Evander Gold Mining (Pty) Ltd Prospecting Right: MP 30/5/1/1/2/14910 PR Prospecting Right and Environmental Authorisation for the Evander East 2 Project Dunrose Trading 186 (PTY) Ltd T/A Shango Solutions HHK House Cnr. Ethel Ave and Ruth Cr. Northcliff Gauteng P. O. Box 2591 Cresta 2118 Phone: +27 11 678 6504 Fax: +27 11 678 9731 Email: zizo@shango.co.za Website: www.shango.co.za JUNE 2018 This Background Information Document (BID) provides you, as an Interested and Affected Party (I&AP), with an overview of the proposed project The BID invites you, as an I&AP to participate in the required Public Participation Process (PPP) The BID provides you, as an I&AP with an opportunity to contribute and participate in the formulation of the Basic Assessment Report (BAR) and Environmental Management Programme (EMPr) The BID also provides you, as an I&AP an opportunity to provide the project team with your comments, concerns and objections to the proposed project
1. INTRODUCTION Evander Gold Mining (Pty) Ltd (hereafter referred to as Evander) submitted an application for a Prospecting Right and an Environmental Authorisation in order to prospect for the following commodities: Gold Silver Uranium Platinum group metals The application for the Prospecting Right was accepted by the Department of Mineral Resources Mpumalanga Regional Office on the 23 rd May 2018. The proposed project will be known as Evander East 2 and it will aim to explore and quantify potential mineral deposits. In order to undertake prospecting activities, Evander requires a Prospecting Right in terms of the Mineral and Petroleum Resources Development Act, 2002 (MPRDA, Act No.28 of 2002, as amended). Evander is also required to obtain an Environmental Authorisation (EA) in terms of the National Environmental Management Act, 1998 (NEMA, Act No. 107 of 1998, as amended) which involves the submission of a Basic Assessment Report (BAR) and Environmental Management Programme (EMPR). Shango Solutions (Pty) Ltd has been appointed by Evander as the Environmental Assessment Practitioner (EAP) to assist in complying with these requirements. 2. AIM OF THE BID Public Participation forms an integral part of the Basic Assessment process. The Background Information Document (BID) offers the reader the opportunity to obtain information, comment, raise issues of concern and collaborate in the development of the process. The distribution of this document is a crucial step in advising the reader on how to become involved in the process. This document aims to provide the reader with basic information regarding the proposed project which includes: An introduction to the project, including location details An indication of the proposed activities and the legal framework in which the project is executed Environmental impacts that may potentially occur An explanation of the Public Participation Process (PPP) to be followed An explanation of how to become involved as an Interested and Affected Party (I&AP) 3. LOCALITY The application area is situated within the Highveld Magisterial District approximately 4 kilometres northeast of the town of Evander in the Mpumalanga Province, South Africa. The application area is adjacent to the Evander Gold Mine and covers an area of approximately 11 681.95 hectares (Figure 1) over 78 farm portions. Table 1 indicates the property details of the Prospecting Right application area. 1
Figure 1: Locality map. 2
Table 1: List of affected property details. Farm Name/ Number Portion Number SG Number Province Dieplaagte 123 RE/0 T0IS00000000012300001 Mpumalanga Dieplaagte 123 7 T0IS00000000012300007 Mpumalanga Langsloot 99 13 T0IS00000000009900013 Mpumalanga Langsloot 99 14 T0IS00000000009900014 Mpumalanga Langsloot 99 RE/16 T0IS00000000009900016 Mpumalanga Langsloot 99 17 T0IS00000000009900017 Mpumalanga Langsloot 99 4 T0IS00000000009900004 Mpumalanga Langsloot 99 RE/8 T0IS00000000009900008 Mpumalanga Langsloot 99 RE/3 T0IS00000000009900003 Mpumalanga Riversdale 119 RE/8 T0IS00000000011900008 Mpumalanga Riversdale 119 6 T0IS00000000011900006 Mpumalanga Riversdale 119 5 T0IS00000000011900005 Mpumalanga Riversdale 119 4 T0IS00000000011900004 Mpumalanga Riversdale 119 3 T0IS00000000011900003 Mpumalanga Riversdale 119 13 T0IS00000000011900013 Mpumalanga Riversdale 119 RE/7 T0IS00000000011900007 Mpumalanga Riversdale 119 RE/0 T0IS00000000011900000 Mpumalanga Spandow 121 RE/0 T0IS00000000012100000 Mpumalanga Syferfontein 115 RE/0 T0IS00000000011500000 Mpumalanga Syferfontein 115 10 T0IS00000000011500010 Mpumalanga Syferfontein 115 11 T0IS00000000011500011 Mpumalanga Syferfontein 115 5 T0IS00000000011500005 Mpumalanga Syferfontein 115 7 T0IS00000000011500007 Mpumalanga Syferfontein 115 8 T0IS00000000011500008 Mpumalanga Syferfontein 115 14 T0IS00000000011500014 Mpumalanga Syferfontein 115 9 T0IS00000000011500009 Mpumalanga Vanschalkwyksrust 118 1 T0IS00000000011800001 Mpumalanga Vanschalkwyksrust 118 2 T0IS00000000011800002 Mpumalanga Vanschalkwyksrust 118 6 T0IS00000000011800006 Mpumalanga Vanschalkwyksrust 118 8 T0IS00000000011800008 Mpumalanga Zondagsfontein 124 1 T0IS00000000012400001 Mpumalanga Zondagsfontein 124 21 T0IS00000000012400021 Mpumalanga Zondagsfontein 124 29 T0IS00000000012400029 Mpumalanga Zondagsfontein 124 RE/3 T0IS00000000012400003 Mpumalanga Zondagsfontein 124 37 T0IS00000000012400037 Mpumalanga Zondagsfontein 124 4 T0IS00000000012400004 Mpumalanga Zondagsfontein 124 42 T0IS00000000012400042 Mpumalanga Zondagsfontein 124 43 T0IS00000000012400043 Mpumalanga Zondagsfontein 124 RE/5 T0IS00000000012400005 Mpumalanga Zondagsfontein 124 RE/10 T0IS00000000012400010 Mpumalanga Zondagsfontein 124 RE/11 T0IS00000000012400011 Mpumalanga Zondagsfontein 124 RE/26 T0IS00000000012400026 Mpumalanga Zondagsfontein 124 9 T0IS00000000012400009 Mpumalanga Zondagsfontein 124 RE/6 T0IS00000000012400006 Mpumalanga Zondagskraal 125 1/125 T0IS00000000012500001 Mpumalanga Zondagskraal 125 RE/2 T0IS00000000012500002 Mpumalanga 3
Farm Name/ Number Portion Number SG Number Province Zondagskraal 125 3/125 T0IS00000000012500003 Mpumalanga Zondagskraal 125 4 T0IS00000000012500004 Mpumalanga Zondagskraal 125 8 T0IS00000000012500008 Mpumalanga Zondagskraal 125 15 T0IS00000000012500015 Mpumalanga Zondagskraal 125 24 T0IS00000000012500024 Mpumalanga Zondagskraal 125 25/125 T0IS00000000012500025 Mpumalanga Zwakfontein 120 RE/1 T0IS00000000012000001 Mpumalanga Zwakfontein 120 RE/10 T0IS00000000012000010 Mpumalanga Zwakfontein 120 RE/11 T0IS00000000012000011 Mpumalanga Zwakfontein 120 RE/13 T0IS00000000012000013 Mpumalanga Zwakfontein 120 RE/12 T0IS00000000012000012 Mpumalanga Zwakfontein 120 RE/15 T0IS00000000012000015 Mpumalanga Zwakfontein 120 16 T0IS00000000012000016 Mpumalanga Zwakfontein 120 17 T0IS00000000012000017 Mpumalanga Zwakfontein 120 18 T0IS00000000012000018 Mpumalanga Zwakfontein 120 19 T0IS00000000012000019 Mpumalanga Zwakfontein 120 20 T0IS00000000012000020 Mpumalanga Zwakfontein 120 RE/23 T0IS00000000012000023 Mpumalanga Zwakfontein 120 22 T0IS00000000012000022 Mpumalanga Zwakfontein 120 21 T0IS00000000012000021 Mpumalanga Zwakfontein 120 24 T0IS00000000012000024 Mpumalanga Zwakfontein 120 RE/25 T0IS00000000012000025 Mpumalanga Zwakfontein 120 26 T0IS00000000012000026 Mpumalanga Zwakfontein 120 27 T0IS00000000012000027 Mpumalanga Zwakfontein 120 RE/3 T0IS00000000012000003 Mpumalanga Zwakfontein 120 7 T0IS00000000012000007 Mpumalanga Zwakfontein 120 9 T0IS00000000012000009 Mpumalanga Zwakfontein 120 29 T0IS00000000012000029 Mpumalanga Zwakfontein 120 31 T0IS00000000012000031 Mpumalanga Zwakfontein 120 RE/8 T0IS00000000012000008 Mpumalanga Zwakfontein 120 RE/32 T0IS00000000012000032 Mpumalanga Zwakfontein 120 33 T0IS00000000012000033 Mpumalanga 4. PROJECT DESCRIPTION Invasive and non-invasive prospecting activities will be undertaken as part of the proposed Prospecting Work Programme. The scope of these activities is as follows: Phase 1: 1.1 Locate and acquire historical data [Year 1: 9 months] Prospecting and gold mining in the Evander area commenced in the 1950 s, resulting in nearly 70 years worth of knowledge and historical exploration being available. All historical data detailing the position and economic potential of the target horizons will be located and acquired from Evander Mine, the public domain and other exploration and mining houses. The data obtained will be in the form of historical borehole information, cadastral maps, geological maps, geophysical surveys (all available existing published gravimetric, radiometric, magnetic, seismic data, remote sensing data, as well as any information pertaining to previous exploration or mining will be consulted and integrated). Data will be scrutinised and verified through industry standard Quality Assurance/Quality Control methods (QA/QC procedure). 4
Since the historical data may be stored at various locations it is foreseen that this activity will take approximately 9 months of the first year of prospecting. Once the majority of the historical information is identified, this activity will be concluded concurrently with the data capture, analysis and interpretation exercises. 1.2 Data capture, QA/QC and database establishment [Year 1: 3 months] The historical data will be captured into relevant databases and the databases will undergo rigorous QA/QC procedures. Once the databases are deemed of highest standard, they will be compiled into a geological database for interpretation and use in geological modelling and resource estimation activities. 1.3 Analysis, capture and interpretation of historic data [Year 1: 3 months] The databases compiled as detailed in Section 1.2, will be investigated by a team of Witwatersrand geology experts. The aim of the exercise is to standardise nomenclature, investigate geological relations, determine the geological setting and reconstruct the depositional environment of the gold bearing horizon in order to better grasp the factors controlling the mineralisation. 1.4 Desktop study [Year 1: 3 months] The conclusions from the interpretation together with a mineralisation model will be presented in a geological desktop study report. The findings of this report will form the basis for the future exploration strategy. 1.5 Initial field visit [Year 1: 2 weeks] A field visit will be undertaken to familiarise the applicant with surface features (such as historical mines, infrastructure, outcrops, water bodies and wetlands) in the project area and to meet the surface landowners. During this visit farm boundaries within the project area and farming activities will be verified. An effort will be made to identify any factors that may impact the exploration programme. Phase 2: 2.1 Identify and detail any coal mining on the prospect [Year 2: 5 months] Coal within the Vryheid Formation is present on the project area. Sasol is currently mining coal in the area. It is important for safe exploration practice to have a detailed understanding of whether the coal is being mined. A detailed identification and location exercise will be performed in order to accurately define the exploration activities so that no interference occurs with any potential existing coal mining. 2.2 Establish a preliminary geological model [Year 2: 5 months] Utilising the historical data a preliminary 3 dimensional geological model will be developed. This model will be utilised to further refine the exploration programme for the prospect area. 2.3 Perform a target generation exercise [Year 2: 2 months] Information collected will be analysed and interpreted. Targets will be delineated and ranked according to appropriate prospectivity parameters (geological and structural) for further exploration work. An exploration strategy will thereafter be devised for the prospect area. Phase 3: 3.1 Geophysical survey (if required) [Year 3: 7 months] Geophysical surveys conducted by mining companies in the past, are available and could be acquired without the need to conduct further surveys. Regional aeromagnetic surveys are accessible and based on a favourable outcome of the work in Years 1 and 2, the decision will be taken to purchase these surveys. If the historical regional geophysical surveys are favourable, further ground geophysical investigations may be carried out. 5
3.2 Interpretation of survey results [Year 3: 2 months] The geophysical survey results will be integrated with the geological database and presented in digital formats. Interpretation of the survey results in terms of the known geology and structures will be performed. 3.3 Refinement of geological model and identification of drilling targets [Year 3: 3 months] The preliminary geological model will be reviewed and refined utilising the geophysical data. The refined geological model will be employed to identify prime drilling locations to enable upgrading of geological model confidence. Phase 4: 4.1 Drilling of 2 diamond drill holes to a depth of 1 500 m Year 4: 11 months] Depending on the initial geological model established, a drilling programme will be undertaken. Diamond drilling (Figures 2 and 3) will be considered for this phase. Should the drilling programme prove to be successful, additional holes will be drilled. This will be indicated in the form of a S102 application together with the proposed revised prospecting plan and EMPR. Drilling will be conducted in a competent and environmentally responsible manner including rehabilitation of the drill sites to their original state. Plastic lining will be placed underneath the rig motors to prevent oil seepage. It is noted that no drilling fluids other than water for dust suppression, will be utilised in the case of diamond drilling. Environmental rehabilitation measures will be included in the contract with the drilling company and environmental rehabilitation costs to be included in the drilling costs. 4.2 Logging and sampling of drill holes [Year 4: 11 months] Once the holes are drilled, logging and sampling will be performed in order to integrate the drill hole information into the database. 4.3 Refinement of geological model [Year 4: 11 months] The data obtained from the drilling and logging of the holes will be integrated into the geological model in order to confirm the geology and further refine the future drilling targets. The updated geological model will be utilised to site the drill holes planned during the Year 5 drilling programme. Phase 5: 5.1 Drilling of 3 diamond drill holes to a depth of 1 000 m [Year 5: 9 months] Drilling will be conducted in a competent and environmentally responsible manner including rehabilitation of the drill sites to their original state. Plastic lining will be placed underneath the rig motors to prevent oil seepage. It is noted that no drilling fluids other than water for dust suppression, will be utilised in the case of diamond drilling. Environmental rehabilitation measures will be included in the contract with the drilling company and environmental rehabilitation costs to be included in the drilling costs. 5.2 Logging and sampling of drill holes [Year 5: 9 months] Once the holes are drilled, logging and sampling will be performed in order to integrate the borehole information into the database. 5.3 Finalisation of geological model [Year 5: 1 month] The data obtained from the drilling and logging of the holes will be integrated into the geological model in order to finalise the model. The finalised geological model will be utilised to determine the 3D position of the Kimberley Reef, which will serve as an input to resource estimation. 5.4 Resource estimation [Year 5: 2 months] Utilising the geological databases together with the sample data a resource estimate will be performed on the Kimberley Reef. 6
Figure 2: A typical drill rig. Figure 3: Typical diamond drill bits. 5. GEOLOGY FORMATION AND PROSPECTING TARGETS The Evander Goldfield in the East Rand was the last of the major goldfields of the Witwatersrand Basin to be discovered and developed. The first mine (Winkelhaak) was incorporated in 1955 and the first gold was poured in 1958. Notwithstanding its relatively recent establishment (1950 s), the body of public domain geological literature on the goldfield is minute compared to that for the other Witwatersrand goldfields. The most important compilation of the geology was carried out by E B Tweedie in 1981. Although minor modifications have been made, Tweedie s pioneering work remains the cornerstone of the currently accepted model for the origin of the mineralisation in the basin. Rocks of the Karoo Supergroup are present from surface to a depth of 1 000 m below surface. Coal is present within the Vryheid Formation of the Karoo Supergroup and is being exploited in some areas in Evander. The dolomites of the Chuniespoort Group, Transvaal Supergroup occur underneath the Karoo. The lavas of the Ventersdorp Supergroup overlie the Witwatersrand Supergroup and the targeted Central Rand Group (Figure 4). 7
Figure 4: Generalised stratigraphic column of the Evander area. Gold is present in the Central Rand Group of the Witwatersrand Supergroup at the Evander mine. This is supported by current gold mining on the Kimberley Reef which is contained in the Central Rand Group at the Evander Gold Mine. The Kimberley Reef is considered to be present at depths deeper than 1 000 m below surface on the prospect. In addition to gold, the primary prospecting target, silver, uranium and platinum group metals are currently and have been historically, extracted as by-products of gold. 6. REGULATORY REQUIREMENTS South African law requires that the Environmental Authorisation be sought for certain activities prior to commencement of prospecting. As part of the application process for Environmental Authorisation, it is necessary to assess the environmental and social impacts associated with the proposed activities, so as to identify any potential negative and/or positive consequences as a result thereof. Measures must be proposed to avoid or minimise these impacts. 8
In terms of NEMA and its EIA Regulations (GN 324/GN 325/GN 327), the following listed activity may be applicable to the proposed project, as such the application is subject to a Basic Assessment process: GN 327 (of 2017), Activity 20: Any activity including the operation of that activity which requires a prospecting right in terms of Section 16 of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002), including (a) associated infrastructure, structures and earthworks, directly related to prospecting of a mineral or (b) the primary processing of a mineral resource including winning, extraction, classifying, concentrating, crushing, screening or washing; but excluding the secondary processing of a mineral resource, including the smelting, beneficiation, reduction, refining, calcining, or gasification of the mineral resource. GN 324 (of 2017), Activity 12(f): The clearance of an area of 300 square metres or more of indigenous vegetation except where such clearance of indigenous vegetation is required for maintenance purposes undertaken in accordance with a maintenance management plan (i) within any critically endangered ecosystem listed in terms of section 52 of the NEMBA or prior to the publication of such a list, within an area that has been identified as critically endangered in the National Spatial Biodiversity Assessment 2004 and (ii) within critical biodiversity areas identified in bioregional plans. 7. TYPICAL IMPACTS ASSOCIATED WITH THESE ACTIVITIES The following impacts inter alia will be included and assessed in the Basic Assessment Report: Safety and security risks to landowners and lawful occupiers Interference with land-use Sense of place Loss/destruction of habitat Damage to existing infrastructure Perceptions and expectations Clearance of vegetation Soil instability/compaction/pollution Erosion and sedimentation Disturbance/damage of heritage features Noise Introduction of alien species Fugitive emission (dust) Hydrocarbon spills/contamination Surface and groundwater pollution Generation and disposal of waste 9
8. ENVIRONMENTAL AUTHORISATION PROCESS The key steps involved in a typical Basic Assessment process are described below. Initiation and Application Compile and submit application form Public Participation Process We are here Identification of I&APs Preparation of notification documents (BID, letter, advert, site notice, registration form) Notification of I&APs and relevant stakeholders of the project Placement of site notices and advertisement Basic Assessment Report (BAR and Environmental Management Programme Report (EMPR) Compilation of baseline environment data and identification of potential impacts associated with the project Assessment of alternative project aspects Specialist studies undertaken (if applicable) Potential impacts are rated and mitigation measures proposed Monitoring programmes proposed to ensure mitigation measures are efficient Draft BAR/EMPR is made available to the public and Authorities for public review and comment Final BAR/EMPR is updated to include all comments prior to submission to the DMR DMR accepts the BAR/EMPR or requests additional information Record of Decision DMR makes a decision and either approves or rejects the application for Environmental Authorisation All I&APs are notified of the outcome of the application, and their right to appeal 9. PERIOD FOR WHICH THE ENVIRONMENTAL AUTHORISATION IS REQUIRED The Environmental Authorisation is required for five (5) years. 10. NEED AND DESIRABILITY OF THE PROJECT Should prospecting prove successful and a resource is quantified, it would indicate a potential viable economic activity in the form of mining. Mining will contribute greatly to local economic growth through direct employment, future business opportunities, royalties and tax revenues. LIC PARTICIPATION 11. PUBLIC PARTICIPATION PROCESS The reader is hereby invited to participate freely and submit any questions or information that may contribute to the Basic Assessment process. Public involvement is an essential component of the process. It addresses the right of I&APs to be informed of the proposed activities and to be involved in decisions that affect them. It also affords the EAP the opportunity to address the issues and concerns raised by I&APs thus allowing the EAP to assess all the potential impacts of the proposed project. 12. INVITATION TO REGISTER Should you wish to register as an I&AP and be kept informed on this project, kindly complete the attached questionnaire and return to Shango Solutions using contact details provided on the questionnaire and below by no later than 9 July 2018. 10
Any queries, comments, or concerns with regards to this application can be directed to Shango Solutions: Tel: 011 678 6504 Fax: 011 678 9731 E-mail: zizo@shango.co.za Contact person: Ms Zizo Siwendu Project name: Evander East 2 Postal address: P O Box 2591, Cresta, 2118, South Africa Any comments or concerns regarding this application can also be directed to the Department of Mineral Resources (and a copy sent to Shango Solutions): Tel: 013 653 0500 Fax: 013 690 3288 Contact person: Ms P Maluleka DMR reference number: MP 30/5/1/1/2/14910 PR Postal address: Private Bag X7279, Emalahleni, 1035 Attention: Mine Environmental Management Directorate DMR - Mpumalanga Regional Office 11