Name: Beatrix operations.

Location: The Beatrix operations are located in South Africa’s Free State province, about 240 km south-west of Johannesburg, near Welkom and Virginia.

Controlling Company: Sibanye Gold.

Brief History: Beisa Shaft (Beatrix West Section) was commissioned in 1981 to exploit uranium, with the sinking of Beatrix 1 and 2 shafts (now Beatrix South Section) starting that same year. The Beisa uranium mine closed in 1984, as a result of the low prevailing uranium price.

Beatrix 1 and 2 shafts were commissioned in 1985, and exploration for the Kalkoenkrans reef (KKR) started in the vicinity of the old Beisa mine at this time. Two years later, in 1987, the sinking of two new subvertical shafts and a ventilation shaft started at Beisa mine, which was renamed Oryx (now Beatrix West section).  In 1995, the sinking of the Beatrix 3 shaft (Beatrix North Section) started. 

Since February 2013, after the unbundling from Gold Fields, Sibanye Gold has been the owner of the operation.  Beatrix successfully converted its old-order mining right to a new-order mining right in 2007. The new-order mining right is valid from February 7, 2007 to February 6, 2019, and covers 16 835 ha.

Brief Description: Beatrix is a group of shallow to intermediate depth operations, with mining occurring at depths of between 700 m and 2 200 m below surface.

Geology/Mineralisation: The mineralisation style at Beatrix is a palaeo-placer.  Gold mineralisation is hosted by auriferous and uraniferous, predominantly quartz pebble conglomerates.  The Beatrix operation exploits the Beatrix reef (BXR), which includes local facies variations thereof, and the KKR.  Both these reefs are of the Kimberley conglomerate formation.  These reefs have their origins on laterally extensive braided fluvial deposits that developed on unconformities, and are laterally continuous with relatively long-range predictability with clear patterns of mineralisation governed by sedimentary features.

The principal mining takes place on the BXR, which constitutes almost 69% of the mineral reserves. The BXR dips to the north and north-east at less than 9º, and is mined at depths of between 570 m and 1 380 m. The KKR reef is mined at Beatrix West, and comprises 29% of the mineral reserve.  This reef dips regionally to the east at about 10º in the area where mining is taking place, and overturns towards the west.  It is in this overturned limb area where the Beisa reef (BR), was previously mined for uranium and gold.  Beatrix is also processing lower-grade surface material, comprising 2% of the mineral reserves.

Reserves: Total mineral reserves as at December 31, 2014, were estimated at 33.2-million tons grading 3.4 g/t.

Resources: Total mineral resources as at December 31, 2014, were estimated at 60.9-million tons grading 5 g/t.

Product: Gold. 

Mining Method: Beatrix employs conventional breast mining, scattered mining and some pillar mining.  Surface rock dump mining is a load-haul-dump operation.

Major Infrastructure and Equipment: The operation has three operating shaft systems, with two ventilation shafts to provide additional upcast and downcast ventilation capacity. Beatrix is serviced by two metallurgical plants, with a combined mill throughput capacity of about 4.5-million tons a year.

Prospects: A prefeasibility study (PFS) on the viability of developing the BR at Beatrix West for gold and uranium production was completed in 2014.  The PFS contemplates the re-establishment of the old Beisa shaft workings, and the addition of a uranium circuit to the No 2 metallurgical plant.  The Beisa project has mineral resources of 11.4-million tons with a uranium grade of 1.1 kg/t and a gold grade of 3.3 g/t.  A detailed feasibility study is scheduled for completion in the second quarter of 2015.

With the acquisition of Wits Gold in 2014, Sibanye has secured the future of Beatrix, with significant brownfields projects adjoining Beatrix mine.  The De Bron Merriespruit project to the north is a substantial, shallow mining project, with mineral reserves of 17.4-million tons at a grade of 3.7g/t.  In addition, there are significant mineral resources at Bloemhoek and at Beisa North.  Additional detailed studies for these projects are scheduled for completion in 2015.

Contact Person: Senior VP investor relations James Wellsted.

Contact Details:
Sibanye Gold
Tel +27 11 278 9600
Fax +27 11 278 9863
E-mail james.wellsted@sibanyegold.co.za
Website https://www.sibanyegold.co.za