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 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 . 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 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 / mafic intrusive rocks (dolerite, diabase, gabbro, norite, carbonatite, anorthosite and pyroxenite) north of the Magaliesberg.

The intrusive Western Limb contains the economic Critical Zone that hosts rich concentrations of PGM’s and Chromite. The application area comprises an anticipated 6 geological types which include: Quartzite; Norite, hybrid rocks, diabase and epidiorite; Norite, pyroxenite; Norite- anorthosite; Slate, shale, hornfels; and Gabbro, norite.

Dolerite dykes and undifferentiated surface deposits occur in isolated localities in the application area.

2.6 GROUND WATER The proposed application area falls within the Layered Suite of the BIC. Groundwater occurrence is mainly related to joints and fractures in competent mafic rocks that have undergone tensional and compressional stresses and offloading. The aquifer yields between 0.5-2.0 l/s as a result of the low permeability of the clay rich soils (i.e. black turf soils) that reduce recharge to underlying aquifers.

2.7 SURFACE WATER (RIVERS ) The proposed area falls within the Crocodile West Groot Marico Water Catchment Area. The specific area falls within the A21J quaternary drainage area. The map below illustrates a wetlands, rivers and NFEPA (National Freshwater Ecosystem Priority Area). The proposed area falls within a sub-quaternary NFEPA due to the Crocodile River. It should be noted that there are no rivers crossing the proposed area. There are two man-made farm dams on the property which are recorded as artificial wetlands on the proposed area.

177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 • Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS

Figure 3: Surface Water Map

2.8 VEGETATION The prospecting area falls over two vegetation types; the Thornveld and Moot Plains Bushveld The Marikana Thornveld consists out of open Acacia karroo woodland, occurring is valleys ans slightly undulging plains as well as lowland hills. Shrubs are dense along drainage lines. This vegetation type is classified as endangered.

The Moot Plains Bushveld consist out of open to closed, low often thorny savannah dominated by various species of Acacia in the bottomlands and plains as well as woodlands of varying height and density on the lower hillsides. A herbaceous layer is dominated by grasses. This vegetation type is classified as vulnerable.

However the proposed prospecting area is located on already disturbed areas due to agricultural activities.

2.9 ANIMAL LIFE It should be noted that the proposed prospecting area is located on already disturbed areas due to agricultural activities. The neighbouring Magaliesberg Protected Environment which runs from Rustenburg do provide for areas where species such as hyena and leopard can exist. Caves found on this mountain range are an important breeding site for bats and other animal species.

The proposed prospecting area falls within the Magaliesberg and Witwatersberg (ZA018) Important Bird Area. Birds that can be expected in this area include: Cape Vulture (Gyps coprotheres ), White-backed Vulture (Gyps africanus), Lappet-faced Vulture (Torgos tracheliotus), Verreauxs' Eagle (Aquila verreauxii), African Grass Owl (Tyto capensis ), Secretarybird (Sagittarius serpentarius), Long-crested Eagle (Lophaetus occipitalis) and White-bellied Korhaan (Eupodotis senegalensis).

2.10 BIODIVERSITY The most southern part of the proposed area borders the Magaliesberg Protected Environment. According to the Magaliesberg Biosphere Map of January 2015, the proposed area falls within a buffer zone of the Magaliesberg Protected Area. The area is also proposed to be endorsed.

177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 • Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS

177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 • Cell: (072) 391 4679 • Fax: (086) 664 2908 • Email: [email protected] • VAT: 4120254984 Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS

According to the mining and biodiversity Guidelines the Magaliesberg Protected Environment falls within a legally protected zone where mining is prohibited.

The proposed area falls within two areas recorded as having biodiversity importance, the highest importance and high importance. It should be noted that the proposed prospecting area is located on already disturbed areas due to agricultural activities. The map below indicates the recorded biodiversity Importance areas and the table following the map gives more information on the Biodiversity Important areas.

Figure 4: Mining Biodiversity Guidelines

The Eland Platinum Mine is located 200m from the application area and the Hernic Chrome mine 400m to its west, also within the High Importance area.

Table 1: Biodiversity Priority Areas and Implications for High Importance areas

Ground truthing reveals that the area has previously been used for agricultural activities and that no significant biodiversity services remains.

177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 • Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS

2.11 ECOSYSTEM STATUS The proposed area is recorded as falling within a Vulnerable Ecosystem. It should be noted that the proposed prospecting area is located on already disturbed areas due to agricultural activities.

Figure 5: Ecosystem Status

2.12 SURROUNDING ACTIVITIES The surrounding activities include the Zilkaats Estate, Margret Roberts Fairy Gallery, Cheetah and Wildlife Centre. 200m north of the Application area is the Eland Platinum mine. 400m to the west is the Hernic Chrome Mine. A borrow pit is located in the northern part of the application area.

2.13 SOCIO -ECONOMIC ENVIRONMENT The Proposed site is located in Ward 21, Madibeng Local Municipality, North West Province.

According to Census 2011, Madibeng Local Municipality has a total population of 477 381. The unemployment rate in this municipality is 30.4%. 7.8% of the population aged 20+ has no schooling. The living standards within Madibeng Local Municipality is summarised in the table below: Description Percentage Flush toilet connected to sewage 27,2% Weekly refuse removal 25,7% Piped water inside dwelling 22,2% Electricity for lighting 81%

The percentage of people having access to electricity went up from 69.7% in 2001 to 81% in 2011. The weekly refuse removal improved by only 0,2% over this 10 year time period. Only 22.5% of the population within this local municipality had access to a flushed toilet in 2001. This percentage went up by 4,7% in 2011.

177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 • Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS

• Soil pollution 3 ENVIRONMENTAL IMPACTS • Compaction of soil The following potential issues have been identified • Removal/ damage of natural vegetation but still nee ds to be confirmed during the impact • Proliferation of invasive species assessment process: • Dust pollution • Change of current land use • Contamination of groundwater • Disruption of views • Reduction in groundwater levels • Changes to the shape or form of the land • Consumption of water • Loss of sense of place • Socio-economic impacts • Reduction in land capability • Destruction of unidentified cultural heritag e • Litter sites and artefacts • Noise • Loss of soil & topsoil

4 INFORMATION ON PROCESS EcoPartners has been appointed to assist with the application process, to compile the required environmental reports and to assist with the consultation process that forms part of this prospecting right application.

The prospecting right application process is depicted in the flow chart below. The block highlighted by the red star indicates where in the process the application is currently.

*the application was made and acknowledged under the old regulations which this flow chart reflects

177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 • Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS

5 CONSULTATION In terms of the Mineral & Petroleum Resources Development Act (Act 28 of 2002), the state is the custodian of all mineral rights in and the Minister of Mineral Resources has the sole right to grant, refuse, suspend or cancel mineral rights.

Landowners and interested and affected parties are entitled to participate in and be consulted in respect of new prospecting applications. In the diagram above it can be seen that the authority and the applicant both has a role to play in notifying land owners and I&APs of the prospecting application.

The applicant or their appointed representative must: 1. Inform the landowner in writing that an application for a prospecting right over the relevant land has been accepted by the Regional Manager; 2. Provide sufficient detail of the proposed prospecting activities so as to enable the landowner to assess the potential impact of such activities on their use and enjoyment of the land; 3. Consult the landowner with a view to reaching agreement to the satisfaction of both parties as regards the impact of the proposed application; and 4. Submit the results of the consultation process to the Regional Manager within the requisite period.

One of the goals of consultation is to provide the landowner or lawful occupier with all the necessary information on all intended activities so that he or she can make an informed decision as to whether or not to make use of the internal procedures if the application is approved.

In order to ensure effective consultation, please register as a landowner or an Interested & Affected Party (I&AP) by completing the attached registration form with your contact details. This will enable us to contact you again for further consultation.

Please provide initial comments based on the information provided in the Background Information Document. This will enable us to timeously identify shortcomings and/or concerns to further enhance the consultation process with you.

177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 • Cedar Point Trading 350 (Pty)Ltd. t/a CEDAR POINT MINERALS

6 RESPONSE / REGISTER FORM Attention: Phineas Maake Company: EcoPartners (Pty) Ltd Postal Address: PO Box 73513, Fairland, 2030 Fax: 086 664 2908 Tel: 011 431 2251 Email: [email protected]

Full Name: Company: Postal Address: Fax: Tel/Cell: Email:

Signature:

Disclose your particular area of interest in the application:

Land owner Neighbour Financial Business None Government Other (Please specify)

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Do you have any other comments and or suggestions on the information provided in the BID?

Elaborate: ______

______

______

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--THANK YOU FOR YOUR TIME AND PARTICIPATION --

177 Weltevreden Road, BERARIO, 2195 •Tel: (011) 431 2251 •