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MIKE ROBERTS
Jwaneng, 28th May 2019
BOTSWANA PROSPECTING:
FUTURE CONSIDERATIONS
1
DISCLAIMER
CAUTIONARY STATEMENT
Disclaimer: This presentation has been prepared by De Beers and comprises the written materials/slides for a presentation concerning the Company. By attending this presentation and/or reviewing the slides
you agree to be bound by the following conditions.
This presentation is for information purposes only. Further, it does not constitute a recommendation by De Beers or any other party to sell or buy shares in any securities. All written or oral forward-looking
statements attributable to De Beers or persons acting on their behalf are qualified in their entirety by these cautionary statements.
Forward-Looking Statements
This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s
financial position, business and acquisition strategy, plans and objectives of management for future operations (including development plans and objectives relating to products, production forecasts and reserve
and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future. Important factors
that could cause actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of
global demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, the availability of mining and processing equipment,
the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political
uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or safety, health, environmental or other types
of regulation in the countries where De Beers or Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American’s most recent Annual Report.
Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as
of the date of this presentation. De Beers and Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the “Takeover
Code”), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Services Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SWX Swiss
Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein
to reflect any change in Anglo American’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Nothing in this presentation should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share.
Certain statistical and other information about De Beers and Anglo American included in this presentation is sourced from publicly available third party sources. As such it presents the views of those third
parties, but may not necessarily correspond to the views held by De Beers or by Anglo American.
No Investment Advice
This presentation has been prepared without reference to your particular investment objectives, financial situation, taxation position and particular needs. It is important that you view this presentation in its
entirety. If you are in any doubt in relation to these matters, you should consult your stockbroker, bank manager, solicitor, accountant, taxation adviser or other independent financial adviser (where applicable,
as authorised under the Financial Services and Markets Act 2000 in the UK, or in South Africa, under the Financial Advisory and Intermediary Services Act 37 of 2002.).
2
PRESENTATION OUTLINE
• DIAMOND EXPLORATION FUNDAMENTALS
• BOTSWANA DISCOVERY PROFILE & OBSERVATIONS
• FUTURE EXPLORATION: NEW FRONTIERS UNDER COVER?
3
DIAMOND EXPLORATION – WHAT INFORMATION IS REQUIRED?
KIMBERLITE
DISCOVERY
PIPE SIZE
DIAMOND
GRADE
DIAMOND
QUALITY
4
MINE = ECONOMIC COMBINATION OF GRADE (CPHT), DIAMOND VALUE ($/CT) & TONNAGE (SIZE)
5
BOTSWANA: KIMBERLITE DISCOVERY PROFILE
Kimberlite Field #
NxauNxau 31
Okwa 8
Orapa 86
Gope 6
Khutse-kikao 24
Kokong 66
Martinsdrift 8
Jwaneng 35
Mabuasehube 9
Tsabong 103
Lekgodu 9
Kgatleng 11
Other 5
TOTAL 401
Mochudi,
Orapa,
Letlhakane
Jwaneng,
Damtshaa,
Tsabong,
Kokong
Gope, CKGR
Orapa,
Lerala,
NxauNxau,
Sikwane,
TNK
Orapa, Jwaneng,
Tsabong, Kokong,
NxauNxau, KX36
Tsabong, Kokong
1980’s represented a
particularly low period
of investment in the
diamond industry
generally
Period of limited discovery:
Low greenfields exploration investment
Botswana heavily explored – certainly in
“easier terrains”, work in areas of residual
potential is costly and technically
challenging.
6
DISCOVERY PROFILE CONT……
NXAU NXAU
KOKONG
JWANENG
TSABONG
LERALA
GOPE & CKGR
ORAPA
400+ KNOWN KIMBERLITES IN BOTSWANA:
• >85% ARE <90MA
• 10% ARE BETWEEN 160MA - 240MA
• ONLY 5% ARE >500MA
7
THE OBVIOUS KIMBERLITE FIELDS IN BOTSWANA HAVE PROBABLY ALREADY BEEN FOUND.
WHERE WILL THE NEW DISCOVERIES COME FROM AND HOW WILL THEY BE MADE?
West
East
m
Kalahari
Basement: Proterozoic & Archaean
Limpopo Mobile Belt
Ghanzi-Chobe Belt
Karoo: sediments
Karoo: basalt
Kalahari
• NEW FRONTIERS – COVER & GEOLOGY?
• REVISIT KNOWN PIPES & FIELDS?
• BIG COMPLEX PIPES?
• SMALLER PIPES WITH HIGH QUALITY DIAMONDS?
• NEW TECHNOLOGY OR INNOVATION TO “UNMASK” HIDDEN PIPES?
SCHEMATIC WEST-EAST GEOLOGICAL SECTION ACROSS BOTSWANA WITH EXAMPLES OF KIMBERLITE INTRUSIONS OF KNOWN AGE RANGES.
8
APPLICATION OF GEOPHYSICS FOR DISCOVERY UNDER COVER (TSABONG EXAMPLE)
CSAMT
LOCAL GEOLOGY – NO OUTCROP
REGIONAL AM
200m AM
100m AM GRADIOMETRY
20m GROUND MAGNETICS
i. High resolution
9
AEM MAGNETICSGRAVITY
APPLICATION OF GEOPHYSICS FOR DISCOVERY UNDER COVER (TSABONG EXAMPLE)
ii. Multi-technique
10
TSABONG: DATA INTEGRATION, MODELLING, DRILLING & GEOLOGY
Grey: Gravity model
Red: Magnetic model (VOXI)
Pink: EM 3D model
CSAMTCSAMT PROFILE
11
• DIAMOND EXPLORATION FUNDAMENTALS
• A sound understanding of the fundamentals of diamond exploration is critical….
• ….as is the development of good technical skills, competence & expertise.
• BOTSWANA DISCOVERY PROFILE & OBSERVATIONS
• Botswana remains prospective for new economic discoveries, but will require innovative approaches.
• FUTURE EXPLORATION: NEW FRONTIERS UNDER COVER?
• Advanced geophysics and associated technology is an important tool in the future of diamond exploration.
• However, effective integration of data to understand the geology remains critical.
SUMMARY
BOTSWANA PROSPECTING: FUTURE CONSIDERATIONS

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BOTSWANA PROSPECTING: FUTURE CONSIDERATIONS

  • 1. MIKE ROBERTS Jwaneng, 28th May 2019 BOTSWANA PROSPECTING: FUTURE CONSIDERATIONS
  • 2. 1 DISCLAIMER CAUTIONARY STATEMENT Disclaimer: This presentation has been prepared by De Beers and comprises the written materials/slides for a presentation concerning the Company. By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. This presentation is for information purposes only. Further, it does not constitute a recommendation by De Beers or any other party to sell or buy shares in any securities. All written or oral forward-looking statements attributable to De Beers or persons acting on their behalf are qualified in their entirety by these cautionary statements. Forward-Looking Statements This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business and acquisition strategy, plans and objectives of management for future operations (including development plans and objectives relating to products, production forecasts and reserve and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future. Important factors that could cause actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, the availability of mining and processing equipment, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or safety, health, environmental or other types of regulation in the countries where De Beers or Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American’s most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. De Beers and Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the “Takeover Code”), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Services Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SWX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Nothing in this presentation should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share. Certain statistical and other information about De Beers and Anglo American included in this presentation is sourced from publicly available third party sources. As such it presents the views of those third parties, but may not necessarily correspond to the views held by De Beers or by Anglo American. No Investment Advice This presentation has been prepared without reference to your particular investment objectives, financial situation, taxation position and particular needs. It is important that you view this presentation in its entirety. If you are in any doubt in relation to these matters, you should consult your stockbroker, bank manager, solicitor, accountant, taxation adviser or other independent financial adviser (where applicable, as authorised under the Financial Services and Markets Act 2000 in the UK, or in South Africa, under the Financial Advisory and Intermediary Services Act 37 of 2002.).
  • 3. 2 PRESENTATION OUTLINE • DIAMOND EXPLORATION FUNDAMENTALS • BOTSWANA DISCOVERY PROFILE & OBSERVATIONS • FUTURE EXPLORATION: NEW FRONTIERS UNDER COVER?
  • 4. 3 DIAMOND EXPLORATION – WHAT INFORMATION IS REQUIRED? KIMBERLITE DISCOVERY PIPE SIZE DIAMOND GRADE DIAMOND QUALITY
  • 5. 4 MINE = ECONOMIC COMBINATION OF GRADE (CPHT), DIAMOND VALUE ($/CT) & TONNAGE (SIZE)
  • 6. 5 BOTSWANA: KIMBERLITE DISCOVERY PROFILE Kimberlite Field # NxauNxau 31 Okwa 8 Orapa 86 Gope 6 Khutse-kikao 24 Kokong 66 Martinsdrift 8 Jwaneng 35 Mabuasehube 9 Tsabong 103 Lekgodu 9 Kgatleng 11 Other 5 TOTAL 401 Mochudi, Orapa, Letlhakane Jwaneng, Damtshaa, Tsabong, Kokong Gope, CKGR Orapa, Lerala, NxauNxau, Sikwane, TNK Orapa, Jwaneng, Tsabong, Kokong, NxauNxau, KX36 Tsabong, Kokong 1980’s represented a particularly low period of investment in the diamond industry generally Period of limited discovery: Low greenfields exploration investment Botswana heavily explored – certainly in “easier terrains”, work in areas of residual potential is costly and technically challenging.
  • 7. 6 DISCOVERY PROFILE CONT…… NXAU NXAU KOKONG JWANENG TSABONG LERALA GOPE & CKGR ORAPA 400+ KNOWN KIMBERLITES IN BOTSWANA: • >85% ARE <90MA • 10% ARE BETWEEN 160MA - 240MA • ONLY 5% ARE >500MA
  • 8. 7 THE OBVIOUS KIMBERLITE FIELDS IN BOTSWANA HAVE PROBABLY ALREADY BEEN FOUND. WHERE WILL THE NEW DISCOVERIES COME FROM AND HOW WILL THEY BE MADE? West East m Kalahari Basement: Proterozoic & Archaean Limpopo Mobile Belt Ghanzi-Chobe Belt Karoo: sediments Karoo: basalt Kalahari • NEW FRONTIERS – COVER & GEOLOGY? • REVISIT KNOWN PIPES & FIELDS? • BIG COMPLEX PIPES? • SMALLER PIPES WITH HIGH QUALITY DIAMONDS? • NEW TECHNOLOGY OR INNOVATION TO “UNMASK” HIDDEN PIPES? SCHEMATIC WEST-EAST GEOLOGICAL SECTION ACROSS BOTSWANA WITH EXAMPLES OF KIMBERLITE INTRUSIONS OF KNOWN AGE RANGES.
  • 9. 8 APPLICATION OF GEOPHYSICS FOR DISCOVERY UNDER COVER (TSABONG EXAMPLE) CSAMT LOCAL GEOLOGY – NO OUTCROP REGIONAL AM 200m AM 100m AM GRADIOMETRY 20m GROUND MAGNETICS i. High resolution
  • 10. 9 AEM MAGNETICSGRAVITY APPLICATION OF GEOPHYSICS FOR DISCOVERY UNDER COVER (TSABONG EXAMPLE) ii. Multi-technique
  • 11. 10 TSABONG: DATA INTEGRATION, MODELLING, DRILLING & GEOLOGY Grey: Gravity model Red: Magnetic model (VOXI) Pink: EM 3D model CSAMTCSAMT PROFILE
  • 12. 11 • DIAMOND EXPLORATION FUNDAMENTALS • A sound understanding of the fundamentals of diamond exploration is critical…. • ….as is the development of good technical skills, competence & expertise. • BOTSWANA DISCOVERY PROFILE & OBSERVATIONS • Botswana remains prospective for new economic discoveries, but will require innovative approaches. • FUTURE EXPLORATION: NEW FRONTIERS UNDER COVER? • Advanced geophysics and associated technology is an important tool in the future of diamond exploration. • However, effective integration of data to understand the geology remains critical. SUMMARY