Tirisano 43-101_2010

2010
Tania R Marshall
Explorations Unlimited
Glenn A Norton
Rockwell Diamonds Inc
TECHNICAL REPORT ON THE
TIRISANO ALLUVIAL DIAMOND PROJECT,
(INCORPORATING THE NOOITGEDACHT 131, HARTBEESTLAAGTE 146 AND ZWARTRAND 145
PROPERTIES), VENTERSDORP DISTRICT,
REPUBLIC OF SOUTH AFRICA,
FOR
ROCKWELL DIAMONDS INC,
Effective Date: 30 November, 2010
Signature Date:

ROCKWELL DIAMONDS INC, KLIPDAM/HOLPAN MINE November 30, 2010
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Table of Contents Page
EXECUTIVE SUMMARY.......................................................................................................................................... 7
1 INTRODUCTION...........................................................................................................................................11
1.1 TERMS OF REFERENCE AND SCOPE OF WORK.......................................................................................................11
1.2 SOURCES OF INFORMATION..............................................................................................................................14
1.3 UNITS AND CURRENCY ....................................................................................................................................14
1.4 FIELD INVOLVEMENT OF QUALIFIED PERSONS ......................................................................................................14
1.5 USE OF DATA ................................................................................................................................................15
2 RELIANCE ON OTHER EXPERTS.....................................................................................................................16
2.1 LEGAL OPINION .............................................................................................................................................16
2.2 ENVIRONMENTAL...........................................................................................................................................16
3 PROPERTY DESCRIPTION AND LOCATION ....................................................................................................17
3.1 PROPERTY DESCRIPTION AND LOCATION..............................................................................................................17
3.2 PERMITS CONTRACTS AND AGREEMENTS.............................................................................................................18
3.2.1 Surface ownership / land use rights......................................................................................................18
3.2.2 Mineral rights (Mining/Prospecting Rights, permits, etc).....................................................................18
3.2.2.1 Royalty Payments..........................................................................................................................................20
3.3 BEE COMPLIANCE..........................................................................................................................................20
3.4 ENVIRONMENTAL...........................................................................................................................................20
3.4.1 Environmental Rehabilitation ...............................................................................................................20
3.4.2 Water permits.......................................................................................................................................22
3.5 SOCIAL AND LABOUR PLANS .............................................................................................................................22
3.5.1 Mine Closure Plans................................................................................................................................22
4 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ..............................24
4.1 TOPOGRAPHY, ELEVATION AND VEGETATION........................................................................................................24
4.2 ACCESS AND INFRASTRUCTURE..........................................................................................................................25
4.3 CLIMATE.......................................................................................................................................................26
5 HISTORY ......................................................................................................................................................28
5.1 PREVIOUS OWNERSHIP....................................................................................................................................28
5.2 PREVIOUS EXPLORATION/DEVELOPMENT............................................................................................................28
5.2.1 Historical...............................................................................................................................................28
5.2.2 Etruscan Resources (Pty) Ltd.................................................................................................................32
5.2.2.1 Etruscan Mvelaphanda Joint Venture...........................................................................................................33
5.2.2.2 Etruscan Diamonds (Pty) Ltd.........................................................................................................................34
6 GEOLOGICAL SETTING .................................................................................................................................37
6.1 GENERAL GEOLOGY AND MINERAL DEPOSITS OF SOUTH AFRICA .............................................................................37
6.2 THE ALLUVIAL DIAMOND FIELDS OF THE NORTH WEST PROVINCE ...........................................................................38
6.2.1 Morphotectonic Model .........................................................................................................................39
6.3 PROPERTY GEOLOGY.......................................................................................................................................45
7 DEPOSIT TYPES ............................................................................................................................................48
8 MINERALIZATION ........................................................................................................................................53
8.1 NATURE OF MINERALISATION...........................................................................................................................53
8.2 SURROUNDING ROCK TYPES/REGIONAL BEDROCK GEOLOGY ..................................................................................54
8.2.1 Post-Gondwana Geomorphology..........................................................................................................55
8.3 GEOLOGICAL CONTROLS ..................................................................................................................................57
8.4 MINERALISATION ON TIRISANO MINE ................................................................................................................59

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9 EXPLORATION .............................................................................................................................................60
9.1 REMOTE SENSING (SATELLITE IMAGERY / AERIAL PHOTO INTERPRETATION)...............................................................60
9.2 GEOPHYSICS..................................................................................................................................................60
10 DRILLING .....................................................................................................................................................66
10.1 DRILLING PROCEDURES AND PROTOCOLS ............................................................................................................66
10.2 LOCATION.....................................................................................................................................................67
10.3 RESULTS.......................................................................................................................................................70
10.3.1 Volume Estimation ...........................................................................................................................71
10.4 LIMITATIONS OF THE DRILLING PROGRAMME........................................................................................................72
10.5 REPRESENTATIVENESS .....................................................................................................................................72
11 SAMPLING METHOD AND APPROACH .........................................................................................................73
11.1 LOCATION.....................................................................................................................................................73
11.2 MINING/EXCAVATION OF SAMPLES....................................................................................................................80
11.3 SAMPLE PROCESSING AND FINAL RECOVERY........................................................................................................82
11.3.1 Contractor Processing.......................................................................................................................82
11.3.2 Etruscan Processing..........................................................................................................................84
11.3.3 Final Recovery...................................................................................................................................85
11.4 SAMPLING RESULTS........................................................................................................................................86
11.4.1 Grades ..............................................................................................................................................86
11.4.2 Diamond Values................................................................................................................................90
11.4.3 Diamond Size Distribution ................................................................................................................91
11.4.4 Representativeness...........................................................................................................................93
11.5 DRILLING, SAMPLING AND RECOVERY FACTORS.....................................................................................................93
11.6 SAMPLE QUALITY ...........................................................................................................................................95
11.7 REPRESENTATIVENESS .....................................................................................................................................95
12 SAMPLE PREPARATION, ANALYSES AND SECURITY......................................................................................96
12.1 SAMPLE SECURITY ..........................................................................................................................................96
12.1.1 Tracer Recoveries..............................................................................................................................97
13 DATA VERIFICATION....................................................................................................................................98
14 ADJACENT PROPERTIES .............................................................................................................................100
14.1 NOOITGEDACHT 131 IP (DEPROCLAIMED PORTION)...........................................................................................101
14.2 GOEDGEDACHT/KLIPGAT MINE.......................................................................................................................103
14.3 KRUGERSDAL MINE ......................................................................................................................................105
15 MINERAL PROCESSING AND METALLURGICAL TESTING.............................................................................106
16 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES.........................................................................107
16.1 RESOURCE ESTIMATION.................................................................................................................................108
16.1.1 Key Assumptions.............................................................................................................................108
16.2 RESERVE ESTIMATION ...................................................................................................................................110
16.3 PROSPECTING AND MINING RISKS....................................................................................................................111
16.3.1.1 In South Africa.............................................................................................................................................114
17 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT OR PRODUCTION PROPERTIES
115
18 OTHER RELEVANT DATA AND INFORMATION............................................................................................117
18.1.1 South African Economy...................................................................................................................117
18.1.2 The Mining Industry........................................................................................................................119
18.1.2.1 South African diamond production.............................................................................................................120
18.1.3 South Africa’s Mineral Legislative Environment.............................................................................121
18.1.3.1 Mineral Policy .............................................................................................................................................121
18.1.3.2 Mineral and Petroleum Resource Development Act 28 of 2002 (“MPRDA”)..............................................122

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18.1.3.3 Broad Based Black Economic Empowerment (BBBEE) and the Mining Charter..........................................123
18.1.3.4 The Minerals and Petroleum Resources Royalty Bill...................................................................................125
18.1.3.5 The Diamond Amendment Bill....................................................................................................................126
18.1.3.6 Diamond Export Levy Bill 2007 ...................................................................................................................127
18.1.3.7 Precious Metals Bill and the Beneficiation Strategy ...................................................................................128
18.1.3.8 Kimberley Process.......................................................................................................................................128
19 INTERPRETATION AND CONCLUSIONS.......................................................................................................130
20 RECOMMENDATIONS................................................................................................................................134
20.1 PROPOSED WORK PROGRAMME .....................................................................................................................134
20.2 PROPOSED BUDGET......................................................................................................................................134
21 REFERENCES ..............................................................................................................................................136
23 DATE AND SIGNATURE PAGE.....................................................................................................................140
24 CERTIFICATE OF AUTHORS.........................................................................................................................141
24.1 TANIA RUTH MARSHALL................................................................................................................................141
24.2 GLENN ALAN NORTON..................................................................................................................................143
Figures
Figure 1.1: Location of Rockwell owned properties in South Africa.................................................. 12
Figure 1.2: Corporate shareholdings of Rockwell .............................................................................. 13
Figure 3.1: Location of the Tirisano Project in the North West Province of South Africa ................. 17
Figure 3.2: Location of the Tirisano properties.................................................................................. 19
Figure 5.1: Location of previous prospecting activities (pre-2000) on Hartbeestlaagte (from
Berezowsky, 1998) ........................................................................................................... 31
Figure 6.1: The General Geology of South Africa............................................................................... 37
Figure 6.2: The alluvial diamond fields of the NorthWest Province .................................................. 38
Figure 6.3 Underground solution channels carved out by glacial meltwater during the Palaeozoic39
Figure 6.4 Enlargement of subterranean karst structures by subsidence and collapse................... 41
Figure 6.5 Geological Evolution of the Ventersdorp alluvial deposits.............................................. 42
Figure 6.6: Property Geology Map..................................................................................................... 46
Figure 7.1: Schematic stratigraphic model for the Ventersdorp alluvial diamond deposits ............. 49
Figure 8.1: Schematic development of dolines.................................................................................. 53
Figure 8.2: Generalised Geology of the Ventersdorp Area highlighting the importance of lithology
and structure in the location of important alluvial diamond deposits............................ 58
Figure 9.1: Extract from the 1996 photo interpretation by N Lockett, showing various
interrelationships between the gravel runs, lithology and structures............................. 61
Figure 9.2: Tirisano project residual gravity (250 m regional) (du Plessis, 2006) .............................. 63
Figure 9.3: Location of detailed geophysical grid (du Plessis, 2006) ...................................................................64
Figure 10.1: Location of all drillholes on the Tirisano project area. See Fig. 10.2 for detail of inset. 68
Figure 10.2: Additional (infill) holes drilled during 2008, within and to the north of Tirisano main pit
(see Fig. 10.1 for location of area) ................................................................................... 69
Figure 10.3: Contours of drill results showing gravel thicknesses ....................................................... 70
Figure 10.4: Method of resource volume estimation (courtesy A B Global, 2008) ............................. 71
Figure 11.1: Location of the bulk-sample pits on the Tirisano project ................................................ 74
Figure 11.2: Bulk-sample process flow-sheet (Courtesy of Etruscan).................................................. 83
Figure 11.3: Grade variation with depth in Pit #2................................................................................ 87
Figure 11.4: Average grade variation over the period of the 2006/7 bulk sampling........................... 89
Figure 11.5: Diamond Size distribution of the entire Tirisano diamond parcel (2006/2007).............. 91
Figure 11.6: Cumulative Size Frequency of the total data set ............................................................. 92
Figure 11.7: Average stone size distribution from the 2006/2007 resource study ............................. 92

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Figure 11.8: Schematic distribution of alluvial diamonds within an alluvial deposit – random
distribution of clusters of points (Rombouts, 1987)........................................................ 94
Figure 14.1: Location of prospecting/mining activities on properties adjacent to Tirisano.............. 100
Figure 16.1: The extremely low concentrations of diamonds, combined with low homogeneity results
insignificant difficulties in the evaluation of alluvial diamond deposits (after Lock, 2003)
........................................................................................................................................ 109
Figure 18.1: South African GDP growth rate Jan 2006 to Oct 2010 (www.tradingeconomics.com). 118
Figure 18.2: Expenditure of the South African Mining Industry, 2008 (Chamber of Mines, 2009
Annual Report)............................................................................................................... 120
Figure 20.1: Planned prospecting for the Tirisano mine property during 2011 ................................ 135
Tables
Table 3.1: Summary of Mining Right................................................................................................. 20
Table 3.2: Summary of rehabilitation guarantees held by Etruscan................................................. 21
Table 5.1: Resources estimated for the Tirisano project as at 31 October 2009 ............................. 35
Table 8.1: Simplified Stratigraphy of the North West Province (SACS, 1980) .................................. 55
Table 11.1: Recovered grades for the 2006/2007 bulk-sampling programme (cut-off size 1.6mm) . 88
Table 11.2: Individual stones with values greater than USD2000/ct.................................................. 90
Table 16.1: Resource statement as at 30 November 2010............................................................... 110
Table 18.1: Economic indicators for South Africa (October 2010) ................................................... 117
Plates
Plate 4.1: View of the flat landscape between Hartbeestlaagte and Zwartrand (looking SE). Photo
courtesy of Etruscan Diamonds (Pty) Ltd......................................................................... 24
Plate 5.1: Artisanal diggings along the Nooitgedacht – Zwartrand Run. The diggings in the
background are situated where the Tirisano main pit is now located. (Photo courtesy of
Etruscan Diamonds (Pty) Ltd)........................................................................................... 29
Plate 6.1: Rafts of Waterberg karst infill in the dolomite wallrock of Tirisano Main Pit.................. 42
Plate 6.2: Vertical unit of LGP gravel draping the dolomite bedrock and overlain by thick pebble-
clay (PCP) infill (Photo from Goedgedacht 27, Courtesy Gothoma CC)........................... 43
Plate 6.3: Thickening of the Kalahari Sands over a pothole (photo from Roodepan 180, courtesy
Batton Mining (Pty) Ltd)................................................................................................... 44
Plate 6.4: Intersecting fractures and the large sinkhole at the Tirisano main pit (aerial view from
the southeast, courtesy of Etruscan) ............................................................................... 45
Plate 6.5: Silicic ridges (remnants of the Giant Chert Formation ?) that traverse the property and
have an effect on gravel deposition................................................................................. 47
Plate 7.1: General Stratigraphy as seen on Hartbeestlaagte ........................................................... 49
Plate 7.2: Overburden sequence of Kalahari clays and Hutton Soils ............................................... 51
Plate 7.3: Hutton Sands overlying (manganese) cemented colluvial gravels .................................. 52
Plate 8.1: Supergene enriched manganese wad development (defunct Rand London Manganese
Mine on Roodepan 180 IP, Ventersdorp district) ............................................................ 57
Plate 10.1: RC Drill-rig used by Etruscan on the Tirisano project (photo courtesy of Etruscan)........ 66
Plate 10.2: Sample-board preparation at the Etruscan warehouse in Ventersdorp.......................... 67
Plate 11.1: Location of Bulk-sample Pit # 1 (Tirisano South Pit) adjacent to the south of the Tirisano
Main pit. Photo facing south with Tirisano Diamond Mine in the foreground............... 75
Plate 11.2: Pit # 2A ............................................................................................................................. 76
Plate 11.3: Stratigraphic succession in Pit #2B.................................................................................. 76

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Plate 11.4: Supergene manganese enrichment of the LGP unit in Pit # 3 ......................................... 77
Plate 11.5: Upper Gravel Package as sampled from Pit 3A................................................................ 78
Plate 11.6: UGP gravels typical of pits 5C and 8................................................................................. 79
Plate 11.7: Colluvial gravels from Pit #9 (Courtesy P Mhlungu, Etruscan)......................................... 79
Plate 11.8: Stratigraphy at Pit#6 ........................................................................................................ 80
Plate 11.9: Mining activities on Hartbeestlaagte (ALS Contractors in Pit #6).................................... 81
Plate 11.10: DMS plant on Tirisano, through which sample material from Pit#6 were processed..... 84
Plate 11.11: Weighing, recording and sealing of diamonds in secure transparent envelopes............ 85
Plate 14.1: Artisanal operation to the north of the Tirisano Mine on the Nooitgedacht Deproclaimed
area. Photo courtesy of Etruscan, view from the north................................................ 101
Plate 14.2: Manganiferous colluvial deposits mined on Nooitgedacht ........................................... 102
Plate 14.3: Lower gravels (LGP) being mined on Nooitgedacht, below old diggers heaps.............. 102
Plate 14.5: Klipgat Mine, as operated by Gothoma for Etruscan Diamonds (Pty) Ltd during 2000-
2006 (Courtesy, Etruscan Diamonds)............................................................................. 103
Plate 14.6 Gothoma’s (2007) operations – mining lower gravels from a deep sinkhole................ 104
Plate 14.7: Mining operation on S A Gemstone’s Morgenzon property (2004) .............................. 105
Plate 20.1: Upgrading the infrastructure on Tirisano ...................................................................... 116
Units and Abbreviations
Unit Description
Ma Millions of Years before Present
ct Carat(s)
ct/st Carats per Stone
ct/100m3
Carats per 100 cubic metres
cpht Carats per 100 Tonnes
tph Tonnes (metric) per hour
m Metres
M Million
SG Specific Gravity
BBBEE Broad Based Black Economic Empowerment (the more correct term of the
usually shortened BEE (Black Economic Empowerment) and used in this report
DMR Department of Mineral Resources (Previously known as Department of
Minerals and Energy (DME))
DWAF Department of Water and Forestry
DTM Digital Terrain Model
QP Qualified Person, as defined by National Instrument 43-101
CP Competent Person, as defined by SAMREC
DMS Dense Media Separation plant
Bottom cut-off Bottom cut-off refers to the smallest size diamond (in mm) that is recovered in
the sampling and mining process – in this case, no diamonds smaller than 2mm
are recovered.
JSE Johannesburg Stock Exchange
OTCBB Over-the-Counter Bulletin Board
TSX Toronto Stock Exchange

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EXECUTIVE SUMMARY
Explorations Unlimited (EU) was retained by Rockwell Diamonds Inc (“Rockwell”) to prepare a Technical
Report for the Tirisano project. This technical report, comprising background information, drill and
sample data derived from the property up to 30 November 2010, is prepared to document the results of
exploration work and the resource estimate on the Tirisano property as summarized in the Company’s
Annual Information Form for the 2011 fiscal year.
This Technical Report has been compiled in accordance with the NI 43-101 Standards of Disclosure for
Mineral Projects. The resource estimate has, further, been prepared in agreement with the South
African code for Reporting of Mineral Resources and Mineral Reserves (the SAMREC code). The Tirisano
project, which includes the Tirisano Diamond Mine, was put on Care & Maintenance on 25 November
2008 and the associated infrastructure and mine plan described here reflects the project status as at
this date. The conclusions expressed in this independent resource estimate are appropriate as at 30
November 2010. The estimate is therefore only valid for this date and will change in response to
ongoing exploration and production results as well as with variations in economic, market, legal, social
or political factors.
The Resource properties, on which this technical report is based, are:
Nooitgedacht 131 IP (“Nooitgedacht”)
• Portions 1,2,3,5,7,11,R/E farm
• Tirisano main pit (portions 8 and 9)
Hartbeestlaagte 146 IP (“Hartbeestlaagte”):
• Portions 1, 2, 3 and the Remaining Extent (R/E farm)
• Deproclaimed Area
Zwartrand 145 IP (“Zwartrand”)
• Various portions
These properties (totalling 10,805.57ha) are located some 35km due north of the town of Ventersdorp,
in the Northwest Province approximately 150km west of Johannesburg. The project is well located
within the alluvial diamond fields of the North West Province. The total reported production from these
diamond fields from 1904-1984 is estimated at 14.4 million ct, which would have a present day value of
over USD 5 Billion. Mining from the Tirisano project, by open cast methods has taken place from 2002 –
2008 (intermittent prospecting and bulk-sampling activities have been taking place since 1979,
however).
The Remaining extent of Portion 8 (Ptn of Ptn 3) of Nooitgedacht 131, the portion of property on which
the Tirisano main pit is situated is owned by Etruscan – the other portions of Nooitgedacht are owned
by various private individuals. The Bakwena Ba-Mogopa Trust are the owners of the surface rights to
the Hartbeestlaagte and Zwartrand properties The mineral rights to the Property belong to the State.
The Mining Right to all the properties was signed on 30 September 2008 and submitted for registration
on 1 October 2008. Etruscan’s mineral holdings on this project are summarised below:
Property Portion Mineral Right
Nooitgedacht
Portions 1, 2, 3, 5, 7, 8, 9, 11,
R/E farm
Mining Right, 2/2008
NW 30/5/1/2/2/345MP
Hartbeestlaagte 1,2,3,Re/farm, Deproclaimed
Zwartrand Various

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Due to the karst-hosted nature of the deposits on the properties, concurrent mining and complete
rehabilitation is not possible (as the sinkholes have to be mined out totally before they can be
rehabilitated). In this situation, the approved Environmental Management Programmes allow for the
excavation of much of the gravel resource before rehabilitation is finalised. Environmental
rehabilitation guarantees, to a total of ZAR15,026,979 (USD1,878,372.38)have been lodged with various
institutions to comply with statutory requirements.
The preferred geological model is one of deposition in a karst environment where the dolomite walls of
the host-rock are vertical; the mode of gravel deposition is not typical fluvial alluvial; periodic
subsidence has taken place during deposition; and deposition has taken place over a long time (since, at
least, the Mesozoic) resulting in a build-up of a very thick gravel sequence. The gravel stratigraphy
comprises an upper gravel horizon (UGP) and a lower gravel unit (LGP) that are both economically
diamondiferous, separated by a sub-economic fine-grained pebble-clay unit (PCP). The LGP, which is
characterized by a predominance of quartzite over chert clasts, may be clay-rich or clay-poor, with the
clay-poor varieties being the primary exploration target due to their higher average grades.
Mineralisation is confined to the gravel packages in-filling karst caverns etched out of the chert-rich
dolomites of the Malmani Group. The clay-poor Lower Gravel Package and Upper Gravel Package units
are considered to be the major exploration targets as the diamond grades encountered in these units
have, historically, supported commercial mining ventures. Although elevated grades have also been
associated with the colluvial manganese nodule layer – this unit is not everywhere present on the
property and is, therefore, not considered as part of this study.
The airborne and ground gravity surveys (and supported by extensive drilling) indicates that the karst
system trends roughly in a NW-SE direction across the properties, and is offset by a number of
structural features. There appear to be a succession of sinkholes connected by a series of linkage
channels (which pattern is typical of allogenic streams). The overall length of the karst system is in
excess of 6,000 m. Widths of the channels are seen to vary from 135-385 m.
To date, 2,391 boreholes have been drilled on the property, totalling 53,576m. The deepest drilling
indicates that, in some of the deeper sinkholes, the lower gravels extend down, at least, to 140m
(without intersecting bedrock). Geophysical interpretation, however, indicates that final depths of the
sinkholes may be in excess of 120m and, potentially, up to 200m in places. Eleven bulk-samples (Pits 1,
2 (A, B, and C), 3, 3A, 5C, 6, 7, 8 and 9) provided 147,895.88m3
of Lower Gravels (LGP), including
Transition Zone gravels (TZP) from which 4,318.6ct were recovered for a global grade of 2.85ct/100m3
(with bottom cut-off of 1.6mm) and value of USD466/ct. In addition, 129,557.46m3
of Upper Gravels
(UGP) was processed to recover 2,292.00ct at an average grade of 1.77ct/100m3
.
During 2008, mining by Etruscan processed gravels from the base of the Tirisano main pit in preparation
for a pre-feasibility study. A total of 208,718m3
was processed, of which 146,881m3
is LGP, 10,293m3
is
UGP and 61,534m3
is a blend of both UGP and LGP. During this period, some 6,459.98ct were recovered
(1,042.96ct from LGP gravel and 5,417.02ct from the undifferentiated gravels) from the Tirisano main
pit. The average recovered grade of these gravels was 2.43ct/100m3
(2.00ct/100m3
and 2.54ct/100m3
,
respectively). The drop in average grades for this period is thought to be the result of continuing
(increasing?) process recovery problems. Consequently, the average grades determined by the bulk-
sampling programme were accepted for the Tirisano resource model until further mining at greater
depth shows any differences in the trend. During the period January – June 2008, a total of 5,552.54ct
were sold to various diamond buyers on the open market for an average of USD606/ct.
During this time, mining was confined to the Tirisano main pit on Nooitgedacht. Excavation (and
rehabilitation) was done under contract to ALS Contractors (Pty) Ltd. Mineral processing was through
two DMS plants (Bateman DMS at 40tph and Manhattan DMS at 50tph) as well as two new rotary pan

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plants. Final recovery was through an X-Ray (FlowSort) system and hand-sort in a secure glove-box.
Operations highlighted a number of technical issues that needed to be addressed in the on-going mining
programme:
• There are continuing issues with processing efficiencies as a result of clay and manganese in the
gravels that need to be resolved through a detailed investigation of the gravel metallurgy as well as
the processing methodology/equipment.
• Due to the almost random variation in sedimentological horizons within the gravel unit, production
data (specifically grade) must be observed continually and reconciled with modelled figures. The
geological model also needs to be monitored and refined as operations expose sinkhole fill at depth.
• Sustained attention should be given to finding ways to differentiate between the various gravel
horizons in borehole logs, including geochemical and mineralogical studies.
• Since these deposits are “high-volume, low-grade” operations, much effort will be required to
replace mined gravels. Consequently, an on-going regional exploration programme will need to be
pursued to identify and evaluate additional, similar deposits.
• Sustained attention should be given to finding ways to differentiate between the various gravel
horizons in borehole logs, including geochemical and mineralogical studies.
Although it was planned for the mine to begin production in 2010, Rockwell decided to re-engineer the
entire concentration and recovery process before putting the mine back into production. Numerous
mineralogical and metallurgical studies were initiated in order to determine the most effective
methods for processing the clay-rich gravels that, heretofore, have resulted in recovery inefficiencies
During 2011, trial-mining and continued pre-feasibility studies will determine the mine-plan which will
be implemented to put the Tirisano mine back into full production. During this time, it is expected that
the planned modifications to the plant would result in improved grade recoveries. Further, the sale of
at least 5,000cts on the open market (through the tender system at Flawless Diamond Trading House
(Pty) Ltd) will result in a realistic, current valuation of the diamonds. At that stage, the results of the
pre-feasibility study will be presented in a technical report.
No additional work was completed on the mineral resource estimate. Until additional drilling and
mineral processing has taken place by Rockwell, this study has accepted the resource estimate declared
in the NI43-101 technical report produced as at October 2009. The resource estimate was estimated by
T.R. Marshall, PhD, (Pr. Sci. Nat.), a qualified person who is independent of both Etruscan and Rockwell
and is responsible for the estimate. The result of the resource estimation is below.
As can be seen, the existing volumes, grades and values have been accepted until further bulk-sampling
and trial-mining by Rockwell can confirm or show differences due to upgraded processing facilities.
Since no diamonds have been sold from the Tirisano mine, no current values are available.
Nevertheless, sales values of diamonds from the district are in the USD700/ct range, which is also what
management has modelled that they would be expected to average during 2011.
Indicated Resource
volumes (m3
)
Inferred Resource
volumes (m3
)
Grade
(ct/100m3
)
Value
(USD/ct)
Upper Gravel Package 16,109,000 8,613,500 1.77
Lower Gravel Package 11,801,500 6,744,000 2.85
Sub-total 27,910,500 15,357,000 2.37
Depleted during
2007/2008 sampling
-2,365,000 -23,000

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SUBTOTAL 25,545,500 15,334,000
Depleted during 2008
mining on Tirisano
-265,658 2.43 606
TOTAL 25,279,800 15,334,000 2.37 606
In addition to the Indicated and Inferred Resources for the project, exploration targets exist in large
areas of both the LGP and the UGP units. Although some drilling and sampling has taken place in these
areas, the results are insufficient to be categorized as a resource. Target areas include
• Some 35,000m3
of (LGP) gravel estimated to exist in the sinkholes below the present level of
Inferred Resources (at 105m), down to the extent of drill data;
• Some 184,000m3
of gravel within the modelled gravel wireframe, but which does not fall within
the inferred categories due, primarily, to lack of borehole coverage;
• The estimated, additional, +5Mm3
of (LGP) gravel that is modelled to exist in the sinkholes, if a
more geologically reasonable shape is accepted (although not yet defined by drilling);
• An undefined amount of gravel, specifically southeast of the currently inferred resource area,
where gravel is seen to exist (from borehole results), but drill coverage and sampling constraints
prevent these from being included within defined resources;
• An indefinable volume of (LGP) material that is located below the present drilling level in the
sinkholes. Geophysical modelling cannot be used to identify the base of the bedrock in these
structures with any accuracy, and drilling has not penetrated the thick gravels. As a result, it has
not been possible to estimate the volume of gravels;
• The “West Run” on Nooitgedacht and Hartbeestlaagte has not yet been drilled or sampled. Some
200ha of area may be underlain by both UGP and LGP gravels.
The author believes that, notwithstanding the problems inherent in resource/reserve estimations in
alluvial diamond deposits, the results to date are sufficiently encouraging to permit production mining
from the Indicated Resource areas.
During 2011, the emphasis will be on completing the trial-mining/pre-feasibility study in preparation for
putting the Tirisano project into full production. Further to the trial-mining, additional drilling of UGP
gravels on the western portion of the mine property (500 holes, 5,000m) will be undertaken to increase
confidence in the resources in this area, along with a ground geophysical survey comprising some 2,000
points. A total of R60M has been budgeted by Rockwell for capital expenditure to bring the Tirisano
Project into production (to end February 2012), of which R30M has been spent to end February 2011,
improving infrastructure, re-engineering and re-establishing the processing facilities, transporting earth-
moving equipment to site (from where they were superfluous on Rockwell’s other operations), internal
re-interpretation of existing data as well as detailed technical audits of some of the
metallurgical/processing issues identified during a technical due diligence. Over and above the CAPEX
requirements, Rockwell has budgeted some ZAR 4.5M/month for the trial-mining, processing some
90,000m3
until June 2011 and ramping up to full production test-mining from July 2011. The
exploration budget comprises ZAR400,000 for the ground geophysical survey and ZAR4.9M for the
drilling programme (ZAR1.3M for exploration holes and ZAR3.6M for geotechnical purposes).
The author has considered the proposed programme and budget and agrees they are appropriate for
this stage of the project.

Page 11
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 Tirisano in the Ventersdorp District of the North West Province,
South Africa. This technical report, comprising background information, drill and sample data, including
the bulk-sampling and trial-mining programmes1
,derived from the property up to 30 November 2010, is
prepared to document the results of exploration work and the resource estimate on the properties as
summarized in the Company’s Annual Information Form for the 2011 fiscal year.
Rockwell signed a term sheet with Etruscan Diamonds Limited (“Etruscan”) whereby2
the Company
proposes to purchase Etruscan's Blue Gum diamond operation in the Ventersdorp region of South
Africa. The acquisition is for 74% of the operation with the balance owned pursuant to South Africa's
Black Economic Empowerment regime. The price to be paid to Etruscan is an amount not exceeding
ZAR 33.5 million (approximately C$4.65 million) payable in Rockwell shares valued at C$0.068 each. The
Company will also assume certain non-material property maintenance obligations effective immediately
and other financial obligations upon completion of the acquisition. The Blue Gum alluvial diamond
deposit hosts3
indicated mineral resources of 25 million m3
at 2.37ct/100m3
and inferred resources of
15 million m3
at 2.37ct/100m3
as at October 2009.
Completion of the acquisition is subject to a number of conditions including South African mining
ministry consent, securities regulatory approvals including TSX, satisfactory due diligence and project
development financing and electric power negotiations. The Rockwell shares to be issued will be
subject to escrow, resale and voting restrictions and will not materially affect control. Completion is
waiting only on the issuing of a Section 11 cession by the Department of Mineral Resources, which is
targeted for early 2011.
This technical report comprises background information, drill and sample data derived from the
property up to 25 November 2008, when it was placed on Care & Maintenance. The conclusions
expressed in this technical report are appropriate as at 30 November 2010. The estimate 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.
Five documents, dealing with some or all of the Tirisano project properties, have been filed on
www.sedar.com:
1
In this document, bulk-sampling is taken to be the initial period of sampling during which reconnaissance targets
are investigated and inferred resources are identified, typically, the first one or two years of prospecting (in the
case of Tirisano, the period during which it was owned/operated by Etruscan). Thereafter, as the programme
expands to estimate significant indicated resources, this is defined as the trial-mining period. Further, it is during
this trial-mining, which may extend over another two-three years, that the relevant mining, processing and other
economic factors are evaluated that may, ultimately, lead to the conversion of the indicated resources to probable
reserves through a Pre-Feasibility Study. Due to the time covered by the trial-mining, the ensuing Pre-Feasibility
Study is conducted in-house, by relevant qualified Rockwell personnel, supervised by both independent and non-
independent QP’s.
2
News Release, 11 March 2010
3
Technical Report on the BlueGum Alluvial Diamond Project, Ventersdorp district, Republic of South Africa, effective
date October 31, 2009 by T R Marshall.

Page 12
• Independent Resource Estimate of Diamondiferous Gravels at the Tirisano Mine of Etruscan
Resources Inc. Estimation Date 23 January 2003. Prepared by N Lock, A van der Merwe and M
Sperinck of RSG Global Pty Ltd
• Technical Report on the Hartbeestlaagte Alluvial Diamond Property, Republic of South Africa and
dated October 31, 2006, by T R Marshall of Explorations Unlimited.
• Technical Report on the BlueGum Alluvial Diamond Project (Nooitgedacht 131, Hartbeestlaagte 146
and Zwartrand 145 properties), Ventersdorp district, Republic of South Africa, effective date 31
December, 2007 by T R Marshall of Explorations Unlimited .
• Technical Report on the BlueGum Alluvial Diamond Project (Nooitgedacht 131, Hartbeestlaagte 146
and Zwartrand 145 properties), Ventersdorp district, Republic of South Africa, effective date June 30,
2008 by T R Marshall of Explorations Unlimited.
• Technical Report on the Tirisano Alluvial Diamond Project, (Nooitgedacht 131, Hartbeestlaagte 146,
And Zwartrand 145 Properties), Ventersdorp District Republic of South Africa (effective date of 31
October 2009) by T R Marshall of Explorations Unlimited.
Rockwell, listed on the TSX (RDI), the JSE (RDI) and the OTCBB (RDIAF), is a company involved in the
exploration and mining of alluvial diamond deposits. In South Africa (Fig. 1.1; 1.2), Rockwell and its
wholly-owned subsidiary Rockwell Resources RSA (Pty) Ltd (Rockwell RSA) owns, and Rockwell RSA
operates, the Klipdam/Holpan mines (Barkly West), has operated the Wouterspan mine (currently on
Care & Maintenance) and owns the Makoenskloof Prospect (Middle Orange River) through a 74%
shareholding in HC Van Wyk Diamonds Limited. Further, Rockwell and Rockwell RSA also operate the
Saxendrift and Niewejaarskraal mines through a 74% shareholding in Saxendrift Mine (Pty) Ltd.
Figure 1.1: Location of Rockwell owned properties in South Africa

Page 13
Explorations Unlimited is a South African based exploration consultancy owned by Dr Tania R Marshall
and 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 valuation of alluvial diamond mineral properties. This Technical Report for the Project was
prepared 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. Rockwell has accepted that the qualifications, expertise, experience, competence,
independence and professional reputation of Dr Marshall are appropriate and relevant for the
preparation of this Report.
Figure 1.2: Corporate shareholdings of Rockwell
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 G A Norton who is the Mineral Resource Manager for Rockwell
Diamonds Inc. Mr Norton has over ten years experience in the exploration and exploitation of alluvial
diamonds throughout Africa (and has specific experience with the Tirisano Mine from January 2001 to
December 2006) and is Rockwell’s in-house Qualified Person.
This Technical Report has been prepared in accordance with the NI 43-101 Standards Of Disclosure For
Mineral Projects, the NAPEGG guidelines for the Reporting of Diamond Exploration Results, Identified
Mineral Resources and Ore Reserves and the Best Practice Guidelines prepared by the Canadian
Rockwell
Diamonds Inc
(RDI-TSX/JSE)
Rockwell
Resources RSA
(Pty) Ltd
Saxendrift
Mine (Pty)
Ltd
("SAX")
Saxendrift Mine
Niewejaarskraal Mine
Zwemkuil Project
H C Van Wyk
Diamonds Ltd
("HCVWD")
Holpan Mine
Erf 1, Erf 2004
Wouterspan Mine
Rietputs Project
Klipdam
Mining
Company Ltd
("KDMC")
Klipdam Mine
Etruscan
Diamonds
(Pty) Ltd
Bluegum
Diamonds
(Pty) Ltd
Tirisano Mine

Page 14
Institute of Mining and Metallurgy and Petroleum (CIM) to assist the Qualified Person(s) (QP) in the
planning, supervision, preparation and reporting of Mineral Resource and Mineral Reserve (MRMR)
estimates, as well as the Estimation of Mineral Resources and Mineral Reserves Best Practice
Guidelines, Canadian Institute of Mining and Metallurgy (May 4, 2008). The resource estimate has,
further, been prepared with reference to the South African code for Reporting of Mineral Resources and
Mineral Reserves (the SAMREC code). In particular, the SAMREC Code provides guidelines for the South
African diamond industry. The SAMREC Code has also been incorporated into the Johannesburg Stock
Exchange (JSE) Listings Rules. Since Rockwell is dual listed in both Canada and South Africa, reference
will continually be made to both CIM and SAMREC resource estimation codes (with CIM taking
preference, as the Rockwell’s primary listing is the TSX).
1.2 Sources of Information
The comments and recommendations in this report, specific to the Tirisano mine property, are based,
primarily, on information and technical documents supplied by Rockwell. Underlying legal contracts,
permissions and agreements have not been reviewed by the author. Other technical/scientific papers
and miscellaneous documents referred to are identified within the text or have been referenced in
Section 21.
Since Dr Marshall was not on the project site for the full period of the site establishment, much reliance
was placed on the technical management of Rockwell who provided technical 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.
For the description of the ground and airborne geophysical surveys, the author has relied upon the
expertise and reports (2003; 2006) of Alten du Plessis (Pr. Sci. Nat.), who is well qualified in this matter.
Mr du Plessis has 10 years experience as a geophysicist, with particular expertise in both ground and
airborne gravity surveys.
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 (R) and United States
Dollars (USD), for which a nominal exchange rate of USD1 = R7 has been used. Diamond sales values are
expressed in United States Dollars.
1.4 Field involvement of Qualified Persons
Recent site visits to the properties that comprise the Tirisano project were undertaken by T R Marshall
on 31 May and 28-29 July, 2010. During these visits, audits were made of technical and administrative
procedures and 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 that gained from prior
investigations of this and other nearby deposits was also drawn upon as required. Mr Norton is
Rockwell’s Mineral Resource Manager and, as such, visits the Tirisano mine on a weekly basis.

Page 15
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.

Page 16
2 RELIANCE ON OTHER EXPERTS
2.1 Legal Opinion
An opinion regarding the underlying legal contracts, permissions and agreements has been provided by
Chris Stevens (director) of Taback & Associates (Pty) Ltd on 7 December, 2010 – Title Opinion in respect
of the prospecting and mining and mineral rights of Etruscan Diamonds (Pty) Ltd.
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 3.3
2.2 Environmental
The Environmental Management Programme was prepared for Etruscan by Babalwa Fatyi of Myezo
Environmental Management Services cc in 2009. Much of the information regarding rehabilitation and
environmental issues were summarised from this document.

Page 17
3 PROPERTY DESCRIPTION AND LOCATION
3.1 Property description and location
The Tirisano Project, located in the North West Province of South Africa (Fig. 3.1) is comprised of a
central core of properties on which Etruscan is prospecting diamondiferous gravels. These properties
(totalling 10,805.57ha) are located some 35km due north of the town of Ventersdorp, in the Northwest
Province approximately 100km west of Johannesburg. The company also has active prospecting
licenses on numerous other properties in the district.
Figure 3.1: Location of the Tirisano Project in the North West Province of South Africa
The Resource properties (with a total area of 9,988.3778ha), on which this technical report is based,
are:
Nooitgedacht 131 IP
• Portions 1,2,3,5,7,11,R/E farm
• Tirisano Main Pit (portions 8 and 9)
Hartbeestlaagte 146 IP
• Portions 1, 2, 3 and the Remaining Extent (R/E farm)
• Deproclaimed Area
Zwartrand 145 IP
• Various portions excluding the Mogopa village and the African & Asian claim blocks

Page 18
The Nooitgedacht Property is 4,958.15ha in size (WGS84 35S co-ordinates A, B, C, and H, identified on
Fig. 3.2). Included within the property boundaries, but not part of the project is the “Deproclaimed
area” (some 14ha in extent). This portion is not part of the Tirisano project as the rights are held by the
landholder who is also mining on the property. The original Tirisano Mine area (611.56ha) is located on
portions 8 and 9 of the greater farm Nooitgedacht.
The Hartbeestlaagte Property is 4,009.33ha in size (C, F, G, and H on Fig. 3.2). The “Deproclaimed area”
(some 68.47ha in extent), is included within the boundaries of the greater farm Hartbeestlaagte and
forms part of the project. The Zwartrand Property is located adjacent to the east of Hartbeestlaagte, is
1,226.53ha and bounded by C, D, E, F. However, due to the location of the Mogopa Village on
Zwartrand and the exclusion of the African & Asian claims, the effective area available for prospecting
(1,020.90ha) is limited to F, I, J, K, L (Fig. 3.2).
3.2 Permits contracts and agreements
3.2.1 Surface ownership / land use rights
The Remaining extent of Portion 8 (Ptn of Ptn 3) of Nooitgedacht 131, the portion of property on which
the original Tirisano main pit is situated, is owned by Etruscan4
. The other portions of Nooitgedacht are
owned by various private individuals. The Bakwena Ba-Mogopa Trust is the owner of the surface rights
to the Hartbeestlaagte and Zwartrand properties and has held the land since 1922. A sum of
R66,965.31 is payable to the Mogopa Trust as a monthly land rental cost.
The mineral rights to all the properties belong to the State (since May 2004). Prior to that, the rights
were held by the Bakwena Ba-Mogopa Trust, although numerous parties have held options over various
portions of the properties in order to complete the exploration programmes outlined in Section 5.
3.2.2 Mineral rights (Mining/Prospecting Rights, permits, etc)
Up until 2008, the rights to the properties comprising the Tirisano project were held through various
separate permits and rights (Table 3.1). In order to simplify matters and move the operation forward
under a single permit, Etruscan compiled a new order mining right application so as to include all the
relevant portions of Nooitgedacht, Hartbeestlaagte and Zwartrand. The new Mining Right, applied for
in the name of Etruscan Diamonds (Pty) Ltd was granted on 30 September, 2008, after having been
ceded to Blue Gum Diamonds (Pty)Ltd on 12 August 2008. Unless this mining right is suspended,
cancelled or abandoned or lapses, it will be valid for a period of seven years, until 29 September 2015
(further renewals of up to 30 years5
each are allowed after the initial period has expired). The mining
right (NW/3/5/MR) was lodged for registration at the Mineral and Petroleum Titles Registration office in
Pretoria on 1 October 2008.
The Mining Right in the name of Blue Gum Diamonds (Pty) Ltd is subject to a Section 11 change-of
ownership application in terms of the MPRDA. The required documentation was submitted to the DMR
on 28 May 2010 and the cession is expected in early 2011. Until the cession is complete, Rockwell
operates as a mining subcontractor.
4
Under the terms of the agreement with Etruscan, Rockwell will assume ownership of this land as well.
5
MPRD Act 28 of 2002, Section 24(4)

Page 19
Figure 3.2: Location of the Tirisano properties

Page 20
Table 3.1: Summary of Mining Right
Property Portion Hectares
New Order
Mining Right
Nooitgedacht 131
Farm, excluding
Deproclaimed area
(14ha)
4,958.15
Mining Right (Protocol
02/2008 and file
NW/345/MR) granted
and executed on 30
September 2008 and
valid, until 29
September 2015.
Subject to Section 11
cession to Rockwell
Hartbeestlaagte 146
1,2,3,Re/farm
including the
Deproclaimed area
4,009.33
Zwartrand 145
Various portions,
excluding the
Mogopa village and
claim blocks
1,020.90
3.2.2.1 Royalty Payments
In terms of the Mining and Petroleum Royalties Act, royalties are payable from March 1, 2010. The
deadline for the registration of mining and minerals firms, under the Act, had closed on January 29. In
compliance with this requirement, Rockwell has registered as a royalty payer with the South African
Revenue Service (“SARS”).
3.3 BEE Compliance
The 26% Black Economic Empowerment (BEE) partner on Tirisano mine is Mogopa Blue Gum (Pty) Ltd,
which is owned by Mogopa Minerals (Pty) Ltd (“Mogopa”). The Mogopa community has about 350
families and is located in the vicinity of the mining area. The formal terms of the venture between
Rockwell and Mogopa remain, essentially, the same as with Etruscan6
. In addition, many of the
properties acquired by Rockwell from Etruscan (as part of the Tirisano deal) which are not suited to
Rockwell's bulk-mining methods will be ceded to the Mogopa.
3.4 Environmental
3.4.1 Environmental Rehabilitation
Due to the nature of the deposits on the properties, concurrent mining and complete rehabilitation is
not possible. In this situation, the approved environmental management plans (EMPlans) allow for the
excavation of much of the gravel resource before rehabilitation is finalised. In preparation for this,
topsoil is removed separately and strategically deposited where it will not be contaminated or mixed
with the gravels. As soon as possible, mined-out trenches are completely backfilled, the topsoil is
6
See section 3.4 of Technical Report on the Tirisano Alluvial Diamond Project, (Nooitgedacht 131, Hartbeestlaagte
146, And Zwartrand 145 Properties), Ventersdorp District Republic Of South Africa (effective date of 31 October
2009) by T R Marshall of Explorations Unlimited.

Page 21
replaced and the area is re-vegetated. In terms of the available EMPlan information, however, bulk-
sample excavations may be left open if the project applies for a Mining Right and only need be
rehabilitated finally under the Mining Environmental Management Programme (EMPR).
During the upgrading of the old order prospecting permit to an old order mining permit in 2002, a
Standard Environmental Management Programme (SEMP) was compiled for the Tirisano Diamond Mine
by Digby Wells and Associates. It was approved in June 2003 and continued in force while the new
order rights and their associated environmental documents were finalised. Further, the existing,
approved EMPlans for Hartbeestlaagte and Zwartrand also remained in place until the new order
Mining Right was issued.
In 2008, an Environmental Impact Assessment was conducted over the area under application by the
new order Mining Right and, subsequently, an EMPR was compiled by Myezo Environmental
Management Systems CC. The EMPR was approved by the Department of Mining and Mineral Resource
(DMR) on 30 September 2008. In compliance with the approved EMPlans, Etruscan had lodged various
financial rehabilitation guarantees lodged with recognised financial institutions (Table 3.2). In terms of
Rockwell’s agreement with Etruscan, these guarantees will be ceded to Rockwell.
Table 3.2: Summary of rehabilitation guarantees held by Etruscan
Issued by Guarantee # Guarantee amount Property
Nedbank 19037201 15,000.00 Hartbeestlaagte
Subtotal 715,000.00
Nedbank 22654518 101,140.00 Nooitgedacht
Lombard’s Insurance group M-24671 13,092,739.00 Tirisano Mine
Subtotal 13,661,979.00
Nedbank 26484609 50,000.00 Zwartrand
Subtotal 650,000.00
TOTAL 15,026,979.00
The total amount held in guarantee is R15,026,979. According to the approved EMPR, this sum includes
financial provision for mine closure. The various Nedbank guarantees are held in cash, while the
Lombard insurance policy is financed through R2,661,912.28 on deposit at Nedbank (Account #
863703050010), plus the payment of R150,000 monthly into an Old Mutual policy (Account # 15183974,
balance currently at R3,836,271).

Page 22
3.4.2 Water permits
On 22 March 2006, the Department of Water Affairs and Forestry (“DWAF”) issued Etruscan with a
water extraction license (License # 23062962) which allows for the extraction of water from the
Schoonspruit Dolomite Compartment for use on RE/Hartbeestlaagte, Nooitgedacht and Zwartrand for a
period of 10 years from the date of issue. The license allows for the extraction of a maximum volume of
groundwater (for all the properties covered by the license) of 1,222,588m3
per annum for the first year
and 1,050,868m3
annually thereafter for the duration of the license period. Daily extraction volumes
may not exceed 3,358m3
and 2,879m3
respectively.
The license was issued subject to standard conditions which include the submission of a detailed mine
site water balance, a groundwater management plan and baseline water monitoring data. Further,
groundwater levels need to be measured periodically and this information, along with actual water
usage, forwarded to DWAF.
Rockwell will, in due time, apply to DWAF to transfer the water rights to RDNW and to increase the
allowance in accordance with new plant requirements (as determined by the pre-feasibility study).
3.5 Social and Labour Plans
According to the MRPDA a Social and Labour Plan (SLP) is required to be submitted to the DMR along
with the other requirements for a mining right. The objectives of the SLP (according to the MPRDA) is to
promote employment and advance the social and economic welfare of all South Africans; to contribute
to the transformation of the mining industry; and to ensure that holders of mining rights contribute
toward the socio-economic development of the areas in which they are operating, as well as the areas
from which the majority of the workforce is sourced. In harmony with these objectives, the SLP
requires that the company address literacy levels and life skills within the workforce as well as
implement career progression paths, mentorships, internships and bursary plans for its employees. In
addition, the company is required to contribute to the upliftment and development of the local
communities through procurement, establishment of a Future Forum and the creation of Small, Micro
and Medium Enterprises (SMME’s).
Etruscan had developed a SLP for the period 2009-2013, which was accepted by DMR. In this SLP,
Etruscan had committed to spend R2,516,980.00 on Human Resource Development (“HRD”)
programmes and R4,540,000 on Local Economic Development (“LED”) programmes over the first five
years of the mining right.
3.5.1 Mine Closure Plans
One of the main objectives of the SLP is to deal with the potential problems that may arise in the future
when the mine naturally closes or if downscaling occurs due to whatever reason. The Future Forum will
provide structures to facilitate the consultation processes so that management and worker
representatives and recognized trade union representatives can meet on a regular basis to discuss
workplace issues. The intention is to provide a formal vehicle where all affected parties can consult and
discuss challenges and possible solutions to problems facing the workplace that may have the potential
to lead to large scale retrenchment in the future.

Page 23
The most direct and appropriate intervention is to assist employees who could be retrenched in
securing alternative employment. The company will put a number of mechanisms in place to mitigate
the impact of job losses in the event of a downscaling or closure of the mine.
Some of the measures that will be used are:
• Reduce benefits and bonuses
• Reduce hours of work
• Redeployment
• Retraining and multi-skilling
Management will endeavour to avoid retrenchment wherever possible, through effective planning.
Where there is no other alternative, retrenchments will be carried out as fairly as possible and in
compliance with section 189 and 196 of the Labour Relations Act of 1995. The HCVW retrenchment
policy will apply to all employees other than casual and temporary employees. Retrenched employees
may receive compensation in accordance with the company’s policy on payment of severance benefits.
The mine closure plan is subject to a range of legislation outside of the MPRDA. Care has been taken in
this closure plan to ensure that the plan not only subscribes to the spirit and intent of the MPRDA and
the Charter, but is consistent with other applicable statutory requirements. The company will explore
the possible business opportunities that could be developed for the mine community by diversifying the
mine’s land and infrastructure assets after mine closure. These will cover recreational activities. The
business opportunities that will be generated by this plan will be specifically directed towards
alternative income strategies for the mine community. On closure all material stockpiles, plant and
other equipment will be removed from the mine. All structures that cannot be reused will be
demolished and the sites will be rehabilitated. The mine floor will be profiled and will be rehabilitated
for the purpose of end use. Adequate drainage will be ensured and mine side will be profiled to a
minimum of 1 : 3 angle. Mine closure will be as per Closure Plan and the approved Environmental
Management Programme (EMP).

Page 24
4 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY
The Tirisano mine properties total some 10,000ha in extent and this is likely to be sufficient for all
mining operations, rock dumps, tailings storage facilities, waste disposal areas, processing plants and
other related activities. Initial prospecting work identified areas on the property where gravels are not
located and these have been demarcated for the necessary infrastructure.
4.1 Topography, elevation and vegetation
The property can be described as generally flat (Plate 4.1). Elevation ranges for the property are
between 1,520m and 1,580m AMSL. The property slopes from the northwest to the southeast with a
drop in elevation of some 60m over 4km (which represents a slope of only 1:67).
Plate 4.1: View of the flat landscape between Hartbeestlaagte and Zwartrand (looking SE). Photo
courtesy of Etruscan Diamonds (Pty) Ltd
The natural vegetation of the area is classified as “Savannah Grassland”. Typical grass species (van
Oudtshoorn, 2002) comprise Henterpogon contortus (Spear Grass), Themeda trianda (Red Grass),
Cyndon dactylon (Couch Grass), Schizahyrium sanguineuim (Red Autumn Grass) and Pogsnsrthria
squarrosa (Sickle Grass). Exotic species such as Acacia longispicata (black wattle bush) and Eucalyptus
globulus (Blue Gum Trees) are also known to occur. No Red Book Data Species of endangered
vegetation occurs on the Property.
Weed species (Tagetes minuta (tall khaki weed), Argemone mexicana (Mexican poppy) and Conyza
albida (tall fleabone)) are common in fallow lands. The only exotic and invasive grass species identified
on the property are Arundo donax (giant reed) and Pennisetum clandestium (Kikuyu).

Page 25
Since the Property occurs in an area that has been farmed extensively, only common small animals
(including jackal, steenbok, duiker, rabbits, meerkat, porcupine, springbok, anteaters and general bird-
life) frequent the area in addition to domestic livestock. A number of vulnerable and near-threatened
(Red Data) species have been recorded within the general district.
Primary commercial agriculture contributes about 2.5% to South Africa’s gross domestic product (GDP)
and about 8% to formal employment. However, there are strong backward and forward linkages into
the economy, so that the agro-industrial sector is estimated to comprise about 12% of the GDP (SA
Yearbook, 2008/2009). Some 5.3% of the South African GDP in agriculture and 16.96% of total labour in
agriculture is based in the North West. Maize and sunflowers are the most important crops and the
North West Province is the biggest producer of white maize in the country.
4.2 Access and infrastructure
The property is easily accessed via a network of regional tarred and gravel roads, as well as farm tracks
on the mine property. From the Ventersdorp office, the mine is 30km distant on a 25km tarred and 5
km gravel road. Ventersdorp is 64km from Klerksdorp and 50km from Potchefstroom, the major
population centres in the NorthWest Province and some 100km from Johannesburg.
The existing infrastructure is only discussed briefly. Details are being determined through the trial-
mining/pre-feasibility study programme that has been on-going since 2010. These details will be
described in a forthcoming technical report.
Water
Both potable and process water is available from boreholes to a main storage dam some 100m from the
main well-field. The underground water in this area has been tested consistently over the past five
years and is suitable for human consumption as per South African Bureau of Standards (SABS)
specifications.
Power
Power is available to the Tirisano project via the National Grid (ESKOM) from the Koster grid. Currently,
2.0MVA is available (also 1.0MVA from the Aurora substation) and Etruscan had applied for a further
4MVA.
Telecommunications
Currently, the Ventersdorp office and Tirisano mine are connected via a Telkom system that is on loan.
This system is not connected to the Rockwell network and, further, no VOIP, is available at present.
Accommodation/offices
Rockwell’s main administration office will be located on the mine. A secondary office and company
guesthouse is situated in Ventersdorp. The mine is located near to both Ventersdorp and Mogopa, so
no on-site accommodation (in the form of hostels) is required. All staff (including contractors) and
labour live at their homes and are provided transport to/from work each day. Currently, only essential
security and contract managers stay on-site.
Security
On-mine and office security is managed by Thorburn Security Solutions who provide guards for patrol
and access control. An integrated security system will be implemented that is able to monitor all areas

Page 26
of all the operation remotely – including closed circuit television on all sensitive areas of the plants and
final recovery rooms, access control (fingerprint biometrics), motion detection and tracking technology,
as well as guard patrols. This one system will monitor all of Rockwell’s operations in the Northern Cape
(Holpan, Klipdam, Wouterspan, and Saxendrift/Niewejaarskraal) and NorthWest (Tirisano Mine) and is
also linked to the Johannesburg head office by a dedicated ADSL line.
Waste (industrial/sewerage)
Septic tanks and French drains provide sewage disposal from portable toilet facilities at the mine site.
General waste disposal is delivered to the local (Ventersdorp) municipality. Oil, grease and related
pollutants are removed by the mining contractors to their dump facility in Potchefstroom. Any other
hazardous waste is transported to a registered hazardous waste site.
Air Facilities
A helipad is located at the Tirisano Diamond Mine. The nearest operational airfield is located at
Potchefstroom, some 45 minutes drive from the mine and a small registered air-strip is to be found at
Ventersdorp.
Rail
The railway network is managed by Transnet, the State Corporation managing rail. The nearest railhead
is located at Ventersdorp.
Fuel Storage and Supply
The plant fuel storage area currently comprises a 23,000l diesel tank. The mine fuel and oil storage area
at the Tirisano plant site is a self-contained bunded area which contains a 150% storage capacity. An
additional 18,000l mobile diesel bowser is contemplated to provide fuel for operations on
Hartbeestlaagte.
Labour
The labour force in the North West consists of 1.2million people – some 8.5% of the total South African
workforce. Only 20% of the labour force has Grade 12 education, while 18% has no formal education
(www.investnorthwest.com). The cost of labour is determined in the National Bargaining Council
on an industry specific, which sets statutory minimum wages. The rest is left to the employer
and employees. Local labour can easily be accessed from nearby villages and communities (the
nearest village of Ga Mogopa is located less than 5km away, on the adjacent property of Zwartrand).
Skilled labour is readily accessible from the nearby mining centres of Potchefstroom (50km), Klerksdorp
(70km) and the Johannesburg-Tshwane metropolitan area (150 km).
Essential services
All essential services, including hospital, police, and municipal facilities are available in the town of
Ventersdorp and anything else can be obtained within two hours drive.
4.3 Climate
The area is situated in a dry to moderate rainfall area with annual rainfall figures of 597mm (mostly
between December and March), which is exceeded by the average annual evaporation of 2,078mm
(South African Weather Services). The area is not known for extreme weather conditions, although
summer rainfall often occurs during electric storms and sudden downpours (squalls) can cause localised
flooding and difficult operating conditions. The mine has a year round operating season and prevailing
climatic conditions do not impact on the mining operation to any significant degree. Disruptions do

Page 27
occur due to poor road conditions following heavy rains and three-to-four hour down-time may occur
when soaked gravel stockpiles are too wet to process efficiently. During years of exceptional rainfall
flooding may occur, resulting in significant disruptions to production, as well as damage to
infrastructure (municipal as well as on-mine).
Summer temperatures vary from 12°C to 34°C and winter temperatures varying from -10°C to 18°C.
During the winter, winds are generally northerly and in summer, south-easterly.

Page 28
5 HISTORY
5.1 Previous Ownership
Mineral rights comprising the Properties have belonged to the State since May 2004. Prior to that, the
rights were held by the Bakwena Ba-Mogopa Trust. Numerous parties have held options over various
portions of the properties and completed the exploration programmes outlined below.
Etruscan owned and operated the Tirisano mine until it was placed on Care & Maintenance in
November, 2008.
5.2 Previous Exploration/Development
5.2.1 Historical
NOTE: Some of the terms used in this section would be considered historic estimates. These are
not compliant under 43‐101 or any other internationally recognized code. Estimates of gravel
volume or tonnage without a classification would be considered exploration targets. These
estimates are included for historical purposes only and should not be relied on. Terminology is
used as defined in the source documents. For more accurate resource estimates, see section 5.2.2
and also section 16 for current resource estimates.
Historic records from the South African Diamond Bureau up to 1984 show that a total of 24,494ct were
produced from Nooitgedacht, 11,330ct from the farm Hartbeestlaagte and another 1,039ct from
Zwartrand (Marshall, 1987). It must be noted that these are only the official production records, and
the actual production figures are expected to be somewhat higher. All these diamonds were,
presumably, derived from artisanal mining of relatively shallow deposits (Plate 5.1) – upper gravels in
the sinkholes and the overlying colluvially-derived manganese layers (locally termed “Rooikoppie”
gravels). No records exist for volumes or tonnages mined, so nothing is known regarding historical
grades or diamond values, although unverifiable regional average grades of 1.6cpht have been
reported.
The artisanal diggers followed the surficial gravels and, in many places, the sinkhole gravels and the
linkage channels (locally termed “Runs”). Seen from the air these old diggings appear to delineate part
of an ancient channel. Two such runs are known to exist on the properties – the Main Run (also known
as the Vetpan Run) and the West Run. The West Run appears to have been mined intermittently
between 1974 and 1984, but no reliable production figures are available from this period.
During the period 1979-1983, Newmont South Africa Limited prospected on Hartbeestlaagte and
Zwartrand as part of an extensive programme of exploration and bulk sampling of diamondiferous
gravels in the area between Lichtenberg and Ventersdorp. It has been reported that during Newmont's
programme, "considerable geological and geophysical expertise, mainly in gravity and some EM survey
techniques, were developed in locating gravel concentrations, or Runs". Bulk sampling7
7
No details are available regarding diamond recoveries
showed that
the better quality and larger stones were found in the eastern part of the North West Province.
Consequently, Newmont's efforts were concentrated here and, in particular, on the farm Zwartrand and

Page 29
the adjoining farm Hartbeestlaagte. Newmont outlined one main target on Hartbeestlaagte (Hl a, b, c)
and another three on Zwartrand (Z-la, Z-lb and Z-4) (Berezowsky, 1998), two of which were estimated to
contain an exploration target of gravel of some 5.78 million tonnes over a total area of 183 750m²
(Lockett, 1996a).
Plate 5.1: Artisanal diggings along the Nooitgedacht – Zwartrand Run. The diggings in the
background are situated where the Tirisano main pit is now located. (Photo courtesy of
Etruscan Diamonds (Pty) Ltd)
Newmont carried out the following work (Berezowsky, 1998) (Fig. 5.1):
• detailed geological mapping on a scale of 1:2,000, on a grid with east-west lines spaced at 100
metre intervals covering all of the proclaimed lands in both Hartbeestlaagte 146 and Zwartrand 145
IP;
• a gravity survey over the grid which apparently showed the area to be extremely anomalous8
• magnetometer traverses over selected areas delimited two dyke like bodies;
with
two major gravity lows covering almost 50% of the grid;
• regional photogeology analysis for major structural features of the bedrock or basement;
• percussion drilling (1,906 metres at 61 locations on Zwartrand) on fences 100 metres apart and a
hole spacing of 60 metres
8
Italics in original document

Page 30
This work defined two buried gravel bodies on Zwartrand, Z-la and Z-lb, and suggested the potential for
a third, Z4.
Two of Newmont’s targets were held as 540 claim blocks by African & Asian Minerals (Pty) Limited
through a direct purchase from the estate of W.A. Vermaas, to whom they were transferred by
Newmont. These blocks, named after gravity anomalies underlying respective areas are: Z-la (54 claims)
1.2118 hectares; Z-lb (486 claims) 10.9349 hectares; with a total of 12.1467 hectares. The third block, Z-
4, is shown on the Newmont maps to measure approximately 1,300 metres by 250 metres, thus
covering approximately 32.50 hectares.
During 1985, a minor amount of the previously exposed Z-lb gravels immediately NE of the claims was
washed to produce a total of 26.24ct. These operations were undertaken by a small (unknown)
company while African & Asian were unsuccessfully attempting to negotiate a joint venture agreement
with Newmont. The operations were largely ineffective due to insufficient earthmoving equipment,
inadequate supervision and management, and inefficient concentrating/sorting procedures. The grade
of the gravels worked, therefore, was unfortunately not determined. This attempt to mine extensions
of the Z-lb gravels did not approach the (expected high grade) base of the gravel run and the diamonds
produced were from gravels exposed in old workings at the extreme north-eastern edge of the deposit.
Therefore, the gravel base and well developed "run" within the claims and to the east of the old
workings was thought worthy of further investigation. Newmont's drilling data concluded that the
lower gravels, which were not excavated in sufficient quantity to have been effectively sampled, could
be expected to contain the majority of the diamond.
During 1993-95 Southern Cross Diamond Ventures carried out a programme on Nooitgedacht,
Hartbeestlaagte and Zwartrand wherein 27 holes in four lines were drilled and a sample trench was
excavated (Fig.5.1). From this reconnaissance programme, some 6,000 tonnes of gravel were treated
from which 99.71ct were recovered for a grade of 1.66cpht. The diamonds averaged 1.5ct/st and were
sold locally for USD493/ct. The gravel target on Nooitgedacht was estimated to be in excess of 20
million tonnes and could be as much as 36 million tonnes (Gerryts, 1998).
The estimation of the diamondiferous gravel resource on the farms Nooitgedacht, Hartbeestlaagte and
Zwartrand by Mountain Ash (Lockett, 1996b) was based upon calculation of the aerial extent of
outcropping and possible buried gravels determined by photogeological mapping and reconnaissance
field checking. For this study, a gravel density of 1.75 g/cm³ was used (the arithmetic mean of eight
values in the range 1.68 - 1.82 as determined by Stettler, 1979). In addition, it was noted that an
average thickness for buried gravel deposits over areas of several km² as defined by photo
interpretation, is rendered almost meaningless by the extreme local variations in gravel thicknesses
resulting from the karsted depositional and post-depositional history of these deposits. Given that the
gravels tend to be thin and intermittently developed except in the vicinity of potholes a mean thickness
value of 5m was used in the calculation of the expected tonnages on the East Run (the principal
exploration target of the Mountain Ash Joint Venture). Comments accompanying this gravel estimation
(which does not comply with modern standards of resource estimation) indicate that the probable error
factor on these figures is ±50%.
During 1996, field traverse and photogeological data were superimposed upon pre-existing Newmont
gravity data and a drilling programme was initiated to test all of the mapping-inferred and gravity
targets on Zwartrand and Hartbeestlaagte (Lockett, 1996c). The drilling programme (percussion drilling
was proposed, but finally Reverse Circulation (RC) drilling was done due to the difficulties experienced)
was executed between May and September 1997 (de Carcenac, 1998). During this time, 52 holes with
an aggregate length of 1,622.5m were drilled by two different contractors. A geophysical contractor
carried out down-hole logging (radioactivity, induction and magnetic susceptibility) of the drillholes.

Page 31
Figure 5.1: Location of previous prospecting activities (pre-2000) on Hartbeestlaagte (from
Berezowsky, 1998)

Page 32
These drill results were carefully examined to provide conservative estimates of tonnage. While the
distribution of holes was adequate to provide some indication of the presence and extent of sheet type
gravel deposits, a far more detailed drill pattern would have been necessary to establish a realistic
amount of pothole type gravel. The drilling programme indicated an exploration target of some
14,616,375 tonnes of gravel on the three farms, containing an estimated total of 235,000ct. The +8M
tonnes of gravel reported here for the Nooitgedacht farm was in addition to the20-36Mtexploration
target established by Southern Cross (de Carcenac, 1998).
With respect to the various figures used in respect of the estimated gravel resource present on the
three farms it is pertinent to note that 14.6MT was estimated from drilling (Mountain Ash, 1997/8) and
a further 20MT was estimated for Vetpan by Southern Cross Ventures from reconnaissance drilling in
1993/4. At the end of the drilling programme in January 1998 Ashton withdrew from the joint venture
since the potential gravel resource did not meet their target figures (I Macdonald, Pers. Comm., 2000).
The amounts did not appear to have been compliant with any international standard and it is not known
exactly how they were defined. The programme, although conducted with a high degree of professional
efficiency, was not sufficient to identify an Inferred Resource.
In 1998, Vaaldiam Resources Ltd signed an option and Joint Venture agreement with Mountain Lake to
earn a minimum 50% interest in their properties in the Ventersdorp diamond fields in the Northwest
Province of RSA, including the Hartbeestlaagte property. A desktop study was commissioned (Marshall,
1998) and a Qualifying Report was completed by A C A Howe of Toronto (Berezowsky, 1998) but
Vaaldiam chose not to pursue the project, for reasons not made public.
In 1996 Ashton Mining commissioned a photogeological study of the Ventersdorp district from Lockett
and Associates of Perth, Australia. See Section 9 for details of this study.
5.2.2 Etruscan Resources (Pty) Ltd
During the period February 2000 to August 2002 Etruscan contracted Zoutpan Diamonds to complete a
mini bulk-sample on the Tirisano main pit. Some 5,080.88ct were recovered from 17 pits (the processed
volume was not recorded, however). The majority of these gravels have been defined as part of the
Lower Gravel Package (see Section 7 for definition of the gravel units), accounting for the better than
expected results, as described below.
Diamond recovery from the Zoutpan pits (1.8cpht or 3.24ct/100m3
at a 2mm bottom cut-off) included a
single 26.8 carat stone that represents 20% of the total diamond recovery from this area. With a total
of 4,659 stones recovered, the average stone size was 1.09ct/st (Fig. 5.3). In addition, the diamond size
distribution for these stones illustrated a marked shift towards larger stone sizes from above 5 carats
(Lock, et al., 2003). The total Hartbeestlaagte parcel realised a value of USD592/ct. This parcel
contained two special stones whose value strongly influenced the total parcel value - a 26.8 carat
diamond (accounted for over 25% of the parcel value) and a fancy yellow coloured 1.8ct stone
(accounting for over 5% of the parcel value).
Later, during the period 2002/2003 RSG Global Pty Ltd (“RSG”) was commissioned to provide an
independent mineral resource estimate of the adjacent Tirisano Mine diamond resources as at 23
January 2003 (Lock, et al., 2003). This document was prepared in accordance with the Code and
Guidelines for Assessment and Valuation of Mineral Assets and Mineral Securities for Independent
Expert Reports (The Valmin Code) as adopted by the Australasian Institute of Mining and Metallurgy
(AusIMM) in April 1998).

Page 33
Although this report was prepared with specific reference to the Tirisano Mine on the farm
Nooitgedacht 131 IP, it makes reference to resource delineation drilling in an area straddling the farm
boundary between Nooitgedacht in the north and Hartbeestlaagte in the south (the area where bulk-
sample Pit #1 is located, as described later). In addition, it is noted that this is located immediately
adjacent to the Tirisano mine pit that is excavated into a large gravel-filled sinkhole on the farm
boundary). In this sinkhole area at the south end of the current Tirisano mine open pit it is possible to
recognise a thickening of the gravel (pre-existing depression); a slumping of the top of the gravel which
has been covered by a recent soil profile, topped by a very thin deflation gravel and subsequently
covered by a final red sandy soil (subsequent depression); and a present day surface depression
(continuing subsidence), confirming the karstic nature of these deposits.
During the time of RSG’s evaluation, no classifiable resource had yet been delineated on
Hartbeestlaagte, although the area had also been surveyed geophysically (airborne gravity). The gravity
map showed a very clear bedrock channel that had, in part, been confirmed by drilling. The details of
this survey, and the results thereof, are presented in Section 8.
In an earlier, internal report by RSG (van der Merwe, 2000) the preferred average global grade was
estimated at 2.9ct/100m3 (1.6cpht) at a bottom cut-off screen size of 2mm. The production grade
achieved by Tirisano Mine since commissioning in November 2002 was 1.8cpht from the Zoutpan pits
on Hartbeestlaagte, and 1.0cpht in the Tirisano open pit on Nooitgedacht. The Hartbeestlaagte
diamond recovery (1.8cpht) included a single 26.8 carat stone that represents 20% of the total diamond
recovery from this area. It was presumed to be appropriate to remove this single stone from the
diamond parcel and re-calculate the grade down to 1.46 cpht. On this basis it was accepted that the
previous grade of 1.6cpht (2.9ct/100m3
) would apply until further sampling should refine the model.
The preferred average global diamond value was estimated by the 2000 RSG study at USD400 per carat
(a range of USD300 – 450 was noted). Since commencing production in November 2002, Tirisano Mine
sold two parcels of diamonds, one from Nooitgedacht and one from Hartbeestlaagte. The Nooitgedacht
parcel realised an average value of USD396/ct and the Hartbeestlaagte parcel realised a value of
USD592/ct. A weighted average of the two parcels indicates a value of US$509/ct.
The Hartbeestlaagte parcel contained two special stones whose value was suspected to have strongly
influenced the total parcel value. It was suggested that the parcel value be discounted to exclude these
two stones, returning an average value for the remaining diamonds was USD458/ct and a weighted
value for the two parcels, excluding the special stones, was USD424/ct. This was within the range
previously reported and an area value of USD400/ct was accepted until a more representative record of
sales was established.
Based on the known occurrences of gravel, and the tenor of the gravels mined on the Nooitgedacht and
Hartbeestlaagte farms, this study considered a realistic exploration potential for a significant gravel
volume to occur on the farm Hartbeestlaagte. No resource estimation was attempted since insufficient
diamond grade and value information was available.
5.2.2.1 Etruscan Mvelaphanda Joint Venture
Under the terms of a 2004 JV agreement with Etruscan, Mvelaphanda (Pty) Ltd (“Mvela”) was to fund
and manage a bulk sampling programme and a feasibility study, culminating in a valuation of the
Hartbeestlaagte and Zwartrand properties. Mvela’s required expenditure was estimated at R 190M
(Cdn $38M at prevailing exchange rates), and was to include the construction of a plant on these

Tirisano 43-101_2010

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