South Africa

CAMEC has had an operational presence in South Africa for a number of years. There remains significant opportunity if a Company understands the requirements of both the government, through the Black Empowerment legislation but also the needs of the local communities. CAMEC has been primarily focussing on fluorspar and coal.

In line with this, CAMEC now has a 51% controlling interest in the Doornhoek Fluorite Project located less than 10km from the Sallies Witkop fluorspar mine in South Africa. The properties were explored in detail in the late 1970's and early 1980's by Esso Minerals and Armco Bronne whose results indicated that the deposit is potentially the world's largest and highest grade fluorspar deposit containing in excess of 50Mt at an average grade exceeding 20% CaF2.

Geosearch International Ltd undertaking a 2,000m drilling programme to confirm historical results. A good correlation between the new and historical data will place international mineral and mining consultancy group RSG Global, who are managing the project, in a position to classify the resource in accordance with the Samrec and or JORQ codes of practice, and to model the ore body for mine planning purposes.

The current non JORC compliant resource estimates based on historical data are:

The project has a potential mine life far in excess of 50-years, and is expected to fall within the lower quartile cost producer giving it the ability to withstand fluctuations in market conditions. A full drilling programme is on-going which if all goes to schedule, production is targeted for 2008.