52
Date: 23/01/2017 08:56:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
