NAME OF APPLICANT: MASHAU CAPITAL (PTY) LTD

REFERENCE NUMBER: FS 30/5/1/1/2/10477 PR

PROSPECTING WORK PROGRAMME

SUBMITTED FOR A PROSPECTING RIGHT

APPLICATION WITHOUT BULK SAMPLING
AS REQUIRED IN TERMS OF SECTION 16 READ TOGETHER WITH
REGULATION 7(1) OF THE MINERAL AND PETROLEUM RESOURCES
DEVELOPMENT ACT (ACT 28 of 2002)

STANDARD DIRECTIVE

All applicants for mining rights are herewith, in terms of the provisions of Section 16 and
in terms of Regulation 7(1) of the Mineral and Petroleum Resources Development Act,
directed to submit a Prospecting Work Programme, strictly under the following headings
and in the following format together with the application for a prospecting right.
1. REGULATION 7.1.(a): FULL PARTICULARS OF THE APPLICANT
Table 1: Applicants Contact Details

ITEM COMPANY CONTACT DETAILS

Name MASHAU CAPITAL (PTY) LTD

Tel no 011 447 4895

Fax no: 086 689 5745

Cellular no

E-mail address vho@muvoni.com

Postal address P O Box 1835

SAXONWORLD
2132

Table 2: Consultants Details

ITEM CONSULTANT CONTACT

DETAILS (If applicable)

Name Nkhophele Holdings (Pty)Ltd

Tel no 084 219 7473

Fax no: 086 565 5359

Cellular no 0842197473

E-mail address ndivhuwor@vvmr.co.za

Postal address 1st floor Hennops House, Riverside

Office Park, cnr Lenchen and
Heuwel, Centurion, 0163
 2. REGULATION 7(1)(b): PLAN CONTEMPLATED IN REGULATION 2(2)
SHOWING THE LAND TO WHICH THE APPLICATION RELATES

REGULATION 7(1)(c): THE REGISTERED DESCRIPTION OF THE LAND TO

WHICH THE APPLICATION RELATES

Farm name Portions SG District

WELTEVREDEN 130 ALL F03600000000013000000 BOTHAVILLE
BOSHOEK 466 ALL F03600000000046600000 BOTHAVILLE
WELVERDIEND 216 ALL F03600000000021600000 BOTHAVILLE
STERKFONTEIN 474 ALL F03600000000047400000 BOTHAVILLE
JONKERSKRAAL 475 ALL F00500000000047500000 BOTHAVILLE
KLEIN JONKERSKRAAL 551 ALL F00500000000055100000 BOTHAVILLE
3. REGULATION 7(1)(d) and (e): THE MINERAL OR MINERALS TO BE
PROSPECTED FOR
Table 4.1: Minerals to be prospected for

ITEM DETAIL
Type of mineral(s) Diamond (Alluvial)

Type of minerals continued Diamond (Kimberlite /Dyke)

Type of minerals continued N/A

Locality About 7 km(North-West) of Orkney CBD

(Direction and distance from nearest town)

Extent of the area required for prospecting Approximately 3813 Hectares

Geological formation The underlying rocks form part of the Plattberg

Group, with the formation of the Allanridge and the
Rietgat.

4.2 Description why the Geological formation substantiates the minerals

to be prospected for

The Ventersdorp is divided into 3 groups i.e. the Klipriviersbeg Group at the base, the Platberg Group and the
Pniel Group. All groups are separated by erosional unconformities (Van Der Westhuizen,1991). The
Klipriviersberg group exclusively consists of mafic volcanic rocks and has been subdivided into 6 formation
(Winter, 1976), the Platberg Group includes various sedimentary rocks and mafic intermediate lava flows and
is divided into Kameeldoorns formation, Makwassie formation and Rietgat formation. The Pniel group consists
of the sedimentary Bothaville formation and the volcanic Allanridge formation that constitudes the youngest
part of the Ventersdorp Supergroup.

There exists a strong correlation between Alluvial deposits and Ventersdorp lava bedrock in the Vaal-Hart
River Basin.
4.3 Attach a geological map that justifies the description why there is a
possibility that the minerals applied for could occur on the land
concerned.
5 REGULATION 7(1)(f): A DESCRIPTION OF HOW THE MINERAL
RESOURCE AND MINERAL DISTRIBUTION OF THE PROSPECTING
AREA WILL BE DETERMINED

The mineral resources and distribution will be determined by means of non-invasive and invasive prospecting methods

A geophysical survey will be conducted over the prospecting area in order to determine the presence of Dolerite
Dykes; this survey will consist of several geophysical traverses to cover the prospecting area. A geological base map
will be produced from the geophysical survey data. The geological base map will be produced from the geophysical
survey data. The geophysical survey and topographical elevations will be used as a basis fro the drilling programme.

Geological core boreholes will be drilled over the prospecting area. These boreholes will be drilled to the base of the
Ecca. All cores will be logged, and the economical coal seam analyzed to determine the calorific value, Ash content,
fixed carbon, volatile content and sulphur content. If the quality of the coal seam warrants further investigation,
washability analysis of the coal will be undertaken.

All geological prospecting boreholes will be surveyed and plotted on a plan.

A relative density (R.D) of 1.5 will be used for all the samples for the purpose of resource calculations. The coal
resource will be calculated using a computer-modelling package (surfer 2000). All observation points will be used in the
construction of the model. The top and bottom limits of the seams will be volume calculated by applying a 100 by 1000
meter grid to the data and using the principles of Kriking to interpolate between borehole information. Each seam will
be calculated. As a check, the area underlain by coal will be calculated and multiplied by the average seam thickness
and a relative density value of 1.50.

An independent geologist with adequate experience in the approximation of resource/reserve estimates in order to
qualify as competent person as defined by the South African Code for Reporting Mineral Resources (SAMREC) will be
used to determine the coal resource in accordance with the SAMREC Code.

Data from the detailed surveys and different types of geological maps will be used to determine where the diamond
bearing material or the presence of any other mineral may occur with the data from the geological surveys the area
where the biggest possibility of any mineral may occur will be determined 11 months are needed for phase 1 ,Drilling
will take place on a 50 x 50 meter grid, where by the boundaries of the ore body can be determined, 14 months are
needed for phase 2, Sampling of drilling areas in order to get more detail on the specific minerals , 15 months are
needed for phase 3
 8

AND

REGULATION 7(1)(h): ALL PLANNED PROSPECTING ACTIVITIES MUST BE

CONDUCTED IN PHASES AND WITHIN SPECIFIC TIMEFRAMES

Table 5.1

Year Phase Time frame & Description of proposed

activity

Year 1 Phase 1: Construction 11 months

Collecting and compilation of Data All Data compiled for the benefits of the

Geophysical Survey The geophysical data for spatial will be collected from
above the surface with the use of sensing instruments.
This survey will consist of geophysical traverse.

Boreholes target selection The boreholes positioning will be established in relation to

the Geophysical Data collected

Year 2 Phase 2: Operational Month 11-25

Diamond Core drilling starts A geological base map will be drilled over the prospecting
area. The boreholes will be drilled to the base of Ecca. All
core will be logged.

Sample results available The logged core will be taken for testing to an
independent laboratory and results thereof will be
provided

Data interpretation and modeling The collected and observed data is analyzed and the
information is computerized

Year 3 Phase 3: Operational Month 25-40

Diamond Core Drilling A geological base map will be drilled over the prospecting
area. The boreholes will be drilled to the base of Ecca. All
core will be logged.

Sample results available The logged core will be taken for testing to an
independent laboratory and results thereof will be
provided
 9

Data interpretation modeling The collected and observed data is analyzed and the
information is computerized

Pre-feasibility study The geological, technical and economic studies will be

carried out to determine whether the deposit can be
developed or used to greatest advantages.

Year 4 Phase 4: Post-closure Month 40-50

Details on the Diamond core drilling The results gathered from the operation will be viewed

Sample results available The logged core will be taken for testing to an
independent laboratory and results thereof will be
provided

Geological modeling The earths crust representation of the area of interest will
be computerized

Socio-Economic Impact The site will be studied and analyzed for the extent of
assessment, Environmental Impact impacts caused by the project for rehabilitation to
Assessment commence.

Year 5 Phase 5: Closure Month 50-60

Feasibility study An investigation will be carried out concerning the

proposed project to determine its chances of operating
successfully and profitably.

Financial study The required financial amount for the future plan project is
investigated and the profitability thereof is determined.

Market research Data of potential competition and customers will be

collected and analyzed to provide information needed for
profitability chances.

Mine planning Considering the outcomes of the study undertaken,

mining potential for future is planned.

Financial studies and market The challenges associated with the market will studied
susceptibility study and the profit thereof.
 10

Mine permitting Application for mine permitting will be lodged based on

the outcomes.

AND

REGULATION 7(1)(i):TECHNICAL DATA DETAILING THE PROSPECTING

METHOD OR METHODS TO BE IMPLEMENTED AND THE TIME REQUIRED
FOR EACH PHASE OF THE PROPOSED PROSPECTING OPERATION

Non-invasive activities will consist of Desk study (collection of existing information, data, interpretation & Geophysical
survey, and mapping.

Invasive activities will consist of diamond core drilling, Logging and Sampling, analysis, diamond drilling, Geological
Interpretation and modeling.

Prospecting methodology

Phase 1: Desk study involves the collection of existing information or data, interpretation and Report, Geophysical
survey, planning of logistic of the physical drilling program.
.
Phase 2: core drilling an estimated 25 boreholes at an average depth of 40m, logging and sampling, analysis and
geological interpretation and modelling.

Phase 3: Details Diamond Core Drilling (25 boreholes), Sample results available, Data interpretation modeling and
Pre-feasibility study.

Phase 4: Environmental Impact Assessment, Socio-Economic Impacts Assessment, Diamond Core drilling, sample
results available and Geological Modeling.

Phase 5: Feasibility Study, Financial Studies, Market Research, Mine Planning, Financial studies and Market
susceptibility study and Mine planning

Planned prospecting activities

ACTIVITIES TIME
Year 1

Collecting and compilation of data 2 months

Interpretation of available data 3 months
Geophysical survey 4 months
Borehole target selection 2 months

Year 2

Diamond Core/Percussion drilling start 8 months

Sample Result available 3 months
Data Interpretation and Modelling 3 months
 11

Year 3

Diamond Core/Percussion Drilling 8 months

Sample Result available 2 months
Data interpretation and modeling 2 months
Pre-Feasibility Study 3 months

Year 4

Details of Diamond Core/Percussion Drilling 3 months

Sample Results available 2 months
Geological Modelling 3 months
Socio-economic Impact Assessment/
rehabilitation 2 months

Year 5

The Programme for Year 5 will take 10 months to complete

Feasibility study 2 months
Financial studies 2 months
Market research 2 months
Mine Planning 2 months
Financing studies and market
susceptibility study 2 months

A period of 5 years has been applied for.

Cost estimation

The detailed break-down of the exploration budget for the period applied is as follows:

Planned diamond drilling cost:

Planned number of diamond core boreholes to be drilled: 50

Rate per meter drilling : R 2 000/m
Average drill hole depth : 40 m

Planned number of percussion boreholes to be drilled: 50

Rate per meter drilling : R 2 000/m
Average drill hole depth : 40m

Planned Analysis cost:

Analysis samples will be conducted by external laboratories and are envisaged to cost R 120 000 .00. The samples will
be sent to the laboratory frequently for 3 Months.

Other direct cost:

An amount of R 100 000 .00 will be set aside for the bankable feasibility studies envisage in 5 years.

Depending on the outcome of the results in year 4, year 5 will focus on feasibility studies, market studies, and financial
studies, mine planning and social and environmental studies.
 12

Depending on the success of the prospecting programme and prevailing market conditions at the time , emphasis may
be placed on more promising areas so as to bring them into the production sooner than other areas. The prospecting
programme will continue over the remaining areas concurrently with mine development.

Provision for prospecting, labour and environmental costs has been estimated to the cost and including the other
prospecting activities will amount to R 3 245 000.
 13

Table 5.2

Phase Activity Skill(s) required Timefram Outcome Timeframe for What technical
e outcome expert will sign off
on the outcomes

Phase Phase 1: Construction 11 months

1

Collecting and compilation of Geologist Geologist

Data

Geophysical Survey Geologist The geophysical data for Geologist

spatial will be collected from
above the surface with the
use of sensing instruments.
This survey will consist of
geophysical traverse.

Boreholes target selection Geologist The boreholes positioning will Geologist

be established in relation to
the Geophysical Data
collected

Phase Phase 2: Operational Month 11-25 14 Months


Diamond Core drilling starts
Sample results available
Data interpretation and
modeling
Phase Phase 3: Operational
3
Diamond Core Drilling
Sample results available
Data interpretation modeling
14
General worker, Geologist A geological base map will be Geologist
and SHE Officer drilled over the prospecting
area. The boreholes will be
drilled to the base of Ecca. All
core will be logged.
Sampler The logged core will be taken Geologist
for testing to an independent
laboratory and results thereof
will be provided
Geologist and the Sampler The collected and observed Geologist
data is analyzed and the
information is computerized
Month 25-40 15 Months
General worker, Geologist A geological base map will be Geologist
and SHE Officer drilled over the prospecting
area. The boreholes will be
drilled to the base of Ecca. All
core will be logged.
Sampler The logged core will be taken Geologist
for testing to an independent
laboratory and results thereof
will be provided
Geologist and the Sampler The collected and observed Geologist
data is analyzed and the
information is computerized
 15

Pre-feasibility study - Geologist The geological, technical and Mine Economist

- Research and economic studies will be
Developer carried out to determine
- Mine Economist whether the deposit can be
developed or used to greatest
advantages.

Phase Phase 4: Post-closure Month 40-50 10 Months

4

Details on the Diamond core Geologist The results gathered from the Geologist
drilling operation will be viewed

Sample results available Sampler and the Geologist The logged core will be taken Geologist
for testing to an independent
laboratory and results thereof
will be provided

Geological modeling Geologist The earths crust Geologist

representation of the area of
interest will be computerized

Socio-Economic Impact Environmental Assessment The site will be studied and Environmental Assessment
assessment, Environmental Practitioner analyzed for the extent of Practitioner
Impact Assessment impacts caused by the project
for rehabilitation to
commence.

Phase Phase 5: Closure Month 50-60 10 Months

5

Feasibility study - Geologist An investigation will be Researcher and developer

carried out concerning the
- Research and proposed project to determine
 16

Developer its chances of operating

successfully and profitably.
- Mine Economist

Financial study Mine Economist and The required financial amount Mine Economist
Financial expert for the future plan project is
investigated and the
profitability thereof is
determined.

Market research Research and Developer Data of potential competition Researcher and Developer
and customers will be
collected and analyzed to
provide information needed
for profitability chances.

Mine planning - Mine Economist Considering the outcomes of Mine Economist

- Research and the study undertaken, mining
developer potential for future is planned.
- Financial Expert
- Environmental
Assessment
Practitioner

Financial studies and market Research and developer The challenges associated Financial Expert
susceptibility study Financial Expert with the market will studied
and the profit thereof.

Mining Right Application - Environmental Application for mine Mine Economist

Assessment permitting will be lodged
Practitioner based on the outcomes.
- Mine Economist
17
 18

The table below incorporates the information required in respect of Regulations 7(1)(f), 7(1)(h) and 7(1)(i):

Table 5.3

Phase Activity Skill(s) required Timefram Outcome Timeframe for What technical
e outcome expert will sign off
on the outcomes

Phase Phase 1: Construction 11 months

1

Collecting and compilation of Geologist Geologist

Data

Geophysical Survey Geologist The geophysical data for Geologist

spatial will be collected from
above the surface with the
use of sensing instruments.
This survey will consist of
geophysical traverse.

Boreholes target selection Geologist The boreholes positioning will Geologist

be established in relation to
the Geophysical Data
collected

Phase Phase 2: Operational Month 11-25 14 Months

2

Diamond Core drilling starts
Sample results available
Data interpretation and
modeling
Phase Phase 3: Operational
3
Diamond Core Drilling
Sample results available
Data interpretation modeling
Pre-feasibility study
19
General worker, Geologist A geological base map will be Geologist
and SHE Officer drilled over the prospecting
area. The boreholes will be
drilled to the base of Ecca. All
core will be logged.
Sampler The logged core will be taken Geologist
for testing to an independent
laboratory and results thereof
will be provided
Geologist and the Sampler The collected and observed Geologist
data is analyzed and the
information is computerized
Month 25-40 15 Months
General worker, Geologist A geological base map will be Geologist
and SHE Officer drilled over the prospecting
area. The boreholes will be
drilled to the base of Ecca. All
core will be logged.
Sampler The logged core will be taken Geologist
for testing to an independent
laboratory and results thereof
will be provided
Geologist and the Sampler The collected and observed Geologist
data is analyzed and the
information is computerized
- Geologist The geological, technical and Mine Economist
- Research and economic studies will be
 20

Developer carried out to determine

- Mine Economist whether the deposit can be
developed or used to greatest
advantages.

Phase Phase 4: Post-closure Month 40-50 10 Months

4

Details on the Diamond core Geologist The results gathered from the Geologist
drilling operation will be viewed

Sample results available Sampler and the Geologist The logged core will be taken Geologist
for testing to an independent
laboratory and results thereof
will be provided

Geological modeling Geologist The earths crust Geologist

representation of the area of
interest will be computerized

Socio-Economic Impact Environmental Assessment The site will be studied and Environmental Assessment
assessment, Environmental Practitioner analyzed for the extent of Practitioner
Impact Assessment impacts caused by the project
for rehabilitation to
commence.

Phase Phase 5: Closure Month 50-60 10 Months

5

Feasibility study - Geologist An investigation will be Researcher and developer

carried out concerning the
- Research and proposed project to determine
Developer its chances of operating
 21

- Mine Economist successfully and profitably.

Financial study Mine Economist and The required financial amount Mine Economist
Financial expert for the future plan project is
investigated and the
profitability thereof is
determined.

Market research Research and Developer Data of potential competition Researcher and Developer
and customers will be
collected and analyzed to
provide information needed
for profitability chances.

Mine planning - Mine Economist Considering the outcomes of Mine Economist

- Research and the study undertaken, mining
developer potential for future is planned.
- Financial Expert
- Environmental
Assessment
Practitioner

Financial studies and market Research and developer The challenges associated Financial Expert
susceptibility study Financial Expert with the market will studied
and the profit thereof.

Mining Right Application - Environmental Application for mine Mine Economist

Assessment permitting will be lodged
Practitioner based on the outcomes.
- Mine Economist
 22

6 REGULATION 7(1)(g): A DESCRIPTION OF THE PROSPECTING METHOD OR

METHODS TO BE IMPLEMENTED

The mineral resources and distribution will be determined by means of non- invasive and invasive prospecting methods.

(i) DESCRIPTION OF PLANNED NON-INVASIVE ACTIVITIES:

Collecting and compilation of Data

The desktop study of the area will take place and data compiled will be used in the other phases.

Data interpretation and modeling

Data collected and compiled will be interpreted and modeled to determine the site on the area of interest
which will has high quality of rock bearing the commodity of interest.

Boreholes target selection

Based on the data compiled boreholes area will be marked for drilling.

(ii) DESCRIPTION OF PLANNED INVASIVE ACTIVITIES:

Prospecting work to be performed

Diamond drilling operations will be carried out for the purpose of retrieving core samples and laboratory analyses
will be performed on the seam to establish the quality of the minerals. No pits, trenches or bulk sampling will be
done. Percussion (open-hole) boreholes may be drilled to gather additional geological information between other
boreholes using geophysical survey methods. For this purpose, down-hole geophysical instruments and methods
may be used to gather the thickness and quality information from the seam and overlying strata.

Diamond drilling

Diamond drilling operations will be carried out for the purpose of retrieving core samples, and this will be done for
six months in the second and third.

Laboratory analysis will be performed to establish the quality of material. Few boreholes are planned to be drilled
initially and if yield positive results more boreholes will be drilled, this sample results will be obtained within three
month of each year from the second to the fourth year

Percussion drilling

The drill rigs are truck-mounted and equipped with diesel driven engines to provide power to the drill. A truck fitted
with a water tank is used to provide the water supply for the drilling process. The drill site consists of a drill rig,
water pump, caravan and portable chemical toilet. Rock fragments are blown out the top of the hole and are
collected at 1m depth intervals and arranged on the ground to enable continuous detailed lithological descriptions
of the stratigraphic horizons to be made. A single truck is used which contains all equipment including a mobile
generator.

Geophysical survey work to be done

A down-hole geophysical method using wire line geophysical instruments may be used to gather geological and
minerals quality information in percussion boreholes. The seam thickness distribution, lateral extent and quality
will be determined through detailed borehole measurements and laboratory core analysis. Detailed reserve and
quantity determinations will then be possible through computer based modeling and qualitative and quantitative
calculations.
 23

(iii) DESCRIPTION OF PRE-/FEASIBILITY STUDIES

Geological modeling

creating computerized representations of portions of the Earth's crust based on geophysical and geological
observations made on and below the Earth surface. Geomodel is the numerical equivalent of a three-dimensional
geological map complemented by a description of physical quantities in the domain of interest. Geomodeling is
related to the concept of Shared Earth Model which is a pluridisciplinary, interoperable and updatable knowledge
base about the subsurface.

Socio-Economic Impact assessment

Examines how a proposed development will change the lives of current and future residents of a community. The
indicators used to measure the potential socio-economic impacts of a development include the following: Changes
in community demographics; Results of retail/service and housing market analyses; Demand for public
services; Changes in employment and income levels; and Changes in the aesthetic quality of the community.

Environmental Impact Assessment

An assessment of the possible positive or negative impact that a proposed project may have on the environment,
together consisting of the natural, social and economic aspects.

The purpose of the assessment is to ensure that decision makers consider the ensuing environmental impacts
when deciding whether to proceed with a project. The International Association for Impact Assessment (IAIA)
defines an environmental impact assessment as "the process of identifying, predicting, evaluating and mitigating
the biophysical, social, and other relevant effects of development proposals prior to major decisions being taken
and commitments made." EIAs are unique in that they do not require adherence to a predetermined
environmental outcome, but rather they require decision makers to account for environmental values in their
decisions and to justify those decisions in light of detailed environmental studies and public comments on the
potential environmental impacts of the proposal

Feasibility study

Aims to objectively and rationally uncover the strengths and weaknesses of the existing business or proposed
venture, opportunities and threats as presented by the environment, the resources required to carry through, and
ultimately the prospects for success. In its simplest term, the two criteria to judge feasibility are cost required and
value to be attained. Provision of a historical background of the business or project, accounting statements,
details of the operations and management, marketing research and policies, financial data, legal requirements
and tax obligations. Generally, feasibility studies precede technical development and project implementation
 24

Commitment to provide addendums in respect of

additional prospecting activities

I herewith commit to provide the Department of Mineral Resources with an

addendum in respect of both the EM Plan and Prospecting Work Programme
regarding any future in-fill prospecting required but not described above, prior to
undertaking such activities. The addendum will cover all the Regulations as per
the Prospecting Work Programme.

I agree that the addendums will provide for similar activities only and if the scope
changes I would be required to apply in terms of Section 102 of the MPRDA for
an amendment of the Prospecting Work Programme

Mark with X

ACCEPT X

7 REGULATION 7(1)(j)(i):DETAILS WITH DOCUMENTARY PROOF OF THE

APPLICANTS TECHNICAL ABILITY OR ACCESS THERETO TO CONDUCT THE
PROPOSED PROSPECTING OPERATION

7.1 Competencies to be employed in terms of the Mine Health and Safety

Act

COMPETENCIES TO BE EMPLOYED (List the legal appointments that will be made in

terms of the Mine Health and Safety Act, appropriate for the type of operation)
Geologist
SHE Officer
Analytical Expert/Sampler
Mine Economist
Market Researcher/Research and Developer
Environmental Assessment Practitioner

I herewith confirm that I, in Table 9.1 have budgeted and financially provided
for the required skills listed above.

CONFIRMED (Mark with an X) x

 25

7.2 List of Appropriate equipment at your disposal (If Applicable)

Table D: Appropriate Equipment Available

The Drill rig

Water Tanker

Fuel Storage tank

Compactible chemical toilets

7.2 Technical skills provided Free of Charge

Technical ability and provide diamond and percussion drilling will be contracted from reputable consulting company
with the ability to optimally explore for minerals applied for in this area, while an independent laboratory will be
appointed to do the analytical work.

7.2.1 Information (CVs) in respect of skills already acquired (append)

7.2.2 Copy of the relevant contractual agreements between the service provider and the
applicant relative to the duration of the planned prospecting period, where
applicable.(append)
7.2.3 ALL other evidence of Technical Ability (append)

NB: ATTACCHED AS AN APPENDIX

8 REGULATION 7(1)(j)(ii):DETAILS WITH DOCUMENTARY PROOF OF A

BUDGET AND DOCUMENTARY PROOF OF THE APPLICANTS FINANCIAL
ABILITY OR ACCESS THERETO
A budget of 4 million for exploration activities has been set aside and will be provided for by Moepathutsi Property
Investments (Pty) Ltd. The budget will be reviewed annually if deemed necessary and based on the outcome of
prospecting activities, this budget can be increased.

NB: ATTACCHED AS AN APPENDIX

 26

9 REGULATION 7(1)(k) A COST ESTIMATE OF THE EXPENDITURE TO BE

INCURRED FOR EACH PHASE OF THE PROPOSED PROSPECTING
OPERATION (remember to also include prospecting fees)

Table 9.1

Year 1 Year 2 Year 3 Year 3 Year 5

Activity Expenditure Expenditure Expenditure Expenditure Expenditure
Phase 1(11
months)
Prospecting Fee R 1 504 .00
collecting and R 50 000 .00
compilation of data
Geophysical survey R 260 000 .00
Boreholes target R 35 000 .00
selection
Phase 2 (14
months)
Prospecting Fee R 2 256 .00
Diamond core driling R 640 000 .00
Sample results R 24 000 .00
Data interpretation R 100 000 .00
and modelling
Pre-feasibility study R 100 000 .00
Phase 3: (15
months)

Prospecting Fee R 3 008 .00

Details Diamond R 640 000 .00
Core Drilling
Sample results R 24 000 .00
available

Data interpretation R 100 000 .00

modeling
Pre-feasibility study R 100 000 .00
Phase 4 (10
months)
Prospecting Fee R 3 760 .00
Diamond core R 640 000 .00
drilling details
Sampling work R 24 000 .00
Geological modeling R 100 000 .00
Socio-Economic R 10 000 .00
Impact assessment
Environmental R 40 000 .00
Impact Assessment/
Rehabilitation
Phase 5 (10
months)
Prospecting fee R 4 512 .00
Feasibility study R 200 000 .00
 27

Financial studies R 28 000 .00

Marketing research R20 000 .00
Mine planning R 50 000. 00
Financial studies R10 000 .00
and market
susceptibility study
Annual Total R 346 504 .00 R 866 256 .00 R 867 008 .00 R 817 760 .00 R 312 512 .00
Total R3 210 040 .00

NOTE! If any person (including the applicant) provides services in any job or skills
category at a reduced rate or free of charge, then such persons Curriculum Vitae
(CV) must be attached as documentary proof of the technical ability available to the
applicant.
 28

10 FINANCIAL ABILITY TO GIVE EFFECT TO THE WORK PROGRAMME

10.1 The amount required to finance the Work Programme.

R 3 210 040 .00

10.2 Detail regarding the financing arrangements

A budget of 4 million for exploration activities has been set aside and will be provided for
by Moepathutsi Property Investments (Pty) Ltd. The budget will be reviewed annually if
deemed necessary and based on the outcome of prospecting activities, this budget can
be increased.

10.3 Confirmation of supporting evidence appended

(Attach evidence of available funding and or financing arrangements such as balance

sheets, agreements with financial institutions, underwriting agreements, etc. and
specifically confirm in this regard what documentation has been attached as
appendices).

11 Confirmation of the availability of funds to implement the proposed project.

ATTACCHED AS AN APPENDIX 3

12 I herewith confirm that I have budgeted and financially provided for the total budget
as identified in Regulation 7(1)(k).

Confirmed (Mark with an X) X

 29

13 REGULATION 7(1) (m): UNDERTAKING, SIGNED BY THE APPLICANT, TO

ADHERE TO THE PROPOSALS AS SET OUT IN THE PROSPECTING WORK
PROGRAMME

Table: 13.1

Herewith I, the person whose name and identity number is stated below,
confirm that I am the Applicant or the person authorised to act as
representative of the Applicant in terms of the resolution submitted with the
application, and undertake to implement this prospecting work programme
and adhere to the proposals set out herein.

Vhonani Mufamadi

Full Names and Surname

6902085745082

Identity Number

END
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APPENDIX 1: Technical Ability (CVs)

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APPENDIX 2: Financial Ability

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APPENDIX 3: Availability of funds

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