South Africa CAMEC has had an operational presence in South Africa for a number of years. The Company originally owned a controlling interest in a PGM project in the Bushveld Complex in South Africa. It was listed on the London Stock Exchange's AIM market as African Platinum Plc until it was taken over by Impala Platinum in early 2007. The success in the development of this project has enabled the Company to establish a strong reputation for its ability to deliver. As a result, CAMEC has been introduced to a number of other projects with upside development potential.
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 is now 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:
| 10% CaF2 Cut-off Grade and Minimum 2m Mining Height for Pods A, B, C, and D | ||||||||||||||||
|
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, should lead to production by 2008.
Platinum Project:
CAMEC has traditionally been active in the precious metals arena. The Board originally established Southern African Resources Plc on the AIM market of the London Stock Exchange to develop a platinum project on the prospective western limb of the Bushveld Complex in South Africa, the world's premier Platinum region. Following initial drilling and quantification of the resource, platinum specialist were brought in to bring the project into production. CAMEC's representatives stepped down from the Board at this stage. The Company was renamed African Platinum Plc which is currently subject to a £297 million bid by Impala Platinum.
The Company now has a 44.5% of Pfula Investments Limited ("Pfula") which owns the rights to 51% and 40% respectively of the Inkosi and Imbasa Platinum Group Element ("PGE") projects, located on the western limb of the Bushveld Complex in South Africa The combined inferred resource estimate for the two projects, recently published by Afplats, was 38.8 million ounces 4E, i.e. platinum, palladium, rhodium and gold.
Pfula has agreed in principle with Afplats to consolidate the Inkosi and Imbasa properties into a new entity. Pfula, as Afplats' Black Empowerment Partner for the project area, will control a 47% stake post consolidation with Afplats retaining a 53% stake. CAMEC will therefore have a 20.9% interest in the project, representing 8.1 million ounces 4E.
Drilling and assaying of 14 new exploration boreholes was completed on the Imbasa and Inkosi properties in May 2006. An inferred resource of 181 million tonnes at a grade of 4.6g/t 4E - equivalent to 26.9 million ounces 4E - was calculated for the UG2 Reef on the Imbasa and Inkosi areas. An additional inferred resource of 176 million tonnes at a grade of 2.1g/t 4E (11.9 million ounces 4E) is contained in the Merensky Reef. This substantial PGE resource lies along strike from Afplats' flagship Leeuwkop project, which has a measured, indicated and inferred resource of 5 million ounces 4E, 8.7 million ounces 4E and 39.4 million ounces 4E respectively.
South African Coal:
CAMEC has also acquired prospecting rights for coal in South Africa over 15 farms totalling over 20,500 hectares. The 15 farms are located within the Waterberg, Soutpansberg and Springbok flats coalfields and, based on historical drilling and literature studies, the Company's geologists estimate they have the potential to host in excess of 300 million tonnes of coal. Under the terms signed with South African company AFC Limited, CAMEC has secured a 74% interest in a private company, Legshell 599 Investments (Pty) Ltd, into which AFC has requested the Minister of Minerals and Energy to transfer the recently granted coal rights. The transfer of rights is subject to the applicant being technically competent and capable of carrying out the prospecting work programme. CAMEC believes it meets all the requirements of such a transfer.
