The principal gold-bearing ore body at the Tshepong and Phakisa sections is the stratiform and stratabound Basal Reef (known as the Basal Reef Zone or BRZ). This unit comprises a thin conglomerate at the base of the BRZ, overlain by clean ‘placer’ quartzites. The BRZ is underlain by a thick series of siliceous and argillaceous quartzites comprising the Welkom Formation and is overlain by shales and quartzites of the Harmony Formation, both of the Johannesburg sub-Group of the Central Rand Group. Although not apparent within the Mines Lease, the BRZ sits unconformably on the Welkom Formation.

At the Phakisa section, the reef dips towards the east at 25° in the north and up to 45° in the south. The Lower Cycle Black Chert facies predominates in the north with a north-west south-east value trend. The reef consists of an oligomictic small pebble matrix-supported conglomerate lag with fly-speck carbon contact. The rest of the reef package constitutes barren siliceous fine-grained reef quartzite. The entire reef package reaches up to 160cm thick and is overlain by 1cm – 30cm of lower Khaki Shale. This in turn is overlain by the approximately 3-4m thick Waxy Brown Leader Quartzite, above which lies the 3-4m thick Upper Khaki shale.

The Upper Cycle Black Chert facies Basal Reef prevails in the south of the lease area, and consists of a slightly polymictic (yellow shale specks present), matrix-supported medium pebble conglomerate with a more gradational contact absent of carbon where mineralisation is associated with fine disseminated and buck-shot pyrite. The conglomerate is slightly thicker compared to the Lower Cycle, but is also overlain by barren reef quartzite, the entire package reaching characteristically up to only 40cm thick. The lower Khaki Shale is up to 1m thicker.

The Central Rand Group itself is overlain in turn by lavas and sediments of the Ventersdorp System and the more recent sediments of the Karoo Group.

The B Reef occurs approximately 150 metres stratigraphically above the Basal Reef (or approximately two production working levels). Consequently, the B Reef is not normally intersected in either Basal Reef development or routine diamond drilling.

The lowest unit is a basal lag (Zone A), sitting on the underlying Doornkop Quartzite Formation. Where this unit is developed (or preserved), it may be highly mineralised oligomictic or polymictic conglomerate, with visible gold, buckshot pyrite and carbon mineralisation. This unit may carry gold values of many thousands of cmg/t and represents a potentially rewarding exploration target.

The unit overlying the Zone A may be either Zone B, which is comprised of a mildly erosive pebbly quartzite formation, and/or the stratigraphically younger Zone C, which is a polymictic conglomerate with low values which is also erosional into the underlying A and B zones.

Following the successful conclusion of the study to investigate their integration, Tshepong section and the Phakisa section have been consolidated as a single entity, the Tshepong operations.

PHAKISA MINE:

The Phakisa mine has two shafts, the main Phakisa shaft and the Nyala shaft. The latter is used to hoist rock and serves as a second escape route. Phakisa exploits the Basal Reef. Mining is conducted to a depth of 2 426m.

The Basal Reef is mined conventionally from a single shaft barrel reaching a depth of 2 600m below collar. The reef horizon is accessed by means of conventional grid development and is extracted as an open mining operation to the south of the 69 raise line, but undercut mining began as the mining continued to the north. Phakisa reached full production in October 2016. Pillar crews are also planned as the life of mine progresses to ensure depletion of the pillar reserves within the life-of-mine time frame.

TSHEPONG MINE:

Mining is conducted to a depth of 2 349m. The mine uses conventional undercut mining in the Basal Reef while the B Reef is exploited as a high grade secondary reef.

At the Tshepong section, the reef horizon is accessed via conventional grid development. The shaft’s primary economic reef horizon is the Basal Reef that is extracted by undercut mining, leaving a quartzite beam in the hangingwall to ensure the stability of the overlaying shale. Minor amounts of B Reef that do not exceed 18% of the on-reef area mined annually are extracted via open stoping mining. The B Reef is located approximately 140m stratigraphically above the Basal Reef, necessitating separate infrastructure (i.e. footwall development) from that for the Basal Reef. The presence of khaki shale approximately 6m thick above the Basal Reef strains the footwall development rates of the B Reef, requiring the installation of ring sets for the first 25m of development. The Tshepong section has significant reserves to maintain a long term life, however, extraction of ore from pillars will become more important as the life of mine progresses, but volumetrically these reserves are not significant.

Stoping ore and development rock from the Tshepong section are hoisted and processed separately above 66 level. Below 66 level, stoping and development rock is hoisted and processed as one product currently.

At the Phakisa section, stoping ore and development rock are hoisted and processed separately. The reef, stoping ore, is milled and processed at Harmony one plant with gold recovered by means of cyanide leaching.

Tshepong operations shares the Harmony One plant with three other Harmony operations and four Harmony waste rock dumps. The plant’s design capacity exceeds the maximum planned production from these sources. Gold is recovered by means of gold cyanide leaching.