KOOKFONTEIN

CHROME PROJECT

The Kookfontein Chrome Project is situated in the North West Province of the Republic of South Africa.

Bauba purchased 74% shareholding in Nuco Chrome Bophuthatswana (Pty) Ltd, as detailed in the SENS published 23 July 2019. Nuco Chrome is an exploration company with mineral rights for various minerals, including chrome ore and PGE.

The project is considered an advanced exploration project where exploration work was conducted during 2015 and 2016.

MINERAL RIGHTS

The Kookfontein Mineral Right areas are area approximately 5km NNE of the town of Rustenburg and lie directly East and adjacent to the town of Phokeng.

The Mining Right was granted in September 2016 and an additional Mining Right application was accepted in March 2020, with the associated Environmental studies currently in progress as per regulatory requirements.

GEOLOGY

The Kookfontein Chrome Project is located on the Western limb of the Bushveld Igneous Complex (BIC) with the chromitite mineralisation concentrated in the Lower Critical Zone and the Upper Critical Zone of the Rustenburg Layered Suite.

The location coincides with the Kookfontein “upfold” which forms the boundary zone between what is known as the Rustenburg sector and the Boshoek sector of the Western Lobe. LG and MG chromitites are well developed in the Boshoek sector whereas only MG group chromites are developed between Kookfontein and Rustenburg, as the Upper Critical Zone lies directly onto the floor quartzites in this area.

Together the conceptual geological and mining studies completed in 2016 and 2019 support the confirmation of economically viable Chromite seams on the property. More specifically the MG’s, UG2 and considerable portion of the UG1 was found to be mineable via open pit methods.

In the North of the property, the chromitites strike ENE–WSW and dip at between 9 to 26 degrees towards the N and straddle the boundary between the Lower Critical Zone and the Upper Critical Zone. The seams are well developed with widths ranging between 40cm to 1.34m. Grades are as expected for the succession and are typical for Rustenburg Sector chromitites.

A bottom-loaded higher grade UG1 facies was identified with grades in excess of 30% Cr2O3 and an average width of approximately 1m, which makes this a highly prospective mining target. The UG2 seam has PGE values in line with typical Rustenburg UG2 ore values.

FUTURE PLANS

There is definite value in this property as it is one of the few remaining “untouched” shallow Chrome resources on the Western Limb of the Bushveld Igneous Complex (BIC). The Kookfontein Chrome Project requires minimal operational and processing costs in addition to providing a quick pay-back period and has a Life Of Mine (LOM) in excess of 10 years.

Our first planned Chrome mining will commence at pits on the UG1, also in the Central block, and on the MG’s in the North and the South. The Southern pits have significant potential with shallow dipping ore and very low stripping ratio’s that will play a significant role in maintaining low operational costs, which will provide flexibility and allow for a robust mining approach that will be able to navigate unpredictable market dynamics. The final site layout will be inclusive of wash plant and tailings dam facilities.

The earliest time to execution of Chrome mining is being pursued and will require significant amount of parallel activities to be done and very close interaction with authorities. However, the focus will be to get mining started as quick as possible followed by processing as permits and studies are completed.”