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Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS BACKGROUND INFORMATION DOCUMENT COMPANY NAME: Cedar Point Trading 350 (Pty) Ltd DMR REF NO: NW 30/5/1/1/2/2511 PR 1 DESCRIPTION OF THE PROJECT Cedar Point Trading 350 (Pty) Ltd has applied for prospecting rights on the farms and portions listed in the table below, within the North West Province. The mineral being applied for : Chrome ore, platinum group metals and nickel ore. The properties are located approximately 7km east-southeast of Brits and 5km north of Hartbeespoort dam. Farm Name Number Registration Portion(s) Municipality Title Deed Division Madibeng Local Zilkaatsnek 439 JQ 137 T9064/997 Municipality Madibeng Local Zilkaatsnek 439 JQ 138 T107677/995 Municipality Madibeng Local Zilkaatsnek 439 JQ 156 T90293/1998 Municipality 216 Madibeng Local T95180/2008 Zilkaatsnek 439 JQ Remaining Municipality Extent 143 Madibeng Local T21736/995 Zilkaatsnek 439 JQ Remaining Municipality Extent 14 Madibeng Local T8045/925 Zilkaatsnek 439 JQ Remaining Municipality Extent 203 Madibeng Local T56414/2003 Zilkaatsnek 439 JQ Municipality 1.1 TYPICAL STEPS ASSOCIATED WITH PROSPECTING ARE : The prospecting will take place in three phases, each lasting approximately one year. PHASE 1; YEAR 1 (estimated) Activity Description EMPR Collection of all public domain information and third party information Data Review – available to the project team. Significant data will be gleaned from this data, Audits allowing for a more detailed assessment of the work required to allow for correct drill-hole placement to commence 177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 • Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS Satellite imagery – as discussed for interpretation with ground based surveys, Remote Sensing along with aerial photographic interpretation of area Physical field mapping of all surface features including rock outcrop, features Mapping and structures identified, although this has been concluded in the past by third party operators Fourteen drill holes totaling 400m excl. deflections, along with da ta glea ned Drilling from the records and trenching culminating in a resource statement published at an inferred and indicated level for the shallower central A total of 4 trenches are envisaged. Bulk metallurgical test work will require a Excavation bulk sample, of a size and scale as directed by Metallurgical test work to allow for the finalization of a Beneficiation Plant. Statistically a bulk sample of 30 000 tons per seam (MG1, MG2, MG3 and MG4) shall be required. Assay – Assaying of all drill core and trenching samples collected Mineralogical & Metallurgical Testing Aeromagnetic Both the use of the public available Aeromagnetic survey data, leading onto a Survey localized land based survey in areas where required. Modeling and Preliminary structural and ore body modeling of the results to date. Interpretation Extensive use to be made of consultants both for mining, geology and Consultants engineering design work. In addition, contractors needed for re-establishing and equipping the mine infrastructure to allow for bulk sampling and mine assaying work to be undertaken. PHASE 2; YEAR 2 (estimated) Activity Description EMPR Commence with a more detailed environmental management and scoping report with the view to commence with the mine, including a Long term sustainable alternate land use study and the viability thereof. Conclude all outstanding rehabilitation obligations within the guidelines stipulated. Data Review Compilation and presentation of exploration work and third party information undertaken to allow for Board feedback and second phase finalization. Remote Corroborating the physical data collected with the previous remote sensing Sensing data. Mapping Geotechnical/Structural mapping and interpretation based on the first phase of exploration on the outlying properties Geochemical Soil geochemical analysis in secondary areas delineated for examination Drilling Eleven drill holes totaling 300m excl. deflections, culminating in the resource statement published at an indicated level for shallow areas. Excavation Complete trenching outlined above Assay – Complete preliminary metallurgical/mineralogical test work of the core and Mineralogical trenching samples. This is a detailed phase of ensuring marketing of the & product is viable. Metallurgical Testing 177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 • Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS Geophysics Nil Modeling and Preliminary mine design models, with Metallurgical design based on Interpretation preliminary metallurgical test work having been undertaken. Detailed structural and economic study of ore body to allow for the modeling. Consultants These will include mining specialists, metallurgical specialists and contractors and mining contractor input. Phase 3, Year 3 Activity Description EMPR Completion of full Mining EMPR and lodgment of the mining right application to allow for DMR presentation and implementation on mine go ahead. Completion of any drilling Rehab still to be completed, to the satisfaction of the DMR. Data Review Ongoing Corroboration of all facets of information obtained, both previous data on chromite collected. Remote Update and corroborating additional physical data being obtained. Sensing Mapping Continued incorporation of data achieved throu gh drilling and trenching into structural and ore body models and maps. Drilling A total of six drill holes totaling 300m including deflections on the remaining properties, to create and lift the previously disclosed resource level from inferred/indicated to measured at shallow horizons and indicated at greater depth. Excavation Proceed with the bulk sampling along perceived sub -outcrop of the LG seams of interest (drilling related information), with the aim to finalize metallurgical trails and sales agreements for mining. Assay – Assaying of all drill and trench samples in the described manner. Detailed Mineralogical & mineralogical study of the core/trench/bulk sample to allow for Metallurgical finalization of metallurgical properties and plant design for mining Testing purposes. This will allow for the detailed mine design to allow for conversion to be lodged given a mining work program. Geophysics Nil Modeling and Detailed structures and ore body modeling with dedicated mining plan Interpretation and schedule, with physical sign-off by third party independent consultants at the indicated level. Consultants • Independent mining consultant modeling and sign off of resources • Metallurgical consulting and mineralogical testing. 2 DESCRIPTION OF THE PROJECT AREA 2.1 LOCATION The properties are located approximately 7 km east-southeast of Brits and 5 km north of Hartbeespoort dam. The proposed prospecting area (shaded in red below) is located in the Madibeng Local Municipality. 177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 • Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS Figure 1: Location of proposed prospecting area within North- West Province The proposed area location falls outside but still next to the Magaliesberg Protected Environment, a formally protected area. See figure below. Figure 2: Protected Areas 177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 • Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS 2.2 CLIMATE The town of Brits is located approximately 7 km from the proposed site and the climate data of Brits will provide the most accurate climate for the proposed area. The monthly distribution of average daily maximum temperatures (left chart below) shows that the average midday temperatures for Brits range from 19.8°C in June to 29°C in December and January. The average night time temperature for July is 2.1°C with the warmest night time temperature in December and January, with an average of 16°C. Source: SA Explorer Brits’ main rainy season starts in November and ends in March. Although rain can be expected during September, April and May, the rainfall average for these months is below 32 mm. An average rainfall of 540 mm is expected per year, with the most rainfall expected in January (105mm). Source: SA Explorer 2.3 TOPOGRAPHY The entire site gently slopes from south to north. With the most southern point at an elevation of 1246m and the northern part at an elevation of 1208m. This is a slope of 38 meters over 4 125 meters. 2.4 SOILS Soils of the application area include both very fertile soils as well those that are of a rocky and infertile nature. The following soil types are common and have been distinguished on the basis of the regional land types, they include: • Arcadia; • Hutton; • Mispah; • Rock; 177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 • Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS • Shortlands; and • Glenrosa. Mountainous areas typically have a soil type that comprises miscellaneous soils and the lower lying areas at the foot of the mountains consists of red soils as part of the plinthic catena. Further downslope and north of the Magaliesberg occur the vertic, melanic and undifferentiated red structured soils. 2.5 GEOLOGY The application area extends over an area located on the far eastern section of the Western Limb of the Bushveld Igneous Complex (BIC). There are three principal geological zones that characterise the application area. These include in the main : • Meta-argillaceous rocks (slate and hornfels) to the south of the Magaliesberg; • Meta-arenaceous rocks (quartzite) of the Magaliesburg; and • Ultramafic
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