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

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TABLE OF CONTENTS

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List of Figures

List of Tables

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List of Graphs

List of Photographs

List of Appendices

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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.

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The QP has relied on information provided by FWGR with respect to legal matters (Item

), the gold price (Item

), environmental or

social and labor planning aspects (Item

) and economic assumptions (Item

).

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

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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

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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 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.

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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

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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.

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Figure E: Property Geology

Source: Sound Mining, 2022

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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 mineralization 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.

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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.

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).

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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

. 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).

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Figure F: Mining Methodology

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“.

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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 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.

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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.

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.

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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.

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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.

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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.

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.

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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

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%).

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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.

Graph C shows the expansion of DP2 facilitates an increase in gold sales over time (refer to

).

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.

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Graph D presents the post-tax cashflow for an operation that excludes the benefits that would eventually be derived from the available

TSFs (refer to

.

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. FWGR is an ongoing operation and thus the Internal Rate of Return (IRR) and

a capital payback period are not applicable.

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

. 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

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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)

Source: Sound Mining, 2022

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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.

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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

 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.

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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

), the gold

price (Item

), environmental or social and labor planning aspects (Item

) and economic assumptions (Item

).

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.

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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 (DRA);

●

Geo Tail SA (Proprietary) Limited’s (GTSA);

●

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

The Sound Mining QPs and other specialists visited FWGR in 2019, 2020 and 2022 and examined the operations as shown in

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

). 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.

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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.

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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

(

). 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 (

).

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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.

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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 (

) 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.

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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.

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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 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.

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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).

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: 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 (

).

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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: 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.

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The vegetation of the region is typical savannah grassland (

) 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.

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

).

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

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 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

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.

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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 (

).

The basin hosts vast auriferous and uraniferous deposits which have been grouped into geographically distinct sub-basins or goldfields

(

). 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

). 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.

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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 Mineralization

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: 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 (

). 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

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Source: Frimmel et al, 2005

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 (

). Additional horst structures are superimposed upon the southeast plunging West

Rand Syncline including the Bank Fault (

), 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 (

) 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

 and

Item

 respectively.

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Figure 12: Property Geology

Source: Sound Mining, 2022

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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 Characterization

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

 and

Item

). Hydrological and geohydrological considerations for the Leeudoorn TSF and RTSF are discussed in Item

 and Item

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

). Geotechnical

assessments were performed for the design of the Leeudoorn TSF and RTSF (Item

 and Item

). 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.

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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

 to

. 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.

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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.

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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.

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: 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

) providing confidence in the results.

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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 standards 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.

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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

 and

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

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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

 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: 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.

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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

, 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;

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●

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

­

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

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.

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●

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.

11.4.

Mineral Resource Verification

The following data was received, interrogated, and verified by Sound Mining (

).

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 (

). 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

 to

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

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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

) 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.

 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

 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.

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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.

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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 (

) 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

).

A LoM plan and mining schedule was developed by FWGR and modified by Sound Mining, as outlined Item

. 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. 

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●

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.

●

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.

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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 (

), 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

 and Item

. 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

 and

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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 (

). A monitor gun dislodges the in situ material

which washes into slurry channels (

).

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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 (

).

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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.

 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.

 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 (

).

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Graph 1: LoM Production Forecast

Source: Sound Mining, 2022

 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

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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: 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

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.

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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. DRA were responsible for the detailed design and associated cost estimates for the expansion of

DP2 as well as the piping and pumping infrastructure. The QPs appointed Spargo Consult, as an independent expert, to assist with the

review of the metallurgical aspects.

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.

 and

 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

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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

 depicts the changed DP2 plant layout planned from the plant expansion.

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Figure 22: DP2 Revised Block Plan

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:

●

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.

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●

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 (ZAR194.16):

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.

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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.

 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.

The QPs have relied on the findings of Geo Tail SA (Proprietary) Limited’s (GTSA) Leeudoorn TSF Cyclone Conversion Design and technical

evaluation for an understanding of the planned conversion of the current day wall TSF to a cyclone-based deposition system. The design

has been developed to accommodate the required deposition plan. While the QP has not interrogated the voracity of this work in detail,

it has been benchmarked against other similar conversion projects and has been found to be within proven operational practice and

acceptable risk levels.

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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.

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.

 shows the current layout of the Leeudoorn TSF.

Figure 24: Leeudoorn TSF Layout

Source: Geo Tail, 2022

 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

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Description

Value/Output

Source

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.

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.

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15.1.2.

Leeudoorn Design

 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.

 shows the position of the elevated drain filter.

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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: 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.

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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 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

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.

 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.

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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 (

 and

).

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

Seismicity

Low, medium or high

Geochemistry

Low, moderate, severe

Tailings SG

High, average, low

Source: Beric Robertson Tailings, 2020

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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: 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 average 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

(

).

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Figure 28: Geo-hydrological Regime at the RTSF Site

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: 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

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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.

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

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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.

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.

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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.

 shows the layout of the RTSF.

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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 FWGR Regional Tailings Dam Report and design prepared by Beric Robinson Tailings (2020)

(costed by DRA) 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. 

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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.

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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.

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 (

).

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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: 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.

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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

(

) 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: 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

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Suitable PoDs have been identified for the FWGR operations, as shown in

. 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

, is provided in

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

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A summary of the additional piping requirements is presented in

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.

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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: 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 (

). After interrogating the gold price, the QPs are of the opinion that a gold

price of ZAR914,294/kg, provided by FWGR, is appropriate for use in the economic assessment.

Graph 5: Gold Price Historical Trendline

Source: Sound Mining, 2022

The linear trendline indicates robust gold price potential over the near to medium-term.

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16.2.

Exchange Rate Forecast

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: 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: 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.

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16.3.

Global Demand

 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: 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

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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

. 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.

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17.

ENVIRONMENTAL STUDIES, PERMITTING, OR AGREEMENTS WITH LOCALS, 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

. 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.

 summarizes the current environmental legal standing for the

Driefontein mining area.

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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.

 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) (

). 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

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.

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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.

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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.

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.

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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 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

Sound Mining has relied on environmental closure liability estimates provided by Digby Wells. They are experts in this field and were

commissioned for the purpose. A review of the closure estimate and associated plans covered 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;

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●

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.

 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 ZAR166.90 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.

 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%.

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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

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.

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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: 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

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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.

 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 (

) and forecast (

) 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.

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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.

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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: 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.

 shows the expansion of DP2 facilitates an increase in gold sales over time (refer to

.

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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

 presents the post-tax cashflow for an operation that excludes the benefits that would eventually be derived from the Available

TSFs (refer to

.

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 with. FWGR is an ongoing operation and thus the Internal Rate of Return (IRR) and

a capital payback period are not applicable.

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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

. 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

 and is illustrated graphically

in

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

 shows that changes to the revenue forecast will impact margins the most.

Graph 13: Sensitivity to Expected Revenue and Costs

Source: Sound Mining, 2022

 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: 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

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Source: Sound Mining, 2022

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: 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.

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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);

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●

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

●

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.

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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.

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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;

●

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).

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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

. 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

, remains satisfied that Mineral Resources and Mineral Reserves of FWGR are

not likely to change materially as a consequence of these uncertainties.

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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.

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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: 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

Environmental/Legal

Department of Minerals

Resources and Energy

May 2018

pdf

WRTRP Driefontein Environmental Authorization GP30/5/1/2/3/2/1(51)EM

Far West Gold Recoveries (Proprietary) Limited

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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

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

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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

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: 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

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Term

Explanation

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 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

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Term

Explanation

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

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

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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

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

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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

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

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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)

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,

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134

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

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

Far West Gold Recoveries (Proprietary) Limited

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135

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 as noted in this item. The QPs have relied on this information with respect to legal matters (Item

),

Environmental Studies, Permitting, or Agreements with locals or Individuals or Groups (Item

) and the economic Assessment (Item

).

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 (throughout Item

. 

The QPs have reviewed this information at face value and are satisfied that it is both reasonable and appropriate. The QPs believe that it

is reasonable to rely on the information provided by FWGR as identified in this item because they are intimately more familiar with the

operations and ongoing progress of FWGR since inception, and as a consequence this provides the QPs with an enhanced level of comfort

with respect to the management, processes, procedures and quality of planning at FWGR.

Far West Gold Recoveries (Proprietary) Limited

Document No: PR/SMI/1203/22

136

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

Far West Gold Recoveries (Proprietary) Limited

Document No: PR/SMI/1203/22

137

Appendix 1: Summary of the DCF Model (excluding liner)

Description

Unit

Total/

Average

2023

FY

2024

FY

2025

FY

2026

FY

2027

FY

2028

FY

2029

FY

2030

FY

2031

FY

2032

FY

2033

FY

2034

FY

2035

FY

2036

FY

2037

FY

2038

FY

2039

FY

2040

FY

2041

FY

2042

FY

Reclaimed Tonnes

kt

229.371

6,044

6,044

6,044

7,546

9,048

9,048

9,048

11,148

14,400

14,400

14,400

14,400

14,400

14,400

14,400

14,400

14,400

14,400

14,400

7,000

Head Grade

g/t

0.33

0.48

0.47

0.47

0.41

0.36

0.36

0.36

0.37

0.37

0.37

0.32

0.30

0.30

0.30

0.30

0.30

0.28

0.27

0.27

0.27

Recovery

%

53%

50%

54%

57%

55%

53%

53%

53%

53%

53%

53%

51%

49%

49%

49%

54%

58%

55%

55%

55%

55%

Gold Sold

kg

40,409

1,404

1,528

1,592

1,674

1,740

1,740

1,740

2,216

2,840

2,840

2,369

2,105

2,105

2,105

2,322

2,532

2,190

2,159

2,159

1,049

Revenue

ZAR M

36,946

1,284

1,397

1,455

1,531

1,591

1,591

1,591

2,026

2,597

2,597

2,166

1,924

1,924

1,924

2,123

2,315

2,003

1,974

1,974

959

Operating Costs

ZAR M

19,550

838

538

538

773

868

868

868

995

1,168

1,168

1,168

1,168

1,168

1,168

1,168

1,168

1,168

1,168

1,168

717

Capital Expenditure

ZAR M

6,767

326

61

1,595

957

300

589

1,120

565

18

402

146

18

18

416

152

18

18

18

18

20

Post-tax Free Cashflow

ZAR M

7,338

288

555

(678)

(199)

424

118

(397)

404

987

714

600

525

525

242

567

794

579

559

559

171

Cumulative Post-tax Free

Cashflow

ZAR M

7,338

288

843

165

(34)

389

507

110

514

1,501

2,216

2,816

3,341

3,867

4,108

4,675

5,469

6,049

6,608

7,167

7,338

Post-tax Discounted Cashflow

ZAR M

2,318

262

459

(509)

(136)

263

66

(204)

189

419

275

210

167

152

64

136

173

115

101

91

25

Cumulative Post-tax Discounted

Cashflow

ZAR M

2,318

262

721

211

75

338

405

201

389

808

1,083

1,294

1,461

1,613

1,677

1,813

1,986

2,100

2,201

2,292

2,318

Notes: Apparent computational errors due to rounding