Leshobo Technical Report_October2016

Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

Written by: PENELOPE MASHAPA Edited by: Mr TOPMAN NGONYAMA
TSHILIDZI MBADALIGA
THANYANE DEMANA

Prepared by: October 2016
On behalf of:



Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

This document contains proprietary and confidential information. All data submitted to
you is provided in reliance upon its consent not to use or disclose any information
contained herein except in the context of its business dealings with Topbram Initiatives.
The recipient of this document agree to inform present and future employees of your
company who view or have access to its content of its confidential nature.
The recipients agrees to instruct each employee that they must not disclose any into
concerning this document to others except to the extent that such matters are
generally known to, and are available for use by, the public. The recipient also agrees
not to duplicate or distribute or permit others to duplicate or distribute any material
contained herein without Topbram Initiatives’ express written consent.

Tel: +27 15 291 4321
Fax: 086 605 6763
Address: 18 Biccard Street, Polokwane, 0699
Postal: P O Box 581, Bendor, 0713
email: [email protected]

12th October 2016

I am pleased to present the technical report for the initial development of the
Leshobo Limestone Project. The initial development phase of the project has
three key criteria.

a) Firstly a short timeframe to production and cashflows which will
fund future production growth.

b) Secondly a low capex requirement to minimize any future equity
financing and potential shareholder dilution.

c) Finally it is achievable by the Company without reliance on
additional 3rd party infrastructure.

Subsequent phases will focus on securing other deposits in the surrounding
areas, increasing production to leverage the large resources base and
exploration of the slate to improve margins.
Our thanks go to the Geopoint Africa team, who lent their recognized expertise
to this study.

Sincerely,

Topman Ngonyama

Executive Director

Registration Number: 2013/117083/07

Technical Report for the
LESHOBO LIMESTONE

Taung, North-West Province

Table of Contents 01
03
1. INTRODUCTION
1.1 Property description and location 05
1.2. Accessibility, local resources and 05
infrastructure 05
1.3. Climate and physiography 05
1.4. Mineral Tuner
1.5. Key Environmental Considerations 06

2. HISTORY 07

3. ECONOMIC APPLICATIONS OF LIMESTONE 08
08
4. REGIONAL GEOLOGICAL SETTING 09
4.1 Transvaal Supergroup 12
4.1.1. The Griqualand West Basin 12
4.1.2. The Campbellrand Subgroup 14
4.1.3. The Monteville Formation
4.2. Property geology 19
19
5. EXPLORATION APPROACH 20
5.1. Geological Mapping 23
5.2. Sampling
5.3 Topographical Survey 24

6. ANALYSIS AND INTERPRETATION 32

7. RESOURCES ESTIMATION 33
33
8. PROJECT IMPLEMENTATION PLAN 33
8.1. Purpose of the implementation plan
8.2. Assumptions for implementation 33
8.2.1. Assumptions on Quality and
Reserves 34
8.2.2. Assumptions on Markets and
Market Demand 34
8.2.3. Assumptions on Required Mining
and Processing Equipment 39
8.2.4. Assumptions on Expected
Revenues/ Economic Viability of
the Project

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

8.2.5. Assumptions on the cost of Mining 39
8.2.6. Diesel and Personnel Costs 41
8.3. Project Viability 42

9. IMPLEMENTATION TIME LINES 43

10. MARKET ANALYSIS 44
10.1 Demand 44
10.2 Expansions in the cement industry 46

11. PRODUCT SPECIFICATION 47

12. CONCLUSIONS AND RECOMMENDATIONS 48

13. REFERENCES 49

ii

List of Figures 03
04
Figure 1.1: The project area is shown by the red polygon on the map. 07
Figure 1.2: The locality map of the project area, the project area is
shown by the red polygon on the map. 08
Table 3.1: Classification of limestone on the percentage of CaCO3 10
(Cox et al., 1977) 11
Figure 4.1: The location and aerial extent of the Transvaal Supergroup
covering the Transvaal and the Griqualand West Basins (Picture from: 14
Beukes 1983).
Figure 4.2: Geological map of the Transvaal Supergroup in the 15
Griqualand West Basin. Picture from (Harding, 2004). 16
Figure 4.3: The stratigraphical column of the Transvaal Supergroup in 17
the Griqualand-West Basin, Prieska facies. Picture from (Harding, 2004). 18
Figure 4.4: The location and aerial extent of the Transvaal Supergroup 19
covering the Transvaal and the Griqualand West Basins (Picture from: 20
Beukes 1983). 21
Figure 4.5: Limestones present within the property. (a) On the eastern 22
wall of the deposit, (b) on the surface and (c) a limestone with
precipitation marks visible.
Figure 4.6: Limestone in contact with slate
Figure 4.7: An outcrop of dolomite within the property
Figure 4.8: Slate occurring on the east and north-east of the property.
Figure 5.1: The geological map of the property and the traverse lines
followed in mapping the area
Figure 5.2: A sampling grid used to collect samples. Sample points also
indicated on the map
Table 5.1: Chemical Characteristics of the limestone sample from
Leshobo
Table 5.2: Chemical Characteristics of the limestone sample from
Leshobo

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

Figure 8.1: CaCO3 content in the tested samples. 23
Figure 8.2: MgO content in the tested samples 26
Figure 8.3: SiO2 content in the tested samples 29
Figure 8.5: Fe2O3 content of the tested samples. 30
Figure 10.1 Shows the demand for cementitious products (SAMI, 31
2009/2010)
45

iv

1. INTRODUCTION

Topbram Initiatives is a subsidiary of Geopoint Africa, which is a mineral resources
development company in Africa, with its head offices in Polokwane, Republic of South
Africa. Geopoint Africa has over the years focused on discovering scalable new
frontiers mineral deposits in Africa. Geopoint Africa has on behalf of its subsidiary
embarked on the evaluation of the Leshobo property which is located in the
Magisterial District of Taung, North West Province, South Africa. This report presents the
findings of desktop studies, reconnaissance surveys, detailed geological and
geochemical surveys conducted by the time of writing this report.

The terrain in and around the permit area possesses extensive deposits of limestone
suitable for multipurpose. Limestone (CaCO3) probably has the largest number of
commercial applications of all the industrial minerals. These include construction
(aggregate, rail ballast and dimension stone), mineral fillers (in paper, paint, plastic,
rubber and pharmaceuticals), adhesives, abrasives, fertilisers, food additives,
environmental application (acidity neutralisation, flue gas desulphurisation, soil
conditioning and stabilisation), and production of cement, lime and calcium chemicals.
These applications are defined by the required chemical properties (such as lime, silica,
magnesia and iron contents), the physical properties (such as particle size distribution,
colour and surface area) and the mechanical properties (such as strength,
abrasiveness and durability).

The largest Limestone resources in South Africa are contained in the upper part of the
Campbell Rand Subgroup, which crop out in the Northern Cape and part of the
Bokone Bophirima Provinces. These deposits hosts medium-high grade limestone and
has been mined in large scale since 1920s.

The Griqualand West Basin of the Transvaal Supergroup in Northern Cape and Bokone
Bophirima Province is comprised of carbonate sediments which are covered by more
recent travertine and calcrete deposits which are mined at various places (Wilson,
2012).

The most important travertine or tufa deposits in South Africa have been reported to
be along the 250 km long Ghaap Plateau escarpment that stretches from south of
Kimberley upto Vryburg in the North West Province.

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

In the Northern part of this escarpment and about 15km from Leshobo Limestone
project lies two high grade deposits (CaCO3> 95%) in Norlim and Thomeng which are
said to be mined out. About 12 Mt were produced from these deposits between 1920
and 1959 and were the major source of limestone in the country for many years. A
number of deposits are also known along the Ghaap Plateau escarpment, including the
Leshobo Travertine Deposit (Martini and Wilson, 1998).

02

1.1. Property description and location

The Mining permit covers an area of 4.52 hectares, within the farm Taung 894HN, which
is located approximately 5 km WSW of the Leshobo Village and approximately 11 km
NW of Taung Town in the magisterial district of Greater Taung, North West Province,
South Africa (Fig:1.1). The area is geologically located on the Monteville Formation
Subgroup, Ghaap Group, in the Griqualand-West Basin of the Transvaal Supergroup.

Figure 1.1: The project area is shown by the red polygon on the map.

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

Figure 1.2: The locality map of the project area, the project area is shown by the
red polygon on the map.

04

1.2. Accessibility, local resources and infrastructure

From Taung, the area can be accessed by the R372 tarmac road to Reivillo and join
the district tarmac road at Mokgareng village that branches toward Leshobo Village.
At the end of Mokgareng village, a nice gravel road gives access the project area. A
railway line and a national road (N18) pass through Taung and these could be used
for effective transporting of the product.

1.3. Climate and physiography

Taung receives most of its rainfall during summer with a total of about 318 mm per year.
The lowest rainfall is in June (0 mm) with the highest rainfall (65 mm) occurring in
February. Average midday temperatures for Taung range from 18.70C in June to
32.50C in January. The region is coldest in July where temperatures can drop to a low
of 0.70C (SAExplorer, 2014). The area around Taung is generally flat with an
escarpment on the west, running N-S or NE-SW, generally associated with limestone
deposits.

1.4. Mineral Tuner

The mineral tenure in South Africa is governed by the regulations of the Mineral &
Petroleum Resources Development Act, 2002 (MPRDA). In May 2016, Topbram was
granted a mining permit (Ref: 10376MP) in terms of section 27 of the Mineral and
Petroleum Resources Development Act 2002 (Act 28 of 2002) and constitute the
project.

1.5. Key Environmental Considerations

The Environmental Authorisation and the Basic Assessment Report (“BAR”) in support of
the Mining Permit for the project was approved for Leshobo project and is available
at the Company’s Head Office, so that the reader of this report can make a reasoned
and balanced judgement regarding any potential liabilities, undertakings by the
applicant and any additional requirements determined by the Regional Manager and
agreed to by the Applicant.

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

2. HISTORY

In South Africa several tufa deposits have been described in the semi-arid Transvaal
Supergroup and along the Ghaap escarpment (Ghaap Plateau) in the Northern Cape
Province (Marker, 1971, 1973, 1985, 1988; Ford and Pedley, 1996). Most of these
deposits occur as sequences of fluvial terraces and waterfalls in gorges draining from
the dominant dolomites of Ghaap Plateau. Few of the Campbellrand Subgroup
deposits have been worked for ornamental travertine.

The basal Campbellrand Subgroup limestone deposits have been described as less
significant as compared to the uppermost ones of the subgroup. The most important
travertine or tufa deposits in South Africa have been reported to be along the 250 km
long Ghaap Plateau escarpment. In the Northern part of this escarpment two high
grade deposits (CaCO3> 95%) in Norlim and Thomeng are said to be mined out.
About 12 Mt were produced from these deposits between 1920 and 1959 and were
the major source of limestone in the country for many years. A travertine deposit with an
estimated resources of 40 Mt is known further south, immediately to the east of Boetsap
(90 km north-north west of Kimberley). However, the most important travertine deposit is
at Ulco, 70 km to the north east of Kimberley, with an estimated resource of 100 Mt. A
number of smaller deposits are also known between Ulco and Douglas along the
Ghaap Plateau escarpment (Martini and Wilson, 1998).

The Taung site is best known for the 1924 discovery of a fossilized child’s skull now
known to represent an early hominid “Taung Child”. Mc Kee (1994) explains that the skull
was discovered at a limestone quarry in Norlim where Buxton Limeworks was mining. The
quarry closed in 1977, with most blasting in the Buxton Limeworks having ceased in the
mid- 1950’s when the focus moved South to nearby Thoming. The Leshobo property has
been exploited in the past, but no record of detailed resource evaluation except some
small dumps and visible stockpiles.

06

3. ECONOMIC APPLICATIONS OF LIMESTONE

Limestone probably has the largest number of commercial applications of all the
industrial minerals, but the construction and cement manufacturers are the principal
consumers (Harrison, 1993). In construction, it is used as a source of lime to make cement,
as aggregate, rail ballast and dimension stone. It is used in the metallurgical industry
where large amounts of limestone are needed to remove impurities during the iron ore
and steel reduction (Agnello, 2005). Environmental and agricultural applications
include acidity neutralization (aglime), fine-gas desulphurisation; soil conditioning and
stabilization, fertilizing and animal feed (Mitchell, 2011). It is used as mineral filler in
paper, paint, plastic, rubber and pharmaceuticals. Crushed limestone is used in sewage
disposal plants for sewage purification. It is also used as an adhesive, abrasive, in glass
manufacturing and as a dietary supplement.

The presence of silica, alkalis and dolomite influences the grade of carbonate rocks.
Limestones with very high silica and dolomite content are considered low grade. The
grade of the limestone is the one that determines its uses. Limestones are classified into;
construction aggregates, cement, lime, chemical reagent, medium value powders, and
high value powders with the purity of the limestone increasing respectively (Harrison, et
al., 1992). Shown in Table 1.1 is the classification of limestone based on the CaO
content.

Category Percentage CaCO3 Percentage CaO
Very high purity > 98.5 > 55.2
High purity 97.0 - 98.5 54.3 - 55.2
Medium purity 93.5 - 97.0 52.4 - 54.3
Low purity 85.0 - 93.5 47.6 - 52.4
impure < 85.0 < 47.6

Table 3.1: Classification of limestone on the percentage of CaCO3 (Cox et al., 1977)

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

4. REGIONAL GEOLOGICAL SETTING

4.1 Transvaal Supergroup

The Griqualand-West Basin together with the Transvaal Basin and the Kanye Basin
(southern Botswana) constitute the Transvaal Supergroup (Fig 4.1). The original extent
of the Transvaal is estimated to cover an area of approximately 500 000 km2 and the
basins are separated by an arch-like structure (Duane, et al., 1988). The stratigraphic
subdivision of the Transvaal Supergroup generally consists of a basal mixed silisiclastic
and volcanic unit, followed conformably by a chemical sedimentary unit which is in turn
unconformably overlain by a mixed chemical-volcanic-silisiclastic rock unit (Beukes,
1983).

Figure 4.1: The location and aerial extent of the Transvaal Supergroup covering the
Transvaal and the Griqualand West Basins (Picture from: Beukes 1983).

08

4.1.1. The Griqualand West Basin

The Griqualand West Basin (Fig 4.4.2) extends from just east of Vryburg, trending in a
NE-SW direction up to Nauga-East. The basin is cut by a major Griqualand fault in the
south-western portion which subdivides it into two facies; the Prieska facies and the
Ghaap Plateau facies (Eriksson & Altermam, 1998). Sedimentary rocks deposited in
either the Schmidtsdrif or Cambellrand subgroups north and east of the Griquatown
fault are known as the Ghaap plateau facies and while sedimentary rocks deposited
during the same time frame south and west of the Griquatown are known as the Prieska
facies (Calvin, 2003). The stratigraphical column of the Griqualand Basin in the Ghaap
Plateau Facies is shown in Figure 4.4.3. Only the Ghaap Plateau will be discussed here
as the limestone deposits described in this study are developed within the area
occupied by this facies.

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

Figure 4.2: Geological map of the Transvaal Supergroup in the Griqualand West
Basin. Picture from (Harding, 2004).

10

Figure 4.3: The stratigraphical column of the Transvaal Supergroup in the
Griqualand-West Basin, Prieska facies. Picture from (Harding, 2004).

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

4.1.2. The Campbellrand Subgroup

The Ghaap Plateau facies consists of 8 formations which include, Monteville, Reivilo,
Fairfield, Klipfonteinheuwels, Papkuil, Klippan, Kogelbeen and Gamohaan Formations (Fig
3.3). The Prieska facies consist of two formations which include, Nauga and Naragas
Formations (Harding, 2004). The Campbellrand Subgroup forms the Campbellrand
escarpment and Ghaap Plateau in Griqualand West. It conformably overlies shale of
the Schmidtsdrift Subgroup, which forms the base of the Transvaal Supergroup in
Griqualand West, and is in turn conformably overlain by the Kuruman iron formation. Its
sequence is virtually undeformed, dipping gently at 1-20 to the west on the Ghaap
Plateau. A set of north-westerly striking faults displaces the sequence. South of Prieska
the sequence is faulted out against the Doringberg shear zone (Coward and Potgieter,
1983).

The Ghaap Plateau facies consists of giant stromatolitic dolomite domes, columnar
stromatolitic dolomite, stratified stromatolitic dolomite, domal and chertified dolomite,
sparry dolomite, net-like fenestrae dolomite, oolitic dolomite and limestone, dolomite
and chert in shale breccias, quartz arenites, dolarenites and argillites, cherts and tuffs.
The depositional environment of the Campbellrand Subgroup was interpreted to have
been a stable shallow marine platform and basin, provided by the Kaapvaal Craton
(Beukes, 1980, 1983).

The underlying Vryburg Formation lavas of the Schmidtsdrif Subgroup has an age of
2642 ± 3 Ma (Walraven and Martini, 1995). The overlying Gamohaan Formation has a
U-Pb zircon age of 2521 ±3 Ma and 2516 ±4 Ma. The underlying Monteville Formation
has U-Pb zircon ages of 2555 ±19 Ma. Dates of about 2465±7 Ma from the base of
the overlying Danielskuil Formation (Asbestos Hills Subgroup) have been obtained
(Trendall et al., 1995; Sumner and Bowring, 1996; Altermann and Nelson, 1998; Nelson
et al., 1999). Thus, the deposition of the Campbellrand took place between 2600-2500
Ma.

4.1.3. The Monteville Formation

The Monteville Formation represents the lowermost unit of the Campbellrand Subgroup
in the Ghaap plateau region. It overlies the Clearwater Formation of the Schmidtsdrif
Subgroup and overlain by the Reivilo Formation ( Beukes, 1980; Beukes, 1978;
Altermann and Siegfried, 1997). The underlying Vryburg Formation (Schmidtsdrif
Subgroup) lavas have an age of 2642 ± 3 Ma (Walraven and Martini, 1995). The
overlying Monteville Formation has U-Pb zircon ages of 2555 ±19 Ma.

12

It generally consists of basal giant dolomite domes, curly algal mat limestone, clastic
algal mat laminated limestone and dolomite, argillite, SH-I algal mat limestone,
dolarenite, potsherd breccia, crinkle laminated dolomite, columnar stromatolites (LLH-C
and SH-C), oolites and quartz arenites (Beukes, 1978; Beukes, 1987). It is approximately
200 m thick in surface outcrops. Beukes (1987) interpreted this formation as a shelf
deposit while Altermann and Herbig (1991) interpreted it as shallow marine based on
stromatolite occurrences and morphology. It is subdivided into three members i.e.
Loodaarrug, Baviaanskrans and Motiton Members. The boundary between the
Monteville and the overlying Reivilo Formation is taken at the top of the last continuous
quartz arenite unit present in the succession. (Beukes, 1987; Altermann and Siegfried,
1997).
The lowermost Loodaarrug Member consists of alternating units of curly algal mat
limestone, clastic algal mat laminated limestone and dolomite and argillite. Thin units of
SH-I algal mat limestone, dolarenite and potsherd breccias are present. The base of the
member is formed through a 3.5 m thick unit of giant dolomite domes.
The middle Baviaanskrans Member is characterised by crinkle laminated and SH-C
columnar stromatolitic dolomite, oolitic carbonate rocks, potsherd breccias and
argillite. Several lenses of limestone are present in the dolomites.
The uppermost Motiton Member consists of quartz arenites, argillite, quartz
arenite-argillite, columnar stromatolitic dolomite (LLH-C and SH-C) and dolomitic quartz
arenite.

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

4.2. Property geology

The licence area only consists of three lithologies; limestone, dolomite and slate (or
laminated shale). The limestone is generally uniform in appearance with slight difference
in places.

Figure 4.4: The location and aerial extent of the Transvaal Supergroup covering the
Transvaal and the Griqualand West Basins (Picture from: Beukes 1983).

14

Figure 4.5 shows the different forms present on the property, with (a) showing the most
dominating form of limestone in the project area which in most places, is weathered to
a dark-grey to black colour. (b) Is the same form of limestone as (a), that occurs on
gentle to flat slopes. The gentle slope makes it a favourable environment for chemical
weathering, which leaves visible marks on the limestone. (c) Is a form of limestone which
forms a thick hard crust indicating precipitation marks on the surface. The limestone is
in contact with dolomite on the west, north and south, and is in contact with slate (Fig
4.5) on the east, north east and south east of the property.

(a) (b)

(c)

Figure 4.5: Limestones present within the property. (a) On the eastern wall of the
deposit, (b) on the surface and (c) a limestone with precipitation marks visible.

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

Figure 4.6: Limestone in contact with slate

16

Dolomite covers most of the area and it generally occupies high altitude areas. The
dolomite is homogeneous in appearance and is light grey to brown on weathered
surface and grey on fresh surface. The contact between the dolomite and limestone is
irregular, containing fragments of dolomite included within limestone.

Figure 4.7: An outcrop of dolomite within the property
On the eastern side of the property, limestone is in contact with slate (Fig 4.6) or
laminated shale. Generally, the slate occurs below the limestone and dolomite (Fig 4.7)
and is only exposed where the former is not present, or where the latter is weathered off.
The contact between limestone and slate is sharp and near the contact, the slate is
calcium rich.

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

Figure 4.8: Slate occurring on the east and north-east of the property.
A couple of dry streams are present on the property that were running on the dolomite
from the west. These are presumed to be responsible for the deposition of the limestone.
The energy of the stream declined as time went by and this is indicated by large
boulders deposited on the contact between the laminated shale and limestone.

18

5. EXPLORATION APPROACH

5.1. Geological Mapping

The boundaries of the permit area we marked, but due to the size of the project area,
mapping also included areas outside the project boundaries. Geological fieldwork
included taking a series of field traverses on foot along the main wadies, tributaries,
along slopes, fault planes and across the strike direction etc in the given area.
Lithological and structural studies like physical characters of rocks, their dips, strikes,
folds, joints, faults and foliated planes, were made. Special attention was given to study
the outcrops bearing signature of calcite minerals. Geological sections at various
locations shall be prepared after drilling due to the geometry of the deposit. Each
section shall be studied with regard to rock homogeneity, bed thickness and presence
of intercalated layers of other rocks so as to define the grade and estimate the visual
reserves.
Preliminary geological evaluations of the resource were estimated by making use of the
surface area of the exposed rocks and their average elevations.

Figure 5.1: The geological map of the property and the traverse lines followed
in mapping the area

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

5.2. Sampling

Two samples (L9109 & L9110) were collected during the reconnaissance visit. For
detailed geochemical sampling, two rounds were conducted. The first round was a
random grab sampling method where samples were collected at random areas for an
overview of the grade of the limestones. Ten samples (L10190-L10199) were collected
and the locations are shown in Figure 5.2.
During the second round of detailed geochemical sampling, lines of 50m spacing
trending in a NE-SW and NW-SE were designed. Where the two lines intersect on the
limestone, the area was regarded as a sampling point. A total of 15 samples were
collected and sent to the laboratory for geochemical analysis. The limestone is
generally homogeneous in appearance, so sample choice was based entirely on the
sampling grid.

Figure 5.2: A sampling grid used to collect samples. Sample points also
indicated on the map

20

Table 5.1: Chemical Characteristics of the limestone sample from Leshobo

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

Table 5.2: Chemical Characteristics of the limestone sample from Leshobo

22

5.3 Topographical Survey

A topographic survey of the permit area will be conducted by a qualified and
experienced team, using a reliable surveying instrument and standard accessories
(Figure 5.3.). A denser network of observation points will be noted so as to record
sharper topographical definitions. The survey data will be processed using
appropriate ArcGIS software to produce a topographic map at a scale of 1:1000 with
a contour interval of 10 m with all ground features and definitions. This map will also be
used to develop a mining plan and for the calculation of reserves.

Figure 5.3: Prelimenary topographic survey map

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

6. ANALYSIS AND INTERPRETATION

Limestones are composed almost entirely of calcite (CaCO3) but usually contain other
minerals such as dolomite (CaMg (CO3)2), silica (SiO2), alkalis (Na, Mg, K), Iron oxides
(Fe2O3), aluminium oxides (Al2O3), and organic materials (containing C). From the
tested samples, CaCO3 content ranges between 85.16 % and 95.78 % (Fig 8.1) and
all are above the cut-off grade of 85%.

Dolomite composition in limestone is indicated by the MgO content, but this can also
be partially assigned to the alkalis present. Dolomite is considered harmful if present in
amounts greater than a few percent. From the tested samples, MgO content ranges
between 1.06 % and 2.73 % (Fig. 8.2). Higher MgO content is correlated to lower
CaCO3 and vice versa. The MgO content is also within the tolerable amount.
Silica dilutes the purity of a limestone and is considered harmful to the limestone if
present in significant quantities. SiO2 (Fig 8.3) is directly proportional to MgO and it
shows the same behaviour as MgO relative to CaCO3. Alkalis (Na, K) are confined in
the silica and are present in quantities less than 0.2 %. Mg is not included in the total
alkalis as the Mg as an alkali content cannot be distinguished from the Mg in the
dolomite.

24

Fe2O3 (Fig 8.4) and Al2O3 show a direct correlation and in general, higher amounts are
associated with a decline in CaCO3 content. These minerals, together with SiO2 show
the same general trend and these could be representative of the clay minerals within
the limestone. MnO, P2O5, SO3 and TiO2 are also present in very small quantities. The Mn
content could be from the Asbestos Hills Subgroup higher up in the stratigraphy,
transported by the streams that ran through the property.

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

Figure 8.1: CaCO3 content in the tested samples.

26

Figure 8.2: MgO content in the tested samples

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

Figure 8.3: SiO2 content in the tested samples

30

Figure 8.5: Fe2O3 content of the tested samples.

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Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

7. RESOURCES ESTIMATION

A preliminary estimate of limestone resources was made by applying outcrop
dimensions to a depth of 60m taking into account limestone thickness above group
and applying a correction factor of 0.5, of resources estimated in outlined in Table 7.1.

Specification Area of Block
Area 45 200 m²
Depth 60m
Volume (factor of 0.5) 1 356 000m³
Specific Weight 2.7 g/cm³
Total Resources ?3 500 000 tonnes

Table 7.1 Leshobo Limestone, estimated Resources

From a geologic and economic point of view, the area is very suitable for mining of
medium to high purity limestone. According to the assessment, the Leshobo area of
Taung in the NorthWest Province contains more than 3.5 million tonnes of very high
quality limestone and the resources can be easily expanded because the limestone
units area extending further down and south eastern directions (see geological maps)

32

8. PROJECT IMPLEMENTATION PLAN

The fundamental prospects such as quality of the limestone and the estimated resource
are by implication justify for Topbram Initiatives to develop and implement a mining
plan commensurate to this type of product without delay.

8.1. Purpose of the implementation plan

The purpose of this Implementation Plan is to develop a system by which the lime stone
in Taung could be quaried, crushed, screened and hauled to the market, Inclusive to
the system will be the following critical aspects:

• Mine Optimization Plans
• Mine Construction and Actual Mining Process
• Budgets and Schedules
• Human Resources Availabilty and Skills
• Description of Implementations
• Constraints behind the Project
• Risk Mitigation Factors and Support of the Project by Management.

8.2. Assumptions for implementation

8.2.1. Assumptions on Quality and Reserves

The quality of the limestone is such that it could support refractory functions and
cement manufacturing without a doubt. Samples from the area earmarked for mining
were submitted to Intertek Laboratory in Australia and the results thereof confirmed the
viability of this limestone in cement making and as reagent that controls air pollution
from smelters and similar design technology.

Detailed surveys were conducted with a view to get an indication of an in situ resource.
Although the surveys alone could not be sufficient to infer an overall reserves of the
Leshobo project the outcome thereof confirmed an in situ resource of over 2 500 000
tonnes of medium purity limestone. Whilst a detailed study to estimate the resource is
being undertaken, the current resource is sufficient to warrant medium scale exploitation.

33

Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

8.2.2. Assumptions on Markets and Market Demand

The markets for this quality of lime stone will be entities in the cement manufacturing and
entities with interest in carbon or flue gases desulfurization.

Topbram Initiatives assumes entities who might need to control pollution of air through
using lime stone may at least require in the region of 500 to 600 Thousand tons of lime
stone per annum while entities in the cement manufacturing sphere may at least require
a minimum of 300 Thousand Tons of lime per annum.

The assumption on market demand calls for mining and processing machinery to the
capacity of:

• 50 000 Tons of lime stone per month in the event a client with a refractory function
is supplied.

• More or less 30 000 Tons of lime stone per month in a situation a cement producer
is supplied.

8.2.3. Assumptions on Required Mining and Processing Equipment
8.2.3.1. The Total Number of Mining and Processing Equipment

Given the fact that Topbram Initiatives assumes that it might produce between 30 000
and 50 000 tons per month, Topbram has therefore tabulated machinery and
processing plant that meet the production needs of the two different end users of
limestone hereunder:

REFRACTORY PURPOSE CEMENT MANUFACTURING

Estimated Output : 50 000 tons p/m PURPOSE
Required Yellow Fleet:
Estimated output : 30 000 p/m
• 1 x 70 Ton Excavator Required Yellow Fleet:
• 1 x 40 Ton Excavator
• 3 x 5 Ton Buckets Front Loaders • 1 x 70 Ton Excavator
• 3 x 30 Ton ADT Trucks • 2 x 5 Ton Buckets Front End

Loaders
• 2 x 30 Ton ADT Trucks

Required Processing Plant Required Processing Plant
1 x 400 Tons per hour Jaw Crusher (Primary) 1 x 200 Tons per hour Jaw Crusher (Primary)
1 x 400 Tons per hour Jaw Crusher 1 x 200 Tons per hour Jaw Crusher
(Secondary) (Secondary)
1 x 400 Tons per hour Screener 1 x 200 Tons per hour Screener

34

8.2.3.2. The Tonnages to be Produced by the Mining and Processing
Equipment
(a) Mining and Loading to ADT Trucks

REFRACTORY PURPOSE CEMENT MANUFACTURING PURPOSE

Yellow Daily Produc? Prod.@full Prod@ Yellow Daily Product Prod.@full Prod@
capacity 70%capacity 70%capacity
Fleet Hrs on =(AxBx26 days) =(C x 0,7) Fleet Hrs ion capacity =(C x 0,7)

Rate/Hr C D Rate/Hr =(AxBx26 days) D
84 240 58,960 58,960
(Tons) 46 800 32 760 (Tons) 0

AB AB C 58960

70 Ton Exc. 18 180 70 Ton Exc 18 180 84 240

40 Ton Exc 18 100 40 Ton Exc 0 0 0

Totals 18 280 131 040 91 720 18 180 84240

This table A suggests that:

• Topbram Initiatives will be using Two Excavators for mining and loading on to the ADT
trucks.

• The Two Excavators will mine and load 91 720 (in the case of Mining for a refractory
client)Tons of Lime on to ADT Trucks which will deliver on to a stockpile meant for
Crushing and Screening

• In the event of a Cement Manufacturing Client the One Excavator will be used for
Mining and Loading on to the ADT Trucks. The trucks will at least load 58 960 Tons of
Lime to the Crushing and Screening Department.

35

Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

(b) Plant (ADT Trucks) for Loading Lime to Crushing and Screening
Plant

REFRACTORY PURPOSE CEMENT MANUFACTURING PURPOSE

Yellow Daily Produc? Prod.@full Prod@ Yellow Daily Product Prod.@full Prod@
capacity 70%capacity 70%capacity
Fleet Hrs on =(AxBx26 days) =(C x 0,7) Fleet Hrs ion capacity =(C x 0,7)

Rate/Hr C D Rate/Hr =(AxBx26 days) D
126 360 88,452 58,960
(Tons) (Tons)
58960
AB AB C

3x30 Tons 18 270 2x30 Tons 18 180 84 240

ADT’s ADT’s

Totals 18 270 126 360 88 452 18 180 84240

Table B suggests that: Cement Manufacturer

Refractory Client • Three 30 ADT’s, each doing three
• Three 30 ADT’s, each doing three three round trips per hour.
three round trips per hour.
• All ADT’s delivering 58 960 Tons to the
• All ADT’s delivering 88 452 Tons to the Crushing and Screening Plant @ 70%
Crushing and Screening Plant @ 70%

36

c) Feeding the Crushing and Screening System

REFRACTORY PURPOSE CEMENT MANUFACTURING PURPOSE

Yellow Daily Produc? Prod.@full Prod@ Yellow Daily Product Prod.@full Prod@
capacity 70%capacity 70%capacity
Fleet Hrs on =(AxBx26 days) =(C x 0,7) Fleet Hrs ion capacity =(C x 0,7)

Rate/Hr C D Rate/Hr =(AxBx26 days) D
126360 88 452 44226
(Tons) (Tons)
44226
AB AB C

2 x 980H 18 270 1x980H 18 135 63180

Front Front

Loaders Loader

Totals 18 270 126360 88 452 12 135 63180

Table C suggests that: Cement Manufacturer

Refractory Client • There is a need of One 5 tons
buckets FEL to feed the Crushing and
• There is a need of Two 5 tons buckets Screening system.
FEL to feed the Crushing and Screening
system. • The front end loaders’ capacity at
70% will exceed the stockpiled lime for
• The front end loaders’ capacity at the Crushing and Screening Systems.
70% will exceed the stockpiled lime for
the Crushing and Screening Systems.

37

Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

d) The Crushing and Screening Systems

Plant Daily Produc? Prod.@full Prod@ Yellow Daily Product Prod.@full Prod@
Hrs on capacity 70%capacity Fleet Hrs ion capacity 70%capacity
Crushers& Rate/Hr =(AxBx26 days) =(C x 0,7) Rate/Hr =(AxBx26 days) =(C x 0,7)
Screener A (Tons) Crushers A (Tons)
18 B C D & Screens 18 B C D
88452 61917 58960 41278
189 126
41278
Totals 18 189 88452 61917 18 126 58960

Table D suggests that: Cement Manufacturer

Refractory Client • The final end product will be
• The final end product will be +/- 42 000 which exceeds the market
+/- 62 000 which exceeds the market demand by 12 000 Tons.
demand by 12 000 Tons.

38

8.2.4. Assumptions on Expected Revenues/ Economic Viability of the
Project

Topbram Initiatives has researched on prices of crushed lime stone and established
that on average, crushed lime stone is selling for about R250 (Two Hundred and Fifty
Rands) per Ton. A price list from a company called PBD Lime is attached to bear
testimony of the research.

If crushed and screened lime is indeed selling for R250 per ton, then Topbram may
assume that it would generate the following amounts as gross income vis –a-vis
production quantities.

8.2.4.1. Gross (Revenues) Income at Sales of up to 50 000 Tons per
Month

Sales of 50 000 Tons per Month @ R250 perTon
Equals 50 000 Tons x R250
Equals R12 500 000

8.2.4.2. Gross (Revenues) Income at Sales of up to 600 000 Tons per
Annum

600 000 Tons x R250
Equals R150 000 000

8.2.5. Assumptions on the cost of Mining

Topbram Initiatives assumes all of the equipment below will be put to use for a period
of 18hours a day over a duration of 26 days a month. The hourly rates then amount to
468 hours in one month.

The hourly rates have been sourced out from different plant hire companies and they
might be discounted on account of the fact the machinery will be working for more than
189 hours in a given month.

39

Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

HOURLY Total Hours MONTHLY
TOTAL
QTY RATE 468 VAT

MINING EQUIPMENT 1 1,150 538,200 75,348 613,548

70 Ton Excavator 1 600 280,800 39,312 320,112
40 Tons Excavator
ADT Truck 1 585 273,780 38,329 312,109
ADT Truck
ADT Truck 1 585 273,780 38,329 312,109

TOTALS 1 585 273,780 38,329 312,109

-- -

1,640,340.0 229,647.6 1,869,987.6

HOURLY Total Hours MONTHLY
TOTAL
QTY RATE 468 VAT

FEEDING EQUIPMENT 1 650 304,200 42,588 346,788
1 650 304,200 42,588 346,788
1X980H Front End Loader
1X980H Front End Loader 608,400.0 85,176.0 693,576.0

TOTALS

CRUSHING &SCREENING HOURLY Total Hours MONTHLY
TOTAL
QTY RATE 468 VAT

400 Tons P/Hr Jaw Crusher 1 2250 1,053,000 147,420 1,200,420
400 Tons P/Hr Jaw Crusher
400 tons P/Hr Screener 1 2250 1,053,000 147,420 1,200,420

TOTALS 1 1300 608,400 85,176 693,576

2,714,400.0 380,016.0 3,094,416.0

LOADER TO HAUL TRUCKS HOURLY Total Hours MONTHLY
40

8.2.6. Diesel and Personnel Costs

Topbram initiatives assumes that the diesel consumption will at least reach a minimum of
80 000 liters in a given month. It is further assumed that a litre of diesel will cost at least
R11.50. The cost will therefore be around R920 000.
Over and above the diesel costs, Topbram Initiatives will still incur personnel and
miscellaneous costs which are estimated at R500 000 per month.
Topbram further anticipates that administrative, travelling, security services, royalties,
accommodation, PPE, Health and Safety costs will at least amount to R400 000 per
month.

41

Technical Report for the

LESHOBO LIMESTONE

Taung, North-West Province

8.3. Project Viability

The project could be viable if it could be proven that the assumptions on market prices
are accurate or that the actual market prices are higher than the assumed prices.

In an instance where the assumptions on market prices are accurate, the benefits from
the project would be as follows:

Sales @R250X50 000 Tons 12,500,000.00
Less Cost of Sales 6,004,767.00

Equals Contribution Margin 6,495,233.00

Less Total Operating Costs 1,820,000.00
Personnel Costs 500,000.00
Diesel 920,000.00
Other 400,000.00

Equals Profit before Earning and Taxes 4,675,233.00

42

9. IMPLEMENTATION TIME LINES

TASK PERSON DATES ASSESSMENT
RESPONSIBLE OF TASK

Review and document TN 05 October
stakeholder challenges LK 2016
of the Project AM & TN 05th October
Sign Royalty Agreements TN 2016
with Stakeholders
Market Research and 06 – 15 October
Sourcing out of Potential 2016
Customers
Sign Off take Agreements 15 – 20 October
with Potential Customers 2016
24th October
Project Official Launch ALL 2016

Develop an Operational TN 25 – 30 October
and Production TN 2016
Scheduling Plan LK 15 – 25 October
Source Mining and LK 2016
Crushing Equipment LK & TN 01-07
Fence and Equip site with November 2016
an Office CONTRACTOR
Recruit Personnel ALL 02 November
including employment of 2016
the local people
Recruit Service Providers 26 Oct– 04 Nov
such as Security Firm, 2016
Professionals with Blasting
Certificates, Electrical 04 – 14 Nov
Contractors etc 2016
Mobilise and Establish
Mining and Crushing 16 November
Equipment on Site 2016
Commence with Mining
and Processing Activities

43