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

• Rounding of figures in the accompanying summaryestimates may result in minor computationaldiscrepancies; where this occurs it is not deemedsignificant• All references to tonnage are to the metric unit• All references to ounces (oz) are troy with the factorused being 31.10348 metric grams per ounce• The Mineral Resources and Mineral Reserves reportedfor the individual operations and projects are reflectedas the total estimate. The corresponding estimatesrelating to attributable Mineral Resources and MineralReserves are only given as a combined summarytabulation where specifically stated as such• Mineral Reserves are that portion of the MineralResource which technical and economic studieshave demonstrated can justify extraction at the timeof disclosure. Historically, Implats has only convertedMineral Resources to Mineral Reserves on completionof a full feasibility study. The exception to this has beenat Zimplats where the basis of a prefeasibility study wasapplied, as permitted by the JORC Code. This practiceis in line with the SAMREC 2008 clarification that only aprefeasibility study is required for such conversions• The term Ore Reserve is the same as that applied forMineral Reserve• Implats uses a discounted cash flow model thatembodies economic, financial and production statisticsin the valuation of mineral assets. Forecasts of keyinputs are:– Relative rates of inflation in South Africa and theUnited States– Rand/dollar exchange rate– Capital expenditure– Operating expenditure– Production profile– Metal recoveriesThe outputs are net present value, the internal rate of return,annual free cash flow, project payback period and fundingrequirements. Metal price and exchange rate forecasts areregularly updated by the marketing department of Implats.As at 30 June 2010, a real long-term forecast for revenueper platinum ounce sold of R27 716 was used.Key year-on-year changesin Mineral Resources and Mineral Reserve estimates and reportingMaterial and significant issues affecting the MineralResource and Mineral Reserve estimates and reporting asat 30 June 2010, relative to the previous reporting periodinclude the following:• The introduction of the new Implats protocol for theestimation, classification and reporting of MineralResources and Mineral Reserves resulted in thereclassification of certain areas, notably at Impalaand Marula where some indicated Mineral Resourceswere reclassed as inferred. On a group-wide basis theproportion of inferred Mineral Resources has remainedrelatively constant as the impact was off-set by theupgrading of Mineral Resources in other areas due toadditional information• The Mineral Resource estimates at Impala and Afplatswere negatively impacted upon by the introduction ofthe 2 350m below surface depth cut-off• The inclusion of the Impala/RBR joint venture MineralResource estimate added some 3.1Moz platinumattributable platinum ounces• Some 2Moz platinum were excluded from the ImpalaMineral Resource estimate in view of a pending transferof these to a third party• The Marula Mineral Resource estimate was reduced bysome 0.6 million attributable platinum ounces followingthe new Merensky Reef estimate• At Tamboti the Mineral Resource estimate increasedby 3.6Moz platinum due to the approval of the section102 application• Specific changes relating to the estimates are clarifiedunder each operational sub-sectionwww.implats.co.za 13 Implats Mineral Resource and Mineral Reserve Statement 2010