PLATINUM EXPLORATION

PLATINUM EXPLORATION

The Bauba Platinum Project, a high-quality platinum group metals (PGM) prospecting project, is situated within a prime segment of the Eastern Limb of the Bushveld Igneous Complex. The project lies in the heart of the world’s best-known platinum region, where a number of neighbouring companies are prospecting and mining platinum group elements (PGEs) successfully from the Merensky and UG2 reefs.

Bauba holds PGM mineral rights over eight properties that extend across approximately 14 390ha. All of the Bauba properties lie within the Leolo mountain range in the Limpopo province, some 40km northwest of the town of Steelpoort and 245km northeast of Johannesburg. The properties are grouped into the Northern and Southern Clusters.

LEGAL TENURE & AGREEMENTS

Bauba exercised its right to apply for a Retention Permit prior to the lapse of its Prospecting Right over the Northern and Southern Cluster farms. The Retention Permit was accepted by the Department of Mineral Resources in 2015. Bauba is now in the process of applying for a mining right over the 8 farms.

GEOLOGY AND MINERALISATION

REGIONAL AND LOCAL GEOLOGY

The Bauba Platinum Project prospect areas are largely underlain by the Main Zone and to a lesser extent the Upper Zone mafic layers. The Main Zone is underlain by the Critical Zone, which hosts the world’s largest economic platinum group elements (PGE) resources in the Merensky and UG2 Reefs.

The Merensky Reef within the Bauba Platinum Project occurs at depths of between 1 600 m and 2 500 m below surface. The UG2 Reef is located between 300 m and 400 m below the Merensky Reef.

The farm Waterkop 113KT does, however, contain a UG2 Reef outcrop and Bauba has started to develop mine plans to extract PGMs on Waterkop 113KT in the near future.

DEPOSIT TYPE AND MINERALISATION

The Merensky Reef consists of the mineralised upper portion of the medium-grained, poikilitic Merensky pyroxenite, while the UG2 Reef comprises the mineralised, medium-grained, UG2 chromitite seam.

The mineralised Merensky and UG2 Reefs are magmatic segregation deposits that contain economic quantities of the PGEs and base metals. The PGEs are associated with chromitite and base metal sulphides.

NORTHEN CLUSTER

Fisant Laagte

506KS

Zwitzerland

473KS

Indië

474KS

Schoonoord

462KS

Waterkop

113KT

Southern CLUSTER

Groot Vygenboom

284KT

Genokakop

285KT

Houtbosh

323KT

Executive Summary

Short Form SAMREC compliant technical reports

April 14, 2010 (300KB)

RESOURCE ESTIMATES

The current 4E (Pt+Pd+Rh+Au) PGM resource estimates for the Bauba Platinum Project, discounted for geological losses, is tabulated below with 60% of the total resources attributed to Bauba. The resources were compiled by Bauba’s geologists and verified and signed off by an independent competent person, Mr AN Clay of VenmynDeloitte.



GEOGRAPHICAL LOCATION MAP

VIEW MAP

SURFACE GEOLOGY

VIEW MAP

EXPLORATION ACTIVITIES

Since Bauba started to manage the Bauba Platinum Project, the company developed and initiated a comprehensive exploration programme for platinum group metals (PGM) and associated metals within the prospect areas.

The exploration programme consisted of:

The structural plans for the project areas from acquired geophysical, satellite and aerial photo data and imagery, as well as public domain information about neighbouring mines and projects, have been developed and are upgraded as new data becomes available. Preliminary (Phase 1) drilling programmes for each Cluster have been scoped to estimate inferred resources and inform decisions on subsequent, focused drilling for feasibility studies. The table below summarises the status of the preliminary drilling programmes.

Phase 1 drilling on the Southern Cluster intersected robust Merensky and UG2 Reef intersections at depths of between 1 600 m and 1 930 m below surface (1 400 m and 1 800 m below datum). Geological modelling of the drilling data has been completed and allowed the declaration of a SAMREC compliant, discounted inferred resource of 8,6 Moz (4E) (5,1 Moz attributable to Bauba A Hlabirwa) over a portion of the Southern Cluster Properties. Phase 2 drilling is currently in abeyance.

Three boreholes drilled on the Northern Cluster increased inferred resource of the Bauba Platinum Project from 7.46 million ounces to 17.22 million ounces.

OTHER PROJECTS

Bauba has expanded its vision to become a diversified mining company.

The Company’s aggressive growth strategy will also target base and precious metals.

New information about these projects will be added here when further material milestones are met.