Implats’ Mineral Resources and Mineral Reserves reflect the group’s future opportunities and potential. The group is accordingly fully committed to the following:

• growing the mineral resource base by optimising current assets, exploration and acquisitions, including alliances and equity interests with third parties;
• complying with the legislative regime that governs mineral rights ownership;
• transparent disclosure of Mineral Resources and Mineral Reserves aligned with the prescribed codes, SAMREC and JORC; and
• continuous improvement in mineral resource management systems.

The mining operations of Implats and its associated companies exploit platiniferous horizons within the two largest known deposits of platinum group metals (PGMs) in the world, namely the Great Dyke in Zimbabwe and the Bushveld Complex in South Africa. Mining mostly takes place as underground operations, focusing on relatively narrow mineralised channels with specific methods adapted to suit the local geology and morphology of the mineralised horizon. Underground stoping in the Great Dyke currently consists of mechanised or semi-mechanised bord-and-pillar layouts. Within the Bushveld Complex, mechanised mining is being used at Two Rivers and only in limited areas at Impala Platinum’s mining operations. The mining method at Marula Platinum is being converted from mechanised layouts to conventional breast mining. The bulk of the mining at Impala Platinum is conventional breast mining with limited opencast mining taking place at outcrop. Opencast mining at Zimplats continues although this will decline over the next few years.

Regulatory compliance

The reporting of Mineral Resources and Mineral Reserves for Implats’ South African operations is done in accordance with the principles and guidelines of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC Code). (See Glossary of terms).

Zimplats, as an Australian Stock Exchange-listed company, reports its Ore Reserves and Mineral Resources in accordance with the Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code). Mimosa Investments Limited, a Mauritius-based company, does not fall under any regulatory reporting code but has adopted the JORC Code for its reporting. Various Competent Persons, as defined by the SAMREC and JORC codes, have prepared the Mineral Reserve and Mineral Resource figures quoted in this report. They were reviewed and signed off by the Implats’ signatory below:

JJ Vermaak
Pr.Sci.Nat. (Consulting Geologist, Impala Platinum)

The Competent Person has 20 years’ experience in the evaluation and exploitation of PGM deposits.

Additional compliance:

• the Competent Persons for Two Rivers’ Mineral Resources and Reserves are Messrs PJ van der Merwe, M Mabuza and A Durrant, full-time employees of ARM;
• the Competent Persons for Zimplats are Messrs A du Toit and S Simango, full-time employees of Zimplats;
• the Competent Person for Mimosa is Mr D Mapundu, full time employee of Mimosa;
• Implats has obtained written consent from ARM that the information disclosed pertaining to their Mineral Resources and Mineral Reserves is compliant with the SAMREC Code and can be published in this form;
• Implats has legal entitlement to the mining of minerals being reported upon without any known impediments; and
• reporting of the Mineral Resources and Mineral Reserves for Impala and Marula is quoted both inclusively and exclusively. This is for more direct comparisons with companies that subscribe to the inclusive form of reporting. Inclusive reporting implies that Mineral Reserves are included in Mineral Resources, whereas exclusive reporting means that Mineral Reserves are not included in Mineral Resources.

The Great Dyke

The Great Dyke is a 2.5 billion-year old layered mafic-ultramafic complex that transects the Archaean Zimbabwean Craton in a NNE-trending direction.

The Dyke is highly elongated, slightly sinuous, 550 kilometres long, with a maximum width of 12 kilometres. It is divided into two major successions, a lower ultramafic sequence dominated from the base upwards by cyclic repetitions of dunite, harzburgite and bronzitite, and an upper mafic sequence consisting mainly of gabbro and gabbronorite. Much of the mafic sequence has been removed by erosion. The ultramafic sequence hosts the P1 pyroxenite, directly below the mafic-ultramafic contact, which in turn hosts the economic PGM-bearing Main Sulphide Zone (MSZ). The MSZ is a lithologically continuous layer between 2 and 10 metres thick that forms an elongated basin. Layers of igneous rocks within the basin dip at between 5° and 20° near the margins and flatten out near the centre to form a flat-lying floor. The MSZ typically contains iron-nickel-copper sulphides whilst elevated precious metal concentrations occur towards the base of the MSZ. Optimal mineralisation varies and is often difficult to follow visually, in contrast to the Bushveld Complex. Peak values for the PGM and base metals are commonly offset, while the proportions between platinum and palladium also vary vertically. The Dyke developed as a series of initially discrete magma chamber compartments, which joined up as the chambers filled. These chambers coalesced below the MSZ and before erosion, the MSZ would have been continuous along the length of the Dyke. In its present plane of erosion, the Great Dyke is longitudinally subdivided into a series of narrow contiguous layered complexes or chambers, namely Musengezi, Hartley, Selukwe and Wedza. The Hartley Complex straddles two sub-chambers, Darwendale and Sebakwe.

The Bushveld Complex

The Bushveld Complex is an extremely large, 2 billion year-old layered igneous intrusion occurring within the boundaries of South Africa. Although it shares many characteristics with other layered complexes around the world, the Bushveld Complex is unique both in its size, covering an aerial extent of some 66,000 square kilometres, and in the economic importance of its mineral deposits. It is generally understood that the Bushveld Complex was formed by the repeated injection of magma into a subvolcanic chamber. Due to the huge volumes of magma involved, cooling and crystallisation were slow processes. Different minerals were formed as the magma cooled; these accumulated into sub-horizontal layers building from the base of the chamber. Such processes were repeated by the intermittent replenishment of magma thus producing a repetition of the mineral layering. The complex comprises an array of diverse igneous rocks ranging in composition from ultramafic to felsic. Contained within a well-layered ultramafic to mafic succession, called the Rustenburg Layered Suite, are two horizons which host economically exploitable quantities of PGMs, namely the Merensky Reef and the underlying UG2 Chromitite Layer. These two economic horizons can be traced for hundreds of kilometres around the complex and are the focus of Implats’ operations in which the PGMs platinum, palladium, rhodium, ruthenium and iridium are recovered together with quantities of gold, nickel, copper and cobalt. Implats’ operations here comprise Impala Platinum Limited, located near Rustenburg in North West Province, and Marula Platinum situated near Burgersfort in the province of Limpopo. The Two Rivers mine, a joint venture between Implats and African Rainbow Minerals (ARM), is located south of Burgersfort in the province of Mpumalanga.

The Merensky Reef is generally composed of a feldspathic pyroxenite hangingwall, overlying a basal chromitite unit, followed by an anorthosite to anorthositic-norite footwall. The Merensky Reef Zone at Impala Platinum’s mining operations displays a gradational mineralised zone, with grades decreasing from the Merensky chromitite unit into the footwall and hangingwall. The UG2 Reef is defined as a main chrome unit with the mineralisation wholly contained within this unit.

Material changes in Mineral Resource and Reserve estimates

Material and significant issues affecting the Mineral Resource and Mineral Reserve estimates as at 30 June 2006 relative to the previous reporting period are related to the agreement between Zimplats and the Government of Zimbabwe announced on 31 May 2006, whereby some 36% of the Mineral Resource base would be transferred to the state. Other than that, there have been no material changes in Implats’ resource base.

Impala Platinum

Impala Platinum holds contiguous old order mining and prospecting rights for a total area of 27,573 hectares. The Mineral Resources and Mineral Reserves quoted are held under four old order mining rights and two old order prospecting rights as well as an unused old order right. The application for conversion of these to new order mineral rights was submitted in March 2005 but had not been granted by 30 June 2006.

Impala Platinum Merensky metals split
Impala Platinum UG2 metals split

Impala Platinum

Zimplats

Zimplats
MSZ metals split

Following extensive negotiations, Zimplats signed an agreement with the government of Zimbabwe relating to the release of a portion of its mining claims in exchange for a combination of empowerment credits and cash. In addition, the agreement ensures that the ground required for long-term expansion is secured under the special mining lease regime. In terms of this agreement, Zimplats will release claims amounting to 36% of the company’s resource base on the Great Dyke in Zimbabwe. The contained metal in the ground to be released is estimated at some 51 million ounces of platinum or 99 million ounces 4E (platinum, palladium, rhodium and gold).

The released ground is outside of Zimplats’ long-term expansion programme of 1 million platinum ounces per annum over a 50-year life-of-mine.

Zimplats

Marula Platinum

Marula Platinum holds old order mining rights on the farms Winnaarshoek 250KT, Clapham 118KT, and portions of the farms Driekop 253KT and Forest Hill 117KT, comprising 2,765 hectares. These Mineral Resources and Mineral Reserves are held under two old order mining licences; the application for conversion of these to new order mining rights was submitted in October 2004 and was still pending at year-end. The new order prospecting right for the contiguous Hackney area was also submitted but is still outstanding. In line with the equity ownership requirements of the Mining Charter, Implats entered into transactions that ensure BEE ownership in Marula Platinum of 22.5%.

Marula Platinum Merensky metals split

Marula Platinum UG2 metals split

Marula Platinum

Mimosa

Mimosa
South Hill MSZ metals split

The Mimosa lease encompasses four areas: North Hill, South Hill, Mtshingwe Block and Far South Hill, separated by major faults, covering an area of 6,590 hectares. As at 30 June 2006 Implats owned a 50% shareholding in Mimosa Investments Limited (with Aquarius Platinum Limited owning the other 50%).

Mimosa – South Hill

Two Rivers

Two Rivers Platinum Mine is a 55:45 joint venture between African Rainbow Minerals and Implats respectively. It is situated on the farm Dwarsrivier 372KT, in the southern sector of the eastern limb of the Bushveld Complex. Mining operations are focussed on the UG2 horizon.

Two Rivers

Two Rivers
UG2 metals split

Aquarius Platinum

As at 30 June 2006, Implats held a 20% equity interest in Aquarius Platinum South Africa (AQPSA). In addition, there is an off-take agreement with IRS for the treatment of platinum concentrate. Implats also owns a 8.6% interest in Aquarius Platinum Limited, the holding company of AQPSA. The annual Mineral Resource and Mineral Reserve statement for AQPSA was not finalised in time for inclusion in this report. Information on this can be obtained from Aquarius Platinum Limited’s 2006 annual report.

Total attributable ounces

The table below summarises the total platinum ounces sourced from all categories of Mineral Resources of the Implats group of companies.

Impala Platinum Holdings Limited - Annual Report 2006