Performance
Abridged Mineral Resources and Mineral Reserves Statement
Introduction
The purpose of this report is to document an abridged version of the Mineral Resources and Mineral Reserves of Merafe Resources (Merafe) in accordance with the requirements of the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 (SAMREC Code). All Merafe's operations are part of a pooling and sharing venture with Glencore Operations South Africa Proprietary Limited (the Glencore-Merafe Chrome Venture (the Venture)). Merafe has a 20.5% attributable beneficial interest in the Mineral Resources and Mineral Reserves of the Venture. The estimates in this document are as at 31 December 2020. To state the Mineral Resources and Mineral Reserves estimates for 31 December 2020, the budgeted production for July 2020 to December 2020 has been subtracted from the total estimates. The Mineral Resources and Mineral Reserves information in the tables on the following pages is based on information compiled by a Competent Person (as defined by the SAMREC Code).
Type of mining and mining activities
The Venture has chrome mining operations along the Western and Eastern Limbs of the Bushveld Complex. The operations along the Western Limb of the Bushveld Complex comprise the Kroondal Mine. The LG6 Package at Kroondal Mine is mined underground using trackless mining methods on a Bord-and-Pillar layout. Kroondal will be targeting a production rate of 146ktpm for 2021. Boshoek Mine is 20km north-west of Rustenburg. The MG1, LG5 and LG6 Chromitite Layers have been mined in several open pits. The opencastable ore has almost been depleted and the mine has been put on care and maintenance. Townlands Extension 9 is an exploration project. The status quo has remained the same since the application for a retention permit in November 2017. The DMR accepted the application and the Venture is still awaiting the granting and execution of the application. No exploration costs have to be spent on the project from the date of execution of the application for the subsequent three years. Pending the outcome of the application no third party may legally apply for a Prospecting Right over this property. Thorncliffe, Magareng and Helena mines are situated along the southern portion of the Eastern Limb of the Bushveld Complex.
The MG1 Chromitite Layer is being mined underground using trackless mining methods on a Bord-and-Pillar mining layout. Thorncliffe, Magareng and Helena mines are situated within the same Mining Right area but are situated on different farm properties. The farms of St George and Richmond have been incorporated into the Mining Right of the Eastern Chrome Mines Complex. The Venture's silica deposit lies 15km west of Rustenburg. The quartzite is mined mainly to supply the Venture's furnaces with silica.
Comparison of Mineral Resources and Mineral Reserves estimates with previous year's estimates
The annual Mineral Resources and Mineral Reserves estimates are compared with the previous year's statement and reconciled each year after the estimates have been finalised. Changes in the year-on-year tonnage and grade estimates are mainly due to mining depletion and changes in the Mineral Resources and Mineral Reserves tonnages and grades due to additional geological information. In addition, disposed or lapsed rights will also impact total resources and reserves.
The biggest impact to the year-on-year changes in the chrome Mineral Resources tonnages for the Venture is mainly due to mining depletion to the amount of 5.324mt. The net Mineral Resources movement excluding mining depletion is 1.177mt. The Mineral Reserves had a net movement of 7.844mt after mining depletion of 4.296mt. The single biggest impact of the movement of the Mineral Reserves is Waterval Mine that was placed on care and maintenance.
There is no material difference in the silica Mineral Resources estimate from December 2019 to December 2020 and the change is mostly attributed to mining depletion. The change in the Mineral Reserves for Rietvly is mainly as a result of mining depletion.
Material risk factors
There are no foreseen material risk factors that could affect the validity of the current Mineral Resources and Mineral Reserves Statement. All the legislative requirements have been met with respect to the rights to mining and prospecting for which the Mineral Resources and Mineral Reserves have been reported. All the operating mines are mining under new order, executed, Mining Rights. The Prospecting Rights of all the prospecting areas have been converted to new order Prospecting Rights.
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For the complete Mineral Resources and Mineral Reserves Statement including definitions of the categorisation of mineral resources and reserves as per the SAMREC Code 2009, descriptions and exploration activities, geological settings of the reserves (including maps and diagrams), legal entitlement, methods and assumptions, material risk factors and a summary of environmental funding and management, see Appendix 1. |
See Directors' report and for the statement on mining rights and mining operations.
Chrome Mineral Resource statement
| Measured Mineral Resources |
Indicated Mineral Resources |
Measured and Indicated Resources |
Inferred Mineral Resources |
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| Name of operation | Attributable portion | Mining method |
Commodity | 31.12.20 | 31.12.19 | 31.12.20 | 31.12.19 | 31.12.20 | 31.12.19 | 31.12.20 | 31.12.19 | Competent Person |
| Bushveld Complex – Western Limb Western Chrome Mines – LG6 Chromitite Package and MG1 Chromitite Layer |
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| Waterval | 20.5% | UG | Ore (Mt) | 16.231 | 16.231 | 1.03 | 1.02 | 17.26 | 17.26 | 0.7 | 0.7 | MM/DR |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cr2O3 (%) | 41.31 | 41.31 | 42.6 | 42.6 | 41.4 | 41.4 | 43 | 43 | ||||
| Marikana West | 20.5% | UG | Ore (Mt) | 2.974 | 2.991 | 1.69 | 1.69 | 4.66 | 4.69 | – | – | MM/DR |
| Cr2O3 (%) | 42.43 | 42.43 | 42.6 | 42.6 | 42.5 | 42.5 | – | – | ||||
| Kroondal | 20.5% | UG/OC | Ore (Mt) | 9.433 | 9.399 | 0.61 | 0.66 | 10.04 | 10.16 | – | – | MM/DR |
| Cr2O3 (%) | 42.76 | 42.76 | 41.5 | 41.5 | 42.7 | 42.7 | – | – | ||||
| Kroondal Gemini | 20.5% | UG/OC | Ore (Mt) | 12.972 | 10.369 | 2.21 | 4.22 | 15.18 | 14.59 | – | – | MM/DR |
| Cr2O3 (%) | 42.31 | 42.54 | 41.3 | 41.4 | 42.2 | 42.2 | – | – | ||||
| Marikana East | 20.5% | UG | Ore (Mt) | 4.459 | 4.279 | 0.52 | 0.53 | 4.98 | 4.81 | – | – | MM/DR |
| Cr2O3 (%) | 42.23 | 42.23 | 41.9 | 42.0 | 42.2 | 42.2 | – | – | ||||
| Klipfontein/Waterval | 20.5% | UG | Ore (Mt) | 12.278 | 11.852 | 22.46 | 22.94 | 34.74 | 34.79 | 100.7 | 101.1 | MM/DR |
| Cr2O3 (%) | 42.06 | 42.08 | 42.0 | 42.0 | 42.0 | 42.0 | 42 | 42 | ||||
| Boshoek | 20.5% | UG/OC | Ore (Mt) | – | – | 17.09 | 17.09 | 17.09 | 17.09 | – | – | MM/DR |
| Cr2O3 (%) | – | – | 40.5 | 40.5 | 40.5 | 40.5 | – | – | ||||
| Townlands Extension 9 | 20.5% | UG | Ore (Mt) | – | – | 12.94 | 12.94 | 12.94 | 12.94 | – | – | MM/DR |
| Cr2O3 (%) | – | – | 41.4 | 41.4 | 41.4 | 41.4 | – | – | ||||
| Total – LG6 and MG1 | Ore (Mt) | 58.347 | 55 121 | 58.55 | 61.11 | 116.89 | 116.23 | 101.4 | 101.8 | MM/DR | ||
| Cr2O3 (%) | 42.05 | 42.09 | 41.4 | 41.5 | 41.7 | 41.8 | 42 | 42 | ||||
| Western Chrome Mines – Tailings | ||||||||||||
| Kroondal Dam | 20.5% | Tailings | (Mt) | – | – | – | – | – | – | 1.6 | 1.5 | MM |
| Cr2O3 (%) | – | – | – | – | – | – | 17.1 | 16 | ||||
| Waterval East Dam | 20.5% | Tailings | (Mt) | – | – | – | – | – | – | 0.9 | 0.9 | MM |
| Cr2O3 (%) | – | – | – | – | – | – | 18.5 | 19 | ||||
| Waterval West Dam | 20.5% | Tailings | (Mt) | – | – | – | – | – | – | 0.3 | 0.3 | MM |
| Cr2O3 (%) | – | – | – | – | – | – | 16.9 | 17 | ||||
| Cashan Dam | 20.5% | Tailings | (Mt) | – | – | – | – | – | – | 0.03 | 0.03 | MM |
| Cr2O3 (%) | – | – | – | – | – | – | 16.9 | 17 | ||||
| Total Tailings | (Mt) | – | – | – | – | – | – | 2.9 | 2.8 | |||
| Cr2O3 (%) | – | – | – | – | – | – | 17 | 17 | ||||
| Bushveld Complex – Eastern Limb Eastern Chrome Mines – MG1 Chromitite Layer |
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| Thorncliffe | 20.5% | UG/OC | Ore (Mt) | 45.095 | 39.814 | 3.60 | 10.16 | 48.70 | 49.98 | – | 0.02 | SV/DR |
| Cr2O3 (%) | 42.21 | 40.16 | 40.9 | 41.2 | 42.1 | 40.4 | – | 42 | ||||
| Helena | 20.5% | UG/OC | Ore (Mt) | 23.396 | 23.763 | 13.02 | 12.77 | 36.42 | 36.54 | 10.4 | 10.2 | SV/DR |
| Cr2O3 (%) | 39.8 | 39.81 | 38.5 | 38.5 | 39.3 | 39.3 | 38 | 38 | ||||
| De Grooteboom | 20.5% | UG/OC | Ore (Mt) | 1.037 | 1.037 | 0.50 | 0.50 | 1.54 | 1.54 | – | – | SV/DR |
| Cr2O3 (%) | 40.22 | 40.22 | 40.3 | 40.3 | 40.2 | 40.2 | – | – | ||||
| Richmond | 20.5% | UG | Ore (Mt) | 1.774 | 0.578 | 23.22 | 21.83 | 24.99 | 22.41 | 24.6 | 29.2 | SV/DR |
| Cr2O3 (%) | 41.23 | 40.95 | 41.1 | 41.2 | 41.1 | 41.2 | 41 | 41 | ||||
| St George | 20.5% | UG | Ore (Mt) | 0.715 | 0.981 | 4.39 | 3.95 | 5.10 | 4.94 | 18.5 | 19.9 | SV/DR |
| Cr2O3 (%) | 40.41 | 40.21 | 39.7 | 39.5 | 39.8 | 39.6 | 40 | 40 | ||||
| Total – MG1 | Ore (Mt) | 72.017 | 66.172 | 44.73 | 49.23 | 116.75 | 115.40 | 53.5 | 59.2 | |||
| Cr2O3 (%) | 41.36 | 40.04 | 40.2 | 40.4 | 40.9 | 40.2 | 40 | 40 | ||||
| Eastern Chrome Mines – MG2 Chromitite Layer | ||||||||||||
| Thorncliffe | 20.5% | UG/OC | Ore (Mt) | – | – | – | – | – | – | 41.8 | 41.8 | SV/DR |
| Cr2O3 (%) | – | – | – | – | – | – | 38 | 38 | ||||
| Helena | 20.5% | UG/OC | Ore (Mt) | – | – | – | – | – | – | 85.4 | 85.4 | SV/DR |
| Cr2O3 (%) | – | – | – | – | – | – | 38 | 38 | ||||
| Total – MG2 | Ore (Mt) | – | – | – | – | – | – | 127.2 | 127.2 | |||
| Cr2O3 (%) | – | – | – | – | – | – | 38 | 38 | ||||
| Total – MG1 & MG2 | Ore (Mt) | 72.017 | 66.172 | 44.73 | 49.23 | 116.75 | 115.40 | 181.7 | 186.4 | |||
| Cr2O3 (%) | 41.36 | 40.04 | 40.2 | 40.4 | 40.9 | 40.2 | 38 | 39 | ||||
| Eastern Chrome Mines – Tailings | ||||||||||||
| Thorncliffe Dam | 20.5% | Tailings | (Mt) | – | – | – | – | – | – | 4.6 | 4.4 | SV |
| Cr2O3 (%) | – | – | – | – | – | – | 20 | 20 | ||||
| Helena Paste | 20.5% | Tailings | (Mt) | – | – | – | – | – | – | 0.3 | 0.3 | SV |
| Cr2O3 (%) | – | – | – | – | – | 17 | 17 | |||||
| Total Tailings | 20.5% | Tailings | (Mt) | – | – | – | – | – | – | 4.9 | 4.6 | |
| Cr2O3 (%) | – | – | – | – | – | – | 20 | 20 | ||||
Notes:
Tonnages are quoted as million metric dry tonnes. Grades are quoted as %Cr2O3. The measured and indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Mineral Reserves. No cut-off grades are applied to the chromitite layers currently being mined because of the exceptional regional grade consistency and continuity.
The Mineral Resources are estimated as chromitite tonnages and grades to reflect the grades of the various individual chromitite layers. Both the LG6 and MG1 chromitite layers which the Venture is currently mining are discrete solid chromitite layers.
Competent Persons:
PJG – Pieter-Jan Gräbe, Glencore Operations SA, (SACNASP – 400188/87). Lead Competent Person for Mineral Resources and Mineral Reserves. SV – Solly Vaid, Glencore Operations, Eastern Chrome Mines, (PLATO – MS 0114). Responsible for Mineral Resources and Mineral Reserves. MM – Mogomotsi Maputle, Glencore Operations SA, Western Chrome Mines, (SACNASP – 400071/14). Responsible for Mineral Resources and Mineral Reserves. DR – Dean Richards, Obsidian Consulting Services (SACNASP – 400190/08). Responsible for geostatistical analysis of data, Mineral Resource classification and construction of tonnage and grade block models and reporting of tonnage and grades from block models.
Chrome Mineral Reserve statement
| Proved Mineral Reserves |
Probable Mineral Reserves |
Total Mineral Reserves |
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| Name of operation | Attributable portion | Mining method |
Commodity | 31.12.20 | 31.12.19 | 31.12.20 | 31.12.19 | 31.12.20 | 31.12.19 | Competent Person |
| Bushveld Complex – Western Limb Western Chrome Mines – LG6 Chromitite Package and MG1 Chromitite Layer |
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| Waterval | 20.5% | UG | Ore (Mt) | – | 8.692 | – | 0.93 | – | 9.63 | MM/DR |
|---|---|---|---|---|---|---|---|---|---|---|
| Cr2O3 (%) | – | 31.38 | – | 26.5 | – | 30.9 | ||||
| Marikana West | 20.5% | UG | Ore (Mt) | – | 0.131 | – | – | – | 0.13 | MM/DR |
| Cr2O3 (%) | – | 29.66 | – | – | – | 29.7 | ||||
| Kroondal | 20.5% | UG/OC | Ore (Mt) | 2.476 | 2.523 | 0.54 | 0.56 | 3.02 | 3.09 | MM/DR |
| Cr2O3 (%) | 28.96 | 29.05 | 28.1 | 28.1 | 28.8 | 28.9 | ||||
| Kroondal Gemini | 20.5% | UG/OC | Ore (Mt) | 7.635 | 5.764 | 1.93 | 4.11 | 9.57 | 9.87 | MM/DR |
| Cr2O3 (%) | 30.73 | 30.96 | 30.1 | 28.6 | 30.6 | 30.0 | ||||
| Marikana East | 20.5% | UG | Ore (Mt) | – | 0.031 | – | – | – | 0.03 | MM/DR |
| Cr2O3 (%) | – | 28.28 | – | – | – | 28.3 | ||||
| Klipfontein/Waterval | 20.5% | UG | Ore (Mt) | 0.307 | 0.650 | 0.08 | 0.46 | 0.39 | 1.11 | MM/DR |
| Cr2O3 (%) | 27.99 | 28.43 | 28.3 | 28.3 | 28.1 | 28.4 | ||||
| Boshoek | 20.5% | UG/OC | Ore (Mt) | – | – | 0.58 | 0.58 | 0.58 | 0.58 | MM/DR |
| Cr2O3 (%) | – | – | 26.1 | 26.1 | 26.1 | 26.1 | ||||
| Total | Ore (Mt) | 10.418 | 17.791 | 3.13 | 6.65 | 13.55 | 24.44 | MM/DR | ||
| Cr2O3 (%) | 30.23 | 30.79 | 29.0 | 28.0 | 29.9 | 30.0 | ||||
| Bushveld Complex – Eastern Limb Eastern Chrome Mines – MG1 Chromitite Layer |
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| Thorncliffe | 20.5% | UG/OC | Ore (Mt) | 22.959 | 20.406 | – | 6.64 | 22.96 | 27.05 | SV/DR |
| Cr2O3 (%) | 34.31 | 33.54 | – | 34.1 | 34.3 | 33.7 | ||||
| Helena | 20.5% | UG/OC | Ore (Mt) | 4.271 | 4.148 | – | – | 4.27 | 4.15 | SV/DR |
| Cr2O3 (%) | 29.15 | 31.71 | – | – | 29.2 | 31.7 | ||||
| Richmond | 20.5% | UG | Ore (Mt) | 0.417 | – | 1.81 | 2.04 | 2.23 | 2.04 | SV/DR |
| Cr2O3 (%) | 36.36 | – | 34.9 | 31.9 | 35.1 | 31.9 | ||||
| St George | 20.5% | UG | Ore (Mt) | – | – | – | – | – | – | SV/DR |
| Cr2O3 (%) | – | – | – | – | – | – | ||||
| Total – MG1 | Ore (Mt) | 27.647 | 24.554 | 1.81 | 8.68 | 29.46 | 33.23 | |||
| Cr2O3 (%) | 33.54 | 33.23 | 34.9 | 33.6 | 33.6 | 33.3 | ||||
Notes:
Tonnages are quoted as million metric dry tonnes. Grades are quoted as %Cr2O3. No cut-off grades are applied to the chromitite layers currently being mined due to the exceptional regional grade consistency and continuity. A minimum mining cut of 1.8m is applied to the ore reserve tonnage to accommodate the mechanised mining equipment employed by the underground mining operations. External waste is included to make up the minimum cut where applicable. The chromitite layers are mined mainly underground using trackless mechanised mining methods on a bord-and-pillar mine layout design.
Competent Persons:
PJG – Pieter-Jan Gräbe, Glencore Operations SA, (SACNASP – 400188/87). Lead Competent Person for Mineral Resources and Mineral Reserves. SV – Solly Vaid, Glencore Operations, Eastern Chrome Mines, (PLATO – MS 0114). Responsible for Mineral Resources and Mineral Reserves. MM – Mogomotsi Maputle, Glencore Operations SA, Western Chrome Mines, (SACNASP – 400071/14). Responsible for Mineral Resources and Mineral Reserves. DR – Dean Richards, Obsidian Consulting Services (SACNASP – 400190/08). Responsible for geostatistical analysis of data, Mineral Resource classification and construction of tonnage and grade block models and reporting of tonnage and grades from block models.
Statement by Competent Person
This summary has been reviewed and the relevant data extracted and compiled by Pieter-Jan Gräbe (PJG). PJG is the Lead Competent Person, registered with the South African Council for Natural Scientific Professions (SACNASP, Private Bag X450, Silverton, 0127), Reg. No. 400177/87 and holds a BSc Hons degree in Geology as well as a NHD in Metalliferous Mining. PJG is a geologist with 34 years' experience in mineral exploration and mining geology, directly linked to the mining industry and currently a full-time employee of Glencore Operations South Africa. PJG consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
Pieter-Jan Gräbe
Glencore Operations South Africa Proprietary Limited
PO Box 2131
Rustenburg
0300
RSA
Tel: (014) 590 2415
Fax: (014) 590 2498
5 March 2021
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See Appendix 1 for the complete Mineral Resources and Mineral Reserves Statement. |
For Merafe ownership of specific mines contributed to the Venture see Directors' report of this report.