Slide 1: Investor Site Visit - Magareng Mine - 10 November 2017
INVESTOR SITE VISIT MAGARENG MINE - 10 NOVEMBER 2017
Slide 2: Legal notice/disclaimer
Legal notice/disclaimer This presentation is published solely for informational purposes and does not constitute investment, legal, tax or other advice nor is it to be relied upon in making an investment decision. Information contained herein has been taken from sources considered by Merafe Resource
Slide 3: Itinerary
Itinerary • 09:00 – 09:30 Arrival, welcome and Presentation • 09:30 – 09:45 Induction • 09:45 – 11:30 Change and depart for Underground visit • 11:30 – 11:45 Plant drive through • 11:45 – 12:00 Refresh from underground visit • 12:00 – 12:30 Lunch and Q&A • 12:30 – 13:00 LION smelter presentation • 1
Slide 4: Presentation
Presentation • HSEC • Background • Mine layout • Mining methodology • Ore processing and products 4 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 5: Safety: major risks and behaviours
• Your safety is important to us • SAFEALLOYS • 9 Life saving behaviours • Fatal hazard protocols • Major Risks: – FOG/Strata Control – TMM – Electricity and Lockout – Conveyors – Fire/Explosion – Working at heights • Behaviour Based Safety System (Meerkat) • We Work Safe – One Day At A Time 5 Meraf
Slide 6: Background: Location and geology
Background • Location and geology 6 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 7: Background (cont.) - History of chrome mining
Background (cont.) • History of chrome mining – World’s largest known layered intrusion (Bushveld Complex) – Thirteen chromite seams in the upper and lower critical zones 7-LG’s, 4-MG’s, 2-UG’s. – Chromite – discovered in S.A. in 1865 by Carl Mauch in the Hex River near Rustenburg. – Mining chromite
Slide 8: Background (cont.) - Geology stratigraphy
Background (cont.) • Geology - stratigraphy 8 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 9: Background (cont.) - Location
Background (cont.) • Location 9 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 10: Background (cont.) - Thorncliffe, Helena, Magareng mines
Background (cont.) • Thorncliffe mine: Started – 1997 • Rom 115 000 tons per month • Helena mine - Started – 2004 • Rom 110 000 tons per month • Magareng Mine – Started – 2008 • Rom 115 000 tons per month 10 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 11: Background - Chromite seams mined
Background – Chromite seams mined • Mining the MG1 and UG2 seams on the Eastern and Western limb of the bushveld complex • The mining width varies from 170cm to 240cm • Dip (inclination) varies from 9° - 16° below the horizontal • Internal waste and lenses in the reef up to ±90cm • MG2 and other MG’
Slide 12: Background (cont.) - Mine site 2008
Background (cont.) • Mine site 2008 12 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 13: Background (cont.) - Opencast development
Background (cont.) • Opencast development 13 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 14: Background (cont.) - Opencast stabilisation
Background (cont.) • Opencast stabilisation 14 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 15: Background (cont.) - High walls and main decline development
Background (cont.) • Completed high walls and start of main decline development 2010 15 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 16: Background (cont.) - Project timeline
Background (cont.) • Started project in 2008 • First sinking commenced in 2010 • Mining ramp up and plant construction from 2012 • Production build up to capacity from 2014 • Current production on 115 000t run of mine and plant feed 16 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 No
Slide 17: Life of Mine including Richmond (deeper reserves)
Life of Mine including Richmond (deeper reserves) 17 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 18: Mine layout
Mine layout • Trackless bord and pillar mine, all excavations on reef • Reef width of 1.7m and mining height of 2.0m • Main sinking comprising of 4 cluster declines, 6m wide • Stoping sinking comprising of 4 cluster declines, 6m wide • Stoping sections with 12 x 8m bords per section serviced by 2 st
Slide 19: Mine layout (cont.)
Mine layout (cont.) Adit / portal Ventilation shafts Declines – Ledging Vehicle Conveyor Chairlift Access ledging Sections of 12 Panels Panels 19 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 20: Mine layout (cont.)
Mine layout (cont.) 20 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 21: Mining methodology
Mining methodology • Triple decline shaft systems from surface • All development and mining done on Reef horizon • Low Profile Mechanised Room and Pillar Mining • Mechanised Drilling and Loading • Tips with vibratory feeders and herringbone Conveyor network system to transport ore • Monitoring Syste
Slide 22: Basic mining equation
Basic mining equation • Mining Cycle: – 3 shifts per day – 22 working days per month – One blast per day – end of day shift – Blast clearance/re entry of 2 hours – Production sections of 12-16 panels dedicated to a drill rig section: • Cleaning – 3,5 ton lhd • Drill and install support – remote auto
Slide 23: Support installation
Support installation 23 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 24: Drill rig - panel drilling
Drill rig – panel drilling 24 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 25: Charged up panel for Blasting
Charged up panel for Blasting 25 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 26: Load haul dumper
Load haul dumper 26 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 27: Underground tip
Underground tip 27 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 28: Underground conveyor
Underground conveyor 28 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 29: Ore flow diagram
ROM IS STORED ON A LIVE 1500 t STOCKPILE CRUSHED ROM IS STORED ON A 7000 t LIVE ROM FEED FROM UNDERGROUND AND CRUSHED STOCKPILE ROM IS FED INTO PREPARATION PLANT AND SORTED INTO LUMPY AND CHIPS Ore flow diagram SPIRALS BUILDING MILLING AND CFC BUILDING LUMPY AND CHIPS FRACTIONS ARE TREATED IN THE HM
Slide 30: Chrome products produced
Chrome products produced 30 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 31: Eastern Chrome Mines Production Capacity/month
Eastern Chrome Mines Production Capacity/month 31 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017
Slide 32: Questions
Questions 32 Merafe Resources Ltd | Investor Site Visit – Magareng Mine 10 November 2017