250513 competent persons report

8/10/2019 250513 Competent Persons Report

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Suite 5, Coldstream Office Park,

Cnr Hendrik Potgieter & Van Staden

Little Falls

+27 11 958 2899+27 11 958 2105

Directors: NJ Odendaal, D Van Heerden, CJ Muller

Registration No. 2004/029587/07

Suite 5, Coldstream Office Park

2 Coldstream Street

Little Falls, Roodepoort, South Africa

Tel: +27 11 958 2899 ! Fax: +27 11 958 2105

www.minxcon.co.za

Update of the Stonewall Resources

as at May 2013,

Pilgrims Rest area, South Africa

Short Report

Effective Date: 25 May 2013

Issue Date: 25 June 2013

Minxcon Reference: M2013-030a

Authors:Paul Obermeyer

Mineral Resource Manager

BSc Hons. Geology


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Update of Stonewall Resources as at May 2013 Preliminary Report

Prepared by Minxcon (Pty) Ltd

ii

DISCLAIMER AND RISKS

This Report was prepared by Minxcon (Pty) Ltd (Minxcon). In the preparation of the Report, Minxcon has

utilised information relating to operational methods and expectations provided to them by various

sources. Where possible, Minxcon has verified this information from independent sources after making due

enquiry of all material issues that are required in order to comply with the requirements of the JORC

Code. Minxcon and its directors accept no liability for any losses arising from reliance upon the

information presented in this Report.

OPERATIONAL RISKS

The business of mining and mineral exploration, development and production by their nature contain

significant operational risks. The business depends upon, amongst other things, successful prospecting

programmes and competent management. Profitability and asset values can be affected by unforeseenchanges in operating circumstances and technical issues.

POLITICAL AND ECONOMIC RISK

Factors such as political and industrial disruption, currency fluctuation and interest rates could have an

impact on future operations, and potential revenue streams can also be affected by these factors. The

majority of these factors are, and will be, beyond the control of any operating entity.

COPYRIGHTCopyright in all documents, drawings and records, whether manually or electronically produced, which

form part of the submission and any subsequent report or project document shall vest in Minxcon. None of

the documents, drawings or records may be used or applied in any manner, nor may they be reproduced or

transmitted in any form or by any means whatsoever for or to any other person, without prior written

consent of Minxcon, other than the filing of the Report with the Alternative Investment Market Securities

Regulators or an exchange in accordance with London securities laws.


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1. INTRODUCTION

Minxcon Consulting (Pty) Ltd (Minxcon) was requested by the directors of Stonewall Mining

(Stonewall) to compile an updated approximation of the status of the Mineral Resources for TGME, as at

May 2013, with the specific inclusion of the Dukes Hill Mine and Beta Main Rock Dump. The Mineral

Resource Statement dated October 2011, as reflected in this document, represents the last official

declared Mineral Resources for Stonewall.

The Mineral Resource Statement as at May 2013 is an approximation of the current status of the Mineral

Resources. The May 2013 statement takes into account production figures as reported by the TGME plant,

in order to reflect Mineral Resource depletion. These figures are thus directly related to the plant

processed tons as provided by Stonewall. The May 2013 Resource Statement also includes, as requested,

the additional Mineral Resources for the Dukes Hill Mine and the Beta Main Rock Dump.

2. PROPERTY LOCATIONS

Figure 1: General Location of Stonewall Projects and Operations


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3. DECLARED MINERAL RESOURCE STATEMENT AS AT OCTOBER 2011

All Mineral Resources, as at October 2011, were reported in compliance with the specifications embodied

in the JORC Code. Mineral Resources have been reported separately, as Measured, Indicated and Inferred.

Table 1: The Combined Mineral Resources for Stonewall as at 31 October 2011

Tonnage Gold Grade Gold ContentResource

Category

Type of

Operation Mt g/t Kg '000 oz.UG 0.170 4.77 811 26.1

Surface 0.151 1.59 240 7.7Measured

Tailings 2.294 0.77 1,770 56.9

Total Measured 2.615 1.08 2,821 90.7

UG 2.755 5.87 16,184 520.2

Surface 3.173 0.88 2,811 90.4Indicated

Tailings 0.012 0.58 7 0.2

Total Indicated 5.940 3.20 19,002 610.8

UG 14.535 3.91 56,832 1,827.3

Surface 0.801 0.80 642 20.7

Tailings 2.451 3.07 7,516 241.6

Rock Dump 0.121 1.59 192 6.2

Inferred

Plant Floats 0.041 0.54 22 0.7Total Inferred 17.949 3.63 65,204 2,096.5

Grand Total 26.504 3.28 87,027 2,798.0Notes:

1. The tonnages and grades in Table 1 are quoted as in situtonnes.2. Mineral Resources declared are for the entire project and have not been divided into attributable portions.3. The cut-offs and densities are applied to the attributable portions in the tables that follow.

Table 2: Mineral Resources for the Stonewall Underground Operations as at 31 October 2011

Density TonnageGold

GradeGold Content

Cut-OffGrade

MineralResource

Category

UG Mine Reef

t/m3 Mt g/t Kg '000 oz. cm.g/t

Measured Frankfort Bevetts 3.60 0.170 4.77 811 26.1 133

Total Measured 3.60 0.170 4.77 811 26.1 133Frankfort Bevetts 3.60 0.282 5.04 1,421 45.7 133

DH/Clewer Rho 3.30 0.696 3.39 2,359 75.8 133

Beta Beta 3.60 0.443 4.86 2,153 69.2 133

Rietfontein Rietfontein 3.00 1.244 7.92 9,852 316.7 133

Indicated

Olifantsgeraamte Olifantsgeraamte 3.60 0.090 4.43 399 12.8 133

Total Indicated 3.25 2.755 5.87 16,184 520.2 133

Total Measured and Indicated 3.27 2.925 5.81 16,995 546.3 133

Density TonnageGold

GradeGold Content

Cut-OffGrade

MineralResourceCategory

UG Mine Reef

t/m3 Mt g/t Kg '000 oz. Mt

Frankfort Bevetts 3.60 0.468 5.30 2,480 79.7 133

DH/Clewer Rho 3.30 0.046 2.09 96 3.1 133

Beta Beta 3.60 4.624 3.11 14,381 462.4 133Theta Theta lower 3.80 0.104 9.78 1,017 32.7 133

Morgenzon Top Rho 3.80 0.053 5.51 292 9.4 133

Vaalhoek Vaalhoek 3.80 1.346 5.74 7,726 248.4 133

Ponieskrantz Portuguese 3.80 0.549 2.77 1,521 48.9 133


Olifantsgeraamte Olifantsgeraamte 3.60 0.421 4.59 1,932 62.1 133

Glynns Compound Hill 3.80 3.840 3.84 14,746 474.1 133

Malieveld Glynns 3.80 1.709 3.51 5,999 192.9 133

Nestor Sandstone 3.80 0.443 2.37 1,050 33.8 133

Inferred

Frankfort Theta 3.60 0.275 3.06 842 27.1 133

Total Inferred 3.68 14.535 3.91 56,832 1,827.3 133

Table 3: Mineral Resources for the Stonewall Open Pit Operations as at 31 October 2011

Mineral

Resource

Surface

Operation

Operation

TypeDensity Tonnage

Gold

GradeGold Content

Cut-Off

Grade


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Category t/m3 Mt g/t Kg '000 oz. g/t

Measured Hermansburg Open Pit 2.30 0.151 1.59 240 7.7 0.20

Total Measured 2.30 0.151 1.59 240 7.7 0.20

Hermansburg 2.30 0.752 1.20 902 29.0 0.20

DG1 2.30 0.389 1.72 669 21.5 0.20Indicated

DG2

Open Pit

2.30 2.032 0.61 1 240 39.9 0.20

Total Indicated 2.30 3.173 0.88 2 811 90.4 0.20

Total Measured and Indicated 2.30 3.324 0.92 3 051 98.1 0.20

Density TonnageGold

GradeGold Content

Cut-OffGrade

MineralResource

Category

SurfaceOperation

OperationType

t/m3 Mt g/t Kg '000 oz. g/t

Hermansburg 2.30 0.244 0.41 100 3.2 0.20

DG1 2.30 0.286 1.42 406 13.1 0.20Inferred

DG5

Open Pit

2.30 0.271 0.50 136 4.4 0.20

Total Inferred 2.30 0.801 0.80 642 20.7 0.20

Table 4: Mineral Resources for the Stonewall Tailings Dams as at 31 October 2011

Density TonnageGold

GradeGold Content

Cut-OffGrade


SurfaceOperation

Reef


Glynns Lydenburg Tailings 1.40 1.212 0.80 970 31.2 0.00Blyde 1 Tailings 1.40 0.447 0.72 322 10.4 0.00

Blyde 2 Tailings 1.40 0.220 0.61 134 4.3 0.00

Blyde 3 Tailings 1.40 0.274 0.88 241 7.7 0.00

Measured

Blyde 4 Tailings 1.40 0.141 0.73 103 3.3 0.00

Total Measured 1.40 2.294 0.77 1,770 56.9 0.00

Indicated Blyde 5 Tailings 1.40 0.012 0.58 7 0.2 0.00

Total Indicated 1.40 0.012 0.58 7 0.2 0.00

Total Measured and Indicated 1.40 2.306 0.77 1,777 57.1 0.00

Density TonnageGold

GradeGold Content

Cut-OffGrade


SurfaceOperation

Reef


Blyde 3a Tailings 1.40 0.023 0.57 13 0.4 0.00Inferred TGME Plant Tailings 1.40 2.428 3.09 7,503 241.2 0.00

Total Inferred 1.40 2.451 3.07 7,516 241.6 0.00

Table 5: Mineral Resources for the Stonewall Rock Dumps as at 31 October 2011

Density TonnageGold

GradeGold Content

Cut-OffGrade


SurfaceOperation

Reef


Inferred Vaalhoek Rock Dump 1.70 0.121 1.59 192 6.2 0.20

Total Inferred 1.70 0.121 1.59 192 6.2 0.20

Density TonnageGold

GradeGold Content

Cut-OffGrade


SurfaceOperation

Reef


Inferred Plant FloatsProcessedMaterial

1.60 0.041 0.54 22 0.7 0.00

Total Inferred 1.60 0.041 0.54 22 0.7 0.00Notes:

1. Mineral Resources are inclusive of the Ore Reserves.2. The Mineral Resources are declared at cut-offs shown in the tables above.3. Conversion: 1kg = 32.15076 oz.4. Beta Mine calculated over 90 cm stoping width.5. Frankfort Mine calculated over minimum achievable stoping width of 90 cm.6. A 5% factor was applied to the Vaalhoek tonnes to account for the sorting operation.7. A 70% mass pull is expected at TGME Plant Floats prior to treatment with XRT.

The Inferred Mineral Resources have a large degree of uncertainty as to their existence and whether they

can be mined economically. It cannot be assumed that all or any part of the Inferred Resource will be

upgraded to a higher confidence category. The current Mineral Resource model is based on availablesampling data collected over the history of the Project area. The Mineral Resource estimation was carried

out by Mr C Muller of Minxcon and Ms L Mavengere (formerly of Minxcon) who are both JORC Competent


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Persons with professional registration with SACNASP (SA). The grade models were verified by visual and

statistical methods and are deemed to be globally unbiased. The blocks were classified into Measured,

Indicated and Inferred Mineral Resource categories using the following and not limited thereto: sampling

QAQC, geological confidence, distance to sample (variogram range) and kriging efficiency. Only the

Mineral Resources lying within the legal boundaries are reported.

The business of mining and mineral exploration, development and production by their nature contain

significant operational risks. The business depends upon, amongst other things, successful prospecting

programmes and competent management. Profitability and asset values can be affected by unforeseen

changes in operating circumstances and technical issues. Factors such as political and industrial

disruption, currency fluctuation and interest rates could have an impact on future operations, and

potential revenue streams can also be affected by these factors. The majority of these factors are, and

will be, beyond the control of any operating entity.


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4. DECLARED MINERAL RESOURCE STATEMENT AS AT MAY 2013

All Mineral Resources, as at May 2013, were reported in compliance with the specifications embodied in

the JORC Code. Mineral Resources have been reported separately, as Measured, Indicated and Inferred.

The May 2013 statement takes into account production figures as reported by the TGME plant, in order to

reflect Mineral Resource depletion. These figures are thus directly related to the plant-processed tonnesas provided by Stonewall. The Mineral Resource Statement as at May 2013, includes additional Mineral

Resources for the Dukes Hill Mine and the Beta Main Rock Dump. Table 6 summarises the Mineral

Resources for Stonewall as at May 2013 and also includes the reconciliation to the Mineral Resources as at

31 October 2011.

Table 6: The Combined Mineral Resources for Stonewall as at May 2013

Tonnage Gold Grade Gold ContentChange in

Tonnage

Change in

GoldContent

(Moz)

Mineral

ResourceCategory

Type of

Operation

Mt g/t Kg '000 oz. % %

UG 0.170 4.77 811 26.1 0 0Surface 0.151 1.59 240 7.7 0 0Measured

Tailings 2.294 0.77 1,770 56.9 0 0

Total Measured1. 2.615

1.08 2,821 90.7 0 0

UG 2.755 5.87 16,184 520.2 0 0

Surface 3.173 0.88 2,811 90.4 0 0Indicated

Tailings 0.012 0.58 7 0.2 0 0

Total Indicated 5.940 3.20 19,002 610.8 0 0

UG 14.652 3.99 58,478 1,880.2 0.8 2.9

Surface 0.801 0.8 642 20.7 0 0

Tailings 2.128 3.06 6,517 209.5 -13.2 -13.2

Rock Dump 0.121 1.59 192 6.2 0 0

Plant Floats 0.041 0.54 22 0.7 0 0

Inferred

Beta Main 0.154 0.81 124 4.0 100 100

Total Inferred 17.897 3.69 65,975 2,121.3 -0.3 1.2

Grand Total 26.452 3.32 87,798 2,822.8 0.2 0.9Notes:

1. The tonnages and grades in Table 6 are quoted as in situtonnes.2. Mineral Resources declared are for the entire project and have not been divided into attributable portions.3. The cut-offs are applied to the attributable portions in the tables that follow.

Table 7: Mineral Resources for the Stonewall Underground Operations as at May 2013

Density TonnageGold

GradeGold Content

Cut-Off

GradeMineral

ResourceCategory

UG Mine Reef


Measured Frankfort Bevetts 3.6 0.170 4.77 811 26.1 133

Total Measured 3.6 0.170 4.77 811 26.1 133


DH/Clewer Rho 3.3 0.696 3.39 2,359 75.8 133

Beta Beta 3.6 0.443 4.86 2,153 69.2 133


Indicated

Olifantsgeraamte Olifantsgeraamte 3.6 0.090 4.43 399 12.8 133

Total Indicated 3.3 2.755 5.87 16,184 520.2 133


Density TonnageGold

GradeGold Content

Cut-OffGrade


UG Mine Reef



DH/Clewer Rho 3.3 0.046 2.09 96 3.1 133

Beta Beta 3.6 4.624 3.11 14,381 462.4 133

Theta Theta lower 3.8 0.104 9.78 1,017 32.7 133

Morgenzon Top Rho 3.8 0.053 5.51 292 9.4 133

Vaalhoek Vaalhoek 3.8 1.346 5.74 7,726 248.4 133

Inferred

Ponieskrantz Portuguese 3.8 0.549 2.77 1,521 48.9 133


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Olifantsgeraamte Olifantsgeraamte 3.6 0.421 4.59 1,932 62.1 133

Glynns Compound Hill 3.8 3.84 3.84 14,746 474.1 133

Malieveld Glynns 3.8 1.709 3.51 5,999 192.9 133

Nestor Sandstone 3.8 0.443 2.37 1,050 33.8 133

Frankfort Theta 3.6 0.268 3.06 820 26.4 133

Dukes Hill Theta 3.0 0.124 13.45 1,668 53.6 133

Total Inferred 3.7 14.652 3.99 58,478 1,880.2 133

Table 8: Mineral Resources for the Stonewall Open Pit Operations as at May 2013

Density TonnageGold

GradeGold Content

Cut-Off

Grade


Surface Operation Operation Type


Measured Hermansburg Open Pit 2.3 0.151 1.59 240 7.7 0.2

Total Measured 2.3 0.151 1.59 240 7.7 0.2

Hermansburg 2.3 0.752 1.20 902 29.0 0.2

DG1 2.3 0.389 1.72 669 21.5 0.2Indicated

DG2

Open Pit

2.3 2.032 0.61 1,240 39.9 0.2

Total Indicated 2.3 3.173 0.88 2,811 90.4 0.2

Total Measured and Indicated 2.3 3.324 0.92 3,051 98.1 0.2

Density TonnageGold

GradeGold Content

Cut-Off

Grade


Surface Operation Operation Type


Hermansburg 2.3 0.244 0.41 100 3.2 0.2

DG1 2.3 0.286 1.42 406 13.1 0.2Inferred

DG5

Open Pit

2.3 0.271 0.50 136 4.4 0.2

Total Inferred 2.3 0.801 0.80 642 20.7 0.2

Table 9: Mineral Resources for the Stonewall Tailings Dams as at May 2013

Density TonnageGold

GradeGold Content

Cut-Off

Grade


Surface Operation Reef


Glynns Lydenburg Tailings 1.4 1.212 0.80 970 31.2 0Blyde 1 Tailings 1.4 0.447 0.72 322 10.4 0

Blyde 2 Tailings 1.4 0.220 0.61 134 4.3 0

Blyde 3 Tailings 1.4 0.274 0.88 241 7.7 0

Measured

Blyde 4 Tailings 1.4 0.141 0.73 103 3.3 0

Total Measured 1.4 2.294 0.77 1,770 56.9 0

Indicated Blyde 5 Tailings 1.4 0.012 0.58 7 0.2 0

Total Indicated 1.4 0.012 0.58 7 0.2 0


Density TonnageGold

GradeGold Content

Cut-Off

Grade




Blyde 3a Tailings 1.4 0.023 0.57 13 0.4 0Inferred

TGME Plant Tailings 1.4 2.105 3.09 6,504 209.1 0Total Inferred 1.4 2.128 3.06 6,517 209.5 0

Table 10: Mineral Resources for the Stonewall Rock Dumps as at May 2013

Density TonnageGold

GradeGold Content

Cut-OffGrade




Inferred Vaalhoek Rock Dump 1.7 0.121 1.59 192 6.2 0.2

Total Inferred 1.7 0.121 1.59 192 6.2 0.2

Density TonnageGold

GradeGold Content

Cut-OffGrade




Inferred Plant Floats Processed Material 1.6 0.041 0.54 22 0.7 0

Total Inferred 1.6 0.041 0.54 22 0.7 0

Mineral Surface Operation Reef Density TonnageGold

GradeGold Content

Cut-OffGrade


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ResourceCategory


Inferred Beta MainRock Dump


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5. CONCLUSIONS

Due to the May 2013 depletions applied to the existing Stonewall Operations, as well as the

inclusion of additional Resources, the Mineral Resources of Stonewall have decreased by 0.2% in

tonnage and increased by 0.9% in gold content.

All changes have taken place in the Inferred Mineral Resource Category.

The underground Inferred Mineral Resources have increased by a net 0.8% in tonnage, coincidentwith a 2.9% net gain in gold content. This was due to only 6545 tonnes being mined at Frankfort at a

relatively low grade, as well as the addition of the high grade Dukes Hill Inferred Mineral Resources

to the underground Mineral Resource.

No changes took place in the open pit operation.

The tailings Inferred Mineral Resource decreased by 13.2% in tonnage and 13.2% in gold content due

to the significant tonnages mined at the TGME Plant Tailings facility.

The Inferred Mineral Resources attributable to rock dumps has increased by a net 95.1% in tonnage

and a net 58% increase in gold content due to the inclusion of the Beta Main Rock Dump into the

Inferred Mineral Resources.

The Inferred Mineral Resources for Stonewall has experienced a net 0.3% decrease in tonnage,

accompanied by a net 1.2% increase in gold content.


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CJ MULLER

BSc (Hons.) (Geol.), Pr. Sci. Nat., MGSSA

DIRECTOR

Appendix 1: Certificate of Competent Person

CERTIFICATE of COMPETENT PERSON - CJ Muller

I, Charles Muller, do hereby certify that:

1. I am a Director of Minxcon Consulting (Pty) LtdSuite 5 Coldstream Office Park,

2 Coldstream Street,

Little Falls, Roodepoort, South Africa

2. I graduated with a BSc. (Geol.) degree from the Rand Afrikaans University in 1988. In addition, I have obtained a

BSc. Hons. (Geol.) from the Rand Afrikaans University in 1994 and attended courses in geostatistics and advanced

Datamine modelling and geostatistical evaluation through the University of the Witwatersrand.

3. I have worked as a Geoscientist for more than 25 years. As the former Chief Geologist for Goldfields South Africa,

my specialisation lies within Mineral Resource modelling and management. I have completed a number of Mineral

Resource estimates and reports pertaining to gold, using approaches described by the Australasian Code for

Reporting of Exploration Results, Minerals Resources and Ore Reserves (JORC).

4. I am affiliated with the following professional associations:

Class Professional SocietyYear of

Registration

Member Geostatistical Association of Southern Africa 2008

MemberSouth African Council for Natural Scientific Professions (Pr. Sci. Nat. Reg. No.

400201/04)2004

5. I am responsible for the preparation of this Technical Report with the effective date, 25 May 2013.

6. I have read the definition of Competent Person set out the Australasian Code for Reporting of Exploration

Results, Minerals Resources and Ore Reserves (JORC), and certify that by reason of my education, affiliation with

professional associations and past relevant work experience, I fulfil the requirements to be a Competent Person

for the purposes of this Competent Persons Report.

7. I have read the JORC Code and this Report has been prepared in compliance with it.

8. As of the effective date, to the best of my knowledge, information and belief, the Report contains all scientificand technical information required to be disclosed to make the Report not misleading.

9. The facts presented in the Report are, to the best of my knowledge, correct.

10.The analyses and conclusions presented in the Report are limited only by the reported forecasts and conditions.

11.I have no present or prospective interest in the subject property or asset and have no bias with respect to the

assets that are the subject of the Report, or to the parties involved with the assignment.

12.I have read this technical Report and NI43-101 Standards of Disclosure for Mineral Projects and this Report has

been prepared in compliance with NI43-101.

13.My compensation, employment or contractual relationship with the Commissioning Entity is not contingent on any

aspect of the Report.

14.I did not make a personal inspection of the property, as it was done on my behalf.

15.I have had no prior involvement with the property that is the subject of this Report.

Yours faithfully,

250513 competent persons report

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