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 ore body is mined with no profit or
loss, i.e. the breakeven grade.
Debt
Borrowings, including short-term payments.
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 maintain a planned
production level and those costs 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.
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.
Equity
Shareholders’ equity adjusted for other comprehensive
income and deferred taxation.
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 as ounces or grams per ton 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, i.e. within unbroken rock.
Indicated mineral resource
An 'indicated mineral resource' is 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 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
Johannesburg Securities Exchange, SA.
KBH
Khumo Bathong Holdings (Pty) Ltd.
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, and taken from the current mine plan.
m
Metre.
Market capitalisation
The number of ordinary shares in issue at close of business
on June 30, 2003, multiplied bythe closing price of the share
as quoted on stock exchanges.
Measured mineral resource
A ‘measured mineral resource’ is that part pf
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 term has 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 fro ma 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 sub-divided 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 grade of material received at the mill to
the grade of the ore calculated by sampling in stopes.
Mineralisation
The presence of a target mineral in a mass of host rock.
Mt
Million tons.
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 31.1035 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.
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. These 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 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.
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.
The SAMREC Code
The South African Code for Reporting of Mineral Resources
and Mineral Reserves including the guidelines contained therein.
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.
tpm³
Tonnes per cubic metre.
Weighted average numberof ordinary
shares
The number of ordinary shares in issue at the beginning of
the year, increased by 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.
