I NTERNATIONAL R OADSHOW J UNE 2014 June 2014 | 1 F IVE +100- CT P - - PowerPoint PPT Presentation
S TRATEGIC V ISION IS U NFOLDING : M IDDLE O RANGE R IVER O PERATIONS G ROWTH P LAN I NTERNATIONAL R OADSHOW J UNE 2014 June 2014 | 1 F IVE +100- CT P OLISHED D IAMONDS P RODUCED W ORLDWIDE IN 2013: T WO WERE R OCKWELL D IAMONDS F ROM :
1 June 2014 |
2 June 2014 |
FROM: 160 carat typical MOR yellow recovered from SHC in September 2013 TO: Cushion cut 109 carats vivid yellow FROM: 287-carat commercial colour (tinted white), makeable recovered from Saxendrift Extension in November 2013 TO: Cushion cut 109 carats in progress + 26.33 carat round K VVS2 stones produced (in progress)
3 June 2014 |
STOP PRESS! Large stones recovered from Saxendrift (29/30 May 2014) 103 carats 56 carats
4 June 2014 |
70 carats Saxendrift Extension August 2013
5 June 2014 |
Share price (24 May 2014) C$0.30 / ZAR3.30 Market Capitalization (24 May 2014) C$14.5m / ZAR176.6m Cash balances (28 Feb. 2014) (C$1.8m) Debt C$8.6m Shares outstanding 53,523,244 Warrants
4,836,431 Convertible Debt (~$0.16) C$2.0m / 12,235,686 Fully Diluted 70,595,361
Diacore 19% Conus 10% Africa Vanguard Resources 8% Godia 7% Earth Resources 7% Middle East Investors 6% Management 2% Mark Bristow 2% Wells Capital 1% Craton Capital 1% Other 37%
1.0 1.5 2.0 2.5 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Rockwell (TSX) Rockwell (JSE) HSBC Global Mining Diamonds Index
6 June 2014 |
Board of Directors: Dr Mark Bristow (Chairman) Stephen Dietrich Willem Jacobs Richard Linnell Richard Menell Johan van’t Hof A leading international diamantaire and specialist in valuation, marketing and sales of rough diamond production from alluvial deposits.
Diamond Marketing & Sales Manager Jeffrey Brenner
Geological, mineral resource management, production and technical experience in alluvial diamond deposits, diamond and coal exploration. Qualified person and Pr.Sci.Nat.
Group Technical Manager Glenn Norton, BSc (Hons)
Seasoned diamond executive with career spanning over 20 years at De Beers and 4 years as Managing Director of African Diamonds plc. FIMMM, C.Eng, C.Sci and Pr.Sci.Nat.
President and CEO James Campbell, BSc (Hons ) ARSM, MBA (Dunelm)
15 yrs in investor relations and corporate development. Worked as a sell side analyst and in-house IRO across various industry sectors.
Corporate Development Stéphanie Leclercq BSc, CFA
Mining and corporate experience with junior and senior mining companies with operations in SA, Australia and
mining Companies.
CFO Gerhard Jacobs, BAcc, MBA Group HR/IR Manager Richard Mhlontlo, Nat Dip (HR Management & Development)
Extensive HR & Industrial Relations management experience including
initiatives as well as strategy development and implementation. Expert in economic diamond metallurgy, contracted to Rockwell.
Dr Kurt Petersen, Ph.D. (Stellenbosch)
7 June 2014 |
Exploration pitting at SHC: A method used to evaluate the quality of gravel to be mined
James Campbell (CEO) and Wikus de Winnaar (GM: MOR Operations) at a trench such as the one where the Alana was eventually found
SOLD – MARCH 2014!! The 109 carat Alana stone: Fancy yellow, no visual flaws and octahedral shape At the cutting factory the stone was analyzed in 3D to identify the best cuts and value for recovery from the stone The SHC processing plant: Gravel is screened and prepped before processing through the Bulk X-ray sorters Liberating the gravels
Mining the gravels
Large boulders act as trap sites Loading and hauling the gravel
The people on the team
Penelope Mohale (Mining Geologist) and Mulalo Ndwammbi (Mining Manager: SHC): Responsible for geology and mining when the Alana was recovered. Location of the Alana
Locating the right mining area
Large stone plots : Used to determine the possible location
The Alana: 169 carats (13 September 2013)
Looking for the Alana Finding the Alana (August 2013) Recovering the Alana (September 2013) Polishing the Alana Selling the Alana (March 2014)
Mining the gravels
Geological daily report: Description of the gravel containing the Alana Mulalo examines the pit the day before the discovery
Mining Observations Mining continued on the Eastern portion of the block. Please note that there is still a lot of stockpile on the pad (from previous day). Most of the stockpile from the pit has been tipped at the back of the BV pad stockpile and a small portion has been tipped in front of the pad. One dozer operational in the pit. Geology Observations Gravel description Calcretisation Bedrock Description GMx % Sand % Clast Types Clast Sizes Block B6/C6 43% Pebble - Qtzites, VL, BIF, Chert, Jasper, basalt, zeolite Yes Dwyka Mining continues on the Eastern portion of the block. Most of the Upper coarse gravel is included with the gravel. There is still high percentage of basalts and zeolites in the matrix. The BIF percentage still high within the basal gravel with boulders 8 June 2014 |
ROUGH 77 ct makeable, Saxendrift Extension (2012) 145 ct makeable, old Saxendrift tailings (2012) 105 ct Type II A, Middle Orange (2009) 169 ct yellow, Saxendrift Hill Complex (2013) 128 ct yellow, Middle Orange (2011) POLISHED 37 ct J color round brilliant, VS2 30 ct stone being
pieces to be polished 35 ct D color internally flawless Sold for $230,000/ct 109 ct vivid yellow 81 ct vivid yellow BENEFI- CIATION VALUE ADD +34% on initial rough sale price Currently being polished +62% on initial rough sale price +61% on initial rough sale price Not yet sold
9 June 2014 |
116 carats SHC August 2013
10 June 2014 |
4.2% and 5.1% p.a. until 2023 (Bain & Co.)
correlate long-term
anticipated: Both up and down
5 10 15 20 25 30 35 40 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F Polished diamond demand: Value of the diamond content in the jewellery retail sales Rough diamond demand (Bain & Co. base case) Rough diamond demand (Bain & Co. lower case) Trendline for the polished demand based on 2003-2012 data CAGR (2003-12): 4.8% CAGR (2012-23): 5.1% CAGR (2012-23): 4.2% Source: DMM Advisory Group Analysis, IDEX, Tacy, Bain & Co.
Deviation from the long term trend Polished demand Rough demand
195-205 230-240 320-330 470-480 610-620 855-895 980-990 1,010-1,020 365-375 315-325
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: NBF Research; Metals Economic Group
CAGR 26% CAGR
11 June 2014 |
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Diamond producers Rough diamond trading Diamond manufacturing (cutting and polishing) Polished diamond trading Diamond jewellery manufacturing Diamond jewellery retail
16-20% 1-3% Sequence in the diamond pipeline 2-5% 1-4% 3-5% 4-14% Highest margin in the pipeline
Source: DMM Advisory Group Analysis, Bain & Co.
12 June 2014 |
287 carats Saxendrift Extension November 2013
13 June 2014 |
* Indicative quarterly revenue and +50 carat stone production based on technical reports
MINES QUARTERLY
REVENUE*
# +50 CARAT
STONES PER YEAR*
110,000m3 340,000m3 500,000m3 MONTHLY MOR
THROUGHPUT
Saxendrift 110,000m3 / month Saxendrift 160,000m3 / month SHC 80,000m3 / month Niewejaarskraal 100,000m3 / month Saxendrift 160,000m3 / month SHC 80,000m3 / month Niewejaarskraal 100,000m3 / month Wouterspan (phased) 150,000m3 / month
Time Revenue Time Revenue Time Revenue
14 June 2014 |
C & M
tion ($7.5m PP + $6.5m sale of assets)
IFS + BV Projects approved
strengthened
implemented: Saxendrift + Klipdam
partnership unwound
acquired
Pilot start-up
Construction commenced
Rightsizing
completed
Royalty mining
ramp up started
Erf 2004: Sold
completed
Out of C&M
+100 carat stones in MOR
commenced
carat stone in MOR
partnership concluded
phase II
Implementation phase
announced
15 June 2014 |
ACHIEVED SHORT-TERM GOAL
production
capacity of 340,000m3
MULTIPLE MINING FACES ON ALL RESOURCES
PRODUCED FIVE +115CT ROUGH DIAMONDS
AVERAGE STONE SIZE +139% IN Q4
mines
from one MOR mine
LARGE DIAMOND RECOVERY RATE IN Q4
carat diamonds
VOLUMES PROCESSED UP 46%
EFFECTIVENESS OF BULK X-RAY CONFIRMED
processing Saxendrift Extension gravels at SHC Bulk X-ray
plant
LOSSMAKING KLIPDAM MINE SOLD
new processing plant at Niewejaarskraal
100,000M3 P.M. PLANT AT NIEWEJAARSKRAAL
ramped up
system
+VE RETURNS FROM 20 ROYALTY MINING
STRATEGY
16 June 2014 |
PRODUCTION SALES AND INVENTORIES VOLUME (MILLION
M3)
CHANGE (%) CARATS CHANGE (%) PRODUCTI
ON COSTS
($M) CHANGE (%) VALUE OF SALES (US$) CHANGE (%) SALES (CARATS) CHANGE (%) AVERAGE
VALUE (US
$ / CARAT) CHANGE (%) INVENTORY (CARATS) OWN OPERATIONS** 2.7
14,222
39.2 +25 29.5 +34 13,782
2,143 +73 1,571 CONTRACTORS’ MINING 1.1
1,181 TOTAL: COMPANY
PROPERTIES
3.8 +28 27,776 +27 39.2 +25 10.7 +43 26,272 +27 1,484 +13 2,572
** Comprising Saxendrift, SHC and Niewejaarskraal in F2014 (F2013: Saxendrift, Klipdam and Tirisano) * Company-owned properties
17 June 2014 |
High quality MOR production: 116 carats, 37 carats and 33 carats August 2013
18 June 2014 |
Ventersdorp Middle Orange River
19 June 2014 |
20 June 2014 |
STATUS OPERATION GRADE* (CARATS / 100M3) PROCESSING RATE (M3/MONTH) CARAT VALUE* (US$) LIFE OF MINE (YEARS)** STEADY STATE UNIT COST IN PRODUCTION SAXENDRIFT + SAXENDRIFT EXT. 0.45 - 0.51! 160,000 ! 2,300! 7!
SAXENDRIFT HILL COMPLEX 0.51! 80,000! 2,400! 1.5!
US$7.50/m3
NIEWEJAARSKRAAL 0.6! 100,000! 2,600! >10!
US$9.50/m3
JV IN RAMP UP KWARTELSPAN 0.76 36,000 2,400 1.5 "! EVALUATION WOUTERSPAN: PEA COMPLETED 0.62! 350,000! 2,300! >10! "! ZWEMKUIL & SURROUNDING FARMS 1.35!
2,000! "! "! ROYALTY MINING TIRISANO: 5x ROYALTY MINING CONTRACTS 0.45 - 0.63! 160,000 ! 668! >18! "!
* Based on the Company’s approved internal budgets for F2015 ** LOM based on NI43-101 report, excludes any future exploration potential
21 June 2014 |
Revenue/m3: US$12.4 in F2014 ♦ Average price per carat: US$2,194: up 14% ♦ 9,059 carats sold: up 16% ♦ $19.9m revenue from diamond sales: up 32% Mining cash cost/m3 : US10.9 in F2014 ♦ Longer hauling distance: Mining Saxendrift Extension ♦ Higher EMV maintenance costs Production volumes down 10%: Carat production up 12%to 9,338 carats ♦ Higher grades at Saxendrift Extension ♦ Lower earthmoving availabilities ♦ Slightly lower processing rate to increase plant efficiency EMV fleet renewal programme in progress: ♦ To address low earthmoving availabilities and aging fleet Way forward: ♦ Contract signed with Eqstra: Managed maintenance lease on second hand equipment ♦ Continued focus on managing unit costs ♦ Complete EMV renewal plan ♦ Reviewing plant capacity: Increase to ±180,000m3 per month off EMV improvements * Including Saxendrift Extension
22 June 2014 |
Challenge
Objective
Investigation
Implementation
23 June 2014 |
Revenue/m3: US$11.7 in F2014 ♦ Average price per carat: US$2,781 ♦ 2,945 carats sold: High quality diamond recoveries ♦ $8.2m revenue from diamond sales Mining cash cost/m3: US$10.0 in F2014 Production volumes reached nameplate capacity ♦ Impacted by earthmoving availabilities: 697,102m3 processed in F2014 ♦ Managed processing rate to optimize plant efficiency ♦ Carat production on plan: 3,363 carats in F2014 Way forward ♦ Address mechanical failures in front end: Impact on Q1 F2015 production ♦ Contiguous exploration at Saxendrift Extension ♦ Reviewing redeployment of plant: 1.5yr Mine Life
* Refer to Appendix for detailed technical information Fit-for-purpose plant design: Internally funded ($1.4m) 80,000m3/month capacity (@5mm bcos) 2 x Bulk X-ray + single particle sorters Lower environmental impact: Less water + power 2-month payback: Revenue from first 2months’ production
24 June 2014 |
* Refer to Appendix for detailed technical information Rapid and low cost implementation of new mine Capex funded from proceeds of Klipdam sale Phase I (60,000m3/month): Completed in 10 weeks: DMS ($2.5m) Phase II (100,000m3/month): Completed Feb. 2014: IFS + Bulk X-ray system ($1.2m) Revenue/m3: US$2.7 in F2014: Lower volumes during commissioning phase ♦ Average price per carat: US$1,107: Consistent with current stage of production ramp up ♦ 746 carats sold ♦ $0.8m revenue from diamond sales Mining cash cost/m3: US$23.6 in F2014 ♦ Impact of lower volumes during commissioning phase ♦ Included some ramp up costs + plant improvements
Plant handed over to operations in September 2013
♦ 301,509m3 processed in fiscal 2014: Ramp up completed in March 2014 ♦ Lower initial grades: Mining an adjacent property (blasting and drilling) in Q3 ♦ Carat production gaining momentum: 986 carats
Way forward:
♦ Bed down contract mining: Commenced March 2014 ♦ Consolidate processing at name plate capacity ♦ Exploration to upgrade resource from inferred to indicated category
25 June 2014 |
Resource**: 5.0 million m3 indicated + 37.8 million m3 inferred ♦ Similar geology + carat value to Saxendrift ♦ Forecast grade (carats/100m3): 0.62 at 5mm BCOS ♦ 10yr LOM Viable economics: Sufficient to proceed to detailed design ♦ IRR between 45% and 70% ♦ NPV of $91.71m (at 15%) ♦ $42m capital cost (incl. 25% contingency) ♦ 5% revenue variance over LOM: 15% impact on NPV Based on plant with 350,000m3 / month capacity ♦ 2x Bulk X-ray systems (coarse and mid-sized gravels) + 1x DMS stream (fines) Phased implementation options under consideration ♦ 150,000 m3 / month ♦ Preference to fund internally
* Glenn A Norton, Pr. Sci. Nat., Group Technical Manager and Walter Bold, Pr. Eng., Group Engineer for Rockwell are responsible for the May 2013 PEA ** Refer to Appendix A for detailed technical information
ORANGE RIVER M a r c h 2 8 J a nuary 2008 F e b r u a r y 2 8 J a nuary 2008 Febr uary 20 08 Febr uary 20 08 Apr i l 2 008 Apr i l 2 008 Apr i l 2 008 J u ly 2008 J u ne 200 8 J u n e 2 8 1 AU G U ST 2008 AU G U ST 2008 J U LY 2008 AU G U ST 2008 SE PT EM BE R 2008 SE PT EM BE R 2008 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA BB CC DD EE FF GG HH II JJ KK LL NN 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A B C D E F G H I J K L M OO PP 1 3 9 90 9 9 9 95 9 9 5 9 95 9 9 5 9 95 9 95 9 85 9 85 9 8 5 9 8 5 1 010 1 005 1 005 1 5 1 005 1 5 1 005 1 5 1 005 1 5 1 5 1 1 000 9 8 9 80 1 1 1 1 000 1 9 9 9 90 9 90 9 90 9 90 9 90 1 000 1 000 9 85 9 85 9 85 9 85 9 8 5 9 85 9 80 9 80 9 80 1 010 1 010 1 1 1 010 1 010 1 015 1 015 1 1 5 1 015 1 2 1 2 1 020 1 020 9 8 9 80 9 8 9 8 9 80 9 7 5 9 75 9 8 5 9 8 5 9 8 5 1 010 1 010 1 1 5 9 8 9 8 9 80 9 85 9 80 1 010 9 85 9 7 5 9 85 9 70 9 8 5 PORTION 16 LANYON VALE 376 PORTION 9 LANYON VALE 376 PORTION 10 LANYON VALE 376 PORTION 24 LANY ON VALE 376 A N N E X B R A K F O N T E I N 2 4 K A L K K R A N S 4 1 BRAKFONTEIN 23 ANNEX BRAKFONTEIN 24 PORTION 14 LANYON VALE 376 PORTION 9 LANYON VALE 376 PORTION 15 LANYON VALE 376 PORTION 14 LANYON VALE 376 MM 29 30 31 32 33 QQ2Eldest palaeo channel O l d e r p a l a e
h a n n e l I n n e r y
n g e r p a l a e
i v e r c h a n n e l Older palaeo channel Eldest palaeo channel
800 1 600 400 Meters
Legend Wouterspan Channel Model Eldest palaeo channel Inner younger palaeo river channel Older palaeo channel
Wouterspan Channel Model
Name: Gary Dorkin
Location: WP
Date: 22 May 2014
Scale: 1:5000
Projection: Hartebeeshoek 94Datum: WGS 84
26 June 2014 |
Strategy deployed on areas that Rockwell does not wish to mine due to scale or other reasons Rockwell earns 12.5% royalty on revenue: Provides management framework, incl. security, for operations ♦ 13,554 carats produced + 12,490 carats sold in F2014: U$1.2m royalty Tirisano: Five royalty mining agreements in operation at year end ♦ C200,000 m3/month, achieving budget grades MOR: Contracts on smaller properties ♦ Royalty mining contract at Kwartelspan converted to JV in F2015 to increase return potential
27 June 2014 |
Saxendrift Extension gravels processed through SHC Bulk X-ray August 2013
28 June 2014 |
Insitu Lockup, Inefficiency Baseline Poor IFS Bivitec 5mm BCO Additional Throughput Improved Efficiency Beneficiation Current EMV Strategy BV Plant Retrofit Projected Margin (per Unit Time)
Design Margin 120k m3/month Rockwell Hits Bottom Pit to Recovery Diamond Value Mangement Productivity to Improve Technology Retrofit Bivitec Installed, 150k m3/month Design margin
29 February 2014 |
Projected production and revenue is shown for own operations. These are based on the Company’s latest internal budget information and the technical reports.
CATEGORY PROBABLE RESERVES INDICATED RESERVES INFERRED
RESOURCES
TOTAL VOLUME (M3) JULY 1, 2013 7,791,300 12,816,900 91,357,000 CARATS 35,060 66,218 849,054 950,332 VALUE (US$) MILLION 70 142 1,071 1,283
2 3 4 5 6 7 2014A 2015E 2016E 2017E 2018E 2019E
Niewejaarskraal Wouterspan Saxendrift Hill Complex Saxendrift
50 75 100 125 2014 2015 2016 2017 2018
30 June 2014 |
STRATEGIC ENABLERS LEADERSHIP Executive: >100 yrs diamond experience Board: Junior mining deal making BENEFICIATION Market prices +2.8 carat stones 50% profit share on polished stones SHAREHOLDING New BEE partner (ARH): +ZAR30m Supportive shareholder: Diacore ORGANIC ACQUISITIONS Diamond sector consolidation Evaluate targets Apply strategic filters IMPACT:
OBJECTIVE:
GROWTH STRATEGY Develop existing properties Implement fit-for- purpose technology Five +115 carat rough diamonds recovered by Rockwell: Middle Orange, Aug. – Nov. 2013
31 June 2014 |
32 June 2014 |
Bulk X-ray pilot project: 145 carats D-color recovered from old recovery tailings October 2012
33 June 2014 |
Except for statements of historical fact, this presentation release contains certain "forward-looking information" within the meaning of applicable securities law. Forward- looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include uncertainties and costs related to exploration and development activities, such as those related to determining whether mineral resources exist on a property; uncertainties related to expected production rates, timing of production and cash and total costs of production and milling; uncertainties related to the ability to obtain necessary licenses, permits, electricity, surface rights and title for development projects; operating and technical difficulties in connection with mining development activities; uncertainties related to the accuracy of our mineral resource estimates and
unexpected judicial or regulatory procedures or changes in, and the effects of, the laws, regulations and government policies affecting our mining operations; changes in general economic conditions, the financial markets and the demand and market price for mineral commodities such and diesel fuel, steel, concrete, electricity, and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the US dollar, Canadian dollar and South African Rand; changes in accounting policies and methods that we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates; environmental issues and liabilities associated with mining and processing; geopolitical uncertainty and political and economic instability in countries in which we operate; and labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate our mines, or environmental hazards, industrial accidents or other events or occurrences, including third party interference that interrupt operation of our mines or development projects. For further information on Rockwell, Investors should review Rockwell's annual Form 20-F filing with the United States Securities and Exchange Commission www.sec.com and the Company's home jurisdiction filings that are available at www.sedar.com. This presentation also uses the terms 'indicated resources' and 'inferred resources'. Rockwell Diamonds Inc. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility
inferred resource exists, or is economically or legally mineable. The securities of Rockwell being offered have not been, nor will be, registered under the U.S. Securities Act and may not be offered or sold within the United States or to,
an offer or sale of securities in the United States. Prior to making any investment decision, investors should consult a professional advisor.
33
34 June 2014 |
Four +100 carats recovered in Middle Orange River in August/September 2013
35 June 2014 |
Reserves
Mining area Terrace complex Bottom cut-off size Volume m³ Grade* ct/100m³ Value USD/ct PROBABLE RESERVES Saxendrift Brakfontein Hill (“BHC”) B1 terrace 5mm 6,921,600 0.40 2,400 INDICATED RESOURCES Saxendrift Brakfontein Hill (“BHC) B1 terrace 5mm 7,135,000 0.40 2,400 Saxendrift Hill # Saxendrift Hill (“SHC”) B2 terrace 2mm 1,774,600 1.15 2,300 Saxendrift Extension Saxendrift River (“SRC”) C3 terrace 5mm 1,303,400 0.60 1,884 Wouterspan Rooikoppie B terrace 2mm 5mm 614,400 0.70 0.62 2,029 2,300 Fluvial-Alluvial B terrace 2mm 5mm 3,858,800 0.70 0.62 2,029 2,300 Tirisano Undifferentiated Upper and Lower Gravel Packages 2mm 25,066,900 2.37 726 INFERRED RESOURCES Saxendrift Brakfontein Hill (“BHC”) B1 terrace 5mm 492,000 0.40 2,400 Saxendrift Hill Saxendrift Hill (“SHC”) B2 terrace 2mm 5mm 86,000 0.68 0.52 2,300 2,400 Saxendrift Extension Saxendrift River (“SRC”) C3 terrace 5mm 577,000 0.60 1,884 Kwartelspan Kwartelspan Complex (“KPC”) 2mm 5mm 500,000 1.00 0.76 2,300 2,400 Wouterspan Rooikoppie B terrace 2mm 5mm 5,911,000 0.70 0.62 2,029 2,300 Fluvial-Alluvial B terrace 2mm 5mm 31,863,000 0.70 0.62 2,029 2,300 Niewejaarskraal Rooikoppie A terrace 2mm 5mm 1,840,000 0.84 0.65 2,029 2,400 Fluvial-Alluvial A terrace 2mm 5mm 11,831,000 0.84 0.65 2,029 2,400 Rooikoppie B terrace 2mm 5mm 969,000 0.84 0.65 2,029 2,400 Fluvial-Alluvial B terrace 2mm 5mm 5,990,000 0.84 0.65 2,029 2,400 Tirisano Undifferentiated Upper and Lower Gravel Packages 2mm 15,334,000 2.37 726
#
Due to a lack of reliable data on SHC, the 5mm bottom cut-off size (bcos) values are not included at Indicated Mineral Resource classification. Diamond values (under “Values”) for BHC, SHC, KPC and Niewejaarskraal are based on a two-year moving average (from +10,000cts from The BHC terrace on the Saxendrift Mine at a 5mm bcos). Diamond values for SRC are based on the 5mm bcos sales data for FY2013 only. Diamond values for Wouterspan are based on extrapolation of FY2011 data at 5mm bcos. Tirisano data is at 29 February 2012. Resource and Reserve estimates completed by Rockwell’s Group Technical Director, GA Norton, (Pr. Sci. Nat.), a Qualified Person who is not independent
Note: The Indicated Mineral Resources on the BHC terrace of the Saxendrift mine are inclusive of the Mineral Reserves.