"Barite Potential Studies Mineralogical work, as part of the...

"Barite Potential Studies 

Mineralogical work, as part of the metallurgical study ofthe BFS of the Prieska Project, indicates 6% - 8% contained barite in themineralisation, which if recovered as a by-product could add to the revenue ofthe mine. As a result of the analytical method (ICP-OES with Aqua-Regia digest)used at the Prieska Project, which does not dissolve all the Ba in barite(BaSO4), Ba analyses in the geological database are underestimated values. Astudy to accurately determine the Ba content and to identify and quantify theminerals that hosts the Ba was therefore undertaken during the Quarter. Thirtypulp samples of the Deep Sulphides were sent to UIS Analytical Services forfused disk XRF analyses and SJT MetMin carried out mineralogical work usingQuantitative X-ray diffraction (XRD) analysis on 15 of those samples. The studyis expected to be completed during Q1 of 2019."

The barite potential was not included in the scoping study, but it should be in the BFS. The mining rate is going to be 2.4Mt/a - 5% barite recovery will be 120 000t - at current barite prices of between US$80 to US$100, that will be an additional US$9.6m to US$12m per annum. If we assume incremental costs of US$2m per annum, it increases the pre-tax NPV(@12.5%) by US$42m to US$55m.