2017
NOTE Present Project : Prospecting Rights still held or applied for. Historic Project : This refers to the areas and work completed on the entire Project from day one. Introduction The historic target area covered a large area held under six (6) different Prospecting Rights which were applied for sequentially as more information on the deposit became available (Historic Project). The obtaining of such a large area was necessary as there are often large variations in the nature and potential of these alluvial deposits. Some drilling was done on most of these Prospecting Right areas (areas consist of one to several farms with different land owners) and the areas of higher potential were kept (Documented under the heading Present Project). It is necessary to include the results of the work done on the Historic Project, which includes the three (3) Rights held at present, as the work done outside the Present Project speaks to the potential of the Present Project and because the major portion of the test mining was done on the farm Zamenkomst (outside Present Project). On Zamenkomst only a small portion of the good gravel was preserved and mined out (Prospecting Right terminated). At the time, when this test mining was carried out, no other Prospecting Rights were available and the contractors moved else ware. It is important to note that all Test Mining was carried out with no cost to the “Company” (Contractors sold the Diamonds for their account and only the data and results of the Test Mining was retained by the “Company”). The only costs carried by the “Company” was Drilling and Salaries. To make it easier for the reader to understand the presentation, an attempt will be made to split it, where possible, into:
Present and Historic Project Summary of the Harts River Project The Harts River Project comprises of a contiguous block of farms situated in the Northern Cape of South Africa between Vryburg and Taung, known as the Brussels Block. At present license covers 4257.8249 hectare (42.6 square kilometers) (Present Project). The Present Project Area lies approximately 20 km south of Vryburg and stretches for approximately 10 km from northeast to southwest and deposit varies in width between 600 and 2000 meters and in thickness between 1 and 5 meters. The Present Project Area comprises four farms, or portions there of, and form a contiguous block from Zwartkrans Por. 0 in the northeast to Uitenhage Por 3 in the southwest (Present Project). The deposit (Historic and Present Project) has good potential as it yields large diamonds of very good quality and the largest stones recovered to date were 60.21, 24.29, 19,73 and 16.65 carats respectively and the highest price obtained was US$ 9469.44 (per carat) for the 24.29 carat stone (US$ 230012.69 for single stone at 2006/2007 prices, Carat prices have since risen by 20% or more). % of Stones Larger than 5 Carat - 32 % - Calcrete Gravel (Historic Project) % of Stones Larger than 5 Carat - 25 % - Calcrete Gravel (Historic Project) % of Stones Larger than 10 Carat - 19 % - Calcrete Gravel (Historic Project) • Potentially 35 km palaeo-river gravel deposit, with large diamonds. – 1,500 to >10 000 US$/carat (Present Project represents +-10 km of this distance and represents best portion of this Historic Project area.)
• 1,200 carats recovered from Bulk Sampling in 2006/2007 (Historic Project Zamenkomst only) Sold for 1,050 US$/carat average(Historic Project Zamenkomst only). As these are 2006/2007 prices and the $ price per carat has increased substantially since then, it would not be unrealistic to put the present price average price at 1,250 US$/carat. Best priced for a parcel 1,942 US$/carat (Historic Project Zamenkomst only) • Expanding resource base further through exploration. • Other large drainage systems with good potential are developed in close proximity to the Project Area. • There is a high potential for finding larger, high value stones. • Only 10 km of the original Historic Project (35 km) is included in the present Brussels Project Area. • >213 542 m3 gravel has been treated (> 491 147 tons) in bulk sampling ( Historic and Present Project Areas). • Gravel treated with 3 x 14’ rotisserie pans, 30 tons/hour each , DMS and flow-sort recovery of diamonds from pan concentrates. • The present Project Resource indicates 187 233.62 carats of diamonds at US$ 1000+ /carat. This indicates an in-situ value of US$ 187 233 620 at a grade of 0.30 cpht. These are historic prices and with new elevated prices the in- situ value could be 20% higher (US$ 224 680 344). • Bulk sampling carried out by small scale contractors. Test mining to be continued in near future on Present Project areas LOCALITY The Project is situated approximately 20 kilometers due south of Vryburg in the Northern Cape and straddles the Vryburg/Taung regional tar road (R49).
INFRASTRUCTURE The Eskom grid is well developed throughout the project area and sidelines from the main grid supply all farms. Water is abundant in the area from drill holes and the waterlogged Spruit Gravels. In addition to this the Taung/Vryburg water pipeline, which supplies Vryburg with water from the Vaal Harts irrigation scheme, passes through the center of the project area and permission has already been granted by the local authorities to purchase and pump water from the line. PRESENT PROJECT Drilling Completed A total of 415 percussion drill holes have been completed at four (4) localities Gamabot Por’s 2 (Fig 3) & 3 (Fig 4), Zwartkrans Por 0 (Fig 5) and Uitenhage Por 3 (Fig 6). Ore Resources Table 1 PRESENT PROJECT ORE RESOURCES (Including ground applied for) METRIC TONNES (All DRILLED gravel types) Gamabot Por. 2 2789687 46300048 Gamabot Por. 3 Uitenhage Por 3 4982877 13321472 Zwartkrans Por 0 TOTAL TONNES (Drilled) 67394084
PRESENT PROJECT Table 2 PRESENT PROJECT ORE RESOURCES TONNAGES IMMEDIATLY AVAILABLE FOR MINING (Prospecting Rights Granted) METRIC TONNES (All FARM gravel types) Gamabot Por. 3 46300048 TOTAL TONNES (Drilled) 46300048 Table 3 FARMS APPLIED FOR, TONNAGES THAT WILL BECOME AVAILABLE ON GRANTING OF RIGHTS METRIC TONNES (All FARM gravel types) 13321472 Zwartkrans Por 0 2789687 Gamabot Por. 2 4982877 Uitenhage Por 3 TOTAL TONNES (Drilled) 21094036 Test Mining Results Table 4 PRESENT PROJECT TEST MINING AND SALES RESULTS (Including farms applied for) Metric Total Grade Average TEST MINED Tonnes Carats Comments cpht US$/CARAT Treated Recovered 11886 30.71 0.26 816.09 Test Mining carried out correctly Gamabot Por 2 Poorly Test Mined with very little control. Results of Test Mining Gamabot Por 3 11988 39.09 0.33 Assumed +-800 Sales never received but Grade (cpht) information good Poorly Test Mined with very little Zwartkrans Por control. Results of Test Mining 4991 15.8 0.32 Assumed +-800 0 Sales never received but Grade (cpht) information good TOTALS 28865 85.60 0.30 Prices for these parcels were US$ 800.00 (Historic Prices). It should however be kept in mind that tonnages tested were small (see Table above ) and largest single stone was 5 carats. A lot more tonnages will have to be tested to get a realistic US$ average price.
PRESENT PROJECT Legal Status Table 5 TABLE OF PRESENT PROSPECTING RIGHTS STATUS PROSPECTING RIGHT STATUS ACTION TAKEN Existing Prospecting Right is being cancelled and new Application for Prospecting Right will be lodged Gamabot Por 2 New application immediately after old Right has been cancelled Application for an extension of the existing Gamabot Por 3 Existing Prospecting Right Prospecting Right has been granted by the DMR A new Application for a Prospecting Right has been Zwartkrans Por 0 New application accepted by the DMR and is being processed Existing Prospecting Right is being cancelled and new Application for Prospecting Right will be lodged Uitenhage Por 3 New application immediately after old Right has been cancelled
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