mineral resource and mineral reserve statement ... - Impala Platinum

Auditing in 2010Implats is committed to independent third party reviews ofMineral Resource and Mineral Reserve estimates. In thepast these were done on a three-year cycle at differentoperations. The practice has been adapted to conductgroup-wide audits on a two-year cycle.AMEC Americas Limited (AMEC) has completed anaudit in the past year of the Mineral Resource andMineral Reserve procedures as adopted by the Implatsoperations. The audit focused specifically on Impala,Afplats, Marula and Zimplats. The audit was aimed atreviewing the procedures that are applied at each of thesesites, how these procedures conform to Implats’ internalCode of Practice for the Estimation, Classification andReporting of Mineral Resources and Reserves, and howthese procedures comply with the international reportingcodes, namely the SAMREC Code and the JORC Code.The audit, undertaken over a four-month period, identifiedseveral areas for improvement and these were ranked inorder of significance. Some of the issues have alreadybeen addressed, including the Merensky Reef MineralResource estimate at Marula that was identified as theonly material matter. Implats views such detailed auditsnot only as a governance issue, we benefit from theexpertise that the audit team brings which enables us toimprove current practices. Outstanding matters identifiedby AMEC will be prioritised during FY2011. The mostpertinent of these relate to database management and theneed for improved documentation, specifically relating tothe classification of Mineral Resources.AMEC concluded that:• There are no material discrepancies between the Implatsreporting methodology and the regulatory codes• The Resource and Reserve estimation methodologiesused are appropriate with regard to the nature of theorebodies and the mining methods usedPertinent assessment andreporting criteriaThe following key assumptions and parameters, unlessstated otherwise, were used in the compilation of theestimates in this declaration:• Implats developed a group-wide protocol for theestimation, classification and reporting of MineralResources and Mineral Reserves during 2010. Theobjective of the protocol is to improve standardisation,consistency and to facilitate auditing. The protocolwas reviewed by industry experts Peter Mellowship,Andy Jameson and Alistair McFarlane; also by SteffenRobertson and Kirsten (SRK), Cardiff• Most pertinent is the classification of MineralResources, which is now based on a flow sheet givingcognisance to fatal flaws, geoscientific information suchas the availability of a 3D seismic survey, sample pointfrequency, data quality, interpretation and continuity aswell as grade confidence. In addition a depth cut-off of2 350m below surface was introduced• Mineral Resource tonnage and grades are estimated insitu. The Mineral Resources for the Merensky Reef areestimated at a minimum mining width, and may includemineralisation below the selected cut-off grade• Mineral Resource estimates for the UG2 Reef reflect thechannel widths only and do not include any dilution; theestimates only reflect the main UG2 Chromitite Layer.Note that the channel widths in the case of Impala andMarula are narrower than a practical minimum miningwidth• Mineral Resource estimates for the Main Sulphide Zoneare based on optimal mining widths• Mineral Resources are reported inclusive of MineralReserves, unless otherwise stated• Mineral Resource estimates allow for estimatedgeological losses but not for anticipated pillar lossesduring eventual mining• Mineral Resource estimates presented in this report donot cater for estimated support and stability pillars• Mineral Reserve estimates include allowances formining dilution and are reported as tonnage and gradedelivered to the millwww.implats.co.za 12 Implats Mineral Resource and Mineral Reserve Statement 2010