Mineral Resources and Reserves report Joint venture – Assmang Competent person’s report on Mineral Resources and Mineral Reserves The report is issued as the annual update of the Mineral Resources and Reserves to inform shareholders and potential investors of the mineral assets held by Assmang. Salient features 2014 The Measured and Indicated Mineral Resources for Village ore body increased by 9% to 44,09 million tons at a grade Beeshoek Mine of 64,36% Fe as a result of recent drilling and update of the resource model. The Mineral Reserve tonnage for King Pit increased from 315,68 at 64,64% Fe to 380,62 million tons at 64,47% Fe Khumani Mine mainly due to re-optimisation of the Pit. A total Mineral Reserve of 118,98 million tons at 40,9% Mn has been declared for Seam 2 after completion of Nchwaning Mine appropriate mine planning studies. General statement Assmang’s method of reporting Mineral generally using the CAE Studio 3 and Strat3D Shepherd Kadzviti graduated with a BSc and Resources and Mineral Reserves conforms software packages. MSc in Geology from the University of to the South African Code for Reporting Zimbabwe. He later completed a Graduate Exploration Results, Mineral Resources and The classification into Measured, Indicated Diploma in Mining Engineering (GDE) at the Mineral Reserves (SAMREC Code) of 2007, as and Inferred Mineral Resources is done by University of the Witwatersrand. He worked amended in 2009. It sets out minimum means of geostatistical parameters such as at RioZim’s Renco Gold Mine for 14 years in standards, recommendations and guidelines kriging efficiency, kriging variance, slope of various capacities of Geologist, Technical for Public Reporting of Exploration Results, regression and a combination of the number Services Superintendent and Mine Manager. Mineral Resources and Mineral Reserves in of samples used in estimation and the In 2005, he joined Anglo American Platinum South Africa. dynamic search volume. The spacing of as an Evaluation Geologist with boreholes, geological structures and responsibilities for geological database The convention adopted in this report is that continuity of the mineralisation are also management and mineral resource Mineral Resources are reported inclusive of considered in the classification. estimation. After two years at Union Mine, he that portion of the total Mineral Resource was transferred to Anglo American Platinum converted to a Mineral Reserve. Resources The Mineral Resources and Mineral Reserves corporate office where he was appointed and reserves are quoted as at 30 June 2014. are reported on a total basis (ie 100%). When Resource Geologist. He then joined African the attributable beneficial interest of Assmang Rainbow Minerals (ARM) as Mineral Resource External consulting firms audit the resources on a mine or project is less than 100%, the Specialist in 2008 where he was involved in and reserves of the Assmang operations on actual percentage of the attributable interest is the evaluation of the various mineral deposits a three- to four-year cycle basis or when specified. Maps, plans and reports supporting for the group. In 2012, he was appointed substantial geological borehole data has resources and reserves are available for Group Mineral Resources Manager for ARM. been added to the database. Underground inspection at Assmang’s registered office and He is registered with the South African resources are in situ tonnages at the at the relevant mines. Council for Natural Scientific Professions as a postulated mining width, after deductions for Professional Natural Scientist in the field of geological losses. Underground Mineral Assmang operations have already had their practice of geological science, registration Reserves reflect tonnages that will be mined conversions from old-order mining licences number 400164/05, and as such is and processed while surface Mineral to new-order mining rights approved, with considered to be a Competent Person. Reserves consist of dumps/stockpiles only a few in the process of registration. already mined and ready for processing. All Competent Persons at the operations Both are quoted at the grade fed to the plant. Rounding of figures may result in have sufficient relevant experience in the Open-pit Mineral Resources are quoted as computational discrepancies on the Mineral type of deposit and in the activity for in situ tonnages and Mineral Reserves are Resource and Reserve tabulations. which they have taken responsibility. Details tonnages falling within an economic pit-shell. of the Competent Persons are available from Competence the Company Secretary on written request. The evaluation method is generally Ordinary The Competent Person with overall Kriging with mining block sizes ranging responsibility for the compilation of the from 10 x 10 metres to 100 x 100 metres to Mineral Resources and Reserves report is 250 x 250 metres in the plan view. The blocks Shepherd Kadzviti, Pr.Sci.Nat, an ARM vary in thickness from 2,5 to 10 metres. The employee. evaluation process is fully computerised, PAGE 1 ASSORE MINERAL RESOURCES AND RESERVES REPORT 2014 Mineral Resources and Reserves report continued The following Competent Persons were and open-cast development. Open-cast and He is registered with the South African involved in the calculation of Mineral underground resources are in situ tonnages Council for Technical and Professional Resources and Reserves: at the postulated mining width, after Surveyors (PLATO) as a professional mine deductions for geological and mining losses. surveyor in the field of Mine Surveying and M Burger Mineral Resource Management, registration Pr.Sci.Nat The pyrophyllite deposit at Wonderstone is number PMS0201. Mr Magalhaes is also a (SACNASP) Iron relatively consistent and mined via an member of the South African Institute of open-cast operation. The utilisation of the Mining and Metallurgy (SAIMM) and the S van Niekerk pyrophyllite in the processing plant is not Institute of Mine Surveyors of South Africa Pr.Sci.Nat based on grade but on the ore’s natural (IMSSA) and as such is considered to be a (SACNASP) Iron characteristics ie colour, consistency of Competent Person under section 4.3 of the B Ruzive hardness, free of cracks etc. The SAMREC Code. Pr.Sci.Nat classification into Measured, Indicated and (SACNASP) Manganese Inferred Mineral Resources relates to All Competent Persons at the operations A Pretorius* borehole spacing and the open-cast have sufficient relevant experience in the Pr.Sci.Nat development. The resources consist of type of deposit and in the activity for which (SACNASP) Chrome stockpile and in situ tonnages after they have taken responsibility. deductions for mining and processing losses. PJ van der Merwe The following Competent Persons were Pr.Sci.Nat Rounding of figures may result in involved in the calculation of Mineral (SACNASP) Iron/Manganese/Chrome computational discrepancies on the Mineral Resources and Reserves: M Hlangwane Resource and Reserve tabulations. Ms C van der Merwe, Geologist (BSc (Hons): Pr.Sci.Nat Geology), is an African Mining and Trust (SACNASP) Iron Maps, plans and reports supporting Company Limited employee. She has been *External consultant resources and reserves are available for the mine geologist for the subsidiary inspection at the registered office and the companies since July 2013. Her hands-on S Kadzviti relevant mines. involvement aided in the resources-reserve Pr.Sci.Nat calculation. Ms van der Merwe is member of 24 Impala Road, Chislehurston, Sandton Competence the Geological Society of South Africa (GSSA). The Competent Person with overall 15 September 2014 responsibility for the compilation of Definitions the Mineral Resources and Reserves for The definitions of Mineral Resources and Subsidiary companies the subsidiary companies report is Reserves, quoted from the SAMREC Code General statement Mr CA Magalhaes, Pr MS, an employee of (2007, as amended in July 2009), are as The method employed by Assore’s subsidiary African Mining and Trust Company Limited. follows: companies to report Minerals Resources and Reserves, conforms to the South African Mr Magalhaes graduated from Technikon A “Mineral Resource” is a concentration or Code for Reporting Mineral Resources and Witwatersrand with a National Diploma – occurrence of material of economic interest Mineral Reserves (SAMREC Code). Mine Survey and a National Higher Diploma in or on the earth’s crust in such form, – Mineral Resource Management. He later quality and quantity that there are The convention adopted in this report is that completed a Graduate Diploma in Mining reasonable and realistic prospects for Mineral Resources are reported inclusive of Engineering (GDE) at the University of eventual economic extraction. The location, that portion of the total Mineral Resource Witwatersrand as well as the Government quantity, grade, continuity and other converted to a Mineral Reserve. Resources Certificate of Competency – Mine Survey. He geological characteristics of a Mineral and reserves are quoted as at 30 June 2014. worked at Impala Platinum and Anglo Resource are known, or estimated from Platinum in various capacities over a 13-year specific geological evidence, sampling and The consistent thickness and grade of the period. In 2006 he joined African Mining and knowledge interpreted from an appropriately chromitite seams at Rustenburg Minerals Trust Company Limited as the Chief Surveyor constrained and portrayed geological model. and Zeerust Chrome translates into fairly and later