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Mineral Reserves and Resources
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Somkhele has Reserves which can
support a life of mine of 20 years.
SamQuarz has SAMREC-compliant Reserves of 60 million tonnes of quartzite and 11.48 million tonnes of chert. Veremo project delineated an updated SAMREC compliant measured resource of 44.3 million tonnes and indicated resource of 29.1 million tonnes in the weathered zone of the ore body. The resource on the fresh zone will be finalised with the bankable feasibility study. |
Somkhele Mineral Resources and Reserves
Somkhele: summary Reserves and Resources as at 30 June 2011
| Selective mining basis | Bulk mining basis | Total | |||||||||||||||||||
| Area 1 | Area 2 | Area 3 | Total | Luhlanga | KwaQubuka | Emalahleni | Total | ||||||||||||||
| Mineable in situ tonnes | Mineable in situ tonnes | ||||||||||||||||||||
| (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | |||||||||||||
Resources at 30 June 2011 |
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| Measured | 9.22 | – | – | 9.22 | 8.68 | 4.20 | 9.35 | 22.23 | 31.45 | ||||||||||||
| Indicated | 13.25 | – | – | 13.25 | 1.08 | 0.23 | 5.35 | 6.66 | 19.91 | ||||||||||||
| Inferred | 4.30 | – | 21.42 | 25.72 | 0.12 | 0.07 | – | 0.19 | 25.91 | ||||||||||||
| Total | 26.77 | – | 21.42 | 48.20 | 9.88 | 4.50 | 14.70 | 29.08 | 77.28 | ||||||||||||
| ROM tonnes | ROM tonnes | ||||||||||||||||||||
| (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | |||||||||||||
Reserves at 30 June 2011 |
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| Proven | 8.82 | – | – | 8.82 | 8.25 | 3.99 | 8.88 | 21.12 | 29.94 | ||||||||||||
| Probable | 12.59 | – | – | 12.59 | 1.03 | 0.22 | 5.08 | 6.33 | 18.92 | ||||||||||||
| Total at 30 June 2011 | 21.41 | – | – | 21.41 | 9.28 | 4.21 | 13.96 | 27.45 | 48.86 | ||||||||||||
| Total estimated | |||||||||||||||||||||
saleable tonnes |
14.69 |
– |
– |
14.69 |
4.18 |
1.89 |
6.28 |
12.35 |
27.04 |
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The above table summarises the Reserves and Resources as at 30 June 2011 at Somkhele. Somkhele management estimates that the 48.86 million tonnes of Reserves equates to approximately 27 million tonnes of salable product. In addition, the exploration in the Northern Areas has not been included in this Resource Statement. Block models for these areas are currently being developed for sign off by a competent person.
The Mineral Resources and Reserves reported for Areas 1, 2 and 3 are based on a Competent Person’s Report (CPR) compiled by Snowden Mining Industry Consultants (Pty) Ltd (Snowden) in October 2006. This report was in accordance with the requirements of the SAMREC Code. These values have been updated to reflect tonnes already depleted. The updated figures have not yet been signed off by an independent competent person.
| Somkhele mining and exploration areas | Selective mining and bulk mining | |
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| Bulk Mining implies that all coal seams (denoted by B1, B2 and B3) are mined along with the partings (denoted by P1 and P2). Selective Mining implies only to the coal seams are mined. Bulk Mining therefore gives you a higher tonnage but lower yields. |
The Mineral Resources reported for Luhlanga, KwaQubuka and Emalahleni are based on recent drilling campaigns and as delineated and signed off by Applied Geology and Mining (Pty) Ltd (AGM).
The Reserves and Resources are reported on a selective mining basis for Areas 1, 2 and 3 and on a bulk mining basis for Luhlanga, KwaQubuka and Emalahleni.
The Mineral Reserves reported for Luhlanga, KwaQubuka and Emalahleni are based on final life of mine designs concluded by Somkhele management.
The Mineral Resources and Reserves as stated by AGM and Somkhele management for Luhlanga, KwaQubuka and Emalahleni are currently being reviewed by SRK Consulting (South Africa) (Pty) Ltd (SRK) with the report expected to be issued by the first quarter of 2012 (SRK Review 1).
New Reserves and Resources added include those as delineated by AGM after following SAMREC-complaint exploration procedures for the drilling of 25,798 metres of percussion and 2,870 metres of core drilling in the indicated areas.
Petmin is in the process of updating all of its current Mineral Resources and Reserves for Somkhele, including the inclusion of new Resources and Reserves delineated by its current exploration activities. It is anticipated that SRK will issue a second report on all of this work by the end of the third quarter of 2012 (SRK Review 2).
The total open cast Reserves at Somkhele are currently 48.86 million tonnes, which equates to approximately 27 million tonnes of salable product. At full capacity, the mine will produce about 1.3 million tonnes of product per annum. At this rate, Somkhele has an opencast life of mine of over 20 years. It is anticipated that the current exploration drilling programme will increase open cast Reserves sufficiently to sustain the Somkhele operation for in excess of 25 years.
Somkhele: Resource Statement as at 30 June 2011
| Selective mining basis | Bulk mining basis | Grand | |||||||||||||||||||
| Area 1 | Area 2 | Area 3 | Total | Luhlanga | KwaQubuka | Emalahleni | Total | Total | |||||||||||||
| Mineable in situ tonnes* | Mineable in situ tonnes** | ||||||||||||||||||||
| (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | |||||||||||||
| Resources at start | |||||||||||||||||||||
| of mining*** | 27.37 | 2.40 | 21.42 | 51.20 | 15.47 | 2.50 | 6.00 | 23.97 | 75.17 | ||||||||||||
| Measured | 9.82 | 2.40 | – | 12.22 | 11.90 | – | – | 11.90 | 24.12 | ||||||||||||
| Indicated | 13.25 | – | – | 13.25 | 3.37 | – | – | 3.37 | 16.62 | ||||||||||||
| Inferred | 4.30 | – | 21.42 | 25.72 | 0.20 | 2.50 | 6.00 | 8.70 | 34.42 | ||||||||||||
| Net resources depleted** | – | 2.01 | – | 2.01 | – | – | – | – | – | ||||||||||||
| Measured | – | 2.01 | – | 2.01 | – | – | – | – | – | ||||||||||||
| Indicated | – | – | – | – | – | – | – | – | – | ||||||||||||
| Inferred | – | – | – | – | – | – | – | – | – | ||||||||||||
| Resources at 1 July 2010 | 27.37 | 0.39 | 21.42 | 49.19 | 15.47 | 2.50 | 6.00 | 23.97 | 73.16 | ||||||||||||
| Measured | 9.82 | 0.39 | – | 10.21 | 11.90 | – | – | 11.90 | 22.11 | ||||||||||||
| Indicated | 13.25 | – | – | 13.25 | 3.37 | – | – | 3.37 | 16.62 | ||||||||||||
| Inferred | 4.30 | – | 21.42 | 25.72 | 0.20 | 2.50 | 6.00 | 8.70 | 34.42 | ||||||||||||
| Resources added during 2011 | – | – | – | – | – | 4.43 | 14.70 | 19.13 | 19.13 | ||||||||||||
| Measured | – | – | – | – | – | 4.20 | 9.35 | 13.55 | 13.55 | ||||||||||||
| Indicated | – | – | – | – | – | 0.23 | 5.35 | 5.58 | 5.58 | ||||||||||||
| Inferred | – | – | – | – | – | – | – | – | – | ||||||||||||
| Resources depleted during | |||||||||||||||||||||
| 2011**** | 0.60 | 0.39 | – | 0.99 | 5.59 | 2.43 | 6.00 | 14.02 | 15.01 | ||||||||||||
| Measured | 0.60 | 0.39 | – | 0.99 | 3.22 | – | – | 3.22 | 4.21 | ||||||||||||
| Indicated | – | – | – | – | 2.29 | – | – | 2.29 | 2.29 | ||||||||||||
| Inferred | – | – | – | – | 0.08 | 2.43 | 6.00 | 8.51 | 8.51 | ||||||||||||
| Resources at 30 June | |||||||||||||||||||||
| 2011***** | 26.77 | – | 21.42 | 48.20 | 9.88 | 4.50 | 14.70 | 29.08 | 77.28 | ||||||||||||
| Measured | 9.22 | – | – | 9.22 | 8.68 | 4.20 | 9.35 | 22.23 | 31.45 | ||||||||||||
| Indicated | 13.25 | – | – | 13.25 | 1.08 | 0.23 | 5.35 | 6.66 | 19.91 | ||||||||||||
| Inferred | 4.30 | – | 21.42 | 25.72 | 0.12 | 0.07 | – | 0.19 | 25.91 | ||||||||||||
| Total mineable in situ tonnes | |||||||||||||||||||||
| at 30 June 2011 | 26.77 | 0.00 | 21.42 | 48.20 | 9.88 | 4.50 | 14.70 | 29.08 | 77.28 | ||||||||||||
| * | Mineable in situ tonnes have been calculated using a geological loss factor of 10% for Measured, 20% for Indicated and 50% for Inferred Resources for Areas 1, 2, 3 and Luhlanga. |
| ** | Mineable in situ tonnes have been calculated using a geological loss factor of 5% for Measured, 10% for Indicated and 50% for Inferred Resources for KwaQubuka and Emalahleni. |
| *** | Resources for Areas 1, 2 and 3 at start of mining signed off by Snowden in 2006, Resources for Luhlanga, KwaQubuka and Emalahleni signed off by Snowden in 2009. |
| **** | Resources in Areas 1 and 2 were depleted through mining, Resources in Luhlanga, KwaQubuka and Emalahleni were depleted due to changes in geological interpretation. |
| ***** | Resources for Luhlanga, KwaQubuka and Emalahleni signed off by Applied Geology and Mining (Pty) Ltd. |
| Note: | Depletion figures for Areas 1 and 2 from the start of mining have not been signed off by an independent competent person and are provided by management for guidance only. |
Somkhele: Reserve Statement as at 30 June 2011
| Selective mining basis | Bulk mining basis | Grand | |||||||||||||||||||
| Area 1 | Area 2 | Area 3 | Total | Luhlanga | KwaQubuka | Emalahleni | Total | Total | |||||||||||||
| Mineable in situ tonnes | Mineable in situ tonnes | ||||||||||||||||||||
| (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | |||||||||||||
| Reserves at start of mining* | 21.92 | 2.28 | – | 24.20 | – | – | – | – | 24.20 | ||||||||||||
| Probable | 9.33 | 2.28 | – | 11.61 | – | – | – | – | 11.61 | ||||||||||||
| Proven | 12.59 | – | – | 12.59 | – | – | – | – | 12.59 | ||||||||||||
| Net Reserves depleted to | |||||||||||||||||||||
| June 2010 | – | 1.94 | – | 1.94 | – | – | – | – | 1.94 | ||||||||||||
| Probable | – | 1.94 | – | 1.94 | – | – | – | – | 1.94 | ||||||||||||
| Proven | – | – | – | – | – | – | – | – | – | ||||||||||||
| Reserves at 1 July 2010 | 21.92 | 0.34 | – | 0.85 | – | – | – | – | 22.26 | ||||||||||||
| Probable | 9.33 | 0.34 | – | 0.85 | – | – | – | – | 9.67 | ||||||||||||
| Proven | 12.59 | – | – | – | – | – | – | – | 12.59 | ||||||||||||
| Reserves added during 2011 | – | – | – | – | 9.28 | 4.21 | 13.96 | 27.45 | 27.45 | ||||||||||||
| Probable | – | – | – | – | 8.25 | 3.99 | 8.88 | 21.12 | 21.12 | ||||||||||||
| Proven | – | – | – | – | 1.03 | 0.22 | 5.08 | 6.33 | 6.33 | ||||||||||||
| Reserves depleted | |||||||||||||||||||||
| during 2011 | 0.51 | 0.34 | – | 0.85 | – | – | – | – | 0.85 | ||||||||||||
| Probable | 0.51 | 0.34 | – | 0.85 | – | – | – | – | 0.85 | ||||||||||||
| Proven | – | – | – | – | – | – | – | – | – | ||||||||||||
| Reserves at 30 June 2011** | 21.41 | – | – | 21.41 | 9.28 | 4.21 | 13.96 | 27.45 | 48.86 | ||||||||||||
| Probable | 8.82 | – | – | 8.82 | 8.25 | 3.99 | 8.88 | 21.12 | 29.94 | ||||||||||||
| Proven | 12.59 | – | – | 12.59 | 1.03 | 0.22 | 5.08 | 6.33 | 18.92 | ||||||||||||
Total at 30 June 2011 |
21.41 |
– |
– |
21.41 |
9.28 |
4.21 |
13.96 |
27.45 |
48.86 |
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| Total estimated saleable | |||||||||||||||||||||
| tonnes*** | 14.69 | – | – | 14.69 | 4.18 | 1.89 | 6.28 | 12.35 | 27.04 | ||||||||||||
| * | Reserves for Areas 1, 2 and 3 at start of mining signed off by Snowden in 2006. |
| ** | Reserves for Luhlanga, KwaQubuka and Emalahleni signed off by Applied Geology and Mining (Pty) Ltd. |
| *** | Saleable tonnes for Areas 1, 2 and 3 have been calculated by applying a yield of 68.6% as per the CPR. For Luhlanga, KwaQubuka and Emalahleni a yield of 45% has been used due to these areas being quoted on a bulk mining basis. This figure is a Somkhele management estimate based on geology and plant performance. |
| Note: | Depletion figures for Areas 1 and 2 from the start of mining have not been signed off by an independent competent person and are provided by management for guidance only. |
SamQuarz Mineral Resources and Reserves
The Mineral Resources and Reserves, reported in accordance with the requirements of the SAMREC 2007 Code, were compiled from results of a drilling programme carried out during 2007 and 2008, and were published in a Competent Person’s Report (CPR) published on 1 October 2008 by SRK Consulting (South Africa) (Pty) Ltd. A summary of the CPR was reported in the Petmin Annual Review of 2008 and 2009.
Mineral Resources Statement
The Mineral Resources Statement below reflects a combined quartzite Measured Resource of 60.63 million tonnes and an Indicated Resource of 19.97 million tonnes. Together, at 80.60 million tonnes, they comprise the entire quartzite body.
The total estimated resource for chert and chert products is 59.79 million tonnes. Additional chert may exist beyond the limits of the deposit model. However, there is no drilling information to support a resource estimate. See detailed mineral resources table below.
SamQuarz Revised Mineral Resources Statement – as updated by SRK in October 2008
| Resource Classification | Quarzite* (Mt) |
Chert^ (Mt) |
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| Measured | 60.63 | 7.94 | |||
| Indicated | 19.97 | 3.54 | |||
| Total measured and indicated | 80.60 | 11.48 | |||
| Inferred | – | 48.31 | |||
| Total Resources | 80.60 | 59.79 |
| * | The estimated quartzite Mineral Resource was divided as follows: |
| Measured: total resource within the Base Case Pit outline | |
| Indicated: balance of the resource outside the Base Case Pit outline | |
| Inferred: there are no Inferred Resources | |
| ^ | The estimated Mineral Resource for chert and chert products was divided as follows: |
| Measured: estimated resource for chert and chert products within years 1 to 20 in Base Case Pit outline | |
| Indicated: balance of the estimated resource from year 21 onward | |
| Inferred: balance of the estimated resource lying outside the Base Case Pit limits |
Mineral Reserve Statement
The classification of reserves is based on the running contracts for silica and chert products. Proved Reserves include all ore production for years one to 20 with the balance to the end of life of pit stated in the Probable classification.
SamQuarz Revised Mineral Resources Statement – as updated by SRK in October 2008
| Resource Classification | Quarzite* (Mt) |
Chert^ (Mt) |
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| Proved | 19.16 | 7.94 | |||
| Probable | 41.48 | 3.54 | |||
| Total | 60.64 | 11.48 |
SamQuarz Mine Depletion to 30 June 2011
| Reserves | Mineral | Reserve | Mining Method |
ROM Tonnes (Mt) |
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| 30 June 2010 | Quartize /chert |
Proved | Opencast | 68.11 | |||||
| Mined this year | 1.364 | ||||||||
| 30 June 2011 | 66.746 |
The estimated depletion of reserves due to mining operations from the dates of the previous CPRs has not been independently verified.
Veremo Mineral Resources
The following SAMREC-compliant Resources were calculated by MSA GeoServices (Pty) Ltd for the weathered portion of the Resource and were published in March 2010.
Combined Weathered Resources for Blocks 1 to 5
| Tonnes | Bulk density |
Al2O3 | CaO | Fe | Fe2O3 | MgO | P205 | SiO2 | TiO2 | V2O5 | |||||||||||||
| ’000 | % | % | % | % | % | % | % | % | % | ||||||||||||||
| Measured | 44,252 | 3.51 | 5.01 | 0.71 | 43.39 | 61.99 | 1.83 | 0.07 | 12.86 | 14.69 | 0.15 | ||||||||||||
| Indicated | 29,099 | 3.54 | 5.19 | 0.96 | 42.99 | 61.41 | 1.80 | 0.07 | 12.54 | 15.08 | 0.15 | ||||||||||||
| Measured and | |||||||||||||||||||||||
| Indicated | 73,352 | 3.52 | 5.08 | 0.81 | 43.23 | 61.76 | 1.82 | 0.07 | 12.73 | 14.84 | 0.15 | ||||||||||||
| Inferred | 12,825 | 3.63 | 4.48 | 0.78 | 45.70 | 65.29 | 1.79 | 0.08 | 10.22 | 15.96 | 0.15 |
The following SAMREC-compliant Resources were calculated by MSA GeoServices (Pty) Ltd for the fresh portion of the Resource and were published in January 2010.
Combined Fresh Resources for Blocks 1 to 5 (to 120m below surface)
| Tonnes | Bulk density |
Al2O3 | CaO | Fe | Fe2O3 | MgO | P205 | SiO2 | TiO2 | V2O5 | |||||||||||||
| ’000 | % | % | % | % | % | % | % | % | % | ||||||||||||||
| Measured | 498,313 | 4.20 | 5.54 | 1.73 | 60.77 | 3.43 | 0.08 | 15.06 | 14.23 | 0.16 | 0.15 | ||||||||||||
| Indicated | 26,437 | 4.21 | 6.20 | 1.90 | 59.69 | 3.05 | 0.09 | 15.01 | 13.95 | 0.19 | 0.15 | ||||||||||||
| Measured and | |||||||||||||||||||||||
| Indicated | 524,749 | 4.20 | 5.57 | 1.74 | 60.72 | 3.41 | 0.08 | 15.06 | 14.21 | 0.16 | 0.15 | ||||||||||||
| Inferred | 1,124 | 4.16 | 6.09 | 1.53 | 59.68 | 3.07 | 0.05 | 14.07 | 14.27 | 0.21 | 0.15 |