Phase 1

The first phase of the FWGR capital project entailed the reconfiguration, upgrade and refurbishment of the existing DP2 in order to treat 500ktpm of reclaimed material from the Driefontein 5 tailings dam.

This development included:

• The construction of the Driefontein 5 reclamation and pump station to collect, screen and transfer the repulped tailings from the reclamation site to DP2 including all relevant pipeline infrastructure
• The construction of a high-pressure process water pump station and associated pipeline infrastructure to supply 30bar water for the slurry guns
• The re-configuration of DP2 from the nameplate capacity of 180 000tpm to 500 000tpm further processing of higher tailings volumes
• Refurbishment of the DP2 conventional CIL plant inter-stage screens to cater for the higher volume
• Classifying and milling circuit upgraded to allow approximately 24% of the coarser material to be milled for gold liberation
• Upgrading of Driefontein 4 TSF from the conventional day wall depositing method used previously to cycloning to cater for the additional volumes and rate of rise

Phase 2

The second phase of the FWGR project involves a consolidation of what remains of the Phase 1 materials and the remaining material we acquired, and we envisage a monthly production rate of 1.2Mt once complete. The key features of this phase are the construction of an ultra-high volume deposition facility and a large centralised plant.

The Phase II project is considered a key project to deliver into our strategic objectives to grow our business by replicating our business model, as well as to optimally, profitably and sustainably mine our large surface gold resource and extend beyond to potential resources in the West Rand.

We are therefore pleased to announce that the Definitive Feasibility Study (DFS) for Phase II was completed in third quarter of the 2021 financial year and the project was found to be economically viable in a number of scenarios.

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  A DFS performed by DRA Global (DRA) regarding the construction of the Central Processing Plant (CPP) and related pumping and pipeline infrastructure

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  A detail design of the Regional Tailings Storage Facility (RTSF) performed by Beric Robinson and related capital costing performed by DRA

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  Review of the exploration databases, Mineral Resource and Mineral Reserve estimates of FWGR assets and other future potential assets

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  Legal tenure, permitting, environmental and compliance status

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  An economic analysis of the project

Sound Mining concluded that “the Project is a low risk, profitable operation based on current methodologies and systems. The FWGR management team, employees and mining contractor have the necessary technical knowledge and experience to manage any planning and design uncertainties. There are no material technical or geo-metallurgical risks that could significantly impact the production forecasts.”