Heritage Cases

The applicant, Kareelaagte Diamante (Pty) Ltd, commissioned a EIA process as required by the National Environmental Management Act (NEMA) (Act No.107 of 1998) for a PR combined with a Waste Licence Application for the prospecting of Diamond, Diamond (Alluvial), Diamond (General) and Diamond (In Kimberlite) near Ottosdal on a portion of Portion 34 (Excluding the 4.95Ha Mining Permit) of the farm Humanskraal 346, Registration Division: IO, North West Province. This portion is proposed due to the expected Diamond, Diamond (Alluvial), Diamond (General) and Diamond (In Kimberlite) mineral resources/reserves. Kareelaagte Diamante (Pty) Ltd requires a PR in terms of the NEMA and the Mineral and Petroleum Resources Development Act (Act No. 28 of 2002) (MPRDA) to mine Diamond, Diamond (Alluvial), Diamond (General) and Diamond (In Kimberlite) within the Tswaing LM, North West Province (refer to a Locality Map attached in Appendix 2). During the resource estimation phase of a potential alluvial diamond project, the three main parameters to be determined are the gravel volume, diamond grade and diamond value. Combinations of ground geophysical surveys, drilling (including augering), pitting, trenching and bulk-sampling are used to increase the knowledge and confidence of the underlying geology to estimate a resource as defined in any of the international resource/reserve estimation codes. The following phases have been identified to assist in determining the diamond gravel volume, diamond grade and diamond value: Phase 1 – Site visit Kareelaagte Diamante (Pty) Ltd will appoint Mr Tim Vermaakt (Guyron) as the project geologist and Mr Danie Labuschagne (Kuhle) as the Environmental Specialist to commence with the site visit phase. These specialists and the applicant will conduct a site visit within 90 days after the execution of the proposed prospecting right. It is expected that one or more site visits will be conducted throughout this phase and the various phases that will follow hereafter. The main purpose of the site visit is to assist Kareelagte Diamante (Pty) Ltd to become familiar with the surrounding environment, the sensitive areas, the underlying soil and geology before invasive prospecting activities commence. During this process, Kareelaagte Diamante (Pty) Ltd and its appointed specialists will also assess and review all the information available concerning the underlying geology of the proposed prospecting area. Phase 2 – Desktop Studies A desktop study phase will commence after the above-mentioned site visit(s) and analysis was completed to determine the areas that should be targeted through the proposed prospecting. This includes the identification of any infrastructure to be erected, any potential problems that may arise and to be addressed. The desktop phase involves reviewing various literature, interpretation of aerial photographs, GIS data (BGIS-SANBI), satellite images (Google Earth), geological maps and ground validation of targets. A detailed preliminary study of the underlying and surrounding environment will be obtained, which will improve the efficiency of the project and cost by providing a clearer understanding of the challenges that may surface. Upon completion of this phase, Mr Tim Vermaakt (Geologist) will compile a report that captures the results of the analysis. Phase 3 – Pitting Making use of the trial pit/test pit or inspection pit investigation method is a highly effective way to obtain data on the underlying surface soil and geological conditions of the prospecting right area. It allows the specialists to log and sample the various soils and geological layers and to make a preliminary assessment. The trial pit/test pit or inspection pit will be excavated, logged, sampled and backfilled. To excavate these pits, Kareelagte Diamante (Pty) Ltd will make use of the advised methods of Mr Tim Vermaakt (Geologist). Kareelaagte Diamante (Pty) Ltd will be in possession of the following information after completing the pitting phase: a brief description of the soil and geological layers from the surface to the base of the pits; a record of rock head and refusal depth; an indication of where trenches should be excavated to obtain bulk-samples; an indication of where groundwater is expected to be intersected; a general indication of the underlying geology and the associated conditions in the vicinity of the test pits. 45 pits at an extent of 3m (length) x 3m (breath) x 4m (depth) are planned. • (45 pits/24 months) x 12 months= 22 pits to be dug per year • Total area to be disturbed per year= 22 pits x (3m x 3m)/10 000= 0.0198 Ha disturbed per year • Total area disturbed for 24 months= 45 pits x (3m x 3m)/10 000= 0.0405 Ha disturbed for 24 months Phase 4 – Trenches The only reliable method of grade estimation is through bulk sampling and the direct measurement of carats per volume processed. In addition, limited sampling (both numbers of samples and volume of individual samples) can result in spurious grade results. Systematic bulk sampling is essential to the effective evaluation of alluvial diamond deposits. Since the geology can vary significantly from one alluvial diamond deposit to another, it is not possible to prescribe drill grid parameters (for the estimation of gravel volume) or the number or size of samples (for grade estimation). By making use of the bulk-sample method, Kareelaagte Diamante (Pty) Ltd will be able to determine the grade of alluvial diamond deposits. The grade of a diamond deposit is the estimated number of carats contained in one hundred tonnes (cpht) or hundred cubic metres (ct/100 m3) of gravel. During these activities, Kareelaagte Diamante (Pty) Ltd will determine the size and value distribution of the planned trenches. Alluvial streams are highly transient environments and therefore the diamond distribution patterns of alluvial deposits vary to such a nature that there is no repeatability of sample results even from adjacent samples. Given the extent of the area and the expected grades, Kareelaagte Diamante (Pty) Ltd will have to process bulk samples of approximately 40 000 tons per month. Mr Tim Vermaakt (Geologist), will advise Kareelaagte Diamante (Pty) Ltd on where the proposed trenches should be excavated. Unlike the case of drilling, bulk samples will not be taken along a systematic grid. After the grades (cpht) and the diamond size distribution has been determined, the diamonds will be sold to determine the value of the diamonds. The method that will be used is that of the so-called “plant/bulk sampling technique”, which is typical to that of the South African alluvial diamond mining industry. The method/technique to be followed are as follow: • Vegetation will be cleared from the planned/identified bulk sampling area before excavation commences. This will be done as per the environmental regulations and through supervision by the appointed Environmental Specialist (Kuhle Environmental Consult (Pty) Ltd. Overburden and topsoil will then be removed and stockpiled, as per the EMP, for rehabilitation purposes. • The bulk samples will be “box form” excavations. The dimensions of these individual “box form” excavations will approximately be 40m long x 12m wide. It is estimated that the depth of each bulk sample will be 4 m in depth. • Gravel will be excavated, removed and loaded directly onto dumper trucks by excavators. The excavated gravel will then be hauled to the on-site screening plant. The material will be screened where after the screened material will be transported to the on-site processing plant, where the gravel will be processed by making use of 2 x 16ft washing pans. Concentrate will be moved to the Flowsort plant where the concentrate will be sorted. • The oversize material and tailings recovered from the plant will be used as backfill material before final rehabilitation. Rehabilitation includes backfilling of trenches and rehabilitation of the tailings facility (evening the slopes and planting vegetation) The equipment used for the bulk-sampling operation will be conventional open pit mining equipment compromising dumper trucks, excavators and front-end-loaders. All equipment is planned to be diesel driven. 45 trenches at an extent of 40m (length) x 12m (breath) x 4m (depth) are planned. Total area to be disturbed per year= 22 trenches x (40 m x 12 m)/10 000 = 1.056 Ha disturbed per year. Phase 5 – Interpretation and Consolidation of Results & Data The abovementioned prospecting activities will have to be conducted to determine an “Inferred Resource” and an “Indicated Resource”. It is usual for an alluvial diamond project to progress from ‘‘Exploration Results’’, through ‘‘Inferred Resource’’ to ‘‘Indicated Resource’’ classification. Unlike the “Indicated Resources” the “Inferred Resource” has a lower level of confidence. The “Inferred Resource” indication will be where the geological and or grade continuity could not be confidently interpreted. It cannot be assumed that an “Inferred Resource” will necessarily be upgraded to an “Indicated Resource”. Such a resource is normally also not sufficient to enable an evaluation of economic viability. The industry standard for resource estimation on alluvial diamond mines is to estimate some two/three years of Indicated Resources and multiple years of Inferred Resources. As these are consumed, there is a continuous cycle of resource rollover (where continuous prospecting upgrades existing “Inferred Resources” to “Indicated Resource” status to take the place of such resources which have been mined). Typical parameters for ‘‘Indicated Resources’’ classification include: • Sufficient drilling to generate a 3D model based on well constrained geology; • Extrapolation only within similar geological environments to distances determined by the geology of the deposit (typically, this distance may be up to 250 m, but may also be as low as 10 m in specific instances); • Sufficient bulk sampling to take account of all the key geological variables expected from the deposit in question (and to recover the required number of carats for valuation or sale). • The recovery of 3,000–5,000 cts of diamonds for valuation (or sale) to estimate diamond value. The appointed project geologist and environmentalist will monitor the Prospecting Work Programme, consolidate and process the data, and amend the Prospecting Work Programme depending on the results received after each phase of the Prospecting Work Programme. Any updates or amendments will be communicated to the Department of Mineral Resources and Energy. Each invasive prospecting phase of the Prospecting Work Programme will involve a post-desktop study, which will include the interpretation and modelling of all the collected data. These results that were obtained will determine how the Prospecting Work Programme will be proceeded with in terms of the activity, quantity, resources, expenditure and duration. A GIS Geo/File database will be generated to capture all the exploration/prospected data. All data will be consolidated and processed to determine the diamond-bearing resource on the property.