Executive Summary
Executive Summary
The Modderfontein Gold Project, owned by Giza Minerals Pty Ltd, a 100% Black-owned company, is located in Benoni, East Rand, Johannesburg. The mining area is situated in Modderfontein 76IR farm.
Giza Minerals has successfully secured a Mining Right for the entire operation through the Department of Mineral Resources (DMR). The company has initiated on-site establishment, including the erection of essential infrastructure such as a Gold processing plant through the shareholders injection.
Infrastructure
The project is comprised of an underground conventional mining operation that is accessed through the black reef decline. The Ore is processed through a CIL Plant and the residue is deposited on an existing slimes dams. There are mine offices, workshops and elution plant on site.
The Samrec compliant Mineral Resource statement is tabulated below based on a cut-off of 1.5 g/t considering historical modifying factors.
Summary: Underground Resources and Surface Dump Targets
|
Classification Gold |
Tonnage Mt |
Grade g/t |
Channel width cm |
Content cmg/t |
Gold (Au) Metal Au Kgs |
Gold (Au) Metal Au Moz |
|---|---|---|---|---|---|---|
|
Underground |
||||||
|
Total Indicated |
1.017 |
2.465 |
245 |
603 |
2 506 |
0.081 |
|
Total Inferred |
1.199 |
2.44 |
160.88 |
393 |
2 927 |
0.094 |
|
Total Underground |
2.22 |
2.45 |
|
489 |
5433.01 |
0.17 |
|
Surface Dumps |
Source for Tonnes, Grade, Ounces: DRD Gold file (2010) for Modder Deep Dumps |
|||||
|
5L25 (slime) |
1.472 |
0.470 |
– |
– |
692 |
0.022 |
|
5A11 (sand) |
0.503 |
0.520 |
– |
– |
262 |
0.008 |
|
Total Surface |
1.975 |
0.483 |
– |
– |
953 |
0.030 |
|
*Note: |
Source for Tonnes, Grade, Ounces: DRD Gold file (2010) for Modder Deep Dumps |
|||||
Valuation based on the cost approach place a value on the Mineral Resource between R15 million and R45 million. The view of the undersigned is a value of R33 million is appropriate. The Mineral Reserve in this report is designated as “‘reserve” to show its non-compliance to the SAMREC and SAMVAL codes. The “reserve” is not based on a Feasibility Study (FS) and includes 100% Inferred Resources. The motivation for the ‘reserve” is to emphasise the need of a FS.
Underground “Reserves”
| Resource to “Reserve” |
Tonnes 000’s |
Grade g/t |
Gold (Au) Metal Au Kgs |
Million Ounces |
|---|---|---|---|---|
|
In Situ |
2 216 |
2.45 |
5 433 |
0.175 |
|
In Situ plus Dilution |
2 327 |
2.21 |
5 154 |
0.166 |
|
Recovered 72.6% |
2 327 |
1.7 |
3 943 |
0.127 |
The Life of Mine (LOM) shows a 7 year life for a steady state “Reserve” at 50 000 tpm and a 14 year life at 25 000 tpm. The LOM illustrates the 50 000tpm scenario as being profitable at an NPV discount rate of 20% this being a further motivation for feasibility Study to declare a SAMREC compliant Reserve.