Umvoto Africa (Pty) Ltd.

Registration Number: 2001/013609/07

Earth Water Science Life

8 Beach Road, Muizenberg, 7945 P.O. Box 61, Muizenberg, 7950

Tel: +27 21 709 6700 Fax: +27 86 685 5725

E-mail: amanzi@umvoto.com Website: www.umvoto.com

Directors: E R Hay, C J H Hartnady, K Riemann

Associates: R T Wonnacott, D Blake, F S Botha, W J Gouws

Dear Mr Swanepoel

GANNABOSCH CLAY MINE – ADDITIONAL REGIONAL CLAY RESOURCE ASSESSMENT

This letter report provides a rapid, high-level desktop assessment of potential additional brick clay resources in the region within ~15-30 km of the proposed Gannabosch clay mine. The following documents were reviewed as part of the assessment:

1:250 000 geological series maps – 3318 Cape Town, 3319 Worcester, 3420 Riversdale and 3320 Ladismith.

Cole, D. I. (2011). Report on economically-viable mineral resources in the City of Cape Town’s administrative area. Produced by the Council for Geoscience Western Cape Regional Office for the City of Cape Town Environmental Resource Management Department: Environmental Compliance Branch, 12pp.

Cole, D. I., Ngcofe, L. and Halenyane, K. (2014). Mineral commodities in the Western Cape province, South Africa. Council for Geoscience Western Cape Regional Office Report No. 2014-0012, 82pp.

Gresse, P. G. and Theron, J. N. (1992). The geology of the Worcester area. Geological Survey, Department of Mineral and Energy Affairs, Pretoria, South Africa, 79pp.

Heckroodt, R. O. (1991). Clay and clay materials in South Africa. Journal of the South African Institute of Mining and Metallurgy, 91 (10), 343-363.

Horn, G. F. J. and Strydom, J. H. (1998). Clay. In: Wilson, M. G. C and Anhaeusser, C. R. (Eds). The Mineral Resources of South Africa. Council for Geoscience, Pretoria, 106-135.

Malan, I. A., Viljoen, J. H. A., Siegfried, H. P. and Wickens, H. de V. (1994). Die geologie van die gebied Riversdale. Toeligting tot Riversdale Blad 3420 Skaal 1:250 000. Geologiese Opname van Suid-Afrika, Pretoria, South Africa, 66pp.

Theron, J. N., Wickens, H. de V. and Gresse, P. G. (1991). Die geologie van die gebied Ladismith. Toeligting tot Ladismith Blad 3320 Skaal 1:250 000. Geologiese Opname van Suid-Afrika, Pretoria, South Africa, 99pp.

Theron, J. N., Gresse, P. G., Siegfried, H. P. and Rogers, J. (1992). The geology of the Cape Town area: Explanation of Sheet 3318, scale 1:250 000. Geological Survey of South Africa, Department of Mineral and Energy Affairs, Pretoria, South Africa.

van Strijp, L. T. (1998). Brickmaking materials. In: Wilson, M. G. C and Anhaeusser, C. R. (Eds). The Mineral Resources of South Africa. Council for Geoscience, Pretoria, 85-89.

Mr Morne Swanepoel 2 November 2016

Gannabosch Clay Mine (Pty) Ltd Report No: 856/21.03/01/2016

PO Box 234 ROTADRILL@BREEDE.CO.ZA

Robertson, 6705

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Additional Regional Clay Resource Assessment

The general consensus from the above documents is that although no detailed systematic prospecting for brick clay has occurred within the Western Cape, there are large inferred brick clay resources present, with Heckroodt (1991) stating that: “For all practical purposes, raw materials with properties adequate for the production of common bricks are widespread and limitless in the Western Cape.” The main geological features where good brick clay resources may be present include kaolinite, illite and quartz-bearing shale formations/units that have been deeply weathered and exposed to pedogenic processes over long periods of time to form thick surface residual clays, especially:

underlying flat/gently inclined palaeo-erosion/old land surfaces with thin (<2 m) ferricrete and/or silcrete capping;

along large fault/fracture/shear systems; and/or

in metamorphic aureoles adjacent to the hornfels zone (in the case of the Malmesbury Group, where intruded by the Cape Granite Suite).

Generally there is quite extensive variation in clay properties in Western Cape brick clay deposits due to varying geology/lithology and mineral composition, which results in variations in clay firing behaviour and hence a wide range of clay brick products can often be produced. The following shale-rich geological formations in the southwestern Cape were identified from the 1:250 000 geological maps and literature as having brick clay resource potential if deeply weathered (primarily based on the existence of previously existing and current brick clay mines, which have been bracketed behind each formation below):

Malmesbury Group formations e.g. the Tygerberg (City of Cape Town municipal area), Brandwacht (Worcester), Porterville (Wellington, Wolseley and Tulbagh) and Noree (Wolseley and Robertson) Formations

Cape Granite Suite (City of Cape Town municipal area, Stellenbosch, George-Mossel Bay, Vredenburg-Saldanha, east of Pearly Beach, Uilkraals River valley northeast of Gansbaai, Hemel en Aarde Valley north of Hermanus)

Bokkeveld Group shale formations e.g. the Gydo (Caledon, east of Napier and south of Viljoenshof), Voorstehoek (Bot River and Villiersdorp) and Tra-Tra (Prince Alfred Hamlet and Montagu) Formations, and undifferentiated shale outcrops (Albertinia)

Witteberg Group shale formations e.g. the Wagen Drift Formation (Brandvlei Dam and Wyselsdrift west of Worcester)

Lower Ecca Group shale formations e.g. the Prince Albert Formation (Prince Albert), and Whitehill, Collingham and Tierberg Formations (all underlying the proposed Gannabosch clay mine)

Uitenhage Group – Kirkwood Formation (Swellendam, Heidelberg, Riversdale, Mossel Bay)

Sandveld Group – Elandsfontyn Formation (West Coast)

The above geological units (i.e. shale-rich formations of the Malmesbury, Bokkeveld, Witteberg, lower Ecca, Uitenhage and Sandveld Groups, and the Cape Granite Suite) were mapped at a 1:250 000 scale in association with the following listed parameters, in order to determine potential additional brick clay resources within ~15-30 km of the proposed Gannabosch clay mine:

Areas with less than 10° slope (i.e. areas with the potential for, or representing, deep weathering);

Areas where no cultivated land is present;

Areas outside of towns/residential zones/infrastructure (e.g. roads, railways etc.); and

Areas outside of all Critical Biodiversity Areas (CBAs), Ecological Support Areas (ESAs) and nature reserves (whether CapeNature, SANParks or private).

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Additional Regional Clay Resource Assessment

From these geological and other parameters, five potential additional brick clay resource sites were identified (see Table 1, Figure 1, Figure 2 and Figure 3). It is recommended that each site is visually groundtruthed and farm owners consulted (Zandbergfontein already has an existing building sand mine, which might provide further information on nearby brick clay potential) in order to determine whether the identified resources are a no-go prior to any detailed brick clay resource site assessments (e.g. clay sample pitting/drilling and analysis) being undertaken.

Table 1 Details of potential additional brick clay resource sites in the region surrounding the proposed Gannabosch clay mine (Site ID refers to Figures 1 to 3).

Figure 1 Positions of additional potential brick clay resource sites in the region surrounding the proposed Gannabosch clay mine. Pink, orange and yellow areas represent Tierberg, Gydo and Waboomberg Formation sites respectively, maroon polygons represent associated farms, and the red polygon represents Gannabosch Vlakte 51.

Site ID Site Name Area (ha) GeologyDistance

from GCMFarms

Pt-01 Rivier Plaas 258 11 km WNWRooilandia RE/472 and

Doornlaagte RE/461

Pt-02 Koelefontein 137 6 km WNWKoelefontein RE/458

and Langevallei RE/52

Pt-03 Karoo 84 11 km NW Karoo RE/453

Dg-01 Zandbergfontein 467Gydo Formation

(Bokkeveld Group)13 km SE

Zandbergfontein 4/97,

RE/97 and 194

Dw-01 Wandsbeck 261

Waboomberg

Formation

(Witteberg Group)

15 km SWWandsbeck 2/138,

3/138 and RE/138

Tierberg Formation

(Ecca Group)

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Additional Regional Clay Resource Assessment

Figure 2 Positions of potential additional brick clay resource sites Pt-01, Pt-02 and Pt-03 (pink areas), all situated on Tierberg Formation (Ecca Group) shales. Maroon and red polygons represent associated farm properties and Gannabosch Vlakte 51 respectively.

Figure 3 Positions of potential additional brick clay resource sites Dg-01 (orange area) and Dw-01 (yellow area), situated on Gydo Formation (Bokkeveld Group) and Waboomberg Formation (Witteberg Group) shales respectively. Maroon and red polygons represent associated farm properties respectively.

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Additional Regional Clay Resource Assessment

It must be noted that the proposed Gannabosch clay mine has a high quality brick clay indicated resource of ~650 000-870 000 m3 (determined from analysed dug out pit samples), derived from the weathered shales of the Whitehill, Collingham and Tierberg Formations. The three Tierberg Formation sites (Pt-01, Pt-02 and Pt-03) may also contain high quality brick clay resources based on similar lower Ecca Group geology, although the weathered zone and resource extent may be shallower due to slightly steeper and more undulating topography at the three sites (in comparison to the proposed Gannabosch clay mine site). Clay thickness and brick clay quality from potential weathered shales at the Dg-01 and Dw-01 sites is currently unknown, due to the differing geology (Gydo and Waboomberg Formations respectively) in comparison to the Gannabosch clay mine.

Yours sincerely

Dylan Blake

Associate / Principal Geologist Pr.Sci.Nat.

Umvoto Africa (Pty) Ltd