2010 - Lonmin

Transcription

2010 - Lonmin

Mineral Resource and Mineral
Reserve Statements
As at September 30, 2010
1
Summary and High Level Reconciliation
Notable Revisions in 2010

The Mineral Resources at Marikana were largely unchanged. The tonnage
depletion through mining was offset by slightly more Inferred Resources as a
result of additional data acquired through surface drilling. Exploration drilling at
Marikana in FY10 was focussed on infill drilling rather than Mineral Resource
extension.

A revision of the relative proportions of the individual precious metals resulted in
slight adjustments to the Platinum quantities at Marikana and Pandora.

The Nickel and Copper grades of the Marikana Mineral Resource were reviewed
and the average Nickel and Copper percentages are herein reported for each ore
type.

The Marikana Mineral Reserve grade increased by 3% (0.12 g/t). As a result the
3PGE+Au content of the reserve was slightly higher (0.6 Moz). This was largely
due to several areas of Probable Reserves being removed from the reserve and
replaced by new higher grade reserves.

The Proved Reserves at Marikana increased by 24%, reflecting the companies
focus on Ore Reserve Development in 2010.

The down-dip extension to the Pandora Plan 4 area was included in the Mineral
Reserve in 2010, resulting in approximately 0.3 Moz of 3PGE+Au being added to
in the Probable Reserve category attributable to Lonmin.

Modelling of the assay results received from the prior year’s diamond drilling at
Akanani further increased the confidence in the P2 portion of the Mineral
Resource.
Over 80% of the P2 Resource is now declared as an Indicated
Resource. The quantity of P2 Mineral Resource increased by 3% and 3PGE+Au
grades remained largely unchanged, confirming the robustness of the grade of
this portion of the Akanani Mineral Resource. In addition, the volume and grade
of the underlying P1 Mineral Resource was increased, albeit in the lower
confidence category (Inferred Resources).

An Inferred Resource has been declared on the Denison Property, near Sudbury
Ontario, Canada which is subject to a JV formed with INCO (now Vale) in 2005.
2
This is the first Mineral Resource declared for the JV and although the initial
resource is relatively small it demonstrates the economic potential for this style of
mineralisation in the area.

The total 3PGE+Au content of the overall Lonmin Mineral Resource increased by
2% and the grade decreased marginally.
This was primarily a result of the
increase in the Inferred P1 Resource at Akanani.
A summary of the changes in the Lonmin Mineral Resources is shown in the following
table and should be read in conjunction with the Key Assumptions section of this report.
Detailed breakdowns of these Mineral Resources into their respective confidence
categories can be found in the sections specific to the individual areas.
Mineral Resources (Total Measured, Indicated & Inferred)1,4
30-Sep-2010
Area
Mt5
30-Sep-2009
3PGE+Au
Pt
g/t
Moz
Moz
Mt5
3PGE+Au
Pt
g/t
Moz
Moz
Marikana
740.1
5.05
120.1
71.7
750.7
5.01
120.8
71.2
Limpopo2
144.7
4.23
19.7
10.0
144.7
4.22
19.6
10.0
Limpopo Baobab shaft
46.1
3.91
5.8
3.0
46.1
3.91
5.8
3.0
Akanani
216.0
3.84
26.7
10.9
176.6
3.96
22.5
9.4
Pandora JV
54.8
4.30
7.6
4.5
54.9
4.29
7.6
4.7
Loskop JV3
10.1
4.04
1.3
0.8
10.1
4.04
1.3
0.8
Sudbury PGM JV1,3
0.35
6.30
0.07
0.04
-
-
-
-
1,212.0
4.65
181.1
100.9
1,183.1
4.67
177.6
99.0
Total Resource
Notes
1) All figures are reported on a Lonmin Plc attributable basis, the relative proportions of ownership
per project being shown in the Key Assumptions section of this report.
2) Limpopo2 excludes Baobab shaft.
3) Loskop and Denison JV3 exclude Rh, due to insufficient assays, and therefore 2PGE+Au is
reported.
4) Resources are reported Inclusive of Reserves.
5) Quantities and grades have been rounded to one or two decimal places, therefore minor
computational errors may occur.
A summary of the changes in the Lonmin Mineral Reserves is shown in the following
table and should be read in conjunction with the Key Assumptions section of this report.
Detailed breakdowns of these Mineral Reserves into their respective confidence
categories can be found in the sections specific to the individual areas.
3
Mineral Reserves (Total Proved & Probable)1
30-Sep-2010
Area
Mt3
30-Sep-2009
3PGE+Au
Pt
g/t
Moz
Moz
Mt3
3PGE+Au
Pt
g/t
Moz
Moz
Marikana
293.9
4.22
39.9
24.1
297.5
4.11
39.3
23.8
Limpopo2
42.4
3.20
4.4
2.2
40.1
3.23
4.2
2.1
Limpopo Baobab shaft
9.4
3.16
1.0
0.5
9.4
3.16
1.0
0.5
Pandora JV
5.2
3.98
0.66
0.39
3.1
4.25
0.42
0.27
350.8
4.07
45.9
27.1
350.1
3.98
44.8
26.6
Total Reserve
Notes
1) All figures are reported on a Lonmin Plc attributable basis, the relative proportions of ownership
per project being shown in the Key Assumptions section of this report.
2) Limpopo2 excludes Baobab shaft.
3) Quantities have been rounded to one decimal place and grades have been rounded to two
decimal places, therefore minor computational errors may occur.
4
Key assumptions pertaining to the 2010 Lonmin
Mineral Resource and Reserve Statement

Mineral Resources are reported inclusive of Mineral Reserves. Resources that are
converted to Reserves are also included in the Mineral Resource statement.

All quoted Resources and Reserves includes Lonmin's attributable portion only.
There have been no changes in the percentage attributable to Lonmin during the
year, aside from including the Sudbury resource. The following percentages were
applied to the total Mineral Resource and Reserve for each property:
Limpopo –
Baobab,
Limpopo –
Marikana
Dwaalkop JV Doornvlei,
Zebediela
Lonmin
Attributable
82%
41%
82%
Akanani
Pandora
Loskop
Sudbury
PGM
74%
34.85%
41%
50%

Incwala Resources, Lonmin’s BEE partner, owns 18% of both Western
Platinum Limited and Eastern Platinum Limited, and 26% of Akanani.

Limpopo includes Dwaalkop JV which is a Lonmin managed JV between
Mvelaphanda Resources (50%) and Western Platinum (50%).

Pandora JV: Eastern Platinum Limited has an attributable interest of 42.5% in
the Pandora Joint Venture together with Anglo Platinum (42.5%),
Mvelaphanda Resources (7.5%) and the Bapo Ba Mogale Mining Company
(7.5%).

Loskop JV: Western Platinum Limited has an attributable interest of 50% in
the Loskop Joint Venture with Boynton Investments.

Sudbury PGM JV - PGE grades are stated as Pt+Pd+Au (3E). Through the
JV, Lonmin acquires its pro rata share, currently a nominal 50%, of the
product from any PGE deposit developed on the participating properties. The
agreement is that Lonmin will be allocated its pro-rata share in PGE’s and
Vale will be allocated its pro-rata share in Nickel, Copper, Cobalt, Gold and
Silver. The exchange of metals will be governed by prevailing metal prices at
the time of the refined metal production.
5

Where grades are reported as 3PGE+Au these are a summation of the Platinum,
Palladium, Rhodium and Gold grades. Modelling of available assay information,
obtained from drillhole core, indicates that the proportion of 3PGE+Au contained in
5PGE+Au, which includes Ruthenium and Iridium, is approximately as follows:
UG2
Merensky
Platreef
Marikana
0.81
0.92
-
Limpopo
0.86
0.93
-
Akanani
-
-
0.95
Pandora
0.81
-
-

Where Nickel (Ni) and Copper (Cu) grade estimates are derived from sufficient
reliable information for the various Mineral Resources, they are reported as average
grades in percent. These grades represent acid soluble proportions. Acid soluble
percentages of Ni and Cu are closely correlated to the metals present as sulphide
minerals.

Mineral Resources are reported as "in-situ" tonnes and grade and allow for
geological losses such as faults, dykes, potholes and Iron Rich Ultramafic Pegmatite
(IRUP).

Mineral Resources are estimated using a minimum true width of at least 90 cm and
therefore may include some diluting material.

Proved and Probable Mineral Reserves are reported as tonnes and grade expected
to be delivered to the mill, are inclusive of diluting materials and allow for losses that
may occur when the material is mined.

Mine tailings dams are excluded from the above Mineral Resource summary.

For economic studies and the determination of pay limits, consideration was made of
both short and long term revenue drivers. The following long term global
assumptions were used:

Precious Metals (per Troy Ounce): Pt $1,800, Pd $500, Rh $3,000, Ru $200,
Ir $450, Au $800.

Base Metals (per metric tonne): Ni $15,000, Cu $5,000.

Average exchange rate of US$1 to ZAR8.28.

Dilutions are quoted as waste tonnes / waste + ore tonnes in percent.

Unless otherwise stated, the Lonmin Mineral Resources and Reserves estimates
were prepared or supervised by various persons employed by Lonmin.
6
Compliance and Audit
The 2010 Lonmin Mineral Resources and Mineral Reserves Report for the South
African areas was prepared in accordance with the guidelines as defined in the 2007
version of the South African Code for Reporting of Mineral Resources and Mineral
Reserves (the 'SAMREC Code'). The SAMREC Code sets out minimum standards,
recommendations and guidelines for Public Reporting of Exploration Results, Mineral
Resources and Mineral Reserves in South Africa. It has been drawn up by the Working
Group of the SSC Committee under the joint auspices of the Southern African Institute
of Mining and Metallurgy (SAIMM) and the Geological Society of South Africa (GSSA).
An updated SAMREC Code was promulgated by the SAIMM and the Geological Society
of South Africa (‘GSSA’) in June 2007. The updated code followed a review of the
March 2000 Code that has been conducted since 2004, and supersedes the 2000
edition.
Concurrently with the evolution of the SAMREC Code, the Committee for Mineral
Reserves International Reporting Standards (CRIRSCO), initially a committee of the
Council of Mining and Metallurgical Institutions (CMMI), has, since 1994, been working
to create a set of standard international definitions for the reporting of Mineral
Resources and Mineral Reserves. As a result of the CRIRSCO/CMMI initiative,
considerable progress has been made towards widespread adoption of globally
consistent reporting standards. These are embodied in similar Codes, guidelines and
standards published and adopted by the relevant professional bodies around the world.
The definitions in the 2007 edition of the SAMREC Code are either identical to, or not
materially different from, those existing international definitions.
Mineral Resources reported for the Canadian areas were reported using Canadian
Institute of Mining and Metallurgy and Petroleum (CIM) Definition Standards on Mineral
Resources and Reserves (CIM Definition Standards). These standards establish
definitions and guidelines for the reporting of exploration information, mineral resources
and mineral reserves in Canada. The Mineral Resource and Mineral Reserve
Definitions were incorporated, by reference, in National Instrument 43-101 – Standards
of Disclosure for Mineral Projects (NI 43-101). Lonmin considers that the CIM
definitions of Mineral Resources and their categories are not materially different for
those defined by SAMREC.
The definitions of Mineral Resources and Mineral Reserves as contained in the 2007
edition of the SAMREC Code are as follows:
A ‘Mineral Resource’ is a concentration or occurrence of material of economic interest
in or on the Earth’s crust in such form, quality and quantity that there are reasonable
and realistic prospects for eventual economic extraction. The location, quantity, grade,
continuity and other geological characteristics of a Mineral Resource are known, or
estimated from specific geological evidence, sampling and knowledge interpreted from
an appropriately constrained and portrayed geological model. Mineral Resources are
subdivided, and must so be reported, in order of increasing confidence in respect of
geo-scientific evidence, into Inferred, Indicated and Measured categories.
A ‘Mineral Reserve’ is the economically mineable material derived from a Measured
and/or Indicated Mineral Resource. It includes diluting and contaminating materials and
allows for losses that are expected to occur when the material is mined. Appropriate
assessments to a minimum of a Pre-Feasibility Study for a project, or a Life of Mine
7
Plan for an operation, must have been carried out, including consideration of, and
modification by, realistically assumed mining, metallurgical, economic, marketing, legal,
environmental, social and governmental factors (the Modifying Factors).
Such
modifying factors must be disclosed.
The Relationship between Exploration Results, Mineral Resources and Mineral Reserves
(SAMREC)
An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which volume
and/or tonnage, grade and mineral content can be estimated with a low level of
confidence. It is inferred from geological evidence and sampling and assumed but not
verified geologically and/or through analysis of grade continuity. It is based on
information gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drillholes that may be limited in scope or of uncertain
quality and reliability.
An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be estimated
with a reasonable level of confidence. It is based on exploration, sampling and testing
information gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drillholes. The locations are too widely or inappropriately
spaced to confirm geological and/or grade continuity but are spaced closely enough for
continuity to be assumed.
A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be estimated
8
with a high level of confidence. It is based on detailed and reliable exploration,
sampling and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drillholes. The locations are
spaced closely enough to confirm geological and grade continuity.
A ‘Probable Mineral Reserve’ is the economically mineable material derived from a
Measured and/or Indicated Mineral Resource. It is estimated with a lower level of
confidence than a Proved Mineral Reserve. It includes diluting and contaminating
materials and allows for losses that are expected to occur when the material is mined.
Appropriate assessments to a minimum of a Pre-Feasibility Study for a project, or a Life
of Mine Plan for an operation, must have been carried out, including consideration of,
and modification by, realistically assumed mining, metallurgical, economic, marketing,
legal, environmental, social and governmental factors. Such modifying factors must be
disclosed.
A ‘Proved Mineral Reserve’ is the economically mineable material derived from a
Measured Mineral Resource. It is estimated with a high level of confidence. It includes
diluting and contaminating materials and allows for losses that are expected to occur
when the material is mined. Appropriate assessments to a minimum of a Pre-Feasibility
Study for a project, or a Life of Mine Plan for an operation, must have been carried out,
including consideration of, and modification by, realistically assumed mining,
metallurgical, economic, marketing, legal, environmental, social and governmental
factors. Such modifying factors must be disclosed.
Competent Persons
Various persons, as stated in the relevant sections of this report, assisted in the
preparation of the Mineral Resource and Mineral Reserve estimates. These estimates
were reviewed and signed off by the Lonmin Competent Persons; J.C. Witley (Mineral
Resources) and J.H.K. Hudson (Mineral Reserves). The Sudbury Resources were
signed off by Vale’s Qualified Person, A.D. Burton, as stated in the Sudbury section of
this report.
J. C. Witley (BSc Hons, GDE) is a Competent Person as defined by the SAMREC Code,
being registered as a Professional Natural Scientist with the South African Council for
Natural Scientific Professions (SACNASP) and a member of the Geological Society of
South Africa (GSSA). Mr Witley has over 20 years experience in the base and precious
metals mining industry and with more than five years experience relevant to PGE
Mineral Resource estimation.
J. H. K. Hudson (BSc Hons, MBA) is a Competent Person as defined by the SAMREC
Code, being registered as a professional mining engineer with the Engineering Council
of South Africa (ECSA) and a fellow of the Southern African Institute of Mining and
Metallurgy (SAIMM). Mr Hudson has over 20 years experience in the base and
precious metals mining industry with more than five years relevant experience in
precious metal Mineral Reserve estimation.
………………………………………….
………………………………….......
Mr. J. C. Witley
Mr J. H. K. Hudson
29 October 2010
29 October 2010
9
Audit
External Audit
Lonmin’s audit policy is that external audits are carried out on active Resources and
Reserves at least every three years. Where material differences to the estimates occur
within this timeframe, either as a result of additional data or a change in assumptions,
the areas subjected to these changes are audited by an Independent Expert. Internal
reviews by Lonmin’s Competent Persons are completed prior to publication of the
estimates. The most recent external audits completed relevant to Lonmin’s Mineral
Resources and Reserves are as follows:

Snowden Mining Industry Consultants performed an independent audit of Lonmin’s
Marikana Mineral Resource and Reserve estimates in 2009 and no material issues
were identified. The changes to the Mineral Resource and Reserve statement from
2009 to 2010 are not considered material and no external audits were completed
during the reporting period.

Pandora Mineral Resource and Reserves in 2008. The 2008 estimates were
endorsed by Snowden. No material changes to the Mineral Resource have
occurred since the 2008 audit. Additional areas have been included in the Mineral
Reserve due to approval of a further extension of the mining area from the E3
Incline.

Akanani Mineral Resource and Reserves in 2008. The 2010 Mineral Resource
estimate has not been audited externally as the changes to the previous Mineral
Resource estimates are not considered material to the project.

SRK completed an audit of the Lonmin Limpopo Mineral Resource and Reserve
estimates in 2008 for the Baobab Mine and Phase 2 Project. The 2008 estimates
were endorsed by SRK. These estimates remain largely unchanged since 2008.

No changes have been made to the Loskop 2007 Mineral Resource estimates.
RSG Global’s (now Coffey Mining) independent audit and endorsement of the
Mineral Resource estimate of the Rietfontein area of the Loskop JV in September
2007 remains applicable to the estimates reported in 2010.
10
Location within the Bushveld Complex of South Africa
Currently, Lonmin’s entire South African Platinum Group Element (PGE) Mineral
Resources and Mineral Reserves are contained within the Bushveld Complex, located
in the Republic of South Africa. The Bushveld Complex hosts the World’s largest
resources of PGE’s, chromium, and vanadium. The PGE’s (Platinum, Palladium,
Rhodium, Ruthenium, Osmium and Iridium) are intimately associated with Gold, Nickel
and Copper, which form important bi-products of PGE mining in South Africa.
The Bushveld Complex intruded 2.06 billion years ago into the supracrustal
sedimentary sequence of the Transvaal Supergroup, and is the largest known layered
intrusion on Earth, underlying an area of approximately 66,000 km². The Bushveld
Complex consists of four major limbs, Lonmin’s Mineral Resources being contained
within all of the major limbs:

the Western Limb (Marikana Operations and Pandora);

the Eastern Limb (Limpopo Operations);

the Northern Limb (The Akanani Project); and

the Bethal Limb (Loskop Joint Venture).
Locations of Lonmin’s Mineral Resources
Akanani
Limpopo
Northern Limb
Eastern Limb
Marikana
Western Limb
Bethal Limb
Loskop
Pandora
Approximate schematic locations of Lonmin Mineral Resources
N
0
100 km
Lonmin’s Mineral Resources in the Eastern and Western Limbs are hosted within the
well known Merensky and UG2 Reefs. Both of these units occur in the Upper Critical
Zone of the Rustenburg Layered Suite, which is a series of mafic and ultramafic cyclic
units within which all of the known economic PGE mineralised layers in these areas
occur. The Merensky Reef is a layer of mineralisation that occurs within, or in close
11
association with, the Merensky Pyroxenite Unit. The UG2 Reef consists of the UG2
Chromitite Layer, containing most of the PGE mineralisation, and may include less well
mineralised units or portions of these units either underlying or overlying the main UG2
Chromitite Layer.
Lonmin’s PGE Mineral Resources in the Northern Limb are contained within the Platreef
Pyroxenite unit that is considered to represent the Upper Critical Zone in this area. The
Platreef Pyroxenite can be in the order of 100’s of metres thick and contains zones of
PGE mineralisation that are associated with various lithological sub-divisions of the
Platreef Pyroxenite.
At the Loskop Joint Venture, several mineralised units have been identified that are
contained within a sequence that Lonmin considers to be stratigraphically equivalent to
the Upper Critical Zone of other areas of the Bushveld Complex. Lonmin’s Mineral
Resources at Loskop are contained within the Upper Mineralised Pyroxenite (UMP).
Bushveld PGE Mineral Resources are frequently disturbed by geological conditions
which may result in losses to the Mineral Resource area. The areas affected are
classified as geological losses, which are commonly, potholes, fault loss, intrusive
dykes and Iron Rich Ultramafic Pegmatite (IRUP). Iron rich fluids associated with the
IRUP replace certain formations and in some instances result in a geological loss.
IRUP tends to affect the Merensky Reef more severely than the UG2. Neither potholes
nor IRUP replacement have been recognised on the Platreef at the Akanani Project.
12
Marikana Operations
Mineral Reserves and Resources
30 September 2010
The Marikana Operations (Western Platinum Limited and Eastern Platinum Limited) are
located in the Marikana district to the east of the town of Rustenburg in the North West
Province of the Republic of South Africa.
The Marikana mine leases are underlain by the Merensky Reef and the UG2 Chromitite
Layer over a strike length of approximately 27 km. Both the Merensky Reef and the
UG2 Chromitite Layer sub-outcrop below a thin layer of black cotton soil along the strike
length of the lease area, although most of the near outcrop ore has since been removed
by open pit mining. The layers strike in an approximately east-west direction and
generally dip between 8°N in the west, gradually increasing to 13°N in the extreme east
of the property. The UG2 Chromitite Layer underlies the Merensky Reef by between
130 m and 210 m, the middling between the two reefs gradually increasing across the
lease area from west to east. The layered nature of the Bushveld Complex makes it
possible to identify different lithological and stratigraphic units, which facilitates the
interpretation of geological disturbances such as dykes, faults, potholes and IRUP.
At the Marikana Operations, the UG2 Reef normally comprises a massive chromitite
layer, which varies in thickness over the property but is generally between 1.0 m and
1.4 m thick. Localised areas of internal waste can occur and the internal waste is
necessarily included in the Mineral Resource.
The Merensky Reef varies across the Marikana property and this variability is used to
define a number of facies (or sub-types) based on the occurrence of distinct lithological
units within the reef. Two major types, pegmatoidal and non-pegmatoidal facies, occur.
These have further been separated into a total of seven different facies based on the
occurrence of thin chromitite layers in the order of several millimetres thick. It has long
been recognised that grade and thickness characteristics are controlled by the facies
and it is important that this is recognised in correctly modelling the Mineral Resource.
All Merensky Mineral Resource cuts at Lonmin are therefore referenced on distinct and
continuous layers within the Merensky package. In general, the facies change from
east south-east to west north-west. Lower grade non-pegmatoidal types occur in the
east and the higher grade pegmatoidal types occur in the western and deeper areas of
the property, in particular the deeper areas of the Karee vertical shaft blocks, which
comprise large portions of Lonmin’s Indicated and Inferred Resources.
Extensive mining, surface diamond drilling and a number of seismic and magnetic
surveys have aided in establishing the geological characteristic of the Marikana UG2
and Merensky Reefs.
A total of over 700 surface diamond drillholes have been completed in prior years and
drilling is ongoing on a continuous basis in order to improve confidence and extend the
area of the Mineral Resource. During the 2010 financial year, an additional 15,600 m
were drilled in order to increase the confidence of the Mineral Resources estimated for
the Marikana area. At least four reef cuts are obtained from each surface drillhole,
providing material for assay as well as mineralogical, metallurgical and geotechnical
test-work. Standard procedures are used to gather the geological data, which are
stored in a commercial database.
13
Most of the mining right’s area has been covered by airborne or ground magnetic
surveys. 3D seismic surveys allow for significantly higher confidence in long term
planning than what can be achieved on the basis of drilling and aeromagnetic surveys
alone. A high resolution 3D seismic survey was completed over the K4 area in 2000
and in 2008 a similar 3D seismic survey was completed, covering the areas within and
to the north of the Hossy and Saffy Shaft blocks. Data acquisition for a third 3D seismic
survey has recently been completed, covering a large portion of the northern and
deeper portions of our western Marikana leases.
3D Seismic and Aeromagnetic Coverage
LEGEND
LONMIN - MARIKANA OPERATIONS
MINING RIGHT
PROSPECTING RIGHT
3D SEISMIC AND AEROMAGNETIC
SURVEY COVERAGE
AEROMAG AREA
SEISMIC AREA
LONMIN
SCALE IN METRES
1000
500
0
1000
2000
Gauss Conform Projection,
Central Meridian 27° East.Clarke 1880 Spheroid.
3000
4000
5000
2010PROJECTS/LPD/3D SEISMIC
Netta Louw/14 Sept 2010
2010 SURVEY
PANDORA
JOINT VENTURE
K4 VERTICAL SHAFT
K3 VERTICAL SUB INC
ROWLAND SUB VERTICAL INC
SAFFY VERTICAL SHAFT
ROWLAND VERTICAL SHAFT
E3 INC SHAFT
HOSSY VERTICAL SHAFT
K3 VERTICAL SHAFT
1 VERTICAL SHAFT
1 EAST LIFT SHAFT
4 BELT INC SHAFT
E1 INC SHAFT
E2 INC SHAFT
NEWMAN INC SHAFT
B3 INC SHAFT
The Merensky Reef and the UG2 Reef are mined simultaneously in the lease area at an
average depth of approximately 500 m. Mining is by underground and open cast mining
methods with shallow incline, deep vertical shaft or open pit access to the orebodies.
The underground mining methods at Marikana are conventional up-dip, down-dip and
breast stoping as well as Mechanised XLP (extra low profile) and hybrid (a combination
of mechanised and conventional methods) stoping. Ore sourced from shafts using
conventional up-dip, down-dip and breast stoping methods accounted for approximately
81% of the Marikana underground ore production in the 2010 financial year.
Mineral Reserve estimates are continuously reviewed, considering both best mining
practice and historical mining performance. These estimates are supported by the
outputs of sophisticated Mine Planning systems.
Revisions to the Mineral Resource and Reserve Completed During 2010
No significant Changes to the Marikana Mineral Resource estimates were made:

The tonnage depletion through mining was partially offset by slightly more
Inferred Resources as a result of additional data acquired through surface drilling.
14
Exploration drilling at Marikana in FY10 was focussed on infill drilling rather than
Mineral Resource extension.

The grade of the Marikana UG2 Mineral Resource increased slightly (2%) due to
the increased proportion of higher grade UG2 drillhole intersections in the deeper
exploration areas. Several low grade and particularly narrow UG2 drillhole
intersections that were confirmed to be affected by potholing were removed from
the estimation database.

A revision of the relative proportions of the individual precious metals resulted in
slight adjustments to the Platinum quantities at Marikana.

The Nickel and Copper grades of the Marikana Mineral Resource were reviewed
and the average Nickel and Copper percentages are herein reported for each ore
type.

Minor changes were made to the expected geological losses for both the
Merensky and UG2 Reef Mineral Resources. For the Merensky Reef, the
average geological loss remains 17% and for the UG2 the average geological
loss has decreased from 17% to 15%. Geological losses are applied to resource
block areas in addition to those areas removed as a result of known and defined
major geological structures in which no Mineral Resources are believed to be
developed.

The Proved Reserves at Marikana increased by 24% from 2009, reflecting the
companies focus on Ore Reserve Development in 2010.

The Merensky Reserve grade for Marikana increased by 8% in the western
areas, mainly as a result of rescheduling work conducted at K4. This resulted in
improved planned extraction of the higher grade Brakspruit facies on the western
boundary compared to 2009.

The mine extraction strategy for the Middelkraal UG2 block was revised in 2010
and this was incorporated into the Marikana Long Term Plan. The utilisation of
the Rowland infrastructure and development through the Elandsdrift fault zone
enhances the value of this area of the Mineral Resource due to production ramp
up commencing away from a large geological anomaly (slump and IRUP affected
area) affecting the Middelkraal area. The Middelkraal slump area continues to be
excluded from the Mineral Reserve pending further investigations.
15
Marikana Merensky Reef Resource and Reserve Plan
Y-45500
Y-50000
Y-55000
Y-60000
Y-65000
Y-70000
BOUNDARY LEGEND
FARM BOUNDARIES
LONMIN MINING LICENCE
LONMIN PROSPECTING RIGHT
SHAFT BLOCK BOUNDARIES
MINING LEGEND
MINED OUT / DEPLETED
X+2835000
X+2835000
PROVED RESERVES
30m
FAULT
DYKE
ULTRAMAFIC PEGMATITE
MERENSKY BOREHOLES
CLASSES LEGEND
EXCLUDED FROM RESOURCES
DUE TO FAULTING
MEASURED RESOURCES
INDICATED RESOURCES
INFERRED RESOURCES
K4 SHAFT
K3 SUB INC
X+2840000
X+2840000
PROBABLE RESERVES
ROWLAND SUB INCLINE
ROWLAND SHAFT
K3 SHAFT
NEWMAN SHAFT
LONMIN PLATINUM
1B INCLINE
Marikana Operations LONMIN
X+2845000
X+2845000
1 SHAFT
MERENSKY REEF
MINERAL RESOURCES AND RESERVES
AS AT 30 SEP 2010
SCALE IN METRES
1000
500
0
1000
2000
Y-45500
Y-50000
Y-55000
3000
2010 PROJECT/OR/
LPDOR10M DENNIS
27 OCT 2010
Central Meridian 27° East. Clarke 1880 Spheroid.
Y-60000
Y-65000
Y-70000
Y-60000
Y-65000
Y-70000
Marikana UG2 Reef Resource and Reserve Plan
Y-45500
Y-50000
Y-55000
BOUNDARY LEGEND
FARM BOUNDARIES
LONMIN PROSPECTING RIGHT
MINING LEGEND
MINED OUT / DEPLETED
30m
X+2835000
X+2835000
PROVED RESERVES
FAULT
DYKE
ULTRAMAFIC PEGMATITE
UG2 BOREHOLES
CLASSES LEGEND
EXCLUDED FROM RESOURCES
DUE TO FAULTING
MEASURED RESOURCES
INDICATED RESOURCES
INFERRED RESOURCES
X+2840000
X+2840000
PROBABLE RESERVES
K4 SHAFT
ROWLAND
SUB INCLINE
SAFFY SHAFT
K3 SUB INCLINE
E3 INCLINE
ROWLAND SHAFT
HOSSY SHAFT
K3 SHAFT
E2 INCLINE
E1 INCLINE
8 E3 0
8 E1
9
8 E1 6
8 E1
7
7 E2
9
W 19
8
1 LIFT SHAFT
X+2845000
1 SHAFT
6 W2 8 W2
NEWMAN INCLINE
LONMIN PLATINUM
5 W4 2
4W 45
E1
4 BELT INCLINE
OUTCROP
U2
UG2 REEF
OUTCROP
OUTCROP
AS AT 30 SEP 2010
SCALE IN METRES
1000
500
0
1000
Y-45500
Y-50000
Y-55000
Y-60000
16
Y-65000
2000
3000
2010 PROJECT/OR/
LPDOR10U DENNIS
27 OCT 2010
Y-70000
X+2845000
OUTCROP
7 W2 6
7W 27
7W 2
8
6 W2 8 W1
Marikana Mineral Resources
Mineral Resources
30-Sep-2010
30-Sep-2009
3PGE+Au
Ore source
Merensky
West
Merensky
East
Merensky
Category
Pt
g/t
Moz
Moz
g/t
Moz
Moz
5.1
4.62
0.8
0.5
3.6
4.49
0.5
0.3
Indicated
77.4
5.63
14.0
9.0
82.0
5.89
15.5
9.8
Inferred
36.3
7.68
9.0
5.6
38.4
7.26
9.0
5.7
Sub Total
118.7
6.21
23.7
15.1
124.0
6.27
25.0
15.7
Indicated
95.6
3.94
12.1
7.2
98.3
3.90
12.3
7.3
Inferred
66.8
4.35
9.3
5.8
66.8
4.38
9.4
5.7
Sub Total
162.4
4.11
21.4
13.0
165.1
4.09
21.7
13.0
Measured
5.1
4.62
0.8
0.5
3.6
4.49
0.5
0.3
Indicated
173.0
4.69
26.1
16.2
180.3
4.80
27.8
17.1
Inferred
103.1
5.52
18.3
11.5
105.2
5.43
18.4
11.3
281.1
4.99
45.1
28.2
289.1
5.03
46.7
28.7
Measured
24.9
5.30
4.2
2.5
27.4
5.26
4.6
2.8
Indicated
263.2
5.03
42.6
24.8
279.9
4.95
44.5
25.3
Inferred
170.8
5.12
28.1
16.2
154.4
5.03
24.9
14.4
458.9
5.08
74.9
43.6
461.6
4.99
74.1
42.5
Measured
30.0
5.18
5.0
3.0
31.0
5.17
5.1
3.1
Indicated
436.1
4.90
68.7
41.1
460.2
4.89
72.3
42.3
Inferred
273.9
5.27
46.4
27.7
259.6
5.19
43.3
25.7
740.1
5.05
120.1
71.7
750.7
5.01
120.8
71.2
Total UG2
Total
3PGE+Au
Mt
Measured
Total Merensky
UG2
Pt
Mt
Total Resources
17
Indicative Prill Splits and Nickel and Copper grades in Resource – Marikana
Individual Precious Metal Splits
Marikana Merensky Reef
Marikana UG2
7%
12%
4%
1%
27%
Pt
Pt
29%
Pd
62%
58%
Pd
Rh
Rh
Au
Au
Average Nickel and Copper Grade of Marikana Reefs
0.25%
0.20%
Grade %
0.18%
0.15%
Nickel%
0.10%
Copper%
0.10%
0.05%
0.03%
0.01%
0.00%
Merensky Reef
UG2
18
Marikana Mineral Reserves
Mineral Reserves
30-Sep-2010
30-Sep-2009
3PGE+Au
Ore source
Merensky
West
Merensky
East
Category
Pt
g/t
Moz
Moz
g/t
Moz
Moz
2.2
3.56
0.3
0.2
1.6
3.44
0.2
0.1
Probable
76.4
4.56
11.2
7.2
77.4
4.21
10.5
6.6
Sub Total
78.7
4.53
11.5
7.4
78.9
4.20
10.6
6.7
Probable
11.6
3.26
1.2
0.7
9.3
3.37
1.0
0.6
Sub Total
11.6
3.26
1.2
0.7
9.3
3.37
1.0
0.6
90.3
4.37
12.7
8.1
88.3
4.11
11.7
7.3
7.4
4.51
1.1
0.6
6.4
4.38
0.9
0.5
196.1
4.15
26.1
15.4
202.8
4.10
26.7
15.9
203.6
4.16
27.2
16.0
209.3
4.11
27.6
16.5
9.7
4.29
1.3
0.8
8.0
4.19
1.1
0.7
284.2
4.22
38.6
23.3
289.5
4.11
38.2
23.1
293.9
4.22
39.9
24.1
297.5
4.11
39.3
23.8
Proved
Probable
Total UG2
Total
3PGE+Au
Mt
Proved
Total Merensky
UG2
Pt
Mt
Proved
Probable
Total Reserves
Notes on the Marikana Mineral Resources and Reserves
The Marikana Mineral Resources and Reserves information was prepared on the following
basis:
1) The Marikana Mineral Resources and Reserves include only Lonmin's attributable
portion.
2) The eastern Merensky area represents the area east of the Elandsdrift Fault that
separates the Newman and Hossy blocks from the Rowland Shaft block. The western
area comprises the various Karee and Rowland Shaft blocks and the areas down-dip
from them.
3) Merensky Reef widths used for Mineral Resource estimates are based on a practical
mining cut of not less than 90 cm and therefore may include some diluting material.
4) The UG2 Reef width used for Mineral Resource estimates are based on a practical
mining cut of not less than 90 cm. This cut consists of the UG2 Chromitite Layer and
internal waste partings and may include some external dilution in order to honour the
practical minimum mining cut width.
5) Measured Resources are typically declared in and immediately adjacent to areas where
reef has been exposed in underground development and sampling has taken place.
Channel samples are taken from underground reef intersections using a diamond saw
and are assayed at Lonmin’s Marikana laboratory.
The channel samples are
composited into individual reef intersections, which are used to evaluate resource blocks
by applying an Ordinary Kriging estimation method.
6) Indicated and Inferred Resources are estimated from the results of surface diamond
drillhole reef intersections and may incorporate underground channel sample data where
19
these resources occur close to mined areas. At least four reef intersections are drilled
from each drillhole and three of these intersections are sampled and assayed at a
commercial laboratory. The samples of each deflection are composited into individual
reef intersections, which are used to evaluate resource blocks by applying an Ordinary
Kriging estimation method.
7) Confidence in the geological model, reef continuity, drilling density and geostatistical
analysis is used to define resource classes. Indicated Resources at Marikana are
considered in areas where drillhole spacing is less than 800 m. Inferred Mineral
Resources are considered in areas where reef intersections are spaced between 800 m
and 1,600 m. The Inferred Resources at Marikana are generally constrained by the
sparse drillhole grid and are extrapolated by a maximum distance of 800 m from the
drillhole grid into the down dip areas.
8) The Mineral Resources at Marikana occur from near surface to less than 2,000 m below
surface. The average width of the UG2 is 1.19 m and the average width of the Merensky
Reef is 1.03 m.
9) Remnant areas enclosed by stoped out areas (otherwise known as white areas) are not
part of the Measured Mineral Resource or Proved Reserve until it has been established
that there is a reasonable intention and prospect of extracting ore from these areas.
10) An average of 17% geological loss has been applied for the Merensky Reef and 15% for
the UG2 Reef. Geological losses include those from dykes, fault loss, potholes and
IRUP. Geological losses are applied to resource block areas in addition to those areas
removed as a result of known major geological structures in which no Mineral Resources
are believed to be developed.
11) Merensky Mineral Resources are reported above a minimum grade of 2.5 g/t 3PGE+Au.
Block estimates below this grade are situated in portions of the eastern area of the Mine
Lease, where no underground mining of Merensky Reef has taken place, and are of
thick pyroxenite Eastplats Facies.
12) All UG2 block estimates are greater than 3.37 g/t 3PGE+Au. No UG2 estimates have
been excluded from the Mineral Resource solely on the basis of grade.
13) Modifying factors applied to convert Mineral Resources to Mineral Reserves are derived
from the Mineral Reserve Management system on Lonmin Platinum’s current operations.
All survey, sampling, stope-width control and geological data are stored in electronic
databases and mine plans are captured electronically in a three dimensional information
system.
14) Proved Reserves are converted from fully developed Measured Resources allowing for
an accurate assessment of modifying factors for the individual mining block. Probable
Reserves are converted from Indicated and undeveloped Measured Resources using
estimated dilution and extraction factors for the individual area taking cognisance of the
reef type and planned mining method.
15) Mineral Reserve estimates are supported by the output of sophisticated mine planning
systems.
16) Average dilution applied to the Merensky Reef is 22% and to the UG2 is 17%.
17) Average losses applied as a result of both mining losses and pillar designs are
approximately 13% for the Merensky Reef and approximately 16% for the UG2.
18) All Mineral Reserves are shallower than 1,400 metres below surface.
19) All projects that are classified as Mineral Reserves have passed the economic test as
prescribed by the SAMREC code. All economic evaluations were done on a consistent
basis using the Lonmin economic model.
20
20) The reserve cut off grade for UG2 reef is below the reserve grade
21) The reserve cut off grade for Merensky reef is below the reserve grade
22) Appropriate assessments to a level of at least Pre-Feasibility or Life of Mine Plan have
been carried out in order to declare Mineral Reserves. The following table highlights the
status of the project pipeline with particular relevance to the conversion of Mineral
Reserves from Mineral Resources.
Mineral Resource to Reserve Conversion Table
Marikana Project Pipeline
Resource
Reserve
K5 UG2 & Merensky
LOM / Feasibility Study
Hossy UG2 Sub Incline
K6 UG2 & Merensky
Saffy UG2 Sub-Incline
Middelkraal 3 UG2 &
Merensky
E2 UG2 Incline Deepening
Hossy SI Merensky
Rowland Merensky Sub
Incline
Newman Merensky
Middelkraal 2 Merensky
Rowland Extn UG2
Saffy Merensky
Middelkraal 2 Sub Incline UG2
Hossy Merensky
Project Development
K4 UG2 & Merensky
K3 UG2 & Merensky SubInclines
Hossy UG2
Saffy UG2
E3 JV UG2
Saffy Merensky Sub-Incline
E1 Merensky
The following persons assisted in the preparation of the Marikana Mineral Resources
and Mineral Reserves
Dennis Hoffmann (Lonmin) – Mineral Resources
Hennie Boshoff (Lonmin) – Mineral Reserves
Mineral Rights
Subsequent to Lonmin having received notification from the Director General of the
Department of Minerals and Energy (DME) of the successful granting of new order
mining rights in respect of the Group’s Marikana operations, these rights have been
executed and were registered with the Mining Titles Registration Office in early 2008.
Five rights out of the seven have been registered. Registration of the two other rights is
expected this year. These rights entitle Western Platinum and Eastern Platinum to the
exclusive right to mine for Platinum Group Metals within most of the designated
Marikana property boundaries for the next 30 years with a right to apply for renewal
thereafter for up to a further 30 years. Two rights are valid for five years which expire in
September 2012 and pertain to our shallow and open cast areas which are almost
depleted.
21
Separate Applications for Mining Rights in respect of certain areas excluded from the
Marikana mining licence area have been granted and executed and are in the process
of being registered.
A converted prospecting right in respect of the farms Schaapkraal and Zwartkoppies
(which fall within and adjacent to the Marikana mining licence area) has been granted,
executed and registered.
22
Limpopo Operations
Mineral Reserves and Resources
30 September 2010
Lonmin’s Limpopo Operations division is located on the Northern Sector of the Eastern
Limb of the Bushveld Complex in the Limpopo Province of South Africa.
The Mineral Resources occur over a strike length of approximately 20 km and are
dislocated by several faults, which form the lateral boundaries of the three delineated
resource blocks namely:
 Baobab,
 Dwaalkop, Doornvlei and Baobab East (the portion of Baobab East in the Mineral
Resource being an area contiguous with the Dwaalkop-Doornvlei Block), and
 Zebediela.
PHASE 1
CURRENT
MINE
AREA
2.7 km
Mphahlele
Location
DOORNVLEI
DWAALKOP
Turfpan
3.5 km
3.5 km
ZEBEDIELA
WINZE
2 km
BAOBAB
PHASE 3
N
PHASE 2
Rooibokbult
NO 1
SHAFT
WO
NDE
RKO
PF
AUL
Lonmin’s Limpopo Operations Mineral Properties
Doornkop
5.5 km
BAOBAB
EAST
Turflaagte
Vlieplaats
Vogelstruisvlakte
Zulping
Kalkbult
5 km
Pramkoppies
20 km
Veeplaats
Spitskop
Kameelbult
Poortjie
- Lonmin Lease Areas
- Lonmin/Mvelaphanda Area
- Other Party Area
The Dwaalkop resource block forms a Joint Venture in which both Western Platinum
and Mvelephanda Resources each have a 50% interest. The Dwaalkop JV area
includes portions of the farms Dwaalkop, Rooibokbult and Turfpan.
Both the Merensky and UG2 Reefs at Lonmin Limpopo are composite layer resources
consisting of several well and less well mineralised layers and are therefore generally
considerably thicker than at Marikana and elsewhere in the Eastern and Western Limbs
of the Bushveld Complex. The UG2 Mineral Resources in the Northern Sector of the
Eastern Limb differ from other areas in the Bushveld Complex in that the concentrations
of both Copper and Nickel are relatively high, visible sulphide mineralisation being a
feature of this UG2 ore type. These base metals form an important bi-product of PGE
23
mining. The reef dip is relatively steep in this area, with the dip in the Baobab and
Dwaalkop-Doornvlei blocks being approximately 60° to the south, and even up to
vertical in the Zebediela Block. The reef strike is close to east-west. The layered
nature of the Bushveld Complex makes it possible to identify different lithological units,
which facilitates the interpretation of geological disturbances such as dykes, faults,
potholes and IRUP.
The continuity of both the Merensky and UG2 reefs in the area has been established by
extensive underground mining, underground sampling, surface trenching, surface
drilling and magnetic surveys. The drilling of multiple reef intersections in each drillhole
is standard practice and provides material for assay, geotechnical, mineralogical and
metallurgical testing. Logging and sampling of drillholes are conducted according to
standard procedures and drillhole data are electronically stored in a commercial
database.
Between the 1960’s and 2009 numerous phases of drilling were conducted by various
mining companies (Anglo American Corporation, Messina Limited, Impala Platinum
Limited, Southern Platinum Corporation and Lonmin) and more than 650 surface
drillholes were drilled on the properties. The depths of the drillholes vary from a few
metres to 1,550 m below surface. Magnetic data has become an essential tool in
identifying areas of potentially good and poor mining conditions. Virtually the complete
property has been covered by airborne or ground magnetic surveys. The detailed data
from these surveys have proved to be invaluable in establishing the continuity of the
reefs and for shaft planning and design purposes.
Approximately 9 km of reef strike exists to the east of the Baobab Mine block; 5.5 km on
Dwaalkop JV and 3.5 km on Doornvlei. These areas of Mineral Resource form part of
the Phase 2 expansion plan. No additional diamond drillholes were completed at
Dwaalkop and Doornvlei during the year, with work on the project largely consisting of
further geological modelling and investigating options for progressing the project to a
production phase. The results of the updated geological work, and the impact on
Mineral Resources and Reserves, will be reviewed and reported once the final results
are received for the Phase 2 project in its entirety. A Pre-Feasibility study was
completed in 2007.
The mining methods utilised at Limpopo are conventional down-dip stoping and
mechanised long-hole open stoping. Mining at Baobab Mine is by underground mining
methods and the reef is accessed by a vertical shaft and ramp decline. The
conventional down-dip stoping accounted for approximately 80% of the Baobab Mine
ore production before being placed on care and maintenance late in 2008. The
relatively wide steeply dipping nature of the reefs at Limpopo is amenable to
mechanised long-hole open stoping. This method is the preferred method of ore
extraction for the Phase 2 project due its potentially low operating cost and high volume
compared with conventional more labour intensive methods.
24
Revisions to the Mineral Resource and Reserve Completed During 2010
The Mineral Resources and Reserves at Limpopo are unchanged since 2009 with the
exception of a computational error being resolved in the amount of the Doornvlei
Merensky Probable reserve being attributable to Lonmin and the correction of a slight
rounding error in the Zebediela Mineral Resource tabulation.
Limpopo Merensky Reef Resource Plan
Limpopo UG2 Reef Resource Plan
25
Limpopo Mineral Resources
30-Sep-2010
Mineral Resources
Reef
Category
Area
3PGE+Au
Pt
g/t
Moz
Moz
0.9
3.86
0.11
0.06
0.9
3.86
0.11
Baobab
4.4
3.88
Baobab E
0.5
Dwaalkop
Doornvlei
Mt
3PGE+Au
Pt
g/t
Moz
Moz
0.9
3.86
0.11
0.06
0.06
0.9
3.86
0.11
0.06
0.55
0.32
4.4
3.88
0.55
0.32
4.05
0.06
0.04
0.5
4.05
0.06
0.04
17.9
2.89
1.67
0.94
17.9
2.89
1.67
0.94
6.6
3.74
0.79
0.44
6.6
3.74
0.79
0.44
Total
29.4
3.25
3.07
1.75
29.4
3.25
3.07
1.75
Baobab
10.4
3.95
1.32
0.77
10.4
3.95
1.32
0.77
Baobab E
2.1
3.87
0.27
0.15
2.1
3.87
0.27
0.15
Zebediela
6.5
5.6
1.2
0.7
6.5
5.51
1.15
0.66
Dwaalkop
13.3
3.10
1.33
0.74
13.3
3.10
1.33
0.74
Doornvlei
9.3
3.94
1.18
0.67
9.3
3.94
1.18
0.67
Total
41.6
3.92
5.24
2.98
41.6
3.92
5.24
2.98
71.9
3.65
8.43
4.79
71.9
3.64
8.42
4.79
Baobab
0.9
4.45
0.13
0.06
0.9
4.45
0.13
0.06
Total
0.9
4.45
0.13
0.06
0.9
4.45
0.13
0.06
Baobab
11.4
4.04
1.48
0.70
11.4
4.04
1.48
0.70
Baobab E
0.9
4.10
0.12
0.05
0.9
4.10
0.12
0.05
Dwaalkop
17.1
4.35
2.40
1.13
17.1
4.35
2.40
1.13
Doornvlei
24.8
4.60
3.67
1.73
24.8
4.60
3.67
1.73
Total
54.2
4.40
7.66
3.60
54.2
4.40
7.66
3.60
Baobab
18.1
3.78
2.20
1.03
18.1
3.78
2.20
1.03
Baobab E
3.1
4.05
0.40
0.18
3.1
4.05
0.40
0.18
Zebediela
9.4
5.5
1.7
0.9
9.4
5.4
1.64
0.90
Dwaalkop
13.7
4.35
1.92
0.90
13.7
4.35
1.92
0.90
Doornvlei
19.4
4.89
3.05
1.44
19.4
4.89
3.05
1.44
Total
63.7
4.50
9.22
4.45
63.7
4.50
9.21
4.45
118.8
4.45
17.02
8.12
118.8
4.45
17.00
8.12
Measured
1.8
4.16
0.24
0.13
1.8
4.16
0.24
0.13
Indicated
83.7
3.99
10.74
5.35
83.7
3.99
10.74
5.35
Inferred
105.3
4.27
14.47
7.44
105.3
4.27
14.44
7.44
190.7
4.15
25.45
12.91
190.7
4.15
25.42
12.91
Baobab
Total
Measured
Indicated
MR
Inferred
Total Merensky
Measured
Indicated
UG2
Inferred
Total UG2
Total
Mt
30-Sep-2009
Total Resource
26
Indicative Prill Splits and Nickel and Copper grades in Resource – Limpopo
Limpopo Merensky Reef
Limpopo UG2
7%
8%
2%
4%
47%
Pt
Pt
32%
57%
Pd
Pd
43%
Rh
Rh
Au
Au
Average Nickel and Copper Grade of Limpopo Reefs
0.25%
0.20%
Grade %
0.17%
0.14%
0.15%
Nickel%
0.11%
0.09%
0.10%
0.05%
0.00%
Merensky Reef
UG2
27
Copper%
Limpopo Mineral Reserves
Mineral Reserves
Ore source
Category
30-Sep-2010
Area
3PGE+Au
Mt
Pt
g/t
Moz
Moz
Mt
3PGE+Au
Pt
g/t
Moz
Moz
Baobab Shaft
0.2
3.02
0.02
0.01
0.2
3.02
0.02
0.01
Total Proved
0.2
3.02
0.02
0.01
0.2
3.02
0.02
0.01
Baobab Shaft
2.7
2.86
0.25
0.15
2.7
2.86
0.25
0.15
Dwaalkop JV
11.2
2.61
0.94
0.53
11.2
2.61
0.94
0.53
Doornvlei
4.6
2.71
0.40
0.23
2.3
2.71
0.20
0.11
Total Probable
18.5
2.67
1.59
0.90
16.2
2.66
1.39
0.79
18.7
2.67
1.60
0.91
16.4
2.67
1.40
0.80
Baobab Shaft
0.2
3.54
0.02
0.01
0.2
3.54
0.02
0.01
Total Proved
0.2
3.54
0.02
0.01
0.2
3.54
0.02
0.01
Baobab Shaft
6.3
3.28
0.66
0.31
6.3
3.28
0.66
0.31
Dwaalkop JV
13.2
3.30
1.40
0.66
13.2
3.30
1.40
0.66
Doornvlei
13.4
3.77
1.63
0.77
13.4
3.77
1.63
0.77
Total Probable
32.9
3.49
3.69
1.74
32.9
3.49
3.69
1.74
33.1
3.49
3.71
1.75
33.1
3.49
3.71
1.75
Proved
Merensky
Probable
Total Merensky
Proved
UG2
Probable
Total UG2
Proved
Baobab Shaft
0.4
3.30
0.04
0.02
0.4
3.30
0.04
0.02
Probable
Baobab Shaft
9.0
3.15
0.91
0.45
9.0
3.15
0.91
0.45
Probable
Dwaalkop JV
24.3
2.98
2.33
1.19
24.3
2.98
2.33
1.19
Probable
Doornvlei
18.1
3.50
2.03
1.00
15.8
3.62
1.83
0.89
51.7
3.20
5.32
2.66
49.4
3.22
5.12
2.55
Total
Total Reserve
30-Sep-2009
Notes on the Limpopo Mineral Resources and Reserves
The Limpopo Mineral Resources and Reserves information was prepared on the following basis:
1) Western Platinum Limited (82% owned by Lonmin) has an interest of 50% in the
Dwaalkop JV and 100% of the remainder. The Mineral Resources and Reserves quoted
for Limpopo include only Lonmin’s attributable portion.
2) The Dwaalkop JV area includes portions of the farms Dwaalkop, Rooibokbult and
Turfpan.
3) Mineral Resources are estimated from the results of surface diamond drilling and from
underground channel samples. Channel samples are taken from underground reef
intersections using a diamond saw and are assayed at Lonmin’s Marikana laboratory.
For the surface drillholes, at least four reef intersections are drilled from each drillhole
per reef and three of these intersections are sampled and assayed at a commercial
laboratory.
4) The grades and/or metal accumulations, density and thicknesses of the individual reef
layers are estimated into block models using Ordinary Kriging. The Mineral Resource
cut is then selected from the individual reef layers and therefore may include some
diluting material.
28
5) Mineral Resource estimates are based on a practical mining cut of not less than 90 cm.
analysis is used to classify the Mineral Resources. Typically, the Measured Resource
estimates are declared in, and immediately adjacent to, areas where the reef has been
exposed by underground development and has been sampled. Indicated and Inferred
Resource estimates are predominantly informed by surface diamond drillholes.
Indicated Resources at Limpopo are typically declared in areas where drill spacing is
less than 600 metres.
7) The Mineral Resources at Dwaalkop and Doornvlei occur from surface to a maximum
depth of 2,000 metres. The Baobab Mineral Resources occur to a depth of 1,500 m for
Merensky Reef and 1,650 m for the UG2. Isolated drillholes have confirmed the
presence of the UG2 at greater than 1,500 m below surface at Baobab, and in all areas
the mineralisation remains open at depth.
8) At Zebediela, Inferred Resources are informed by a variable drill grid of approximately
500 m on strike and less regular in the down dip direction. The Zebediela Resources
occur at depths of less than 850 m below surface for the Merensky Reef and 950 m in
the case of the UG2, although mineralisation remains open at depth.
9) The widths of the individual layers that comprise the reef vary across the property and
the reef widths also vary according to the layers incorporated into the reef cut. The
average width of the UG2 Reef for each property varies between approximately 1.90 m
and 3.05 m and the average width of the Merensky Reef for each property varies
between approximately 0.90 m and 2.25 m.
10) An average of approximately 20% geological loss has been applied to the Merensky and
UG2 Reef areas. Geological losses are applied to individual areas and vary according
to known and anticipated geological conditions. Geological losses include those from
dykes, fault loss, potholes and IRUP.
11) Remnant areas enclosed by stoped out areas (otherwise known as white areas) are not
part of the Measured Mineral Resource or Proved Reserve until it has been established
that there is a reasonable intention and prospect of extracting ore from these areas.
12) Proved Reserves are converted from fully developed Measured Resources. Probable
Reserves are converted from Indicated and undeveloped Measured Resources using
estimated dilution and extraction factors for the individual area taking cognisance of the
reef type and planned mining method.
13) All Mineral Reserves below 430 m level at Baobab Mine and contained within the
Phase 2 area, are fully diluted for mechanised mining methods and therefore individual
lesser mineralised layers may have been incorporated into the Resource estimate in
expectation of their inclusion in the mining cut. Additional dilution expected is estimated
at approximately 13%.
14) Average losses as a result of mining losses and pillar design at Baobab are
approximately 28% in the mechanised areas and 13% in the remaining conventional
areas.
15) All Mineral Reserves at Limpopo are shallower than 750 m below surface.
23) All projects that are classified as Mineral Reserves have passed the economic test as
prescribed by the SAMREC code. All economic evaluations were done on a consistent
basis using the Lonmin economic model.
29
Limpopo Project Pipeline
Resource
Reserve
Zebediela UG2 and Merensky
Baobab UG2 & Merensky
Project Development
-
Phase 2 UG2 & Merensky
The following persons assisted in the preparation of the Limpopo Mineral Resources
and Mineral Reserves:
Jeremy Witley (Lonmin) – Mineral Resources, Baobab Shaft and Baobab East
Snowden Mining Industry Consultants - Mineral Resources, Dwaalkop, Doornvlei and
Zebediela’s Location
Hennie Boshoff and Thomas Cronje (Lonmin) – Mineral Reserves, Baobab
Frank Greblo (AMC Consultants Pty Ltd) – Mineral Reserves, Dwaalkop JV and
Doornvlei
Mineral Rights
At Limpopo, a Lodgement for Conversion of Mining Right was submitted to the DME in
respect of Doornvlei in April 2009. An Application for Mining Right has been lodged
with the DME in respect of Dwaalkop (currently Dwaalkop has a converted prospecting
right which is subject to a renewal application). A Lodgement for Conversion of Mining
Right was submitted to the DME in respect of Voorspoed (Baobab Shaft) in March 2007,
with the DME currently assessing the merits of the Application. As regards that area
previously subject to an old order prospecting right (i.e. primarily Zebediela’s Location),
a new order prospecting right has been granted, executed and registered. An
application for the renewal of the Zebediela’s Location prospecting right for a further
period of 3 years was submitted in September 2009.
30
The Akanani Project
Mineral Resources
30 September 2010
The Akanani Project is located on the Northern Limb of the Bushveld Complex in the
Limpopo Province of South Africa.
The mineralisation is hosted within the Platreef Pyroxenite. The considerable reef
thickness makes the Mineral Resource amenable to fully mechanised bulk mining
methods.
At Akanani, the lithological layering in the Platreef appears to be less continuous than
that of the Critical Zone in the Eastern and Western Limbs. The results of
approximately one hundred diamond drillholes completed since 2005 have established
that the higher grade mineralisation is generally well constrained within a geological unit
towards the top of the Platreef known by Lonmin as the P2 Unit. The hangingwall of
this unit is generally readily identifiable in core samples and the footwall merges into the
immediately underlying P1 Unit mineralisation. Mineralisation in the P1 Unit appears to
be less continuous than that of the P2 Unit and is generally of lower grade, however the
nature of the P1 Mineral Resource grade profile allows for selective mining of higher
grade with but lower tonnage. This will be considered should this mineralisation be
converted to a Reserve.
The locations of major discontinuities, such as faults and dykes, have been established
by interpretation of magnetic survey and diamond drilling information. Potholes, such
as those that occur on the Merensky Reef and UG2, and IRUP intrusions, have not
been recognised on the Platreef at the Akanani Project. Losses in the Mineral
Resource area are anticipated to occur as a result of dykes and veins, fault loss and
localised alteration, particularly calc-silicate alteration which is rare in the P2 Unit and
more common in the P1 Unit.
Completion of the data collection and interpretation arising from the 2009 drilling
programme has resulted in an updated Mineral Resource estimate.
Revisions to the Mineral Resource Completed During 2010
Several changes to the reported Mineral Resources have occurred since 30 September
2009, the more significant of these being:



The proportion of the P2 Mineral Resource in the Indicated category has
increased from 71% to 86%. This is due to upgrading the confidence of the
Mineral Resource as a result of infill diamond drilling.
The quantity of P2 Mineral Resource increased slightly (3%) from 17.6 Moz to
18.2 Moz of 3PGE+Au. This is a result of northwards extension to the Mineral
Resource area and slightly thicker mineralisation intersected in the infill drillholes.
Overall, the P2 Resource grade decreased marginally by 0.01 g/t from 4.73 g/t to
4.72 g/t 3PGE+Au. This is due to the extended Mineral Resource area being
slightly lower grade than the average of the rest of the P2 Mineral Resource.
31

The 2 g/t mineralised envelope defining the P1 Mineral Resource was expanded,
which resulted in a 73% increase to the 3PGE+Au ounces, at 10% higher grade,
albeit in the relatively low confidence Inferred category. Several infill drillhole
intersections confirmed the extension of the mineralisation deeper in the Platreef
unit that was excluded in the 2009 estimate.
Akanani Drillhole Intersection and Resource Plan - P2 (left) and P1 (right)
32
Akanani Mineral Resources
Mineral Resources 30-Sep-2010
30-Sep-2009
3PGE+Au
Reef
Category
Pt
Cu
Ni
Mt
3PGE+Au
Pt
Cu
Ni
Mt
g/t
Moz
Moz
%
%
g/t
Moz
Moz
%
%
Indicated
100.7
4.84
15.7
6.6
0.14
0.26
76.4
5.07
12.5
5.3
0.15
0.27
Inferred
19.0
4.08
2.5
1.0
0.11
0.21
39.6
4.09
5.2
2.1
0.12
0.21
119.7
4.72
18.2
7.6
0.13
0.25
116.0
4.73
17.6
7.5
0.14
0.25
96.3
2.75
8.5
3.3
0.10
0.18
60.7
2.49
4.9
1.9
0.09
0.15
96.3
2.75
8.5
3.3
0.10
0.18
60.7
2.49
4.9
1.9
0.09
0.15
Indicated
100.7
4.84
15.7
6.6
0.15
0.27
76.4
5.07
12.5
5.3
0.14
0.27
Inferred
115.3
2.97
11.0
4.3
0.12
0.21
100.3
3.12
10.0
4.0
0.12
0.23
216.0
3.84
26.7
10.9
0.14
0.25
176.6
3.96
22.5
9.4
0.13
0.25
P2
Total
P1
Inferred
Total
Total
Total Resource
Indicative Prill Splits and Nickel and Copper grades in Resource – Akanani
Akanani P1 Unit
Akanani P2 Unit
6%
3%
4%
5%
39%
42%
Pt
Pt
Pd
Pd
Rh
49%
Rh
52%
Au
Au
Average Nickel and Copper Grade of Akanani Reefs
0.30%
0.25%
0.25%
Grade %
0.20%
0.18%
Nickel%
0.15%
0.13%
Copper%
0.10%
0.10%
0.05%
0.00%
P2
P1
33
Notes on the Akanani Project Mineral Resources and Reserves`
The Akanani Mineral Resources information was prepared on the following basis:
1) Lonmin has an interest of 74% in the Akanani Project. The Mineral Resources quoted
for Akanani include only Lonmin’s attributable portion.
2) Over seventy diamond drillholes intersected P2 mineralisation within the declared
Mineral Resource.
3) PGE and base metal assays were completed by Set Point Technologies Limited and
were confirmed by SGS Lakefield Research Africa. Base metal grades represent acid
soluble Ni and Cu.
4) The Mineral Resource estimates were completed for both the P2 and P1 Units at
Akanani using 3D modelling techniques and Ordinary Kriging.
5) A percentage of the area has been removed as an allowance to cater for anticipated
geological losses. Geological losses include those from dykes and veins, fault loss and
localised alteration. 10% geological losses were applied to the P2 model. 20%
geological losses were applied to the P1 model, in order to account for the greater
occurrences of calc-silicate in this unit.
6) Geostatistical estimation criteria were used to guide the definition of the P2 Indicated
Mineral Resource area. These were typically declared where drillhole spacing is less
than 350 m, depending on knowledge of the reef continuity in individual areas.
7) Inferred Mineral Resources were extrapolated a maximum of 450 metres in the reef
plane outside the drillhole grid to a maximum depth below surface of 2,000 metres,
depending on knowledge of the reef continuity in individual areas.
8) The Mineral Resources in the project occur from approximately 800 m below surface
and are shallower than 2,000 m below surface. The average thickness of the P2 Unit
Mineral Resource is approximately 20 m. The thickness of the P1 Unit mineralisation
declared as Mineral Resource is very variable due to its irregular shape, but is typically
in the order of 30 m thick on average.
9) Mineral Resources were estimated within a mineralised envelope. The P2 Unit
hangingwall was defined by a lithological boundary and the footwall normally forms the
P1 hangingwall. There being no distinct change in lithologies, the footwall of the P1
mineralisation was defined by a 2 g/t 3PGE+Au assay cut off using Indicator Kriging.
10) There are currently no Mineral Reserves estimated for the Akanani Project.
The following persons assisted in the preparation of the Akanani Project Mineral
Resources:
Hendrik Meiring (Lonmin)
Jonathan Kleynhans (Deswik Mining Consultants)
Mineral Rights
A converted prospecting right has been granted in respect of Akanani until 2011.
34
Pandora Joint Venture
Mineral Resources and Reserves
30 September 2010
The Pandora Joint Venture is located in the Brits District of the North West Province of
South Africa. It is immediately east and down dip (north) of the eastern area of
Lonmin’s Marikana Operations. Eastern Platinum has an attributable interest of 42.5%
in the Pandora JV, the remainder being with Anglo Platinum, Mvelaphanda Resources
and the Bapo Ba Mogale Mining Company.
The area is underlain by the Merensky Pyroxenite and the UG2 Chromitite Layer over a
strike length of approximately 12 km. Both the Merensky Pyroxenite and the UG2
Chromitite Layer outcrop along 5 km of the strike length of the lease area that is
contiguous to the Marikana Operations. The layers strike in an approximately east-west
direction and generally dip approximately 13° to the north. The layered nature of the
Bushveld Complex makes it possible to identify different lithological and stratigraphic
units, which facilitates the interpretation of geological disturbances; dykes, faults,
potholes and IRUP. The occurrence of IRUP at Pandora is rare.
The continuity of the UG2 Reef has been established by underground and open pit
mining, underground sampling, surface trenching, surface drilling and magnetic surveys.
The drilling of multiple reef intersections in each drillhole is standard practice and
provides material for assay, geotechnical, mineralogical and metallurgical testing.
Logging and sampling of drillholes are conducted according to standard procedures and
drillhole data are electronically stored in a commercial database.
A total of over 150 surface diamond drill holes have been completed at Pandora. The
infill drilling programme has continued in 2010 in order to upgrade the majority of the
Mineral Resources in the Pandora Shallows area to at least Indicated Resources and
ensure low geological risk in the earlier years of production from the planned mine. An
additional 12,300 metres were drilled in the project area in 2010. The results continue
to confirm our geological interpretation and the robustness of the grade model. The
complete property has been covered by airborne or ground magnetic surveys.
The resources stated for the Pandora JV consist of UG2 Reef only. The Merensky
Pyroxenite that occurs in this area comprises thick Eastplats facies and continuity of
potentially economic mineralisation in this variably mineralised unit at Pandora has not
yet been established. Work is continuing in order to evaluate the potential of this
mineralisation.
The UG2 Reef is mined from underground in the JV area via Lonmin’s Marikana
Operations E3 Incline shaft access. Stoping is by conventional methods. In 2009, the
open pit Mineral Reserve was depleted.
Revisions to the Mineral Resource and Reserves Completed During 2008

No significant changes were made to the Mineral Resource aside from depletion
due to mining. Slight changes to the proportion of Platinum in 3PGE+Au were
made as a result of prill split re-evaluation.
35

Probable Reserves in the western down dip extension of the 2009 reserve area
were added to Lonmin’s Mineral Reserve. These reserves will be extracted via
an extension to Lonmin’s E3 Incline Shaft.
Pandora Resource and Reserve Plan
Y-75000
X+2835000
Y-70000
X+2835000
Y-65000
BOUNDARY LEGEND
faul
t
JV AREA
PANDORA JV MINING LICENCE
X+2840000
X+2840000
MINING LEGEND
MINED OUT
PROVED RESERVES
30m
FAULT
DYKE
PANDORA DRILLED BOREHOLES
CLASSES LEGEND
MEASURED RESOURCES
INDICATED RESOURCES
INFERRED RESOURCES
PROBABLE RESERVES
E3 INCLINE
LONMIN PLATINUM
JV AREA - UG2 REEF
AS AT 30 SEP 2010
E2 INCLINE
OUTCROP
500
0
1000
Y-65000
Y-70000
2000
2010 PROJECT/OR
LPDOR10U JV DENNIS
18 OCT 2010
Y-75000
Pandora Mineral Resources
Mineral Resources
30-Sep-2010
30-Sep-2009
3PGE+Au
Ore source
UG2
Total Resource
Category
Pt
Mt
3PGE+Au
Pt
Mt
g/t
Moz
Moz
g/t
Moz
Moz
Measured
4.4
4.86
0.7
0.4
4.6
4.85
0.7
0.5
Indicated
15.9
4.52
2.3
1.4
15.9
4.51
2.3
1.4
Inferred
34.4
4.12
4.6
2.7
34.5
4.12
4.6
2.9
54.8
4.30
7.6
4.5
54.9
4.29
7.6
4.7
36
X+2845000
X+2845000
SCALE IN METRES
1000
Indicative Prill Splits and Nickel and Copper grades in Resource – Pandora
Pandora UG2
1%
11%
Pt
28%
59%
Pd
Rh
Au
Average Nickel and Copper Grade of Pandora Reefs
0.04%
Grade %
0.03%
Nickel%
0.02%
0.02%
Copper%
0.01%
0.01%
0.00%
Merensky Reef
UG2
Pandora Mineral Reserves
Mineral Reserves
30-Sep-2010
30-Sep-2009
3PGE+Au
Ore source
Category
Pt
Mt
3PGE+Au
Pt
Mt
g/t
Moz
Moz
g/t
Moz
Moz
Proved
0.23
4.57
0.03
0.02
0.28
4.48
0.04
0.03
Probable
4.92
3.96
0.63
0.37
2.81
4.23
0.38
0.24
5.15
3.98
0.66
0.39
3.09
4.25
0.42
0.27
UG2
Total Reserve
37
Notes on the Pandora JV Project Mineral Resources and Reserves
The Pandora JV Mineral Resources information was prepared on the following basis:
1) Eastern Platinum Limited (82% owned by Lonmin) has an interest of 42.5% in the
Pandora JV. The Mineral Resources and Reserves quoted for Pandora include only
Lonmin’s attributable portion.
2) Mineral Resources are reported for the UG2 Reef, which consists of the UG2 Chromitite
Layer and minor internal waste partings.
3) Measured Resources are declared in, and immediately adjacent to, areas where reef
has been exposed in underground development or open pits, or where close spaced
near surface diamond drilling has been conducted. Channel samples are taken from
underground reef intersections using a diamond saw and are assayed at Lonmin
Platinum’s laboratory. The results of this sampling are combined with the results of the
surface drilling and interpolated using Ordinary Kriging into Measured Resource blocks
immediately adjacent to the underground exposures.
4) Indicated and Inferred Resources are estimated from the results of surface diamond
drilling. Currently, at least four reef intersections are drilled from each drillhole and three
of these intersections are sampled and assayed at a commercial laboratory. The
individual reef composites are estimated into block models using Ordinary Kriging.
analysis is used to define resource classes. Indicated Resources at Pandora are
considered in areas where drill spacing is less than 800 metres. Inferred Mineral
Resources are declared in areas where drilling is sparser than 800 metres and are
extrapolated to the northern farm boundary approximately 900 metres down dip from the
deepest drillholes.
6) The Mineral Resources at Pandora occur from surface to approximately 1,200 m below
surface. The average width of the UG2 is approximately 1.23 m.
7) An average of 23% geological losses has been applied. Geological losses include those
from dykes, fault loss, potholes and IRUP.
8) All UG2 block estimates are greater than 3.37 g/t 3PGE+Au. No UG2 estimates have
been excluded from the Mineral Resource solely on the basis of grade.
9) Proved Reserves are converted from fully developed Measured Resources. Modifying
factors applied to convert Mineral Resources to Mineral Reserves are derived from the
Mineral Resource Management system on Lonmin’s current operations. All survey,
sampling, stope-width control and geological data are stored in electronic databases and
mine plans are captured electronically in a three dimensional information system.
10) For Mineral Reserve estimation, the Pandora Mineral Resources have been diluted by
an average of approximately 14%. Average losses as a result of mining losses and
underground pillar design are approximately 18%.
11) All Mineral Reserves are shallower than 600 metres below surface.
38
Pandora Project Pipeline
Resource
Pandora Shallows
Reserve
E3 JV 60 ktpm Extension
Project Development
E3 JV UG2-9 and 10 level
Pandora Deeps
The Pandora JV Mineral Resources were prepared by a team from both Anglo Platinum
and Lonmin and were signed off by the following Competent Persons:
Jeremy Witley (Lonmin)
Paul Stevenson (Anglo Platinum)
The Mineral Reserves were signed off by Jonathan Hudson (Lonmin).
Mineral Rights
A Lodgement for Conversion of Mining Right was submitted in respect of Pandora in
mid-2006. Arising from an amendment to the mining plan to be implemented at
Pandora, the Mine Work Program and consequently the Social and Labour Plan were
significantly amended. These amended documents were then lodged with the DME in
mid-2007 as replacements for the original Mine Work Programme and Social and
Labour Plan submitted. The DMR is currently assessing the Application. A separate
Application for Mining Right in respect of certain areas excluded from the Pandora
mining licence area was submitted in February 2009.
39
Loskop Joint Venture
Mineral Resources
30 September 2010
Western Platinum has an attributable interest of 50% in the Loskop Joint Venture with
Boynton Investments. The Mineral Resources are contained within a mineralised zone,
the “Upper Mineralised Pyroxenite” that is contained within a sequence that is
considered to be stratigraphically equivalent to the Upper Critical Zone of the Eastern
and Western Limbs of the Bushveld Complex. The results of a high resolution, low level
aeromagnetic survey covering 210 km2 were used to assist in the structural
interpretation of the area. Diamond drillholes were used in order to assist in the
evaluation of the mineralisation on the properties.
Revisions to the Mineral Resource Completed During 2010
No revisions were made in 2010 to the estimates first reported in 2007.
Loskop JV Drillhole Intersection and Resource Plan
40
Loskop Mineral Resources
Mineral Resources
30-Sep-2010
Ore Source
Category
Area
Mt
UMP
Inferred
Rietfontein
UMP
Inferred
De Wagendrift
Total Resource
2PGE+Au
30-Sep-2009
Pt
g/t
Moz
Moz
6.5
3.91
0.8
0.5
3.6
4.28
0.5
10.1
4.04
1.3
Mt
2PGE+Au
Pt
g/t
Moz
Moz
6.5
3.91
0.8
0.5
0.3
3.6
4.28
0.5
0.3
0.8
10.1
4.04
1.3
0.8
Notes on the Loskop Mineral Resources
1) The reported Loskop Mineral Resources precious metal grade is 2PGE+Au, which
equals Pt+Pd+Au. This differs from most of Lonmin’s other Mineral Resources where
3PGE+Au is reported.
2) The Mineral Resources quoted for Loskop includes only Lonmin’s 41% attributable
portion.
3) Half core samples were taken from diamond drillholes and assayed at commercial
laboratories for 2PGE+Au using lead fire assay techniques.
4) An optimum cut at a minimum true width of 100 cm was calculated for each drillhole and
the resulting composites were averaged to estimate the grade and width of the Mineral
Resource.
5) A cut off grade of 2 g/t 2PGE+Au was used to define optimum cuts of greater than
100 cm.
6) The Inferred Mineral Resource was informed by the results of 61 drillholes that
intersected the UMP.
7) The Mineral Resources at Loskop occur from surface to approximately 865 m below
surface. The average width of the selected reef cut is approximately 1.35 m.
8) An average of 25% geological losses has been applied to the mineralised area.
Geological losses will include those from dykes, fault loss and other geological
disturbances.
9) Inferred Mineral Resources are constrained by the current drill coverage and the deposit
is open down dip and to the west.
10) There are currently no Mineral Reserves estimated for the Loskop Project.
Mineral Rights
At Loskop, new order converted prospecting rights have been granted, executed and
registered and prospecting activities are required to be carried out in accordance with
the Prospecting Work Programs attaching to the aforementioned rights.
41
Location within
Ontario, Canada
the
Sudbury
Igneous
Complex,
Lonmin’s only Platinum Group Element (PGE) Mineral Resource outside of the
Bushveld Complex is located in the Sudbury Igneous Complex (SIC) near Sudbury,
Ontario, Canada. The SIC hosts world class resources of Nickel, Copper, Cobalt and
PGE’s. The PGE’s (mostly Platinum, Palladium, with minor amounts of Rhodium,
Ruthenium, Osmium and Iridium) as well as Gold, are intimately associated with Nickel
and Copper massive sulphides, which historically have been the main metals exploited
in the SIC. Lonmin’s Sudbury Joint Venture exploration teams (Vale and Wallbridge
Mining) are however targeting lower sulphide, high PGE mineralisation which is known
to occur in offset dykes and certain footwall settings of the SIC. Much of this style of
mineralisation also contains low concentrations of Copper, Nickel, Cobalt and Silver.
The geological setting of PGE mineralisation in the SIC is unlike the majority of
Lonmin’s mineral deposits in that it is associated with veins and disseminations of base
metal sulphides rather than in layered reefs.
The SIC was formed as an astrobleme (a meteor impact site) 1.85 billion years ago,
intruding into older granites and metasediments and is the second largest known
astrobleme on Earth, underlying an area of approximately 1,540km². The SIC consists
of two main areas, the North and South Ranges. Lonmin’s JV exploration properties
are situated around the SIC Basin, with its first Mineral Resource located within the
Denison property on the South Range.
Locations of Lonmin’s Mineral Resource – Sudbury Igneous Complex
42
Denison Joint Venture
Mineral Resources
30 September 2010
Lonmin’s Mineral Resources on the Denison property are hosted in the Huronian
metasediments and metavolcanic sequence to the south of the SIC contact. The
contact is near vertical in this area, but the PGE mineralisation is located along two
intersecting structures. The mineralisation dips at approximately 70 degrees to the
east-northeast. The mineralisation has been continually traced by drilling from its
surface outcrop to a depth of 400 m below surface. The current resource is restricted to
a depth of 240 m from surface, the deeper mineralisation not yet being included in the
Mineral Resource due to the more widely spaced nature of the drilling and the deeper
drillhole core samples being subject to analytical methodology dating back to the early
1900’s, which pre-dates precious metals assaying procedures at Vale. Given the
greater variability in the nature of the mineralisation, drilling on which the resource has
been based is necessarily much more closely spaced than those used to determine reef
mineralisation and the average drillhole spacing in the resource area is between
approximately 20 m and 35 m. The approximately ‘V-shaped’ body is comprised of two
linear zones of approximately 80 m and 150 m in length, which vary between
approximately 3 m and 30 m in thickness. The Mineral Resource is at its widest point
where the zones intersect.
It is considered that the Mineral Resource is amenable to extraction by open-pit mining
to a depth of 140 m followed by cut-and fill mining of the deeper portion. These mining
assumptions formed the basis of the assessment for prospects of economic extraction.
Mineralisation is open at depth and remains a target for future exploration
The Denison Mineral Resource was prepared and classified by Vale geologists using
Vale internal guidelines that exceed the minimum criteria defined by CIM. The Denison
Mineral Resources have been prepared under the guidance of A.D. Burton (BSc Hons,
P.Geo.) of Vale, who is a Qualified Person as defined by the National Instrument
43-101, being registered as a Professional Geologist with the Association of
Professional Geologists of Ontario. Mr Burton has over 30 years experience in the
base and precious metals mining and exploration industry and Mineral Resource
estimation.
Denison Mineral Resources
Mineral Resources
30-Sep-2010
30-Sep-2009
2PGE+Au
Category
Inferred
Total Resource
Pt
Mt
2PGE+Au
Pt
Mt
g/t
Moz
Moz
0.35
6.30
0.07
0.04
0.35
6.30
0.07
0.04
43
g/t
Moz
Moz
-
-
-
-
-
-
-
-
Indicative Nickel and Copper grades in Resource – Denison
Average Nickel and Copper Grade of Denison Resource
1.20%
0.96%
1.00%
Grade %
0.80%
0.60%
Nickel%
0.55%
Copper%
0.40%
0.20%
0.00%
FW 109
Notes on the Denison Mineral Resources
1) The reported Denison Mineral Resources precious metal grade is 2PGE+Au, which
equals Pt+Pd+Au. This differs from most of Lonmin’s other Mineral Resources where
3PGE+Au is reported.
2) The Mineral Resources quoted for Denison includes only Lonmin’s 50% attributable
portion of the PGE’s.
3) 32 diamond drillholes were used for grade estimation within the modelled wireframe.
4) Half core samples were taken from diamond drillholes and assayed at ALS Chemex
laboratories Pt, Pd and Au using a fire assay fusion preparation followed by analysis by
inductively coupled plasma - atomic emission spectrometry.
5) Diamond drill core is logged and sampled in a secure Vale Technology Development
(Canada) Limited facility in Sudbury, Ontario. Diamond drill core samples are prepared
at the ALS Chemex preparation facility in Sudbury, Ontario. The resulting pulps are
shipped to the ALS Chemex laboratory in Vancouver, British Columbia for analysis. ALS
Chemex’s Vancouver laboratory has received ISO 17025:2005 accreditation from the
Standards Council of Canada under CAN-P-1579 “Guidelines for Accreditation of
Mineral Analysis Testing Laboratories”. In addition to standard QAQC procedures
performed by ALS Chemex, Vale Technology Development (Canada) Limited personnel
conduct in-house QAQC procedures.
6) Mineral Resources were estimated by Ordinary Kriging within a mineralised envelope.
The mineralisation extents were defined by examination of mineralisation in the drillhole
intersections and interpreted using 3D modelling techniques utilising assumed
geological continuity between drillholes.
7) Mineral Resources that have reasonable prospects for economic extraction were
extracted from the grade model based on an economic test, on a Net Smelter Return
basis, using Vale’s internal financial models.
44
8)
A 30 m high crown pillar was assumed to be required between the perceived open pit
limits and the underground cut-and-fill mining. This mineralisation has not been reported
as part of the Mineral Resource.
9) Inferred Mineral Resources were reported from within the drillhole grid and there was no
extrapolation either down-dip or along strike from the drillhole grid.
10) The Mineral Resources in the project occur from surface and were restricted to 240 m
below surface. The thickness of the Mineral Resource varies from approximately 3 m to
30 m.
11) There are currently no Mineral Reserves estimated for the Denison Project.
Mineral Rights
The Vale Lonmin Joint Venture property in Denison Township consists of parts of Lots 2
to 6 Concession 4 and Lots 3 to 6 Concession 5. All the parcels are patented for
surface and mining rights.
45
List of Acronyms
2PGE+Au
Also known as 3E, comprises two platinum group elements plus gold and is a
summation of Pt, Pd and Au.
3PGE+Au
Also known as 4E, comprises three platinum group elements plus gold and is a
summation of Pt, Pd, Rh, and Au.
5PGE+Au
Also known as 6E, comprises five platinum group elements plus gold and is a
summation of Pt, Pd, Rh, Ru, Ir and Au.
BEE
Black Economic Empowerment
BBBE
Broad Based Black Economic Empowerment
CIM
Canadian Institute of Mining and Metallurgy and Petroleum
DME
Department of Minerals and Energy
DMR
Department of Mineral Resources (formerly the DME).
g/t
Grams per tonne. A unit of grade expressing concentration that is equal to
parts per million (ppm)
IRUP
Iron Rich Ultramafic Pegmatite.
JV
Joint Venture
Moz
Millions of troy ounces. One troy ounce is equal to 31.10348 metric grams.
MR
Merensky Reef; refers to the portion of the Merensky Pyroxenite Unit (and in
some areas immediately adjacent units) that contains significant PGE, nickel
and copper mineralisation.
Mt
Millions of metric tonnes; a metric tonne equals one thousand kilograms.
NI 43-101
National Instrument 43-101 is a national instrument for the Standards of
Disclosure for Mineral Projects within Canada.
PGE
Platinum Group Element. Elements belonging to this group consist of Platinum
(Pt), Palladium (Pd), Rhodium (Rh), Ruthenium (Ru), Iridium (Ir) and Osmium
(Os)
PGM
Platinum Group Mineral. Those minerals that contain PGE’s. May also refer to
Platinum Group Metal and is then synonymous with PGE.
SAMREC
The South African Mineral Resources Committee
SAMVAL
The South African Mineral Asset Valuation Committee
SSC
SAMREC/SAMVAL Committee
UG2
Upper Group 2. A unique stratigraphic unit comprised mostly of a massive
chromitite layer that normally contains significant PGE mineralisation, but little
nickel and copper.
UMP
Upper Mineralised Pyroxenite. The geological unit that contains PGE, nickel
and copper mineralisation at the Loskop Project.
46

2010 - Lonmin

Transcription

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