Miranda Mineral Holdings Limited - AngloGold › downloads › cpr-rozyn... · Rozynenbosch is held...

Directors: D v Heerden, NJ Odendaal, U Engelmann

Company Registration No.: 2004/029587/07

Miranda Mineral Holdings

Limited

An Independent Competent Person’s

Report on the Rozynenbosch Project,

Northern Cape Province, South Africa

Mineral Resource & Mineral Asset

Valuation Report

COMPETENT PERSON:

U Engelmann

BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat., MGSSA

Minxcon Reference: M2017-027a

Effective Date: 31 January 2018

Version: Final 20180622

Issue Date: 12 March 2018

Prepared by Minxcon (Pty) Ltd

Suite 5 Coldstream Office Park,

Little Falls, Roodepoort, South Africa

Tel: +2711 958 2899

Miranda Mineral Holdings Limited

An Independent Competent Person’s Report on the Rozynenbosch Project, Northern Cape Province, South Africa - Mineral Resource &

Mineral Asset Valuation Report i

DATE AND SIGNATURE PAGE

This Report titled “An Independent Competent Person’s Report on the Rozynenbosch Project, Northern Cape

Province, South Africa, Mineral Resource & Mineral Asset Valuation Report” prepared for Miranda Mineral

Holdings Limited has an effective date of 31 January 2018, and has been prepared and signed on 12 March

2018 by the following authors:-

COMPETENT PERSON

U Engelmann (Director, Minxcon)

BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat., MGSSA



Mineral Asset Valuation Report ii

CONTRIBUTING AUTHORS

L Hope (Senior Resource Geologist)

NHD (Econ. Geol.), Pr.Sci.Nat.

J Scholtz (Mining Engineer & Valuator)

B Eng Hons (Min.), ASAIMM

PG Obermeyer (Mineral Resource Manager)

BSc Hons (Geol.), Pr.Sci.Nat.

AM Deiss (Associate Geologist)

BSc Hons (Geol.), Pr.Sci.Nat., SAIMM

M Antoniades (Geologist)

BSc Hons (Geol.), Cand.Sci.Nat., MGSSA

DS Rathogwa (Exploration Geologist)

BSc (Geol. & Math.), BSc Hons (Geol.), MGSSA

JW Knight (Senior Process Engineer)

B Eng (Chem.), B Eng Hons (MOT), Pr.Eng., MSAIMM

COMPETENT VALUATOR

NJ Odendaal (Director, Minxcon)

BSc (Geol.), BSc Hons (Min. Econ.), MSc (Min. Eng.), Pr.Sci.Nat., FSAIMM, MGSSA



Mineral Asset Valuation Report iii

DISCLAIMER AND RISKS

This Report was prepared by Minxcon (Pty) Ltd (“Minxcon”). In the preparation of the Report, Minxcon

utilised information relating to operational methods and expectations provided to them by various sources.

Where possible, Minxcon has verified this information from independent sources after making due enquiry

of all material issues that are required in order to comply with the requirements of the SAMREC Code and

SAMVAL Code. Minxcon and its directors accept no liability for any losses arising from reliance upon the

information presented in this Report. The authors of this report are not qualified to provide extensive

commentary on legal issues associated with rights to the mineral properties and relied on the information

provided to them by the issuer. No warranty or guarantee, be it express or implied, is made by the authors

with respect to the completeness or accuracy of the legal aspects of this document.

OPERATIONAL RISKS

The business of mining and mineral exploration, development and production by their nature contain

significant operational risks. The business depends upon, amongst other things, successful prospecting

programmes and competent management. Profitability and asset values can be affected by unforeseen

changes in operating circumstances and technical issues.

POLITICAL AND ECONOMIC RISK

Factors such as political and industrial disruption, currency fluctuation and interest rates could have an

impact on future operations, and potential revenue streams can also be affected by these factors. The

majority of these factors are, and will be, beyond the control of any operating entity.

FORWARD LOOKING STATEMENT

Certain statements contained in this document other than statements of historical fact, contain forward-

looking statements regarding the operations, economic performance or financial condition, including,

without limitation, those concerning the economic outlook for the mining industry, expectations regarding

commodity prices, exchange rates, production, cash costs and other operating results, growth prospects

and the outlook of operations, including the completion and commencement of commercial operations of

specific production projects, its liquidity and capital resources and expenditure, and the outcome and

consequences of any pending litigation or enforcement proceedings.

Although Minxcon believes that the expectations reflected in such forward-looking statements are

reasonable, no assurance can be given that such expectations will prove to be correct. Accordingly, results

may differ materially from those set out in the forward-looking statements as a result of, among other

factors, changes in economic and market conditions, changes in the regulatory environment and other State

actions, success of business and operating initiatives, fluctuations in commodity prices and exchange rates,

and business and potential risk management.



Mineral Asset Valuation Report iv

EXECUTIVE SUMMARY

Minxcon (Pty) Ltd was commissioned by Miranda Mineral Holdings Limited to complete a compliant

Independent Competent Person’s Mineral Resource Report with a full mineral asset valuation on the

Rozynenbosch Project, located in the Northern Cape Province, South Africa.

The Report was commissioned in order to comply with regulations of the Johannesburg Stock Exchange for

listed companies. The purpose of the valuation is to comply with the JSE Section 12 disclosure requirements

for Mineral Companies. The Report is compiled in compliance with the South African Code for Reporting of

Exploration Results, Mineral Resources and Mineral Reserves (2016 Edition) (or SAMREC Code), and in terms

of the specifications embodied in the Standards of the South African Code for the Reporting of Mineral Asset

Valuation (2016 Edition) (or SAMVAL Code). All requirements of the JSE Section 12.9 Listing Requirements

and the SAMREC Code (including Table 1) and SAMVAL Code have been complied with. The Report has an

effective date of 31 January 2018.

The purpose of the CPR is to comply with continuing obligations as required by the JSE Listings Requirements,

comply with the Listings Requirements with regard to the publication of the CPR on the Company’s website,

and comply with lifting of the suspension of the trading in the Company’s shares. The CPR will be used to

provide an update the Company shareholders, and the information presented will be utilised in the

Company’s Integrated Report.

The Competent Person deems this summary to be a true and accurate reflection of the full CPR.

PROPERTY DESCRIPTION

The Rozynenbosch Project is an exploration project that targets a lead-silver-zinc and copper deposit on the

farm Rozynenbosch 104 in the Kenhardt District of the Northern Cape. In the 1970s and 1980s, the property

was extensively explored by Phelps Dodge Corporation and Goldfields South Africa.

The Project Area is located some 38 km due southeast of the town of Kakamas in the Northern Cape Province

of South Africa. The larger town of Upington lies 78 km due northeast and the village of Klein Koegab lies 2

km northwest. The seasonal Hartbees River forms the western boundary of the Project Area.

Location Map

The location of the Project is shown in the following figure.

JSE 12.9 (h) (ii)(iv)(viii)

JSE 12.9 (h) (i)

JSE 12.9 (h) (xi)



Mineral Asset Valuation Report v

Location of Project Area

Location of Project Area January 2018

Ownership

The currently active South African Mining Charter (2010) requires a minimum of 26% Black Economic

Empowerment (“BEE”) shareholding. On fulfilment of the conditions precedent set out in the agreement

regulating the Miranda Minerals (Pty) Ltd BEE transaction, Kwanda Minerals Holdings (Pty) Ltd, together with

a trust established by Miranda for the benefit of the mining community situated in and around the

Rozynenbosch area, will constitute the BEE component of Miranda Minerals (Pty) Ltd with a 30% share capital.

The proposed corporate structure as it relates to Rozynenbosch is illustrated in the figure to follow.

Proposed Corporate Structure

Proposed Corporate Structure January 2018

JSE 12.9 (h) (iii)



Mineral Asset Valuation Report vi

Rozynenbosch is held under executed prospecting right NC 30/5/1/1/2/0533 PR (“533 PR”), issued over

portions 4 and 5 of the farm Rozynenbosch 104, to Miranda Minerals (Pty) Ltd on 5 February 2018 in respect

of copper ore, cobalt, zinc and lead. The 533 PR encompasses an area of 6,483.37 ha and is valid for three

years, expiring on 4 February 2021. It is noted that silver is not currently included as a commodity

encompassed by this 533 PR. Silver is present in sufficient quantities to be included as a material Mineral

Resource and a value placed thereupon. An amendment to the original 533 PR to include silver is currently

under preparation by Miranda.

No surface rights or environmental permits are held over the property by Miranda or its subsidiaries. The

Competent Person is not aware of any environmental risks relating to the Project.

GEOLOGY AND MINERALISATION

Regional Geology

The Namaqua-Natal Metamorphic Complex, or NMC (refer to the figure to follow), is a tectonostratigraphic

province that stretches 1,400 km across South Africa and Namibia, is approximately 400 km wide and is

truncated by the ~600 Ma Pan-African Gariep and Saldania belts in the west and south respectively.

Location of the Tectonostratigraphic Namaqua-Natal Metamorphic Complex in Relation to the Kaapvaal Craton

Source: adapted from Sithole 2013 and Cornell, 2006


January 2018

The NMC represents a transpressional tectonic environment that formed by a combination of compressional

and strike slip tectonics which is associated with uplift and the formation of thrusts.

JSE 12.9 (h) (v)



Mineral Asset Valuation Report vii

The regional-scale faulting subdivides the western belt of the NMC into a number of tectonic domains and

subprovinces of distinct tectonometamorphic history. These include the Richtersveld Subprovince (to the

northwest), Bushmanland Subprovince (consisting of the Bushmanland and the Garies Terranes), Gordonia

Subprovince (Kakamas Terrane, Areachap Terrane) and the Kheis Subprovince or Kaaien Terrane, as depicted

in the figure to follow.

Subprovinces and Main Shear Zones of the Namaqua-Natal Metamorphic Complex

Source: Adapted from Lambert, et al. (2017)


January 2018

Local Geology

The Rozynenbosch deposit is located within the Kakamas Terrane of the Gordonia Subprovince which extends

westwards from the TSZ to the Hartbees River Thrust and is subdivided into two terranes, namely the

Areachap and Kakamas terranes.

The Areachap Terrane to the east comprises the Areachap and Korrannaland groups and also the granites of

the Keimoes Suite. The Kakamas Terrane occupies the western portion of the sub-province and consists

predominantly of augen gneisses which underlie the Korrannaland Group.

The Gordonia Subprovince was subjected to high-grade regional metamorphism of upper amphibolite to lower

granulite facies due to several thermal events associated with the intrusion of the Keimoes Suite granitoids.

The Kakamas Terrane is dominated by numerous intrusions along with lesser metasedimentary rocks of the

Korannaland Group and has been subjected to varying degrees of deformation. The metasedimentary rocks



Mineral Asset Valuation Report viii

include highly deformed granulite to amphibolite gneiss, calc-silicate and feldspathic quartzite and

charnockites.

Property Geology

NMC metamorphic lithologies of the Rozynenbosch Formation as well as later intrusives belonging to the

Keimoes and Eendoorn suites outcrop on Rozynenbosch, as depicted in the figure below.

Surface Geology at Rozynenbosch

Source: Miranda Mineral Holdings Limited (2012)

Surface Geology at Rozynenbosch January 2018

The Rozynenbosch Pb-Zn-Cu-Ag deposit is located within the Rozynenbosch Formation just east of the

Hartbees River Thrust on the western boundary of the Kakamas Terrane which forms part of the Vyfbeker

Metamorphic Suite of the Hartbees River Fragment or Complex. The Formation comprises two main rock types

groups, namely a felspathic (arkosic) unit consisting of quartz / feldspar / biotite gneiss and a calc-silicate

unit comprising amphibole, metadolomite, marble and calc-silicate rocks with minor granitic gneiss and

biotite gneiss. The lenticular-shaped stratabound orebodies of disseminated sulphides are hosted mainly by a

garnetiferous leucogneiss.

At least four phases of deformation have been recognised at Rozynenbosch. The phases of deformation are

characterised by plastic folding events and are labelled from F2 through to F5. The F3 fold axes trend

northwest to southeast with a mean stratigraphic strike approximating east to west and form the dominant

regional fabric. The F2 structures are located within the limbs of the F3 fold structures. Both F2 and F3

structures have been interpreted as asymmetric isoclinal structures. The F4 and F5 deformational events



Mineral Asset Valuation Report ix

overprinted the F2 and F3 events in the form of flexural folding, resulting in the F2 and F3 structures forming

open-ended doubly-plunging features.

Mineralisation

The Rozynenbosch deposit is classified as a sedimentary exhalative, or SEDEX, deposit but mineralisation was

later remobilised and tectonically displaced during thrusting of the Hartbees River Thrust event and/or the

final stages of northward convergence related to the main Kibaran-aged Namaqua event.

SEDEX deposits are products of dewatering and metamorphism of the piles of accumulated sediments within

ocean basins with anoxic conditions by means of venting hydrothermal solutions into a submarine

environment. Metals are carried in solution as chloride/sulphide complexes and precipitate out of solution

with the decrease in temperature when the hydrothermal fluid mixes with the ocean water.

SEDEX deposits form where anoxic (lacking oxygen) conditions occur, requiring several kilometres of

sediment, and are heat driven primarily by depth of burial rather than through intrusions, thus explaining the

lack in copper that is usually associated with mafic intrusions. Lead, zinc and silver mineralisation is purely

derived from leaching of the sediments themselves.

The mineralogy of the sulphides includes galena, sphalerite, chalcopyrite and pyrite. Grades in the

disseminated ore are up to 2% Pb and 18 g/t Ag. Copper and zinc values are negligible.

STATUS OF EXPLORATION

All exploration data for the Project is historical in nature, dating from the early 1970s and mid-1980s and

undertaken predominantly by Phelps Dodge, and later by Goldfields South Africa when they entered into a

JV with Phelps Dodge. This data includes geophysical surveys, geochemical soil sampling, geochemical

stream sampling, mineralogical work, geological mapping and drilling (68 drillholes in total). The drilling

samples were analysed for lead, zinc, silver and specific gravity. Unfortunately, not all the information is

available.

Further exploration or infill drilling will be required to increase the confidence of the Mineral Resource and

upgrade the Mineral Resource classifications. No budgets have been calculated for further exploration.

KEY MODIFYING FACTORS

The Mineral Resource was declared at a lead equivalent grade of 1.9% and also tested for reasonable

prospects for eventual economic extraction by testing a depth cut-off to the Mineral Resource. The depth

cut-off (including the extended Exploration Target model and silver in the Pb equivalent equation) was 240

m and the therefore included the entire Inferred Mineral Resource which has a maximum depth of 140 m

and therefore falls within this limit.

Owing to the fact that silver is not included in the current prospecting right but is in the process of being

applied for, Minxcon ran another test for reasonable prospects for eventual economic extraction by

excluding the silver from the pit optimisation runs and Pb equivalent equation. This does have an effect on

the pit depth. The pit excluding silver only goes to 100 m and therefore a depth cut-off of 100 m is also

applied to the Mineral Resource excluding silver.

A recovery factor of 80% was also applied in the cut-off calculations.

A geological loss factor of 15% was applied to the Mineral Resource.

JSE 12.9 (h) (vi)

JSE 12.9 (h) (vii)



Mineral Asset Valuation Report x

No socio-economic factors were applied to the Mineral Resource.

DEVELOPMENT AND OPERATIONS

Mining

To date no mining has taken place at the Rozynenbosch Project and the Competent Person is not aware of

any mining related studies that have been completed to date. The mineralisation, however, extends from

near-surface and therefore could lend itself to open pit mining.

Processing

The Competent Person is not aware of any metallurgical studies that have been completed to date.

However, the recovery of lead and zinc concentrates from ores containing galena and sphalerite will take

place by means of flotation processes. It is anticipated that the Rozynenbosch orebody would be treated by

means of crushing, milling and a differential flotation potentially producing separate lead-silver and zinc

concentrates depending on the plant feed grades.

MINERAL RESOURCES

Geological Model

The geological model was created using historic sections and drillholes to create a 3D geological model. The

main horizons modelled were the amphibolites and pegmatites. The image below shows the historic sections.

Typical Hand Drawn Geological Section - Section 240 Looking West

Typical Hand Drawn Geological Section - Section 240 Looking West January 2018

These sections were georeferenced and used as guidelines for the creation of the wireframes. The

georeferenced sections of Rozynenbosch are illustrated in the figure to follow.

JSE 12.9 (h) (ix)



Mineral Asset Valuation Report xi

Geological Sections and Plans Referenced into 3D Space

Geological Sections and Plans Referenced into 3D Space January 2018

The model for the amphibolites and the pegmatites is shown in the image below.

Geological Model of the Amphibolites and Pegmatites

Geological Model of the Amphibolites and Pegmatites January 2018



Mineral Asset Valuation Report xii

The ore mineralisation was created using grade shells based on a 0.5% Pb natural cut-off. The shape and

direction of the shells was based on the plunge of the folding and the relationship of the lead values when

plotted using variography of the values. The final grade shells are shown in the following figure.

Mineralised Halo using a 0.5% Pb shown with the Drillholes used to Inform the Halo


January 2018

Estimation Technique

Inverse distance squared was used in the estimation and two separate runs were conducted. The raw drillhole

assays were used for the estimation of the Inferred Mineral Resource, and an Exploration Target estimation

was carried out on a historical USD4 cut value based on the lead. The Exploration Target estimation is used

as an indicative estimation of the target zone as none of the original assay values are available for the

estimation.

The search ranges for the estimation are based on an omnidirectional variogram range of the lead values and

a minimum of two drillholes were used for the estimation. A minimum of five samples and a maximum of 20

samples were used to inform the estimation.

The omnidirectional variogram with a range of 88 m for the lead and 95 m for the zinc was used in the search

parameters of the estimation.

The silver was not estimated as too few samples are available for the estimation. A good correlation of 94%

between silver and lead is displayed and a regression of the silver values was done based on this correlation.

Mineral Resource Classification

Categorisation of the Mineral Resource could only be classified as Inferred due to the lack of QAQC,

uncertainty of the exact position of the drillholes and the absence of all available raw assay information.

Although the QAQC was not necessary as code compliance when drilled, the reputation of the companies that



Mineral Asset Valuation Report xiii

conducted the drilling has lead the Competent Person to accept that necessary steps were taken to ensure

quality assays. Where only the estimation of the raw samples was done, this was included in the Inferred

classification. Where only cut-off values were used, this was classified as an Exploration Target.

Mineral Resource Statement

Mineral Resources are stated at a 1.9% Pb equivalent cut-off and no depth cut-off as the Datamine Maxipit

optimisation runs resulted in a maximum pit depth of 240 m (including the extended Exploration Target

model), which includes the entire Inferred Mineral Resource which has a depth of 140 m. The Mineral

Resources for Rozynenbosch as estimated by Minxcon and signed off by the Competent Person as at 31 January

2018. The equation for the Pb equivalent, including silver, is as follows:- PbEq% = Pb% + (Zn% x 1.14) + (Ag

ppm x 0.0313).

Rozynenbosch Mineral Resources, Including Silver, as at 31 January 2018

Mineral Resource Classification Tonnes (Less Geol. Losses) Pb Zn Ag

Mt % % g/t

Inferred 3.10 2.17 0.31 36.47

Notes:

1. Cut-off of 1.9% Pb equivalent (including silver).

2. The entire resource falls within the economic open pit depth cut-off.

3. Ag is a regressed value.

4. Ag is not covered by the current PR.

5. A geological loss of 15 % has been applied to the Mineral Resource.

6. The Inferred Mineral Resources have a large degree of uncertainty as to their existence and whether they can be mined

economically. It cannot be assumed that all or any part of the Inferred Mineral Resource will be upgraded to a higher

confidence category.

7. All reported Mineral Resources are limited to fall within the property boundaries of the Project Area.

8. A density of 2.84 t/m3 was utilised.

Miranda is in the process of applying for the silver rights to be included in the prospecting right and Minxcon

believes that there are reasonable prospects for them to obtain the silver rights as the project will not be a

standalone silver operation and therefore would not make sense to award the silver rights to another entity.

However, Minxcon has included a Mineral Resource for Rozynenbosch excluding the silver in the Pb equivalent

cut-off (PbEq% = Pb% + (Zn x 1,14), as illustrated in the following table.

Rozynenbosch Mineral Resources, Excluding Silver, as at 31 January 2018

Mineral Resource Classification Tonnes (Less Geol. Losses) Pb Zn

Mt % %

Inferred 1.79 2.78 0.37

Notes:

1. Cut-off of 1.9% Pb equivalent (excluding silver).

2. The economic open pit depth cut-off of 100m has been applied.







Upside Potential

An Exploration Target has been estimated for the down dip extension of the Inferred Mineral Resource. This

portion of the project could possibly be an Inferred Mineral Resource if all the historical data was available



Mineral Asset Valuation Report xiv

and was of a sufficient quality. However, due to the lack of data, the Competent Person has qualified it as

an Exploration Target. The Exploration Target ranges are indicated below.

Rozynenbosch Exploration Target as at 31 January 2018

Target at a Cut-off at 1% Pb Tonnes Pb Zn Ag

Mt % % g/t

Maximum 4.4 2.25 0.53 36.01

Minimum 3.6 1.95 0.43 18.17

The potential tonnage and grade of the above Exploration Target ranges are conceptual in nature; there is

insufficient exploration data to estimate a Mineral Resource and it is uncertain if further exploration will

result in the estimation of a Mineral Resource.

The image to follow illustrates the licence boundary and the mineralised area within the Project Area.

Area of Interest

Area of Interest January 2018

VALUATION

Rozynenbosch is a polymetallic orebody consisting of lead, zinc, copper and silver, with the possibility of

gold. However, the diamond drillhole samples dispatched to the laboratory were only analysed for lead, zinc,

copper and silver; and not for gold. The figure below illustrates the value spread for Rozynenbosch,

demonstrating that the most value lies in lead (59%), followed by silver (24%) and zinc (17%), respectively. It

is noted that silver could be the second largest revenue contributor, and although the current prospecting

JSE 12.9 (h) (xii)

JSE 12.9 (h) (iii)



Mineral Asset Valuation Report xv

right excludes silver, an amendment application is under preparation to include this commodity in the right.

The valuation includes the contribution for silver.

Value Spread of Rozynenbosch Mineral Resources

The two approaches used were the Market approach and Cost approach. The effective shareholding of

Miranda Mineral Holdings Limited in the project is currently 100% and the valuation therefore represent the

full mineral asset value.

Primary Valuation

The market comparable approach was the primary valuation method used to determine the market value of

the asset and was applied on the total Zinc Mineral Resources (including the Zn equivalent) and Exploration

Target. The Project has a compliant Mineral Resource that was available for use in the valuation.

Four values were calculated for the comparative valuation based on the total Zinc Equivalent Mineral

Resource and upper and lower range for the Exploration Target, as displayed in the tables to follow. This

was done inclusive of silver and excluding silver, respectively.

The values calculated inclusive of silver were ZAR33 million including the lower estimate of the Exploration

Target and ZAR39 million including the upper estimate of the Exploration Target.



Mineral Asset Valuation Report xvi

Market Approach Valuation on Rozynenbosch Including Silver (Lower Estimate for Exploration Target)

Area Mineral Resource

Category

Tonnage Zn Equivalent

Grade Zn Equivalent

Value Best Estimated

Value

Mt % USD/t ZARm

Rozynenbosch Inferred 3.1 2.65% 20.26 23.03

Rozynenbosch Exploration Target 3.6 2.26% 9.17 10.25

Combined 6.7 2.44% 14.76 33.28

Attributable Value at Proposed 70% Ownership 23.30

Notes:

1. Totals may not add up due to rounding.

2. ZAR/USD exchange rate of 13.83 used.

Market Approach Valuation on Rozynenbosch Including Silver (Upper Estimate for Exploration Target)


Category


Grade Zn Equivalent


Value

Mt % USD/t ZARm



Combined 7.5 2.81% 13.51 39.22

Attributable Value at Proposed 70% Ownership 27.46 Notes:



The values calculated excluding silver was ZAR21 million including the lower estimate of the Exploration

Target and ZAR25 million including the upper estimate of the Exploration Target.

Market Approach Valuation on Rozynenbosch Excluding Silver (Lower Estimate for Exploration Target)


Category


Grade Zn Equivalent


Value

Mt % USD/t ZARm



Combined 5.4 2.12% 13.54 21.32


Notes:



Market Approach Valuation on Rozynenbosch Excluding Silver (Upper Estimate for Exploration Target)


Category


Grade Zn Equivalent


Value

Mt % USD/t ZARm



Combined 6.2 2.33% 12.63 25.12


Notes:



Secondary Valuation

The Project is in the exploration stage and therefore the valuator considered the cost approach as a suitable

method to determine a range of values. This historical value was used in the cost approach to derive a full

market value (not attributable) of ZAR42 million.



Mineral Asset Valuation Report xvii

Rozynenbosch Cost Approach Project Valuation

Highest Phase of Project

PEM Historical

Cost Low Value Median Value High Value

Low Medium High ZAR million ZAR million

Historical Expenditure

Core Drilling 1.08 1.25 1.43 11.82 12.71 14.77 16.84

Classification of Inferred Mineral Resources

1.68 1.85 2.03 14.56 24.39 26.94 29.49

Total 26.38 37.10 41.72 46.33

Attributable Value at Proposed 70% Ownership 25.97 29.20 32.43 Note: ZAR/USD exchange rate of 13.83 used.

Range of Values

The Competent Valuator calculated a range of values using the upper and lower value of the market

approach and the values derived from the cost approach. The market approach is based on Mineral Resource

results coupled with acquisition information of various similar operations. The Competent Valuator’s

confidence in the market approach leads the Competent Valuator to prefer the results of the Market

Approach versus the Cost Approach.

The Competent Valuator derived a final market value, inclusive of silver, of ZAR36 million (ZAR25 million

attributable value at proposed 70% ownership) for the Rozynenbosch Project with a lower end of ZAR31

million (ZAR21 million attributable value at proposed 70% ownership) and upper range of ZAR42 million

(ZAR29 million attributable value at proposed 70% ownership).

Final Mineral Asset Market Value Range (Inclusive of Silver)

Approach Lower Value Median Value Upper Value

ZAR million

Market Approach 30.53 36.25 42.04

Market Value 30.53 36.25 42.04

Attributable Value at Proposed 70% Ownership 21.37 25.38 29.43

The Competent Valuator derived a final market value, excluding silver, of ZAR23 million (ZAR16 million




Final Mineral Asset Market Value Range (Excluding Silver)


ZAR million


Final Market Value 19.80 23.22 26.69


RISKS

The Competent Person completed a risk analysis for the Project. No major risks were identified, although

all geological data used in this CPR is historical in nature.

COMPETENT PERSONS’ CONCLUSIONS

The following conclusions are made by the Competent Person for the Project:-

JSE 12.9 (h) (x)



Mineral Asset Valuation Report xviii

Mineral Resources

The wealth of historical data that has been collated has made it possible to compile a 3D model or the

orebody. The historic data was of sufficient quality and quantity to declare an Inferred Mineral Resource, it

is the Competent Person’s opinion that if the historical data was more complete, the Inferred Mineral

Resource could be Indicated and that a portion of the Exploration Target could be classified as an Inferred

Mineral Resource. The Competent Person has estimated an Inferred Mineral Resource, including silver, of

3.10 Mt at grades of 2.17% Pb, 0.31% Zn and 36.47 g/t Ag. The Inferred Mineral Resource excluding silver is

limited to 100 m depth and has 1.79 Mt at grades of 2.78% Pb and 0.37% Zn. The estimated Exploration

Target down dip of the Inferred Mineral Resource ranging between 3.6 Mt and 4.4 Mt and 1.95% Pb and 2.25%

Pb. The mineralised zones are from close to surface and are open ended at depth within the plunge of the

fold and the geology of the Rozynenbosch Project lends itself to open pit mining.

Valuation

The Competent Valuator derived a final value inclusive of silver of ZAR36 million (ZAR25 million attributable

value at proposed 70% ownership) for the Rozynenbosch Project with a lower end of ZAR31 million and upper

range of ZAR42 million (ZAR21 million and ZAR29 million respectively at proposed 70% ownership).

The average value per Zn Eq. Mineral Resource tonne calculated for Rozynenbosch is between USD13.51/Zn

Eq. t. and USD14.76/Zn Eq. t inclusive of silver, and between USD12.63/Zn Eq. t and USD13.54/Zn Eq. t

excluding silver, which is lower than similar historic arm’s length transaction values. The values are however

in-line with the median value of USD14.59/Zn Eq. t of similar transactions.

The lower value is attributable to the current level of exploration on the Project and Mineral Resource

category: the resource is 100% Inferred and a significantly lower USD/Zn Eq. t value was also attributable

to the Exploration Target.

COMPETENT PERSONS RECOMMENDATIONS

The following recommendations are made by the Competent Person regarding the Project:-

Mineral Resources

It is imperative that Miranda secures silver as part of their prospecting right.

Further exploration drilling is required to improve the confidence in the Mineral Resource and upgrade the

Mineral Resource classifications. Future drilling assaying should include the assay for silver to compile a larger

database for silver and more specific gravity testwork is required if additional drilling is to be completed. All

future drilling programmes should include and address the needs of current code QAQC.

Valuation

The valuation includes the contribution from silver. It is recommended that the amendment application to

include silver in the prospecting right be lodged in compliance with all regulations of the MPRDA and DMR in

order to facilitate approval of the amendment.



Mineral Asset Valuation Report xix

TABLE OF CONTENTS

Executive Summary....................................................................................................... iv

1 Introduction ............................................................................................................. 1

1.1 Terms of Reference and Scope of Work ..................................................................... 1

1.2 Independence of the Issuer .................................................................................... 1

1.3 Sources of Information ......................................................................................... 2

1.4 Units and Currency .............................................................................................. 2

1.5 Competent Persons Site Inspection / Field Involvement ................................................. 2

1.6 Disclaimers and Reliance on Other Experts / Third Party Information ................................ 5

2 Project Outline ......................................................................................................... 6

2.1 Property Description ............................................................................................ 6

2.2 Property Location ............................................................................................... 6

2.3 Country Profile ................................................................................................... 7

2.4 Legal Aspects and Permitting ................................................................................. 9

2.4.1 Corporate Structure ..................................................................................... 9

2.4.2 Rights to Prospect ..................................................................................... 10

2.4.3 Surface Rights .......................................................................................... 10

2.4.4 Environmental Permits ............................................................................... 11

2.4.5 Government Requirements .......................................................................... 11

2.4.6 Water Use Licence .................................................................................... 11

2.4.7 Other Permits .......................................................................................... 11

2.4.8 Agreements ............................................................................................. 11

2.4.9 Security of Tenure .................................................................................... 11

2.4.10 Legal Proceedings ..................................................................................... 12

2.5 Royalties and Liabilities ...................................................................................... 12

2.5.1 Government Royalty .................................................................................. 12

2.5.2 Rehabilitation Guarantees ........................................................................... 12

3 Accessibility, Physiography, Climate, Local Resources and Infrastructure ................................ 13

3.1 Topography, Elevation and Vegetation .................................................................... 13

3.2 Climate and Weather ......................................................................................... 13

3.3 Property Access ................................................................................................ 14

3.4 Proximity to Population Centres and Nature of Transport ............................................. 14

3.5 General Infrastructure ........................................................................................ 15

4 Project History ....................................................................................................... 16

4.1 Previous Ownership ........................................................................................... 16



Mineral Asset Valuation Report xx

4.2 Previous Exploration .......................................................................................... 16

4.3 Previous Mineral Resource Estimates and Compliance.................................................. 16

4.4 Previous Mineral Reserve Estimates and Compliance ................................................... 17

4.5 Previous Production ........................................................................................... 17

5 Geological Setting, Mineralisation and Deposit Types ........................................................ 18

5.1 Geological Setting ............................................................................................. 18

5.1.1 Regional Geology ...................................................................................... 18

5.1.2 Local Geology .......................................................................................... 19

5.1.3 Property Geology ...................................................................................... 23

5.2 Nature of, and Controls on, Mineralisation ............................................................... 26

5.3 Nature of Deposits on Property ............................................................................. 27

5.4 Geological Models ............................................................................................. 28

6 Exploration Data / Information ................................................................................... 32

6.1 Satellite / Aerial Photo Interpretation .................................................................... 32

6.1.1 Regional Photo-geological Study of an Area between Kenhardt and Kakamas ............. 32

6.2 Geophysics ...................................................................................................... 32

6.2.1 Regional Aeromagnetic Survey ...................................................................... 32

6.2.2 Induced Polarization and Ground Magnetic Surveys at Rozynenbosch Central ............. 33

6.2.3 Induced Polarization and Ground Magnetic Surveys at Rozynenbosch South ............... 33

6.2.4 Induced Polarization and Ground Magnetic Surveys at Rozynenbosch North ............... 33

6.2.5 Transient Electromagnetic Survey (1985) ......................................................... 33

6.3 Mapping ......................................................................................................... 34

6.3.1 Detailed Mapping on Rozynenbosch Central ...................................................... 34

6.3.2 Detail Mapping on Rozynenbosch South ........................................................... 34

6.4 Structural Studies ............................................................................................. 35

6.5 Drilling Programmes .......................................................................................... 35

6.5.1 Type of Drilling ........................................................................................ 35

6.5.2 Logging .................................................................................................. 37

6.5.3 Downhole Surveys ..................................................................................... 37

6.6 Geological Data ................................................................................................ 37

6.7 Sampling ........................................................................................................ 37

6.7.1 Sample Method, Collection, Capture and Storage ............................................... 37

6.7.2 Sample Preparation and Analysis ................................................................... 41

6.7.3 Sampling Governance ................................................................................. 42

6.7.4 Quality Control and Assurance Procedures ....................................................... 42

6.7.5 Bulk Density ............................................................................................ 43



Mineral Asset Valuation Report xxi

6.7.6 Bulk-sampling and/or Trial-mining ................................................................. 43

6.8 Database Management ........................................................................................ 43

6.9 Spatial Data .................................................................................................... 43

6.10 Data Verification, Audits and Reviews ..................................................................... 44

6.10.1 Laboratory Audit/Review ............................................................................ 44

6.11 Exploration Expenditure...................................................................................... 44

6.11.1 Exploration Expenditure Incurred to Date ........................................................ 44

6.11.2 Planned Exploration Expenditure ................................................................... 44

7 Mineral Resource Estimates ........................................................................................ 45

7.1 Mineral Resource Estimation and Modelling Technique ................................................ 45

7.1.1 Geological Drillholes and Statistics ................................................................ 45

7.1.2 Block Model Creation ................................................................................. 49

7.1.3 Estimation Technique................................................................................. 51

7.1.4 Model Verification ..................................................................................... 55

7.2 Mineral Resource Classification Criteria ................................................................... 59

7.3 Reasonable and Realistic Prospects for Eventual Economic Extraction .............................. 60

7.4 Key Modifying Factors and Assumptions, By-products or Deleterious Elements .................... 61

7.5 Mineral Resource Statement ................................................................................. 62

7.6 Mineral Resource Reconciliation ............................................................................ 64

8 Technical Studies .................................................................................................... 66

8.1 Introduction .................................................................................................... 66

8.1.1 Study Level ............................................................................................. 66

8.1.2 Modifying Factors Used to Convert Mineral Resource to Mineral Reserve ................... 66

8.2 Geotechnical and Geohydrology ............................................................................ 66

8.3 Mine Design and Schedule.................................................................................... 66

8.4 Recovery Methods ............................................................................................. 66

8.5 Market Studies and Contracts ............................................................................... 66

8.5.1 Market Studies ......................................................................................... 66

8.5.2 Contracts ................................................................................................ 79

8.6 Environmental Studies ........................................................................................ 79

8.7 Legal and Permitting .......................................................................................... 80

8.8 Taxation ......................................................................................................... 80

8.9 Social or Community Impact ................................................................................. 80

8.10 Mine Closure .................................................................................................... 80

8.11 Capital and Operating Costs ................................................................................. 80

8.12 Financial Analysis .............................................................................................. 80



Mineral Asset Valuation Report xxii

8.12.1 Introduction ............................................................................................ 80

8.12.2 Previous Valuation .................................................................................... 81

8.12.3 Valuation Approaches and Methods ................................................................ 82

8.12.4 Valuation Date ......................................................................................... 84

8.12.5 Valuation Results ...................................................................................... 84

8.12.6 Sources of Information ............................................................................... 96

8.12.7 Range of Values ........................................................................................ 97

8.12.8 Competent Valuator .................................................................................. 98

8.12.9 Identifiable Component Asset Values ............................................................. 101

8.12.10 Historic Verification ............................................................................... 101

8.12.11 Market Studies and Contracts .................................................................... 101

8.12.12 Reviews .............................................................................................. 101

9 Mineral Reserve Estimates ........................................................................................ 102

10 Other Relevant Data and Information ........................................................................... 103

10.1 Adjacent Properties .......................................................................................... 103

10.2 Upside Potential .............................................................................................. 103

10.3 Audits and Reviews ........................................................................................... 104

10.4 Risk Assessment ............................................................................................... 104

10.4.1 Risk Assessment Methodology ...................................................................... 104

10.4.2 Risk Assessment Outcome ........................................................................... 105

11 Interpretation and Conclusions ................................................................................... 108

12 Recommendations .................................................................................................. 109

13 References ........................................................................................................... 110

14 Appendices ........................................................................................................... 112

LIST OF FIGURES

Figure 1: Drillhole Collar RB58 Identified in the Field ..................................................................3

Figure 2: Finely Disseminated Pyrite and Chalcopyrite in Grey “Ore Zone” Gneiss ...............................4

Figure 3: Potential Upside Areas ............................................................................................5

Figure 4: Location .............................................................................................................6

Figure 5: Topo-cadastral Map ...............................................................................................7

Figure 6: Proposed Corporate Structure ................................................................................. 10

Figure 7: Kakamas Temperature Graph .................................................................................. 14

Figure 8: Location of the Tectonostratigraphic Namaqua-Natal Metamorphic Complex in Relation to the

Kaapvaal Craton ............................................................................................................. 18

Figure 9: Subprovinces and Main Shear Zones of the Namaqua-Natal Metamorphic Complex ................. 19

Figure 10: Surface Geology at Rozynenbosch ........................................................................... 23

Figure 11: Structural Interpretation Over a Portion of Rozynenbosch ............................................. 25



Mineral Asset Valuation Report xxiii

Figure 12: Idealised Section Through the Lithologies in Relation to Geological Structure at Rozynenbosch 26

Figure 13: Genetic Model for the Formation of SEDEX Deposits ..................................................... 27

Figure 14: Typical Hand Drawn Geological Section - Section 240 Looking West ................................. 28

Figure 15: Geological Sections and Plans Referenced into 3D Space ............................................... 29

Figure 16: Section with Geological Drillholes Comparison ........................................................... 30

Figure 17: Geological Model of the Amphibolites and Pegmatites .................................................. 31

Figure 18: Phase 1 and 2 Drillhole Collars ............................................................................... 36

Figure 19: Pb Log Probability Plot of the Raw Assays ................................................................. 46

Figure 20: Zn Log Probability Plot of the Raw Assays ................................................................. 46

Figure 21: Pb4 Capping at 20.7% .......................................................................................... 47

Figure 22: Downhole Variogram showing correlation up to 10 m ................................................... 47

Figure 23: Directional Variogram showing a Long and Short Range of 161 m and 42 m, Respectively ....... 48

Figure 24: Omnidirectional Variogram of the Pb showing a Range of 88 m ....................................... 48

Figure 25: Omnidirectional Variogram of the Zn showing a Range of 95 m ....................................... 49

Figure 26: Mineralised Halo using a 0.5% Pb shown with the Drillholes used to Inform the Halo ............. 50

Figure 27: Base Mineralisation Model with the Pegmatites and Amphibolites Removed ........................ 51

Figure 28: Exploration and Inferred Model .............................................................................. 52

Figure 29: A Correlation Co-efficient of 94% shown with regards Ag and Pb+Zn ................................. 53

Figure 30: Pb Estimated Model of the Exploration Target and Inferred at a Cut-off of 1.9% Pb .............. 53

Figure 31: Zn Estimated Model of the Exploration Target and Inferred at a Cut-off of 1.9% Pb .............. 54

Figure 32: Ag Regressed Value Model of the Exploration Target and Inferred at a Cut-off of 1.9% Pb ....... 54

Figure 33: Visual Check of the Estimate and the Raw Assay Values ................................................ 55

Figure 34: Pb 100 m Swath Plots from West to East ................................................................... 55

Figure 35: Pb Vertical Swath Plots ....................................................................................... 56

Figure 36: Zn 100 m Swath Plots from West to East ................................................................... 56

Figure 37: Zn Vertical Swath Plots........................................................................................ 57

Figure 38: West to East 100 m Swaths (Grade Model is for Pb) ..................................................... 57

Figure 39: Vertical 10 m Swaths (Grade Model is for Pb) ............................................................. 58

Figure 40: Pb Estimates Value versus Average Pb Value .............................................................. 59

Figure 41: Zn Estimated Value versus Average Zn Value ............................................................. 59

Figure 42: Mineral Resource Classification .............................................................................. 60

Figure 43: Optimised Pit with Inferred (Including Silver) and Exploration Target Model Optimised - Model

Shown at >1% Pb ............................................................................................................. 61

Figure 44: Grade Tonnage Curve of the Pb Equivalent, Including Silver, for Pb and Zn ........................ 63

Figure 45: Value Spread of Rozynenbosch Mineral Resources (Including Silver) ................................. 67

Figure 46: Global Zinc Reserves (2016) .................................................................................. 68

Figure 47: Global Mine Production of Zinc (2017) ..................................................................... 69

Figure 48: Historical Zinc Prices .......................................................................................... 70

Figure 49: Global Lead Reserves (2017) ................................................................................. 72

Figure 50: Global Lead Production (2017) ............................................................................... 73

Figure 51: Historical Lead Prices.......................................................................................... 74

Figure 52: Global Silver Reserves (2017) ................................................................................ 76

Figure 53: Global Mine Production of Silver (2016) .................................................................... 77

Figure 54: Historic Silver Prices ........................................................................................... 78

Figure 55: Zinc Equivalent Valuation Curve ............................................................................. 86

Figure 56: Weighting of Valuation Risk Associated Parameter Matrix .............................................. 87

Figure 57: Proposed Drillhole Programme for the Twinning and Exploration .................................... 104



Mineral Asset Valuation Report xxiv

LIST OF TABLES

Table 1: Units of Measurement..............................................................................................2

Table 2: South African Profile ...............................................................................................7

Table 3: Rozynenbosch Prospecting Right Summary .................................................................. 10

Table 4: Mineral Resources as per Phelps Dodge as at 1974 ......................................................... 17

Table 5: Mineral Resources as per GFSA as at 1985 ................................................................... 17

Table 6: Stratigraphy Pertaining to the Kakamas Terrane (adapted from Boelema, 1994) .................... 21

Table 7: Lithostratigraphic Succession at Rozynenbosch ............................................................. 24

Table 8: Significant Drill Intercepts > 1% Pb ............................................................................ 36

Table 9: Classical Statistics of the Drillhole Database ................................................................ 45

Table 10: Block Model Definition ......................................................................................... 51

Table 11: Rozynenbosch Cut-off Based on Recoveries ................................................................ 61

Table 12: Mineral Resource Statement, Including Silver, for Rozynenbosch as at 31 January 2018 .......... 62

Table 13: Mineral Resource Statement, Excluding Silver, for Rozynenbosch as at 31 January 2018 ......... 63

Table 14: Results of the Grade Tonnage Analysis Based on a Pb Equivalent Cut-off (Including Silver) ...... 64

Table 15: Reconciliation of the Phelps Dodge 1974 and Minxcon 2017 Mineral Resource Estimation ........ 65

Table 16: Zinc Production and Consumption of Top Countries and Globally ...................................... 70

Table 17: Zinc Price Forecasts ............................................................................................ 71

Table 18: Lead Production and Consumption of Top Countries and Globally ..................................... 74

Table 19: Lead Price Forecasts ............................................................................................ 75

Table 20: Silver Supply and Demand ..................................................................................... 78

Table 21: Silver Price Forecasts ........................................................................................... 79

Table 22: Phelps Dodge Data - Merlin Resources Valuation, 2006 .................................................. 81

Table 23: GFSA-Phelps Dodge JV Data - Merlin Resources Valuation, 2006 ....................................... 82

Table 24: Acceptable Methods of Mineral Project Valuation ........................................................ 82

Table 25: Price Used for Current Day Unit Value Adjustment ....................................................... 85

Table 26: Transactions Considered for the Valuation Curve ......................................................... 86

Table 27: Principal Valuation Modifying Factors for Rozynenbosch ................................................ 88

Table 28: Recoveries and Payabilities used to Calculate Zinc Equivalents ........................................ 91

Table 29: Market Approach Valuation on Rozynenbosch Including Silver (Lower Estimate for Exploration

Target) ......................................................................................................................... 92

Table 30: Market Approach Valuation on Rozynenbosch Including Silver (Upper Estimate for Exploration

Target) ......................................................................................................................... 92

Table 31: Transactions of a Similar Nature ............................................................................. 93

Table 32: Market Approach Valuation on Rozynenbosch Excluding Silver (Lower Estimate for Exploration

Target) ......................................................................................................................... 94

Table 33: Market Approach Valuation on Rozynenbosch Excluding Silver (Upper Estimate for Exploration

Target) ......................................................................................................................... 94

Table 34: Rozynenbosch Exploration Expenditure to Date (Estimation) ........................................... 95

Table 35: Prospectivity Rating and Exploration Phase ................................................................ 95

Table 36: Rozynenbosch Project Value (Cost Approach) ............................................................. 96

Table 37: Input Ranges ..................................................................................................... 97

Table 38: Market Value Derived (Inclusive of Silver) .................................................................. 98

Table 39: Market Value Derived (Excluding Silver) .................................................................... 98

Table 40: Final Mineral Asset Market Value Range (Inclusive of Silver) ............................................ 98

Table 41: Final Mineral Asset Market Value Range (Excluding Silver) .............................................. 98

Table 42: Exploration Target Potential at a Cut-off of 1% Pb ...................................................... 103



Mineral Asset Valuation Report xxv

Table 43: Estimated Drilling Budget ..................................................................................... 104

Table 44: Minxcon Risk Matrix ............................................................................................ 106

Table 45: Risk Assessment ................................................................................................ 107

LIST OF EQUATIONS

Equation 1: Pb Equivalent Including Silver .............................................................................. 62

Equation 2: Zn Equivalent Including Silver .............................................................................. 62

Equation 3: Pb Equivalent Excluding Silver ............................................................................. 62

Equation 4: Zn Equivalent Excluding Silver ............................................................................. 62

Equation 5: Zn Eq. Grade for Lead ....................................................................................... 91

Equation 6: Zn Eq. Grade for Silver ...................................................................................... 91

LIST OF APPENDICES

Appendix 1: Glossary of Terms ........................................................................................... 112

Appendix 2: Abbreviations ................................................................................................ 114

Appendix 3: Compliance Statement, Certificate of Competence and Key Technical Staff .................... 115

Appendix 4: Drillhole Collar .............................................................................................. 119

Appendix 5: Checklists: JSE Listings Requirements, SAMREC Compliance, SAMVAL Compliance ............. 121



Mineral Asset Valuation Report 1

1 INTRODUCTION

1.1 TERMS OF REFERENCE AND SCOPE OF WORK

Minxcon (Pty) Ltd (“Minxcon”) was commissioned by Miranda Mineral Holdings Limited (“Miranda”, “the

Company” or “the Client”) to complete an Independent Competent Person’s Mineral Resource Report (“CPR”

or the “Report”) with a mineral asset valuation on the Rozynenbosch Project (“Project”), located in the

Northern Cape Province, South Africa.

The Report was commissioned in order to comply with regulations of the Johannesburg Stock Exchange

(“JSE”) for listed companies. The Report is compiled in compliance with the South African Code for

Reporting of Exploration Results, Mineral Resources and Mineral Reserves (2016 Edition) (“SAMREC Code”),

and in terms of the specifications embodied in the Standards of the South African Code for the Reporting of

Mineral Asset Valuation (2016 Edition) (“SAMVAL Code”). All requirements of the JSE Section 12.9 Listing

Requirements and the SAMREC Code (including Table 1) and SAMVAL Code have been complied with.

The purpose of the CPR is to comply with continuing obligations as required by the JSE Listings Requirements,

with regard to the publication of the CPR on the Company’s website and comply with lifting of the suspension

of the trading in the Company’s shares. The CPR will be used to provide an update for the Company

shareholders, and the information presented will be utilised in the Company’s Integrated Report.

This CPR consolidates all known geological information on Rozynenbosch into a single report which can be

used as a basis for planning additional work on the Project. Further Mineral Resource development work will

be completed in future in order to obtain more information on the Project. The objective of Miranda is to

complete a Preliminary Economic Assessment of the Project within the first year on which the Board can

make a decision as to the future of the Project. A budget and work schedule have been prepared and it is

intended to use the capital structure/listed vehicle to raise sufficient capital to complete the

abovementioned work.

Minxcon was mandated to complete the Report with the following scope of work:-

1. Review Project history;

2. Produce key plans and maps for Report;

3. Describe topography and climate;

4. Review legal aspects and security of tenure;

5. Review Project data, which includes:-

a. Sampling Governance; and

b. Sample method, collection, validation, preparation & storage;

6. Do geological modelling, interpretation and estimation;

7. Do the Mineral Resource estimation;

8. Do market study and project valuation based on two valuation methodologies; and

9. Prepare SAMREC-compliant Mineral Resource Report.

The Report has an effective date of 31 January 2018.

1.2 INDEPENDENCE OF THE ISSUER

The Competent Person is independent of the issuer. Neither Minxcon nor its staff have or have had any interest

in Miranda or its subsidiaries capable of affecting their ability to give an unbiased opinion, and, have not and

will not, receive any pecuniary or other benefits in connection with this assignment, other than normal

JSE 12.9 (d)(e) SAMVAL T1.4

JSE 12.9 (a)

JSE 12.9 (c)

SAMVAL T1.3




consulting fees. Neither Minxcon, nor any of the authors of the CPR, hold any share capital in Miranda or its

subsidiaries.

1.3 SOURCES OF INFORMATION

The plans and sections were supplied by the Client (Miranda Mineral Holding Limited) along with available

reports. Other sources include academic references listed in Section 13 of this Report.

1.4 UNITS AND CURRENCY

The units used in this CPR are in metric terms. Unit symbols as displayed in Table 1 are used.

Table 1: Units of Measurement

Unit Definition

% Per cent

± or ~ Approximately

° Degrees

°C Degrees Celsius

g Grams

g/t Grams per tonne

ha Hectare

km Kilometre

km2 Square kilometres

m Meter

Ma million years

mm millimetre

Mt Million tonnes (1,000,000 t)

Moz Million ounces

oz Ounces

ppm Parts per million

t Tonne

t/m3 Tonnes per cubic meters

x By/Multiplied by

The South African Rand (“ZAR”) is used as the main currency in this Report. The United States Dollar (“USD”)

is also presented in some instances.

1.5 COMPETENT PERSONS SITE INSPECTION / FIELD INVOLVEMENT

The Competent Person of this Report is Mr Uwe Engelmann, who undertook a site visit to the Rozynenbosch

property on 8 March 2018, accompanied by Miss Maria Antoniades (Geologist, Minxcon).

The farm owner, Mr Sarel Bruwer Snr, met with the Minxcon personnel at the Rozynenbosch farm house,

where after he accompanied them to the Mineral Resource area as defined by previous work.

A number of historic drillhole collars were identified (an example is shown in Figure 1), and their collar

coordinates verified by handheld GPS. In addition to these, a number of historic collars (e.g. RB33) were

found for which Minxcon has no information and are not in the database used for this Mineral Resource

estimation.

SAMREC 1.1 (iii)




Figure 1: Drillhole Collar RB58 Identified in the Field

Drillhole Collar RB58 Identified in the Field January 2018

The mineralised target area was traversed and outcrop inspected. The lithologies as described in this report

were verified. Disseminated sulphides (chalcopyrite, pyrite) with grain sizes of less than a millimetre, were

identified in grey “ore zone” gneiss, as shown in Figure 2.




Figure 2: Finely Disseminated Pyrite and Chalcopyrite in Grey “Ore Zone” Gneiss

Finely Disseminated Chalcopyrite in Grey “Ore Zone” Gneiss January 2018

Prior to the field visit, Mr Engelmann had identified possible further target areas for investigation, as depicted

in Figure 3, in which the current Mineral Resource outcrops are encircled in yellow within the farm boundary,

and further upside areas are bounded in green and red lines. The green target areas, which are based on the

historical surface mapping, were traversed and the surface outcrop that was observed is believed to be the

correct lithology for possible mineralisation.




Figure 3: Potential Upside Areas

Potential Upside Areas January 2018

1.6 DISCLAIMERS AND RELIANCE ON OTHER EXPERTS / THIRD PARTY INFORMATION

The Competent Person has additionally relied on the following report:-

• Mossom, R.J. (2006). Resource Estimate of the Pb-Ag-Zn-Cu Deposit Located on the Farm

Rozynenbosch 104, Kenhardt District, Northern Cape Province, South Africa. Compiled on behalf of

Miranda Minerals (Pty) Ltd. Merlin Resources. 8 August 2006. 45pp.

The Competent Person has verified the information as far as possible.

SAMREC 4.5 (viii)




2 PROJECT OUTLINE

2.1 PROPERTY DESCRIPTION

The Rozynenbosch Project is an exploration project that targets a lead-silver-zinc and copper deposit on the

farm Rozynenbosch 104 in the Kenhardt District of the Northern Cape. In the 1970s and 1980s, the property

was extensively explored by Phelps Dodge Corporation (“Phelps Dodge”) and Goldfields South Africa (“GFSA”).

2.2 PROPERTY LOCATION

The Project Area is located some 38 km due southeast of the town of Kakamas in the Northern Cape Province

of South Africa and is centred on the following co-ordinates (WGS 84):-

• Latitude: 29°02’52”S

• Longitude: 20°50’48”E

The larger town of Upington lies 78 km due northeast and the village of Klein Koegab lies 2 km northwest of

Rozynenbosch. The seasonal Hartbees River forms the western boundary of the Project Area.

The following Figure 4 illustrates the regional location of Rozynenbosch.

Figure 4: Location

Location January 2018

The parent farm shown in Figure 5 is located on Government 1:50,000 topo-cadastral sheet 2920BB which is

published by the Chief Directorate, Surveys and Mapping (Private Bag X10, Mowbray 7705, South Africa,

Phone: +27 21 658 4300, Fax: +27 21 689 1351 or e-mail: [email protected]).

SAMREC 1.1 (i)

SAMREC 1.2 (i)(iii)

SAMVAL T1.5




Figure 5: Topo-cadastral Map

Topo-cadastral Map January 2018

2.3 COUNTRY PROFILE

The profile of South Africa is discussed in detail in Table 2.

Table 2: South African Profile

Economic -

overview

South Africa is a middle-income, emerging market with an abundant supply of natural resources;

well-developed financial, legal, communications, energy, and transport sectors and a stock

exchange that is Africa’s largest and among the top 20 largest in the world.

Economic growth has decelerated in recent years, slowing to an estimated 0.3% in 2016.

Unemployment, poverty, and inequality - among the highest in the world - remain a challenge.

Official unemployment is roughly 26% and runs significantly higher among black youth. Even

though the country's modern infrastructure supports a relatively efficient distribution of goods to

major urban centres throughout the region, unstable electricity supplies have retarded growth in

recent years. Eskom, the state-run power company, is building two new power stations and is

installing new power demand management programmes to improve power grid reliability. Load

shedding and resulting rolling blackouts gripped many parts of South Africa in late 2014 and early

2015 because of electricity supply constraints due to technical problems at some generation units,

unavoidable planned maintenance, and an accident at a power station in Mpumalanga province.

The rolling blackouts were the worst the country faced since 2008. Eskom has since successfully

reversed the electricity deficit to a significant surplus. Plant availability has improved from 69.9%

SAMREC 1.2 (ii)




in 2015 to 77.3% at the end of March, 2017, primarily as a result of new generating capacity added

from Medupi, Ingula and Kusile power stations.

The South African Reserve Bank’s policies have focused on controlling inflation; however, the

country faces structural constraints that also limit economic growth, such as skills shortages, poor

corporate governance, inefficiencies and high debt levels at State owned enterprises, declining

global competitiveness, and frequent work stoppages due to strike action. The South African

government faces growing pressure from urban constituencies to improve the delivery of basic

services to low-income areas and to increase job growth.

GDP

(purchasing

power parity)

USD736.3 billion (2016 est.), ZAR4,453 billion



Note: data are in 2016 US dollars

GDP - real

growth rate

0.90% (2017 est.)

0.28% (2016 est.)

1.3% (2015 est.)

1.7% (2014 est.)

Unemployment

rate

26.8% (2016 est.)

25.4% (2015 est.)

Budget Revenues: USD76.62 billion

Expenditures: USD86.45 billion (2016 est.)

Budget surplus

(+) or deficit (-)

-3.5% of GDP (2016 est.)

Inflation rate

(consumer

prices)

Commercial

bank prime

lending rate

10.25% (31 December 2017 est.)

10.6% (31 December 2016 est.)

9.42% (31 December 2015 est.)




Agriculture -

products

Corn, wheat, sugarcane, fruits, vegetables; beef, poultry, mutton, wool, dairy products.

Industries Mining (world's largest producer of platinum, and chromium), automobile assembly, metalworking,

machinery, textiles, iron and steel, chemicals, fertilizer, foodstuffs, commercial ship repair.

Imports -

partners

China 17.6%, Germany 11.2%, US 6.7%, Nigeria 5.0%, India 4.7% Saudi Arabia 4.1%, (2015).

Exchange rates

Fiscal year 1 April - 31 March

2.4 LEGAL ASPECTS AND PERMITTING

The nature of the issuer’s rights and the right to use the surface of the properties to which these Project

Areas relate are described in the following sections. The farm boundaries are clearly defined by existing

fencing and other boundary markers and depicted on Surveyor General and topographical maps.

2.4.1 Corporate Structure

The Rozynenbosch Project is held under rights by Miranda Minerals (Pty) Ltd, a direct and wholly-owned

subsidiary of Miranda Mineral Holdings Limited.

The currently active South African Mining Charter (2010) requires a minimum of 26% meaningful economic

participation by the historically disadvantaged South Africans (“HDSAs”) reflected as a Black Economic

Empowerment (“BEE”) shareholding. On fulfilment of the conditions precedent set out in the agreement

regulating the Miranda Minerals (Pty) Ltd BEE transaction, Kwanda Minerals Holdings (Pty) Ltd, together with

a trust established by Miranda for the benefit of the mining community situated in and around the

Rozynenbosch area, will constitute the BEE component of Miranda Minerals (Pty) Ltd with a 30% share capital.

The proposed corporate structure of Miranda is shown in Figure 6.




Figure 6: Proposed Corporate Structure

Proposed Corporate Structure January 2018

2.4.2 Rights to Prospect

All mining and prospecting rights in the Republic of South Africa are issued by the Department of Mineral

Resources (“DMR”) in accordance with the Mineral and Petroleum Resources Development Act, No 28 of

2002 (“MPRDA”).

Rozynenbosch is held under new order prospecting right NC 30/5/1/1/2/0533 PR (“533 PR”), issued over

portions 4 and 5 (previously remainder) of the farm Rozynenbosch 104, to Miranda Minerals (Pty) Ltd on 5

February 2018. This right is valid for three years expiring on 4 February 2021.

The 533 PR, which encompasses an area of 6,483.37 ha, is issued in respect of copper ore, cobalt, zinc and

lead.

The following Table 3 provides a summary of the prospecting right that encompasses the Rozynenbosch

Project.

Table 3: Rozynenbosch Prospecting Right Summary Right

Number Holding

Company Farm

Area Commodity Issue Date Expiry Date

ha

533 PR Miranda Minerals (Pty) Ltd

Rozynenbosch 104

6,483.37 Copper,

cobalt, zinc and lead.

5 February 2018

4 February 2021

It is noted that silver is not currently included as a commodity encompassed by this 533 PR. The Competent

Person is not aware of another body holding the silver rights over the farm Rozynenbosch 104. Silver is

present in sufficient quantities to be included as a material Mineral Resource and a value placed thereupon.

Currently, a Section 102 application in terms of the MPRDA is in preparation to include silver in the 533 PR.

2.4.3 Surface Rights

The Remaining Extent and portion 3 of the farm Rozynenbosch 104 was consolidated into the current portion

5. Surface rights are currently held by Witvlei Boerdery Trust.

There are currently no surface rights agreements in place.

SAMREC 1.5 (i)(iii)

SAMREC 1.5 (i)




In terms of the MPRDA, the holder of a prospecting right may enter the land to which such right relates, bring

his or her employees onto the land and bring any plant, machinery or equipment or build or construction or

lay down any surface or underground infrastructure which may be required for the purposes of exploration,

and may prospect, remove and dispose of such mineral, use water in relation to prospecting activities, and

carry out any other activity incidental to exploration (ALB, 2017).

The holder of a prospecting right has duties towards the landowner or lawful occupier in terms of consultation,

and the holder of a prospecting right has to compensate the landowner for loss or damage suffered as a result

of the conduct of prospecting activities. It is not necessary for the holder of a prospecting right to purchase

land or even enter into an agreement to use the land with the surface owner (ALB, 2017).

2.4.4 Environmental Permits

The Rozynenbosch Project is currently held under a prospecting right. The 533 PR was previously issued on

10 June 2013 but never registered and executed. In support of this previous application, an environmental

management plan (“EMP”) was submitted and approved. A new application was made for the licence in 2017

based on the 2013 application, which was then granted. As such, an updated and amended EMP may be

required.

Should the Project progress to mining stage, the prospecting right will have to be converted to a mining

right. Environmental permits will be issued as part of the One Environmental System OES implemented on 8

December 2014, which aims to streamline the licencing process for conclusion within 300 days of submission

of a mining right application. As part of the approval for a mining right, the DMR requires approval of an

Environmental Authorisation.

2.4.5 Government Requirements

All governmental requirements as may be required have been approved, or there is reasonable basis to

believe that all governmental requirements required for the Project can be obtained. The reader is referred

to Section 2.4.9 regarding execution of the prospecting right.

Further, Miranda adheres to environmental and sustainability principles as set out in the MPRDA.

2.4.6 Water Use Licence

The Rozynenbosch Project is currently held under a prospecting right. At this stage, no water use licences

are required for exploration work. However, should the right be superseded in the future by a mining right,

a water use licence will have to be obtained in terms of the OES for specific water uses as identified.

2.4.7 Other Permits

Currently, to The Competent Person’s knowledge, no further permits are required for the Rozynenbosch

Project as it stands.

2.4.8 Agreements

There are no agreements in place as yet for the Project.

2.4.9 Security of Tenure

Neither the Competent Person nor any other Minxcon employee is not authorised to provide opinion on legal

aspects and tenure but has had sight of the executed 533 PR and is satisfied with its authenticity and validity.

SAMREC 1.5 (v)

SAMREC 5.5 (i)(ii)

SAMREC 1.5 (iii)

SAMREC 1.5 (ii)




Through its wholly owned subsidiary Miranda Minerals (Pty) Ltd, Miranda holds the right to exercise the

licence subject to conditions as stipulated in the notarially executed right.

2.4.10 Legal Proceedings

The Competent Person is not aware of any further legal proceedings relating to the tenure of the Project.

There are no current legal proceedings relating to the Project.

2.5 ROYALTIES AND LIABILITIES

2.5.1 Government Royalty

The current Mineral and Petroleum Resources Royalty Act came into effect on 1 March 2010. The law requires

all companies extracting minerals in South Africa to pay royalties at a rate of between 0.5% and 7% based

on gross sales. Companies are taxed on either the refined or unrefined formula:-

• Refined mineral formula = 0.5 + [EBIT/Gross sales x 12.5] x 100

• Unrefined Mineral Resource formula =0.5 + [EBIT/Gross sales x 9] x 10

Miranda is not currently extracting or transferring any Mineral Resources, therefore no royalty is payable.

2.5.2 Rehabilitation Guarantees

Currently, a Guardrisk shortfall insurance policy of ZAR70,000 is in place for the Project under Miranda

Minerals (Pty) Ltd. In terms of Regulation 54(2) of the MPRDA, Miranda must make financial provision for the

interim and final rehabilitation activities on the site. The provision must be reviewed annually for adequacy

and amended to compensate for new activities and/or inflation.

SAMREC 1.6 (i) SAMREC 1.7 (i) SAMREC 5.6 (vii)

SAMREC 1.5 (iv)




3 ACCESSIBILITY, PHYSIOGRAPHY, CLIMATE, LOCAL RESOURCES AND

INFRASTRUCTURE

3.1 TOPOGRAPHY, ELEVATION AND VEGETATION

Elevations across the Project Area rise gently eastwards across a broad plain away from the depression of the

river valley, from some 725 m amsl to 860 m amsl over a distance of 15 km. A few NNW-SSE trending, rugged

mountainous outcrops occur to the east. The topography does not pose major hindrances to exploration and

mining activities.

The Hartbees River flows roughly north-westwards as a tributary to the Orange River, which flows roughly

westwards and lies only 30 km north of Rozynenbosch. The region is arid, and a few minor peripheral drainage

lines are evident in satellite images running westwards down the property gradient towards the Hartbees

River.

The region falls within the Nama-Karoo biome. Vegetation is sparse and reflects the arid environment. Some

hardy grasses and low shrubs are scattered across the local landscape, with a few trees and marginally denser

vegetation overall occurring at the rocky outcrops. In the Kakamas region, intensive farming drives the local

economy, with irrigation water sourced from the Orange River. Export grapes, raisins, peaches, dried fruit

and dates amongst others are produced.

The Project lies within the Riemvasmaak Community Conservancy.

3.2 CLIMATE AND WEATHER

The Project Area falls within a region classified as a desert climate that is characteristically hot and arid with

virtually no rainfall during the year. The summer months of November to February see temperatures averaging

over 30°C, and also receive the most precipitation. The drier winter months of May to August see average

temperatures of about 20°C. The average annual rainfall recorded in the nearby town of Kakamas is 134 mm.

The following Figure 7 shows the annual temperature as recorded at Kakamas.

SAMREC 1.1 (ii)




Figure 7: Kakamas Temperature Graph

Source: www.worldweatheronline.com

There are no known associated weather or climatic risks that may affect exploration or future mining

operations at the Project.

3.3 PROPERTY ACCESS

Rozynenbosch is directly accessible via a northwest-southeast arterial road that branches off the R359 at

Kakamas, traverses the Project Area in the west, and links to the R27 near Kenhardt. Numerous tracks and

gravel roads provide access to the entire Project Area.

3.4 PROXIMITY TO POPULATION CENTRES AND NATURE OF TRANSPORT

Kakamas town is located 37 km northwest of the Project and Kenhardt 45 km southeast. Upington lies 78

km due northeast and the village of Klein Koegab lies 2 km northwest. Kakamas hosts schools, shops, police

station and a hospital.

A network of reasonably well-maintained tar and gravel roads connect towns and farms in the area. The

national road N14 linking Johannesburg to Springbok runs along the northern border of the Orange River at

Kakamas, while the R359 runs along the southern border and links to the N14 just east of Kakamas.

A branch line extension from a main line railway connection at Upington is located in Kakamas. The Spoornet

Sishen-Saldanna iron ore railway line passes through Kenhardt but is essentially a private line with common

user status not guaranteed (Mossom, 2006). Upington is served by a scheduled air service to the Upington

Airport, and the small Kakamas aerodrome mainly hosts small charters.

SAMREC 5.4 (i)




The Competent Person is not aware of any conditions that may affect possible prospecting or mining

activities.

3.5 GENERAL INFRASTRUCTURE

There is currently no major infrastructure at Rozynenbosch. The closest Eskom electricity grid is located at

Kakamas. The region is semi-arid and the only permanent water supply will be from the Orange River,

supplemented by the seasonal Hartbees River and possibly water boreholes. A few buildings and associated

structures are evident on Google Earth imagery, located in a minor area around the arterial main road

through the property.

There are numerous potential waste disposal sites, heap leach pad areas and potential processing plant sites

across the Project Area. A buffer zone will likely be necessary around the Hartbees River course to avoid

contamination of the river.

No surface rights are currently required for prospecting activities, as per the MPRDA.

All necessary logistics have been considered in this Report for the Project.

SAMREC 5.4 (ii)(iii)




4 PROJECT HISTORY

4.1 PREVIOUS OWNERSHIP

Rozynenbosch, also referred to as Red Hill, was initially explored by Phelps Dodge in the 1970s, as part of a

regional exploration programme. Phelps Dodge later entered into a joint venture agreement with GFSA.

Phelps Dodge later withdrew and GFSA restructured their portfolio.

In November 1999, the Rozynenbosch mineral rights were ceded from GFSA to Miranda excluding the rights

to gold, silver and precious stones. Miranda applied for conversion of this old order prospecting right over

the farm Rozynenbosch 104 to a new order prospecting right, of which the application was submitted to the

former Department of Minerals and Energy (“DME”, now DMR) on 28 April 2005. The conversion was not

approved in a decision made by the DME in July 2006, leading to third party interest in the Project. The DMR

decision was appealed much later following lack of correspondence during ownership and management

changes. The decision was successfully overturned and the prospecting right granted in July 2013

(miningweekly.com). However, this right was never executed and was subsequently re-awarded to Miranda

subsidiary Miranda Minerals (Pty) Ltd in February 2018, as discussed in Section 2.4.2 of this Report.

4.2 PREVIOUS EXPLORATION

The Northern Cape Province was the subject of extensive exploration interest in the 1960s following the

discovery and exploitation of the Copperton Zn-Cu deposit. Phelps Dodge was a significant explorer and

carried out regional surveys in search of similar deposits. During an aerial reconnaissance survey in the

Kenhardt district conducted in 1972, a prominent fold structure was identified close to the western boundary

of the farm Rozynenbosch 104. Follow-up ground exploration revealed a number of old prospecting trenches

containing galena as well as a prominent gossan containing significant lead and silver values. Some 11,812 ha

of ground in and around Rozynenbosch was acquired for prospecting purposes (Mossom, 2006).

Phelps Dodge carried out extensive exploration work from 1972 to 1983, and to 1987 under the GFSA joint

venture (“JV”). The JV information was donated by GFSA to the open file system maintained by the Council

for Geoscience. The Rozynenbosch Project consisted of geophysics, grid surveying, detailed geological

mapping, soil sampling, geochemical chip sampling and diamond core drilling, logging, sampling and assaying.

Some 15,000 m of diamond drilling over 68 drillholes were completed from which geological sections and

grade profiles were compiled (Mossom, 2006).

No exploration has been conducted by Miranda and as such, all exploration information available for the

Project is historical in nature and presented in Section 6 of this Report.

4.3 PREVIOUS MINERAL RESOURCE ESTIMATES AND COMPLIANCE

Mineral Resources for the Project were historically stated by both Phelps Dodge and GFSA.

The Phelps Dodge estimate is presented in Table 4 at 1% Pb-Zn over a width of 5 m. The estimate is based on

60 diamond drillholes over 13,309 m.

SAMREC 1.4 (i)(ii)

SAMREC 1.4 (i)(ii)

SAMREC 1.4 (iii)

SAMVAL T1.6




Table 4: Mineral Resources as per Phelps Dodge as at 1974

Combined Pb+Zn Tonnes Pb Zn Pb+Zn Ag

Cut-off Mt % % % g/t

1 6.99 2.56 0.54 3.09 43.09

1.5 6.15 2.77 0.57 3.34 47.74

2 4.84 3.19 0.64 3.83 51.58

2.5 3.19 3.88 0.88 4.75 44.06

3 2.58 4.28 1.07 5.35 52.93

Later, in 1985, GFSA re-estimated the Mineral Resources based on additional mapping, drilling, geophysical

and geochemical surveys using a computerised inverse distance with a distance limit of 60 m. The estimate

as presented below is at a zero cut-off over a width of 3 m.

Table 5: Mineral Resources as per GFSA as at 1985

Combined Pb+Zn Tonnes Pb Zn Cu Ag

Cut-off Mt % % % g/t

0 14 1.72 0.46 0.03 34.1

These Mineral Resources were presented again by RJ Mossom of Merlin Resources in 2006. No supporting

information was presented.

The historical Mineral Resources for Rozynenbosch are not deemed to be in compliance with any current

mineral reporting codes, including the SAMREC Code.

4.4 PREVIOUS MINERAL RESERVE ESTIMATES AND COMPLIANCE

No Mineral Reserves have previously been states for Rozynenbosch.

4.5 PREVIOUS PRODUCTION

There has not been any production from the Project Area to date.

SAMREC 1.4 (iv)




5 GEOLOGICAL SETTING, MINERALISATION AND DEPOSIT TYPES

5.1 GEOLOGICAL SETTING

5.1.1 Regional Geology

The Namaqua-Natal Metamorphic Complex (“NMC”) (Figure 8) is a tectonostratigraphic province (Stockwell

et al, 1970) that stretches 1,400 km across South Africa and Namibia, is approximately 400 km wide and is

truncated by the ~600 Ma Pan-African Gariep and Saldania belts in the west and south respectively (Franson,

2008). The NMC forms a large area of contiguous structural fabric with well-defined boundaries which

formed during a particular, geochronologically defined, tectono-metamorphic event. It contains igneous and

metamorphic rocks formed or metamorphosed during the Namaqua Orogeny at ~1,200-1,000 Ma (Franson,

2008).

Figure 8: Location of the Tectonostratigraphic Namaqua-Natal Metamorphic Complex in Relation to the Kaapvaal Craton

Source: Adapted from Sithole 2013 and Cornell, 2006


January 2018

The terranes of the Namaqua Orogeny are composed of “ocean island arcs, fragments of older continental

crust, ocean floors and sediments” which are added onto an “older stable crustal block” such as cratons

(Sithole, 2013 and Petterson et al, 2007).

The NMC represents a transpressional tectonic environment that formed by a combination of compressional

and strike slip tectonics which is associated with uplift and the formation of thrusts. This is known as oblique

convergence and occurs when one landmass indents the other and continued compression introduces a strike

slip component and results in lateral escape (Sithole, 2013 after Marshak and Van der Plujim, 2004).

The regional-scale structural discontinuities subdivide the western belt of the NMC into a number of tectonic

domains and subprovinces of distinct tectonometamorphic history. These, from west to east, include the

SAMREC 2.1 (i)

SAMVAL T1.7




Richtersveld Subprovince (to the northwest), Bushmanland Subprovince (consisting of the Bushmanland and

the Gariep Terranes), Gordonia Subprovince (Kakamas Terrane, Areachap Terrane) and the Kheis

Subprovince or Kaaien Terrane (Foulkes, 2014 and Sithole, 2013) as depicted in Figure 9 (Lambert et al,

2017).

The main structural features are the Neusspruit (“NSZ”), Boven Rugzeer (“BoSZ”), Straus Heim, Cnydas and

Trooilapspan shear zones (“TSZ”) (Moen, 2007; Stowe, 1986; Thomas et al, 1994).

Figure 9: Subprovinces and Main Shear Zones of the Namaqua-Natal Metamorphic Complex

Source: Adapted from Lambert et al. (2017)


January 2018

5.1.2 Local Geology

Owing to the structural, metamorphic and stratigraphic complexity of the NMC, only the structurally bound

subprovinces will be covered and their respective main stratigraphic formations will be mentioned in the

paragraphs below, with the exception of the Kakamas Terrane within the greater Gordonia Subprovince,

which will be covered in more detail and in which the Rozynenbosch Project is located.

5.1.2.1 Bushmanland Subprovince

The westernmost Bushmanland Subprovince (Figure 9), adjacent to the Gordonia Subprovince, is characterised

by an anticlinal structure. The Rietput Formation is located in the core area and is structurally overlain by

the Kameel Puts Formation. The anticlinal structure is bounded by the Hartbees River Thrust to the east and

the Vogelstruisleegte Fault to the west (Moen, 2007).




The Kameel Puts Formation is structurally overlain by the Dröeboom Group which is bound by the

Vogelstruisleegte and Swartland faults (Moen, 1999 and 2007).

The characteristic lithologies of the Bushmanland Subprovince consist of supracrustal successions, calc-

silicate, gneisses, granitoids, amphibolite and marble.

5.1.2.2 Gordonia Subprovince

The Gordonia Subprovince extends westwards from the TSZ to the Hartbees River thrust (“HRZ”) (Figure 9)

and is subdivided into two terranes, namely the Areachap and Kakamas Terranes (Moen, op.cit).

The Areachap Terrane to the east comprises the Areachap and Korrannaland Groups and also the granites of

the Keimoes Suite (Moen, 1999 and 2007).

The Kakamas Terrane occupies the western portion of the sub-province and consists predominantly of augen

gneisses which underlie the Korrannaland Group (Sithole, 2013). There are also supracrustal successions within

this high-grade terrane which are indicated by the calc-silicate rocks of the Arribees Group and migmatitic

metapelites of the Hartbees River Complex (Moen, 1999 and 2007; Sithole, 2013).

The Gordonia Subprovince was thrust eastwards at 1.24-1.20 Ga (Eglington, 2006) over the Kheis Subprovince

onto the western margin of the Kaapvaal Craton at the onset of the 1.2 - 1.0 Ga Namaquan Orogeny, with the

accretion of the Areachap Group volcanic arc onto the western margin of the Kaapvaal Craton (Moen, 2007).

The thrust faults were later steepened due to late dextral transpression into sub-vertical shears such as the

TSZ and Brakbosch Shear Zone and fault (Petterson et al, 2007; Bailie et al., 2012).

The Gordonia Subprovince was subjected to high-grade regional metamorphism of upper amphibolite to lower

granulite facies due to several thermal events associated with the intrusion of the Keimoes Suite granitoids

(Van Bever Donker, 1980; Stowe, 1983 and 1986; Geringer et al, 1994; Bailie et al, 2012; Sithole, 2013).

Four main metamorphic events were recognised by Cornell et al (1992), with the peak of metamorphism being

contact metamorphism due to the intrusion of the syntectonic granitoids of the Keimoes Suite (Bailie et al,

2011; Cornell et al, 1992). Peak metamorphism was accompanied by peak deformation giving rise to large

scale tight to isoclinal subvertical folds with northwest trending axial traces. Later metamorphism was

retrograde to isothermal regional contact metamorphism coinciding with folding and intrusion of late- to post-

tectonic granitoids of the Keimoes Suite. The area is transected by several shear zones from west to east that

indicate regional retrograde late metamorphism (Bailie et al, 2011; Geringer et al, 1986).

The Areachap Terrane consists of volcano-sedimentary material of the Areachap Group, which were subjected

to amphibolite to granulite facies metamorphism during the continental collision between the Kaapvaal

Craton and Namaqua province (Bailie et al, 2011; Cornell et al, 1990, 1992; Petterson et al, 2007).

The rocks of the Areachap Group are exposed from Upington to Kleinbegin in a northwest trending belt which

is terminated by the BoSZ (Moen, 2007). Geringer et al (1994) indicate that the lithostratigraphy of the

Areachap succession consists of four volcanic centres, namely the Copperton, Boksputs-Vanwykspan,

Kleinbegin, and Upington volcanic centres, each distinguished according to the volcanism and type of

sediment occurring within them. The metamorphosed sedimentary units are a variety of gneisses occurring

with calc-silicate and banded iron formation (Geringer et al, 1994). The Areachap Group contains stratiform,

volcanogenic Cu-Zn sulphide mineralisation.

The Kakamas Terrane is dominated by numerous intrusions along with lesser metasedimentary rocks of the

Korannaland Group, and has been subjected to varying degrees of deformation. The metasedimentary rocks




include highly deformed granulite to amphibolite gneiss, calc-silicate and feldspathic quartzite and

charnockites (Bailie et al, 2012; Sithole 2013).

A summary of the stratigraphic units as well as the intrusives is presented below in Table 6 after Boelema

(1994). Owing to the structural complexity of the area, the intrusive units are not necessarily placed in

chronological sequence.

Table 6: Stratigraphy Pertaining to the Kakamas Terrane (adapted from Boelema, 1994) Group Formation Age Lithology

Sout River Formation Banded biotite gneiss, muscovite gneiss and sillimanite gneisses

Goedhoop Formation Quartzite, sericitic and/or feldspathic, with lenses of conglomerate

Korannaland Sequence

Valsvlei Formation

1,800-,2300 Ma for the Korannaland Sequence

Feldspathic quartzite with minor interlayered calc-silicates

Ganzenmond Formation

Quartz-feldspar-biotite +/- sillimanite +/- garnet gneiss, quartz-feldspar-biotite gneiss, massive quartzite and quartz-feldspar gneiss

Puntsit Formation diopside-epidote-hornblende-quartz-feldspar rock, massive garnet calc-silicate, marble and amphibole-quartz-feldspar gneiss and wollastonite

Toeslaan Formation Kinzigite, pelitic gneiss, biotite gneiss and leucocratic paragneiss

Sandputs Formation Quartzite with varying feldspar and calc-silicate minerals

Omdraai Formation Leucocratic quartz-feldspar gneiss, amphibolite and quartzite

Piet Rooisberg Formation

weakly foliated quartz-feldspar gneiss

Renosterkop Gneiss Quartz-topaz gneiss

Koekoepkop Formation Quartz-feldspar-amphibole gneiss

Venterskop Formation Kinzigite

Sandnoute Formation Aluminous gneiss interbedded with quartzite, amphibole rich feldspathic quartzite, amphibole gneiss, amphibolite, calc-silicates

Jacomynspan Group Aluminous metapelitic gneiss with interbanded quartzite, leucocratic quartz-feldspar gneiss, amphibolite calc-silicate and marble

Koelmanskop Metamorphic Sequence

Collinskop Formation Kinzigite

Bok-se-puts Formation Quartz-feldspar gneiss with quartz-rich and pelitic rich zones

Koukop Formation Migmatitic leucogneiss and biotite, garnetiferous gneiss and amphibole gneiss

Witwater Gneiss Garnetiferous mica-poor gneiss and pegmatite

Twakputs Gneiss Megablastic garnetiferous biotite gneiss

Hartbees River Complex (Vyfbeker Metamorphic Suite)

Wolfkop Formation Dolomitic marble, interbanded quartz-feldspar gneiss, amphibolite and calc-silicates

Hugosput Formation Quartz-feldspar gneiss with layers of garnet-sillimanite aluminous gneiss, biotite gneiss, amphibolite, quartzite and calc-silicates

Rozynenbosch Formation

Dominantly feldspathic unit with a dominantly calc-silicate unit: The feldspathic unit constitutes a quartz-feldspar +/- biotite gneiss, with interbanded migmatitic biotitic gneiss and calc-silicates close to the upper contact. The calc-silicate unit comprises of amphibolite, granoblastic calc-silicate with minor quartz-feldspar gneiss and biotite gneiss

Dreyer's Put Formation Granoblastic quartz-feldspar gneiss with banded and massive quartzite

Kenhardt Migmatite Interbanded biotite gneiss, quartz-feldspar +/- biotite gneiss with lenses of amphibolite, calc-silicate, marble and aluminous gneiss

Piet Rooi's Puts Gneiss Quartz-feldspar +/- biotite gneiss with amphibolite lenses




Group Formation Age Lithology

Mottels River Formation

Banded quartz-feldspar +/- biotite +/- sillimantite +/- cordierite gneiss. Abundant pegmatites

Aasvogelkop Gneiss Leucocratic thinly banded gneiss

Putsies Gniess Quartz-feldspar +/- biotite gneiss

Driehoek Formation Dominantly amphibolite (hornblende) associated with interlayerd calc-silicate, marble, quartz-feldspar +/- sillimanite gneiss, biotite gneiss or schist

Intrusive Rocks

Keimoes Suite 1,200-1,054 Ma.

Calc-alkali with dominantly I-type affinity - Syn- to post-tectonic granites

Unnamed mafic and ultramafic rocks

Serpentinites, dunites, gabbros

Eendoorn Suite Biotite rich occasionally garnetiferous granite gneisses

Kalkwerf Gneiss Coarse grained granite gneiss

Augrabies Gneiss Granite gneiss

Kakamas Suid Gneiss Augen gneiss

Riemvasmaak Gneiss Granite gneiss with granular or augen texture

Dyasons Klip Gneiss Porphyroblastic to megacrystic gneiss

Klip Bakken Gneiss Coarse to megacrystic quartz feldspar gneiss

Curries Camp Gneisss Coarse to megacrystic quartz feldspar gneiss

Banks Vlei Gneiss Biotite rich and biotite poor granite of gneiss

Lutzputs Gneiss Granite gneiss with sillimanite and garnet Derived mainly from Slabbert et al (1994) and Moen (1988). Due to the structural complexity of the area, the table is not necessarily arranged in chronological order (Source: Boelema, R., 1994)

The Korannaland Group is restricted to the Gordonia Subprovince and outcrops as a northwest trending belt

from north of Kenhardt to the eastern boundary of Riemvasmaak where it disappears under undeformed

sediments of the Neoproterozoic Nama Group (Moen, 1999 and 2007).

The Korannaland Group consists of metamorphosed psammitic and semipelitic with calc-silicate and marble

horizons. These rocks are grouped together as the older Biesje Poort Subgroup and the younger micacous

quartzite of the Goede Hoop Formation (Moen, 1999 and 2007).

The Reimvasmaak augen gneiss locally intrudes the lower parts of the Korannaland Group in the Central and

Melkboom domes. The Korannaland Group outcrops are fragmented by the granitoids of the Keimoes Suite. \

The age of the Korannaland Group is debatable but Barton and Burger (1983) established an age which

predates the Keimoes Suite of ~1.2 Ga (Moen, 1999 and 2007; Sithole, 2013).

5.1.2.3 Kheis Subprovince

The boundaries, age and lithostratigraphy of the Kheis Subprovince (Moen, 2007) are viewed as being

controversial as the region consists of a unique lithostratigraphy, metamorphic grade and structural grain.

The lithologies consist of thick successions of arenitic and metavolcanic rocks which have been

metamorphosed to greenschist facies and overlain by unfolded lavas and arenaceous sediments of the Koras

Group, with the metamorphic rocks being subjected to polyphase deformation.

The eastern boundary is a major steepened thrust known as the Dabep Fault (“DT”) (Figure 9) which marks

the boundary between the Kheis Subprovince and the Kaapvaal Craton (Moen, 1999 and 2007). The western

boundary is taken as the Brakbosch fault and forms the western limit of the quartzitic successions in the

Namaqua foreland between Copperton and Kleinbegin (Moen, 2007, and Stowe, 1986).

Sedimentological data suggests that the arenites were deposited on a westward-expanding passive margin at

the onset of a collision with a continental block ~1.35 Ga ago (Moen, 1999 and 2007).




During the final convergence, the Kheis rocks were folded and thrust back onto the craton. Considerable

erosion took place before the final episode of deposition of the bimodal Koras volcano-sedimentary succession

(Moen, 1999 and 2007; Sithole, 2013).

The Vaalkoppies Group of the Kheis Subprovince is the only group of rocks which is “extensively invaded” by

the Keimoes Suite granites (Moen, 2007). These rocks form a linear southeast-trending belt which is truncated

by the Brakbosch fault, to the east of which the rocks form a prominent range of hills defining a complex

antiformal structure, and to the west of which it forms a belt of low hills with the basal conglomerate of the

Areachap Group found along most of the groups western boundary (Moen, 2007; Sithole, 2013).

5.1.3 Property Geology

NMC metamorphic lithologies of the Rozynenbosch Formation as well as later intrusives belonging to the

Keimoes and Eendoorn Suites outcrop on Rozynenbosch as depicted in Figure 10.

Figure 10: Surface Geology at Rozynenbosch


Surface Geology at Rozynenbosch January 2018

The Rozynenbosch Pb-Zn-Cu-Ag deposit is located within the Rozynenbosch Formation just east of the

Hartbees River Thrust on the western boundary of the Kakamas Terrane which forms part of the Vyfbeker

Metamorphic Suite of the Hartbees River Fragment or Complex (Table 6) (Boelema, 1994). The Formation

comprises two main rock types groups, namely a felspathic (arkosic) unit consisting of quartz / feldspar /

SAMREC 2.1 (ii) (vi)




biotite gneiss and a calc-silicate unit comprising amphibole, meta-dolomite, marble and calc-silicate rocks

with minor granitic gneiss and biotite gneiss (Mossom, 2006). The main lithotypes in the interpreted sequence

are presented below in Table 7.

Table 7: Lithostratigraphic Succession at Rozynenbosch Rock Type

Group Lithology Description

Arkosic Unit

Pink Gneiss medium-grained quartz-feldspar-biotite gneiss

Grey "Ore Zone" Gneiss

medium/fine-grained, probably altered arkose, and finely-disseminated sulphides

Garnet Gneiss garnet-rich, plus epidote. Associated with the ore zone

Calc-silicate Unit

Calc-silicates erratic garnet-epidote rock

Dolomite locally micaceous, white to green/grey dolomite

Amphibolite well laminated dark grey-green plagioclase/ hornblende/epidote rock

Biotite Gneiss well-laminated biotite-rich, grading upwards into amphibolite

Sheared unconformity

Basement Basement Gneiss Pink to grey, coarse-grained, sometimes sillimanite-bearing

The lenticular-shaped stratabound orebodies of disseminated sulphides are hosted mainly by a garnetiferous

leucogneiss.

At least four phases of deformation have been recognised at Rozynenbosch. The phases of deformation are

characterised by plastic folding events and are labelled from F2 through to F5. The F3 fold axes trend

northwest to south east with a mean stratigraphic strike approximating east to west and form the dominant

regional fabric. The F2 structures are located within the limbs of the F3 fold structures. Both F2 and F3

structures have been interpreted as asymmetric isoclinal structures. The F4 and F5 deformational events

overprinted the F2 and F3 events in the form of flexural folding, resulting in the F2 and F3 structures forming

open-ended doubly-plunging features.

An original structure plan of Rozynenbosch with fold axes populations plotted is presented in Figure 11.




Figure 11: Structural Interpretation Over a Portion of Rozynenbosch


Structural Interpretation Over a Portion of Rozynenbosch January 2018

An idealised schematic section through the lithologies in relation to the geological structure is presented in

Figure 12.




Figure 12: Idealised Section Through the Lithologies in Relation to Geological Structure at Rozynenbosch

Source: Adapted from Pearson (1985)

Idealised Section Through the Lithologies in Relation to Geological Structure at Rozynenbosch

January 2018

5.2 NATURE OF, AND CONTROLS ON, MINERALISATION

The modelled Pb isotope ages for the Rozynenbosch deposit are between 1,200-1,150 Ma (Koppel, 1980) and

lies within a fault-bounded crustal fragment, just east of the basal thrust within the Hartbees River Thrust

Belt within the Gordonia Subprovince (Refer to Figure 9), therefore occurring in a zone of thrusting and along

a "line" of SEDEX deposits as defined by the Aggeneys, Putsberg and adjoining Geelvloer deposits.

SEDEX deposits are not primarily driven by intrusions below but are instead products of dewatering and

metamorphism of the piles of accumulated sediments within ocean basins with anoxic conditions by means of

venting hydrothermal solutions into a submarine environment. The mineralising fluids were then controlled

by normal faulting which defined the edges of these basins and precipitated the sulphides synchronously with

the influx of sediments, which Moore et al (1986) defined as having been deposited in continental, lagoon-

shallow marine and marine environments.

A schematic diagram of a typical SEDEX formation mechanism is presented in Figure 13.

SAMREC 2.1 (ii)




Figure 13: Genetic Model for the Formation of SEDEX Deposits

Source: Briskey (1986)

Genetic Model or the Formation of SEDEX Deposits January 2018

Metals in solution are mainly carried in chloride/sulphide complexes and precipitate out of solution with the

decrease in temperature when the hydrothermal fluid mixes with the ocean water.

For SEDEX deposits to form, basins require several kilometres of sediment (lacking oxygen) and heat driven

primarily by depth of burial rather than through intrusions, thus explaining the lack in copper which is usually

associated with mafic intrusions. Lead, zinc and silver mineralisation is purely derived from leaching of the

sediments themselves (Briskey, 1986).

5.3 NATURE OF DEPOSITS ON PROPERTY

The Rozynenbosch orebody is thought to have been deposited through sedimentary exhalation and was later

remobilised and tectonically displaced during thrusting of the Hartbees River Thrust event and/or the final

stages of northward convergence related to the main Kibaran-aged Namaqua event (Pearson, 1985).

Sulphide mineralisation currently appears to have been emplaced along antiformal axes of F4 and F5 events

within the arkosic metasediments in the formation of lenzoid orebodies as depicted in Figure 12 (Pearson,

1985).

The mineralogy of the sulphides includes galena, sphalerite, chalcopyrite and pyrite. Grades in the

disseminated ore are up to 2% Pb and 18 g/t Ag. Cu and Zn values are negligible (Boelema, 1994).

SAMREC 2.1 (ii) (v)




5.4 GEOLOGICAL MODELS

No 3D geological model has previously existed for the Project. The only available geological information was

derived from the drillhole information that was captured by Minxcon staff from historical logs and assay

sheets. The available historical sections and plans were scanned into digital format and used as a reference

for the geological modelling. The Figure 14 shows an example of the sections plan used to inform the 3D

geological modelling.

Figure 14: Typical Hand Drawn Geological Section - Section 240 Looking West

Typical Hand Drawn Geological Section - Section 240 Looking West January 2018

All interpreted lithologies were digitised and captured in 3D space once the sections were georeferenced in

GIS. Figure 15 shows all the sections and plans as displayed in georeferenced space.

SAMREC 2.1 (iii)(iv)(vii) SAMREC 3.3 (iv) SAMREC 4.1 (i)(ii)(iii)(v)(vi)




Figure 15: Geological Sections and Plans Referenced into 3D Space

Geological Sections and Plans Referenced into 3D Space January 2018

The drillholes were included and were used as a reference to the sections to ensure the referencing of the

sections were correct (Figure 16). It should be noted that not all the drillholes that appear on the section

have geological logs that could be captured into digital format. Where the drillholes appear on the sections

these were used to guide the geological interpretation of the orebody.




Figure 16: Section with Geological Drillholes Comparison

Section with Geological Drillholes Comparison January 2018

From the plans and sections, it is apparent that the mineralised zone occurs in the gneiss and is terminated

on the amphibolites. The decision was therefore made to model the amphibolite layers to constrict the

mineralised zone. Further lithologies that cut-off or removed the mineralised zone were the pegmatites and

the thrust faulting. Figure 17 is the geological model of the pegmatites and the amphibolite created in

Datamine software.




Figure 17: Geological Model of the Amphibolites and Pegmatites

Geological Model of the Amphibolites and Pegmatites January 2018




6 EXPLORATION DATA / INFORMATION

Note that the imperial units have been converted to metric units.

6.1 SATELLITE / AERIAL PHOTO INTERPRETATION

6.1.1 Regional Photo-geological Study of an Area between Kenhardt and Kakamas

Between January 1973 and June 1973, R.F. Loxton Hunting was commissioned by Phelps Dodge to undertake

photo-geological mapping 7,500 km2 comprising a rectangular area of 80 km wide and 90 km long and

encompassing the towns Kenhardt, Kakamas, Kiemoes and Louisvale.

To facilitate the study, Aircraft Operating Company was also commissioned by Phelps Dodge to undertake the

flying of colour air photographs at a scale of 1:20,000 and to prepare mosaics from black and white contact

prints.

The study was done in order to prepare photo-geological maps and to relate the known geology and

mineralisation on the project area to the regional geological settings. This was done by analysis and

annotation of the air photographs, compilation of the interpreted data onto the mosaics and adequate

checking of the geology in the field.

This survey was undertaken in order to delineate the supracrustal rocks (schist belt or Kheiss system) over

the basement. The mapped structural elements include foliation, jointing and folding. The lithological

subdivisions of the supracrustal rocks include the following:-

• amphibolite quartzite facies:-

o lower schists;

o middle schist; and

o upper schists.

• pink gneiss facies; and

• quartzite facies.

The recommendations following this study suggested that the volcano-sedimentary marine associations of the

middle schists (arkoses and marbles) of the amphibolite quartzite facies should be mapped in detail and

examined geochemically.

6.2 GEOPHYSICS

6.2.1 Regional Aeromagnetic Survey

In July 1973, Loxton Hunting and Associates was awarded a contract, and subsequent to that approximately

11,000 line kilometres were flown over an area of about 4,662 km2 with a Gulf fluxgate total fields

magnetometer. Four channel gamma ray spectrometer coverage was obtained concurrently with the

aeromagnetic data. The height of the magnetic sensor was approximately 76.2 m above the ground.

Favourable aeromagnetic anomalies as presented to Phelps Dodge by Loxton Hunting and Associates were

field checked with a portable scintillometer and were interpreted as resulting from lithological changes rather

than from significant amounts of uranium. Aeromagnetic contour maps were produced on a scale of 1:25,000

and 1:50,000.

SAMREC 3.1 (i)(iii)(iv)(v) (vi)(vii) SAMREC 4.1 (iv) SAMVAL T1.8




6.2.2 Induced Polarization and Ground Magnetic Surveys at Rozynenbosch Central

Reconnaissance 100 m dipole-dipole induced polarization lines were run over the central portion of

Rozynenbosch early in 1973 to attempt to trace the possible extension of the orebody to the east. The results

of these induced polarization lines were disappointing in comparison with drilling results.

As the drilling programme progressed and the mineralisation zone became better defined, a small detailed

induced polarization survey utilizing 50 m dipoles was initiated in an attempt to trace the orebody and to

correlate the induced polarization data with known mineralisation. Preliminary information shows that the

detailed induced polarization survey has been successful in delineating the plunging orebody to the northeast

within the limits of the depth penetration of the dipole spacing used. A new anomaly was detected by the

detailed survey which correlates with a small fold closure near grid coordinates 720 W, 1640 N. Evaluation of

the induced polarization data was not completed because of electronic computer calculation delays.

Examination of the aeromagnetic coverage at Rozynenbosch Central revealed a magnetically flat area relative

to the northern and southern portions of the farm.

6.2.3 Induced Polarization and Ground Magnetic Surveys at Rozynenbosch South

Extension to the south of the original 100 m dipole-dipole induced polarization survey at Rozynenbosch Central

found a significant anomalous zone which is called Rozynenbosch South. Subsequent ground magnetic and

detailed induced polarization surveys (50 m dipoles) were performed in this area to aid in the location of drill

sites. A noteworthy 500 gamma aeromagnetic anomaly occurs at Rozynenbosch South. This anomaly is part of

the same aeromagnetic ridge which extends to the 500 gamma Rozynenbosch North anomaly. Ground

magnetic anomalies of approximately 5,000 gamma occur at two locations where some of the best induced

polarization results have been obtained. Excellent geophysical and geological correlation exists at

Rozynenbosch South.

6.2.4 Induced Polarization and Ground Magnetic Surveys at Rozynenbosch North

A 500 gamma aeromagnetic anomaly occurs at this area. Seven ground magnetic anomalies occur within the

geochemical grid which exceed 2,500 gamma each. The largest amplitude of the seven selected anomalies is

9,340 gamma, while the smallest amplitude is 2,810 gamma. The anomalies appear to be small in area and

of possible isolated sources. Additional ground magnetic work is required to enhance the magnetic

interpretation and to field locate the source of the aeromagnetic anomaly. Two induced polarization lines

were run over the grid which were anomalous. Additional geophysical work was required during 1974 to

complete the evaluation of this portion of the farm.

6.2.5 Transient Electromagnetic Survey (1985)

In September 1985, a transient electromagnetic survey was conducted on the project area. The objective

of the survey was:-

• to detect and map possible conductors in the survey area;

• where possible, to determine as many parameters of such conductors as possible; and

• to recommend drillhole locations for the final conductor identification and evaluation.

A total of seven grids were surveyed on the farm Rozynenbosch and for each of this grid, a 400 m x 400 m

transmitter loop was used carrying 30 hertz step function current with a peak amplitude of between 15 amp

and 17 amp. A 50 m station spacing and 200 m line spacing were utilised throughout.




Two set of measurements were done at every station, i.e. the electromagnetic field induced by the time

derivative of the vertical magnetic field component and that induced by the field component parallel to the

survey line. The measurements were made using a Geonics EM37 transient system.

A set of measurements consisted of values of the induced electromagnetic field at each of 20 channels or

time-gates. The data was entered on a line by line basis on HP9816 micro-computer and field plots were

generated. These were used for quality control as well as preliminary interpretation and given to the local

representative of GFSA on a weekly basis. Final plots with selected decays were generated from the field

data.

The anomalies occurred on grid 7 and only line 0 E, centred at 150 N.

6.3 MAPPING

6.3.1 Detailed Mapping on Rozynenbosch Central

In 1973, mapping in detail to a scale of 1:1,000 was recommenced and completed on the enlarged grid, adding

to the previously completed map for December 1972.

The grid, covering the gossanous outcrop and vicinity, now measures 1,280 m x 760 m and has surveyed

beacons at 80 m intervals. Subsequent grid positions at 40 m intervals were captured with an alidade and

plane table. The grid has also been covered by aerial photographs at 1:3,400 scale from which an orthophoto

at a scale of 1:1,000 has been prepared. Mapping was done graphically and with tapes, each block mapped

individually measured 80 m x 40 m. Very little plane table mapping was done on the western area where the

gradient was too steep and precipitous for tape work.

Mapped areas were re-plotted from the field sheets onto the working transparency directly and a colour code

(Derwent colour pencils) used to differentiate the various rock types. All fabric measurements were plotted

according to magnetic north. No geological interpretation was plotted on the 1:1,000 map produced and areas

covered with scree and sand have been left blank.

In most of the area mapped, outcrops were found of the highly metamorphosed meta-sediments found in the

schist belts of the region. The gossanous and ore horizon being a highly feldspathic meta-arkose carrying

chiefly galena and zinc in the mineralised zones, minor copper and silver is also found in the ore horizon.

Another non-mineralised meta-arkose was also identified, a much harder and sometimes quartzitic rock. A

very significant and easily recognisable marker horizon, namely the amphibolite/dolomite band proved most

useful in distinguishing and separating (visually) the two meta-arkoses. Only in the extreme west and

southwest was the characteristic pink basement gneiss recorded.

6.3.2 Detail Mapping on Rozynenbosch South

Mapping of the Rozynenbosch South on a scale of 1:1,000 was started during August 1973 and completed

during November 1973. Portion of the original grid was also extended eastwards across the main

Kakamas/Kenhardt road to follow up the conspicuous soil geochemical anomaly.

The stratigraphic column adopted was similar to that for Rozynenbosch Central with the essential difference

that the grey mineralised meta-arkoses is not present, intermittent magnetite quartzite or meta-quartzite

being the probable equivalent. Fold styles recognised are similar to those on Rozynenbosch Central, although

the F2 folds are not of the same magnitude. A feature of the area was the appreciable shearing of the

supracrustal rocks.




6.4 STRUCTURAL STUDIES

The Competent Person is not aware of any structural studies conducted on the Project Area.

6.5 DRILLING PROGRAMMES

6.5.1 Type of Drilling

Drilling on the Rozynenbosch Project was conducted in two phases. Phase 1 drilling programme was

conducted by Phelps Dodge in 1973. A total of 60 diamond drillholes totalling 13,309 m were drilled during

this phase. All drillholes were drilled using BX core barrel (approximately 42 mm core diameter) but no

information is available pertaining to the drilling company.

Phase 2 drilling programme was conducted by GFSA and Phelps Dodge joint venture between 1984 and 1985.

A total of eight diamond drillholes totalling 2,083 m were drilled during this phase. All drillholes were drilled

using BQ size core barrel (36.5 mm core diameter), and the drilling was carried out by GFSA owned drilling

company. Details pertaining to the drill core orientation is not available.

It is the Competent Person’s opinion that there should be very little bias with respect to the drilling

technique and sampling utilised.

Acknowledgement is hereby made for the historical exploration done Phelps Dodge and GFSA between 1973

and 1985.

The coordinate system used for diamond drillholes is na/-e3 (unknown to the Competent Person, however, it

is assumed to be a historical local coordinate system). The historical local coordinates were projected in GIS

to Hartebeeshoek 94/WG21. The distribution of drillhole collars is shown in Figure 18. The detailed summaries

of drillhole easting, northing and elevation of the drillhole collars, as well the dip and azimuth of the holes

and final drillhole depth are listed in Appendix 4.

SAMREC 3.1 (viii)

SAMREC 3.2 (i)




Figure 18: Phase 1 and 2 Drillhole Collars

Phase 1 and 2 Drillhole Collars January 2018

Significant mineralised drillhole intercepts (>1% Pb) are presented in Table 8 below. It should be noted that

the significant drillhole intercepts represent core length results and are not corrected widths.

Table 8: Significant Drill Intercepts > 1% Pb

BHID From To Width Pb Zn Ag

m m m % % ppm

RB2 21.64 33.00 11.36 7.89 4.55 103.09

RB5 23.00 46.00 23.00 4.02 - -

RB6 8.45 14.00 5.55 2.53 0.01 -

RB6 21.00 26.00 5.00 2.06 0.01 -

RB7 36.00 49.00 13.00 2.07 0.47 -

RB8 30.50 40.00 9.50 1.98 0.16 -

RB9 0.00 7.00 7.00 5.57 0.03 -

RB9 24.00 29.00 5.00 2.11 2.10 -

RB9 45.00 58.00 13.00 1.98 0.01 -

RB10 22.00 36.32 14.32 1.16 1.65 -

RB12 32.30 57.50 25.20 6.78 0.64 -

RB23 68.36 94.00 25.64 2.22 0.01 -

RB23 130.00 138.00 8.00 1.16 2.02 -

RB25 60.55 65.00 4.45 4.19 0.01 -

RB25 65.50 78.31 12.81 4.84 0.11 -

RB25 113.11 121.75 8.64 4.22 0.48 -

RB28 25.47 58.10 32.63 1.08 0.65 -

RB31 6.00 11.00 5.00 1.17 1.86 -

RB35 107.00 119.50 12.50 1.46 0.24 -

RB37 103.87 113.50 9.63 2.36 2.08 -

RB37 161.00 174.00 13.00 2.30 0.36 -

RB43 21.00 60.50 39.50 3.50 0.04 50.33 Note: Measured as downhole length, true widths have not been measured or calculated.




6.5.2 Logging

All drillholes drilled by Phelps Dodge and GFSA were logged by geoscientists with relevant qualifications. All

drillholes including relevant intersections were geologically logged to a level of detail to support appropriate

Mineral Resource estimation.

Drill core logging was both qualitative and quantitative in nature. The Competent Person is not aware if all

drillholes were photographed during logging.

In 1985, five drillholes - namely RB61, RB62, RB64, RB66, and RB67 - were re-logged by C.V. Pearson and the

procedure adopted for re-logging was as follows:-

• Rotating the core from the start of the BX core to the end of the drillhole, maintaining (as closely as

possible) the same orientation. By this method it was hoped to determine the meso- and macro- fold

structures which may otherwise have been missed, unless recognised by means of correlating similar

lithologies.

• Foliation measurements were taken at regular intervals along the core (between two and six

measurements per metre depending upon structural and/or lithological complexity). True foliation

attitude was measured, though the apparent foliation was often also recorded.

6.5.3 Downhole Surveys

No downhole surveys were carried out by Phelps Dodge during phase 1 drilling programme. During phase 2

drilling programme, downhole survey was carried out on all drillholes drilled by GFSA and on those drilled

by Phelps Dodge during phase 1 drilling programme however, downhole survey results are not available. The

downhole instrument utilised was Sperry-Sun.

Some of the deeper drillholes have been found to register deflections of up to 80 m southward off vertical

and the lateral (east/west) deflections was minimal.

6.6 GEOLOGICAL DATA

Refer to Sections 6.5.1, 6.5.2, 6.7.1.4 and 6.7.1.1.

6.7 SAMPLING

6.7.1 Sample Method, Collection, Capture and Storage

6.7.1.1 Nature and Quality of Sampling

6.7.1.1.1 Lithogeochemistry

A total of 10 ore samples of core taken from RB5 drillhole were examined mineralogically by the Lakefield

Research of Canada Limited. Eighteen specimens of rock types around Rozynenbosch Central, were

microscopically and geochemically examined by S. Williams of the Phelps Dodge Western Exploration Office,

and one specimen was examined microscopically by J.E.E. Jacobsen of the Witwatersrand University.

6.7.1.1.1.1 Ore

The metamorphic grade was found to be mezozonal (amphibolite grade). The sulphide assemblage and the

presence of fluorite suggest that this rock is of volcanic origin as opposed to the overlying meta-arkoses (pink

gneiss). The ore zone has a limited distribution or surface, has developed a typical pink-orange leaching

capping appearance, is very friable and gives anomalous rock chip geochemical values. Rounded pebble-sized

concretions, typically developed in the weathered capping, are thought to be areas of “superior cohesion”

formed during metamorphism. In fresh core, the rock is distinctly lighter in colour, probably due to the higher

SAMREC 3.3 (i)(ii)(iii)(iv)(v)(vi)(vii)

SAMREC 3.2 (ii)(iii)

SAMREC 3.2 (v)




quartz content, and microcline is porphyroblastic and contrasts strongly to the meta-arkoses. Aside from the

feldspar and occasional garnet porphyroblasts, the ore zone minerals are equigranular and medium to fine

grained. Jacobsen suggested the excessive potash-rich nature of the rock is more compatible with an acid

volcanic than an arkosic sediment.

The sulphides consist mainly of galena (0.01% to 17.0% Pb averaging 2.4% Pb), sphalerite (0.01% to 9.0% Zn,

averaging 0.6% Zn), silver (0-470 g/t Ag, averaging 60 g/t), chalcopyrite (usually less than 0.1% Cu) and pyrite.

The average grain size of 70% of the galena was found to be 20 microns to 25 microns ranging from a maximum

of 340 microns to less than five microns. Approximately 95% of the galena was associated with the non-opaque

minerals such as:-

• interstitial grains and crystals;

• fracture fillings; and

• inclusions in grains of gangue.

The remaining galena was present as inclusions in pyrite and sphalerite, usually less than 10 microns in size.

The average grain size of 70% of the sphalerite was found to be 20 microns to 40 microns, ranging from a

maximum of 400 microns to less than 10 microns. More than 95% of the sphalerite occurred with gangue

minerals in association similar to those listed for galena. Many grains of sphalerite contained fine grained

exsolved chalcopyrite.

More than 90% of the chalcopyrite was present as fine grained exsolutions within sphalerite. The remaining

chalcopyrite occurred with gangue minerals as fracture fillings and interstitial grains. Silver was found both

as minute particles in the galena and also as discrete grains between galena and quartz.

Lakefield Research concluded that the average grain size of the galena and sphalerite indicated that a fine

grind may be required to achieve a satisfactory liberation of these minerals and that cyanidation may be

required for the recovery of the silver.

6.7.1.1.1.2 Garnet Tactite (GNES)

Light orange to brown coloured garnet-rich calcareous arkose, often highly mineralised in lead and zinc,

usually containing abundant epidote and with minor amounts of hornblende, quartz and calcite. The rock is

typically developed on the contact of the ore zone and dolomite.

6.7.1.1.1.3 Calc-silicate (CASI)

A dark grey to black (occasionally light coloured, especially on fresh surface) weathering rock, coarse grained

and usually developed in close proximity to the dolomite-market horizon. The main rock forming minerals are

hornblende, garnet, pyroxene and carbonate, with minor biotite and quartz.

6.7.1.1.1.4 Amphibolite (DIAB)

A black rock with light grey specks, medium grained and occasionally well laminated, showing a well-

developed foliation, lineation (and especially well-developed rodding in the F2 hinge zones), and consisting

essentially of plagioclase and hornblende with minor amounts of quartz, biotite, magnetite and sericite

(retrograde after plagioclase). S. Williams (Phelps Dodge, USA) was of the opinion that the composition is

compatible with material derived from basic volcanic debris.




6.7.1.1.1.5 Meta-arkose (SASN & ARKS)

Two essentially similar meta-arkoses, separated stratigraphically by dolomite and amphibolite. The ARKS

meta-arkose is distinctly darker coloured (more iron staining) than the pink weathering SASN meta-arkose,

which overlies the ore body and is probably the equivalent of the so-called “pink gneiss” which is very

prevalent further to the east. The ARKS meta-arkose is thought to be the equivalent of the biotite gneiss

immediately above the basement gneiss contact on the western side of the Rozynenbosch schist belt. The

rocks contain quartz, microcline, and mica with minor amounts of epidote, garnet and magnetite with

accessory amounts of sphene, zircon, apatite and pyrite.

6.7.1.1.2 Regional Geochemical Stream Sediments and Soil Sampling

A total of 38 farms in the Kenhardt/Kakamas area were sampled by geochemical stream sediment sampling

techniques. Over 15 of these farms which displayed negative geochemical responses and geologically of little

promise, were allowed to lapse during 1973. Of these, the most noteworthy concentration of barely

anomalous Ni, Zn and Cu values occur on the farms De Tuin Zuid and Klein Swart Bast. It is thought that these

anomalies are associated with known dolerite intrusives in Karroo sediments that begin outcropping near the

southern boundaries of these farms.

Stream sediment had proved to be a powerful tool in this area and certainly indicated the mineralised

outcrops on Rozynenbosch. The Cu, Pb, Zn dilution trains were surprisingly short and easily obliterated when

entering larger drainage channels. Samples taken within metres of leached capping gave values of ±600 ppm

Pb and ±250 ppm Zn, where threshold values were calculated to be 40 ppm for Pb and 53 ppm for Zn.

Follow-up soil geochemistry on close spaced grids on the five farms, Rozynenbosch, Koegab, Ganzeniaond,

Witvlei and Dreyers Puts – Marys Rust, had provided several substantial anomalous areas.

The close space follow-up soil sampling grids on the farm Rozynenbosch, Koegab, Ganzeninond, Dreyers Puts

and Marys Rust and Witvlei had provided several interesting targets. The statistical treatment of the data

shows that the threshold values obtained for soil sampling geochemistry between Kenhardt and Kakamas were

almost twice those obtained in the Rok Optel and Putsonderwater region. The values in the Klein Brpaal,

Brulkolk area are similar to those of Kenhardt/Kakamas.

6.7.1.1.3 Geochemical Rock Chip Sampling at Rozynenbosch Central

Geochemical rock chip sampling was performed by Loxton Hunting and Associates and also Phelps Dodge

personnel. The purpose of the exercise was to ascertain the distribution of mineralisation in areas where

mainly solid (rock) outcrop is encountered, rendering geochemistry of soil samples less effective. A sum total

to 1,276 samples were taken on Rozynenbosch Central.

6.7.1.1.4 Geochemical Rock Chip Sampling at Rozynenbosch South

Almost the entire Rozynenbosch South area was rock chip sampled on a 20 m square grid. To summarize,

copper shows sporadic anomalous values with erratic highs over much of the grid and does not appear to be

restricted to any particular rock type. Well defined zinc and lead anomalies, showing good coincidence, are

confined essentially to the southeast portion of the area and continue across the Kakamas/Kenhardt road.

They are confined to the amphibolite-dolomite-calc-silicate suite, show reasonable strike extension and

provided significant drilling targets.

6.7.1.1.5 Geochemical Rock Chip Sampling at Rozynenbosch North

Rock chip samples were taken on an 80 m grid at 20 m intervals. Approximately 20 chips samples were taken

in a 2 m radius at each sample station. Where no rock outcrop was available, soil samples were taken instead




and clearly labelled “s”. A total of 4,416 samples were collected on Rozynenbosch North and Rozynenbosch

South.

6.7.1.1.6 Diamond Drillholes

Limited data pertaining to the nature quality of sampling is available.

A total of 68 diamond drillholes were drilled between 1973 and 1985 by two reputable companies. All drillholes

were logged in detail and sampled. Sample recoveries were properly recorded on sampling sheet noting the

“from” and “to” depth and metres recovered and then expressed as percentage. Drillhole core was halved by

means of diamond cutting saw. One half split core was dispatched to the McLachlan & Lazar Laboratory for

analysis and the remainder was stored on six-inch corrugated iron sheet.

The Competent Person is of the opinion that the nature and quality of samples generated is acceptable.

6.7.1.2 Sampling Process

6.7.1.2.1 Geochemical Rock Chip Sampling

Rock chips samples were collected over a circular area with 2 m radius at 20 m intervals, on a pre-surveyed

grid. The mass of a sample was approximately 200 g. Assaying was done on pulverized material by A.A. reading

on an aqueous solution or by solvent extraction completed by McLachlan & Lazar, Analytical Services and

Aggeneys Laboratory.

The rock chip sampling on Rozynenbosch Central has very effectively delineated the orebody and also shows

other areas of potential mineralisation. It can be safely stated that this is a profitable and speedy tool in

mineral exploration and identification.

6.7.1.2.2 Regional Soil Sampling

A regional soil sampling program was performed by Loxton Hunting and Associates which included

Rozynenbosch farm. A standard type of soil sampling was carried out according to a surveyed grid whereby

±200 g of material was collected, sieved, packaged, numbered according to the grid coordinates, labelled

and submitted for assay

Assaying was done by McLachlan & Lazar using the A.A. and colourimetric methods. The results were plotted

on plan which indicated a major anomaly on Rozynenbosch Central and smaller anomaly to the north.

6.7.1.2.3 Diamond Drillholes

Limited data pertaining to the diamond drillhole sampling process is available.

All drillholes drilled were diamond drillholes and the drill core was split in halve by means of two diamond

cutting saw. One of the diamond cutting saw was driven by electric motor and the other one by a diesel

engine. One half split core was dispatched to the McLachlan & Lazar Laboratory for analysis and the remainder

was stored on six-inch corrugated iron sheet.

In 1985, five drillholes - namely RB61, RB62, RB64, RB66, and RB67 - were re-logged and re-assayed by one

C.V. Pearson. The halved drill core was quartered, however, the data with respect to how the core was

quartered is unavailable.

6.7.1.3 Data Sets

Refer to sections 6.7.1.1 and 6.7.1.2.




6.7.1.4 Geometry of Mineralisation

The drillhole intercepts are downhole length. However, the geometry of the stratigraphy and mineralised

zone is evident from the plotted sections and the true width can be obtained either graphically or by

calculation. Significant drill intercepts >1% Pb are presented in Table 8. The later downhole surveys completed

by GFSA indicated that some of the deeper drillholes have been found to register deflections of up to 80 m

southward of vertical and the lateral (east/west) deflections was minimal. The geometry of the mineralisation

is also considered in the geological modelling (see Section 5.4) and estimation process (see Section 7).

6.7.1.5 Retention Policy and Storage of Physical Samples

Owing to the historical nature of the data, data pertaining to the retention policy and storage of physical

samples were not available. However, it was stated in the monthly report that the halve split core was sent

to McLachlan & Lazar in Johannesburg for analysis and the remainder stored on six-inch corrugated iron

sheets.

6.7.1.6 Recording of Sample Recoveries and Results

Sample recoveries were properly recorded on sampling sheet noting the “from” and “to” depth and metres

recovered and then expressed as percentage. The sample recoveries were maximised through the drilling

techniques.

The relationship between sample recoveries and grade was not assessed.

6.7.1.7 Splitting of Samples

All drillholes drilled were diamond drillholes and the drill core was split in halve by means of two diamond

cutting saw. One of the diamond cutting saws was driven by electric motor and the other one by a diesel

engine. One half split core was dispatched to the McLachlan & Lazar Laboratory for analysis and the remainder

was stored on six-inch corrugated iron sheet.

In 1985, five drillholes namely RB61, RB62, RB64, RB66, and RB67 were re-logged and re-assayed by one C.V.

Pearson. The halve drill core was quartered however the data with respect to how the core was quartered is

unavailable.

6.7.2 Sample Preparation and Analysis

6.7.2.1 Laboratory Location and Accreditation

Samples were dispatched to McLachlan & Lazar located in Johannesburg, Analytical Services, Aggeneys

Laboratory located in Springbok (Northern Cape), Lakefield Research located in Canada and Phelps Dodge

Western Office located in USA. The accreditation of the laboratories at the time of drilling and sampling is

unknown.

6.7.2.2 Analytical Method

All the diamond drillhole samples dispatched to the laboratory were analysed for copper, zinc, lead and silver,

however data pertaining the analytical method utilised at the laboratory is unavailable.

6.7.2.3 Sample Preparation Technique

Owing to the historical nature of the data in question, data pertaining to the sample preparation techniques

are not available. Although there was no data available, the Competent Person is of the opinion that sample

preparation techniques may have been done to industry best practice as the companies were reputable mining

and exploration companies.

SAMREC 3.4 (ii)

SAMREC 3.4 (iii)

SAMREC 3.4 (i)




6.7.3 Sampling Governance

6.7.3.1 Sampling Campaign and Process

Limited data pertaining to the sampling campaign and process is available.

All drillholes that were drilled during phase 1 were drilled using BX core barrel (approximately 42 mm core

diameter) whereas phase 2 was completed using BQ size core barrel (36.5 mm core diameter). Samples

recoveries were properly recorded on the sampling sheet noting the “from” and “to” depth and metres

recovered and then expressed as percentage. All drillholes drilled were diamond drillholes and the drill core

was split in halve by means of two diamond cutting saw. One half-split core was dispatched to the McLachlan

& Lazar Laboratory for analysis and the remainder was stored on six-inch corrugated iron sheet.

Details pertaining to the internal and external quality control and quality assurance (“QAQC”) are not

available. However, it is assumed standard industry practice were applied as the geological logging and

sampling was conducted by Phelps Dodge and later by Goldfields which were both major mining and

exploration companies at the time. These companies, as standard practice, had standard operating

procedures in place to maintain quality, as the majors do these days too. The basic sampling and logging

procedures would not have changed much since then. What would have changed is that there is more focus

on the QAQC samples introduced into the sampling stream such as CRMs, blanks and standards. Also, based

on the quality of the historical geological data it is evident that there was a focus on geology and that the

standard was of a high quality. It is for these reasons that the CP deems the data to be of sufficient quality,

albeit incomplete, to use in an inferred Mineral Resource.

6.7.3.2 Sample Security and Chain of Custody

Details pertaining to the sample security and the chain of custody are not readily available. It is assumed

standard industry practice was applied as drilling was conducted by two reputable companies.

6.7.3.3 Validation Procedures

Details pertaining to the historical validation procedures are not available.

Minxcon was provided with geological reports, geological map and cross section and drillhole data such

lithological logs and assay data in a pdf format. Minxcon staff then captured all lithological logs and assay

data into Microsoft Excel™ as well as digitising scanned geological section in ArcView™ GIS software. The data

was cross checked and validated in Datamine Studio EM™ software as far as possible with the data that was

available.

6.7.3.4 Audit and Risks

No records are available pertaining to the audit and risk processes. All exploration activities were conducted

by two major reputable companies, it is likely that audits may have been conducted.

6.7.4 Quality Control and Assurance Procedures

Details pertaining to the QAQC procedures utilised are not available. It is assumed standard industry practice

were applied during sampling and at the respective laboratories used. QAQC processes at the time of the

exploration programme were not necessarily a requirement and not as stringent as they are today.

Downhole surveys were carried out on all drillholes. The downhole instrument utilised was Sperry-Sun. Some

of the deeper drillholes have been found to register deflections of up to 80 m southward of vertical and the

lateral (east/west) deflections was minimal.

SAMREC 3.5 (i)

SAMREC 3.5 (ii)

SAMREC 3.5 (iii)

SAMREC 3.5 (iv)

SAMREC 3.6 (i)




6.7.5 Bulk Density

It was reported in the CPR compiled by R.J. Mossom, 2006 (Merlin Resources) that an average density of 2.85

t/m3 was determined at the laboratory for the ore rock type on drillhole core samples, however no supporting

documents were available. The Competent Person did however have density readings for eight samples in

drillhole RB25. This data had an average density of 2.84 t/m3.

6.7.5.1 Method of Bulk Density Determination

Details pertaining to the method of bulk density determination are not available.

6.7.5.2 Representivity

More density work might have been completed at the time of the exploration programme but is not available

anymore. The value of 2.85 t/m3 that is being utilised does seem reasonable as it is similar to other copper

and lead projects.

6.7.5.3 Adequacy of Bulk Density Determination Methods

Details pertaining to the method of bulk density determination is not available. The Competent Person has

however completed studies on similar copper and lead deposits and the bulk densities are similar, ranging

from 2.78 t/m3 to 4.21 t/m3. More work is however required going forward.

6.7.6 Bulk-sampling and/or Trial-mining

The Competent Person is not aware of any bulk-sampling and/or trial-mining conducted on Rozynenbosch

Project Area. Hence, the following sections are not applicable.

6.7.6.1 Sample Location and Description

Not applicable.

6.7.6.2 Mining Method and Treatment

Not applicable.

6.7.6.3 Sample Representivity

Not applicable.

6.8 DATABASE MANAGEMENT

Although valuable information on the Rozynenbosch Project was obtained from the early 1970s, the data

was not captured in a digital format. Minxcon was provided with geological reports, geological map and

cross section as well as drillhole data such lithological logs and assay data in a pdf format. Minxcon staff has

subsequently captured all available lithological logs and assay data into Microsoft Excel™ as well as digitising

scanned geological section in ArcView™ software. The data was cross checked and validated in Datamine

Studio EM™ software as far as possible.

6.9 SPATIAL DATA

Sampling grids, mapping grids and drillhole collars were surveyed in by theodolite producing both coordinates

and elevations by dedicated survey personnel.

In the case of diamond drillholes, a square grid was surveyed in by means of a theodolite with a base line

bearing of 111° True along which drillholes were sited according to target area outlined by the rock chip

SAMREC 3.1 (ii)

SAMREC 3.8 (i)(ii)(iii)(iv)

SAMREC 3.7 (i)(ii)

SAMREC 3.7 (iii)

SAMREC 3.7 (iv)

SAMREC 3.7




sampling survey combined with geophysical surveys (magnetometer and induced polarization), however data

pertaining to the drillhole collar surveys is not available.

Drillhole collar positions were therefore digitised from plans and cross sections, showing the location of the

drillholes at Rozynenbosch Central. The drillholes were drilled along the section lines and on odd occasion,

between the two section lines. The section lines were planned 120 m apart. The average grid was

approximately 120 m x 40 m. It is the Competent Person’s opinion that data density and distribution is

adequate for the purpose of conducting meaningful Mineral Resource estimation.

6.10 DATA VERIFICATION, AUDITS AND REVIEWS

GFSA conducted the verification of the exploration results conducted by Phelps Dodge at the commencement

of the JV agreement between the two parties.

As part of data verification and audits, five drillholes (RB61, RB62, RB64, RB66, and RB67) were re-logged

and re-sampled by C.V. Pearson in 1985, however these results are not available.

No record of twinned drillholes and no deflections were drilled on the property.

6.10.1 Laboratory Audit/Review

Details pertaining to laboratory audits/reviews are not available.

6.11 EXPLORATION EXPENDITURE

6.11.1 Exploration Expenditure Incurred to Date

Limited data pertaining to the exploration expenditure incurred to date is available. It was reported that

approximately USD2 million had already been spent on the project and it must be noted that the amount

excludes geochemical assay, geophysics, and travel and accommodation.

This figure could not be verified and the Competent Person has estimated the replacement costs of the

drillhole metres drilled and exploration normally associated with such a project to be ZAR26.38 million. These

costs described in Section 8.12.5.1.5 and shown in Table 34.

6.11.2 Planned Exploration Expenditure

It is uncertain what exploration budget is available but the Competent Person has compiled a drilling

programme for what is required to upgrade the Mineral Resource that has been estimated by Minxcon and

signed off by the Competent Person. As a minimum 2,200 m of diamond core drilling will be required as a

twinning exercise and an additional 1,700 m of diamond core drilling will be required to improve the

confidence of the exploration target and potentially upgrade it to an Inferred Mineral Resource. The detail

for this drilling is discussed in Section 0.

JSE 12.9 (e)




7 MINERAL RESOURCE ESTIMATES

7.1 MINERAL RESOURCE ESTIMATION AND MODELLING TECHNIQUE

7.1.1 Geological Drillholes and Statistics

A total of 68 drillholes were captured from historical information, no QAQC was available and, where possible,

grade values were captured. A further analysis of the section shows grade values at a cut-off of USD4 and

USD8 (PB4 and PB8 below) in the 1970s; these are stretch values and have been captured as a single point for

analysis. A total of 19 drillholes had raw assay sampling and of these 13 had both raw and stretch values. Of

the total of 31 drillholes with stretch values, a total of 18 were exclusively stretch values. Table 9 provides

a summary of the classical statistics from the drillholes. PB, ZN and AGPPM are the individual Pb, Zn and Ag

sample data points dataset whereas the fields with the suffix of “4” are the stretch values at a USD4 cut-off

and with a suffix of “8” are the stretch values at a cut-off of USD8.

Table 9: Classical Statistics of the Drillhole Database

FIELD Total No. Samples Missing Min Max Mean Variance Std Deviation Geo Mean

PB 501 392 109 0.5 17.3 3.04 10.39 3.22 1.30

ZN 501 360 141 0.5 12.96 0.83 2.84 1.69 0.12

AGPPM 501 67 434 0.5 240 67.83 3450.36 58.74 37.73

PB4 501 323 178 0.01 25.7 5.55 44.64 6.68 3.31

ZN4 501 323 178 0.5 6.89 1.43 5.62 2.37 0.28

AGPPM4 501 323 178 0.64 234 43.95 1111.14 33.33 26.66

PB8 501 201 300 0.41 17 6.07 17.44 4.18 4.80

ZN8 501 201 300 0.5 8.38 1.98 9.26 3.04 0.42

AGPPM8 501 201 300 0.01 394 60.90 2984.71 54.63 31.16

LENGTH 501 501 0 0.01 38.44 1.40 5.50 2.35 0.90

Capping of the zinc values was set at 10.4% as this is the only significant outlier identified in the data analysis;

the lead values were not capped as no significant outliers were identified. The drillholes have been

composited to 1 m. Limited number of density samples were available from the historic drilling as only

drillhole RB25 had eight density readings, and the average density was determined to be 2.84 t/m3. This is in

line with the 2.85 t/m3 that was used historically.

Figure 19 shows the log probability plot with no significant outliers with regards the lead and the zinc log

probability plot (Figure 20) shows non-trend high values after 10.4% in the probability plots.

SAMREC 4.2 (i)(ii)(iii)(iv)(v) SAMREC 4.5 (i)




Figure 19: Pb Log Probability Plot of the Raw Assays

Figure 20: Zn Log Probability Plot of the Raw Assays

Capping of the Pb4 values was necessary and was set as 20.7%. Figure 21 shows the log probability of the lead

values based on a cut-off of USD4 (1974).




Figure 21: Pb4 Capping at 20.7%

The composited database was used to create direction variograms and downhole variograms were

investigated. The downhole variogram gives an indication of the correlation of the lead values down the

drillholes and the Figure 22 shows the variogram correlation of approximately 10 m.

Figure 22: Downhole Variogram showing correlation up to 10 m




A set of variograms were created in a 22.5° angle spacing (based on the geological model) to check for

correlation and direction of the lead values. The experimental variogram below shows a long-range correlation

in the 45° of 161.9 m with a short range in the 135° of 42.7 m (Figure 23). These ranges and directions were

used to inform the grade shell used for the estimation. The directional variograms were not used in the

estimation and only used for the creation of the grade shells.

Figure 23: Directional Variogram showing a Long and Short Range of 161 m and 42 m, Respectively

The omnidirectional variogram has a range of 88 m for the lead and 95 m for the zinc variogram. These

variograms are represented in the following Figure 24 and Figure 25.

Figure 24: Omnidirectional Variogram of the Pb showing a Range of 88 m




Figure 25: Omnidirectional Variogram of the Zn showing a Range of 95 m

The variogram ranges were used for the search ranges of the estimation only.

7.1.2 Block Model Creation

A mineralised halo was created in Datamine software that honours the ranges identified in the variogram

analysis. These ranges give an indication of the extent of the mineralisation along the dip and plunge of the

orebody. A natural cut-off of 0.5% Pb was used to limit the mineralised zone. Figure 26 shows the mineralised

halo created using the variogram ranges and the raw assay values.




Figure 26: Mineralised Halo using a 0.5% Pb shown with the Drillholes used to Inform the Halo


January 2018

A further mineralised halo was created using the PB4 (lead values at a USD4 cut-off, stretch value) to develop

the Exploration Target halo.

The block model was created using the mineralised halos (within the gneiss) and the amphibolite and

pegmatites were removed from the model. Figure 27 shows a cross-section of the base block model where

the pegmatites and amphibolites have been removed. This base model was used to estimate into to ensure

no non-mineralised zones were estimated.




Figure 27: Base Mineralisation Model with the Pegmatites and Amphibolites Removed

Base Mineralisation Model with the Pegmatites and Amphiboles Removed January 2018

The block model is based on a block size of 10 m x 10 m x 1 m. The 1 m block size was used to better define

the grade estimation and to create definition of the estimation. Table 10 shows the block model parameters.

Table 10: Block Model Definition

Block Model Origin Cell Size No. Cells

X direction -880 10 148

Y direction 300 10 200

Z direction 150 1 780

7.1.3 Estimation Technique

The estimation was carried out in two separate areas based on the drillhole assay type and informing

drillholes. Where the drillholes included raw assay and stretch values, these were highlighted and a perimeter

was created around them. The remainder of the holes where only stretch values were available were classed

as a target area and estimated as such. The split in the estimation model is shown in the Figure 28.




Figure 28: Exploration and Inferred Model

Exploration and Inferred Model January 2018

Inverse distance squared (“ID2”) was used in the estimation and two separate runs were conducted. The raw

drillhole assays were used for the estimation of the Inferred Mineral Resource, and an Exploration Target

estimation was carried out on a USD4 cut value based on the lead. The Exploration Target estimation is used

as an indicative estimation of the Exploration Target zone as none of the original assay values are available

for the estimation.

The search ranges for the estimation are based on an omnidirectional variogram range of the lead values and

a minimum of two drillholes were used for the estimation. A minimum of five samples and a maximum of 20

samples were used to inform the estimation.

The omnidirectional variogram with a range of 88 m for the lead and 95 m for the zinc was used in the search

parameters of the estimation.

The silver was not estimated as too few samples are available for the estimation. A good correlation of 94%

between silver and the combined lead-zinc is displayed and a regression of the silver values was done based

on this correlation. The correlation is shown in the Figure 29.




Figure 29: A Correlation Co-efficient of 94% shown with regards Ag and Pb+Zn

The estimated model is shown in the following Figure 30 where the lead value is shown above the cut-off of

1.9% Pb. Both the Exploration Target and the Inferred model are shown.

Figure 30: Pb Estimated Model of the Exploration Target and Inferred at a Cut-off of 1.9% Pb

Pb Estimated Model of the Exploration Target and Inferred at a Cut-off of 1.9% Pb

January 2018




The following Figure 31 shows the zinc estimate of the Exploration Target and inferred estimated models at

a cut-off of 1.9% Pb.

Figure 31: Zn Estimated Model of the Exploration Target and Inferred at a Cut-off of 1.9% Pb

Zn Estimated Model of the Exploration Target and Inferred at a Cut-off of 1.9% Pb

January 2018

Figure 32 shows the regressed silver value based on the combined lead-zinc value, also at a 1.9% Pb cut-off.

Figure 32: Ag Regressed Value Model of the Exploration Target and Inferred at a Cut-off of 1.9% Pb

Ag Regressed Value Model of the Exploration Target and Inferred at a Cut-off of 1.9% Pb

January 2018




7.1.4 Model Verification

The Mineral Resource model was checked with regards 100 m swath plots from east to west and 10 m swath

plots in the vertical. The estimated values of the raw drillhole assay data were visually checked with the ID2

estimate. The swaths are shown in the following figures and represent a reasonable estimate.

Figure 33: Visual Check of the Estimate and the Raw Assay Values

Visual Check of the Estimate and the Raw Assay Values January 2018

The following Figure 34 and Figure 35 show the correlation of the lead values of the model versus the lead

values of the sampling data.

Figure 34: Pb 100 m Swath Plots from West to East




Figure 35: Pb Vertical Swath Plots

Figure 37 and Figure 38 show the zinc estimated values versus the raw values.

Figure 36: Zn 100 m Swath Plots from West to East

232

42

272 273

348

5141

10

0

50

100

150

200

250

300

350

400

0

0.1

0.2

0.3

0.4

0.5

0.6

-750 -650 -550 -450 -350 -250 -150 -50 50 250

Nu

mb

er o

f Sa

mp

les

Zn %

Swath X Co- Ordinate

Zn 100m Swath West To East

No Samples Sample Zn Model Zn




Figure 37: Zn Vertical Swath Plots

The swaths for Pb and Zn were carried out on 100 m west to east swath and 10 m vertical as shown in the

Figure 38 and Figure 39 respectively.

Figure 38: West to East 100 m Swaths (Grade Model is for Pb)

West to East 100 m Swaths (Grade Model is for Pb) January 2018

10 12 1421 20

16

28

47 48

30

12

32

45

57

108

132

153

142149

104

62

27

0

20

40

60

80

100

120

140

160

180

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

485535545555565575585595605615625635645655665675685695705715725735745755765775

Nu

mb

er o

f Sa

mp

les

Zn %

Swath X Co- Ordinate

Zn 10m Vertical Swath

No Samples Sample Zn Model Zn




Figure 39: Vertical 10 m Swaths (Grade Model is for Pb)

Vertical 10 m Swaths (Grade Model is for Pb) January 2018

A final check of the estimation was carried out with regards scatter plot of the estimated values versus the

average value block for block. The correlation between the estimate and the average block value yielded a

correlation of 89% for the lead estimate and a 90% for the zinc. These are shown in the Figure 40 and Figure

41 respectively.




Figure 40: Pb Estimates Value versus Average Pb Value

Figure 41: Zn Estimated Value versus Average Zn Value

7.2 MINERAL RESOURCE CLASSIFICATION CRITERIA

Categorisation of the Mineral Resource could only be classified as Inferred due to the lack of QAQC,

uncertainty of the exact position of the drillholes and the absence of all available raw assay information.

Although the QAQC was not necessary as code compliance when drilled, the reputation of the companies that

SAMREC 4.4 (i)




conducted the drilling has lead the Competent Person to accept that necessary steps were taken to ensure

quality assays. Where only the estimation of the raw samples was done, this was included in the Inferred

classification (Figure 42). Where only stretch cut-off values were used, this was classified as an Exploration

Target.

Figure 42: Mineral Resource Classification

Mineral Resource Classification January 2018

7.3 REASONABLE AND REALISTIC PROSPECTS FOR EVENTUAL ECONOMIC EXTRACTION

The Mineral Resource model, including silver, was tested on an optimisation run in Datamine Maxipit software

to determine an eventual final pit to limit the Mineral Resource with regards an economic depth cut-off. The

optimisation on this pit when included with the Exploration Target model shows that the pit could be

economically extracted to a depth of 140 m below surface. This depth is beyond the depth of the Inferred

Mineral Resource and it was therefore concluded that no depth cut-off for the Inferred Mineral Resource

would be used. The Figure 43 shows the ultimate pit with the Inferred Mineral Resource, including silver, fully

accessible to the depth of the estimation.

In the scenario excluding silver, the pit optimisation only extends to a depth of 100 m and therefore the

Mineral Resource excluding silver has a depth cut-off of 100 m.

SAMREC 4.3 (i)-(ix)




Figure 43: Optimised Pit with Inferred (Including Silver) and Exploration Target Model Optimised - Model Shown at >1% Pb

Optimised Pit with Inferred (Including Silver) and Exploration Target Model Optimised - Model Shown at >1 % Pb

January 2018

The potential capital costs requirement was calculated as follows: The Project is still at early exploration

stage, and hence it is too pre-mature to calculate capital costs with a reasonable degree of confidence. The

Minxcon team instead calculated the maximum capital ability of the project. The maximum capital carrying

ability (calculated as present value of the EBITDA) can be back-calculated by applying assumptions for life of

project and reasonable expected returns. A life of 10 years at a return of 10% was applied yielding a maximum

capital ability of ZAR700 million, at a monthly production of 25 ktpm.

7.4 KEY MODIFYING FACTORS AND ASSUMPTIONS, BY-PRODUCTS OR DELETERIOUS ELEMENTS

The Mineral Resource cut-off is based on a lead price of USD2,326/t; zinc price of USD2,647/t and silver

price of USD22.5/oz, which is the 80th percentile for the Pb and Zn and the 90th percentile for Ag, of the

historical real term commodity prices since 1980, and a ZAR/USD exchange rate of 14.43.

The processing assumptions that have been applied are shown in Table 11. These are based on a similar

copper, lead and zinc deposit in Namibia for which metallurgical information exists. These factors were

utilised due to the fact that no metallurgical testwork has been conducted on the Rozynenbosch Project as

yet.

For the open pit calculations, the processing costs for the plant were calculated at USD12.06/t and the

mining cost of USD1.68/t and mining overhead costs of USD35.51 were applied. This has resulted in a cut-

off of 1.9% Pb for the Mineral Resource open pit shell. A pay limit calculation using the same parameters

will be 2.1% Pb. This is to be expected as a cut-off grade is lower than a pay limit grade.

Table 11: Rozynenbosch Cut-off Based on Recoveries

Description Zn Recovery Pb Recovery Ag Recovery Pb Eq Cut-off Zn Eq Cut-off

Rozynenbosch Costs 80% 80% 80% 1.9% 1.68%

SAMREC 4.2 (vi) SAMREC 5.2 (i)




If all three commodities are mined and processed, a Pb equivalent is applied to the Mineral Resources for a

combined potential. The equation for the Pb equivalent, based on the parameters above, is as follows:-

Equation 1: Pb Equivalent Including Silver

𝑃𝑏𝐸𝑞% = 𝑃𝑏% + (𝑍𝑛% 𝑥 1.14) + (𝐴𝑔 𝑝𝑝𝑚 𝑥 0.0313)

The equation for the Zn equivalent, based on the parameters above, is as follows:-

Equation 2: Zn Equivalent Including Silver

𝑍𝑛𝐸𝑞% = 𝑍𝑛% + (𝑃𝑏% 𝑥 0.88) + (𝐴𝑔 𝑝𝑝𝑚 𝑥 0.0277)

With respect to the reasonable prospects of eventual economic extraction, the timeframe for eventual

extraction for a bulk commodity is within 50 years. Therefore, it is the Competent Person’s opinion that the

80th percentile covers the reasonableness in terms of commodity price for a period of 50 years as history

shows that the commodity price has reach these prices before in the last 37 years.

However, the Competent Person has also run a scenario excluding silver due to the fact that silver is still in

the process of being applied for. In this scenario the Pb equivalent equation only includes Pb and Zn, as does

the Zn equivalent equation.

Equation 3: Pb Equivalent Excluding Silver

𝑃𝑏𝐸𝑞% = 𝑃𝑏% + (𝑍𝑛% 𝑥 1.14)

Equation 4: Zn Equivalent Excluding Silver

𝑍𝑛𝐸𝑞% = 𝑍𝑛% + (𝑃𝑏% 𝑥 0.88)

7.5 MINERAL RESOURCE STATEMENT

Mineral Resources are stated at a 1.9% Pb equivalent cut-off and no depth cut-off. The Mineral Resources for

Rozynenbosch as calculated by the Minxcon Mineral Resource department and signed off by the Competent

Person as at 31 January 2018 are presented below in Table 12. A geological loss of 15% has been applied to

the Mineral Resource.

Table 12: Mineral Resource Statement, Including Silver, for Rozynenbosch as at 31 January 2018

Mineral Resource Classification Tonnes (Less Geol, Losses) Pb Zn Ag

Mt % % g/t

Inferred 3.10 2.17 0.31 36.47

Notes:

1. Cut-off of 1.9% Pb equivalent (including silver).

2. The entire resource falls within the economic open pit depth cut-off.

3. Ag is a regressed value.

4. Ag is not covered by the current PR.





7. All reported Mineral Resources are limited to fall within the property boundaries of the project area.


The above Mineral Resource tonnage is the same whether expressed as a PbEq at or as a ZnEq (Table 11).

Miranda is in the process of applying for the silver rights to be included in the prospecting right and Minxcon

believes that there are reasonable prospects of them obtaining the silver rights as the project will not be a

standalone silver operation and therefore would not make sense to award the silver rights to another entity.

SAMREC 4.5 (ii)(iii)(iv)(v)(vii) SAMVAL T1.9




However, Minxcon has included a Mineral Resource for Rozynenbosch excluding the silver in the Pb equivalent

cut-off (PbEq% = Pb% + (Zn x 1,14)) which is illustrated in Table 13.

Table 13: Mineral Resource Statement, Excluding Silver, for Rozynenbosch as at 31 January 2018

Mineral Resource Classification Tonnes (Less Geol. Losses) Pb Zn

Mt % %

Inferred 1.79 2.78 0.37

Notes:

1. Cut-off of 1.9% Pb equivalent (excluding silver).

2. The economic open pit depth cut-off of 100m has been applied.







A combined grade tonnage curve for the lead and zinc based on the Pb equivalent, including silver, cut-off is

shown in the following Figure 44. The associated Table 14 broken down into 0.2% increments, is included for

the reader to better analyse this table with regards the declared 1.9% Pb equivalent, including silver, used in

the declaration.

Figure 44: Grade Tonnage Curve of the Pb Equivalent, Including Silver, for Pb and Zn




Table 14: Results of the Grade Tonnage Analysis Based on a Pb Equivalent Cut-off (Including Silver)

PbEq Cut-off Tonnes Less Geological Loss Pb Zn Ag

% Mt % % g/t

0.0 9.49 0.90 0.16 17.95

0.2 7.32 1.17 0.19 22.54

0.4 6.53 1.30 0.21 24.62

0.6 6.18 1.36 0.21 25.59

0.8 5.58 1.48 0.23 27.33

1.0 4.89 1.64 0.24 29.52

1.2 4.30 1.79 0.26 31.59

1.4 3.96 1.89 0.27 32.88

1.6 3.52 2.03 0.29 34.65

1.9 3.10 2.17 0.31 36.47

2.0 2.99 2.22 0.31 37.00

2.2 2.63 2.37 0.33 38.74

2.4 2.43 2.46 0.34 39.78

2.6 2.14 2.61 0.35 41.44

2.8 1.86 2.77 0.37 43.20

3.0 1.72 2.86 0.38 44.24

3.2 1.52 3.00 0.39 45.77

3.4 1.35 3.14 0.41 47.20

3.6 1.24 3.24 0.41 48.15

3.8 1.10 3.37 0.42 49.47

4.0 1.02 3.46 0.43 50.34

4.2 0.90 3.60 0.44 51.69

4.4 0.82 3.69 0.45 52.54

4.6 0.72 3.83 0.45 53.81

4.8 0.66 3.93 0.44 54.65

5.0 0.52 4.18 0.46 56.89

5.2 0.46 4.32 0.46 58.15

5.4 0.40 4.46 0.48 59.41

5.6 0.35 4.62 0.49 60.83

5.8 0.29 4.81 0.51 62.55

6.0 0.24 4.99 0.55 64.40

6.2 0.22 5.12 0.56 65.53

6.4 0.20 5.21 0.58 66.39

6.6 0.17 5.35 0.61 67.64

6.8 0.14 5.56 0.65 69.63

7.0 0.13 5.69 0.67 70.77

7.2 0.11 5.80 0.71 71.90

7.4 0.11 5.84 0.73 72.39

7.6 0.10 5.89 0.74 72.85

7.8 0.09 6.08 0.77 74.51

8.0 0.07 6.34 0.81 76.79

7.6 MINERAL RESOURCE RECONCILIATION

Mineral Resources were declared for Rozynenbosch by Merlin Resources in 2006 based on the estimates of

Phelps Dodge and GFSA and are summarised in the previous Table 4 and Table 5, respectively. For comparison

purposes the Mineral Resource including silver was used as the historical Mineral Resources also included

silver. A comparison of the historical Mineral Resources to the current Mineral Resource, including silver, has

been done and the total tonnes above 1% Pb+Zn are comparative when including the upside potential of the

Exploration Target (Section 10.2). Although previous estimations and reviews were confident in placing the

Mineral Resource in an Indicated category, it is the Competent Person’s view that due to changes in the

SAMREC 4.5 (vi)




SAMREC Code and the nature of the historic drilling and assay results available, only an Inferred Mineral

Resource and an Exploration Target upside potential can be declared.

When comparing the declared 1974 Phelps Dodge results and Minxcon’s 2017 estimate, it should be noted that

almost half the Mineral Resource previously declared has been downgraded to an Exploration Target and this

would account for a difference of 3.34 Mt. The decrease in grade is a result of estimation and modelling

techniques that differ for the original block listing approach as well as the fact that Minxcon did not have

possession of the full original database. This difference is shown in the Table 15.

Table 15: Reconciliation of the Phelps Dodge 1974 and Minxcon 2017 Mineral Resource Estimation

Mineral Resource Mineral

Resource Classification

In Situ Tonnes Tonnes (Less Geol. Losses) Pb Zn Ag

Mt Mt % % g/t

Minxcon 2017 Inferred 3.65 3.10 2.17 0.31 36.47

Phelps Dodge 1974 Indicated 6.99 2.56 0.54 43.09

Difference 3.34 0.39 0.23 6.62

Notes:

1. Minxcon 2017 cut-off is @ 1.9% Pb equivalent including silver.

2. Phelps Dodge 1974 cut-off is @ 1% Pb.

3. Minxcon 1.9%Pb equivalent, including silver, is very similar to a 1% Pb cut-off (gives almost identical Mineral Resource).




8 TECHNICAL STUDIES

8.1 INTRODUCTION

8.1.1 Study Level

The Project is currently in exploration phase.

8.1.2 Modifying Factors Used to Convert Mineral Resource to Mineral Reserve

No Mineral Reserves have been estimated for this CPR.

8.2 GEOTECHNICAL AND GEOHYDROLOGY

No geotechnical or geohydrological information has been considered in this Mineral Resource CPR.

8.3 MINE DESIGN AND SCHEDULE

This CPR is intended as a Mineral Resource report and does not investigate or consider mining parameters.

8.4 RECOVERY METHODS

Recovery of lead and zinc concentrates from ores containing galena and sphalerite will take place by means

of flotation processes. It is anticipated that the Rozynenbosch orebody would be treated by means of crushing,

milling and a differential flotation potentially producing separate lead-silver and zinc concentrates depending

on the plant feed grades. The technology and processing methods are well established, understood and

appropriate for the Rozynenbosch orebody.

It is expected that there will be no significant metallurgical or processing factors that could have a material

impact on the eventual economic extraction.

8.5 MARKET STUDIES AND CONTRACTS

8.5.1 Market Studies

8.5.1.1 Introduction

Rozynenbosch is a polymetallic orebody consisting of lead, zinc, copper and silver, with the possibility of

gold, however the diamond drillhole samples dispatched to the laboratory were only analysed for lead, zinc,

copper and silver; and not for gold. Figure 45 illustrates the value spread for Rozynenbosch, demonstrating

that the most value lies in lead (59%), followed by silver (24%) and zinc (17%), respectively. Market research

therefore was undertaken on the zinc, lead and silver industry. It is noted that silver could be the second

largest revenue contributor. It was recommended in Section 2.4.2 that an application be submitted to include

silver in the prospecting right.

SAMREC 5.1 (i)

SAMVAL T1.18

SAMREC 5.2

SAMREC 5.1 (ii)

SAMREC 5.3 (iii)(vi)

SAMREC 5.6 (i)(ii)




Figure 45: Value Spread of Rozynenbosch Mineral Resources (Including Silver)

8.5.1.2 Zinc

Zinc is currently the fourth most widely consumed metal after iron, aluminium and copper. Its strong

anticorrosive properties and ability to bond well with other metals make its primary use to galvanise other

metals to prevent rusting, with approximately 50% of zinc mined used for this purpose. Zinc is also used to

form alloys such as brass or bronze, in die-casting, and in the rubber, chemical, paint, and agricultural

industries. From a health perspective, zinc is a vital element for growth and human development and is the

second most common trace metal found in the human body, after iron. It is ordinarily associated with lead

and other metals, including, but not limited to copper, gold and silver.

8.5.1.2.1 Reserves

Figure 46 shows that the global zinc metal reserves estimated as of 2017 is approximately 232.7 Mt. Australia

houses the largest reserve, followed by China, Peru and Mexico. South Africa’s reserves are not large, and

do not feature amongst the top 10 countries with regards to reserve size.




Figure 46: Global Zinc Reserves (2016)

Source: USGS (2018)

8.5.1.2.2 Production

Global zinc production was approximately 13,200,000 t in 2017. China is the largest producer of zinc in the

world by a significant margin, with a production of between 3,800,000 t and 5,200,000 t each year from

2010 to 2016, producing a total of 5,100,000 t in 2017. Peru comes in at a distant second, having produced

1,400,000 t in 2016. Australia, the United States and Mexico are the world’s third, fourth and fifth largest

producers of zinc, respectively.

Figure 47 displays the global mine production of zinc in 2017, by major producing countries. Interestingly,

no African countries are represented. South Africa produced a total of 29,000 t in 2015, with data not yet

available for 2017.




Figure 47: Global Mine Production of Zinc (2017)

Source: USGS (2018)

8.5.1.2.3 Zinc Supply and Demand

The zinc market was in deficit in 2016, with a decrease of 1 Mt produced by mines compared to 2015. When

comparing refined metal production versus refined metal consumption, a shortage of 294,000 t is observed.

This deficit was led by mine closures due to resource exhaustion and discretionary closures by primary

producers. Two large zinc mines, namely Century in Australia and Lisheen in Ireland, producing significant

quantities of zinc tonnes closed in 2015. This follows the closure of another two significant producers in

2013, Perseverance and Brunswick. These closures could see zinc inventories continue to decline. China, in

2016, ordered the shut-down of 26 lead and zinc mines for environmental reasons, further tightening supply.

Preliminary data compiled by the International Lead and Zinc Study Group (ILZSG, 2017) show that the global

market for refined zinc was in deficit by 174,000 t for the first five months of 2017. Reported refined zinc

inventories declined by 167,000 t over the same period.

Most large zinc-producing countries saw a year-on-year drop in production. China was the largest producer

in 2016, producing 4,630,000 t from mine production, down from 4,750,000 t in 2015. Australia, the third

largest primary producer, saw a drop of 754,000 t produced from mines, an almost 50% year-on-year

reduction, due to the Century mine closure. Peru, the United States and India also produced less primary

zinc tonnes in 2016 compared to 2015.

Demand, however, has remained fairly steady over the last five years, ranging from a low of 12,378,000 t

in 2012 to a high of 13,949,000 t in 2016. Total refined metal consumption increased by 154,000 t in 2016

year-on-year. Increased demand from China to support their infrastructure plans, was likely the largest

contributor to the increase in consumption. For the first five months of 2017, the United States’ apparent

demand for refined zinc rose by 19%, with global demand up by 1.1%.




A summary of the highlights in 2016 are discussed below:-

• The zinc market was in deficit in 2016 with a shortage of 294,000 t.

• A number of mines closures in previous years, have contributed significantly to the shortages.

• Strong demand from China has driven increased consumption.

Table 16: Zinc Production and Consumption of Top Countries and Globally ‘000 tonnes 2013 2014 2015 2016

Mine Production

China 5,188 5,118 4,750 4,630

Peru 1,351 1,319 1,422 1,337

Australia 1,523 1,560 1,600 846

United States 784 832 808 798

Global Mine Production 13,663 13,622 13,265 12,231

Refined Metal Production

China 5,280 5,807 6,151 6,273

Korea, Rep. 895 915 935 992

Canada 652 649 683 687

India 773 700 817 612

Global Refined Metal Production 13,023 13,513 13,895 13,655

Refined Metal Usage

China 5,962 6,401 6,483 6,720


India 640 638 612 672

Korea, Rep. 578 644 590 611

Global Refined Metal Usage 12,973 13,814 13,806 13,949

Source: World Bank (2017)

Notes:

1. The table shows the four top countries by production and consumption.

2. The totals in the table refer to the global totals and as such will not add up to the four countries presented.

8.5.1.2.4 Zinc Prices

The historical zinc prices are displayed in Figure 48.

Figure 48: Historical Zinc Prices

Source: Minxcon (Jan 2018)




Zinc had a phenomenal year in 2016, rising 75% from an average price of USD1,520/t in January 2016 to an

average price of USD2665/t in December 2016. Prices continued to rise in 2017, reaching an average price

of USD3,195/t in December 2017.

The Energy and Metals Consensus Forecast surveys more than 30 energy and metals analysts every other

month for a range of commodity price forecasts. The real and nominal forecasts of zinc in USD/metric tonne

are displayed in below.

Table 17: Zinc Price Forecasts

Term Nominal Zn Price Forecast Real Zn Price Forecast

USD/t USD/t

2018 3,151 3,151

2019 2,876 2,812

2020 2,658 2,537

2021 2,606 2,430

Long term 2,236

Current price Jan 2018 3,589

Source: Minxcon (Jan 2018), Consensus Economics Inc.

8.5.1.2.5 Zinc Outlook

Currently the primarily use for zinc is as an anti-corrosion agent, accounting for approximately 50% of

demand. With China accounting for almost 50% of zinc demand, and industrial activity in that country being

a big driver of zinc for galvanising, the Chinese economy will be a big driver behind the demand for zinc in

the future. Zinc has been estimated to have the tightest supply of all metals. If steel demand remains

robust, then zinc demand will certainly follow suit.

A future use for zinc could be in the agriculture sector (McLeod, 2017). Robert Friedland, currently executive

chairman and founder of Ivanhoe Mines, has noted on zinc’s potential in the agriculture sector, commenting

that zinc “is now recognised, along with potash, as one of the most intense organic fertilisers.” According

to Friedland, China and India in particular may start looking to use zinc in fertilizers. “Some 60% of soils in

[those countries] have been depleted of zinc …so China has mandated that fertiliser should include zinc” -

this could affect the demand for zinc significantly. According to Stefan Schlag, director of specialty

chemicals at IHS Chemical, Zinc demand could rise as much as 400,000 t by 2018 to over 1,800,000 t on the

back of zinc fertilizers.

8.5.1.3 Lead

Lead is a very soft, easily worked metal with high corrosion resistance and poor electrical conductivity. It

has been used since Roman times for pipes, paint and alloys. It has also more recently been used in

insecticides, hair-dyes and as an anti-knocking additive in petrol. All these uses have, however, been banned

or are being phased out due to environmental concerns. The current major use of lead is the lead-acid

battery commonly used in car batteries, ammunition, colouring elements in ceramic glass, organ pipes,

electrodes, sheeting, cables, soldering, bearings, weights for sporting equipment, weight belts for diving

and in the glass of computer and television screens to shield viewers from radiation. Lead is typically

naturally occurring along with zinc, copper and silver.

8.5.1.3.1 Reserves

Figure 49 shows that the global lead metal reserves estimated as of 2016 is approximately 88 Mt. Australia

houses the largest reserve, followed by China, Russia and Peru. South Africa’s reserves are not significant,

containing approximately 300,000 t.




Figure 49: Global Lead Reserves (2017)

Source: USGS (2017)


World lead production was approximately 4,700,000 t in 2017. China is the largest producer of lead in the

world by a significant margin, with a production of between 2,200,000 t and 2,700,000 (rounded) t each

year from 2013 to 2017, producing a total of 2,400,000 t in 2017. Australia comes in at a distant second,

having produced 450,000 t in 2017. The United States, Peru and Mexico are the world’s third, fourth and

fifth largest producers of lead respectively. Figure 50 displays the global mine production of lead in 2017,

by major producing countries. No African countries are represented as a major producer. South Africa

produced a total of 40,000 t in 2016.




Figure 50: Global Lead Production (2017)

Source: USGS (2018)

8.5.1.3.3 Lead Supply and Demand

Primary lead production decreased in 2016, with a decrease of 285,000 t produced by mines compared to

2015. However, when comparing refined metal production versus refined metal consumption, an excess of

131,000 t is observed. Preliminary data for 2017, however, does not follow this trend, with demand

exceeding supply of refined lead by 91,000 t for the first five months of 2017, and increased mine production

of 12.7% for the same period (ILZSG, 2017). According to the ILZSG, the increased mine production was led

by increased output by China and India, offsetting decreases from the likes of Australia and Peru, while a

rise in refined lead production was driven by increases from China, India, the Republic of Korea and the

United States.

The United States saw an apparent rise in demand of 23.3% for the first five months of 2017, driven by a

sharp increase in net imports (ILZSG, 2017). Over the same period, Chinese apparent demand rose 13.7%

and Europe’s apparent demand was up 1.7%. Global demand rose 10.3% year-on-year for the first five months

of 2017.




Table 18: Lead Production and Consumption of Top Countries and Globally

‘000 tonnes 2013 2014 2015 2016

Mine Production

China 2,697 2,609 2,335 2,230

Australia 711 728 654 438


Peru 266 278 316 314

Global Mine Production 5,294 5,268 4,995 4,710

Refined Metal Production

China 4,935 4,704 3,845 4,670

United States 1,308 1,020 1,100 1,070

Korea, Rep. 522 670 682 800

India 462 477 496 508

Global Refined Metal Production 11,313 10,933 10,198 11,122

Refined Metal Usage

China 4,927 4,682 3,804 4,660

United States 1,750 1,540 1,590 1,564

Korea, Rep. 550 601 602 592

India 428 521 539 567

Global Refined Metal Usage 11,302 10,919 10,213 11,253

Source: World Bank (2017)

Notes:

1. The table shows the four top countries by production and consumption.

2. The totals in the table refer to the global totals and as such will not add up to the four countries presented.

8.5.1.3.4 Lead Prices

The historical lead prices are displayed in Figure 51.

Figure 51: Historical Lead Prices

Source: Minxcon (Jan 2018)

Lead has also had a great year in 2016, rising 35% from an average price of USD1,647/t in January 2016 to

an average price of USD2,231/t in December 2016. Prices continued to rise in 2017 reaching an average

price of USD2,510/t in December 2017.




The Energy and Metals Consensus Forecasts, surveys more than 30 energy and metals analysts every other

month for a range of commodity price forecasts. The real and nominal forecasts of lead in USD/t are

displayed in the table below.

Table 19: Lead Price Forecasts

Term Nominal Pb Price Forecast Real Pb Price Forecast

USD/t USD/t

2018 2,419 2,419

2019 2,277 2,255

2020 2,172 2,073

2021 2,183 2,035

Long term 2,211 1,966

Current price Jan 2018 2,635 Source: Minxcon (Jan 2018), Consensus Economics Inc.

8.5.1.3.5 Lead Outlook

Lead is the one of the most widely used metals in the world. As a non-ferrous metal, it can be recycled

indefinitely without losing its properties. Recycling therefore accounts for approximately 60% of refined

metal production.

Lead’s largest demand share, 80%, comes from the lead-acid battery industry. Even with the world shifting

ever more towards electric cars, in the form of lithium, these vehicles still require traditional 12-volt lead-

batteries to operate (Barrera, 2017). A rising demand for electric vehicles, will see a rise in demand for lead

on a global scale.

With regards to supply and demand levels, ILZSG anticipated that supply will exceed demand by 42,000 t in

2016, and by 23,000 t in 2017, indicating a tighter market. BMI Research has stated that “The global primary

lead market will shift into deficit by 2018 on the back of persistent supply cuts. Mined lead production will

be hit by a global slowdown in mining capital expenditure, which will have a knock-on effect on refined

lead supply growth.” The market has already shifted from an excess of refined lead to a deficit in the first

five months of 2017. The future seems to be looking brighter for lead in the long term.

8.5.1.4 Silver

Silver has been considered a precious element for thousands of years. It was first used as currency as early as

700 B.C. and has been used as trading metal ever since.

Today, silver is an important metal in a number of industries. This is due to silver possessing unique

characteristics in that it strong, malleable and ductile and is able to endure extreme temperature ranges.

Silver has the highest electrical and thermal conductivity of any known material. Silver is also highly reflective

of light.

Uses of silver vary but can broadly be categorised into three distinct categories namely industry, jewellery

and décor, and investment. In industry silver is used in batteries, bearings, many types of electrical contacts,

brazing alloys and solders, mirrors, ethylene oxide catalysts and many more applications. In the green energy

sector, 90% of all photovoltaic cells rely on silver paste. Jewellery demand is high for silver due to it being

lustrous, but resilient. It is also less expensive than gold.




8.5.1.4.1 Reserves

Figure 52 shows that the global silver metal reserves estimated as of 2017 is approximately 530,000 t. Peru

houses the largest reserve, followed by Australia, Poland and Russia. South Africa’s reserves are not large,

and do not feature amongst the top countries with regards to reserve size.

Figure 52: Global Silver Reserves (2017)

Source: USGS (2018)


Global silver production was approximately 774,000,000 oz in 2017. Mexico is the largest producer of silver

in the world, with a production of 174,000,000 oz in 2017. Peru follows Mexico in production, having

produced 140,000,000 oz in 2017. China, Russia and Poland are the world’s third, fourth and fifth largest

producers of silver, respectively. Figure 53 displays the global mine production of silver in 2017 by major

producing countries. South Africa produced a total of 1,600,000 oz in 2016. Interestingly, 35% of global silver

production in 2016, came from source metals lead and zinc.




Figure 53: Global Mine Production of Silver (2016)

Source: USGS (2018)

8.5.1.4.3 Silver Supply and Demand

Global silver production declined 0.6% year-on-year in 2016 to a total of 885.8 Moz. A large portion of the

declined production was attributable to the slump in production in the lead-zinc sector and gold sector,

accounting for a drop of 15.9 Moz (The Silver Institute & Thomson Reuters, 2017). Global scrap was also

down by 1% year-on-year, this despite higher silver prices. The lower scrap volumes resulted largely due to

curbed Asian flows, in part caused by weaker industrial fabrication volumes, which weighed on process

remelt as stock levels were run down and liquidated. Hedging activities removed 18.4 Moz from the global

supply in 2016.

Global physical demand for silver fell year-on-year by 11% to 1,027.80 million oz in 2016 from 1,151.50 Moz

in 2015 with declines in all demand categories. The largest slump in demand was for coins and bars of silver,

with a drop of 206.8 Moz year-on-year. According to The Silver Institute & Thomson Reuters (2017), this 29%

drop was largely driven by decreased demand from India. Jewellery fabrication declined 9% in 2016 on the

back of higher silver prices and declining economic conditions. The higher silver prices also accounted for

the 17% fall in silverware fabrication. Industrial fabricator demand slipped 1% year-on-year, with declines

in electronics, brazing alloys & solders, and photography offset by a record 34% increased demand for

photovoltaic applications.




Table 20: Silver Supply and Demand

‘000,000 oz 2013 2014 2015 2016

Supply

Mine Production 823.7 868.6 890.8 885.8

Net Government Sales 7.9 Scrap 191 165.3 141.1 139.7

Net Hedging Supply -34.8 16.8 7.8 -18.4

Total Supply 987.8 1,050.70 1,039.70 1,007.10

Demand

Jewellery 221.8 227.9 228.3 207

Coins & Bars 240.6 234 290.7 206.8

Silverware 58.8 60.7 62.9 52.1

Industrial Fabrication 604.5 595.7 569.6 561.9

Total Demand 1,125.80 1,118.30 1,151.50 1,027.80

Physical Surplus/Deficit -137.9 -67.6 -111.8 -20.7 Source: The Silver Institute & Thomson Reuters (2017)

8.5.1.4.4 Silver Prices

The historical silver prices are displayed in Figure 54.

Figure 54: Historic Silver Prices

Source: Minxcon (June 2017)

The silver price has not had a strong 2017. The first quarter of 2017 saw a 4% increase in the silver price,

but these gains were shed in the second quarter of 2017. The silver price averaged only USD16.16 in

December 2017.

The Energy and Metals Consensus Forecast surveys more than 30 energy and metals analysts every other

month for a range of commodity price forecasts. The real and nominal forecasts of silver in USD/oz are

displayed in Table 21.




Table 21: Silver Price Forecasts

Term Nominal Ag Price Forecast Real Ag Price Forecast

USD/oz USD/oz

2018 17.6 17.6

2019 18.4 18.0

2020 19.1 18.3

2021 19.8 18.5

Long term 21.8 19.4

Current price Jan 2018 17.07

Source: Minxcon (Jan 2018), Consensus Economics Inc.

8.5.1.4.5 Silver Outlook

Demand for one of the major uses of silver, i.e. in photovoltaic (“PV”) cells, is forecasted to increase

steadily over the coming years despite less silver used per cell (The Silver Institute, 2016). This increase in

demand is due to a combination of carbon emissions legislation, government policies, and the cost per

gigawatt of electricity generated using PV cells decreasing. 2018 Is predicted to be an exceptionally good

year for PV cell silver demand, with silver use in PV cells in 2018, predicted to be 75% higher than in 2015.

Demand for ethylene oxide (EO), used in a large number of plastic and chemical products, most notably

ethylene glycol used in antifreeze and polyethylene terephthalate (PET) used in clothing fibres, plastic

bottles and food containers, is also expected to increase over the coming years through 2020. Slowdown in

economic growth of global powerhouses like China may, however, offset these increases in demand in other

industrial applications.

Jewellery demand along with industrial demand depend on a strong economy, while investor demand follows

the opposite trend. Silver, like gold, continuous to be a safe-haven investment metal, and will benefit from

global political uncertainty. Investment demand will continue to hinge on global political events.

2016 recorded first mine production decline since 2002. Quarter 2 of 2017 saw labour disputes disrupt

production at four of the world’s top silver producers, sharply reducing output. This could further increase

the silver deficit in 2017. However, the market price may not react to the fundamental shortages as the

majority of silver produced remains theoretically available to the market in the form of above-ground stock.

A strong metal price may see an increase in scrap supply as more existing silver jewellery, coins, and other

products tend to be sold and melted down for addition to the market supply of silver.

8.5.2 Contracts

The Company does not have any current contracts in place.

8.6 ENVIRONMENTAL STUDIES

The Rozynenbosch Project is currently held under a prospecting right. The 2013 EMP for the Project states

that no waste material from operations will be accumulated. Diesel will be stored in a tank provided with a

proper bund wall. All other hazardous fluids will be stored in a specially erected storage facility. Dust will

be liberated from excavating operations but will be restricted to the site area and noise will be at a tolerable

level. Topsoil will be stored for the purpose of final rehabilitation. The current and use is subsistence

farming (agriculture and livestock) and the land will be rehabilitated to grazing land. No heritage sites are

identified on the property.

Per the MPRDA, more detailed environmental studies are required when application is made for a mining

right. The studies, including an Environmental Impact Assessment (“EIA”) are consolidated into a

SAMREC 5.5 (i)(iii)




comprehensive EMP report. Cognisance will have to be taken of the aridity of the region as well as the Project

location within the Riemvasmaak Community Conservancy.

8.7 LEGAL AND PERMITTING

An overview and discussion of the legal and permitting items pertaining to Rozynenbosch are presented in

Section 2.4 of this Report.

The Competent Person is not aware of any due diligence or other such studies, audits or reviews of the legal

aspects and tenure of Rozynenbosch being undertaken.

8.8 TAXATION

No company tax was applied to the valuation as only a mineral asset valuation was completed. The normal

company tax formula of 28% would apply if an Income Approach valuation is required. For all mines, capital

expenditure incurred may be redeemed immediately against mining profits.

8.9 SOCIAL OR COMMUNITY IMPACT

The Rozynenbosch Project is currently held under a prospecting right. Per the MPRDA, social studies are

required when application is made for a mining right, to be presented in the format of a Social and Labour

Plan (“SLP”). As required in Section 3 of the MPRDA, Public Participation Process with interested and

affected parties (“IAPs”) must be conducted for the Project. A company requires approval of the project

SLP before the DMR can issue a mining right. As such, no social studies for the Project Area have been

commissioned at this stage, however, the SLP process will have to be followed once a mining right for

Rozynenbosch is applied for.

8.10 MINE CLOSURE

Mining companies are required to make financial provision for mining-related environmental rehabilitation.

Upon closure, the mine area will need to be monitored and rehabilitated as per the EMP/EIA.

The current financial guarantee to the value of ZAR70,000 is in place through Guardrisk for future

environmental rehabilitation after completion of the prospecting programme.

Environmental risk mitigation, monitoring and rehabilitation measures will have to be conceived and

presented in the EMP documentation once a mining right is applied for.

8.11 CAPITAL AND OPERATING COSTS

This Report is intended as a Mineral Resource CPR. As such, no capital and operating costs have been

calculated.

8.12 FINANCIAL ANALYSIS

8.12.1 Introduction

The Competent Valuator relied upon the Mineral Resources and information compiled by Mr Uwe Engelmann,

a Competent Person who is registered with SACNASP as a Professional Natural Scientist and is a Member of

the Geological Society of South Africa, included in a list of recognised organisations promulgated by the SSC

from time to time. The Competent Valuator is satisfied with the manner in which the Mineral Resources have

been stated and supports the methodology followed. No Mineral Reserves were declared.

JSE 12.9 (f) SAMREC 5.6 (iii) SAMREC 5.8

SAMREC 5.5 (iv)(v)

SAMREC 5.6 (vii)

SAMVAL T1.2 T1.3




The Report is compiled in compliance with the terms of the specifications embodied in the SAMVAL Code. All

requirements of the JSE Section 12.9 Listing Requirements and the SAMREC Code (including Table 1) and

SAMVAL Code have been complied with. Sections T1.0 to Sections T1.9 of the SAMVAL Code compliance

checklist are covered earlier in this Report.

Minxcon was mandated to complete a SAMVAL-compliant market valuation for the Rozynenbosch Project.

According to the SAMVAL Code, two valuation approaches should be used to complete the valuation. As such,

Minxcon applied the Market Approach and Cost Approach to complete the market valuation as no Mineral

Reserve was available for use.

As stated in Section 1.1, the purpose of the CPR is to comply with continuing obligations as required by the

JSE Listings Requirements with regard to the publication of the CPR on the Company’s website, and comply

with lifting of the suspension of the trading in the Company’s shares. The CPR will be used to provide an

update for the Company shareholders, and the information presented will be utilised in the Company’s

Integrated Report. As such, the valuation will be used in support of the beforementioned purpose.

The market valuation for the Rozynenbosch Project was done on a 100% basis (not attributable). As stated in

Section 2.4.1, the Rozynenbosch Project is currently held under rights by Miranda Minerals (Pty) Ltd, a direct

and wholly-owned subsidiary of Miranda Mineral Holdings Limited. The Miranda Minerals (Pty) Ltd BEE

transaction will see 30% of the share capital of Miranda Minerals (Pty) Ltd transferred to Kwanda Minerals

Holdings (Pty) Ltd, together with a trust established by Miranda for the benefit of the mining community in

the surrounding area.

8.12.2 Previous Valuation

Two valuations of Rozynenbosch mineral assets were completed by Merlin Resources in August 2006.

8.12.2.1 Phelps Dodge Valuation

One valuation was based on exploration work done by Phelps Dodge, and the other exploration work done

by both Phelps Dodge and GFSA. The first valuation was carried out using a combined zinc and lead cut-off

grade of 1% over a width of 5 m. A resulting Mineral Resource of 6.99 Mt of ore was estimated with grades

of:-

• Pb: 2.56%;

• Zn: 0.54%;

• Cu: 0.08%; and

• Ag: 43.09g/t.

Commodity prices effective 4 August 2006 were applied to the Mineral Resource estimate with a ZAR/USD

exchange rate of 6.70 and a valuation of ZAR3.29 billion was obtained (Table 22). It is important to note

that this value reflects in situ values (no mining factor assumptions and metallurgical factors or recoveries

applied) and are therefore not compliant to any of the major valuation codes, i.e. SAMVAL, VALMIN and

CIMVal.

Table 22: Phelps Dodge Data - Merlin Resources Valuation, 2006

Commodity In Situ Metal Content Commodity Price In Situ Value

USD ZAR

Pb 176,640 t 1,130/t 1,337,341,440

Zn 37,260 t 3,383/t 844,538,886

Cu 5,592 t 7,820/t 292,987,248

Ag 9,739,871 oz 12.43/oz 811,146,226

Total 3,286,013,801 Source: Merlin Resources (Aug 2006).

SAMVAL T1.11




The second valuation was carried out using GFSA and Phelps Dodge data with no cut-off grades applied. A

total in situ Mineral Resource of 14 Mt was estimated over a width of 3 m at the following grades:-

• Pb: 1.72%;

• Zn: 0.46%;

• Cu: 0.03%; and

• Ag: 34.1 g/t.

The non-compliant valuation on in situ Mineral Resource tonnes is shown in Table 23.

Table 23: GFSA-Phelps Dodge JV Data - Merlin Resources Valuation, 2006

Commodity In Situ Metal Content Commodity Price In Situ Value

USD ZAR

Pb 240,800 t 1,130/t 1,823,096,800

Zn 64,400 t 3,383/t 1,459,696,840

Cu 4,200 t 7,820/t 220,054,800

Ag 15,350,482 oz 12.43/oz 1,278,403,517

Total 3,502,861,224 Source: Merlin Resources (Aug 2006)

8.12.2.2 Miranda Valuation

In 2011 Miranda placed a value of ZAR284.5 million on the asset and made the decision to derecognise the

Rozynenbosch Project asset from their financial statements due to an appeal process regarding an

application for a prospecting right in respect of an unused, old order right, subsequent to the

implementation of the MPRDA. According to the Miranda Mineral Holdings Ltd Annual Report 2012, the value

of ZAR284.5 million is applied to the Rozynenbosch Project based on a Mineral Resource classification of 14

Mt of Indicated Mineral Resources.

8.12.3 Valuation Approaches and Methods

The following valuation approaches are three internationally accepted methods of valuing mineral projects,

and are summarised below as well as illustrated in Table 24:-

• Cost Approach: used to value early-stage exploration properties. The valuation is dependent on the

historical and future exploration expenditure.

• Market Approach: used to value exploration and development properties, based on the relative

comparisons of similar properties for which a transaction is available, in the public domain. The

market approach relies on the principle of “willing buyer, willing seller” and requires that the amount

obtainable from the sale of the mineral asset is determined as if in an arm’s-length transaction.

• Income Approach: used to value development and production properties in the production phase.

This method relies on the “value-in-use” principle and requires determination of the present value of

future cash flows over the useful life of the mineral asset.

Table 24: Acceptable Methods of Mineral Project Valuation

Valuation Approach

Early Stage Exploration

Advanced Stage

Exploration

Development Properties

Production Properties

Dormant Properties Defunct

Properties Economically Viable

Not Viable

Income Not generally

used Less widely

used Widely used Widely used Widely used

Not generally

used

Not generally

used

Market Widely used Widely used Less widely

used Quite widely

used Quite widely

used Widely used Widely used

Cost Widely used Widely used Not generally

used Not generally

used Not generally

used Less widely

used Quite widely

used

Income Approach

The discounted cash flow (“DCF”) valuation is based on future free cash flow discounted to present value.

This analysis is widely used within investment banking and company valuation. The DCF is based on the

SAMVAL T1.12




Production Schedule and all costs associated to develop, mine and processing the Reserve. Relevant taxation

and other operating factors, such as recoveries, stay-in-business costs and contingencies are incorporated

into the valuation to produce a cash flow over the life cycle of the project.

It is generally acceptable to use Mineral Resources in the cash flow approach if Mineral Reserves are also

present. These Mineral Resources and Mineral Reserves must be signed off by a Competent Person in

accordance with SAMREC (or other required Reporting Code). Additionally, Mineral Reserves must be based

on a life of mine plan for an operating (going concern) mine, or at least a pre-feasibility study for a mine

project.

Market Approach

The market approach was considered for this Project, as per SAMREC/SAMVAL Code requirements. The

market approach requires the comparison of the Project with relatively recent transactions of Mineral

Resource assets that have similar characteristics to those of the asset being valued. It is generally based

upon a monetary value per unit of the Mineral Resource (where available), or per unit of defined tonnes

(Measured, Indicated and Inferred). Typically, the comparable method uses the transaction price of

comparable assets to establish a value for the specific asset to be valued. The difficulty of this approach

within the mining industry is that there are no true comparables, as each asset is unique with respect to

key factors such as geology, mineralisation, costs, stage of exploration, infrastructure, as well as peripheral

issues such as social, political and environmental aspects.

When transactions of mineral assets do occur, they rarely involve strictly cash, leaving the valuator the task

of converting blocks of shares, royalties or option terms into present-day monetary equivalents. In the first

cases, the defined value of the share (inclusive of whether it is transacted at a premium or discount), at

the time of the transaction, is applied to convert the share volume into a cash value. The same principle is

applied to royalties and option terms to convert these transaction preferences into a cash basis.

Cost Approach

The cost approach relies on historical and/or future expenditure on the property and involves estimation of

the depreciated cost of reproducing or replacing the asset and improvements. Reproduction cost refers to

the cost at a given point in time of reproducing a replica asset, whereas replacement cost refers to the cost

of reproducing improvements of equal utility. In cases where insufficient confidence exists in the technical

parameters of the mineral asset, valuation methods rely almost entirely on the principle of historical cost,

implying that an asset’s value is correlated to the money spent on its acquisition, plus a multiple of

expenditures. A prospectivity enhancement multiplier (“PEM”) is a factor applied to the total cost of

exploration, the magnitude of which is determined by the level of sophistication of the exploration for which

positive exploration results have been obtained.

8.12.3.1 Methodology Justification

The Project is in the exploration phase and no feasibility has been completed on the Project. Information is

restricted to drilling information, Mineral Resource estimation and project geology.

The market comparable approach was applied on the total Zinc Resources (including the Zn equivalent) and

Exploration Target as the primary valuation methodology in determining the value of the asset. The Project

has a compliant Mineral Resource that was available for use in the valuation.

The Mineral Resource Statements include the silver content and zinc content as the secondary minerals to

the lead, however the lead and silver content present in the Mineral Resource were included as a zinc

equivalent in the valuation due to Zn-Pb orebodies of most mines containing predominantly zinc. Lead mine




transactions are also few and far between. For comparison purposes, it therefore made more sense to

compare zinc equivalent tonnes rather than lead equivalent tonnes.

Zinc equivalents are generally based on the value of the lead and silver commodity relative to the zinc

price. At the valuation date of the Report the prices that were used to calculate the equivalent content

were (Minxcon, 2018; Consensus Economics Inc., 2018):-

• Zinc price: USD3,191/t;

• Lead price: USD2,454/t; and

• Silver price: USD17.16/oz.

These prices are based on the average between the three-month historic prices and the one-year forecast

prices, as reported by Consensus Economics Inc. It should be noted that these prices are not used directly in

the valuation but is rather used as an index price to adjust historic transaction values to align with current

market expectation. In addition, a ZAR/USD exchange rate of 13.83 was used for the Market Approach and

Cost Approach to convert the USD values to ZAR values.

Based upon review of technical data, the cost approach was selected as the secondary valuation

methodology. Although historical costs estimates were not available, replacement costs associated with the

work completed were sourced from Minxcon’s Exploration division.

8.12.4 Valuation Date

The valuation date of this Report is 31 January 2018. The Competent Valuator is not aware of any material

changes that occurred between the valuation date and report date.

8.12.5 Valuation Results

8.12.5.1 Market Approach

8.12.5.1.1 Methodology

The following methodology was employed:-

• Industry transactions based on arm’s-length transactions were sourced and expressed as a unit value

(USD/t) per metal content. Where transactions include additional minerals to zinc, Zn equivalent

resources were calculated (as per Equation 5 in Section 8.12.5.1.5 in the case of Pb) based on the

prevailing commodity prices, recoveries and smelter/refinery terms at the date the transaction took

place.

• The Mineral Resource category ratios for the population in the database must be calculated to assign

unit values for each transaction per resource category. These are calculated by first taking all

transactions in the database within a specific Mineral Resource category and plotting a distribution

curve of the unit values (total transaction value divided by total attributable Mineral Resources)

against the proportion for a specific Mineral Resource category of total Mineral Resources. The

resultant outcome is a curve which illustrates the values of a specific category given a specific

proportion of the Mineral Resource category to total Mineral Resources. The ratio between

Measured, Indicated and Inferred could therefore be determined and applied to each transaction

based on the distribution of Inferred, Indicated and Measured tonnes.

• Each of the unit values were then adjusted for the specific economic price environment to construct

a database in today’s money terms for the Zn-Pb industry and subsequently a value curve and unit

values for the different Mineral Resource categories.

SAMVAL T1.14 SAMVAL T1.15

SAMVAL T1.13




• A Sigmoid curve calculation is utilised to arrive at a value for each Mineral Resource category based

on the unit values for each transaction per Mineral Resource category. This is tested against the mean

and median values derived for each Mineral Resource category.

• Main industry risk criteria that influence market price were identified. The risk for Rozynenbosch

Project was then measured against the industry risk scale.

• Subsequently, unit values for the different Mineral Resource categories were increased or lowered,

based on the project-specific risk after considering the deviation of the Rozynenbosch valuation

indices below or above the industry mean.

8.12.5.1.2 Transaction Price Adjustment for Current Day Terms

The transactions used to construct the valuation curve for this Report occurred at a specific point in time

and, therefore, at a specific USD-denominated zinc equivalent price. The value a buyer is prepared to pay

and the seller is prepared to sell depends largely on the commodity price cycle. In order to report historic

transactions in current money terms and compare all transactions on the same economic level, the USD zinc

equivalent price was determined for each historic transaction at the time it took place. Historic transaction

values were then adjusted to current terms, by determining the difference in USD zinc equivalent price

from the time of these historic transactions to the current prices.

The current price was determined by using the historic prices for the three months preceding the valuation

date of this Report, together with the twelve-month forecast for the prices, to calculate an appropriate

price level as at the valuation date of the Project valuation shown in Table 25. This approach to selecting

appropriate prices is followed based on sentiment towards buying and selling early stage exploration

properties, where the demand is strongly driven by the short-term outlook on the commodity price and the

short-term historic price performance. Forecasts prices were sourced from Consensus Economics Inc., which

reports consensus prices from a number of analysts and banks. It should be noted that these prices are not

used directly in the valuation but is rather used as an index price to adjust historic transaction values to

align with current market expectation.

Table 25: Price Used for Current Day Unit Value Adjustment Description Unit Value

Lead USD/t 2,454

Zinc USD/t 3,191

Silver USD/oz 17 Source: Minxcon (Jan 2018), Consensus Economics Inc.

Subsequent to the normalisation of each transaction to a current transaction value, the Competent Valuator

plotted the values of historical transactions, which took place on an arm’s-length basis, in relation to their

specific stage of Mineral Resource classification, i.e. Inferred, Indicated and Measured Mineral Resources.

This methodology, when applied to exploration and resource transactions, provides guidance in terms of a

range of transaction values for the property, asset or project being analysed and valuated. This principle is

used to reflect the current market expectation that is likely to drive the calculated market value. Figure 55

demonstrates the valuation curve adjusted for zinc equivalent Mineral Resources, while Table 26 shows the

project transactions considered in the valuation curve. Each of the transactions considered were

polymetallic orebodies with at least lead and zinc. The square points on the graph indicates the value

ascribed per Mineral Resource category for each transaction. The diamond shapes indicate the mean Sigmoid

derived values, representing base unit values applied to the project before the modifying factors are

applied. The Rozynenbosch Inferred unit value was calculated by applying the modifying factors described

in Section 8.12.5.1.4 to the Sigmoid derived Inferred unit value in the graph below. Similarly, the

Rozynenbosch Exploration Target unit value was calculated by applying the modifying factors to the Sigmoid




derived Inferred unit value and applying a 50% discount to address the inherent risk of using Exploration

Target tonnes in the place of Inferred Mineral Resources.

Figure 55: Zinc Equivalent Valuation Curve

Table 26: Transactions Considered for the Valuation Curve

Project Date of Transaction Status Commodities

Pering Mine 01-Jul-09 Closed Operation Zn, Pb

Lisheen Zinc Mine 15-Feb-11 Operating Mine Zn, Pb

Black Mountain Mines 04-Feb-11 Operating Mine Zn, Pb, Cu, Ag

Gamsberg Project 04-Feb-11 Advanced Exploration Stage Zn, Pb, Mn, S

Rosh Pinah Mine 01-Jun-12 Operating Mine Zn, Pb

Paguanta Project 28-Jul-16 Advanced Exploration Stage Zn, Pb

Kipushi Project 28-Nov-11 Closed Operation Zn, Pb

Berg Aukas Mine 26-Jun-11 Closed Operation Zn, Pb, V2O5

Campo Morado Mine 14-Jun-17 In Development Zn, Pb, Cu, Ag, Au

Coricancha Mine 03-Jul-17 Closed Operation Zn, Pb, Cu, Ag, Au

El Toqui Mine 03-Nov-16 Operating Mine Zn, Pb, Ag, Au

Contonga Mine 19-Jul-10 Operating Mine Zn, Pb, Cu, Ag

Pucarrajo Mine 19-Jul-10 Operating Mine Zn, Pb, Ag

8.12.5.1.3 Modifying Factors and Material Issues

According to the SAMVAL Code, a statement of modifying factors should be included, separately summarising

material issues relating to each applicable modifying factor which include but may not be limited to premises,

assumptions, restrictions, mining, metallurgical, economic, marketing, legal, environmental, social and




governmental considerations. These modifying factors are normally applied when converting Mineral

Resources to Mineral Reserves.

From industry, CIM derived a list of principal project risks, which Minxcon utilised to create a valuation

parameter matrix for determining mining project risk, weighing different criteria such as depth, geology,

mining process, legal tenure, etc. The Competent Valuator adopted this matrix, and modified classification

and ratings to suit parameters that are sensitive to this commodity. The parameters used to determine a

risk-associated weighted index for the global lead and zinc industry also indicated in Figure 56.

Figure 56: Weighting of Valuation Risk Associated Parameter Matrix

8.12.5.1.4 Principal Valuation Modifying Factors

Table 27 to follow summarises the Project modifying factors used in the valuation for the total zinc and lead

Mineral Resources of Rozynenbosch. This allows for a more calculated decision-making process rather than a

wholly subjective decision on the project risk position on the valuation curve. The parameter ranges are

described in the table and are based on research on the specific industry. A database of global Pb-Zn projects

collected act as a basket of projects at various development stages. The numbers are indicative of the risk

of each item compared to that of the industry. The higher the number, the lower the risk and therefore the

willingness of a buyer to place a premium on the project or operation. Each modifying factor is given a score

out of ten for the first four categories listed, out of six for the next three categories and out of three for the

remaining categories, as illustrated in the table to follow. Subsequently the project value is adjusted by the

ratio of the total scores of the project compared to the industry norm.

SAMVAL T1.10


An Independent Competent Person’s Report on the Rozynenbosch Project, Northern Cape Province, South Africa - Mineral Resource & Mineral Asset Valuation Report 88

Table 27: Principal Valuation Modifying Factors for Rozynenbosch

Lead-Zinc Modifying Factors

Description

Depth

The largest, most profitable zinc-lead mines are open-pit operations, with some extending to both open-pit and underground operations. Shallower (<100 m) orebodies usually have less overburden to remove and hence smaller stripping ratios. The average open pittable Zn-Pb mines seem to average a pit depth of 120 m - 420 m. The deepest underground mine is the Kidd Creek Mine in Canada, with a depth of 2.9 km. The average underground mining depth seems to be between 900 m - 1,500 m. The Rozynenbosch Resource does not extend beyond a depth of circa 150 m and can therefore be considered open-pittable.

Scale of Project (Resource)

Mineral Resources of the largest Zn-Pb mines exceed 5 Mt of equivalent zinc content. The average Zn-Pb mine seems to have Mineral Resources with zinc equivalent content between 1.0 Mt - 5 Mt. A number of smaller Zn-Pb mines have Mineral Resources with Zn equivalent tonnes less than 200,000 tonnes. Rozynenbosch has an Inferred Mineral Resource estimate of 88,573 t ZnEq with an Exploration Target of approximately 150,000 t ZnEq therefore ranking it as a small-scale project.



Mining Method The largest, most profitable Zn-Pb mines have been open-pit operations, although underground mines are more common. Rozynenbosch has an orebody at an open-pittable depth. The Exploration Target was however rated at a higher risk in the mining method category due to its depth relative to the Inferred Mineral Resource.

Operation Infrastructure

A project's risk can be ranked according to the available infrastructure that is available. A project with nothing available has a higher risk than a project that already incurred major infrastructure costs. The establishment capital associated with Zn-Pb mines is significant and a well-advanced project is regarded as less risky. There is currently no major infrastructure at Rozynenbosch, indicating a higher risk compared to other operations. There is however access to the property via roads.

Confidence in Data Source

Categorisation of the Mineral Resource could only be classified as Inferred due to the lack of QAQC, uncertainty of the exact position of the drillholes and the absence of all available raw assay information. Although previous estimations and reviews were confident to place the Mineral Resource in an Indicated category, it is the Competent Valuator’s view that due to changes in the SAMREC Code and the nature of the historic drilling and assay results available, only an Inferred Mineral Resource and an Exploration Target up-side potential can be declared at this stage. This is not to say that the data is of poor quality, however. To the contrary, both Goldfields and Phelps Dodge were large mining or exploration companies with standards and procedures which would have ensured quality. This is evident in the good quality of detailed geological data (when available). Data of sufficient quality was available for the Minxcon team to build a geological model, wireframes and complete a Mineral Resource estimation.

Title Ownership The Rozynenbosch Project is currently held under a prospecting right. No surface right is in place. The Rozynenbosch Project is held under rights by Miranda Minerals (Pty) Ltd, a direct a wholly-owned subsidiary of Miranda Mineral Holdings Limited. The MPRDA requires a minimum of 26% BEE shareholding. Currently, Miranda Minerals (Pty) Ltd is not BEE compliant and the Company is addressing this status.

Geological Complexity

The distribution of faults and lithological boundaries as a function of scale can be measured by the geological complexity. At least four phases of deformation have been recognised at Rozynenbosch. The phases of deformation are characterised by plastic folding events and are labelled from F2 through to F5. The F3 fold axes trend northwest to south east with a mean stratigraphic strike approximating east to west and form the dominant regional fabric. The F2 structures are located within the limbs of the F3 fold structures. Both F2 and F3 structures have been interpreted as asymmetric isoclinal structures. The F4 and F5 deformational events overprinted the F2 and F3 events in the form of flexural folding, resulting in the F2 and F3 structures forming open-ended doubly-plunging features. The geological complexity is thus high indicating increased risk.

Orebody Characteristics

The three main lead-zinc deposit types are Carbonate hosted or Mississippi Valley-type (MVT), Sedimentary-exhalative (SEDEX) deposits, deposits and Volcanogenic Massive Sulphide type deposits. MVT deposits account for 24% of the global resources for Pb and Zn. MVT Pb-Zn deposits are high grade lead and zinc deposits that are hosted in soft sedimentary rock like limestone or dolostone, making them particularly easy to mine. Grades in MVT deposits typically range between 4-15 % lead-zinc, where zinc grades are very similar to SEDEX deposits, but lead grades are typically lower. SEDEX deposits account for more than 50% of the world's zinc and lead reserves and account for more than 25% of the world’s production. SEDEX Pb-Zn ores are highly desirable Exploration Targets with high grades, ranging up to as high as 30% Pb+Zn and averaging between 10%-12%. SEDEX deposits are usually associated with significant Ag and minor Cu VMS deposits are also a major global source of lead, zinc, and copper. VMS deposits generally have significantly lower grades compared to SEDEX and MVT deposits. High-grade MVT deposits in the Competent Valuator’s opinion are the most desirable due to being easier to mine, followed by the high-grade SEDEX deposits and then VMS deposits. The Rozynenbosch deposit is classified as a sedimentary exhalative, or SEDEX deposit but mineralisation was later remobilised and tectonically displaced during thrusting of the Hartbees River Thrust event and/or the final stages of northward convergence related to the main Kibaran-aged Namaqua event.

Stage of development The higher the stage of development of a Project the less risk is associated with it due to the improved accuracy of a Project. Rozynenbosch is still in the exploration stage.

Strategic Not a strategic project.

Ability to increase resource

In addition to the Mineral Resource estimates declared above, an Exploration Target exists for Rozynenbosch. The current drilling was focused on a specific block and depth. The geological model developed indicates further extension down-dip which could potentially increase the Mineral Resources. The Exploration Target could also potentially be upgraded to a higher Mineral Resource category adding value.

Political, Social & Environment

According to the Southern African Minerals Environmental, Social and Governance Guideline (“SAMESG”), a high-level analysis of the environmental, social (internal and external) and external political context within which the project is located should be included when reporting on Mineral Resources, highlighting material risks and issues that may affect the project. According to the EMP document supplied by the Client, Rozynenbosch is located in an area surrounded by open veld with no protected areas in close vicinity. Water will be sourced from boreholes and the project is located in excess of 60



m form the nearest open water source. No major environmental issues have been identified with a rehabilitation guarantee in place. The short-term social impact is low, with only 33 people planned to be employed for the prospecting license, and the project exceeding a distance of 1 km to the nearest residential area. In terms of the macro-political environment, the ANC elected Cyril Ramaphosa as its new President in December 2017, who expressed opposition to the Mining Charter III, fostering some positive sentiment in the mining industry. If Ramaphosa’s sentiments are more than politicking, and the ANC leadership build a more efficient, less corrupt administration, investment could be revitalised in the mining industry of South Africa. A significant risk has also emerged from the ANC Elective Conference, in the form of a resolution to amend the Constitution to allow for expropriation of land without compensation. Although this resolution is meant to redress the wrongs of the Apartheid government in relocation of indigenous peoples, the Government has not provided any clarity on how the resolution would be implemented and whom it will affect. The uncertainty could negatively impact on investor confidence. Rozynenbosch should have a low environmental and social impact, and being in remote location with little prospect for farming, it is unlikely to be affected by the expropriation without compensation resolution.

Note: As the valuation parameter increases, the Project value will increase and the risk profile will decrease.


An Independent Competent Person’s Report on the Rozynenbosch Project, Northern Cape Province, South Africa – Mineral Resource &


The analysis above rates Rozynenbosch at a slightly higher risk in comparison to industry criteria and the

unit value was therefore adjusted downward.

8.12.5.1.5 Valuation Summary and Conclusion

Four mineral asset values were calculated for Rozynenbosch using the market approach. The first includes

the current Mineral Resource and the lower estimation of the Exploration Target, while the second includes

the current Mineral Resource and the upper estimation of the Exploration Target. This was done including

and excluding silver content.

It should be noted that although the current Prospecting Right does not encompass silver. The Competent

Person is not aware of another body holding the silver rights over the farm Rozynenbosch 104, and silver is

present in sufficient quantities to be included as a material Mineral Resource and a value placed thereupon.

In addition, a Section 102 application in terms of the MPRDA is currently in preparation to include silver in

the 533 PR. The silver was therefore included in the valuation, with the zinc equivalent values attributed

to the silver content highlighted in the footnotes of the tables following.

Table 28 highlights the expected recoveries and payabilities for determining zinc equivalent grades. These

are based on a similar copper, lead and zinc deposit in Namibia for which metallurgical information and off-

take agreements exist. The recoveries, payabilities and grades were used to determine Zn equivalent grades

as shown in Equation 5 and Equation 6. The zinc equivalent grades were then multiplied by the ore tonnes

to determine the zinc equivalent content in the Mineral Resource.

Table 28: Recoveries and Payabilities used to Calculate Zinc Equivalents

Commodity Recovery Payability

% %

Zinc 80% 85%

Lead 80% 85%

Silver 80% 90%

Equation 5: Zn Eq. Grade for Lead

𝑍𝑛 𝐸𝑞. 𝐺𝑟𝑎𝑑𝑒 = (𝑅𝑒𝑐𝑜𝑣𝑒𝑟𝑦 × 𝑃𝑎𝑦𝑎𝑏𝑖𝑙𝑖𝑡𝑦 × 𝑃𝑟𝑖𝑐𝑒) 𝑃𝑏

(𝑅𝑒𝑐𝑜𝑣𝑒𝑟𝑦 × 𝑃𝑎𝑦𝑎𝑏𝑖𝑙𝑖𝑡𝑦 × 𝑃𝑟𝑖𝑐𝑒)𝑍𝑛

× 𝑃𝑏 𝐺𝑟𝑎𝑑𝑒

Equation 6: Zn Eq. Grade for Silver

𝑍𝑛 𝐸𝑞. 𝐺𝑟𝑎𝑑𝑒 = (𝑅𝑒𝑐𝑜𝑣𝑒𝑟𝑦 × 𝑃𝑎𝑦𝑎𝑏𝑖𝑙𝑖𝑡𝑦 × 𝑃𝑟𝑖𝑐𝑒 ∗ 32.15076/1000) 𝐴𝑔

(𝑅𝑒𝑐𝑜𝑣𝑒𝑟𝑦 × 𝑃𝑎𝑦𝑎𝑏𝑖𝑙𝑖𝑡𝑦 × 𝑃𝑟𝑖𝑐𝑒)𝑍𝑛

× 𝐴𝑔 𝐺𝑟𝑎𝑑𝑒

As Exploration Target grades and tonnes must be expressed in ranges, a lower and upper estimate for the

Exploration Target was determined (Section 0). Two separate valuations were conducted on the lower and

upper estimate respectively. The values excluding the silver equivalent content have also been reported for

clarity.

Valuation Inclusive of Silver

The first valuation of the Rozynenbosch Mineral Resource and Exploration Target (lower estimate) has an

average mineral asset value of USD14.76/t as 100% of the Mineral Resource is in the Inferred Mineral Resource

category. Based on the current Mineral Resource and Exploration Target, the best estimated value of ZAR33

million was calculated.




Table 29: Market Approach Valuation on Rozynenbosch Including Silver (Lower Estimate for Exploration Target)


Category


Grade Zn Equivalent


Value

Mt % USD/t ZARm



Combined 6.7 2.44% 14.76 33.28


Notes:



The second valuation of the Rozynenbosch Mineral Resource and Exploration Target (upper estimate) has an

average asset value of USD13.51/t as 100% of the Mineral Resource is in the Inferred category. Based on the

current Mineral Resource and Exploration Target, the best estimated value of ZAR39 million was calculated.

Table 30: Market Approach Valuation on Rozynenbosch Including Silver (Upper Estimate for Exploration Target)


Category


Grade Zn Equivalent


Value

Mt % USD/t ZARm



Combined 7.5 2.81% 13.51 39.22

Attributable Value at Proposed 70% Ownership 28.71 Notes:



A comparison of transactions similar to the Project was also completed (see Table 31). Transactions include

projects ranging from early exploration stage to projects that are in the development stage, with a number

of operational mines that were closed and require significant additional investment before re-opening. The

values over the total Mineral Resources includes Inferred, Indicated and Measured Mineral Resources and

range from USD11.75/Zn Eq. t to USD44.92/Zn Eq. t. The average values calculated for Rozynenbosch of

USD14.76/Zn Eq. t. and USD13.51/Zn Eq. t is towards the lower end when compared to values of similar

transactions, however the values are in-line with the median of USD14.59/Zn Eq. t.

The reason for the values being towards the lower end of the similar transactions is because Rozynenbosch

has 100% Inferred Mineral Resources and a significantly lower USD/Zn Eq. t value was also attributable to

the Exploration Target. Some of the similar transactions will also require less investment due to already

having some infrastructure in place, demanding a premium in price. Rozynenbosch thus compares closest to

the Coricancha Mine (Peru) transaction of USD11.95/Zn Eq. t.


An Independent Competent Person’s Report on the Rozynenbosch Project, Northern Cape Province, South Africa – Mineral Resource & Mineral Asset Valuation Report 93

Table 31: Transactions of a Similar Nature

Date Buyer Seller Company/Mine Status

Stake Purchase

Price

Total Mineral

Resource

% Inferred

Adjusted Constant

Term Value

% USDm Zn Eq. t % USD/Zn Eq.

Mineral Resource t

01-Jul-09 Metmar Minéro Pering Mine Closed Operation 20% 10.0 425,342 18% 44.92

13-Jul-17 Solitario

Zazu Metals Corporation

Lik Zinc-Lead-Silver Deposit

Early Exploration 50% 16.7 1,274,943 24% 14.59

04-Feb-11 Vedanta Resources

plc Anglo American

Gamsberg and Blackmountain Mines

Early Exploration Stage Project and Operating Mine

74% 346.0 4,712,836 49% 20.94

28-Jul-16 Golden Rim

Herencia Resources

Paguanta Project Advanced Exploration

Stage 70% 2.3 238,541 30% 11.75

26-Jun-11 East China China

Africa Resources plc Weatherly

International plc Berg Aukas Closed Operation 65% 7.7 469,010 0% 21.52

14-Jun-17 Telson Resources and

Reynas Minas Nyrstar NV Campo Morado Mine In Development 100% 20.0 1,773,434 13% 12.74

03-Jul-17 Great Panther Silver

Limited Nyrstar NV Coricancha Mine Closed Operation 100% 10.1 905,876 85% 11.95

Average 19.77

Median 14.59




Valuation Excluding Silver

The third valuation of the Rozynenbosch Mineral Resource and Exploration Target (lower estimate) has an

average mineral asset value of USD13.54/t. Based on the current Mineral Resource and Exploration Target,

excluding silver, the best estimated value of ZAR21 million was calculated. It should be noted that the Inferred

Resource used corresponds with the stated Inferred Resource that excludes silver as per Table 13. The

Exploration Target ore tonnes excluding silver was unchanged from the Exploration Target ore tonnes used

inclusive of silver, with the only change being that the silver content was excluded from the valuation.

The Exploration Target as tabulated in Section 10.2 is presented as a range of values, as required by the

SAMREC Code. As such, the CP has only utilised the lower value of the Exploration Target (3.6 Mt) and the

upper value of the Exploration Target (4.4 Mt) in the valuation as the tonnage figures are only presented as

upside potential that should be investigated further. Minxcon has therefore not re-estimated the Exploration

Target to exclude silver due to the inherent high degree of uncertainty already associated with the Exploration

Target.

Table 32: Market Approach Valuation on Rozynenbosch Excluding Silver (Lower Estimate for Exploration Target)


Category


Grade Zn Equivalent


Value

Mt % USD/t ZARm



Combined 5.4 2.12% 13.54 21.32


Notes:



The fourth valuation of the Rozynenbosch Mineral Resource and Exploration Target (upper estimate) has an

average asset value of USD12.63/t. Based on the current Mineral Resource and Exploration Target, excluding

silver, the best estimated value of ZAR25 million was calculated.

Table 33: Market Approach Valuation on Rozynenbosch Excluding Silver (Upper Estimate for Exploration Target)


Category


Grade Zn Equivalent


Value

Mt % USD/t ZARm



Combined 6.2 2.33% 12.63 25.12


Notes:



8.12.5.2 Cost Approach

The Project is in the exploration stage and therefore the valuator considered the Cost approach, and more

specifically the Multiples of Exploration Expenditure (“MEE”) methodology, as a suitable second method to

determine a range of values. No historical costs associated with the project where available. Minxcon’s

exploration division calculated the replacement costs of the borehole metres drilled and exploration

normally associated with such a project. The historical calculated cost for the exploration of the Project

(as estimated by the competent person) amounted to ZAR26.4 million. The valuator was tentative to only

include historic warranted cost. Warranted future cost can be included, however, warranted future cost




should only be limited to cost that will be incurred in the near future, i.e. the one-year budget of a company,

to avoid reporting inflated values. No budgeted costs were available for use.

Table 34: Rozynenbosch Exploration Expenditure to Date (Estimation)

Capitalised Expenditures Exploration Target Inferred Total

Number of Drillholes (No,) 38 19 57

Drilling Cost (ZAR) 10,135,280 12,706,220 22,841,500

Assaying Cost (ZAR) 684,131 857,670 1,541,801

Geological Mapping Costs (ZAR)

1,000,000 1,000,000 2,000,000

Total (ZAR) 11,819,411 14,563,890 26,383,301

Assumptions: 1. ZAR2,000/m all inclusive. 2. 30% of drill meters sampled for assaying. 3. ZAR450/sample for assaying costs. 4. Four months of mapping.

8.12.5.2.1 Basis of Estimation (Cost Approach)

The cost approach was applied for Rozynenbosch, using the multiples of valuation expenditure methodology.

Table 35 illustrates the Prospectivity rating and Exploration Phase which is used to calculate the PEM. This

matrix was constructed in consultation with Minxcon’s in-house exploration geologists and explains the PEM

factor increase from top left to bottom right for exploration projects based on the two criteria:-

• The first criterion (Exploration Phase) is the magnitude which is determined by the level of

sophistication of the exploration. Value enhancement of a project is dependent on the level of

sophistication of the exploration project, hence adding more clarity on the prospectivity of the

project. However, a project can go through various stages of development, without necessarily adding

value, hence a second criterion is required and that is the knowledge of a geologist on the orebody.

An exploration project does not necessarily go through each stage as illustrated in Table 35. Only the

highest level of exploration phase achieved is taken into consideration for this criterion.

• The second criterion (Prospectivity Rating) is determined by taking into consideration the geologists’

opinion on the potential prospectivity of the orebody. This can include a number of factors including,

but not limited to, the expectation of the potential depth, scale of the project, understanding of the

orebody characteristics of the project area, complexity, possible mining method and expected grades;

therefore, a subjective view gathered by the information available to the Project.

Table 35: Prospectivity Rating and Exploration Phase

EX

PL

OR

AT

ION

PH

AS

E →

PROSPECTIVITY RATING → Low Medium High

Unexplored Prospect 0.00 0.18 0.35 0.53

Greenfields entry and desktop historical literature research

1.00 0.48 0.65 0.83

Reconnaissance and follow-up stream sampling 1.20 0.54 0.71 0.89

Geophysical survey 1.50 0.63 0.80 0.98

Follow-up soil sampling 2.50 0.93 1.10 1.28

Core Drilling 3.00 1.08 1.25 1.43

Historical Mining 3.50 1.23 1.40 1.58

Classification of Inferred Resources 5.00 1.68 1.85 2.03

Classification of Indicated Resources 10.00 3.18 3.35 3.53

Classification of Measured Resources 15.00 4.68 4.85 5.03

The matrix was calculated using a formula based on the exploration phase (30% weighting) and prospectivity

rating (70% weighting). The PEM for the work to complete the Exploration Target and Inferred target is

highlighted in Table 35 above, with the highest category achieved being core drilling and classification of

Inferred Mineral Resources respectively.




The PEM factor calculated for Rozynenbosch based on the above criteria ranges:-

• Exploration Target area: Diamond Drilling was completed in the area but data and information is

not enough for it to be classified as a Mineral Resource. The potential quantity, quality and content,

are conceptual in nature, and there has been insufficient exploration to define a Mineral Resource

and it is uncertain if further exploration could result in the determination of a Mineral Resource

and, hence as Exploration phase it was classified as a 3 (“three”) in Table 35. The PEM therefore

ranges from 1.08 to 1.43; and

• Inferred Mineral Resources area where a Mineral Resource was classified has been rated as an

Exploration Phase 5 and hence the PEM ranges from 1.68 to 2.03.

This PEM is then multiplied by the historical cost.

8.12.5.2.2 Value Based on Cost Approach

This historical value was used in the cost approach to derive a best-estimated full value (not attributable)

of ZAR42 million.

Table 36: Rozynenbosch Project Value (Cost Approach)

Highest Phase of Project

PEM Historical

Cost Low Value Median Value High Value

Low Medium High ZAR million ZAR million

Historical Expenditure

Core Drilling 1.08 1.25 1.43 11.82 12.71 14.77 16.84

Classification of Inferred Mineral Resources

1.68 1.85 2.03 14.56 24.39 26.94 29.49

Total 26.38 37.10 41.71 46.33


The value calculated from the PEMs is higher than the comparative. This is because of the complexity of the

orebody and hence denser drillhole spacing. More importantly, however, is the fact that the Mineral

Resource was classified as Inferred due to the absence of QAQC procedures. The Competent Person mentions

in the Mineral Resource section (Section 7) that part of the Mineral Resource could have been converted to

indicated if the normal procedures existed.

8.12.6 Sources of Information

Other sources used to do the market studies and contracts include:-

• ABSA Bank, 2017. South African Morning Sheet. Accessed via: https://www.absa.co.za/corporate-

and-investment-banking/research/

• Barerra, P., 2017. Lead Outlook 2017: Surplus to Shrink. Investing News Network. Accessed on 7

August 2017. Accessed via: http://investingnews.com/daily/resource-investing/base-metals-

investing/lead-investing/lead-outlook/

• First National Bank, 2017. Accessed via: http://blog.fnb.co.za/category/economics/

• ICSG, 2017. Copper: Preliminary Data for April 2017. Press Release, 20 July, 2017. Accessed on 7

August 2017. Accessed via: http://www.icsg.org/index.php/press-releases/viewcategory/114-

monthly-press-release

• ILZSG, 2017. Press Release, 17 July, 2017. International Lead and Zinc Study Group. Accessed on 7

August 2017. Accessed via:

http://www.ilzsg.org/generic/pages/list.aspx?table=document&ff_aa_document_type=R&from=1

SAMVAL T1.19

https://www.absa.co.za/corporate-and-investment-banking/research/

https://www.absa.co.za/corporate-and-investment-banking/research/

http://investingnews.com/daily/resource-investing/base-metals-investing/lead-investing/lead-outlook/


http://blog.fnb.co.za/category/economics/

http://www.icsg.org/index.php/press-releases/viewcategory/114-monthly-press-release






• Investec (Annabel Bishop), 2017. Week Ahead Articles. Accessed via:

https://www.investec.com/en_za/welcome-to-investec/news-and-views/economic-outlook.html

• Lawrence Devon Smith, Discounted Cash Flow Analysis Methodology and Discount Rates; p10 -11.

• McLeod, 2014. Zinc and Agriculture a Winning Combination. Investing News Network. Accessed on 7


investing/zinc-investing/zinc-and-agriculture-a-winning-combination/Merlin Resources, 2006.

Resource Estimate of the Pb-Ag-Zn-Cu Deposit Located on the Farm Rozynenbosch 104, Kenhardt

District, Northern Cape Province, South Africa. CPR.

• Nedbank, 2017. Monthly Insights. Accessed via:

https://www.nedbank.co.za/content/nedbank/desktop/gt/en/aboutus/economic-

insights/research.html

• Statista, 2017. Global zinc reserves by country 2016. Accessed on 4 August 2017. Accessed via:

https://www.statista.com/statistics/273639/global-zinc-reserves-by-country/

• Statista, 2017. Lead reserves worldwide by country 2016. Accessed on 4 August 2017. Accessed via:

https://www.statista.com/statistics/273652/global-lead-reserves-by-selected-countries/

• World Bank, 2017. Commodity Markets Outlook. Quarterly Report, April 2017, World Bank,

Washington.

• Shlag, S., 2014. Demand for Zinc as Micronutrient in Agriculture Grows as Global Population to

Exceed 9 Billion by 2050, Food Consumption to Increase 70 percent. IHS Markit. Accessed on 7 August

2017. Accessed via: http://news.ihsmarkit.com/press-release/agriculture/demand-zinc-

micronutrient-agriculture-grows-global-population-exceed-9-bil

8.12.7 Range of Values

A range of values was calculated for the comparative valuation by determining an upper and lower range.

The upper and lower ranges were determined by applying an industry acceptable variance to reflect the

confidence for the different resource category estimations. The following input parameters were used with

the lower confidence categories having a wider variance:-

• Inferred Industry Average (USD/t) – 50%; and

• Exploration Target Industry Average (USD/t) – Already accounted for in the range of values

calculated (i.e. upper and lower estimate of the Exploration Target).

In order to evaluate risk, a simulation was developed using a population of 5,000 simulations. This allows

the simulation of random scenarios to determine the effect thereof. The Competent Valuator simulated

various input parameters using a range in which a parameter is expected to vary because of the difference

in confidence levels of the reported categories. This is detailed in Table 37 with the inputs of the Zinc

Equivalent Mineral Resource Classification displayed in USD/t. The Exploration Target range of values will

be the lower Exploration Target value as calculated in Table 29 inclusive of silver and in Table 32 excluding

silver, with the upper Exploration value as calculated in Table 30 inclusive of silver and in Table 33 excluding

silver.

Table 37: Input Ranges

Min Max Current Min Max

Inferred (USD/ZnEq t) 75% 125% 20.26 15.20 25.33

By applying these ranges, a lower and upper value was determined for the total Zinc Equivalent Mineral

Resource model and Exploration Target as displayed in Table 38 and Table 39 inclusive of silver and excluding

silver, respectively. After applying the risk factors described above, a range was calculated for the

comparative approach of between ZAR31 million to ZAR42 million for the model including silver and between


http://investingnews.com/daily/resource-investing/base-metals-investing/zinc-investing/zinc-and-agriculture-a-winning-combination/




http://news.ihsmarkit.com/press-release/agriculture/demand-zinc-micronutrient-agriculture-grows-global-population-exceed-9-bil





ZAR20 million to ZAR27 million for the model excluding silver. The median Exploration Target value was

calculated by taking the average between the lower value and upper value for the Exploration Target.

Table 38: Market Value Derived (Inclusive of Silver)

Mineral Resource Category Lower Value Median Value Upper Value

ZAR million

Inferred 20.28 23.03 25.84

Exploration Target 10.25 13.23 16.20

Combined 30.53 36.25 42.04


Table 39: Market Value Derived (Excluding Silver)

Mineral Resource Category Lower Value Median Value Upper Value

ZAR million

Inferred 11.06 12.58 14.15

Exploration Target 8.74 10.64 12.54

Combined 19.80 23.22 26.69


The Market Approach is based on Mineral Resource results coupled with acquisition information of various

similar operations. The Competent Valuator’s confidence in the Market Approach leads the Competent

Valuator to prefer the results of the Market Approach versus the Cost Approach.

The Competent Valuator derived a final market value, inclusive of silver, of ZAR36 million (ZAR25 million




Table 40: Final Mineral Asset Market Value Range (Inclusive of Silver)


ZAR million


Market Value 30.53 36.25 42.04


The Competent Valuator derived a final market value, excluding silver, of ZAR23 million (ZAR16 million




Table 41: Final Mineral Asset Market Value Range (Excluding Silver)


ZAR million


Final Market Value 19.80 23.22 26.69


8.12.8 Competent Valuator

8.12.8.1 Key Technical Staff

Mr Johannes Scholtz (B Eng Hons (Min.), ASAIMM), Mining Engineer and Valuator, Minxcon. A summary of

Mr Scholtz’s experience is provided in Appendix 3.

SAMVAL T1.0




Mr Johan Odendaal (BSc (Geol.), BSc Hons (Min. Econ.), MSc (Min. Eng.), Pr.Sci.Nat., FSAIMM, MGSSA),

Director at Minxcon, is the Competent Valuator of this Report. His details are provided in Section 8.12.8.3.

8.12.8.2 Competent Valuator’s Relationship to the Issuer

I have no present or prospective interest in the subject property or asset and have no bias with respect to

the assets that are the subject of the Report, or to the parties involved with the assignment. My

compensation, employment or contractual relationship with the Commissioning Entity is not contingent on

any aspect of the Report. All facts presented are correct to the best of the Competent Valuator’s knowledge.

The analyses and conclusions are limited only by the reported forecasts and conditions.

8.12.8.3 Competent Person Signature Page

The certificate of the Competent Valuator is given on the following page.




NJ ODENDAAL

BSc (Geol.), BSc Hons (Min. Econ.), MSc (Min. Eng.)

Pr.Sci.Nat., FSAIMM, MGSSA

CERTIFICATE of COMPETENT VALUATOR - NJ Odendaal

As the author of the report titled An Independent Competent Person’s Report on the Rozynenbosch Project, Northern

Cape Province, South Africa - Mineral Resource & Mineral Asset Valuation Report prepared for Miranda Mineral Holdings

Limited with an effective date of 31 January 2018 (“Report”), I hereby state:-

1. My name is Johan Odendaal and I am a Director of:-

Minxcon (Pty) Ltd

Suite 5, Coldstream Office Park,

2 Coldstream Street,


2. I am a Geoscientist affiliated with the following professional associations, which meet all the attributes of a

Professional Association or a Self-Regulatory Professional Association, as applicable (as those terms are defined in

the SAMREC Code):-

Class Professional Society Year of

Registration

Member Geological Society of South Africa (MGSSA Reg. No. 965119) 2003

Fellow South African Institute of Mining and Metallurgy (FSAIMM Reg. No. 702615) 2003

Professional Natural Scientist

South African Council for Natural Scientific Professions (Pr.Sci.Nat. Reg. No. 400024/04)

2003

3. I graduated with a BSc (Geology) degree from the Rand Afrikaans University in 1985. In addition, I obtained a BSc

Honours (Mineral Economics) from the Rand Afrikaans University in 1986 and an MSc (Mining Engineering) from the

University of the Witwatersrand in 1992.

4. I have worked as a Geoscientist for over 30 years. As a former employee of Merrill Lynch, I was actively involved in

advising mining companies and investment bankers on corporate-related issues, analysing platinum and gold

companies. I have completed a number of valuations on various commodities, including coal, using the valuation

approaches described by the SAMVAL Code.

5. I am a “Competent Person” as defined in the SAMREC Code and a “Competent Valuator” as described by the SAMVAL

Code.

6. I have not undertaken a personal visit to the subject property as a site inspection is not material at this stage of the

Project. I have relied on site visit findings of my colleagues and the Competent Person of this Report, as executed

on 8 March 2018.

7. I am responsible for sections 1, 2, 8, 11-14 of the Report.

8. I am not aware of any material fact or material change with respect to the subject matter of the Report, which is

not reflected in the Report, the omission of which would make the Report misleading.

9. I declare that this Report appropriately reflects the Competent Valuator’s view.

10. I am independent of Miranda Mineral Holdings Limited.

11. I have read the SAMREC Code (2016) and SAMVAL Code (2016) and the Report has been prepared in accordance with

the guidelines of the SAMREC Code and SAMVAL Code.

12. I do not have nor do I expect to receive a direct or indirect interest in the Rozynenbosch Project or Miranda Mineral

Holdings Limited.

13. I hereby give written consent that the valuation report can be published and used for purpose of complying with JSE

Section 12.9 disclosure requirements for Mineral Companies.

14. At the effective date of the Report, to the best of my knowledge, information and belief, the Report contains all

scientific and technical information that is required to be disclosed to make the Report not misleading.

Signed at Little Falls, Roodepoort on 12 March 2018.




8.12.9 Identifiable Component Asset Values

According to the SAMVAL Code, in some valuations the valuation shall be broken down into Identifiable

Component Asset Values (an “ICA” valuation) equalling the Mineral Asset Value. This could be, for example,

due to the requirements of other valuation rules and legislative practices.

An identifiable asset is anything that has commercial or exchange value and can provide future economic

benefits. Identifiable assets can be tangible or intangible. If an asset is deemed to be identifiable, the

purchasing company records it as part of its assets on its balance sheet. If an asset is not deemed to be an

identifiable asset, then its value is considered part of the goodwill amount arising from the acquisition

transaction.

For these Project valuations, no ICA values were included as they are not applicable.

8.12.10 Historic Verification

No historical estimates regarding the adjacent properties have been included in this Report as it is not

relevant to the Project valuation.

8.12.11 Market Studies and Contracts

The suitability of the commodities to the market as well as the market availability is discussed in more

detail in Section 8.5.

8.12.12 Reviews

The Competent Valuator is not aware of any other reviews that were done for this Project.

SAMVAL T1.16

SAMVAL T1.17

SAMVAL T1.18




9 MINERAL RESERVE ESTIMATES

This Report is intended as a Mineral Resource CPR. No Mineral Reserves have been estimated.

SAMREC 5.6 (v) SAMREC 6.1 SAMREC 6.2 SAMREC 6.3 SAMVAL T1.9




10 OTHER RELEVANT DATA AND INFORMATION

10.1 ADJACENT PROPERTIES

There are no similar projects known that are located adjacent to or in the vicinity of Rozynenbosch.

Numerous similar base metal deposits occur across the broader region, however. These include the Salt River

Zn-Cu-Pb-(Ag-Au) deposit located approximately 100 km southwest of Kakamas

(http://www.srr.co.za/salt_river.html) and Black Mountain Zn-Pb-Au-Cu Mine at Aggeneys 170 km west of

Rozynenbosch (http://www.vedanta-zincinternational.com/our-operations/black-mountain). Although the

mineralisation across these projects is similar, they are not indicative of mineralisation at Rozynenbosch.

Rather, they provide support for the geological provinces identified in the region.

10.2 UPSIDE POTENTIAL

Further potential has been identified with regards the historic drilling and is seen as an upside potential. This

Exploration Target is based on historic drilling that occurs further down dip from the Inferred Mineral

Resource.

The target was modelled in a similar manner to the Mineral Resource where a mineralised halo around the

Pb4 (stretch value based on a 1976 USD4 cut-off) was created and using a natural cut-off of 0.5% Pb. These

PB4 values do not represent a full raw assay interception, however they can be used as indication to the grade

distribution and can be used to quantify the target.

Lead and zinc were estimated and a regressed silver value was calculated. The 90% percentile for estimated

values are shown in the Table 42 where a geological loss of 15% has been applied to the tonnages. The

tonnages also represent a 10% variance around the estimated tonnages. It should be noted that when

compared to the Phelps Dodge report, the combined tonnages for the Mineral Resource with the target tonnes,

these compare favourably to the total tonnes declared in 1976.

This Exploration Target potential is stated in Table 42, at a 1% Pb cut-off.

Table 42: Exploration Target Potential at a Cut-off of 1% Pb

Target at a Cut-off at 1% Pb Tonnes Pb Zn Ag

Mt % % g/t

Upper 90 Percentile (Maximum) 4.4 2.25 0.53 36.01

Lower 90 Percentile (Minimum) 3.6 1.95 0.43 18.17

The potential tonnage and grade of the above Exploration Target ranges are conceptual in nature; there is

insufficient exploration data to estimate a Mineral Resource and it is uncertain if further exploration will

result in the estimation of a Mineral Resource.

To prove this potential and possibly upgrade the current Inferred Mineral Resource as presented in this Report,

a series of historic drillhole twinning is suggested. This would include a twinning of 20% of the Inferred Mineral

Resource drillholes (six drillholes) and 20% of the historic drillholes in the target area (four drillholes). An

additional five exploration drillholes are recommended to confirm the geology and grade of the Exploration

Target. Figure 57 shows the historic drilling with the proposed twinning and addition exploration. The

proposed drilling meters for the twinning are approximately 2,200 m and the additional exploration is

approximately 1,700 m.

SAMREC 1.3 (i)

SAMREC 8.1 (i)




Figure 57: Proposed Drillhole Programme for the Twinning and Exploration

Proposed Drillhole Programme for the Twinning and Exploration January 2018

An estimated budget for the drilling was calculated using an all-in drilling cost of ZAR2,000/m, based on

current industry rates for similar projects. The total budget was estimated at ZAR7.8 million, as shown in

Table 43.

Table 43: Estimated Drilling Budget

Drilling Type Rate Length Total Cost

ZAR m ZAR

Twinning 2,000 2,200 4,400,000

Exploration 2,000 1,700 3,400,000

Total - 3,900 7,800,000

Unfortunately, the timing of this drilling is unknown at this stage as the budget is unknown which will be

dependent on fund raising. This drilling could however be completed within three months to six months

depending on the number of drilling rigs utilised during the drilling campaign.

10.3 AUDITS AND REVIEWS

With the exception of the procedures described in Section 6 of this Report, the Competent Person is not

aware of any audits or reviews that have been conducted for any aspect of the Project.

10.4 RISK ASSESSMENT

A risk assessment to consider and quantify risks within the Rozynenbosch Project was conducted by the

Competent Person based on a simplified approach. The result is not designed to be a definitive assessment

of the risks but is rather a tool to articulate and evaluate those risks as identified by persons present at the

risk assessment session.

10.4.1 Risk Assessment Methodology

All items were reviewed and assessed using the risk severity criteria shown below:-

SAMREC 5.7 (i)

SAMREC 7.1 (i)(ii)




• Green – Low risk (score 1-5);

• Yellow – Medium risk (score 6-12);

• Orange - Significant risk (score 13-20); and

• Red – High risk (score greater than 21).

Once a high risk is identified, the project team is required to take remedial action to either resolve or

mitigate the risk. The identification and recording of corrective and remedial measures was beyond the

scope of this particular risk assessment exercise. The risk matrix table is detailed in Table 44.

10.4.2 Risk Assessment Outcome

The outcome of the risk assessment is provided in Table 45. No significant risks have been identified.



Table 44: Minxcon Risk Matrix

1 - Insignificant 2 - Minor 3 – Moderate 4 - Major 5 - Catastrophic

Project ScheduleLess than 1% impact on overall project

timeline

May result in overall project timeline

overrun equal to or more than 1% and

less than 5%


overrun of equal to or more than 5%

and less than 20%



and less than 50%


overrun of 50% or more

CostLess than 1% impact on the budget of

the project

May result in overall project budget

overrun equal to or more than 1% and

less than 5%



and less than 20%



and less than 50%


overrun of 50% or more

NPV Change Less than 1% impact on NPVEqual to or more than 1% to less than

5% change in NPV

Equal to or more than 5% to less than

20% change in NPV

Equal to or more than 20% to less than

50% change in NPVChange in NPV of 50% or more

Quality and Technical IntegrityNo significant impact on quality of

deliverables or effect on production

Quality issues that can be addressed

prior to handover or could affect

production by more than 1% and less

than 5%

Quality issues that can be addressed

during ramp-up or could affect

production by more than 5% and less

than 10%

Quality issues that require significant

intervention to maintain performance

or could affect production by more

than 10% and less than 20%

Quality issues that require significant

intervention to achieve performance or

could affect production by 20% or

more

Safety/HealthFirst aid case / Exposure to minor

health risk

Medical treatment case / Exposure to

major health risk

Lost time injury / Reversible impact on

health

Single fatality or loss of quality of life /

Irreversible impact on health

Multiple fatalities / Impact on health

ultimately fatal

EnvironmentMinimal environmental harm - L1

incident

Material environmental harm - L2

incident remediable short term

Serious environmental harm - L2

incident remediable within LOM

Major environmental harm - L2 incident

remediable post LOM

Extreme environmental harm - L3

incident irreversible

Legal & Regulatory Low level legal issueMinor legal issue; non compliance and

breaches of the law

Serious breach of law;

investigation/report to authority,

prosecution and or moderate penalty

possible

Major breach of the law; considerable

prosecution and penalties

Very considerable penalties and

prosecutions. Multiple law suits and jail

terms

Reputation/Social/CommunitySlight impact - public awareness may

exist but no public concernLimited impact - local public concern

Considerable impact - regional public

concern

National impact - national public

concern

International impact - international

public attention

90% Near Certainty: 90% chanceCannot avoid this risk with standard practices,

probably not able to mitigate.Medium - 11 Significant - 16 Significant - 20 High - 23 High - 25

75% Highly Likely: 75% chanceCannot avoid this risk with standard practices, but

a different approach may work.Medium - 7 Medium - 12 Significant - 17 High - 21 High - 24

50% Possible: 50% chance May avoid risk, but rework will be required. Low - 4 Medium - 8 Significant - 13 Significant - 18 High - 22

25% Unlikely: 25% chanceHave usually avoided this type of risk with minimal

oversight in similar cases.Low - 2 Low - 5 Medium - 9 Significant - 14 Significant - 19

15% Rare: 15% chanceWill effectively avoid this risk based on standard

practices.Low 1 Low - 3 Medium - 6 Medium - 10 Significant - 15

High A high risk exists that management’s objectives may not be achieved. Appropriate mitigation strategy to be devised immediately.

Consequence

Risk Level

Lik

elih

oo

d

Risk Level Guidelines for Risk Matrix

Significant A significant risk exists that management’s objectives may not be achieved. Appropriate mitigation strategy to be devised as soon as possible.

Medium A moderate risk exists that management’s objectives may not be achieved. Appropriate mitigation strategy to be devised as part of the normal management process.

Low A low risk exists that management’s objectives may not be achieved. Monitor risk, no further mitigation required.



Table 45: Risk Assessment

Risk Category Risk Cause of Risk Risk (%)

Likelihood Impact 1 to 5

Risk Rating

Mitigation/Control

Financial Mineral Resource and mineral asset valuation estimates may be reduced.

The Prospecting Right 533 PR does not include silver as a commodity. An application is under preparation to include silver in the PR.

15% 4 Submit the application to the DMR in the prescribed manner.

Mineral Resource/Geology

Database is historical data

The data which forms the basis for the Mineral Resource estimation is historical exploration data from Goldfields and Phelps.

15% 3

The historical database was compiled by reputable mining companies and is assumed to have been conduct to industry best practices at the time. The is also a wealth of good geological information to back the drilling database.




11 INTERPRETATION AND CONCLUSIONS

The following interpretations and conclusions are made by the Competent Person regarding the Project:-

Mineral Resources

• There is a wealth of historical data that has been collated and compiled into a 3D model by the

Minxcon Mineral Resource department.

• The historical data is of sufficient quantity and quality to declare an Inferred Mineral Resource.

• It is the Competent Person’s opinion that if the historical data was more complete, the Inferred

Mineral Resource could be Indicated and that a portion of the Exploration Target could be classified

as an Inferred Mineral Resource.

• The Competent Person has estimated an Inferred Mineral Resource, including silver, of 3.10 Mt at

grades of 2.17% Pb, 0.31% Zn and 36.47 g/t Ag, at a cut-off grade of 1.9% PbEq (including silver),

which has been signed off by the Competent Person.

• The Competent Person has also estimated an Inferred Mineral Resource, excluding silver, of 1.79 Mt

at grades of 2.78% Pb and 0.37% Zn, at a cut-off grade of 1.9% PbEq (excluding silver), which has

been signed off by the Competent Person. This scenario was also necessitated due to the fact that

Miranda does not have the prospecting right for silver as yet but such is under application.

• The Competent Person has also estimated an Exploration Target down dip of the Inferred Mineral

Resource ranging between 3.6 Mt and 4.4 Mt, with grade ranges between 1.95% and 2.25% for Pb,

0.43% and 0.53% for Zn and 18.17 g/t and 36.01 g/t for Ag, which has been signed off by the

Competent Person.

• The mineralised zones are from close to surface and are open ended at depth within the plunge of

the fold.

• The geology of the Rozynenbosch Project lends itself to open pit mining.

Valuation

• The Competent Valuator derived a final market value inclusive of silver of ZAR36 million (ZAR25

million at proposed 70% ownership) for the Rozynenbosch Project with a lower end of ZAR31 million

and upper range of ZAR42 million (ZAR21 million and ZAR29 million respectively at proposed 70%

ownership).

• The Competent Valuator derived a final market value excluding silver of ZAR23 million (ZAR16

million at proposed 70% ownership) for the Rozynenbosch Project with a lower end of ZAR20 million

and upper range of ZAR27 million (ZAR14 million and ZAR19 million respectively at proposed 70%

ownership).

• The average value per Zn Eq. Mineral Resource tonne for Rozynenbosch inclusive of silver is between

USD13.51/Zn Eq. t. and USD14.76/Zn Eq. t, and excluding silver between USD12.63/Zn Eq. t. and

USD13.54/Zn Eq. t, which is towards the lower end compared to other similar operations due to

100% of the Mineral Resources classified as Inferred Mineral Resources. The values are however in-

line with the median value of USD14.59/Zn Eq. t of similar transactions.




12 RECOMMENDATIONS

The following recommendations are made by the Competent Person regarding the Project:-

Mineral Resources

• Further exploration drilling is required to improve the confidence in the Mineral Resource and upgrade

the classifications.

• Future drilling assaying should include the assay for silver to compile a larger database for silver.

• More specific gravity testwork is required if additional drilling is to be completed.

• QAQC needs to be addressed in the future drilling programmes.

• It is imperative that Miranda acquires the prospecting right for silver for the Rozynenbosch Project.

Valuation

• The valuation includes the contribution from silver. It is recommended that the prospecting right

amendment to include silver, which is currently in preparation, is lodged in accordance with all

MPRDA and DMR requirements.




13 REFERENCES

• ABSA Bank, 2017. South African Morning Sheet. Accessed via: https://www.absa.co.za/corporate-

and-investment-banking/research/

• ALB (2017). African Law and Business, South Africa Mining Law 2017. Accessed on 05 May 2017.

Accessed via: https://www.africanlawbusiness.com/publications/mining-law/mining-law-

2017/south-africa/overview#chaptercontent7

• Barerra, P., 2017. Lead Outlook 2017: Surplus to Shrink. Investing News Network. Accessed on 7 August

2017. Accessed via: http://investingnews.com/daily/resource-investing/base-metals-investing/lead-

investing/lead-outlook/

• First National Bank, 2017. Accessed via: http://blog.fnb.co.za/category/economics/




• ILZSG, 2017. Press Release, 17 July, 2017. International Lead and Zinc Study Group. Accessed on 7

August 2017. Accessed via:





• Investec (Annabel Bishop), 2017. Week Ahead Articles. Accessed via:


• McLeod, 2014. Zinc and Agriculture a Winning Combination. Investing News Network. Accessed on 7


investing/zinc-investing/zinc-and-agriculture-a-winning-combination/

• Merlin Resources, 2006. Resource Estimate of the Pb-Ag-Zn-Cu Deposit Located on the Farm

Rozynenbosch 104, Kenhardt District, Northern Cape Province, South Africa. CPR.

• Miningweekly.com (2013). 23rd July 2013. Miranda receives Rozynenbosch prospecting right. Online

news article. Accessed on 05 May 2017. Accessed via:

http://www.miningweekly.com/article/miranda-receives-rozynenbosch-prospecting-right-2013-07-

23

• Mossom, R.J. (2006). Resource Estimate of the Pb-Ag-Zn-Cu Deposit Located on the Farm

Rozynenbosch 104, Kenhardt District, Northern Cape Province, South Africa. Compiled on behalf of

Miranda Minerals (Pty) Ltd. Merlin Resources. 8 August 2006. 45pp.

• Nedbank, 2017. Monthly Insights. Accessed via:

https://www.nedbank.co.za/content/nedbank/desktop/gt/en/aboutus/economic-

insights/research.html

• Pearson, C.V. (1985). Regional Geological Report. Red Hill Mine Ltd. 12 August 1985.

• Phelps Dodge of Africa Limited. (1973). Rozynenbosch, Kenhardt, Gordonia and Prieska Exploration

Monthly Progress Report. July 1973.

• Phelps Dodge of Africa Limited. (1973). Rozynenbosch and Kenhardt Monthly Progress Report. October

1973.

• Shlag, S., 2014. Demand for Zinc as Micronutrient in Agriculture Grows as Global Population to

Exceed 9 Billion by 2050, Food Consumption to Increase 70 percent. IHS Markit. Accessed on 7 August

2017. Accessed via: http://news.ihsmarkit.com/press-release/agriculture/demand-zinc-

micronutrient-agriculture-grows-global-population-exceed-9-bil



http://blog.fnb.co.za/category/economics/













• Southern Geophysical Exploration. (1985). Transient Electromagnetic Survey, Rozynenbosch.

Prepared on behalf of Goldfields South Africa Ltd. November 1985.

• Statista, 2017. Global zinc reserves by country 2016. Accessed on 4 August 2017. Accessed via:


• Statista, 2017. Lead reserves worldwide by country 2016. Accessed on 4 August 2017. Accessed via:


• The Silver Institute & Thomson Reuters, 2017. World Silver Survey 2017. Thomson Reuters, London.

• United States Geological Survey (USGS), 2018. Silver. Accessed on 12 February 2018. Accessed via:

https://minerals.usgs.gov/minerals/pubs/commodity/silver/mcs-2018-silve.pdf.

• United States Geological Survey (USGS), 2018. Lead. Accessed on 12 February 2018. Accessed via:

https://minerals.usgs.gov/minerals/pubs/commodity/lead/mcs-2018-lead.pdf.

• United States Geological Survey (USGS), 2018. Lead. Accessed on 12 February 2018. Accessed via:

https://minerals.usgs.gov/minerals/pubs/commodity/zinc/mcs-2018-zinc.pdf.

• World Bank, 2017. Commodity Markets Outlook. Quarterly Report, April 2017, World Bank,

Washington.



https://minerals.usgs.gov/minerals/pubs/commodity/silver/mcs-2018-silve.pdf




14 APPENDICES

Appendix 1: Glossary of Terms

The following terms are used in this Report:-

Term Definition

Amphibolite Granular metamorphic rock consisting mainly of hornblende and plagioclase.

Arkose Detrital sandstone sedimentary rock, with at least 25% feldspar. Quartz is commonly the dominant mineral component, and some mica is often present.

Assay laboratory A facility in which the proportions of metal in ores or concentrates are determined using analytical techniques.

Biotite Black sheet silicate mineral with chemical formula K(Mg,Fe); 3(AlSi; 3O; 10)(F,OH); 2.

Charnockite Orthopyroxene-bearing quartz-feldspar rock, composed mainly of quartz, perthite or antiperthite and orthopyroxene formed at high temperature and pressure.

Diamond drilling An exploration drilling method, where the rock is cut with a diamond drilling bit, usually to extract core samples.

Dip The angle that a structural surface, i.e. a bedding or fault plane, makes with the horizontal. It is measured perpendicular to the strike of the structure.

Discounted Cash Flow (DCF)

In finance, discounted cash flow analysis is a method of valuing a project, company, or asset using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values – the sum of all future cash flows, both incoming and outgoing, is the net present value (NPV), which is taken as the value or price of the cash flows in question.

Exploration Prospecting, sampling, mapping, diamond drilling and other work involved in the search for mineralisation.

Facies The features that characterise rock as having been emplaced, metamorphosed or deposited in a sedimentary fashion, under specific condition. In the case of sediment host deposits, this infers deposition within a particular depositional environment.

Faulting The process of fracturing that produces a displacement within, of across lithologies.

Feldspar Tectosilicate mineral of pink, white, grey, brown colour with the chemical formula LiAlSi3O8 – NaAlSi3O8 – CaAl2Si2O8.

Gneiss Metamorphic rock with a banded or foliated structure, typically coarse-grained and consisting mainly of feldspar, quartz, and mica.

Grade The quantity of metal per unit mass of ore expressed as a percentage or, for gold, as grams per tonne of ore.

Granite Granular, crystalline, igneous rock consisting mainly of quartz, mica, and feldspar.

Igneous Relating to or involving volcanic or plutonic processes.

In situ In place, i.e. within unbroken rock.

Indicated Mineral Resource

An “Indicated Mineral Resource” is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on information from exploration, sampling and testing of material gathered from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological or grade continuity but are spaced closely enough for continuity to be assumed (SAMREC definition).

Inferred Mineral Resource

An “Inferred Mineral Resource‟ is that part of a Mineral Resource for which volume or tonnage, grade and mineral content can be estimated with only a low level of confidence. It is inferred from geological evidence and sampling and assumed but not verified geologically or through analysis of grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited in scope or of uncertain quality and reliability (SAMREC definition).

Kriging An estimation method that minimises the estimation error between data points in determining mineral resources. Kriging is the best linear unbiased estimator of a mineral resource.

Leucocratic Light-coloured igneous rock that are relatively poor in mafic minerals.

Lithology The general compositional characteristics of rocks.

Marble Crystalline metamorphic form of limestone.

Metamorphic Relating to rock that has been transformed under heat and pressure.

Metapelite Metamorphosed fine-grained sedimentary rock.

Mineral Reserve

A Mineral Reserve is the economically mineable material derived from a Measured or Indicated Mineral Resource or both. It includes diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a Pre-Feasibility Study for a project and a Life of Mine Plan for




Term Definition

an operation must have been completed, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors). Such modifying factors must be disclosed (SAMREC definition). Mineral reserves are reported as general indicators of the life of mineral deposits. Changes in reserves generally reflect:

i. development of additional reserves; ii. depletion of existing reserves through production; iii. actual mining experience; and iv. price forecasts.

Grades of mineral reserve actually processed from time to time may be different from stated reserve grades because of geologic variation in different areas mined, mining dilution, losses in processing and other factors. Neither reserves nor projections of future operations should be interpreted as assurances of the economic life of mineral deposits or of the profitability of future operations.

Mineral Resource

A Mineral Resource is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilised organic material including base and precious metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.

Mineralisation The presence of a target mineral in a mass of host rock.

Mineralised area Any mass of host rock in which minerals of potential commercial value occur.

Net Present Value (NPV)

The difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyse the profitability of an investment or project.

Ore A mixture of valuable and worthless minerals from which at least one of the minerals can be mined and processed at an economic profit.

Orebody A continuous well-defined mass of material of sufficient ore content to make extraction economically feasible.

Outcrop The exposure of rock on surface.

Pegmatite Coarsely crystalline igneous rock with crystals several centimetres in length.

Quartz Siliceous mineral with chemical formula SiO2.

Rehabilitation

The process of restoring mined land to a condition approximating to a greater or lesser degree its original state. Reclamation standards are determined by the South African Department of Mineral and Energy Affairs and address ground and surface water, topsoil, final slope gradients, waste handling and re-vegetation issues.

Sampling Taking small pieces of rock at intervals along exposed mineralisation for assay (to determine the mineral content).

Schist Coarse-grained metamorphic rock consisting of layers of different minerals and can be split into thin irregular plates.

Sedimentary Formed by the deposition of solid fragmental material that originates from weathering of rocks and is transported from a source to a site of deposition.

Shear Zone Structural planar discontinuity that forms in response to high strain.

Stratigraphic A term describing the chronological sequence in which bedded rocks occur that can usually be correlated between different localities.

Tonnage Quantities where the tonne is an appropriate unit of measure. Typically used to measure reserves of gold-bearing material in situ or quantities of ore and waste material mined, transported or milled.

Tuff Rock comprised of volcanic ash.

Unconformity A surface within a package of sedimentary rocks which may be parallel to or at an angle with overlying or underlying rocks, and which represents a period of erosion or non-deposition, or both.




Appendix 2: Abbreviations

The following acronyms and abbreviations are used in this Report:-

Item Description

533 PR SNC 30/5/1/1/2/0533 PR

Ag Silver

amsl Above Mean Sea Level

BEE Black Economic Empowerment

BoSZ Boven Rugzeer Shear Zone

CPR Competent Persons’ Report

Cu Copper

DCF Discounted Cash Flow

DME Department of Minerals and Energy

DMR Department of Mineral Resources

DT Dabep Fault

EIA Environmental Impact Assessment

EMP Environmental Management Programme

GFSA Goldfields South Africa

HDSAs Historically Disadvantaged South Africans

HRZ Hartbees River Thrust

IAP Interested and Affected Parties

ID2 Inverse Distance Squared

JV Joint Venture

Minxcon Minxcon (Pty) Ltd

Miranda, Company or Client


MME Multiples of Exploration Expenditure

MPRDA Minerals and Petroleum Resources Development Act, 2002 (Act No 28 of 2002)

MPTRO Mineral and Petroleum Titles Registration Office

NMC Namaqua-Natal Metamorphic Complex

NPV Net Present Value

NSZ Neusspruit Shear Zone

OES One Environmental System

Pb Lead

PEM Prospectivity Enhancement Multiplier

Phelps Dodge Phelps Dodge Corporation

PPP Public Participation Processes

PR Prospecting Right

PV Photovoltaic (cells)

QAQC Quality Assurance and Quality Control

Report An Independent Competent Person’s Report on the Rozynenbosch Project, Northern Cape Province, South Africa - Mineral Resource Report prepared for Miranda Mineral Holdings Limited with an effective date of 31 January 2018

SAMESG Southern African Minerals Environmental, Social and Governance Guideline

SAMREC Code South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (2016 Edition)

SAMVAL Code South African Code for the Reporting of Mineral Asset Valuation (2016 Edition)

SEDEX Sedimentary Exhalative Deposit

SLP Social and Labour Plan

TSZ Trooilapspan Shear Zone

USD United States Dollar

ZAR South African Rand

Zn Zinc




Appendix 3: Compliance Statement, Certificate of Competence and Key Technical Staff

The information in this Report that relates to Exploration Results and Mineral Resources are based on

information compiled by Mr Uwe Engelmann, a Competent Person who is registered with SACNASP and is a

Member of the GSSA included in a list of recognised organisations promulgated by the SSC from time to time.

Mr Uwe Engelmann is a full-time employee of Minxcon (Pty) Ltd.

Mr Uwe Engelmann has sufficient experience that is relevant to the style of mineralisation and type of

deposit under consideration and to the activity being undertaken to qualify as a Competent Person as

defined in the 2016 of the South African Code for Reporting of Exploration Results, Mineral Resources and

Ore Reserves. Mr Uwe Engelmann consents to the inclusion in the Report of the matters based on his

information in the form and context in which it appears.

SAMREC 9.1 (i)(ii)(iii)




CERTIFICATE of COMPETENT PERSON – U Engelmann

As the author of the report titled An Independent Competent Person’s Report on the Rozynenbosch Project, Northern

Cape Province, South Africa - Mineral Resource & Mineral Asset Valuation Report prepared for Miranda Mineral Holdings

Limited with an effective date of 31 January 2018 (“Report”), I hereby state:-

1. My name is Uwe Engelmann and I am Director of:-

Minxcon (Pty) Ltd

Suite 5, Coldstream Office Park,

2 Coldstream Street,


2. I am a Geologist affiliated with the following professional associations, which meet all the attributes of a Professional

Association or a Self-Regulatory Professional Association, as applicable (as those terms are defined in the SAMREC

Code):-

Class Professional Society Year of

Registration

Member Geological Society of South Africa (MGSSA No. 966310) 2010

Professional Natural Scientist

South African Council for Natural Scientific Professions (Pr.Sci.Nat. Reg. No. 400058/08)

2008

3. I graduated with a BSc Honours (Geology) degree from the University of the Witwatersrand in 1991.

4. I have more than 20 years’ experience in the mining and exploration industry. This includes eight years as an Ore

Resource Manager at the Randfontein Estates Projects on the West Rand. I have completed a number of assessments

and technical reports pertaining to various commodities, including lead, zinc, copper and silver deposits, using

approaches described by the SAMREC Code.

5. I am a “Competent Person” as defined in the SAMREC Code.

6. I undertook a personal inspection of the property on 8 March 2018 to confirm the state of the land.

7. I am responsible for sections 1-7, 8.1-8.4, 8.6-8.10, 9-14 of the Report.

8. I am not aware of any material fact or material change with respect to the subject matter of the Report, which is

not reflected in the Report, the omission of which would make the Report misleading.

9. I declare that this Report appropriately reflects the Competent Person’s/author view.

10. I am independent of Miranda Mineral Holdings Limited.

11. I have read the SAMREC Code (2016) and the Report has been prepared in accordance with the guidelines of the

SAMREC Code.

12. I do not have nor do I expect to receive a direct or indirect interest in the Rozynenbosch Project or Miranda Mineral

Holdings Limited.

13. At the effective date of the Report, to the best of my knowledge, information and belief, the Report contains all

scientific and technical information that is required to be disclosed to make the Report not misleading.

Signed at Little Falls, Roodepoort on 12 March 2018.

U ENGELMANN

BSc (Zoo. & Bot.), BSc Hons (Geol.)

Pr.Sci.Nat., MGSSA




Key Technical Staff

Mr Uwe Engelmann (Director, Minxcon): BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat. (Reg. No.

400058/08), MGSSA (Reg. No. 966310).

Uwe Engelmann has gained over 20 years’ experience in the mining and exploration industry working for

various mining companies in South Africa. During this time he was involved in research in Antarctica, held

various geological positions as well as an Ore Resource Manager for eight years where he was involved in the

production and exploration on the shafts, strategic planning, ore resources and reserves as well as the daily

management of the shafts. He has been heading up the exploration division of Minxcon Exploration (formerly

Agere Project Management) since 2007 where he has been involved in most aspects of exploration,

predominantly in Africa, in a wide range of commodities including gold, platinum, copper, coal, manganese,

chrome and iron ore.

Mr Johan Odendaal (Director, Minxcon): BSc (Geol.), BSc Hons (Min. Econ.), MSc (Min. Eng.), Pr.Sci.Nat.

(Reg. No. 400024/04), FSAIMM (Reg. No. 702615), MGSSA (Reg. No. 965119).

Johan Odendaal has over 30 years’ experience in the mining and financial industry. This includes 12 years

as independent mining consultant specialising in the valuation of Mining Projects and 12 years as a mining

analyst at two major stockbroking firms and investment bank. During this time he was rated one of the top

platinum and gold mining analysts and became a globally recognised industry specialist in a various

commodities. Regular contact with the mining, corporate and investment community allowed him to build

an extensive network of contacts around the globe specialising in valuation of mining companies. He

commands a wide range of knowledge on both local and international mining companies. As a former

employee of a Global Investment Bank, he was actively involved in Financial Analysis and advising mining

companies and investment bankers on corporate mining transactions. Johan has a vast experience in

fundamental analysis of commodity markets. His experience with regard to Mineral Asset Valuations,

Concept Studies, Competent Persons Reports, Due Diligence and Technical Reports includes precious metals,

ferrous and non-ferrous metals, coal, diamonds and a number of minor metals and commodities. Johan also

serves on the JSE Issuer Regulation Advisory Committee and SAMVAL Working Group.

Mr Paul Obermeyer (Mineral Resource Manager, Minxcon): BSc Hons (Geol.), Pr.Sci.Nat. (Reg. No.

400114/06).

Paul has over 20 years’ experience in the mining industry, where he has gained extensive experience in data

processing and ore body modelling using Datamine™, and the fields of sedimentology, stratigraphy, gold

exploration and QAQC. He has been involved in projects with commodities such as of gold, platinum, coal

and base metals. He was a Chief Geologist on one of South Africa’s most complex mines for four years. He

has worked in a production environment for 13 years, as well as in exploration. Owing to his experience,

Paul is also well-equipped to conduct due diligence exercises on operations for different commodities and

to conduct audits.

Mr Laurence Hope (Senior Resource Geologist, Minxcon): NHD (Econ. Geol.), Pr.Sci.Nat. (Reg. No. 200010/11).

Laurence has been involved in the mining industry for over 25 years in both production and consulting. As a

geologist, he has held managerial level positions for over 12 years, leading teams in numerous work

environments. He has extensive experience of over 18 years in 3D geological modeling and Mineral Resource

estimation for a variety of deposit types, including coal, gold and PGEs. He is proficient in many geological

modeling software programs, including Vulcan, Surpac, Datamine, Micromine and Leapfrog3D. He has




worked as a production geologist on a variety of mines and conducted exploration programmes in the field.

As a consultant, a main function of his career has been in mine database management and QAQC.

Miss Maria Antoniades (Geologist, Minxcon): BSc Hons (Geol.), Cand.Sci.Nat. (Reg. No. 114426), MGSSA.

Maria has six years’ experience in the minerals industry. She started her career as a mineral projects analyst,

where she gained experience in the assessment of mineral projects across a variety of commodities. She has

worked as a sole in-house geologist, setting up company standards and assessing geological terrains. She

currently undertakes geological interpretations, editing and mining project co-ordination. She is actively

involved in the compilation of technical documentation in compliance with the main reporting codes

requirements and performs reviews of various mining and exploration projects to indicate their viability.

Her mineral experience includes gold, diamonds, platinum, building materials, heavy mineral sands and oil

and gas.

Mr Sherlock Rathogwa (Exploration Geologist, Minxcon): BSc (Geol. & Math.), BSc Hons (Geol.), MGSSA.

Sherlock has over six years’ experience in the mining industry. He graduated with a B.Sc. in Geology and

Mathematics from the University of Johannesburg in 2008. In 2009 he obtained his B.Sc. Honours in Geology

from the University of Johannesburg. His experience includes extensive field exploration geology in a wide

range of minerals and geological settings, GIS application in geology, 3D geological modelling. Sherlock has

gained excellent proficiency in geological field work as well as the associated and relevant office work. He

has worked on drilling projects where he monitored and supervised diamond drilling campaigns. His

commodity experience includes gold, coal, platinum, chrome and manganese.

Mr. Johannes Scholtz (Mining Engineer and Valuator, Minxcon): BEng Hons (Min. Eng.), ASAIMM.

Johannes joined the team of Mining Engineers at the financial side at Minxcon in August 2017. He is currently

working on a wide range of projects involved in market research, mine operating cost and capital cost

evaluation and financial estimations. Johannes completed his Honours Degree in mining engineering in 2015,

specialising in mineral economics and has since worked as a mining researcher. Research projects included

both technical and market research topics for the MHSC and private companies.

AM Deiss (Associate Geologist): BSc Hons (Geol.), Pr.Sci.Nat., SAIMM.

André has 22 years’ experience in geology and geostatistics and has worked for numerous large South African

and International mining companies as a geologist. Acting in a consulting capacity he has provided geological

and geostatistical services to mining companies in Southern and Eastern Africa, Europe, Asia, USA and

Australia, and has been active in a wide scope of commodities in the minerals extraction industry. He has

accumulated valuable experience in geological modelling, Mineral Resource estimation and auditing,

technical reporting, seismic interpretation, mine planning, geological mapping, drill hole core logging,

geological standards and procedures, QAQC protocols set-up, database administration and coaching.

Mr Julian Knight (Senior Process Engineer, Minxcon): B Eng (Chem.), B Eng Hons (MOT), Pr.Eng. (Reg. No. 20150289), MSAIMM.

Julian is a process engineer with eight years of experience in process control and optimisation as well as

project management of platinum and base metals commercial projects. Furthermore, Julian has an R&D

background in process control in the PGM and BM industries. He is currently responsible for leading process

engineering work with his skills directed at the metallurgical discipline in all projects that involve processing

or refining. He is currently working on a wide range of projects in various commodities, including gold, coal,

platinum, manganese and fluorspar, amongst others.




Appendix 4: Drillhole Collar

BHID Easting Northing Elevation EOH Azimuth Dip

Year Phase Hartebeeshoek94/WG21 m m ° °

RB1 -20728 -3216837 751 210 0 -90 1973 Phase 1

RB10 -20741 -3216927 769 61 0 -90 1973 Phase 1

RB11 -20647 -3217061 754 163 0 -90 1973 Phase 1

RB12 -20715 -3216874 766 285 0 -90 1973 Phase 1

RB13 -20404 -3216802 700 304 0 -90 1973 Phase 1

RB14 -20661 -3217023 761 196 0 -90 1973 Phase 1

RB15 -20577 -3217249 780 136 0 -90 1973 Phase 1

RB16 -20675 -3216983 771 200 0 -90 1973 Phase 1

RB17 -20689 -3216945 778 228 0 -90 1973 Phase 1

RB18 -20742 -3216799 745 278 0 -90 1973 Phase 1

RB19 -20617 -3216795 758 277 0 -90 1973 Phase 1

RB2 -20704 -3216903 772 127 0 -90 1973 Phase 1

RB20 -20756 -3216761 744 263 0 -90 1973 Phase 1

RB21 -20223 -3216948 700 245 0 -90 1973 Phase 1

RB22 -20632 -3216756 758 201 0 -90 1973 Phase 1

RB23 -20542 -3216765 700 155 0 -90 1973 Phase 1

RB24 -20589 -3216871 775 255 0 -90 1973 Phase 1

RB25 -20534 -3216676 756 216 0 -90 1973 Phase 1

RB26 -20435 -3216599 744 231 0 -90 1973 Phase 1

RB27 -20504 -3216753 764 112 0 -90 1973 Phase 1

RB28 -20520 -3216714 761 117 0 -90 1973 Phase 1

RB29 -20547 -3216640 752 211 0 -90 1973 Phase 1

RB3 -20580 -3216780 758 109 0 -90 1973 Phase 1

RB30 -20559 -3216727 762 16 0 -90 1973 Phase 1

RB31 -20495 -3216662 700 31 0 -90 1973 Phase 1

RB32 -20449 -3216563 742 236 0 -90 1973 Phase 1

RB33 -20365 -3216444 748 220 0 -90 1973 Phase 1

RB34 -20463 -3216524 739 335 0 -90 1973 Phase 1

RB35 -20476 -3216485 738 193 0 -90 1973 Phase 1

RB36 -20324 -3216215 739 169 0 -90 1973 Phase 1

RB37 -20393 -3216370 752 358 0 -90 1973 Phase 1

RB38 -20310 -3216253 741 203 0 -90 1973 Phase 1

RB39 -20237 -3216102 700 261 0 -90 1973 Phase 1

RB4 -20474 -3216613 746 350 0 -90 1973 Phase 1

RB40 -20338 -3216176 737 169 0 -90 1973 Phase 1

RB41 -20267 -3216026 700 350 0 -90 1973 Phase 1

RB42 -20353 -3216137 734 190 0 -90 1973 Phase 1

RB43 -20927 -3216992 765 150 0 -90 1973 Phase 1

RB44 -20941 -3216952 760 168 0 -90 1973 Phase 1

RB45 -20856 -3216840 763 163 0 -90 1973 Phase 1

RB46 -20801 -3216988 782 Unknown 0 -90 1973 Phase 1

RB47 -20882 -3216765 754 226 0 -90 1973 Phase 1

RB48 -20828 -3216916 776 170 0 -90 1973 Phase 1

RB49 -20841 -3216878 770 Unknown 0 -90 1973 Phase 1

RB5 -20603 -3216833 766 62 0 -90 1973 Phase 1

RB50 -20770 -3216723 742 Unknown 0 -90 1973 Phase 1

RB51 -20815 -3216950 780 105 0 -90 1973 Phase 1

RB52 -20870 -3217146 774 12 0 -90 1973 Phase 1

RB53 -20759 -3217104 765 54 0 -90 1973 Phase 1

RB54 -20798 -3216649 737 304 0 -90 1973 Phase 1

RB55 -20365 -3216104 731 330 0 -90 1973 Phase 1

RB56 -20394 -3216026 730 324 0 -90 1973 Phase 1




BHID Easting Northing Elevation EOH Azimuth Dip

Year Phase Hartebeeshoek94/WG21 m m ° °

RB57 -20294 -3216291 741 395 0 -90 1973 Phase 1

RB58 -20604 -3216487 736 370 0 -90 1973 Phase 1

RB59 -20687 -3216605 746 281 0 -90 1973 Phase 1

RB6 -20923 -3217120 700 66 0 -90 1973 Phase 1

RB60 -20504 -3216412 742 321 0 -90 1973 Phase 1

RB61 -20422 -3216978 747 Unknown 0 -90 1984/1985 Phase 2

RB62 -20475 -3216833 766 Unknown 0 -90 1984/1985 Phase 2

RB63 -20491 -3216791 766 Unknown 0 -90 1984/1985 Phase 2

RB64 -20531 -3216337 740 Unknown 0 -90 1984/1985 Phase 2

RB65 -20285 -3216200 700 Unknown 0 -90 1984/1985 Phase 2

RB66 -20253 -3216403 748 Unknown 0 -90 1984/1985 Phase 2

RB67 -20673 -3216299 731 Unknown 0 -90 1984/1985 Phase 2

RB68 -20587 -3216186 731 Unknown 0 -90 1984/1985 Phase 2

RB7 -20643 -3216847 757 69 0 -90 1973 Phase 1

RB8 -20680 -3216860 763 72 0 -90 1973 Phase 1

RB9 -20912 -3217033 771 117 0 -90 1973 Phase 1



Appendix 5: Checklists: JSE Listings Requirements, SAMREC Compliance, SAMVAL Compliance

JSE SECTION 12.9 LISTING REQUIREMENTS

Section 12.9 JSE Contents Report Section

12.9 A Competent Person's Report must comply with the SAMREC and SAMVAL Codes and must:- -

(a) Have an effective date (being the date at which the contents of the Competent Person's Report are valid) less than six months prior to the date of publication of the pre-listing statement, listing particulars, prospectus or Category 1 circular.

1.1

(b) Be updated prior to publication of the pre-listing statement, listing particulars, prospectus or Category 1 circular if further material data becomes available after the effective date.

-

(c) If the Competent Person is not independent of the issuer, clearly disclose the nature of the relationship or interest. 1.2

(d) Show the particular paragraph of this section, the SAMREC Code (including Table 1) and SAMVAL Code complied with in the margin of Competent Person's Report. Throughout document; 1.1

(e) Contain a paragraph stating that all requirements of this section, the SAMREC Code (including Table 1) and SAMVAL Code have been complied with, or state that certain clauses were not applicable and provide a list of such clauses; and

1.1

Include a statement detailing: -

(i) exploration expenditure incurred to date by the applicant issuer and by other parties, where available; 6.11

(ii) planned exploration expenditure that has been committed, but not yet incurred, by the applicant issuer concerned; and 6.11

(iii) planned exploration expenditure that has not been committed to by the applicant issuer but which is expected to be incurred sometime in the future, in sufficient detail to fairly present future expectations;

6.11

(f) Contain a valuation section which must be completed and signed off by a Competent Valuator in terms of and in compliance with the SAMVAL Code; 8.12

(g) Be published in full on the applicant issuer's website; -

(h) Be included in the relevant JSE document either in full or as an executive summary. The executive summary must be approved by the JSE (after approval by the Readers Panel) at the same time as the Competent Person's Report is approved by the JSE and the Readers Panel. The executive summary should be a concise summary of the Competent Person's Report and must cover, at a minimum, where applicable:

Executive Summary

(i) purpose;

(ii) project outline;

(iii) location map indicating area of interest;

(iv) legal aspects and tenure, including any disputes, risks or impediments;

(v) geological setting description;

(vi) exploration programme and budget;

(vii) brief description of individual Key modifying factors;

(viii) brief description of key environmental issues;

(ix) Mineral Resource and Mineral Reserve Statement;

(x) reference to risk paragraph in the full Competent Person's Report;

(xi) statement by the Competent Person that the summary is a true reflection of the full Competent Person's Report; and

(xii) summary valuation table. Where the cash flow approach has been employed, the valuation summary must include the discount rate(s) applied to calculate the NPV(s) (net present value(s)) per share with reference to the specific paragraph in the Competent Person's Report. If inferred resources are used. Show the summary valuation with and without inclusion of such inferred resources.

JSE 12.4 (c)



SAMREC 2016 TABLE 1 COMPLIANCE CHECKLIST

SAMREC TABLE 1 Exploration Results Mineral Resources Mineral Reserves Report Section

Section 1: Project Outline

1.1 Property Description

(i) Brief description of the scope of project (i.e. whether in preliminary sampling, advanced exploration, scoping, pre-feasibility, or feasibility phase, Life of Mine plan for an ongoing mining operation or closure).

2.1

(ii) Describe (noting any conditions that may affect possible prospecting/mining activities) topography, elevation, drainage, fauna and flora and vegetation, the means and ease of access to the property, the proximity of the property to a population centre, and the nature of transport, the climate, known associated climatic risks and the length of the operating season and to the extent relevant to the mineral project, the sufficiency of surface rights for mining operations including the availability and sources of power, water, mining personnel, potential tailings storage areas, potential waste disposal areas, heap leach pad areas, and potential processing plant sites.

3

(iii) Specify the details of the personal inspection on the property by each CP or, if applicable, the reason why a personal inspection has not been completed.

1.5

1.2 Location (i) Description of location and map (country, province, and closest town/city, coordinate systems and ranges, etc.). 2.2

(ii) Country Profile: describe information pertaining to the project host country that is pertinent to the project, including relevant applicable legislation, environmental and social context etc. Assess, at a high level, relevant technical, environmental, social, economic, political and other key risks.

2.3

(iii) Provide a general topo-cadastral map. Provide a topo-cadastral map in sufficient detail to support the assessment of eventual economics. State the known associated climatic risks.

Provide a detailed topo-cadastral map. Confirm that applicable aerial surveys have been checked with ground controls and surveys, particularly in areas of rugged terrain, dense vegetation or high altitude.

2.2

1.3 Adjacent Properties

(i) Discuss details of relevant adjacent properties If adjacent or nearby properties have an important bearing on the report, then their location and common mineralised structures should be included on the maps. Reference all information used from other sources.

10.1

1.4 History (i) State historical background to the project and adjacent areas concerned, including known results of previous exploration and mining activities (type, amount, quantity and development work), previous ownership and changes thereto.

4.1, 4.2

(ii) Present details of previous successes or failures with reasons why the project may now be considered potentially economic. 4.1, 4.2

(iii) Discuss known or existing historical Mineral Resource estimates and performance statistics on actual production for past and current operations.

4.3

(iv) Discuss known or existing historical Mineral Reserve estimates and performance statistics on actual production for past and current operations.

4.4

1.5 Legal Aspects and Permitting

Confirm the legal tenure to the satisfaction of the Competent Person, including a description of the following:- -

(i) Discuss the nature of the issuer's rights (e.g. prospecting and/or mining) and the right to use the surface of the properties to which these rights relate. Disclose the date of expiry and other relevant details.

2.4.2, 2.4.3

(ii) Present the principal terms and conditions of all existing agreements, and details of those still to be obtained, (such as, but not limited to, concessions, partnerships, joint ventures, access rights, leases, historical and cultural sites, wilderness or national park and environmental settings, royalties, consents, permission, permits or authorisations).

2.4.4, 2.4.8

(iii) Present the security of the tenure held at the time of reporting or that is reasonably expected to be granted in the future along with any known impediments to obtaining the right to operate in the area. State details of applications that have been made.

2.4.2, 2.4.9

(iv) Provide a statement of any legal proceedings for example; land claims that may have an influence on the rights to prospect or mine for minerals, or an appropriate negative statement.

2.4.8

(v) Provide a statement relating to governmental/statutory requirements and permits as may be required, have been applied for, approved or can be reasonably be expected to be obtained.

2.4.5

1.6 Royalties (i) Describe the royalties that are payable in respect of each property. 2.5




1.7 Liabilities (i) Describe any liabilities, including rehabilitation guarantees that are pertinent to the project. Provide a description of the rehabilitation liability, including, but not limited to, legislative requirements, assumptions and limitations.

2.5

Section 2: Geological Setting, Deposit, Mineralisation

2.1 Geological Setting, Deposit, Mineralisation

(i) Describe the regional geology. 5.1

(ii) Describe the project geology including deposit type, geological setting and style of mineralisation. 5.1.3, 5.2, 5.3

(iii) Discuss the geological model or concepts being applied in the investigation and on the basis of which the exploration program is planned. Describe the inferences made from this model.

5.4

(iv) Discuss data density, distribution and reliability and whether the quality and quantity of information are sufficient to support statements, made or inferred, concerning the Exploration Target or Mineralisation.

5.4

(v) Discuss the significant minerals present in the deposit, their frequency, size and other characteristics. Includes minor and gangue minerals where these will have an effect on the processing steps. Indicate the variability of each important mineral within the deposit.

5.3

(vi) Describe the significant mineralised zones encountered on the property, including a summary of the surrounding rock types, relevant geological controls, and the length, width, depth, and continuity of the mineralisation, together with a description of the type, character, and distribution of the mineralisation.

5.1.3

(vii) Confirm that reliable geological models and / or maps and cross sections that support interpretations exist. 5.4

Section 3: Exploration and Drilling, Sampling Techniques and Data

3.1 Exploration (i) Describe the data acquisition or exploration techniques and the nature, level of detail, and confidence in the geological data used (i.e. geological observations, remote sensing results, stratigraphy, lithology, structure, alteration, mineralisation, hydrology, geophysical, geochemical, petrography, mineralogy, geochronology, bulk density, potential deleterious or contaminating substances, geotechnical and rock characteristics, moisture content, bulk samples etc.). Confirm that data sets include all relevant metadata, such as unique sample number, sample mass, collection date, spatial location etc.

6

(ii) Identify and comment on the primary data elements (observation and measurements) used for the project and describe the management and verification of these data or the database. This should describe the following relevant processes: acquisition (capture or transfer), validation, integration, control, storage, retrieval and backup processes. It is assumed that data are stored digitally but hand-printed tables with well-organized data and information may also constitute a database.

6.8

(iii) Acknowledge and appraise data from other parties and reference all data and information used from other sources. 6

(iv) Clearly distinguish between data / information from the property under discussion and that derived from surrounding properties. 6

(v) Describe the survey methods, techniques and expected accuracies of data. Specify the grid system used. 6

(vi) Discuss whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the estimation procedure(s) and classifications applied.

6

(vii) Present representative models and / or maps and cross sections or other two or three dimensional illustrations of results, showing location of samples, accurate drill-hole collar positions, down-hole surveys, exploration pits, underground workings, relevant geological data, etc.

6

(viii) Report the relationships between mineralisation widths and intercept lengths are particularly important, the geometry of the mineralisation with respect to the drill hole angle. If it is not known and only the down-hole lengths are reported, confirm it with a clear statement to this effect (e.g. 'down-hole length, true width not known').

6.5

3.2 Drilling Techniques

(i) Present the type of drilling undertaken (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Banka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

6.5.1

(ii) Describe whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, technical studies, mining studies and metallurgical studies.

6.5.2

(iii) Describe whether logging is qualitative or quantitative in nature; indicate if core photography, (or costean, channel, etc.) was undertaken. 6.5.2

(iv) Present the total length and percentage of the relevant intersections logged. 6.6

(v) Results of any downhole surveys of the drill hole to be discussed. 6.5.3




3.3 Sample method, collection, capture and storage

(i) Describe the nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

6.7.1

(ii) Describe the sampling processes, including sub-sampling stages to maximize representivity of samples. This should include whether sample sizes are appropriate to the grain size of the material being sampled. Indicate whether sample compositing has been applied.

6.7.1

(iii) Appropriately describe each data set (e.g. geology, grade, density, quality, diamond breakage, geo-metallurgical characteristics etc.), sample type, sample-size selection and collection methods

6.7.1

(iv) Report the geometry of the mineralisation with respect to the drill-hole angle. State whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. State if the intersection angle is not known and only the downhole lengths are reported.

6.7.1

(v) Describe retention policy and storage of physical samples (e.g. core, sample reject, etc.). 6.7.1

(vi) Describe the method of recording and assessing core and chip sample recoveries and results assessed, measures taken to maximise sample recovery and ensure representative nature of the samples and whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

6.7.1

(vii) If a drill-core sample is taken, state whether it was split or sawn and whether quarter, half or full core was submitted for analysis. If a non-core sample, state whether the sample was riffled, tube sampled, rotary split etc. and whether it was sampled wet or dry.

6.7.1

3.4 Sample Preparation and Analysis

(i) Identify the laboratory(s) and state the accreditation status and Registration Number of the laboratory or provide a statement that the laboratories are not accredited.

6.7.2.1

(ii) Identify the analytical method. Discuss the nature, quality and appropriateness of the assaying and laboratory processes and procedures used and whether the technique is considered partial or total.

6.7.22

(iii) Describe the process and method used for sample preparation, sub-sampling and size reduction, and likelihood of inadequate or non-representative samples (i.e. improper size reduction, contamination, screen sizes, granulometry, mass balance, etc.).

6.7.2.2

3.5 Sampling Governance

(i) Discuss the governance of the sampling campaign and process, to ensure quality and representivity of samples and data, such as sample recovery, high grading, selective losses or contamination, core/hole diameter, internal and external QA/QC, and any other factors that may have resulted in or identified sample bias.

6.7.3.1

(ii) Describe the measures taken to ensure sample security and the Chain of Custody. 6.7.3.2

(iii) Describe the validation procedures used to ensure the integrity of the data, e.g. transcription, input or other errors, between its initial collection and its future use for modelling (e.g. geology, grade, density, etc.).

6.7.3.3

(iv) Describe the audit process and frequency (including dates of these audits) and disclose any material risks identified. 6.7.3.4

3.6 Quality Control/Quality Assurance

(i) Demonstrate that adequate field sampling process verification techniques (QAQC) have been applied, e.g. the level of duplicates, blanks, reference material standards, process audits, analysis, etc. If indirect methods of measurement were used (e.g. geophysical methods), these should be described, with attention given to the confidence of interpretation.

6.7.4

3.7 Bulk Density (i) Describe the method of bulk density determination with reference to the frequency of measurements, the size, nature and representativeness of the samples.

6.7.5.1

(ii) If target tonnage ranges are reported state the preliminary estimates or basis of assumptions made for bulk density. 6.7.5.1

(iii) Discuss the representivity of bulk density samples of the material for which a grade range is reported. 6.7.5.2

(iv) Discuss the adequacy of the methods of bulk density determination for bulk material with special reference to accounting for void spaces (vugs, porosity etc.), moisture and differences between rock and alteration zones within the deposit.

6.7.5.3

3.8 Bulk-Sampling and/or trial-mining

(i) Indicate the location of individual samples (including map). 6.7.6

(ii) Describe the size of samples, spacing/density of samples recovered and whether sample sizes and distribution are appropriate to the grain size of the material being sampled.

6.7.6

(iii) Describe the method of mining and treatment. 6.7.6

(iv) Indicate the degree to which the samples are representative of the various types and styles of mineralisation and the mineral deposit as a whole. 6.7.6

Section 4: Estimation and Reporting of Exploration Results and Mineral Resources




4.1 Geological model and interpretation

(i) Describe the geological model, construction technique and assumptions that forms the basis for the Exploration Results or Mineral Resource estimate. Discuss the sufficiency of data density to assure continuity of mineralisation and geology and provide an adequate basis for the estimation and classification procedures applied.

5.4

(ii) Describe the nature, detail and reliability of geological information with which lithological, structural, mineralogical, alteration or other geological, geotechnical and geo-metallurgical characteristics were recorded.

5.4

(iii) Describe any obvious geological, mining, metallurgical, environmental, social, infrastructural, legal and economic factors that could have a significant effect on the prospects of any possible Exploration Target or deposit.

5.4

(iv) Discuss all known geological data that could materially influence the estimated quantity and quality of the Mineral Resource.

6

(v) Discuss whether consideration was given to alternative interpretations or models and their possible effect (or potential risk) if any, on the Mineral Resource estimate.

5.4

(vi) Discuss geological discounts (e.g. magnitude, per reef, domain, etc.), applied in the model, whether applied to mineralised and / or un-mineralised material (e.g. potholes, faults, dykes, etc.).

5.4

4.2 Estimation and modelling techniques

(i) Describe in detail the estimation techniques and assumptions used to determine the grade and tonnage ranges.

7.1

(ii) Discuss the nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values (cutting or capping), compositing (including by length and/or density), domaining, sample spacing, estimation unit size (block size), selective mining units, interpolation parameters and maximum distance of extrapolation from data points.

7.1

(iii) Describe assumptions and justification of correlations made between variables. 7.1

(iv) Provide details of any relevant specialized computer program (software) used, with the version number, together with the estimation parameters used.

7.1

(v) State the processes of checking and validation, the comparison of model information to sample data and use of reconciliation data, and whether the Mineral Resource estimate takes account of such information.

7.1

(vi) Describe the assumptions made regarding the estimation of any co-products, by-products or deleterious elements.

7.4

4.3 Reasonable and realistic prospects for eventual economic extraction

(i) Disclose and discuss the geological parameters. These would include (but not be limited to) volume / tonnage, grade and value / quality estimates, cut-off grades, strip ratios, upper- and lower- screen sizes.

7.3

(ii) Disclose and discuss the engineering parameters. These would include mining method, dilution, processing, geotechnical, geohydraulic and metallurgical) parameters.

7.3

(iii) Disclose and discuss the infrastructural including, but not limited to, power, water, site-access. 7.3

(iv) Disclose and discuss the legal, governmental, permitting, statutory parameters. 7.3

(v) Disclose and discuss the environmental and social (or community) parameters. 7.3

(vi) Disclose and discuss the marketing parameters. 7.3

(vii) Disclose and discuss the economic assumptions and parameters. These factors will include, but not limited to, commodity prices and potential capital and operating costs.

7.3

(viii) Discuss any material risks. 7.3

(ix) Discuss the parameters used to support the concept of "eventual". 7.3




4.4 Classification Criteria

(i) Describe and justify criteria and methods used as the basis for the classification of the Mineral Resources into varying confidence categories.

7.2

4.5 Reporting (i) Discuss the reported low and high-grades and widths together with their spatial location to avoid misleading the reporting of Exploration Results, Mineral Resources or Mineral Reserves.

7.1

(ii) Discuss whether the reported grades are regional averages or if they are selected individual samples taken from the property under discussion. 7.5

(iii) State assumptions regarding mining methods, infrastructure, metallurgy, environmental and social parameters. State and discuss where no mining related assumptions have been made.

7.5

(iv) State the specific quantities and grades / qualities which are being reported in ranges and/or widths, and explain the basis of the reporting.

7.5

(v) Present the detail for example open pit, underground, residue stockpile, remnants, tailings, and existing pillars or other sources in the Mineral Resource statement.

7.5

(vi) Present a reconciliation with any previous Mineral Resource estimates. Where appropriate, report and comment on any historic trends (e.g. global bias).

7.6

(vii) Present the defined reference point for the tonnages and grades reported as Mineral Resources. State the reference point if the point is where the run of mine material is delivered to the processing plant. It is important that, in all situations where the reference point is different, such as for a saleable product, a clarifying statement is included to ensure that the reader is fully informed as to what is being reported.

7.5

(viii) If the CP is relying on a report, opinion, or statement of another expert who is not a CP, disclose the date, title, and author of the report, opinion, or statement, the qualifications of the other expert and why it is reasonable for the CP to rely on the other expert, any significant risks and any steps the CP took to verify the information provided.

1.6

(ix) State the basis of equivalent metal formulae, if applied. -

Section 5: Technical Studies

5.1 Introduction (i)

Technical Studies are not applicable to Exploration Results.

State the level of study - whether scoping, prefeasibility, feasibility or ongoing Life of Mine.

State the level of study - whether prefeasibility, feasibility or ongoing Life of Mine. The Code requires that a study to at least a Pre-Feasibility level has been undertaken to convert Mineral Resource to Mineral Reserve. Such studies will have been carried out and will include a mine plan or production schedule that is technically achievable and economically viable, and that all Modifying Factors have been considered.

8.1.1

(ii) Provide a summary table of the Modifying Factors used to convert the Mineral Resource to Mineral Reserve for Prefeasibility, Feasibility or on-going life-of-mine studies.

8.1.2




5.2 Mining Design (i)


State assumptions regarding mining methods and parameters when estimating Mineral Resources or explain where no mining assumptions have been made.

7.4

(ii) State and justify all modifying factors and assumptions made regarding mining methods, minimum mining dimensions (or pit shell) and internal and, if applicable, external) mining dilution and mining losses used for the techno-economic study and signed-off, such as mining method, mine design criteria, infrastructure, capacities, production schedule, mining efficiencies, grade control, geotechnical and hydrological considerations, closure plans, and personnel requirements.

8.1.2

(iii) State what mineral resource models have been used in the study.

8.3

(iv) Explain the basis of (the adopted) cut-off grade(s) or quality parameters applied. Include metal equivalents if relevant.

8.3

(v) Description and justification of mining method(s) to be used.

8.3

(vi) For open-pit mines, include a discussion of pit slopes, slope stability, and strip ratio.

8.3

(vii) For underground mines, discussion of mining method, geotechnical considerations, mine design characteristics, and ventilation/cooling requirements.

8.3

(viii) Discussion of mining rate, equipment selected, grade control methods, geotechnical and hydrogeological considerations, health and safety of the workforce, staffing requirements, dilution, and recovery.

8.3

(ix) State the optimisation methods used in planning, list of constraints (practicality, plant, access, exposed Mineral Reserves, stripped Mineral Reserves, bottlenecks, draw control).

8.3

5.3 Metallurgical and Testwork

(i)


Discuss the source of the sample and the techniques to obtain the sample, laboratory and metallurgical testing techniques.

N/A

(ii) Explain the basis for assumptions or predictions regarding metallurgical amenability and any preliminary mineralogical test work already carried out.

N/A

(iii) Discuss the possible processing methods and any processing factors that could have a material effect on the likelihood of eventual

Describe and justify the processing method(s) to be used, equipment, plant capacity, efficiencies, and personnel requirements.

8.4




economic extraction. Discuss the appropriateness of the processing methods to the style of mineralisation.

(iv) Discuss the nature, amount and representativeness of metallurgical test work undertaken and the recovery factors used. A detailed flow sheet / diagram and a mass balance should exist especially for multi-product operations from which the saleable materials are priced for different chemical and physical characteristics.

N/A

(v) State what assumptions or allowances have been made for deleterious elements and the existence of any bulk-sample or pilot-scale test work and the degree to which such samples are representative of the orebody as a whole.

N/A

(vi) State whether the metallurgical process is well-tested technology or novel in nature.

8.4

5.4 Infrastructure (i)


Comment regarding the current state of infrastructure or the ease with which the infrastructure can be provided or accessed.

3.3

(ii) Report in sufficient detail to demonstrate that the necessary facilities have been allowed for (which may include, but not be limited to, processing plant, tailings dam, leaching facilities, waste dumps, road, rail or port facilities, water and power supply, offices, housing, security, resource sterilisation testing etc.). Provide detailed maps showing locations of facilities.

3.5

(iii) Statement showing that all necessary logistics have been considered.

3.5

5.5 Environmental and Social

(i)


Confirm that the company holding the tenement has addressed the host country environmental legal compliance requirements and any mandatory and/or voluntary standards or guidelines to which it subscribes.

2.4.4, 8.6

(ii) Identify the necessary permits that will be required and their status and where not yet obtained, confirm that there is a reasonable basis to believe that all permits required for the project will be obtained.

2.4.4

(iii) Identify and discuss any sensitive areas that may affect the project as well as any other environmental factors including l&AP and/or studies that could have a material effect on the likelihood of eventual economic extraction. Discuss possible means of mitigation.

8.6

(iv) Identify any legislated social management programmes that may be required and discuss the content and status of these.

8.9

(v) Outline and quantify the material socio-economic and cultural impacts that need to be mitigated, and their mitigation measures and where appropriate the associated costs.

8.9




5.6 Market Studies and Economic criteria

(i)


Describe the valuable and potentially valuable product(s) including suitability of products, co-products and by products to market.

8.5.1

(ii) Describe product to be sold, customer specifications, testing, and acceptance requirements. Discuss whether there exists a ready market for the product and whether contracts for the sale of the product are in place or expected to be readily obtained. Present price and volume forecasts and the basis for the forecast.

8.5.1

(iii) State and describe all economic criteria that have been used for the study such as capital and operating costs, exchange rates, revenue / price curves, royalties, cut-off grades, reserve pay limits.

8.12

(iv) Summary description, source and confidence of method used to estimate the commodity price/value profiles used for cut-off grade calculation, economic analysis and project valuation, including applicable taxes, inflation indices, discount rate and exchange rates.

N/A

(v) Present the details of the point of reference for the tonnages and grades reported as Mineral Reserves (e.g. material delivered to the processing facility or saleable product(s)). It is important that, in any situation where the reference point is different, a clarifying statement is included to ensure that the reader is fully informed as to what is being reported.

9.1

(vi) Justify assumptions made concerning production cost including transportation, treatment, penalties, exchange rates, marketing and other costs. Provide details of allowances that are made for the content of deleterious elements and the cost of penalties.

N/A

(vii) Provide details of allowances made for royalties payable, both to Government and private.

N/A

(viii) State type, extent and condition of plant and equipment that is significant to the existing operation(s).

N/A

(ix) Provide details of all environmental, social and labour costs considered.

N/A

5.7 Risk Analysis (i) Technical Studies are not applicable to Exploration Results.

Report an assessment of technical, environmental, social, economic, political and other key risks to the project. Describe actions that will be taken to mitigate and/or manage the identified risks.

10.4




5.8 Economic Analysis

(i)

Technical Studies are not applicable to Exploration Results

At the relevant level (Scoping Study, Pre-feasibility, Feasibility or on-going Life-of Mine), provide an economic analysis for the project that includes:-

8.12

(ii) Cash Flow forecast on an annual basis using Mineral Reserves or an annual production schedule for the life of the project.

8.12

(iii) A discussion of net present value (NPV), internal rate of return (IRR) and payback period of capital.

8.12

(iv) Sensitivity or other analysis using variants in commodity price, grade, capital and operating costs, or other significant parameters, as appropriate and discuss the impact of the results.

8.12

Section 6: Estimation and Reporting of Mineral Reserves

6.1 Estimation and modelling techniques

(i) Describe the Mineral Resource estimate used as a basis for the conversion to a Mineral Reserve. 9.1

(ii) Report the Mineral Reserve Statement with sufficient detail indicating if the mining is open pit or underground plus the source and type of mineralisation, domain or ore body, surface dumps, stockpiles and all other sources.

9.1

(iii) Provide a reconciliation reporting historic reliability of the performance parameters, assumptions and modifying factors including a comparison with the previous Reserve quantity and qualities, if available. Where appropriate, report and comment on any historic trends (e.g. global bias).

9.1

6.2 Classification Criteria

(i) Describe and justify criteria and methods used as the basis for the classification of the Mineral Reserves into varying confidence categories, based on the Mineral Resource category, and including consideration of the confidence in all the modifying factors.

N/A

6.3 Reporting (i) Discuss the proportion of Probable Mineral Reserves, which have been derived from Measured Mineral Resources (if any), including the reason(s) therefore.

N/A

(ii) Present details of for example open pit, underground, residue stockpile, remnants, tailings, and existing pillars or other sources in respect of the Mineral Reserve statement.

N/A

(iii) Present the details of the defined reference point for the Mineral Reserves. State where the reference point is the point where the run of mine material is delivered to the processing plant. It is important that, in all situations where the reference point is different, such as for a saleable product, a clarifying statement is included to ensure that the reader is fully informed as to what is being reported. State clearly whether the tonnages and grades reported for Mineral Reserves are in respect of material delivered to the plant or after recovery.

N/A




(iv) Present a reconciliation with the previous Mineral Reserve estimates. Where appropriate, report and comment on any historic trends (e.g. global bias).

N/A

(v) Only Measured and Indicated Mineral Resources can be considered for inclusion in the Mineral Reserve.

N/A

(vi) State whether the Mineral Resources are inclusive or exclusive of Mineral Reserves.

N/A

Section 7: Audits and Reviews

7.1 Audits and Reviews

(i) State type of review/audit (e.g. independent, external), area (e.g. laboratory, drilling, data, environmental compliance etc), date and name of the reviewer(s) together with their recognized professional qualifications.

10.3

(ii) Disclose the conclusions of relevant audits or reviews. Note where significant deficiencies and remedial actions are required. 10.3

Section 8: Other Relevant Information

8.1 (i) Discuss all other relevant and material information not discussed elsewhere. 10

Section 9: Qualification of Competent Person(s) and other key technical staff. Date and Signature Page

9.1 (i) State the full name, registration number and name of the professional body or RPO, for all the Competent Person(s). State the relevant experience of the Competent Person(s) and other key technical staff who prepared and are responsible for the Public Report.

Appendix 3

(ii) State the Competent Person's relationship to the issuer of the report. Appendix 3

(iii) Provide the Certificate of the Competent Person (Appendix 2), including the date of sign-off and the effective date, in the Public Report. Appendix 3



SAMVAL 2016 TABLE 1 COMPLIANCE CHECKLIST

Criteria Comments Report Section

T1.0 General The Valuation Report shall contain: The signature of the CV; The CV's qualifications and experience in valuing mineral properties, or relevant valuation experience; A statement that all facts presented in the report are correct to the best of the CVs knowledge; A statement that the analyses and conclusions are limited only by the reported forecasts and conditions; A statement of the CV's present or prospective interest in the subject property or asset; A statement that the CV's compensation, employment, or contractual relationship with the Commissioning Entity is not contingent on any aspect of the Report; A statement that the CV has no bias with respect to the assets that are the subject of the Report, or to the parties involved with the assignment; A statement that the CV has (or has not) made a personal inspection of the property; and A record of the CP's and experts who have contributed to the valuation. Written consent to use and rely on such Reports shall be obtained. Significant contributions made by such experts shall be highlighted individually.

8.12.9

T1.1 Illustrations There are numerous instances (especially in the non-listed environment) when a valuation is not accompanied by the CPR on which it is based. In these cases, especially, diagrams/illustrations are required and shall be in the required format. Diagrams, maps, plans, sections, and illustrations shall be legible and prepared at an appropriate scale to distinguish important features. Maps shall be dated and include a legend, author or information source, coordinate system and datum, a scale in bar or grid form, and an arrow indicating north. A location or index map and more detailed maps showing all important features described in the text, including all relevant cadastral and other infrastructure features, shall be included.

(Throughout document)

T1.2 Synopsis Provide the salient features of the report - a brief description of the terms of reference, scope of work, the Valuation Date, the mineral property; its location, ownership, geology, and mineralization; history of exploration and production, current status, Exploration Targets, mineralization and/or production forecast, Mineral Resources and Mineral Reserves, production facilities (if any); environmental, social, legal, and permitting considerations; valuation approaches and methods, valuation, and conclusions.

1-7, 8.12.1

T1.3 Introduction and Scope

Introduction and scope, specifying commissioning instructions including reference to the valuation, engagement letter, date, purpose and intended use of the valuation. The CV shall fully disclose any interests in the Mineral Asset or Commissioning Entity. Any restrictions on scope and special instructions followed by the C V, and how these affect the reliability of the valuation, shall be disclosed.

1.1, 8.12.1

T1.4 Compliance A statement that the report complies with SAMVAL shall be included. Any variations shall be described and discussed. 1.1

T1.5 Identity, Tenure and Infrastructure

The identity, tenure, associated infrastructure and locations of the property interests, rights or securities to be valued {i.e. the physical, legal, and economic characteristics of the property) shall be disclosed. 2

T1.6 History History of activities, results, and operations to date shall be included. 4

T1.7 Geological Setting

Geological setting, models, and mineralization shall be described. 5

T1.8 Exploration Results and Exploration Targets

Exploration programmes, their location, results, interpretation, and significance shall be described. Exploration Targets shall be discussed. 6

T1.9 Mineral Resources and Mineral Reserves

Mineral Resource and Mineral Reserve statements shall be provided. They shall be signed off by a Competent Person in compliance with the SAMREC Code or another CRIRSCO code. The CV shall set out the manner in which he has satisfied himself that he can rely upon the information in the CPR.

7.5, 9



Criteria Comments Report Section

T1.10 Modifying Factors and Key Assumptions

A statement of Modifying Factors shall be included, separately summarizing material issues relating to each applicable Modifying Factor. The CV shall set out the manner in which he has satisfied himself that he can rely upon the technical information provided. (NOTE: All the Modifying Factors shall be listed, or references provided to relevant definitions). This shall include an explanation of all material assumptions and limiting factors. When reporting on environmental, social and governance modifying factors, reference should be made to the ESG reporting parameters as required by the Southern African Minerals Environmental. Social and Governance Guideline (SAMESG) or other recognised code, e.g. Equator Principles.

8.12.5.1.4

T1.11 Previous Valuations

The valuation shall refer to all available and relevant previous valuations of the Mineral Asset that have been performed in at least the previous two years, and explain any material differences between these and the present valuation. 8.12.2

T1.12 Valuation Approaches and Methods

The valuation approaches and methods used in the valuation shall be described and justified in full. 8.12.3

T1.13 Valuation Date

A statement detailing the Report Date and the Valuation Date, as defined in this Code, and whether any material changes have occurred between the Valuation Date and the Report Date. 8.12.4

T1.14 Valuation Results

For the Income Approach, the valuation cash flow shall be disclosed. For the Market Approach, the market comparable information shall be disclosed. For the Cost Approach, the relevant and applicable cost shall be disclosed. 8.12.5

T1.15 Valuation Summary and Conclusions

A summary of the valuation details, consolidated into single material line items, shall be provided. The Mineral Asset Valuation shall specify the key risks and forecasts used in the valuation. A cautionary statement concerning all forward-looking or forecast statements shall be included. The valuation's conclusions, illustrating a range of values, the best estimate value for each valuation, and whether the conclusions are qualified or subject to any restrictions imposed on the CV, shall be included.

8.12.5

T1.16 Identifiable Component Asset (ICA) Values

In some valuations, the valuation shall be broken down into Identifiable Component Asset Values (an ICA valuation) equalling the Mineral Asset Value. This could be. for example, due to the requirements of other valuation rules and legislative practices including taxation (i.e. fixed property, plant, and equipment relative to Mineral Asset Value allocations such as in recoupment or capital gains tax calculations or where a commissioned Mineral Asset Valuation specifies a need for a breakdown of the Mineral Asset Valuation). In such cases, the separate allocations of value shall be made by taking account of the value of every separately identifiable component asset Allocation of value to only some, and not all identifiable component assets is not allowed. This requires a specialist appraisal of each identifiable component asset of property, plant and equipment, with the 'remaining' value of the Mineral Asset being attributed to the Mineral Resources and Reserves. Such valuations shall be performed by suitably qualified experts, who may include the CV. If the Mineral Asset Valuation includes an ICA Valuation, the CV shall satisfy himself or herself that the ICA Valuation is reasonable before signing off the Mineral Asset Valuation.

8.12.9

T1.17 Historic Verification

A historic verification of the performance parameters on which the Mineral Asset Valuation is based shall be presented. 8.12.10

T1.18 Market Assessment

A comprehensive market assessment should be presented. 8.5, 8.12.11

T1.19 Sources of Information

The sources of all material information and data used in the report shall be disclosed, as well as references to any published or unpublished technical papers used in the valuation, subject to confidentiality. A reference shall be made to any other report that has been compiled, for the purpose of providing information for the valuation, including SAMREC-compliant reports and any other contributions or reports from experts.

8.12.6

Miranda Mineral Holdings Limited - AngloGold › downloads › cpr-rozyn... · Rozynenbosch is held...

Documents

Transcript of Miranda Mineral Holdings Limited - AngloGold › downloads › cpr-rozyn... · Rozynenbosch is held...