What we do Crocodile River Mine

Crocodile River Mine

Crocodile River Mine (CRM) is a shallow, long-life hybrid platinum group metals mine on the western limb of the Bushveld complex, 70 km north-northwest of Johannesburg in the North West Province of South Africa.

CRM, which is currently the most advanced of our assets, is located within the Brits Graben, where the UG2 typically consists of a single chromite layer some 1.35m to 1.5m thick.

The Crocodile River operation currently has a mine lease area covering 2,700 hectares and comprises an operating reclaiming section on the tailings dam, Zandfontein underground; two development sections, Crocette and Kareespruit; and a number of processing plants.

The Zandfontein underground mine has a life of mine of more than 22 years and 1.7 million ounces of 4E PGM mineral reserves, with a potential production of 50,000 ounces per year.

HISTORY

CRM has been in operation since 1987, when the decline development at the Zandfontein section commenced and the mine was listed on the Johannesburg Stock Exchange. Mining operations were suspended in 1991 due to a decline in PGM prices. The mine was again brought back into production in 2000 before being placed on care and maintenance in 2003. The following year, limited mining activities were undertaken, and the stoping sections were refurbished. In 2005, drilling and blasting resumed, as well as dewatering and shaft rehabilitation, beginning in 2008. In 2012, the eastern limb projects, including Mareesburg and Kennedy’s Vale/Spitzkop, were placed on care and maintenance and then in 2013, a decision was taken to place the Zandfontein and Crocette mines under care and maintenance owing to the global economic outlook and weaker PGM pricing at the time.

Chrome reclamation began in December 2018 from the retreatment project of the Zandfontein tailings with PGMs reclamation beginning later in 2020.

Following significant improvements in the PGM market and a cost-effective re-design of the mining methodology, Eastplats announced that it will restart underground mining at CRM. The initial restart of the Zandfontein underground is fully funded and will begin with re-support tunnel work.  The project is expected to yield high-grade PGM concentrate produced from the UG2 Chromite Layer, which will be transported to the Impala Smelter Complex near Rustenburg in terms of an offtake agreement between the parties.

Recovered ounces and grade (2022 – 2043)


VIDEO: Crocodile River Mine Flyover

Major Faults Within the Project Area

Key facts

Reserves

1.7 Moz 4E

Life of mine

22 years

Cost (4E)(AISC)

  • including TSF: $1 502 /oz
  • excluding TSF: $1 405 /oz

Net present value

  • including TSF: $202M
  • excluding TSF: $188M

Internal rate of return (based on a 4E basket price of US $1,825/oz)

118%

Payback period

2.3 years

ZANDFONTEIN UNDERGROUND

As part of Eastplats’ development strategy for CRM, it is preparing to restart mining at the Zandfontien underground with the first production expected in 2024. Previously, Zandfontein was placed in care and maintenance due to the economics of the operation at the time.

In 2021, an underground life of mine study and design was completed by the mining consulting group Ukwazi and Minxcon was commissioned to complete a Technical Report and valuation of Zandfontein. The re-design of the Zandfontein underground will contribute to a profitable and sustainable operation going forward.

The mine has significant potential with a further two development sections, Crocette and Kareespruit. As part of our considered strategy, Eastplats will begin with a soft restart at Zandfontein and ramp up as mining capital becomes available.

The highlights of the changes in the design and operating principles are as follows:

Aspect Previous operations New design Advantage
In-stope Drilling Handheld with compressed air Handheld with hydro power
  • More effective power
  • Higher penetration
  • Reduced noise
  • Reduced heat generation
Support
  • Sticks
  • 1.8m roofbolts
  • Packs
  • Pillars
  • Timberless
  • 2.0m cable anchors
  • Packs
  • Pillars
  • Reduced logistics
  • Reduced material handling
  • Reduced cost
Development in footwall, 30m below reef Development on reef
  • Reduces hoisting
  • Cost saving
  • Generates revenue
Faults Single operation with development through large faults with single vent district Operation with three distinct zones with their own infrastructure
  • Flexibility
  • Reduced risk of development through faults
  • Three vent districts
Infrastructure Shaft loading and logistic arrangements and conveyors not fully commissioned Conveyors, chairlift and vertical shaft fully functional
  • Increased efficiencies
  • Lower Cost
  • Reduced load and haul fleet
  • Reduced emissions

ZANDFONTEIN MINE FACILITY MAP

Tonnage profile

OZ profile

Zandfontein Underground Mine Resources, as at January 2022

Mineral Resource Class Geo Loss Tonnes Mine Cut 4 E Pt Pd Rh Au 4 E
kt m g/t g/t g/t g/t g/t Kg Moz
Measured 6 688 1.66 4.85 3.01 1.33 0.48 0.04 32 463 1.04
Indicated 21 371 1.56 4.24 2.63 1.16 0.42 0.03 90 636 2.91
M&I 28 059 1.59 4.39 2.72 1.20 0.43 0.03 123 099 3.96
Inferred 22 550 1.46 4.45 2.76 1.22 0.44 0.03 100 390 3.23

Zandfontein Underground Mine Reserves, as at January 2022

Mineral Reserve Category Delivered Tonnes 4E Grade 4E Content
kt g/t kg koz
Proved 2 282 4.75 10 829 348
Probable 12 298 3.48 42 777 1 375
Total 14 580 3.68 53 606 1 723

Zandfontein Tailings Retreatment Project

Eastplats started design work and construction preparation in 2017 to re-mine the tailings storage facility to produce chrome concentrates at the Zandfontein Retreatment Project.

In 2018 Eastplats and its subsidiary Barplats Mines (Pty) Limited agreed with Union Goal Offshore Solution Limited to provide for the construction, mining and processing of the tailings, and the subsequent offtake of chrome concentrate, from the Retreatment Project.

Union Goal financed and sourced the chrome processing circuit, related technology and know-how while Barplats is responsible for the development, mining and operations of the Retreatment Project.

The Chrome Circuit uses magnetic separation technology to improve the recovery of chrome concentrate from tailings compared to traditional spiral technology, which was to be mined by a hydro / mechanical method. This resulted in the economical re-mining and treatment of the entire resource of 13.68 million tonnes with better chrome recoveries and increased the life of the project from 33 months to over 60 months.

In Q4 2020, Eastplats commissioned PGM Circuit D to produce PGM concentrates from part of the tails following the chrome production. Work commenced on PGM Circuit B in May 2021 and the circuit was commissioned in October 2021. The chrome and PGM expansion were completed in 2022. Completion of the optimization program on the chrome circuit is contingent on receipt of payments from Union Goal required to fund the remainder of commissioning and testing.

Previously, and until the end of the second quarter of 2022, the Retreatment Project produced revenue based on tons of material made available for processing by remining and processing the tailings, recovery of certain operational costs and allocation of the upfront cash payment for the offtake of chrome concentrate to Union Goal. Additional non-cash deferred revenue was recognized based on tons made available for processing from the discounting of the chrome equipment debt and the construction loan based on an effective discount rate. Although the Union Goal Offtake Agreement remains in place, Union Goal stopped taking shipments of chrome concentrate in June 2022. Chrome revenue after this point has been generated only through third-party sales of chrome concentrate. The Company also earns PGM revenue under a PGM offtake agreement with Impala from further processing of tailings materials following the production of chrome concentrates.

ZANDFONTEIN PLANT & EQUIPMENT

Zandfontein Tailings Dam Resources, as at January 2022

Mineral Resource Class Tonnes 3E Pt Pd Rh Au Cr2O3 FeO Cr2O3 FeO
kt g/t g/t g/t g/t g/t % % kt kt
Measured 4,594 1.17 0.71 0.29 0.17 0.01 19.54 15.16 898 697
Indicated 1,049 1.14 0.69 0.29 0.17 0.01 19.21 15.03 202 158
Total in Model 5,643 1.16 0.7 0.29 0.17 0.01 19.48 15.14 1,099 854
Reworked Added (Indicated) 1,545 1.18 0.72 0.3 0.17 0.01 18.5 14.5 286 224
Total Measured 4,594 1.17 0.71 0.29 0.17 0.01 19.54 15.16 898 697
Total Indicated 2,594 1.16 0.71 0.29 0.17 0.01 18.79 14.71 487 382
Total TSF 7,188 1.17 0.71 0.29 0.17 0.01 19.27 15 1,385 1,078

Zandfontein Tailings Dam Reserves, as at January 2022

Mineral Reserve Category Tonnes 4E Grade 4E Content Cr2O3 Content Cr2O3 Grade
kt g/t kg koz kt %
Probable 7,570 1.1 8,345 268 1,371 18.12