Glossary

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Assay

to determine the mineral content

AUSIMM

Australian Institute of Mining and Metallurgy

By-products

any products that arise from the core process of producing gold, including silver

Cash costs

measurement that represents the full costs incurred inclusive of royalties and production taxes. Depreciation, rehabilitation, corporate administration and retrenchment are excluded

Capital expenditure

total capital expenditure on mining assets to both expand and maintain operations

Competent person

the SAMREC code defines a competent person as a person who is registered with any one of SACNASP, ECSA, PLATO or any other statutory South African or international body that is recognised by SAMREC. A competent person should have a minimum of five years' experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which that person is undertaking

Cut-off grade

the grade at which the orebody is mined with no profit or loss, i.e. the break-even grade

Debt

borrowings, including short-term borrowings

Depletion

the decrease in quantity of ore in a deposit or property resulting from extraction or production

Development

activities (including shaft sinking and on-reef tunnelling) required to prepare for mining activities and to maintain a planned production level, and those costs required to enable the conversion of mineralised material to reserves

Dilution

waste which is mined with ore in the mining process

ECSA

the Engineering Council of South Africa

EMP

Environmental Management Programme

EMPR

Environmental Management Programme Report

Exploration

activities associated with ascertaining the existence, location, extent or quality of mineralised material, including economic and technical evaluation of mineralised material

Faulting

the process of fracturing that produces a displacement of rock

Footwall

the underlying side of a fault, orebody or stope

g

gram

g/t

gram per tonne

Grade

the quantity of metal per unit mass or ore expressed as a percentage in terms of ounces or grams per tonne of ore

Hanging wall

the overlying side of a fault, orebody or stope

Head grade

the grade of the ore as delivered to the metallurgical plant

In situ

in place, that is, within unbroken rock

Indicated mineral resource

an 'indicated mineral resource' is the part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed

Inferred mineral resource

an 'inferred mineral resource' is that part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and has assumed, but not verified, geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited or of uncertain quality and reliability

JSE

JSE Limited, South Africa

KBH

Khumo Bathong Holdings (Pty) Limited

kg

kilogram

Level

the workings or tunnels of an underground mine which are on the same horizontal plane

Life of mine (LOM)

number of years that the operation is planning to mine and treat ore, taken from the current mine plan

M

metre

Market capitalisation

the number of ordinary shares in issue multiplied by the closing price of the share as quoted on stock exchanges

Measured mineral resource

a 'measured mineral resource' is that part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
The locations are spaced closely enough to confirm geological continuity

Metallurgical plant

processing plant used to treat ore and extract the contained metals

Mill/milling

the comminution of the ore, although the terms have come to cover the broad range of machinery inside the treatment plant where the mineral is separated from the ore

Mineable

that portion of a mineralised deposit for which extraction is technically and economically feasible

Mineral reserve

a 'mineral reserve' is the economically mineable material derived from a measured and/or indicated mineral resource. It is inclusive of diluting materials and allows for losses that may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction is reasonably justified. Mineral reserves are subdivided in order of increasing confidence into probable mineral reserves and proved mineral reserves

Mineral resource

a 'mineral resource' is a concentration (or occurrence) of material of economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a mineral resource are known, estimated from specific geological evidence and knowledge, or interpreted from a well-constrained and portrayed geological model. Mineral resources are subdivided, in order of increasing confidence in respect of geoscientific evidence, into inferred, indicated and measured categories

Mine call factor (MCF)

the ratio of the produced gold at the mill to the gold content of the ore calculated by sampling in stopes

Mineralisation

the presence of a target mineral in a mass of host rock

Mining Charter

the Broad-based Socio-economic Empowerment Charter for the South African Mining Industry developed in terms of Section 100 of the Mineral and Petroleum Resources Development Act of 2002, to set the framework, targets and timetable for effecting the entry of historically disadvantaged South Africans (HDSAs) into the mining industry

Mt

million tonnes

Ore

a mixture of mineralised material from which at least one of the contained minerals can be mined and processed at an economic profit

Ounce

one troy ounce which equals 32.1507 grams

Pay limit

the break-even grade at which the orebody can be mined without profit or loss, calculated using forecast commodity prices, working costs and recovery factors

Payshoot

Linear to sub-linear zone within a reef for which gold grades or accumulations are predominantly above the cut-off grade

PLATO

the South African Council for Professional land Surveyors and Technical Surveyors

Probable mineral reserve

a 'probable mineral reserve' is the mineable material derived from a measured and/or indicated mineral resource. It is estimated with a lower level of confidence than a proved mineral reserve. It is inclusive of diluting materials and allows for losses that may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. The assessments demonstrate at the time of reporting that extraction is reasonably justified

Production

the day-to-day activities directed to obtaining saleable product from the mineral resource on a commercial scale. It includes extraction and other processing prior to sale

Proved mineral reserve

a 'proved mineral reserve' is the economically mineable material derived from a measured mineral reserve. It is estimated with a high level of confidence. It is inclusive of diluting materials and allows for losses that may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, including consideration or and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction is reasonably justified

Recovery grade

the actual grade of ore realised after the mining and treatment process

Reef

a mineralised horizon containing economic levels of metal

Rehabilitation

the process of restoring mined land to allow appropriate post-mining use. Rehabilitation standards are determined and audited by the South African Department of Minerals and Energy and address ground and surface water, topsoil, final slope gradients, waste handling and re-vegetation issues

SACNASP

the South African Council for Natural Scientific Professions

SAIMM

South African Institute of Mining and Metallurgy

SAMREC code

the South African Code for Reporting of Mineral Resources and Mineral Reserves, including the guidelines contained therein

Shaft

a shaft provides principal access to the underground workings for transporting personnel, equipment, supplies, ore and waste. A shaft is also used for ventilation and as an auxiliary exit. It is equipped with a hoist system that lowers and raises conveyances for men, material and ore in the shaft

Stope

the underground excavation within the orebody where the main production takes place

Strike

the direction in which a horizontal line can be drawn on a plane

Tonnage

quantities where the ton or tonne is an appropriate unit of measure

Tonne

one tonne is equal to 1 000 kilograms (also known as a metric ton)

Tailings

finely ground rock from which valuable minerals have been extracted

Tailings dam

dams or dumps created from waste material from processed ore after the economically recoverable metal has been extracted

tpa

tonnes per annum

tpm

tonnes per month

t/m³

tonnes per cubic metre

Weighted average number ordinary shares

the number of ordinary shares in issue at the beginning of the year, increased by the shares issued during the year, weighted on a time basis for the period during which they have participated in the income of the group

Yield/recovered grade

the actual grade of ore realised after the mining treatment process