Mineral Resources and Mineral Reserves
Mimosa

Mimosa is located 20km west of the town of Zvishavane, 150km east of Bulawayo on the Wedza Complex of the Great Dyke in Zimbabwe. Mimosa was acquired by Zimasco from Union Carbide in 1993. Zimasco piloted platinum mining in Zimbabwe by resuscitating the operation and steadily increasing production to 1 000 tonnes per day achieved in 1998. In July 2001, Implats acquired a 35% stake in Mimosa and increased this stake to 50% with a further acquisition of 15% in August of the following year. Aquarius acquired a 50% stake in Mimosa during the same year. Mimosa is wholly owned by Mimosa Investments Limited, a Mauritius-based company jointly held by Implats and Aquarius in a 50:50 joint venture.

The Government of Zimbabwe has been pursuing the greater participation in the mining sector by indigenous Zimbabweans. Implats is continuing to engage with the Government of Zimbabwe with respect to agreeing plans for the indigenisation of Mimosa. The current position with regard to the implementation of the Government of Zimbabwe’s indigenisation plans is not clear and depending on what position is ultimately taken by the Government of Zimbabwe, Implats’ attributable mineral resources and mineral reserves may be significantly reduced.

PGM mineralisation at Mimosa is located in four erosionally isolated and fault-bounded blocks, consisting from north to south of the North Hill orebody, South Hill orebody, Mtshingwe Block orebody and Far South Hill orebody areas. Mimosa holds contiguous mining rights over the above mentioned areas totalling 6 591ha. The indigenisation plan has not been completed and the reported attributable mineral resources and mineral reserves are still at the same attributable ownership level of 50%.

The platinum-bearing Main Sulphide Zone (MSZ) is located in the P1 pyroxenite some 10m below the ultramafic/mafic contact. The MSZ is a continuous layer, 2m to 3m thick, and forms an elongated basin. The zone strikes in a north-northeasterly trend and dips at about 10° on the margins flattening towards the axis of the basin. The MSZ at Mimosa has a well-defined grade profile where peak base metal and PGM values are offset vertically, with palladium dominant towards the base, platinum in the centre and nickel towards the top. At Mimosa the MSZ is visually identified using pyroxene and sulphide mineralisation followed by confirmatory channel sampling unlike at Zimplats, where the MSZ is difficult to identify visually with no clear marker horizons, and systematic monitoring supported by channel sampling is required to guide mining. Minor faults and dykes are present at Mimosa. Although no potholes have been identified, low-grade areas and areas of no mineralisation or “washouts” have been intersected. These are all accounted for in the mineral resource and mineral reserve statement. Mimosa is a shallow underground mine accessed by the Blore Decline Shaft system. The bord and pillar mining method is employed and stoping widths average around 2m.

Mining bords advance along strike. The mining cycle involves mechanised support drilling and installation, mechanised face drilling, charging and blasting, and mechanised lashing onto a conveyor network to an underground bunker. From the bunker ore is conveyed out to a surface stockpile. Optimum stoping widths and mining cut selection are regularly reviewed given variation in metal prices and the non-linear distribution on the different metals. Mining models are defined relative to the platinum peak and recent work confirmed that a 2m slice is presently the optimum cut. The mineral resources and mineral reserves listed below are based on a slice that extends from 0.45m above the platinum peak datum to 1.55m below the datum. The reported mined grade is based on inverse distance block modelling of borehole values using Surpac™.

Mine design and scheduling is done utilising Surpac™. The mine plan is derived from a target milling throughput. Strategic stockpile levels are factored into the volumes to be hoisted. Losses due to mining and geology are applied to the planned tonnages and then consolidated into the LoM profile. The assured LoM of Mimosa is limited to the northern part of the South Hill deposit known as the Wedza shaft area; however, the LoM depicted below now includes on-reef stoping from the Wedza shaft mineral reserve area into the southern part of the South Hill orebody known as the Mtshingwe area. Mimosa has a concentrator plant on site where initial processing is done. Concentrate is transported by road to Impala Platinum’s Mineral Processes in Rustenburg in terms of an offtake agreement with IRS. An alternative option for local beneficiation is being pursued.

Key operating statistics

		2015	2014	2013	2012	2011
Production
Tonnes milled ex mine	(000t)	2 586	2 453	2 381	2 324	2 311
Head grade 6E	(g/t)	3.92	3.92	3.95	3.93	3.91
Platinum in concentrate	(000 oz)	117.4	110.2	100.3	106.0	104.9
PGM in concentrate	(000 oz)	250.1	234.6	214.8	222.8	219.7
Breakdown of cash costs
On-mine operations	(Rm)	(1 375)	(1 425)	(1 110)	(813)	(730)
Concentrating operations	(Rm)	(501)	(375)	(311)	(242)	(196)
Selling and administration	(Rm)	(167)	(158)	(155)	(138)	(90)
Total cost	(Rm)	2 043	1 958	1 576	1 193	1 016
Per tonne milled*	(R/t)	790	798	662	513	440
	($/t)	69	77	75	66	63
Per Pt oz in concentrate	(R/oz)	17 402	17 768	15 713	11 255	9 685
	($/oz)	1 525	1 713	1 782	1 453	1 377
Financial ratios
Gross margin ex mine	(%)	22.9	19.3	24.2	37.7	52.2
Capital expenditure	(Rm)	343	349	265	497	372
	($m)	30	34	30	64	53

Relationship between exploration results, mineral resources and mineral reserves (100%)

Mimosa mineral resources and mineral reserves (100%; inclusive reporting)
as at 30 June 2015

	Mineral resources		as at 30 June 2015									as at 30 June 2014
	Orebody	Category	Tonnes   Mt	Width   cm	4E   grade   g/t	6E grade g/t	Ni   %	Cu   %	4E   Moz	6E   Moz	Pt   Moz	Tonnes   Mt	Width   cm	4E   grade   g/t	6E   grade   g/t	Ni   %	Cu   %	4E   Moz	Pt   Moz
	South Hill MSZ	Measured	46.6	200	3.78	4.00	0.14	0.11	5.7	6.0	2.8	35.2	200	3.86	4.12	0.13	0.11	4.4	2.1
		Indicated	13.4	200	3.47	3.69	0.14	0.11	1.5	1.6	0.7	26.9	200	3.57	3.82	0.14	0.12	3.1	1.5
		Inferred	7.0	200	3.60	3.79	0.15	0.11	0.8	0.9	0.4	7.0	200	3.67	3.93	0.14	0.11	0.8	0.4
		Inferred (Oxides)	4.4	200	3.16	3.30	0.12	0.12	0.4	0.5	0.2	4.6	200	3.17	3.39	0.12	0.12	0.5	0.2
Total			71.4		3.67	3.88	0.14	0.11	8.4	8.9	4.2	73.7		3.70	3.95	0.14	0.11	8.8	4.3
	North Hill MSZ	Measured	18.2	200	3.47	3.68	0.14	0.10	2.0	2.1	1.0	18.2	200	3.47	3.68	0.14	0.10	2.0	1.0
		Indicated	16.3	200	3.61	3.84	0.16	0.12	1.9	2.0	0.9	16.5	200	3.61	3.83	0.15	0.12	1.9	1.0
		Inferred	2.0	200	3.52	3.74	0.14	0.10	0.2	0.2	0.1	1.9	200	3.52	3.74	0.14	0.10	0.2	0.1
		Inferred (Oxides)	7.6	200	3.53	3.75	0.14	0.11	0.9	0.9	0.4	7.5	200	3.53	3.75	0.14	0.11	0.9	0.4
Total			44.0		3.54	3.75	0.15	0.11	5.0	5.3	2.5	44.2		3.54	3.75	0.15	0.11	5.0	2.5
	Far South Hill MSZ	Measured	4.4d	200	3.70	3.94	0.14	0.11	0.53	0.56	0.3
		Indicated	1.5	200	3.86	4.11	0.15	0.11	0.19	0.20	0.1
		Inferred	0.05	200	3.94	4.19	0.16	0.11	0.01	0.01	0.0	11.3	200	3.78	4.03	0.14	0.11	1.4	0.7
		Inferred (Oxides)	6.0	200	3.40	3.63	0.13	0.10	0.66	0.70	0.3
Total			12.1		3.57	3.81	0.14	0.11	1.4	1.5	0.7	11.3		3.78	4.03	0.14	0.11	1.4	0.7
Overall total			127.5		3.62	3.83	0.14	0.11	14.8	15.7	7.4	129.2		3.65	3.89	0.14	0.11	15.2	7.5
	Mineral reserves		as at 30 June 2015									as at 30 June 2014
	Orebody	Category	Tonnes   Mt	Width   cm	4E   grade   g/t	6E grade g/t	Ni   %	Cu   %	4E   Moz	6E   Moz	Pt   Moz	Tonnes   Mt	Width   cm	4E   grade   g/t	6E   grade   g/t	Ni   %	Cu   %	4E   Moz	Pt   Moz
	South Hill MSZ (Wedza)
		Proved	18.7	200	3.47	3.71	0.16	0.12	2.1	2.2	1.0	10.5	200	3.49	3.72	0.14	0.11	1.2	0.6
		Probable	1.6	200	3.29	3.51	0.14	0.11	0.2	0.2	0.1	12.1	200	3.27	3.50	0.15	0.12	1.3	0.7
Total			20.3		3.46	3.69	0.15	0.11	2.3	2.4	1.1	22.6		3.37	3.60	0.15	0.12	2.5	1.2
	South Hill MSZ (Mtshingwe)
		Proved	4.2	200	3.88	4.14	0.14	0.11	0.5	0.6	0.3
		Probable	9.3	200	3.75	4.03	0.13	0.10	1.1	1.2	0.5
Total			13.5		3.79	4.07	0.13	0.10	1.6	1.8	0.8
Total South Hill mineral reserves			33.8		3.59	3.84	0.15	0.11	3.9	4.2	1.9	22.6		3.37	3.60	0.15	0.12	2.5	1.2

Notes

• The statement above reflects the total mineral resource and mineral reserve estimate for Mimosa as at 30 June 2015
• Mineral resources are quoted inclusive of mineral reserves
• Mineral resource estimates allow for estimated geological losses, while no allowance is made for anticipated support pillar losses during eventual mining
• Mineral resource grades are quoted in situ while mineral reserve grades are quoted after applying mine to mill modifying factors
• Mineral resource estimates have been done using Surpac™ software to apply inverse distance techniques
• Current mineral resource and reserve estimates have included latest assay results. Twenty-five additional new boreholes have been used for the South Hill grades estimations while 16 new boreholes were introduced for the Far South Hill. In both cases the new information impacted on the grade estimate and resulted in a slightly lower average grade
• The mineral reserves quoted reflect anticipated grades delivered to the mill
• The mineral reserves estimations are aligned to the business plan by estimating tonnes and grades at 2m mining width
• No inferred mineral resources have been converted into mineral reserves
• The mineral reserve statement as at 30 June 2015 includes a portion of the Mtshingwe block given the project approval and continued development into this area
• Rounding of numbers may result in minor computational discrepancies. Mineral resource estimates are inherently imprecise in nature; the results tabulated in this report must be read as estimates and not as calculations; inferred mineral resources in particular are qualified as approximations
• The economic viability of the Mimosa mineral reserves is tested by means of net present value calculations over the LoM of the reserve, determining the lowest real rand basket price which would still render the reserve viable. This is then tested against the internal Mimosa estimate of the real long-term basket price, the spot price as at 30 June 2015 and a consensus view from various financial institutions. These tests indicate that the Mimosa operation requires a real long-term basket price of between R22 000 to R23 000 to be economically viable. While the real spot basket price as at 30 June 2015 was R22 223, the Mimosa internal long-term real basket price is R29 138 and the equivalent calculated consensus price is R25 158.

The year-on-year reconciliation of the total Mimosa mineral resources and mineral reserves are depicted in the accompanying graphs.