Other Key Projects

Key projects in the pipeline

Vaalhoek Mine (Open cut)

Vaalhoek resource (0.62Mt @ 17.5g/t Au for 335koz, 82% Inferred), 20km north of the TGME Plant (Figure 1), represents mostly flat-lying reefs, are amenable to open-cut mining and is an example of the type of high grade targets the Company is seeking to bring into production. This represents the highest grade open-pit resource in the portfolio, and thus is a priority for the Company to bring into reserves as soon as practical.

Figure 1: Central/Northern mines

 

Rietfontein Mine (Underground adit development)

Figure 2: Aerial view of Southern tenements, Rietfontein Mine looking North

 

The first underground project which may be developed is Rietfontein (Figure 2), subject to confirmation of reserves. The project is fully permitted so the main risks to the development timeline will be the completion of drilling and engineering work.

Currently Rietfontein has registered JORC Resource of 2.88Mt @ 8.42g/t Au for 780Koz (31% Indicated, 69% Inferred). (Figures 3, 4)

Figure 3: JORC Resource at Rietfontein as at April 2018

 

Figure 4: Resource/grade distribution at Rietfontein (cross section)

 

The mining permit issued in 2006 allows for the mining of Rietfontein and specifically by a mining right (MR358) registered with the Department of Mineral Resources. The mining permit is valid until 2028 with options to extend. This right allows for the construction of the surface infrastructure, rehabilitation of the adits, access to the underground workings, disposal of waste rock on the surface, and mining of ore.

The project also has a water user licence, which is valid for the duration of the project. The mining right includes phase two developments in the southern area of Rietfontein, where additional mining infrastructure is planned on surface.

Dewatering is under way at Rietfontein to enable construction of underground access adjacent to the old workings. Over 305ML has been removed during 2017/18 with very minimal usage of water pumps due to the high-low topography advantage, with the level dropping over 30m across the 3km of workings. This will facilitate underground drilling to upgrade the resources, ultimately towards reserve status.

A scoping study was announced to the ASX on 16 May 2017:

https://www.asx.com.au/asxpdf/20170516/pdf/43j92dc77h0m0m.pdf

 

Beta Mine (Underground adit development)

Beta Mine was one of the first producing mines in the Pilgrim’s Rest area working almost uninterrupted until 1972. The fortunes of the mine varied between exceedingly rich, with grades of well over 31g/t near the outcrop, to a narrow pinching reef at deeper levels.

The Beta Reef is developed about 20 metres above the Beehive Chert and is well represented in the Pilgrim’s Rest area. It has been mined at Theta Hill and Browns Hill (DG4) but was very extensively mined at the Beta Mine, immediately west of the TGME Plant. It was last mined in 1971.

Recorded mining production at Beta were 818,000 tons of ore milled averaging 21g/t for 552,285 gold ounces.

The Beta Reef is conformable to the bedding, dipping at 5 to 7 degrees to the west and strike in a north/south direction. The underground average reef width was 24cm, comprising quartz and sulphides with imbricate staking of the reef giving rise to the thicker richer zones. The reef is locally high in copper and sulphur. At depth, the Beta Reef splits into three bands with the middle Beta Reef remaining the economic horizon. Stoping has taken place on a limited scale on the lower Beta Reef as evidenced on historical stoping plans from the mine.

Currently registered JORC Resource at Beta is 1.09Moz averaging 5.9g/t (46% Indicated, 54% Inferred).

Figure 5: JORC Resource at Beta underground as at April 2018

 

A scoping study was announced to the ASX on 16 May 2017:

https://www.asx.com.au/asxpdf/20170516/pdf/43j92dc77h0m0m.pdf

 

Other Underground developments

The Company will over time assess numerous other underground opportunities within its portfolio, including Frankfort, CDM, Vaalhoek (U/G), Olifantsgeraamte, Glynn’s Lydenburg, Ponieskrantz, Nestor, etc. (Figure 6)

Figure 6: JORC Resource table of the Company’s Underground Operations as at 1 May 2019