Name and Location
Bakubung platinum group metals (PGMs) mine project, North West, South Africa.

Client
JSE-listed Wesizwe Platinum.

Project Description
The Bakubung platinum mine project, formerly known as the Frischgewaagd-Ledig project, is located in the western limb of the Bushveld Igneous Complex, north of the City of Rustenburg, in the North West.

The project entails the construction of a PGM mine on Wesizwe Platinum's core assets.

The project will consist of an underground mine and takes into account the establishment of all surface infrastructure, servitudes for bulk power and water supply, the sinking and equipping of ventilation and main shafts, the associated underground infrastructure, the ancillary excavations and the access development to establish a footprint for full production.

The mine is specifically designed for optimum flexibility in terms of mining method (conventional, mechanised or hybrid) and allows for fast production build-up to enhance the project’s shareholder value.

An optimisation study has increased mine capacity by 8.7% to 255 000 t/m of run-of-mine ore at full capacity.

The key results of the optimisation study include:
• semi-mechanising all mining;
• shortening the shafts through the removal of underground crushing, and bringing level development close to reef horizons (on-reef development), which will result in a substantial reduction in off-reef development and an increase in hoisting capacity to support the increased production rates;
• the substantial use of conveyor belts to transport ore, and chairlifts to transport mineworkers;
• using a third 6 m raise-bore shaft to further assist with ventilation and logistics (men and material) and to allow for the second alternate exit;
• increasing hoisting capacity to support the increased production rates;
• removing underground infrastructure to surface, including primary crushing; and
• revising the shaft pillar strategy o be mined at the end of the mine’s life.

Value
According to the optimisation study, the control budget estimate of nominal capital expenditure is expected to decrease from R12.03-billion to R10.69-billion, primarily as a result of the significantly improved ramp-up timeframe to full production. Real capital cost has resulted in a 9% increase, largely owing to the cost of capital equipment designed to reduce operating costs over the life-of-mine, including conveyor belts and chairlifts.

Duration
The initial 230 000 t/m production level is now planned for October 2020, as opposed to December 2022.

Latest Developments
Wesizwe has reported that is has intersected the secondary upper group two (UG2) reef at the main shaft of its Bakubung mine and will send the samples to South Africa’s State-owned Council for Mineral Technology (Mintek) in April.

Chip samples of the Merensky reef had already been collected and sent away for sampling and analysis in March, with the initial results expected in six weeks’ time.

The analysis of the bulk sampling will take about five months to complete. This sampling process is on schedule and the results will assist in the overall set-up of the planned process at the plant site.

While the sampling process is under way, work continues on the development of the Bakubung mine site as a whole, with the main and ventilation shafts now at a depth of 770 m.
Initially, the development of the ventilation shaft was ahead of the main shaft, but owing to its extensive work, both shafts are now at the same level.

These milestones demonstrate that the mining company is on track with the development of the mine and that its considerable efforts are reaping rewards.

The next major milestone on the development schedule is the completion of the shaft-sinking process. The ventilation shaft-sinking process is expected to be completed at the end of the third quarter of 2015.

The main shaft will be completed in the first quarter of 2016, which is ahead of schedule.

Underground work and surface construction are under way.

The jigging workshop required for all the steelwork for permanent equipping of the main shaft is under construction.

Key milestones for this year include the start of waste development and of the Phase 2 bulk power supply project, as well as the commissioning of the bulk water-supply tanks and key shaft bank installations.

By 2016, the bulk water and services will also be commissioned.

Key Contracts and Suppliers
WorleyParsons (feasibility study and current engineering, procurement and construction management contract); Scribante Construction (earthworks and civil work Phase 1); Benco Engineering (blasting); Blast Management & Consulting (blast monitoring); Eskom (power supply); Liviero (civil earthworks and concrete) and Aveng Grinaker-LTA Mining (shaft-sinking contract).

On Budget and on Time?
The project is two-and-a-half years ahead of schedule.

The cost of the project has been reduced from R12.03-billion to R10.69-billion.

Contact Details for Project Information
Wesizwe Platinum executive: corporate affairs and investor relations Hamlet Morule, tel +27 11 994 4600, fax +27 11 944 4601 or email hamlet@wesizwe.com.
Scribante Construction, tel +27 11 466 9232, fax +27 11 466 9233 or email office@scribanteconstruction.co.za.
WorleyParsons, tel +27 11 218 3000 or fax +27 11 218 3100.
Aveng Grinaker-LTA, +27 11 578 6000 or fax +27 11 578 6161.