EX-96.1 25 exhibit961.htm EX-96.1 exhibit961
exhibit961p1i1 exhibit961p1i0
MINERAL INDUSTRY ADVISORY
Sound Mining International Limited
Directorate:
 
Vaughn Glenn Duke,
 
Jonathan Karsten
Sound Mining House, 2A Fifth Avenue, Rivonia
 
2128, South Africa
 
|
 
Tel:
+23 (0) 11 234 7152
 
|
 
Reg no:
2007/020184/07
TECHNICAL REPORT SUMMARY
FAR
 
WEST GOLD RECOVERIES
(PROPRIETARY)
 
LIMITED
Prepared for:
Far West Gold Recoveries
(Proprietary) Limited
Cycad House, Building 17
Constantia Office Park
Cnr 14
th
 
Avenue and
Hendrik Potgieter Road
Weltevredenpark, 1709
Document No.: PR/SMI/1203/22
Effective date:
 
30 June 2022
Document date: 28 October 2022
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
2
TABLE OF CONTENTS
1.
Executive Summary ................................................................................................
 
.................................................................................8
1.1.
Introduction ..............................................................................................................................................................................8
1.2.
History................................................................................................................................
 
.....................................................11
1.3.
Geological Setting ...................................................................................................................................................................12
1.4.
Exploration
 
................................................................................................................................................................
 
..............16
1.5.
Metallurgical Testing
 
..............................................................................................................................................................17
1.6.
Mineral Resource Estimation ..................................................................................................................................................17
1.7.
Mineral Reserve Estimates ................................................................
 
.....................................................................................18
1.8.
Mine Design and Mine Plan ....................................................................................................................................................18
1.9.
Process and Recovery Methods ..............................................................................................................................................20
1.10.
Infrastructure
 
................................................................................................................................................................
 
..........20
1.11.
Market Studies
 
................................................................................................................................................................
 
........23
1.12.
Environmental Permitting and Liability ................................
 
..................................................................................................23
1.13.
Capital Expenditure and Operating Costs ...............................................................................................................................23
1.14.
Economic Assessment
 
.............................................................................................................................................................25
1.15.
Concluding Comments
 
............................................................................................................................................................29
2.
Introduction
 
................................................................................................................................................................
 
...........................30
2.1.
Corporate Structure and Compliance .....................................................................................................................................30
2.2.
Purpose and Terms of Reference
 
(ToR) ................................................................................................
 
..................................31
2.3.
Qualified Persons Declaration and Qualifications ...................................................................................................................31
2.4.
Units, Currencies and Survey Coordinate System ...................................................................................................................32
2.5.
Political and Economic Climate ...............................................................................................................................................32
2.6.
Minerals Industry
 
................................................................................................................................................................
 
....33
3.
Property Description
 
................................................................................................................................................................
 
..............34
3.1.
Property Location ................................................................................................................................
 
...................................34
3.2.
Legal Tenure and Permitting ...................................................................................................................................................35
3.3.
Material Agreements, Access and Surface Rights ...................................................................................................................35
3.3.1.
Exchange Agreement
 
.............................................................................................................................................35
3.3.2.
Use and Access Agreement ...................................................................................................................................36
3.3.3.
Leeudoorn Agreement ................................................................................................................................
 
..........36
3.4.
Permitting ...............................................................................................................................................................................36
3.4.1.
Driefontein Operational Area ................................................................................................................................37
3.4.2.
Kloof Operational Area ..........................................................................................................................................37
3.5.
Driefontein Environmental Authorization
 
Transfer ................................................................
 
................................................38
3.6.
Water Use Licenses .................................................................................................................................................................38
3.7.
Other Permitting Requirements ................................................................
 
.............................................................................38
3.8.
Royalties ................................................................................................
 
.................................................................................38
3.9.
Liabilities .................................................................................................................................................................................39
3.10.
Concluding Comments
 
............................................................................................................................................................39
4.
Accessibility, Climate, Local Resources,
 
Infrastructure and Physiography
 
............................................................................................40
5.
History ................................................................................................................................
 
...................................................................44
6.
Geological Setting, Mineralization and Deposit .....................................................................................................................................46
6.1.
Regional Setting, Mineralization and Deposit .........................................................................................................................46
6.2.
Local Geological Setting, Deposit and Mineralization .............................................................................................................48
6.3.
Property Geology, Deposit and Mineralization .......................................................................................................................50
7.
Exploration................................................................................................
 
.............................................................................................52
7.1.
Methods and Databases .........................................................................................................................................................52
7.2.
Geophysical Characterization ................................................................
 
.................................................................................52
7.3.
Geo-hydrological Characterization ................................
 
.........................................................................................................52
7.4.
Geotechnical Characterization ................................................................................................................................................52
exhibit961p2i0
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Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
3
7.5.
LIDAR and Surveying ...............................................................................................................................................................52
7.6.
Drilling
 
................................................................................................................................................................
 
.....................53
7.7.
Exploration Budget ................................................................................................................................
 
.................................53
8.
Sample Preparation, Analysis and Security
 
............................................................................................................................................54
8.1.
Sampling Method................................................................................................................................................................
 
....54
8.2.
Sample Security ................................................................................................................................................................
 
......54
8.3.
Analytical Laboratories ................................................................................................................................
 
...........................54
8.4.
Analytical Procedures ................................................................................................................................
 
.............................54
8.5.
Bulk Density ............................................................................................................................................................................55
8.6.
Concluding Comments
 
............................................................................................................................................................55
9.
Data Verification ....................................................................................................................................................................................56
9.1.
Quality Assurance and Quality Control (QA/QC) ................................................................................................
 
....................56
9.2.
Independent Verification ........................................................................................................................................................56
10.
Mineral Processing and Metallurgical Testing ................................
 
.......................................................................................................57
10.1.
Metallurgical Test
 
Work
 
..........................................................................................................................................................57
10.2.
Concluding Comments
 
............................................................................................................................................................58
11.
Mineral Resource Estimates ................................................................................................
 
..................................................................59
11.1.
Geological Models and Interpretation ....................................................................................................................................59
11.2.
Estimation Methodology ................................................................................................................................
 
........................59
11.3.
Mineral Resource Classification ..............................................................................................................................................60
11.4.
Mineral Resource Verification ................................
 
................................................................................................................61
11.5.
Cross-sections and Grade Distribution ................................................................
 
...................................................................61
11.6.
Reasonable and Realistic Prospects for Economic
 
Extraction
 
.................................................................................................68
11.7.
Mineral Resource Estimation ..................................................................................................................................................68
11.8.
Additional Mineral Resources .................................................................................................................................................69
11.9.
Concluding Comments
 
............................................................................................................................................................69
12.
Mineral Reserve Estimates ................................................................................................
 
....................................................................70
12.1.
Risk to the Mineral Reserve Estimate ................................................................................................................................
 
.....70
13.
Mining Method
 
................................................................................................................................................................
 
......................72
13.1.
Mining Plan and Layout ................................................................................................................................
 
..........................74
13.2.
Modifying Factors and Mining Schedule
 
.................................................................................................................................75
13.3.
Cut-off Grade ................................................................................................................................................................
 
..........76
13.4.
Mining Contractor
 
................................................................................................................................................................
 
...77
13.5.
Concluding Comments
 
............................................................................................................................................................77
14.
Process and Recovery Methods
 
.............................................................................................................................................................78
14.1.
Existing DP2 Processing Facility ................................................................................................
 
..............................................78
14.2.
Planned Expansion of DP2 ......................................................................................................................................................79
14.3.
Concluding Comments
 
............................................................................................................................................................81
15.
Infrastructure
 
................................................................................................................................................................
 
.........................82
15.1.
Leeudoorn Facility
 
................................................................................................................................................................
 
...82
15.1.1.
Geotechnical, Hydrological and Geohydrological Considerations .........................................................................84
15.1.2.
Leeudoorn Design
 
..................................................................................................................................................86
15.1.3.
Conclusions............................................................................................................................................................88
15.2.
Regional Tailings Storage
 
Facility ............................................................................................................................................88
15.2.1.
Geotechnical, Hydrological and Geohydrological Considerations .........................................................................90
15.2.2.
The RTSF Design ................................................................................................................................
 
....................92
15.2.3.
Concluding Comments ................................................................................................................................
 
..........95
15.2.4.
Technical Studies - Water ................................................................................................................................
 
......97
15.2.5.
Technical Studies - Power ......................................................................................................................................99
15.2.6.
Technical Studies - Pipelines and Pumping
 
..........................................................................................................100
16.
Gold Market
 
................................................................................................................................................................
 
.........................102
16.1.
Gold Price Trends ..................................................................................................................................................................102
16.2.
Exchange Rate Forecast ................................................................................................................................
 
........................102
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
4
16.3.
Global Demand .....................................................................................................................................................................104
16.4.
Global Supply ........................................................................................................................................................................104
16.5.
Concluding Comments
 
..........................................................................................................................................................105
17.
Environmental Studies, Permitting, or Agreements with Local Individuals or Groups ........................................................................106
17.1.
Permitting Status ................................................................................................................................
 
..................................106
17.1.1.
The National Environmental Management Act (NEMA)
 
......................................................................................106
17.1.2.
National Environmental Waste Management
 
Act (NEM:WA) .............................................................................107
17.1.3.
National Water Act (NWA) ................................................................
 
..................................................................108
17.2.
Environmental Considerations
 
..............................................................................................................................................108
17.3.
Social and Political Considerations ................................................................
 
.......................................................................109
17.3.1.
Discussions with Local Individuals or Groups ......................................................................................................109
17.4.
Environmental Closure Liability Estimate ................................................................
 
.............................................................110
17.4.1.
Basis of the Closure Liability Estimate .................................................................................................................110
17.4.2.
Quantum of the Closure Liability
 
.........................................................................................................................110
17.5.
Concluding Comments
 
..........................................................................................................................................................112
18.
Capital and Operating Costs ................................................................................................
 
................................................................113
18.1.
Capital Expenditure................................................................................................................................
 
...............................113
18.2.
Operating Costs ................................................................................................
 
....................................................................114
18.2.1.
Concluding Comments ................................................................................................................................
 
........115
19.
Economic Assessment................................................................................................................................
 
..........................................116
19.1.
Revenue Forecast ................................
 
.................................................................................................................................116
19.2.
Cashflows
 
................................................................................................................................................................
 
..............117
19.3.
Sensitivities ...........................................................................................................................................................................118
19.4.
Concluding Comments
 
..........................................................................................................................................................119
20.
Adjacent Properties .............................................................................................................................................................................119
21.
Other Relevant Data and Information ................................................................................................
 
.................................................120
21.1.
South African Minerals Policy and Legislative Framework ................................
 
...................................................................120
21.2.
South African Legislative Framework
 
....................................................................................................................................121
22.
Interpretations and Conclusions
 
..........................................................................................................................................................124
23.
Recommendations
 
................................................................................................................................................................
 
...............125
24.
References ...........................................................................................................................................................................................126
25.
Reliance on Information Provided by the Registrant ...........................................................................................................................136
26.
Qualified Persons Disclosure Consent ................................................................................................
 
.................................................137
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
5
List of Figures
Figure 1: DRDGOLD Corporate Structure .........................................................................................................................................................30
Figure 2: Location of the FWGR Operations ................................................................................................
 
....................................................34
Figure 3: FWGR Operations ................................................................................................................................
 
.............................................35
Figure 4: Sibanye Gold Mining Rights ................................................................................................................................
 
..............................37
Figure 5: Topography
 
of Southern Africa
 
.........................................................................................................................................................40
Figure 6: Topography
 
Map of FWGR................................................................................................................................
 
................................41
Figure 7: Climate and Rainfall of South Africa ................................................................................................
 
.................................................42
Figure 8: Vegetation of South Africa ................................................................................................................................................................43
Figure 9: Regional Geological Setting of the Witwatersran
 
d
 
Supergroup .......................................................................................................47
Figure 10: Geology of the Witwatersrand Basin ..............................................................................................................................................48
Figure 11: Witwatersrand Supergroup Stratigraphic
 
Section ..........................................................................................................................49
Figure 12: Property Geology ............................................................................................................................................................................51
Figure 13: Cross-sections and Grade Distribution - Driefontein 5 TSF .............................................................................................................62
Figure 14: Cross-sections and Grade Distribution - Driefontein 3 TSF .............................................................................................................63
Figure 15: Cross-sections and Grade Distribution - Kloof 1 TSF .......................................................................................................................64
Figure 16: Cross-sections and Grade Distribution - Libanon TSF ................................................................................................
 
.....................65
Figure 17: Cross-sections and Grade Distribution - Venterspost
 
North TSF ....................................................................................................66
Figure 18: Cross-sections and Grade Distributions - Venterspost
 
South TSF
 
...................................................................................................67
Figure 19: Mining Methodology ................................................................................................................................................................
 
......73
Figure 20: Mining Widths ................................................................................................
 
................................................................................73
Figure 21: Mining Sequencing ................................................................................................................................
 
.........................................75
Figure 22: DP2 Revised Block Plan ...................................................................................................................................................................79
Figure 23: Driefontein 4 TSF Location and Infrastructure ................................................................................................................................82
Figure 24: Leeudoorn TSF Layout................................................................................................
 
.....................................................................83
Figure 25: Final Layout of Airspace Model
 
.......................................................................................................................................................86
Figure 26: Position of the Elevated Drain Filter ................................................................................................
 
...............................................87
Figure 27: Cyclone Layout
 
................................................................................................................................................................
 
................87
Figure 28: Geo-hydrological Regime at the RTSF Site ......................................................................................................................................91
Figure 29: Geo-hydrological Effects
 
of Scavenger Wells beneath the RTSF .....................................................................................................92
Figure 30: RTSF Layout
 
................................................................................................................................................................
 
.....................95
Figure 31: TSF Location, Make-up Water
 
Shafts, Processing Plants and Pipeline Layouts ................................................................
 
..............98
List of Tables
Table 1: Personal Inspection ............................................................................................................................................................................32
Table 2: Historical Development
 
of FWGR................................................................................................................................
 
.......................45
Table 3: Dry Densities used by Other Re-treatment
 
Companies for the Witwatersrand Operations ..............................................................55
Table 4: Full Diagnostic Leach Results on Un-milled Feed
 
Samples
 
.................................................................................................................57
Table 5: Driefontein
 
5 TSF Feed Sample Assay by Size ................................................................
 
....................................................................57
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(Proprietary) Limited
Document No: PR/SMI/1203/22
6
Table 6: Driefontein 3 TSF
 
Feed Sample Assay by Size ................................................................
 
....................................................................58
Table 7: Summary of Process Recovery
 
Potential
 
............................................................................................................................................58
Table 8: Data Interrogated
 
per TSF
 
................................................................................................................................................................
 
..61
Table 9: Variogram
 
Parameters ................................................................................................................................................................
 
.......61
Table 10: Mineral Resource
 
Estimate for FWGR as at 30 June 2022 ................................................................................................
 
...............68
Table 11: S-K 1300 Compliant Mineral Reserve
 
Estimate as at 30 June 2022 ................................................................
 
.................................70
Table 12: Scheduled RoM Production ..............................................................................................................................................................75
Table 13: Calculated Cut-off
 
Grades ................................................................................................................................................................77
Table 14: Mining Equipment Planned for each TSF ................................................................
 
.........................................................................77
Table 15: Design Criteria and Assumptions ................................................................
 
.....................................................................................84
Table 16: Changes in Parameters
 
................................................................................................................................................................
 
....89
Table 17: Environmental
 
Elements under Consideration for RTSF Design and Disposal Method ................................
 
...................................89
Table 18: Engineering Elements under Consideration for
 
RTSF Design and Disposal Method ........................................................................90
Table 19: RTSF Design Criteria ................................................................................................
 
.........................................................................90
Table 20: Underground Water
 
Sources ...........................................................................................................................................................98
Table 21: Power
 
Requirements for FWGR Operations ................................
 
....................................................................................................99
Table 22: Eskom
 
Points of Delivery
 
................................................................................................................................................................100
Table 23: Existing Pipeline and Pumping Infrastructure ................................................................
 
................................................................101
Table 24: Phase 2 Pipeline and Pumping Infrastructure ................................................................................................................................101
Table 25: Above Ground Gold Stocks
 
in 2021
 
................................................................................................................................................102
Table 26: Long Term
 
Consensus Forecasts in Nominal Terms ................................................................................................
 
.......................103
Table 27: Global Gold Production ..................................................................................................................................................................105
Table 28: Required Environmental
 
Legislation and the Status for the Driefontein Mining Area ...................................................................107
Table 29: Activities for Phase 2 Requiring a Waste
 
Management License (WML)
 
.........................................................................................107
Table 30: Current Closure Cost
 
Estimates for FWGR ................................................................................................................................
 
.....111
Table 31: Closure Cost Estimates
 
from Kloof EIA and Guaranteed through Guardrisk ..................................................................................111
Table 32: Summary of Capital Expenditure
 
...................................................................................................................................................113
Table 33: Average
 
DP2 Operating Cost over LoM ..........................................................................................................................................114
Table 34: Inputs to the DCF Model ................................................................................................................................................................116
Table 35: Sensitivity of Post
 
-tax NPV .............................................................................................................................................................118
Table 36: Sensitivity of Gold Price ................................................................
 
.................................................................................................118
Table 37: Sensitivity of the Discount Rate ................................................................
 
.....................................................................................118
Table 38: TRS Data and Information
 
Sources.................................................................................................................................................126
Table 39: Glossary and Abbreviations................................
 
............................................................................................................................129
Table 40: QP Area of Responsibility and Disclosure Consent
 
........................................................................................................................137
 
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(Proprietary) Limited
Document No: PR/SMI/1203/22
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List of Graphs
Graph 1: LoM Production Forecast ..................................................................................................................................................................76
Graph 2: Potential LoM Production Forecast
 
..................................................................................................................................................76
Graph 3: Actual Production Capacity of DP2 for FY2020, FY2021 and FY2022 ................................................................................................78
Graph 4: Actual Plant Recovery for DP2 versus Forecast
 
Recovery for FY2020, FY2021 and FY2022..............................................................79
Graph 7: Gold Price Historical Trendline ........................................................................................................................................................102
Graph 8: Exchange Rate Historical Trendline .................................................................................................................................................103
Graph 6: Global Gold Demand from 2012 to 2021 ........................................................................................................................................104
Graph 5: Global Gold Supply from 2012 to 2021 ...........................................................................................................................................104
Graph 9: Capital Expenditure Forecast ................................................................................................................................
 
..........................114
Graph 10: Operating Cost Forecast................................
 
................................................................................................................................115
Graph 11: Gold Sales Forecast .......................................................................................................................................................................117
Graph 12: Post-tax Discounted Cashflows .....................................................................................................................................................117
Graph 13: Sensitivity to Expected Revenue and Costs
 
...................................................................................................................................118
Graph 14: Post-tax Discounted Cashflows
 
(including liner)
 
...........................................................................................................................119
List of Photographs
Photograph 1: Monitor Gun ................................................................................................
 
............................................................................72
Photograph 2: Monitor Gun in Operation ................................................................................................
 
.......................................................74
 
exhibit961p2i0 exhibit961p8i0
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
8
1.
 
EXECUTIVE SUMMARY
1.1.
 
Introduction
DRDGOLD Limited (DRDGOLD), which has a primary listing on the Johannesburg Stock Exchange
 
(JSE) and a secondary listing on the New York
 
Stock
Exchange (NYSE), is
 
an established gold
 
tailings retreatment company
 
located near Johannesburg,
 
South Africa.
 
The company’s business
 
is to profitably
reclaim tailings from
 
surface Tailings
 
Storage Facilities
 
(TSFs). DRDGOLD has
 
arranged its operations
 
into two
 
wholly owned entities
 
covering their
East
 
Rand (east
 
of Johannesburg)
 
and
 
far
 
West
 
Rand
 
(far
 
west
 
of
 
Johannesburg) businesses.
 
The
 
East
 
Rand
 
operations
 
are
 
run by
 
Ergo
 
Mining
(Proprietary) Limited (Ergo) and the
 
West rand operations
 
by Far West
 
Gold Recoveries (Proprietary) Limited
 
(FWGR). FWGR currently own six
 
TSFs
on the West Rand between Roodepoort and Carletonville, approximately
 
70km South West of Johannesburg (Figure A). There are
 
an additional three
TSFs which are
 
to be transferred
 
from Sibanye Gold
 
Limited (Sibanye Gold)
 
to FWGR once
 
no longer required
 
by the existing
 
operations (Available
TSFs).
 
Numerous other TSFs are potentially available in the area for future reclamation (Target TSFs).
Figure A: Location of the FWGR Operations
Source:
 
Sound Mining,
 
2022
This Technical
 
Report Summary
 
(TRS) was
 
prepared by
 
Sound Mining
 
International SA
 
(Proprietary) Limited
 
(Sound Mining)
 
for DRDGOLD
 
as the
registrant. It
 
was compiled by
 
qualified persons (QPs)
 
in line with
 
the Securities Exchange
 
Commission (SEC) requirements,
 
Regulation S-K
 
1300. It
presents the Mineral Resources and Mineral Reserves of FWGR as at 30 June 2022, and as a maiden submission to the SEC.
The QP has relied
 
on information provided
 
by FWGR with respect
 
to legal matters
 
(Item 3), the gold
 
price (Item 16.1), environmental
 
or social and
labor planning aspects (Item 17) and economic assumptions (Item 19).
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
9
The qualified persons Mrs Diana van Buren (Mineral Resources), Mr Vaughn
 
Duke (Mineral Reserves) and Mr Keith Raine (Environmental, Social and
Governance) have reviewed the exploration data base; the geological block models; the processing plant design and costing; mine plans, production
scheduling, infrastructure;
 
legal
 
tenure, permitting,
 
environmental
 
and social
 
compliance status
 
and the
 
latest assessment
 
of the
 
environmental
rehabilitation liabilities required for eventual closure of the operation.
The information
 
was
 
used to
 
substantiate
 
the confidence
 
in the
 
Mineral
 
Resource and
 
Mineral
 
Reserve estimates
 
and then
 
incorporated
 
into
 
a
Discounted Cashflow (DCF) Model for an economic assessment of the viability of the Mineral Reserves.
The assets held by FWGR were acquired from Sibanye
 
Gold Limited (Sibanye Gold), a subsidiary of Sibanye-Stillwater Limited (Sibanye-Stillwater),
 
in
a transaction which was concluded in
 
July 2018 in which common law
 
ownership was established over various TSFs containing the Mineral Resources
and Mineral Reserves.
FWGR conducts its activities inter alia
 
in accordance with Environmental
 
Approvals and the provisions of
 
the Mine Health and Safety
 
regulations. A
Use and
 
Access Agreement
 
with Sibanye
 
Gold articulates
 
the various
 
rights, permits
 
and licenses
 
held by
 
Sibanye
 
Gold in
 
terms of
 
which FWGR
operates, pending the transfer to FWGR of those that are transferable. The FWGR operations are comprised of a variety of assets (Table A), including
a processing plant and land for the development of a Regional Tailings Storage Facility (RTSF) for long-term sustainability.
Table A: FWGR Assets
Asset Type
Asset
Location
TSFs
Driefontein 3
Driefontein Mining Right area
Driefontein 5
Kloof 1
Kloof Mining Right area
Libanon
Venterspost North
Venterspost South
Depositional TSF
Driefontein 4
North-east of Driefontein Mining Right area
Operating Surface
Gold Processing
Plants
DP2
Located on:
Farm Blyvooruitzicht 116IQ Portion (Ptn) 6; and
Farm Driefontein 113IQ Remainder (Re) of Ptn 1
Pilot plant
Located at:
Driefontein 1 processing plant
Land for
 
Phase 2
Land for the RTSF
Located on:
Farm Cardoville 647IQ;
Re Ptn 6 Farm Cardoville 364 IQ;
Ptn 8 of Ptn 6 of Farm Cardoville 364IQ;
Ptn 13 of Ptn1 of Farm Cardoville IQ;
Ptn 50 Farm Kalbasfontein 365IQ;
Re Ptn 3 Farm Cardoville 364;
Re Ptn 5 of Ptn 3 Farm Cardoville 364IQ; and
Ptn 11 Farm Cardoville 364IQ
Land for a Central Processing Plant (CPP) which provides strategic
optionality
Located after subdivision of:
Farm Rietfontein 347IQ Ptn 35 and Ptn 73
Access Rights
Access to water from the Driefontein 10 shaft and Kloof 10 shaft, for the
purposes of hydro-mining
Located within the Driefontein and Kloof Mining Right
areas
Installation, supply, distribution and maintenance of power supply
Driefontein 1 gold plant
Located at Driefontein 1 processing plant
Source:
 
FWGR, 2022
 
exhibit961p2i0 exhibit961p10i0
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
10
A review
 
of the
 
environmental permitting
 
concluded that
 
the necessary
 
permitting requirements
 
are in
 
place or
 
are being
 
proactively addressed.
Sufficient provision is included to address the rehabilitation liabilities
 
associated with the above assets. The QPs are satisfied that FWGR has
 
the legal
right to reclaim and
 
process the TSFs forming part
 
of the operation. These
 
are classified as
 
moveable assets and so
 
there is no immediate
 
requirement
to transfer any part of the mining rights from Sibanye Gold Limited (Sibanye Gold). The operations are not subject to royalty payments.
The initial phase
 
of FWGR’s long-term growth strategy
 
is now complete.
 
It included upgrading
 
the Driefontein Plant 2
 
(DP2) to process
 
tailings material
through the hydro-mining of
 
Driefontein 5 TSF
 
at approximately 500ktpm.
 
Phase 2 will begin with the
 
expansion of DP2 to a
 
processing capacity of
1.2Mtpm. New arisings (i.e., retreated
 
tailings) from DP2 are being
 
deposited onto the Driefontein 4
 
TSF (0.5Mtpm), which is due to
 
reach capacity
towards the end of calendar year
 
2025 whereafter the depositional rate
 
would have to decrease materially.
 
Sibanye Gold has in principle approved
the deposition of new
 
arisings onto their
 
Leeudoorn TSF until
 
the planned new RTSF
 
is operational in
 
2030. Upon the
 
conclusion of written
 
terms,
FWGR will be able to deposit 500ktpm on the Leeudoorn TSF until 2029. Supporting pipelines will link this infrastructure to additional TSFs that have
been identified as potentially available for reclamation to extend the life of the operation beyond the current Mineral Reserves.
 
The construction of a significantly larger
 
CPP has been considered as a strategic option
 
to facilitate growth beyond the throughput of 1.2Mtpm called
for in the
 
Life-of-Mine (LoM)
 
plan. A large
 
RTSF has been
 
designed to accommodate
 
such strategic growth
 
over the longer
 
term and the
 
LoM plan
anticipates that this
 
facility will be
 
commissioned in 2030.
 
The Leeudoorn
 
TSF will enable
 
the expansion to
 
750ktpm planned by
 
FWGR over the
 
shorter
term, until 2030.
 
The operation’s infrastructure and current TSFs lie across two mining rights which stretch from Westonaria
 
to Carletonville (Figure B).
Figure B: FWGR Operations
Source:
 
Sound Mining,
 
2022
The
 
TSFs
 
are
 
located
 
at
 
elevations
 
between
 
1,570mamsl
 
and
 
1,720mamsl
 
in
 
an
 
area
 
that
 
is
 
typical
 
of
 
a
 
mature
 
landscape
 
with
 
gentle
 
rolling
undulations and shallow sided river valleys. The
 
area enjoys warm to hot, moist summers and cool dry
 
winters with an average ambient temperature
of 20°C. The operation experiences some 571mm of rain
 
each year, with
 
most of it occurring during summer in the form of
 
thunderstorms. Most of
exhibit961p2i0
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the area comprises disturbed grazing land and
 
minor crop production. The area is well serviced
 
with schools, medical facilities, a rail network, power,
water and other supporting
 
infrastructure. Both tarred and gravel roads
 
are used to commute between
 
farms and mines, as
 
well as to and
 
from urban
centers.
1.2.
 
History
Gold and uranium mining
 
operations commenced in the
 
late 1800s in
 
the Witwatersrand Basin
 
goldfields of South Africa,
 
and have resulted
 
in the
accumulation of substantial amounts of surface tailings and other mine residues. The possible re-treatment of TSFs in the West Rand area has a long
and
 
complex
 
history
 
with
 
Gold
 
Fields
 
Limited
 
(Gold
 
Fields),
 
Rand
 
Uranium
 
Limited
 
(Rand
 
Uranium),
 
Harmony
 
Gold
 
Mining
 
Company
 
Limited
(Harmony),
 
Gold
 
One
 
International
 
Limited
 
(Gold
 
One)
 
and
 
Sibanye
 
Gold
 
completing
 
a
 
number
 
of
 
parallel,
 
independent studies
 
relating
 
to
 
the
retreatment of these TSFs. There is an approximate fifteen-year history of metallurgical test work and process design which has been undertaken for
a variety of combinations of assets and
 
products recovered. Whilst these historical
 
studies were for specific combinations
 
of assets, they are not all
relevant to FWGR in its current form.
Prior to 2009,
 
Gold Fields
 
embarked on a
 
project known as
 
the West Wits
 
Project (WWP) aimed
 
at retreating several TSFs
 
on its four
 
mining complexes:
Kloof, Driefontein, Venterspost
 
and South Deep to recover gold, uranium and sulfur and storing the tailings on a new Central Tailings Storage Facility
(CTSF). Similarly, Rand Uranium had embarked on the Cooke Uranium Project (CUP), which endeavored to treat the Cooke TSF for gold, uranium and
sulfur. The two independent projects had similar operational and environmental mandates, within a 25km radius of each other.
In 2009, Gold Fields
 
and Rand Uranium
 
evaluated the potential
 
synergy of an
 
integrated retreatment
 
plan for TSFs
 
located within the South
 
Deep,
Cooke, Kloof, Driefontein and Venterspost
 
mining complexes.
In 2012, Gold One acquired Rand Uranium
 
and in the same year acquired
 
the Ezulwini Mining Company (Proprietary) Limited
 
(Ezulwini). During the
same year Gold
 
One, revived the tailings
 
retreatment project and
 
Gold Fields entered
 
into a joint
 
venture (JV) partnership with
 
Gold One to
 
investigate
the economic viability of concurrently reprocessing
 
current arisings and historical tailings
 
from a number of sites
 
situated in the greater
 
West Rand
area. A scoping study was concluded in 2012.
In early 2013, Gold Fields unbundled its Kloof and Driefontein Complex and Beatrix gold mines in the Free State
 
Province to create a separate entity
in Sibanye Gold
 
and listed Sibanye
 
Gold as a
 
fully independent company
 
on both the
 
JSE and the
 
NYSE stock
 
exchanges. Subsequently,
 
in October
2013,
 
Sibanye
 
Gold
 
Limited
 
purchased
 
the
 
interest
 
held
 
by
 
Gold
 
One
 
in
 
Rand
 
Uranium
 
and
 
Ezulwini.
 
The
Gold One assets
 
which became part
 
of Sibanye Gold
 
included the Cooke
 
operations (underground mining
 
and surface
 
reclamation operations)
 
for
gold and uranium
 
production. This transaction
 
gave Sibanye
 
Gold control
 
of a substantial
 
portion of the
 
surface mineral resources
 
in the region.
 
A
Preliminary Feasibility
 
Study (PFS)
 
was completed
 
in 2013
 
and confirmed
 
that there
 
is a
 
significant opportunity
 
to extract
 
value from
 
the surface
Mineral Resources. Subsequently,
 
a number of
 
Definitive Feasibility Studies
 
(DFSs) have been
 
completed on various
 
combinations of TSFs.
 
Sibanye
Gold’s TSF reclamation assets were housed in a special purpose vehicle (SPV) called West Rand Tailings Retreatment Project (WRTRP).
In 2018, Sibanye
 
Gold traded its SPV
 
for an equity share
 
in DRDGOLD, which as
 
a consequence then wholly owned
 
the tailings retreatment project
which was subsequently renamed FWGR. In mid-2018, FWGR initiated Phase 1 of a phased approach to its growing reclamation operations.
 
exhibit961p2i0 exhibit961p12i1 exhibit961p12i0
 
 
 
 
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1.3.
 
Geological Setting
The assets
 
of FWGR
 
are derived
 
from
 
the West
 
Rand Goldfield
 
of the
 
gold-bearing, late
 
Archaean (2.7Ga
 
to
 
3.2Ga), Witwatersrand
 
Supergroup
(Witwatersrand Basin). The Witwatersrand Basin is a roughly oval-shaped sedimentary basin, filled with approximately
 
14,000m of sedimentary and
subordinate volcanic units, of which only small portions outcrop to the south and west of Johannesburg (Figure C).
Figure C: Regional Geological Setting of the Witwatersrand Supergroup
Source:
 
Sound Mining,
 
2022
exhibit961p2i0 exhibit961p13i0
 
 
 
 
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The basin hosts
 
vast auriferous
 
and uraniferous
 
deposits which have
 
been grouped
 
into geographically
 
distinct sub-basins or
 
goldfields, which are
separated by stratigraphy where no economic mineralization has been discovered (Figure D).
Figure D: Local Geological Setting
Source:
 
Sound Mining, 2022
 
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Recent studies consider the deposition in
 
the Witwatersrand sediments to have taken place along the interface between a fluvial system and a
 
major
body of still water or an inland sea. Specifically, this body of water is considered to be a retro-arc-foreland basin which formed in response to crustal
thickening on the northern edge of the Kaapvaal Craton, during a collision with the Zimbabwe Craton to the north.
The
 
varying
 
stratigraphic
 
position
 
of
 
the
 
narrow,
 
0.1m
 
to
 
2.0m
 
thick
 
quartz-pebble
 
conglomerate
 
reefs
 
are
 
interpreted
 
to
 
represent
 
major,
diachronous, entry points
 
of coarse-grained sediment into
 
the basin. Complex
 
patterns of syn-depositional
 
faulting and folding
 
have caused significant
variations in sediment thickness and
 
sub-vertical to over-folded
 
reef structures are
 
characteristic of the basin
 
margins. Later faulting
 
and folding of
the sequence determined which parts of the Witwatersrand Basin remained buried, as well as the depth extent of mineable horizons, relative to the
present-day surface.
The FWGR assets (Figure E) are derived from the Driefontein, Kloof,
 
Libanon and Venterspost mining operations located in the West
 
Rand Goldfield,
on the north-western rim of the Witwatersrand Basin.
exhibit961p2i0 exhibit961p15i0
 
 
 
 
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Figure E: Property Geology
Source:
 
Sound Mining,
 
2022
exhibit961p2i0
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These operations exploit three primary reefs, namely the Ventersdorp
 
Contact Reef (VCR) located at
 
the top of the Central Rand Group,
 
the Carbon
Leader Reef (CLR)
 
near the base
 
of the Central Rand
 
Group and the Middelvlei
 
Reef (MR), which stratigraphically occurs
 
50m to 75m above
 
the Carbon
Leader. Additional minor reefs including the Kloof, Elsburg, Kimberley and Libanon Reefs are exploited at some operations.
The TSFs to
 
be reclaimed are located
 
in the Western
 
Witwatersrand Basin,
 
within the West
 
Rand and Carletonville goldfields.
 
The TSFs contain
 
the
processed
 
waste
 
from
 
the
 
mining
 
of
 
auriferous
 
and
 
uraniferous
 
ores
 
from
 
Driefontein,
 
Kloof,
 
Libanon
 
and
 
Venterspost
 
underground
 
mining
operations. The mining operations have targeted different reefs and as a result the TSFs
 
have developed from the following:
●
the Driefontein TSFs comprise primarily processed VCR, CLR and Middelvlei Reef;
●
the Kloof TSFs comprise primarily processed VCR, Middelvlei Reef and to a lesser extent the Kloof Reef;
●
the Venterspost TSFs comprise primarily processed Middelvlei Reef and VCR; and
●
the Libanon TSFs comprises material from the VCR, Libanon Reef, Kloof Reef and Middelvlei Reef.
The composition of
 
a TSF
 
depends on the
 
geochemical make-up
 
of the material
 
being mined and
 
the chemicals used
 
in the mining
 
and extraction
process. In
 
addition to
 
the internal
 
structure,
 
the TSF
 
reflects the
 
mining strategy
 
and depositional
 
methodologies employed
 
at each
 
operation.
Variations in
 
the density of
 
tailings material is
 
a critical factor
 
in the accurate
 
estimation of quantities
 
as these factors
 
can result in
 
a considerable
variation in gold
 
content and
 
distribution throughout a
 
TSF where
 
such variation has an
 
impact on final
 
recoveries and
 
projected revenues for
 
the
operation. In addition, secondary
 
processes such as metal
 
re-mobilization, erosion, weathering,
 
leaching and acid mine
 
drainage can further
 
affect
the geochemical characteristics of a TSF.
These processes tend to
 
progress faster
 
in a TSF
 
compared to a
 
primary ore body as
 
weathering, erosion and oxidation
 
are accelerated by
 
the fine
particle size of the
 
material. Gold can undergo
 
mobilization within the TSF
 
with time and hence may
 
exhibit areas of re-concentration
 
and even be
present in the sub-structure soil. Although exceptions occur, the TSFs generally show an increase in grade towards the base of the TSF.
1.4.
 
Exploration
The extent, morphology and
 
structure of a
 
TSF is relatively
 
simplistic compared to
 
conventional mineral deposits,
 
and so the exploration
 
programs
were also simple, comprising:
●
surveying to determine physical dimensions and volumes;
●
auger drilling programs to permit sampling for gold content and mapping of the gold distribution;
●
metallurgical and flow sheet development test work; and
●
tailings toxicity tests and specific gravity determination.
The QPs have concluded that the drilling programs were suitable
 
for the type of deposits and that
 
the drilling and sampling techniques were
 
of a high
standard, with sample contamination and losses kept
 
to a minimum. The drilling and sampling programs
 
were conducted to industry standards and
the results are considered reliable and suitable for incorporation into a Mineral Resource estimate.
The analytical laboratories
 
used in the
 
exploration program
 
are all
 
ISO certified for
 
gold analysis
 
and all
 
of them
 
follow best
 
practice principles of
quality management.
 
The Quality
 
Assurance and
 
Quality Control
 
(QA/QC) of
 
the field
 
and laboratory
 
verification procedures
 
were independently
audited and are considered appropriate.
Full length samples were taken and are
 
considered representative of the disseminated minerali
 
zation which has no orientation or structural control
other than grade variations due
 
to deposition variations and secondary
 
remobilization of the gold. This gold distribution
 
within the TSFs is adequately
understood from the geological modelling.
The Driefontein TSFs, Venterspost
 
TSFs and Libanon TSF are located on Malmani Subgroup
 
dolomites (Figure D) with the remainder located on non-
dolomitic argillaceous
 
and arenaceous
 
sediments of
 
the Timeball
 
Hill and
 
Hekpoort Formations.
 
An independent density
 
study by Geostrada
 
concluded
that the basement lithology does not significantly impact the density of the tailings material.
A bulk density of 1.42g/cm
3
 
is applied to the TSF assets. It
 
is based on substantial empirical evidence and considered
 
reliable. The use of a dry density
in the estimation
 
of an in situ
 
Mineral Resource is standard best
 
practice and the dry
 
density value has been
 
applied to the Mineral
 
Resource estimate.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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1.5.
 
Metallurgical Testing
Test work has been performed on Driefontein
 
3 TSF,
 
Driefontein 5 TSF,
 
Libanon TSF, Kloof 1 TSF and Venterspost
 
North TSF. Less test
 
work has been
performed on the Venterspost
 
South TSF.
 
The metallurgical data that was
 
originally available for the Driefontein
 
5 TSF was subsequently supported
by the results of full-scale
 
processing at DP2 during Phase
 
1. Based on the test
 
work, the QPs are comfortable that the
 
following processing recoveries
are achievable for the respective TSFs (Table B).
Table B: Summary of Process Recovery Potential
TSF Recovery
Process
(%)
Driefontein 5
49.8%
Driefontein 3
56.6%
Kloof 1
50.5%
Libanon
47.2%
Venterspost North
54.7%
Venterspost South
62.5%
Source:
 
Sound Mining,
 
2022; and FWGR, 2020
1.6.
 
Mineral Resource Estimation
The original
 
Mineral Resource
 
estimates of
 
2009 were
 
confirmed by
 
Sound Mining
 
in 2020.
 
Sound Mining
 
independently reviewed
 
the database,
geological models, estimation methodology and
 
classification criteria. Sound Mining concluded
 
that the estimations are based on
 
a suitable database
of reliable information and that no material issues were found which could affect the overall estimate.
The exploration
 
database is comprised
 
of analytical data
 
from reliable
 
laboratory assays
 
of samples obtained
 
from sampling and
 
drilling programs
based on industry best
 
practice. The drillhole grid spacing
 
is comparatively close for typical TSF
 
drilling programs and the entire
 
depth of each TSF was
sampled. The data density is
 
considered sufficient to assure continuity of mineralization and
 
structure and provides an adequate basis
 
for estimation.
The exploration database was imported into DataMineTM Studio 3 software and data
 
validation was undertaken to ensure the integrity and validity
of the imported
 
data. The samples
 
for Driefontein
 
3 TSF
 
and Driefontein 5
 
TSFs represent
 
3.0m composite samples
 
and not 1.5m
 
composites. The
samples from all
 
of the other
 
TSFs were
 
1.5m in length.
 
The end of
 
the drillhole sample, where
 
it contained footwall
 
material, was
 
separated into
tailings and footwall material and treated separately by the laboratory.
Ordinary Kriging was undertaken for
 
the gold grade estimation which allows
 
for testing of the accuracy
 
and efficiency of the estimation.
 
Due to the
construction of the TSFs
 
and potential gold
 
remobilization, a spatial
 
grade distribution was
 
anticipated and since
 
Kriging is based
 
on modelling the
spatial variances within an orebody, it was considered the most reliable and accurate methodology for the task.
The economic assessment provided in this TRS demonstrates positive margins and confirms reasonable prospects for eventual
 
economic extraction.
The applied Mineral
 
Resource classification is
 
a function of
 
the confidence of
 
the asset tenure
 
and the entire
 
process from drilling,
 
sampling, geological
understanding and geostatistical relationships. The latest Mineral Resources are all in the Measured category (Table C).
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Table C: Mineral Resource Estimate for FWGR as at 30 June 2022
TSF
Volume
('000m
3
)
Density
(t/m
3
)
Quantity
(Mt)
Grade
(g/t)
Content
(t)
Content
(koz)
Driefontein 5
5,685
1.42
8.07
0.48
3.85
124
Driefontein 3
35,540
1.42
50.47
0.47
23.71
762
Kloof 1
19,931
1.42
28.30
0.33
9.20
296
Libanon
52,351
1.42
74.34
0.27
20.23
650
Venterspost North
38,954
1.42
55.31
0.27
15.16
487
Venterspost South
9,068
1.42
12.88
0.33
4.24
136
Total Mineral Resource Estimate
161,529
1.42
229.37
0.33
76.39
2,456
Source:
 
Sound Mining,
 
2022
Notes:
 
Apparent computational errors
 
due to rounding
 
These Mineral Resources are stated
 
inclusive of Mineral Reserves
 
Mineral Resources, if stated
 
exclusive of Mineral Reserves,
 
would equate to zero
 
In situ Mineral Resource estimate
 
reported according to S-K 1300 requirements
 
No geological losses applied
1.7.
 
Mineral Reserve Estimates
A LoM plan and mining schedule was developed by FWGR as outlined in Item 13.2. The LoM plan was tested for economic viability in the DCF model
which indicated a positive cashflow through to the end of LoM.
The
 
Mineral
 
Reserves
 
were
 
prepared
 
in
 
accordance
 
with
 
the
 
requirements
 
of
 
S-K
 
1300
 
(Table
 
D).
 
No
 
mining
 
losses
 
or
 
dilution
 
are
 
applied
 
in
determining the Mineral Reserve
 
estimates because the TSFs are
 
re-mined and re-processed in
 
their entirety. All other modifying
 
factors are captured
in the mine design together with all of the associated technical aspects that inform the capital and operating cost estimates.
FWGR’s six TSF assets convert to a total Mineral Reserve of 229.37Mt with a gold content of 76.39t.
Table D: S-K 1300 Compliant Mineral Reserve Estimate as at 30 June 2022
TSF
Volume
('000m
3
)
Density
(t/m
3
)
Quantity
(Mt)
Grade
(g/t)
Content
(t)
Content
(koz)
Driefontein 5
5,685
1.42
8.07
0.48
3.85
124
Driefontein 3
35,540
1.42
50.47
0.47
23.71
762
Kloof 1
19,931
1.42
28.30
0.33
9.20
296
Libanon
52,351
1.42
74.34
0.27
20.23
650
Venterspost North
38,954
1.42
55.32
0.27
15.16
487
Total Proved Mineral Reserve
152,461
1.42
216.49
0.33
72.15
2,320
Venterspost South
9,068
1.42
12.88
0.33
4.24
136
Total Probable Mineral Reserve
9,068
1.42
12.88
0.33
4.24
136
Total Mineral Reserve Estimate
161,529
1.42
229.37
0.33
76.39
2,456
Source:
 
Sound Mining,
 
2022
Notes:
 
Apparent computational errors
 
due to rounding and are not considered
 
significant
 
Mineral Reserves are reported using
 
a dry density of 1.42t/m
3
 
and at the head grade on delivery to the plant
 
The Mineral Reserves constitute
 
the feed to the gold plants
 
The Mineral Reserves are stated
 
at a price of ZAR914,294.00/kg
 
A cut-off grade of 0.15g/t is applicable to the
 
FWGR LoM plan
 
Although stated separately,
 
the Mineral Resources are inclusive
 
of Mineral Reserves
 
Venterspost South
 
TSF is classified as a Probable Mineral Reserve
 
due to some uncertainty regarding
 
the processing recovery
 
Uranium has been excluded in the Mineral
 
Reserve estimate as it is not being recovered
 
by FWGR
 
Grade and quantity measurements are
 
reported in metric units (Mt) rounded
 
to two decimal places
 
The input studies are to a PFS level
 
of accuracy
 
The
 
Mineral
 
Reserve
 
estimates
 
contained
 
herein
 
may
 
be
 
subject
 
to
 
legal,
 
political,
 
environmental
 
or
 
other
 
risks
 
that
 
could
 
materially
 
affect
 
the
 
potential
development of such Mineral Reserves
1.8.
 
Mine Design and Mine Plan
FWGR exploits TSFs
 
through hydro-mining
 
using high-pressure jets
 
of water
 
to dislodge tailings
 
material or move
 
sediment for transportation
 
as a
slurry to processing plants. The hydro-mining removes the tailings material from the top of a TSF to the natural ground level in 15m layers (Figure F).
Figure F: Mining Methodology
exhibit961p2i0 exhibit961p19i1
 
 
 
 
exhibit961p19i0
 
 
 
 
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Source:
 
Sound Mining,
 
2022
A safe bench height is dependent
 
upon the material strength which is influenced by
 
the phreatic surface within a dump. The
 
TSFs have been dormant
for a number of years and so the phreatic surface is
 
expected to be well below the surface of the dumps. The
 
drilling program to define the Mineral
Resource did not encounter saturated zones or phreatic surfaces and so the risk of slope failure or liquefaction is low.
Horizontal benches of 100m to 200m, inclusive of the face angles (45° to 50°), are created to maintain safe working distances between simultaneous
operations at different bench elevations (Figure G).
Figure G: Mining Widths
Source:
 
Sound Mining,
 
2022
Hydro-mining and the re-deposition of
 
tailings is a specialized activity, and is outsourced
 
to competent and experienced service providers. The
 
hydro-
mining performance assumptions
 
used for the
 
LoM planning are
 
based on the
 
current reclamation operations
 
where the method
 
has been successfully
“tried and tested“.
The operating cost and capital
 
expenditure assumptions are supported by
 
actual operational figures rather
 
than being only based on computations
from
 
“zero
 
based”
 
cost
 
models
 
or
 
feasibility
 
studies.
 
Similarly,
 
the
 
equipment
 
requirements,
 
manning
 
complements
 
and
 
necessary
 
supporting
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p20i0
 
 
 
 
 
 
 
 
 
 
 
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Document No: PR/SMI/1203/22
20
0
1,000
2,000
3,000
4,000
5,000
6,000
0
2
4
6
8
10
12
14
16
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
Financial Year
Gold Content (kg)
Production (Mt)
Financial Year
Driefontein No 5 Dump
Driefontein No 3 Dump
Kloof 1
Libanon
Venterspost North
Venterspost South
 
Gold Content
infrastructure, in terms
 
of water and power
 
supply, are
 
well understood by
 
FWGR. There have
 
been no untested
 
technical assumptions made with
regards to the mining design criteria.
The cost and
 
maintenance of the
 
mining equipment, and
 
employees are paid
 
for by the
 
mining contractors.
 
The pipeline and
 
pumping design and
associated capital expenditure estimate has been undertaken by independent specialists familiar with the mining operations.
Specific mining schedules were developed for each TSF based on the grade distribution of the Mineral Resource block models.
 
These schedules were
integrated into a production plan that exhausts FWGR’s current Mineral Reserves (Graph A).
Graph A: LoM Production Forecast
Source:
 
Sound Mining,
 
2022
Given the nature of the
 
hydraulic mining operation, no selective
 
mining, other than very broad rejection
 
of sections of the TSFs,
 
is possible and the
mine scheduling has
 
shown that this
 
is unnecessary.
 
No geotechnical constraints
 
have been
 
applied and hydrological
 
aspects affecting
 
the surface
deposits are not
 
significant to
 
the operation. A
 
mining contractor
 
using its own
 
equipment (i.e., “mining
 
units”) is responsible
 
for the
 
reclamation
activities, and so no provision has been made in the initial capital estimate for mining equipment.
Sound Mining is satisfied that the LoM schedule is reasonable and appropriate for the operation.
1.9.
 
Process and Recovery Methods
Sound Mining is of
 
the opinion that there
 
is sufficient test work
 
available to support the
 
metallurgical performance anticipated
 
for the current
 
and
future processing facilities. The LoM plan relies on the currently operating DP2 processing plant (~600ktpm) and an expansion thereof to 1,200ktpm.
FWGRs Phase 1 entailed a modification and
 
refurbishment of the old DP2 plant to
 
accommodate a nameplate throughput of 600ktpm,
 
albeit that a
constraint currently exists
 
with the
 
prevailing deposition capacity
 
of 500ktpm for
 
new arisings
 
onto the Driefontein
 
4 TSF. While at
 
current depositional
rates, the plan
 
is to exhaust
 
the storage
 
capacity of this TSF
 
by the end
 
of 2025, however,
 
it may be
 
possible for FWGR
 
to exceed
 
this capacity for
some years thereafter by continuing to deposit new arisings but at a materially reduced rate.
A detailed
 
design to
 
expand
 
DP2 to
 
accommodate a
 
throughput of
 
1.2Mtpm
 
was
 
prepared by
 
external
 
specialists with
 
appropriate
 
capital
 
cost
estimates. There
 
is no
 
change to
 
the process
 
flow and
 
the QP
 
is satisfied
 
that the
 
metallurgical characterization
 
of the
 
TSFs has
 
been sufficiently
catered for in the design. These were reviewed by Sound Mining and are considered to be appropriate and in-line with industry standards.
1.10.
 
Infrastructure
Sound
 
Mining
 
has
 
inspected
 
the
 
existing
 
infrastructure
 
which
 
comprises
 
DP2,
 
the
 
Driefontein
 
4
 
TSF,
 
and
 
all
 
associated
 
pumping
 
and
 
piping
installations.
 
The
 
QP
 
is
 
of
 
the
 
opinion
 
that
 
this
 
infrastructure
 
has
 
been
 
correctly
 
planned,
 
properly
 
installed
 
to
 
date,
 
fully
 
functional
 
and
 
well
maintained.
exhibit961p2i0 exhibit961p21i0
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
21
Electricity is currently
 
supplied from
 
Eskom’s
 
132kV and 44kV
 
grid to various
 
Sibanye owned
 
gold mines in
 
the vicinity of
 
FWGR’s
 
operations. The
power requirement of FWGR
 
remains within the current
 
surplus capacity to the Driefontein,
 
Kloof and Cooke and
 
mining complexes. Power
 
supply
remains a material risk to all mining operations in South Africa including FWGRs operations.
A closed water system has been designed to avoid having to treat water or having to discharge into surface water
 
courses (Figure H).
Figure H: TSF Location, Make-up Water Shafts, Processing Plants and Pipeline Layouts
Source:
 
Sound Mining,
 
2022
Water use licenses
 
are available for the
 
pumping of water
 
from underground workings
 
at Kloof 10
 
shaft and Driefontein 10
 
shaft, and the
 
consumption
planned from these shafts will not exceed the pumping rates approved in the respective WULs. Water will also be reclaimed from the Leeudoorn
 
TSF
and RTSF in due course and
 
Sound Mining is satisfied that there is more
 
than enough water to meet the requirements
 
of the operation as currently
planned.
 
exhibit961p2i0 exhibit961p22i0
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
22
The hydro-mining,
 
reprocessing and re-deposition
 
of tailings material
 
requires a network
 
of pipes. Slurry
 
pipelines will be
 
needed from
 
the hydro-
mining sites at the TSFs to DP2 and tailings pipelines from DP2
 
to the respective deposition facilities. High pressure water pipelines are necessary to
supply the mining operations while separate low-pressure
 
water pipes are needed for
 
returning water to DP2
 
from water dams at the various
 
TSFs.
These have all been adequately designed and included in the LoM planning.
FWGR requires the RTSF to ensure adequate storage facilities for the long-term deposition
 
of all tailings arising from FWGR operations. It
 
will be built
on Transvaal
 
Supergroup lithology (Figure
 
D), to mitigate
 
any risk of
 
dolomite related sink
 
holes. The design and
 
cost estimate caters
 
for a storage
capacity of 800Mt
 
and a
 
potential disposal
 
rate of
 
up to
 
2.4Mtpm.
 
It will
 
cover an
 
area of
 
approximately 1,000ha
 
with a
 
final top
 
surface area
 
of
around 600ha at a maximum height of 100m. The selected site of approximately 1,500ha is shown in Figure I.
Figure I: RTSF Layout
Source:
 
Beric Robertson Tailings,
 
2020
A key design consideration has
 
been the management of
 
ground water through the
 
use of a scavenger
 
well system that will capture
 
and recycle future
leachable pollution plumes. In the context of risk, this is believed to be a viable solution to
 
a previously considered geomembrane barrier approach.
The permitting for
 
this site has
 
been approved
 
based on the
 
initial design with
 
the geomembrane
 
barrier and FWGR
 
are pursuing
 
approval of
 
the
more recent scavenger well design.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
23
Sound Mining is
 
of the opinion
 
that the selected
 
site is appropriate
 
for the intended
 
construction and operation
 
of the RTSF and
 
endorses the proposed
scavenger well solution for ground water as this can provide a sustainable solution to the RTSF’s future plume management requirements.
FWGR
 
have
 
received
 
in
 
principle
 
permission
 
from
 
Sibanye
 
Gold
 
to
 
co-deposit
 
tailings
 
on
 
the
 
Leeudoorn
 
TSF.
 
This
 
will
 
allow
 
FWGR
 
to
 
increase
production to 750ktpm while also mitigating
 
against the risk of an interruption
 
to the planned production in the
 
event that the approval
 
sought for
the RTSF is delayed. The depositional requirements for the new
 
arisings will now be shared between the Driefontein 4 TSF
 
and Leeudoorn TSF, until
such a time that the RTSF is approved, constructed and ready to receive these new arisings.
In
 
addition, FWGR
 
have
 
commissioned further
 
study
 
work
 
on the
 
RTSF
 
design to
 
investigate
 
the potential
 
for
 
the soil
 
conditions at
 
this
 
site
 
to
accommodate the compaction
 
of the associated
 
clay layer to act as
 
an alternative or additional
 
barrier system in support
 
of the scavenger well
 
design.
1.11.
 
Market Studies
Gold is a precious
 
metal, refined and
 
sold as bullion on
 
the international market.
 
It is traded globally
 
on financial markets almost
 
continuously and
traditionally used for jewelry, bartering or storing wealth. Aside from the gold holdings of central banks, current uses of gold include jewelry, private
investment, dentistry, medicine and technology (Table E).
Table E: Above Ground Gold Stocks in 2022
Description
Quantity
(t)
Contribution
(%)
Jewelry
94,464
46.0%
Private Investment
45,456
22.2%
Bank Holdings
34,592
16.9%
Other
30,726
15.0%
Source:
 
World Gold Council, 2022
DRDGOLD has a long-standing
 
off take
 
agreement with the
 
Rand Refinery who
 
refine the gold
 
produced by FWGR.
 
DRDGOLD uses an agent
 
to sell
FWGR’s gold to South Africa bullion banks and once sold, Rand Refinery will transfer the gold to the purchasers’ bullion bank depository.
1.12.
 
Environmental Permitting
 
and Liability
A
 
review
 
of
 
the
 
environmental
 
status
 
was
 
undertaken
 
by
 
an
 
independent
 
environmental
 
specialist.
 
The
 
authorizations
 
required
 
for
 
the
 
“listed
activities” under NEMA, NEM:WA, NEM:AQA and NWA were reviewed in detail. EIA, EMPrs and environmental authorizations exist for the Kloof and
Driefontein mining areas. Areas
 
requiring amendments have been cited.
 
Environmental permitting is underway
 
and at an appropriate
 
stage for the
planned expansions.
 
There is
 
enough time
 
for approval
 
of amendment
 
applications and
 
no fatal
 
flaw exist
 
from a
 
compliance perspective.
 
Some
heritage and culturally significant areas have been identified and these are accommodated in the construction plans.
The activities of FWGR already contribute to the socio-economic environment on the West Rand. The operation will further
 
enhance the situation by
reducing unemployment and investing capital for an extended LoM which will contribute to the national GDP. The operation also provides long-term
positive impacts in
 
terms of employment
 
creation, skills development,
 
local procurement of goods
 
and services, as
 
well as local
 
and regional economic
development. The
 
Social Impact Assessment
 
notes that informal
 
settlements in close
 
proximity to the
 
operation may pose
 
a risk in
 
terms of community
stability. The
 
concerns of local
 
farmers may
 
also need to
 
be addressed. Sound
 
Mining believes that
 
these concerns can
 
be managed,
 
and that the
positive impacts will benefit the surrounding communities.
The
 
closure
 
liability
 
is
 
assessed
 
annually
 
to
 
maintain
 
environmental
 
compliance.
 
These
 
constitute
 
the
 
quantum
 
of
 
the
 
financial
 
obligation
 
and
guarantees
 
required by
 
the Department
 
of Mineral
 
Resources
 
and
 
Energy
 
(DMRE). They
 
have
 
been determined
 
on both
 
an
 
“unscheduled” and
“scheduled” basis. The unscheduled estimate is based on the costs of rehabilitating the TSFs in their present state without any mining activity having
taken place. The disclosure to the DMRE and the quantum of financial guarantees required is based on the unscheduled estimate.
The closure liability bank guarantees under Regulation 7 of the NEMA Financial Provision Regulations (2015) must ensure that the financial provision
is, at any
 
given time, equal
 
to the
 
sum of the
 
actual costs
 
of implementing the
 
plans for
 
a period of
 
at least
 
ten years
 
forthwith (this
 
includes the
annual rehabilitation, final, decommissioning and
 
closure plans). This figure is required
 
to be updated annually and adjusted. In the
 
case of the FWGR
the annual updates will
 
show reduced amounts
 
as the tailing’s
 
facilities decrease to
 
only footprint rehabilitation.
 
The scheduled estimate
 
assumes
that mining takes place and that the final rehabilitation will be confined to rehabilitation of the TSF footprints and the RTSF.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
24
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
20232024202520262027202820292030203120322033203420352036203720382039204020412042
ZAR M
Guardrisk has issued financial guarantees in
 
favor of the DMRE
 
of ZAR169.0 M. An amount
 
of ZAR444.1 M is also
 
invested in Guardrisk Cell
 
Captive
under a ring-fenced environmental rehabilitation
 
policy. The financial guarantees
 
and funds held with the Guardrisk Cell Captive
 
(30 June 2022) are
sufficient to cover the 2022 estimated unscheduled liability of ZAR309.69 M as estimated for the operation.
1.13.
 
Capital Expenditure and Operating
 
Costs
The capital and
 
operating cost estimates
 
used to examine
 
the viability of the
 
estimated Mineral Reserve
 
were informed by
 
current operations and
recent feasibility
 
study work
 
(i.e., 2020
 
and 2021)
 
on processing,
 
the RTSF
 
and associated
 
pumping and
 
piping infrastructure.
 
The operating
 
cost
estimates are supported by actual on mine invoices
 
received and paid, while the capital estimates have
 
been determined using unit rates (obtained
from quotations or bench marked against recent installations) and design quantities.
Although the previous feasibility study work was
 
in most instances to a definitive level of accuracy, the estimates are no longer current
 
and therefore
deemed to be at a
 
preliminary feasibility level of accuracy
 
(i.e., +/-25%). Where necessary estimates have
 
been appropriately inflated to
 
June 2022
real terms and Sound Mining has included a 15% contingency on all costs to reflect the confidence expected for a PFS level of study.
An annual Stay-in-Business (SiB) provision of ZAR8.7 M is considered until 2030 after which it is increased
 
to ZAR16.0 M for the rest of the LoM. This
provision covers maintenance and
 
the replacement of equipment
 
across the operation. The
 
Guardrisk Cell Captive exceeds
 
the current environmental
liability and
 
so no
 
additional provision
 
has been
 
made in
 
the capital
 
estimate.
 
Graph B
 
presents the
 
annual capital
 
expenditure forecast
 
for the
operation.
Graph B: Capital Expenditure Forecast
Source:
 
Sound Mining, 2022
Early capital will be required to
 
access the Leeudoorn TSF,
 
whereafter, DP2 will be
 
expanded (i.e., FY2025 and FY2026). The RTSF is scheduled to
 
be
constructed over four years (i.e., FY2027 to FY2030) with the
 
remaining capital expenditure largely earmarked for piping and pumping
 
infrastructure.
The DP2 operating cost estimate (Table F) are based on the actual costs being incurred by the current operation. Economies of scale were taken
 
into
consideration by applying a factor to the escalated budget as DP2 increases its throughput.
Table F: Average DP2 Operating Cost over LoM
Description
Unit Costs
(ZAR/t)
Salaries and Wages
10.40
Contractors
8.89
Reagents
20.63
Other Engineering Stores
6.20
Electricity
15.56
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
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(Proprietary) Limited
Document No: PR/SMI/1203/22
25
Water
0.46
Machine Hire
1.51
Other
8.15
Other Corporate Costs
3.23
Contingency (15%)
10.20
DP2 Operating Costs
85.23
Source:
 
Sound Mining, 2022; and FWGR, 2020
A contingency of 15% was included for the assessment of economic viability.
1.14.
 
Economic Assessment
A Discounted Cashflow
 
(DCF) modelling approach
 
was adopted to
 
assess the economic
 
viability of the Mineral
 
Reserves as stated.
 
Considering the
stage
 
of development
 
of the
 
operation
 
and the
 
uncertainties of
 
future global
 
economics, as
 
well
 
as exchange
 
rate,
 
interest
 
rate
 
and gold
 
price
uncertainties, a real
 
DCF model is
 
deemed more appropriate
 
than a nominal
 
DCF model. The
 
DCF model was
 
generated in June 2022
 
real South African
Rand (ZAR) terms and
 
is based on the revenue
 
forecast, associated capital and operating cost forecasts, and
 
on appropriate and reasonable economic
assumptions (Table G).
Table G: Inputs to the DCF Model
Description
Quantum
Unit
Key Dates
Money Terms
30 June 2022
Phase Description
Phase 2 Includes:
DP2 Expansion
Mtpm
1.2
LoM
Phase 2
Years
20
Contingencies
Contingency
%
15%
Gold Price
ZAR/USD
ZAR/USD
15.60
USD/oz Gold
USD/oz
1,823
ZAR/kg Gold
ZAR/kg
914,294
Source:
 
Sound Mining, 2022; and FWGR, 2022
These assumptions are based on information received from FWGR and from the various consultants who contributed to the Mineral Resources, LoM
planning and technical
 
study work that
 
underpin this Mineral
 
Reserve estimate.
 
The economic assessment
 
assumes a 100%
 
equity-based business
and does not consider the effect
 
of working capital changes. The
 
QP is satisfied with the quality
 
of this information, including the revenue
 
and cost
forecasts, and considers the inputs to the DCF model to constitute an overall PFS level of accuracy (i.e., +/-25%).
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
26
0
500
1,000
1,500
2,000
2,500
3,000
20232024202520262027202820292030203120322033203420352036203720382039204020412042
Gold Sold (kg)
Financial Year
The revenue forecast is a function of gold sales and the pricing assumptions used for the economic analysis. The commissioning of an expanded DP2
enables an increase in gold sales (Graph C).
The revenue forecast is a function of gold sales and the pricing assumptions used for the economic assessment. The following processing recoveries,
which are supported by test
 
work and current plant performance data, were
 
applied to the material from
 
the respective TSFs to compute the amount
of gold sold:
●
49.8% for Driefontein 5 TSF material;
●
56.6% for Driefontein 3 TSF material;
●
50.5% for Kloof 1 TSF material;
●
47.2% Libanon TSF material;
●
62.5% for Venterspost South TSF material; and
●
54.7% for Venterspost North TSF material.
The expansion of DP2 facilitates an increase in gold sales over time (Graph C).
Graph C: Gold Sales Forecast
Source:
 
Sound Mining, 2022
Processing throughput can continue after 2042 when the available TSFs
 
are likely to be incorporated into
 
the operation. At this stage, the economic
assessment has
 
only considered
 
the depletion
 
of the
 
TSFs
 
that comprise
 
the current
 
Mineral Reserves.
 
The gold
 
sold from
 
these TSFs
 
equate to
approximately 1.3Moz.
The real revenue forecast relies
 
on a gold price
 
of ZAR914,294 (i.e., USD1,823/oz
 
at ZAR15.60/USD). Taxes would be determined
 
using the gold mining
tax formula with all unredeemed capital taken into account. The assets are part
 
of the ongoing business of FWGR, which
 
is not subject to the Mineral
and Petroleum
 
Resources Royalty
 
Act, 2008
 
(Act No. 28
 
of 2008) and
 
so the royalty
 
formula for unrefined
 
metals was
 
not included in the
 
revenue
determination.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p27i0
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
27
-1,000
-500
0
500
1,000
1,500
2,000
2,500
20232024202520262027202820292030203120322033203420352036203720382039204020412042
NPV
10
(ZAR M)
Financial Year
Post Tax Discounted Cashflow
Cumulative Cashflow
Graph D presents the post-tax cashflow for an operation that excludes the benefits that would eventually be derived from the available TSFs.
Graph D: Post-tax Discounted Cashflows
Source:
 
Sound Mining, 2022
The cumulative post-tax cashflows over
 
the LoM remain positive.
 
When assuming a discount
 
rate of 10% for the
 
unleveraged operation, a Net Present
Value (NPV) of ZAR2.32 Billion is computed.
The achievability of the LoM plans, budgets and forecasts cannot be assured as they are based on
 
economic assumptions, many of which are beyond
the control of the company. Future cashflows and profits derived from such forecasts are inherently uncertain and actual results may be significantly
more or less favorable. The technical
 
risks as identified by Sound Mining are provided in
 
Item 12.1. These and other environmental risks
 
can impact
the anticipated revenue and cost forecasts and accordingly have been assessed against upside or downside changes of between -20% and +20%. The
consequential potential impacts are presented in Table H and are illustrated graphically in Graph E.
Table H: Sensitivity of Post-tax NPV
Variance
NPV
10
(ZAR Billion)
80%
90%
100%
110%
120%
Revenue (ZAR Billion)
0.12
1.23
2.32
3.36
4.41
Capital Expenditure (ZAR Billion)
3.11
2.71
2.32
1.92
1.53
Operating Costs (ZAR Billion)
3.81
3.06
2.32
1.57
0.83
Source:
 
Sound Mining, 2022
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p28i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p28i1
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
28
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
80%
90%
100%
110%
120%
NPV
10
(ZAR M)
Net Revenue
Capital Expenditure
Operating Costs
-1,000
-500
0
500
1,000
1,500
2,000
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
NPV
10
(ZAR M)
Financial Year
Post Tax Discounted Cashflow
Cumulative Cashflow
Graph E shows that changes to the revenue forecast will impact margins the most.
Graph E: Sensitivity to Expected Revenue and Costs
Source:
 
Sound Mining, 2022
Table I shows the materiality of changes in the gold price.
Table I: Sensitivity of Gold Price
Gold Price
ZAR/kg
700,000
800,000
900,000
1,000,000
1,100,000
NPV (ZAR Billion)
(0.27)
0.96
2.15
3.30
4.45
Source:
 
Sound Mining, 2022
The operation is economically viable above
 
a gold price of ZAR721,264/kg.
 
The impact of changes to the
 
operating cost forecast is materially less, and
any variance in capital expenditure being relatively insensitive.
As a final
 
sensitivity, the
 
QP has tested
 
the impact of
 
FWGR having
 
to revert
 
to the use
 
of a synthetic
 
liner for
 
the RTSF
 
as opposed to
 
the design
currently included in the LoM plan. The impact of this expenditure on the discounted post-tax cashflows is shown in Graph F.
Graph F: Post-tax Discounted Cashflows (including liner)
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
29
Source:
 
Sound Mining, 2022
The NPV
10
 
still returns a positive number of ZAR1.58 Billion, albeit the overall margins are reduced.
The QP is satisfied that the Mineral Reserves as
 
stated are all economically viable. Indeed, the economic assessment
 
of viability includes substantial
additional capital for a growing business while not capturing the potential benefits of the envisaged long term revenue potential.
1.15.
 
Concluding Comments
Despite the usual existence
 
of environmental, political,
 
social and infrastructural risks
 
the QP’s are
 
satisfied that the FWGR
 
operation is a relatively
low risk business in the context of the broader South African mining industry.
FWGR’s legal tenure is underpinned by
 
the amended EMPs and
 
access and usage rights
 
to exploit the moveable
 
assets. The assets held
 
by FWGR were
acquired from Sibanye Gold Limited,
 
a subsidiary of
 
Sibanye-Stillwater Limited, in a transaction
 
in which common law
 
ownership was established over
the various
 
TSFs containing
 
the Mineral
 
Resources and
 
Mineral Reserves.
 
A Use
 
and Access
 
Agreement with
 
Sibanye Gold
 
articulates the
 
various
rights, permits and
 
licenses held by
 
Sibanye Gold
 
in terms of
 
which FWGR
 
operates, pending
 
the transfer
 
to FWGR
 
of those that
 
are transferable.
FWGR conducts its activities inter
 
alia in accordance with
 
Environmental Approvals
 
(EAs) and the provisions
 
of the Mine Health and
 
Safety Act and
regulations.
Most of the land on which the RTSF
 
is to be constructed has been purchased by
 
FWGR with a final outstanding property secured through
 
an option
agreement.
The drilling, sampling, analytical processes and governance of the exploration programs are appropriate and in-line with industry best practice. They
are considered to be
 
of high confidence. The
 
density used to determine quantities
 
from volumes has been
 
determined from both in
 
situ measured
values and
 
empirical data
 
and is
 
considered reliable.
 
The QPs
 
conclude that
 
the estimations
 
are based
 
on a
 
suitable database
 
of code
 
compliant
information.
TSFs constructed from the
 
tailings of Witwatersrand gold
 
mining operations have been successfully
 
and economically exploited for several
 
decades
and the geotechnical and geometallurgical characteristics are well understood from experience and from test
 
work on the FWGR assets themselves.
Notwithstanding the risks
 
identified herein, which
 
can be managed,
 
no material factors
 
of a geotechnical
 
or geometallurgical nature,
 
for example,
have been identified that would have a significant effect on the prospects for eventual economic extraction.
The
 
DP2
 
plant
 
has
 
performed
 
in-line
 
with
 
expectations
 
and
 
the
 
design
 
for
 
its
 
expansion
 
to
 
1.2Mtpm
 
is
 
based
 
on
 
representative
 
and
 
adequate
metallurgical test
 
work. The
 
mass balance
 
for the
 
plant is
 
appropriate. Scrutiny
 
of the
 
LoM plan
 
reveals that
 
recoveries currently
 
being achieved
coincide with expectations from metallurgical test
 
work and that the quantities and grades
 
reported are consistent with forecasts
 
from the Mineral
Resource estimation.
New
 
arisings
 
will
 
eventually
 
be
 
stored
 
in
 
the
 
RTSF
 
which
 
will
 
have
 
excess
 
capacity
 
from
 
both
 
a
 
depositional
 
rate
 
(2.4Mtpm)
 
and
 
final
 
capacity
perspective (800Mt). All the necessary infrastructure requirements have been reviewed and
 
are considered appropriate. Sound Mining has reviewed
the design for the RTSF prepared by FWGR’s specialists and has concluded that the detailed design report provides the framework and guidelines for
the future safe development of the RTSF.
The estimated capital expenditure
 
and operational costs are
 
aligned with actual
 
operational data from current operations
 
and considered appropriate
and in-line with industry standards.
The operation is
 
robust, the Mineral
 
Reserves are economically
 
viable, and the QP
 
considers the LoM
 
plan to be
 
sufficient for the
 
Mineral Reserve
estimate. The QPs
 
note the necessity
 
for FWGR to
 
acquire the necessary regulatory
 
approvals for
 
the RTSF timeously
 
to achieve the
 
production as
forecast.
 
exhibit961p2i0 exhibit961p30i0
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
30
2.
 
INTRODUCTION
Item 2 - (i); (ii); (iii); (iv) and (v)
DRDGOLD Limited (DRDGOLD)
 
is a tailings retreatment
 
company located near Johannesburg,
 
South Africa. It
 
has a primary
 
listing on the Johannesburg
Stock Exchange (JSE) and a secondary listing on the New York Stock Exchange
 
(NYSE). The DRDGOLD operations are comprised of two wholly owned
entities covering their East Rand (east of Johannesburg) and far West
 
Rand (far west of Johannesburg) businesses. The East Rand operations are run
by Ergo Mining (Proprietary) Limited
 
(Ergo) and the West rand operations by Far West Gold Recoveries (Proprietary) Limited
 
(FWGR). FWGR currently
own six Tailings
 
Storage Facilities (TSFs)
 
with additional TSFs, although not owned by
 
FWGR, potentially available in
 
the area for future
 
reclamation
(Available TSFs).
This Technical Report
 
Summary (TRS) was prepared for
 
DRDGOLD as the registrant.
 
It has been compiled to
 
align with the requirements of
 
Subpart
1300 of Regulation S-K under the
 
U.S. Securities Exchange Act of 1934
 
(Regulation S-K) and Item
 
601(b)(96) of Regulation S-K (Item 601(b)(96)) (S-K
1300). It is
 
a first submission
 
to the Securities
 
Exchange Commission (SEC)
 
and presents
 
DRDGOLD’s Mineral Resources and
 
Mineral Reserves of
 
FWGR.
FWGR completed various studies to examine the techno economic merits of a phased approach to expanding the current operations:
●
Phase 1 is the current operations which
 
involved upgrading the Driefontein
 
Processing Plant 2 (DP2) to process tailings
 
from the closest TSF at
 
a
planned throughput of around 500ktpm. This Phase was
 
successfully commissioned and the operation reached steady state
 
production in 2019;
and
●
Phase 2 involves building additional processing capacity through the expansion of DP2 rather
 
than the construction of a Central Processing Plant
(CPP) which will
 
remain part of FWGR’s strategic options.
 
The DP2 expansion
 
will facilitate an eventual DP2
 
throughput of 1.2Mtpm.
 
Only 750ktpm
of this capacity
 
will be utilized
 
from January 2026
 
to December 2029
 
because of the
 
prevailing depositional constraints.
 
The new arisings
 
(i.e.,
retreated tailings) will initially be
 
redeposited onto the Driefontein 4
 
TSF (at 250ktpm) and
 
the Leeudoorn TSF (at
 
500ktpm) between January
 
2026
and December 2029, whereafter a
 
newly constructed Regional Tailings
 
Storage Facility (RTSF)
 
will be commissioned in 2030.
 
The RTSF will have
sufficient storage
 
capacity to also
 
accommodate new
 
arisings at
 
a rate
 
of 1.2Mtpm from
 
the mining of
 
available TSFs
 
in the area
 
well into
 
the
future. Examples of these include the Driefontein 1 TSF,
 
Driefontein 2 TSF and Kloof 2 TSF,
 
which, once decommissioned are to be transferred to
FWGR from Sibanye Gold Limited (Sibanye Gold).
2.1.
 
Corporate Structure and Compliance
Figure 1 presents FWGR’s corporate structure.
Figure 1: DRDGOLD Corporate Structure
Source:
 
Sound Mining,
 
2022
Sibanye Gold
 
owns a
 
50.1% shareholding
 
of DRDGOLD.
 
DRDGOLD’s non-public
 
ownership which
 
includes shareholding by
 
subsidiary,
 
Ergo Mining
Operations (Proprietary) Limited, of 0.8% and 0.1% shareholding by directors. Such shareholding is classified as non-public.
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
31
2.2.
 
Purpose and Terms
 
of Reference (ToR)
FWGR commissioned Sound Mining
 
International SA (Proprietary) Limited (Sound Mining)
 
to compile a SEC S-K 1300
 
compliant TRS that describes the
Mineral Resource and Mineral Reserve estimates as at
 
30 June 2022. The document date
 
is 28 October 2022 and there
 
are no material chances in the
period between these dates.
 
The Qualified Person (QP)
 
has relied on information
 
provided by FWGR
 
for this purpose with respect
 
to legal matters
 
(Item 3), the gold
 
price (Item
16.1), environmental or social and labor planning aspects (Item 17) and economic assumptions (Item 19).
Sound Mining
 
is an
 
independent advisory
 
company.
 
The ToR
 
required an
 
independent technical
 
review of
 
FWGR in
 
order to
 
identify factors
 
of a
technical and strategic nature
 
that would influence the future
 
viability of the Mineral Reserves.
 
The review accords with
 
the principles of open and
transparent disclosure that are embodied in internationally accepted
 
Codes for Corporate Governance. It has been based
 
upon technical information
supplied by FWGR and its appointed consultants. The contractual agreement with FWGR, for the preparation of the TRS, was with Sound Mining and
not with the QP as an individual. The QPs provide independent opinions and conclusions throughout this TRS.
The estimation of Mineral Resources and Mineral Reserves is inherently subject to some level of uncertainty and inaccuracy, because they are based
on analytical results of samples
 
that commonly represent only a small portion
 
of a mineral deposit. The uncertainty of the
 
estimates, where material,
are explained in this TRS and are reflected in the choice of Mineral Resource and Mineral Reserve categories.
2.3.
 
Qualified Persons Declaration
 
and Qualifications
The signatories to this TRS are qualified to
 
express their professional opinions on the technical aspects and
 
value of the mineral assets described. The
technical and economic information provided
 
are correct to the best of the
 
QPs’ knowledge, having followed best endeavors. The QPs responsible
 
for
this TRS and the Mineral Resource and Mineral Reserves as stated are:
●
Mr V Duke
 
is the designated
 
QP responsible for
 
the compilation and
 
reporting of FWGR’s Mineral
 
Reserves. He is
 
a partner
 
of Sound Mining
 
located
at 2A Fifth Avenue, Rivonia,
 
South Africa. He holds a B.Sc.
 
Mining Engineering (Hons.), is registered with
 
the Engineering Council of South Africa
(ECSA) and
 
is a
 
Fellow of
 
the Southern
 
African Institute
 
of Mining
 
and Metallurgy
 
(FSAIMM) (Membership
 
No.: 37179).
 
He has
 
over 35
 
years'
experience in the
 
minerals industry,
 
specializing in engineering
 
studies, due diligence
 
audits and valuations.
 
Mr Duke
 
has sufficient experience
that is relevant to the
 
style of mineralization and type of
 
deposit under consideration. The QP is recognized
 
by ECSA located at Lake
 
Office Park,
1st Floor, Waterview Corner Building, 2 Ernest Oppenheimer Avenue, Bruma, Johannesburg, South Africa;
●
Mrs D van
 
Buren is the designated
 
QP responsible for
 
the compilation and reporting
 
of FWGR’s
 
Mineral Resources. Mrs
 
van Buren who holds
 
a
B.Sc. (Hons.) in geology and is
 
registered with the South African
 
Council for Natural Scientific
 
Professions (Pr.
 
Sci. Nat. No.: 440107/14), and
 
the
Geological Society of South Africa (GSSA) located
 
on the corner of Carlow Road and Rustenburg Road, Auckland
 
Park, Johannesburg, South Africa.
She is a principal geologist with over twelve years' experience in mining, geology and consulting; and
●
Mr K Raine is the designated QP responsible for the compilation reporting of the environmental and permitting requirements of FWGR. Mr Raine
holds a B.Sc. (Hons.), B.Sc. (Zoology) and is registered with the South African Council for Natural
 
Scientific Professions (Pr.
 
Sci. Nat. No.: 114290).
He is
 
a consultant
 
with more
 
than ten
 
years’
 
experience in
 
mining projects,
 
environmental
 
legal
 
compliance, sustainability,
 
construction and
wildlife preservation.
 
The QP
 
is recognized
 
by the
 
South African
 
Council for
 
Natural Scientific
 
Professions (SACNASP)
 
located at
 
Management
Enterprise Building,
 
Mark Shuttleworth Street, Innovation Hub, Pretoria, Gauteng, South Africa.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
32
The QPs were assisted by the following specialists:
●
Mr M Nasiri - Mining Engineer for the mining and production scheduling;
●
Mr R Spargo - Metallurgist for the DP2 and RTSF;
●
Mr N Weeks - Geologist for the background and modelling of the Mineral Resource estimate;
●
Mr M Turnbull - Financial Modeler for the discounted cashflow (DCF) modelling.
The QPs also relied on reports from:
●
DRA SA (Proprietary) Limited;
●
Beric Robinson Tailings (Proprietary) Limited (Beric Robinson Tailings); and
●
Digby Wells Environmental (South Africa) (Proprietary) Limited (Digby Wells).
Detailed references and sources of information and data contained in this TRS is presented in Item 24.
The Sound Mining QPs and other specialists visited FWGR in 2019, 2020 and 2022 and examined the operations
 
as shown in Table 1. During the site
visit, the infrastructure, TSFs and the proposed RTSF and DP2 sites were inspected.
Table 1: Personal Inspection
Professional
Site Visit
V Duke
Visited in 2019, 2020 and 2022 as a QP
D van Buren
Visited in 2019 and 2020 as a QP
K Raine
Visited in 2020 as a QP
M Nasiri
No site visit
R Spargo
Visited DP2 in 2020
N Weeks
Visited in 2020 and 2022
M Turnbull
Visited in 2020
Source:
 
Sound Mining, 2022
2.4.
 
Units, Currencies and Survey Coordinate
 
System
The economic assessment in this TRS have all been carried out in South African Rands (ZAR). All other units
 
used in this TRS are defined in the text or
in the Glossary (Item 24). All references to tonnage are in metric tonnes; gold ounces (oz Au) are troy ounces (oz) and the conversion
 
factor used for
conversion to troy ounces is
 
31.10348. Unless explicitly
 
stated, all units presented in
 
this TRS are in the
 
Système Internationale (SI) - i.e.,
 
metric tonnes
(t), kilometers (km), metres (m),
 
and centimeters (cm). Throughout the technical studies relating
 
to the FWGR numerous acronyms
 
have been used
but for reporting purposes, the use of acronyms has been kept to a minimum, with the convention being definition of the acronym in the first usage.
However, where required throughout the document the full term may be used for clarity and ease of reading.
The coordinate system employed by the
 
surface surveys at the operation is
 
based on the Gauss
 
Conform Projection (UTM), Hartebeeshoek
 
94 Datum,
Ellipsoid WGS84,
 
Central Meridian
 
WG27. Some
 
regional scale
 
maps in
 
this Technical
 
Summary may
 
be referenced
 
with Latitude
 
and Longitude
coordinates for ease of reading.
2.5.
 
Political and Economic Climate
South Africa gained independence from Britain
 
on 31 May 1961, and
 
was declared a republic. From 1948
 
until 1990, the South African political and
legal systems were based upon the concept of apartheid. South Africa
 
became a constitutional democracy in 1994, and the
 
first democratic elections
brought an end
 
to apartheid
 
and ushered in
 
majority rule under
 
the African National
 
Congress (ANC) political
 
party, with a number
 
of different political
parties participating in the
 
elections. The country continues
 
to hold democratic, peaceful,
 
free and fair
 
elections, the last of
 
which was won by
 
the
ANC in 2019, who appointed Mr Cyril Ramaphosa as President.
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
33
2.6.
 
Minerals Industry
South Africa has
 
a mature
 
minerals industry
 
developed from
 
gold and
 
diamond discoveries
 
in the
 
late 1800s.
 
It is
 
the world's
 
largest producer
 
of
platinum and chrome and ranks highly in the
 
production of diamonds, coal, iron ore, vanadium and base
 
metals. GDP generated by the South African
Mining industry has averaged ZAR223 Billion per quarter between 1993 and 2022, reaching an all-time
 
high of ZAR240 Billion in the fourth quarter of
2006 and a record low of ZAR147 Billion in the second quarter of 2020.
One of the greatest challenges associated with
 
the minerals and mining industry in
 
South Africa is the political instability, concerns over the reliability
of legal tenure, rising costs
 
of labor,
 
electricity, diesel and steel,
 
among other costs. Labor and community unrest
 
caused by low wages, particularly
among
 
contract
 
workers
 
and
 
under-resourced
 
communities has
 
proved
 
problematic
 
in recent
 
years
 
and
 
exacerbated
 
municipalities’ inability
 
to
provide adequate infrastructure to communities.
Other important concerns
 
for the mining
 
industry are the
 
effect of diseases (i.e.,
 
HIV/Aids and Covid-19) on
 
the workforce and
 
the recent downgrading
of the
 
country’s credit
 
risk rating
 
to junk
 
status. Although
 
the South
 
African political
 
system
 
has credibility,
 
the political
 
risk index,
 
indicates that
factors such as the
 
country’s high degree of
 
unionization, the threat of
 
industrial action and
 
the disruption to
 
economic activity are
 
a constant concern
to investors.
 
exhibit961p2i0 exhibit961p8i0
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
34
3.
 
PROPERTY DESCRIPTION
Item 3 (i); (ii); (iii); (iv), (v) and (vi)
3.1.
 
Property Location
The FWGR operations are
 
located in the
 
Gauteng province of South
 
Africa, approximately 70km
 
South West of
 
the city of Johannesburg
 
(Figure 2).
The operations can
 
be accessed from
 
Johannesburg by traveling
 
for approximately
 
one hour along
 
tarred roads.
 
The operations which
 
are located
between the latitudes and longitudes 26°32'34.90"S and 26° 5'32.68"S, and 27°24'6.49"E and 27°49'4.84"E,
 
and cover an area of 29,577.62ha.
Figure 2: Location of the FWGR Operations
Source:
 
Sound Mining, 2022
FWGR is
 
located in
 
an area
 
with a
 
long history
 
of gold
 
mining and
 
as a
 
consequence the region
 
is disseminated
 
with TSFs
 
and supporting
 
mining
infrastructure. The operation’s infrastructure and current TSFs lie across two mining rights which stretch from Westonaria
 
to Carletonville (Figure 3).
 
exhibit961p2i0 exhibit961p35i0
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
35
Figure 3: FWGR Operations
Source:
 
Sound Mining, 2022
3.2.
 
Legal Tenure
 
and Permitting
Sound Mining’s environmental
 
and permitting specialist has
 
undertaken a review
 
of the legal
 
aspects of the assets.
 
This review
 
has been based on
information provided by DRDGOLD and FWGR. DRDGOLD
 
is a subsidiary of Sibanye Gold and FWGR operates within
 
the extensive framework of legal
tenure held by Sibanye Gold.
3.3.
 
Material Agreements, Access and Surface
 
Rights
3.3.1.
 
Exchange Agreement
Sibanye Gold and
 
DRDGOLD signed an Exchange
 
Agreement on 22
 
November 2017. The
 
agreement contains terms
 
in connection with
FWGR which was
 
established specifically to
 
house the intended
 
TSF reclamation
 
activities. The agreement
 
provided that Sibanye
 
Gold
initially obtained a 38,05% stake in DRDGOLD in exchange
 
for the FWGR assets, with the option to increase it
 
to 50,1% by way of a cash
subscription.
 
Sibanye Gold currently holds a 50.1% equity in DRDGOLD meaning that Sibanye Gold is now the ultimate holding company
of FWGR.
 
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
36
3.3.2.
 
Use and Access Agreement
A “Use and Access Agreement” signed in November 2017, grants FWGR the rights to following:
●
access to Kloof 10 shaft located in
 
the Kloof Mining Right area and Driefontein
 
10 shaft located in the Driefontein
 
Mining Right area
for the purpose of pumping and supplying the required quantities of water to FWGR;
●
agreements for the installation, supply and distribution of power;
●
existing and proposed pipeline routes;
●
servitudes, wayleaves and surface right permits; and
●
access to the Driefontein 1 Gold Plant.
The agreement stipulates that it will endure until the end of FWGR’s business and that FWGR is to give Sibanye
 
Gold at least 18 months’
prior written notice of the anticipated end of life of the business.
The surface rights agreements over
 
both the Driefontein and Kloof
 
Mining Rights (held by
 
Sibanye Gold) for the TSFs and
 
processing plant
sites are
 
adequate for
 
the current
 
Sibanye Gold
 
operations and
 
would therefore
 
also be
 
applicable to
 
FWGR's operations.
 
FWGR will
secure servitudes for all of its infrastructure located on Sibanye Gold land.
FWGR owns the majority of the land on which the RTSF will be constructed. FWGR has an option agreement with the landowner for the
purchase of
 
the remaining
 
land still
 
required for
 
the RTSF.
 
FWGR is
 
in the
 
process of
 
complying with
 
the requirements
 
of the
 
Spatial
Planning and Land Use
 
Management Act, 2016 (Act
 
No. 13 of 2016)
 
(SPLUMA) and is having
 
the land rezoned from agricultural
 
use to that
of mining.
3.3.3.
 
Leeudoorn Agreement
The QP has had sight of a document describing DRDGOLD’s requirement with regard to the use of the Leeudoorn TSF for a period to the
point that the RTSF is commissioned (i.e.,
 
2030). This document also initiated negotiations
 
between DRDGOLD and Sibanye Gold for such
access to the Leeudoorn TSF which at this stage, will remain the property of Sibanye Gold. Accordingly,
 
the associated liabilities will also
remain with Sibanye Gold.
3.4.
 
Permitting
The permitting associated with the different Mining Right (MR) areas (Figure 4) are commented on below.
The minerals in tailings
 
fall outside the
 
definition of ‘mineral’ in
 
the Mineral and
 
Petroleum Resources Development
 
Act’ (MPRDA), where a
 
MR as
defined in this act is
 
technically not a requirement,
 
and the operations of
 
FWGR are conducted in terms
 
of Environmental Authorizations
 
(“EA”). In
2016, Sibanye
 
Gold applied
 
and received
 
an EA
 
which incorporated
 
an Environmental
 
Impact Assessment
 
(EIA) and
 
Environmental Management
Programs report (EMPr)
 
for their West Rand
 
Tailings Retreatment Project (WRTRP). FWGR
 
applied to the
 
Department of Mineral
 
Resources and Energy
(DMRE) for
 
Sibanye Gold’s
 
EAs to
 
be transferred
 
to FWGR.
 
As part
 
of its
 
expansion plans,
 
FWGR will
 
be required
 
to make
 
similar applications
 
for
appropriate EAs.
 
exhibit961p2i0 exhibit961p37i0
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
37
Figure 4: Sibanye Gold Mining Rights
Source:
 
Sound Mining, 2022
3.4.1.
 
Driefontein Operational Area
The
 
DMRE
 
granted
 
Sibanye
 
Gold
 
an
 
EA
 
under
 
the
 
2014
 
EIA
 
Regulations
 
(GNR
 
983
 
and
 
GNR
 
984)
 
(the
 
2014
 
Regulations)
 
on
11 May 2018. The approval is recorded in GP 30/5/1/2/3/2/1 (51) EM.
Driefontein MR:
 
a new order
 
MR (GP 30/5/1/2/2/51MR)
 
was issued in
 
2007 and
 
is valid until
 
January 2037 and
 
covers 9,490.62ha. Sibanye
Gold is entitled to mine all declared material situated within this MR and has all the necessary statutory requirements in place.
3.4.2.
 
Kloof Operational Area
In 2016, Sibanye Gold also applied for
 
an Integrated Environmental
 
Authorization (IEA) which includes a waste
 
management license for
Kloof
 
to
 
undertake
 
various
 
listed
 
activities,
 
which
 
the
 
DMRE
 
equally
 
granted
 
on
 
11
 
May
 
2018.
 
The
 
grant
 
is
 
recorded
 
under
 
GP
30/5/1/2/3/2/1 (66) EM and the
 
IEA remains valid until the end
 
of Life-of-Mine (LoM). This IEA was transferred to FWGR in January
 
2022.
Kloof MR:
 
a new order
 
MR (GP 30/5/1/2/2/66MR)
 
issued in 2007,
 
is valid
 
until 2027 and
 
covers 20,087ha.
 
Sibanye Gold is
 
entitled to
mine all declared material falling within this MR and has all the necessary statutory requirements in place.
Two Section 102 amendments were submitted in 2015 to
 
extend the Kloof MR to include the Venterspost North, Venterspost South TSFs
and RTSF.
 
The Section 102
 
amendment for
 
Venterspost
 
North and
 
Venterspost
 
South TSFs
 
was granted
 
at the
 
end of 2021.
 
The RTSF
Section 102 amendment was granted but has not been executed by Sibanye Gold as yet.
A Section 102
 
is an application
 
to the Minister
 
of the DMRE
 
to amend the
 
rights permits, programs
 
or plans. Sound Mining
 
notes that
FWGR is not involved with any legal proceedings that may have an influence on the rights to extract minerals nor on the legal ownership
of all mining and surface rights.
Neither Sibanye
 
Gold nor
 
FWGR are
 
aware of
 
any outstanding
 
legal disputes
 
that are
 
applicable to
 
FWGR as
 
stated in
 
the Exchange
Agreement signed on 22 November 2017 and effective at the end of July 2018. To
 
the best of Sibanye Gold’s and FWGR’s
 
knowledge no
land claims exist over the relevant properties and no outstanding legal disputes exist that could affect FWGR right to further develop the
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
38
assets. To
 
the best
 
of the
 
Sound Mining’s
 
legal specialist's
 
knowledge, all
 
statutory permits
 
have either
 
been approved
 
or are
 
in the
process of being approved.
In summary, the security of
 
tenure for the FWGR
 
is considered to be intact.
 
The transfer of the TSFs
 
by Sibanye Gold to FWGR
 
involved
the transfer of moveable assets; and therefore, are not subject to the transfer of the associated MRs to FWGR. In terms of the Exchange
Agreement all risks and benefits of the business, passed from Sibanye Gold to FWGR including the rehabilitation liability of the TSFs. The
portion of the Sibanye
 
Gold’s rehabilitation
 
trust fund related
 
to these assets was
 
transferred to an
 
environmental trust
 
fund. In 2022,
these funds were subsequently transferred to a
 
Guardrisk Cell Captive, under a
 
ring-fenced environmental rehabilitation insurance policy
for the sole use of the rehabilitation liability.
3.5.
 
Driefontein Environmental
 
Authorization Transfer
Sibanye
 
Gold’s
 
Driefontein
 
EA
 
still
 
needs
 
to
 
be
 
transferred
 
to
 
FWGR.
 
An
 
Amendment
 
Application
 
was
 
filed
 
at
 
the
 
DMRE
 
(on
18 August 2020), for the following purposes:
●
application with a request that the scope of FWGR be expanded
 
by including DP2 for tailings processing and Driefontein 4 TSF as a deposition
 
site
as well as amending the sequence of reprocessing and disposal of residue tailings of Driefontein 3 TSF and 5 TSF; and
●
application for the transfer of EA (Reference No.: GP 30/5/1/2/2 (51) EM to FWGR.
3.6.
 
Water Use Licenses
Two Water Use Licenses (WUL) were granted to Sibanye Gold in terms of Section
 
21 of the National Water Act, 1998 (Act No. 36
 
of 1998) (NWA) over
the Driefontein and
 
Kloof mining areas on
 
9 March 2017
 
with Reference numbers:
 
10/C22B/ACFG/496 and 10/C23E/ACEFGJ4527
 
respectively. The
WUL’s
 
are
 
valid
 
for
 
a
 
period
 
of
 
twenty
 
years,
 
from
 
the
 
date
 
of
 
issuance
 
and
 
thus
 
expire
 
on
9 March 2037.
Sibanye Gold
 
is permitted
 
to reclaim
 
TSFs through
 
hydraulic mining
 
following which,
 
retreatment takes
 
place in
 
and at
 
the process
 
plants. All
 
the
water comes from Driefontein’s underground works at Driefontein
 
10 shaft and from Kloof 10 shaft.
Currently, residue
 
from DP2 is
 
disposed at Driefontein
 
4 TSF,
 
however when the
 
RTSF has been
 
constructed and is
 
operational, the residue
 
will be
disposed of at this facility. A return water dam will receive water from the RTSF where it will be recycled and reused in the reclamation operations.
FWGR has chosen to use a closed water reticulation system to reduce its water consumption needs by recycling process water.
The Dam Safety Regulations, under the NWA,
 
require a Dam Safety License for the construction of the RTSF.
 
The overarching WRTRP WUL has been
successfully transferred to FWGR. In addition, an application has been submitted for the transfer of applicable water uses from
 
the Driefontein WUL
to FWGR. This application is yet to be granted by the Department of Water Affairs and Sanitation.
3.7.
 
Other Permitting Requirements
A Refinery License has been issued to FWGR by the South
 
African Diamond and Precious Metals Regulator (SADPMR) to deal in unwrought
 
precious
metals.
A Heritage
 
Impact Assessment
 
(HIA) covering
 
Driefontein and
 
Kloof was
 
prepared and
 
submitted to
 
The South
 
African Heritage
 
Resource Agency
(SAHRA). SAHRA responded
 
by means of
 
a Final Statutory
 
Comment in letters
 
dated 22 April
 
2016, granting conditional
 
approval regarding the heritage
sites at Driefontein and Kloof.
FWGR is the holder
 
of Certificates of
 
Registration 281 (CoR)
 
issued in July 2019,
 
in terms of the
 
National Nuclear Regulator (NNR)
 
for Driefontein 3
TSF,
 
Driefontein 4 TSF,
 
Driefontein 5
 
TSF,
 
Kloof 1 TSF,
 
Venterspost South
 
TSF,
 
Venterspost North
 
TSF,
 
Driefontein Plant 2
 
(DP2) Driefontein Plant
 
3
(DP3) and the RTSF.
FWGR’s operations are governed by the Mine Health and Safety Act, 1996 (Act No. 29 of 1996) (MHSA).
exhibit961p2i0
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3.8.
 
Royalties
Under the MPRDA, no Mineral Royalties are payable on the reprocessing of TSFs for gold.
3.9.
 
Liabilities
The Driefontein
 
and Kloof
 
EAs
 
contain
 
stipulative
 
clauses as
 
to what
 
mitigatory
 
and rehabilitative
 
obligations exist
 
and explicitly
 
states
 
that the
rehabilitation requirements
 
must be
 
adhered to.
 
Financial provision
 
for remediation
 
of environmental
 
damage is
 
stipulated in
 
Section 24P
 
of the
National Environmental Management Act, 1998 (Act No. 107 of 1998) (NEMA) (as amended). FWGR obtained a Closure Cost Assessment from Digby
Wells in June 2022 for two gold processing plants and seven TSFs.
Currently, FWGR
 
has sufficient rehabilitation
 
guarantees and
 
funds in place
 
for all of
 
its assets to
 
satisfy the DMRE.
 
The closure and
 
rehabilitation
liability for the operation is updated annually at the end of the financial year (FY).
3.10.
 
Concluding Comments
In terms of the
 
Exchange Agreement all risks and
 
benefits of the operation
 
passed from Sibanye Gold
 
to FWGR. In particular, the rehabilitation
 
liability
of the TSFs and associated infrastructure have been transferred to FWGR. The portion of the Sibanye Gold’s rehabilitation trust fund related to these
assets has
 
been transferred
 
to the
 
Guardrisk Cell
 
Captive, under
 
a ring-fenced
 
environmental
 
rehabilitation insurance
 
policy for
 
the sole
 
use for
environmental rehabilitation activities, with any shortfall covered by an insurance policy taken out by FWGR.
FWGR owns the majority of the land on which the RTSF will be constructed. FWGR has an option agreement with the landowner for the purchase of
the remaining land still required for the RTSF. Provision has been made for this within the cashflow model.
There are no significant factors or material risks to the access, title or ability to perform work on the property.
 
A consequence of the Use and Access
Agreement is that
 
there are no
 
significant encumbrances to
 
the property with
 
regard to
 
current and
 
future permitting requirements.
 
Outstanding
permitting conditions are
 
being proactively managed
 
in line with the
 
required timeframes (Item
 
17). FWGR has
 
not been served with
 
any fines for
violations.
The QP
 
notes that
 
the Dam
 
Safety Regulations,
 
under the
 
NWA,
 
require a
 
Dam Safety
 
License for
 
the construction
 
of the
 
RTSF.
 
The existing
 
and
overarching WRTRP WUL has been successfully transferred to FWGR.
As an administrative matter, an application has also been submitted for
 
the transfer of the water uses from the Driefontein WUL to FWGR. Approval
of this application by the Department of Water Affairs and Sanitation is pending. This is not deemed a material risk to the ongoing operations.
 
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4.
 
ACCESSIBILITY,
 
CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY
Item 4 (i); (ii); (iii) and (iv)
The FWGR operations are 70km west of Johannesburg from where they
 
can be accessed by travelling for approximately one hour along tarred roads.
The TSFs are located at elevations between 1,570mamsl and 1,720mamsl (Figure 5).
Figure 5: Topography of Southern Africa
Source:
 
Sound Mining, 2022
The area which forms
 
part of the
 
South African inland
 
plateau region is typical of
 
a mature landscape with
 
gentle rolling undulations and
 
shallow sided
river valleys as shown in the topographic map (Figure 6).
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Figure 6: Topography Map of FWGR
Source:
 
Sound Mining, 2022
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Climatically, the area is classified as ‘moderate eastern plateau’ with by well-defined seasons characterized by warm to hot, moist summers and cool
dry winters, often accompanied by frost (Figure 7).
Figure 7: Climate and Rainfall of South Africa
Source:
 
Sound Mining, 2022
The temperate climate has an
 
average ambient temperature of
 
20°C with dry winters between May and
 
July (0°C to 18°C) and wet, warm
 
summers
from September to March (0°C
 
to 27°C). The daily mean
 
temperatures in January and July
 
are 21.2°C and 9.8°C
 
respectively. The Randfontein
 
area,
on average, receives 571mm of rain per year, with most rainfall occurring during summer in the form of thunderstorms. The highest rainfall occurs in
January (107mm) and
 
the lowest in June
 
(0mm) where the wet
 
season occurs from November to
 
April. With the exception of
 
summer thunderstorms,
the climatic conditions have little
 
to no effect on
 
the mining operations at FWGR
 
where work is done at all
 
times of the year and
 
where there is no
operating season.
The vegetation of the
 
region is typical savannah
 
grassland (Figure 8)
 
but most of
 
the area comprises
 
disturbed grazing land and
 
minor crop production.
The
 
major land
 
uses in
 
the area
 
include agriculture
 
in the
 
form
 
of maize
 
and
 
soya
 
production as
 
well
 
as
 
livestock grazing,
 
formal
 
and informal
residential, mining and business uses.
 
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Figure 8: Vegetation of South Africa
Source:
 
Sound Mining, 2022
The area developed on the back of gold mining and is now well serviced with schools,
 
suburbs, medical facilities, a rail network and other supporting
infrastructure.
 
The operation
 
lies across
 
the Randfontein
 
and Merafong
 
City Local
 
Municipalities which
 
provide
 
potable water
 
with the
 
national
electricity supplier - Electricity Supply Commission (Eskom), suppling the operation with power (see Item 15).
Infrastructure includes formal
 
and informal dwellings, buildings,
 
commercial farming infrastructure,
 
roadside shops, privately owned
 
infrastructure
such as access
 
roads, boreholes and
 
dams, public infrastructure
 
(roads and
 
transmission lines) and
 
mine accommodation.
 
Personnel and supplies,
from the surrounding areas, make use of
 
both tarred and gravel roads connecting farms, mines and urban
 
centers such as Carletonville and Fochville.
 
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5.
 
HISTORY
Item 5 (i) and (ii)
Gold and uranium mining
 
operations commenced in the
 
late 1800s in
 
the Witwatersrand Basin
 
goldfields of South Africa,
 
and have resulted
 
in the
accumulation of substantial amounts of surface tailings and other mine residues. The possible re-treatment of TSFs in the West Rand area has a long
and
 
complex
 
history
 
with
 
Gold
 
Fields
 
Limited
 
(Gold
 
Fields),
 
Rand
 
Uranium
 
Limited
 
(Rand
 
Uranium),
 
Harmony
 
Gold
 
Mining
 
Company
 
Limited
(Harmony),
 
Gold
 
One
 
International
 
Limited
 
(Gold
 
One)
 
and
 
Sibanye
 
Gold
 
completing
 
a
 
number
 
of
 
parallel,
 
independent studies
 
relating
 
to
 
the
retreatment of these TSFs. There is an approximate fifteen-year history of metallurgical test work and process design which has been undertaken for
a
 
variety
 
of
 
combinations
 
of
 
assets
 
and
 
products
 
recovered,
 
as
 
summarized
 
in
Table 2. Whilst these historical studies were for specific combinations of assets, they are not all relevant to FWGR in its current form.
Prior to 2009,
 
Gold Fields
 
embarked on a
 
project known as
 
the West Wits
 
Project (WWP) aimed
 
at retreating several TSFs
 
on its four
 
mining complexes:
Kloof, Driefontein, Venterspost and South Deep (Table 2) to
 
recover residual gold, uranium
 
and sulfur and
 
storing the tailings on
 
a new Central Tailings
Storage Facility
 
(CTSF). Similarly,
 
Rand Uranium had
 
embarked on the
 
Cooke Uranium
 
Project (CUP), which
 
endeavored to treat
 
the Cooke TSF
 
for
gold, uranium and sulfur and ultimately
 
deposit the tailings onto the
 
Geluksdal TSF, located very close to the CTSF. The two independent projects had
similar operational and environmental mandates, within a 25km radius of each other.
In 2009, Gold Fields
 
and Rand Uranium
 
evaluated the potential
 
synergy of an
 
integrated retreatment
 
plan for TSFs
 
located within the
 
South Deep,
Cooke, Kloof, Driefontein and Venterspost
 
mining complexes.
In
 
2012,
 
Gold
 
One
 
acquired
 
Rand
 
Uranium
 
and
 
in
 
the
 
same
 
year
 
acquired
 
the
 
Ezulwini
 
Mining
 
Company
 
(Proprietary)
 
Limited
 
(Ezulwini)
 
in
 
an
agreement with First Uranium Corporation.
 
During the same year Gold One,
 
revived the tailings retreatment
 
project and Gold Fields entered
 
into a
joint venture (JV) partnership with Gold One to investigate the economic viability of concurrently reprocessing current arisings and historical
 
tailings
from a number of sites situated in the greater Carletonville/Westonaria/Randfontein area. A scoping study was concluded in 2012.
In early 2013, Gold Fields unbundled its Kloof and Driefontein Complex and Beatrix gold mines in the Free State
 
Province to create a separate entity
in Sibanye Gold
 
and listed Sibanye
 
Gold as a
 
fully independent company
 
on both the
 
JSE and the
 
NYSE stock
 
exchanges. Subsequently,
 
in October
2013,
 
Sibanye
 
Gold
 
Limited
 
purchased
 
the
 
interest
 
held
 
by
 
Gold
 
One
 
in
 
Rand
 
Uranium
 
and
 
Ezulwini.
 
The
Gold One assets
 
which became part
 
of Sibanye Gold
 
included the Cooke
 
operations (underground mining
 
and surface
 
reclamation operations)
 
for
gold and uranium
 
production. This transaction
 
gave Sibanye
 
Gold control
 
of a substantial
 
portion of the
 
surface mineral resources
 
in the region.
 
A
Preliminary Feasibility Study (PFS) was completed during 2013 and confirmed that there is a significant opportunity to extract value from the surface
Mineral Resources. Subsequently,
 
a number of Definitive Feasibility Studies
 
(DFSs) have been completed on
 
various combinations of TSFs
 
as shown
in Table 2. Sibanye Gold’s TSF
 
reclamation assets were housed in a special purpose vehicle (SPV) called WRTRP.
In 2018, Sibanye Gold vended
 
its interest in WRTRP
 
to DRDGOLD for an equity
 
stake of 38.05%
 
and an option to subscribe
 
for additional shares for
cash to take its stake to 50.1%. In mid-2018, FWGR initiated Phase 1 of a phased approach to its growing reclamation operations.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Table 2: Historical Development of FWGR
Owner/Operator
Period
Project and/or Transaction
Properties
Activity
Comment
Gold Fields Group Limited
WWP
Driefontein Complex (Driefontein
 
1, 2, 3, 4 and 5 TSFs);
Kloof Complex (Kloof 1 and 2 TSFs, Libanon and Leeudoorn
TSFs; Venterspost Complex
 
(Venterspost North and
Venterspost South); and the South Deep Complex
Aimed at retreating several West
 
Rand TSFs to recover gold,
uranium and sulfur and storing the tailings on a new CTSF
Gold Fields - subsidiary
GFI Mining South Africa
(Proprietary) Limited
2009
West Wits Tailings Treatment
 
Project (WWTTP)
Driefontein Complex, Kloof Complex, Libanon, Leeudoorn,
Venterspost Complex and South Deep
 
Complex
WWTTP Feasibility Study near completion
Rand Uranium Limited (Rand
Uranium)
2009
CUP
Cooke mining Complex
CUP Feasibility Study near completion
Treatment of the Cooke
 
TSF for gold, uranium and sulfur.
Arising tailings would be deposited onto the Geluksdal TSF
located near the CTSF
Gold Fields and Rand Uranium
Late 2009
Discussion of synergy of WWTTP and CUP -
combination of WWTTP and CUP
Evaluation of a combined project
Significant re-engineering and metallurgical test
 
work
required and the project was put on hold
Rand Uranium
2010 to 2012
Completed the CUP and the Cooke Optimization
Project (COP)
CUP and COP Feasibility Study completed
Applications for authorizations partially complete
Gold One International Limited
(Gold One)
2012
Acquisition of Rand Uranium and Ezulwini
Revived the surface retreatment integration
discussions - update CUP DFS
Gold One JV with Gold Fields
2012 to 2013
JV to investigate economic potential
 
of
concurrently re-processing current arisings and
TSFs
TSFs and current arisings in the
Carletonville/Westonaria/Randfontein
 
region
Gold One/Gold Fields JV Scoping Study completed
end 2012
Gold Fields unbundled GFI
Mining South Africa
(Proprietary) Limited and
created Sibanye Gold Limited
Early 2013
Unbundling of the Kloof-Driefontein Complex and
Beatrix Gold Mines and listing of Sibanye Gold on
the JSE Limited and NYSE
Unbundling of the Kloof-Driefontein Complex and Beatrix
Gold Mines
Sibanye Gold Limited
 
2013
Acquisition from Gold One of the Rand Uranium
and Ezulwini assets
As a result of the transaction, Sibanye Gold held most
 
of the
surface resources in the region
Gold One/Gold Fields JV Scoping Study completed a
PFS
PFS showed significant opportunity to extract
 
value from
the surface resources
Sibanye Gold
2015
Study initiated for the original
Version 1 West Rand Tailings
 
Retreatment Project
(V1-WRTRP)
Treatment of the Driefontein
 
3 and 5 TSFs using Ezulwini
uranium process plant
DFS for the first phase of the
V1-WRTRP
Sibanye Gold
December
2015
Integrated study on Version
 
2 of the WRTRP (V2-
WRTRP)
Cooke, Driefontein 3, Driefontein
 
5 and Cooke 4 South TSFs
Integrated study for the production of
 
gold, uranium
and sulfuric acid - DFS for V2-WRTRP
DFS for V2 - WRTRP.
 
On completion of the DFS, the project
progressed to Front End Engineering Design (FEED) level of
accuracy whilst funding and permitting was sought
Sibanye Gold
2016
Decision to close Cooke No 4 shaft
DFS to determine economic viability of using
existing infrastructure including DP2 and Ezulwini
uranium process plant
DRDGOLD
2018
DRDGOLD acquired 100% of Sibanye Gold’s
 
SPV
(WRTRP) for a now 50.1% equity in DRDGOLD
Driefontein 3, Driefontein 4, Driefontein
 
5, Kloof 1, Libanon,
Venterspost North, Venterspost
 
South, TSFs, DP2 and land
for a RTSF and CPP
2017 Competent Persons Report, required
 
in terms
of Chapter 12 of the JSE listing requirements,
outlining category one transaction
DRDGOLD renamed the WRTRP to FWGR
Source:
 
DRDGOLD, 2022
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6.
 
GEOLOGICAL SETTING, MINERALIZATION AND DEPOSIT
Item 6 (i); (ii) and (iii)
6.1.
 
Regional Setting, Mineralization
 
and Deposit
The mineral assets
 
considered in this
 
TRS are the
 
tailings derived
 
through the mining
 
and processing of
 
the Driefontein, Kloof, Libanon
 
and Venterspost
mines of the
 
Witwatersrand Gold Fields. As
 
such the mineralization of
 
the mined material
 
which produced the
 
tailings, now being
 
processed by FWGR,
is described in this TRS. Whereas the
 
nature of the underlying geology is
 
not of direct relevance, an understanding of the scale and nature
 
of the gold
mineralization that was targeted in the historical mining operations provides insight into the structure and composition of the mineral assets.
The assets of FWGR are derived from the West Rand and Carletonville Goldfields
 
of the gold-bearing, late Archaean (2.7Ga to 3.2Ga), Witwatersrand
Supergroup (Witwatersrand Basin). The Witwatersrand
 
Basin is the largest gold bearing metallogenic
 
province globally and is a roughly oval-shaped
sedimentary basin, elongated
 
in a northeast-southwest
 
direction. The major
 
north-south axis of
 
the basin is
 
approximately 160km
 
long, stretching
from Welkom to Johannesburg and where
 
the minor, east-west axis, spans approximately 80km. The
 
Witwatersrand Basin is filled
 
with approximately
14,000m
 
of
 
sedimentary
 
and
 
subordinate
 
volcanic
 
units,
 
of
 
which
 
only
 
small
 
portions
 
outcrop
 
to
 
the
 
south
 
and
 
west
 
of
 
Johannesburg.
 
The
Witwatersrand
 
Supergroup
 
overlies
 
an
 
Archaean
 
(>3.1Ga)
 
granite-greenstone
 
basement
 
and
 
the
 
3.08Ga
 
to
 
3.07Ga
 
Dominion
 
Group
 
and
 
is
subsequently uncomfortably overlain, by units of the Ventersdorp (~2.7Ga), Transvaal (~2.6Ga) and Karoo (~280Ma) Supergroups (Figure 9).
The basin hosts vast
 
auriferous and uraniferous
 
deposits which have been
 
grouped into geographically
 
distinct sub-basins or goldfields (Figure
 
10).
The
 
goldfields
 
are
 
separated
 
by
 
stratigraphy
 
where
 
no
 
economic
 
mineralization
 
has
 
been
 
discovered.
 
The
 
stratigraphy
 
of
 
the
 
Witwatersrand
Supergroup is broadly split into
 
two Groups, namely the Central Rand
 
and the West Rand
 
Groups, which in turn are split
 
into a series of subgroups,
formations and members (Figure 11). The stratigraphic structure of the Witwatersrand Supergroup is well understood at
 
subgroup level, however at
formation level, correlation problems are encountered between the
 
defined goldfields. The recognition
 
of basin-wide disconformities, can be used
 
as
a basis for stratigraphic correlation and thus permits the correlation of
 
formations between the various goldfields to higher comfort levels (McCarthy
and Rubidge, 2006). The principal economic reefs have been correlated across various goldfields and do not occur at the same stratigraphic level.
Recent studies consider
 
the deposition in
 
the Witwatersrand sediments to
 
have taken place along
 
the interface between a
 
fluvial system and an
 
inland
sea. Specifically, this body of water is considered to
 
be a retroarc-foreland basin which formed in response
 
to crustal thickening on the northern edge
of the Kaapvaal Craton, during a collision
 
with the Zimbabwe craton to the north.
 
The varying stratigraphic position of the
 
narrow, 0.1m to 2.0m thick
quartz-pebble conglomerate
 
reefs are
 
interpreted to
 
represent major,
 
diachronous, entry
 
points of
 
coarse-grained sediment
 
into the
 
basin. They
appear to be laterally coalesced fluvial braid-plains, where gold
 
was concentrated within conglomerates which
 
developed, primarily along erosional
unconformities. The extent
 
of the development
 
of the various
 
unconformities is greatest
 
near the basin
 
margins and decreases
 
towards the more
distal areas.
 
Complex patterns
 
of syn-depositional faulting
 
and folding have
 
caused significant variations
 
in sediment thickness
 
and sub-vertical
 
to
over-folded reef structures are characteristic of the basin margins.
Structurally, the Witwatersrand Basin has experienced a long and
 
complex history, affected by several superimposed structural events, differentiated
as syn- and post-depositional deformations. Syn-depositional
 
deformation played a key role in the original distribution
 
of sediments which controlled
the locality of
 
auriferous conglomerates and the thickness
 
of enclosing sedimentary
 
sequences. Later faulting and
 
folding of the sequence
 
determined
which parts of the Witwatersrand Basin remained buried, as well as the depth extent of mineable horizons, relative to the present-day surface.
 
exhibit961p2i0 exhibit961p12i1 exhibit961p12i0
 
 
 
 
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Figure 9: Regional Geological Setting of the Witwatersrand Supergroup
Source:
 
Sound Mining, 2022
 
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6.2.
 
Local Geological Setting, Deposit and Minerali
 
zation
In terms of a more
 
local description, the FWGR assets comprise
 
of TSFs of tailings material
 
derived from the mining and
 
processing of ore from
 
the
Driefontein, Kloof,
 
Libanon and Venterspost
 
mining operations, located
 
in the West
 
Rand and Carletonville Goldfields, on
 
the north-western rim of
the Witwatersrand Basin (Figure 10).
Figure 10: Geology of the Witwatersrand Basin
Source:
 
Sound Mining, 2022
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These operations exploit the
 
Ventersdorp Contact
 
Reef (VCR) located
 
at the top
 
of the Central Rand
 
Group, the Carbon Leader
 
Reef (CLR) near the
base of the Central Rand Group and the Middelvlei Reef, which stratigraphically occurs 50m to 75m above the Carbon Leader. Additional minor reefs
including the Kloof,
 
Elsburg, Kimberley and
 
Libanon Reefs
 
are exploited
 
at some
 
operations (Figure
 
11). The
 
Central Rand Group,
 
is dominated
 
by
course-grained siliciclastic metasedimentary
 
facies with subordinate
 
fine grained (mudstone)
 
facies. Its depositional
 
environment is
 
interpreted as
alluvial deltas and braided streams
 
which formed at the fluvial
 
- shallow marine interface. The
 
proximal, high energy,
 
facies are directly linked
 
with
the
 
concentration
 
of
 
detrital
 
gold,
 
pyrite
 
and
 
uraninite
 
and
 
thus
 
the
 
Central
 
Rand
 
Group
 
accounts
 
for
 
95%
 
of
 
the
 
gold
 
production
 
from
 
the
Witwatersrand Basin.
Figure 11: Witwatersrand Supergroup Stratigraphic Section
Source:
 
Frimmel et al, 2005
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The gold bearing reefs are fundamentally distinguished
 
by their association with quartz-pebble
 
conglomerates, which are confined by a basal angular
unconformity and an upper planar bedding
 
surface separating it from
 
an overlying quartz wacke
 
or siltstone unit. The extent
 
of the unconformable
surfaces is
 
typically greatest at
 
the basin
 
margins and decreases
 
towards the distal
 
areas of the
 
basin. The
 
Witwatersrand Supergroup is poorly
 
exposed
in outcrop due to the overlying, younger cover
 
sequences. The surface geology of the mining
 
area comprises outliers of Karoo Supergroup shales and
sandstones,
 
followed
 
by
 
Pretoria
 
Group
 
sediments
 
and
 
the
 
Chuniespoort
 
Group
 
dolomites
 
of
 
the
 
Transvaal
 
Supergroup.
 
In
 
the
 
center
 
of
 
the
Witwatersrand Basin,
 
units of the
 
Witwatersrand Supergroup
 
have been
 
upturned and exposed
 
in the Vredefort
 
meteorite impact crater
 
which is
dated at 2,023Ma.
The region is
 
structurally complicated
 
with a major
 
structural fault,
 
the West
 
Rand Fault, separating
 
the West
 
Rand Goldfield operations
 
from the
South Deep
 
Gold Mine
 
to the east
 
(Figure 10). Additional
 
horst structures are
 
superimposed upon
 
the southeast
 
plunging West Rand Syncline
 
including
the Bank Fault (Figure 10), a
 
large west dipping fault with a
 
down-throw to the west. The structural
 
features affect the preservation, depth and length
of the economic reefs. In the area east of the Bank Fault
 
the majority of mining exploits the VCR, with minor contributions from the Middelvlei Reef
and the Kloof
 
Reefs (Gold
 
Fields). West
 
of the
 
Bank Break
 
the CLR
 
is generally
 
a high-grade
 
reef and
 
represents the
 
major source
 
of Run-of-Mine
(RoM) with minor contributions from the VCR and Middelvlei Reef.
6.3.
 
Property Geology,
 
Deposit and Mineralization
FWGR TSFs are located on
 
two mining rights (Figure 12) within the
 
West Rand and Carletonville Goldfields. As
 
stated above, they are the processed
waste derived from the
 
mining and processing
 
of auriferous and
 
uraniferous ores from Driefontein, Kloof, Libanon
 
and Venterspost mining operations.
The mining operations targeted different reefs, namely:
●
the Driefontein TSFs comprise primarily processed VCR, CLR and Middelvlei Reef;
●
the Kloof TSF comprises primarily processed VCR, Middelvlei Reef and the Kloof Reef;
●
the Venterspost TSFs comprise primarily processed Middelvlei Reef and VCR; and
●
the Libanon TSF comprises material from the VCR, Libanon Reef, Kloof Reef and Middelvlei Reef.
The composition of
 
a TSF
 
depends on the
 
geochemical make-up
 
of the material
 
being mined and
 
the chemicals used
 
in the mining
 
and extraction
process. In addition
 
to the
 
internal structure,
 
the TSF
 
reflects the
 
mining strategy
 
and depositional methodologies
 
employed at
 
each operation.
 
A
single TSF can have portions of different
 
composition and specific gravity (SG) due to changes
 
in underlying orebody contribution, the deposition of
tailings arising from different operations and differing depositional strategies.
The bulk density of tailings material
 
is a critical factor
 
in the accurate estimation
 
of quantities and thus an investigation
 
into the lateral and
 
vertical
variation was conducted. These factors can result in a considerable variation
 
in gold content and distribution throughout a TSF where such variation
has an impact on final recoveries and projected revenues
 
for the operation. Various exploration
 
programs and subsequent geological modelling has
enabled the classification of FWGR TSFs as Mineral Resources with a bulk density ranging from 1.40g/cm
3
 
to 1.45g/cm
3
.
In
 
addition,
 
secondary
 
processes
 
such
 
as
 
metal
 
re-mobilization,
 
erosion,
 
weathering,
 
leaching
 
and
 
acid
 
mine
 
drainage
 
can
 
further
 
affect
 
the
geochemical characteristics of
 
a TSF.
 
These processes tend to
 
progress faster
 
in a TSF
 
compared to a
 
primary ore body as
 
weathering, erosion and
oxidation are accelerated by the fine particle
 
size of the material, and leaching
 
together with acid mine drainage occur
 
due the large amount of water
associated with TSFs. Gold can undergo mobilization within the TSF with time
 
and hence may exhibit areas of re-concentration and even be present
in the
 
sub-structure soil.
 
The geochemical
 
characteristics
 
of the
 
footprint
 
geology,
 
such as
 
dolomites, granites,
 
quartzites, has
 
a bearing
 
on the
mobilization dynamics of
 
a TSF.
 
Hence, depending on
 
several factors
 
such as
 
footprint, age
 
of deposition, beneficiation
 
and primary reef
 
origin of
slimes, a TSF may exhibit areas/layers of differing
 
grade profiles. The modelled dumps show vertical and lateral variation in gold grade
 
and although
exceptions occur,
 
in general,
 
the grade
 
tends to
 
increase towards
 
the bottom
 
of the dump
 
and into
 
the footwall.
 
Detailed exploration
 
results and
geological modelling is outlined in Item 7 and Item 11 respectively.
exhibit961p2i0 exhibit961p15i0
 
 
 
 
DRAFT
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(Proprietary) Limited
Document No: PR/SMI/1203/22
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Figure 12: Property Geology
Source:
 
Sound Mining,
 
2022
exhibit961p2i0
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Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
52
7.
 
EXPLORATION
Item 7 (i); (ii); (iii); (iv); (v) and (vi)
7.1.
 
Methods and Databases
The extent, morphology
 
and structure of
 
the TSFs is relatively
 
simple when compared
 
to conventional mineral deposits.
 
Consequently, the exploration
programs are also simple and straightforward. Exploration of the FWGR’s assets comprised:
●
auger drilling programs to permit sampling for gold content and mapping of the gold distribution undertaken in drilling campaigns by Gold Fields
in 2007, 2008 and 2009 for the Driefontein, Kloof, Libanon and Venterspost TSFs;
●
surveying
 
of
 
the
 
borehole
 
collars
 
undertaken
 
by
 
Gold
 
Fields
 
in-house
 
surveyors
 
to
 
determine
 
physical
 
dimensions
 
and
 
volumes
 
verified
independently by Light Detection and Ranging (LIDAR) consultants;
●
metallurgical and flow
 
sheet development test
 
work including historical
 
studies by SGS
 
South Africa (Proprietary)
 
Limited (SGS) and
 
recent test
work by Mintek; and
●
tailings toxicity tests and SG determination - undertaken by SLR
 
Consulting (Africa) (Proprietary) Limited and The
 
RVN Group (Proprietary) Limited
(The RVN Group).
7.2.
 
Geophysical Characterization
No geophysical investigation of the TSFs has been undertaken as part of the exploration programs.
7.3.
 
Geo-hydrological Characteri
 
zation
A geohydrological investigation of
 
the TSFs did not form part of
 
the exploration programs. It is
 
not required for the determination and classification
of FWGR’s Mineral Resources. The handling of surface water is described in the mining and processing Items (Item 13 and Item 14). Hydrological and
geohydrological considerations for the Leeudoorn TSF and RTSF are discussed in Item 15.1.1 and Item 15.2.1.
7.4.
 
Geotechnical Characterization
A geotechnical
 
investigation of
 
the TSFs
 
did not
 
form part
 
of the
 
exploration programs.
 
It is
 
not required
 
for hydro
 
-mining of
 
the unconsolidated
tailings material. The slope angles and bench
 
widths do not pose a risk to
 
the mine design (Item 13.1). Geotechnical assessments
 
were performed for
the design of the Leeudoorn TSF and RTSF (Item 15.1.1 and Item 15.2.1). The auger drilling method performed during exploration does not allow for
the orientation of samples. Geotechnical characterization is not applicable to the determination and classification of FWGR’s Mineral Resources.
7.5.
 
LIDAR and Surveying
A detailed
 
helicopter-based LIDAR
 
survey was
 
undertaken by
 
Gold Fields in
 
late 2008.
 
The survey was
 
conducted by
 
Southern Mapping Company
(Proprietary) Limited
 
and the total
 
area surveyed
 
was approximately
 
44,000ha. The
 
aerial survey was
 
conducted using
 
an aircraft
 
mounted LIDAR
system which scanned the ground
 
below with a 70kHz laser.
 
Digital color images were also gathered
 
to produce color orthophotos. The survey was
conducted at a
 
height of 1,100m
 
above datum with
 
an image
 
pixel size
 
of 15cm. The
 
vertical accuracy was
 
10cm and
 
the horizontal
 
accuracy was
20cm. The survey was calculated
 
in Hartebeesthoek94, LO27 projection with
 
ellipsoidal heights. The data was
 
supplied to Gold Fields in
 
CAPE LO27
with orthometric heights. The LIDAR survey provided surface data from which three-dimensional (3D) models of the TSFs were constructed.
 
exhibit961p2i0
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(Proprietary) Limited
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The Driefontein 5 TSF and Driefontein 3 TSFs were surveyed
 
in 2004 and 2006 respectively
 
by Gold Fields, using differential Global
 
Positioning System
(GPS) methodology.
 
In all
 
instances it
 
was found
 
that the
 
vertical positioning
 
of the
 
drillhole collars
 
were offset
 
from the
 
surface of
 
the TSFs
 
as
determined from the LIDAR
 
survey. The offset ranges from approximately 0.5m
 
to several metres. It
 
was assumed that the
 
LIDAR survey was the
 
more
accurate of the two surveys and the drillhole positions were moved to intersect the top of the TSF wireframes.
7.6.
 
Drilling
Historical exploration programs and Mineral Resource estimates that have contributed to the overall
 
exploration database include:
●
a Mineral Resource estimate (Minxcon 2008); and
●
Gold Fields
 
(2007) undertook
 
an initial
 
drilling campaign
 
on Driefontein
 
3 TSF
 
and Driefontein
 
5 TSF.
 
The Mineral
 
Resources were
 
reported in
Minxcon (Proprietary) Limited
 
(Minxcon) report R2008-14
 
(2008). The drilling continued
 
in 2008 to
 
cover 13 TSFs
 
in the Kloof,
 
Driefontein, and
Venterspost areas.
The
 
drilling
 
was
 
done
 
on
 
either
 
a
 
100m-by-100m
 
or
 
a
 
200m-by-200m
 
grid.
 
All
 
drillholes
 
were
 
vertical
 
and
 
downhole surveys
 
were
 
considered
unnecessary as the drillholes were
 
shallow,
 
generally <70m deep. The
 
drillhole grid and downhole sampling density
 
are sufficient to
 
establish both
grade and geological continuity.
The drilling was undertaken using a fully
 
portable hydraulic drill rig comprising a rotating spiral auger
 
drill encased in a stainless-steel core barrel/rod.
The rod comprises a 50mm nominal bore
 
drill rod and inner spiral,
 
with the inner spiral rotating
 
in the opposite direction to
 
the outer casing whilst
advancing
 
into
 
the tailings
 
material.
 
The
 
drilling is
 
performed dry
 
and
 
due
 
to
 
the nature
 
of
 
the drilling
 
the
 
resultant
 
samples
 
are
 
not
 
oriented.
Orientation is not relevant to mining methodologies of the TSFs.
Samples have been described and assayed appropriately to support a Mineral Resource estimation.
Two drilling contractors were utilized, namely
 
Dump and Dune
 
Drillers (Proprietary) Limited and
 
Gold Mine Sands
 
and Slime Dam Drillers
 
(Proprietary)
Limited. Both companies have experience in the drilling of tailings material and comply with industry practices.
Auger and sonic drilling
 
of tailings material
 
by its nature
 
is intrinsically open to
 
contamination and therefore
 
requires particular care
 
to ensure the
results are adequate for use
 
in a Mineral Resource estimate. The
 
drilling programs were supervised by
 
in-house qualified geologists and
 
a high degree
of corporate governance is evident. The drilling methodologies were independently
 
audited by SRK Consulting (Proprietary) Limited (SRK) in
 
2008 for
Driefontein 3 TSF,
 
Driefontein 5 TSF, Kloof 1 TSF,
 
Libanon TSF, Venterspost
 
North TSF and Venterspost South TSF.
Drilling
 
logs
 
were
 
kept
 
by
 
the
 
drilling
 
foreman
 
but
 
no
 
sample
 
photographs
 
were
 
kept.
 
Given
 
the
 
drilling
 
methodology,
 
this
 
is
 
not
 
considered
inappropriate.
Overall conclusions for each drilling campaign suggest that the
 
drilling and sampling programs were conducted to industry standards and suitable for
incorporation into a Mineral Resource estimate.
The location of
 
the drillhole collars
 
for the
 
TSFs
 
are shown in
 
Figure 13
 
to Figure
 
18. The total
 
number of drill
 
holes is 1,180
 
with an approximate
length of 72km.
7.7.
 
Exploration Budget
Numerous historical exploration activities
 
now contribute to the
 
FWGR’s overall
 
exploration database and it
 
is anticipated that FWGR
 
will continue
to conduct exploration activities which are
 
necessary to keep ahead of
 
recoveries and to update knowledge of the
 
content within the TSFs. Provisions
for future exploration are included in the DCF model.
 
exhibit961p2i0
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(Proprietary) Limited
Document No: PR/SMI/1203/22
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8.
 
SAMPLE PREPARATION,
 
ANALYSIS AND SECURITY
Item 8 (i); (ii); (iii); (iv) and (v)
8.1.
 
Sampling Method
Auger Drilling:
the auger drill comprises
 
a rotating spiral auger drill bit
 
encased in a stainless-steel core barrel. The
 
core barrel comprises a 50mm drill
rod and inner spiral, with
 
the inner spiral rotating
 
in the opposite direction to
 
the outer casing as the
 
tailings material is penetrated.
 
The extension
rods and spiral augers have
 
three lengths; namely 1.5m, 3.0m and
 
4.5m. The typical drilling cycle comprised the following
 
sequence, repeated until
the floor of the TSF was intersected:
●
an initial sample was drilled with a 1.5m spiral auger/sample tube, after which the first sample was extracted;
●
the subsequent sample was drilled with a 3.0m auger/sample tube and the 1.5m sample extracted;
●
thereafter, a 4.5m spiral auger/sample tube was used and the sample extracted; and
●
the succeeding samples were extracted from the 4.5m spiral auger plus a 1.5m extension rod, followed by a 3.0m extension rod and then a 4.5m
drill rod.
The first two samples were extracted directly
 
into new sample bags by
 
using the drill rig to
 
reverse the rotation of the spiral within
 
the 1.5m and 3.0m
auger/sample tubes. The sample bag was
 
placed over the end of the
 
tube to collect the sample following
 
which the spiral auger and
 
interior of the
barrel were cleaned by using a cloth and a steel brush to remove the tailings material.
Subsequent samples were extracted by removing the spiral auger and the sample collected in a rubber trough. The first 10cm to 15cm of the sample
were discarded as they would be the most likely
 
to have contamination and the remainder of the sample was
 
transferred into the bag at the
 
end of
the rubber trough. The sample
 
bag was then closed,
 
placed in sequence and the
 
tickets added. The sample at the
 
floor of the TSF is collected
 
into two
separate bags containing the soil/footprint sample and the lowermost tailings sample.
The entire sample
 
was collected and
 
consequently the full
 
length of the
 
TSF was
 
sampled, ensuring representivity.
 
No relationship exists
 
between
sample recovery and
 
grade as
 
the material
 
is fine grained
 
and the entire
 
sample was collected
 
so no preferential
 
loss of fines
 
is anticipated.
 
Each
resulting sampled
 
weighed between 2kg
 
and 4kg and
 
is considered suitable
 
for the fine
 
grain size of the
 
tailings. No selective
 
sampling was undertaken.
The drilling sites
 
were visited
 
by independent
 
consultants who
 
concluded the
 
sampling and
 
management of
 
samples by
 
the drillers
 
was of
 
a high
quality, well controlled and from the evaluation of the quality control data, the number of errors made by the drillers was very small.
The samples were not geologically nor geotechnically logged as these criteria cannot be obtained from an auger sample.
8.2.
 
Sample Security
The database used for the Mineral Resource estimation was thoroughly reviewed and found to be reliable.
8.3.
 
Analytical Laboratories
Four independent laboratories were used for sample analysis, namely SGS, Set Point Laboratories (Set Point), ALS
 
Chemex South Africa (Proprietary)
Limited (ALS)
 
and Performance Laboratories
 
(Proprietary) Limited (Performance
 
Laboratories). All except
 
for Performance Laboratories,
 
are accredited
by the South African
 
National Accreditation System (SANAS) for gold
 
assay. At the time of work, Performance Laboratories
 
did meet the requirements
of ISO/IEC 17025:2005 for gold assay which accreditation was valid until February 2015.
Set Point
 
and
 
ALS were
 
independently inspected
 
and
 
found
 
to
 
follow
 
best
 
practice
 
principles of
 
quality management.
 
They have
 
procedures of
chemical
 
analysis
 
and
 
assay
 
that
 
meet
 
the
 
requirements
 
for
 
code
 
compliance.
 
They
 
use
 
sample
 
preparation
 
equipment
 
that
 
complies
 
with
international accepted
 
practices and
 
laboratory information
 
management systems
 
with sample
 
tracking. Quality
 
management systems
 
exist with
quality checks throughout the entire assay and analytical process.
8.4.
 
Analytical Procedures
Gold analysis was undertaken using standard fire assay methodology with gravimetric
 
finish which is considered entirely appropriate for the sample
type.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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The
 
laboratory
 
sample
 
preparation
 
was
 
standard
 
for
 
auger
 
drill
 
samples
 
and
 
included
 
drying,
 
jaw
 
crushing
 
to
 
a
 
nominal
 
10mm
 
if
 
compacted,
pulverizing with a
 
disc pulverizer
 
and manual homogenization.
 
The final sample
 
size submitted
 
for assay
 
was 500g
 
and the likelihood
 
the samples
being non-representative is low.
8.5.
 
Bulk Density
In general, the conversion from volume to quantity
 
in the case of mineral deposits
 
is undertaken by the application of a
 
density or the SG determined
experimentally on dry samples. Density is the mass per unit volume e.g., t/m
3
, whilst SG is the ratio of the density of a
 
substance to the density of a
reference substance (usually water); and
 
is a unitless
 
ratio of the mass of
 
a substance to the
 
mass of a reference substance
 
for the same given
 
volume.
Wet density measurements can be undertaken for samples with moisture content.
Bulk density, however is defined as the dry weight of a material per unit volume of that material. Bulk density considers both the solids and the pore
space; whereas, density and SG consider only the solids.
The density throughout the various TSFs will vary marginally depending on the original
 
reefs mined. An average
 
density of 1.40t/m
3
 
was used in the
2018 Mineral Resource estimate but this
 
Mineral Resource has now been updated
 
using a density of 1.42t/m
3
 
because of data subsequently
 
available
to FWGR from the current
 
operations and from recent test
 
work performed by The RVN
 
Group. This compares favorably with
 
the average densities
reported by other companies in the business of retreating Witwatersrand tailings (Table 3).
Table 3: Dry Densities used by Other Re-treatment Companies for the Witwatersrand Operations
Company
TSF
Dry Density
(t/m
3
)
Rand Uranium
West Rand Operations
1.45
Anglo Gold Ashanti
Vaal River Operations
1.45
Ergo Mining (Proprietary) Limited
Elsburg Tailings Complex
1.42
Mintails SA
West Rand Projects
1.40
Source:
 
Sound Mining,
 
2022
The QP has therefore assumed a consistent density of 1.42t/m
3
 
for the Mineral Resource estimate as at 30 June 2022.
The use of a dry density in the estimation
 
of an in situ Mineral Resource is
 
standard best practice and the dry
 
density value has been applied to the
Mineral Resource estimate.
8.6.
 
Concluding Comments
The QP considers
 
the sampling method
 
and preparation
 
adequate for
 
this type of
 
mineralization. Sample
 
security is considered
 
adequate and the
resulting database
 
reliable. Standard
 
analytical processes
 
were used
 
for sample
 
grade determination
 
with Quality
 
Assurance and
 
Quality Control
(QA/QC) (Item 9) providing confidence in the results.
 
exhibit961p2i0
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Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
56
9.
 
DATA
 
VERIFICATION
Item 9 (i); (ii) and (iii)
9.1.
 
Quality Assurance and Quality Control (QA/QC)
The internal laboratory standards and blanks (between two and four per fifty) were inserted in every batch. Internal standard
 
s
 
with a blind standard
were used on all instruments. The laboratories undertake regular evaluation of overall performance by statistical evaluation of all
 
QC data.
The laboratory internal checking processes were independently checked
 
and found to be standard
 
and reliable. Several checks were undertaken
 
on
the importation of data into the Mineral Resource estimation software with no issues highlighted.
Laboratory reports
 
suggest that
 
blanks and
 
Certified Reference
 
Materials (CRM)
 
were included
 
for every
 
100 samples.
 
The CRMs
 
submitted were
African Mineral
 
Standards (AMIS)
 
AMS0046 at
 
0.67g/t Au;
 
AMIS AMS0080
 
at 1.14g/t
 
Au and
 
accredited blank
 
AMIS AMS0069
 
<0.002g/t Au.
 
The
spread of gold grades
 
in the CRM is appropriate
 
and the review of
 
the quality control and quality
 
assurance data concluded that
 
13.7% of the total
population of samples (13,000 samples) were outside of the two standard deviation limits allowed and were re-analyzed.
9.2.
 
Independent Verification
The TSFs
 
exploration programs
 
were
 
conducted during
 
2007 to
 
2009 with
 
independent oversight
 
and review
 
provided by
 
Minxcon
 
(Proprietary)
Limited, with
 
auditing of
 
the results
 
by SRK
 
Consulting (Proprietary)
 
Limited. The
 
overall conclusions
 
for each
 
drilling campaign
 
suggests that
 
the
drilling and sampling
 
programs were
 
conducted to industry
 
standards and
 
are acceptable for
 
a Mineral
 
Resource estimate.
 
The TSF
 
volumes were
independently verified by Southern Mapping Company Limited.
Sound Mining has since completed an independent
 
review of the available information and a verification of the data used for the
 
LoM plan to exploit
FWGR’s assets. This involved
 
integrity checks on
 
the capturing of
 
data and interviews
 
with the specialists
 
involved in the
 
original exploration programs.
The QP
 
is satisfied
 
with the
 
accuracy and
 
integrity of
 
the Mineral
 
Resource estimate.
 
The QP
 
is further
 
comforted by
 
the fact
 
that mining
 
of the
Driefontein 5 TSF (December 2018 to current) has confirmed both the volume and grade estimates of the TSF.
It should also
 
be noted
 
that the type
 
and style
 
of mineralization
 
of the original
 
reefs exploited
 
during the establishment
 
of the TSF
 
assets are not
relevant to the Mineral Resource estimate.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Document No: PR/SMI/1203/22
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10.
 
MINERAL PROCESSING AND METALLURGICAL TESTING
Item 10 (i); (ii); (iii); (iv) and (v)
10.1.
 
Metallurgical Test
 
Work
The test work described here under relates to understanding recoveries applicable to the TSF mineral deposits. The metallurgical characterization of
the TSFs in the area have been covered
 
by numerous techno-economic studies from 2000 to date. These have ranged
 
from Scoping Studies through
PFS work to DFS levels of accuracy. The metallurgical test work covered various processing options including direct leach,
 
grinding, ultra-fine grinding
and flotation.
Metallurgical test work, on the FWGR’s TSFs, was completed by three independent laboratories, namely SGS Lakefield (SA), Mintek, and Patterson
 
&
Cooke. Results were independently review by ENC Minerals (Proprietary) Limited and
 
are considered acceptable by the QP. These laboratories are all
accredited by
 
the SANAS
 
for gold
 
assay.
 
All three
 
laboratories were
 
independently inspected. They
 
follow conventional
 
best practice
 
principles of
quality management and have procedures of
 
chemical analysis and assay that are accepted as
 
fulfilling the requirements of compliancy demanded
 
of
modern mining
 
companies. They
 
use sample
 
preparation equipment
 
that complies
 
with international
 
accepted practice.
 
They have
 
installed well
developed laboratory information management systems with sample tracking. They have evolved quality management systems
 
in place with quality
checks through the entire assay and analytical process.
Test
 
work has
 
been performed
 
on Driefontein
 
3 TSF,
 
Driefontein 5
 
TSF,
 
Libanon TSF,
 
Kloof 1
 
TSF and
 
Venterspost
 
North TSF.
 
Less test
 
work was
performed on the
 
Venterspost South TSF. The diagnostic leach results as
 
well as gold deportment
 
per size fraction of
 
the Driefontein TSFs are included
in Table 4, Table
 
5 and Table 6.
Table 4: Full Diagnostic Leach Results on Un-milled Feed Samples
Diagnostic Results Un-Milled Feed Sample Association
Driefontein 3 TSF
Driefontein 5 TSF
(g/t Au)
(% Au)
(g/t Au)
(% Au)
Gold Available to Direct Cyanidation
0.24
54.7
0.22
52.4
Gold that is Preg-robbed Carbon-in-Leach (CIL)
0.02
3.5
0.00
0.0
Gold Associated with GCI Digestible Minerals
0.06
14.9
0.05
11.4
Gold Associated with HNO₃
 
Digestible Minerals
0.03
6.9
0.04
10.3
Gold Associated with Carbonaceous Matter
0.02
4.1
0.00
0.0
Gold Associated with Quartz (balance)
0.07
16.0
0.11
25.9
Total
0.43
100.0
0.41
100.0
Source:
 
Mintek, 2015
Table 5: Driefontein 5 TSF Feed Sample Assay by Size
Particle Size
(µm)
Mass
(%)
Cumulative
Mass
(% mass)
Discrete
Grade Au
(g/t)
Discrete Distribution
(%)
Cumulative Distribution
(%)
Au
U
3
O
8
S
2
Au
U
3
O
8
S
2
150
5.5
94.5
1.13
15.2
4.1
0.9
100.0
100.0
100.0
106
10.8
83.6
0.62
16.3
4.8
1.9
84.8
95.9
99.1
75
15.1
68.5
0.34
12.4
7.9
6.1
68.6
91.0
97.2
53
10.6
58.0
0.27
6.9
6.3
11.9
56.1
83.2
91.1
38
8.7
49.3
0.32
6.7
6.4
16.1
49.2
76.9
79.2
25
9.0
40.3
0.31
6.8
7.9
17.6
42.5
70.5
63.1
15
22.0
18.3
0.23
12.3
36.9
33.6
35.7
62.6
45.5
-15
18.3
0.53
23.4
25.7
11.9
23.4
25.7
11.9
Total
100.0
100.0
100.0
100.0
Head Grade (calculated)
0.41
Head Grade (measured)
0.41
Variance
0.70%
Source:
 
Mintek, 2015
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Table 6: Driefontein 3 TSF Feed Sample Assay by Size
Particle Size
(µm)
Mass
(%)
Cumulative
Mass
(% mass)
Discrete
Grade Au
(g/t)
Discrete Distribution
(%)
Cumulative Distribution
(%)
Au
U
3
O
8
S
2
Au
U
3
O
8
S
2
150
5.0
95.0
1.48
18.0
5.5
0.08
100.0
100.0
100.0
106
12.9
82.0
0.39
12.2
5.9
1.8
82.0
94.5
99.2
75
17.0
65.0
0.37
15.3
8.9
7.9
69.8
88.6
97.5
53
10.5
54.6
0.34
8.6
6.8
12.6
54.5
79.8
89.5
38
8.4
46.2
0.34
6.9
6.3
16.1
45.9
72.9
76.9
25
7.8
38.4
0.27
5.1
6.1
14.7
38.9
66.7
60.7
15
24.9
13.5
0.29
17.5
40.2
38.8
33.8
60.5
46.1
-15
13.5
0.50
16.3
20.3
7.3
16.3
20.3
7.3
Total
100.0
100.0
100.0
100.0
Head Grade (calculated)
0.41
Head Grade (measured)
0.43
Variance
4.10%
Source:
 
Mintek, 2015
The presence of preg-robbers in the tailings material can be ascertained
 
from the above results. Preg-robbing is the phenomenon whereby the gold
cyanide complex, Au(CN)
2
, is removed from solution by the constituents of the ore. The preg-robbing
 
components may be the carbonaceous matter
present in the ore, such as wood chips, organic carbon, or other impurities, such as elemental carbon.
The actual content
 
of the preg-robbers
 
in the samples
 
seems to vary
 
from 0% up
 
to 10% in
 
certain samples. This pattern
 
is consistent with
 
results
from similar operations and is a function of the nature of the material being re-mined. In particular, areas on a TSF which contain organic matter and
plants (i.e., side walls, reed beds etc.) will have elevated preg-robbing content. It is therefore an established practice to design
 
a plant with a Carbon-
in-Leach (CIL) system and not a
 
Carbon-in-Pulp (CIP) system. The process design
 
does allow for CIL to mitigate the
 
impact of preg-robbers on recovery
potential.
The recoveries in Table 7 are underpinned by test work
 
and records from the currently throughput of Driefontein 5
 
at the DP2. FWGR also actively
 
try
to
 
liberate
 
addition
 
gold
 
locked
 
in
 
silicates
 
through
 
additional fine
 
grinding
 
at
 
DP2
 
to
 
enhance overall
 
recoveries.
 
This
 
possibility
 
for
 
improved
recoveries is
 
supported by
 
the fact
 
that approximately
 
30% of
 
the contained
 
gold is
 
found in
 
the coarse
 
fractions (>106µm).
 
Historically the
 
most
favorable liberation
 
on Witwatersrand Basin
 
gold bearing ores have
 
been achieved at grind
 
sizes of <75µm.
 
Both the diagnostic leach and
 
assay by
size results confirm the need to mill the coarse fractions in order to improve recovery.
Based on the test
 
work, Sound Mining’s
 
QP is comfortable
 
that the following
 
processing recoveries are
 
achievable on the
 
various TSF feed
 
sources
(Table 7).
Table 7: Summary of Process Recovery Potential
TSF
Process Recovery
(%)
Driefontein 5
49.8
Driefontein 3
56.6
Kloof 1
50.5
Libanon
47.2
Venterspost North
54.7
Venterspost South
62.5
Source:
 
Sound Mining,
 
2022; and FWGR, 2020
10.2.
 
Concluding Comments
The initial
 
metallurgical test
 
work, sampling
 
and bulk
 
sample trials
 
used to
 
support the
 
Mineral Resource
 
estimates and
 
feasibility study
 
work is
considered by
 
the QP
 
to reasonably
 
represent the
 
deposit as
 
a whole.
 
The processing
 
of the
 
Driefontein
 
5 TSF
 
has provided
 
the QP
 
with further
confidence in that the actual metallurgical recoveries have been consistent with the initial forecast.
 
exhibit961p2i0
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11.
 
MINERAL RESOURCE ESTIMATES
Item 11 (i); (ii); (iii); (iv); (v); (vi) and (vii)
The original
 
Mineral Resource
 
estimates of
 
2009 were
 
confirmed by
 
Sound Mining
 
in 2020.
 
Sound Mining
 
independently reviewed
 
the database,
geological models, estimation methodology and
 
classification criteria. Sound Mining concluded
 
that the estimations are based on
 
a suitable database
of reliable information and that no material
 
issues were found which could affect
 
the overall estimate. The density assumption used for
 
the various
TSFs
 
in the
 
2018 Mineral
 
Resources
 
estimate was
 
1.40t/m
3
. It
 
has since
 
been revised
 
to 1.42t/m
3
 
following FWGRs
 
data from
 
the mining
 
of the
Driefontein 5 TSF. Geological losses are not
 
applied because the
 
entire volume of a TSF
 
will be processed
 
once included into FWGR’s Mineral Resource
base for future exploitation.
11.1.
 
Geological Models and Interpretation
TSFs constructed from the tailings of Witwatersrand
 
gold mining operations have been successfully and economically exploited
 
for decades and the
geotechnical and geometallurgical
 
characteristics are well
 
understood from
 
experience and test
 
work on the
 
FWGR assets themselves.
 
Apart from
the potential risks identified in Item 12.1,
 
no factors of a geotechnical or
 
geometallurgical nature have been identified that would
 
have a significant
effect on the prospects for
 
eventual economic extraction.
The exploration
 
database has
 
been demonstrated
 
to comprise
 
analytical data
 
obtained from
 
reliable laboratory
 
assays on
 
samples obtained from
sampling and drilling programs based on industry best practice. The drillhole grid spacing is comparatively close for typical TSF drilling programs and
the entire depth of each
 
TSF was sampled. The data density
 
is therefore considered sufficient to assure continuity of
 
mineralization and structure and
provides an adequate basis for estimation.
The exploration database was imported into DataMineTM Studio 3 software and data
 
validation was undertaken to ensure the integrity and validity
of the imported
 
data. The samples
 
for Driefontein
 
3 TSF
 
and Driefontein 5
 
TSFs represent
 
3.0m composite samples
 
and not 1.5m
 
composites. The
samples from all
 
of the other
 
TSFs were
 
1.5m in length.
 
The end of
 
the drillhole sample, where
 
it contained footwall
 
material, was
 
separated into
tailings and footwall material and treated separately by the laboratory.
Three dimensional
 
wireframes
 
were constructed
 
from surveyed
 
data and
 
drillhole information.
 
The top
 
wireframe
 
surface for
 
the Driefontein
 
3,
Driefontein 5, Kloof 1, Libanon, Venterspost North and South
 
TSFs were constructed from LIDAR data. The base/footprint wireframe was constructed
from the soil
 
intercept depths from
 
the drillhole data
 
and the footprint
 
perimeter. The wireframes comprised simple
 
3D representations of
 
the volume
of the TSFs and as such are not open to alternative interpretations.
11.2.
 
Estimation Methodology
Ordinary Kriging was undertaken for
 
the gold grade estimation which allows
 
for testing of the accuracy
 
and efficiency of the estimation. Due
 
to the
construction of the TSFs
 
and potential gold
 
remobilization, a spatial
 
grade distribution was
 
anticipated and since
 
Kriging is based
 
on modelling the
spatial variances within an orebody, this method was considered the most reliable and accurate.
The capping of anomalously high-grade values was
 
only applied to Driefontein 5 TSF and Kloof 1 TSF These
 
capping values were determined from the
probability plots generated for
 
each TSF.
 
Capping in the variography
 
stage of the estimation
 
limits the excessive
 
variances of the anomalously high
grade from skewing
 
the distribution away
 
from the representative
 
variance of the
 
data distribution. Capping
 
in the Kriging stage
 
limits the zone
 
of
influence that the ultrahigh grades have on the estimation of the surrounding areas. This is considered an appropriate method of data handling.
The following parameters were applied in the Kriging process:
●
50m-by-50m-by-3m
 
block
 
size
 
as
 
derived
 
from
 
100m-by-100m
 
drillhole
 
spacing
 
and
 
1.5m
 
sample
 
lengths
 
for
 
Driefontein
 
5,
Driefontein 3, Kloof 1, Libanon, Venterspost North and South TSFs;
●
sub-cells employed at a minimum of 10m-by-10m (X and Y) for each TSF;
●
first search volume (SVOL1):
­
X and Y at approximately the variogram range;
­
Z search volume
 
was in general
 
the downhole variogram
 
range equating to
 
a search of
 
6m. Given the
 
stratified nature of the
 
TSFs an excessive
search in the vertical direction could result in smearing of grades vertically;
­
minimum of 12 samples within the search volume one (SVOL1); and
exhibit961p2i0
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60
­
maximum of 40 samples within the search volume one (SVOL1).
●
second search volume (SVOL2):
­
approximately 1.5 times the first search volume;
­
minimum of four samples within the search volume; and
­
maximum of 40 samples within the search volume.
The
 
spatial
 
relationships
 
of
 
the
 
sample
 
grades
 
were
 
investigated
 
with
 
variograms.
 
Both
 
downhole
 
and
 
planar
 
variograms
 
were
 
calculated
 
and
modelled. The aim
 
of the downhole
 
variograms was
 
to determine a
 
nugget value and
 
the applicable vertical
 
range of
 
continuity,
 
whilst the planar
variogram used the nugget value determined from the downhole variogram. The anisotropy (the difference, when measured along different axes, in
a
 
material's
 
physical
 
or mechanical
 
properties) for
 
gold
 
in each
 
TSF
 
was
 
investigated.
 
The
 
variograms
 
were
 
deemed best
 
represented
 
by
 
omni-
directional models and the variogram parameters are shown in Table 9.
The vertical
 
(i.e., Z)
 
range
 
of the
 
planar variogram
 
model is
 
replaced by
 
the range
 
determined from
 
the downhole
 
variogram.
 
Where
 
necessary
(Driefontein 5 TSF and Kloof 1 TSF) both the downhole and planar variograms were conducted using top-cuts, determined from the probability plots
generated for each element for each TSF.
11.3.
 
Mineral Resource Classification
The applied Mineral Resource classification is
 
a function of the confidence of
 
the asset tenure and consideration
 
of the entire process from
 
drilling,
sampling, geological
 
understanding and
 
geostatistical relationships.
 
FWGR’s
 
legal tenure
 
is secured
 
through the
 
necessary permitting
 
required to
access
 
and
 
exploit
 
the
 
moveable
 
assets.
 
The
 
drilling,
 
sampling,
 
analytical
 
processes
 
and
 
governance
 
of
 
the
 
exploration
 
programs
 
have
 
been
appropriate and in-line with industry best
 
practice and are considered to be
 
of high confidence. The density used in the
 
conversion from volume to
tonnage has been determined from
 
both in situ measured values
 
and empirical data and
 
is considered reliable. In
 
addition, the following statistical
criteria were applied to the Mineral Resource classification:
●
number of samples used to estimate a specific block:
­
Measured - at least four drillholes within the variogram range and minimum of twenty 1.5m composited samples;
­
Indicated - at least three drillholes within the variogram range and a minimum of twelve 1.5m composite samples;
­
Inferred - less than three drillholes within the variogram range.
●
distance to sample (variogram range):
­
Measured - within at least 60% of variogram range;
­
Indicated - within variogram range;
­
Inferred - further than variogram range.
●
lower confidence limit (blocks):
­
Measured - less than 20% from mean (80% confidence);
­
Indicated - 20% to 40% from mean (80% to 60% confidence);
­
Inferred - more than 40% (less than 60% confidence).
●
Kriging efficiency:
­
Measured - more than 40%;
­
Indicated - 20% to 40%;
­
Inferred - less than 20%.
●
Kriged variance - a relative parameter used in conjunction with the other criteria.
●
deviation from lower 90% confidence limit (data distribution within the Mineral Resource area considered for classification):
­
Measured - less than 10% deviation from the mean;
­
Indicated - 10% to 20%;
­
Inferred - more than 20%.
In accordance with the criteria noted above all of the TSF Mineral Resources were classified as Measured Mineral Resources.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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11.4.
 
Mineral Resource Verification
The following data was received, interrogated, and verified by Sound Mining (Table 8).
Table 8: Data Interrogated per TSF
TSF
De-surveyed DataMine
TM
Borehole File
Final Block Model
Report
Driefontein 5
compall1_au_u_s.dm
dr5_krig_all fin.dm
Minxcon 2009 updated by Sound Mining 30 June 2022
Driefontein 3
compall.dm
drth_krig_allfinal2b.dm
Minxcon 2009
Kloof 1
compall.dm
kl1_krig_all_final3c.dm
Minxcon 2009
Libanon
compall1.dm
lib_krigall1_2010c.dm
Minxcon 2009
Venterspost North
BHA.dm
vn_krig_all1_fin2d.dm
Minxcon 2009
Venterspost South
COMPALL1.dm
vs_krig_all1_final2c.dm
Minxcon 2009
Source:
 
Sound Mining, 2022
No original laboratory assay reports were received for the TSFs for verification of the
 
assay results; however, it must be noted that head grade assays
of the
 
Driefontein
 
5 TSF
 
correspond with
 
that expected
 
from the
 
Mineral Resource
 
model. An
 
interrogation
 
of the
 
stated
 
modelling parameters
yielded acceptable
 
results
 
and
 
demonstrate
 
that the
 
variography
 
and
 
parameters
 
used in
 
the Kriging
 
process are
 
reasonable (Table
 
9).
 
The
 
QP
concludes that the
 
reported Mineral
 
Resource estimation methodologies
 
and interpretations
 
are reasonable and
 
can be relied
 
upon to reflect
 
the
Mineral Resource base for FWGR.
Table 9: Variogram
 
Parameters
TSF
Parameter
Domain
Sill
Nugget
Sill 1
X1 Range
Driefontein 5
Au
1
0.029
0.180
68.51
124
Driefontein 3
Au
1
0.024
0.280
91.47
134
Kloof 1
Au
1
0.008
0.560
82.82
120
Libanon
Au
1
0.018
0.450
91.59
130
Venterspost North
Au
1
0.025
0.290
90.98
123
Venterspost South
Au
1
0.020
0.290
75.80
117
TSF
Y1 Range
Z1 Range
Sill 2
X2 Range
Y2 Range
Z2 Range
Driefontein 5
124
6
100
545
545
6
Driefontein 3
134
6
100
655
655
6
Kloof 1
120
6
100
406
406
6
Libanon
130
10
100
522
522
10
Venterspost North
123
10
100
385
385
10
Venterspost South
117
6
100
272
272
6
Source:
 
Minxcon, 2009
11.5.
 
Cross-sections and Grade Distribution
Cross-sections and
 
grade
 
distribution through
 
each TSF
 
are provided
 
in
 
Figure 13
 
to Figure
 
18. The
 
Driefontein
 
5 TSF
 
has been
 
reclaimed since
December
 
2018
 
and
 
the
 
cross-section
 
presents
 
the
 
depleted
 
TSF
 
as
 
at
 
30
 
June
 
2022.
 
The
 
other
 
TSFs
 
have
 
not
 
yet
 
been
 
reclaimed.
Driefontein
 
5
 
TSF
 
and
 
Driefontein
 
3
 
TSFs
 
have
 
the
 
highest
 
average
 
grade
 
of
 
0.47g/t
 
Au,
 
with
 
isolated
 
sections
 
up
 
to
 
0.80g/t
 
Au
 
to
1.05g/t Au. Driefontein 3 TSF
 
and Venterspost North
 
TSF show a clear
 
trend where grade increases
 
with depth, whilst Driefontein
 
5 TSF appears to
have no such pattern. Kloof 1
 
TSF and Libanon TSF show a
 
slight increase in grade with depth, whilst
 
the opposite is the case for
 
Venterspost South
TSF where grades
 
increase quite markedly
 
towards the surface.
 
Libanon TSF and
 
Venterspost North
 
TSF display the
 
lowest average
 
grades but are
both fairly large deposits of 74.3Mt and 55.3Mt respectively.
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Figure 13: Cross-sections and Grade Distribution - Driefontein 5 TSF
Source:
 
Sound Mining,
 
2022
 
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Figure 14: Cross-sections and Grade Distribution - Driefontein 3 TSF
Source:
 
Sound Mining,
 
2022
 
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Figure 15: Cross-sections and Grade Distribution - Kloof 1 TSF
Source:
 
Sound Mining,
 
2022
 
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Figure 16: Cross-sections and Grade Distribution - Libanon TSF
Source:
 
Sound Mining,
 
2022
 
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Figure 17: Cross-sections and Grade Distribution - Venterspost North TSF
Source:
 
Sound Mining,
 
2022
 
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Figure 18: Cross-sections and Grade Distributions - Venterspost South TSF
Source:
 
Sound Mining,
 
2022
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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11.6.
 
Reasonable and Realistic Prospects
 
for Economic Extraction
Both Mineral Resources and Mineral Reserves for FWGR are determined by the average grade of a TSF which must be above or equal to a plant feed
cut-off grade.
 
The assumptions
 
on a
 
Mineral Resource
 
cut-off include
 
working costs,
 
the average
 
plant recovery,
 
the expected
 
residue grade,
 
the
required yield based on working cost and gold price.
The cut-off assumptions for FWGR (Item 13.2)
 
have been based on the
 
experience of FWGR from its current
 
(i.e., Phase 1) operations. The capital
 
and
operational costs
 
of the
 
infrastructure and
 
mining equipment have
 
been estimated at
 
a PFS
 
level of accuracy
 
and all
 
services including water
 
and
power are current and appropriately priced.
A real gold price of ZAR914,294/kg was used
 
in the estimation of the Mineral Resources and Mineral Reserves as
 
of June 2022. The QP is comfortable
with this price assumption in
 
the context of
 
the long-term consensus pricing
 
used by FWGR for
 
its LoM and annual business
 
planning. These prices
are based on information received from various independent sources.
The economic assessment provided in this TRS
 
demonstrates positive margins and
 
confirms reasonable prospects for eventual
 
economic extraction
for all FWGRs TSFs at an
 
average cut-off grade
 
of 0.15g/t. The average grades of the TSFs
 
included in the Mineral Resource statement
 
are therefore
all above 0.15g/t. This means that the
 
Mineral Resources when stated
 
exclusive of Mineral
 
Reserves will amount to
 
zero because all of
 
the Mineral
Resources will be exploited and converted to Mineral Reserves.
The QP is of the opinion that reasonable technical and economic factors have been considered and that there are reasonable and
 
realistic prospects
for economic extraction of the Mineral Resources as at 30 June 2022.
There are no permitting risks in relation to mineral title with regard
 
to eventual extraction. Security of tenure for eventual extraction
 
is premised on
common law
 
ownership and
 
EAs. Access
 
to the
 
moveable assets
 
has been
 
provided in
 
the “Use
 
and Access
 
Agreement” with
 
Sibanye Gold.
 
The
granting of the necessary environmental authorizations and permits to continue operations are in place.
 
11.7.
 
Mineral Resource Estimation
FWGR currently owns six
 
TSF assets totaling
 
229.4Mt with a total
 
gold content of
 
76.39t. All Mineral Resources
 
estimates fall within
 
the Measured
Mineral Resource category. Table
 
10 presents the Mineral Resource estimate for FWGR as at 30 June 2022.
 
Table 10: Mineral Resource Estimate for FWGR as at 30 June 2022
TSF
Volume
('000m
3
)
Density
(t/m
3
)
Quantity
(Mt)
Grade
(g/t)
Content
(t)
Content
(koz)
Driefontein 5
5,685
1.42
8.07
0.48
3.85
124
Driefontein 3
35,540
1.42
50.47
0.47
23.71
762
Kloof 1
19,931
1.42
28.30
0.33
9.20
296
Libanon
52,351
1.42
74.34
0.27
20.23
650
Venterspost North
38,954
1.42
55.31
0.27
15.16
487
Venterspost South
9,068
1.42
12.88
0.33
4.24
136
Total Mineral Resource Estimate
161,529
1.42
229.37
0.33
76.39
2,456
Source:
 
Sound Mining, 2022
Notes:
 
Apparent computational errors
 
due to rounding
 
All of these Mineral Resources
 
are above the cut-off grade of 0.15g/t
 
These Mineral Resources are stated
 
inclusive of Mineral Reserves
 
Mineral Resources, if stated
 
exclusive of Mineral Reserves,
 
would equate to zero
 
In situ Mineral Resource estimate
 
reported according to S-K 1300 requirements
 
No geological losses applied
The Mineral Resources in Table 10 are inclusive of Mineral Reserves. As the entire TSF is mined, Mineral Resources exclusive of Mineral Reserves will
be zero. It accounts
 
for the revised bulk
 
density of 1.42t/m
3
 
and caters for the
 
depletion of the
 
Driefontein 5 TSF through
 
hydro-mining from December
2018 until 30 June 2022.
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
69
11.8.
 
Additional Mineral Resources
Once decommissioned, FWGR is contractually entitled to receive the Driefontein 1, Driefontein 2 and Kloof 2 TSFs from Sibanye Gold as a part of the
2018 Exchange Agreement. These represent growth options available for FWGR
 
to extend the LoM, but do not form part of FWGR’s
 
current Mineral
Resource. In addition to these currently available TSFs, the area hosts other potentially available TSFs.
11.9.
 
Concluding Comments
Upon interrogation of
 
borehole and production
 
data, Sound Mining
 
observes the continuation of
 
gold grade
 
beyond the TSF
 
material and into
 
the
footwall. This grade does not form part of the Mineral Resource estimation.
No geological losses have been applied as the entire volume of the TSF will be mined.
The initial TSF
 
Mineral Resources were
 
estimated by Minxcon
 
2009, confirmed by
 
Sound Mining through
 
remodeling of the
 
TSFs in
 
2018 and then
updated and now
 
restated in 2022.
 
The Driefontein 5
 
TSF has been
 
depleted through reclamation
 
and Sound Mining
 
has updated the
 
Mineral Resource
estimate as at 30 June 2022.
The QP is of the opinion that there are no material risks which are expected to hinder the prospects for reasonable and realistic economic extraction
of the Mineral Resources.
 
Both the actual recoveries
 
and grades may
 
differ to those
 
used for the Mineral
 
Resource estimate during
 
exploitation of
the TSFs, but experience from the reclamation of the Driefontein 5 TSF
 
suggests that in that these variations are unlikely to be material. The QP also
notes that the underlying geology from which the TSFs are comprised, is similar and does not expect significant variation.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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12.
 
MINERAL RESERVE ESTIMATES
Item 12 (i); (ii); (iii); (iv); (v) and (vi)
The Mineral Reserves were prepared in accordance with the requirements of S-K 1300 (Table 11) and at a real gold price of ZAR914,294/kg.
The QP is comfortable with the use of this long-term pricing assumption of FWGR which it has used for both LoM and
 
annual business planning. The
forecast price
 
assumption is based
 
on information
 
provided by
 
various independent
 
institutions that do
 
commodity forecasting.
 
ZAR914,294/kg is
considered
 
a
 
reasonable
 
representation
 
of
 
the
 
price
 
to
 
be
 
expected
 
over
 
the
 
20-year
 
LoM
 
in
 
real
 
30
 
June
 
2022
 
terms.
 
The
 
operation
 
remains
economically viable above a gold price of ZAR721,264/kg (Item 16.1).
A LoM plan
 
and mining schedule
 
was developed by
 
FWGR and modified
 
by Sound Mining,
 
as outlined
 
Item 13.2. The
 
LoM plan was
 
tested for economic
viability in the DCF model which indicated a positive cashflow through to the end of LoM.
No mining
 
losses or
 
dilution are
 
applied in
 
determining the
 
Mineral Reserve
 
estimates
 
because the
 
TSFs
 
are re-mined
 
and re-processed
 
in their
entirety. All other modifying factors are captured in
 
the mine design together with all of the associated technical aspects that inform the capital and
operating cost estimates.
FWGR’s six TSF assets convert to a total Mineral Reserve of 229.4Mt with a gold content of 76.39t.
Table 11: S-K 1300 Compliant Mineral Reserve Estimate as at 30 June 2022
TSF
Volume
('000m
3
)
Density
(t/m
3
)
Quantity
(Mt)
Grade
(g/t)
Content
(t)
Content
(koz)
Driefontein 5
5,685
1.42
8.07
0.48
3.85
124
Driefontein 3
35,540
1.42
50.47
0.47
23.71
762
Kloof 1
19,931
1.42
28.30
0.33
9.20
296
Libanon
52,351
1.42
74.34
0.27
20.23
650
Venterspost North
38,954
1.42
55.32
0.27
15.16
487
Total Proved Mineral Reserve
152,461
1.42
216.49
0.33
72.15
2,320
Venterspost South
9,068
1.42
12.88
0.33
4.24
136
Total Probable Mineral Reserve
9,068
1.42
12.88
0.33
4.24
136
Total Mineral Reserve Estimate
161,529
1.42
229.37
0.33
76.39
2,456
Source:
 
Sound Mining, 2022
Notes:
 
Apparent computational errors
 
due to rounding and are not considered
 
significant
 
Mineral Reserves are reported using
 
a dry density of 1.42t/m
3
 
and at the head grade on delivery to the plant
 
The Mineral Reserves constitute
 
the feed to the gold plants
 
The Mineral Reserves are stated
 
at a price of ZAR914,294/kg
 
A cut-off grade of 0.15g/t is applicable to the
 
FWGR LoM plan
 
Although stated separately,
 
the Mineral Resources are inclusive
 
of Mineral Reserves
 
Venterspost South
 
TSF is classified as a Probable Mineral Reserve
 
due the level of uncertainty regarding
 
the processing recovery
 
Uranium has been excluded in the Mineral
 
Reserve estimate as it is not being recovered
 
by FWGR
 
Grade and quantity measurements are
 
reported in metric units (Mt) rounded
 
to two decimal places
 
The input studies are to a PFS level
 
of accuracy
 
The
 
Mineral
 
Reserve
 
estimates
 
contained
 
herein
 
may
 
be
 
subject
 
to
 
legal,
 
political,
 
environmental
 
or
 
other
 
risks
 
that
 
could
 
materially
 
affect
 
the
 
potential
development of such
 
Mineral Reserves
12.1.
 
Risk to the Mineral Reserve Estimate
Uncertainties associated with the FWGR
 
operations, and therefore the Mineral Resource and Mineral Reserve
 
estimates, are can be mitigated. Sound
Mining has not
 
exposed any fatal
 
flaws or
 
technical risks to
 
the successful execution
 
of the LoM
 
plan and the
 
QP does not
 
anticipate any
 
material
changes to the associated modifying factors.
 
The uncertainties requiring comment in the context of their impact on these estimates
 
are:
●
Mining:
 
whilst the mining method and practices are well established and conducted by experienced hydro-miners,
 
throughput could be affected
by a variety of issues, including, but not limited to availability of electricity
 
and water.
 
●
Quality of the
 
Mineral Assets:
the six TSFs
 
that comprise the
 
Mineral Reserve have
 
all been adequately
 
drilled, their likely
 
content adequately
assessed and recovery test work satisfactorily completed. The actual recoveries will be influenced by the actual RoM grade
 
entering DP2 and the
amount of carbon (elemental and/or organic) in the RoM. This risk could be managed by blending material from different TSFs’, where possible.
exhibit961p2i0
DRAFT
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(Proprietary) Limited
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71
●
Plant Performance:
the management of the
 
risk of a lower-than-expected overall throughput
 
recovery can be mitigated by ensuring
 
optimal grind
sizes at the DP2 facility.
 
●
RTSF Design
 
Risk:
the QP considers
 
the main design
 
risk of the
 
RTSF to
 
be the effectiveness
 
of the proposed
 
scavenger well
 
system to
 
contain
future groundwater plumes. This system replaces the use of a
 
synthetic liner,
 
installed at the base of the RTSF to create a
 
third ‘perched’ aquifer
above the
 
current weathered
 
zone
 
aquifer.
 
It provides
 
an elegant
 
solution to
 
pollution containment
 
and has
 
been demonstrated
 
to
 
operate
successfully on other South African TSFs.
●
Delayed Commissioning of Key
 
Infrastructure:
 
any delays to
 
the scheduled commissioning of the
 
Leeudoorn TSF,
 
RTSF or expanded processing
capacity of DP2 will impact on the proposed production forecast and anticipated revenues. Sound Mining is of the opinion, with the exception of
the permitting
 
and licensing
 
process currently underway
 
for the RTSF, that in
 
the absence
 
of unforeseen circumstances,
 
delays to key infrastructure
are unlikely and notes that the current LoM plan only requires the RTSF by 2030.
●
Water
 
Supply:
 
South Africa
 
is a
 
relatively dry
 
area and
 
predictions are
 
that dry
 
conditions will
 
escalate. Mining
 
is heavily
 
reliant on
 
water
 
to
transport material over large distances and for processing. FWGR uses potable water for potable usage and not mining operations. Process water
is secured through a combination
 
of harvested return water from the treated tailings
 
and dewatering from local shaft systems and local
 
wellfields.
●
Power Supply:
 
power is provided
 
by the
 
national power supplier,
 
Eskom. The
 
national power supply
 
and distribution infrastructure
 
is severely
destressed and this results in frequent disruptions to the power delivered to the South African mining industry. There is a curtailment agreement
in place with Eskom which requires
 
that during black-outs electricity
 
use is to be curtailed, which
 
is typically achieved by shutting down
 
the milling
section. Diesel generators are used to restart the plant.
Sound Mining
 
understands that
 
no alternative
 
power supply
 
arrangements are
 
currently in
 
place at
 
FWGR and
 
as such
 
consider the
 
threat of
production losses resulting from power disruption to represent a significant production risk.
●
Grave
 
Relocation:
the process
 
of grave
 
relocation
 
is well
 
understood
 
in the
 
South African
 
mining industry
 
and
 
supported by
 
comprehensive
statutory
 
guidelines. It
 
will
 
be
 
managed
 
by
 
FWGR
 
specialists who
 
will
 
ensure
 
that
 
full
 
consultation
 
with
 
next
 
of
 
kin
 
is
 
undertaken
 
and
 
that
appropriate compensation is realized.
●
Long-term Sustainability:
 
the RTSF design and
 
capacity caters for
 
the long-term sustainability of
 
FWGR which includes the
 
potential increase in
production rates above 1.2Mtpm. Continued production beyond the current LoM plan and Mineral Reserve estimate relies on available TSFs that
can be brought on line in
 
the future. There is ample time
 
for additional sampling and resource modelling
 
to confirm their extent and content prior
to production
 
and the
 
three currently
 
available TSFs
 
envisaged by
 
FWGR’s
 
long-term operational
 
aspirations, are
 
controlled by
 
Sibanye Gold.
Sound Mining do not envisage any future security of tenure complications arising from the inclusion of these TSFs in the overall LoM plan.
●
Extreme Weather:
 
As a result of
 
climate change, extreme
 
weather events such as
 
droughts, extreme rainfall
 
and high wind volumes
 
are on the
increase. Specifically, the
 
increase in intensity of events,
 
such as thunderstorms on
 
the Highveld, where the
 
operations are situated, will
 
impact
operations. Major property, infrastructure
 
and/or environmental damage as well as
 
loss of human life could also be caused by
 
extreme weather
events.
●
Rising
 
Costs:
 
The
 
global
 
economic
 
environment,
 
geopolitical
 
tensions
 
and
 
inflationary
 
pressures
 
world-wide
 
have
 
led
 
to
 
above
 
inflationary
increases in production costs as well as an unavailability of critical material such as reagents and critical equipment which effects production and
operating costs. FWGR remains a relatively low-cost operation however a pro-longed period of high inflation will erode financial value over time.
●
Gold Price:
 
FWGR takes full exposure to the gold price,
 
and therefore a reduction in the price of
 
gold may erode margins or lead to the
 
operations
making a loss.
 
For additional information regarding the Company’s risks, see Item 3D of the Form 20-F.
 
exhibit961p2i0 exhibit961p72i0
 
 
 
 
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13.
 
MINING METHOD
Item 13 (i); (ii); (iii); (iv) and (v)
The mining
 
method is
 
hydro-mining (or hydraulic mining),
 
which uses high-pressure
 
water monitors to
 
deliver a high-pressure
 
water jet to
 
hydraulically
repulp and mobilize
 
tailings material within
 
the TSFs. The water
 
from the monitors mixes
 
with the tailings
 
and forms a slurry
 
with a high
 
solids content.
The slurry flows under gravity along channels
 
at the base of the dump to a collection
 
sump at the lowest elevation of the bench being
 
mined. Screens
are installed to remove debris, which must be cleaned regularly to prevent an impact on the pumping operations.
The monitors comprise
 
of 200mm self-propelled
 
track monitor guns
 
(Photograph 1),
 
each with production rates
 
of up to
 
300ktpm. They discharge
approximately 500m
3
/hr of water at pressures up to 30bar through a variable sized nozzle depending on the hardness of the material being slurried,
and can be controlled remotely by the operator. In order to minimize hydraulic pressure losses and poor
 
reclamation gun efficiencies, water pressure
is designed to reach the monitor guns at a minimum pressure of 25bar.
Photograph 1: Monitor Gun
Source:
 
FWGR, 2020
The prerequisites for hydro mining are limited to
 
the infrastructure discussed in Item 14 and Item 15. Pre-stripping and
 
backfilling processes are not
applicable to this mining method.
Early forms of hydraulic mining were adapted from methods developed in the United Kingdom for the mining of primary kaolin deposits. These early
attempts used a high-pressure monitor located at the base of the TSF to
 
wash material from the base of the slope. A disadvantage of this
 
approach is
that by directing the
 
water jet at
 
the base of the
 
slope, the slope is undercut
 
and can become unstable,
 
leading to uncontrolled slope
 
failure. With
sufficient off-set distance between the slope and
 
the monitor and/or monitor operator,
 
this is not necessarily a problem, however,
 
given that many
of the tailings
 
dams that are
 
available for
 
reprocessing are
 
located in urban
 
locations, a safer
 
system of
 
monitor operation has
 
subsequently been
developed.
 
The
 
majority
 
of
 
tailings
 
dams
 
that
 
have
 
been
 
mined
 
in
 
the
 
last
20 years have utilized
 
a monitor located on
 
the upper bench of the
 
tailings dam, directing a water
 
jet downwards to cut
 
a stable slope surface
 
into
the face
 
of the
 
TSF.
 
This approach
 
has been successfully
 
applied within densely
 
populated urban
 
areas. It
 
is considered
 
safer
 
and allows
 
for rapid
changes in slope angles to cope with
 
any operational variances that may
 
be encountered. The resulting slopes
 
usually consists of a 15m
 
high bench
with a
 
45º to
 
50º slope angle.
 
High faces
 
with consistent
 
slope angles can
 
be formed
 
using the
 
top-down hydraulic
 
mining technique as
 
shown in
Figure 19 and Figure 20.
 
exhibit961p2i0 exhibit961p73i1
 
 
 
 
exhibit961p73i0
 
 
 
 
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Figure 19: Mining Methodology
Source:
 
Sound Mining, 2022
Figure 20: Mining Widths
Source:
 
Sound Mining, 2022
Increased production
 
is achieved
 
by
 
the inclusion
 
of additional
 
units and
 
this modular
 
approach provides
 
a high
 
degree of
 
flexibility that
 
allows
simultaneous mining at a number of points over a wide range of production rates and consequently, grade blending is readily achievable if required.
The slurry density produced by the monitors is controlled by the operator.
 
Actively moving the monitor and consistently cutting the face results in a
slurry with relatively
 
high solids
 
content. Experience
 
from FWGR’s
 
ongoing operations
 
has demonstrated
 
that slurries
 
with 35%
 
to 50%
 
solids can
consistently be achieved. The monitor guns seek to maintain optimal slurry densities in the region of 1.42t/m
3
.
The TSFs
 
consist of fine
 
tailings material,
 
with a typical
 
particle size
 
of 70% <75µm.
 
Relatively flat flow
 
channels will develop
 
with gradients
 
in the
order of 1:100m. The position of the sump will change as mining proceeds along a bench,
 
to limit the distance between the monitor and the sump. If
too far from the active face, tailings material may drop out of suspension and reduce the solids content
 
of the slurry pumped to the plant. However,
the slurry
 
tends to flow
 
at a natural
 
beaching angle which
 
is generally self-correcting.
 
If the slope
 
gets too steep,
 
flow velocities increase
 
in the channels
causing erosion until
 
the equilibrium slope
 
is attained.
 
If the
 
slope is
 
too flat
 
the solids settle
 
out reducing
 
the height of
 
the mining
 
face until
 
the
equilibrium slope is achieved (Figure 20). A monitor gun dislodges the in situ material which washes into slurry channels
 
(Photograph 2).
 
exhibit961p2i0 exhibit961p74i0
 
 
 
 
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Photograph 2: Monitor Gun in Operation
Source:
 
FWGR, 2022
The slurry flows through the
 
channel and passes through screens
 
to remove debris which
 
may cause blockages in
 
the pipeline. After screening, the
slurry collects in the sump and is pumped to the plant for processing. Slurry densities
 
are maintained at approximately 1.42t/m
3
, for optimal pipeline
performance.
13.1.
 
Mining Plan and Layout
Hydro-mining and the re-deposition of tailings is a specialized activity and is accordingly outsourced by FWGR to competent and experienced service
providers. The hydro-mining performance assumptions used are based on
 
the current operations where the method has been
 
successfully “tried and
tested”. The equipment requirements, manning complements and necessary supporting infrastructure, in terms of water and power supply, are well
understood and have been accurately planned by both FWGR and their current service provider.
 
No untested technical assumptions with regards to
the mining have been made.
Monitors remove the
 
tailings material from
 
the top of
 
a TSF to
 
the natural ground
 
level in 15m
 
layers. The monitor
 
is positioned on the
 
top of the
working bench to direct the water jet down into the TSF. It will work the face in one
 
direction along the front edge of the dam before returning in the
opposite direction when
 
it reaches
 
the far
 
end of
 
the dam.
 
As the
 
mining faces
 
advance, slurry is
 
directed via
 
launders to
 
a pit
 
pump which
 
then
transfers the slurry to a fixed transfer pump station that includes a vibrating trash screen.
A stepped
 
bench approach
 
is adopted
 
to most
 
efficiently reclaim
 
the TSF
 
while maintaining
 
slope stability.
 
Horizontal benches
 
of 100m
 
to 200m,
inclusive of the face angle,
 
are created to maintain safe working distances between
 
simultaneous operations at different bench elevations. The
 
layout
is illustrated in a schematic cross-section (Figure 21).
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p75i0
 
 
 
 
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Figure 21: Mining Sequencing
Source:
 
Sound Mining, 2022
The top and second layers progress simultaneously until a safe distance (~200m) for
 
the third 15m layer is reached, and so forth until ground level is
reached and the entire TSF is reclaimed. As mining progresses and the footprint is exposed, the final layer is cleared, prepared and rehabilitated.
13.2.
 
Modifying Factors and Mining Schedule
No mining
 
losses or
 
dilution are
 
applied in
 
determining the
 
Mineral Reserve
 
estimates because
 
the TSFs
 
are re-mined
 
and re-processed
 
in their
entirety. All other modifying factors are captured in
 
the mine design together with all of the associated technical aspects that inform the capital and
operating cost estimates.
However, the QP has observed
 
from on-site inspections
 
of the mining
 
process that FWGR also
 
reclaims footwall material, where
 
deemed economically
viable. This practice could
 
imply the application of an
 
appropriate modifying factor in the
 
derivation of Mineral Reserves when not
 
part of the Mineral
Resource estimate. FWGR are keeping suitable records to assess the materiality of this practice on the Mineral
 
Reserve estimate and if material may
be included in future mineral Reserve estimates.
 
Table 12 reports the production as
 
scheduled from the FWGR’s owned TSFs.
 
It reveals a total recovered RoM
 
quantity of 229.37Mt at
 
an average head
grade of 0.33g/t. Table 12 also presents the average metallurgical recovery anticipated from each TSF.
Table 12: Scheduled RoM Production
TSF
Mineral Resource Category
RoM Quantity
(Mt)
In situ Grade
(g/t Au)
Recovery
(%)
Driefontein 5
Measured
8.07
0.48
49.9
Driefontein 3
Measured
50.47
0.47
56.6
Kloof 1
Measured
28.30
0.33
50.5
Libanon
Measured
74.34
0.27
47.2
Venterspost North
Measured
55.32
0.27
54.7
Venterspost South
Measured
12.88
0.33
62.5
Total
 
229.37
0.33
-
Source:
 
Sound Mining,
 
2022; and FWGR, 2020
The reclamation sequencing was designed in line with FWGR’s phased approach to increase production (Graph 1).
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p76i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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0
1,000
2,000
3,000
4,000
5,000
6,000
0
2
4
6
8
10
12
14
16
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
Financial Year
Gold Content (kg)
Production (Mt)
Financial Year
Driefontein No 5 Dump
Driefontein No 3 Dump
Kloof 1
Libanon
Venterspost North
Venterspost South
 
Gold Content
0
2
4
6
8
10
12
14
16
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
2051
Production (Mt)
Financial Year
Driefontein No 5 Dump
Driefontein No 3 Dump
Kloof 1
Libanon
Venterspost North
Venterspost South
Available TSFs
Graph 1: LoM Production Forecast
Source:
 
Sound Mining, 2022
Graph 2 demonstrates
 
an the Available
 
TSFs which are
 
included in
 
FWGR’s longer-term growth strategy and
 
which justifies
 
the envisaged RTSF capacity
and planned DP2 upgrade.
Graph 2: Potential LoM Production Forecast
Source:
 
Sound Mining, 2022
13.3.
 
Cut-off Grade
A cut-off grade has been computed for each of FWGR’s TSFs considering the assumed gold price,
 
anticipated recovery through the planned plant and
the expected operating costs. The results are presented in Table 13.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Table 13: Calculated Cut-off Grades
TSF
Cut-off Grade
(g/t)
Driefontein 5
0.19
Driefontein 3
0.16
Kloof 1
0.18
Libanon
0.20
Venterspost North
0.17
Venterspost South
0.15
Source:
 
Sound Mining, 2022
The cut-off grades for
 
the respective dumps range from
 
0.15g/t to 0.20g/t with an average of 0.18g/t. A cut-off grade
 
of 0.15g/t is applicable to the
FWGR LoM plan.
13.4.
 
Mining Contractor
The cost and
 
maintenance of the
 
mining equipment at
 
reclamation sites, employees
 
and other
 
operational resources are
 
for the operating
 
contractor’s
account. They are the subject of contractual agreements with FWGR. Initial capital is not required for the mining. The equipment (i.e., monitor guns)
supplied by the contractor is shown in Table 14.
Table 14: Mining Equipment Planned for each TSF
TSF
Steady State Production
(ktpm)
Required Units
(Number)
Driefontein 5
520
2
Driefontein 3
600
2
Kloof 1
600
2
Libanon
600
2
Venterspost North
600
2
Venterspost South
600
2
Source:
 
Sound Mining, 2022
The mining contractor currently relies on two active mining units with a third unit in transit to the next planned set-up position.
The operating cost estimate for the mining and re-deposition of tailings
 
is supported by actual operational figures. They are presented in the
 
working
cost estimates as “contractor costs”.
The capital expenditure estimates for the pipeline and pumping design to move the RoM material to the respective plants for processing and for the
return of the processed material (new arisings) for re-deposition, is provided in Item 18.
13.5.
 
Concluding Comments
Hydro-mining is an
 
existing “tried and
 
tested” process which
 
is well understood.
 
The contractor is
 
entitled to decide
 
on various operational
 
alternatives
and to deploy capital equipment
 
and manage costs. The QP has checked the
 
integrity of the mine design
 
and associated costs and is satisfied
 
with the
level of detail and accuracy of the study work completed. The selective mining of portions of a TSFs is not considered an option by Sound Mining.
From a
 
health and safety
 
perspective, hydro-mining
 
does not create,
 
but rather
 
ameliorates the
 
airborne dust problem
 
often associated
 
with fine
tailings material. Safe bench
 
heights are governed by the
 
material’s strength which is influenced by the
 
phreatic surface within a
 
TSF. These have been
dormant for many years and the
 
phreatic surface is expected to
 
be well below the surface of the dumps.
 
The drilling program to define the
 
Mineral
Resource did not encounter saturated zones or phreatic surfaces and so
 
the risk of slope failure or liquefaction is
 
considered to be low. Slope stability
is however
 
managed and
 
the hydrological
 
aspects affecting
 
the TSFs
 
are not
 
considered significant
 
to the
 
operation. There
 
is a
 
clean/dirty water
separation system with
 
emergency paddocks to
 
prevent any
 
spillage or run-off
 
from the facilities.
 
These assist in
 
preventing chocked screens
 
from
vegetation or heavy rainstorm events, where the runoff needs to be contained prior being pumped through the circuit back to the TSF.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
78
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Production (tpm)
Month
Production (FY 2022)
Production (FY 2021)
Production (FY 2020)
Capacity
14.
 
PROCESS AND RECOVERY METHODS
Item 14 (i); (ii); (iii) and (iv)
An expansion
 
of the
 
currently operating
 
DP2 processing
 
plant is
 
planned to
 
facilitate
 
an increase
 
in processing
 
throughput from
 
the current
 
TSF
Mineral Reserve inventory.
14.1.
 
Existing DP2 Processing Facility
Phase 1 of FWGR’s
 
long-term growth strategy required
 
that the original Driefontein Plant
 
2 (DP2) be modified and refurbished
 
to accommodate up
to 600ktpm of
 
RoM slime from
 
the TSFs.
 
This has been
 
accomplished but with a
 
throughput constraint
 
of approximately
 
500ktpm imposed by
 
the
maximum deposition rate for new arisings onto the Driefontein 4 TSF.
 
Based on current deposition rates, this TSF is due to reach its storage capacity
at the end of 2025.
 
The Phase 1 work
 
on the plant included
 
a refurbishment of the conventional CIL plant
 
and modifications to the
 
milling and cyclone
circuits to ensure the production of a finer grind for gold liberation as suggested by metallurgical test
 
work. The existing primary ball mill design was
modified to incorporate an overflow discharge rather than the grate discharge
 
and the use of a 30mm ball charge instead of the 50mm ball size that
was included in the original mill
 
design. This improved contact between grinding media and
 
gold ore particles for increased grinding efficiency in
 
gold
liberation. A new
 
45m diameter hi-rate
 
thickener was also
 
installed. The achievable
 
grind of 70% <75µm
 
proved to be
 
satisfactory for current
 
gold
recoveries, however,
 
closed circuit
 
milling with
 
cyclones was
 
introduced for
 
an improved
 
grind of
 
between 75%
 
and 80%
 
<75µm to
 
improve the
liberation of gold locked within
 
coarser silicates. Further revisions to the
 
process flow have since included
 
a copper elution step on the
 
loaded carbon,
which delivers a higher-grade gold bar and an improved
 
efficiency of gold removal from cathodes, by
 
improving the gold to copper ratio in
 
the RoM
feed.
Graph
 
3
 
and
 
Graph
 
4
 
show
 
actual
 
DP2
 
plant
 
production
 
capacity
 
and
 
plant
 
recoveries
 
over
 
the
 
period
 
FY2020
 
to
 
FY2022.
 
DP2
 
Plant
 
capacity
improvements over the period
 
analyzed show a gradual improvement
 
of 4.2% when
 
comparing FY2021 (average of
 
513ktpm) against FY2022 (average
of 506ktpm). Plant metallurgical
 
recoveries over the period
 
FY2021 to FY2022 range between
 
49.0% to 49.8% and
 
report lower than metallurgical test
work forecasts. However, it should be noted that the metallurgical plant recoveries
 
will be materially affected by plant head grade feed.
Graph 3: Actual Production Capacity of DP2 for FY2020, FY2021 and FY2022
Source:
 
FWGR, 2022
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p79i0
 
 
 
 
 
 
 
DRAFT
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(Proprietary) Limited
Document No: PR/SMI/1203/22
79
0%
10%
20%
30%
40%
50%
60%
70%
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Plant Recovery (%)
Month
Actual Recovery
Forecast Recovery
Graph 4: Actual Plant Recovery for DP2 versus Forecast Recovery for FY2020, FY2021 and FY2022
Source:
 
FWGR, 2022
The process flow is now as follows:
●
the slurry
 
from the
 
hydro-mining operation
 
is pumped
 
to a
 
surge tank
 
via a
 
25m
2
 
linear trash
 
screen (800μm).
 
Lime, sourced
 
from a
 
contract
supplier as milk of lime, is added directly into a receiving tank for pH control;
●
from the
 
receiving surge
 
tank, the
 
slurry is
 
pumped to
 
the milling
 
and classification
 
section from
 
where the
 
cyclone overflow
 
reports to
 
the
thickener for thickening to 1.45t/m
3
 
before being pumped to the CIL plant;
●
the CIL section comprises seven tank stages of
 
1,600m
3
 
per tank combining to approximately twelve hours residence time. Each
 
tank is fitted with
carbon retaining screens and a recessed impeller vertical spindle carbon transfer pump. Sodium cyanide solution is added to CIL Tank
 
1 and Tank
2 in order to maintain the required concentration for
 
the leach reaction. Slurry flows downstream through the screens and via launders from CIL
Tank 1 to CIL Tank
 
7 from where it exits to the 25m
2
 
tailings linear screen. Fine carbon is recovered from the screen overflow while the underflow
is pumped by the CIL tailings pump to the tailings tank at the slurry receiving area;
●
loaded carbon flows upstream from
 
CIL Tank
 
7 to CIL Tank
 
1 and is recovered
 
daily from the CIL
 
tank 1 by batch
 
transferring of carbon
 
slurry to
the loaded carbon screen and into a holding tank for transfer to the elution circuit after undergoing copper elution;
●
loaded carbon is batch processed through a 9t elution circuit for gold stripping with the stripped solution reporting to 128m
3
 
holding tanks;
●
the solution is passed through an electrowinning circuit for cleaning. The sludge is then calcined and smelted into doré bars;
●
the doré bars are dispatched to Rand Refinery Limited for final refining;
●
the eluted carbon is thermally regenerated in a horizontal kiln at 700°C and returned to DP2 for re-use in the CIL circuit. Fresh carbon is added to
the circuit as required; and
●
CIL tailings
 
and oversize
 
waste from
 
the incoming
 
TSF re-mined
 
slurry is stored
 
in a
 
mechanically agitated
 
surge tank
 
and pumped
 
by the
 
final
tailings pumps to the Driefontein 4 TSF.
14.2.
 
Planned Expansion of DP2
The latest LoM plan requires an expansion of DP2 rather than the construction of a CPP facility which had been a part of FWGR’s strategic plans. DP2
will be expanded from its
 
current production capacity of 600ktpm
 
to a higher throughput rate
 
of 1.2Mtpm, while the CPP
 
will remain an option for
future strategic planning.
 
The DP2 expansion scheduled
 
to occur during FY2025
 
and FY2026, although the
 
plant will only be
 
required to treat 750ktpm
until January 2030 when the new
 
RTSF is planned to
 
be fully commissioned and operational.
 
The design approach to
 
the DP2 expansion design has
been to modify
 
existing ball
 
milling capacity and
 
duplicate existing
 
processing circuits. The
 
process flow
 
block plan shown
 
in Figure
 
22 depicts the
changed DP2 plant layout planned from the plant expansion.
Figure 22: DP2 Revised Block Plan
exhibit961p2i0 exhibit961p80i0
 
 
 
 
DRAFT
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(Proprietary) Limited
Document No: PR/SMI/1203/22
80
Source:
 
DRA, 2022
Historically achievable plant gold recoveries are expected to be
 
realized from the expanded DP2 plant with gold
 
recoveries being principally driven by
the plant feed head grade.
A provision of
 
ZAR1,283.20M (excluding contingencies)
 
has been included
 
in the LoM
 
plan for this
 
expansion. The principal
 
areas of capital
 
expenditure
covered by this provision are:
 
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
81
●
Slurry Receiving and Trash Screening
 
(ZAR64.19 M):
the hydraulically mined material
 
is pumped over trash
 
screens before entering the respective
receiving tanks. Lime can
 
be added in the receiving
 
tank for pH
 
correction. From the
 
slurry receiving tanks the material
 
is pumped either to
 
the
classification and milling circuit or can be bypassed directly to the CIL or pre-leach thickeners.
The provision addresses process design
 
screen changes and the tank
 
volume adjustments necessary to
 
address the increased production capacity.
●
Milling and Thickening (ZAR146.81 M):
prior to milling the material passes through
 
a primary classification stage, via
 
cycloning, where after the
coarser material is closed circuit milled and the finer material from the milling circuit directed to the pre-leach thickeners. Thickener underflow is
pumped to a second set of trash linear screens prior to CIL.
The provision addresses the newly designed cyclone cluster installations, the new 45m diameter thickener circuit,
 
along with all the adjustments
and modifications necessary to the current ball milling circuit.
●
Leach and Adsorption (ZAR231.70 M):
reclamation slurry is either pumped directly
 
to the CIL or first passes through the classification,
 
milling and
thickening circuits
 
before passing
 
through the
 
CIL trash
 
screens and
 
into the
 
CIL. Each
 
circuit consists
 
of one
 
stage of
 
pre-oxidation and
 
seven
stages of CIL where
 
gold is leached and
 
adsorbed onto activated carbon,
 
which flows counter-currently
 
to gold-bearing slurry.
 
Loaded carbon is
directed to elutriation and elution circuits while tailings pass over carbon safety screens before being pumped to the final tailings tank.
The provision provides for the installation of a new CIL section which will duplicate the currently installed capacity.
●
Tailings Disposal
 
(ZAR86.70 M):
CIL tails gravitate
 
through to carbon safety
 
screens. The screen oversize
 
is pumped to the
 
fine carbon handling
circuit ensuring that any
 
carbon passing through the
 
CIL circuit is recovered.
 
The screen undersize
 
is sampled before being
 
collected in the final
tailings tank and then pumped to the TSF.
The
 
provision
 
recognizes
 
the
 
requirement
 
for
 
additional
 
pumping
 
infrastructure
 
to
 
deliver
 
the
 
increased
 
throughput
 
capacity
 
to
 
the
 
future
identified TSF sites at Leeudoorn and the RTSF.
●
Services and Distribution (ZAR193.01
 
M):
this provision considers all
 
of the supporting bulk
 
services
 
required
 
for the plant expansion and
 
includes
the necessary road access construction for the expanded plant site.
●
Water and Air Services (ZAR57.97 M):
the requirements for process water and compressed air
 
services at the increased production capacity are
covered by this provision.
●
Reagents (ZAR52.14 M):
this provision covers the infrastructure necessary to ensure correct reagent dosage in the duplicated processing circuits.
●
Elution and
 
Carbon Handling
 
(ZAR175.09 M):
loaded carbon from
 
the CIL
 
circuit is
 
elutriated to
 
remove any
 
foreign particles
 
prior to
 
elution.
Adsorbed gold will be eluted from the activated carbon by means of a heated solution of sodium cyanide and caustic soda. This elution
 
process is
followed by rinsing and cooling stages. Barren carbon from
 
the batch elution process will be directed to carbon
 
regeneration while the pregnant
leach solution will be routed to pregnant solution tanks for zinc precipitation.
 
The barren carbon from the elution circuits passes through carbon
regeneration kilns to volatilize
 
off impurities and reactivate
 
the carbon where after
 
it is acid washed and transferred
 
back to the last CIL
 
tank of
each circuit. Regenerated carbon
 
is pumped into an acid wash
 
hopper where it undergoes acid
 
wash to remove precipitated
 
material (inorganic
and organic) to restore additional carbon activity prior to being pumped back to the respective CIL circuit.
The provision
 
addresses the requirement
 
for the installation
 
of a new
 
elution and
 
carbon handling
 
circuit which will
 
duplicate the currently
 
installed
capacity.
●
Zinc Precipitation and Smelting (ZAR81.42 M):
Gold in solution from the elution circuit will be recovered by zinc precipitation in plate and frame
filters.
The provision addresses the requirement
 
for the installation of a
 
new zinc precipitation and smelting
 
circuit which will enable the production
 
of
doré to match the currently installed capacity.
●
Indirect Capital (194.16):
which is comprised of Construction Costs (ZAR4.79
 
M), First Fill Consumables (ZAR0.18 M),
 
Commissioning and Spares
(ZAR10.96 M) and Project Services (ZAR178.23 M).
14.3.
 
Concluding Comments
The current DP2
 
process performance
 
and subsequent modifications
 
to the
 
original DP2 plant
 
circuit, along with
 
the supporting metallurgical
 
test
work have indicated that the forecast DP2 expansion will be capable of meeting the expected financial forecasting.
 
exhibit961p2i0 exhibit961p82i0
 
 
 
 
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(Proprietary) Limited
Document No: PR/SMI/1203/22
82
15.
 
INFRASTRUCTURE
Item 15 (i); (ii); (iii); (iv); (v); (vi); (vii); (viii); (ix) and
 
(x)
Phase 1 capital expenditure
 
on surface infrastructure
 
was mostly on pump
 
stations, pipelines and a
 
cyclone deposition system
 
at the Driefontein
 
4
TSF to facilitate the storage
 
of tailings derived from the initial reclamation and processing
 
of the Driefontein 5 TSF.
 
The Driefontein 4 TSF provides a
current depositional capacity of
 
500ktpm. Phase 1 capital expenditure
 
on surface infrastructure was mostly on
 
pump stations, pipelines and a
 
cyclone
deposition system at the Driefontein 4 TSF to facilitate the storage of tailings derived from the initial reclamation and processing of the Driefontein 5
TSF. The Driefontein 4 TSF provides a current depositional capacity of 500ktpm, which will reduce to
 
250ktpm from December 2025, when additional
depositional capacity of
 
500ktpm at the Leeudoorn
 
TSF will become available in
 
terms of an in-principle
 
agreement with Sibanye Gold.
 
The Leeudoorn
TSF will
 
be converted
 
from a
 
day-wall design
 
to a
 
cyclone deposition design
 
and the processing
 
at DP2
 
is planned to
 
increase in
 
to 750ktpm.
 
This
depositional arrangement is scheduled to
 
carry on until January 2030
 
when the RTSF is planned
 
to be operational at
 
a deposition rate of
 
1.2Mtpm.
Figure 23 shows the locality of the existing Driefontein 4 TSF and the DP2 plant.
Figure 23: Driefontein 4 TSF Location and Infrastructure
Source:
 
FWGR,
 
2020
15.1.
 
Leeudoorn Facility
The Leeudoorn TSF is
 
located 7km north-east of
 
Fochville on the
 
West Rand,
 
Gauteng Province. Sibanye
 
Gold have, after
 
a detailed, joint
 
technical
review, agreed in principle that FWGR
 
may, with effect
 
from January 2026, deposit up to 500ktm of tailings onto the Leeudoorn TSF provided FWGR
paid the capital cost to convert the TSF
 
to cyclone depositioning.
 
FWGR intends to use
 
this TSF for a
 
period of four
 
years, until the RTSF is
 
constructed.
 
The TSF incorporates two independent
 
and active compartments
namely the western (lower) compartment and the eastern (upper) compartment.
exhibit961p2i0 exhibit961p83i0
 
 
 
 
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(Proprietary) Limited
Document No: PR/SMI/1203/22
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A return water dam (RWD) and storm water dam (SWD) are located to
 
the west of the lower TSF compartment. The upper and lower compartments
were
 
commissioned
 
in
 
1991
 
and
 
1990
 
respectively.
 
The
 
TSF
 
footprint
 
is
 
189ha
 
with
 
a
 
lower
 
compartment
 
footprint
 
of
 
108ha
 
and
 
an
 
upper
compartment footprint of 81ha. Underdrains are
 
installed at the base of the
 
TSF which discharge into an unlined
 
solution trench. Sibanye Gold, the
current TSF operator are presently installing two floating penstocks on the lower and upper compartments.
Water from
 
the TSFs is
 
diverted to the RWD
 
through the unlined solution trench.
 
A spillway links
 
water from the
 
RWD to the SWD
 
with a pumping
system which returns water
 
back to the TSF compartments. A further spillway allows the release of water from the SWD into
 
the environment. Both
TSF compartments are unlined. Figure 24 shows the current layout of the Leeudoorn TSF.
Figure 24: Leeudoorn TSF Layout
Source:
 
Geo Tail, 2022
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Table 15 presents a summary of the design criteria and assumptions used for the Leeudoorn TSF design.
Table 15: Design Criteria and Assumptions
Description
Value/Output
Source
General
Topographical Survey
A Lidar survey dated May 2021
Sibanye Gold
Residue Materials
Gold tailings
FWGR
Legal Framework
South Africa and benchmarking against good practice international standards i.e., GISTM
FWGR
Process Criteria
Tailings Deposition Rate
Deposition strategy
FWGR
Slurry Density
Average Relative Density = 1.38
FWGR
Design Life
Deposition strategy
FWGR
Water Management
Objectives
•
Minimize usage
•
Encourage drying and consolidation of the tailings
•
Separate clean run-off from potentially contaminated process water
•
Prevent uncontrolled dirty surface water discharge to the environment
GTSA
Principles
•
Divert clean storm water run-off away from the facility
•
Minimize the storage of water on the facility
•
Contain and re-use the water emanating from the facility
•
Discharge excess water from the facility to the environment only if the structural stability of the
facility is compromised
GTSA
Water Balance
A continuous daily time step water balance (GoldSim)
iLanda
Climatic Data
MAP = 624 mm
MAE: 1,670 mm (S-Pan)
iLanda
Storm Event
1 in 50-year, 24-hour = 119 mm
1 in 10,000-year, 24-hour,
 
or PMP = 248 mm
iLanda
Decant Rate
•
Decant slurry water daily to ensure that the average pool volume is maintained as small as possible
•
Transfer the design storm from the storage facility basin to the return water dam within an
acceptable period
GTSA
Water Storage and Return
Pumping Capacity
•
The objective will be to create adequate water storage and water return pumping capacity to
prevent uncontrolled discharge of dirty surface water to the environment. The water balance will
confirm the frequency for controlled discharges, if necessary
•
The return water pumping system will be designed to return 100% of the process demand from the
return water dam to the process
GTSA
Lining Requirement
No lining required
FWGR
Structural Stability
Objective
To create a safe and stable tailings storage complex and to minimize the risk to human lives, health,
and property
GTSA
Design Storm
1 in 50-year, 24-hour (minimum)
1 in 10,000-year, 24-hour (maximum)
GTSA
Freeboard Target
The minimum freeboard target will be to accommodate the 1 in 50-year, 24-hour storm volume plus
0.8m dry freeboard on top of the normal operating level (excluding decant return) or the 1 in 10,000-
year, 24-hour storm volume on top of the normal operating level (excluding decant return). The most
conservative storm event will be utilized for freeboard analysis
GTSA
Side Slope Stability
•
The minimum factor of safety will be 1.5 for drained conditions at peak strength
•
The minimum factor of safety will be 1.1 for seismic loading (drained analysis)
•
The minimum factor of safety will be 1.3 for undrained conditions at peak strength
•
The minimum factor of safety will be 1.1 for undrained conditions at residual strength
GTSA
Source:
 
Geo Tail, 2022
15.1.1.
 
Geotechnical, Hydrological and Geohydrological Considerations
The area to be covered by the TSF overlies mostly an andesitic volcanic intrusive with typically fine and expansive soil profiles. While the
weathering profiles are
 
highly variable within
 
this host formation,
 
no dolomite has
 
been identified within
 
the TSF
 
footprint. There is
 
a
single north-south striking linear structural feature (possible dyke or fault) located east of the upper compartment.
It is noted
 
from geotechnical
 
observations that
 
the TSF
 
comprises sand and
 
silty sand grading
 
to clay
 
and silty
 
sand within the
 
middle
region of the TSF profile and
 
clay along the base. Clayey and silty
 
layers occur within the upper
 
regions as thin cohesive lenses,
 
associated
with a reduction in the cone
 
resistance. The tailings appear to be stiff across
 
both compartments of the TSF and
 
the underlying basement
materials also exhibit very
 
stiff consistencies.
 
Overall, the observations
 
made along the surface
 
of each section
 
on both the
 
Upper and
Lower Compartments presents evidence of cementation and densification of tailings materials with depth.
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
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A geo-hydrological
 
study was
 
completed in
 
2019 regarding
 
the impact
 
of the
 
Leeudoorn RWD
 
and the
 
Leeudoorn TSF
 
on the
 
ground
water.
 
The TSF contributes the majority of the contamination to the ground water,
 
with the rest being from the Leeudoorn RWD. When
using sulphate as an
 
indicator leachate concentration in the pollution
 
plume are in the
 
order of 50,000m
3
/month from the Leeudoorn
 
TSF
and only 60m
3
/month Leeudoorn RWD.
An independent risk assessment was completed on the possibility of a dam breach using a
 
2020 as-built survey. The most critical failure
scenario recorded was a
 
rainy-day cascade failure
 
at the western
 
wall of the lower
 
compartment, with an estimated
 
Population at Risk
(PAR) of 2,570 people and
 
a Potential Loss of Life
 
(PLL) of between 13
 
and 400 people and
 
when classified by the
 
Global Industry Standard
for Tailings Management (GISTM) Classification system, was reported as an Extreme Consequence Classification.
 
exhibit961p2i0 exhibit961p86i1 exhibit961p86i0
 
 
 
 
DRAFT
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(Proprietary) Limited
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86
15.1.2.
 
Leeudoorn Design
Figure 25 shows the final layout for the Leeudoorn TSF.
Figure 25: Final Layout of Airspace Model
Source:
 
Geo Tail, 2022
The elements of the proposed Leeudoorn design are described further:
Transport
 
System:
A booster
 
pump station
 
located
 
at
 
the existing
 
Leeudoorn Process
 
plant will
 
pump slurry
 
to the
 
cyclone delivery
stations located on the TSF.
 
The supernatant water will decant
 
via the existing gravity
 
penstock systems to
 
the new silt traps which will
overflow to
 
the solution
 
trench. The
 
solution trench
 
reports to
 
the return
 
water
 
dam from
 
where the
 
water
 
will be
 
pumped to
 
the
operating plant for re-use in the process. Excess water from the return water dam will spill to the SWD.
Elevated Filter Drain:
The elevated filter drains
 
will be installed during
 
the operation ahead of
 
the development of the
 
underflow wall.
The outflow collection
 
system must
 
be pre-installed
 
as part
 
of the construction
 
works. The
 
drain outflow
 
collection system
 
comprises
HDPE manholes at the
 
end of the outlet pipes
 
from the filter drains.
 
These are located on
 
the newly formed step-in.
 
Outlet pipes from
the manholes will divert the water down the side slope to the solution trench.
Figure 26 shows the position of the elevated drain filter.
 
exhibit961p2i0 exhibit961p87i1
 
 
 
 
exhibit961p87i0
 
 
 
 
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Figure 26: Position of the Elevated Drain Filter
Source
 
Geo Tail, 2022
Cyclone Set-up:
The cyclone layouts for the two compartments are shown in Figure 27.
Figure 27: Cyclone Layout
Source:
 
Geo Tail, 2022
Engineered Benches:
Engineered benches will collect surface run-off
 
and silt load. Bench penstocks will be
 
utilized to divert excess water
to the solution trench from where
 
the flow will be diverted
 
to the RWD. The in-line bench
 
penstocks will be linked with a single
 
downpipe
with a
 
maximum of
 
five bench
 
penstocks feeding
 
into each
 
downpipe. Run-off
 
will be
 
temporarily stored
 
on the
 
benches during high
rainfall events and to accommodate this, benches will be sloped inwards and a bund wall will be constructed.
Wall Development:
The 250mm, 30tph, cyclones
 
will be 24m
 
apart along the
 
complete perimeter.
 
There will be
 
no disconnecting and
relocating of cyclones
 
from one point
 
to another on
 
the wall with
 
every cyclone being
 
required to
 
develop a 24m
 
section of wall.
 
The
cyclone is used to create a trapezoidal wall cross-section with
 
anticipated approximate 1v:3h side slopes and a 1.0m to 1.5m wide crest.
The outcome of the cyclone deposition
 
operation must be a smooth consistent
 
outer profile, conforming to
 
the specified profile with a
level crest.
The TSF
 
Contractor shall
 
regularly take
 
feed,
 
under and
 
overflow density
 
measurements to
 
calculate the
 
cyclone split.
 
In addition,
 
a
monthly survey shall be conducted to
 
allow a volumetric reconciliation and
 
calculation of under/overflow split to
 
be determined at the
same time checking the wall geometry and freeboard.
Pool and
 
Decant Management:
 
Routine rotation
 
of deposition
 
around the
 
perimeter should
 
maintain the
 
pool around
 
the penstock
intakes.
 
Given the
 
high deposition
 
rate
 
and the
 
expected increased
 
vertical freeboard,
 
the pool
 
will be
 
larger than
 
with the
 
day wall
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operation and likely to be
 
permanent. Decanting will be continuous with no
 
stacking of night rings. The decant
 
return should always be
maximized to ensure minimum storage of supernatant and storm water with excess water only being temporarily stored in the TSF basin
during high rainfall periods.
Silt Trap:
The elevated penstocks
 
discharge directly into
 
the new lined silt
 
traps before it
 
overflows into the
 
solution trench. Discharge
into the silt traps should be regularly stopped to allow the silt to settle and be measured.
15.1.3.
 
Conclusions
A Leeudoorn TSF design has been completed to enable the conversion of the current day wall TSF to a cyclone-based deposition system.
The design has been developed
 
to accommodate the required deposition
 
plan. It has been benchmarked
 
against other similar conversion
projects and has been found to be within proven operational practice and acceptable risk levels.
The stability assessment of the proposed
 
conversion has demonstrated factors
 
of safety which exceed
 
the design targets and therefore
considered satisfactory for normal
 
operating conditions. This assumes that
 
the TSF operation will be
 
properly managed and that
 
all the
identified critical parameters will be monitored.
A water balance has been developed for the proposed changes to the current conventional TSF design.
This water
 
balance demonstrates
 
the expected
 
improvements in
 
water recovery
 
resulting from
 
the increased
 
rate of
 
rise and
 
greater
water recovery efficiency of the cyclone system.
The forecast returns
 
from the Leeudoorn TSF
 
are expected to
 
be approximately 50%
 
of slurry water.
 
Modelling has demonstrated
 
that
the current penstock arrangement on both compartments is adequate to maintain pool control within both basins.
In order to ensure compliance with the Government Notice
 
(GN) 704 (Regulations on Use of Mining and Related
 
Activities Aimed at the
Protection of Water Resources - published
 
in the Government Gazette 20119) the
 
RWD will require a capacity
 
of 56,000m
3
 
between 2026
and 2029 (period of high deposition
 
rate) and a capacity of 107,000m
3
 
from post 2030 (period of low deposition
 
rate). The water balance
indicates that during storm conditions up to 90% of the slurry water is likely to be returned to the system.
15.2.
 
Regional Tailings
 
Storage Facility
The LoM planning by FWGR includes the establishment of a RTSF on a site 10km east of Fochville.
The RTSF
 
site consists of
 
an area
 
of approximately
 
1,000ha. It
 
is located
 
between two
 
water courses,
 
the Leeuspruit to
 
the north east
 
and an
 
un-
named ephemeral stream/wetland to
 
the south west, both
 
merging south east of
 
the site. FWGR
 
owns most of the
 
land on which the
 
RTSF will be
constructed, with the balance covered by way of an option agreement. Topographically this creates a slightly convex spur. Elevations in the area vary
between around
 
1,540mamsl along
 
the northern extremity
 
to around
 
1,500mamsl in
 
the south
 
east over
 
a distance
 
of some
 
6km. This
 
results in
typically gentle slopes of around 0.7% with some localized variations in gradient.
FWGR has a development plan for the RTSF which incorporates the following changes to the WUL as originally approved:
●
the inclusion of an alternative barrier system to the previously proposed synthetic barrier for groundwater protection; and
●
the submission of a detailed design to the Department of Water and Sanitation (DWS) for approval.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Table 16 outlines the main
 
differences between the earlier
 
RTSF design and the
 
revised design. These differences
 
include a significantly
 
larger capacity
of 800Mt compared to
 
an earlier 290Mt, along with
 
a correspondingly higher disposal rate
 
which is ramped up
 
in phases to 2.4Mtpm
 
compared to
1.4Mtpm. In
 
the revised
 
design, the
 
overall percentage
 
of slurry
 
solids is
 
reduced to
 
a 50%
 
segregating
 
slurry compared
 
to an
 
earlier 65%
 
non-
segregating slurry.
Table 16: Changes in Parameters
Criteria/Parameter
Sibanye Gold FS
FWGR FS
LoM
Phase 1 only - 17 years
Complete life 25 years
Processing Plant
Au, U, H
2
SO
4
, roaster
Gold only
Total Disposal Quantity
FS only 290Mt
800Mt
Disposal Rate
1.4Mtpm
1.2Mtpm, increasing to 1.8Mtpm,
then 2.4Mtpm
Slurry Delivery
Single Pipe
2 to 5 pipes
Slurry Percentage Solids
65% - non-segregating
50% - segregating
Surface Water Management
Treat and discharge
Collect and re-cycle
Ground Water Protection
Synthetic barrier
Scavenger wells
Tailings Dam Development Method
Untried spigotting of a non-segregating slurry at <3m/yr
Proven on-wall cyclones at 4m/yr to 6m/yr
Source:
 
Beric Robertson Tailings,
 
2020
Coupled to the deployment of this lower density slurry is the use of proven on-wall cyclones. The water treatment approach for the revised design is
to consider
 
a closed
 
circuit, which
 
collects and
 
re-cycles the
 
water load.
 
FWGR proposed
 
amended designed
 
provides that
 
groundwater is
 
to be
managed by way of a network of interception scavenger wells positioned to capture and recycle the
 
pollution plume. It is proposed that this replaces
the previously considered method of a
 
synthetic barrier.
 
It is noted that the impact
 
of adopting a disposal method which generates
 
a higher rate of
rise per annum is to promote a smaller environmental footprint.
The approach
 
to the
 
RTSF
 
design and
 
disposal policy
 
has been
 
guided by
 
the FWGR
 
policy,
 
the objective
 
of which
 
is “to
 
develop an
 
indefinitely
sustainable landscape that, at worst, has a benign, but preferably positive socio-environmental impact”.
The following has been referenced in developing the RTSF design:
●
the Chamber of Mines Guide to the Design of Metalliferous Tailings Dams 1972, as revised; and
●
SABS 0286; Mine Residue standard (now SANS 10286) (1998).
Following
 
the
 
headline
 
TSF
 
failures
 
in
 
Brazil
 
at
 
Samarco
 
(2015)
 
and
 
Brumadinho
 
(2019)
 
a
 
number
 
of
 
initiatives
 
have
 
been
 
promulgated
 
in
 
the
international
 
mining
 
community.
 
The
 
International
 
Council
 
for
 
Mining
 
and
 
Minerals
 
(ICMM)
 
developed
 
a
 
Global
 
Industry
 
Standard
 
for
 
Tailings
Management (GISTM) (2020). The
 
GISTM is a guide
 
with no regulatory jurisdiction outside
 
of the membership articles
 
of the ICMM and
 
consists of
fifteen principles which can be adopted voluntarily by mining companies. In March 2020, the International Council for Large Dams (ICOLD) published
a draft bulletin on Tailings Dam Safety.
 
The RTSF
 
design adopted
 
by FWGR
 
has taken
 
reference
 
from SANS
 
10286 and
 
all other
 
relevant
 
South African
 
legislation including
 
the National
Environmental Management: Waste Act, 2008 (Act No. 59 of 2008) (NEM:WA), the NWA, the MHSA and their associated regulations. All of this work
has been undertaken in the context of the FWGR Tailings Disposal Policy.
The RTSF
 
design approach
 
has undertaken
 
a rigorous
 
iterative examination
 
of an
 
appropriate tailing
 
disposal method,
 
for the
 
class, quantity
 
and
quality of tailings under
 
consideration. Throughout the design process,
 
cognizance has been taken of the
 
potentiality of catastrophic or consequential
failure resulting from the following two most commonly responsible mechanisms:
●
hydraulic over topping leading to erosion of the containment wall with consequent collapse; and
●
geotechnical instability as a result of insufficient shear strength resulting in a collapse of a portion of the outer wall.
The iterative examination process has considered the following environmental and engineering elements (Table 17 and Table
 
18).
Table 17: Environmental Elements under Consideration for RTSF Design and Disposal Method
Criteria/Parameter
Description
Topography
i.e., Mountainous, hilly or planar
Climate
i.e., Arid, semi-arid, temperate, sub-tropical, tropical, monsoon
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Seismicity
Low, medium or high
Geochemistry
Low, moderate, severe
Tailings SG
High, average, low
Source:
 
Beric Robertson Tailings,
 
2020
Table 18: Engineering Elements under Consideration for RTSF Design and Disposal Method
Criteria/Parameter
Description
Disposal
Wet or Dry
Generation Type
1st, 2nd, 3rd or 4th
PSD
CC, FC, CF or FF*
Slurry Density
Low, Ave, High (up to paste)
Wall Development Method
Downstream, centerline or upstream
Deposition Method
Open-end, spigot, on-wall cyclones
Decant System
Gravity, pumped, siphon
Ground Water Protection
Synthetic liner or scavenger wells
Air and Surface Water quality Protection
Various options
Post-closure Options
Various approaches
Source:
 
Beric Robertson Tailings,
 
2020
Note:
 
* C=coarse, F=fine
Based on the above criteria, the design for the RTSF includes the following attributes (Table 19):
Table 19: RTSF Design Criteria
Design Criteria
A 4th generation TSF
Low density slurry feed to an on wall upstream ring dyke dam
A pumped decant system
The abstraction containment of the leachate plume
The progressive cladding and vegetation of the outer slopes
Post closure water treatment designed for a non-consumable agricultural product farming business
Source:
 
Beric Robertson Tailings,
 
2020
The proposed RTSF will cover an area of approximately 1,000ha with a final surface top area of around 600ha. The RTSF has been planned within the
original demarcated and authorised site area.
15.2.1.
 
Geotechnical, Hydrological and Geohydrological Considerations
Geotechnical investigations have confirmed that there are
 
no related fatal flaws. They
 
demonstrate that the RTSF site is suitable
 
for the
construction of
 
a RTSF and
 
its related infrastructure.
 
The natural material
 
available on site
 
is suitable, both
 
qualitatively and quantitatively,
for the construction of the various structures including embankments, canals, foundations, roadways,
 
compacted clay liners and for use
as cover placement. In areas with collapsible topsoil
 
an allowance was made to excavate and use this material for general compacted fill,
and to use an impact roller to compact the remaining material from surface in order to reduce its collapse potential to
 
acceptable levels
thereby forming a suitable foundation in these areas.
The current legislation contains mechanisms for the
 
classification of processed tailings, which
 
in the case of the approved RTSF, called for
the use of
 
a liner (Class
 
C barrier or
 
equivalent). This legislation
 
has been reviewed
 
by the legislature
 
to address various
 
shortcomings
with
 
one
 
material
 
change
 
being
 
that
 
the
 
remediation
 
requirements
 
will
 
be
 
informed
 
by
 
the
 
outcome
 
of
 
a
 
comprehensive
 
hazard
identification and risk assessment approach, subject to final approval of this legislation. The latest design
 
of the RTSF is aligned with the
requirements of the pending changes to the legislation.
Hydrological studies have assessed the impact of the RTSF on the hydrology of the local area. Mean average rainfall of around 600mm
 
is
noted. The
 
area has
 
exceptionally high
 
evaporation rates
 
of around
 
2,000mm and
 
this will
 
assist in
 
removing water
 
content from
 
the
tailings which will aid tailings stability. It is expected that climate change impacts are unlikely to be material over the next decade.
A consequence of
 
the ring dyke dam design
 
and the hydrological setting is
 
that surface water will tend
 
to flow away from the
 
RTSF surface
footprint. As a consequence, the RTSF has no direct riverine impact being well above the 1:100-year flood lines as confirmed in the most
recent hydrological assessment.
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RTSF run-off impacts will be managed
 
through the progressive soil cladding
 
and grassing of the slopes with
 
clear water run-off forecast
after some four years from commissioning.
Overall water management has
 
been assessed
 
through the use
 
of a dynamic
 
water simulation model
 
over the LoM.
 
The model as
 
expected
confirms low averag
 
e
 
monthly returns as
 
the return water
 
pumping rate
 
is controlled. This
 
results in seasonal
 
fluctuations in the
 
RTSF
pond volume driven principally by reduced winter evaporation. The model outcomes imply that due to the relatively high basin capacity
of the RTSF, the risk of over topping due to hydro-meteorological events
 
and operational practices is considered to be low.
Storm
 
water
 
management
 
on
 
the
 
RTSF
 
slopes
 
between
 
the
 
crest
 
of
 
the
 
basin
 
and
 
the
 
perimeter
 
toe
 
is
 
managed
 
through
 
the
implementation of the following design approach:
●
the slope is divided into 400m wide segments around the perimeter;
●
each 400m wide segment has a centrally located outlet down the slope consisting of precast concrete chutes;
●
the cross-section comprises a series of 10m high, 35m wide scallops forming a 1.6m high (but could be reduced
 
to 1.4m) bund along
the lower edge of each;
●
the scallops temporary buffer create capacity for run-off prior to discharge down the chutes; and
●
the scalloped benches are divided into paddocks by cross-walls or bunds with hydraulic links to control flow between paddocks.
The concrete chute system has been successfully used at other TSFs.
The geo-hydrological impacts of the RTSF will be managed through the installation of a network of abstraction
 
wells. The regional water
table is found
 
at relatively shallow depths
 
across the RTSF site
 
of 3m to
 
8m. The impact
 
of tailings deposition
 
will be that a
 
phreatic surface
will merge between the
 
original water table
 
setting and the
 
TSF.
 
Seepage modelling has been used
 
to analyze
 
the impacts on the
 
geo-
hydrology. Input
 
requirements into this modelling include,
 
the site geological structure
 
and the topology of all
 
the materials in the TSF.
Each material type or zone is assigned appropriate
 
permeability properties along with other factors such as slurry water
 
inflow, rainfall,
evaporation and
 
run-off rates.
 
Further modelling
 
describes the proposed
 
zoning of
 
the under
 
and overflow
 
from the
 
cyclone disposal
positions during the TSF operation.
The seepage modelling has confirmed that the stability of the RTSF can be enhanced through the construction of filter drains
 
integrated
into the underflow tailings
 
walls which protrude into
 
the basin of the
 
RTSF.
 
These underflow curtains which are
 
described as similar to
the “fins of a radiator”, draw down the phreatic surface of the underflow which contributes to the enhancement of the wall stability.
Post closure modelling indicates
 
that drain flows of
 
up to 700m
3
/d may need will need
 
to be treated through
 
a small sustainable water
treatment facility.
The primary purpose
 
of the ground water modelling
 
has been to validate the use
 
of a scavenger well network to
 
control pollution impacts
on the
 
local aquifer
 
system.
 
This modelling
 
has been
 
developed from
 
calibrating existing
 
boreholes and
 
using an
 
historical database
established by the earlier investigators.
The geo-hydrological regime at the RTSF site consists of the stacking of a weathered aquifer over a deeper fractured aquifer (Figure 28).
Figure 28: Geo-hydrological Regime at the RTSF Site
exhibit961p2i0 exhibit961p92i1
 
 
 
 
exhibit961p92i0
 
 
 
 
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Source:
 
Beric Robinson Tailings,
 
2020
The water table approximates the topography at
 
a depth of 3m to
 
8m and the general ground
 
water flow is from north
 
west to south east
with local
 
south and
 
eastward
 
flows to
 
the adjacent
 
streams. Earlier
 
studies promoted
 
the use
 
of a
 
synthetic
 
liner for
 
ground water
protection. The use of a synthetic
 
liner, installed at
 
the base of the RTSF would
 
be to create a third
 
‘perched’ aquifer above the current
weathered zone
 
aquifer.
 
Installing such
 
a barrier over
 
a 1,000ha
 
footprint could
 
result in a
 
design which will
 
ultimately end
 
up with
 
a
compromised liner integrity,
 
requiring the eventual
 
implementation of a
 
well system
 
to contain the
 
contaminant plume. In
 
addition to
this, the inclusion of a liner in the design significantly raises RTSF geotechnical risk.
The scavenger
 
well system
 
generates a
 
hydraulic barrier
 
around the
 
RTSF by
 
directing ground
 
water flow
 
towards the
 
RTSF footprint
(Figure 29).
Figure 29: Geo-hydrological Effects of Scavenger Wells beneath the RTSF
Source:
 
Beric Robinson Tailings,
 
2020
The deeper fractured aquifer exhibits
 
low permeability characteristics which promote the
 
flow of the contaminated
 
plume towards the
peripheral abstraction wells which
 
recover the polluted ground
 
water and contain
 
the plume dispersion. All
 
the dirty water from
 
these
scavenger wells accumulates
 
in large concrete
 
sumps before
 
being pumped back
 
into the operational
 
circuit whilst operating
 
and post
closure will be treated for either disposal or utilization.
Ground water
 
modelling was
 
carried out
 
in an
 
appropriate software
 
package
 
and confirmed
 
the effectiveness
 
of the
 
abstraction well
system methodology. Numerous modelling iterations were carried out to identify optimal borehole spacing and localities. The modelling
has indicated that
 
a series of
 
abstraction wells drilled
 
into the weathered
 
aquifer to a depth
 
of around 20m,
 
arranged in three
 
rows around
the perimeter should effectively prevent the lateral spread of
 
any contaminant plume. Vertical containment is effectively achieved at the
base of the weathered aquifer, the underlying fractured aquifer exhibiting low permeability characteristics.
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A
 
critical feature
 
of the
 
implementation
 
of the
 
scavenger
 
well
 
system
 
methodology will
 
be the
 
practice of
 
systematic
 
water
 
quality
sampling and it is proposed that 25% of all wells are tested on a monthly basis. This will be used for the regular updating and
 
calibrating
of the ground water model which will enable, where necessary, practical interventions into the well field design to be implemented.
15.2.2.
 
The RTSF Design
The RTSF design has been configured by assembling the following components or design elements:
Toe Wall Embankment and Cladding Stockpile: the perimeter boundary of the RTSF is defined by a single Toe Wall (3m high by 6m wide).
This serves as a containment barrier and as
 
a perimeter access road. The tailings placement has been
 
planned to fill within 1.5 to 2.0m of
the
 
Toe
 
Wall
 
crest.
 
Compacted
 
material
 
for
 
the
 
Toe
 
Wall
 
will
 
be
 
borrowed
 
from
 
a
 
2m
 
deep
 
trench
 
excavated
 
within
 
the
 
Toe
 
Wall
perimeter.
 
This trench
 
will form
 
a paddock for
 
tailings run-off
 
material at
 
the toe of
 
the slope.
 
A temporary
 
cladding stockpile
 
will be
formed outside the Toe Wall.
Heel Wall
 
Embankment: in the
 
case of RTSF,
 
an upstream cyclone
 
dam, the containment
 
wall formed from
 
the underflow needs to
 
be
established
 
on
 
a
 
stable
 
platform
 
for
 
the
 
tailings
 
placement
 
to
 
be
 
ultimately
 
stable.
 
The
 
overflow
 
is
 
therefore
 
contained
 
behind
 
an
embankment upstream
 
of the intended
 
wall footprint
 
and is
 
called a
 
Heel Wall.
 
The Heel
 
Wall therefore
 
defines the initial
 
division or
separation of the under and overflow with the overflow area termed the Basin.
The height of the Heel Wall changes progressively as the dam is developed and is
 
determined from the availability of underflow and the
relative rates
 
of rise of
 
the over and
 
underflow. The determination
 
of the expected
 
height and position of
 
the Heel Wall
 
is an iterative
process of trial and optimization with
 
the base of the wall being typically selected
 
at approximately one third
 
of the horizontal distance
of the base length of the final slope.
Heel Wall structure
 
on a dam
 
the size of
 
the RTSF represents
 
a substantial embankment
 
structure with a
 
correspondingly high level
 
of
material requirements. This material has been sourced within the RTSF footprint which reduces further
 
environmental degradation from
external borrow pits and reduces haul distance costs. A further feature
 
to assist construction material placement is the incorporation of
access ramps onto the Heel Wall at 400m centers. Geotechnical
 
site investigations have verified the suitability and availability of
 
material
excavated from within the RTSF footprint for Heel Wall construction.
Miscellaneous Embankments: in order to control the run-off harvested between the Heel Wall and Toe Wall on the low south side of the
RTSF and prevent an overtopping of
 
the Toe Wall, it is necessary to construct a
 
series of radial cross walls at
 
approximately 400m centers.
These compartments serve to spread the containment of run-off material
 
over a broader area and reduce the depth of material around
the RTSF perimeter.
Where necessary, low
 
embankments will be constructed to
 
correct the gradients of
 
filter drains. The decant
 
pumping arrangement will
require an embankment on which the pumps can stand, which will also provide an access road facility.
Filter Drain System: the
 
beneficial reduction of pore water pressure
 
in the underflow results in a
 
lowering of the phreatic surface
 
levels
and improved tailings
 
strength development,
 
along with a reduction
 
in the risk
 
of slope undercutting
 
at the slope
 
toe. This is
 
achieved
through the use
 
of a filter
 
drain network which promotes
 
high permeability conducts
 
which evacuates pore water while
 
holding back solid
particles. The
 
impact of
 
an effective
 
drainage system
 
is to
 
activate
 
the radial
 
flow of
 
water
 
towards
 
the drain
 
centers. Various
 
drain
configurations have been incorporated into the RTSF design. These variations have been optimised through iterative stages of numerical
seepage analysis.
Scavenger Well System: the scavenger well system is
 
a viable alternative to
 
managing the inherent
 
geotechnical risks and financial
 
burden
of a synthetic barrier. The system
 
exploits the existing geo-hydrological regime beneath the proposed RTSF,
 
which consists of an aquifer
comprising of two horizons;
 
the upper 20m to
 
30m a weathered
 
aquifer and an
 
underlying fractured aquifer.
 
The transmissivity of the
fractured aquifer is limited to
 
discontinuities in the rock mass.
 
This confines ground water flow
 
almost entirely to the upper
 
weathered
aquifer.
A well system
 
of three rows
 
of scavenger wells
 
is envisaged, consisting
 
of an outer
 
row along the Toe
 
Wall of
 
the facility,
 
the Toe
 
Wall
Scavenger Wells
 
(TWSWs), a middle
 
row along the line
 
of the Heel Wall
 
Scavenger Wells
 
(HWSWs) and an
 
inner third row to
 
be drilled
after the fourth bench of the RTSF.
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The HWSW and
 
TWSW wells would
 
be installed from
 
the outset, with
 
the TWSW wells
 
being used initially as
 
monitoring wells. As
 
and
where necessary, additional boreholes will be established downstream for additional scavenger well purposes.
Deposition System:
 
on-wall cyclones will
 
be used to
 
deposit the tailings
 
pumped from the
 
DP2 Plant some
 
46km to
 
the RTSF
 
through
500mm high-density polyethylene (HDPE) lined steel pipelines. A
 
relatively low target slurry density
 
of 1.38t/m
3
 
has been stipulated for
the RTSF.
The slurry is pumped in
 
trains of 600ktpm per pipeline,
 
starting with two pipelines to accommodate the
 
production rate of 1.2Mtpm. The
pipe servitude enters the RTSF
 
site from the north-east where
 
the pipes will be taken
 
through the pre-cast box
 
culverts to the inside of
the Toe Wall. One pipe will continue straight onto the dam
 
with the pipe being extended up the side of the dam, suitably profiled across
the benches,
 
as the
 
dam develops
 
in height.
 
Two
 
of the
 
slurry pipes
 
will be
 
directed clockwise
 
along the
 
inside of
 
the Toe
 
Wall, one
extending 20% and the second 40% around the perimeter. The other two slurry pipes will be similarly routed, but anti-clockwise.
For the first three years of operation, 250mm cyclones will be deployed so as to
 
ensure a maximum split of underflow during the period
when underflow demand is greatest
 
due to wall construction
 
requirements. This cyclone
 
arrangement has been
 
deployed in the South
African tailings environment since the 1980s.
A 600ktpm slurry stream will require
 
some 20 to 25 cyclones to deposit
 
material based on a cyclone throughput
 
of 40tph to 45tph. The
eventual layout of cyclones will consider
 
some 37 to 41 cyclones
 
per dam sector of
 
around 1,000m to 1,100m. This
 
is estimated to service
approximately 25% to 30% of the dam perimeter with
 
all five slurry streams operating (5% to 6% per pipeline).
 
This is expected to deliver
a deposition to drying ratio of 1.3 to 1.4 which is considered acceptable for sustainable underflow consolidation.
Once the underflow
 
wall has been established,
 
consideration may be given to
 
changing from the Multiple
 
Deposition Point (MDP) 250mm
cyclones to the less efficient, but more economic Single Deposition Point (SDP) system, in this case in the form of Self-Propelled
 
Cyclone
Units (SPCUs). This system has been successfully deployed on an East Rand TSF for the last eight years.
Decant System: the decanting system
 
handles the clear water from the deposited slurry which separates
 
into clear water and saturated
solids on the TSF. The clear water accumulates in a supernatant pond or pool in the basin which becomes available for decanting and re-
cycling through
 
the process.
 
The selected decant
 
system is
 
a series of
 
pumps which
 
are commonly
 
used globally.
 
In the
 
South African
mining space, gravity
 
penstocks predominate in decanting
 
solutions, however this would
 
not provide the optimal
 
solution for the RTSF
case.
The pumping system to be deployed at the basin pond at RTSF will consist of a skid-mounted land-based pump with ancillary power and
control equipment which
 
will be intermittently
 
moved across the
 
basin from south
 
east to the
 
middle and raised
 
vertically as the
 
dam
develops.
Return Water System:
 
the water recovered from the RTSF will be
 
returned to DP2 and any other
 
sites that may require water. The return
water system comprises a decant water receiving stilling chamber that overflows into twin concrete
 
lined silt traps that in turn spill over
into twin HDPE lined RWDs. Return water pumps at the RWDs, pump water back to DP2 through twin overland pipes following the same
servitude as the slurry delivery pipes.
Other Supporting
 
Infrastructure: power
 
will be
 
delivered to
 
the RTSF
 
complex via
 
a 10km
 
33kV overhead
 
powerlines from
 
Kloof.
 
The
power is first stepped to 11kV prior
 
to transmission to required locations via overhead
 
bundled lines. Numerous pole transformers step
down the power to
 
3.3kV for distribution to
 
the scavenger wells. Diesel
 
back-up power generators are placed to
 
sustain critical operability
of seepage recycling as well as
 
alternate powering of the decant
 
pumps and return water pumps.
 
Solar energy will be utilized
 
to power
the administrative buildings and external ergonomic lighting.
For security against theft and destruction
 
against infrastructure, the entire RTSF complex will be surrounded by a 2.1m
 
tall shotcrete wall
with razor coil on the top. Tamper sensors will be placed on the wall that are wirelessly linked to a permanently manned security control
room.
 
exhibit961p2i0 exhibit961p95i0
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
95
Figure 30 shows the layout of the RTSF.
Figure 30: RTSF Layout
Source:
 
Beric Robertson Tailings,
 
2020
The revised
 
design of the
 
RTSF was
 
undertaken by
 
Beric Robinson
 
Tailings
 
for the
 
current configuration
 
of the
 
FWGR operations.
 
This
study was independently reviewed by a Sound Mining appointed specialists who concluded that there are no fatal flaws in the design.
15.2.3.
 
Concluding Comments
Sound Mining has reviewed the Far West
 
Gold Recoveries Regional Tailings
 
Dam Report prepared by Beric Robinson Tailings
 
(2020) and
has concluded that the report provides a solid basis for
 
the future development of a safe RTSF.
 
Sound Mining believes that by following
the principles and design strategy
 
outlined in the report, the
 
chances of a TSF
 
failure will be unlikely.
 
However,
 
cognizance needs to be
taken of the uncertainties discussed subjectively below.
 
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
96
There are concept risks associated with the
 
recommended RTSF tailings disposal solution which
 
proposes the implementation of a fourth
Generation, unlined, ring-dyke, upstream, on-wall cyclone dam with a pumped decant system, on a site with poor to moderate soils and
a high-water table. Furthermore, for
 
risk analysis purposes it is noted that
 
there is an absence of water
 
courses over the intended RTSF
site area and that the operation of the on-wall cyclone disposal method will initially be relatively labor intensive.
Based on the proposed RTSF solution, the following inherent risks are apparent:
●
the stability of upstream development;
●
the sufficiency of underflow to form an adequate wall around the perimeter ring dyke;
●
the capability of the management and labor force to perform as required;
●
the ability of a pumped system to decant adequately; and
●
undue impacts on the environment.
The proposed solution has been
 
operated on a number of South
 
African TSFs over the last three to
 
four decades. Each TSF has performed
as expected, demonstrating stability with the underflow arisings. All these TSFs have and in some cases still operate without evidence of
overtopping with
 
pumped decants.
 
In these
 
cases, while
 
water contaminant
 
plumes have
 
been generated,
 
their impact has
 
not been
shown to be significant.
The RTSF
 
design has
 
been undertaken
 
by a
 
team of
 
assembled experts
 
who are
 
familiar with
 
the application
 
of an
 
upstream cyclone
method
 
delivering
 
relatively
 
uniform
 
sized
 
tailings
 
in
 
the
 
South
 
African
 
context.
 
The
 
lead
 
RTSF
 
designer
 
has
 
over
30 years’
 
experience in similar
 
local installations
 
and operations.
 
The design
 
work has
 
also been independently
 
reviewed by
 
two local
tailings engineering specialists.
The effectiveness
 
of the proposed
 
RTSF is
 
dependent on the
 
delivery of
 
acceptable underflow particle
 
quality and
 
quantity. Failure
 
to
deliver on either of
 
these parameters will compromise wall development
 
and stability. Historical observations of a number
 
of similar TSFs
have shown that TSF development has progressed adequately with no significant design risks realized.
Underflow demand is high during the initial development phase and increases as the dam elevation is increased and the dam perimeter
is subsequently
 
decreased. This
 
has
 
been accommodated
 
in the
 
RTSF
 
design with
 
the decision
 
to deploy
 
the
 
more efficient
 
250mm
cyclones during the start-up period.
It is noted that the RTSF design is based on underflow splits currently achieved at
 
the Driefontein 4 TSF.
 
Although in the early years, the
RTSF design underflow demand is close to these levels, this demand drops in the later years proving an acceptable error margin.
Hydrological risk is managed through
 
the provision of a substantial
 
freeboard over the LoM and
 
the verification through modelling that
the storm water capacity of the dam is in
 
excess of 20Mm
3
 
which compares to a Probable Maximum Precipitation (PMP) event
 
of around
1,600Mm
3
.
The requirement for
 
the management of
 
tailings disposal operations
 
is stipulated in
 
SANS 10286 which
 
was initially published
 
in 1998.
Recent initiatives through ICMM and ICOLD have provided guidelines for corporate management. Despite this,
 
it is a recognized fact that
most TSF disasters have been attributable to management failures.
FWGR’s
 
approach to
 
the management
 
of surface
 
mining risk has
 
been to
 
adopt a
 
pro-active strategy,
 
whereby maintenance
 
and risk-
reducing activities
 
are carried out
 
timeously. This operating philosophy
 
is now being
 
formalized and outlined
 
in their management
 
system.
Effective operational
 
performance will deliver
 
into the
 
achievement of the
 
necessary targets of
 
appropriate underflow
 
characteristics,
wall geometry
 
and consistently acceptable
 
freeboard. For
 
this risk to
 
be managed
 
it is imperative
 
that all
 
involved operational
 
parties
including specialist support services and equipment
 
suppliers, are appointed on
 
the basis of their appropriate
 
experience, capacity and
competency.
Based on FWGR’s
 
extensive history
 
of operational
 
experience in surface
 
mining and tailings
 
disposal, it is
 
Sound Mining’s
 
opinion that
operational risks can be adequately controlled.
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
97
The current DP2 deposition at Driefontein
 
4 TSF (0.5Mtpm) can only continue
 
until 31 December 2025, at current
 
deposition rates. The
commissioning
 
of
 
the
 
RTSF
 
has
 
been
 
delayed
 
until
 
January
 
2030
 
while
 
approval
 
for
 
the
 
amended
 
design
 
is
 
being
 
sought
 
from
 
the
authorities.
 
Due
 
to
 
this
 
delay,
 
the
 
Leeudoorn
 
TSF
 
has
 
to
 
be
 
converted
 
to
 
a
 
cyclone
 
depositioning
 
system
 
to
 
accommodate
 
FWGR
deposition
 
requirement
 
between
 
January
 
2026
 
and
 
December
 
2029.
 
Any
 
delay
 
in
 
the
 
RTSF
 
commissioning
 
may
 
result
 
in
 
reduced
production until such time as full capacity of the RTSF is available.
 
Sound Mining is of the
 
opinion that the selected
 
site is appropriate for the intended construction
 
and operation of the RTSF and endorses
the proposed scavenger well solution
 
for ground water as this
 
can provide a sustainable solution
 
to the RTSF’s future plume management
requirements.
15.2.4.
 
Technical Studies - Water
Water is required
 
for the hydro
 
-mining of the TSF’s
 
and for the processing
 
of the reclaimed material.
 
FWGR commissioned an external
assessment of
 
the water
 
requirement for
 
an expanded
 
operation in
 
2020. The
 
work involved
 
modelling the
 
waterflows to
 
establish a
water balance for the operation at steady state. The inputs to the model were examined by Sound Mining and found to be appropriate.
The planned water supply will primarily be from the RTSF return water and from underground water sources (Figure 31).
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
exhibit961p21i0
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
98
Figure 31: TSF Location, Make-up Water Shafts, Processing Plants and Pipeline Layouts
Source:
 
Sound Mining, 2022
Kloof
 
10
 
shaft,
 
which
 
is
 
located
 
at
 
the
 
Libanon
 
TSF,
 
will
 
supply
 
make-up
 
water
 
for
 
the
 
hydro-mining
 
of
 
Kloof
 
1
 
TSF,
 
Libanon
 
TSF,
Venterspost North
 
TSF and Venterspost
 
South TSF.
 
Two WULs
 
have been granted
 
for the Kloof
 
and Driefontein
 
operating areas, which
permit the pumping of water from nearby underground workings as presented in Table 20.
Table 20: Underground Water Sources
Facility
Permitted Quantity
(m
3
/a)
Kloof 10 Shaft
9,487,500
Driefontein 10 Shaft
2,555,000
Source:
 
Sound Mining,
 
2022; and FWGR, 2020
Return water from Driefontein
 
4 TSF is currently re-used
 
for the reclamation of the Driefontein
 
5 TSF and associated processing at
 
DP2.
Make-up water is sourced from Driefontein 10 shaft (~6,000m
3
/d).
Water from DP2, the Leeudoorn TSF,
 
RTSF and Kloof 10 shaft will be pumped to a Central Water
 
Facility (CWF). There are currently four
water
 
tanks
 
at
 
the
 
CWF
 
used for
 
water
 
storage.
 
Water
 
will
 
be
 
pumped from
 
the
 
CWF
 
to
 
the
 
necessary sites
 
for
 
hydro-mining
 
and
processing.
Water and slurry from the hydro-mining of distal TSFs
 
will be pumped to the pumping stations closer to the hydro-mining sites to piggy-
back off these sites to avoid having to use
 
additional Booster Pump Stations (BPS). The water pumps
 
at DP2 supply sufficient pressure for
the Driefontein 5 TSF hydro-mining operation.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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High-pressure water
 
pumps will
 
be placed
 
at the
 
various TSFs
 
(i.e., excluding
 
Driefontein 3
 
TSF) to
 
avoid having
 
high-pressure water
pipelines between the
 
hydro-mining sites and the processing
 
plant. They will be
 
utilized in series to deliver
 
the required pressure of 25bar
to 30bar, for hydro
 
-mining.
The mining operation
 
will pump approximately 42,000m
3
/d of water from
 
the various mining
 
sites to feed the
 
DP2 expansion facility. Each
production unit (or
 
monitor) requires in the
 
order of 10,500m
3
/d for the hydro-mining of
 
TSF material and each
 
site will have two
 
monitor
units running
 
and one
 
on standby
 
during steady
 
state operations.
 
Water
 
will be
 
recovered from
 
the various
 
deposition
 
facilities and
returned to the system.
Make-up water (i.e.,
 
30% - 40%
 
of the total water
 
requirement) will be
 
required to compensate
 
after accounting for
 
losses and rainfall
(~18,000m
3
/d), with Kloof 10 shaft alone, having ample available capacity (~36,000m
3
/d).
 
15.2.4.1.
 
Concluding Comments
The available water supply more
 
than adequately meets the
 
FWGR requirements including the make-up water
 
during the dry season.
 
The
supply from Driefontein 10 shaft and Kloof 10 shaft do not exceed the permissible pumping rates approved in the WULs.
According to the
 
WULs the return
 
water will be
 
treated in an
 
advanced water treatment facility
 
and discharged into
 
Leeuspruit or disposed
to dust
 
suppression. Instead
 
of this
 
open configuration
 
FWGR has
 
opted for
 
a closed
 
water system
 
throughout the
 
LoM so
 
no water
treatment or discharge into the surface water courses will occur. The final water still in use at the point of closure will be deposited onto
the RTSF for evaporation,
 
or an alternative water treatment and use will be considered.
15.2.5.
 
Technical Studies - Power
The power
 
supply and
 
Point of
 
Delivery (PoD)
 
for the
 
operations has
 
been determined
 
by independent
 
specialists. These
 
have been
reviewed and are deemed appropriate for the operation. Power is currently supplied to transformers at the various sites (Table 21) from
Eskom’s 132kV and 44kV grid, where the voltage is reduced to 6.6kV.
Table 21: Power Requirements for FWGR Operations
Site
Installed
 
(kVA)
Used
 
(kVA)
Available
 
(kVA)
Comments
Driefontein 8 Shaft
20,000
11,000
9,000
Sufficient for reclamation operations
Driefontein 13 Shaft
10,000
6,600
3,400
DP2
40,000
-
40,000
18,000kVA required by DP2 at 1.2Mtpm capacity
Libanon
40,000
22,000
18,000
Sufficient for reclamation operations
Kloof 4 Shaft
80,000
64,000
16,000
3,500kVA required by RTSF
Kloof Main Complex
140,000
81,000
59,000
Leeudoorn Shaft
100,000
61,000
39,000
2,500kVA required by Leeudoorn TSF
Total
430,000
245,600
184,400
Source:
 
FWGR, 2022; and Sound Mining, 2022
The capital estimates take account of
 
the available equipment at the respective substations and routing
 
from the substations. The PoDs
feeding the substations are shown in Table 22.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Table 22: Eskom Points of Delivery
Eskom PoD
NMD
Maximum Utilized
NMD
Transformer Size
Comments
Driefontein 8 Shaft
14.0MVA
11.0MVA
4 by 5MVA
Driefontein 13 Shaft
4.3MVA
6.6MVA
4 by 5MVA
There are sufficient transformers
Kloof 1 Shaft (132kV)
81MVA
81MVA
7 by 20MVA
Libanon Shaft
5.2MVA
6.92MVA
1 by 20MVA
FWGR to install 1 by 20MVA transformer
Libanon Gold
22MVA
19.3MVA
2 by 20MVA
Source:
 
FWGR, 2022; and Sound Mining,
 
2022
Suitable PoDs have been
 
identified for the FWGR operations,
 
as shown in Figure
 
31. Eskom will be
 
notified of the
 
increased load - Nominal
Maximum Demand (NMD) to be catered for within the existing
 
contracts - at the appropriate
 
time. Overhead lines will be utilized as far
as possible
 
to reduce
 
the installation
 
costs and
 
reduce the
 
risk of
 
cable theft.
 
The aggregate
 
load requirement
 
has been
 
based on
 
a
conservative diversity factor of 0.8 for the low voltage loads, which represents a relatively flat load profile.
The current Eskom
 
supply is stable
 
in that it
 
is linked
 
to the main
 
ring feed.
 
There is a
 
curtailment agreement in
 
place and only
 
under
severe power disruption, would
 
the area lose supply.
 
In this case there
 
is still sufficient capacity
 
to run the vital
 
plant areas by shutting
down the milling section
 
and using diesel generators which will
 
provide enough emergency power to ensure
 
that selected critical process
plant equipment is able to re-start immediately in the event of a power failure.
15.2.5.1.
 
Concluding Comment
It is
 
noted by
 
Sound Mining
 
that the
 
power estimates
 
determined are
 
considered appropriate
 
for the
 
planned operations. The
 
power
requirement to the various components of the FWGR operation is within the spare capacity available to the related ongoing and current
underground mining and
 
processing operations. Management
 
will need to
 
ensure timely modifications
 
to the agreements
 
with Eskom
and sufficient allowance for the rising cost of power.
15.2.6.
 
Technical Studies - Pipelines and Pumping
FWGR’s
 
expansion planning
 
requires a
 
network of
 
slurry pipelines
 
from
 
the TSF
 
sites to
 
DP2,
 
and tailings
 
pipelines from
 
DP2 to
 
the
Leeudoorn TSF and to the RTSF.
 
Low-pressure return water pipelines will be required from the RTSF
 
to the CWF and from the CWF back
to the TSF sites. High
 
pressure pumps will provide the
 
mining operations with the pressures
 
they require (25bar to 30bar).
 
This eliminates
having to install high-pressure pipelines from the processing plants to the TSF sites.
FWGR worked with
 
specialists on the design
 
and cost estimates for
 
the pipelines. Cognizance was
 
also taken of the
 
environment, mine
owned land and already disturbed areas.
 
The pipeline layout has been designed
 
to make use of
 
the shortest possible routes, while also
using existing mine servitudes as far as possible. Use was made of the road servitudes to prevent additional impacts associated with the
clearing and construction of the pipelines, and to ensure that the pipelines are easily accessed for maintenance. Alternative routes were
also considered to avoid wetland
 
areas; and existing impacted land,
 
in the context of the
 
effect on operating costs
 
due to the influence
of topographical and pumping costs. A summary of the current pipeline and pumping infrastructure Figure 31, is provided in Table 23.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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101
Table 23: Existing Pipeline and Pumping Infrastructure
Existing Pipeline and Pumping Infrastructure
Approvals
Pre-screening and Slurry Pumping Reclamation Station at Driefontein 5 TSF
Hydraulic Mining Site
Approved EA and Environmental Management Plan
(EMP)
Fine Screening and Slurry Transfer Pump Station at Mining Site
Approved EA and EMP
Slurry Pipeline between Driefontein 5 TSF and DP2
Approved EA and EMP
Tailings Pipeline from DP2 to Driefontein 4 TSF
Approved EA and EMP
Return Water Dam at Driefontein 4 TSF and Process Water Supply to DP2
Approved EA and EMP
Process Water Make-up Storage and Pump Station at Driefontein 10 Shaft
Approved EA, Integrated Water Use Licenses (IWUL)
and EMP
Process Water from Driefontein 10 Shaft to DP2
Approved EA, IWUL and EMP
Source:
 
Sound Mining, 2022
A summary of the additional piping requirements is presented in Table 24.
Table 24: Phase 2 Pipeline and Pumping Infrastructure
Planned Pipeline and Pumping Infrastructure
Approvals
Pre-screening and Slurry Pumping Reclamation Stations at Driefontein 3 TSF
Approved EA and EMP
Pre-screening and Slurry Pumping Reclamation Stations at Kloof 1 TSF
Approved IEA and EMP
Pre-screening and Slurry Pumping Reclamation Stations at Libanon TSF
Approved IEA and EMP
Pre-screening and Slurry Pumping Reclamation Stations at Venterspost North TSF
Approved IEA and EMP
Pre-screening and Slurry Pumping Reclamation Stations at Venterspost South TSF
Approved IEA and EMP
Slurry Pipeline from Libanon TSF to DP2
Approved IEA and EMP
Slurry Pipeline from Venterspost South TSF to Libanon TSF
Approved IEA and EMP
Slurry Pipeline from Kloof 1 TSF to DP2
Approved IEA and EMP
Return Water Pipeline from CWF to DP2
Approved IEA and EMP
Water Pipeline from DP2 to Driefontein 3 TSF
Approved EA and EMP
Return Water Pipeline from CWF to Libanon TSF
Approved IEA and EMP
Return Water Pipeline from CWF to Venterspost South TSF
Approved IEA and EMP
Process Water Make-up Storage and Pump Station at Kloof 10 Shaft
Approved IEA, IWUL and EMP
Process Water from Kloof 10 Shaft to DP2
Approved IEA, IWUL and EMP
Slurry Pipeline from DP2 to the RTSF
Approved IEA and EMP
Slurry Pipeline from Libanon TSF to DP2
Approved IEA and EMP
Source:
 
Sound Mining, 2022
The civil infrastructure requirements for pipeline
 
crossings of road/rail, pipe jack
 
culverts, open/minor culverts have been
 
considered and
amount to around 65 installations.
15.2.6.1.
 
Concluding Comments
The QP considers the pipeline infrastructure design to be well-engineered
 
and underpinned by practical experience. There appear to be
no fatal flaws
 
in the thinking behind amendments to
 
various EIAs and EMPs
 
to accommodate the changes to
 
the pipeline and pumping
infrastructure.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p102i0 exhibit961p102i1 exhibit961p102i2 exhibit961p102i3
 
 
 
 
 
 
 
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(Proprietary) Limited
Document No: PR/SMI/1203/22
102
 
800
 
1,000
 
1,200
 
1,400
 
1,600
 
1,800
 
2,000
 
2,200
 
2,400
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Gold Price (USD/oz)
Gold's Monthly Closing Price
Trendline
Upper and Lower Standard Deviation Bands
16.
 
GOLD MARKET
Item 16 (i) and (ii)
All gold produced is delivered to the Rand Refinery for
 
refining with no restrictions on the quantity or time frame.
 
DRDGOLD has a long-standing off
take agreement with the Rand Refinery according
 
to which gold is sold
 
on the prevailing spot in
 
South African Rands. When applying
 
the 30 June 2022
spot exchange rate (ZAR16.29/USD) to the associated gold price of USD1,819.06/oz Au, a real gold price of ZAR952,721.20/kg is computed.
Gold is a precious metal,
 
refined and sold as bullion
 
on the international market. It is traded
 
on the global financial markets and
 
has traditionally been
used for jewelry, bartering or storing wealth. Aside from the gold holdings of central
 
banks, current uses of gold include jewelry, private investment,
dentistry, medicine and technology (Table 25).
Table 25: Above Ground Gold Stocks in 2021
Description
Quantity
(t)
Contribution
(%)
Jewelry
94,464.0
46%
Private Investment
45,456.0
22%
Bank Holdings
34,592.3
17%
Other
30,726.0
15%
Source:
 
GoldHub, 2022
The largest use of gold is in jewelry, accounting for approximately 46% of the above-ground gold. Gold does not follow the usual supply and demand
logic because it is virtually indestructible and can easily be recycled. In
 
addition, gold stored in the vaults of banks
 
is relatively illiquid and subject to
the vagaries of global economies. These characteristics of the gold market make it challenging to forecast the gold price.
16.1.
 
Gold Price Trends
The QP
 
considered a
 
five-year period
 
of historical
 
analysis to
 
form an
 
opinion of
 
the gold
 
price and
 
exchange rate
 
to be
 
expected going
 
forward
because the QP
 
is of
 
the opinion
 
that a
 
five-year period
 
sufficiently covers
 
the market
 
volatility seen
 
in the
 
international gold
 
market. This
 
is also
consistent with the five-year period of consensus
 
pricing relied on for the price
 
forecast. The gold price increased in 2020 due
 
to uncertainties related
to the outbreak of Covid-19.
 
It then steadily declined to
 
a spot price of ~ZAR945,295/kg
 
(i.e., USD1,806.89/oz at ZAR16.27/USD) as at
 
30 June 2022
(Graph 5).
Graph 5: Gold Price Historical Trendline
Source:
 
Sound Mining, 2022
The linear trendline indicates robust gold price potential over the near to medium-term.
16.2.
 
Exchange Rate Forecast
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p103i0 exhibit961p103i1 exhibit961p103i2 exhibit961p103i3
 
 
 
 
 
 
 
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(Proprietary) Limited
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103
 
10
 
11
 
12
 
13
 
14
 
15
 
16
 
17
 
18
 
19
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Exchange Rate (ZAR/USD)
Monthly Closing USD/ZAR Rate
Trendline
Upper and Lower Standard Deviation Bands
The ZAR
 
to USD
 
exchange
 
rate
 
saw record
 
breaking highs
 
in the
 
second quarter
 
of 2020
 
(ZAR19.35/USD) but
 
has subsequently
 
dropped back
 
to
ZAR16.27/USD as at 30 June 2022. A factor
 
in the deterioration of the local
 
currency in 2020 was the lockdowns
 
and economic volatility brought on
by Covid-19.
The spot exchange rate of ZAR16.27/USD compares well with the six-year historical trendline as visually displayed in Graph 6.
Graph 6: Exchange Rate Historical Trendline
Source:
 
Sound Mining, 2022
Various service providers and financial institutions are consulted to determine consensus forecasts of the gold price (Table 26).
Table 26: Long Term
 
Consensus Forecasts in Nominal Terms
Description
Year 1
(FY2023)
Year 2
(FY2024)
Year 3
(FY2025)
Year 4
(FY2026)
Year 5
(FY2027)
Gold Price (USD/oz)
1,823
1,799
1,751
1,724
1,496
Exchange Rate (ZAR/USD)
15.60
15.74
15.77
15.79
15.20
Gold Price (ZAR/kg)
914,294
910,051
888,083
875,474
731,081
Source:
 
DRDGOLD, 2022
The economic assessment for the
 
Mineral Reserve estimate
 
relies on a real
 
price of ZAR914,294/kg (i.e., USD1,823/oz
 
at ZAR15.60/USD) in 30 June
2022 terms as provided by FWGR. The QP has considered the consensus forecasts supplied by FWGR against linear trends in the demand and supply
of gold as recorded over the period from 2012 to 2021 to examine whether these forecasts are reasonable.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p104i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p104i1
 
 
 
 
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104
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Quantity (t)
 
Year
4,100
4,200
4,300
4,400
4,500
4,600
4,700
4,800
4,900
5,000
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Quantity (t)
 
Year
16.3.
 
Global Demand
Graph 7 reveals a gradual reduction in demand (~14.2%) over the past ten years (2012 to 2021).
Graph 7: Global Gold Demand from 2012 to 2021
Source:
 
GoldHub, 2022
16.4.
 
Global Supply
The global gold supply from mining and recycling activities over the same period is presented in Graph 8.
Graph 8: Global Gold Supply from 2012
 
to 2021
Source:
 
GoldHub, 2022
While the graph suggests an overall
 
upward trend from 2012
 
to 2021 (~2.6%), the supply generally levelled
 
out over the past five
 
years. The supply
from mining satisfied some 76% of the demand in 2021, with the balance met by recycled gold.
 
Gold supply from mining increased by approximately 106t during 2021 (3,582t) when compared with 2020 (3,476t) despite an overall drop in supply
since 2019 (GoldHub, 2022). Below are the top ten gold producing countries in 2021 Table 27.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Table 27: Global Gold Production
Rank
Country
Production
(t)
2016
2017
2018
2019
2020
2021
1
China
464
429
404
383
368
332
2
Russia
262
281
295
330
331
331
3
Australia
288
293
313
325
328
315
4
Canada
163
171
189
183
171
193
5
United States of America
229
236
225
200
190
187
6
Ghana
131
133
149
142
139
129
7
Peru
166
167
163
143
98
127
8
Mexico
131
120
118
109
102
125
9
Indonesia
118
118
153
92
101
118
10
South Africa
163
154
128
111
99
114
Source:
 
GoldHub,
 
2022
Even though China has
 
experienced five years
 
of consecutive decline
 
in annual gold production,
 
it remains the
 
largest producer of gold (~10%
 
of global
gold production in 2021).
16.5.
 
Concluding Comments
The QP notes a short term
 
up-tick despite the long-term reduction in demand
 
together with an essentially constant
 
supply over the past five
 
years.
These trends are not inconsistent with the forecast price trend in Table 25. The QP is satisfied that a real 30 June 2022 gold price of ZAR914,294/kg
 
is
a reasonably conservative assumption for examining the economic viability of the Mineral Reserve estimate.
 
exhibit961p2i0
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17.
 
ENVIRONMENTAL STUDIES, PERMITTING, OR AGREEMENTS WITH LOCAL INDIVIDUALS OR GROUPS
Item 17 (i); (ii); (iii); (iv); (v); (vi) and (vii)
A
 
review
 
of
 
the
 
environmental
 
status
 
was
 
undertaken
 
by
 
Sound
 
Mining.
 
It
 
relies
 
on
 
information
 
provided
 
by
 
DRDGOLD
 
and
 
FWGR.
 
The
 
key
environmental aspects are
 
discussed below,
 
along with any
 
associated liabilities and
 
risks. Risks or
 
liabilities, that would
 
generally be addressed
 
in
terms of accepted environmental practice and which do not have significant cost implications, have not been discussed.
17.1.
 
Permitting Status
The environmental and
 
social compliance
 
status in relation
 
to South
 
African legislation
 
is summarised
 
in Item 21.
 
The following expands
 
on the relevant
authorizations or permits required.
17.1.1.
 
The National Environmental Management Act (NEMA)
EAs have been granted in terms of NEMA and the Environmental Impact Assessment (EIA) Regulations of 2014 as described below.
Driefontein
 
Mining
 
Right
 
Area:
 
in
 
March
 
2016,
 
Sibanye
 
Gold
 
Limited
 
submitted
 
an
 
application
 
for
 
an
 
IEA
 
including
 
a
Waste
 
Management
 
License
 
(WML)
 
for
 
the
 
proposed
 
activities
 
on
 
the
 
Driefontein
 
Mining
 
Right
 
area
 
(DMRE
 
Ref.
 
No.:
GP 30/5/1/2/2 (51) MR. The DMRE granted the EA Ref. No.: GP 30/5/1/2/3/2/1 (51) EM on 11 May 2018.
The Driefontein
 
MR and
 
EA are
 
in good
 
legal standing.
 
Sibanye Gold
 
applied for
 
a Section
 
102 amendment
 
to the
 
MR to
 
include the
Driefontein 4 TSF,
 
which has been granted. FWGR has submitted an
 
application to the DMRE for the transfer
 
of the existing Driefontein
EA (Ref. No.: GP 30/5/1/2/3/2/1 (51) EM) as well as the
 
inclusion of related activities covered by the existing Driefontein EMP relevant to
the FWGR operation. The amendment was for the following:
●
the transfer of the Driefontein EA to FWGR;
●
a modification to scope of how the Phase 1 operations are currently being executed; and
●
to include DP2, DP3 and Driefontein 4 TSF.
Permission for depositing
 
onto the Driefontein
 
4 TSF
 
is contained
 
in the original
 
Driefontein EMP
 
associated with the
 
MR. This EMP
 
is
needed for the operation’s
 
waste management obligations. The pipelines fall
 
within the scope of the existing infrastructure
 
recorded in
the current EA and EMP.
 
Table 28 summarizes the current environmental legal standing for the Driefontein
 
mining area.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Table 28: Required Environmental Legislation and the Status for the Driefontein Mining Area
Act, Regulation or By-Law
Requirements
Status
Driefontein Area
MPRDA, 2002 (Act No. 28 of 2002)
Mining Right
This is currently in place.
Social and Labor Plan (SLP)
FWGR has an internally signed-off SLP, however,
 
an SLP is
not required for FWGR.
NEMA, 1998 (Act No. 107 of 1998):
Environmental Impact Assessment
Regulations 2014 (GNR 982)
EA
This is currently in place; an application has been submitted
for a name change to FWGR and for the inclusion of the
Driefontein 4 TSF.
EMPr/EIA
Forms part of the Driefontein EMPr/EIA.
The Rehabilitation and Closure Cost plan
must be annually adjusted.
This is guaranteed through a Guardrisk Cell Captive.
National Environmental
Management: Air Quality Act, 2004
(Act No. 39 of 2004) (NEM:AQA)
An Atmospheric Emissions License (AEL) is
required for any listed activity within this
Act.
N/A
NEM:WA, 2008 (Act No. 59 of
2008)
A WML is required for any listed activities
within the Act.
There is an EA in place for Driefontein. The TSFs are
currently managed under Sibanye Gold’s existing EMPs
which were in operation prior to the legislation coming into
effect.
National Heritage Resources Act,
1999 (Act No. 25 of 1999) (NHRA)
Permission from SAHRA is required for
the removal of graves.
This area is currently operational, and all correct process
have been followed.
NWA,
 
1998 (Act No. 36 of 1998)
Any abstraction, storage, diversion, flow
reduction and disposal of water and
effluent requires an IWUL.
This is included in the IWUL. An application was submitted
for a name change and the transfer of applicable water uses
to FWGR.
The application to change the name from WRTRP to FWGR
has been approved.
Source:
 
FWGR, 2020; and Sound Mining,
 
2022
Kloof Mining Right Area: in March 2016, Sibanye Gold submitted
 
an application for an IEA including a WML for the proposed
 
activities on
the Kloof Mining Right area
 
(DMRE Ref.
 
No.: GP 30/5/1/2/2 (66) MR). The
 
DMRE granted the IEA
 
(Ref. No.:
 
GP 30/5/1/2/3/2/1 (66) EM
on 11 May 2018.
 
Table 28 summarizes the current
 
environmental legal standing of the
 
Kloof mining area which
 
includes the
 
new pipelines
and the RTSF.
The
 
Kloof
 
MR
 
is
 
in
 
good
 
legal
 
standing
 
and
 
its
 
IEA
 
has
 
been
 
transferred
 
to
 
FWGR.
 
Sibanye
 
Gold
 
has
 
applied
 
for
 
two
 
Section
 
102
amendments to the
 
Kloof MR for
 
the inclusion of
 
the Venterspost
 
North and South
 
TSFs as
 
well as land
 
for the
 
RTSF.
 
The Section 102
amendment
 
for
 
Venterspost
 
North
 
and
 
Venterspost
 
South
 
TSFs
 
was
 
granted
 
at
 
the
 
end
 
of
 
2021.
 
The
 
RTSF
Section 102 amendment was granted but has not been executed by Sibanye Gold as yet.
17.1.2.
 
National Environmental Waste Management
 
Act (NEM:WA)
FWGR has confirmed that their
 
TSFs have an approved Code of Practice (CoP)
 
on Mine Residue Deposits in
 
terms of the MPRDA. The
 
TSFs
on the
 
Driefontein MR
 
and Kloof
 
MR are
 
covered under
 
this CoP.
 
For Phase
 
2, the
 
following waste
 
management activities
 
have been
granted in terms of
 
GNR 921 of 13 November
 
2013 (as amended) under the NEM:WA,
 
2008 (Act No. 59 of 2008)
 
(Table 29). The
 
DMRE
granted the
 
IEA Ref.
 
No.: GP
 
30/5/1/2/3/2/1 (66)
 
EM on
 
11 May
 
2018. The
 
waste management
 
activities in
 
Table
 
30 allow
 
FWGR to
construct the RTSF and associated infrastructure. The requirements under NEM:WA have been covered.
Table 29: Activities for Phase 2 Requiring a Waste Management License (WML)
Number of the Relevant
Government Notice
Listed Activity Number
Authorised
Description of Activity
GNR 921
Activity B (1)
Construction and operation of the RTSF and the sewage treatment plant
GNR 921
Activity B (7)
Operation of RTSF
GNR 921
Activity B (11)
Establishment of the RTSF
Source:
 
FWGR, 2020
exhibit961p2i0
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17.1.3.
 
National Water Act (NWA)
FWGR
 
is
 
operating
 
under
 
two
 
authorised
 
IWUL,
 
FWGR
 
License
 
No.:
 
10/C22B/ACFGI/4976
 
and
 
Driefontein
 
License
 
No.:
10/C23E/ACEFGJ4527 both issued 9 March 2017. The
 
FWGR IWUL is valid for a period
 
of twenty years from the date of issuance and may
be reviewed at intervals of
 
not more than five
 
years. The Driefontein IWUL is valid
 
for a period of
 
fourteen years from the date of
 
issuance
and may
 
be reviewed at
 
intervals of
 
not more than
 
five years.
 
An application to
 
transfer the
 
applicable Driefontein
 
uses to
 
FWGR has
been submitted.
Compliance is also required with the general provisions of the regulations on the use of water for mining and related activities published
under the NWA in GN 704 of 1999. Storm water needs to be managed in line with GN 704 of 1999.
FWGR has proposed an amendment to the conditions of the WUL based on a design that includes a network of intercept wells, in lieu of
a synthetic liner, and will apply for approval in terms of the Dam Safety Regulations (GNR 139 of 24 February 2012). This approval will be
required before FWGR can construct
 
the RTSF and approval for this has to
 
date, not been forthcoming. It is in this context
 
that the LoM
plans now include interim
 
deposition onto the Leeudoorn TSF,
 
to allow time to
 
obtain the requisite amendment
 
of the Leeudoorn TSF,
incorporated, to reduce the load on the Driefontein 4 TSF and to allow more time for this approval to be obtained.
17.2.
 
Environmental Considerations
The EIAs
 
for the
 
Kloof and
 
Driefontein operation
 
areas state
 
that the
 
TSFs are
 
permanent sources
 
of pollution.
 
Dust from
 
the TSFs
 
impact on the
ambient air quality, the surrounding
 
soils and the wetlands and surface water
 
resources. Ground water is also
 
significantly affected by leaching and
the seepage of pollutants from the TSFs that are located over dolomitic aquifers. Any seepage from the Driefontein 3 TSF,
 
Driefontein 4 TSF, Libanon
TSF,
 
Venterspost
 
North TSF,
 
Venterspost
 
South TSF
 
and Driefontein
 
5 TSF
 
is expected
 
to migrate
 
downwards into
 
the aquifers.
 
Monitoring
 
data
indicates elevated concentrations of sulphate, total dissolved solids
 
(TDS) and nitrate in the groundwater which are all
 
typical constituents associated
with contamination emanating from gold mining areas.
 
The pH ranges from 4.1 to 8.0 and
 
is indicative of acid mine
 
drainage, which is associated with
seepage from existing tailings and surface mining facilities.
Underground
 
mining
 
in
 
these
 
areas
 
have
 
significantly
 
dewatered
 
the
 
dolomitic
 
systems
 
which
 
have
 
resulted
 
in
 
numerous
 
sinkhole
 
formations.
Dewatering reduces pressure within the dolomite and this encourages drainage from the overlying TSFs. The removal of these TSFs in the region will
result in long-term
 
positive benefits to
 
the region. It
 
is expected that
 
the removal
 
of the TSFs
 
off the underlying
 
dolomite will improve
 
the ground
water quality near the TSFs. There is
 
no dolomitic risk in the area of the RTSF.
 
The RTSF site is underlain by Transvaal
 
Supergroup Strubenkop shale,
Daspoort quartzite and Silverton
 
shale units. The baseline
 
groundwater quality is
 
good. However,
 
there will be
 
contamination of the
 
ground water
quality in
 
the area.
 
The
 
main
 
elements of
 
concern are
 
sulphate
 
and
 
manganese,
 
and
 
to
 
a
 
lesser extent
 
arsenic,
 
uranium
 
and
 
iron.
 
These could
potentially impact private boreholes
 
and the Leeuspruit or its
 
tributary. TSFs
 
will be relocated to
 
the new RTSF
 
which is more suitably
 
located with
respect to
 
ground water.
 
New environmental
 
impacts and
 
risks associated
 
with the
 
RTSF
 
will need
 
to be
 
adequately mitigated
 
and appropriate
measures implemented.
Dust measurements from the TSFs
 
are generally within the
 
limits specified by the National Dust
 
Control Regulations. However,
 
the EIA found some
sites to be a problem during the dry winter months.
Land is used in the
 
region for mining
 
activities, the cultivation of crops,
 
and for grazing.
 
The pipeline routes will utilize
 
existing servitudes and mine
owned land.
Prior to final rehabilitation of reclaimed TSFs, and any subsequent development thereafter, a radiation assessment will be completed to determine if
any
 
radioactive
 
hotspots
 
exist
 
on
 
the
 
site.
 
Should
 
any
 
exist,
 
they
 
will
 
be
 
excavated
 
and
 
taken
 
to
 
the
 
RTSF.
 
If
 
a
 
site
 
falls
 
within
 
the
 
clearance
requirements of the NNRs,
 
for the proposed
 
land use, a
 
report will need to
 
be submitted to
 
the NNR for
 
approval. Once approved,
 
the site will
 
be
rehabilitated with indigenous vegetation and handed back to the landowner.
The RTSF is planned on agricultural land over a small wetland area. The EA
 
state that a wetland offset strategy must be implemented within one year
of the wetland being
 
impacted. These impacts will be
 
mitigated through the correct
 
and careful stripping, stockpiling
 
and use of the
 
soil resources.
The impacts due to contaminated water
 
run-off and windblown dust, will be mitigated
 
through the use of wind breaks, concurrent
 
rehabilitation of
the RTSF and the installation of silt traps.
Clearing and grubbing
 
of the
 
vegetation for
 
construction will
 
leave the
 
soils open
 
to erosion
 
which could
 
lead to
 
sedimentation of
 
surface water,
wetlands, and the deterioration of aquatic habitats. These impacts will be mitigated through either silt curtains, cut off drains or siltation ponds.
exhibit961p2i0
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Fauna
 
and Flora
 
Impact Assessments
 
formed part
 
of the
 
EIAs.
 
The vegetation
 
comprises of
 
Carletonville
 
Dolomite Grassland
 
and Gauteng
 
Shale
Mountain Bushveld (both with
 
a vulnerable conservation status),
 
as well as
 
Rand Highveld Grassland (Endangered)
 
and Soweto Highveld
 
Grassland
(Endangered). There is also other vegetation namely: grasslands, ridges and wetland vegetation of high-ecological importance due to their influence
on the overall ecosystem. They are seen to be valuable to maintain the biodiversity balance and therefore, should be conservation priorities.
Fauna expected to occur within the
 
area include mammals, birds, reptiles, amphibians
 
and invertebrates. Fauna species of importance are the
 
White-
Tailed Mouse (Endangered) and Rough Haired Golden
 
Mole (Vulnerable). Some thirty-seven bird species
 
were identified with some of
 
them being the
“Listed Red Data” bird
 
species. However,
 
the Grass Owl (Vulnerable) is
 
expected to occur within the wetland
 
habitats. Red Data reptile
 
species that
have a low
 
probability of occurring within
 
the operation area
 
include the Giant Girdled
 
Lizard (Vulnerable)
 
and the Striped Harlequin
 
Snake (Rare).
None of the identified amphibians are of concern. Red Data butterfly species expected to occur on site are the Marsh sylph, Roodepoort Copper and
Highveld Blue.
A consolidated Heritage Resources Management process
 
was completed in 2016 for
 
the Driefontein and Kloof Mining
 
Right areas. No fatal flaws were
identified despite the fact that the operation is situated within a sensitive cultural landscape. An environmental compliance audit of
 
the 2019 EA and
the Driefontein
 
EMPr
 
in September
 
2020
 
recorded
 
no major
 
issues with
 
an
 
overall
 
compliance of
 
88%.
 
Construction on
 
the Kloof
 
area
 
has
 
not
commenced, and so environmental compliance audits are not available.
17.3.
 
Social and Political Considerations
The operation is located in the vicinity of the following four
 
local municipalities: Mogale City, Westonaria,
 
Randfontein and Merafong City.
 
The RTSF
is in
 
the Westonaria
 
and Merafong
 
City Local Municipalities.
 
Local towns
 
include Fochville,
 
Carletonville, Westonaria
 
and Venterspost.
 
The land
 
is
used for mining, agriculture,
 
residential and businesses. Agriculture covers
 
the largest portion of
 
the area, followed
 
by mining and residential uses.
Human settlements are relatively scattered due to the mining activities and impact of dolomite. Two thirds of the local GDP is from finance, personal
services and government
 
services.
 
The Westonaria
 
and Merafong
 
City economies
 
are more
 
dependent on
 
the mining
 
industry than the
 
district in
general. Merafong City has
 
an unemployment rate of over
 
21%, while the Westonaria
 
unemployment rate exceeds 42%.
 
The expansion is expected
to improve
 
the socio-economic
 
status
 
with new
 
jobs
 
will be
 
created
 
during construction.
 
Capital
 
investment
 
and
 
contributions to
 
the GDP
 
as
 
a
consequence of the FWGR
 
operations, and the obvious
 
multiplier effect, will have
 
a positive impact in the
 
area. Employment opportunities include
direct employment
 
by the
 
operation, indirect
 
employment will
 
be created
 
by procuring
 
local goods
 
and services,
 
induced employment generated
through
 
spending
 
and
 
associated
 
job
 
creation
 
in
 
the
 
economy.
 
Operation
 
related
 
employment
 
has
 
the
 
potential
 
to
 
considerably
 
improve
 
the
livelihoods and income stability of employees and their dependents.
17.3.1.
 
Discussions with Local Individuals or Groups
Interested and Affected Parties
 
(I&APs) raised concerns during the public participation phase
 
of the Kloof EIA process. A
 
petition of 793
signatories was compiled in this regard
 
by the “No for Mega
 
Dump Forum” representing the community (farmers,
 
business owners and
residential areas). The concerns raised included:
●
environmental impacts from the existing TSFs and whether the FWGR operation would worsen the conditions;
●
dust being a major concern for health reasons;
●
safety and security on surrounding farms;
●
water quality;
●
population influx; and
●
reduced economic activity within the local community after the LoM.
Some of
 
the I&APs
 
acknowledged that the
 
FWGR operation
 
would have
 
a long-term
 
positive impact by
 
removing TSFs.
 
Other positive
impacts expected skills development, employment creation and the benefits
 
of the multiplier effect where, local
 
procurement of goods
and services, as well as local and regional economic development would benefit.
 
Improved quality of life and increased
 
availabilities of land were also
 
cited as positive impacts. These
 
will be managed by the
 
FWGR Social
and Labor Plan.
The Social Impact Assessment (SIA)
 
revealed political and community expectations for sharing
 
in the benefits by local communities. Local
municipalities sometimes claim
 
that they
 
are disproportionally
 
benefiting, or
 
not benefitting
 
at all,
 
from mining
 
when compared
 
with
district municipalities and the provinces at large. It is not the responsibility of FWGR to control informal settlements or to provide public
services and
 
facilities. However,
 
the existence
 
of informal
 
settlements near
 
the operations
 
poses a
 
risk to
 
the operation
 
in terms
 
of
political stability and
 
community relations/support. FWGR’s internal
 
controls
 
state that the
 
operation has a
 
shared responsibility (together
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
110
with the relevant local authorities and key
 
stakeholders) to address operational
 
induced in-migration to affected communities. Farmers
in the area are more hostile towards the mining industry and they contribute to poor community relations.
A social and labor plan exists to address any negative social impacts of the operation on host communities. Potential positive impacts on
host communities
 
will be
 
optimized
 
and enhanced
 
in a
 
sustainable manner.
 
Emphasis will
 
be placed
 
on skills
 
development and
 
local
economic development
 
as these aspects
 
would constitute the
 
foundation for enhancing
 
the operation’s social capital.
 
Moreover, negative
impacts, such as
 
increased pressure on
 
infrastructure and services,
 
and economic dependence
 
on FWGR can
 
be more effectively
 
mitigated
when the social
 
capital of the
 
operations are enhanced.
 
It is anticipated
 
that the consequence
 
and/or probability of
 
most negative impacts
can be reduced to acceptable levels and that the positive impacts of the operations will outweigh the negative effect.
17.4.
 
Environmental Closure
 
Liability Estimate
A review of the closure estimate and associated plans covers the following aspects:
●
discussion of the methodology used to derive the costs for demolition, closure and rehabilitation; and
●
comment on the adequacy of the financial provisions made for the operation.
17.4.1.
 
Basis of the Closure Liability Estimate
The closure cost assessment was conducted according to the requirements of NEMA as amended (refer to Section 13), by Digby Wells in
June 2022. The purpose of the financial provision assessment was to revise the existing estimate for closure and rehabilitation to
 
reflect
current conditions as of June 2022.
17.4.2.
 
Quantum of the Closure Liability
The closure cost estimate is for the purpose of reporting the liability in the annual financial statements
 
of FWGR.
NEMA as amended, requires the holder of a MR to make full financial
 
provision for the rehabilitation of negative environmental impacts.
This liability is required to be updated annually and adjusted.
The closure costs are determined
 
on both an “unscheduled” and “scheduled” basis.
 
Scheduled costs assume that mining continues and
that
 
the
 
final
 
rehabilitation
 
will
 
be
 
confined
 
to
 
the
 
rehabilitation
 
of
 
the
 
TSF
 
footprints.
 
Unscheduled
 
costs
 
assume
 
the
 
immediate
termination of mining and
 
provide for rehabilitation
 
of the area in
 
its current condition. The
 
detailed closure cost
 
model calculates the
cost of demolishing, removing and rehabilitating each infrastructure component which may include (but is not limited to):
●
rehabilitation of the pump station and pipeline footprints;
●
generalized rehabilitation and vegetation management strategies;
●
ensuring the reclaimed footprints are free draining;
●
vegetating the TSFs that will remain post closure;
●
radiation clearance for each rehabilitated footprint; and
●
post-closure maintenance and monitoring costs.
●
FWGR has provided for the quantum of the financial guarantees on an unscheduled estimate basis.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
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(Proprietary) Limited
Document No: PR/SMI/1203/22
111
Table 30 presents the closure cost estimates of the June 2022 Digby Wells Annual Financial Provision Assessment.
Table 30: Current Closure Cost Estimates for FWGR
Asset
Unscheduled Cost 2022
(ZAR M)
Scheduled Cost 2022
(ZAR M)
Driefontein 5 TSF
9.61
9.61
Driefontein 3 TSF
27.61
11.61
Kloof 1 TSF
14.71
11.87
Libanon TSF
21.03
14.84
Venterspost North TSF
23.59
12.33
Venterspost South TSF
6.87
4.82
DP2
14.36
14.36
DP3
11.54
11.54
Driefontein 4 TSF
19.87
20.38
Pipelines
3.35
3.35
Post Closure Aspects Driefontein 5 TSF
2.85
2.85
Post Closure Aspects Driefontein 3 TSF
9.17
3.62
Post Closure Aspects Kloof 1 TSF
24.45
3.70
Post Closure Aspects Libanon TSF
7.53
4.60
Post Closure Aspects Venterspost North TSF
41.16
3.84
Post Closure Aspects Venterspost South TSF
12.25
1.56
Post Closure Aspects DP2
2.42
2.42
Post Closure Aspects DP3
0.24
0.24
Post Closure Aspects Driefontein 4 TSF
14.34
6.35
Project Management
16.09
8.71
Contingency
26.82
14.51
Total
309.69
166.90
Source:
 
Digby Wells, 2022
Note: Apparent computational errors
 
due to rounding
As mining of the TSFs progress, the liability for
 
rehabilitation and closure will decrease from the current
 
unscheduled cost of ZAR309.69
M
 
to
 
a
 
final
 
scheduled
 
cost
 
of ZAR16
 
6.90
 
M.
 
FWGR
 
will make
 
appropriate
 
application
 
to
 
the DMRE
 
for
 
adjustments
 
to
 
the closure
obligation to cater for this decreasing liability.
 
Guardrisk Insurance Company Limited
 
(GICL) has issued
 
financial guarantees in favor of
 
the DMRE of
 
ZAR169.0 M. An amount
 
of ZAR444.1
M is also
 
invested in Guardrisk Cell
 
Captive under the
 
ring-fenced environmental rehabilitation insurance
 
policy. The funds are
 
ring-fenced
for the sole objective
 
of future rehabilitation
 
activities during and at
 
the end of the
 
LoM. The financial guarantees
 
and funds held with
the Guardrisk Cell Captive (30 June 2022) is sufficient to cover the 2022 estimated unscheduled
 
liability of ZAR309.69 M as estimated for
the operation.
Table
 
31 shows the
 
closure liability for
 
the RTSF calculated
 
in the 2016
 
Digby Wells
 
EIA and Environmental
 
and Management Program
Report Under Regulation 7
 
of the NEMA Financial Provision
 
Regulations (2015) which states
 
that the financial provision is,
 
at any given
time, equal to the sum of the actual costs of implementing the plans for a period of at least ten years forthwith (this includes the annual
rehabilitation, final, decommissioning and
 
closure plans). Sound Mining has
 
been informed by FWGR
 
that a ZAR169.0
 
M of the closure
cost estimate for
 
the RTSF has
 
been guaranteed by FWGR
 
through Guardrisk and satisfies
 
the IEA requirements.
 
The 2022 closure cost
estimate was normalized by inflating the 2016 estimate by 6%.
Table 31: Closure Cost Estimates from Kloof EIA and Guaranteed through Guardrisk
Asset
Unscheduled Costs after
One Year 2016
(ZAR M)
Scheduled Costs 2016
(ZAR M)
Unscheduled Costs
30 June 2022
(ZAR M)
Scheduled Costs
30 June 2022
(ZAR M)
RTSF
77.17
172.31
116.04
259.09
Source:
 
Digby Wells, 2016
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
112
17.5.
 
Concluding Comments
The FWGR IWUL of 9 March
 
2017 provides for this facility to
 
be constructed on a synthetic liner.
 
FWGR is pursuing an amendment of
 
this condition
following its latest design specification.
It is noted that the SAHRA issued a Final Statutory Comment supporting the requirements and conditions contained in the HIA Reports.
It is the opinion
 
of the environmental specialist that
 
the FWGR operations have been
 
well planned and executed thus
 
far. The legislative requirements
have been identified and addressed
 
and where there are gaps
 
,
 
measures are being taken
 
to address them. The
 
identified risks are well
 
understood
by FWGR and at the time of this TRS are being addressed to avoid any
 
significant impact to the operations. No fatal flaws were
 
identified during this
review.
An insurance policy through Guardrisk of
 
ZAR169.0 M, combined with the current
 
balance in the Guardrisk Cell Captive
 
of ZAR444.1 M (30 June 2022)
is sufficient to cover the 2022 unscheduled liability of ZAR309.69 M as estimated for the operation.
Cognizance needs to be taken of the following:
●
a risk assessment should be completed as per Government Gazette No.: GNR 1147 the NEMA
 
Financial Provision Regulations (2015) (as amended
January 2020) to determine any residual or latent costs to be included;
●
FWGR has applied for amendments to the Driefontein EA, and is awaiting a response;
●
FWGR is in the process of amending and transferring its Driefontein IWUL to FWGR;
●
FWGR is in the process of confirming the RTSF design, if it is not approved by Department of Water Affairs (DWA)
 
or if further amendment to the
FWGR’s IWUL or IEA are required it could impact the proposed timing of the operations;
●
numerous heritage sites and grave sites have been identified across the scope of the operations, which require appropriate attention;
●
illegal mining activities,
 
and nearby informal
 
settlements may
 
encroach on the
 
operations. In terms
 
of the Extension
 
of Security of
 
Tenure
 
Act,
1997 (Act No.
 
62 of 1997)
 
(ESTA),
 
any illegal land
 
occupiers may
 
also be entitled
 
to certain tenure
 
rights, which could
 
prevent landowners
 
and
government from evicting them unless
 
the provisions of ESTA
 
have been met. This
 
may have been exacerbated
 
during the Covid-19 restrictions
as no evictions were allowed during this period;
●
dust resulting from the TSFs and the mining activities
 
needs to be managed; and
●
the quality or quantity of water available to agricultural activities needs to be preserved.
These are being addressed according to the required timelines.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
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(Proprietary) Limited
Document No: PR/SMI/1203/22
113
18.
 
CAPITAL AND OPERATING
 
COSTS
Item 18 (i) and (ii)
The capital and
 
operating cost estimates
 
used to examine
 
the viability of
 
the estimated Mineral
 
Reserve were informed
 
by current operations
 
and
recent feasibility
 
study work
 
(i.e., 2020
 
and 2021)
 
on processing,
 
the RTSF
 
and associated
 
pumping and
 
piping infrastructure.
 
The operating
 
cost
estimates are supported by actual on mine invoices
 
received and paid, while the capital estimates
 
have been determined using unit rates
 
(obtained
from quotations or bench marked against recent installations) and design quantities.
Although the previous feasibility study work was
 
in most instances to a definitive level of accuracy, the estimates are no longer current and therefore
deemed to be at
 
a preliminary feasibility level of
 
accuracy (i.e., +/-25%). Where
 
necessary estimates have been
 
appropriately inflated to
 
June 2022
real terms and Sound Mining has included a 15% contingency on all costs to reflect the confidence expected for a PFS level of study.
18.1.
 
Capital Expenditure
The capital expenditure is estimated
 
in 30 June 2022 real terms and is summarized in Table 32.
Table 32: Summary of Capital Expenditure
Description
June 2022
(ZAR M)
Property Purchases
Land (RTSF and Pipelines)
71
Total for Property Purchasing
71
DP2 Expansion
Equipment and Infrastructure
1,283
Total for DP2 Expansion
1,283
RTSF
RTSF Construction*
1,511
Total for RTSF
1,511
Pumping and Piping
RTSF
776
Driefontein 3
151
Kloof 1
444
Libanon
406
Venterspost South
462
Leeudoorn
525
Total for Pumping and Piping Capital Expenditure
2,765
Total Direct Capital Expenditure
5,630
Indirect Capital Expenditure
Rehabilitation Provision**
-
Stay-in-Business (SiB)
254
Total Indirect Capital Expenditure
254
Contingency
Contingency (15%)
883
Total Capital Expenditure
6,767
Source:
 
Sound Mining,
 
2022; and FWGR, 2020
Note:
 
* RTSF Provision does not cater for
 
a liner which could amount to approximately
 
ZAR1.5 Billion
 
** This rehabilitation requirement is currently
 
exceeded by the provisions
 
in the associated trust fund
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
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(Proprietary) Limited
Document No: PR/SMI/1203/22
114
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
20232024202520262027202820292030203120322033203420352036203720382039204020412042
ZAR M
An annual Stay-in-Business (SiB) provision of ZAR8.7 M is considered until 2030 after which it is increased to ZAR16.0 M
 
for the rest of the LoM. This
provision covers maintenance and the replacement of equipment across the operation. Sound Mining has noted that the Guardrisk Cell Captive
 
is in
excess of the environmental
 
liability and therefore no
 
provision was included. Graph
 
9 illustrates the resulting
 
annual capital expenditure requirement
for the operation.
Graph 9: Capital Expenditure Forecast
Source:
 
Sound Mining, 2022
Early capital will be required to
 
access the Leeudoorn TSF,
 
whereafter, DP2
 
will be expanded (i.e., FY2025 and FY2026). The RTSF
 
is scheduled to be
constructed over four years (i.e., FY2027 to FY2030) with the
 
remaining capital expenditure largely earmarked for piping and pumping infrastructure.
18.2.
 
Operating Costs
The DP2 operating cost estimate (Table 33) and forecast (Graph 10) are based
 
on the actual costs being
 
incurred by the current operation. Economies
of scale were taken into consideration by applying a factor to the escalated budget as DP2 increases its throughput.
Table 33: Average DP2 Operating Cost over LoM
Description
Unit Costs
(ZAR/t)
Salaries and Wages
10.40
Contractors
8.89
Reagents
20.63
Other Engineering Stores
6.20
Electricity
15.56
Water
0.46
Machine Hire
1.51
Other
8.15
Other Corporate Costs
3.23
Contingency (15%)
10.20
DP2 Operating Costs
85.23
Source:
 
Sound Mining,
 
2022; and FWGR, 2022
A contingency of 15% was included for the assessment of economic viability.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
115
0
200
400
600
800
1,000
1,200
1,400
20232024202520262027202820292030203120322033203420352036203720382039204020412042
ZAR M
Financial Year
Graph 10: Operating Cost Forecast
Source:
 
Sound Mining, 2022
18.2.1.
 
Concluding Comments
The impact of a change in the pumping costs for longer average distances between the deposition sites, current TSFs, available
 
TSFs and
DP2, is not fully
 
captured in the operating
 
cost estimates over
 
the LoM. There is
 
a risk that the
 
operating costs may
 
prove to be
 
higher
over time, but these are not expected to be material.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
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(Proprietary) Limited
Document No: PR/SMI/1203/22
116
19.
 
ECONOMIC ASSESSMENT
Item 19 (i); (ii); (iii) and (iv)
A Discounted Cashflow
 
(DCF) modelling approach
 
was adopted to
 
assess the economic viability
 
of the Mineral
 
Reserves as stated.
 
Considering the
stage
 
of development
 
of the
 
operation
 
and the
 
uncertainties
 
of future
 
global economics,
 
as well
 
as
 
exchange
 
rate,
 
interest
 
rate
 
and gold
 
price
uncertainties, a real DCF model
 
is deemed more appropriate
 
than a nominal DCF model.
 
The DCF model was generated
 
in June 2022 South African
Rand (ZAR)
 
real terms
 
and is
 
based on
 
the revenue
 
forecast, associated
 
capital and
 
operating cost
 
forecasts,
 
and on
 
appropriate and
 
reasonable
economic assumptions (Table 34).
Table 34: Inputs to the DCF Model
Description
Quantum
Unit
Key Dates
Money Terms
30 June 2022
Phase Description
Phase 2 Includes:
DP2 Expansion
Mtpm
1.2
LoM
Phase 2
Years
20
Contingencies
Contingency
%
15%
Gold Price
ZAR/USD
ZAR/USD
15.60
USD/oz Gold
USD/oz
1,823
ZAR/kg Gold
ZAR/kg
914,294
Source:
 
Sound Mining,
 
2022; and FWGR, 2022
These assumptions are based on information received from FWGR and from the various consultants who contributed to the Mineral Resources, LoM
planning and technical
 
study work
 
that underpin this
 
Mineral Reserve estimate.
 
The economic assessment
 
assumes a 100%
 
equity-based business
and ignores the effect
 
of working capital changes.
 
The QP is satisfied
 
with the quality of this
 
information, including the revenue
 
and cost forecasts,
and
 
considers
 
the
 
inputs
 
to
 
the
 
DCF
 
model
 
to
 
constitute
 
an
 
overall
 
PFS
 
level
 
of
 
accuracy
(i.e., +/-25%).
19.1.
 
Revenue Forecast
The revenue forecast is a function of gold sales and the pricing assumptions used for the economic assessment. The following processing recoveries,
which are supported by test work
 
and current plant performance data, were applied
 
to the material from the respective
 
TSFs to compute the amount
of gold sold:
●
49.8% for Driefontein 5 TSF material;
●
56.6% for Driefontein 3 TSF material;
●
50.5% for Kloof 1 TSF material;
●
47.2% Libanon TSF material;
●
62.5% for Venterspost South TSF material; and
●
54.7% for Venterspost North TSF material.
The expansion of DP2 facilitates an increase in gold sales over time (Graph 11).
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p117i0
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
117
0
500
1,000
1,500
2,000
2,500
3,000
20232024202520262027202820292030203120322033203420352036203720382039204020412042
Gold Sold (kg)
Financial Year
-1,000
-500
0
500
1,000
1,500
2,000
2,500
20232024202520262027202820292030203120322033203420352036203720382039204020412042
NPV
10
(ZAR M)
Financial Year
Post Tax Discounted Cashflow
Cumulative Cashflow
Graph 11: Gold Sales Forecast
Source:
 
Sound Mining, 2022
Processing throughput can continue after 2042 when the available TSFs
 
are likely to be incorporated into
 
the operation. At this stage,
 
the economic
assessment has
 
only considered
 
the depletion
 
of the
 
TSFs
 
that comprise
 
the current
 
Mineral Reserves.
 
The gold
 
sold from
 
these TSFs
 
equate to
approximately 1.3Moz.
The real revenue forecast relies
 
on a gold price
 
of ZAR914,294 (i.e., USD1,823/oz
 
at ZAR15.60/USD). Taxes would be determined
 
using the gold mining
tax formula with all unredeemed capital taken into account. The assets are part of the ongoing business of FWGR, which fall outside the ambit of the
provision of the MPRDA that would place an obligation to pay royalties on the proceeds of the operations.
19.2.
 
Cashflows
Graph 12 presents the post-tax cashflow for an operation that excludes the benefits that would eventually be derived from the Available TSFs.
Graph 12: Post-tax Discounted Cashflows
Source:
 
Sound Mining, 2022
The cumulative post-tax
 
cashflows over the
 
LoM remain positive.
 
When assuming a
 
discount rate of
 
10% the unleveraged
 
operation reflects
 
a Net
Present Value (NPV) of ZAR2.32 Billion.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p118i0
 
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
118
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
80%
90%
100%
110%
120%
NPV
10
(ZAR M)
Net Revenue
Capital Expenditure
Operating Costs
19.3.
 
Sensitivities
The achievability of the LoM plans, budgets and forecasts cannot be assured as they are based on economic assumptions, many of which
 
are beyond
the control of the company. Future cashflows and profits derived from such forecasts are inherently uncertain and actual results may be significantly
more or less favorable. The
 
technical risks as identified by Sound Mining are
 
provided in Item 12.1. These and other environmental
 
risks can impact
the anticipated revenue and cost forecasts and accordingly have been assessed against upside or downside changes of between -20% and +20%. The
consequential potential impacts are presented in Table 35 and is illustrated graphically in Graph 13.
Table 35: Sensitivity of Post-tax NPV
Variance
NPV
10
(ZAR Billion)
80%
90%
100%
110%
120%
Revenue (ZAR Billion)
0.12
1.23
2.32
3.36
4.41
Capital Expenditure (ZAR Billion)
3.11
2.71
2.32
1.92
1.53
Operating Costs (ZAR Billion)
3.81
3.06
2.32
1.57
0.83
Source:
 
Sound Mining, 2022
Graph 13 shows that changes to the revenue forecast will impact margins the most.
Graph 13: Sensitivity to Expected Revenue and Costs
Source:
 
Sound Mining, 2022
Table 36 shows the materiality of changes in the gold price.
Table 36: Sensitivity of Gold Price
Gold Price
ZAR/kg
700,000
800,000
900,000
1,000,000
1,100,000
NPV (ZAR Billion)
(0.27)
0.96
2.15
3.30
4.45
Source:
 
Sound Mining, 2022
The operation is economically viable above
 
a gold price of ZAR721,264/kg. The
 
impact of changes to the
 
operating cost forecast is materially less, and
any variance in capital expenditure being relatively insensitive.
A sensitivity on the discount rate is displayed in Table 37.
Table 37: Sensitivity of the Discount Rate
Discount Rate
0%
5%
8%
10%
13%
NPV (ZAR Billion)
7.34
3.97
2.85
2.32
1.74
Source:
 
Sound Mining, 2022
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p119i0
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
119
-1,000
-500
0
500
1,000
1,500
2,000
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
NPV
10
(ZAR M)
Financial Year
Post Tax Discounted Cashflow
Cumulative Cashflow
As a final
 
sensitivity,
 
the QP has
 
tested the
 
impact of FWGR
 
having to
 
revert to
 
the use of
 
a liner
 
for the
 
RTSF as
 
opposed to the
 
design currently
included in the LoM plan. The impact of this expenditure on the discounted post-tax cashflows is shown in Graph 14.
Graph 14: Post-tax Discounted Cashflows (including liner)
Source:
 
Sound Mining, 2022
The NPV
10
 
still returns a positive number of ZAR1.58 Billion,
 
albeit the overall margins are reduced.
19.4.
 
Concluding Comments
The QP is satisfied that the Mineral Reserves as stated are all economically viable.
 
20.
 
ADJACENT PROPERTIES
Item 20 (i); (ii); (iii) and (iv)
A discussion of the
 
characteristics of adjacent properties is usually
 
relevant for in situ mineral deposits. The
 
TSF assets are independent from adjacent
properties with no correlation in mineralization.
 
exhibit961p2i0
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(Proprietary) Limited
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21.
 
OTHER RELEVANT DATA
 
AND INFORMATION
Item 21
Information relevant
 
to the
 
Mineral Resource
 
and Mineral
 
Reserve statements
 
will certainly
 
include the
 
prevailing legislative
 
framework in
 
South
Africa.
21.1.
 
South African Minerals Policy and Legislative
 
Framework
The South African
 
Government has an
 
extensive legal framework within
 
which mining, environmental
 
and social aspects
 
are managed. Inclusive
 
within
the framework are
 
international treaties and
 
protocols, and national
 
acts, regulations, standards,
 
and guidelines which
 
address international, national,
provincial and local management areas. The role of the Government and the relevant regulatory authorities can be summarised as follows:
●
the custodian of environmental and mining legislation as a Constitutional imperative;
●
a conduit between
 
the public and
 
mining companies to
 
ensure that mineral
 
rights holders satisfy
 
the objectives
 
of transforming the mining
 
industry
by,
 
inter alia, increasing
 
the number of
 
black people in
 
the industry to
 
reflect the country’s
 
population demographics, to
 
empower and enable
them to meaningfully
 
participate in
 
and sustain the
 
growth of
 
the economy;
 
thereby ensuring transparency
 
to achieve
 
accelerated and
 
shared
economic growth;
●
advocate of sustainable development, from a socio-economic and environmental management perspective; and
●
ultimate custodian of historical mining legacies, inclusive of abandoned mines.
The Government
 
has significantly
 
reformed its
 
environmental legislation.
 
The driving force
 
behind this
 
is the
 
need to
 
support the
 
overall national
objective of sustainable
 
development. Most recently, in 2015, the
 
government published the National
 
Environmental Management Laws Amendment
Bill for public comment and the Draft
 
Revised Financial Provision Regulations were published in
 
General Notice No.: R1228 of 10 November 2017
 
in
Government Gazette No.: 41236 in respect of prospecting, exploration and mining or production operations. The applicable laws are listed below:
●
The Constitution of South Africa (Act No. 108 of 1996);
●
Mines and Works Act, 1956 (Act No. 27 of 1956);
●
the Mine Health and Safety Act, 1996 (Act No. 29 of 1996);
●
the National Environmental Management Act, 1998 (Act No. 107 of 1998) (NEMA);
●
National Water Act, 1998 (Act No. 36 of 1998) (NWA);
●
National Nuclear Regulator Act, 1999 (Act No. 47 of 1999) (NNRA);
●
National Environmental Management: Biodiversity Act, 2004 (Act No. 10 of 2004);
●
National Environmental Management: Air Quality Act, 2004 (Act No. 39 of 2004);
●
National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008) (NEM:WA);
●
the Competition Act, 1998 (Act No. 89 of 1998);
●
the Companies Act, 2008 (Act No. 71 of 2008);
●
Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002) (MPRDA);
●
Mineral and Petroleum Resources Royalty Act, 2008 (Act No. 28 of 2008) (MPRRA);
●
Mining Titles Registration Act, 1967 (Act No. 16 of 1967);
●
Mining Titles Registration Amendment Act, 2003 (Act No. 24 of 2003);
●
Broad-Based Socio-Economic Charter (and associated amendments, 2010), also known as the Mining Charter;
●
National Heritage Resources Act, 1999 (Act No. 25 of 1999) (NHRA);
●
National Environmental Management: Protected Areas Act, 2003 (Act No. 57 of 2003) (NEM:PAA);
●
National Environmental Management: Biodiversity Act, 2004 (Act No. 10 of 2004) (NEM:BA);
●
National Forests Act, 1998 (Act No. 30 of 1998) (NFA);
●
Hazardous Substances Act, 1973 (Act No. 15 of 1973) (HSA);
●
Explosives Act, 1956 (Act No. 25 of 1956);
●
National Road Traffic Act, 1993 (Act No. 93 of 1996) (NRTA);
 
and
exhibit961p2i0
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(Proprietary) Limited
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●
New Broad-Based Black-Economic Empowerment
 
Charter for the South
 
African Mining Industry
 
(also known as
 
the New Mining
 
Charter) published
in September 2018.
21.2.
 
South African Legislative Framework
South African legislation applicable
 
to mining related activities and
 
specifically with regard to environmental, social and
 
community impact issues are:
●
The Constitution of South Africa Act, 1996 (Act No. 108 of 1996);
●
Mineral and Petroleum Resources Development Act, 2008 (Act No. 28 of 2002) (MPRDA);
●
National Environmental Management Act, 1998 (Act No. 107 of 1998) (NEMA);
●
National Water Act, 1998 (Act No. 36 of 1998) (NWA);
●
National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008) (NEM:WA);
●
National Environmental Management: Air Quality Act, 2004 (Act No. 39 of 2004) (NEM:AQA);
●
Hazardous Substances Act, 1973 (Act No. 15 of 1973) (HSA);
●
National Heritage Resources Act, 1999 (Act No. 25 of 1999) (NHRA);
●
National Environmental Management: Protected Areas Act, 2003 (Act No. 57 of 2003) (NEM:PAA);
●
National Environmental Management: Biodiversity Act, 2004 (Act No. 10 of 2004); and
●
National Forests Act, 1998 (Act No. 30 of 1998) (NFA).
A brief description of the above Acts is summarised below:
The Constitution of
 
South Africa Act,
 
1996 (Act No.
 
108 of 1996):
 
Mines must comply
 
with South African
 
constitutional and common
 
law by conducting
their operational and closure activities with due diligence and care for the rights of others.
Section 24(a) of the Constitution states that everyone has
 
the right to (a) an environment which is
 
not harmful to their health or well-being; and (b)
to have the environment protected, for the benefit of present and future generations, through reasonable legislative and other measures that:
●
prevent pollution and ecological degradation;
●
promote conservation; and
●
secure ecologically sustainable development and use of natural resources.
while promoting justifiable economic and social development.
Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002) (MPRDA): The MPRDA provides a holistic cradle-to-grave approach to
prospecting and mining by fully considering economic, social and environmental
 
costs to achieve sustainable development of
 
South African Mineral
Resources.
 
exhibit961p2i0
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Far West Gold Recoveries
 
(Proprietary) Limited
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National Environmental
 
Management
 
Act,
 
1998
 
(Act
 
No.
 
107
 
of
 
1998)
 
(NEMA):
 
NEMA
 
was
 
promulgated
 
in
 
1998
 
to
 
replace
 
the
 
Environmental
Conservation Act, 1989 (Act No. 73 of 1989) (ECA) as the overarching national environmental
 
legislative framework. NEMA was promulgated to give
effect to
 
the Environmental
 
Management Policy
 
(published in
 
2007), and
 
has been
 
subsequently amended,
 
including the
 
National Environmental
Management Amendment Act of 2003, and the National Environmental Management Second Amendment Act, 2004 (Act No. 8 of 2004).
The requirements for financial provisions
 
for rehabilitation and closure
 
are evolving. Historically,
 
closure and rehabilitation liability
 
calculations and
financial provisions
 
had to
 
be determined
 
and provided
 
for in
 
accordance with
 
Regulations 53
 
and 54
 
under the
 
MPRDA (GN
 
527, April
 
2004), a
guideline document for the evaluation of
 
the quantum of closure-related financial provisions
 
issued by the DMRE in 2004/5, and
 
a set of master rates
updated from time to time by the DMRE based on inflation.
Financial provision regulations (GNR
 
1147) were published on
 
November 2015 (as
 
amended January 2020) to
 
replace Regulations 53
 
and 54 under
the MPRDA. The new regulations require the following:
●
annual rehabilitation, as reflected in an annual rehabilitation plan;
●
final
 
rehabilitation,
 
decommissioning
 
and
 
closure
 
of
 
the
 
prospecting,
 
exploration,
 
mining
 
or
 
production
 
operations
 
at
 
the
 
end
 
of
 
the
 
life
 
of
operations, as reflected in a final rehabilitation, decommissioning and mine closure plan; and
●
remediation of latent or
 
residual environmental impacts which
 
may become known in
 
the future, including
 
the pumping and
 
treatment of polluted
or extraneous water; as reflected in an environmental risk assessment report; and
●
The applicant or holder of a right or
 
permit must ensure that the financial provision is,
 
at any given time, equal to
 
the sum of the actual costs of
implementing the plans and report contemplated in regulation 6 and regulation 11 (1) for a period of at least 10 years forthwith.
The NEMA Section 24P (as amended in April 2014) also applies.
 
It requires:
●
financial provisions to be made in the prescribed manner before an environmental authorization is issued by the DMRE;
●
annual assessment of environmental liabilities; and
●
annual “increase” of available financial provisions to the satisfaction of the Minister of Mineral Resources.
National Water Act,
 
1998 (Act No. 36
 
of 1998) (NWA):
 
The NWA
 
stipulates that a WUL
 
is required for
 
the abstraction, storage,
 
use, diversion, flow
reduction and disposal of water and effluent in terms of Section 21 of the Act.
Use of water for
 
mining and related activities is
 
also regulated through regulations
 
that were updated after
 
the promulgation of the NWA
 
in 1999 -
GN 704.
 
GN 704
 
addresses the regulations
 
on use
 
of water
 
for mining
 
and related
 
activities aimed at
 
the protection
 
of water
 
resources. Inclusive
within GNR 704 are the control measures for activities and its regulation of the sizing, control and monitoring of water management measures.
National Environmental Management: Waste Act, 2008 (Act No. 59 of
 
2008) (NEM:WA): Waste management activities listed in terms of the NEM:WA
(GN 921,
 
29 November 2013)
 
include: storage
 
of waste;
 
the reuse,
 
recycling and
 
recovery of
 
waste; treatment
 
of waste;
 
and disposal of
 
waste at
specified thresholds. Historically,
 
mine residues were
 
managed in accordance
 
with the MPRDA
 
and the NEMA. This
 
situation changed in 2014
 
with
the promulgation
 
of the
 
National Environmental
 
Management: Waste
 
Amendment Act
 
of 2014
 
and its
 
inclusion of
 
mine residue
 
as a
 
Category A
(hazardous) waste, as well as
 
the addition of
 
mine residue stockpiles and
 
residue deposits to the
 
list of waste management activities
 
requiring a WML.
In 2008 the Ministers of Mineral Resources and Environmental
 
Affairs concluded an agreement on the “One
 
Environmental System” for
 
the country
with respect to mining. Ministers adopted an integrated mine environmental management system and sought to align the MPRDA, NEMA, NEM:WA,
NEM:AQA and NWA. In short, the agreement implied that environmental issues resulting from mining, prospecting, production and related activities
will be regulated in terms of the NEMA, whilst the Minister of Mineral Resources will become a competent authority in terms of NEMA.
Following the acceptance
 
of the above-mentioned
 
agreement various amendments
 
were made to
 
environmental legislation, inter
 
alia, the NEMA,
MPRDA and NEM:WA.
 
Significant to these
 
amendments were the
 
inclusion of residue
 
stockpiles under the
 
NEM:WA
 
listed activities as
 
well as the
publication
 
of
 
regulations
 
regarding
 
the
 
planning
 
and
 
management
 
of
 
residue
 
stockpiles
 
and
 
residue
 
deposits
 
from
 
the
 
prospecting,
 
mining,
exploration or production operation in GNR 632 of 2015 and GN 921 July 2015.
Transitional provisions specifically include the following:
●
any activity in terms of regulation 73 of the MPRDA
 
relating to the management of residue stockpiles and residues
 
deposits, that can be done in
terms of a provision of GNR 632 of 2015, must be regarded as having been done in terms thereof;
exhibit961p2i0
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(Proprietary) Limited
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●
management measures of residue stockpiles and residue deposits
 
approved in terms of the MPRDA,
 
at the time of the coming into
 
operation of
GNR 632 of 2015, must be regarded as having been approved in terms thereof;
●
a holder of a right or permit in terms of the MPRDA must continue the management of the residue stockpiles and residue deposits in accordance
with the approved management measures; and
●
a person who lawfully conducts a waste management activity listed in the NEM:WA Schedule on the date of the coming
 
into effect of this Notice
may continue with the waste management activity until such time that the Minister by notice in a Gazette calls upon such a person to apply for a
WML.
National Environmental Management: Air Quality Act,
 
2004 (Act No. 39 of
 
2004) (NEM:AQA): In terms of
 
Section 21 of the NEM:AQA,
 
an Atmospheric
Emissions License (AEL) is required for listed processes that may result in atmospheric emissions, which may
 
have a significant detrimental effect on
the environment, health, social and economic conditions. These requirements apply to
 
smelters, refineries and certain processing plants. NEM:AQA
GN 283 April
 
2015 requires mines to
 
register with the Department
 
and submit results
 
in line with
 
the National Atmospheric Emission
 
Inventory System
(NAEIS) requirements. The
 
National Dust Control
 
Regulations (GNR 827,
 
1 November 2013)
 
provides standards for
 
dust-fall
 
in residential and
 
non-
residential areas, and
 
the requirements of
 
monitoring and reporting
 
to the air
 
quality officer.
 
Mining operations have
 
the responsibility to
 
comply
with the standards.
Hazardous
 
Substances
 
Act,
 
1973
 
(Act
 
No.
 
15
 
of
 
1973)
 
(HSA):
 
The
 
regulations
 
relating
 
to
 
Group
 
IV
 
Hazardous
 
Substances
 
(GNR
 
247
 
of
26 February 1993) in terms of the HSA apply to the use and transportation of radioactive nuclides used in metallurgical processing plants.
National Heritage Resources Act, 1999 (Act No. 25 of 1999) (NHRA): The NHRA requires that a heritage assessment be undertaken for developments
listed in the Act.
 
The Act prohibits the
 
following: the alteration, disturbance,
 
damage or demolishment
 
of buildings and
 
structures older than 60
 
years;
archaeological and paleontological artefacts; cultural significant
 
graves and burial sites; and public monuments,
 
except for where a permit was issued
by the relevant Provincial Heritage Resources Authority.
National Environmental Management: Protected
 
Areas Act, 2003 (Act No.
 
57 of 2003) (NEM:PAA):
 
The NEM:PAA regulates
 
the system of protected
areas in South Africa and their management. It distinguishes between the
 
following types of protected areas: national parks; nature reserves; special
nature reserves;
 
and ‘protected
 
environments. Mining
 
is prohibited
 
in national
 
parks, nature
 
reserves and
 
special nature
 
reserves, but
 
mining in
‘protected environments’ may be allowed with
 
the necessary permission
 
from the Minister of Environmental Affairs as
 
well as the Minister of
 
Mineral
Resources.
National Environmental Management: Biodiversity Act, 2004 (Act No. 10 of 2004) (NEM:BA): Holders of a mining right need to comply with the alien
and
 
invasive
 
species
 
regulations
 
(GNR
 
598
 
of
 
1
 
August
 
2014)
 
in
 
terms
 
of
 
NEM:BA
 
for
 
species
 
listed
 
in
 
GN
 
864,
 
of
29 July 2016, which
 
deal with different categories
 
of alien and
 
invasive plant and animal
 
species that are
 
prohibited, must be combatted or
 
eradicated,
controlled, require a permit or are subject to certain exemptions and prohibitions.
National Forest Act, 1998 (Act
 
No. 84 of 1998)
 
(NFA): The NFA prohibits the cutting, disturbance,
 
damage or destruction of trees
 
in natural forests and
trees included in the
 
lists of protected tree species
 
published in terms of
 
the NFA, except where a license was
 
issued by the Department
 
of Agriculture
Forestry and Fisheries (DAFF).
 
exhibit961p2i0
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(Proprietary) Limited
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22.
 
INTERPRETATIONS
 
AND CONCLUSIONS
Item 22
A full list of all technical
 
documents used in the compilation of the
 
TRS is provided in Item
 
24. The QP has interrogated
 
all of this information in the
process of generating
 
the Mineral Resource
 
and Mineral Reserve
 
estimates and remains
 
satisfied with the
 
technoeconomic merits of
 
the LoM planning
and of the integrity of the information and study work performed.
The QP’s
 
are of
 
the opinion
 
that the
 
operations of
 
FWGR are
 
reasonably robust
 
in the
 
context of
 
the current
 
methodologies and
 
systems. These
operations are
 
ongoing with
 
an experienced management
 
team, skilled employees
 
and a mining
 
contractor whose
 
track record
 
demonstrates the
required competence. Apart from the
 
uncertainties identified herein, which risks are
 
manageable, no factors of
 
an operational or geo-metallurgical
nature have been identified that could significantly impact the prospects for eventual economic extraction, or the validity of the Mineral Reserves as
stated.
The QP is comfortable with the
 
gold price of ZAR914,294.00/kg used for
 
the economic assessment. This price was
 
provided by DRDGOLD and is not
inconsistent with the spot price as at 30 June 2022 of ZAR945,295/kg (i.e., USD1,806.89/oz at ZAR16.27/USD).
Sound Mining has reviewed the EIA
 
and Environmental Management Plan (EMP)
 
that were provided. The assets
 
held by FWGR were acquired
 
from
Sibanye Gold,
 
a subsidiary
 
of Sibanye-Stillwater,
 
in a
 
transaction in
 
which common
 
law ownership
 
was established
 
over the
 
various tailings
 
dams
containing the Mineral Resources and Mineral Reserves. FWGR conducts
 
its activities inter alia in accordance with EAs and
 
the provisions of the Mine
Health and Safety
 
regulations. A Use
 
and Access Agreement
 
with Sibanye
 
Gold articulates the
 
various rights, permits
 
and licenses held
 
by Sibanye
Gold in terms of which FWGR operates, pending the transfer to FWGR of those that are transferable.
The drilling, sampling, analytical processes and governance of the exploration programs are appropriate and in-line with industry best practice. They
are considered to be
 
of high confidence. The
 
density used to determine quantities
 
from volumes has been
 
determined from both in
 
situ measured
values and
 
empirical data
 
and
 
is considered
 
reliable. Sound
 
Mining concludes
 
that the
 
estimations are
 
based on
 
a suitable
 
database
 
of reliable
information.
Scrutiny of the LoM plan
 
has shown that the recoveries
 
coincide with the recoveries
 
achieved in the metallurgical
 
test work and the
 
quantities and
grades used are
 
consistent with
 
those estimated in
 
the Mineral Resource
 
estimation. A review
 
of the processing
 
at DP2 reveals
 
that the plant
 
has
performed in-line with
 
expectations and with
 
further modifications will
 
adequately handle the
 
planned increase in
 
throughput to 1,200ktpm
 
for Phase
2. The design for the expansion is based on representative and adequate metallurgical
 
data, knowledge and insights. The mass balance for the plant
is appropriate.
The tailings material arising from DP2 will
 
be stored at the Driefontein 4 TSF and Leeudoorn TSF before being rerouted to a
 
RTSF that will have excess
capacity from both
 
a depositional
 
rate (3.0Mtpm) and final
 
capacity perspective (800Mt).
 
Sound Mining has
 
reviewed the design
 
for the RTSF prepared
by FWGR’s specialists and has concluded that the detailed design report provides a solid basis for the future development of a safe RTSF.
The capital provision
 
for all of the
 
necessary infrastructure requirements have
 
been reviewed and
 
are considered appropriate. The
 
capital expenditure
estimates
 
for
 
the
 
expansion
 
of
 
DP2
 
and
 
the
 
RTSF
 
were
 
undertaken
 
independently and
 
are
 
currently
 
presented
 
at
 
a
 
PFS
 
level
 
of
 
accuracy.
 
The
operational expenditure has been estimated from actual data at the current operations. These estimates are considered appropriate and in-line with
industry standards.
The QP while cognizant of the risks identified in
 
Item 12.1, remains satisfied that Mineral Resources
 
and Mineral Reserves of FWGR are not
 
likely to
change materially as a consequence of these uncertainties.
 
exhibit961p2i0
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Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
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23.
 
RECOMMENDATIONS
Item 23
The QPs
 
recommend that
 
FWGR continues
 
to proactively
 
seek the
 
necessary regulatory
 
approvals for
 
the RTSF
 
timeously to
 
ensure that
 
forecast
production can continue uninterrupted.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
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24.
 
REFERENCES
Item 24
The sources of data and information used in preparation of this TRS are presented in Table 38.
Table 38: TRS Data and Information Sources
Source
Date
File Type
Title
Engineering
Beric Robinson Tailings
(Proprietary) Limited
September 2020
pdf
FW Regional Tailings Dam Model - Detail Design Report (BRT-10-
2020)
DRA SA (Proprietary) Limited
May 2011
pdf
DRDGOLD - Far West Gold Recoveries Phase 2 Expansion Project
Feasibility Study - Major Pipeline Routes
DRA SA (Proprietary) Limited
May 2011
pdf
FWGR Phase 2 Process Flow Diagrams IZADBR4544
DRA SA (Proprietary) Limited
August 2020
pdf
RTSF Hazard and Operational Study 2 Report
DRA SA (Proprietary) Limited
August 2020
pdf
Far West Gold Recoveries RTF FS RTSF Complex Infrastructure
Fencing 2.1m High Shotcrete Perimeter Wall Layout & Details
DRA SA (Proprietary) Limited
September 2020
pdf
Far West Gold Recoveries Regional Tailings Facility - Basis of
Estimate
DRA SA (Proprietary) Limited
September 2020
pdf
Far West Gold Recoveries Regional Tailings Facility Basis of
Estimate
DRA SA (Proprietary) Limited
June 2020
pdf
Plant layout DRD FWGR Phase 2 Expansion Project (CPP)
DRA SA (Proprietary) Limited
June 2020
pdf
DRD FWGR Phase 2 Expansion Project Feasibility Study Process
Design Criteria (CPP)
DRA SA (Proprietary) Limited
June 2020
pdf
DRD FWGR Phase 2 Expansion Project Feasibility Study
Mechanical Equipment List (CPP)
DRA SA (Proprietary) Limited
November 2020
pdf
DRD FWGR Phase 2 Expansion Project Feasibility Study Executive
Summary
DRA SA (Proprietary) Limited
November 2020
pdf
DRD FWGR Phase 2 Expansion Project Feasibility Study Opex (CPP)
DRA SA (Proprietary) Limited
November 2020
xlsx
Phase 2 Expansion Project Feasibility Study Capital Cost Estimate
(CPP and Piping Rev 6)
DRA SA (Proprietary) Limited
October 2020
xlsx
Far West Gold Recoveries Regional Tailings Facility Capital Cost
Estimate: Scenario 2
DRA SA (Proprietary) Limited
October 2020
xlsx
DRDGOLD - Far West Gold Recoveries Phase 2 Expansion Project
Feasibility Study OPEX
DRA SA (Proprietary) Limited
August 2022
pdf
00301-Blockplan with Google Overlay
DRA SA (Proprietary) Limited
2022
pdf
00301-Blockplan
DRA SA (Proprietary) Limited
2022
xlsx
DP2 - expansion capital spend
DRA SA (Proprietary) Limited
March 2022
pdf
Far West Gold Recoveries DP2 Expansion Project
Feasibility Study Basis of Estimate
DRA SA (Proprietary) Limited
2022
pdf
FZADBR6245-PROC-PDC-005-Rev B_PDC
DRA SA (Proprietary) Limited
2022
xlsx
FZADBR6245-PROC-PDC-005-Rev B_PDC
DRA SA (Proprietary) Limited
May 2022
pdf
Far West Gold Recoveries Dp2 Expansion Project
Feasibility Study Process Flow Diagram
DRDGOLD Limited
August 2020
docx
Manual for the Management of the Disposal of Tailings on the Far
West Gold Recoveries Regional Tailings Facility
DRDGOLD Limited
August 2020
pdf
Electrical Point of Delivery Meeting minutes
Geo Tail SA (Proprietary) Limited
June 2022
pdf
Leeudoorn TSF Cyclone Conversion Design
Geo Pollution Technologies -
Gauteng (Proprietary) Limited
August 2021
pdf
Kloof Gold Mine Leeudoorn Return Water Dam Strategy
 
Highlands Hydrology (Proprietary)
Limited and Water Hunters
August 2020
pdf
Hydrological Assessment for the Proposed Regional Tailings
Facility, Far West Gold Recoveries Version
 
1
Knight Piesold (South Africa)
(Proprietary) Limited
August 2021
pdf
Geotechnical Investigation for Leeudoorn Active TSF
Mintek and DRDGOLD Limited
September 2020
xlsx
Predicted yields from the various dams based on test work results
at September 2020
Water Hunters
January 2020
xlsx
WRTRP Output Analysis v 0.5e2 Base Case
Water Hunters
August 2020
pdf
Far West Gold Recoveries - Regional Tailings Facility - Updated
Ground Water Model Report
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
127
Environmental/Legal
Department of Minerals Resources
and Energy
May 2018
pdf
WRTRP Driefontein Environmental Authorization
GP30/5/1/2/3/2/1(51)EM
Department of Minerals Resources
and Energy
May 2018
pdf
WRTRP Kloof Integrated Environmental Authorization
GP30/5/1/2/3/2/1 (66)EM
Department of Water and
Sanitation
March 2017
pdf
WRTRP Integrated Water Use License. License No.:
10/C22B/ACFGI/4976
Department of Water and
Sanitation
March 2017
pdf
Driefontein Water Use License. License No.:
10/C23E/ACEFGIJ/4527
Digby Wells Environmental (South
Africa) (Proprietary) Limited
July 2022
pdf
Far West Gold Recoveries Closure Cost Assessment 2022. Financial
Provision Assessment Report
Digby Wells Environmental (South
Africa) (Proprietary) Limited
March 2016
pdf
Environmental Impact Assessment and Environmental
Management Programme for the Amendment of the existing EMP
and Inclusion of Listed Activities Associated with Operations at
Driefontein Mining Right Area, Sibanye Gold Limited
Digby Wells Environmental (South
Africa) (Proprietary) Limited
March 2016
pdf
Environmental Impact Assessment and Environmental
Management Programme for the Amendment of the existing EMP
and Inclusion of Listed Activities Associated with Operations at
Kloof Mining Right Area, Sibanye Gold Limited
Digby Wells Environmental (South
Africa) (Proprietary) Limited
May 2020
pdf
Far West Gold Recoveries Closure Costs Assessment 2020
(ERG6453)
Digby Wells Environmental (South
Africa) (Proprietary) Limited
September 2020
pdf
Driefontein Environmental Authorization Audit
Digby Wells Environmental (South
Africa) (Proprietary) Limited
July 2022
pdf
Far West Gold Recoveries Closure Cost Assessment 2022
Financial Provision Assessment Report
Kongiwe Environmental
(Proprietary) Limited
October 2019
docx
The reclamation and reprocessing of the Soweto Cluster dumps in
the City of Johannesburg, Gauteng. Draft Environmental Impact
Assessment Information
Malan Scholes Inc
November 2017
pdf
Due Diligence Report for DRDGOLD Limited in respect of the West
Rand Tailings Retreatment Project
National Nuclear Regulator
July 2019
pdf
Certificate of Registration in terms of the National Nuclear
Regulator Act, 1999 (Act No. 4T of 1999)
Sibanye-Stillwater Limited
December 2019
xlsx
19128093_SS_RUSO CC 2019_20191118_FINAL_09_03_20
(Consolidated)
Sibanye-Stillwater Limited
December 2019
xlsx
19128093_SS_RUSO CC 2019_20191118_FINAL_V1
Werksmans Attorneys
November 2017
pdf
Exchange agreement between Sibanye Gold Limited and
K2017449061 (WRTRP to be renamed) and including DRDGOLD
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Schedule and Economics
DRDGOLD Limited
2022
xlsx
SK1300 - DP2 Expansion LOM plan_13Jul22_Option
3_REAL_Blended_50_MT Edited_Rev3
DRDGOLD Limited
July 2022
pdf
DRDGOLD Group Information Sharing Document – Financial
Reporting
DRDGOLD Limited
2022
pdf
Annual Integrated Report
DRDGOLD Limited
2022
xlsx
Production information_Jun22
Financial Times
2022
https
https://www.ft.com/content/be9c5a5e-1280-4281-8b28-
04717d2c7e66
GoldHub
2022
https
World Gold Council, Gold supply and demand statistics -
https://www.gold.org/goldhub/data/gold-supply-and-demand-
statistics
GoldHub
2022
https
https://www.gold.org/goldhub/research/gold-demand-
trends/gold-demand-trends-q2-2022
GoldHub
2022
https
https://www.gold.org/goldhub/data/historical-mine-production
GoldHub
2022
https
Gold Supply and demand statistics 30 July
2022https://www.gold.org/goldhub/data/gold-supply-and-
demand-statistics
Sibanye-Stillwater Limited
2019
pdf
Mineral Resources and Mineral Reserves Report
Sound Mining
December 2017
pdf
Competent Persons' Report on the West Rand Tailings
Retreatment Project for DRDGOLD Limited
Sound Mining
December 2020
pdf
PR SMI 0921 20 DFS Report for FWGR - Phase 2 Expansion Project
USGS
2017
https
https://s3-us-west-2.amazonaws.com/prd-
wret/assets/palladium/production/mineral-pubs/gold/mcs-2017-
gold.pdf
USGS
2018
https
https://s3-us-west-2.amazonaws.com/prd-
wret/assets/palladium/production/mineral-pubs/gold/mcs-2018-
gold.pdf
USGS
2019
https
https://prd-wret.s3-us-west-
2.amazonaws.com/assets/palladium/production/s3fs-
public/atoms/files/mcs-2019-gold.pdf
USGS
2020
https
https://pubs.usgs.gov/periodicals/mcs2020/mcs2020-gold.pdf
World Gold Council
2022
https
Gold Demand Trends Q2 2022 -
https://www.gold.org/goldhub/research/gold-demand-
trends/gold-demand-trends-q2-2022/supply
Geology
Frimmel et al
2005
pdf
The Formation and Preservation of the Witwatersrand Goldfields,
the World’s Largest Gold Province
Geographicx Surveys CC
July 2022
dwg
Driefontein 5 02072022 Merge R1
Geographicx Surveys CC
July 2022
pdf
Quantity Report of Driefontein 5 02072022 R1
Geoplan Materials Engineering
(Proprietary) Limited
November 2020
xlsx
DRDGOLD Density Data
McCarthy and Rubidge
2005
Book
The Story of Earth and Life
Minxcon (Proprietary) Limited
June 2009
pdf
Technical Report on the Surface Mineral Resource Estimation,
Scheduling and Financial Valuation of the West Wits HTO Project,
Gold Fields (Pty) Ltd. South Africa
Minxcon (Proprietary) Limited
February 2013
pdf
A Technical Report on The Gold1 TSFs in the Gauteng Province,
South Africa
Minxcon (Proprietary) Limited
2013
dm
d4_e_krig_all1
Minxcon (Proprietary) Limited
2013
dm
d4_w_krig_all1
Minxcon (Proprietary) Limited
2009
dm
drth_krig_allfinal2b
Minxcon (Proprietary) Limited
2009
dm
DTOPO_pt/tr
Minxcon (Proprietary) Limited
2009
dm
dr5_krig_all fin
Minxcon (Proprietary) Limited
2009
dm
dtopo_pt/tr
Minxcon (Proprietary) Limited
2009
dm
kl1_krig_all_final3c
Minxcon (Proprietary) Limited
2009
dm
DTOPO_pt/tr
Minxcon (Proprietary) Limited
2009
dm
lib_krig_all1_2010c
Minxcon (Proprietary) Limited
2009
dm
dtopo_pt/tr
Minxcon (Proprietary) Limited
2009
dm
vn_krig_all1_fin2d
Minxcon (Proprietary) Limited
2009
dm
vn_fin_pt/tr
Minxcon (Proprietary) Limited
2009
dm
vs_krig_all1_final2c
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
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Minxcon (Proprietary) Limited
2009
dm
vs_fin_pt/tr
The RVN Group (Proprietary)
Limited
July 2020
pdf
Density Measurements and Supervision DRDGOLD
The glossary of terms, units and abbreviations used in this TRS are presented in Table 39.
Table 39: Glossary and Abbreviations
Term
Explanation
Archaean
Geological eon from 2,500Ma - 4,000Ma
Assay
The chemical analysis of ore samples to determine their metal content
Auriferous
Containing, or producing, gold
Basin
A geological basin is a large low-lying area, often below sea level
Clastic
A rock or sediment composed principally of transported broken fragments derived from pre-existing rocks or
minerals
Conformable
A sequence of beds is said to be conformable when they represent an unbroken period of deposition
Conglomerate
A coarse-grained clastic sedimentary rock composed of rounded to subangular fragments set in a fine-
grained matrix
Craton
An old and stable section of the continental lithosphere which has survived cycles of merging and
 
rifting
continents. Cratons are today generally found in the interior of tectonic plates
Cut-off grade
The lowest grade of mineralized rock that determines as to whether or not it is economic to recover its gold
content by further concentration
Density
Measure of the relative “heaviness” of objects with a constant volume, density = mass/volume
Deposit
Any sort of earth material that has accumulated through the action of wind, water, ice or other agents
De-survey
Mathematical reconstruction in 3D space of a borehole trace using azimuth and dip
 
survey data
Detrital
Formed from eroded loose rock and mineral material
Dilution
Waste or material below the cut-off grade that contaminates the ore during the course of mining operations
and thereby reduces the average grade mined
Definitive Feasibility
Study (DFS)
A definitive engineering estimate of all costs, revenues, equipment requirements and production at a -5% to
+10% level of accuracy. The study is used to define the economic viability of a project and to support the
search for project financing
Distal
Relating to or denoting the outer part of an area affected by geological activity
Dolomite
Carbonate mineral, CaMg(CO
3
)
2
. The word dolomite is also used to describe the sedimentary carbonate
rock, which is composed predominantly of the mineral dolomite
Doré
An unrefined, therefore impure, alloy of gold with variable quantities of silver and smaller quantities of base
metals, which is produced at a mine before passing on to a refinery for upgrading to London Good Delivery
standard, which usually consists of 85% gold on average
Drillhole
Exploration hole drilled for the purposes of exploring for and evaluating sub-surface geology, in this instance
the presence and distribution of gold
Dyke
A tabular vertical or near-vertical body of igneous rock formed by magmatic injection into planar zones of
weakness such as faults or fractures that is discordant to the bedding or foliation of the country rock
Estimation
The quantitative judgement of a variable
Exploration
Prospecting, sampling, mapping, drilling
 
and other work involved in the search for mineralization
Facies
The sum total of sedimentary features that characterize a sediment as having been deposited in a given
environment; an assemblage of metamorphic rocks which are considered to have formed under similar
conditions of temperature and pressure
Fault
A fracture in earth materials, along which the opposite sides have been displaced parallel to then
 
plane of
the movement
Fire Assay
The assaying of metallic ores by methods requiring the use of furnace heat
Fluvial
Produced by the action of a stream or river
Footwall
The underlying side of a stope or ore body
Goldfield
An auriferous deposit defined in a geographically distinct sub-basin
Granite
An intrusive felsic rock which is granular in texture
Hydrothermal
The circulation of hot water. Hydrothermal circulation occurs most often in the vicinity of sources of heat
within the Earth's crust. In general, this occurs near volcanic activity
Indicated Mineral
Resource
Is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of
adequate geological evidence and sampling. The level of geological certainty associated with an
 
indicated
Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to
support mine planning and evaluation of the economic viability
 
of the deposit. Because an indicated Mineral
Resource has a lower level of confidence than the level of confidence of a measured mineral resource, an
indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral
Resource
Is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of
limited geological evidence and sampling. The level of geological uncertainty associated with
 
an inferred
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Term
Explanation
Mineral Resource is too high to apply relevant technical and economic factors likely to influence the
prospects of economic extraction in a manner useful for evaluation of economic viability. Because an
inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which
prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an
inferred Mineral Resource may not be considered when assessing the economic viability of a mining project,
and may not be converted to a Mineral Reserve.
Karoo
A large semi-desert natural region of South Africa which lends its name to the geological Karoo Supergroup
which is often used as an age description for the eon from 145Ma - 360Ma
Kriging
An interpolation method that minimizes the estimation error in the determination of a mineral resource.
Kriging is a method of interpolation for which the interpolated values are modelled by a Gaussian process
governed by prior covariances
License, Permit, Lease
or other similar
entitlement
Any form of license, permit, lease or other entitlement granted by the relevant Government department in
accordance with its mining legislation that confers on the holder certain rights to explore for and/or extract
minerals that might be contained in the land, or ownership title that may prove ownership of the minerals
Life-of-Mine (LoM)
Number of years in the current mine plan that an operation will extract and treat ore
Measured Mineral
Resource
is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of
conclusive geological evidence and sampling. The level of geological certainty associated with a measured
Mineral Resource is sufficient to allow a qualified person to apply modifying factors, in sufficient detail to
support detailed mine planning and final evaluation of the economic
 
viability of the deposit. Because a
measured Mineral Resource has a higher level of confidence than the level of confidence of either an
indicated Mineral Resource or an inferred Mineral Resource, a measured Mineral Resource may be
converted to a proven Mineral Reserve or to a probable Mineral Reserve.
Mineable
That portion of a mineral resource for which extraction is technically and economically feasible
Mineral Asset(s)
Any right to explore and/or mine which has been granted (“property”), or entity holding such property or
the securities of such an entity, including but not limited to all corporeal and incorporeal property, mineral
rights, mining titles, mining leases, intellectual property, personal property (including plant equipment and
infrastructure), mining and exploration tenures and titles or any other right held or acquired in connection
with the finding and removing of minerals and petroleum located in, on or near the Earth’s crust. Mineral
Assets can be classified as Dormant Properties, Exploration Properties, Development
 
Properties, Mining
Properties or Defunct Properties
Mineral Reserve
Is an estimate of tonnage and grade or quality of indicated and measured Mineral Resources that, in the
opinion of the QP, can be the basis of an economically viable project. More specifically, the economically
mineable part of a measured or indicated Mineral Resource, which includes diluting materials
 
and
allowances for losses that may occur when the material is mined or extracted. The determination that part
of a measured or indicated Mineral Resource is economically mineable must be based on a preliminary
feasibility or feasibility study conducted by a QP applying the modifying factors to indicated or measured
Mineral Resources. The study must demonstrate that, at the time of the reporting, extraction of the Mineral
Reserve is economically viable under reasonable investment and market assumptions. The study must
establish a life of mine plan that is technically achievable and economically viable, which will be
 
the basis of
determining the Mineral Reserve. And the term “economically viable” means that the QP has determined,
using a discounted cashflow analysis, or has otherwise analytically determined that
 
the extraction of the
mineral reserve is economically viable under reasonable investment and market assumptions.
Mineral Resource
Is a concentration or occurrence of material of economic interest in or on the Earth's crust in such form,
grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral
Resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off
grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and
economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an
inventory of all mineralization drilled or sampled.
Modifying Factors
Are the factors that a qualified person must apply to indicated and measured Mineral Resources and then
evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and
evaluate modifying factors to convert measured and indicated Mineral Resources to proven and probable
Mineral Reserves. These factors include, but are not restricted to: Mining; processing; metallurgical;
infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements
with local individuals or groups; and governmental factors. The number, type and specific characteristics of
the modifying factors applied will necessarily be a function of and depend
 
upon the mineral, mine, property,
or project.
Reef
A precious metal bearing stratiform tabular ore body
Run-of-Mine (RoM)
Means the mineralized, raw unprocessed or uncrushed material obtained after blasting or excavating
Shale
A fine-grained detrital sedimentary rock formed from clay, mud or silt
Strike
Refers to the orientation of a geologic feature which is a line representing the intersection of that feature
with a horizontal plane. This is represented as a compass bearing of the strike line
Syncline
A fold with strata sloping upward on both sides from a common valley/base
Tailings
Material remaining after ore has been processed
Unconformity
A surface between successive strata representing a missing interval in the geologic record of time and
produced either by an interruption in deposition or by the erosion of lithology followed
 
by renewed
deposition
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Term
Explanation
Uraninite
A black, brown or grey uranium ore mineral, UO
2
Variogram
A measure of the average variance between sample locations as a function of sample separation
Wireframe
A 3D surface constructed from vertices with connecting straight lines or curves
Term
Description
%
percentage
% Au
percentage gold
% mass
percentage mass
~
approximate
‘
minutes
‘000m
3
thousand cubic metres
“
seconds
°
Degree
°C
Degrees Celsius
µm
micrometer
3D
three dimensional
AEL
Atmospheric Emissions License
ALS
ALS Chemex South Africa (Proprietary) Limited
AMIS
African Mineral Standards
ANC
African National Congress
Au
Gold
Au(CN)
2
gold cyanide complex
bar
metric unit of pressure
Beric Robinson
Tailings
Beric Robinson Tailings (Proprietary) Limited
BPS
Booster Pump Stations
CaSO
4
Calcium sulfite (gypsum)
CC
coarse coarse
CF
coarse fine
CIL
Carbon-in-Leach
CIP
Carbon-in-Pulp
CLR
Carbon Leader Reef
cm
centimeter
CoP
Code of Practice
COP
Cooke Optimization Project
CoR
Certificate of Registration
Covid-19
Coronavirus Disease 2019
CPP
Central Processing Plant
CRM
Certified Reference Material
CTSF
Central Tailings Storage Facility
CUP
Cooke Uranium Project
CWF
Central Water Facility
DAFF
Department of Agriculture Forestry and Fisheries
DCF
Discounted Cashflow
DFS
Definitive Feasibility Study
Digby Wells
Digby Wells Environmental (South Africa) (Proprietary) Limited
DMRE
Department of Mineral Resources and Energy (Department of Mineral Resources prior to 2019)
DP2
Driefontein Plant 2
DP3
Driefontein Plant 3
DRA
DRA SA (Proprietary) Limited
DRDGOLD
DRDGOLD Limited
DWA
Department of Water Affairs
DWS
Department of Water and Sanitation
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
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E
east
EA
Environmental Authorization under NEMA
ECA
Environmental Conservation Act
ECSA
Engineering Council of South Africa
EIA
Environmental Impact Assessment
EMP
Environmental Management Plan
EMPr
Environmental Management Program Report
EPCM
Engineering, Procurement and Construction Management
Ergo
Ergo Mining (Proprietary) Limited
Eskom
Electricity Supply Commission
ESTA
Extension of Security of Tenure Act
Ezulwini
Ezulwini Mining Company (Proprietary) Limited
FC
fine coarse
FEED
Front End Engineering Design
FF
fine fine
FSAIMM
Fellow of the Southern African Institute of Mining and Metallurgy
FW
Footwall
FWGR
Far West Gold Recoveries (Proprietary) Limited
FY
Financial Year
g
gram
g/cm
3
grams per cubic centimeter
g/t
grams per tonne
g/t Au
grams per tonne gold
Ga
Giga annum (a period of 1 billion years)
GDP
Gross Domestic Product
GICL
Guardrisk Insurance Company Limited
GISTM
Global Industry Standard on Tailings Management
GISTM
Global Industry Standard for Tailings Management
GN
Government Notice
GNR
Government Notice Regulation
Gold Fields
Gold Fields Limited
Gold One
Gold One International Limited
GPS
Global Positioning System
GSSA
Geological Society of South Africa
GTSA
Geo Tail SA (Proprietary) Limited
H
2
SO
4
sulfuric acid
ha
Hectare
Harmony
Harmony Gold Mining Company Limited
HDPE
high-density polyethylene pipe
HIA
Heritage Impact Assessment
HIV/AIDS
Human Immunodeficiency Viruses/Acquired Immunodeficiency Syndrome
HNO
3
nitric acid
hr
Hour
HSA
Hazardous Substances Act
HWSW
Heel Wall Scavenger Wells
I&APs
Interested & Affected Parties
ICMM
International Council for Mining and Minerals
ICOLD
International Council for Large Dams
IEA
Integrated Environmental Authorization
IEC
International Electrotechnical Commission
iLanda
iLanda Water Services CC
IRR
Internal Rate of Return
ISO
International Organization for Standardization
IWUL
Integrated Water Use License
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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JSE
Johannesburg Stock Exchange Limited
JV
Joint Venture
kg
kilogram
kHz
kilohertz
km
kilometre
koz
kilo ounce
ktpm
kilotonne per month
kV
kilovolt
kVA
kilovolt-ampere
LIDAR
light detection and ranging
LoM
Life-of-Mine
m
metres
M
million
m/yr
metres per year
m
2
square meter
m³
cubic meter
m³/a
cubic meter per annum
m³/d
cubic metres per day
m³/hr
cubic meter per hour
Ma
Mega annum (a period of 1 million years)
mamsl
metres above mean sea level
MCNCF
Maximum Cumulative Negative Cashflow
MDP
Multiple Deposition Point
MHSA
Mine Health and Safety Act
Minxcon
Minxcon (Proprietary) Limited
mm
millimeters
Mm
3
Million cubic meters
Mm
3
/a
Million cubic meters per annum
Moz
Millions of ounces
MPRDA
Mineral and Petroleum Resources Development Act
MPRRA
Mineral and Petroleum Resources Royalty Act
MR
Mining Right
Mt
Million tonnes
Mtpm
Million tonnes per month
MVA
Mega Volt Ampere
N
north
NAEIS
National Atmospheric Emission Inventory System
NEM:AQA
National Environmental Management Air Quality Act
NEM:BA
National Environmental Management Biodiversity Act
NEM:PAA
National Environmental Management: Protected Areas Act
NEM:WA
National Environmental Management Waste
NEMA
National Environmental Management Act
NFA
National Forests Act
NGL
Nominal Ground Level
NHRA
National Heritage Resources Act
NMD
Nominal Maximum Demand
NNR
National Nuclear Regulator
NNRA
National Nuclear Regulator Act
NPV
Net Present Value
NPV
10.17
Net Present Value at 10.17%
NRTA
National Road Traffic Act
NWA
National Water Act
NYSE
New York Stock Exchange
oz
troy ounce (conversion to troy ounces is 31.10348)
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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oz Au
gold ounces
PAR
Population at Risk
PFS
Preliminary Feasibility Study
pH
scale used to specify the acidity or basicity of an aqueous solution
PLL
Potential Loss of Life
PMP
Probable Maximum Precipitation
PoD
Point of Delivery
PSD
particle size distribution
QA/QC
Quality Assurance and Quality Control
QP
Qualified Person
Rand Uranium
Rand Uranium Limited
RoM
Run-of-Mine
RTSF
Regional Tailings Storage Facility
RWD
return water dams
S
south
S
2
sulfur
SABS
South African Bureau of Standards
SACNASP
South African Council for Natural Scientific Professions
SADPMR
The South African Diamond and Precious Metals Regulator
SAHRA
South African Heritage Resources Agency
SAIMM
Southern African Institute of Mining and Metallurgy
SANAS
South African National Accreditation System
SDP
Single Deposition Point
SEC
Securities Exchange Commission
Set Point
Set Point Laboratories
SG
Specific Gravity
SGS
SGS South Africa (Proprietary) Limited
SI
Système Internationale
SIA
Social Impact Assessment
SiB
Stay-in-Business
Sibanye Gold
Sibanye Gold Limited
Sibanye-Stillwater
Sibanye-Stillwater Limited
S-K 1300
Subpart 1300 of Regulation S-K under the U.S. Securities Exchange Act of 1934
SLP
Social and Labor Plan
SLR
SLR Consulting (Africa) (Proprietary) Limited
Sound Mining
Sound Mining International SA (Proprietary) Limited
SPCU
Self-Propelled Cyclone Units
SPLUMA
Spatial Planning and Land Use Management Act,
SPV
Special Purpose Vehicle
SRK
SRK Consulting (Proprietary) Limited
SVOL1
first search volume
SVOL2
second search volume
SWD
storm water dam
t
metric tonne
t/m
3
tonnes per cubic meter
TDS
total dissolved solids
the Trust
DRDSA Empowerment Trust
ToR
Terms of Reference
tpa
tonnes per annum
tph
tonnes per hour
tpm
tonnes per month
TRS
Technical Report Summary
TSF
Tailings Storage Facility
TWSW
Toe Wall Scavenger Wells
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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U
uranium
U/O
Underflow/Overflow
U
3
O
8
triuranium octoxide
USD
United States Dollars
USD/oz
United States Dollars per ounce
V1
Version 1
V2
Version 2
VCR
Ventersdorp Contact Reef
W
west
Witwatersrand Basin
Witwatersrand Supergroup
WML
Waste Management License
WRTRP
West Rand Tailings Retreatment Project (Proprietary) Limited
WUL
Water Use License
WWP
West Wits Project
WWTTP
West Wits Tailings Treatment Project
ZAR
South African Rands
ZAR Billion
Billion South African Rands
ZAR M
Million South African Rands
ZAR M/yr
Millions of South African Rands per year
ZAR/kg
South African Rands per kilogram
ZAR/t
South African Rands per tonne
ZAR/USD
South African Rands and United States Dollars exchange rate
 
exhibit961p2i0
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
136
25.
 
RELIANCE ON INFORMATION PROVIDED BY THE REGISTRANT
Item 25
The information
 
and conclusions
 
within this
 
TRS are
 
based on
 
information made
 
available to
 
the QPs
 
by DRDGOLD
 
and FWGR
 
at the
 
time of
 
the
preparation of this TRS.
 
The QPs have relied on
 
this information with respect to
 
legal matters (Item
 
3), the gold price (Item 16.1),
 
environmental or
social and
 
labor planning
 
aspects (Item
 
17) and
 
economic assumptions
 
(Item 19).
 
The QPs
 
have reviewed
 
this information
 
at face
 
value and
 
are
satisfied that it is both reasonable
 
and appropriate. QPs consider it reasonable
 
to rely on the information
 
provided by FWGR since they
 
are familiar
with the
 
operations
 
and ongoing
 
progress
 
of FWGR
 
since inception,
 
and
 
as a
 
consequence enjoy
 
an
 
enhanced level
 
of comfort
 
with respect
 
to
management integrity and the processes, procedures and quality of planning conducted at FWGR.
Additional information provided by
 
FWGR included technical reports
 
supplied by its consultants
 
and associates and the
 
relevant published data,
 
as
listed below:
●
the QPs
 
have
 
not independently
 
conducted any
 
title or
 
litigation searches
 
but have
 
relied upon
 
FWGR
 
for information
 
on the
 
property title,
agreements and other pertinent conditions;
●
these studies were undertaken
 
by Digby Wells
 
Environmental (South Africa) (Proprietary)
 
Limited (Digby Wells)
 
and Sound Mining has relied
 
on
the findings of these studies;
●
DRA SA
 
(Proprietary) Limited
 
were responsible
 
for the
 
detailed design
 
and associated
 
cost estimates
 
for the
 
expansion of
 
DP2 and
 
associated
piping and pumping infrastructure. Beric Robinson
 
Tailings (Proprietary)
 
Limited (Beric Robinson Tailings)
 
were responsible for the design
 
of the
RTSF which was also costed by DRA. The QPs have relied on Spargo Consult as an independent expert for the review of this work; and
●
Geo Tail SA (Proprietary) Limited (GTSA)
 
were responsible for the Cyclone Conversion Design and technical evaluation of the Leeudoorn TSF; and
the QPs have relied on the findings of this study.
 
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DRAFT
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
137
26.
 
QUALIFIED PERSONS DISCLOSURE CONSENT
Item 26
We,
 
the signees,
 
in our
 
capacity as
 
Qualified Persons
 
in connection
 
with the
 
Technical
 
Report Summary
 
of Far
 
West
 
Gold Recoveries
 
Proprietary
Limited dated 28 October 2022 (The Technical Report Summary) as required by Item 601(b)(96) of Regulation S-K and filed as
 
an exhibit to DRDGOLD
Limited’s (DRDGOLD)
 
annual report
 
on Form
 
20-F for
 
the year
 
ended 30
 
June 2022
 
and any
 
amendments or supplements
 
and/or exhibits
 
thereto
(collectively,
 
the “Form
 
20-F”) pursuant
 
to
 
Subpart 1300
 
of Regulation
 
S-K
 
promulgated
 
by
 
the U.S.
 
Securities and
 
Exchange
 
Commission (1300
Regulation S-K), each hereby consent to:
●
the public filing and use by DRDGOLD of the Technical Report Summary for which I am responsible as an exhibit to the Form 20-F;
●
the use and reference to my name, including my status
 
as an expert or Qualified Person (as defined by SK-1300) in connection with the Form 20-
F and Technical Report Summary for which I am responsible;
●
use of any extracts
 
from, or summary of,
 
the Technical
 
Report Summary in the
 
Form 20-F and the
 
use of any information
 
derived, summarized,
quoted or referenced from the Technical
 
Report Summary, or portions thereof,
 
that is included or incorporated by reference into the Form
 
20-F;
and any amendments or supplements thereto.
 
I am responsible for authoring, and this consent pertains to, the Technical Report Summary for which my name appears below and certify that
 
I have
read the 20-F and that it fairly and accurately represents the information in the Technical Report Summary for which I am responsible.
Table 40: QP Area of Responsibility and Disclosure Consent
Property Name
TRS Effective Date
QP Name
Affiliation to
Registrant
Field or Area of
Responsibility
Signature
Far West Gold Recoveries Proprietary
Limited (A subsidiary of DRDGOLD
Limited)
30 June 2022
Mr Vaughn Duke
Independent
Consultant
Mineral Reserves
/s/ Vaughn Duke
Far West Gold Recoveries Proprietary
Limited (A subsidiary of DRDGOLD
Limited)
30 June 2022
Mrs Diana van Buren
Independent
Consultant
Mineral Resources
/s/ Diana van Buren
Far West Gold Recoveries Proprietary
Limited (A subsidiary of DRDGOLD
Limited)
30 June 2022
Mr Keith Raine
Independent
Consultant
Environmental and
Social Governance
/s/ Keith Raine