Facility visit 11 October 2005
Agenda Agenda ● ● Safety Safety ● ● Ore body re body O ● ● Mining methods Mining methods ● ● Production Production ● ● Operating costs Operating costs ● ● Capital expenditure Capital expenditure ● ● Human resources Human resources ● ● Key business issues Key business issues
Locality – – Modikwa Platinum Mine Modikwa Platinum Mine Locality ZWARTKOPPIES 413 KS BRAKFONTEIN 464 KS WATERKOP 113 KT KLIPFONTEIN 465 KS MECKLENBURG PASCHASKRAAL 112 KT 466 KS AVOCA 472 KS CROYDON DE KAMP TWICKENHAM 120 KT 507 KS 114 KT SURBITON 115 KT BALMORAL 508 KS FOREST HILL QUARTZ THE SHELTER HILL HACKNEY 117 KT 121 KT 116 KT 542 KS SOUTH AFRICA MAGNETS - VLAKTE CLAPHAM WINNAARSHOEK 541 KS 118 KT TWYFE - DINGAANS - LAAR FERN DSJATE AFRICA 250 KT KOP GROOTHOEK 119 KT KLOOF 249 KT 543 KS 256 KT 539 KS DRIEKOP 253 KT DE KOM 252 KT ZWEM - KLOOF 283 KT 25 O MOOIHOEK O 25 MAANDAGSHOEK 255 KT GROOT - 254 KT GARA- Bushveld Complex VYGEBOOM TOUW Republic of South Africa 284 KT 282 KT Amplats Mines Impala Mines - Gencor Lonrho Mines PP RUST GENOKAKOP HENDRIKSPLAATS 285 KT 281 KT Goldfields Mines - Northam LEBOWA Potgietersrust HOOGSTE - HOEPA - ONVERWACHT PUNT KRANZ 292 KT RPM. AMANDELBULT 290 KT 291 KT Maandagshoek DOORNBOSCH NORTHAM HOUTBOSCH farm 294 KT 323 KT RPM. UNION Barplats Warmbaths WINTERVELD Kennedys Vale 293 KT NOOIT WESTERN AND Lydenburg VERWACHT - BAFOKENG EASTERN PLATS 3 000m BARPLATS 324 KT EERSTE GELUK CROCODILE RIVER 322 KT IMPALA 2 000m UG 2 RPM. RUSTENBURG PRETORIA 1 000m Merensky Reef Rustenburg Witbank EASTERN BUSHVELD B U S H V E L D C O M P L E X
Location JV area
Safety
Lost time injury frequency rate 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2002 2003 2004 YTD 1.51 3.39 4.56 2.79 Act/F_cast
Fatalities 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2002 2003 2004 YTD 1 3 3 1 Act/F_cast
Geology Resources/reserves
Modikwa Platinum Mine – – lease area lease area Modikwa Platinum Mine N m k 8 . 4 2 Total lease area 14 278 ha Total lease area 14 278 ha Not to scale Mpumalanga Province
Modikwa Platinum Mine – – mining area mining area Modikwa Platinum Mine Base case Phase 1 South shaft North shaft Phase 2 extension extension Phase 3 � Deepening of North shaft declines by 1 level commenced in 2005.
Stratigraphic column in proximity of UG2 column in proximity of UG2 Stratigraphic ● Outcropping Merensky & UG2 , Westerly Dip ~11° ● Merensky to UG2 separation approximately 260m HW ● Triplet 3 Variable middling of triplets and 12cm Triplet 2 Leuconorite Parting Plane (LPP) to 12cm UG 3A 15m Top Reef Contact (TRC) on UG2 Triplet 1 5cm ● 10m TRC UG Norite-Fsp Pyroxenite contact 40-60 3 cm above MR Stoping 58c UG2 Profile UG 2 0 m Channel - L E G E N D - NORITE SPOTTED ANORTHOSITE BRC MOTTLED ANORTHOSITE FW 17cm 15 to PYROXENITE 70cm PORPHYRITIC PYROXENITE PEGMATOIDAL PYROXENITE HARZBURGITE UG 91m CHROMITITE STRINGER 1 CHROMITITE
Optimal Stoping Stoping Cut Cut Optimal (per shaft area) (per shaft area) Leuconorite Unit 4 17 10 5 50 8 10 30 25 21 7 8 8 3 4 TRC 107 Planned 97 Planned 101 Planned 58 61 56 UG2 BRC 10 20 16 20 -45 21 21 21 NORTH SHAFT SOUTH SHAFT HILL ADITS � Mine average planned at 102 cm – Currently 105cm
Vertical grade distribution in UG2 South Shaft North Shaft Average g/t 4E: North 5.65 South 5.99 Total 5.81 Reef channel Hanging wall Foot wall
2004 UG2 resource 2004 UG2 resource categories categories (Data Mine model) (Data Mine model) Measured Resource Indicated Resource Inferred Resource
2004 Merensky Merensky 2004 resource categories resource categories (Data Mine model) (Data Mine model) 117 boreholes Indicated Resource Inferred Resource
Resource & reserve statement - 2004
Exploration status • Phase 1 footprint complete by end 2006 • Phase 2 drilling commenced in line with current exploration programme • 3D seismic will be conducted in 2006 over a target area on North and South Shafts • Merensky Exploration continuing – trial mining to commence in 2006
Drilling programme 2005-2008 Phase 2 Phase 1 2005 2005 S# 2006 2005 N# 2007 2006 Infill 2008
On-mine - Exploration drilling Surface Drilling 45000 40000 35000 30000 metres 25000 20000 15000 10000 5000 0 2003 2004 2005 2006
Mining methods
Original design • Twin decline shaft systems – Vehicle access decline – Belt decline • Main strike development on-reef • Conventional down-dip stoping • Twin raises separated by 5m pillar • 90 cm stoping width • Mechanised development and tramming • Flat management / supervisory structures • Self directed, multi-skilled work teams • No night shift, two panel cycle • Continuous operations (Conops) • Fully autogenous milling • 200 ktpm, 162 kozpa • Onverwacht Hill and Mid Shaft areas included
Changes to original design • Chairlift decline access • Main strike development in the footwall • Stoping changed from down-dip to breast • 102 cm stoping width • Introduced night shift • Traditional management structure • Ball milling to increase capacity • 240 ktpm, 162 kozpa
Reef Drive Diagonal Muck Bay Dip Pillar Mining Twin Reef Raise Direction Mined Out Area Unmined Area 200 m 210m 70m Reef Drive Downdip Twin Raise Reef Drive layout
Reef Drive Diagonal Muck Bay Strike Pillar Dip Pillar Single Reef Raise Mining Direction Mined Out Area Unmined Area 200 m Enlargement 210m 210 m 6m 70m 80° 2m 3m 4m See Enlargement 30 m Reef Drive Downdip Single Raise Reef Drive layout
Footwall Drive Mining Mining Direction Direction ASG 105 m PILLARS Mined Out Area Unmined Area See Enlargement 200 m 210 m Enlargement 1 0 m 4 m 4 m 30 m 8 m Footwall Drive Cross Cut Muck Bay Breast Footwall layout Travelling Way & SO
Breast Footwall layout
Current mine design
Current mine design – North shaft
Production sources (000’s tons per month) Production area 2005 2006 Steady state North Shaft 80 100 120 South Shaft 60 81 120 Hill 35 38 - Mid Shaft 10 14 - Low grade dev. 25 - - TOTAL 210 233 240 29
Production
Conversion to footwall strike development & breast stoping Development required to generate ore reserves Breast mining Dip mining Footwall drives Twin raise & reef drives Required to Required to replace 50 000 replace 50 000 m²/metre m²/metre m² m² m²/ Total Dev 53 935 17 2 874 m²/ Prim.- R/W, TW, 108 463 22 2 272 BH & Diag m²/ Prim.- Large Ends 106 472 83 602 � 60% of stoping on breast by end 2006, 95% by end 2007 � 100% reef drives in footwall by end 2008 31
Total primary development metres / month (Excludes # Sinking) 3,500 3,000 2,500 Metres 2,000 1,500 1,000 500 0 '03 '04 H1 05 3,184 2,002 2,108 History � 2003 to 2004 reduction due to single raise dip mining � At steady state breast requires less development than dip to generate the same ore reserves
Immediately Available Reserves (Raises Holed) 20 18 17.8 17.3 18 16 14 12 12.1 months 10 8 7.7 6 4 2 0 2004 2005 * 2006 2007 2008 * Revised dip method increased rate of ore reserve build up � Includes depletion of Hill and mid shaft areas � Transition to 100% underground production
Face length build-up 10,000 9,000 8,000 7,000 Metres 6,000 5,000 4,000 3,000 2,000 1,000 0 Aug '05 'Mar '06 'Sep '06 'Jun '07 Immediately available (Holed) Available for equipping (Holed + Ledged) Immediately stopable (Holed + Led. + Equip.) Resourced ( Stoping) � Planned ratio – stopable: stoping 1,5:1 by end 2006
Monthly area mined (m 2 ) 40,000 35,000 30,000 25,000 m² 20,000 15,000 10,000 5,000 0 '03 '04 H1 05 22,195 34,842 37,486 History � Planned steady state – 100% underground at 50 000m 2 / month
Stoping width 115 110 105 100 cm 95 90 85 80 '03 '04 H1 05 113 103 105 History � Steady state mine average planned at 102 cm by end 2006
Average Tons Milled per month 250,000 200,000 Tons milled 150,000 100,000 50,000 - 2002 2003 2004 H1 05 75,545 44,323 22,886 38,124 Other Sources 119,455 157,427 174,114 181,543 HG UG2
Grade 5.00 4.00 3.00 g/t 4E 2.00 1.00 0.00 2002 2003 2004 H1 05 2.52 3.23 4.09 4.13 Built Up Grade � Includes low grade ‘other’ sources – depleted by end 2005 � Current underground average grade 4,45 g/t
Plant 4E Recovery 90.00% % Recovery 4E 85.00% 80.00% 75.00% 70.00% 2002 2003 2004 H1 05 80.50% 83.60% 84.00% 84.09% 4E Recovery ● Steady state planned recovery 86% ● Achieved 240 ktpm in May 2005 ● Expert systems in place – circuit optimisation ongoing
Equivalent refined Pt Oz / month 11.00 10.50 10.00 9.50 Pt Oz's (000's) 9.00 8.50 8.00 7.50 7.00 6.50 6.00 '03 '04 H1 05 7.67 9.52 10.69 History
Operating costs Operating costs
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