INVESTOR SITE VISIT MAGARENG MINE - 10 NOVEMBER

Transcription

1 INVESTOR SITE VISIT MAGARENG MINE - 10 NOVEMBER 2017

2 Legal notice/disclaimer This presentation is published solely for informational purposes and does not constitute investment, legal, tax or other advice nor is it to be relied upon in making an investment decision. Information contained herein has been taken from sources considered by Merafe Resources to be reliable but no warranty is given that such information is accurate or complete and it should not be relied upon as such. Views and opinions expressed in this presentation reflect the judgment of Merafe Resources as of the date of this presentation and are subject to change. Merafe Resources will not be responsible for any liability for loss or damage of any kind which arises, directly or indirectly, and is caused by the use of any of the information provided. The entire presentation is subject to copyright with all rights reserved. The information contained herein shall not be published, rewritten for broadcast or publication or redistributed in any medium without prior written consent from Merafe Resources. Prospective investors should take appropriate investment advice and inform themselves as to applicable legal requirements, exchange control regulations and tax considerations in the countries of their citizenship, residence or domicile. The distribution of the information contained in this presentation in certain countries may be restricted by law and persons who access it are required to inform themselves and to comply with any such restrictions. This information does not constitute an offer or solicitation in any jurisdiction in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Past performance is not a guarantee of future performance. The price of shares can go down as well as up and may be affected by change in exchange rates, market conditions and risks associated with a mining venture. 2

3 Itinerary 09:00 09:30 Arrival, welcome and Presentation 09:30 09:45 Induction 09:45 11:30 Change and depart for Underground visit 11:30 11:45 Plant drive through 11:45 12:00 Refresh from underground visit 12:00 12:30 Lunch and Q&A 12:30 13:00 LION smelter presentation 13:00 14:30 Depart for LION visit and drive through 14:30 - Depart LION to Winterveld 3

4 Presentation HSEC Background Mine layout Mining methodology Ore processing and products 4

5 Your safety is important to us SAFEALLOYS 9 Life saving behaviours Fatal hazard protocols Major Risks: FOG/Strata Control TMM Electricity and Lockout Conveyors Fire/Explosion Working at heights Behaviour Based Safety System (Meerkat) We Work Safe One Day At A Time 5

6 Background Location and geology 6

7 Background (cont.) History of chrome mining World s largest known layered intrusion (Bushveld Complex) Thirteen chromite seams in the upper and lower critical zones 7-LG s, 4-MG s, 2-UG s. Chromite discovered in S.A. in 1865 by Carl Mauch in the Hex River near Rustenburg. Mining chromite started in the Burgersfort and Steelpoort area in Un the 1960 s S.A. became a major force in the Chromium industry. 7

8 Background (cont.) Geology - stratigraphy 8

9 Background (cont.) Location 9

10 Background (cont.) Thorncliffe mine: Started 1997 Rom tons per month Helena mine - Started 2004 Rom tons per month Magareng Mine Started 2008 Rom tons per month 10

11 Background Chromite seams mined Mining the MG1 and UG2 seams on the Eastern and Western limb of the bushveld complex The mining width varies from 170cm to 240cm Dip (inclination) varies from 9-16 below the horizontal Internal waste and lenses in the reef up to ±90cm MG2 and other MG s being explored currently (alternative seams) 11

12 Background (cont.) Mine site

13 Background (cont.) Opencast development 13

14 Background (cont.) Opencast stabilisation 14

15 Background (cont.) Completed high walls and start of main decline development

16 Background (cont.) Started project in 2008 First sinking commenced in 2010 Mining ramp up and plant construction from 2012 Production build up to capacity from 2014 Current production on t run of mine and plant feed 16

17 Life of Mine including Richmond (deeper reserves) 17

18 Mine layout Trackless bord and pillar mine, all excavations on reef Reef width of 1.7m and mining height of 2.0m Main sinking comprising of 4 cluster declines, 6m wide Stoping sinking comprising of 4 cluster declines, 6m wide Stoping sections with 12 x 8m bords per section serviced by 2 strike conveyors with tips Strike distances vary from 600m to 900m Strike conveyors transfer ore to the main dip conveyors to surface stockpile 18

19 Mine layout (cont.) Ventilation shafts Adit / portal Declines Ledging Vehicle Conveyor Chairlift Access ledging Panels Sections of 12 Panels 19

20 Mine layout (cont.) 20

21 Mining methodology Triple decline shaft systems from surface All development and mining done on Reef horizon Low Profile Mechanised Room and Pillar Mining Mechanised Drilling and Loading Tips with vibratory feeders and herringbone Conveyor network system to transport ore Monitoring Systems and Automation 21

22 Basic mining equation Mining Cycle: 3 shifts per day 22 working days per month One blast per day end of day shift Blast clearance/re entry of 2 hours Production sections of panels dedicated to a drill rig section: Cleaning 3,5 ton lhd Drill and install support remote autorock Face drilling and charge-up Drill rig Blast emulsion Face advances: Panels 20 m/month Declines m/month 22

23 Support installation 23

24 Drill rig panel drilling 24

25 Charged up panel for Blasting 25

26 Load haul dumper 26

27 Underground tip 27

28 Underground conveyor 28

29 ROM FEED FROM UNDERGROUND ROM IS STORED ON A LIVE 1500 t STOCKPILE AND CRUSHED CRUSHED ROM IS STORED ON A 7000 t LIVE STOCKPILE ROM IS FED INTO PREPARATION PLANT AND SORTED INTO LUMPY AND CHIPS Ore flow diagram SPIRALS BUILDING MILLING AND CFC BUILDING LUMPY AND CHIPS FRACTIONS ARE TREATED IN THE HMS PLANT LUMPY PRODUCT CHIPS PRODUCT CHEMICAL GRADE PRODUCT METALLURGICAL GRADE PRODUCT 29 WASTE STOCKPILE TAILINGS

30 Chrome products produced 30

31 Eastern Chrome Mines Production Capacity/month 31

32 Questions 32