Ordinary Kriging and Mineral Resources

The chromitite seam is bounded above and below by pyroxenites. As such, the ore horizon is clearly defined. The core is sampled from the top rated make contact with downwards at 0,5-metre intervals. The core is split and half is retained as reference material within the core sheds. The other half is crushed and split into representative samples, which are crushed and pulverised for chemical analysis. The samples are analysed fusion/ICP-OES for chrome oxide (Cr2O3), SiO2, FeO, Al2O3, MgO and CaO. 3 laboratories, all ISO 17025 accredited for this method, are used. Just about every tenth sample is analysed in duplicate. SARM 8 and SARM 9 standards, too as in-house reference material (CRI), are included each 20 to 30 samples in every batch. The density for every sample is measured using a gas pycnometer.

Mineral Resources have been estimated making use of Ordinary Kriging, where Cr2O3, FeO-, Al2O3, MnO and MgO-contents from the LG6 seam and densities were determined, utilizing block sizes of 50 x 50 x 4 metres.

During mining, a slightly diluted run-of-mine ore inclusive of the “false” hangingwall is fed to the beneficiation plant. In the dense media separation component with the plant, the coarse fraction is upgraded to 40% Cr2O3 using a yield of 80%. Inside the spiral section with the plant, the finer fraction is upgraded to 44% Cr2O3, and 46% Cr2O3 respectively, for metallurgical-grade fines and chemical-grade fines. A 67% yield is achieved within the spiral circuit.

Year-on-year change – When compared to 2009, the 2010 Mineral Reserves improved by three,86 million tons to 39,5 million tons (35,64 million tons) and the Mineral Resources increased by 2,72 million tons to 50,60 million tons. The boost within the Mineral Resources was thanks to the extension with the block model by remodelling with the Indicated Resources. The boost in the

Mineral Reserves is resulting from the remodelling and incorporation in the “false” hangingwall. The latter triggered a decrease in the Cr2O3 grade to 35,75% inside the 2010 model.

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