Lonmin Platinum
Mineral Resources and Reserves
30 September 2007
Currently, Lonmin’s entire Platinum Group Element (PGE) Mineral Resources and Mineral
Reserves are contained within the Bushveld Complex, which is located in the Republic of South
Africa. The Bushveld Complex hosts the World’s largest resources of Platinum Group Elements
(PGE’s), chromium, and vanadium. The PGE’s (Platinum, Palladium, Rhodium, Ruthenium,
Osmium and Iridium) are intimately associated with Gold, Nickel and Copper, which form
important bi-products of PGE Mining in South Africa.
The Bushveld Complex intruded 2.06 billion years ago into the supracrustal sedimentary
sequence of the Transvaal Supergroup, and is the largest known layered intrusion on Earth,
underlying an area of approximately 66,000 km². The Bushveld Complex consists of four major
limbs defining a lobate cruciform shape. Lonmin’s Platinum Group Element Mineral Resources
are contained within all four of the major limbs:
•
the Western Limb (Marikana Operations and Pandora);
•
the Eastern Limb (Limpopo Operations);
•
the Northern Limb (The Akanani Project); and
•
the poorly exposed Bethal Limb (Loskop Joint Venture).
Locations of Lonmin’s Mineral Resources
Akanani
Limpopo
Northern Limb
Eastern Limb
Marikana
Western Limb
Bethal Limb
Loskop
Pandora
Approximate schematic locations of Lonmin Mineral Resources
N
0
100 km
Lonmin’s PGE Mineral Resources in the Eastern and Western Limbs are hosted within the well
known Merensky Reef and UG2 Reef. Both of these units occur in the Upper Critical Zone of
the Rustenburg Layered Suite, which is a series of mafic and ultramafic cyclic units within which
all of the known economic PGE mineralised layers in these areas occur. The Merensky Reef is a
mineralised unit that occurs within, or in close association with, the Merensky Pyroxenite unit.
The UG2 Reef consists of a well mineralised chromitite layer and may include less well
mineralised units or portions of these units either underlying or overlying the main UG2
Chromitite Layer.
Lonmin’s PGE Mineral Resources in the Northern Limb are contained within the Platreef
Pyroxenite unit that is generally considered to represent the Critical Zone in this area. The
Platreef Pyroxenite can be in the order of 100’s of metres thick and contains zones of PGE
mineralisation that are associated with various lithological sub-divisions of the Platreef
Pyroxenite.
At the Loskop Joint Venture, two mineralised Units have been identified that are contained
within a sequence that Lonmin considers to be stratigraphically equivalent to the Upper Critical
Zone of the Eastern and Western Limbs of the Bushveld Complex.
Several significant changes have impacted the total Lonmin Mineral Resource and Reserve
estimate since September, 2006. The most significant of these changes have been the inclusion
of Akanani Mineral Resources and the Mineral Reserves at Limpopo Phase 2. Details of these,
and other changes, are included in the statements for the individual areas.
The 2007 Lonmin Mineral Resources and Reserves include Lonmin’s attributable portion only
and the 2006 Mineral Resources and Reserves have been re-stated in order to only reflect
Lonmin’s portion. The percentage of each of the areas attributable to Lonmin has not changed
during the year, therefore the quoted numbers allow for a direct comparison between 2006 and
2007.
A summary of Lonmin’s Mineral Resources and Mineral Reserves is presented in the following
tables:
Mineral Resources (Total Measured, Indicated & Inferred)
30-Sep-2007
30-Sep-2006
3PGE+Au1
Area
3PGE+Au1
Pt
Mt
Pt
Mt
g/t
Moz
Moz
g/t
Moz
Moz
Marikana
644.4
4.94
102.3
61.2
650.4
4.94
103.3
61.5
Limpopo2
178.8
4.19
24.1
12.1
124.6
4.72
18.9
9.5
Akanani
269.7
3.46
30.0
12.5
-
-
-
-
Pandora JV3
56.7
4.33
7.9
4.9
55.4
4.09
7.3
4.6
Loskop JV4
10.1
4.04
1.3
0.8
5.2
4.35
0.7
0.5
1,159.7
4.44
165.6
91.6
835.7
4.85
130.3
76.1
Total
Mineral Reserves (Total Proved & Probable)
30-Sep-2007
30-Sep-2006
3PGE+Au1
Area
3PGE+Au1
Pt
Mt
Pt
Mt
g/t
Moz
Moz
g/t
Moz
Moz
Marikana
331.4
4.18
44.5
26.6
334.9
4.14
44.6
26.6
Limpopo2
64.3
3.26
6.7
3.4
20.3
3.58
2.3
1.2
Pandora JV3
0.30
4.55
0.04
0.03
-
-
-
-
Total
396.0
4.03
51.3
30.0
355.2
4.11
47.0
27.7
Notes on the Lonmin Platinum Mineral Resources and Reserves
The Lonmin Platinum Mineral Resources and Reserves information was prepared on the
following basis:
a) 3PGEAu1 = Pt+Pd+Rh+Au (Loskop JV3 excludes Rh).
b) Limpopo2: includes Dwaalkop JV, in which Western Platinum Limited (82% owned by
Lonmin) has an interest of 50%.
c) Pandora JV3: Eastern Platinum Limited (82% owned by Lonmin) has an attributable
interest of 42.5% in the Pandora Joint Venture together with Anglo Platinum,
Mvelaphanda Resources and the Bapo Ba Mogale Mining Company.
d) Loskop JV4: Western Platinum Limited (82% owned by Lonmin) has an attributable
interest of 50% in the Loskop Joint Venture with Boynton Investments.
e) Incwala Resources owns 18% of both Western Platinum Limited and Eastern Platinum
Limited and 26% of Akanani.
f) All quoted Resources and Reserves includes Lonmin's attributable portion only and the
following percentages were applied to the total Mineral Resource and Reserve for each
property:
Area
Lonmin
Attributable
Marikana
82%
Limpopo –
Limpopo – Baobab,
Akanani
Dwaalkop JV Doornvlei, Zebedelia
41%
82%
74%
Pandora
34.85%
Loskop
41%
The 2006 Mineral Resources and Mineral Reserves have been re-stated in order to reflect
Lonmin’s portion only.
g) All figures are reported as metric tonnes (millions), grammes per tonne, percent or troy
ounces (millions).
h) All tabulated data have been rounded to one decimal place for tonnage and content and
two decimal places for grades.
i) Mineral Resources are inclusive of Mineral Reserves.
j) Mineral Resources are reported as "in situ" tonnes and grade and allow for geological
losses such as faults, dykes, potholes and Iron Rich Ultramafic Pegmatite (IRUP).
k) Proved and Probable Mineral Reserves are reported as tonnes and grade expected to be
delivered to the mill, are inclusive of diluting materials and allows for losses that may
occur when the material is mined.
l) Mine tailings dams are excluded from the above Mineral Resource summary.
m) For economic studies and the determination of pay limits, an exchange rate of R7.25 to
one US$ and the following metal prices were assumed:
Metal
Pt
Pd
USD/Oz
1,270 350
Rh
Ru
4,000 530
Metal
Ni
Cu
USD/tonne
33,000
6,600
Ir
Au
410
680
n) Dilutions are quoted as waste tonnes / ore tonnes in percent.
o) Unless otherwise stated, the Lonmin Mineral Resources and Reserves estimates were
prepared or supervised by various Lonmin Competent Persons.
Mineral Resource and Reserve Compliance
The Lonmin Mineral Resources and Mineral Reserves Report was prepared in accordance with
the guidelines as defined in the South African Code for Reporting of Mineral Resources and
Mineral Reserves (the 'SAMREC Code').
The SAMREC Code sets out minimum standards, recommendations and guidelines for Public
Reporting of Exploration Results, Mineral Resources and Mineral Reserves in South Africa. It
has been drawn up by the Working Group of the SSC Committee under the joint auspices of the
Southern African Institute of Mining and Metallurgy (SAIMM) and the Geological Society of
South Africa (GSSA).
An updated SAMREC Code was promulgated by the SAIMM and the Geological Society of
South Africa (‘GSSA’) in June 2007. The updated code followed a review of the March 2000
Code that has been conducted since 2004, and supersedes the 2000 edition.
Concurrently with the evolution of the SAMREC Code, the Committee for Mineral Reserves
International Reporting Standards (CRIRSCO), initially a committee of the Council of Mining
and Metallurgical Institutions (CMMI), has, since 1994, been working to create a set of standard
international definitions for the reporting of Mineral Resources and Mineral Reserves. As a
result of the CRIRSCO/CMMI initiative, considerable progress has been made towards
widespread adoption of globally consistent reporting standards. These are embodied in similar
Codes, guidelines and standards published and adopted by the relevant professional bodies
around the world. The definitions in the 2007 edition of the SAMREC Code are either identical
to, or not materially different from, those existing international definitions.
The definitions of Mineral Resources and Mineral Reserves as contained in the 2007 edition of
the SAMREC Code are as follows:
A ‘Mineral Resource’ is a concentration or occurrence of material of economic interest in or on
the Earth’s crust in such form, quality and quantity that there are reasonable and realistic
prospects for eventual economic extraction. The location, quantity, grade, continuity and other
geological characteristics of a Mineral Resource are known, or estimated from specific
geological evidence, sampling and knowledge interpreted from an appropriately constrained and
portrayed geological model. Mineral Resources are subdivided, and must so be reported, in
order of increasing confidence in respect of geoscientific evidence, into Inferred, Indicated and
Measured categories.
An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which volume and/or
tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred
from geological evidence and sampling and assumed but not verified geologically and/or through
analysis of grade continuity. It is based on information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill holes that may be limited in
scope or of uncertain quality and reliability.
An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be estimated with a
reasonable level of confidence. It is based on exploration, sampling and testing information
gathered through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are too widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced closely enough for continuity to be assumed.
A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and mineral content can be estimated with a high level of
confidence. It is based on detailed and reliable exploration, sampling and testing information
gathered through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes. The locations are spaced closely enough to confirm geological and
grade continuity.
A ‘Mineral Reserve’ is the economically mineable material derived from a Measured and/or
Indicated Mineral Resource. It includes diluting and contaminating materials and allows for
losses that are expected to occur when the material is mined. Appropriate assessments to a
minimum of a Pre-Feasibility Study for a project, or a Life of Mine Plan for an operation, must
have been carried out, including consideration of, and modification by, realistically assumed
mining, metallurgical, economic, marketing, legal, environmental, social and governmental
factors (the Modifying Factors). Such modifying factors must be disclosed.
A ‘Probable Mineral Reserve’ is the economically mineable material derived from a Measured
and/or Indicated Mineral Resource. It is estimated with a lower level of confidence than a Proved
Mineral Reserve. It includes diluting and contaminating materials and allows for losses that are
expected to occur when the material is mined. Appropriate assessments to a minimum of a PreFeasibility Study for a project, or a Life of Mine Plan for an operation, must have been carried
out, including consideration of, and modification by, realistically assumed mining, metallurgical,
economic, marketing, legal, environmental, social and governmental factors. Such modifying
factors must be disclosed.
A ‘Proved Mineral Reserve’ is the economically mineable material derived from a Measured
Mineral Resource. It is estimated with a high level of confidence. It includes diluting and
contaminating materials and allows for losses that are expected to occur when the material is
mined. Appropriate assessments to a minimum of a Pre-Feasibility Study for a project, or a Life
of Mine Plan for an operation, must have been carried out, including consideration of, and
modification by, realistically assumed mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors. Such modifying factors must be disclosed.
Competent Persons
Various Competent Persons, as defined by the SAMREC Code and stated in the relevant sections
of this report, prepared the Mineral Resource and Mineral Reserve estimates. These estimates
were reviewed and signed off by the Lonmin Competent Person for Mineral Resources, J. C.
Witley, and the Lonmin Competent Person for Mineral Reserves, J. Hudson.
J. C. Witley is a Competent Person as defined by the SAMREC Code, being registered as a
Professional Natural Scientist with the South African Council for Natural Scientific Professions
(SACNASP), a member of the Geological Society of South Africa (GSSA) and with more than
five years experience relevant to PGE Mineral Resource estimation.
J Hudson is a Competent Person as defined by the SAMREC Code, being registered as a
professional mining engineer with the Engineering Council of South Africa (ECSA) and a fellow
of the Southern African Institute of Mining and Metallurgy (SAIMM) with more than five years
relevant experience in Mineral Reserve estimation.
External Audit
Consistent with Lonmin’s guideline of conducting external audits and reviews of it’s Mineral
Resources and Reserves at least every three years, or when any significant changes have been
implemented, the following audit work was completed:
•
Snowden Mining Industry Consultants (Johannesburg Division) performed an
independent audit of Lonmin Platinum’s Marikana and Limpopo Mineral Resource and
Reserve estimates in October 2006.
•
RSG Global completed an independent audit of the Mineral Resource estimate of the
Rietfontein area of the Loskop JV in September 2007.
•
Snowden Mining Industry Consultants completed an audit of the Akanani drill hole data
in November 2006, in order to confirm the robustness of the data informing the Mineral
Resource estimate.
Marikana Operations
Mineral Resources and Reserves
30 September 2007
The Marikana Operations (Western Platinum Limited and Eastern Platinum Limited) are located
in the Marikana district to the east of the town of Rustenburg in the North West Province of the
Republic of South Africa.
The Marikana mine leases are underlain by the Merensky Reef and the UG2 Chromitite Layer
over a strike length of approximately 27 km. Both the Merensky Reef and the UG2 Chromitite
Layer outcrop along the strike length of the lease area. The layers strike in an approximately
east-west direction and generally dip between 9° and 14° to the north. The UG2 Chromitite
Layer underlies the Merensky Reef by between 130 m and 210 m and the middling between the
two reefs increases in thickness across the lease area from west to east.
The continuity of both the Merensky and UG2 reefs has been established by extensive
underground and open pit mining, underground sampling, surface trenching, surface drilling,
magnetic surveys and seismic surveys. The drilling of multiple reef intersections in each drill
hole is standard practice and provides material for assay, geotechnical, mineralogical and
metallurgical testing. Logging and sampling of drill holes are conducted according to standard
procedures and drill hole data is electronically stored in a commercial database. The layered
nature of the Bushveld Complex makes it possible to identify different lithological units, which
facilitates the interpretation of geological disturbances like dykes, faults, potholes and Iron Rich
Ultramafic Pegmatite (IRUP).
A total of over 700 surface diamond drill holes have been completed and drilling is ongoing on a
continuous basis in order to improve the confidence in the Mineral Resource estimate and to
extend the Mineral Resource down dip. A high resolution 3D seismic survey, covering an area
of 16 km2, and a number of 2D seismic surveys were completed over the Lonmin property over
the last 8 years. Magnetic data has become an essential tool in identifying areas of potentially
good and poor mining conditions. Virtually the complete property has been covered by airborne
or ground magnetic surveys. The detailed data from these surveys have proved to be invaluable
in understanding the continuity of the reefs and for shaft planning and design purposes.
The Merensky Reef and the UG2 Reef are mined simultaneously in the lease area at an average
depth of approximately 400 m. Mining is by underground and open cast mining methods with
shallow incline, deep vertical shaft or open pit access to the orebodies.
Since September 2006, no major changes to the Mineral Resource estimates have been made
aside from depletion through mining. The Mineral Reserve estimates have been reviewed and
the accuracy increased through the introduction of more sophisticated Mine Planning systems.
Marikana Merensky Reef Resource and Reserve Plan
Marikana UG2 Reef Resource and Reserve Plan
Mineral Resources
30-Sep-2007
30-Sep-2006
3PGE+Au1
Ore source
Merensky
UG2
Total
Category
Mt
g/t
Moz
Moz
UG2
Total
g/t
Moz
Moz
3.9
4.03
0.5
0.3
3.6
4.28
0.5
0.3
Indicated
163.4
4.82
25.3
15.5
165.4
4.83
25.7
15.7
Inferred
110.5
4.93
17.5
10.8
110.5
4.87
17.3
10.6
Total
277.7
4.85
43.3
26.5
279.5
4.84
43.5
26.7
Measured
10.9
4.93
1.7
1.0
10.1
4.99
1.6
1.0
Indicated
249.7
5.00
40.2
23.5
254.6
5.02
41.1
23.8
Inferred
106.2
5.01
17.1
10.1
106.2
5.01
17.1
10.0
Total
366.7
5.00
59.0
34.7
370.9
5.02
59.8
34.8
Measured
14.7
4.69
2.2
1.3
13.7
4.82
2.1
1.3
Indicated
413.0
4.93
65.5
39.0
420.0
4.95
66.8
39.6
Inferred
216.7
4.97
34.6
20.9
216.7
4.94
34.4
20.7
Total
644.4
4.94
102.3
61.2
650.4
4.94
103.3
61.5
30-Sep-2007
30-Sep-2006
3PGE+Au1
Merensky
Pt
Mt
Measured
Mineral Reserves
Ore source
3PGE+Au1
Pt
Category
3PGE+Au1
Pt
Mt
Pt
Mt
g/t
Moz
Moz
g/t
Moz
Moz
Proved
3.1
3.37
0.3
0.2
3.4
3.27
0.4
0.2
Probable
97.7
4.12
12.9
8.1
97.6
4.26
13.4
8.3
Total
100.8
4.09
13.3
8.3
100.9
4.22
13.7
8.6
Proved
9.1
4.48
1.3
0.8
9.2
4.24
1.3
0.7
Probable
221.4
4.20
29.9
17.6
224.8
4.10
29.7
17.3
Total
230.5
4.21
31.2
18.3
234.0
4.11
30.9
18.0
Proved
12.2
4.20
1.6
1.0
12.5
3.99
1.6
1.0
Probable
319.1
4.18
42.9
25.6
322.4
4.15
43.0
25.6
Total
331.4
4.18
44.5
26.6
334.9
4.14
44.6
26.6
Notes on the Marikana Mineral Resources and Reserves
The Marikana Mineral Resources and Reserves information was prepared on the following basis:
a) The Marikana Mineral Resources and Reserves include only Lonmin's attributable
portion.
b) Merensky Reef widths used for Mineral Resource estimates are based on a practical
mining cut of not less than 90 cm and therefore may include some diluting material.
c) Measured Resources and Proved Reserves are declared in areas where reef has been
exposed in underground development. Underground sampled reef intersections are
averaged to estimate each resource block. Channel samples are taken from underground
reef intersections using a diamond saw and are assayed at Lonmin Platinum’s laboratory.
d) Indicated and Inferred Resources are estimated from the results of surface diamond bore
hole reef intersections. At least four reef intersections are drilled from each drillhole and
three of these intersections are sampled and assayed at a commercial laboratory. The
samples of each deflection are composited into individual reef intersections, which are
used to evaluate resource blocks by applying an Ordinary Kriging estimation method.
e) Confidence in the geological model, reef continuity, drilling density and geostatistical
analysis is used to define resource classes. Indicated Resources at Lonmin Marikana are
typically declared in areas where drill spacing is less than 800 metres. Inferred Mineral
Resources are declared in areas where reef intersections are spaced between 800 and
2,000 metres, depending on knowledge of the reef continuity in individual areas. The
Inferred Resources at Marikana are generally constrained by the sparse drilling grid.
f) The Mineral Resources at Marikana occur from surface to 2,000 m below surface. The
average width of the UG2 is 1.16 m and the average width of the Merensky Reef is
1.08m.
g) An average of 20% geological loss has been removed from the Merensky Reef and 21%
from the UG2 Reef. Geological losses include those from dykes, fault loss, potholes and
Iron Rich Ultramafic Pegmatoid.
h) Modifying factors applied to convert Mineral Resources to Mineral Reserves are derived
from the Mineral Reserve Management system on Lonmin Platinum’s current operations.
All survey, sampling, stope-width control and geological data are stored in electronic
databases and mine plans are captured electronically in a 3 dimensional geographical
information system.
i) Proved Reserves are converted from fully developed Measured Resources using
estimated dilution and extraction factors for the individual mining block.
j) Probable Reserves are converted from Indicated Resources using estimated dilution and
extraction factors for the individual area taking cognisance of the reef type and mining
method for the individual area.
k) Average dilution applied to the Merensky Reef is approximately 39% and the average
dilution applied to the UG2 is approximately 21%. Average losses as a result of mining
losses and pillar design are approximately 17% for the Merensky Reef and approximately
19% for the UG2.
l) All Mineral Reserves are shallower than 1,400 metres below surface.
The following Competent Persons assisted in the preparation of the Marikana Mineral Resources
and Mineral Reserves
Dennis Hoffmann – Mineral Resources
Nico Denner (GEMECS Pty Ltd) – Mineral Resources
Jacobus Conradie (GEMECS Pty Ltd) – Mineral Resources
Mike Freer – Mineral Reserves
Mineral Rights
Subsequent to Lonmin having received notification from the Director General of the Department
of Minerals and Energy (“DME”) of the successful granting of new order mining rights in
respect of the Group’s Marikana operations, these rights have been executed and will be
registered with the Mining Titles Registration Office in early 2008. These rights entitle Western
Platinum and Eastern Platinum to the exclusive right to mine for Platinum Group Metals and
associated metals within the designated Marikana property boundaries for the next 30 years with
a right to apply for renewal thereafter for up to a further 30 years. One of the seven Marikana
mining licences is yet to be executed but has been granted.
Separate Applications for Mining Rights in respect of certain areas excluded from the Marikana
mining licence area have been granted and executed and are in the process of being registered.
A converted prospecting right in respect of the farms Schaapkraal and Zwartkoppies (which fall
within the Marikana mining licence area) has been granted, executed and registered.
Limpopo Operations
Mineral Reserves and Resources
30 September 2007
The Lonmin Limpopo Mine is a PGE project situated on the northern portion of the Eastern
Limb of the Bushveld Complex, Limpopo Province, South Africa. The project is dislocated by
several faults, which form the lateral boundaries of the four delineated resource blocks; namely
Baobab (formerly Voorspoed), Baobab East (formerly Voorspoed East), Dwaalkop, Doornvlei
and Zebediela. The Dwaalkop resource block is a Joint Venture in which both Western Platinum
and Mvelephanda Resources have a 50% interest. The Dwaalkop JV area includes portions of
the farms Dwaalkop, Rooibokbult and Turfpan.
The continuity of both the Merensky and UG2 reefs has been established by extensive
underground mining, underground sampling, surface trenching, surface drilling and magnetic
surveys. The drilling of multiple reef intersections in each drill hole is standard practice and
provides material for assay, geotechnical, mineralogical and metallurgical testing. Logging and
sampling of drill holes are conducted according to standard procedures and drill hole data is
electronically stored in a commercial database. The layered nature of the Bushveld Complex
makes it possible to identify different lithological units, which facilitates the interpretation of
geological disturbances such as dykes, faults, potholes and Iron Rich Ultramafic Pegmatite
(IRUP).
Between the 1960’s and 2007 numerous phases of drilling were conducted by various mining
companies (Anglo American Corporation, Messina Limited, Impala Platinum Limited, Southern
Platinum Corporation and Lonmin Platinum). Drilling is ongoing on a continual basis and more
than 650 surface drill holes were drilled on the Lonmin Limpopo and adjacent joint venture
properties since the 1960’s. The depths of the drill holes vary from 5 m to 1,550 m below
surface. Magnetic data has become an essential tool in identifying areas of potentially good and
poor mining conditions. Virtually the complete property has been covered by airborne or ground
magnetic surveys. The detailed data from these surveys have proved to be invaluable in
establishing the continuity of the reefs and for shaft planning and design purposes.
The current mining block (Baobab Mine) is underlain by the Merensky Reef and UG2 Reef over
a strike length of approximately 3.5 km. The reef strike is close to east-west and the reef dips at
an average of approximately 58° to the south. Mining is by underground mining methods and
the reef is accessed by a vertical shaft and ramp decline. Approximately an additional 9 km of
reef strike exists to the east of Baobab; 5.5 km on Dwaalkop and 3.5 km Doornvlei. These areas
of Mineral Resource form part of the Phase 2 expansion plan. Zebediela, which lies to the West
of Baobab, forms approximately 7.7 km of reef strike and constitutes the Phase 3 area of Lonmin
Limpopo.
A number of changes have been made to the Mineral Resource and Reserve estimates since
September 2006, over and above depletion due to mining. These are as follows:
•
Following the results of a Pre-Feasibility Study by AMC Consultants, Probable Mineral
Reserves have been declared for portions of Doornvlei and the Dwaalkop JV area. This
has resulted in a significant increase to Limpopo’s Mineral Reserves. Where considered
appropriate, the Merensky and UG2 Reef Mineral Resources have been re-stated to
include mineralisation occurring above and/or below the main mineralised units in order
to align these estimates with the mechanised mining methods envisaged for these
properties.
•
A decrease in the Measured Mineral Resources has occurred, due to changes in
classification guidelines for Measured Resources that are aligned with the Lonmin
guideline. Some of these resources have now been re-classified as Indicated Resources.
Combined with challenging geological conditions in the Eastern and Western areas of
Baobab Mine, this has resulted in a significant reduction in the Proved Mineral Reserves
for Limpopo Operations.
• The inclusion of lesser mineralised units in the immediate hanging wall to the UG2 (the
UG2 Leader, hartzburgite and middling pyroxenite) has resulted in a decreased UG2
Measured Mineral Resource 3PGE+Au grade and Proved Reserve 3PGE+Au grade
estimate for Baobab Mine. A similar approach was used for the Doornvlei UG2 Mineral
Resource, which resulted in a larger but lower grade Mineral Resource in that area.
• Following an internal review of the Open Pit mining potential at Dwaalkop, these
Mineral Reserves have been removed from the Reserve statement. The Mineral
Resources for this area have been incorporated into the total Dwaalkop Mineral Resource
statement and reported accordingly.
Limpopo Merensky Reef Resource Plan
Limpopo UG2 Reef Resource Plan
Mineral Resources
Ore
source
30-Sep-07
Pt
Moz
0.05
Mt
3PGE+Au1
Moz
g/t
0.7
3PGE+Au
g/t
Moz
3.83
0.08
3.1
3.52
0.35
Pt
Moz
0.21
0.7
3.83
0.08
0.05
3.1
3.52
0.35
0.21
Baobab Shaft
9.5
3.63
1.10
0.65
6.2
3.56
0.71
0.40
Dwaalkop JV
17.9
2.89
1.67
0.94
5.5
3.63
0.64
0.36
Doornvlei
6.6
3.74
0.79
0.44
6.6
3.75
0.79
0.44
Total
34.0
3.26
3.56
2.03
18.3
3.64
2.14
1.21
Baobab Shaft
2.6
3.79
0.32
0.19
2.4
3.61
0.28
0.16
Baobab East
4.6
5.86
0.86
0.48
4.6
5.84
0.86
0.48
Zebedelia
6.5
4.18
0.88
0.49
6.5
4.19
0.88
0.49
Dwaalkop JV
13.3
3.10
1.33
0.74
4.6
3.71
0.55
0.30
Doornvlei
9.3
3.94
1.18
0.67
9.3
3.94
1.17
0.66
36.3
3.91
4.56
2.57
27.4
4.24
3.74
2.11
70.9
3.60
8.21
4.65
48.8
3.97
6.23
3.52
Baobab Shaft
2.0
4.10
0.27
0.13
5.5
4.78
0.84
0.40
Total
2.0
4.10
0.27
0.13
5.5
4.78
0.84
0.40
Baobab Shaft
13.4
4.19
1.81
0.85
8.0
4.53
1.17
0.55
Dwaalkop JV
17.1
4.35
2.40
1.13
8.5
4.35
1.18
0.56
Doornvlei
24.8
4.60
3.67
1.73
17.8
5.73
3.27
1.54
Total
55.4
4.42
7.88
3.71
34.3
5.11
5.63
2.65
Baobab Shaft
3.9
4.06
0.51
0.24
1.5
5.26
0.26
0.12
Baobab East
3.9
4.20
0.53
0.25
3.9
4.19
0.53
0.25
Zebedelia
9.5
5.61
1.72
0.81
9.5
5.62
1.72
0.81
Dwaalkop JV
13.7
4.35
1.92
0.90
6.9
4.35
0.96
0.45
Doornvlei
19.4
4.89
3.05
1.44
14.2
6.02
2.74
1.30
Total
50.5
4.76
7.73
3.65
36.1
5.36
6.22
2.94
Total UG2
107.9
4.57
15.87
7.48
75.8
5.20
12.69
5.99
Measured
2.7
4.03
0.35
0.17
8.6
4.31
1.20
0.61
Indicated
89.3
3.98
11.44
5.74
52.6
4.60
7.77
3.85
Inferred
86.8
4.40
12.29
6.22
63.4
4.88
9.95
5.04
Total Resource
178.8
4.19
24.08
12.13
124.6
4.72
18.92
9.50
Category Area/Farm
Measured
Baobab Shaft
Total
Indicated
Merensky
Inferred
Total
Total Merensky
Measured
Indicated
UG2
Inferred
Total
30-Sep-06
1
Mt
Mineral Reserves
Ore
source
Category
Probable
Proved
Probable
Mt
3PGE+Au1
Moz
g/t
2.9
2.90
0.27
Pt
Moz
0.16
Area/Farm
Mt
Baobab Shaft
0.1
Total Proved
0.1
3.30
0.02
0.01
2.9
2.90
0.27
0.16
Baobab Shaft
9.4
3.07
0.92
0.54
5.7
2.88
0.52
0.30
Dwaalkop JV
11.2
2.61
0.94
0.53
0.1
3.11
0.01
0.01
Doornvlei
2.3
2.71
0.20
0.11
-
-
-
-
22.8
2.81
2.06
1.19
5.8
2.89
0.54
0.30
23.0
2.81
2.08
1.20
8.7
2.90
0.81
0.46
Baobab Shaft
0.2
3.70
0.03
0.01
4.7
4.28
0.64
0.30
Total Proved
0.2
3.70
0.03
0.01
4.7
4.28
0.64
0.30
Baobab Shaft
14.5
3.47
1.61
0.76
6.7
4.01
0.87
0.41
Dwaalkop JV
13.2
3.30
1.40
0.66
0.2
2.83
0.02
0.01
Doornvlei
13.4
3.77
1.63
0.77
-
-
-
-
Total Probable
41.1
3.51
4.64
2.19
7.0
3.97
0.89
0.42
41.3
3.52
4.67
2.20
11.6
4.09
1.53
0.72
Total UG2
Total
Pt
Moz
0.01
3PGE+Au
g/t
Moz
3.30
0.02
Total Probable
Total Merensky
UG2
30-Sep-06
1
Proved
Merensky
30-Sep-07
Proved
Baobab Shaft
0.4
3.55
0.04
0.02
7.6
3.74
0.91
0.46
Probable
Baobab Shaft
23.8
3.31
2.54
1.30
12.4
3.50
1.39
0.71
Probable
Dwaalkop JV
24.3
2.98
2.33
1.19
0.3
2.93
0.03
0.02
15.8
3.62
1.83
0.89
-
-
-
-
64.3
3.26
6.75
3.40
20.3
3.58
2.34
1.18
Probable
Doornvlei
Total Reserve
Notes on the Limpopo Mineral Resources and Reserves
The Limpopo Mineral Resources and Reserves information was prepared on the following basis:
a) Western Platinum Limited (82% owned by Lonmin) has an interest of 50% in the
Dwaalkop JV and 100% of the remainder. The Mineral Resources and Reserves quoted
for Limpopo include only Lonmin’s attributable portion.
b) The Dwaalkop JV area includes portions of the farms Dwaalkop, Rooibokbult and
Turfpan.
c) Mineral Resources are estimated from the results of surface diamond drilling and from
the underground channel samples. Channel samples are taken from underground reef
intersections using a diamond saw and are assayed at Lonmin Platinum’s laboratory. For
the surface drill holes, at least four reef intersections are drilled from each drill hole and
three of these intersections are sampled and assayed at a commercial laboratory.
d) The grades and thicknesses of the individual reef layers are estimated into block models
using Ordinary Kriging. The Mineral Resource cut is then selected from the individual
reef layers, depending on mining constraints, and therefore may include some diluting
material.
e) Mineral Resource estimates are based on a practical mining cut of not less than 90 cm.
f) Confidence in the geological model, reef continuity, drilling density and geostatistical
analysis is used to define resource classes. Typically, the Measured Resource estimates
are declared in, and immediately adjacent to, areas where the reef has been exposed by
underground development and has been sampled. Indicated and Inferred Resource
estimates are predominantly informed by surface diamond drillholes. Indicated
Resources at Limpopo are typically declared in areas where drill spacing is less than 600
metres. Inferred Mineral Resources are declared in areas where drilling is sparser than
600 metres and generally extrapolated less than approximately 1,000 metres from the
closest drillhole to a maximum depth of 2,000 metres, depending on knowledge of the
reef continuity in individual areas. Most of the Inferred Mineral Resources at Limpopo
have been extrapolated beyond the drilling grid.
g) The Mineral Resources at Limpopo occur from surface to a maximum depth of 2,000
metres. The widths of the individual layers that comprise the reef vary across the
property and the reef widths also vary according to the layers incorporated into the reef
cut. The average width of the UG2 for each property varies between approximately
1.95 m and 2.55 m and the average width of the Merensky Reef for each property varies
between approximately 0.90 m and 2.25 m.
h) An average of approximately 20% geological loss has been removed from the Merensky
and UG2 Reefs across the areas. Geological losses are applied to individual areas and
vary according to known geological conditions. Geological losses include those from
dykes, fault loss, potholes and Iron Rich Ultramafic Pegmatoid.
i) Appropriate assessments to a level of at least Pre-Feasibility or Life of Mine Plan have
been carried out in order to declare Mineral Reserves.
j) Proved Reserves are converted from fully developed Measured Resources and Probable
Reserves are converted from Indicated and undeveloped Measured Resources using
estimated dilution and extraction factors for the individual area taking cognisance of the
reef type and mining method for the individual area.
k) All Mineral Reserves below 430 m level at Baobab Mine and contained within the
Phase 2 area, are fully diluted for mechanised mining methods. Individual lesser
mineralised layers have been incorporated into the Resource estimate in expectation of
their inclusion in the mining cut. Additional dilution expected for the Merensky Reef is
estimated at approximately 14% and approximately 10% for the UG2.
l) Average losses as a result of mining losses and pillar design at Baobab are approximately
17%.
m) All Mineral Reserves are shallower than 1,000 m below surface.
The following Competent Persons assisted in the preparation of the Limpopo Mineral Resources
and Mineral Reserves:
Kabelo Tlhapi – Mineral Resources, Baobab Shaft
David Gray (Snowden Mining Industry Consultants) - Mineral Resources, Dwaalkop and
Doornvlei
Hennie Boshoff – Mineral Reserves, Baobab
Frank Greblo (AMC Consultants Pty Ltd) – Mineral Reserves, Dwaalkop and Doornvlei
Mineral Rights
At Limpopo, a Lodgement for Conversion of Mining Rights is still required to be finalised and
submitted to the DME (Doornvlei), whilst an Application for Mining Right is required to be
submitted in respect of Dwaalkop (currently Dwaalkop has a converted prospecting right which
is subject to a renewal application). A Lodgement for Conversion of Mining Right was
submitted to the DME in respect of Voorspoed (the only currently producing shaft - Baobab) in
March 2007, with the DME currently assessing the merits of the Application. As regards that
area previously subject to an old order prospecting right (i.e. primarily Zebedielas Location), a
new order prospecting right has been granted, executed and registered.
The Akanani Project
Mineral Resources and Reserves and Exploration Results
30 September 2007
The acquisition of the Akanani Project was completed at the beginning of February 2007. This
exciting Mineral Resource is contained within a unique deposit in the Bushveld and is of a width
which will allow the project to be developed as a low cost fully mechanised mine.
The Akanani mineralisation is hosted within the Platreef pyroxenites of the Northern Limb of the
Bushveld Complex. At Akanani, the lithological layering in the Platreef appears to be less
continuous than that of the Critical Zone in the Eastern and Western Limbs. The results of more
than 50 diamond drill holes drilled since 2005 have established that mineralisation is generally
well constrained within a geological unit of the Platreef known by Lonmin as the P2 Unit.
Mineralisation in the immediately underlying P1 Unit appears to be less continuous than that of
the P2 Unit and exploration is ongoing to verify mineralisation continuity within this unit. The
locations of major discontinuities, such as faults and dykes, have been established by magnetic
surveys.
Akanani Drill Hole Intersection and Resource Plan
Summary of Akanani P2 Unit Mineral Resource.
Category
Tonnes
(millions)
3PGE+Au
(g/t)
Pt
(g/t)
Pd
(g/t)
Rh
(g/t)
Au
(g/t)
Cu
(%)
Ni
(%)
3PGE+Au
(Moz)
Pt
(Moz)
Indicated
13.4
4.88
2.04
2.36
0.17
0.30
0.18
0.30
2.1
0.9
Inferred
175.0
3.80
1.60
1.83
0.14
0.23
0.13
0.23
21.4
9.0
Total
188.4
3.88
1.64
1.87
0.14
0.23
0.13
0.23
23.5
9.9
Summary of Akanani P1 Unit Mineral Resource.
Category
Tonnes
(millions)
3PGE+Au
(g/t)
Pt
(g/t)
Pd
(g/t)
Rh
(g/t)
Au
(g/t)
Cu
(%)
Ni
(%)
3PGE+Au
(Moz)
Pt
(Moz)
Inferred
81.2
2.51
0.98
1.34
0.06
0.13
0.08
0.15
6.6
2.6
Summary of Total Akanani Mineral Resource.
Category
Tonnes
(millions)
3PGE+Au
(g/t)
Pt
(g/t)
Pd
(g/t)
Rh
(g/t)
Au
(g/t)
Cu
(%)
Ni
(%)
3PGE+Au
(Moz)
Pt
(Moz)
Indicated
13.4
4.88
2.04
2.36
0.17
0.30
0.18
0.30
2.1
0.9
Inferred
256.3
3.39
1.41
1.67
0.11
0.20
0.11
0.20
27.9
11.6
Total
269.7
3.46
1.44
1.71
0.12
0.20
0.12
0.21
30.0
12.5
Notes on the Akanani Project Mineral Resources and Reserves
The Akanani Mineral Resources information was prepared on the following basis:
a) Lonmin has an interest of 74% in the Akanani Project. The Mineral Resources quoted for
Akanani include only Lonmin’s attributable portion.
b) Thirty seven diamond drill holes were drilled in the Southern Priority Area (SPA), which
contains the Mineral Resource.
c) PGE and base metal assays were completed by Set Point Technologies Limited and were
confirmed by SGS Lakefield Research Africa.
d) Snowden Mining Industry Consultants completed Mineral Resource estimates for both
the P2 and P1 Units at Akanani using 3D modelling techniques and Ordinary Kriging in
an unfolded coordinate system.
e) Snowden Mining Industry Consultants completed an audit of the drillhole database in
November 2006 in order to confirm the robustness of the data informing the Mineral
Resource estimate.
f) Interpreted geological losses have been removed. Geological losses include those from
dykes and veins, fault loss and minor alteration. 10% geological losses were removed
from the P2 model and 15% geological losses were removed from the P1 model.
g) Inferred Mineral Resources are extrapolated a maximum of 500 metres from the closest
drillhole to a maximum depth of 2,000 metres, depending on knowledge of the reef
continuity in individual areas.
h) The Mineral Resources in the project occur from approximately 800 m below surface and
are shallower than 2,000 m below surface. The average thickness of the P2 Unit Mineral
Resource is approximately 19 m and the average thickness of the P1 Unit Mineral
Resource is approximately 150 m.
i)
There are currently no Mineral Reserves estimated for the Akanani Project.
The following Competent Persons assisted in the preparation of the Akanani Project Mineral
Resources:
Jeremy Witley (Snowden Mining Industry Consultants)
Mineral Rights
A converted prospecting right has been granted in respect of Akanani until 2012.
Progress of Exploration at Akanani
Exploration of the Akanani mineralisation is continuing in order to both increase our confidence
in the Mineral Resources in the southern section of the property and to extend the Resources
along strike in the northern section. The drilling in the Southern area has continued to confirm
the continuity of mineralisation in this area and the results are consistent with grades and
thicknesses within the Mineral Resource estimated in March 2007. The Mineral Resource
estimate for the southern section will be updated once the current infill drilling programme is
complete. This is expected to enable Mineral Reserves to be declared, once the Pre-Feasibilty
Study is completed in 2008. The results of the P2 Unit infill drill holes completed since the
March 2007 Mineral Resource estimate are as follows:
Drilled width
(m)
Southern Section - P2 Unit
ZF015
13.27
ZF043*
25.60
ZF044*
35.98
ZF045
28.00
ZF046
11.74
ZF047
0.97
Drill hole
3PGE+Au
(g/t)
Cu
(%)
Ni
(%)
2.62
5.51
9.64
2.51
8.31
4.08
0.16
0.17
0.17
0.14
0.21
0.03
0.25
0.36
0.34
0.22
0.40
0.26
ZF049
30.64
6.25
0.12
0.24
Weighted Mean
20.88
6.06
0.15
0.30
*Average of two intersections
Lonmin continues to view the P1 Unit mineralisation as having significant selective mining
potential. Drilling in the P1 Unit, since Lonmin’s acquisition of the project, confirms this
potential. Well mineralised intersections drilled in the P1 Inferred Mineral Resource area, since
the March 2007 estimate, include the following:
From
(m)
Southern Section - P1 Unit
ZF044
1226.87
ZF044
1282.52
ZF044_ED1
1317.13
ZF045
976.14
ZF046
1018.46
Drill hole
To
(m)
Drilled
width (m)
3PGE+Au
(g/t)
Cu
(%)
Ni
(%)
1264.56
1301.91
1333.59
1014.51
1041.52
37.69
19.39
16.46
38.37
23.06
3.16
5.09
4.41
5.11
4.17
0.09
0.11
0.18
0.20
0.13
0.14
0.20
0.27
0.31
0.23
Drilling of the Platreef mineralisation along approximately six kilometres of strike in the
northern portion of the Akanani Project is ongoing. Promising mineralisation continues to be
intersected and newly reported results of this drilling are as follows:
Drilled width
(m)
3PGE+Au
(g/t)
Cu
(%)
Ni
(%)
7.56
5.78
0.07
0.18
MO013
1.92
3.08
0.18
0.31
MO014
MO016
MO019
26.27
0.86
3.45
1.99
4.62
2.66
0.10
0.05
0.04
0.17
0.08
0.06
MO020
24.34
3.07
0.09
0.16
Drill hole
Northern Section
MO009
Pandora Joint Venture
Mineral Resources and Reserves
30 September 2007
The Pandora Joint Venture is located in the Brits District immediately east and down dip (north)
of the eastern area of Lonmin’s Marikana Operations. Eastern Platinum has an attributable
interest of 42.5% in the Pandora JV together with Anglo Platinum, Mvelaphanda Resources and
the Bapo Ba Mogale Mining Company.
The area is underlain by the Merensky Pyroxenite and the UG2 Chromitite Layer over a strike
length of approximately 12 km. Both the Merensky Pyroxenite and the UG2 Chromitite Layer
outcrop along 5 km of the strike length of the lease area that is contiguous to the Marikana
Operations. The layers strike in an approximately east-west direction and generally dip
approximately 13° to the north.
The continuity of the UG2 Reef has been established by extensive underground and open pit
mining, underground sampling, surface trenching, surface drilling and magnetic surveys. The
drilling of multiple reef intersections in each drill hole is standard practice and provides material
for assay, geotechnical, mineralogical and metallurgical testing. Logging and sampling of drill
holes are conducted according to standard procedures and drill hole data is electronically stored
in a commercial database. The layered nature of the Bushveld Complex makes it possible to
identify different lithological units, which facilitates the interpretation of geological disturbances
like dykes, faults, potholes and Iron Rich Ultramafic Pegmatite (IRUP).
A total of over 150 surface diamond drill bore holes have been completed and drilling is ongoing
on a continuous basis in order to improve the confidence in the Mineral Resource estimate. An
infill drilling programme is in progress, which is expected to increase our confidence in this
Mineral Resource. The complete property has been covered by airborne or ground magnetic
surveys.
The UG2 Reef is mined from underground in the JV area via the Marikana Operations E3 Incline
shaft access and from open pits from surface.
The resources stated for the Pandora JV consist of UG2 reef only. The Merensky Pyroxenite that
occurs in this area comprises thick reef facies and continuity of potentially payable
mineralisation has not been established. Work is ongoing in order to evaluate the potential of
this mineralisation.
A re-estimate of the Pandora Mineral Resource was conducted during the year, which resulted in
a slightly increased grade and tonnage for this area. Together with Anglo Platinum, a review of
the classification of the Mineral Resources was completed, which resulted in some changes to
the quantity of Measured Mineral Resources in particular. Some of these resources have now
been classified as Indicated Resources.
Pandora Resource and Reserve Plan
Mineral Resources
30-Sep-2007
30-Sep-2006
3PGE+Au1
Ore source
Category
3PGE+Au1
Pt
Mt
Pt
Mt
g/t
Moz Moz
g/t
Moz
Moz
Measured
4.9
4.78
0.8
0.5
9.8
4.60
1.5
0.9
Indicated
16.8
4.43
2.4
1.5
19.2
4.01
2.5
1.6
Inferred
34.9
4.22
4.7
3.0
26.4
3.98
3.4
2.1
Total
56.7
4.33
7.9
4.9
55.4
4.09
7.3
4.6
UG2
Mineral Reserves
30-Sep-2007
30-Sep-2006
3PGE+Au1
Ore source
Category
Mt
UG2
Probable
Total
3PGE+Au1
Pt
g/t
Moz
Mt
g/t
Proved
Pt
Moz
Moz
Moz
0.30
4.55
0.04
0.03
-
-
-
-
-
-
-
-
-
-
-
-
0.30
4.55
0.04
0.03
-
-
-
-
Notes on the Pandora JV Project Mineral Resources and Reserves
The Pandora JV Mineral Resources information was prepared on the following basis:
a) Eastern Platinum Limited (82% owned by Lonmin) has an interest of 42.5% in the
Pandora JV. The Mineral Resources and Reserves quoted for Pandora include only
Lonmin’s attributable portion.
b) The Mineral Resources and Reserves quoted for Pandora include only Lonmin’s 42.5%
attributable portion.
c) Measured Resources are declared in, and immediately adjacent to, areas where reef has
been exposed in underground development or open pits, or where close spaced near
surface diamond drilling has been conducted. Channel samples are taken from
underground reef intersections using a diamond saw and are assayed at Lonmin
Platinum’s laboratory. The results of this sampling are combined with the results of the
surface drilling and interpolated using Ordinary Kriging into Measured Resource blocks
immediately adjacent to the underground exposures.
d) Indicated and Inferred Resources are estimated from the results of surface diamond
drilling. Currently, at least four reef intersections are drilled from each drillhole and
three of these intersections are sampled and assayed at a commercial laboratory. The
individual reef composites are estimated into block models using Ordinary Kriging.
e) Confidence in the geological model, reef continuity, drilling density and geostatistical
analysis is used to define resource classes. Indicated Resources at Pandora are typically
declared in areas where drill spacing is less than 800 metres. Inferred Mineral Resources
are declared in areas where drilling is sparser than 800 metres and are extrapolated less
than 2,000 metres from the closest drill hole.
f) The Mineral Resources at Pandora occur from surface to approximately 1,200 m below
surface. The average width of the UG2 is approximately 1.20 m.
g) An average of 23% geological losses has been removed. Geological losses include those
from dykes, fault loss, potholes and Iron Rich Ultramafic Pegmatoid.
h) Proved Reserves are converted from fully developed Measured Resources. Modifying
factors applied to convert Mineral Resources to Mineral Reserves are derived from the
Mineral Reserve Management system on Lonmin Platinum’s current operations. All
survey, sampling, stope-width control and geological data are stored in electronic
databases and mine plans are captured electronically in a 3 dimensional geographical
information system.
i) The Pandora Mineral Resources have been diluted by an average of approximately 10%.
Average losses as a result of mining losses and pillar design are approximately 14%.
The following Competent Persons assisted in the preparation of the Pandora JV Mineral
Resources and Mineral Reserves:
Jeremy Witley – Mineral Resources
Dennis Hoffmann – Mineral Resources
Paul Stevenson (Anglo Platinum) – Mineral Resources
Mike Freer – Mineral Reserves
Mineral Rights
A Lodgement for Conversion of Mining Right was submitted in respect of Pandora in mid-2006.
Arising from an amendment to the mining plan to be implemented at Pandora, the Mine Work
Program and consequently the Social and Labour Plan were significantly amended. These
amended documents were then lodged with the DME in mid-2007 as replacements for the
original Mine Work Programme and Social and Labour Plan submitted. The DME is currently
assessing the Application. A separate Application for Mining Right is still to be compiled and
submitted in respect of certain areas excluded from the Pandora mining licence area.
Loskop Joint Venture
Mineral Resources and Reserves
30 September 2007
Western Platinum has an attributable interest of 50% in the Loskop Joint Venture with Boynton
Investments. The Mineral Resources are contained within a mineralised zone, the “Upper
Mineralised Pyroxenite” that is contained within a sequence that is considered to be
stratigraphically equivalent to the Upper Critical Zone of the Eastern and Western Limbs of the
Bushveld Complex. The results of a high resolution, low level aeromagnetic survey covering
210 km2 were used to assist in the structural interpretation of the area. Diamond drill holes are
used in order to assist in the evaluation of this property and the results of this drilling are
continually being reviewed by Lonmin together with our JV partner.
During the financial year the area of Rietfontein Mineral Resource was extended to the south of
the previous reported area, resulting in a larger quantity of Mineral Resources at slightly reduced,
but comparable grades. An area of Mineral Resources on the farm De Wagendrift, to the east of
Rietfontein, was added during the year.
Loskop JV Drill Hole Intersection and Resource Plan
Mineral Resources
30-Sep-2007
Ore
Source
Category
UMP
UMP
UMP
Inferred
Rietfontein
Inferred
De Wagendrift
Total Resource
Area/Farm
Mt
6.5
3.6
10.1
2PGE+Au5
g/t
Moz
3.91
0.8
4.28
0.5
4.04
1.32
30-Sep-2006
Pt
Moz
0.5
0.3
0.83
Mt
5.2
5.2
2PGE+Au5
g/t
Moz
4.35
0.7
4.35
0.7
Notes on the Loskop Mineral Resources and Reserves
a)
5
The Loksop Mineral Resources information was prepared on the basis of: 2PGE+Au =
Pt+Pd+Au.
b) The Mineral Resources quoted for Loskop includes only Lonmin’s 41% attributable
portion.
c) Half core samples were taken from diamond drillholes and assayed at commercial
laboratories for 2PGE+Au using lead fire assay techniques.
d) An optimum cut at a minimum true width of 100 cm was calculated for each drillhole and
the resulting composites were averaged to estimate the grade and width of the Mineral
Resource.
e) A cut off grade of 2 g/t 2PGE+Au was used to define optimum cuts of greater than
100 cm.
f) The Inferred Mineral Resource was informed by the results of 61 drill holes that
intersected the UMP.
g) The Mineral Resources at Loskop occur from surface to approximately 865 m below
surface. The average width of the selected reef cut is approximately 1.35 m.
h) An average of 25% geological losses has been removed. Geological losses include those
from dykes, fault loss and potholes.
i) Inferred Mineral Resources are constrained by the current drill coverage and the deposit
is open down dip and to the west.
j) There are currently no Mineral Reserves estimated for the Loskop Project.
The following Competent Persons prepared the Loskop JV Mineral Resources:
J.J van der Merwe – Mineral Resources
Mineral Rights
At Loskop, new order converted prospecting rights have been granted, executed and registered
and prospecting activities are required to be carried out in accordance with the Prospecting Work
Programs attaching to the aforementioned rights.
Pt
Moz
0.5
0.5