RESERVES AND RESOURCES
FOR THE GROUP
The combined South African and Zimbabwean Ore Reserves decreased from 180.8 (4E) Moz to 177.2 (4E) Moz. This was the result primarily of the reallocation of previously reported Ore Reserves back to Mineral Resources owing to economic assumptions, mainly at the Tumela and Twickenham mines. On the positive side, additional Mineral Resources were converted to Ore Reserves at Mogalakwena North.
The Mineral Resource and Ore Reserve tables reflect estimates prior to the strategic announcement in January 2013. Changes associated with the strategic review will most probably result in a reallocation of the affected reported Ore Reserves to Mineral Resources in the Rustenburg and Union areas and will only be reflected in 2013.
ORE RESERVES (4E)
PLATREEF MINERAL RESOURCES INCLUSIVE OF ORE RESERVES (4E)
The PGM Mineral Resources of Amplats occur almost exclusively within southern Africa, and are hosted by two distinct but unique ultramafic layered intrusions: the Bushveld Complex in South Africa and the Great Dyke in Zimbabwe.
Total PGM Resources present within these two geological features account for approximately 85% of the world’s known platinum and 55% of the world’s known palladium.
THE BUSHVELD COMPLEX
The Bushveld Complex is geologically unique owing to its size, uniform layering and mineral content. Formed over two billion years ago from multiple injections of molten magma into the earth’s crust many kilometres below the earth’s surface, the resultant saucer-shaped intrusion is over 350 kilometres wide, 250 kilometres long and up to 12 kilometres thick. Over many millions of years the rim of the intrusion has been exposed by erosion, revealing three separate segments known as the Western, Eastern and Northern limbs respectively. The exposed segments exhibit layering of different rock types (such as pyroxenites, norites, gabbros and chromitites) and this layering occurs across the entire extent of the complex. Within the layers, mineralisation is found within specific horizons containing economic minerals that host chromite, titanium, vanadium, nickel, copper and, more importantly for Amplats, the platinum group metals or PGMs.
Economic concentrations of PGMs occur mainly within three distinct reefs within the Bushveld Complex: the Merensky Reef, the Upper Group 2 (UG2) Chromitite and the Platreef. The Merensky Reef and the UG2 Reef occur around the Eastern and Western limbs of the complex, while the Platreef is found only along the eastern edge of the Northern Limb.
The Merensky Reef and the UG2 Reef
The Merensky and UG2 reefs are narrow tabular orebodies that extend laterally over hundreds of square kilometres, resulting in extensive Mineral Resources. Their continuity, established over years of exploration and mining, allows for the long-range extrapolation of data. The Merensky Reef has been the principal source of PGMs since it was first mined in 1925. However, with the depletion of shallow Merensky Resources the UG2 Reef, which is found at a vertical distance of between 16 and 400 metres below the Merensky Reef depending on the location, has grown steadily in importance to the point where it now accounts for more than 50% of all the platinum-bearing ore processed in South Africa.
On the Northern Limb of the Bushveld, the Merensky and UG2 reefs are not developed on Amplats’ properties. However, the Platreef, which is substantially thicker than either the Merensky Reef or the UG2 Reef, is well developed. The Platreef was mined briefly in the 1920s, but has been exploited on a large scale only since 1993. It is gradually becoming a significant contributor of PGMs for Amplats.
The term ‘Platreef’ describes zones of mineralisation occurring in a variety of rocks that range from normal pyroxenites to calcsilicates that have arisen through the contamination of Bushveld magma by sediments from the underlying Transvaal Supergroup. In general, the economic thickness of the Platreef is such that it can support open-pit mining operations to depths far exceeding 400 metres at current prices and mining costs.
Base metal mineralisation
The Merensky Reef and the Platreef yield meaningful quantities of nickel and copper as by-products of PGMs, whereas the UG2 Reef is relatively devoid of these metals. Although chromitite contained in the UG2 has potential for economic gain and in some areas is being exploited as a by-product, Amplats has not considered this when measuring the reef’s contained monetary values for Ore Reserve purposes. However, nickel and copper have been considered, and their value has been accounted for in the relevant economic evaluations.
THE GREAT DYKE
The Great Dyke is located in Zimbabwe and occurs as a major intrusion, over 500 kilometres in length, that trends in a north-easterly direction. It comprises mafic and ultramafic rocks that cut across the dominantly Achaean rocks of the Zimbabwe Craton, consisting mostly of granite and greenstone belt rocks. PGM and associated base metal mineralisation is developed within a mafic/ultramafic horizon and covers over 720 square kilometres of the Great Dyke.
Amplats’ major interest lies in the Shurugwi Complex and, more specifically, the Unki Prospect, where the Main Sulphide Zone (MSZ) occurs. The total estimated PGM Resources of the Great Dyke are estimated at 249 (4E) Moz (Oliver Barker-Platinum map of southern Africa – 4th edition 2011). Although the mineralised zone is characterised by the absence of identifiable markers, this risk has been successfully negated through the application of hand-held XRF (X-ray fluorescence) technology.
Extensive drilling, airborne surveys and geological interpretation have enabled mineral deposits to be upgraded to Resources on the Paarl, Unki South and Helena prospects. These additional Resources were subjected to a detailed external audit in 2012. Because of its structure, shallow depth and disseminated grade contacts, the MSZ has the capacity to support narrow vein conventional and trackless mining and, possibly in some areas, opencast operations. Owing to the dependency on economic factors, Resources outside current mining and advanced project areas have been quantified over a conventional Mining Resource width of 120 cm. This will be reviewed when mining-optimisation studies have been completed.
EXPLORATION AND MINE GEOLOGY
Exploration activities continued on all Amplats properties, with the focus on supplying geological information and mitigating risk in support of the Company’s business plan and prospecting works-programme compliance. Excluding the joint ventures, 457 surface boreholes were drilled in 2012, equating to 172,242 metres of surface diamond drilling. In addition to this, underground exploration drilling of 38,350 metres was conducted.
Exploration activities in 2012 were conducted well within the safety targets (LTIFR 0.15) and no significant incidents were recorded. During the year, Amplats had 51 diamond drilling rigs operating on surface and 47 drill rigs engaged in underground exploration activities. Drilling remains one of the primary tools in determining and evaluating our Mineral Resources, and the extensive and structured drilling programmes reflect this systematic approach to generating value and sustainability for the organisation. Diamond drilling, using primarily BQ diameter coring, is used for most of the boreholes drilled. Reef intersections with 100% core recovery are sampled and in turn used in constructing Mineral Resource models.
A comprehensive set of quality-assurance and quality-control (QA/QC) processes are in place to validate exploration and analytical data. Additional deflections are also drilled on all reef intersections in order to increase confidence in the geostatistical parameters. A total number of 3,022 underground sample sections were collected during 2012 and were processed according to our Geology Department’s defined systems and QA/QC requirements.
Three-dimensional seismic surveys have been exploited fully by the exploration team over the past decade. The interpretation of the Union Deeps survey was concluded during 2012 and has provided exceptional definition of the structural deformation of the ore bodies in the Union Deeps area. The survey has clearly defined the extractable portion of the ore body, and also those geological structures that will need to be avoided during mine planning. Seismic surveys of this sort are especially helpful in ensuring the correct placement of high-cost shafts and other critical mining infrastructure, particularly where ore bodies are situated at depths of between 500 and 2,000 metres. Amplats plans systematically to reinterpret seismic surveys that were acquired over the past decade, in light of the latest geological data collected.
Where mine planning has reached an advanced stage, underground mapping, together with a variety of additional borehole and surface to near-surface imaging tools, is employed to determine the structure and competency of the ground targeted for development. The geophysical logging of surface and underground boreholes forms an integral part of the risk-mitigation process and over recent years has proved to be highly beneficial in terms of cost.
Exploration on prospecting permits is progressing in line with the work-programme schedules and the environmental management programmes submitted to the Government’s Department of Mineral Resources. Most of these programmes are now going into the first year of a three-year extension that was applied for during 2012.
Foreign exploration continued on a limited basis in 2012, with the objective of finding and defining projects of value to the Group. This included projects in Brazil and Zimbabwe, with watching briefs in a number of other promising geological provinces. Options to dispose of the Company’s interests in Russia are still under investigation. Greenfield exploration in Brazil is ongoing, and 2012 saw the commencement of an updated resource model and metallurgical test work intended to further improve our geological understanding of this ore body. Extensive exploration continues on the Great Dyke in Zimbabwe in order to obtain information on Mineral Resources, specifically in support of the mine extraction strategy for the Unki project.
The Mineral Resource models for all underground operations are updated annually. The basic principles relating to the determining of Mineral Resource estimates during 2012 have remained unchanged. The Mineral Resource evaluation and classification are reviewed and signed off by a team of competent persons. The minimum Mineral Resource widths were aligned with changes in stope-support methodology and mining equipment in 2012; as a result, minimum Resource widths increased from 90 cm to 110 cm, with associated minor increases in tonnage and declines in grade.
The Mineral Resource model used to report the 2012 Platreef Resources for northern Mogalakwena has remained unchanged from 2011. An updated model is in progress, which incorporates exploration drilling undertaken in 2012 in order to resolve the area of possible down-dip flattening that lies beyond the current pit shell. Indications are that steeply dipping strike faulting has resulted in the apparent flattening, but that the geological loss applied to the 2011 Resource model appears to cover adequately the expected fault loss in this Inferred Mineral Resource area.
A virgin rock temperature of 75 °C is currently considered to be the limit to mining (given anticipated technology, metal prices and energy costs), and continues to form the limit of declared Inferred Mineral Resources within the mining rights of the Tumela Mine, the Twickenham Platinum Mine and the Ga-Phasha project. Amplats will continue to review the deposits down-dip of this limit, based on changing geological information, mining technology and metal prices.
As part of its ongoing management process, the Mineral Resource Management (MRM) Department at Amplats has developed the Basic Resource Equation to establish a consistent and auditable process for tracking and reconciling movements in Mineral Resources and Mineral Inventories. This equation encompasses processes from all the MRM disciplines, in order to ensure that the publication of Mineral Resource and Ore Reserve data is aligned with the Company’s business plan, and with technical and economic considerations.
CONVERTING MINERAL RESOURCES TO ORE RESERVES
The process of defining the Ore Reserves from the Mineral Resource has undergone further refinement and has been reviewed and approved within the Group. It adheres to approved Amplats policy and procedures encompassing the following: Merensky and UG2 underground operations; Platreef (open-pit) operations; and rock dumps/slimes dams (surface sources).
Merensky and UG2 underground operations
Only current operations, approved projects in execution and projects in feasibility study featured in the business plan are included as Reserves. To derive a Mineable Resource, appropriate mine design and layouts are applied to the Resource areas as dictated by current mining methods. Note: the Mineable Resource excludes material contained in regional or bracket pillars that comprise part of the overall mine design. In developing a Scheduled Resource, the Mineable Resource is scheduled according to the relevant mine’s production requirements.
The application of modifying (technical; mining; geotechnical; processing and recovery; legal; market; and social/governmental) factors is implemented in three distinct phases:
- Mine design and scheduling. Applied to the criteria included in establishing the mine design and scheduling are modifying factors that have an impact on dilution of the Resource (i.e. stope width versus Resource width, tertiary development and other waste mining done on the reef horizon, etc) and modifying factors that define mining losses (i.e. non-mineable pillars and RIH/RIF mining inefficiencies, etc).
- Processing. Those modifying factors that influence the efficiency of processing and recovery are applied to the Scheduled Resource. The result is a Mineable Reserve.
- The economic phase. The subsequent application of modifying factors that influence the economic aspects of the mining operation results in a portion of the scheduled Resource not being converted into Reserve. This portion, known as the “uneconomic tail”, reverts to Mineral Resources, to be considered in subsequent planning processes. Its exclusion results in a Scheduled Reserve that is equivalent to the operation’s business plan (life-of-mine).
The Scheduled Reserves are peer-reviewed and signed off by the competent person(s).
Platreef (open-pit) operations
The geological model is converted to a mining model suitable for use in a pit optimiser (e.g. the NPV scheduler) by adding mining-cost adjustment factors to the model. Note that the model includes Measured, Indicated and Inferred Resource confidence levels. For the purposes of Reserve conversion, only Measured and Indicated Resource categories are used.
The mining model is then subject to economic, geotechnical and geographic modifying factors used to determine a mathematical representation of the optimal pit to extract from within the Resource, to the best economic and geotechnical advantage. At this stage, however, the pit still lacks ramps and a detailed design.
On completion of a practical pit design, the Mineable Reserve is determined. The Mineable Reserve comprises all the payable material that lies within the final pit shell.
Scheduling within the economic pit shell according to the relevant mines’ production requirements defines the Scheduled Reserves. The Scheduled Reserves are peer-reviewed and signed off by the competent person(s).
Rock dumps/slimes dams (surface sources)
The tailings dams at Amandelbult have been explored with a sonic drilling programme and the Mineral Resource evaluation results will be completed and declared in 2013.
Bulk samples taken on historical surface rock dumps have demonstrated the intermittent presence of low-grade reef material. This stems from historical haulage development on PGM-bearing markers such as the Pseudo Reef 1, and from suboptimal ore-handling processes used in the past.
Owing to the difficulty of effectively evaluating large-scale rock dumps, surface rock dumps across operations are not reported under the Ore Reserve and Mineral Resource estimates. Instead, they are considered to be Mineral Deposits.
However, where concentrator capacity is available, rock dumps that have indicated potential are further sampled and evaluated on a localised basis for processing as a part of surface sources material.
COMPETENCE AND RESPONSIBILITY
In accordance with the Listings Requirements of the JSE, Amplats prepared its Mineral Resource and Ore Reserve statements for all operations with reference to the 2007 guidelines and definitions of the South African Mineral Resource Committee (SAMREC). Competent persons have been appointed and assume responsibility for the Mineral Resource and Ore Reserve statements for all our operations and projects, as required.
A register of all competent persons has been lodged with the Company secretary. The Head of Mineral Resource Management confirms that the Mineral Resources and Ore Reserves information in this report is published in the form and context in which it was intended.
In compliance with internal review-and-audit schedules and continuous improvement initiatives, Amplats has implemented the following processes and reviews over the past four years:
- Formal sign-off of the geological structure, borehole and sample database and the Mineral Resource classification.
- Mineral Resource classification scorecard for consistent resource classification statements.
- Various multiple and single disciplinary reviews and sign-off for Mineral Resources and Ore Reserves.
- Mine design and scheduling for consistent Reserve reporting, considers the Company’s business plan and tail management.
- The Basic Resource Equation is an internal reconciliation of the Mineral Resources that are segregated into the various business plans and investment centres.
External independent audits
- Process audit to ensure that Company standards and procedures are aligned with world best practice and are being applied.
- Number audit to track data transfers from source to Reserve statement.
- Risk assessments and best practice recommendations are included in this audit.
- Mineral Resource and Ore Reserve waterfall charts.
- Prill and base metal grade distribution of the Mineral Resources inclusive of Ore Reserves.
- Spatial distribution of the Mineral Resource classification of the major mines are now reported.
- Reporting of Mineral Resources inclusive of Ore Reserves.
- Statement of Mineral Deposits.
Resource and Reserve management database
- Platinum Resource and Reserve reporting system (PR3).
- Web-based data-capturing of all relevant Mineral Resource and Ore Reserve information.
- System is in line with Anglo American plc’s Group Resource and Reserve Reporting management application.
- System has been audited and been approved.
In compliance with an internal three-year external review-and-audit schedule, Snowden Mining Industry Consultants (Snowden) was contracted to conduct the following:
- A detailed 2012 numerical audit of the Mineral Resource and Ore Reserve evaluations at the Mogalakwena, Dishaba and Unki mines.
- An assessment of the remedial actions put in place as a consequence of the 2011 numerical audit findings at the Tumela, Mogalakwena and Union (North and South) mines.
Snowden states in its evaluation summary: “In Snowden’s opinion AAPL has estimated Resources and Reserves for the Mogalakwena, Dishaba and Unki operations in accordance with the definitions and guidelines contained in the SAMREC Code. The processes employed by Amplats for Mineral Resource and Mineral Reserve estimation are well aligned with industry practice. Snowden did not identify any material errors during the numbers audit of the Union, Tumela and Mogalakwena operations.”
The 2012 Resource models (120 cm and 180 cm) for the MSZ for all the Southridge Prospects were subjected to a technical review by Snowden. Their conclusions were that “The resource estimates have been conducted in a robust manner and the confidences reflected in the resource classification are appropriate”.
Gordon Smith (Pr Eng, PhD, MBA, MSc (Eng), BSc (Eng)) Engineering Council of SA (930124)
Head: Mineral Resource Management Anglo American Platinum Limited
1 February 2013
The Platreef is such that it can support open-pit mining operations to depths far exceeding 400 metres at current prices and mining costs.
CHANGES IN THE ORE RESERVES AND MINERAL RESOURCES FOR 2012
ORE RESERVE AND MINERAL RESOURCE ESTIMATION SUMMARY
Ore Reserves – South Africa
Ore Reserves – Zimbabwe (Unki Platinum Mine (Unki))
Ore Reserves 1 – South Africa and Zimbabwe
Mineral Resources exclusive of Ore Reserves
Mineral Resources exclusive of Ore Reserves – Zimbabwe (Unki)
Mineral Resources exclusive of Ore Reserves 2 – South Africa and Zimbabwe
Mineral Resources inclusive of Ore Reserves
Mineral Resources inclusive of Ore Reserves – Zimbabwe (Unki)
Mineral Resources inclusive of Ore Reserves 2 – South Africa and Zimbabwe
Ore Reserves – South Africa tailings
Mineral Resources – South Africa tailings
Note: The above Mineral Resources exclude the Boikgantsho and Sheba’s Ridge projects in South Africa and the Pedra Branca project in Brazil. These projects reflect a 3E grade which is the sum of platinum, palladium and gold grades, whereas the other mines and projects reflect a 4E grade. For these projects see tabulation below:
Mineral Resources inclusive of Ore Reserves
Mineral Resources inclusive of Ore Reserves
Mineral Resources inclusive of Ore Reserves
Mineral Resources inclusive of Ore Reserves2 – South Africa and Americas
1 The Ore Reserves reflect the total of Proved and Probable Ore Reserves.
2 The Mineral Resources reflect the total of Measured, Indicated and Inferred Mineral Resources. The Mineral Resources are quoted after geological losses.
Exploration on prospecting permits is progressing in line with the work-programme schedules and the environmental management programmes submitted to the Government’s Department of Mineral Resources.
Only current operations, approved projects in execution and projects in feasibility study featured in the business plan are included as Reserves.
Competent persons have been appointed and assume responsibility for the Mineral Resource and Ore Reserve statements for all our operations and projects.
ORE RESERVES AND MINERAL RESOURCES DEFINITIONS
The Ore Reserves and Mineral Resources of the Group are classified, verified and reported on in accordance with statutory, stock-exchange and industry/professional guidelines. The classifications are based on the South African Code for the reporting of exploration results, Mineral Resources and Mineral Reserves (SAMREC, 2007) and on the code of the Joint Ore Reserves Committee (JORC) of the Australian Institute of Mining and Metallurgy.
Reporting is by professionals with appropriate experience in the estimation, economic evaluation, exploitation and reporting of Ore Reserves and Mineral Resources relevant to the various styles of mineralisation under consideration. The Group’s experience with the various orebodies it is engaged in evaluating and mining spans decades, resulting in a thorough understanding of the factors relevant to assessing their economic potential.
Where Ore Reserves and Mineral Resources have been quoted for the same property, Resources are reported both inclusive and exclusive of the material converted to Reserves, i.e. one table reports Resources that exclude those Resources converted to Reserves while the other includes the converted Resources.
Attention is drawn to the fact that Resources are reported over a minimum practical mining width (SAMREC, clause 21), because the widths of the Merensky and the UG2 reefs are generally less than 70 centimetres. In the case of the UG2 Reef, however, there are many areas where additional hanging-wall dilution is also included owing to geotechnical considerations; this additional low-grade material usually has a width of less than 30 centimetres, but this may increase locally to as much as one metre. The UG2 Reef, particularly in the Eastern Limb, may also contain pyroxenite lenses of internal waste and these are included as dilutants in the Resource declaration. The Mineral Resources are estimated over a practical minimum mining width suitable for the deposit known as the “Resource Cut”. The minimum mining width over which Mineral Resources are declared is 110 centimetres. The Resource Cut width takes cognisance of the mining method and geotechnical aspects in the hanging wall or footwall of the reef. The conversion of the Resource Cut to an appropriate Reserve width would include additional dilution incurred as the result of mining considerations.
All Mineral Resources are reported after appropriate known and unknown geological losses have been excluded.
The study on the density assay technique has been completed and improved technology will be implemented to reduce the observed pycnometer bias.
“ A Mineral Resource is a concentration or occurrence of material of economic interest in or on the earth’s crust, in such form 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 in order of increasing confidence in respect of geoscientific evidence into ‘Inferred’, ‘Indicated’ and ‘Measured’ categories, and must be so reported. ” (SAMREC, clause 21)
It should be noted that the continuity of the Bushveld Complex orebodies, coupled with the expectation of a robust demand for platinum group elements (PGEs) and associated metals well into the future, allows the PGE industry to classify large volumes of the three mineralised layers as “Resources” under the different categories defined in the SAMREC code and described below. Anglo American Platinum Limited takes cognisance of cut-off grades (derived from information on pay limits in the mining operations) and of “reasonable and realistic prospects for eventual economic extraction” over a period of 30 to 50 years.
The Resources classification process is underpinned by a sign-off procedure by a team of competent persons. The team considers a spatial scorecard of geological, historical-mining, quality-control and geostatistical aspects that are appropriately weighted for each particular orebody when assigning the classification.
Inferred Mineral Resources: “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 and assumed from geological evidence and sampling, but not verified geologically and/or through an analysis of grade continuity. Inferred Mineral Resources are 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.” (SAMREC, 2007)
Indicated Mineral Resources: “An Indicated Mineral Resource is that part of a Mineral Resource for which volume and/or 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.” (SAMREC, 2007)
Measured Mineral Resources: “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.” (SAMREC, 2007)
“An Ore Reserve is the economically mineable material derived from a Measured and/or an Indicated Mineral Resource. It includes diluting 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 of 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).” (SAMREC, 2007) These assessments demonstrate, at the time of reporting, that extraction is justifiable. Ore Reserves are subdivided, in order of increasing confidence, into Probable Ore Reserves and Proved Ore Reserves.
Probable Ore Reserves: “A Probable Ore 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 materials 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 of 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.” (SAMREC, 2007) These assessments demonstrate, at the time of reporting, that extraction is reasonably justified.
Proved Ore Reserves: “A Proved Ore 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 of 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.” (SAMREC, 2007) These assessments demonstrate, at the time of reporting, that extraction is justified.