SlideShare a Scribd company logo
1 of 226
Download to read offline
2015
Tania R Marshall,
Pr.Sci.Nat.
Explorations Unlimited
Glenn A Norton,
Pr.Sci.Nat.
Rockwell Diamonds Inc.
TECHNICAL REPORT
ON THE SAXENDRIFT ALLUVIAL DIAMOND MINE
(INCORPORATING THE SAXENDRIFT, BRAKFONTEIN, KWARTELSPAN
AND KRANSFONTEIN PROPERTIES),
HAY DISTRICT, REPUBLIC OF SOUTH AFRICA
FOR
ROCKWELL DIAMONDS INC.
Effective Date: 28 February, 2015
Signature Date: 15 May, 2015
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
Table of Contents Page
SUMMARY .................................................................................................................................8
1 INTRODUCTION ....................................................................................................................... 20
1.1 TERMS OF REFERENCE AND SCOPE OF WORK.......................................................................................................20
1.2 SOURCES OF INFORMATION..............................................................................................................................23
1.3 UNITS AND CURRENCY ....................................................................................................................................23
1.4 FIELD INVOLVEMENT OF QUALIFIED PERSONS ......................................................................................................23
1.5 USE OF DATA ................................................................................................................................................24
2 RELIANCE ON OTHER EXPERTS ................................................................................................. 25
2.1 LEGAL OPINION .............................................................................................................................................25
2.2 SURVEY........................................................................................................................................................25
2.3 DIAMOND VALUATION ....................................................................................................................................26
2.4 METALLURGY ................................................................................................................................................26
3 PROPERTY DESCRIPTION AND LOCATION ................................................................................. 27
3.1 PROPERTY DESCRIPTION AND LOCATION..............................................................................................................27
3.2 PERMITS CONTRACTS AND AGREEMENTS.............................................................................................................29
3.2.1 Surface ownership / land use rights......................................................................................................30
3.2.2 Mineral rights (Mining/Prospecting Rights, permits, etc.)....................................................................30
3.2.2.1 Royalty Payments..........................................................................................................................................32
3.3 BEE COMPLIANCE..........................................................................................................................................32
3.4 ENVIRONMENTAL...........................................................................................................................................32
3.4.1 Rehabilitation........................................................................................................................................33
3.4.2 Water Permits.......................................................................................................................................33
3.5 SOCIAL RESPONSIBILITY ...................................................................................................................................33
3.5.1 Social and Labour Plans ........................................................................................................................34
3.6 ASSOCIATED RISKS..........................................................................................................................................34
4 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY.............. 35
4.1 TOPOGRAPHY, ELEVATION AND VEGETATION........................................................................................................35
4.2 ACCESS ........................................................................................................................................................37
4.3 PROXIMITY TO POPULATION CENTRES AND NATURE OF TRANSPORT ..........................................................................37
4.4 CLIMATE.......................................................................................................................................................37
4.5 INFRASTRUCTURE ...........................................................................................................................................38
5 HISTORY.................................................................................................................................. 39
5.1 PREVIOUS OWNERSHIP....................................................................................................................................40
5.2 PREVIOUS EXPLORATION/DEVELOPMENT............................................................................................................40
5.2.1 Historic..................................................................................................................................................40
5.2.2 TransHex/THO (2000 – 2007) ...............................................................................................................41
5.2.2.1 Saxendrift Mine properties...........................................................................................................................41
5.2.2.2 Brakfontein Ptn 1 ..........................................................................................................................................43
5.2.2.3 Kwartelspan Prospect ...................................................................................................................................43
6 GEOLOGICAL SETTING AND MINERALISATION .......................................................................... 45
6.1 GEOLOGY .....................................................................................................................................................45
6.1.1 Regional Geology..................................................................................................................................45
6.1.2 Local Geology........................................................................................................................................46
6.1.3 Property Geology ..................................................................................................................................48
6.1.3.1 Brakfontein Hill Complex (BHC) ....................................................................................................................49
6.1.3.2 Saxendrift Hill Complex (SHC) .......................................................................................................................52
6.1.3.3 Saxendrift River Complex (SRC).....................................................................................................................54
6.1.3.4 Kwartelspan (“KPC”) .....................................................................................................................................57
6.2 MINERALISATION ...........................................................................................................................................59
Explorations Unlimited Page 2
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
6.2.1 Nature of Mineralisation.......................................................................................................................59
6.2.2 Fluvial Model.........................................................................................................................................63
6.2.3 Geological Controls...............................................................................................................................64
6.2.4 Mineralisation on the Saxendrift properties .........................................................................................67
7 DEPOSIT TYPES........................................................................................................................ 68
7.1 PRIMARY FLUVIAL-ALLUVIAL GRAVEL DEPOSITS....................................................................................................68
7.2 DEFLATION OR ‘ROOIKOPPIE’ DEPOSITS..............................................................................................................69
7.2.1 Eluvial Rooikoppie Gravel .....................................................................................................................69
7.2.2 Colluvial Rooikoppie Gravel ..................................................................................................................71
8 EXPLORATION ......................................................................................................................... 73
8.1 SATELLITE IMAGERY ........................................................................................................................................73
8.2 GEOPHYSICS..................................................................................................................................................73
8.2.1 Magnetic Profiling ................................................................................................................................74
8.2.2 Resistivity Survey...................................................................................................................................75
8.2.2.1 Results...........................................................................................................................................................75
8.3 STRUCTURAL STUDIES .....................................................................................................................................76
8.4 BULK-SAMPLING............................................................................................................................................77
8.4.1 Brakfontein Hill Complex (“BHC”) .........................................................................................................77
8.4.1.1 Location ........................................................................................................................................................77
8.4.1.1 Mining/Excavation Methodology..................................................................................................................77
8.4.1.2 Sample Processing ........................................................................................................................................79
8.4.1.3 Results...........................................................................................................................................................80
8.4.2 Saxendrift River Complex (“SRC”) .........................................................................................................81
8.4.2.1 Location ........................................................................................................................................................81
8.4.2.2 Mining/Excavation Methodology..................................................................................................................81
8.4.2.3 Sample processing ........................................................................................................................................82
8.4.2.4 Results...........................................................................................................................................................82
8.4.3 Saxendrift Hill Complex (“SHC”)............................................................................................................85
8.4.3.1 Location ........................................................................................................................................................86
8.4.3.2 Mining/Excavation Methodology..................................................................................................................86
8.4.3.3 Screening ......................................................................................................................................................86
8.4.3.4 Sample processing ........................................................................................................................................87
8.4.3.5 Results...........................................................................................................................................................91
8.4.4 Kwartelspan (“KPC”) .............................................................................................................................95
8.4.4.1 Location ........................................................................................................................................................95
8.4.4.2 Mining...........................................................................................................................................................95
8.4.4.3 Processing .....................................................................................................................................................97
8.4.4.4 Results...........................................................................................................................................................99
8.4.5 Other Terraces ....................................................................................................................................101
8.4.6 QA/QC.................................................................................................................................................101
8.4.7 Representivity .....................................................................................................................................102
9 DRILLING............................................................................................................................... 103
9.1 SAXENDRIFT MINE PROPERTIES .......................................................................................................................103
9.1.1 Saxendrift River Complex ....................................................................................................................105
9.1.2 Brakfontein Hill Complex.....................................................................................................................106
9.1.3 Saxendrift Hill Complex.......................................................................................................................107
9.1.3.1 SHC Terrace C (“Ankerpaal”).......................................................................................................................107
9.1.4 Kwartelspan Prospect .........................................................................................................................108
9.2 GRAVEL THICKNESSES ...................................................................................................................................108
9.3 REPRESENTATIVENESS ...................................................................................................................................110
10 SAMPLE PREPARATION, ANALYSIS AND SECURITY .................................................................. 111
10.1 SAMPLING ISSUES.........................................................................................................................................111
10.1.1 Sample Security ..............................................................................................................................112
10.2 SAMPLE REPRESENTATIVENESS........................................................................................................................113
Explorations Unlimited Page 3
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
11 DATA VERIFICATION .............................................................................................................. 114
12 MINERAL PROCESSING AND METALLURGICAL TESTING........................................................... 117
12.1 BRAKFONTEIN HILL COMPLEX (“BHC”):...........................................................................................................117
12.1.1 Grades ............................................................................................................................................117
12.1.2 Values.............................................................................................................................................121
12.1.3 Diamond Size Distribution ..............................................................................................................122
12.2 REPRESENTIVITY...........................................................................................................................................124
12.3 METALLURGICAL TESTING..............................................................................................................................124
13 MINERAL RESOURCE ESTIMATES............................................................................................ 126
13.1 MINERAL RESOURCE ESTIMATION ...................................................................................................................126
13.1.1 Previous Resource Estimates ..........................................................................................................127
13.1.1.1 Venmyn (2007)............................................................................................................................................127
13.1.1.2 Explorations Unlimited (2008) ....................................................................................................................128
13.1.1.3 Explorations Unlimited (2010) ....................................................................................................................129
13.1.1.4 Explorations Unlimited (2012) ....................................................................................................................130
13.1.1.5 Explorations Unlimited (2013) ....................................................................................................................131
13.1.1.6 Explorations Unlimited (2014) ....................................................................................................................132
13.1.2 Current Resource Estimates............................................................................................................133
13.1.2.1 Inferred Resource .......................................................................................................................................133
13.1.2.2 Indicated Resource .....................................................................................................................................133
13.1.2.3 Measured Resource ....................................................................................................................................133
13.2 KEY PARAMETERS.........................................................................................................................................134
13.2.1 Volume ...........................................................................................................................................135
13.2.1.1 Specific Density...........................................................................................................................................135
13.2.2 Diamond Grade ..............................................................................................................................135
13.2.2.1 Cut-off Grades.............................................................................................................................................136
13.2.3 Diamond Size Frequency Distribution (“SFD”) ................................................................................136
13.2.3.1 Occurrence of Large Stones ........................................................................................................................138
13.2.4 Cut-off Screen Sizes.........................................................................................................................141
13.2.5 Diamond Value...............................................................................................................................142
13.2.6 Mineral Resource Estimation..........................................................................................................143
13.2.7 Resource Reconciliation..................................................................................................................147
13.3 PROSPECTING AND MINING RISKS....................................................................................................................147
13.3.1.1 In South Africa.............................................................................................................................................150
14 MINERAL RESERVE ESTIMATE................................................................................................. 152
14.1 PREVIOUS MINERAL RESERVE ESTIMATES .........................................................................................................153
14.2 CURRENT MINERAL RESERVE ESTIMATE............................................................................................................154
14.2.1 Key Assumptions.............................................................................................................................154
14.2.2 Mineral Reserve statement ............................................................................................................155
14.2.3 Mining Specific Risks.......................................................................................................................156
15 MINING METHODS ................................................................................................................ 158
15.1 EXCAVATION ...............................................................................................................................................158
15.2 SCREENING .................................................................................................................................................159
15.3 REHABILITATION ..........................................................................................................................................159
15.4 MINE PLAN.................................................................................................................................................160
15.4.1 Pit Design........................................................................................................................................161
15.4.2 Geotechnical Considerations ..........................................................................................................162
15.4.3 Mining rates and expected life-of-mine .........................................................................................163
15.4.4 Mining dilution factors ...................................................................................................................163
15.4.5 Strip Ratios .....................................................................................................................................164
15.5 EARTHMOVING FLEET....................................................................................................................................165
15.5.1 Fleet Maintenance..........................................................................................................................166
16 RECOVERY METHODS............................................................................................................. 167
Explorations Unlimited Page 4
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
16.1 CONCENTRATION/PROCESS PLANT...................................................................................................................167
16.1.1 Rotary Pan Plant.............................................................................................................................167
16.2 FINAL RECOVERY ..........................................................................................................................................168
16.3 QA/QC .....................................................................................................................................................169
16.3.1 Pan Tracer/bort Tests.....................................................................................................................169
17 PROJECT INFRASTRUCTURE.................................................................................................... 170
17.1 POWER ......................................................................................................................................................170
17.2 WATER ......................................................................................................................................................171
17.3 COMMUNICATION........................................................................................................................................171
17.4 TRANSPORTATION ........................................................................................................................................172
17.5 WASTE DISPOSAL.........................................................................................................................................172
17.6 COARSE DUMPS ...........................................................................................................................................172
17.7 TAILINGS DISPOSAL.......................................................................................................................................172
17.8 FUEL STORAGE AND SUPPLY............................................................................................................................173
17.9 STAFF/LABOUR............................................................................................................................................173
17.10 ACCOMMODATION AND OFFICES.................................................................................................................175
17.11 SECURITY ...............................................................................................................................................175
17.12 ESSENTIAL SERVICES .................................................................................................................................176
18 MARKET STUDIES AND CONTRACTS ....................................................................................... 177
18.1 MARKET STUDIES.........................................................................................................................................177
18.1.1 The Diamond Pipeline.....................................................................................................................177
18.1.2 The impact of synthetics and recycling on the diamond market....................................................177
18.1.3 Global diamond production............................................................................................................179
18.1.4 International Diamond Market Trends...........................................................................................180
18.2 ROCKWELL SALES AND CONTRACTS..................................................................................................................183
18.2.1 Flawless Diamond Trading House...................................................................................................183
18.2.2 Diacore ...........................................................................................................................................184
19 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL/COMMUNITY IMPACT......................... 186
19.1 ENVIRONMENTAL.........................................................................................................................................186
19.2 MINE CLOSURE............................................................................................................................................187
19.3 SOCIAL RESPONSIBILITY .................................................................................................................................188
19.3.1 Social and Labour Plan (SLP)...........................................................................................................188
20 CAPITAL AND OPERATING COSTS ........................................................................................... 191
20.1 CAPITAL COSTS............................................................................................................................................191
20.2 OPERATING COSTS .......................................................................................................................................191
21 ECONOMIC ANALYSIS ............................................................................................................ 193
22 ADJACENT PROPERTIES.......................................................................................................... 194
22.1 KWARTELSPAN PROSPECT ..............................................................................................................................195
22.2 BO-KAROO .................................................................................................................................................195
23 OTHER RELEVANT DATA AND INFORMATION ......................................................................... 197
23.1 EXPLORATION TARGETS.................................................................................................................................197
23.2 COUNTRY PROFILE........................................................................................................................................198
23.2.1 South African Economy...................................................................................................................198
23.2.2 The Mining Industry........................................................................................................................199
23.2.3 South Africa’s Mineral Legislative Environment.............................................................................200
23.2.3.1 Mineral Policy .............................................................................................................................................200
23.2.3.2 Mineral and Petroleum Resource Development Act 28 of 2002 (“MPRDA”)..............................................201
23.2.3.3 Broad Based Black Economic Empowerment (BBBEE) and the Mining Charter..........................................201
23.2.3.4 The Minerals and Petroleum Resources Royalty Bill...................................................................................203
23.2.3.5 The Diamond Amendment Bill....................................................................................................................203
Explorations Unlimited Page 5
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
23.2.3.6 Diamond Export Levy Bill 2007 ...................................................................................................................204
23.2.3.7 Precious Metals Bill and the Beneficiation Strategy ...................................................................................204
23.2.3.8 Kimberley Process.......................................................................................................................................205
24 INTERPRETATION AND CONCLUSIONS.................................................................................... 207
25 RECOMMENDATIONS ............................................................................................................ 213
25.1 PROPOSED WORK PROGRAMME .....................................................................................................................213
25.2 PROPOSED BUDGET......................................................................................................................................214
26 REFERENCES .......................................................................................................................... 215
27 DATE AND SIGNATURE PAGE.................................................................................................. 222
28 CERTIFICATE OF AUTHORS ..................................................................................................... 223
28.1 TANIA RUTH MARSHALL................................................................................................................................223
28.2 GLENN ALAN NORTON..................................................................................................................................225
Figures
Figure 1.1 Location of Rockwell owned operations in South Africa.................................................... 21
Figure 1.2 Corporate shareholdings of Rockwell (2015) ..................................................................... 22
Figure 3.1 Location of the Saxendrift project in the Northern Cape Province (the box is the area shown
in Fig. 3.2)............................................................................................................................ 27
Figure 3.2 Location of the Saxendrift Project Properties .................................................................... 28
Figure 4.1 Average climatic conditions at Kimberley, (www.kimberley.climatemps.com)................. 38
Figure 5.1 Historical diamond production from the middle Orange River (redrawn from Telfer et al,
2006)................................................................................................................................... 39
Figure 6.1 The General Geology of South Africa (Council for Geosciences)........................................ 45
Figure 6.2 General geology of the middle Orange River) .................................................................... 47
Figure 6.3 Location of known terraces within the area...................................................................... 48
Figure 6.4 Geological model of the southern portion of the C terrace on BHC (M Malowa).............. 51
Figure 6.5 Geological Model for SHC (P Mohale)................................................................................. 53
Figure 6.6 Geological model for SRC (M Malowa) ............................................................................... 56
Figure 6.7 Section A – B as defined on Fig. 6.5 (M Malowa)................................................................ 57
Figure 6.8 Geological map of the Kwartelspan Terrace Complex (“KPC”) (R Horn) ............................ 59
Figure 6.9 Palaeodrainage interpretation of identified terraces on the Saxendrift project ............... 60
Figure 6.10 Schematic view of coarser gravel channel bars in a braided river system ........................ 63
Figure 6.11 Fixed and mobile trapsites and their depositional environments (redrawn after Jacob,
2005)…….............................................................................................................................. 65
Figure 7.1 Formation of eluvial gravels (Marshall, 2004) .................................................................... 69
Figure 7.2 Formation of Eluvial Gravels (Marshall, 2004).................................................................... 70
Figure 7.3 Formation of colluvial gravels (Marshall, 2004).................................................................. 71
Figure 8.1 Satellite snapshot, indicating the prevalence of centre-pivot irrigation schemes that limit
the use of satellite images, aerial photographs and geophysical techniques as primary
exploration methods (Source; Google Earth) ..................................................................... 73
Figure 8.2 Airborne Magnetic Survey over Saxendrift Mine (Telfer, Stacey, Ecklund, & Bloomer,
2006)…. ............................................................................................................................... 74
Figure 8.3 Resistivity profile of a test-line on SRC............................................................................... 75
Figure 8.4 Map of southern Africa indicating the position of the Proterozoic orogenic belts. )........ 76
Figure 8.5 Location of bulk-sampling activities on the Brakfontein Hill Complex (2008).................... 78
Figure 8.6 Location of 2012-2014 bulk-sampling on SRC .................................................................... 81
Figure 8.7 Grade Size plot for SRC compared with BHC data showing distribution of carats. T ........ 84
Explorations Unlimited Page 6
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
Figure 8.8 Diamond Size Frequency Distribution for SRC compared with other terraces .................. 85
Figure 8.9 Location of sampling on SHC B2 terrace (2013) ................................................................. 86
Figure 8.10 Schematic of a Bourevestnik Bulk X-Ray Sorter.................................................................. 88
Figure 8.11 FC (fast component) and SC (slow component) of a type I diamond during X-ray pulses . 89
Figure 8.12 Diamond Size Frequency Distribution for SHC compared with BHC .................................. 93
Figure 8.13 Grade Size plot for SRC compared with BHC data showing distribution of carats. The Y-axis
is a measure of the stone density, calculated on a log interval (above) and a log-log scale
(below)................................................................................................................................ 94
Figure 8.14 Location of bulk-sampling on Kwartelspan during 2014 .................................................... 95
Figure 8.15 Basic illustration of the Colour/NIR sorting principle......................................................... 98
Figure 8.16 SFD of Kwartelspan Rooikoppie (RK) diamonds compared with data from other Saxendrift
operations......................................................................................................................... 100
Figure 8.17 Grade stone plot of the Kwartelspan diamonds compared with data from other Saxendrift
operations......................................................................................................................... 101
Figure 8.18 Example of tracer testing of the pan efficiencies ............................................................. 102
Figure 9.1 Drill localities on Saxendrift Mine (all drilling by both TransHex and Rockwell) .............. 103
Figure 9.2 Location of the completed Rockwell drilling on the Saxendrift River Complex ............... 105
Figure 9.3: Section A – B as defined on Fig. 9.2 (M Malowa). Note that the vertical exaggeration on this
section is 20:1 ................................................................................................................... 106
Figure 9.4 Section A – B through the drilling (ref Fig. 9.5 for location) ............................................. 106
Figure 9.5 Location of Rockwell drilling on the southern toe of BHC. (A and B is the section line
represented in Fig. 9.4) ..................................................................................................... 107
Figure 9.6 SHC Geological Interpretation .......................................................................................... 108
Figure 9.7 Drilling localities on Kwartelspan, (all drilling by both TransHex and Rockwell)............... 109
Figure 9.8 Bedrock profile as determined from the Kwartelspan drilling/pitting programme......... 109
Figure 10.1 Schematic distribution of alluvial diamonds within an alluvial deposit – random distribution
of clusters of points (Rombouts, 1987). ........................................................................... 112
Figure 11.1 Example of carat and volume reconciliation .................................................................... 115
Figure 11.2 Example of weekly grade and pan throughput reconciliation.......................................... 116
Figure 12.1 Location of mining activities on BHC during 2009/2014 .................................................. 118
Figure 12.2 Grade Size plot for SRC compared with BHC data showing distribution of carats. The Y-axis
is a measure of the average stone size per volume, per size interval, calculated on a log
interval (above) and a log-log scale (below)..................................................................... 122
Figure 12.3 Size Frequency Distribution (SFD) for BHC diamonds for 2014 compared with the total BHC
population......................................................................................................................... 123
Figure 13.1 The extremely low concentrations of diamonds, combined with low homogeneity results
insignificant difficulties in the evaluation of alluvial diamond deposits (after Lock,
2003)………......................................................................................................................... 134
Figure 13.2 SFD of the Orange and Vaal River alluvial diamond populations, in comparison with
BHC…….............................................................................................................................. 137
Figure 13.3 Comparison of average diamond sizes from the Orange and Vaal Rivers and BHC......... 138
Figure 13.4 Size Frequency Distribution (SFD) for diamonds from the different terrace complexes on
Saxendrift mine................................................................................................................. 139
Figure 13.5 Grade Size plot for all of the Saxendrift terraces data showing distribution of carats. The Y-
axis is a measure of the average stone size per volume, per size interval, calculated on a
log-log scale ...................................................................................................................... 140
Figure 13.6 Number of large diamonds calculated to occur in MOR deposits.................................... 140
Figure 13.7 Location of estimated Mineral Resources on Saxendrift Mine (as at 28 February 2015).
Details of each terrace complex are shown individually below. ...................................... 144
Figure 14.1 Relationships between Mineral Resources and Mineral Reserves (SAMREC, 2009)........ 152
Figure 14.2 Probable Reserves on Saxendrift (BHC only).................................................................... 156
Explorations Unlimited Page 7
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
Figure 15.1 Mining plan for BHC/SRC, FY2016 .................................................................................... 161
Figure 15.2 Overburden thickness across the proposed mining blocks.............................................. 164
Figure 16.1 Block flow diagram of the processing plant on Saxendrift Mine (used for both commercial
production of current Reserves on BHC as well as the continued bulk-sampling on SRC/SHC
during FY2016).................................................................................................................. 168
Figure 17.1 Water balance for Saxendrift Mine .................................................................................. 171
Figure 18.1 The Diamond Pipeline....................................................................................................... 177
Figure 18.2 This photograph shows eight of the 52 faceted HPHT synthetic diamonds produced by AOTC
Group, ranging from 0.05 to 0.57ct. Of the total suite of samples examined, 40 were graded
as colourless to near-colourless, a remarkably good colour range for HPHT synthetic
diamonds, which are commonly produced in fancy colours. (Photo by Josh Balduf) (Ulrika,
et al., 2014) ....................................................................................................................... 178
Figure 18.3 Projections indicate that demand for diamonds will outpace supply (Bain & Company,
2014)................................................................................................................................. 181
Figure 18.4 Rough diamond demand is expected to be fuelled by markets in the US, China and India
(Bain & Company, 2014) ................................................................................................... 182
Figure 22.1 Numerous properties around Saxendrift Mine have been prospected for diamonds..... 194
Figure 23.1 Areas of Exploration Targets on the Saxendrift properties.............................................. 198
Figure 25.1 Areas to be bulk-sampled/trial-mined during FY2016. .................................................... 213
Tables
Table 3.1 UTM Co-ordinates of the Saxendrift project properties.................................................. 29
Table 3.2 Summary of the Saxendrift project landholdings, described in this report.................... 31
Table 5.1 Historical bulk-sampling results from Saxendrift (Telfer et al., 2006) ............................. 40
Table 5.2 Bulk sample results (Telfer et al., 2006)........................................................................... 42
Table 8.1: Average recoveries from May 2008 to February 2009 (BHC A Terrace).......................... 80
Table 8.2 Production statistics for the 2012/2014 bulk-sampling programme on SRC .................. 82
Table 8.3 Sales values for diamonds from SRC (2012/2014)........................................................... 83
Table 8.4 Bourevestnik throughput per size range......................................................................... 90
Table 8.5 Bourevestnik throughput per size range – re-concentration........................................... 90
Table 8.6 Production statistics for the 2013-2014 bulk-sampling programme on SHC................... 91
Table 8.7 Sales values for diamonds from SHC (2013/2014)........................................................... 92
Table 8.8 Bulk sampling results from Kwartelspan (2014) .............................................................. 99
Table 12.1 Production results for the period 2009/2014................................................................ 119
Table 12.2 Diamond sales from BHC for the period 2009 -February 2014...................................... 121
Table 12.3 Individual high value stones (BHC)................................................................................. 121
Table 13.1 Mineral Resources (Telfer & Stacey, 2007).................................................................... 128
Table 13.2 Resource estimates on Saxendrift as at 28 February 2009............................................ 129
Table 13.3 Resource Statement for Saxendrift at 30 November, 2010........................................... 129
Table 13.4 Estimated resources on Saxendrift Mine (as at 29 February 2012)............................... 130
Table 13.5 Estimated Mineral Resources on Saxendrift mine (as at 28 February 2013)................. 131
Table 13.6 Estimated Mineral Resources on Saxendrift Mine (as at 28 February 2014) ................ 132
Table 13.7 Relationship between average USD/ct value and bottom cut-off size (“bcos”)............ 141
Table 13.8 Estimated Mineral Resources on Saxendrift Mine (as at 28 February 2015) ................ 147
Table 14.1 Mineral Reserves estimated for the Saxendrift Mine as at 30 November 2010............ 153
Table 14.2 Mineral Reserves estimated for the Saxendrift Mine (as at 29 February, 2012)........... 153
Table 14.3 Probable Mineral Reserves estimated for the Saxendrift Mine (as at 28 February, 2013)
........................................................................................................................................ 153
Table 14.4 Probable Mineral Reserves estimated for the Saxendrift Mine (as at 28 February, 2014)
........................................................................................................................................ 154
Explorations Unlimited Page 8
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
Table 14.5 Probable Mineral Reserves estimated for the Saxendrift Mine (as at 28 February, 2015)
........................................................................................................................................ 155
Table 15.1 Proposed mining schedule for FY2016........................................................................... 160
Table 15.2 Proposed mining blocks and associated strip ratios...................................................... 165
Table 15.3 List of current EMV fleet on Saxendrift ......................................................................... 165
Table 20.1 Summary of FY2016 budgeted monthly operating costs (ZAR)..................................... 191
Table 23.1 Economic indicators for South Africa (March, 2015)..................................................... 199
Plates
Plate 4.1 Landscape typical of the Middle Orange River (“MOR”) properties .................................. 35
Plate 4.2 Grasses, trees and shrubs common to the Nama-Karoo biome ………………………………………36
Plate 6.1 Dwyka tillite bedrock on which the alluvial gravels are developed.................................... 47
Plate 6.2 Basal gravel remnant of A1 terrace deposits on Saxendrift (Photo courtesy of Rockwell) 49
Plate 6.3 Typical profile of the B1 gravel on BHC .............................................................................. 50
Plate 6.4 Typical gravel profile on SHC .............................................................................................. 52
Plate 6.5 Basal gravels on the C3 terrace on Saxendrift River Complex............................................ 54
Plate 6.6 Dolerite dyke intruded perpendicular to strike of terrace D3 on SRC and the gravels
developed on the upstream side........................................................................................ 55
Plate 6.7 Rooikoppie gravel as exposed in one of the sample trenches on Kwartelspan, overlying
calcreted basal fluvial-alluvial gravels ................................................................................ 58
Plate 6.8 Makondo development in the calcrete beneath the Rooikoppie gravels.......................... 58
Plate 6.9 Reverse fault developed on the SHC on Saxendrift Mine (Photo courtesy P Mohale) ...... 65
Plate 6.10 Local structures and regional bedrock fabric contributes to diamond concentration within
the Middle Orange River gravels ........................................................................................ 66
Plate 7.1 Typical stratigraphy of the Middle Orange River alluvial diamond deposits with a lower
fluvial-alluvial unit and an overlying deflation or Rooikoppie gravel (Saxendrift Mine).... 68
Plate 7.2 Calcrete makondos infilled with gravel concentrate (seen in profile (above) and at the
surface (right)). ................................................................................................................... 70
Plate 7.3 Significant thicknesses of colluvial gravels can accumulate downslope from the original
fluvial deposit ……………………………………………………………..…………………………….…………………72
Plate 8.1 Chunks of calcreted gravels that might lock up unknown quantities of diamonds ........... 79
Plate 8.2 Screening plant on SHC....................................................................................................... 87
Plate 8.3 The LS-20-09 BV plant, of which there are currently two on SHC, one processes the fine and
the other processes the coarse gravel stream ................................................................... 90
Plate 8.4 Glove box in which all the BV concentrate is hand-sorted................................................. 91
Plate 8.5 Small Volvo excavator cleaning out the calcrete makondos.............................................. 96
Plate 8.6 In-pit screening plant.......................................................................................................... 96
Plate 8.7 Sand removed from the screening plant is used in the rehabilitation of the sample pits . 97
Plate 8.8 Photograph of the TOMRA sensor-based sorter of the variety installed at Kwartelspan.. 98
Plate 9.1 RC drilling on Saxendrift River Complex during 2013....................................................... 104
Plate 15.1 Nd-Bo-Ferrite magnets removing BIF from the gravels at the IFS plant on BHC.............. 159
Plate 16.1 Secure hand-sort (glove box and drop box) facility at the BHC final recovery plant ....... 169
Plate 17.1: Mine residue dam on Saxendrift Mine (Courtesy of Rockwell)........................................ 173
Plate 18.1 A 169ct stone from SHC that was cut into the 109ct vivid yellow “Alana” by Diacore to
increase the sales value by some 160% (courtesy Rockwell)............................................ 185
Plate 22.1 Fluvial-alluvial gravels as mined by Schalk Steyn on an adjacent portion of Kwartelspan195
Plate 22.2 B terrace gravels on Bo-Karoo mine................................................................................. 196
Explorations Unlimited Page 9
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
Units and Abbreviations
ABBREVIATION DESCRIPTION
amsl Above mean sea level
BBBEE
Broad Based Black Economic Empowerment (the more correct term of the usually
shortened BEE (Black Economic Empowerment)) and used in this report
Bottom cut-off
(“bcos”)
Bottom cut-off refers to the smallest size diamond (in mm) that is recovered in the
sampling and mining process
Cdn$ Canadian Dollar
CIM Canadian Institute of Mining Metallurgy and Petroleum
CP Competent Person, as defined by SAMREC
cpht Carats per 100 Tonnes
ct Carat(s)
ct/100m3
Carats per 100 cubic metres
ct/st Carats per Stone
DMR
Department of Mineral Resources (Previously known as Department of Minerals and
Energy (“DME”))
DMS Dense Media Separation plant
DTM Digital Terrain Model
DWS
Department of Water and Sanitation (previously Department of Water and Forestry
“DWAF”)
EMPlan Environmental Management Plan (as required for a prospecting right)
EMPR Environment Management Programme (as required for a mining right)
ESKOM Electricity Supply Commission
farm Surveyed area in South Africa, to which certain mineral rights can be held
GSSA Geological Society of South Africa
JSE Johannesburg Stock Exchange
m Metres
M Million
Ma Millions of Years before Present
MPRDA Mineral and Petroleum Resource Development Act (act 28 of 2002)
NAPEGG
The Association of Professional Engineers, Geologists and Geophysicists of the
Northwest Territories
NI 43-101 National Instrument 43-101
Pr. Sci. Nat. Professional Natural Scientist
QP Qualified Person, as defined by National Instrument 43-101
SACNASP South African Council for Natural Scientific Professions
Explorations Unlimited Page 10
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
SAIMM South African Institute for Mining and Metallurgy
SAMREC South African Code for Reporting of Mineral Resources and Mineral Reserves
SARS South African Revenue Service
SG Specific Gravity
SLP Social & Labour Plan (as required for a mining right)
tph Tonnes (metric) per hour
TSX Toronto Stock Exchange
USD United States Dollar
ZAR South African Rand
Explorations Unlimited Page 11
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
Summary
Background
Explorations Unlimited (“EU”) was retained by Rockwell Diamonds Inc. (“Rockwell” or “the Company”) to
prepare a Technical Report for the Saxendrift Alluvial Diamond Project (“Saxendrift Project” or “the
Property”) in the Hay District of the Northern Province, South Africa. The Saxendrift Project comprises
portions of the farms Saxendrift, Brakfontein, Kransfontein and Kwartelspan. This Technical Report
comprises background information and drill and sample data that includes bulk-sampling information as
well as the results of trial-mining and production mining from the property up to 28 February 2015. It has
been prepared to document the results of exploration and other technical studies and the Mineral
Resource/Mineral Reserve estimate on the properties as summarized in the Company’s Annual
Information Form for the 2016 fiscal year.
The conclusions expressed in this independent Technical Report are appropriate as at 28 February, 2015.
The assessment is, therefore, only valid for this date and will change with time in response to ongoing
exploration and production results as well as with variations in economic, market, legal or political factors.
Rockwell is a company involved in the exploration and mining of alluvial diamond deposits.
• In South Africa, Rockwell and its wholly-owned subsidiary Rockwell Resources RSA (Pty) Ltd
(“Rockwell RSA”) owns 74% of Saxendrift Mine (Pty) Ltd, the vehicle which holds the Saxendrift,
Niewejaarskraal and Zwemkuil projects;
o Rockwell RSA operates Saxendrift Mine (including the Brakfontein Hill Complex and the
Saxendrift Hill Complex) and the Niewejaarskraal Project;
• Through a Transaction and Shareholders agreement with Gump Mining cc, Rockwell RSA incorporated
a new company called Gumrock Mining (Pty) Ltd (“Gumrock”) to carry out prospecting and mining
activities on the Kwartelspan Complex project. Both Gump Mining cc and Rockwell RSA own 50% of
the issued shares, with shareholding to be diluted according to funding requirements and abilities;
• Rockwell RSA owns (through the acquisition of Jasper Mines (Pty) Ltd) and operates the Brakfontein
(Saxendrift River Complex) portion of the Saxendrift mining project;
• Rockwell and Rockwell RSA also own (and Rockwell RSA operates) the Wouterspan Project on the
Middle Orange River through a 74% shareholding in HC Van Wyk Diamonds Limited (“HCVWD”);
• Through an acquisition of Bondeo 144 cc, Rockwell RSA will own and operate1
the Remhoogte and
Reads Drift projects.
Rockwell's 26% BEE partner of choice in these projects is Siyancuma Capital (Pty) Ltd (“Siyancuma”).
The Saxendrift property is located on the south bank of the Orange River in the Herbert district of the
Northern Cape Province, some 50km southwest of Douglas and some 160km from Kimberley. The
Kwartelspan and Kransfontein properties are located to the east of Saxendrift. The following permits are
valid for the project:
Saxendrift Mine Kwartelspan Prospect
∗ Saxendrift 20 (Ptn 12, 13, 16, 20,
Re/Farm, and Re/Ptn)
∗ Kransfontein 19 (Ptn (Ptn1))
∗ Kwartelspan 25 (Re/Ptn)
1
See Press Release of March 2 and March 9, 2015 for details of this acquisition
Explorations Unlimited Page 12
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
∗ Annex Saxesdrift 21 (Re/Ptn and
PaardePan Ptn(Ptn 1)
∗ Brakfontein 276 (Ptn 1)
Geology
The present Orange River between Douglas and Prieska is generally referred to as the Middle Orange
River (“MOR”). It displays a meandering channel morphology, which is best developed in areas underlain
by the Dwyka Group. Palaeochannel depositional packages (“terraces”) of the Orange River are preserved
at different elevations above the present Orange River bed. The ages of the terraces young with
decreasing elevation and, conversely, the probability of preservation decreases with increasing age and
elevation. The Saxendrift deposit comprises an extensive flat lying alluvial sequence located on terraces
developed on the left bank of the present Orange River, approximately 20-70m above the Orange River.
The bedrock is well exposed in the workings: shale and tillite of the Karoo age Dwyka Group are common.
The fluvial-alluvial gravels comprise a sequence of (basal) gravels, 2-4m thick and overlain by a generally
less than 5m thick unit of variably calcreted sands and silts, covered by a thin layer of soil and scree. The
cobble-sized clasts within the gravels consist mostly of lava and quartzite with significant, if variable,
amounts of Banded Iron Formation (BIF) and minor amounts of limestone, tillite, and agate. The matrix
is sandy to gritty. As is usual with these types of deposits, the degree of calcretisation decreases
downwards, and is characterized by hardpan or laminar calcrete at the surface to loosely cemented
gravels at depth. The gravels are, generally, not well sorted, and are typical of braid bars that have
migrated through sections of river channels in response to variable water speed.
Bulk Sampling and Trial-Mining
At alluvial deposits, after bulk-sampling is carried out to identify and estimate resource volume, grade
and value, trial-mining is initiated to establish reserves. The latter phase moves seamlessly into
production mining as the economic or “modifying” factors are understood. The methods of mining and
processing used in the bulk-sampling, trial-mining and production mining phases of the operation are
similar, except for the volumes processed. Full production is, typically, initiated once Mineral Reserves
have been identified.
The Saxendrift mine consists of a number of diamond resource areas. A number of different terrace levels
(with associated palaeochannel depositional packages) have been identified on and around the Saxendrift
properties. The terraces that have, historically, been mined on Saxendrift are known locally as terraces
A, B, C and D (see accompanying map). For ease of reference the Saxendrift Mine has been subdivided
into:
• Brakfontein Hill Complex (Terrace A1, B1 and C1);
• Saxendrift Hill Complex (Terrace B2 and C2); and
• Saxendrift River Complex (Terrace C3 and D3).
The terrace complex on Kwartelspan is referred to as KPC – it is not shown on the accompanying map as
it is located further to the east of this view.
After acquiring the property in April 2008, Rockwell commenced evaluation of the gravels in the various
complexes using a phased approach:
• Brakfontein Hill Complex (“BHC”)
o From May 2008 to the end of February 2009 some 2,436.73carats were produced from the
bulk-sampling of 194,287m3
of gravels (average grade of 1.25ct/100m3
).
Explorations Unlimited Page 13
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
o During the period February 2009 and November 2010, Rockwell carried out a trial-mining
programme, excavating 2,398,009m3
of gravel from the BHC through 16’ rotary pan plants.
Some 14,073.49ct were recovered for an average grade of 0.62ct/100m3
. The information
obtained from the trial-mining operation formed the basis for the Pre-Feasibility Study
(“PFS”), on BHC. During the Pre-Feasibility Study, a Probable Reserve of 4,859,900m3
was
identified (24,299.5ct at an average grade of 0.5ct/100m3
and value of USD2,029/ct).
• Saxendrift River Complex (“SRC”)
o In 2012, some 611,260m3
of gravel was processed from SRC to recover 3,696.58cts for an
average sample grade of 0.60ct/100m3
.
o In 2013, an additional 1,101,168m3
of gravel was processed for an average grade of
0.64ct/100m3
. This brings to 1.7M3
of gravel processed from this terrace at an average grade
of 0.63ct/100m3
, which formed the basis for the PFS on SRC. A Probable Reserve of
1,071,400m3
was estimated from this programme.
• Saxendrift Hill Complex (“SHC”)
o During 2013, trial-mining was initiated on the B2 terrace of the, where some 561,600m3
of
gravel was processed to recover 2,555.2cts for an average sample grade of 0.45ct/100m3
.
o During 2014, 446,181m3 was processed at an average grade of 0.37ct/100m3
.
• Kwartelspan Complex (“KPC”)
o During 2014, a total of 80,590m3
of Rooikoppie gravel was processed from bulk-samples to
recover 450.62ct for a sample grade of 0.57ct/100m3
. No fluvial-alluvial gravels have yet been
processed by Rockwell.
D3
Saxendrift Hill Complex
(“SHC”)
Saxendrift River Complex
(“SRC”)
Brakfontein Hill Complex
(“BHC”)
Explorations Unlimited Page 14
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
All of the sampling was done in a similar manner –hydraulic excavators were used to extract material
which was transported to the plant site for processing. Samples from BHC were screened at the plant
site, whereas material from BHC, SHC, SRC and KPC were all screened at or near the pit site, following
which only the feed fraction was transported to the plant.
The BHC material was processed through four rotary pan plants with final recovery through FlowSort X-
Ray machines and hand-sorting in a glove-box in a secure sort-house.
The processing plant on SHC is a Bourevestnik bulk X-Ray plant. These machines have been designed to
make diamond detection precise and efficient, including the detection of very pure (valuable) and
normally non-luminescing type II diamonds. The sorting principles employed in the Bourevestnik units
closely resemble the principles used in other commercial X-ray diamond sorting technology being
marketed. The key differences between these and conventional X-ray diamond sorting technology are:
• X-ray strength employed
• X-ray radiation system (pulsating)
• Detection system (measurement of rise and decay time of the fluorescence of diamonds).
On SHC, gravel from the screening plant and scrubber is split into two fractions – fine (+5-12mm) and
course (+12-36mm). Each stream is fed into separate BV LS-20-09 sorter units and the concentrate from
each stream is hand sorted in a glove box under secure conditions.
The TOMRA diamond recovery plant on KPC is a sensor-based system targeting typical characteristics such
as X-ray luminescence, atomic density and transparency. TOMRA has developed a combined sensor
technique using a high-resolution line-scan camera and a NIR (near infra-red) scanner to provide accurate
detection of the diamond footprint. The XRT sensor detects and distinguishes diamonds on the basis of
X-ray image processing, which correlates to the atomic densities of the particles. Diamonds are composed
of carbon, which has an atomic number of 6. Compared to silicon with an atomic number of 14, diamonds
show up much lighter on an XRT image than silica-based particles. This technology therefore recovers all
types of diamonds, in particular Type II low luminescent and coated diamonds.
Mineral Resource and Mineral Reserve Estimates
The Mineral Resources at 28 February 2015 were estimated by Rockwell’s Group Technical Manager G.
Norton, (Pr. Sci. Nat.), a Qualified Person who is not independent of the Company and reviewed by Dr.
T.R. Marshall, (Pr. Sci. Nat.), a Qualified Person who is independent of the Company and who is
responsible for the estimate. Note that Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
During FY2012, pre-feasibility studies on Saxendrift had shown that a bottom cut-off size (“bcos”) of 5mm
would be more cost-efficient and profitable than the previous bcos of 2mm and, consequently, all trial-
mining and production mining has proceeded at this bcos. During late 2014, metallurgical studies have
investigated the possibility of using 6mm bcos for all operations.
Short term variations in the diamond price have resulted in large variations in diamond values from year
to year. In order to smooth out irregularities in the diamond price, the two-year moving average has been
used, when available.
Explorations Unlimited Page 15
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
Estimated Mineral Resources on Saxendrift Mine (as at 28 February 2015)
Mining
Area
Terrace Complex
Bottom
cut-off
Volume
(m³)
Grade
(ct/100m³)
Value
(USD/ct)
INDICATED RESOURCES
Saxendrift Brakfontein Hill
(“BHC”)
B1 terrace
5mm 3,230,000 0.36 2,800
Saxendrift
Hill Saxendrift Hill (“SHC”)
B2 terrace
5mm 392,400 0.37 2,500
Saxendrift
Extension Saxendrift River (“SRC”)
C3 terrace
5mm 1,529,500 0.54 2,000
Total Indicated Mineral Resource 5,151,900 0.42 2,500
INFERRED RESOURCES
Saxendrift Brakfontein Hill
(“BHC”)
B1 terrace
5mm 379,000 0.4 2,800
Saxendrift
Hill
Saxendrift Hill (“SHC”)
B2 terrace
5mm 820,000 0.4 2,500
Saxendrift
Extension
Saxendrift River (“SRC”)
C3 terrace
5mm 2,034,000 0.5 2,000
Kwartelspan
Rooikoppie
Kwartelspan Complex
(“KPC”)
5mm 301,000 0.6 2,500
Total Inferred Mineral Resource 3,534,000 0.5 2,200
NOTE: the Indicated Mineral Resources on the BHC terrace is inclusive of the Mineral Reserves.
When comparing the current Mineral Resources with those in the previous technical report, it is
important to note:
• The change in the Indicated Resources on the Brakfontein Hill Complex (“BHC”) is a combination of
depletion by mining during 2014 and the continual upgrade of Inferred Resources to Indicated
Resources based, inter alia, on the proximity (within 250m) of this material to an existing mining face.
Consequently, as mining of existing Probable Reserves takes place and confidence in the geological
and mining parameters is upheld (or increases) then surrounding Inferred Resources can be upgraded
to Indicated Resources, assuming that the drilling grid of 100x50m (or closer) supports reasonable
expectations of geological continuity.
o Decreases in the sampling grade have led to the re-evaluation of the reasonable and realistic
prospects for economic extraction and, as a result, it has been decided to include only the
basal gravels in the Mineral Resource estimation; this has resulted in a significant decrease in
the identified volume.
o The estimated grade for the BHC terrace has decreased to 0.36ct/100m3
because the mining
gravels that have been included have a higher sand percentage that those from the previous
Explorations Unlimited Page 16
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
year. The grade was also based on processing of the entire alluvial package; it is anticipated
that the selective trial-mining proposed for FY2016 will result in improved grades.
o During 2013, the average sale price of diamonds produced was USD2,276/ct and the 2014
value is USD 3,079/ct; the two-year trailing average value is USD2,800/ct.
• The change in volume of the Saxendrift Hill Complex (“SHC”) material is due to depletion by sampling
during 2014, combined with the upgrading of some Inferred Resources to Indicated.
o During 2013, the average sales value was USD3,100/ct and the 2014 value is USD1,904/ct;
the two-year trailing average value is USD2,500/ct.
o The recovered grade has decreased to 0.37ct/100m3
.
• The change in the volume of the Kwartelspan terrace complex (“KPC”) is a result of the stripping out
of fluvial-alluvial portion, leaving only Rooikoppie gravels.
o The sample grade for the Rooikoppie gravel has decreased to 0.56ct/100m3
based on the
current bulk-sample data.
o Only some 400ct have been sold from KPC during 2014 (average sales value of USD1,100/ct).
This parcel is not considered representative of the entire expected population, especially
since large stones (+20ct) have not been recovered – this is thought to be an issue associated
with processing problems at the TOMRA plant. Modelled values based on size frequency
distributions indicate that a more realistic value for the entire postulated diamond population
is USD2,500/ct. This value (which also approximates the average value for the entire MOR
population) will be used for KPC at an Inferred Level until further results are obtained.
• The change in volume on the Saxendrift River Complex (”SRC”), is a combination of depletion by
sampling and an increase in Inferred and Indicated Resources as a result of additional drilling and
sampling.
o During 2013, the average sale price was USD2,084/ct and the 2014 value is USD1,726/ct; the
two-year trailing average value is USD2,000/ct.
o Grades have decreased from 0.63ct/100m3
to 0.54ct/100m3
because sandier and finer gravels
have been encountered.
During 2009/2010, a pre-feasibility study was completed on the Indicated Resources at BHC to convert
Indicated Resources to Probable Reserves. A similar exercise took place on SRC during 2012/2013 and
Probable Reserves were also identified, which have been depleted.
The Mineral Reserves 28 February 2015 were estimated by Rockwell’s Group Technical Manager G.
Norton, (Pr. Sci. Nat.), a Qualified Person who is not independent of the Company and reviewed by Dr.
T.R. Marshall, (Pr. Sci. Nat.), a Qualified Person who is independent of the Company and who is
responsible for the estimate.
TERRACE COMPLEX
RESERVE
CLASSIFICATION
VOLUME (M³)
GRADE
(CT/100M³)
CARATS
VALUE
(USD/CT)
Brakfontein Hill
(“BHC”) B1 terrace
Probable 187,300 0.41 761.05 2,700
Probable Reserves (at 5mm bcos) 187,300 0.41 761.05 2,700
Note:
• Only Indicated Mineral Resources located on BHC, which has been the subject of a trial-mining
programme and Pre-Feasibility Study during the most recent fiscal year, have been converted to
Probable Mineral Reserves.
• The gravel volumes used in this study are Run of Mine (ROM). Since the entire gravel unit is mined
and processed, no mining dilution factors are applied.
• Diamond grades are all reported with reference to the mined (or pit) volume and not plant feed.
Explorations Unlimited Page 17
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
• The bottom cut-off (“bcos”) has a more substantial influence on the recovered grades and values.
The bcos for much of 2014 was 5mm. Although the effective bcos going forward will be adjusted
upward to 6mm, experience has shown that a number of -6mm stones will still be recovered;
therefore the average diamond values or grades will not be adjusted.
• Since the average diamond recovery values are based on actual, operational production and sales
values, no additional modifying factors will need to be added to discount diamond recovery.
• The grades/values from the individual resource blocks are modelled from surrounding blocks and
geological investigations of the borehole logs, taking into account overburden stripping as well as any
large units of interburden2
material which will be discarded.
The current mine plan involves continuous mining (24hr per day operations) on the BHC Mineral Reserve
blocks. The preferred method of extracting the alluvial gravels at Saxendrift is strip-mining in a shallow,
opencast operation. The processing plant is comprised of four scrubbers followed by four 18 ft. rotary
pan-plants (with a budgeted plant-throughput of 200,000m3
/month) and final recovery through a bank
of twelve FLOWSORT machines, plus a final hand-sort in a glove-box under secure conditions. Access to
all areas of the final recovery area is controlled and monitored by protection personnel and CCTV. Quality
assurance/quality control (“QA/QC”) is maintained through the use of tracers, pan density tests, pan crash
tests and particle size distribution tests which are regularly carried out by geological department
personnel.
Additional Potential
Diamondiferous gravels are thought to exist on other terrace complexes that have yet to be bulk-sampled
or trial-mined by Rockwell. The activities to test these areas will form part of forthcoming programmes
to support resource/reserve estimations. These activities may take place concurrently, as on an alluvial
diamond project such as Saxendrift, it is common for production mining in one area of the mine property
to take place while with trial-mining and/or bulk-sampling operations is underway in other areas.
Future (FY2015) Programme & Budget
In response to international, macro-economic conditions, Rockwell has developed a corporate strategy
that includes the simultaneous sampling, technical studies and mining on different properties along the
Middle Orange River. During FY2016, Rockwell will include the sampling and technical studies on its
Wouterspan, Remhoogte and Lanyonvale projects at the same time as further work on Saxendrift.
However, both earthmoving equipment and manpower is limited and will need to be shared between the
various on-going operations. As a result, the proposed work programme on Saxendrift will be carried out
over a number of months, and will be prioritized based on positive results from the various projects.
The work expected to be carried out on Saxendrift includes:
• Mining the last of the identified Mineral Reserve from BHC. It is to be noted that additional
Indicated Resources have been identified on this terrace (and SRC), which have not yet been
evaluated as Reserves. Continuous assessment of Rockwell’s overall corporate requirements will
determine when (and if) any of the Indicated Resources will be upgraded to Mineral Reserves and
included in further mining plans.
• Selected areas on SRC will be sampled/trial-mined (including the lowest “D” terrace).
2
Sandy lenses of sufficient size so as to be separated from the gravel as waste material (and not processed along with
the gravel as dilution)
Explorations Unlimited Page 18
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
• Processing of gravels on SHC through the BV plant has not proved to be economic because of the
limited throughput rate and low grades. In order to retain the identified gravels in the Mineral
Resource, Rockwell will investigate whether processing them through the higher capacity rotary
pan plant on BHC will make a difference.
• The Rooikoppie gravels on Kwartelspan will continue to be sampled in order to increase the
confidence in the Mineral Resource. The underlying fluvial-alluvial gravels will also be sampled.
On-going trial-mining costs through the BHC rotary pan plant are some ZAR59.97/m3
. It is important to
note that diamonds are recovered during both bulk-sampling and trial-mining and the sale of diamonds
recovered during these exercises is expected to offset these costs.
The independent QP believes that, notwithstanding the fact that the Mineral Reserves on BHC have been
depleted, the results to date are sufficiently encouraging that the Property warrants further
sampling/trial-mining on SHC, SRC and KPC as EMV and technical personnel are available.
Explorations Unlimited Page 19
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
1 INTRODUCTION
1.1 Terms of Reference and Scope of Work
Explorations Unlimited (“EU”) was retained by Rockwell Diamonds Inc. (“Rockwell” or “the Company”) to
prepare a Technical Report for the Saxendrift Alluvial Diamond Project (“Saxendrift” or “the Property”) in
the Hay District of the Northern Province, South Africa. The Saxendrift Project comprises portions of the
farms Saxendrift, Brakfontein, Kransfontein and Kwartelspan. This Technical Report comprises
background information, drill and sample data, including results from the bulk-sampling programmes,
trial-mining and commercial production derived from the property up to 28 February 2015. It is prepared
in order to document the results of exploration work and the Mineral Resource and Reserve estimates on
the properties as summarized in the Company’s Annual Information Form for the 2016 fiscal year.
A number of documents dealing with the Saxendrift properties have, previously, been filed on
www.sedar.com and submitted to the JSE Limited Stock Exchange:
• “Independent Techno-Economic Valuation Report In The Form of a Competent Persons Report on the
Trans Hex Group Limited’s (“Trans Hex”) Middle Orange River (“Middle Orange”) Operations” (2006)
by C A Telfer, G D Stacey, M C Eklund and A G Bloomer (Venmyn Rand)
• “Independent Techno-Economic Valuation Report In The Form of a Competent Persons Report on the
Trans Hex Group Limited’s (“Trans Hex”) Middle Orange River (“Middle Orange”) Operations”
(updated 2007) by C A Telfer and G D Stacey (Venmyn Rand)
• “Technical Report on the Saxendrift Alluvial Diamond Project, (Saxendrift Mine And Kwartelspan
Prospect), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc.(effective date 31
May, 2008), by T R Marshall (Explorations Unlimited)
• “Technical Report on the Saxendrift Alluvial Diamond Project, (Saxendrift Mine and Kwartelspan
Prospect), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc. (effective date 28
February 2009), by T R Marshall (Explorations Unlimited) and G A Norton (Rockwell Diamonds Inc.).
• “Technical Report on the Saxendrift Alluvial Diamond Project, (Saxendrift Mine and Kwartelspan
Prospect), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc. (updated 22
December 2009), by T R Marshall (Explorations Unlimited) and G A Norton (Rockwell Diamonds Inc.).
• “Technical Report on the Saxendrift Alluvial Diamond Project, (Saxendrift Mine and Kwartelspan
Prospect), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc. (signature date 30
May, 2011 and updated 25 July, 2011), by T R Marshall (Explorations Unlimited) and G A Norton
(Rockwell Diamonds Inc.).
• “Technical Report on the Saxendrift Alluvial Diamond Project, (Saxendrift Mine and Kwartelspan
Prospect), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc. (signature date 23
May, 2012, by T R Marshall (Explorations Unlimited) and G A Norton (Rockwell Diamonds Inc.).
• “Technical Report on the Saxendrift Alluvial Diamond Project, (incorporating the Saxendrift,
Brakfontein, Kwartelspan and Kransfontein properties), Hay District, The Republic of South Africa”,
for Rockwell Diamonds Inc. (effective date 28 February 2013) by T R Marshall (Explorations Unlimited)
and G A Norton (Rockwell Diamonds Inc.).
• “Revised Technical Report on the Saxendrift Alluvial Diamond Project, (incorporating the Saxendrift,
Brakfontein, Kwartelspan and Kransfontein properties), Hay District, The Republic of South Africa”,
for Rockwell Diamonds Inc. (effective date 28 February 2013) by T R Marshall (Explorations Unlimited)
and G A Norton (Rockwell Diamonds Inc.).
• “Technical Report on the Saxendrift Alluvial Diamond Project, (incorporating the Saxendrift,
Brakfontein, Kwartelspan and Kransfontein properties), Hay District, The Republic of South Africa”,
for Rockwell Diamonds Inc. (effective date 28 February 2014) by T R Marshall (Explorations Unlimited)
and G A Norton (Rockwell Diamonds Inc.).
Explorations Unlimited Page 20
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
Explorations Unlimited (“EU”) is a South African based consultancy owned by Dr Tania R Marshall that has
been operating since 1996. EU provides a variety of exploration and prospecting consulting services to
the international minerals community, in particular with respect to geological evaluation and financial
valuation of alluvial diamond mineral properties. This Technical Report was prepared, primarily, by Dr
T.R. Marshall (Pr. Sci. Nat.). Dr Marshall has over 20 years’ experience in the alluvial diamond industry,
including a background in international mineral exploration and evaluation studies and has had direct
experience with alluvial-eluvial diamond mining operations as a consulting geologist and, also, as an
operator. Dr Marshall’s experience includes operational and financial aspects of alluvial diamond mining,
including mine-planning and costing. Rockwell has accepted that the qualifications, expertise,
experience, competence, and professional reputation of Dr Marshall are appropriate and relevant for the
preparation of this Report.
Rockwell, listed on the TSX (RDI) and the JSE (RDI), is a company involved in the exploration and mining
of alluvial diamond deposits in South Africa (Fig. 1.1 and Fig. 1.2). Rockwell's BEE partner in the Middle
Orange River operations is Siyancuma Capital (Pty) Ltd.
Figure 1.1 Location of Rockwell owned operations in South Africa
• Rockwell and its wholly-owned subsidiary Rockwell Resources RSA (Pty) Ltd (“Rockwell RSA”) owns
74% of Saxendrift Mine (Pty) Ltd, the vehicle which holds the Saxendrift, Niewejaarskraal and
Zwemkuil projects;
o Rockwell RSA operates Saxendrift Mine (including the Brakfontein Hill Complex and the
Saxendrift Hill Complex)
o Rockwell RSA operates the Niewejaarskraal Project
Explorations Unlimited Page 21
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
• Through a Transaction and Shareholders agreement3
with Gump Mining cc, Rockwell RSA
incorporated a new company Gumrock Mining (Pty) Ltd (“Gumrock”) to carry out the prospecting and
mining activities on the Kwartelspan Complex project. Both Gump Mining cc and Rockwell RSA own
50% of the issued shares, with shareholding to be diluted according to funding requirements and
abilities.
• Rockwell RSA owns (through the acquisition of Jasper Mines (Pty) Ltd) and operates the Brakfontein
(Saxendrift River Complex) portion of the Saxendrift mining project;
• Rockwell and Rockwell RSA also owns (and Rockwell RSA operates) the Wouterspan Project (Middle
Orange River) through a 74% shareholding in HC Van Wyk Diamonds Limited (“HCVWD”);
• Through an acquisition of Bondeo4
144 cc, Rockwell RSA will own and operate the Remhoogte and
Reads Drift projects
• Rockwell owns5
100% of the equity in Etruscan Diamonds (Pty) Limited (an exploration company) and
74% in Blue Gum Diamonds (Pty) Limited. Blue Gum Diamonds Pty Limited owns the Tirisano mining
right. Rockwell’s operations at Tirisano are currently on care and maintenance but mining is taking
place through contract operators.
Figure 1.2 Corporate shareholdings of Rockwell (2015)
In addition to these mineral holdings, Rockwell owns a 20% stake in Flawless Diamond Trading House
(Proprietary) Limited ("FDTH"), thus providing a unique marketing and sales arm for Rockwell at a fee
which is well below the market norm. The acquisition, further, provides Rockwell with access to
additional revenue, and allows the Company to gain insight into diamond sales trends which will assist
with its short and long term production and growth plans.
The Technical Report was compiled, primarily, by Dr Marshall. Where the document refers to “the
author”, the senior (independent) QP, Dr Marshall, is referenced, unless otherwise indicated. The
document was co-authored by Mr Glenn Norton who is the Group Technical Manager for Rockwell
3
Signed 23rd April, 2014
4
As announced by Rockwell on 5 January 2015
5
Subsequent to the date of this Technical Report, Rockwell announced (30 March 2015) that they have sold Etruscan
Diamonds (Pty) Ltd (including the Tirisano Mining Right and its associated infrastructure) for a cash consideration of
USD6.3M to a consortium comprising the royalty miners who have operated at Tirisano for the past two years.
RockwellDiamondsInc
(RDI-TSX/JSE)
Rockwell Resources
RSA (Pty) Ltd
Saxendrift Mine (Pty) Ltd
("SAX")
Saxendrift Mine (BHC,
SHC, KPC)
Niewejaarskraal Project
Zwemkuil Project
H C Van Wyk Diamonds Ltd
("HCVWD")
Wouterspan Project
Jasper Mine (Pty) Ltd
Brakfontein Property
(SRC Project)
Bondeo 144 cc
("Bondeo")
Remhoogte Project
Reads Drift Project
Explorations Unlimited Page 22
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
Diamonds Inc. Mr Norton has over ten years’ experience in the exploration and exploitation of alluvial
diamonds throughout Africa and is Rockwell’s in-house Qualified Person. This Technical Report has been
prepared in accordance with Canadian Securities Administrators’ National Instrument 43-101 - Standards
Of Disclosure For Mineral Projects (“NI 43-101”), the NAPEGG guidelines for the Reporting of Diamond
Exploration Results, Identified Mineral Resources and Ore Reserves and the Best Practice Guidelines
prepared by CIM to assist the QP in the planning, supervision, preparation and reporting of Mineral
Resource and Mineral Reserve (MRMR) estimates. The Mineral Resource estimate has, further, been
prepared with specific reference to the SAMREC code. In particular, the SAMREC Code provides
guidelines for the diamond industry. The SAMREC Code has also been incorporated into the JSE Listings
Rules. Since Rockwell is dual listed in both Canada and South Africa, reference will continually be made
to both CIM and SAMREC Mineral Resource estimation codes (with CIM taking preference as the
company’s primary listing is the TSX).
The mining, processing and financial data summaries presented in sections 15-21 of this technical report
were completed as part of trial-mining operations, under the supervision of Dr T R Marshall (independent
QP), and the non-independent QP’s Mr G A Norton (Group Technical Manager for Rockwell).
The conclusions expressed in this independent resource estimate are appropriate as at 28 February 2015.
The appraisal is, therefore, only valid for this date and will change with time in response to ongoing
exploration and production results as well as with variations in diverse external factors.
1.2 Sources of Information
The comments and recommendations in this report, specific to the Saxendrift project, are based,
primarily, on information and technical documents and production data supplied by Rockwell. Other
technical/scientific papers and miscellaneous documents referred to are identified within the text or have
been referenced in Section 26.
Since Dr Marshall was not on the Saxendrift project for the full period of the prospecting, bulk-sampling,
and trial-mining, much reliance was placed on the technical management of Rockwell who provided
production data and internal audit reports for review. Dr Marshall has reviewed this data and considers
it to be reasonable for the purpose of this report. In these aspects, reliance has been placed upon the
relevant individuals providing the information, specifically Mr Glenn Norton (Group Technical Manager),
Mr Gary Dorkin (Geological Manager) and Mr George Stevens (Mine Manager) who are registered with
SACNASP and also have the relevant experience to act as QP/CP in their own right. The site geologists are
Mahlodi Malowa, Penelope Mohale and Richard Horn. They are all registered with SACNASP as “Natural
Scientists in Training” and are under the supervision of Glenn Norton and Gary Dorkin.
1.3 Units and Currency
All values are metric, unless otherwise stated. Historical grade and tonnage figures are reported in units
as originally published. All budget costs are presented in South African Rands (ZAR) and United States
Dollars (USD), for which a nominal exchange rate of USD1 = ZAR12.50 has been used. Diamond values
are expressed in United States Dollars.
1.4 Field involvement of Qualified Persons
A site visit to the Saxendrift project area was undertaken by Dr Marshall during the week 17-19 March,
2015. During this visit a review was made of all geological, technical and administrative procedures and
Explorations Unlimited Page 23
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
protocols being practiced by Rockwell personnel. In addition, numerous discussions were held with the
management and technical personnel of Rockwell, who readily provided all requested information. EU’s
extensive experience in this area (including previous visits to the Property) as well as that gained from
prior investigations of other, nearby deposits was also drawn upon as required.
Mr Norton is Rockwell’s Group Technical Manager and, as such, visits the project area for three days each
week.
1.5 Use of Data
Neither Explorations Unlimited nor family members have a business relationship with Rockwell or any
associated company, nor with any other company mentioned in the Report which is likely to materially
influence the impartiality of the Report, or create the perception that the credibility of the Report could
be compromised or biased in any way. The views expressed herein are genuine and deemed independent
of Rockwell. Moreover, neither the author of the report nor family members have any financial interest
in the outcome of any transaction involving the properties considered in this Report, other than the
payment of normal professional fees for the work undertaken in its preparation (which is based upon
hourly charge-out rates and reimbursement of expenses). The payment of such fees is not dependent
upon the content, or conclusions, of this Report or any consequences of any proposed transaction.
Rockwell has warranted that a full disclosure of all material information in its possession or control has
been made to EU, and that it is complete, accurate, true and not misleading. Draft copies of the Report
have been reviewed for factual errors by Rockwell. Any changes made as a result of these reviews did
not involve any alteration to the conclusions made. Hence, the statements and opinions expressed in this
document are given in good faith and in the belief that such statements and opinions are not false and
misleading at the date of this Report.
Written consent is provided for the filing of the Technical Report with any stock exchange and other
regulatory authority and also for any publication by them of the Technical Report for regulatory purposes,
including electronic publication in the public company files on their websites accessible by the public. EU
reserves the right, but will not be obligated, to revise this Report and conclusions if additional information
becomes known to EU subsequent to the date of this Report.
Explorations Unlimited Page 24
Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015
2 RELIANCE ON OTHER EXPERTS
2.1 Legal Opinion
An opinion regarding the underlying legal contracts, permissions and agreements was provided by
Director in Mining and Resources, Chris Stevens of Werksmans Attorneys on 01 April, 2015 – Rockwell
Diamonds Inc. – Title Opinion in respect of prospecting and mining rights held within Rockwell Group in
respect of the Middle Orange River Operations.
Chris Stevens is a director with Werksmans Attorneys where he is head of the firm's Mining and Resources
practice area. He advises on all aspects of mining law in South Africa, including in relation to commercial
arrangements, conveyancing, litigation, opinion work, black economic empowerment laws and due
diligence aspects. He advises many of the South African major mining houses on these aspects, as well
as medium size mining companies and junior exploration companies. He further advises numerous
American, UK, Canadian and Australian mining companies with interests in South Africa and acts for
numerous black empowerment companies in relation to mining transactions. He has also been involved
in numerous transactions for South African mining entities in sub-Saharan Africa. He has also been
integrally involved in advising numerous mining companies on various aspects of the Mineral and
Petroleum Resources Development Act, 28 of 2002, as well as the amendments to that legislation. Chris
Stevens co-lectured the LLB course at the University of the Witwatersrand on prospecting and mining law
in 1998 to 2007. He lectures at the University of the Witwatersrand to mining and engineering students
on compliance aspects and annually lectures at the University of Pretoria for MSc geology students in a
compliance course. He sat on the mining law committee of the International Bar Association in 2002 to
2006. Chris Stevens received B.Com and LLB degrees from the University of Witwatersrand and has been
practicing mining law since 1987. He was admitted as a notary public in 1990. Chris Stevens speaks at
numerous conferences, both in South Africa and internationally in relation to the South African mining
industry and, as such, is well qualified to produce reliable legal opinions on the Saxendrift project.
The author has not independently verified the status of these contracts, permissions and agreements but
has accepted that the legal opinion represents a materially accurate situation. The author has relied on
this opinion for the compilation of Section 3.2.
2.2 Survey
The surveying on Saxendrift was completed by an independent survey services company, RBW Survey
(Pty) Ltd. The fieldwork and calculations is under the auspices of Roland Harms (registered with The
Institute of Mine Surveyors of South Africa), supported by qualified and trained surveyors in the field. The
legal appointment and signing off of month-end calculations and all prescribed statutory plans are the
responsibility of Werner Harms, appointed in terms of the Mines and Works Act of 1956.
Weekly pre and post-profiling of all applicable surfaces is undertaken using a sub -1cm accuracy Real Time
Global Positioning System (“GPS”) instrument. A profile grid of ± 5m on even surfaces and 1m on uneven
surfaces is set up. Volumes are calculated using the “Model Maker Systems” software package, a
standard package, developed specifically for the technical and land surveying, engineering, mining, town-
planning, landscaping, quantity surveying, irrigation design and construction industries.
The standard checks implemented in the calculations include but are not limited to:
• Start-up checks to a maximum tolerance of 0.5cm.
• All profiling to be within 1cm of accuracy.
Explorations Unlimited Page 25
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101
Saxendrift NI43101

More Related Content

What's hot

Case Study on AK6 Karowe Mine. Discovery through to Production: Learning the ...
Case Study on AK6 Karowe Mine. Discovery through to Production: Learning the ...Case Study on AK6 Karowe Mine. Discovery through to Production: Learning the ...
Case Study on AK6 Karowe Mine. Discovery through to Production: Learning the ...James AH Campbell
 
The role of Geoscientists in a Junior Exploration Company
The role of Geoscientists in a Junior Exploration CompanyThe role of Geoscientists in a Junior Exploration Company
The role of Geoscientists in a Junior Exploration CompanyJames AH Campbell
 
Gilgit And Kohistan Field Report by Haseen azam Department of Geology Abdul w...
Gilgit And Kohistan Field Report by Haseen azam Department of Geology Abdul w...Gilgit And Kohistan Field Report by Haseen azam Department of Geology Abdul w...
Gilgit And Kohistan Field Report by Haseen azam Department of Geology Abdul w...haseen azam
 
Muntingia calabura ( Singapore cherry) project PPT
Muntingia calabura ( Singapore cherry) project PPTMuntingia calabura ( Singapore cherry) project PPT
Muntingia calabura ( Singapore cherry) project PPTManjunatha goravara
 
Field report of Haxara-Abbottabad area
Field report of Haxara-Abbottabad areaField report of Haxara-Abbottabad area
Field report of Haxara-Abbottabad areasalman khan
 
Ocean Metallic and Non Metallic Resource
Ocean Metallic and Non Metallic Resource Ocean Metallic and Non Metallic Resource
Ocean Metallic and Non Metallic Resource Gautam Priyadarshi
 
Chapter 2 diamond exploration principles and practices
Chapter 2 diamond exploration principles and practicesChapter 2 diamond exploration principles and practices
Chapter 2 diamond exploration principles and practicesJames AH Campbell
 
Mineral Identification Lab
Mineral Identification LabMineral Identification Lab
Mineral Identification LabJanelle Wilson
 
Scientific and economical aspect of seabed exploration and mining
Scientific and economical aspect of seabed exploration and miningScientific and economical aspect of seabed exploration and mining
Scientific and economical aspect of seabed exploration and miningSomnathKamble6
 
KAOLIN - BAHAN GALIAN INDUSTRI - BONITA
KAOLIN - BAHAN GALIAN INDUSTRI - BONITAKAOLIN - BAHAN GALIAN INDUSTRI - BONITA
KAOLIN - BAHAN GALIAN INDUSTRI - BONITABonita Susimah
 
Botswana Diamonds - 5 Oct 22 - FEQ Buy Note TP 6.8p.pdf
Botswana Diamonds - 5 Oct 22 - FEQ Buy Note TP 6.8p.pdfBotswana Diamonds - 5 Oct 22 - FEQ Buy Note TP 6.8p.pdf
Botswana Diamonds - 5 Oct 22 - FEQ Buy Note TP 6.8p.pdfJames AH Campbell
 

What's hot (12)

Case Study on AK6 Karowe Mine. Discovery through to Production: Learning the ...
Case Study on AK6 Karowe Mine. Discovery through to Production: Learning the ...Case Study on AK6 Karowe Mine. Discovery through to Production: Learning the ...
Case Study on AK6 Karowe Mine. Discovery through to Production: Learning the ...
 
The role of Geoscientists in a Junior Exploration Company
The role of Geoscientists in a Junior Exploration CompanyThe role of Geoscientists in a Junior Exploration Company
The role of Geoscientists in a Junior Exploration Company
 
Gilgit And Kohistan Field Report by Haseen azam Department of Geology Abdul w...
Gilgit And Kohistan Field Report by Haseen azam Department of Geology Abdul w...Gilgit And Kohistan Field Report by Haseen azam Department of Geology Abdul w...
Gilgit And Kohistan Field Report by Haseen azam Department of Geology Abdul w...
 
Muntingia calabura ( Singapore cherry) project PPT
Muntingia calabura ( Singapore cherry) project PPTMuntingia calabura ( Singapore cherry) project PPT
Muntingia calabura ( Singapore cherry) project PPT
 
Field report of Haxara-Abbottabad area
Field report of Haxara-Abbottabad areaField report of Haxara-Abbottabad area
Field report of Haxara-Abbottabad area
 
Ocean Metallic and Non Metallic Resource
Ocean Metallic and Non Metallic Resource Ocean Metallic and Non Metallic Resource
Ocean Metallic and Non Metallic Resource
 
Chapter 2 diamond exploration principles and practices
Chapter 2 diamond exploration principles and practicesChapter 2 diamond exploration principles and practices
Chapter 2 diamond exploration principles and practices
 
Mineral Identification Lab
Mineral Identification LabMineral Identification Lab
Mineral Identification Lab
 
Scientific and economical aspect of seabed exploration and mining
Scientific and economical aspect of seabed exploration and miningScientific and economical aspect of seabed exploration and mining
Scientific and economical aspect of seabed exploration and mining
 
KAOLIN - BAHAN GALIAN INDUSTRI - BONITA
KAOLIN - BAHAN GALIAN INDUSTRI - BONITAKAOLIN - BAHAN GALIAN INDUSTRI - BONITA
KAOLIN - BAHAN GALIAN INDUSTRI - BONITA
 
Diamond Geology
Diamond GeologyDiamond Geology
Diamond Geology
 
Botswana Diamonds - 5 Oct 22 - FEQ Buy Note TP 6.8p.pdf
Botswana Diamonds - 5 Oct 22 - FEQ Buy Note TP 6.8p.pdfBotswana Diamonds - 5 Oct 22 - FEQ Buy Note TP 6.8p.pdf
Botswana Diamonds - 5 Oct 22 - FEQ Buy Note TP 6.8p.pdf
 

Similar to Saxendrift NI43101

MICON - NI 43-101 Technical Resource Report
MICON - NI 43-101 Technical Resource ReportMICON - NI 43-101 Technical Resource Report
MICON - NI 43-101 Technical Resource ReportSpider Resources, Inc.
 
Vutomi Thorny River Project Competent Persons Report
Vutomi Thorny River Project Competent Persons ReportVutomi Thorny River Project Competent Persons Report
Vutomi Thorny River Project Competent Persons ReportJames AH Campbell
 
Highbank Resources Ltd. Swamp Point North PEA - April 23, 2015
Highbank Resources Ltd. Swamp Point North PEA - April 23, 2015Highbank Resources Ltd. Swamp Point North PEA - April 23, 2015
Highbank Resources Ltd. Swamp Point North PEA - April 23, 2015Follow me on Twitter @Stockshaman
 
Translinked Regional Freight Study
Translinked Regional Freight StudyTranslinked Regional Freight Study
Translinked Regional Freight StudyTranslinked
 
Agata ni43 101-dmc090122
Agata ni43 101-dmc090122Agata ni43 101-dmc090122
Agata ni43 101-dmc090122returnant
 
PA DEP 2-Year Study on Radiation from Oil & Gas Drilling
PA DEP 2-Year Study on Radiation from Oil & Gas DrillingPA DEP 2-Year Study on Radiation from Oil & Gas Drilling
PA DEP 2-Year Study on Radiation from Oil & Gas DrillingMarcellus Drilling News
 
Ecological assesment of fauna, sindh
Ecological assesment of fauna, sindhEcological assesment of fauna, sindh
Ecological assesment of fauna, sindhMuhammad Rehan
 
Fs volume iv (eia) environment comments
Fs volume iv (eia) environment commentsFs volume iv (eia) environment comments
Fs volume iv (eia) environment commentszubeditufail
 
USGS: The Principal Rare Earth Elements Deposits of the United States
USGS: The Principal Rare Earth Elements Deposits of the United StatesUSGS: The Principal Rare Earth Elements Deposits of the United States
USGS: The Principal Rare Earth Elements Deposits of the United StatesRare Earths / Rare Metals
 
Great quest-tilemsi-phosphate-project-pea-(06 feb13)
Great quest-tilemsi-phosphate-project-pea-(06 feb13)Great quest-tilemsi-phosphate-project-pea-(06 feb13)
Great quest-tilemsi-phosphate-project-pea-(06 feb13)Adnet Communications
 
Rio+20 National Synthesis Report for Mauritius
Rio+20 National Synthesis Report for MauritiusRio+20 National Synthesis Report for Mauritius
Rio+20 National Synthesis Report for MauritiusNawsheen Hosenally
 
Energy Consulting SDVOSB Past Performance
Energy Consulting SDVOSB Past PerformanceEnergy Consulting SDVOSB Past Performance
Energy Consulting SDVOSB Past Performancenatalyabelmont
 
Energy Consulting SDVOSB Past Performance
Energy Consulting SDVOSB Past PerformanceEnergy Consulting SDVOSB Past Performance
Energy Consulting SDVOSB Past PerformanceLink Resources
 
gem-south-africa-2014-report-1431707163
gem-south-africa-2014-report-1431707163gem-south-africa-2014-report-1431707163
gem-south-africa-2014-report-1431707163Nigel Engelbrecht
 
Inventory of innovative farmer advisory services using ic ts
Inventory of innovative farmer advisory services using ic tsInventory of innovative farmer advisory services using ic ts
Inventory of innovative farmer advisory services using ic tsBoni
 

Similar to Saxendrift NI43101 (20)

MICON - NI 43-101 Technical Resource Report
MICON - NI 43-101 Technical Resource ReportMICON - NI 43-101 Technical Resource Report
MICON - NI 43-101 Technical Resource Report
 
Vutomi Thorny River Project Competent Persons Report
Vutomi Thorny River Project Competent Persons ReportVutomi Thorny River Project Competent Persons Report
Vutomi Thorny River Project Competent Persons Report
 
Highbank Resources Ltd. Swamp Point North PEA - April 23, 2015
Highbank Resources Ltd. Swamp Point North PEA - April 23, 2015Highbank Resources Ltd. Swamp Point North PEA - April 23, 2015
Highbank Resources Ltd. Swamp Point North PEA - April 23, 2015
 
Translinked Regional Freight Study
Translinked Regional Freight StudyTranslinked Regional Freight Study
Translinked Regional Freight Study
 
NJK NI43101
NJK NI43101NJK NI43101
NJK NI43101
 
Agata ni43 101-dmc090122
Agata ni43 101-dmc090122Agata ni43 101-dmc090122
Agata ni43 101-dmc090122
 
Remhoogte NI43101
Remhoogte NI43101Remhoogte NI43101
Remhoogte NI43101
 
PA DEP 2-Year Study on Radiation from Oil & Gas Drilling
PA DEP 2-Year Study on Radiation from Oil & Gas DrillingPA DEP 2-Year Study on Radiation from Oil & Gas Drilling
PA DEP 2-Year Study on Radiation from Oil & Gas Drilling
 
Ecological assesment of fauna, sindh
Ecological assesment of fauna, sindhEcological assesment of fauna, sindh
Ecological assesment of fauna, sindh
 
Fs volume iv (eia) environment comments
Fs volume iv (eia) environment commentsFs volume iv (eia) environment comments
Fs volume iv (eia) environment comments
 
USGS: The Principal Rare Earth Elements Deposits of the United States
USGS: The Principal Rare Earth Elements Deposits of the United StatesUSGS: The Principal Rare Earth Elements Deposits of the United States
USGS: The Principal Rare Earth Elements Deposits of the United States
 
Great quest-tilemsi-phosphate-project-pea-(06 feb13)
Great quest-tilemsi-phosphate-project-pea-(06 feb13)Great quest-tilemsi-phosphate-project-pea-(06 feb13)
Great quest-tilemsi-phosphate-project-pea-(06 feb13)
 
NOAA_CSAR_2016
NOAA_CSAR_2016NOAA_CSAR_2016
NOAA_CSAR_2016
 
Rio+20 National Synthesis Report for Mauritius
Rio+20 National Synthesis Report for MauritiusRio+20 National Synthesis Report for Mauritius
Rio+20 National Synthesis Report for Mauritius
 
Energy Consulting SDVOSB Past Performance
Energy Consulting SDVOSB Past PerformanceEnergy Consulting SDVOSB Past Performance
Energy Consulting SDVOSB Past Performance
 
Energy Consulting SDVOSB Past Performance
Energy Consulting SDVOSB Past PerformanceEnergy Consulting SDVOSB Past Performance
Energy Consulting SDVOSB Past Performance
 
gem-south-africa-2014-report-1431707163
gem-south-africa-2014-report-1431707163gem-south-africa-2014-report-1431707163
gem-south-africa-2014-report-1431707163
 
Nuukfjord 43-101
Nuukfjord 43-101Nuukfjord 43-101
Nuukfjord 43-101
 
Iowa councilritual2015
Iowa councilritual2015Iowa councilritual2015
Iowa councilritual2015
 
Inventory of innovative farmer advisory services using ic ts
Inventory of innovative farmer advisory services using ic tsInventory of innovative farmer advisory services using ic ts
Inventory of innovative farmer advisory services using ic ts
 

More from James AH Campbell

Diamond exploration, mining, financing and driving entrepreneurial behaviour.
Diamond exploration, mining, financing and driving entrepreneurial behaviour.Diamond exploration, mining, financing and driving entrepreneurial behaviour.
Diamond exploration, mining, financing and driving entrepreneurial behaviour.James AH Campbell
 
The Economic Diamond Potential of the Kalahari of Botswana
The Economic Diamond Potential of the Kalahari of BotswanaThe Economic Diamond Potential of the Kalahari of Botswana
The Economic Diamond Potential of the Kalahari of BotswanaJames AH Campbell
 
Corporate Governance for South African Mining Companies (a practitioner's view)
Corporate Governance for South African Mining Companies (a practitioner's view)Corporate Governance for South African Mining Companies (a practitioner's view)
Corporate Governance for South African Mining Companies (a practitioner's view)James AH Campbell
 
Attracting Funds to Develop the Diamond Potential of Southern Africa
Attracting Funds to Develop the Diamond Potential of Southern AfricaAttracting Funds to Develop the Diamond Potential of Southern Africa
Attracting Funds to Develop the Diamond Potential of Southern AfricaJames AH Campbell
 
Junior Indaba June 2023 Myth Busting Green Metals
Junior Indaba June 2023 Myth Busting Green MetalsJunior Indaba June 2023 Myth Busting Green Metals
Junior Indaba June 2023 Myth Busting Green MetalsJames AH Campbell
 
Prospecting for Solutions: Challenges facing the South African Mining Industry
Prospecting for Solutions: Challenges facing the South African Mining IndustryProspecting for Solutions: Challenges facing the South African Mining Industry
Prospecting for Solutions: Challenges facing the South African Mining IndustryJames AH Campbell
 
Is there any overlap between Corporate Governance & Public Reporting?
Is there any overlap between Corporate Governance & Public Reporting?Is there any overlap between Corporate Governance & Public Reporting?
Is there any overlap between Corporate Governance & Public Reporting?James AH Campbell
 
Corporate Governance for South African Mining Companies (a practitioner's view)
Corporate Governance for South African Mining Companies (a practitioner's view)Corporate Governance for South African Mining Companies (a practitioner's view)
Corporate Governance for South African Mining Companies (a practitioner's view)James AH Campbell
 
Africa Report BOD 6 Sept 2022.pdf
Africa Report BOD 6 Sept 2022.pdfAfrica Report BOD 6 Sept 2022.pdf
Africa Report BOD 6 Sept 2022.pdfJames AH Campbell
 
The discovery and evaluation of AK6
The discovery and evaluation of AK6The discovery and evaluation of AK6
The discovery and evaluation of AK6James AH Campbell
 
Southern Africa deemed highly prospective for diamonds – Nadine Ramdass – Bos...
Southern Africa deemed highly prospective for diamonds – Nadine Ramdass – Bos...Southern Africa deemed highly prospective for diamonds – Nadine Ramdass – Bos...
Southern Africa deemed highly prospective for diamonds – Nadine Ramdass – Bos...James AH Campbell
 
The Future of Botswana's Diamond Resources
The Future of Botswana's Diamond ResourcesThe Future of Botswana's Diamond Resources
The Future of Botswana's Diamond ResourcesJames AH Campbell
 
Botswana Diamonds plc 2021 Annual Report
Botswana Diamonds plc 2021 Annual ReportBotswana Diamonds plc 2021 Annual Report
Botswana Diamonds plc 2021 Annual ReportJames AH Campbell
 
Technological approaches to diamond exploration on the Thorny River prospect,...
Technological approaches to diamond exploration on the Thorny River prospect,...Technological approaches to diamond exploration on the Thorny River prospect,...
Technological approaches to diamond exploration on the Thorny River prospect,...James AH Campbell
 
The AK6 kimberlite - discovery through to production learning the lessons of ...
The AK6 kimberlite - discovery through to production learning the lessons of ...The AK6 kimberlite - discovery through to production learning the lessons of ...
The AK6 kimberlite - discovery through to production learning the lessons of ...James AH Campbell
 
Corporate Governance for South African Mining Companies (a practitioners view)
Corporate Governance for South African Mining Companies (a practitioners view)Corporate Governance for South African Mining Companies (a practitioners view)
Corporate Governance for South African Mining Companies (a practitioners view)James AH Campbell
 

More from James AH Campbell (20)

Diamond exploration, mining, financing and driving entrepreneurial behaviour.
Diamond exploration, mining, financing and driving entrepreneurial behaviour.Diamond exploration, mining, financing and driving entrepreneurial behaviour.
Diamond exploration, mining, financing and driving entrepreneurial behaviour.
 
The Economic Diamond Potential of the Kalahari of Botswana
The Economic Diamond Potential of the Kalahari of BotswanaThe Economic Diamond Potential of the Kalahari of Botswana
The Economic Diamond Potential of the Kalahari of Botswana
 
Corporate Governance for South African Mining Companies (a practitioner's view)
Corporate Governance for South African Mining Companies (a practitioner's view)Corporate Governance for South African Mining Companies (a practitioner's view)
Corporate Governance for South African Mining Companies (a practitioner's view)
 
Attracting Funds to Develop the Diamond Potential of Southern Africa
Attracting Funds to Develop the Diamond Potential of Southern AfricaAttracting Funds to Develop the Diamond Potential of Southern Africa
Attracting Funds to Develop the Diamond Potential of Southern Africa
 
Junior Indaba June 2023 Myth Busting Green Metals
Junior Indaba June 2023 Myth Busting Green MetalsJunior Indaba June 2023 Myth Busting Green Metals
Junior Indaba June 2023 Myth Busting Green Metals
 
Prospecting for Solutions: Challenges facing the South African Mining Industry
Prospecting for Solutions: Challenges facing the South African Mining IndustryProspecting for Solutions: Challenges facing the South African Mining Industry
Prospecting for Solutions: Challenges facing the South African Mining Industry
 
Is there any overlap between Corporate Governance & Public Reporting?
Is there any overlap between Corporate Governance & Public Reporting?Is there any overlap between Corporate Governance & Public Reporting?
Is there any overlap between Corporate Governance & Public Reporting?
 
Corporate Governance for South African Mining Companies (a practitioner's view)
Corporate Governance for South African Mining Companies (a practitioner's view)Corporate Governance for South African Mining Companies (a practitioner's view)
Corporate Governance for South African Mining Companies (a practitioner's view)
 
Africa Report BOD 6 Sept 2022.pdf
Africa Report BOD 6 Sept 2022.pdfAfrica Report BOD 6 Sept 2022.pdf
Africa Report BOD 6 Sept 2022.pdf
 
The discovery and evaluation of AK6
The discovery and evaluation of AK6The discovery and evaluation of AK6
The discovery and evaluation of AK6
 
Southern Africa deemed highly prospective for diamonds – Nadine Ramdass – Bos...
Southern Africa deemed highly prospective for diamonds – Nadine Ramdass – Bos...Southern Africa deemed highly prospective for diamonds – Nadine Ramdass – Bos...
Southern Africa deemed highly prospective for diamonds – Nadine Ramdass – Bos...
 
The Future of Botswana's Diamond Resources
The Future of Botswana's Diamond ResourcesThe Future of Botswana's Diamond Resources
The Future of Botswana's Diamond Resources
 
Father of the Bride speech
Father of the Bride speechFather of the Bride speech
Father of the Bride speech
 
CPR Bat Shelomo
CPR Bat ShelomoCPR Bat Shelomo
CPR Bat Shelomo
 
Volcanoes Presentation
Volcanoes Presentation Volcanoes Presentation
Volcanoes Presentation
 
2021 highlights
2021 highlights2021 highlights
2021 highlights
 
Botswana Diamonds plc 2021 Annual Report
Botswana Diamonds plc 2021 Annual ReportBotswana Diamonds plc 2021 Annual Report
Botswana Diamonds plc 2021 Annual Report
 
Technological approaches to diamond exploration on the Thorny River prospect,...
Technological approaches to diamond exploration on the Thorny River prospect,...Technological approaches to diamond exploration on the Thorny River prospect,...
Technological approaches to diamond exploration on the Thorny River prospect,...
 
The AK6 kimberlite - discovery through to production learning the lessons of ...
The AK6 kimberlite - discovery through to production learning the lessons of ...The AK6 kimberlite - discovery through to production learning the lessons of ...
The AK6 kimberlite - discovery through to production learning the lessons of ...
 
Corporate Governance for South African Mining Companies (a practitioners view)
Corporate Governance for South African Mining Companies (a practitioners view)Corporate Governance for South African Mining Companies (a practitioners view)
Corporate Governance for South African Mining Companies (a practitioners view)
 

Recently uploaded

M.C Lodges -- Guest House in Jhang.
M.C Lodges --  Guest House in Jhang.M.C Lodges --  Guest House in Jhang.
M.C Lodges -- Guest House in Jhang.Aaiza Hassan
 
Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.Eni
 
Call Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine ServiceCall Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine Serviceritikaroy0888
 
The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024christinemoorman
 
Call Girls in Gomti Nagar - 7388211116 - With room Service
Call Girls in Gomti Nagar - 7388211116  - With room ServiceCall Girls in Gomti Nagar - 7388211116  - With room Service
Call Girls in Gomti Nagar - 7388211116 - With room Servicediscovermytutordmt
 
Monte Carlo simulation : Simulation using MCSM
Monte Carlo simulation : Simulation using MCSMMonte Carlo simulation : Simulation using MCSM
Monte Carlo simulation : Simulation using MCSMRavindra Nath Shukla
 
7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...Paul Menig
 
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service AvailableCall Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service AvailableDipal Arora
 
Sales & Marketing Alignment: How to Synergize for Success
Sales & Marketing Alignment: How to Synergize for SuccessSales & Marketing Alignment: How to Synergize for Success
Sales & Marketing Alignment: How to Synergize for SuccessAggregage
 
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Dave Litwiller
 
Socio-economic-Impact-of-business-consumers-suppliers-and.pptx
Socio-economic-Impact-of-business-consumers-suppliers-and.pptxSocio-economic-Impact-of-business-consumers-suppliers-and.pptx
Socio-economic-Impact-of-business-consumers-suppliers-and.pptxtrishalcan8
 
Russian Faridabad Call Girls(Badarpur) : ☎ 8168257667, @4999
Russian Faridabad Call Girls(Badarpur) : ☎ 8168257667, @4999Russian Faridabad Call Girls(Badarpur) : ☎ 8168257667, @4999
Russian Faridabad Call Girls(Badarpur) : ☎ 8168257667, @4999Tina Ji
 
Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023Neil Kimberley
 
DEPED Work From Home WORKWEEK-PLAN.docx
DEPED Work From Home  WORKWEEK-PLAN.docxDEPED Work From Home  WORKWEEK-PLAN.docx
DEPED Work From Home WORKWEEK-PLAN.docxRodelinaLaud
 
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
Keppel Ltd. 1Q 2024 Business Update  Presentation SlidesKeppel Ltd. 1Q 2024 Business Update  Presentation Slides
Keppel Ltd. 1Q 2024 Business Update Presentation SlidesKeppelCorporation
 
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesDipal Arora
 
VIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service Jamshedpur
VIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service JamshedpurVIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service Jamshedpur
VIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service JamshedpurSuhani Kapoor
 
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...Lviv Startup Club
 
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRLMONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRLSeo
 

Recently uploaded (20)

M.C Lodges -- Guest House in Jhang.
M.C Lodges --  Guest House in Jhang.M.C Lodges --  Guest House in Jhang.
M.C Lodges -- Guest House in Jhang.
 
Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.Eni 2024 1Q Results - 24.04.24 business.
Eni 2024 1Q Results - 24.04.24 business.
 
KestrelPro Flyer Japan IT Week 2024 (English)
KestrelPro Flyer Japan IT Week 2024 (English)KestrelPro Flyer Japan IT Week 2024 (English)
KestrelPro Flyer Japan IT Week 2024 (English)
 
Call Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine ServiceCall Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine Service
 
The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024The CMO Survey - Highlights and Insights Report - Spring 2024
The CMO Survey - Highlights and Insights Report - Spring 2024
 
Call Girls in Gomti Nagar - 7388211116 - With room Service
Call Girls in Gomti Nagar - 7388211116  - With room ServiceCall Girls in Gomti Nagar - 7388211116  - With room Service
Call Girls in Gomti Nagar - 7388211116 - With room Service
 
Monte Carlo simulation : Simulation using MCSM
Monte Carlo simulation : Simulation using MCSMMonte Carlo simulation : Simulation using MCSM
Monte Carlo simulation : Simulation using MCSM
 
7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...
 
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service AvailableCall Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Pune Just Call 9907093804 Top Class Call Girl Service Available
 
Sales & Marketing Alignment: How to Synergize for Success
Sales & Marketing Alignment: How to Synergize for SuccessSales & Marketing Alignment: How to Synergize for Success
Sales & Marketing Alignment: How to Synergize for Success
 
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
 
Socio-economic-Impact-of-business-consumers-suppliers-and.pptx
Socio-economic-Impact-of-business-consumers-suppliers-and.pptxSocio-economic-Impact-of-business-consumers-suppliers-and.pptx
Socio-economic-Impact-of-business-consumers-suppliers-and.pptx
 
Russian Faridabad Call Girls(Badarpur) : ☎ 8168257667, @4999
Russian Faridabad Call Girls(Badarpur) : ☎ 8168257667, @4999Russian Faridabad Call Girls(Badarpur) : ☎ 8168257667, @4999
Russian Faridabad Call Girls(Badarpur) : ☎ 8168257667, @4999
 
Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023
 
DEPED Work From Home WORKWEEK-PLAN.docx
DEPED Work From Home  WORKWEEK-PLAN.docxDEPED Work From Home  WORKWEEK-PLAN.docx
DEPED Work From Home WORKWEEK-PLAN.docx
 
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
Keppel Ltd. 1Q 2024 Business Update  Presentation SlidesKeppel Ltd. 1Q 2024 Business Update  Presentation Slides
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
 
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
 
VIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service Jamshedpur
VIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service JamshedpurVIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service Jamshedpur
VIP Call Girl Jamshedpur Aashi 8250192130 Independent Escort Service Jamshedpur
 
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
Yaroslav Rozhankivskyy: Три складові і три передумови максимальної продуктивн...
 
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRLMONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
 

Saxendrift NI43101

  • 1. 2015 Tania R Marshall, Pr.Sci.Nat. Explorations Unlimited Glenn A Norton, Pr.Sci.Nat. Rockwell Diamonds Inc. TECHNICAL REPORT ON THE SAXENDRIFT ALLUVIAL DIAMOND MINE (INCORPORATING THE SAXENDRIFT, BRAKFONTEIN, KWARTELSPAN AND KRANSFONTEIN PROPERTIES), HAY DISTRICT, REPUBLIC OF SOUTH AFRICA FOR ROCKWELL DIAMONDS INC. Effective Date: 28 February, 2015 Signature Date: 15 May, 2015
  • 2. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 Table of Contents Page SUMMARY .................................................................................................................................8 1 INTRODUCTION ....................................................................................................................... 20 1.1 TERMS OF REFERENCE AND SCOPE OF WORK.......................................................................................................20 1.2 SOURCES OF INFORMATION..............................................................................................................................23 1.3 UNITS AND CURRENCY ....................................................................................................................................23 1.4 FIELD INVOLVEMENT OF QUALIFIED PERSONS ......................................................................................................23 1.5 USE OF DATA ................................................................................................................................................24 2 RELIANCE ON OTHER EXPERTS ................................................................................................. 25 2.1 LEGAL OPINION .............................................................................................................................................25 2.2 SURVEY........................................................................................................................................................25 2.3 DIAMOND VALUATION ....................................................................................................................................26 2.4 METALLURGY ................................................................................................................................................26 3 PROPERTY DESCRIPTION AND LOCATION ................................................................................. 27 3.1 PROPERTY DESCRIPTION AND LOCATION..............................................................................................................27 3.2 PERMITS CONTRACTS AND AGREEMENTS.............................................................................................................29 3.2.1 Surface ownership / land use rights......................................................................................................30 3.2.2 Mineral rights (Mining/Prospecting Rights, permits, etc.)....................................................................30 3.2.2.1 Royalty Payments..........................................................................................................................................32 3.3 BEE COMPLIANCE..........................................................................................................................................32 3.4 ENVIRONMENTAL...........................................................................................................................................32 3.4.1 Rehabilitation........................................................................................................................................33 3.4.2 Water Permits.......................................................................................................................................33 3.5 SOCIAL RESPONSIBILITY ...................................................................................................................................33 3.5.1 Social and Labour Plans ........................................................................................................................34 3.6 ASSOCIATED RISKS..........................................................................................................................................34 4 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY.............. 35 4.1 TOPOGRAPHY, ELEVATION AND VEGETATION........................................................................................................35 4.2 ACCESS ........................................................................................................................................................37 4.3 PROXIMITY TO POPULATION CENTRES AND NATURE OF TRANSPORT ..........................................................................37 4.4 CLIMATE.......................................................................................................................................................37 4.5 INFRASTRUCTURE ...........................................................................................................................................38 5 HISTORY.................................................................................................................................. 39 5.1 PREVIOUS OWNERSHIP....................................................................................................................................40 5.2 PREVIOUS EXPLORATION/DEVELOPMENT............................................................................................................40 5.2.1 Historic..................................................................................................................................................40 5.2.2 TransHex/THO (2000 – 2007) ...............................................................................................................41 5.2.2.1 Saxendrift Mine properties...........................................................................................................................41 5.2.2.2 Brakfontein Ptn 1 ..........................................................................................................................................43 5.2.2.3 Kwartelspan Prospect ...................................................................................................................................43 6 GEOLOGICAL SETTING AND MINERALISATION .......................................................................... 45 6.1 GEOLOGY .....................................................................................................................................................45 6.1.1 Regional Geology..................................................................................................................................45 6.1.2 Local Geology........................................................................................................................................46 6.1.3 Property Geology ..................................................................................................................................48 6.1.3.1 Brakfontein Hill Complex (BHC) ....................................................................................................................49 6.1.3.2 Saxendrift Hill Complex (SHC) .......................................................................................................................52 6.1.3.3 Saxendrift River Complex (SRC).....................................................................................................................54 6.1.3.4 Kwartelspan (“KPC”) .....................................................................................................................................57 6.2 MINERALISATION ...........................................................................................................................................59 Explorations Unlimited Page 2
  • 3. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 6.2.1 Nature of Mineralisation.......................................................................................................................59 6.2.2 Fluvial Model.........................................................................................................................................63 6.2.3 Geological Controls...............................................................................................................................64 6.2.4 Mineralisation on the Saxendrift properties .........................................................................................67 7 DEPOSIT TYPES........................................................................................................................ 68 7.1 PRIMARY FLUVIAL-ALLUVIAL GRAVEL DEPOSITS....................................................................................................68 7.2 DEFLATION OR ‘ROOIKOPPIE’ DEPOSITS..............................................................................................................69 7.2.1 Eluvial Rooikoppie Gravel .....................................................................................................................69 7.2.2 Colluvial Rooikoppie Gravel ..................................................................................................................71 8 EXPLORATION ......................................................................................................................... 73 8.1 SATELLITE IMAGERY ........................................................................................................................................73 8.2 GEOPHYSICS..................................................................................................................................................73 8.2.1 Magnetic Profiling ................................................................................................................................74 8.2.2 Resistivity Survey...................................................................................................................................75 8.2.2.1 Results...........................................................................................................................................................75 8.3 STRUCTURAL STUDIES .....................................................................................................................................76 8.4 BULK-SAMPLING............................................................................................................................................77 8.4.1 Brakfontein Hill Complex (“BHC”) .........................................................................................................77 8.4.1.1 Location ........................................................................................................................................................77 8.4.1.1 Mining/Excavation Methodology..................................................................................................................77 8.4.1.2 Sample Processing ........................................................................................................................................79 8.4.1.3 Results...........................................................................................................................................................80 8.4.2 Saxendrift River Complex (“SRC”) .........................................................................................................81 8.4.2.1 Location ........................................................................................................................................................81 8.4.2.2 Mining/Excavation Methodology..................................................................................................................81 8.4.2.3 Sample processing ........................................................................................................................................82 8.4.2.4 Results...........................................................................................................................................................82 8.4.3 Saxendrift Hill Complex (“SHC”)............................................................................................................85 8.4.3.1 Location ........................................................................................................................................................86 8.4.3.2 Mining/Excavation Methodology..................................................................................................................86 8.4.3.3 Screening ......................................................................................................................................................86 8.4.3.4 Sample processing ........................................................................................................................................87 8.4.3.5 Results...........................................................................................................................................................91 8.4.4 Kwartelspan (“KPC”) .............................................................................................................................95 8.4.4.1 Location ........................................................................................................................................................95 8.4.4.2 Mining...........................................................................................................................................................95 8.4.4.3 Processing .....................................................................................................................................................97 8.4.4.4 Results...........................................................................................................................................................99 8.4.5 Other Terraces ....................................................................................................................................101 8.4.6 QA/QC.................................................................................................................................................101 8.4.7 Representivity .....................................................................................................................................102 9 DRILLING............................................................................................................................... 103 9.1 SAXENDRIFT MINE PROPERTIES .......................................................................................................................103 9.1.1 Saxendrift River Complex ....................................................................................................................105 9.1.2 Brakfontein Hill Complex.....................................................................................................................106 9.1.3 Saxendrift Hill Complex.......................................................................................................................107 9.1.3.1 SHC Terrace C (“Ankerpaal”).......................................................................................................................107 9.1.4 Kwartelspan Prospect .........................................................................................................................108 9.2 GRAVEL THICKNESSES ...................................................................................................................................108 9.3 REPRESENTATIVENESS ...................................................................................................................................110 10 SAMPLE PREPARATION, ANALYSIS AND SECURITY .................................................................. 111 10.1 SAMPLING ISSUES.........................................................................................................................................111 10.1.1 Sample Security ..............................................................................................................................112 10.2 SAMPLE REPRESENTATIVENESS........................................................................................................................113 Explorations Unlimited Page 3
  • 4. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 11 DATA VERIFICATION .............................................................................................................. 114 12 MINERAL PROCESSING AND METALLURGICAL TESTING........................................................... 117 12.1 BRAKFONTEIN HILL COMPLEX (“BHC”):...........................................................................................................117 12.1.1 Grades ............................................................................................................................................117 12.1.2 Values.............................................................................................................................................121 12.1.3 Diamond Size Distribution ..............................................................................................................122 12.2 REPRESENTIVITY...........................................................................................................................................124 12.3 METALLURGICAL TESTING..............................................................................................................................124 13 MINERAL RESOURCE ESTIMATES............................................................................................ 126 13.1 MINERAL RESOURCE ESTIMATION ...................................................................................................................126 13.1.1 Previous Resource Estimates ..........................................................................................................127 13.1.1.1 Venmyn (2007)............................................................................................................................................127 13.1.1.2 Explorations Unlimited (2008) ....................................................................................................................128 13.1.1.3 Explorations Unlimited (2010) ....................................................................................................................129 13.1.1.4 Explorations Unlimited (2012) ....................................................................................................................130 13.1.1.5 Explorations Unlimited (2013) ....................................................................................................................131 13.1.1.6 Explorations Unlimited (2014) ....................................................................................................................132 13.1.2 Current Resource Estimates............................................................................................................133 13.1.2.1 Inferred Resource .......................................................................................................................................133 13.1.2.2 Indicated Resource .....................................................................................................................................133 13.1.2.3 Measured Resource ....................................................................................................................................133 13.2 KEY PARAMETERS.........................................................................................................................................134 13.2.1 Volume ...........................................................................................................................................135 13.2.1.1 Specific Density...........................................................................................................................................135 13.2.2 Diamond Grade ..............................................................................................................................135 13.2.2.1 Cut-off Grades.............................................................................................................................................136 13.2.3 Diamond Size Frequency Distribution (“SFD”) ................................................................................136 13.2.3.1 Occurrence of Large Stones ........................................................................................................................138 13.2.4 Cut-off Screen Sizes.........................................................................................................................141 13.2.5 Diamond Value...............................................................................................................................142 13.2.6 Mineral Resource Estimation..........................................................................................................143 13.2.7 Resource Reconciliation..................................................................................................................147 13.3 PROSPECTING AND MINING RISKS....................................................................................................................147 13.3.1.1 In South Africa.............................................................................................................................................150 14 MINERAL RESERVE ESTIMATE................................................................................................. 152 14.1 PREVIOUS MINERAL RESERVE ESTIMATES .........................................................................................................153 14.2 CURRENT MINERAL RESERVE ESTIMATE............................................................................................................154 14.2.1 Key Assumptions.............................................................................................................................154 14.2.2 Mineral Reserve statement ............................................................................................................155 14.2.3 Mining Specific Risks.......................................................................................................................156 15 MINING METHODS ................................................................................................................ 158 15.1 EXCAVATION ...............................................................................................................................................158 15.2 SCREENING .................................................................................................................................................159 15.3 REHABILITATION ..........................................................................................................................................159 15.4 MINE PLAN.................................................................................................................................................160 15.4.1 Pit Design........................................................................................................................................161 15.4.2 Geotechnical Considerations ..........................................................................................................162 15.4.3 Mining rates and expected life-of-mine .........................................................................................163 15.4.4 Mining dilution factors ...................................................................................................................163 15.4.5 Strip Ratios .....................................................................................................................................164 15.5 EARTHMOVING FLEET....................................................................................................................................165 15.5.1 Fleet Maintenance..........................................................................................................................166 16 RECOVERY METHODS............................................................................................................. 167 Explorations Unlimited Page 4
  • 5. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 16.1 CONCENTRATION/PROCESS PLANT...................................................................................................................167 16.1.1 Rotary Pan Plant.............................................................................................................................167 16.2 FINAL RECOVERY ..........................................................................................................................................168 16.3 QA/QC .....................................................................................................................................................169 16.3.1 Pan Tracer/bort Tests.....................................................................................................................169 17 PROJECT INFRASTRUCTURE.................................................................................................... 170 17.1 POWER ......................................................................................................................................................170 17.2 WATER ......................................................................................................................................................171 17.3 COMMUNICATION........................................................................................................................................171 17.4 TRANSPORTATION ........................................................................................................................................172 17.5 WASTE DISPOSAL.........................................................................................................................................172 17.6 COARSE DUMPS ...........................................................................................................................................172 17.7 TAILINGS DISPOSAL.......................................................................................................................................172 17.8 FUEL STORAGE AND SUPPLY............................................................................................................................173 17.9 STAFF/LABOUR............................................................................................................................................173 17.10 ACCOMMODATION AND OFFICES.................................................................................................................175 17.11 SECURITY ...............................................................................................................................................175 17.12 ESSENTIAL SERVICES .................................................................................................................................176 18 MARKET STUDIES AND CONTRACTS ....................................................................................... 177 18.1 MARKET STUDIES.........................................................................................................................................177 18.1.1 The Diamond Pipeline.....................................................................................................................177 18.1.2 The impact of synthetics and recycling on the diamond market....................................................177 18.1.3 Global diamond production............................................................................................................179 18.1.4 International Diamond Market Trends...........................................................................................180 18.2 ROCKWELL SALES AND CONTRACTS..................................................................................................................183 18.2.1 Flawless Diamond Trading House...................................................................................................183 18.2.2 Diacore ...........................................................................................................................................184 19 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL/COMMUNITY IMPACT......................... 186 19.1 ENVIRONMENTAL.........................................................................................................................................186 19.2 MINE CLOSURE............................................................................................................................................187 19.3 SOCIAL RESPONSIBILITY .................................................................................................................................188 19.3.1 Social and Labour Plan (SLP)...........................................................................................................188 20 CAPITAL AND OPERATING COSTS ........................................................................................... 191 20.1 CAPITAL COSTS............................................................................................................................................191 20.2 OPERATING COSTS .......................................................................................................................................191 21 ECONOMIC ANALYSIS ............................................................................................................ 193 22 ADJACENT PROPERTIES.......................................................................................................... 194 22.1 KWARTELSPAN PROSPECT ..............................................................................................................................195 22.2 BO-KAROO .................................................................................................................................................195 23 OTHER RELEVANT DATA AND INFORMATION ......................................................................... 197 23.1 EXPLORATION TARGETS.................................................................................................................................197 23.2 COUNTRY PROFILE........................................................................................................................................198 23.2.1 South African Economy...................................................................................................................198 23.2.2 The Mining Industry........................................................................................................................199 23.2.3 South Africa’s Mineral Legislative Environment.............................................................................200 23.2.3.1 Mineral Policy .............................................................................................................................................200 23.2.3.2 Mineral and Petroleum Resource Development Act 28 of 2002 (“MPRDA”)..............................................201 23.2.3.3 Broad Based Black Economic Empowerment (BBBEE) and the Mining Charter..........................................201 23.2.3.4 The Minerals and Petroleum Resources Royalty Bill...................................................................................203 23.2.3.5 The Diamond Amendment Bill....................................................................................................................203 Explorations Unlimited Page 5
  • 6. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 23.2.3.6 Diamond Export Levy Bill 2007 ...................................................................................................................204 23.2.3.7 Precious Metals Bill and the Beneficiation Strategy ...................................................................................204 23.2.3.8 Kimberley Process.......................................................................................................................................205 24 INTERPRETATION AND CONCLUSIONS.................................................................................... 207 25 RECOMMENDATIONS ............................................................................................................ 213 25.1 PROPOSED WORK PROGRAMME .....................................................................................................................213 25.2 PROPOSED BUDGET......................................................................................................................................214 26 REFERENCES .......................................................................................................................... 215 27 DATE AND SIGNATURE PAGE.................................................................................................. 222 28 CERTIFICATE OF AUTHORS ..................................................................................................... 223 28.1 TANIA RUTH MARSHALL................................................................................................................................223 28.2 GLENN ALAN NORTON..................................................................................................................................225 Figures Figure 1.1 Location of Rockwell owned operations in South Africa.................................................... 21 Figure 1.2 Corporate shareholdings of Rockwell (2015) ..................................................................... 22 Figure 3.1 Location of the Saxendrift project in the Northern Cape Province (the box is the area shown in Fig. 3.2)............................................................................................................................ 27 Figure 3.2 Location of the Saxendrift Project Properties .................................................................... 28 Figure 4.1 Average climatic conditions at Kimberley, (www.kimberley.climatemps.com)................. 38 Figure 5.1 Historical diamond production from the middle Orange River (redrawn from Telfer et al, 2006)................................................................................................................................... 39 Figure 6.1 The General Geology of South Africa (Council for Geosciences)........................................ 45 Figure 6.2 General geology of the middle Orange River) .................................................................... 47 Figure 6.3 Location of known terraces within the area...................................................................... 48 Figure 6.4 Geological model of the southern portion of the C terrace on BHC (M Malowa).............. 51 Figure 6.5 Geological Model for SHC (P Mohale)................................................................................. 53 Figure 6.6 Geological model for SRC (M Malowa) ............................................................................... 56 Figure 6.7 Section A – B as defined on Fig. 6.5 (M Malowa)................................................................ 57 Figure 6.8 Geological map of the Kwartelspan Terrace Complex (“KPC”) (R Horn) ............................ 59 Figure 6.9 Palaeodrainage interpretation of identified terraces on the Saxendrift project ............... 60 Figure 6.10 Schematic view of coarser gravel channel bars in a braided river system ........................ 63 Figure 6.11 Fixed and mobile trapsites and their depositional environments (redrawn after Jacob, 2005)…….............................................................................................................................. 65 Figure 7.1 Formation of eluvial gravels (Marshall, 2004) .................................................................... 69 Figure 7.2 Formation of Eluvial Gravels (Marshall, 2004).................................................................... 70 Figure 7.3 Formation of colluvial gravels (Marshall, 2004).................................................................. 71 Figure 8.1 Satellite snapshot, indicating the prevalence of centre-pivot irrigation schemes that limit the use of satellite images, aerial photographs and geophysical techniques as primary exploration methods (Source; Google Earth) ..................................................................... 73 Figure 8.2 Airborne Magnetic Survey over Saxendrift Mine (Telfer, Stacey, Ecklund, & Bloomer, 2006)…. ............................................................................................................................... 74 Figure 8.3 Resistivity profile of a test-line on SRC............................................................................... 75 Figure 8.4 Map of southern Africa indicating the position of the Proterozoic orogenic belts. )........ 76 Figure 8.5 Location of bulk-sampling activities on the Brakfontein Hill Complex (2008).................... 78 Figure 8.6 Location of 2012-2014 bulk-sampling on SRC .................................................................... 81 Figure 8.7 Grade Size plot for SRC compared with BHC data showing distribution of carats. T ........ 84 Explorations Unlimited Page 6
  • 7. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 Figure 8.8 Diamond Size Frequency Distribution for SRC compared with other terraces .................. 85 Figure 8.9 Location of sampling on SHC B2 terrace (2013) ................................................................. 86 Figure 8.10 Schematic of a Bourevestnik Bulk X-Ray Sorter.................................................................. 88 Figure 8.11 FC (fast component) and SC (slow component) of a type I diamond during X-ray pulses . 89 Figure 8.12 Diamond Size Frequency Distribution for SHC compared with BHC .................................. 93 Figure 8.13 Grade Size plot for SRC compared with BHC data showing distribution of carats. The Y-axis is a measure of the stone density, calculated on a log interval (above) and a log-log scale (below)................................................................................................................................ 94 Figure 8.14 Location of bulk-sampling on Kwartelspan during 2014 .................................................... 95 Figure 8.15 Basic illustration of the Colour/NIR sorting principle......................................................... 98 Figure 8.16 SFD of Kwartelspan Rooikoppie (RK) diamonds compared with data from other Saxendrift operations......................................................................................................................... 100 Figure 8.17 Grade stone plot of the Kwartelspan diamonds compared with data from other Saxendrift operations......................................................................................................................... 101 Figure 8.18 Example of tracer testing of the pan efficiencies ............................................................. 102 Figure 9.1 Drill localities on Saxendrift Mine (all drilling by both TransHex and Rockwell) .............. 103 Figure 9.2 Location of the completed Rockwell drilling on the Saxendrift River Complex ............... 105 Figure 9.3: Section A – B as defined on Fig. 9.2 (M Malowa). Note that the vertical exaggeration on this section is 20:1 ................................................................................................................... 106 Figure 9.4 Section A – B through the drilling (ref Fig. 9.5 for location) ............................................. 106 Figure 9.5 Location of Rockwell drilling on the southern toe of BHC. (A and B is the section line represented in Fig. 9.4) ..................................................................................................... 107 Figure 9.6 SHC Geological Interpretation .......................................................................................... 108 Figure 9.7 Drilling localities on Kwartelspan, (all drilling by both TransHex and Rockwell)............... 109 Figure 9.8 Bedrock profile as determined from the Kwartelspan drilling/pitting programme......... 109 Figure 10.1 Schematic distribution of alluvial diamonds within an alluvial deposit – random distribution of clusters of points (Rombouts, 1987). ........................................................................... 112 Figure 11.1 Example of carat and volume reconciliation .................................................................... 115 Figure 11.2 Example of weekly grade and pan throughput reconciliation.......................................... 116 Figure 12.1 Location of mining activities on BHC during 2009/2014 .................................................. 118 Figure 12.2 Grade Size plot for SRC compared with BHC data showing distribution of carats. The Y-axis is a measure of the average stone size per volume, per size interval, calculated on a log interval (above) and a log-log scale (below)..................................................................... 122 Figure 12.3 Size Frequency Distribution (SFD) for BHC diamonds for 2014 compared with the total BHC population......................................................................................................................... 123 Figure 13.1 The extremely low concentrations of diamonds, combined with low homogeneity results insignificant difficulties in the evaluation of alluvial diamond deposits (after Lock, 2003)………......................................................................................................................... 134 Figure 13.2 SFD of the Orange and Vaal River alluvial diamond populations, in comparison with BHC…….............................................................................................................................. 137 Figure 13.3 Comparison of average diamond sizes from the Orange and Vaal Rivers and BHC......... 138 Figure 13.4 Size Frequency Distribution (SFD) for diamonds from the different terrace complexes on Saxendrift mine................................................................................................................. 139 Figure 13.5 Grade Size plot for all of the Saxendrift terraces data showing distribution of carats. The Y- axis is a measure of the average stone size per volume, per size interval, calculated on a log-log scale ...................................................................................................................... 140 Figure 13.6 Number of large diamonds calculated to occur in MOR deposits.................................... 140 Figure 13.7 Location of estimated Mineral Resources on Saxendrift Mine (as at 28 February 2015). Details of each terrace complex are shown individually below. ...................................... 144 Figure 14.1 Relationships between Mineral Resources and Mineral Reserves (SAMREC, 2009)........ 152 Figure 14.2 Probable Reserves on Saxendrift (BHC only).................................................................... 156 Explorations Unlimited Page 7
  • 8. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 Figure 15.1 Mining plan for BHC/SRC, FY2016 .................................................................................... 161 Figure 15.2 Overburden thickness across the proposed mining blocks.............................................. 164 Figure 16.1 Block flow diagram of the processing plant on Saxendrift Mine (used for both commercial production of current Reserves on BHC as well as the continued bulk-sampling on SRC/SHC during FY2016).................................................................................................................. 168 Figure 17.1 Water balance for Saxendrift Mine .................................................................................. 171 Figure 18.1 The Diamond Pipeline....................................................................................................... 177 Figure 18.2 This photograph shows eight of the 52 faceted HPHT synthetic diamonds produced by AOTC Group, ranging from 0.05 to 0.57ct. Of the total suite of samples examined, 40 were graded as colourless to near-colourless, a remarkably good colour range for HPHT synthetic diamonds, which are commonly produced in fancy colours. (Photo by Josh Balduf) (Ulrika, et al., 2014) ....................................................................................................................... 178 Figure 18.3 Projections indicate that demand for diamonds will outpace supply (Bain & Company, 2014)................................................................................................................................. 181 Figure 18.4 Rough diamond demand is expected to be fuelled by markets in the US, China and India (Bain & Company, 2014) ................................................................................................... 182 Figure 22.1 Numerous properties around Saxendrift Mine have been prospected for diamonds..... 194 Figure 23.1 Areas of Exploration Targets on the Saxendrift properties.............................................. 198 Figure 25.1 Areas to be bulk-sampled/trial-mined during FY2016. .................................................... 213 Tables Table 3.1 UTM Co-ordinates of the Saxendrift project properties.................................................. 29 Table 3.2 Summary of the Saxendrift project landholdings, described in this report.................... 31 Table 5.1 Historical bulk-sampling results from Saxendrift (Telfer et al., 2006) ............................. 40 Table 5.2 Bulk sample results (Telfer et al., 2006)........................................................................... 42 Table 8.1: Average recoveries from May 2008 to February 2009 (BHC A Terrace).......................... 80 Table 8.2 Production statistics for the 2012/2014 bulk-sampling programme on SRC .................. 82 Table 8.3 Sales values for diamonds from SRC (2012/2014)........................................................... 83 Table 8.4 Bourevestnik throughput per size range......................................................................... 90 Table 8.5 Bourevestnik throughput per size range – re-concentration........................................... 90 Table 8.6 Production statistics for the 2013-2014 bulk-sampling programme on SHC................... 91 Table 8.7 Sales values for diamonds from SHC (2013/2014)........................................................... 92 Table 8.8 Bulk sampling results from Kwartelspan (2014) .............................................................. 99 Table 12.1 Production results for the period 2009/2014................................................................ 119 Table 12.2 Diamond sales from BHC for the period 2009 -February 2014...................................... 121 Table 12.3 Individual high value stones (BHC)................................................................................. 121 Table 13.1 Mineral Resources (Telfer & Stacey, 2007).................................................................... 128 Table 13.2 Resource estimates on Saxendrift as at 28 February 2009............................................ 129 Table 13.3 Resource Statement for Saxendrift at 30 November, 2010........................................... 129 Table 13.4 Estimated resources on Saxendrift Mine (as at 29 February 2012)............................... 130 Table 13.5 Estimated Mineral Resources on Saxendrift mine (as at 28 February 2013)................. 131 Table 13.6 Estimated Mineral Resources on Saxendrift Mine (as at 28 February 2014) ................ 132 Table 13.7 Relationship between average USD/ct value and bottom cut-off size (“bcos”)............ 141 Table 13.8 Estimated Mineral Resources on Saxendrift Mine (as at 28 February 2015) ................ 147 Table 14.1 Mineral Reserves estimated for the Saxendrift Mine as at 30 November 2010............ 153 Table 14.2 Mineral Reserves estimated for the Saxendrift Mine (as at 29 February, 2012)........... 153 Table 14.3 Probable Mineral Reserves estimated for the Saxendrift Mine (as at 28 February, 2013) ........................................................................................................................................ 153 Table 14.4 Probable Mineral Reserves estimated for the Saxendrift Mine (as at 28 February, 2014) ........................................................................................................................................ 154 Explorations Unlimited Page 8
  • 9. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 Table 14.5 Probable Mineral Reserves estimated for the Saxendrift Mine (as at 28 February, 2015) ........................................................................................................................................ 155 Table 15.1 Proposed mining schedule for FY2016........................................................................... 160 Table 15.2 Proposed mining blocks and associated strip ratios...................................................... 165 Table 15.3 List of current EMV fleet on Saxendrift ......................................................................... 165 Table 20.1 Summary of FY2016 budgeted monthly operating costs (ZAR)..................................... 191 Table 23.1 Economic indicators for South Africa (March, 2015)..................................................... 199 Plates Plate 4.1 Landscape typical of the Middle Orange River (“MOR”) properties .................................. 35 Plate 4.2 Grasses, trees and shrubs common to the Nama-Karoo biome ………………………………………36 Plate 6.1 Dwyka tillite bedrock on which the alluvial gravels are developed.................................... 47 Plate 6.2 Basal gravel remnant of A1 terrace deposits on Saxendrift (Photo courtesy of Rockwell) 49 Plate 6.3 Typical profile of the B1 gravel on BHC .............................................................................. 50 Plate 6.4 Typical gravel profile on SHC .............................................................................................. 52 Plate 6.5 Basal gravels on the C3 terrace on Saxendrift River Complex............................................ 54 Plate 6.6 Dolerite dyke intruded perpendicular to strike of terrace D3 on SRC and the gravels developed on the upstream side........................................................................................ 55 Plate 6.7 Rooikoppie gravel as exposed in one of the sample trenches on Kwartelspan, overlying calcreted basal fluvial-alluvial gravels ................................................................................ 58 Plate 6.8 Makondo development in the calcrete beneath the Rooikoppie gravels.......................... 58 Plate 6.9 Reverse fault developed on the SHC on Saxendrift Mine (Photo courtesy P Mohale) ...... 65 Plate 6.10 Local structures and regional bedrock fabric contributes to diamond concentration within the Middle Orange River gravels ........................................................................................ 66 Plate 7.1 Typical stratigraphy of the Middle Orange River alluvial diamond deposits with a lower fluvial-alluvial unit and an overlying deflation or Rooikoppie gravel (Saxendrift Mine).... 68 Plate 7.2 Calcrete makondos infilled with gravel concentrate (seen in profile (above) and at the surface (right)). ................................................................................................................... 70 Plate 7.3 Significant thicknesses of colluvial gravels can accumulate downslope from the original fluvial deposit ……………………………………………………………..…………………………….…………………72 Plate 8.1 Chunks of calcreted gravels that might lock up unknown quantities of diamonds ........... 79 Plate 8.2 Screening plant on SHC....................................................................................................... 87 Plate 8.3 The LS-20-09 BV plant, of which there are currently two on SHC, one processes the fine and the other processes the coarse gravel stream ................................................................... 90 Plate 8.4 Glove box in which all the BV concentrate is hand-sorted................................................. 91 Plate 8.5 Small Volvo excavator cleaning out the calcrete makondos.............................................. 96 Plate 8.6 In-pit screening plant.......................................................................................................... 96 Plate 8.7 Sand removed from the screening plant is used in the rehabilitation of the sample pits . 97 Plate 8.8 Photograph of the TOMRA sensor-based sorter of the variety installed at Kwartelspan.. 98 Plate 9.1 RC drilling on Saxendrift River Complex during 2013....................................................... 104 Plate 15.1 Nd-Bo-Ferrite magnets removing BIF from the gravels at the IFS plant on BHC.............. 159 Plate 16.1 Secure hand-sort (glove box and drop box) facility at the BHC final recovery plant ....... 169 Plate 17.1: Mine residue dam on Saxendrift Mine (Courtesy of Rockwell)........................................ 173 Plate 18.1 A 169ct stone from SHC that was cut into the 109ct vivid yellow “Alana” by Diacore to increase the sales value by some 160% (courtesy Rockwell)............................................ 185 Plate 22.1 Fluvial-alluvial gravels as mined by Schalk Steyn on an adjacent portion of Kwartelspan195 Plate 22.2 B terrace gravels on Bo-Karoo mine................................................................................. 196 Explorations Unlimited Page 9
  • 10. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 Units and Abbreviations ABBREVIATION DESCRIPTION amsl Above mean sea level BBBEE Broad Based Black Economic Empowerment (the more correct term of the usually shortened BEE (Black Economic Empowerment)) and used in this report Bottom cut-off (“bcos”) Bottom cut-off refers to the smallest size diamond (in mm) that is recovered in the sampling and mining process Cdn$ Canadian Dollar CIM Canadian Institute of Mining Metallurgy and Petroleum CP Competent Person, as defined by SAMREC cpht Carats per 100 Tonnes ct Carat(s) ct/100m3 Carats per 100 cubic metres ct/st Carats per Stone DMR Department of Mineral Resources (Previously known as Department of Minerals and Energy (“DME”)) DMS Dense Media Separation plant DTM Digital Terrain Model DWS Department of Water and Sanitation (previously Department of Water and Forestry “DWAF”) EMPlan Environmental Management Plan (as required for a prospecting right) EMPR Environment Management Programme (as required for a mining right) ESKOM Electricity Supply Commission farm Surveyed area in South Africa, to which certain mineral rights can be held GSSA Geological Society of South Africa JSE Johannesburg Stock Exchange m Metres M Million Ma Millions of Years before Present MPRDA Mineral and Petroleum Resource Development Act (act 28 of 2002) NAPEGG The Association of Professional Engineers, Geologists and Geophysicists of the Northwest Territories NI 43-101 National Instrument 43-101 Pr. Sci. Nat. Professional Natural Scientist QP Qualified Person, as defined by National Instrument 43-101 SACNASP South African Council for Natural Scientific Professions Explorations Unlimited Page 10
  • 11. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 SAIMM South African Institute for Mining and Metallurgy SAMREC South African Code for Reporting of Mineral Resources and Mineral Reserves SARS South African Revenue Service SG Specific Gravity SLP Social & Labour Plan (as required for a mining right) tph Tonnes (metric) per hour TSX Toronto Stock Exchange USD United States Dollar ZAR South African Rand Explorations Unlimited Page 11
  • 12. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 Summary Background Explorations Unlimited (“EU”) was retained by Rockwell Diamonds Inc. (“Rockwell” or “the Company”) to prepare a Technical Report for the Saxendrift Alluvial Diamond Project (“Saxendrift Project” or “the Property”) in the Hay District of the Northern Province, South Africa. The Saxendrift Project comprises portions of the farms Saxendrift, Brakfontein, Kransfontein and Kwartelspan. This Technical Report comprises background information and drill and sample data that includes bulk-sampling information as well as the results of trial-mining and production mining from the property up to 28 February 2015. It has been prepared to document the results of exploration and other technical studies and the Mineral Resource/Mineral Reserve estimate on the properties as summarized in the Company’s Annual Information Form for the 2016 fiscal year. The conclusions expressed in this independent Technical Report are appropriate as at 28 February, 2015. The assessment is, therefore, only valid for this date and will change with time in response to ongoing exploration and production results as well as with variations in economic, market, legal or political factors. Rockwell is a company involved in the exploration and mining of alluvial diamond deposits. • In South Africa, Rockwell and its wholly-owned subsidiary Rockwell Resources RSA (Pty) Ltd (“Rockwell RSA”) owns 74% of Saxendrift Mine (Pty) Ltd, the vehicle which holds the Saxendrift, Niewejaarskraal and Zwemkuil projects; o Rockwell RSA operates Saxendrift Mine (including the Brakfontein Hill Complex and the Saxendrift Hill Complex) and the Niewejaarskraal Project; • Through a Transaction and Shareholders agreement with Gump Mining cc, Rockwell RSA incorporated a new company called Gumrock Mining (Pty) Ltd (“Gumrock”) to carry out prospecting and mining activities on the Kwartelspan Complex project. Both Gump Mining cc and Rockwell RSA own 50% of the issued shares, with shareholding to be diluted according to funding requirements and abilities; • Rockwell RSA owns (through the acquisition of Jasper Mines (Pty) Ltd) and operates the Brakfontein (Saxendrift River Complex) portion of the Saxendrift mining project; • Rockwell and Rockwell RSA also own (and Rockwell RSA operates) the Wouterspan Project on the Middle Orange River through a 74% shareholding in HC Van Wyk Diamonds Limited (“HCVWD”); • Through an acquisition of Bondeo 144 cc, Rockwell RSA will own and operate1 the Remhoogte and Reads Drift projects. Rockwell's 26% BEE partner of choice in these projects is Siyancuma Capital (Pty) Ltd (“Siyancuma”). The Saxendrift property is located on the south bank of the Orange River in the Herbert district of the Northern Cape Province, some 50km southwest of Douglas and some 160km from Kimberley. The Kwartelspan and Kransfontein properties are located to the east of Saxendrift. The following permits are valid for the project: Saxendrift Mine Kwartelspan Prospect ∗ Saxendrift 20 (Ptn 12, 13, 16, 20, Re/Farm, and Re/Ptn) ∗ Kransfontein 19 (Ptn (Ptn1)) ∗ Kwartelspan 25 (Re/Ptn) 1 See Press Release of March 2 and March 9, 2015 for details of this acquisition Explorations Unlimited Page 12
  • 13. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 ∗ Annex Saxesdrift 21 (Re/Ptn and PaardePan Ptn(Ptn 1) ∗ Brakfontein 276 (Ptn 1) Geology The present Orange River between Douglas and Prieska is generally referred to as the Middle Orange River (“MOR”). It displays a meandering channel morphology, which is best developed in areas underlain by the Dwyka Group. Palaeochannel depositional packages (“terraces”) of the Orange River are preserved at different elevations above the present Orange River bed. The ages of the terraces young with decreasing elevation and, conversely, the probability of preservation decreases with increasing age and elevation. The Saxendrift deposit comprises an extensive flat lying alluvial sequence located on terraces developed on the left bank of the present Orange River, approximately 20-70m above the Orange River. The bedrock is well exposed in the workings: shale and tillite of the Karoo age Dwyka Group are common. The fluvial-alluvial gravels comprise a sequence of (basal) gravels, 2-4m thick and overlain by a generally less than 5m thick unit of variably calcreted sands and silts, covered by a thin layer of soil and scree. The cobble-sized clasts within the gravels consist mostly of lava and quartzite with significant, if variable, amounts of Banded Iron Formation (BIF) and minor amounts of limestone, tillite, and agate. The matrix is sandy to gritty. As is usual with these types of deposits, the degree of calcretisation decreases downwards, and is characterized by hardpan or laminar calcrete at the surface to loosely cemented gravels at depth. The gravels are, generally, not well sorted, and are typical of braid bars that have migrated through sections of river channels in response to variable water speed. Bulk Sampling and Trial-Mining At alluvial deposits, after bulk-sampling is carried out to identify and estimate resource volume, grade and value, trial-mining is initiated to establish reserves. The latter phase moves seamlessly into production mining as the economic or “modifying” factors are understood. The methods of mining and processing used in the bulk-sampling, trial-mining and production mining phases of the operation are similar, except for the volumes processed. Full production is, typically, initiated once Mineral Reserves have been identified. The Saxendrift mine consists of a number of diamond resource areas. A number of different terrace levels (with associated palaeochannel depositional packages) have been identified on and around the Saxendrift properties. The terraces that have, historically, been mined on Saxendrift are known locally as terraces A, B, C and D (see accompanying map). For ease of reference the Saxendrift Mine has been subdivided into: • Brakfontein Hill Complex (Terrace A1, B1 and C1); • Saxendrift Hill Complex (Terrace B2 and C2); and • Saxendrift River Complex (Terrace C3 and D3). The terrace complex on Kwartelspan is referred to as KPC – it is not shown on the accompanying map as it is located further to the east of this view. After acquiring the property in April 2008, Rockwell commenced evaluation of the gravels in the various complexes using a phased approach: • Brakfontein Hill Complex (“BHC”) o From May 2008 to the end of February 2009 some 2,436.73carats were produced from the bulk-sampling of 194,287m3 of gravels (average grade of 1.25ct/100m3 ). Explorations Unlimited Page 13
  • 14. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 o During the period February 2009 and November 2010, Rockwell carried out a trial-mining programme, excavating 2,398,009m3 of gravel from the BHC through 16’ rotary pan plants. Some 14,073.49ct were recovered for an average grade of 0.62ct/100m3 . The information obtained from the trial-mining operation formed the basis for the Pre-Feasibility Study (“PFS”), on BHC. During the Pre-Feasibility Study, a Probable Reserve of 4,859,900m3 was identified (24,299.5ct at an average grade of 0.5ct/100m3 and value of USD2,029/ct). • Saxendrift River Complex (“SRC”) o In 2012, some 611,260m3 of gravel was processed from SRC to recover 3,696.58cts for an average sample grade of 0.60ct/100m3 . o In 2013, an additional 1,101,168m3 of gravel was processed for an average grade of 0.64ct/100m3 . This brings to 1.7M3 of gravel processed from this terrace at an average grade of 0.63ct/100m3 , which formed the basis for the PFS on SRC. A Probable Reserve of 1,071,400m3 was estimated from this programme. • Saxendrift Hill Complex (“SHC”) o During 2013, trial-mining was initiated on the B2 terrace of the, where some 561,600m3 of gravel was processed to recover 2,555.2cts for an average sample grade of 0.45ct/100m3 . o During 2014, 446,181m3 was processed at an average grade of 0.37ct/100m3 . • Kwartelspan Complex (“KPC”) o During 2014, a total of 80,590m3 of Rooikoppie gravel was processed from bulk-samples to recover 450.62ct for a sample grade of 0.57ct/100m3 . No fluvial-alluvial gravels have yet been processed by Rockwell. D3 Saxendrift Hill Complex (“SHC”) Saxendrift River Complex (“SRC”) Brakfontein Hill Complex (“BHC”) Explorations Unlimited Page 14
  • 15. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 All of the sampling was done in a similar manner –hydraulic excavators were used to extract material which was transported to the plant site for processing. Samples from BHC were screened at the plant site, whereas material from BHC, SHC, SRC and KPC were all screened at or near the pit site, following which only the feed fraction was transported to the plant. The BHC material was processed through four rotary pan plants with final recovery through FlowSort X- Ray machines and hand-sorting in a glove-box in a secure sort-house. The processing plant on SHC is a Bourevestnik bulk X-Ray plant. These machines have been designed to make diamond detection precise and efficient, including the detection of very pure (valuable) and normally non-luminescing type II diamonds. The sorting principles employed in the Bourevestnik units closely resemble the principles used in other commercial X-ray diamond sorting technology being marketed. The key differences between these and conventional X-ray diamond sorting technology are: • X-ray strength employed • X-ray radiation system (pulsating) • Detection system (measurement of rise and decay time of the fluorescence of diamonds). On SHC, gravel from the screening plant and scrubber is split into two fractions – fine (+5-12mm) and course (+12-36mm). Each stream is fed into separate BV LS-20-09 sorter units and the concentrate from each stream is hand sorted in a glove box under secure conditions. The TOMRA diamond recovery plant on KPC is a sensor-based system targeting typical characteristics such as X-ray luminescence, atomic density and transparency. TOMRA has developed a combined sensor technique using a high-resolution line-scan camera and a NIR (near infra-red) scanner to provide accurate detection of the diamond footprint. The XRT sensor detects and distinguishes diamonds on the basis of X-ray image processing, which correlates to the atomic densities of the particles. Diamonds are composed of carbon, which has an atomic number of 6. Compared to silicon with an atomic number of 14, diamonds show up much lighter on an XRT image than silica-based particles. This technology therefore recovers all types of diamonds, in particular Type II low luminescent and coated diamonds. Mineral Resource and Mineral Reserve Estimates The Mineral Resources at 28 February 2015 were estimated by Rockwell’s Group Technical Manager G. Norton, (Pr. Sci. Nat.), a Qualified Person who is not independent of the Company and reviewed by Dr. T.R. Marshall, (Pr. Sci. Nat.), a Qualified Person who is independent of the Company and who is responsible for the estimate. Note that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. During FY2012, pre-feasibility studies on Saxendrift had shown that a bottom cut-off size (“bcos”) of 5mm would be more cost-efficient and profitable than the previous bcos of 2mm and, consequently, all trial- mining and production mining has proceeded at this bcos. During late 2014, metallurgical studies have investigated the possibility of using 6mm bcos for all operations. Short term variations in the diamond price have resulted in large variations in diamond values from year to year. In order to smooth out irregularities in the diamond price, the two-year moving average has been used, when available. Explorations Unlimited Page 15
  • 16. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 Estimated Mineral Resources on Saxendrift Mine (as at 28 February 2015) Mining Area Terrace Complex Bottom cut-off Volume (m³) Grade (ct/100m³) Value (USD/ct) INDICATED RESOURCES Saxendrift Brakfontein Hill (“BHC”) B1 terrace 5mm 3,230,000 0.36 2,800 Saxendrift Hill Saxendrift Hill (“SHC”) B2 terrace 5mm 392,400 0.37 2,500 Saxendrift Extension Saxendrift River (“SRC”) C3 terrace 5mm 1,529,500 0.54 2,000 Total Indicated Mineral Resource 5,151,900 0.42 2,500 INFERRED RESOURCES Saxendrift Brakfontein Hill (“BHC”) B1 terrace 5mm 379,000 0.4 2,800 Saxendrift Hill Saxendrift Hill (“SHC”) B2 terrace 5mm 820,000 0.4 2,500 Saxendrift Extension Saxendrift River (“SRC”) C3 terrace 5mm 2,034,000 0.5 2,000 Kwartelspan Rooikoppie Kwartelspan Complex (“KPC”) 5mm 301,000 0.6 2,500 Total Inferred Mineral Resource 3,534,000 0.5 2,200 NOTE: the Indicated Mineral Resources on the BHC terrace is inclusive of the Mineral Reserves. When comparing the current Mineral Resources with those in the previous technical report, it is important to note: • The change in the Indicated Resources on the Brakfontein Hill Complex (“BHC”) is a combination of depletion by mining during 2014 and the continual upgrade of Inferred Resources to Indicated Resources based, inter alia, on the proximity (within 250m) of this material to an existing mining face. Consequently, as mining of existing Probable Reserves takes place and confidence in the geological and mining parameters is upheld (or increases) then surrounding Inferred Resources can be upgraded to Indicated Resources, assuming that the drilling grid of 100x50m (or closer) supports reasonable expectations of geological continuity. o Decreases in the sampling grade have led to the re-evaluation of the reasonable and realistic prospects for economic extraction and, as a result, it has been decided to include only the basal gravels in the Mineral Resource estimation; this has resulted in a significant decrease in the identified volume. o The estimated grade for the BHC terrace has decreased to 0.36ct/100m3 because the mining gravels that have been included have a higher sand percentage that those from the previous Explorations Unlimited Page 16
  • 17. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 year. The grade was also based on processing of the entire alluvial package; it is anticipated that the selective trial-mining proposed for FY2016 will result in improved grades. o During 2013, the average sale price of diamonds produced was USD2,276/ct and the 2014 value is USD 3,079/ct; the two-year trailing average value is USD2,800/ct. • The change in volume of the Saxendrift Hill Complex (“SHC”) material is due to depletion by sampling during 2014, combined with the upgrading of some Inferred Resources to Indicated. o During 2013, the average sales value was USD3,100/ct and the 2014 value is USD1,904/ct; the two-year trailing average value is USD2,500/ct. o The recovered grade has decreased to 0.37ct/100m3 . • The change in the volume of the Kwartelspan terrace complex (“KPC”) is a result of the stripping out of fluvial-alluvial portion, leaving only Rooikoppie gravels. o The sample grade for the Rooikoppie gravel has decreased to 0.56ct/100m3 based on the current bulk-sample data. o Only some 400ct have been sold from KPC during 2014 (average sales value of USD1,100/ct). This parcel is not considered representative of the entire expected population, especially since large stones (+20ct) have not been recovered – this is thought to be an issue associated with processing problems at the TOMRA plant. Modelled values based on size frequency distributions indicate that a more realistic value for the entire postulated diamond population is USD2,500/ct. This value (which also approximates the average value for the entire MOR population) will be used for KPC at an Inferred Level until further results are obtained. • The change in volume on the Saxendrift River Complex (”SRC”), is a combination of depletion by sampling and an increase in Inferred and Indicated Resources as a result of additional drilling and sampling. o During 2013, the average sale price was USD2,084/ct and the 2014 value is USD1,726/ct; the two-year trailing average value is USD2,000/ct. o Grades have decreased from 0.63ct/100m3 to 0.54ct/100m3 because sandier and finer gravels have been encountered. During 2009/2010, a pre-feasibility study was completed on the Indicated Resources at BHC to convert Indicated Resources to Probable Reserves. A similar exercise took place on SRC during 2012/2013 and Probable Reserves were also identified, which have been depleted. The Mineral Reserves 28 February 2015 were estimated by Rockwell’s Group Technical Manager G. Norton, (Pr. Sci. Nat.), a Qualified Person who is not independent of the Company and reviewed by Dr. T.R. Marshall, (Pr. Sci. Nat.), a Qualified Person who is independent of the Company and who is responsible for the estimate. TERRACE COMPLEX RESERVE CLASSIFICATION VOLUME (M³) GRADE (CT/100M³) CARATS VALUE (USD/CT) Brakfontein Hill (“BHC”) B1 terrace Probable 187,300 0.41 761.05 2,700 Probable Reserves (at 5mm bcos) 187,300 0.41 761.05 2,700 Note: • Only Indicated Mineral Resources located on BHC, which has been the subject of a trial-mining programme and Pre-Feasibility Study during the most recent fiscal year, have been converted to Probable Mineral Reserves. • The gravel volumes used in this study are Run of Mine (ROM). Since the entire gravel unit is mined and processed, no mining dilution factors are applied. • Diamond grades are all reported with reference to the mined (or pit) volume and not plant feed. Explorations Unlimited Page 17
  • 18. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 • The bottom cut-off (“bcos”) has a more substantial influence on the recovered grades and values. The bcos for much of 2014 was 5mm. Although the effective bcos going forward will be adjusted upward to 6mm, experience has shown that a number of -6mm stones will still be recovered; therefore the average diamond values or grades will not be adjusted. • Since the average diamond recovery values are based on actual, operational production and sales values, no additional modifying factors will need to be added to discount diamond recovery. • The grades/values from the individual resource blocks are modelled from surrounding blocks and geological investigations of the borehole logs, taking into account overburden stripping as well as any large units of interburden2 material which will be discarded. The current mine plan involves continuous mining (24hr per day operations) on the BHC Mineral Reserve blocks. The preferred method of extracting the alluvial gravels at Saxendrift is strip-mining in a shallow, opencast operation. The processing plant is comprised of four scrubbers followed by four 18 ft. rotary pan-plants (with a budgeted plant-throughput of 200,000m3 /month) and final recovery through a bank of twelve FLOWSORT machines, plus a final hand-sort in a glove-box under secure conditions. Access to all areas of the final recovery area is controlled and monitored by protection personnel and CCTV. Quality assurance/quality control (“QA/QC”) is maintained through the use of tracers, pan density tests, pan crash tests and particle size distribution tests which are regularly carried out by geological department personnel. Additional Potential Diamondiferous gravels are thought to exist on other terrace complexes that have yet to be bulk-sampled or trial-mined by Rockwell. The activities to test these areas will form part of forthcoming programmes to support resource/reserve estimations. These activities may take place concurrently, as on an alluvial diamond project such as Saxendrift, it is common for production mining in one area of the mine property to take place while with trial-mining and/or bulk-sampling operations is underway in other areas. Future (FY2015) Programme & Budget In response to international, macro-economic conditions, Rockwell has developed a corporate strategy that includes the simultaneous sampling, technical studies and mining on different properties along the Middle Orange River. During FY2016, Rockwell will include the sampling and technical studies on its Wouterspan, Remhoogte and Lanyonvale projects at the same time as further work on Saxendrift. However, both earthmoving equipment and manpower is limited and will need to be shared between the various on-going operations. As a result, the proposed work programme on Saxendrift will be carried out over a number of months, and will be prioritized based on positive results from the various projects. The work expected to be carried out on Saxendrift includes: • Mining the last of the identified Mineral Reserve from BHC. It is to be noted that additional Indicated Resources have been identified on this terrace (and SRC), which have not yet been evaluated as Reserves. Continuous assessment of Rockwell’s overall corporate requirements will determine when (and if) any of the Indicated Resources will be upgraded to Mineral Reserves and included in further mining plans. • Selected areas on SRC will be sampled/trial-mined (including the lowest “D” terrace). 2 Sandy lenses of sufficient size so as to be separated from the gravel as waste material (and not processed along with the gravel as dilution) Explorations Unlimited Page 18
  • 19. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 • Processing of gravels on SHC through the BV plant has not proved to be economic because of the limited throughput rate and low grades. In order to retain the identified gravels in the Mineral Resource, Rockwell will investigate whether processing them through the higher capacity rotary pan plant on BHC will make a difference. • The Rooikoppie gravels on Kwartelspan will continue to be sampled in order to increase the confidence in the Mineral Resource. The underlying fluvial-alluvial gravels will also be sampled. On-going trial-mining costs through the BHC rotary pan plant are some ZAR59.97/m3 . It is important to note that diamonds are recovered during both bulk-sampling and trial-mining and the sale of diamonds recovered during these exercises is expected to offset these costs. The independent QP believes that, notwithstanding the fact that the Mineral Reserves on BHC have been depleted, the results to date are sufficiently encouraging that the Property warrants further sampling/trial-mining on SHC, SRC and KPC as EMV and technical personnel are available. Explorations Unlimited Page 19
  • 20. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 1 INTRODUCTION 1.1 Terms of Reference and Scope of Work Explorations Unlimited (“EU”) was retained by Rockwell Diamonds Inc. (“Rockwell” or “the Company”) to prepare a Technical Report for the Saxendrift Alluvial Diamond Project (“Saxendrift” or “the Property”) in the Hay District of the Northern Province, South Africa. The Saxendrift Project comprises portions of the farms Saxendrift, Brakfontein, Kransfontein and Kwartelspan. This Technical Report comprises background information, drill and sample data, including results from the bulk-sampling programmes, trial-mining and commercial production derived from the property up to 28 February 2015. It is prepared in order to document the results of exploration work and the Mineral Resource and Reserve estimates on the properties as summarized in the Company’s Annual Information Form for the 2016 fiscal year. A number of documents dealing with the Saxendrift properties have, previously, been filed on www.sedar.com and submitted to the JSE Limited Stock Exchange: • “Independent Techno-Economic Valuation Report In The Form of a Competent Persons Report on the Trans Hex Group Limited’s (“Trans Hex”) Middle Orange River (“Middle Orange”) Operations” (2006) by C A Telfer, G D Stacey, M C Eklund and A G Bloomer (Venmyn Rand) • “Independent Techno-Economic Valuation Report In The Form of a Competent Persons Report on the Trans Hex Group Limited’s (“Trans Hex”) Middle Orange River (“Middle Orange”) Operations” (updated 2007) by C A Telfer and G D Stacey (Venmyn Rand) • “Technical Report on the Saxendrift Alluvial Diamond Project, (Saxendrift Mine And Kwartelspan Prospect), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc.(effective date 31 May, 2008), by T R Marshall (Explorations Unlimited) • “Technical Report on the Saxendrift Alluvial Diamond Project, (Saxendrift Mine and Kwartelspan Prospect), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc. (effective date 28 February 2009), by T R Marshall (Explorations Unlimited) and G A Norton (Rockwell Diamonds Inc.). • “Technical Report on the Saxendrift Alluvial Diamond Project, (Saxendrift Mine and Kwartelspan Prospect), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc. (updated 22 December 2009), by T R Marshall (Explorations Unlimited) and G A Norton (Rockwell Diamonds Inc.). • “Technical Report on the Saxendrift Alluvial Diamond Project, (Saxendrift Mine and Kwartelspan Prospect), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc. (signature date 30 May, 2011 and updated 25 July, 2011), by T R Marshall (Explorations Unlimited) and G A Norton (Rockwell Diamonds Inc.). • “Technical Report on the Saxendrift Alluvial Diamond Project, (Saxendrift Mine and Kwartelspan Prospect), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc. (signature date 23 May, 2012, by T R Marshall (Explorations Unlimited) and G A Norton (Rockwell Diamonds Inc.). • “Technical Report on the Saxendrift Alluvial Diamond Project, (incorporating the Saxendrift, Brakfontein, Kwartelspan and Kransfontein properties), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc. (effective date 28 February 2013) by T R Marshall (Explorations Unlimited) and G A Norton (Rockwell Diamonds Inc.). • “Revised Technical Report on the Saxendrift Alluvial Diamond Project, (incorporating the Saxendrift, Brakfontein, Kwartelspan and Kransfontein properties), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc. (effective date 28 February 2013) by T R Marshall (Explorations Unlimited) and G A Norton (Rockwell Diamonds Inc.). • “Technical Report on the Saxendrift Alluvial Diamond Project, (incorporating the Saxendrift, Brakfontein, Kwartelspan and Kransfontein properties), Hay District, The Republic of South Africa”, for Rockwell Diamonds Inc. (effective date 28 February 2014) by T R Marshall (Explorations Unlimited) and G A Norton (Rockwell Diamonds Inc.). Explorations Unlimited Page 20
  • 21. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 Explorations Unlimited (“EU”) is a South African based consultancy owned by Dr Tania R Marshall that has been operating since 1996. EU provides a variety of exploration and prospecting consulting services to the international minerals community, in particular with respect to geological evaluation and financial valuation of alluvial diamond mineral properties. This Technical Report was prepared, primarily, by Dr T.R. Marshall (Pr. Sci. Nat.). Dr Marshall has over 20 years’ experience in the alluvial diamond industry, including a background in international mineral exploration and evaluation studies and has had direct experience with alluvial-eluvial diamond mining operations as a consulting geologist and, also, as an operator. Dr Marshall’s experience includes operational and financial aspects of alluvial diamond mining, including mine-planning and costing. Rockwell has accepted that the qualifications, expertise, experience, competence, and professional reputation of Dr Marshall are appropriate and relevant for the preparation of this Report. Rockwell, listed on the TSX (RDI) and the JSE (RDI), is a company involved in the exploration and mining of alluvial diamond deposits in South Africa (Fig. 1.1 and Fig. 1.2). Rockwell's BEE partner in the Middle Orange River operations is Siyancuma Capital (Pty) Ltd. Figure 1.1 Location of Rockwell owned operations in South Africa • Rockwell and its wholly-owned subsidiary Rockwell Resources RSA (Pty) Ltd (“Rockwell RSA”) owns 74% of Saxendrift Mine (Pty) Ltd, the vehicle which holds the Saxendrift, Niewejaarskraal and Zwemkuil projects; o Rockwell RSA operates Saxendrift Mine (including the Brakfontein Hill Complex and the Saxendrift Hill Complex) o Rockwell RSA operates the Niewejaarskraal Project Explorations Unlimited Page 21
  • 22. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 • Through a Transaction and Shareholders agreement3 with Gump Mining cc, Rockwell RSA incorporated a new company Gumrock Mining (Pty) Ltd (“Gumrock”) to carry out the prospecting and mining activities on the Kwartelspan Complex project. Both Gump Mining cc and Rockwell RSA own 50% of the issued shares, with shareholding to be diluted according to funding requirements and abilities. • Rockwell RSA owns (through the acquisition of Jasper Mines (Pty) Ltd) and operates the Brakfontein (Saxendrift River Complex) portion of the Saxendrift mining project; • Rockwell and Rockwell RSA also owns (and Rockwell RSA operates) the Wouterspan Project (Middle Orange River) through a 74% shareholding in HC Van Wyk Diamonds Limited (“HCVWD”); • Through an acquisition of Bondeo4 144 cc, Rockwell RSA will own and operate the Remhoogte and Reads Drift projects • Rockwell owns5 100% of the equity in Etruscan Diamonds (Pty) Limited (an exploration company) and 74% in Blue Gum Diamonds (Pty) Limited. Blue Gum Diamonds Pty Limited owns the Tirisano mining right. Rockwell’s operations at Tirisano are currently on care and maintenance but mining is taking place through contract operators. Figure 1.2 Corporate shareholdings of Rockwell (2015) In addition to these mineral holdings, Rockwell owns a 20% stake in Flawless Diamond Trading House (Proprietary) Limited ("FDTH"), thus providing a unique marketing and sales arm for Rockwell at a fee which is well below the market norm. The acquisition, further, provides Rockwell with access to additional revenue, and allows the Company to gain insight into diamond sales trends which will assist with its short and long term production and growth plans. The Technical Report was compiled, primarily, by Dr Marshall. Where the document refers to “the author”, the senior (independent) QP, Dr Marshall, is referenced, unless otherwise indicated. The document was co-authored by Mr Glenn Norton who is the Group Technical Manager for Rockwell 3 Signed 23rd April, 2014 4 As announced by Rockwell on 5 January 2015 5 Subsequent to the date of this Technical Report, Rockwell announced (30 March 2015) that they have sold Etruscan Diamonds (Pty) Ltd (including the Tirisano Mining Right and its associated infrastructure) for a cash consideration of USD6.3M to a consortium comprising the royalty miners who have operated at Tirisano for the past two years. RockwellDiamondsInc (RDI-TSX/JSE) Rockwell Resources RSA (Pty) Ltd Saxendrift Mine (Pty) Ltd ("SAX") Saxendrift Mine (BHC, SHC, KPC) Niewejaarskraal Project Zwemkuil Project H C Van Wyk Diamonds Ltd ("HCVWD") Wouterspan Project Jasper Mine (Pty) Ltd Brakfontein Property (SRC Project) Bondeo 144 cc ("Bondeo") Remhoogte Project Reads Drift Project Explorations Unlimited Page 22
  • 23. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 Diamonds Inc. Mr Norton has over ten years’ experience in the exploration and exploitation of alluvial diamonds throughout Africa and is Rockwell’s in-house Qualified Person. This Technical Report has been prepared in accordance with Canadian Securities Administrators’ National Instrument 43-101 - Standards Of Disclosure For Mineral Projects (“NI 43-101”), the NAPEGG guidelines for the Reporting of Diamond Exploration Results, Identified Mineral Resources and Ore Reserves and the Best Practice Guidelines prepared by CIM to assist the QP in the planning, supervision, preparation and reporting of Mineral Resource and Mineral Reserve (MRMR) estimates. The Mineral Resource estimate has, further, been prepared with specific reference to the SAMREC code. In particular, the SAMREC Code provides guidelines for the diamond industry. The SAMREC Code has also been incorporated into the JSE Listings Rules. Since Rockwell is dual listed in both Canada and South Africa, reference will continually be made to both CIM and SAMREC Mineral Resource estimation codes (with CIM taking preference as the company’s primary listing is the TSX). The mining, processing and financial data summaries presented in sections 15-21 of this technical report were completed as part of trial-mining operations, under the supervision of Dr T R Marshall (independent QP), and the non-independent QP’s Mr G A Norton (Group Technical Manager for Rockwell). The conclusions expressed in this independent resource estimate are appropriate as at 28 February 2015. The appraisal is, therefore, only valid for this date and will change with time in response to ongoing exploration and production results as well as with variations in diverse external factors. 1.2 Sources of Information The comments and recommendations in this report, specific to the Saxendrift project, are based, primarily, on information and technical documents and production data supplied by Rockwell. Other technical/scientific papers and miscellaneous documents referred to are identified within the text or have been referenced in Section 26. Since Dr Marshall was not on the Saxendrift project for the full period of the prospecting, bulk-sampling, and trial-mining, much reliance was placed on the technical management of Rockwell who provided production data and internal audit reports for review. Dr Marshall has reviewed this data and considers it to be reasonable for the purpose of this report. In these aspects, reliance has been placed upon the relevant individuals providing the information, specifically Mr Glenn Norton (Group Technical Manager), Mr Gary Dorkin (Geological Manager) and Mr George Stevens (Mine Manager) who are registered with SACNASP and also have the relevant experience to act as QP/CP in their own right. The site geologists are Mahlodi Malowa, Penelope Mohale and Richard Horn. They are all registered with SACNASP as “Natural Scientists in Training” and are under the supervision of Glenn Norton and Gary Dorkin. 1.3 Units and Currency All values are metric, unless otherwise stated. Historical grade and tonnage figures are reported in units as originally published. All budget costs are presented in South African Rands (ZAR) and United States Dollars (USD), for which a nominal exchange rate of USD1 = ZAR12.50 has been used. Diamond values are expressed in United States Dollars. 1.4 Field involvement of Qualified Persons A site visit to the Saxendrift project area was undertaken by Dr Marshall during the week 17-19 March, 2015. During this visit a review was made of all geological, technical and administrative procedures and Explorations Unlimited Page 23
  • 24. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 protocols being practiced by Rockwell personnel. In addition, numerous discussions were held with the management and technical personnel of Rockwell, who readily provided all requested information. EU’s extensive experience in this area (including previous visits to the Property) as well as that gained from prior investigations of other, nearby deposits was also drawn upon as required. Mr Norton is Rockwell’s Group Technical Manager and, as such, visits the project area for three days each week. 1.5 Use of Data Neither Explorations Unlimited nor family members have a business relationship with Rockwell or any associated company, nor with any other company mentioned in the Report which is likely to materially influence the impartiality of the Report, or create the perception that the credibility of the Report could be compromised or biased in any way. The views expressed herein are genuine and deemed independent of Rockwell. Moreover, neither the author of the report nor family members have any financial interest in the outcome of any transaction involving the properties considered in this Report, other than the payment of normal professional fees for the work undertaken in its preparation (which is based upon hourly charge-out rates and reimbursement of expenses). The payment of such fees is not dependent upon the content, or conclusions, of this Report or any consequences of any proposed transaction. Rockwell has warranted that a full disclosure of all material information in its possession or control has been made to EU, and that it is complete, accurate, true and not misleading. Draft copies of the Report have been reviewed for factual errors by Rockwell. Any changes made as a result of these reviews did not involve any alteration to the conclusions made. Hence, the statements and opinions expressed in this document are given in good faith and in the belief that such statements and opinions are not false and misleading at the date of this Report. Written consent is provided for the filing of the Technical Report with any stock exchange and other regulatory authority and also for any publication by them of the Technical Report for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public. EU reserves the right, but will not be obligated, to revise this Report and conclusions if additional information becomes known to EU subsequent to the date of this Report. Explorations Unlimited Page 24
  • 25. Rockwell Diamonds Inc., Saxendrift Mine February 28, 2015 2 RELIANCE ON OTHER EXPERTS 2.1 Legal Opinion An opinion regarding the underlying legal contracts, permissions and agreements was provided by Director in Mining and Resources, Chris Stevens of Werksmans Attorneys on 01 April, 2015 – Rockwell Diamonds Inc. – Title Opinion in respect of prospecting and mining rights held within Rockwell Group in respect of the Middle Orange River Operations. Chris Stevens is a director with Werksmans Attorneys where he is head of the firm's Mining and Resources practice area. He advises on all aspects of mining law in South Africa, including in relation to commercial arrangements, conveyancing, litigation, opinion work, black economic empowerment laws and due diligence aspects. He advises many of the South African major mining houses on these aspects, as well as medium size mining companies and junior exploration companies. He further advises numerous American, UK, Canadian and Australian mining companies with interests in South Africa and acts for numerous black empowerment companies in relation to mining transactions. He has also been involved in numerous transactions for South African mining entities in sub-Saharan Africa. He has also been integrally involved in advising numerous mining companies on various aspects of the Mineral and Petroleum Resources Development Act, 28 of 2002, as well as the amendments to that legislation. Chris Stevens co-lectured the LLB course at the University of the Witwatersrand on prospecting and mining law in 1998 to 2007. He lectures at the University of the Witwatersrand to mining and engineering students on compliance aspects and annually lectures at the University of Pretoria for MSc geology students in a compliance course. He sat on the mining law committee of the International Bar Association in 2002 to 2006. Chris Stevens received B.Com and LLB degrees from the University of Witwatersrand and has been practicing mining law since 1987. He was admitted as a notary public in 1990. Chris Stevens speaks at numerous conferences, both in South Africa and internationally in relation to the South African mining industry and, as such, is well qualified to produce reliable legal opinions on the Saxendrift project. The author has not independently verified the status of these contracts, permissions and agreements but has accepted that the legal opinion represents a materially accurate situation. The author has relied on this opinion for the compilation of Section 3.2. 2.2 Survey The surveying on Saxendrift was completed by an independent survey services company, RBW Survey (Pty) Ltd. The fieldwork and calculations is under the auspices of Roland Harms (registered with The Institute of Mine Surveyors of South Africa), supported by qualified and trained surveyors in the field. The legal appointment and signing off of month-end calculations and all prescribed statutory plans are the responsibility of Werner Harms, appointed in terms of the Mines and Works Act of 1956. Weekly pre and post-profiling of all applicable surfaces is undertaken using a sub -1cm accuracy Real Time Global Positioning System (“GPS”) instrument. A profile grid of ± 5m on even surfaces and 1m on uneven surfaces is set up. Volumes are calculated using the “Model Maker Systems” software package, a standard package, developed specifically for the technical and land surveying, engineering, mining, town- planning, landscaping, quantity surveying, irrigation design and construction industries. The standard checks implemented in the calculations include but are not limited to: • Start-up checks to a maximum tolerance of 0.5cm. • All profiling to be within 1cm of accuracy. Explorations Unlimited Page 25