ARM’s method of reporting Mineral Resources and Mineral Reserves complies with the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code of 2016), the South African Code for Reporting of Mineral Asset Valuations (SAMVAL Code, 2016) and Section 12.13 of the JSE Listings Requirements.
The SAMREC Code of 2016 sets out minimum standards, recommendations and guidelines for Public Reporting of Exploration Results, Mineral Resources and Mineral Reserves in South Africa. It was launched and adopted by the Johannesburg Stock Exchange (JSE) in May 2016. The 2019 ARM Mineral Resources and Mineral Reserves Report is based on the SAMREC Code of 2016.
READ MORESalient features
The UG2 Reef Measured and Indicated Mineral Resources increased from 93.17 million tonnes at 5.61g/t (6E) to 98.19 million tonnes at 5.69g/t (6E) mainly due to the upgrade of some Inferred Mineral Resources in the Buffelshoek area where additional boreholes were drilled.
Mineral Reserves for the UG2 Reef decreased from 70.98 million tonnes at a grade of 3.50g/t (6E) to 64.97 million tonnes at 3.50g/t (6E) mainly due to mining depletion, an overall reduction in stoping height and allowance for pillars on major fault structures in the North Decline area.
The Indicated Mineral Resources for the Merensky Reef increased marginally by 1% to 75.73 million tonnes at 3.42g/t (6E) after updating of the Merensky Mineral Resources model. The Inferred Mineral Resources reduced significantly from 104.69 million tonnes at 3.90g/t (6E) to 61.39 million tonnes at 4.32g/t (6E) mainly due to exclusion of narrow and low-grade Merensky Reef falling below the thickness and grade cut-offs in the Buffelshoek area.
Mineral Reserves decreased significantly from 83.56 million tonnes at a grade of 0.31% Ni (72.34 million tonnes in the open-pit area and 11.22 million tonnes for the underground section) to 6.79 million tonnes at a grade of 0.30% Ni, open-pit Mineral Reserves due to the lower nickel price outlook, increased mining costs and increased waste stripping requirements that necessitated the change in the mining plan.
The Measured and Indicated Mineral Resources for Nkomati Mine, however, marginally increased by 2% from 172.20 to 175.74 million tonnes at 0.35% Ni mainly due to new geological information and updating of the Mineral Resources model.
The UG2 Reef Mineral Reserves increased from 42.27 million tonnes at 4.62g/t (4E) to 47.16 million tonnes at 4.34g/t (4E) due to the mining design changes and the addition of Doornbosch Mineral Reserves after acquisition of a portion of this farm was formally concluded during the year.
Measured and Indicated Mineral Resources decreased marginally from 97.64 million tonnes at 64.14% Fe to 95.67 million tonnes at 64.07% Fe mainly due to mining depletion. There was, however, an increase of 2.9 million tonnes in the Mineral Resources (Measured and Indicted) for Village pit, before depletion.
Mineral Resources and Mineral Reserves estimates were undertaken during the year for the low-grade jig and tailings stockpiles resulting in the declaration of a total of 15.05 million tonnes at 53.74% Fe of Measured and Indicated Mineral Resources, and a total of 14.26 million tonnes at 53.74% Fe of Mineral Reserves.
Gloria Mine Seam 1 Mineral Reserves decreased from 123.93 million tonnes at 37.75% Mn to 115.04 million tonnes at 37.41% Mn mainly due to a revised mining plan on the eastern portion of Gloria Mine where the geological boundary of Seam 1 was updated.
Nchwaning Seam 2 Mineral Reserves increased by 6% to 109.10 million tonnes at 42.73% Mn due to the increase in the depth to which Seam 2 could be mined based on geotechnical recommendations.
Mineral Reserves decreased from 447.13 million tonnes at 62.24% Fe to 433.44 million tonnes at 62.10% Fe primarily due to mining depletion of 20.11 million tonnes (ROM). The addition of 17.92 million tonnes at 61.95% Fe Probable Mineral Reserves at Mokaning South, which is being reported for the first time, partially offset the production depletion.
Coal Reserves (ROM) decreased by 1% to 290 million tonnes. This was mainly due to mining depletion of 9.3 million tonnes offset by an addition of 4.7 million tonnes Coal Reserves from the South pit.
Summary Mineral Resources and Mineral Reserves report