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Report Format NI 43-101 (Rockwell) 2010 Tania R Marshall Explorations Unlimited Glenn A Norton Rockwell Diamonds Inc REVISED TECHNICAL REPORT ON THE KLIPDAM/HOLPAN ALLUVIAL DIAMOND MINE (INCORPORATING THE KLIPDAM, HOLPAN MINES AND THE ERF 1 AND ERF 2004 PROSPECTING PROPERTIES), BARKLY WEST DISTRICT, NORTHERN CAPE PROVINCE, REPUBLIC OF SOUTH AFRICA FOR ROCKWELL DIAMONDS INC Effective Date: 30 November 2010 Signature Date: 30 May 2011 Revision Date: 30 June 2011 ROCKWELL DIAMONDS INC, KLIPDAM/HOLPAN MINE November 30, 2010 Table of Contents Page 1 INTRODUCTION ........................................................................................................................................... 14 1.1 TERMS OF REFERENCE AND SCOPE OF WORK ....................................................................................................... 14 1.2 SOURCES OF INFORMATION .............................................................................................................................. 17 1.3 UNITS AND CURRENCY .................................................................................................................................... 17 1.4 FIELD INVOLVEMENT OF QUALIFIED PERSONS ...................................................................................................... 17 1.5 USE OF DATA ................................................................................................................................................ 18 2 RELIANCE ON OTHER EXPERTS ..................................................................................................................... 19 2.1 LEGAL OPINION ............................................................................................................................................. 19 2.2 DIAMOND VALUATION .................................................................................................................................... 19 3 PROPERTY DESCRIPTION AND LOCATION .................................................................................................... 20 3.1 PROPERTY DESCRIPTION AND LOCATION .............................................................................................................. 20 3.2 PERMITS, CONTRACTS AND AGREEMENTS ........................................................................................................... 23 3.2.1 Royalty Payments ................................................................................................................................. 23 3.2.2 Surface ownership / land use rights ...................................................................................................... 23 3.2.3 Mineral rights ....................................................................................................................................... 23 3.2.3.1 Mining Right .................................................................................................................................................. 24 3.2.3.2 Prospecting Rights......................................................................................................................................... 24 3.3 BEE COMPLIANCE .......................................................................................................................................... 25 3.4 ENVIRONMENTAL ........................................................................................................................................... 25 3.4.1 Environmental Rehabilitation ............................................................................................................... 25 3.4.2 Water permits ....................................................................................................................................... 27 3.5 SOCIAL RESPONSIBILITY ................................................................................................................................... 27 3.5.1 Social and Labour Plans ........................................................................................................................ 27 4 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .............................. 29 4.1 TOPOGRAPHY, ELEVATION AND VEGETATION ........................................................................................................ 29 4.2 ACCESS AND INFRASTRUCTURE .......................................................................................................................... 30 4.3 CLIMATE ....................................................................................................................................................... 31 5 HISTORY ...................................................................................................................................................... 32 5.1 PREVIOUS OWNERSHIP .................................................................................................................................... 32 5.2 PREVIOUS EXPLORATION/DEVELOPMENT ............................................................................................................ 33 5.2.1 Historical ............................................................................................................................................... 33 6 GEOLOGICAL SETTING ................................................................................................................................. 34 6.1 GENERAL GEOLOGY AND MINERAL DEPOSITS OF SOUTH AFRICA ............................................................................. 34 6.2 THE ALLUVIAL DIAMOND FIELDS OF THE MIDDLE VAAL RIVER ................................................................................. 35 6.2.1 Geochronology ...................................................................................................................................... 38 6.3 PROPERTY GEOLOGY (KLIPDAM/HOLPAN) .......................................................................................................... 38 6.3.1 Fluvial-alluvial Deposits ........................................................................................................................ 39 6.3.2 Derived (Rooikoppie) Deposits .............................................................................................................. 40 6.4 PROPERTY GEOLOGY (ERFS 1 AND 2004) ........................................................................................................... 43 7 DEPOSIT TYPES ............................................................................................................................................ 44 7.1 FLUVIAL-ALLUVIAL DEPOSITS ............................................................................................................................ 44 7.1.1 Older gravels ......................................................................................................................................... 44 7.1.2 Younger gravels .................................................................................................................................... 45 7.2 DERIVED (ROOIKOPPIE GRAVELS) ...................................................................................................................... 46 7.2.1 Eluvial Rooikoppie Gravel ..................................................................................................................... 47 7.2.2 Colluvial Rooikoppie Gravel .................................................................................................................. 48 8 MINERALIZATION ........................................................................................................................................ 50 Page 2 ROCKWELL DIAMONDS INC, KLIPDAM/HOLPAN MINE November 30, 2010 8.1 NATURE OF MINERALISATION ........................................................................................................................... 50 8.2 SURROUNDING ROCK TYPES/REGIONAL BEDROCK GEOLOGY .................................................................................. 51 8.3 GEOLOGICAL CONTROLS .................................................................................................................................. 53 8.4 MINERALISATION ON KLIPDAM/HOLPAN MINE .................................................................................................... 53 9 EXPLORATION ............................................................................................................................................. 56 9.1 REMOTE SENSING (SATELLITE IMAGERY / AERIAL PHOTO INTERPRETATION) ............................................................... 56 9.2 GEOPHYSICS .................................................................................................................................................. 56 10 DRILLING ..................................................................................................................................................... 58 10.1 LOCATION ..................................................................................................................................................... 59 10.2 RESULTS ....................................................................................................................................................... 60 10.3 REPRESENTATIVENESS ..................................................................................................................................... 62 11 SAMPLING METHOD AND APPROACH ........................................................................................................
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