South-Africa SAMREC2009 PDF

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the South African Mineral Codes

AS AMENDED JULY 2009
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THE SOUTH AFRICAN CODE FOR THE REPORTING OF EXPLORATION RESULTS,

MINERAL RESOURCES AND MINERAL RESERVES
(THE SAMREC CODE)
2007 EDITION
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THE SOUTH AFRICAN CODE FOR THE

REPORTING OF MINERAL ASSET VALUATION
(THE SAMVAL CODE)
2008 EDITION
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Contents
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Glossary of terms.....................................2
Glossary of terms...................................64
Foreword.................................................4
Foreword...............................................68
Introduction.............................................5
Introduction...........................................68
Scope......................................................5
Scope....................................................69
Competence and responsibility................9
Competence and responsibility..............71
Reporting terminology.............................9
Valuation fundamentals, approaches and

methods................................................73
Reporting general..................................11
Reporting of exploration results.............11
Reporting of mineral resources...............12
Reporting of mineral reserves.................17
Reporting of coal exploration results, coal
resources and coal reserves ...................21
Reporting of diamond exploration results,
diamond resources and
diamond reserves...................................25
Table 1:
Checklist and guideline
of reporting and assessment criteria.......28
Table 2:
Mineral asset valuation: reporting and
assessment criteria.................................75
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t h e S o ut h A f r i ca n M i n e ra l C ode s
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THE SOUTH AFRICAN CODE FOR THE

REPORTING OF EXPLORATION RESULTS,
MINERAL RESOURCES
AND MINERAL RESERVES
(THE SAMREC CODE)
2007 EDITION
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as amended July 2009
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Prepared by:
The South African Mineral Resource Committee (SAMREC) Working Group
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GLOSSARY OF TERMS
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The terms set out below shall, unless the context otherwise indicates, apply in relation
to this Code.
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The Companies Act
The Companies Act No 61 of the Republic of South Africa

of 1973, as amended or any law that may wholly or in part
replace it from time to time.
Dilution /
Contamination
Waste material that is mined during the course of mining

operations and thereby forms part of the Reserve
Discard and Reject

Coal
Discard and Reject Coal are coal or carbonaceous material

resulting from mining or coal processing operations with
quality parameters that place it outside the current range of
saleable coals.
Economically
Mineable
Extraction of the Mineral Reserve has been demonstrated to

be viable and justifiable under a defined set of realistically
assumed modifying factors.
Feasibility Study
A comprehensive design and costing study of the selected

option for the development of a mineral project in which
appropriate assessments have been made of realistically
assumed geological, mining, metallurgical, economic,
marketing, legal, environmental, social, governmental,
engineering, operational and all other modifying factors,
which are considered in sufficient detail to demonstrate at
the time of reporting that extraction is reasonably justified
(economically mineable) and the factors reasonably serve
as the basis for a final decision by a proponent or financial
institution to proceed with, or finance, the development of
the project. The overall confidence of the study should be
stated.
Life of Mine Plan
A design and costing study of an existing operation in which

appropriate assessments have been made of realistically
assumed geological, mining, metallurgical, economic,
marketing, legal, environmental, social, governmental,
engineering, operational and all other modifying factors,
which are considered in sufficient detail to demonstrate at
the time of reporting that extraction is reasonably justified.
Licence, Permit,
Lease or similar
entitlement
Any form of licence, permit or lease, including new- or oldorder rights or other entitlement granted by the relevant
Government in accordance with its mining legislation that
confers on the holder certain rights to explore for or extract
minerals (or both) that might be contained in the designated
area. Alternatively, any form of title that may prove
ownership of the minerals.
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Mineable
Those parts of the ore body, both economic and uneconomic,

that can be extracted during the normal course of mining.
Mine Design
A framework of mining components and processes taking

into account such aspects as mining methods used, access to
the ore body, personnel and material handling, ventilation,
water, power, and other technical requirements, such that
mine planning can be undertaken.
Mine Planning
Production planning and scheduling, within the Mine Design,

taking into account such aspects as geological structures and
mineralization and associated infrastructure and constraints.
Modifying Factors
Modifying Factors include mining, metallurgical, economic,

marketing, legal, environmental, social and governmental
considerations.
Ore Reserves
Although the term Mineral Reserve is used throughout

this Code, it is recognized that the term Ore Reserve is
still in general use. For the purposes of reporting under
the SAMREC Code, these terms are considered to be
synonymous.
Pre-feasibility Study
A comprehensive study of the viability of a range of options

for a mineral project that has advanced to a stage at which
the preferred mining method in the case of underground
mining or the pit configuration in the case of an open pit
has been established and an effective method of mineral
processing has been determined. It includes a financial
analysis based on realistic assumptions of technical,
engineering, operating, economic factors and the evaluation
of other relevant factors that are sufficient for a Competent
Person, acting reasonably, to determine if all or part of the
Mineral Resource may be classified as a Mineral Reserve.
The overall confidence of the study should be stated. A
Pre-feasibility Study is at a lower confidence level than a
Feasibility Study.
ROPO
A Recognized Overseas Professional Organization. A ROPO

must:
1. Be a self-regulatory organization covering professionals in
mining or exploration or both;
2. Admit members primarily on the basis of their academic
qualifications and experience;
3. Require compliance with the professional standards of
competence and ethics established by the organization;
4. Have disciplinary powers, including the power to suspend
or expel a member; and
5. Have been accepted by SSC Committee as a ROPO on
behalf of the JSE Limited
SAMREC
The South African Mineral Resource Committee
SAMVAL Committee
South African Mineral Asset Valuation Committee
SSC Committee
The SAMREC/SAMVAL Committee
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FOREWORD
1. The SOUTH AFRICAN CODE FOR THE REPORTING OF EXPLORATION RESULTS,

MINERAL RESOURCES AND MINERAL RESERVES (the SAMREC Code, or the
Code) sets out minimum standards, recommendations and guidelines for Public
Reporting of Exploration Results, Mineral Resources and Mineral Reserves in South
Africa. It has been drawn up by the Working Group of the SSC Committee under
the joint auspices of the Southern African Institute of Mining and Metallurgy
(SAIMM) and the Geological Society of South Africa (GSSA). The SSC consists of
representatives of the SAIMM, the GSSA, the South African Council for Natural
Scientific Professions (SACNASP), the Geostatistical Association of South Africa
(GASA), the South African Council for Professional Land Surveyors and Technical
Surveyors (PLATO), the Association of Law Societies of South Africa, the General
Council of the Bar of South Africa, the Department of Minerals and Energy (DME),
the JSE Limited (JSE), the Council for Geoscience, the Banking Association of South
Africa, the Minerals Bureau, the Chamber of Mines of South Africa (CoM), and the
University of the Witwatersrand.
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The first version of the SAMREC Code was issued in March 2000 and adopted
by the JSE in their Listings Requirements later that same year. The Code has been
adopted by the SAIMM, GSSA, SACNASP, ECSA and PLATO, and it is binding on
members of these organizations. For background information and the history of
the development of the Code, please refer to the SAMREC Code, March 2000. This
2007 edition supersedes the first edition.
Concurrently with the evolution of the SAMREC Code, the Committee for Mineral
Reserves International Reporting Standards (CRIRSCO), initially a committee of the
Council of Mining and Metallurgical Institutions (CMMI), has, since 1994, been
working to create a set of standard international definitions for the reporting of
Mineral Resources and Mineral Reserves.
As a result of the CRIRSCO/CMMI initiative, considerable progress has been made
towards widespread adoption of globally consistent reporting standards. These are
embodied in similar Codes, guidelines and standards published and adopted by the
relevant professional bodies around the world.
The definitions in this edition of the SAMREC Code are either identical to, or not
materially different from, those existing international definitions.
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2. The Code is applicable to the reporting of all styles of solid mineralization or

economic deposit. Certain commodities, namely coal and diamonds, have specific
additional reporting requirements and these are dealt with from Clause 41 onwards.
The Code does not apply to oil, gas or water.
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In this second edition of the SAMREC Code, the Code is presented predominantly
in normal typeface. Definitions are highlighted in bold text and form part of
the Code. Guidelines are in italics and are placed after the respective Code clauses
to provide assistance and guidance to readers when interpreting the Code.

The SSC recognizes that further reviews and revisions of the Code may be required.
Additional information, rules, lists and best-practice guidelines will be published
on the SSC website from time to time, after due process has been followed.
(www.samcode.co.za)
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3. The Code sets out a required minimum standard for the Public Reporting of
Exploration Results, Mineral Resources and Mineral Reserves. References in the Code
to Public Report or Public Reporting pertain to those reports detailing Exploration
Results, Mineral Resources and Mineral Reserves and prepared as information for
investors or potential investors and their advisers.
Although the Code is a required minimum standard for Public Reporting, the SSC
committee recommends its adoption as a minimum standard for other reporting.
Public Reports are all those reports prepared for the purpose of informing
investors or potential investors and their advisers and include but are not
limited to companies annual reports, quarterly reports and other reports
included in JSE circulars, or as required by the Companies Act. The Code
also applies to the following reports if they have been prepared for the
purposes described in Clause 3: environmental statements; information
memoranda; expert reports; technical papers; website postings; and public
presentations.
For companies issuing annual reports or other summary reports, the
inclusion of all material information relating to Exploration Results, Mineral
Resources and Mineral Reserves is recommended. Where a summary is
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presented, it should be clearly stated that it is a summary, with a reference

attached giving the location of the Code-compliant Public Reports or Public
Reporting on which the summary is based. Companies and other entities
are encouraged to provide information that is as comprehensive as possible
in their Public Reports.
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It is recognized that companies may be required to issue reports for more

than one regulatory jurisdiction, with compliance standards other than
those contained in the Code. It is recommended that such reports should
include a statement alerting the reader to this.
Reference in the Code to documentation pertains to internal company
documents prepared as a basis for, or in support of, a Public Report.
It is recognized that situations may arise in which such supporting
documentation, prepared by Competent Persons for internal company or
other private use, may not specifically be compliant with the Code. In such
situations, it is recommended that the documentation should include a
prominent statement to this effect.
Users of the Code, and those compiling reports that comply with the Code,
should be guided by its intent, which is to provide a minimum standard
for Public Reporting that investors and their professional advisers would
expect to find in the report and for the purpose of making a reasoned and
balanced judgement regarding Exploration Results, Mineral Resources or
Mineral Reserves.
4. The Code takes into account issues of a global nature while addressing certain
circumstances unique to South Africa. The following principles should be considered
in the application of the Code:
Materiality: A Public Report contains all the relevant information that investors
and their professional advisors would reasonably require, and expect to find,
for the purpose of making a reasoned and balanced judgement regarding the
Exploration Results, Mineral Resources and Mineral Reserves being reported on.
Transparency: The reader of a Public Report must be provided with sufficient
information, the presentation of which is clear and unambiguous, to understand
the report and not be misled.
Competency: The Public Report is based on work that is the responsibility of
suitably qualified and experienced persons who are subject to an enforceable
Professional Code of Ethics.
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The author of the Public Report should be satisfied that: his work has
not been unduly influenced by the organization, company or person
commissioning a report or any report that may be deemed a Public Report;
all assumptions are documented; and adequate disclosure is made of all
material aspects that the informed reader may require in order to make a
reasonable and balanced judgement thereof.
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5. The Code is applicable to all solid minerals for which Public Reporting of Exploration
Results, Mineral Resources and Mineral Reserves is required. Minerals are defined as
any substance occurring naturally in or on the earth, in or under water or in tailings
or dumps, and having been formed by or subjected to a geological process and
includes sand, stone, rock, gravel, clay, soil and any mineral occurring in stockpiles
or in residue deposits but excludes water, oil and gas.
6. Table 1 provides a list of the main criteria that should be considered and reported
upon, if relevant, when reporting on Exploration Results, Mineral Resources and
Mineral Reserves.
COMPETENCE AND RESPONSIBILITY

7. Documentation detailing Exploration Results, Mineral Resources and Mineral
Reserves from which a Public Report is prepared must be prepared by, or under the
direction of, and signed by a Competent Person.
8. A Public Report concerning a companys Exploration Results, Mineral Resources
and Mineral Reserves is the responsibility of the company acting through its Board
of Directors. Any such report must be based on, and fairly reflect, the Exploration
Results, Mineral Resources and Mineral Reserves report(s) and supporting
documentation prepared by a Competent Person. A Public Report shall disclose
the Competent Persons name, qualifications, professional affiliations and relevant
experience. The Competent Persons written approval is required for his or her
contribution to the report.
Where any specific documentation is referred to in a Public Report, the written
approval of the author must be obtained as to the form, content and context in
which that documentation is to be included in the Public Report.
9. A Competent Person is a person who is registered with SACNASP, ECSA or
PLATO, or is a Member or Fellow of the SAIMM, the GSSA or a Recognized
Overseas Professional Organisation (ROPO). A complete list of recognized
organizations will be promulgated by the SSC from time to time. The
Competent Person must comply with the provisions of the relevant
promulgated Acts.
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10. A Competent Person must have a minimum of five years experience relevant
to the style of mineralization and type of deposit or class of deposit under
consideration and to the activity he or she is undertaking. If the Competent
Person is estimating or supervising the estimation of Mineral Resources, the
relevant experience must be in the estimation, assessment and evaluation
of Mineral Resources. If the Competent Person is estimating, or supervising
the estimation of Mineral Reserves, the relevant experience must be in
the estimation, assessment, evaluation and assessment of the economic
extraction of Mineral Reserves. Persons being called upon to sign as a
Competent Person must be clearly satisfied in their own minds that they
are able to face their peers and demonstrate competence in the commodity,
type of deposit and situation under consideration.
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The key qualifier in the definition of a Competent Person is the word relevant.
Determination of what constitutes relevant experience can be difficult, and
common sense should be exercised. For example, in estimating vein gold
mineralization, experience in a high-nugget, vein-type mineralization such as
tin, uranium etc. will probably be relevant, whereas experience in massivetype deposits may not be. Furthermore, a person considered competent in
evaluating and reporting on alluvial gold deposits should have considerable
experience in this type of mineralization, because of the characteristics of
gold in alluvial systems, the particle sizing of the host sediment, and the low
grades being quantified. Experience with placer deposits containing minerals
other than gold may not necessarily provide relevant experience.
The key word relevant could also mean that it is not always necessary for
a person to have five years experience in each and every type of deposit in
order to act as a Competent Person if that person has relevant experience in
other deposit types. For example, a person with twenty years experience in
Mineral Resource evaluation in a variety of metalliferous hard-rock deposit
types may not require five years specific experience in porphyry copper
deposits in order to act as a Competent Person. Relevant experience in the
other deposit types would count towards the required experience in relation
to porphyry copper deposits.
In addition to experience in the style of mineralization, a Competent Person
reporting Mineral Resources should have sufficient knowledge of sampling
and assaying techniques relevant to the deposit under consideration and
be aware of problems that could affect the reliability of the data. Some
appreciation of extraction and processing techniques applicable to that
deposit type would also be important.
It is important that the lead Competent Person accepting overall responsibility
for a Mineral Resource or Mineral Reserve report that has been prepared in
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whole or in part by others is satisfied that the work of the other contributors
is acceptable and the constituent parts of the report have been signed off
by such contributors.
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The lead Competent Person undertaking Mineral Resource or Mineral

Reserve reporting should accept full responsibility for the report and should
not treat the procedure merely as a rubber-stamping exercise.
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Estimation of Mineral Resources may be a team effort (i.e. involving one

person or a team collecting the data and another person or team preparing
the Mineral Resource estimate). Estimation of Mineral Reserves is commonly
a team effort involving a number of technical disciplines. It is recommended
that, where there is a clear division of responsibilities within a team, each
person should accept responsibility for his or her particular contribution.
For example, one person could accept responsibility for the collection of
Resource data, another for the Resource estimation process, another for
the mining study and the lead Competent Person acting as project leader
should accept overall responsibility for the report.
11. Complaints made in respect of the Public Report of a Competent Person will be
subject to the disciplinary procedures of the SSC.
REPORTING TERMINOLOGY
12. Public Reports dealing with Exploration Results, Mineral Resources and Mineral
Reserves must use only the terms Proved or Probable Mineral Reserves, Measured,
Indicated and Inferred Mineral Resources and Exploration Results as set out in
Figure 1.
Figure 1 sets out the framework for classifying tonnage and grade estimates so
as to reflect different levels of geoscientific confidence and different degrees of
technical and economic evaluation. Mineral Resources can be estimated on the
basis of geoscientific information with some input from other relevant disciplines.
Mineral Reserves, which are modified Indicated and Measured Mineral Resources
(shown within the dashed outline in Figure 1), require consideration of the
Modifying Factors affecting extraction.
Measured Mineral Resources may convert to either Proved Mineral Reserves or
Probable Mineral Reserves if there are uncertainties associated with modifying
factors that are taken into account in the conversion from Mineral Resources to
Mineral Reserves. The broken arrow in Figure 1 demonstrates this relationship.
Although the trend of the broken arrow includes a vertical component, it does
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not, in this instance, imply a reduction in the level of geoscientific knowledge or

confidence. In such a situation these modifying factors should be fully explained.
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The term Modifying Factors is defined to include mining, metallurgical, economic,

marketing, legal, environmental, social and governmental considerations.
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EXPLORATION
RESULTS
Increasing
level of
geoscientific
knowledge
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confidence
MINERAL
RESOURCES
MINERAL
RESERVES
Reported as in
situ mineralization
estimates
Reported as mineable
production estimates
INFERRED
INDICATED
Probable
MEASURED
PROVED
Consideration of mining, metallurgical, economic,

factors (the modifying factors)
Figure 1:

Relationship between Exploration Results, Mineral Resources and

Mineral Reserves
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REPORTING general
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13. Public Reporting concerning a companys Exploration Results, Mineral Resources

and Mineral Reserves must include a description of the style and nature of
mineralization.
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14. A company must disclose relevant information concerning the status and
characteristics of a mineral deposit that could materially influence the economic
value of the deposit and promptly report any material changes in its Exploration
Results, Mineral Resources and Mineral Reserves.
15. When reporting on commodity-specific requirements for Coal Resources and Coal
Reserves, use must be made of Clauses 41 to 53, which contain amendments and
additions, and such will take precedence over all common clauses.
16. When reporting on commodity-specific requirements for Diamond Resources and
Diamond Reserves, use must be made Clauses 54 to 62, which contain amendments
and additions, and such will take precedence over all common clauses.
17. Throughout the Code, where appropriate, quality may be substituted for grade
and volume may be substituted for tonnage. In the Code, any reference to the
singular shall include a reference to the plural, where appropriate.
REPORTING of Exploration Results

18. Exploration Results include data and information generated by exploration
programmes that may be of use to investors. The Exploration Results may or may
not be part of a formal declaration of Mineral Resources or Mineral Reserves.
19. In Public Reports, under Exploration Results, mineralization not classified as a
Mineral Resource or Mineral Reserve must be described as a deposit, and the
data and information relating to it must be enough to allow a considered and
balanced judgement of their significance. Exploration Results must include all
relevant exploration information, part of which is the location of the deposit. Such
reporting must not be presented in a way that unreasonably implies the discovery
of potentially economic mineralization.
Reporting of selected information such as isolated assays, isolated drill holes, assays
of panned concentrates or supergene-enriched soils or surface samples, without
placing them in perspective, is unacceptable.
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When assay and analytical results are reported, one of the following
methods, selected as the most appropriate by the Competent Person, must
be used: by listing all results, along with sample intervals (or size, in the case
of bulk samples), or by reporting weighted average grades of mineralized
zones, indicating clearly how the grades were calculated.
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Exploration information should include the interpretation of geological

continuity, sampling results, locations etc. Table 1, at the end of this Code,
is a checklist for all who prepare reports on Exploration Results, Mineral
Resources and Mineral Reserves. It should be used as a guide. The checklist
is not prescriptive and, as always, relevance and materiality are overriding
principles that determine what information should be publicly reported.
20. It is common practice for a company to comment on and discuss its Exploration
Results in terms of size and type. Any such information relating to exploration
targets must not be expressed or misrepresented as an estimate of Mineral
Resources or Mineral Reserves. The term Resource(s) or Reserves(s) must not be
used in this context. Any statement referring to potential quantity, quality and
content, as appropriate, of the target must be expressed as ranges and include
a detailed explanation of the basis for the statement and a proximate statement
that the potential quantity, quality and content, as appropriate, are conceptual in
nature, that there has been insufficient exploration to define a Mineral Resource
and that it is uncertain if further exploration will result in the determination of a
Mineral Resource.
REPORTING of Mineral Resources

21. A Mineral Resource is a concentration or occurrence of material of
economic interest in or on the earths crust in such form, quality and
quantity that there are reasonable and realistic prospects for eventual
economic extraction. The location, quantity, grade, continuity and other
geological characteristics of a Mineral Resource are known, or estimated
from specific geological evidence, sampling and knowledge interpreted
from an appropriately constrained and portrayed geological model. Mineral
Resources are subdivided, and must be so reported, in order of increasing
confidence in respect of geoscientific evidence, into Inferred, Indicated or
Measured categories.
A deposit is a concentration (or occurrence) of material of possible economic
interest, in or on the earths crust, that may include mineralized material
that cannot be estimated with sufficient confidence to be classified in the
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Inferred category. Portions of a deposit that do not have reasonable and

realistic prospects for eventual economic extraction are not included in a
Mineral Resource.

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For each category of Mineral Resource the basis of classification must be disclosed
(refer to Table 1).
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The term Mineral Resource covers in-situ mineralization as well as dumps

or tailings that have been identified and estimated through exploration or
assessment and sampling from which Mineral Reserves may be derived by
the application of modifying factors.
Any material assumptions made in determining the reasonable and realistic
prospects for eventual economic extraction should be clearly stated in the
Public Report.
The term reasonable and realistic prospects for eventual economic
extraction implies a judgement (albeit preliminary) by the Competent
Person in respect of technical and economic factors likely to influence
the prospect of economic extraction, including the approximate mining
parameters. In other words, a Mineral Resource is not an inventory of all
mineralization drilled or sampled, regardless of cut-off grades, likely mining
dimensions, location or continuity. It is a realistic inventory of mineralization
that, at the time of reporting and under assumed and justifiable technical
and economic conditions, might become economically extractable.
Portions of a mineral deposit that do not have reasonable and realistic
prospects for eventual economic extraction must not be included in a
Mineral Resource.
Interpretation of the word eventual in this context may vary depending
on the commodity, mineral involved or legal tenure. For example, for many
occurrences of coal, iron ore, bauxite and other bulk minerals or commodities,
it may be reasonable to envisage eventual economic extraction as covering
periods of 50 years or more. However for other deposits, application of
the concept would normally be restricted to perhaps 20 to 30 years and
frequently much shorter periods.
Certain reports (e.g. exploration reports to Government and other similar
reports not intended primarily for providing information for investment
purposes) may require full disclosure of all mineralization including some
material that does not have reasonable and realistic prospects for eventual
economic extraction. Portions of the mineral deposit that do not qualify as
Mineral Resources must not be described as such.
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Any adjustment made to the data for the purpose of making the Mineral
Resource estimate, for example by cutting or factoring grades, or any other
relevant assumptions, should be clearly described in the Public Report.
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Where considered appropriate by the Competent Person, Mineral Resources

may include mineralization below the selected cut-off grade to ensure that
the Mineral Resource consists of bodies of mineralization of adequate
size and continuity to properly consider the most appropriate approach
to mining, including any dilution or contamination resulting from the
requirements of any minimum mining width. Documentation of Mineral
Resource estimates should clearly define any such inclusions, and Public
Reports should include commentary on the matter if considered material.
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22. 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.
An Inferred Mineral Resource has a lower level of confidence than that applying to
an Indicated Mineral Resource.
Where Inferred Mineral Resources are extrapolated beyond data points, the
proportion extrapolated must be described and disclosed.
This category is intended to cover situations in which a mineral concentration
or occurrence has been identified and limited measurements and sampling
have been completed, but in which the data are insufficient to allow the
geological or grade continuity to be interpreted with confidence. Due to
the uncertainty that may be attached to some Inferred Mineral Resources,
it cannot be assumed that all or part of an Inferred Mineral Resource will
necessarily be upgraded to an Indicated or Measured Mineral Resource
after continued exploration.
23. It is accepted that mine design and planning may include a proportion of Inferred
Mineral Resources. If this category is considered in mine design, planning or
economic studies, the results of which are publicly reported, full disclosure must
be made and the effect on the results of the studies must be stated. Inferred
Mineral Resources may be included in mine design, mine planning and economic
studies only if there exists a mine plan and a statement of Mineral Reserves that
admits that Inferred Mineral Resources have been used. Where a material amount
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of mining in the mine plan includes Inferred Mineral Resources, a comparison of

the results with and without these Inferred Mineral Resources must be shown, and
the rationale behind their inclusion must be explained.
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Modifying factors and assumptions that were applied to the Indicated and
Measured Mineral Resources to determine the Mineral Reserves must be equally
applied to the Inferred Mineral Resources.
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Inferred Mineral Resources cannot be converted to Mineral Reserves and must not
be stated as part of the Mineral Reserve.
24. 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.

The Indicated Mineral Resource has sufficient confidence for mine design, mine
planning or economic studies.
An Indicated Mineral Resource has a lower level of confidence than
that applying to a Measured Mineral Resource but has a higher level of
confidence than that applying to an Inferred Mineral Resource.
Confidence in the estimate is sufficient to allow the appropriate application of
technical and economic parameters and enable an evaluation of economic
viability.
25. A Measured 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 high level of confidence. It is based on
detailed and reliable information from exploration, sampling and testing
of material from locations such as outcrops, trenches, pits, workings and
drill holes. The locations are spaced closely enough to confirm geological
and grade continuity.

A Measured Mineral Resource provides sufficient confidence for mine design, mine
planning, production planning and detailed economic studies to be undertaken.
A Measured Mineral Resource requires that the nature, quality, amount
and distribution of data are such as to leave the Competent Person with no
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reasonable doubt that the tonnage and grade of the mineralization can be
estimated to within close limits and any variation within these limits would
not materially affect the economics of extraction.
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This category requires a high level of confidence in, and understanding of,
the geology and the controls on mineralization.
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26. The Competent Person responsible for the Resource estimate must determine the
appropriate Mineral Resource category based upon the quantity, distribution and
quality of data available and the level of confidence attached to the data with
reference to Table 1. The method of determining these confidence levels must be
disclosed. Resource classification guidelines are included in Table 1.
27. The Mineral Resource statement is a summary report of the Resource estimates,
with key assumptions used in their derivation as per the guidelines in Table 1.
28. Public Reports of Mineral Resources must specify one or more of the categories of
Inferred, Indicated or Measured. Reports must not contain Mineral Resource
figures combining two or more of the categories unless figures for the individual
categories are also provided.
29. A Mineral Resource must not be reported in terms of contained mineral content
unless corresponding tonnages and grades are also reported.
30. The words Ore and Reserves must not be used in stating Mineral Resources.
These terms imply a level of technical feasibility and economic viability and are
appropriate only when all relevant modifying factors have been applied.
31. Mineral Resource estimates are not precise calculations, being dependent on the
interpretation of limited information about the location, shape and continuity of
the occurrence and on the available sampling results.
Rounding off must convey the uncertainties in estimation.
In order to emphasize the imprecise nature of a Mineral Resource estimate,
the final results should always be referred to as an estimate not a calculation,
and Inferred Mineral Resources should be qualified with terms such as
approximately.
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REPORTING of Mineral Reserves
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32. 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 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.
so
Mineral Reserves are reported as inclusive of diluting and contaminating uneconomic

and waste material delivered for treatment or dispatched from the mine without
treatment. To avoid confusion in reporting Mineral Reserves, the definition of
treatment is taken to include any beneficiation of the raw product that might take
place before or during the metallurgical process. For clarity, tonnages and grades of
saleable product may be reported for certain commodities, with clear descriptions
indicating such.
Commodity prices and exchange rates used for Mineral Reserve estimation
should be disclosed.
For commodities traded on metal exchanges, reasonable forward-looking
prices should be used. Such prices should be based on historic full-cycle
price averages and should be disclosed. However, for commodities not
traded on metal exchanges, it is recognized that disclosure of a specific
price may put a company at a competitive disadvantage, and this must be
stated.
When commodity prices are disclosed, disclosure can be as a single price
estimate equal to that used for reserve determination, or as a range of
prices within which no material change in reserves would occur. Whether
or not the commodity prices used to estimate reserves are published, the
method used to determine those prices should be disclosed. Such disclosure
should be in a manner that helps investors determine whether, in their own
opinion, the stated prices represent reasonable views of the future.
Mineral Reserves are sub-divided in order of increasing confidence into
Probable and Proved Mineral Reserves. For each category of Mineral Reserve,
the confidence levels in the modifying factors should be disclosed.
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The term economically mineable implies that extraction of the Mineral

Reserve has been demonstrated as viable and justifiable under a defined
set of realistically assumed modifying factors. What constitutes the term
realistically assumed will vary with the type of deposit, level of study that
has been carried out, and financial criteria of the reporting entity. Deriving
a Mineral Reserve without a mine design or mine plan through a process of
factoring of the Mineral Resource is unacceptable.
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If there is doubt about what should be reported, it is better to provide too

much information rather than too little.
Any adjustment to the data for the purpose of making the Mineral Reserve
estimate, for example by cutting or factoring grades or any other modifying
factor, should be clearly described in the Public Report.
The Code does not imply that an economic operation must have Proved
Mineral Reserves. Situations may arise in which Probable Mineral Reserves
alone may be sufficient to justify extraction, as for example with some
alluvial tin, diamond or gold deposits. This is a matter for judgement by the
Competent Person.
33. A Probable Mineral Reserve is the economically mineable material derived

from a Measured or Indicated Mineral Resource or both. It is estimated
with a lower level of confidence than a Proved Mineral Reserve. 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 or a Life of Mine Plan
for an operation must have been carried out, including consideration of,
and modification by, realistically assumed mining, metallurgical, economic,
marketing, legal, environmental, social and governmental factors. Such
modifying factors must be disclosed.
34. A Proved Mineral Reserve is the economically mineable material derived
from a Measured Mineral Resource. It is estimated with a high level of
confidence. 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 or a
Life of Mine Plan for an operation must have been carried out, including
consideration of, and modification by, realistically assumed mining,
metallurgical, economic, marketing, legal, environmental, social and
governmental factors. Such modifying factors must be disclosed.
35. The categorization of a Mineral Reserve is governed by the relevant level of
confidence of the Mineral Resource and the modifying factors and must be made
by the Competent Person.
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The Code provides for a direct relationship between the criteria applied
to Indicated Mineral Resources and Probable Mineral Reserves and
between the criteria applied to Measured Mineral Resources and Proved
Mineral Reserves. In other words, the level of geoscientific confidence for
Probable Mineral Reserves is similar to that required for the determination
of Indicated Mineral Resources. The level of geoscientific confidence for
Proved Mineral Reserves is similar to that required for the determination
of Measured Mineral Resources. Inferred Mineral Resources are always
additional to Mineral Reserves and should be quoted as such.
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The Code also provides for a relationship between Measured Mineral

Resources and Probable Mineral Reserves. This is to cover the situation in
which uncertainties associated with any of the modifying factors considered
when converting Mineral Resources to Mineral Reserves result in a lower
degree of confidence in the Mineral Reserves than in the corresponding
Mineral Resources. Such a conversion would not imply a reduction in the
level of geoscientific knowledge or confidence.
A Probable Mineral Reserve derived from a Measured Mineral Resource
may be converted to a Proved Mineral Reserve if the uncertainties in the
modifying factors are reduced. No amount of confidence in the modifying
factors for conversion of a Mineral Resource into a Mineral Reserve can
override the upper level of confidence that exists in the Mineral Resource.
Under no circumstances can an Indicated Mineral Resource be converted
direct to a Proved Mineral Reserve (see Figure 1).
Application of the category of Proved Mineral Reserves implies the highest
degree of confidence in the estimate, with consequent expectations in the
minds of the readers of the report. These expectations must be borne in
mind when categorising a Mineral Resource as measured.
36. Mineral Reserve estimates are not precise calculations, and tonnages and grades
must be expressed so as to convey the order of accuracy of the estimates by
rounding off to appropriately significant figures.
Rounding off must convey the uncertainties in estimation.
In order to emphasize the imprecise nature of a Mineral Reserve estimate, the
final results should always be referred to as an estimate, not a calculation.
37. Public Reports of Mineral Reserves must not contain combined Proved and
Probable Mineral Reserves unless the relevant figures for each of the categories
are also provided. Reports must not present mineral contents unless corresponding
tonnages and grades are given.
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Mineral Reserves may incorporate diluting and contaminating uneconomic

and waste material that is not part of the original Mineral Resource. It is
essential to bear in mind this fundamental difference between Mineral
Resources and Mineral Reserves. Caution must be exercised if attempting
to draw conclusions from a comparison of the two.
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Public Reporting of tonnages and grades outside the categories covered

by the Code is not permitted, although the figures may be useful to a
company in its internal calculations and evaluations.
38. When revised Mineral Resource and Mineral Reserve statements are publicly
reported, they must be reconciled with previous statements. A detailed account of
differences between the figures is not essential, but sufficient comment should be
made to enable significant variances to be understood by the reader.
39. In situations in which figures for both Mineral Resources and Mineral Reserves are
reported, the Public Report must include a statement that clearly indicates whether
the Mineral Resources are inclusive of, or additional to those Mineral Resources
that have been modified to produce Mineral Reserves.
In some situations, there are reasons for reporting Mineral Resources
inclusive of Mineral Reserves. In other situations, there are reasons for
reporting Mineral Resources additional to Mineral Reserves. It must be
made clear which form of reporting has been adopted. Appropriate forms
of clarifying statements may be:
The Measured and Indicated Mineral Resources are inclusive of those
modified to produce Mineral Reserves or The Measured and Indicated
Mineral Resources are additional to Mineral Reserves.
In the first example, if any Mineral Resources have not been modified to
produce Mineral Reserves for economic or other reasons, the relevant details
of these unmodified Mineral Resources should be included in the Public
Report. This is to help the reader judge the likelihood of the unmodified
Measured and Indicated Mineral Resources eventually being converted to
Mineral Reserves.
For reasons stated in the first guideline of Clause 37 and in this paragraph,
the reported Mineral Reserve figures cannot be added to the reported
Mineral Resource figures. The resulting total is misleading and is capable of
being misunderstood or, more seriously, misused to give a false impression
of a companys prospects.
When reporting Mineral Reserves, a sensitivity analysis should be conducted.
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The disclosure of commodity price and other financial assumptions used for
this analysis is recommended.
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40. The above clauses apply equally to low-grade mineralization, often intended for
stockpiling and treatment towards the end of the life of the mine.
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If some portion of stope-fill or stockpile, dumps, remnants, pillars and tailings is

currently sub-economic, but there is a reasonable expectation that it will become
economic, then this material may be classified as a Mineral Resource. If technical
and economic studies have demonstrated that economic extraction could be
reasonably justified under realistically assumed conditions, then the material may
be classified as a Mineral Reserve.
If there are no reasonable prospects for the economic extraction of a particular
portion of the above-mentioned material, then this material cannot be classified as
either Mineral Resources or Mineral Reserves. Mineralized remnants, shaft pillars
and mining pillars that are not potentially mineable must not be included in Mineral
Resource and Mineral Reserve statements.
For clarity of understanding, the tonnage and grade estimates of such material
must be itemized separately as Mineral Resources or Mineral Reserves in Public
Reports, although they may be aggregated in total Mineral Resource and Mineral
Reserve figures.
reporting of coal EXPLORATION

RESULTS, Coal resources and
COAL reserves
41. This part of the Code addresses matters specific to the Public Reporting of Coal
Resources and Coal Reserves. Clauses 1 to 40 of this Code also apply to the Public
Reporting of Coal Resources and Coal Reserves, unless otherwise stated in this
part of the Code. However, the term Coal should replace the terms Mineral
and Ore; coal deposit should replace mineralization; and coal quality should
replace grade and mineral content throughout both Code and guidelines. For
Coal Reserves, all references to metallurgical modifying factors should be replaced
by coal processing modifying factors.
42. Amendment to Clause 6.
The South African Guide to the Systematic Evaluation of Coal Resources and Coal
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Reserves (SANS 10320:2004) provides the main criteria that should be considered
when preparing reports on Coal Resources and Coal Reserves. The reader is referred
to the South African Guide to the Systematic Evaluation of Coal Resources and
Coal Reserves for the definition of the relevant terms and for the methods used
in the evaluation of coal deposits. Any reference to Table 1 in the Code should be
substituted by a reference to the Guide mentioned above. The evaluation criteria
need not be discussed in a Public Report unless they materially affect estimation
or classification of the Coal Resources and Coal Reserves. However, changes in
economic or political factors alone may be the basis for significant changes in Coal
Reserves and should be reported accordingly.
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43. Replacement of Figure 1

Public Reports on Coal Resources and Coal Reserves must use only the terms set
out in Figure 2. Any reference to Figure 1 in the Code must be substituted by a
reference to Figure 2.
44. Amendment to Clause 22
An Inferred Coal Resource is that part of a Coal Resource for which
volume or tonnage and coal quality can be estimated only with a low
level of confidence. It is inferred from geological evidence and sampling
and assumed physical continuity with or without coal quality continuity.
It is based on information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill-holes,
information that is limited or of uncertain quality and reliability.

The level of confidence is usually insufficient to justify a Pre-feasibility Study.

An Indicated Coal Resource is that part of a Coal Resource for which
tonnage, densities, shape, physical characteristics and coal quality can be
estimated with a moderate 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 appropriate to confirm physical continuity, while the locations are
too widely or inappropriately spaced to confirm the continuity of the
coal quality. However, such locations are spaced closely enough for such
continuity to be assumed.
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The level of confidence should be sufficient to support a decision on whether a

Pre-feasibility Study or Feasibility Study is warranted.
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COAL
RESOURCES
Increasing
level of
geoscientific
knowledge
and
confidence
COAL
RESERVES
Reported as in
situ estimates
Reported as
Mineable In Situ,
ROM and Saleable
estimates
INFERRED
Probable
INDICATED
Mineable In
Situ, ROM and
Saleable
PROVED
MEASURED
Mineable In
Situ, ROM and
Saleable
Consideration of mining, metallurgical, economic,

factors (the modifying factors)
Figure 2: Relationship between Coal Resources and Coal Reserves

A Measured Coal Resource is that part of a Coal Resource for which
tonnage, densities, shape, physical characteristics and coal quality can
be estimated with a high level of confidence. It is based on detailed and
reliable information from exploration, sampling and testing of material
gathered from locations such as outcrops, trenches, pits, workings and drill
holes. The locations are spaced closely enough to confirm physical and coal
quality continuity.
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47. Addition to Clause 33.
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A Probable Coal Reserve may be demonstrated to be economically mineable by a

Pre-Feasibility Study.
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48. Addition to Clause 34

A Proved Coal Reserve may be demonstrated to be economically mineable by a
Feasibility Study or actual mining activity.
49. A Mineable In Situ Coal Reserve is the tonnage and coal quality, at
specified moisture content, contained in coal seams, or sections of seams,
that are proposed for mining, adjusted by the application of the geological
loss factors. Sufficient information must be available to enable conceptual
or detailed mine planning, and such mine planning must have been
undertaken.
The assessments must demonstrate that at the time of reporting, extraction
is reasonably justified. Mineable In Situ Coal Reserve estimates must be quoted
separately for surface and underground extraction, and an outline of the proposed
mining method must be provided. Mineable In Situ Coal Reserves are subdivided
in order of increasing confidence into Probable Mineable In Situ Coal Reserve and
Proved Mineable In Situ Coal Reserve categories.
50. A Run of Mine (ROM) Coal Reserve is the tonnage and coal quality of
Mineable In Situ Coal Reserves that are expected after all geological losses,
mining losses, mining dilution, contamination and moisture-content factors
have been applied.
The assessments must demonstrate that at the time of reporting extraction is
reasonably justified. ROM Coal Reserves are subdivided in order of increasing
confidence into Probable ROM Coal Reserves and Proved ROM Coal Reserves. The
ROM Coal Reserves must be reported.
51. A Saleable Coal Reserve is the tonnage and coal quality that will be
available for sale, either in the raw ROM state at a specified moisture
content or after beneficiation of the ROM Coal Reserves has produced
materials at specified qualities, moisture contents and size ranges.
The assessment must demonstrate that at the time of reporting, the marketing
of products is reasonably justified. The basis of the predicted yield to achieve the
Saleable Coal Reserve must be stated. For raw ROM products, the practical product
yield is typically 100%.
Saleable Reserves are subdivided in order of increasing confidence into Probable
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Saleable Coal Reserve and Proved Saleable Coal Reserve categories. The Saleable
Coal Reserves must be reported.
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52. The appropriate coal quality must be reported for all Coal Resource and Coal
Reserve categories. The basis of reporting of the coal quality parameters must
be reported, as for example on an air-dry basis, dry basis, etc. Where applicable
Saleable Coal Reserves should be subdivided into the relevant coal product types.

so
The quality of the coal should be expressed according to parameters relevant to

specific applications e.g. steam coal, types of metallurgical coal, etc. The selection
of parameters is the responsibility of the Competent Person and would include
quality parameters such as ash, volatile matter, sulphur, coking properties, calorific
value, etc.
Refer to the South African Guide to the Systematic Evaluation of Coal Resources
and Coal Reserves for additional guidelines.
53. Amendment to Clause 40:

The Code applies to the reporting of all potentially economic coal deposits
including coal in pillars and remnants discard and reject coal in stockpiles, dumps
and tailings for which there are reasonable and realistic prospects for eventual
economic extraction of Coal Resources and for justifiable economic extraction of
Coal Reserves. Unless otherwise specified, Clauses 1 to 40 of the Code (including
Figure 2 and SANS 10320:2004 guideline) apply.
Discard and Reject Coal from a future coal processing plant or mining operations
may be reported as an additional product in the Saleable Coal Reserve category
only if economic extraction is justified.
REPORTING OF DIAMOND
EXPLORATION RESULTS, DIAMOND
RESOURCES AND DIAMOND
RESERVES
54. This part of the Code addresses matters specific to the Public Reporting of Diamond
Exploration Results, Diamond Resources and Diamond Reserves. Clauses 1 to 40
of this Code also apply to the Public Reporting of Diamond Exploration Results,
Diamond Resources and Diamond Reserves, unless otherwise stated in this part
of the Code. The term Diamond should replace the term Mineral and grade
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and average diamond value should replace grade and mineral content wherever
applicable.
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55. The following characteristics of diamond deposits are different from those of typical
metalliferous and coal deposits, and they emphasize the need for a Diamond
specific Code.
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The low diamond content of primary and placer diamond deposits and their
variability
The particulate nature of diamonds
The specialized field of diamond valuation
The relationship between average diamond value and the underlying diamond
size distribution
The widely differing nature of diamondiferous deposits and their associated
forms of mineralization and the estimation relevant to these.
56 Amendment to Clause 6
Table 1 provides a list of the main criteria that should be considered and reported,
if relevant, when reporting Diamond Exploration Results, Diamond Resources and
Diamond Reserves. Table 1 contains a set of definitions and guidelines to be used
in Public Reports on Diamond Resources and Diamond Reserves; it represents a
general guide for the evaluation of diamondiferous deposits.
For diamond deposits and resources, the term quality must not be used as a
substitute for grade. The use of grade helps avoid confusion with diamond
quality.
A diamond exploration target is a concentration (or occurrence) of diamond
mineralization of possible economic interest, in or on the Earths crust.
Portions of a diamond exploration target that do not have reasonable and realistic
prospects for eventual economic extraction must not be included in a Diamond
Resource.
Estimates of quantity based on limited information and analogies with known
deposits of similar geological character may be possible but are inadequate for
classification as Inferred Mineral Resources.
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An Inferred Diamond Resource is that part of a Diamond Resource

for which tonnage or volume, grade and average diamond value can
be estimated only with a low level of confidence. It is inferred from
geological evidence and assumed geological and grade continuity and
when the diamond parcel is too small to be a reasonable representation
of the diamond assortment. It is based on information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes, information that may be limited or of uncertain
quality and reliability.
so
An Indicated Diamond Resource is that part of a Diamond Resource for
which tonnage and volume, densities, shape, physical characteristics, grade
and average diamond value 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 and grade continuity but are spaced closely
enough for continuity to be assumed, and sufficient diamonds have been
recovered to allow a reasonable estimate of average diamond value.
A Measured Diamond Resource is that part of a Diamond Resource for which
tonnage and volume, densities, shape, physical characteristics, grade and
average diamond value can be estimated with a high level of confidence.
It is based on detailed and reliable information from exploration, sampling
and testing of material gathered from locations such as outcrops, trenches,
pits, workings and drill holes. The locations are spaced closely enough to
confirm geological and grade continuity and sufficient diamonds have
been recovered to allow a confident estimate of average diamond value.
The average diamond grade and value must not be reported without specifying the
anticipated Bottom Cut-off Screen Size.
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TABLE 1: CHECKLIST AND GUIDELINE OF

REPORTING AND ASSESSMENT CRITERIA
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Table 1 is a high-level checklist of reporting and assessment criteria to be used as a

reference by those preparing reports on Exploration Results, Mineral Resources and
Mineral Reserves. The checklist is not prescriptive and, as always, relevance and materiality
are the overriding principles that determine what information should be publicly reported.
It is, however, important to report all matters that might materially affect a readers
understanding or interpretation of the results or estimates being reported.
The evaluation and reporting of mineral projects and forward looking mine plans
or statements from ongoing operations are expressions of judgment predicated on
knowledge and experience. Such evaluations and reports are more than arbitrary
determinations; they seek to facilitate valuations as a consequence of method. The
methods employed should be scientifically valid, tested, using accepted scientific
definitions of terms and procedures, and best suited to the making of reliable estimates
for the project in question.
It is the responsibility of the Competent Person to consider all the criteria listed below and
which additional criteria should apply to the study of a particular project or operation. The
relative importance of the criteria will vary with the particular project and the legal and
economic conditions pertaining at the time of determination.
Publicly reported information should be sufficient to enable an informed reader to make a
reasonable and balanced assessment of the significance of this information. It is, however,
important to report any matters that might materially affect a readers understanding or
interpretation of the results or estimates being reported. This is particularly important
where inadequate or uncertain data affect the reliability of, or confidence in, a statement
of Exploration Results or an estimate of Mineral Resources or Mineral Reserves.

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T1. GENERAL
THE
ASSESSMENT CRITERION: T 1.1 Purpose of Report
EXPLORATION RESULTS (A)
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(i) The report should have a title page and a table of contents that includes
figures and tables.
(ii) State for whom the report was prepared, whether it was intended as a full or
partial evaluation or other purpose, what work was conducted, effective
date of report, and what work remains to be done.
(iii) The Competent Person should state whether the document is SAMREC
compliant. If a reporting code other than SAMREC has been used, the
Competent Person should include an explanation of the differences.
MINERAL RESOURCES (B)

See 1.1 A (i) to (iii).
MINERAL RESERVES (C)

See 1.1 A (i) to (iii).
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ASSESSMENT CRITERION: T 1.2 Project outline
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(i) Give a brief description of the scope of project (i.e. whether in preliminary
sampling, advanced exploration, conceptual, pre-feasibility, or feasibility
phase, Life of Mine plan for an ongoing mining operation or closure). This
should include a description of the geological setting, deposit type,
commodity, area of project, back-ground, and business arrangement.

See 1.2 A.
(i) Brief description of key technical factors that have been considered.

See 1.2 A.
(i) Brief description of mining, processing and other key technical factors.
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ASSESSMENT CRITERION: T 1.3 History
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(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.
(ii) Reference all information used from other sources.

See 1.3 A (i) and (ii).
(i) Discuss known or existing historical Mineral Resource estimates and
performance statistics to actual production for past and current operations,
including the reliability of these and how they relate to the SAMREC Code.
(ii) Previous successes or failures should be referred to transparently with reasons
why the project should now be considered potentially economic.

See 1.3 B.
(i) Discuss known or existing historical Mineral Reserve estimates and
performance statistics to actual production for past and current operations,
including the reliability of these and how they relate to the SAMREC Code.
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ASSESSMENT CRITERION: T 1.4 Key plan, maps and diagrams
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i) Include and reference 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. If adjacent or nearby properties
have an important bearing on the report, then their location and common
mineralized structures should be included on the maps. Reference all
information used from other sources. All maps, plans and sections noted in
this checklist should be legible and include a legend, coordinates, system of
coordinates, scale bar and north arrow.
(ii) Diagrams or illustrations should be legible, annotated and summarized.


See 1.4 (i) and (ii).
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ASSESSMENT CRITERION: T 1.5 Project location and description
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(i) Description of location (country, province, and closest town/city, coordinate
systems and ranges, etc.).
(ii) In respect of each property, diagrams, maps and plans should be supplied
demonstrating the location of prospecting/mining rights, any historical and
current workings, any exploration, and all principal geological features.


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ASSESSMENT CRITERION: T 1.6 Topography and climate
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(i) All relevant issues relating to the mineral project should be stated, such as
the topography and climate, noting any conditions that may affect possible
mining activities.
(ii) A general topo-cadastral map should be available to support the above
statement.

(i) Topo-cadastral map in sufficient detail to support the assessment of eventual
economics. Known associated climatic risks should be stated.

(i) Detailed topo-cadastral map. Where applicable aerial surveys should be
checked with ground controls and surveys, particularly in areas of rugged
terrain, dense vegetation or high altitude.
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ASSESSMENT CRITERION: T 1.7 Legal aspects and tenure
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The legal tenure should be verified to the satisfaction of the Competent Person,
including a description of:
(i) The nature of the issuers rights (e.g. prospecting and/or mining) and the
right to use the surface of the properties to which these rights relate;
(ii) 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 authorizations)
(iii) 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; and
(iv) A statement of any legal proceedings that may have an influence on
the rights to prospect or mine for minerals, or an appropriate negative
statement.

See 1.7 A.

See 1.7 A
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T2. PROJECT DATA
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ASSESSMENT CRITERION: T 2.1 Data management and database
so

(i) Identify and comment on the primary data elements (observation and
measurements) used for the project and describe the management 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. Final verification of data, including QA/
QC processes should also be part of the database. It is assumed that data
are stored digitally but hand-printed tables with well organized data and
information may also constitute a database.

See 2.1 A (i).
(i) Identify and comment on interpreted data elements derived from primary
data (modelled or analyzed) and used for the project, and describe the
management of these data or the database.

See 2.1 B.
(i) Identify and comment on interpreted and planned data elements
derived from modelled data and used for the project plans, and
describe the management of these data or the database.
36
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ASSESSMENT CRITERION: T 2.2 Spatial data
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CODE
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(i) Describe the survey methods, techniques and expected accuracies of spatial
data.
(ii) Representative models and/or maps and cross sections or other two or three
dimensional illustrations of results should exist, showing location of samples,
accurate drill-hole collar positions, down-hole surveys, exploration pits,
underground workings, relevant geological data, etc


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ASSESSMENT CRITERION: T 2.3 Geological data
so

(i) Describe the data acquisition or exploration techniques and the nature,
level of detail, and confidence in the geological data used (i.e. stratigraphy,
lithology, structure, alteration, mineralization, hydrology, geophysical, geochemical, petrography, mineralogy, geochronology, etc.).
(ii) Acknowledge and appraise data from other parties and reference all data and
information used from other sources.

(i) Discuss geological data that could materially influence the estimated quantity
and quality of the Mineral Resource.

See 2.3 B
(i) Discuss geological data that could materially influence the estimated quantity
and quality of the Mineral Reserve.
38
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ASSESSMENT CRITERION: T 2.4 Specific gravity and bulk tonnage data
so

(i) If target tonnage ranges are reported then the preliminary estimates or basis
of assumptions made for bulk density or specific gravity(s) must be stated.
(ii) Specific gravity samples must be representative of the material for which a
grade range is reported.

(i) Describe the method of bulk-density / specific-gravity determination
with reference to the frequency of measurements, the size, nature and
representativeness of the samples.
(ii) The bulk density for bulk material must have been measured by methods
that adequately account for void spaces (vugs, porosity etc.), moisture and
differences between rock and alteration zones within the deposit.
(iii) Discuss assumptions for bulk density estimates used in the evaluation process
of the different materials

See 2.4 B (i) to (iii).
(i) Include bulk densities for materials mined additional to the Mineral Resource
to the same order of accuracy (such as waste, stripping and dilution
material).
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ASSESSMENT CRITERION: T 2.5 General data
so

(i)
All relevant general data should be discussed with reference to the nature,
level of detail and confidence.
40
S AM CODE
T 3. SAMPLING
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THE
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ASSESSMENT CRITERION: T 3.1 Sampling governance
so
(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.
(ii) State whether sample recoveries have been properly recorded and results
assessed. In particular, state whether a relationship exists between sample
recovery and grade, and sample bias (e.g. preferential loss/gain of fine/coarse
material).
ASSESSMENT CRITERION:
T 3.2 Sample method, collection, validation, capture and storage

(i) 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. Data sets should include all
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relevant metadata, such as unique sample number, sample mass, collection

date, spatial location etc.
(ii) Demonstrate that adequate field sampling process verification tech-niques
(QA/QC) 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.
(iii) If the geometry of the mineralization with respect to the drill-hole angle is
known, its nature should be reported. If it is not known and only the downhole lengths are reported, there should be a clear statement to this effect
(e.g. down hole length, true width not known).
(iv) 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.)
(v) Describe retention policy and storage of physical samples (e.g. core, sample
reject, etc.)
(vi) Describe the audit process and frequency (including dates of these audits)
and disclose any material risks identified.relevant metadata, such as unique
sample number, sample mass, collection date, spatial location etc.
so

See 3.2 A (i) to (vI).
(i) Where mineral processing or metallurgical testing analyses have been carried
out (bulk-sampling / trial mining), include the results of the testing, details
of the testing methods and procedures, and a discussion of whether the
samples are representative.

See 3.2 B.
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ASSESSMENT CRITERION: T 3.3 Sample preparation
so

(i) Describe the location and accreditation of the laboratory or facility,
summarizing the process and method used for sample preparation,
sub-sampling and size reduction, and likelihood of inadequate or nonrepresentative samples (i.e. improper size reduction, contamination, screen
sizes, granulometry, mass balance, etc.)
(ii) For all sample types the nature, quality, verification and appropriateness of
the sample-preparation technique should be discussed.
(iii) 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.
(iv) Describe the quality control and quality assurance procedures adopted for
all 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.
(v) Describe the audit process and frequency (including dates of these audits)
and disclose any material risks identified

See 3.3 A (i) to (v)

See 3.3 A (i) to (v)
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ASSESSMENT CRITERION: T 3.4 Sample analysis
so

(i) Identify the laboratory(s) and 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.
(ii) State the accreditation status and Registration Number of the laboratory.
Laboratories should be appropriately accredited. If not, this fact should be
disclosed.
(iii) Discuss the nature of quality control procedures adopted and quality
assurance thereof (e.g. reference material, standards, blanks, duplicates,
external / referee laboratory checks) and state whether acceptable levels of
accuracy (i.e. lack of bias) and precision have been established.
(iv) Describe the audit process and frequency (including dates of these audits)
and disclose any material risks identified.

See 3.4 A (i) to (iv).

See 3.4 B.
44
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T 4. INTERPRETATION/MODELLING
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ASSESSMENT CRITERION: T 4.1 Geological model and interpretation
so

(i) Briefly describe the regional geology.
(ii) Describe the geological model, level of investigation (e.g. conceptual, prefeasibility etc.) and inferences made from this model.
(iii) 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 deposit.
(iv) Reliable geological models and/or maps and cross sections that support
interpretations should exist.

See 4.1 B (i) to (iv).
(i) Describe the geological model, construction technique and assumptions.
Discuss the sufficiency of data density to assure continuity of mineralization
and geology and provide an adequate basis for the estimation and
classification procedures applied.
(ii) Describe the thoroughness (precision and accuracy) with which lithological,
structural, mineralogical, alteration or other geological, geotechnical and
geo-metallurgical characteristics were recorded.
(iii) Discuss whether consideration was given to alternative interpretations or
models and their possible effect (or potential risk) if any, on the Mineral
Resource estimate.
(iv) Discuss geological discounts (e.g. magnitude, per reef, domain, etc.), applied
in the model, whether applied to mineralized and/or un-mineralized material
(e.g. potholes, faults, dykes, etc).

See 4.1 B (i) to (iv).
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ASSESSMENT CRITERION: T 4.2 Estimation and modelling techniques
so

(i) If an exploration target or deposit is reported, then the estimation techniques
used to determine the grade and tonnage ranges should be described in
detail.

(i) Describe the determination of and estimation techniques applied to volume,
density, grade, size distribution, value, geotechnical, geo-hydrological, geometallurgical or other appropriate models (e.g. section, polygon, inverse
distance, geo-statistical or other method) should be stated and justified,
together with key assumptions and implications thereof, including any
adjustments made to data (i.e. compositing, grade cutting / capping),
sample spacing, estimation unit size (block size), selective mining units,
reconciliation, domaining and maximum distance of extrapolation from data
points.
(ii) Describe assumptions and justification of correlations made between
variables.
(iii) Discuss the block or grid cell size in relation to the average sample spacing
and any assumptions behind modelling of selective mining units (and nonlinear estimation techniques if used).
(iv) Any relevant specialized computer program (software) used should be named
(with the version number) together with a reference to where all the original
files are stored for this specific model.
(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.
(vi) Describe the assumptions made regarding the estimation of any by-products
or deleterious elements.

See 4.2 B (i) to (vi).
46
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T 5. TECHNO-ECONOMIC STUDY
(INCLUDING MODIFYING FACTORS)
ASSESSMENT CRITERION: T 5.1 Governmental
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CODE
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(i) A statement should be provided to the effect that such governmental
requirements as may be required have been approved.

See 5.1 A (i).

See 5.1 A (i).
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ASSESSMENT CRITERION: T 5.2 Environmental
so

(i) Describe any obvious environmental factors that could have a significant
effect on the prospects of any possible exploration target or deposit.

(i) The necessary permits have been obtained, or there is reasonable basis to
believe that all permits required for the project can be obtained.
(ii) Describe any environmental factors that could have a material effect on
the likelihood of eventual economic extraction. Discuss possible means of
mitigation.

See 5.2 B (i) and (ii).
(iii) A statement should be provided to the effect that all necessary permits have
been approved
(iv) Describe future yearly environmental liabilities / compliance methods and
costs, including reclamation and closure and their planned funding.
(v) Refer to Environmental Impact Study.
48
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ASSESSMENT CRITERION: T 5.3 Social

THE
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(i) A statement should be provided to the effect that mandatory socialmanagement programmes, if any, have been approved.
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ASSESSMENT CRITERION: T 5.4 Mining
so

(i) Describe any obvious mining factors that could have a significant effect on
the prospects of any possible exploration target or deposit.

See 5.4 A (i).
(i) State the level of the techno / economic study whether conceptual, prefeasibility, feasibility or ongoing Life of Mine or strategic business plans.
(ii) Disclose all assumptions made regarding possible mining methods, minimum
mining dimensions (or pit shell) and internal and, if applicable, external)
mining dilution.
(iii) It may not always be possible to make assumptions regarding mining
methods and parameters when estimating Mineral Resources. Where no
mining assumptions have been made, this should be explained.

See 5.4 B (i) to (iii).
(i) State what resource models have been used in the study.
(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 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.
(iii) Optimization methods used in planning, list of constraints (practicality, plant,
access, exposed reserves, stripped reserves, bottlenecks, draw control).
50
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ASSESSMENT CRITERION: T 5.5 Treatment / Processing
so
(i) Describe any obvious processing factors that could have a significant effect
on the prospects of any possible exploration target or deposit.

(i) Discuss the level of study, possible processing methods and any processing
factors that could have a material effect on the likelihood of eventual
economic extraction.
(ii) The basis for assumptions or predictions regarding metallurgical amenability
and any preliminary mineralogical test work should already be carried out.
(iii) It may not always be possible to make assumptions regarding metallurgical
processes and parameters when reporting Mineral Resources. Where no
assumptions have been made, this should be explained.

(i) Describe and justify the processing method(s) to be used, equipment, plant
capacity, efficiencies, and personnel requirements.
(ii) 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.
(iii) 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 ore body as a
whole.
(iv) The tonnages and grades reported as Mineral Reserves must be in respect of
material delivered to the processing facility.
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ASSESSMENT CRITERION: T 5.6 Infrastructure
so


(i) 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,
power supply, offices, housing, security, resource sterilization testing etc.).
Detailed maps showing locations of facilities should exist. Project milestones
and completion dates should be stated.
(ii) State assessment of value, ownership, type, extent and condition of plant
and equipment that is significant to the existing operation(s).
(iii) Statement showing that all necessary logistics have been considered
(electricity, reagents, fuels).
52
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ASSESSMENT CRITERION: T 5.7 Economic criteria
so
(i) Not usually reported. If mentioned, however, factors significant to project

economics should be current and based on generally accepted industry
practice and experience. Assumptions should be clearly defined.

(i) In reporting, a Mineral Resource should meet the minimum requirement of
reasonable prospects for eventual economic extraction.
(ii) State and define the reasonable and realistic assumptions / parameters (albeit
preliminary, e.g. cut-off grade, cut-off screen size, product price or other
criteria) used to assess eventual likelihood of economic extraction.
(iii) These assumptions and factors should be reasonably developed and based on
generally accepted industry practice and experience. If appropriate, state the
level of study.
(iv) If applied, the basis of equivalent metal formulae should be reported.
(v) Resource sensitivity detailed description of method used and results
obtained.

(i) For Mineral Reserves, parameters should be detailed with engineering
completed to a pre-feasibility study level as defined in the SAMREC code.
(ii) State, describe and justify 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.
(iii) Summary description of method used to estimate the commodity price
profiles used for cut-off grade calculation, economic analysis and project
valuation, including applicable taxes, inflation indices and exchange rates.
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(iv) The tonnages and grades reported as Mineral Reserves must be in respect of
material delivered to the processing facility.
(iv) Demonstrate that the product price assumptions are reasonable and
supportable. Justify assumptions made concerning production cost and value
of product. Consider transportation, treatment, penalties, exchange rates,
marketing and other costs.
(v) Allowances should be made for royalties payable, both to Government and
private.
(vi) Resource / Reserve sensitivity detailed description of method used and
results obtained.
so
ASSESSMENT CRITERION: T 5.8 Marketing

(i) Describe the valuable and potentially valuable product(s) including suitability
of products to market.

See 5.8 A (i)

(i) Describe product to be sold. 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
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T 6. Risk analysis
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(i) Generally not applied
THE
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so

(i) Report any risk assessment completed to support the reasonable prospect of
eventual economic extraction and disclose any material risks identified.

(i) Report a detailed assessment of technical, economic, political and other key
risks to the project. Describe actions that will be taken to mitigate and/or
manage the identified risks.
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T 7. Resource and reserve classification criteria
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(i) For exploration targets and deposits, specific quantities and grades / qualities
should be reported in ranges, the basis of which should be explained.

(i) Describe and justify criteria and methods used as the basis for the
classification of the Mineral Resources into varying confidence categories.
(ii) Exceptions to the above should be discussed if they are material, and detailed
reports thereof should exist.
(iii) Discuss whether account has been taken of all relevant factors, i.e. relative
confidence in tonnage / grade computations, density, quality, value and
distribution of primary data and information, confidence in continuity of the
geological and mineralization models.
(iv) State whether the result appropriately reflects the Competent Persons view
of the deposit.

(i) Describe and justify criteria and methods used as the basis for the
classification of the Mineral Reserves into varying confidence categories,
which should be based on the Mineral Resource category, and include
consideration of the confidence in all the modifying factors.
(ii) Discuss the proportion of Probable Mineral Reserves, which have been
derived from Measured Mineral Resources (if any), including the reason(s)
therefore.
(iii) Only Measured and Indicated Resources can be considered for inclusion in
the Mineral Reserve.
(iv) Mineral Resources classified as Inferred Resources lack the requisite degree of
confidence to be converted to a Reserve.
(v) State whether the result appropriately reflects the Competent Persons view
of the deposit.
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T 8. Balanced reporting
THE
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so
(i) Where comprehensive reporting of all exploration results is not practicable,

representative reporting of low and high-grades and widths should be
practised together with their spatial location to avoid misleading the
reporting of exploration results.
(ii) Announcements by companies should comply with the SAMREC Code,
where applicable, and insofar as they relate or refer to a Competent Persons
report they should:

(a) Be approved in writing in advance of publication by the relevant

Competent Person; and

(b) The Competent Persons relationship to the issuer of the report, if any,

should be clearly defined.
(iii) If grades are reported then it should be stated clearly whether these are
regional averages or if they are selected individual samples taken from the
property under discussion.

See 8.A (i) to (iii).
(i) Mineral Resources should be stated as inclusive or exclusive of Mineral
Reserves.
(ii) Report the Mineral Resource statements with sufficient detail indicating
the source and type of mineralization, such as open pit, underground,
mineralization type, facies or ore body, surface dumps, stockpiles and all
other sources
(iii) The Mineral Resource will include all remnants, stockpiles, tailings, and
existing pillars where there may be reasonable and realistic prospects for
eventual economic extraction. Inclusion or exclusion of existing pillars into
the Mineral Resource will be determined site-by-site taking into consideration
factors such as size, shape, grade, location and historical and geotechnical
factors. A detailed listing of such exclusions and reasons therefore, signed by
a relevant Competent Person, should exist.
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(iv) Reconciliation Report the reliability, of the current geological and
resource models, and key assumptions, including the reliability of resource
classifications. This should include a comparison with the previous Resource
quantity and qualities, if available. Where appropriate, report and comment
on any historic trends (e.g. global bias).
so

See 8 B (i) to (iv).
(i) Describe the Mineral Resource estimate used as a basis for the conversion to
a Mineral Reserve.
(ii) Caution should be exercised if Inferred Resources are considered in economic
studies, and if included, full disclosure and the effect on the results of the
economic studies should be stated.
(iii) A comparison between the two possibilities, the one with inclusion and the
one without inclusion, should be fully explained in the Public Report in such
a way so as not to mislead the investors. Inferred Mineral Resources may not
be reported as Mineral Reserves.
(iv) The Mineral Reserve Statement should be reported with sufficient detail
indicating the source and type of mineralization, such as open pit,
underground, mineralization type, facies or ore body, surface dumps,
stockpiles and all other sources.
(v) State the proportion of the total Reserves that is likely to be mined within the
current assured tenure timeframe.
(vi) Reconciliation - Report historic reliability and reconciliation of the
performance parameters, assumptions and modifying factors. This should
include a comparison with the previous Reserve quantity and qualities, if
available. Where appropriate, report and comment on any historic trends
(e.g. global bias)
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T 9. Audits and reviews

THE
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(i) The overall conclusions of relevant audits or reviews, with specific reference
to compliance to relevant Codes, where significant deficiencies and remedial
actions should be disclosed.
(ii) State type of review (e.g. independent, external) and name of the reviewer(s)
together with their recognized professional qualifications.

See 9 A (i) and (ii).
(i) The material results of any audits or reviews of Mineral Resource estimates.
Specific reference regarding all material deficiencies and remedial actions

(i) The material results of any audits or reviews of Mineral Reserve estimates.
Specific reference regarding all material deficiencies and remedial actions
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T 10. Other considerations
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(i) Description of any other material information that is likely to prevent or

facilitate the economic potential of the project.
(ii) A glossary of terms used in the report.

(i) Discuss possible opportunities that may affect the Mineral Resource.

(i) While any other material information or opportunities affecting the project
should be discussed, no material impediments to the profitable exploration of
the property should remain.
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T 11. Qualification of Competent Person(s) and other

key technical staff. Date and signature page
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(i) State the accountable Competent Persons full name, address, registration
number and name of the professional body or ROPO, on behalf of the JSE
Limited, of which he or she is a member. State the relevant experience, of
the Competent Person and other key technical staff who prepared and are
responsible for the Public Report.
(ii) The Competent Persons relationship to the issuer of the report, if any, should
be clearly defined.
(iii) The Public Report should include a signature page for the Competent Person
to attest to its release. Such page should include the date of sign-off and the
effective date of the report.

See 11 A (i) to (iii).

See 11 A (i) to (iii).
SAMCODE
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so

the South African Mineral Codes

THE SOUTH AFRICAN CODE FOR THE REPORTING OF EXPLORATION RESULTS,

THE SOUTH AFRICAN CODE FOR THE

Competence and responsibility................9

Competence and responsibility..............71

Valuation fundamentals, approaches and

THE SOUTH AFRICAN CODE FOR THE

as amended July 2009

the South Afric an Miner a l Co des

The Companies Act

The Companies Act No 61 of the Republic of South Africa

Waste material that is mined during the course of mining

Discard and Reject

Discard and Reject Coal are coal or carbonaceous material

Extraction of the Mineral Reserve has been demonstrated to

A comprehensive design and costing study of the selected

Life of Mine Plan

A design and costing study of an existing operation in which

Those parts of the ore body, both economic and uneconomic,

A framework of mining components and processes taking

Production planning and scheduling, within the Mine Design,

Modifying Factors include mining, metallurgical, economic,

Although the term Mineral Reserve is used throughout

A comprehensive study of the viability of a range of options

A Recognized Overseas Professional Organization. A ROPO

The South African Mineral Resource Committee

South African Mineral Asset Valuation Committee

The SAMREC/SAMVAL Committee

the South Afric an Miner a l Co des

1. The SOUTH AFRICAN CODE FOR THE REPORTING OF EXPLORATION RESULTS,

2. The Code is applicable to the reporting of all styles of solid mineralization or

the South Afric an Miner a l Co des

presented, it should be clearly stated that it is a summary, with a reference

It is recognized that companies may be required to issue reports for more

COMPETENCE AND RESPONSIBILITY

the South Afric an Miner a l Co des

The lead Competent Person undertaking Mineral Resource or Mineral

Estimation of Mineral Resources may be a team effort (i.e. involving one

not, in this instance, imply a reduction in the level of geoscientific knowledge or

The term Modifying Factors is defined to include mining, metallurgical, economic,

Consideration of mining, metallurgical, economic,

Relationship between Exploration Results, Mineral Resources and

13. Public Reporting concerning a companys Exploration Results, Mineral Resources

REPORTING of Exploration Results

the South Afric an Miner a l Co des

Exploration information should include the interpretation of geological

REPORTING of Mineral Resources

Inferred category. Portions of a deposit that do not have reasonable and

The term Mineral Resource covers in-situ mineralization as well as dumps

the South Afric an Miner a l Co des

Where considered appropriate by the Competent Person, Mineral Resources

of mining in the mine plan includes Inferred Mineral Resources, a comparison of

the South Afric an Miner a l Co des

REPORTING of Mineral Reserves

32. A Mineral Reserve is the economically mineable material derived from a

Mineral Reserves are reported as inclusive of diluting and contaminating uneconomic

the South Afric an Miner a l Co des

The term economically mineable implies that extraction of the Mineral