Sedibeng Diamond Mine

The Sedibeng Diamond Mine, which includes the merged historical Dancarl and Messina Mines is located approximately 40km north of Delportshoop and 80km west of Warrenton in the Northern Cape Province of South Africa. The property comprises two mining licences (ML 12/94 and ML 1/1995) a total of 89.62 hectares.

Location

The mine is operated as a joint venture due to historical reasons when prior ownership of the two companies owning the mining licences were separate. Frontier has elected to maintain and operate the mine under the JV structure even, with both the two legal entities being 74% subsidiaries of the Company.


The Sedibeng Diamond Mine has been in operation for more than 60 years and all mine infrastructure already exists. A single 11Kv Eskom power line services the mine. A borehole on the adjacent farm supplies drinking water to the mine ad underground water from the mine is used for processing purposes. Access to the mine and the physiography are not considered risk factors in mining the underground fissures.

The Sedibeng Diamond Mine is operated by Dancarl Diamonds (Pty) Ltd and Messina Diamonds (Pty) Ltd as a joint venture under old order mining licences no ML12/94 ad ML 1/1995. New order rights have been granted by the DMR in terms of item 7(2) of Schedule II of the ACT (ref MRC 228 and MRC 229) during June 2013 but still needs to be executed ad signed. The period of the grant is not known yet. Both rights straddle a single continuous ore body, the so called “Bobbejaan” Fissure which is mined, treated and recovered through central and shares infrastructure for the benefit of the JV.

Petra acquired the Sedibeng Diamond Mine Joint Venture in 2005 from Crown Diamonds NL. Sedi Diamonds (Pty) Ltd acquired the Sedibeng Diamond Mine Joint Venture from Petra in 2014. The mine have been in production for over 85 years with Messina Diamonds incorporated in 1930 and Dancarl Diamonds in 1969.

Preliminary surface investigations by the Competent Person, who prepared the Independent Geologist Report, noted that during his September 2016 visit to Sedibeng that there was a strong possibility that the fissure may continue towards the south west, and that a second fissure might have developed parallel to the main fissure at Sedibeng. Recently, Sedi Diamonds (Pty) Ltd purchased a diamond core rig to explore for possible additional fissures located alongside the main fissure at Sedibeng.

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The fissure orebodies are generally accessed via vertical shaft systems, while production levels are established by means of an access crosscut developed to the kimberlite. From this access crosscut, drives are established parallel to the orebody in each director along strike, with access to the orebody for stoping provided by crosscuts spaced at regular intervals along the length of the drives. The mine currently employs the shrinkage overhand method to extract ore from the fissure dykes.

The Company’s strategy is to significantly increase operational efficiencies and reduce operating costs at the Sedibeng JV Mine to US$55/tonne treated.

The Company plans to evaluate the possibility of using the Halliday Shaft for moving personnel and deepening the No 1 Shaft to level 26 to facilitate operations in the Dancarl section of the mine.

The Company is currently undertaing underground and surface drilling to test for both north and south strike expandions of the existing ROM Fissure and resource delineation of the Magasyn Fissure at the Dancarl section of the mine.

The Mines produce high quality diamonds with an average value per carat higher in comparison to the world average. The Company also has access to underutilised infrastructure to complement expansion and recently acquired a tailings processing plant to reprocess significant tailings dumps at the Sedibeng Diamond Mine and potentially surrounding mines.

The tailings at Sedibeng JV ine have an inferred resource of 2.488Mt at 4.5cpht, for 124,000ct at an estimated value of US$150/ct. Diamond values will be further clarified upon the first sale of stones from the Tailings. Frontier has recently purchased a treatment plant that was being used to treat tailings. This is currently in the process of being removed from its current site in Kimberley and transported and reconstructed at the Sedibeng JV mine site to be commissioned during Q3 of 2017.