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.

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.

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.

Ore mined is processed at the Harmony One plant.