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exhibit961p1i1 exhibit961p1i0
 
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
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
2
TABLE OF CONTENTS
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
3
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
4
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
5
List of Figures
List of Tables
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
6
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
7
List of Graphs
List of Photographs
List of Appendices
exhibit961p2i0 exhibit961p8i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
8
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
9
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
exhibit961p2i0 exhibit961p10i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
10
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
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
11
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.
exhibit961p2i0 exhibit961p12i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
12
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
exhibit961p2i0 exhibit961p13i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
13
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
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
14
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.
exhibit961p2i0 exhibit961p15i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
15
Figure E: Property Geology
Source:
 
Sound Mining, 2022
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
16
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
17
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).
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
18
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).
exhibit961p2i0 exhibit961p19i1
 
 
 
 
exhibit961p19i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
19
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“.
exhibit961p2i0 exhibit961p20i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
20
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.
exhibit961p2i0 exhibit961p21i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
21
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.
exhibit961p2i0 exhibit961p22i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
22
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
23
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.
exhibit961p2i0 exhibit961p24i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
24
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
25
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%).
exhibit961p2i0 exhibit961p26i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
26
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p27i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
27
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p28i1 exhibit961p28i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
28
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
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
29
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.
exhibit961p2i0 exhibit961p30i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
30
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
31
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
32
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
33
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.
exhibit961p2i0 exhibit961p34i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
34
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 (
).
exhibit961p2i0 exhibit961p35i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
35
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
36
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.
exhibit961p2i0 exhibit961p37i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
37
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
38
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
39
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.
exhibit961p2i0 exhibit961p40i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
40
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 (
).
exhibit961p2i0 exhibit961p41i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
41
Figure 6: Topography Map of FWGR
Source:
 
Sound Mining, 2022
exhibit961p2i0 exhibit961p42i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
42
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.
exhibit961p2i0 exhibit961p43i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
43
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
44
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
45
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
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
46
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.
exhibit961p2i0 exhibit961p47i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
47
Figure 9: Regional Geological Setting of the Witwatersrand Supergroup
Source:
 
Sound Mining, 2022
exhibit961p2i0 exhibit961p48i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
48
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
exhibit961p2i0 exhibit961p49i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
49
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
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
50
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.
exhibit961p2i0 exhibit961p51i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
51
Figure 12: Property Geology
Source:
 
Sound Mining, 2022
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
52
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
53
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
54
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
55
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
56
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
57
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
58
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
59
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;
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
60
●
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
61
●
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.
exhibit961p2i0 exhibit961p62i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
62
Figure 13: Cross-sections and Grade Distribution - Driefontein 5 TSF
Source:
 
Sound Mining, 2022
exhibit961p2i0 exhibit961p63i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
63
Figure 14: Cross-sections and Grade Distribution - Driefontein 3 TSF
Source:
 
Sound Mining, 2022
exhibit961p2i0 exhibit961p64i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
64
Figure 15: Cross-sections and Grade Distribution - Kloof 1 TSF
Source:
 
Sound Mining,
 
2022
exhibit961p2i0 exhibit961p65i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
65
Figure 16: Cross-sections and Grade Distribution - Libanon TSF
Source:
 
Sound Mining, 2022
exhibit961p2i0 exhibit961p66i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
66
Figure 17: Cross-sections and Grade Distribution - Venterspost North TSF
Source:
 
Sound Mining, 2022
exhibit961p2i0 exhibit961p67i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
67
Figure 18: Cross-sections and Grade Distributions - Venterspost South TSF
Source:
 
Sound Mining, 2022
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
68
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
69
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
70
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.
 
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
71
●
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.
exhibit961p2i0 exhibit961p72i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
72
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
exhibit961p2i0 exhibit961p73i1
 
 
 
 
exhibit961p73i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
73
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 (
).
exhibit961p2i0 exhibit961p74i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
74
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 (
).
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p75i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
75
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 (
).
exhibit961p2i0 exhibit961p76i1 exhibit961p76i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
76
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
77
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.
exhibit961p2i0 exhibit961p78i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
78
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
exhibit961p2i0 exhibit961p79i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
79
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.
exhibit961p2i0 exhibit961p80i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
80
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
81
●
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.
exhibit961p2i0 exhibit961p82i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
82
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p83i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
83
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
84
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.
exhibit961p2i0 exhibit961p85i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
85
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.
exhibit961p2i0 exhibit961p86i1
 
 
 
 
exhibit961p86i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
86
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
87
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
88
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
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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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
90
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
(
).
exhibit961p2i0 exhibit961p91i1
 
 
 
 
exhibit961p91i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
91
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
exhibit961p2i0
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(Proprietary) Limited
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92
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
exhibit961p2i0
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(Proprietary) Limited
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93
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.
exhibit961p2i0
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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.
exhibit961p2i0 exhibit961p95i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
95
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.
 
exhibit961p2i0
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(Proprietary) Limited
Document No: PR/SMI/1203/22
96
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.
exhibit961p2i0
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(Proprietary) Limited
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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 (
).
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
exhibit961p98i0
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
98
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
99
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
100
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
101
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p102i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
102
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p103i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
103
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.
exhibit961p2i0 exhibit961p104i1 exhibit961p104i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
104
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
105
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
106
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
107
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
108
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
109
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
110
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;
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
111
●
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%.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
112
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
113
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p114i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
114
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.
exhibit961p2i0 exhibit961p115i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
115
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
116
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
.
exhibit961p2i0 exhibit961p117i1 exhibit961p117i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
117
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
exhibit961p118i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
118
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
exhibit961p2i0 exhibit961p119i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
119
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
120
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);
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
121
●
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
122
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.
exhibit961p2i0
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(Proprietary) Limited
Document No: PR/SMI/1203/22
123
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).
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
124
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.
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
125
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
126
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
127
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
128
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
129
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
130
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
131
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
132
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
133
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,
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
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
exhibit961p2i0
Far West Gold Recoveries
 
(Proprietary) Limited
Document No: PR/SMI/1203/22
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.
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
exhibit961p2i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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