Minxcon Consulting (Pty) Limited a Technical Report on the Blanket Mine in the Gwanda Area, Zimbabwe
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Minxcon Reference: M2014-056a Date: 09 July 2015 Final (b) Minxcon Consulting (Pty) Limited A Technical Report on the Blanket Mine in the Gwanda Area, Zimbabwe QUALIFIED PERSON DECLARATION I, Daan van Heerden, in the capacity of Qualified Person do hereby certify that:- 1. To the best of my knowledge, information and belief, the Report contains all scientific and technical information required to be disclosed to make the Report not misleading. 2. The facts presented in the Report are correct to the best of my knowledge. 3. The analyses and conclusions are limited only by the reported forecasts and conditions. 4. I have no present or prospective interest in the subject property or asset. 5. My compensation, employment or contractual relationship with the Commissioning Entity is not contingent on any aspect of the Report. 6. I have no bias with respect to the assets that are the subject of the Report, or to the parties involved with the assignment. Yours faithfully, D v HEERDEN B.Eng (Mining), M.Comm. (Bus. Admin.) Pr. Eng., FSAIMM, AMMSA DIRECTOR Prepared by Minxcon (Pty) Ltd Directors: NJ Odendaal, D Van Heerden, CP Mostert Registration No. 2004/029587/07 Qualified Person D van Heerden (Director): B.Eng. (Min. Eng.), M.Comm. (Bus. Admin.), ECSA, FSAIMM, AMMSA Authors J Burger (Mining Engineer) Pr. Eng. Mining, Fin. Management, MMC, MSAIMM, ECSA J Knight (Process Engineer) B.Eng. (Chem), B.Eng. Hon. (MOT), MSAIMM FJJ Fourie (Mining Engineer): B.Eng. (Mining), SAIMM D Dreyer (Mechanical Engineer) B.Eng. (Mechanical) Reviewed by Directors D van Heerden (Director): B.Eng. (Min. Eng.), M.Comm. (Bus. Admin.), ECSA, FSAIMM, AMMSA D Clemente (Director) NHD (Ext. Met.), GCC, BLDP (WBS) MMMA, FSAIMM U Engelmann (Director) B.Sc. (Zoology & Botany), B.Sc. (Geol.), B.Sc. Hons. (Geol.), GSSA, Pr. Sci. Nat. NJ Odendaal (Director): BSc (Geol.), BSc (Min. Econ.), MSc. (Min. Eng.), Pr. Sci. Nat., FSAIMM, MGSSA, MAusIMM Prepared by Minxcon (Pty) Ltd Directors: NJ Odendaal, D Van Heerden, CP Mostert Registration No. 2004/029587/07 Technical Report on the Blanket Mine, Gwanda Area, Zimbabwe i INFORMATION RISK This Report was prepared by Minxcon (Pty) Ltd (“Minxcon”). In the preparation of the Report, Minxcon has utilised information relating to operational methods and expectations provided to them by various sources. Where possible, Minxcon has verified this information from independent sources after making due enquiry of all material issues that are required in order to comply with the requirements of the SAMREC and NI 43- 101 Codes. OPERATIONAL RISKS Mining and mineral and coal exploration, development and production by their nature contain significant operational risks. It therefore depends upon, amongst other things, successful prospecting programmes and competent management. Profitability and asset values can be affected by unforeseen changes in operating circumstances and technical issues. POLITICAL AND ECONOMIC RISK Factors such as political and industrial disruption, currency fluctuation and interest rates could have an impact on future operations, and potential revenue streams can also be affected by these factors. The majority of these factors are beyond the control of any operating entity. Prepared by Minxcon (Pty) Ltd Technical Report on the Blanket Mine, Gwanda Area, Zimbabwe ii TABLE OF CONTENTS Item 1 – Executive Summary ........................................................................................... 1 Item 1 (a) – Property Description ......................................................................................1 Item 1 (b) – Ownership of the Property ...............................................................................2 Item 1 (c) - Geology and Mineral Deposit ............................................................................2 Item 1 (d) - Overview of the Project Geology .......................................................................3 Item 1 (e) - Local Property Geology ...................................................................................4 Item 1 (f) – Status of Exploration ......................................................................................6 Item 1 (g) – Mineral Resource and Mineral Reserve Estimates ....................................................6 Item 1 (h) – Development and Operations............................................................................7 Item 1 (i) - Market Valuation ..........................................................................................7 Item 1 (j) – Qualified Person’s Conclusions and Recommendations ........................................... 10 Item 2 – Introduction .................................................................................................... 15 Item 2 (a) – Issuer Receiving the Report ............................................................................ 15 Item 2 (b) – Terms of Reference and Purpose of the Report .................................................... 15 Item 2 (c) – Sources of Information and Data Contained in the Report ....................................... 15 Item 2 (d) – Qualified Persons’ Personal Inspection of the Property .......................................... 15 Item 2 (e) – Forward-Looking Statement ........................................................................... 16 Item 3 – Reliance on Other Experts .................................................................................. 17 Item 4 - Property Description and Location ....................................................................... 18 Item 4 (a) – Area of the Property .................................................................................... 18 Item 4 (b) – Location of the Property ............................................................................... 18 Item 4 (c) – Mineral Deposit Tenure ................................................................................. 18 Item 4 (d) – Issuer’s Title to/Interest in the Property ........................................................... 21 Item 4 (e) – Royalties and Payments ................................................................................ 22 Item 4 (f) – Environmental Liabilities ............................................................................... 22 Item 4 (g) – Permits to Conduct Work .............................................................................. 22 Item 4 (h) – Other Significant Factors and Risks .................................................................. 22 Item 5 – Accessibility, Climate, Local Resources, Infrastructure and Physiography ...................... 23 Item 5 (a) – Topography, Elevation and Vegetation .............................................................. 23 Item 5 (b) – Access to the Property ................................................................................. 23 Item 5 (c) – Proximity to Population Centres and Nature of Transport ....................................... 23 Item 5 (d) – Climate and Length of Operating Season ............................................................ 23 Item 5 (e) – Infrastructure ............................................................................................ 25 Item 6 – History .......................................................................................................... 26 Item 6 (a) – Prior Ownership and Ownership Changes ........................................................... 26 Item 6 (b) – Historical Exploration and Development ............................................................ 26 Item 6 (c) – Historical Mineral Resource Estimates ............................................................... 26 Item 6 (d) – Historical Mineral Reserve Estimates ................................................................ 26 Item 6 (e) – Historical Production ................................................................................... 26 Item 7 – Geological Setting and Mineralisation .................................................................... 28 Item 7 (a) - Regional Geology ........................................................................................ 28 Item 7 (b) - Local Geology ............................................................................................ 29 Item 7 (c) - Project Geology .......................................................................................... 30 Item 7 (d) - Blanket Mine Mineral Deposits ........................................................................ 32 Item 8 – Deposit Types .................................................................................................. 34 Item 8 (a) - Disseminated Sulphide Replacement Reefs ......................................................... 34 Item 8 (b) - Quartz-Filled Reefs and Shears ....................................................................... 34 Item 8 (c) - Mineralisation ............................................................................................ 35 Prepared by Minxcon (Pty) Ltd Technical Report on the Blanket Mine, Gwanda Area, Zimbabwe iii Item 9 – Exploration ..................................................................................................... 36 Item 9 (a) – Survey Procedures and Parameters .................................................................. 37 Item 9 (b) - Sampling Methods and Sample Quality .............................................................. 37 Item 9 (c) – Sample Data .............................................................................................