Directors: NJ Odendaal, D Van Heerden, CJ Muller Registration No. 2004/029587/07 Suite 5, Coldstream Office Park 2 Coldstream Street Little Falls, Roodepoort, South Africa Tel: +27 11 958 2899 ! Fax: +27 11 958 2105 www.minxcon.co.za
Update of the Stonewall Resources as at May 2013, Pilgrims Rest area, South Africa Short Report Effective Date: 25 May 2013 Issue Date: 25 June 2013 Minxcon Reference: M2013-030a
Authors: Paul Obermeyer Mineral Resource Manager BSc Hons. Geology
Update of Stonewall Resources as at May 2013 Preliminary Report
Prepared by Minxcon (Pty) Ltd ii
DISCLAIMER AND RISKS
This Report was prepared by Minxcon (Pty) Ltd (Minxcon). In the preparation of the Report, Minxcon has utilised information relating to operational methods and expectations provided to them by various sources. Where possible, Minxcon has verified this information from independent sources after making due enquiry of all material issues that are required in order to comply with the requirements of the JORC Code. Minxcon and its directors accept no liability for any losses arising from reliance upon the information presented in this Report.
OPERATIONAL RISKS
The business of mining and mineral exploration, development and production by their nature contain significant operational risks. The business depends upon, amongst other things, successful prospecting programmes and competent management. Profitability and asset values can be affected by unforeseen changes in operating circumstances and technical issues.
POLITICAL AND ECONOMIC RISK
Factors such as political and industrial disruption, currency fluctuation and interest rates could have an impact on future operations, and potential revenue streams can also be affected by these factors. The majority of these factors are, and will be, beyond the control of any operating entity.
COPYRIGHT Copyright in all documents, drawings and records, whether manually or electronically produced, which form part of the submission and any subsequent report or project document shall vest in Minxcon. None of the documents, drawings or records may be used or applied in any manner, nor may they be reproduced or transmitted in any form or by any means whatsoever for or to any other person, without prior written consent of Minxcon, other than the filing of the Report with the Alternative Investment Market Securities Regulators or an exchange in accordance with London securities laws.
Update of Stonewall Resources as at May 2013 Preliminary Report
Prepared by Minxcon (Pty) Ltd iii
TABLE OF CONTENTS 1. INTRODUCTION ......................................................................................................4 2. PROPERTY LOCATIONS ..............................................................................................4 3. DECLARED MINERAL RESOURCE STATEMENT AS AT OCTOBER 2011................................................5 4. ESTIMATED MINERAL RESOURCE STATEMENT AS AT MAY 2013 ....................................................8 5. CONCLUSIONS ..................................................................................................... 11
FIGURES Figure 1: General Location of Stonewall Projects and Operations .................................................. 4
TABLES Table 1: The Combined Mineral Resources for Stonewall as at 31 October 2011................................. 5 Table 2: Mineral Resources for the Stonewall Underground Operations as at 31 October 2011................ 5 Table 3: Mineral Resources for the Stonewall Open Pit Operations as at 31 October 2011 ..................... 5 Table 4: Mineral Resources for the Stonewall Tailings Dams as at 31 October 2011............................. 6 Table 5: Mineral Resources for the Stonewall Rock Dumps as at 31 October 2011............................... 6 Table 6: The Combined Mineral Resources for Stonewall as at May 2013.......................................... 8 Table 7: Mineral Resources for the Stonewall Underground Operations as at May 2013......................... 8 Table 8: Mineral Resources for the Stonewall Open Pit Operations as at May 2013.............................. 9 Table 9: Mineral Resources for the Stonewall Tailings Dams as at May 2013...................................... 9 Table 10: Mineral Resources for the Stonewall Rock Dumps as at May 2013 ...................................... 9
Appendices
Appendix 1: Certificate of Competent Person.........................................................................12
Update of Stonewall Resources as at May 2013 Preliminary Report
Prepared by Minxcon (Pty) Ltd 4 1. INTRODUCTION Minxcon Consulting (Pty) Ltd (Minxcon) was requested by the directors of Stonewall Mining (Stonewall) to compile an updated approximation of the status of the Mineral Resources for TGME, as at May 2013, with the specific inclusion of the Dukes Hill Mine and Beta Main Rock Dump. The Mineral Resource Statement dated October 2011, as reflected in this document, represents the last official declared Mineral Resources for Stonewall.
The Mineral Resource Statement as at May 2013 is an approximation of the current status of the Mineral Resources. The May 2013 statement takes into account production figures as reported by the TGME plant, in order to reflect Mineral Resource depletion. These figures are thus directly related to the plant processed tons as provided by Stonewall. The May 2013 Resource Statement also includes, as requested, the additional Mineral Resources for the Dukes Hill Mine and the Beta Main Rock Dump.
2. PROPERTY LOCATIONS Figure 1: General Location of Stonewall Projects and Operations
Update of Stonewall Resources as at May 2013 Preliminary Report
Prepared by Minxcon (Pty) Ltd 5 3. DECLARED MINERAL RESOURCE STATEMENT AS AT OCTOBER 2011 All Mineral Resources, as at October 2011, were reported in compliance with the specifications embodied in the JORC Code. Mineral Resources have been reported separately, as Measured, Indicated and Inferred.
Table 1: The Combined Mineral Resources for Stonewall as at 31 October 2011 Tonnage Gold Grade Gold Content Resource Category Type of Operation Mt g/t Kg '000 oz. UG 0.170 4.77 811 26.1 Surface 0.151 1.59 240 7.7 Measured Tailings 2.294 0.77 1,770 56.9 Total Measured 2.615 1.08 2,821 90.7 UG 2.755 5.87 16,184 520.2 Surface 3.173 0.88 2,811 90.4 Indicated Tailings 0.012 0.58 7 0.2 Total Indicated 5.940 3.20 19,002 610.8 UG 14.535 3.91 56,832 1,827.3 Surface 0.801 0.80 642 20.7 Tailings 2.451 3.07 7,516 241.6 Rock Dump 0.121 1.59 192 6.2 Inferred Plant Floats 0.041 0.54 22 0.7 Total Inferred 17.949 3.63 65,204 2,096.5 Grand Total 26.504 3.28 87,027 2,798.0 Notes: 1. The tonnages and grades in Table 1 are quoted as in situ tonnes. 2. Mineral Resources declared are for the entire project and have not been divided into attributable portions. 3. The cut-offs and densities are applied to the attributable portions in the tables that follow.
Table 2: Mineral Resources for the Stonewall Underground Operations as at 31 October 2011 Density Tonnage Gold Grade Gold Content Cut-Off Grade Mineral Resource Category UG Mine Reef t/m 3 Mt g/t Kg '000 oz. cm.g/t Measured Frankfort Bevetts 3.60 0.170 4.77 811 26.1 133 Total Measured 3.60 0.170 4.77 811 26.1 133 Frankfort Bevetts 3.60 0.282 5.04 1,421 45.7 133 DH/Clewer Rho 3.30 0.696 3.39 2,359 75.8 133 Beta Beta 3.60 0.443 4.86 2,153 69.2 133 Rietfontein Rietfontein 3.00 1.244 7.92 9,852 316.7 133 Indicated Olifantsgeraamte Olifantsgeraamte 3.60 0.090 4.43 399 12.8 133 Total Indicated 3.25 2.755 5.87 16,184 520.2 133 Total Measured and Indicated 3.27 2.925 5.81 16,995 546.3 133
Table 3: Mineral Resources for the Stonewall Open Pit Operations as at 31 October 2011 Mineral Resource Surface Operation Operation Type Density Tonnage Gold Grade Gold Content Cut-Off Grade Update of Stonewall Resources as at May 2013 Preliminary Report
Prepared by Minxcon (Pty) Ltd 6 Category t/m 3 Mt g/t Kg '000 oz. g/t Measured Hermansburg Open Pit 2.30 0.151 1.59 240 7.7 0.20 Total Measured 2.30 0.151 1.59 240 7.7 0.20 Hermansburg 2.30 0.752 1.20 902 29.0 0.20 DG1 2.30 0.389 1.72 669 21.5 0.20 Indicated DG2 Open Pit 2.30 2.032 0.61 1 240 39.9 0.20 Total Indicated 2.30 3.173 0.88 2 811 90.4 0.20 Total Measured and Indicated 2.30 3.324 0.92 3 051 98.1 0.20
Density Tonnage Gold Grade Gold Content Cut-Off Grade Mineral Resource Category Surface Operation Operation Type t/m 3 Mt g/t Kg '000 oz. g/t Hermansburg 2.30 0.244 0.41 100 3.2 0.20 DG1 2.30 0.286 1.42 406 13.1 0.20 Inferred DG5 Open Pit 2.30 0.271 0.50 136 4.4 0.20 Total Inferred 2.30 0.801 0.80 642 20.7 0.20
Table 4: Mineral Resources for the Stonewall Tailings Dams as at 31 October 2011 Density Tonnage Gold Grade Gold Content Cut-Off Grade Mineral Resource Category Surface Operation Reef t/m 3 Mt g/t Kg '000 oz. g/t Glynns Lydenburg Tailings 1.40 1.212 0.80 970 31.2 0.00 Blyde 1 Tailings 1.40 0.447 0.72 322 10.4 0.00 Blyde 2 Tailings 1.40 0.220 0.61 134 4.3 0.00 Blyde 3 Tailings 1.40 0.274 0.88 241 7.7 0.00 Measured Blyde 4 Tailings 1.40 0.141 0.73 103 3.3 0.00 Total Measured 1.40 2.294 0.77 1,770 56.9 0.00 Indicated Blyde 5 Tailings 1.40 0.012 0.58 7 0.2 0.00 Total Indicated 1.40 0.012 0.58 7 0.2 0.00 Total Measured and Indicated 1.40 2.306 0.77 1,777 57.1 0.00
Density Tonnage Gold Grade Gold Content Cut-Off Grade Mineral Resource Category Surface Operation Reef t/m 3 Mt g/t Kg '000 oz. g/t Blyde 3a Tailings 1.40 0.023 0.57 13 0.4 0.00 Inferred TGME Plant Tailings 1.40 2.428 3.09 7,503 241.2 0.00 Total Inferred 1.40 2.451 3.07 7,516 241.6 0.00
Table 5: Mineral Resources for the Stonewall Rock Dumps as at 31 October 2011 Density Tonnage Gold Grade Gold Content Cut-Off Grade Mineral Resource Category Surface Operation Reef t/m 3 Mt g/t Kg '000 oz. g/t Inferred Vaalhoek Rock Dump 1.70 0.121 1.59 192 6.2 0.20 Total Inferred 1.70 0.121 1.59 192 6.2 0.20
Density Tonnage Gold Grade Gold Content Cut-Off Grade Mineral Resource Category Surface Operation Reef t/m 3 Mt g/t Kg '000 oz. g/t Inferred Plant Floats Processed Material 1.60 0.041 0.54 22 0.7 0.00 Total Inferred 1.60 0.041 0.54 22 0.7 0.00 Notes: 1. Mineral Resources are inclusive of the Ore Reserves. 2. The Mineral Resources are declared at cut-offs shown in the tables above. 3. Conversion: 1kg = 32.15076 oz. 4. Beta Mine calculated over 90 cm stoping width. 5. Frankfort Mine calculated over minimum achievable stoping width of 90 cm. 6. A 5% factor was applied to the Vaalhoek tonnes to account for the sorting operation. 7. A 70% mass pull is expected at TGME Plant Floats prior to treatment with XRT.
The Inferred Mineral Resources have a large degree of uncertainty as to their existence and whether they can be mined economically. It cannot be assumed that all or any part of the Inferred Resource will be upgraded to a higher confidence category. The current Mineral Resource model is based on available sampling data collected over the history of the Project area. The Mineral Resource estimation was carried out by Mr C Muller of Minxcon and Ms L Mavengere (formerly of Minxcon) who are both JORC Competent Update of Stonewall Resources as at May 2013 Preliminary Report
Prepared by Minxcon (Pty) Ltd 7 Persons with professional registration with SACNASP (SA). The grade models were verified by visual and statistical methods and are deemed to be globally unbiased. The blocks were classified into Measured, Indicated and Inferred Mineral Resource categories using the following and not limited thereto: sampling QAQC, geological confidence, distance to sample (variogram range) and kriging efficiency. Only the Mineral Resources lying within the legal boundaries are reported.
The business of mining and mineral exploration, development and production by their nature contain significant operational risks. The business depends upon, amongst other things, successful prospecting programmes and competent management. Profitability and asset values can be affected by unforeseen changes in operating circumstances and technical issues. Factors such as political and industrial disruption, currency fluctuation and interest rates could have an impact on future operations, and potential revenue streams can also be affected by these factors. The majority of these factors are, and will be, beyond the control of any operating entity. Update of Stonewall Resources as at May 2013 Preliminary Report
Prepared by Minxcon (Pty) Ltd 8
4. DECLARED MINERAL RESOURCE STATEMENT AS AT MAY 2013 All Mineral Resources, as at May 2013, were reported in compliance with the specifications embodied in the JORC Code. Mineral Resources have been reported separately, as Measured, Indicated and Inferred. The May 2013 statement takes into account production figures as reported by the TGME plant, in order to reflect Mineral Resource depletion. These figures are thus directly related to the plant-processed tonnes as provided by Stonewall. The Mineral Resource Statement as at May 2013, includes additional Mineral Resources for the Dukes Hill Mine and the Beta Main Rock Dump. Table 6 summarises the Mineral Resources for Stonewall as at May 2013 and also includes the reconciliation to the Mineral Resources as at 31 October 2011.
Table 6: The Combined Mineral Resources for Stonewall as at May 2013 Tonnage Gold Grade Gold Content Change in Tonnage Change in Gold Content (Moz) Mineral Resource Category Type of Operation Mt g/t Kg '000 oz. % % UG 0.170 4.77 811 26.1 0 0 Surface 0.151 1.59 240 7.7 0 0 Measured Tailings 2.294 0.77 1,770 56.9 0 0 Total Measured 1. 2.615 1.08 2,821 90.7 0 0 UG 2.755 5.87 16,184 520.2 0 0 Surface 3.173 0.88 2,811 90.4 0 0 Indicated Tailings 0.012 0.58 7 0.2 0 0 Total Indicated 5.940 3.20 19,002 610.8 0 0 UG 14.652 3.99 58,478 1,880.2 0.8 2.9 Surface 0.801 0.8 642 20.7 0 0 Tailings 2.128 3.06 6,517 209.5 -13.2 -13.2 Rock Dump 0.121 1.59 192 6.2 0 0 Plant Floats 0.041 0.54 22 0.7 0 0 Inferred Beta Main 0.154 0.81 124 4.0 100 100 Total Inferred 17.897 3.69 65,975 2,121.3 -0.3 1.2 Grand Total 26.452 3.32 87,798 2,822.8 0.2 0.9 Notes: 1. The tonnages and grades in Table 6 are quoted as in situ tonnes. 2. Mineral Resources declared are for the entire project and have not been divided into attributable portions. 3. The cut-offs are applied to the attributable portions in the tables that follow.
Table 7: Mineral Resources for the Stonewall Underground Operations as at May 2013 Density Tonnage Gold Grade
Dukes Hill Theta 3.0 0.124 13.45 1,668 53.6 133 Total Inferred 3.7 14.652 3.99 58,478 1,880.2 133
Table 8: Mineral Resources for the Stonewall Open Pit Operations as at May 2013 Density Tonnage Gold Grade Gold Content Cut- Off Grade Mineral Resource Category Surface Operation Operation Type t/m 3 Mt g/t Kg '000 oz. g/t Measured Hermansburg Open Pit 2.3 0.151 1.59 240 7.7 0.2 Total Measured 2.3 0.151 1.59 240 7.7 0.2 Hermansburg 2.3 0.752 1.20 902 29.0 0.2 DG1 2.3 0.389 1.72 669 21.5 0.2 Indicated DG2 Open Pit 2.3 2.032 0.61 1,240 39.9 0.2 Total Indicated 2.3 3.173 0.88 2,811 90.4 0.2 Total Measured and Indicated 2.3 3.324 0.92 3,051 98.1 0.2
Density Tonnage Gold Grade Gold Content Cut- Off Grade Mineral Resource Category Surface Operation Operation Type t/m 3 Mt g/t Kg '000 oz. g/t Hermansburg 2.3 0.244 0.41 100 3.2 0.2 DG1 2.3 0.286 1.42 406 13.1 0.2 Inferred DG5 Open Pit 2.3 0.271 0.50 136 4.4 0.2 Total Inferred 2.3 0.801 0.80 642 20.7 0.2
Table 9: Mineral Resources for the Stonewall Tailings Dams as at May 2013 Density Tonnage Gold Grade Gold Content Cut- Off Grade Mineral Resource Category Surface Operation Reef t/m 3 Mt g/t Kg '000 oz. g/t Glynns Lydenburg Tailings 1.4 1.212 0.80 970 31.2 0 Blyde 1 Tailings 1.4 0.447 0.72 322 10.4 0 Blyde 2 Tailings 1.4 0.220 0.61 134 4.3 0 Blyde 3 Tailings 1.4 0.274 0.88 241 7.7 0 Measured Blyde 4 Tailings 1.4 0.141 0.73 103 3.3 0 Total Measured 1.4 2.294 0.77 1,770 56.9 0 Indicated Blyde 5 Tailings 1.4 0.012 0.58 7 0.2 0 Total Indicated 1.4 0.012 0.58 7 0.2 0 Total Measured and Indicated 1.4 2.306 0.77 1,777 57.1 0
Density Tonnage Gold Grade Gold Content Cut- Off Grade Mineral Resource Category Surface Operation Reef t/m 3 Mt g/t Kg '000 oz. g/t Blyde 3a Tailings 1.4 0.023 0.57 13 0.4 0 Inferred TGME Plant Tailings 1.4 2.105 3.09 6,504 209.1 0 Total Inferred 1.4 2.128 3.06 6,517 209.5 0
Table 10: Mineral Resources for the Stonewall Rock Dumps as at May 2013 Density Tonnage Gold Grade Gold Content Cut-Off Grade Mineral Resource Category Surface Operation Reef t/m 3 Mt g/t Kg '000 oz. g/t Inferred Vaalhoek Rock Dump 1.7 0.121 1.59 192 6.2 0.2 Total Inferred 1.7 0.121 1.59 192 6.2 0.2
Density Tonnage Gold Grade Gold Content Cut-Off Grade Mineral Resource Category Surface Operation Reef t/m 3 Mt g/t Kg '000 oz. g/t Inferred Plant Floats Processed Material 1.6 0.041 0.54 22 0.7 0 Total Inferred 1.6 0.041 0.54 22 0.7 0
Mineral Surface Operation Reef Density Tonnage Gold Grade Gold Content Cut-Off Grade Update of Stonewall Resources as at May 2013 Preliminary Report
Prepared by Minxcon (Pty) Ltd 10 Resource Category
t/m 3 Mt g/t Kg '000 oz. g/t Inferred Beta Main Rock Dump <9 mm 1.8 0.068 1.13 77 2.5 0 Inferred Beta Main 9 mm to 20 mm 1.8 0.086 0.55 47 1.5 0 Total Inferred 1.8 0.154 0.81 124 4.0 0 Notes: 1. Mineral Resources are inclusive of the Ore Reserves. 2. The Mineral Resources are declared at cut-offs shown in the tables above. 3. Conversion: 1kg = 32.15076 oz. 4. Beta Mine calculated over 90 cm stoping width. 5. Frankfort Mine calculated over minimum achievable stoping width of 90 cm. 6. A 5% factor was applied to the Vaalhoek tonnes to account for the sorting operation. 7. A 70% mass pull is expected at TGME Plant Floats prior to treatment with XRT. Update of Stonewall Resources as at May 2013 Preliminary Report
Prepared by Minxcon (Pty) Ltd 11
5. CONCLUSIONS Due to the May 2013 depletions applied to the existing Stonewall Operations, as well as the inclusion of additional Resources, the Mineral Resources of Stonewall have decreased by 0.2% in tonnage and increased by 0.9% in gold content. All changes have taken place in the Inferred Mineral Resource Category. The underground Inferred Mineral Resources have increased by a net 0.8% in tonnage, coincident with a 2.9% net gain in gold content. This was due to only 6545 tonnes being mined at Frankfort at a relatively low grade, as well as the addition of the high grade Dukes Hill Inferred Mineral Resources to the underground Mineral Resource. No changes took place in the open pit operation. The tailings Inferred Mineral Resource decreased by 13.2% in tonnage and 13.2% in gold content due to the significant tonnages mined at the TGME Plant Tailings facility. The Inferred Mineral Resources attributable to rock dumps has increased by a net 95.1% in tonnage and a net 58% increase in gold content due to the inclusion of the Beta Main Rock Dump into the Inferred Mineral Resources. The Inferred Mineral Resources for Stonewall has experienced a net 0.3% decrease in tonnage, accompanied by a net 1.2% increase in gold content.
Update of Stonewall Resources as at May 2013 Preliminary Report
Prepared by Minxcon (Pty) Ltd 12 CJ MULLER BSc (Hons.) (Geol.), Pr. Sci. Nat., MGSSA DIRECTOR
Appendix 1: Certificate of Competent Person CERTIFICATE of COMPETENT PERSON - CJ Muller
I, Charles Muller, do hereby certify that: 1. I am a Director of Minxcon Consulting (Pty) Ltd Suite 5 Coldstream Office Park, 2 Coldstream Street, Little Falls, Roodepoort, South Africa 2. I graduated with a BSc. (Geol.) degree from the Rand Afrikaans University in 1988. In addition, I have obtained a BSc. Hons. (Geol.) from the Rand Afrikaans University in 1994 and attended courses in geostatistics and advanced Datamine modelling and geostatistical evaluation through the University of the Witwatersrand. 3. I have worked as a Geoscientist for more than 25 years. As the former Chief Geologist for Goldfields South Africa, my specialisation lies within Mineral Resource modelling and management. I have completed a number of Mineral Resource estimates and reports pertaining to gold, using approaches described by the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (JORC). 4. I am affiliated with the following professional associations: Class Professional Society Year of Registration Member Geostatistical Association of Southern Africa 2008 Member South African Council for Natural Scientific Professions (Pr. Sci. Nat. Reg. No. 400201/04) 2004
5. I am responsible for the preparation of this Technical Report with the effective date, 25 May 2013. 6. I have read the definition of Competent Person set out the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (JORC), and certify that by reason of my education, affiliation with professional associations and past relevant work experience, I fulfil the requirements to be a Competent Person for the purposes of this Competent Persons Report. 7. I have read the JORC Code and this Report has been prepared in compliance with it. 8. As of the effective date, to the best of my knowledge, information and belief, the Report contains all scientific and technical information required to be disclosed to make the Report not misleading. 9. The facts presented in the Report are, to the best of my knowledge, correct. 10. The analyses and conclusions presented in the Report are limited only by the reported forecasts and conditions. 11. I have no present or prospective interest in the subject property or asset and have no bias with respect to the assets that are the subject of the Report, or to the parties involved with the assignment. 12. I have read this technical Report and NI43-101 Standards of Disclosure for Mineral Projects and this Report has been prepared in compliance with NI43-101. 13. My compensation, employment or contractual relationship with the Commissioning Entity is not contingent on any aspect of the Report. 14. I did not make a personal inspection of the property, as it was done on my behalf. 15. I have had no prior involvement with the property that is the subject of this Report.