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MINERAL COMMODITIES LTD Capital/Financing Update 2023

Apr 4, 2023

65371_rns_2023-04-04_8a0a8b5e-a74b-4ce2-893d-534d617522e4.pdf

Capital/Financing Update

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ASX RELEASE

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5 April 2023

AMENDED ANNOUNCEMENT - SIGNIFICANT ORE RESERVE INCREASE FOR TORMIN INLAND STRANDS

Mineral Commodities Ltd (“ MRC ” or “ the Company ”) attaches an amended version of its announcement of 4 April 2023, titled “Significant Ore Reserve Increase for Tormin Inland Strands” which contains additional technical information required by ASX Listing Rule 5.9.1, as requested by ASX.

ENDS

Issued by Mineral Commodities Ltd ACN 008 478 653 www.mineralcommodities.com Authorised by the Interim Chief Executive Officer and Company Secretary, Mineral Commodities Ltd

For further information, please contact:

INVESTORS & MEDIA Adam Bick Interim CEO T: +61 8 6373 8900 [email protected]

CORPORATE Katherine Garvey Company Secretary T: +61 8 6373 8900 [email protected]

ABN 39 008 478 653 [email protected] www.mncom.com.au

T: +61 8 6373 8900 PO Box 91 BELMONT WA 6984

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ASX RELEASE
5 April 2023
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SIGNIFICANT ORE RESERVE INCREASE FOR TORMIN INLAND STRANDS

Total Ore Reserve increase of 177%[1] for Tormin Inland Strands:

  • Updated Ore Reserve of 60.3 million tonnes at 3.7% VHM[2] (14.7% THM[3] containing 2.21 million tonnes of heavy mineral

  • Increases projected Inland Strands mine life at current projected production rate of 2.4Mtpa to over 25 years, from 9 years based on previous ore reserve

  • Increase of 0.65 million tonnes of contained heavy mineral (41% increase)

  • 83% conversion of available measured and indicated resource tonnes

  • 31% conversion of available total resource tonnes

Ore Reserve increase of 181%[1] within the current Expanded Mining Right (EMR) of the Tormin Inland Strands:

  • Updated Ore Reserve of 21.5 million tonnes at 5.4% VHM[2] (21.0% THM[3] containing 1.17 million tonnes of heavy mineral within the EMR

  • Increases projected Inland Strands mine life within EMR at current projected production rate of 2.4Mtpa to 9 years, from 3 years based on previous EMR ore reserve

  • Increase of 0.42 million tonnes of contained heavy mineral (57% increase)

  • 52.7% of all Ore Reserve contained heavy mineral lies within the EMR

Mineral Commodities Ltd (“ MRC ” or “ the Company ”) and its empowerment partner, Blue Bantry Investments 255 (Pty) Ltd, are pleased to announce that the Company’s 50% owned subsidiary, Mineral Sands Resources (Pty) Ltd (“ MSR” ) has significantly upgraded its overall Inland Strands reserves by 177% (41% increase in contained heavy mineral) and its Inland Strands reserves within its current Expanded Mining Right (“ EMR ”) by 181% (57% increase in contained heavy mineral). This reserve upgrade reflects the Company’s focused commitment to its Strategic Plan[4] aiming to increase Tormin’s asset value by expanding mineral reserves through organic growth and returning Tormin to historical profitability levels.

1 As compared with the previously reported Ore Reserve. Refer ASX announcement entitled ‘Maiden Ore Reserve For Inland Strand’ dated 18 February 2022.

2 VHM includes all currently sold minerals (zircon, rutile, ilmenite, magnetite, and garnet) that report as sink during heavy liquid separation at SG of 2.96 (bromoform) after desliming, within the 45 µm to 1mm size fraction as a percentage of the total material. 3 THM includes all minerals that report as sink during heavy liquid separation at SG of 2.96 (bromoform) after desliming, within the 45 micron to 1mm size fraction as a percentage of the total material.

4 Refer ASX announcement entitled ‘MRC Unveils Five Year Strategic Plan 2022-2026’ dated 29 April 2022.

T: +61 8 6373 8900 PO Box 91 BELMONT WA 6984

ABN 39 008 478 653 [email protected] www.mncom.com.au

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Based on the current targeted production rate from the Inland Strands of 2.4Mtpa, the increase to the Inland Strands Ore Reserve contained within the EMR equates to a 9 year mine life for Inland Strands production. This production will provide stable medium term cash flows for the business prior to any consideration of additional mining right requirements additional to the EMR.

Inclusion of Inland Strands Ore Reserve outside of the current EMR will see a mine life of greater than 25 years, prior to any consideration of the recent high grade De Punt discovery.

The updated Inland Strands Ore Reserve, combined with the replenishable heavy mineral placer deposits of the Tormin and Northern beaches clearly demonstrate a long term, sustainable mining operation at Tormin.

Additionally, drilling options are available to target further increases in Geelwal Inland Strands reserves. These will be reviewed in conjunction with the De Punt resource[5] , the completion of which is targeted for Q2 2023. An announcement will be made in respect of this work once complete.

The Tormin Inland Strands deposits comprise the Western and Eastern Strandlines which run directly behind the existing beach mining areas and adjacent to the current processing infrastructure at Tormin.

The Updated Ore Reserve estimate is based on the Maiden Ore Reserve[6] using updated modifying factors applied on measured and indicated Mineral Resources, new cashflow grade modelling, and updated pit optimisations using Whittle 4X. The Ore Reserve is classified as Proven and Probable in accordance with the JORC Code 2012 and the requirements of ASX Listing Rule 5.9. The orebody contains a high grade heavy mineral assemblage and will produce profitable mineral sands products. The Updated Ore Reserve is estimated at 60.3 Mt

of ore with an average VHM grade of 3.7% resulting in 2.21 Mt of in-situ Heavy Minerals in Proven and Probable categories (Table 1). It encompasses approximately 8km in total length across 153 hectares, adjacent to the existing plant.

5 Refer ASX announcement entitled ‘High Grade Drilling Results at De Punt’ dated 15 March 2023.

6 Refer ASX announcement entitled ‘Maiden Ore Reserve For Inland Strand’ dated 18 February 2022.

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Table 1 - Updated Ore Reserve estimate for the Western Strandline
Reserve
Tonnes
In situ
VHM
VHM
Zircon
Garnet
Ilmenite
Rutile
Magnetite
THM
(Mt)
(Mt)
(%)
(%)
(%)
(%)
(%)
(%)
(%)
Proven
19.7
1.05
5.3
0.4
2.8
1.7
0.2
0.1
21.7
Probable
-
-
-
-
-
-
-
-
-
Stockpiles - ROM Proven
0.86
0.10
11.0
0.8
4.0
5.6
0.4
0.2
22.3
Stockpiles - LG
Proven
0.93
0.03
2.8
0.3
1.1
1.2
0.1
0.0
4.6
Proven
-
-
-
-
-
-
-
-
-
Probable
38.8
1.05
2.7
0.2
1.7
0.6
0.1
0.1
11.2
21.5
1.17
5.4
0.4
2.8
1.8
0.2
0.1
21.0
38.8
1.05
2.7
0.2
1.7
0.6
0.1
0.1
11.2
60.3
2.21
3.7
0.3
2.1
1.1
0.2
0.1
14.7
Probable
Total
Reserve
Category
Within EMR
Outside EMR
Proven
Reserve Reserve
Tonnes		 In situ
VHM		 VHM Zircon Garnet Ilmenite Rutile Magnetite THM
Category (Mt) (Mt) (%) (%) (%) (%) (%) (%) (%)
Within EMR Proven 19.7 1.05 5.3 0.4 2.8 1.7 0.2 0.1 21.7
Probable - - - - - - - - -
Stockpiles - ROM Proven 0.86 0.10 11.0 0.8 4.0 5.6 0.4 0.2 22.3
Stockpiles - LG Proven 0.93 0.03 2.8 0.3 1.1 1.2 0.1 0.0 4.6
Outside EMR Proven - - - - - - - - -
Probable 38.8 1.05 2.7 0.2 1.7 0.6 0.1 0.1 11.2
Proven 21.5 1.17 5.4 0.4 2.8 1.8 0.2 0.1 21.0
Probable 38.8 1.05 2.7 0.2 1.7 0.6 0.1 0.1 11.2
Total 60.3 2.21 3.7 0.3 2.1 1.1 0.2 0.1 14.7

  • Ore Reserves are a sub-set of Mineral Resources.

  • The economic cut-off is defined as positive cash flow grade per tonne.

  • Tonnes and grades numbers may not compute due to rounding.

The Updated Ore Reserve is a sub-set of the Western Strandline Mineral Resource estimate of 193 million tonnes at 2.83% VHM (9.58% THM)[7] as announced in December 2021. Specifically, it is based on the 74 million tonnes of measured, indicated and stockpiled resources (Table 2).

The Ore Reserve within the current EMR increases to 21.5 million tonnes at 5.4% VHM

(21.0% THM) containing 1.17 million tonnes of heavy mineral in comparison to the Maiden Ore Reserve for the current EMR of 7.9 Mt of ore with an average VHM grade of 9.4% resulting in 0.74 Mt of in-situ Heavy Minerals. This represents an increase of 13.6 million tonnes (181% increase) at 3.1% VHM for an additional 0.42 million tonnes of heavy mineral (57% increase) since the previous Ore Reserve announcement.

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Figure 1 – Updated Western Strandline Ore Reserve Pit Location with Expanded Mining Rights and 10262 PR Boundary

7 Refer ASX announcement entitled ‘Significant Increase in Tormin Inland Strands’ Mineral Resources’ dated 7 December 2021.

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The Ore Reserve upgrade has been completed utilising funds raised by the Company’s most recent Rights Issue, in accordance with the anticipated use of funds (Tormin Inland Strand reserve expansion and extension) set out in the corresponding offer document[8] . The Company has also reviewed its mining method to improve its Tormin reserve and mineable heavy mineral, with further optimisation work underway.

Interim Chief Executive Officer Adam Bick commented: “ This extremely significant Ore Reserve upgrade both within and outside the EMR will underpin the long term profitability of Tormin and significantly enhances the asset value of our Heavy Minerals division. The Inland Strands provides flexibility for Tormin to sustainably mine its two producing, replenishable placer beach deposits over the long term and also provides another long term profitability source in its own right. Further, given the size of the Ore Reserve we now have the strategic advantage of being able to consider further increasing the scale of Tormin in the near term beyond 3.9Mtpa[9] . This, in conjunction with the anticipated future De Punt resource announcement, should provide renewed excitement for MRC shareholders that the Heavy Minerals division is moving towards its stated goals of increased scale and restoring historical profitability and cash generation to Tormin.”

Material Assumptions and outcome of the Pre-Feasibility Study

The Company has significant experience in the heavy mineral sands industry having operated the Tormin Mineral Sands Mine since 2014, mining and processing more than 16Mt of ore in its approximately 2.6Mtpa plant to produce non-magnetic (zircon and rutile), garnet and ilmenite concentrates for export.

Following the grant of the Section 102 Expanded Mining Right from the South African Department of Mineral Resources and Energy (“ DMRE ”) in June 2020[10] , the Company engaged Minsol Engineering to undertake a Pre-Feasibility Study (“ PFS ”). The staged development program in the PFS uses existing processing equipment where possible, complemented with the installation and commissioning of additional equipment to process the Inland Strand ore.

The implementation strategy will reduce pre-development capital, support the replenishment of the Tormin current beaches, as well as expansion of Inland Strand processing on receipt of additional mining rights, to increase revenues. The development stages are:

  • Stage 1: 1.2Mtpa Inland Strand operation during 2022-2024 on the current EMR Ore Reserves.

  • Stage 2: Expansion to 2.4Mtpa targeting late 2024 following receipt of additional mining rights.

Initially, the Ore Reserve within the granted EMR used in the PFS supported up to 6.5 years of Stage 1 operations, de-risking the timing of the grant of additional mining rights required for Stage 2.

8 Refer ASX Announcement entitled ‘Supplementary Offer Document’ dated 7 December 2022.

9 Refer ASX Announcement entitled ‘Inlands Strands Ore Processing Commences at Tormin’ dated 6 March 2023.

10 Refer ASX Announcement entitled ‘MRC Granted Approvals to Expand Mining and Processing at Tormin’ dated 2 July 2020.

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The PFS, used for the economics in the Maiden Ore Reserve Estimate, indicates that the project is technically low risk, delivering a low capital cost solution with attractive financial outcomes which easily surpasses MRC’s internally generated minimum investment criteria (Table 5). Stage 1 was to be funded from a combination of cash flows generated from the Company’s current business operations and funding facilities in place in South Africa.

Given the attractiveness of Stage 1, in 2022 installation of additional equipment as planned in the PFS, including upgrades to the front end crushing and scrubbing circuit, and dewatering circuit, was commenced. This additional equipment has now been commissioned and is performing to expectations[11] .

Additionally, the Company intends to accelerate the Stage 2 expansion to 2.4Mtpa from the December quarter 2022.

The updated ore reserve in this announcement utilises the PFS of the original Inland Strands reserve, given no change has been made to the mining method. The Updated Ore Reserve of 21.5 million tonnes increases projected Inland Strands mine life within the EMR at a current projected production rate of 2.4Mtpa to 9 years, from 6.5 years based on previous EMR ore reserve PFS production schedule.

Criteria Used for Classification

Inland Strand Mineral Resources of the Western Strandline were released on 7 December 2021 in accordance with the JORC Code 2012 and independently peer-reviewed by Wardell Armstrong International (Table 2)[12] .

Table 2 - Mineral Resources for the Western Strandline Deposit (2% THM cut-off grade)

Category Tonnes
(Mt)		 THM
(%)		 In Situ
THM
(Mt)		 Zircon
(% HM)		 Garnet
(% HM)		 Ilmenite
(% HM)		 Rutile
(% HM)		 Anatase
(% HM)		 Magnetite
(% HM)		 VHM
(%)
Measured 32.7 19.21 6.2 1.82 12.49 7.91 1.09 0.21 0.52 4.62
Indicated 39.7 9.48 3.7 1.05 14.77 3.80 0.84 0.21 0.74 2.03
Inferred 119.2 6.93 8.2 2.60 10.68 18.04 1.44 0.29 0.43 2.32
Stockpile 1.6 12.84 0.2 4.21 18.85 25.78 1.95 0.39 0.78 6.67
Total 193.2 9.58 18.5 2.16 11.89 13.46 1.26 0.25 0.51 2.69

  • Mineral assemblage reported as in situ percentage of THM content.

  • Tonnes and grades numbers may not compute due to rounding.

11 Refer ASX announcement entitled ‘Inlands Strands Ore Processing Commences at Tormin’ dated 27 March 2023. 12 Refer ASX announcement entitled ‘Significant Increase in Tormin Inland Strands’ Mineral Resources’ dated 7 December 2021.

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Measured and Indicated Mineral Resources were used to form the basis of the Ore Reserve Estimate in accordance with the JORC Code 2012. Micromine, MinePlan, Deswik, Whittle 4X and COMET software were used for pit optimisation and mine planning. All the Mineral Resources intersected by the open pit mine design, are contained within the EMR and all Measured Resources were classed as Proved Ore Reserves. Measured Resources outside of the EMR and the Indicated portion of the Mineral Resources were classed as Probable Ore Reserve after considering mining, metallurgical, social, environmental, and financial aspects of the project.

There are no Inferred Resources included in the Ore Reserve statement.

Estimation methodology

The updated Mineral Resource for the Western Strandline released in December 2021[13] has been classified into Measured, Indicated, and Inferred categories. The Mineral Resource estimation involved the use of drillhole and geology/topography to construct three-dimensional wireframes to define mineralised domains using Micromine software. Domains were snapped to the nearest true intersection from sampling. Data was extrapolated between data points and approximately half of the drill spacing beyond. Ordinary kriging was used as the primary estimator for the THM and Valuable Heavy Minerals values. A block size of 50x12.5x1m reflects the geometry of the mineralised domains and drillhole spacing. Then a measured Bulk Density for each lithology layer was applied to the model. Areas with drilling spaced at 125x25m were generally classified as Measured Resources and 250x20m were generally classified as Indicated Resources. Drilling up to 500x100m has been generally classified as Inferred Resources.

The Micromine block model was sub-blocked to 4x4x1m to aid the selection of blocks within this perimeter for the Ore Reserve estimation. Whittle 4X, MinePlan and COMET software were used for pit optimisation and mine planning. A practical mining void shape with consideration of geotechnical parameters for floor and pit slopes, processing recoveries, and economics was developed for the selected pit shells using a revenue factor of 1, and a new block model generated with ore and waste flagged accordingly. This block model was divided into stages based on value for use in schedule optimisation. No minimum mining widths were used as the geometry of the deposit is tabular. Due to the cashflow grades of the deposit showing a cashflow positive mineralised halo around the high grade areas and bedrock being a definable boundary for mineralisation that is able to be mined to, mining recovery has been incorporated into schedule through block / bench aggregation.

13 Refer ASX announcement entitled ‘Significant Increase in Tormin Inland Strand’s Mineral Resources’, dated 7 December 2021.

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Mining method and mining assumptions

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The thickness and continuous nature of the mineralisation at the Western Strandline supports conventional open-pit mining with excavators and articulated dump trucks. The Company believes there are no mining factors that affect the assumption that the deposit has reasonable prospects for economic mining.

Pit shells were developed with Whittle 4X using pseudoflow and a variable cashflow cut-off grade estimated in the block model. The optimisation shells selected comprised open pits, initially targeting the higher value areas earlier in the mining plan. The initial Western Strandline pits have been optimised on the Measured and Indicated material in the south and north pits within the Expanded Mining Rights area (Figure 2). These initial pits have not changed from the previous mine plan due to currently being constrained by the Extended Mining Rights. Treatment of the material contained within these pits has been modified due

Firstly, topsoil is removed using a dozer. The topsoil stockpiles will not exceed two metres in height and will be seeded with a cover crop to stabilise them and to avoid airborne dust and material loss given mineralisation occurs near the surface. Excavators and trucks will be used for initial limited overburden stripping where required to open mining zones and in areas where voids for tailings storage need to be established in advance. Once suitable tailings areas are available, the exposed ore will primarily use a D9 dozer or equivalent to push material to a loading area for excavators and trucks to haul to the ROM and stockpiles.

Ore hauled from the mining pit is stockpiled for subsequent processing. A front end loader feeds stockpiled ore to the Primary Concentration Circuit (“ PCP ”). Oversize material is removed from the ore feed by a scrubber trommel circuit and then fed to a crusher before rejoining the circuit.

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Figure 2 – Scheduled pit outlines at the Western Strandline within the Mining Right

The mining schedule is based on Measured and Indicated Mineral Resources with detailed mine designs and mining fleet requirements determined by qualified engineers and mining contractors. The results from geotechnical and hydrogeological studies carried out at the Tormin Inland Strands (including drilling, logging, in-pit slope stability analysis, in situ permeability testing and laboratory test works, also 2D resistivity survey and water boreholes monitoring) have been included in the Western Strandline mine design.

The rehabilitation management plan and standard operating procedures have been prepared and will be implemented as required. Backfilled tailings will be profiled to mimic original topography prior to the replacement of topsoil for rehabilitation and reseeding.

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Processing method and processing assumptions

The processing plant has been designed by experienced mineral sands engineers, Minsol Engineering, based on metallurgical factors derived from laboratory testwork programs by Nagrom, Haver & Boecker, and Delchem as well as onsite production scale processing trials, with design recoveries to the Heavy Mineral Concentrate (“ HMC ”) provided in Table 3.

Table 3 – Design mineral recoveries for the Western Strandline

Mineral
Heavy ROM Feed
HMC Recovery to

Minerals		 Units (inc. Slimes)
HMC
Zircon % 0.50 2.53 92
Rutile % 0.25 1.13 82
Ilmenite % 2.83 14.35 92
Garnet % 4.27 21.18 90
Magnetite % 0.16 0.81 92

Overall recoveries based on the PFS metallurgical factors and previous plant performance of the existing Garnet Stripping Plant - Secondary Concentrator Plant (“ GSP-SCP ”) for heavy mineral used in the estimation of the Ore Reserve are provided in Table 4.

Table 4 – Designed overall mineral recoveries for the Western Strandline

Heavy Minerals
Units Overall Recovery
Zircon
Rutile
Ilmenite
Garnet
Magnetite		 % 77
% 50
% 78
% 80
% 57

The PFS was presented at the appropriate level of design required to support the recovery, throughput, and production estimates. The processing flowsheet is representative of the deposit in terms of material type, grades, and spatial distribution (Figure 3).

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MFU MFU
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Figure 3 – Schematic of Inland Strand mining and mineral processing

Liberated ore from the PCP is deslimed and processed via conventional, primary, gravity concentration plants to recover valuable heavy minerals as a HMC. The Company’s existing PCP are used as the primary concentrators. Strandline HMC is stockpiled at the primary concentrator and then fed to the Company’s existing GSP-SCP to produce ilmenite, garnet and non-magnetics concentrates for sale. Slimes are pumped to a slime thickener situated at the Aquaculture Dam for water recovery before co-disposal into the mining void with coarse gravity tailings.

Current operational costs have been used as the basis for operating cost estimates used in the estimation of the cashflow grade for the Western Inland Strand deposit.

Basis of the cut-off grade

The Mineral Resource is reported to a 2% THM cut-off grade in accordance with JORC Code 2012. This updated Ore Reserve is based on a value model that assigns mining and processing recoveries, costs, and revenue to the geological model. This value model follows the entire mining process from soil stripping to final rehabilitation. An economic optimisation is applied to determine the cashflow grade of each block to every destination. Material is then characterised as being either cashflow positive or cashflow negative. Material is designated as ore where the cashflow grade ($/t) is positive.

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Figure 4 – Oblique view of Cashflow Grade ($/t) for the Western Strandline within the final pit (rf=1) and filtered to the Extended Mining Right (orange boundary) at 36mRL

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Material modifying factors

The Expanded Mining Right (162 &163 EMR) was granted on 30 June 2020 and all regulatory approvals have been awarded. An environmental impact assessment (“ EIA ”) has been completed by SRK Consulting as an independent environmental consultant and environmental approvals have been granted. The current Ore Reserves sit within the Company-owned 1,741 hectares farm Geelwal Karoo 262 which covers the entire Prospecting Right 10262. The Company intends to apply for an additional Mining Right (MR) over the balance of Prospecting Right 10262, outside of the Expanded Mining Right area.

Mineral sands mining and processing operations at Tormin have been ongoing since 2014 and the local community is generally familiar with heavy mineral sands operations and product transport. There are also other resource extraction operations within the district and the Company has been operating successfully in the region for more than 9 years to date. MSR’s strong investment in the social and economic upliftment of Historically Disadvantaged South Africans (“ HDSA ”) and the ongoing support of its Black Economic Empowerment (“ BEE ”) partners in the Tormin Mineral Sands Operation will continue to grow under the proposed mine expansion.

All of the infrastructure requirements already exists at the Tormin site. MSR is investigating connecting to the Eskom national electricity grid to provide power and replace the current gensets as a cost-effective power supply option for the expansion plant via supply of up to10MVA from the adjacent wind energy facility. In this event, a 22kV underground powerline of approximately 4km will be installed from the Sere wind farm substation to a new MSR substation.

Marketing arrangements are commercially sensitive, but price assumptions are based on fixed price and volume contracted sales agreements and commercial negotiations. Long term sale price assumptions used in the estimation of cashflow grades and subsequent ore reserve:

  • Garnet concentrate – US$154 per tonne.

  • Ilmenite concentrate – US$150 per tonne.

  • Magnetite concentrate – US$125 per tonne.

  • Non-magnetic concentrate – US$1,051 per tonne.

Generally, the bulk mineral concentrates (ilmenite and garnet concentrates) are trucked to the port of Saldanha for export, while the non-magnetic and magnetite (bagged) concentrates are trucked to the port of Cape Town, where they are containerised and exported. Transport costs comprise a significant portion of operational costs. Transport costs used in the estimation of cashflow grades and subsequent ore reserve:

  • Garnet concentrate – US$21.75 per tonne.

  • Ilmenite concentrate – US$21.75 per tonne.

  • Magnetite concentrate – US$50 per tonne.

  • Non-magnetic concentrate – US$50 per tonne.

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The PFS was completed by Minsol Engineering and generated into a financial model. The capex is presented with an order of accuracy of ±20%, developed on the Association for the Advancement of Cost Engineering (“ AACE ”) guidelines for cost estimation. The PFS has met AACE requirements for a PFS, with several activities completed to Feasibility standard including, but not limited to, process selection, flowsheet development, engineering specifications, and equipment pricing. Furthermore, the database used to supplement the development of the cost estimate includes both current pricing from similar projects in South Africa and historical cost data from several projects completed at Tormin, including expansion projects in 2014-16 that draw many similarities with the current project.

The operation of 1.2Mtpa has been considered as a base case (“ Stage 1 ”) and the Company is currently in the process of realising this case. Further, the Company is planning an increase of operation to 2.4Mtpa by late 2024 (“ Stage 2 ”) with additional capital cost of approximately US$1.8M. The project implementation duration for the expanded case to 2.4Mtpa (Stage 2) is estimated to be 26-28 weeks. The implementation schedule is based on design development, vendor quoted manufacturing periods, local contractor installation timeframes, and commissioning requirements. The key financial metrics from the PFS are outlined in Table 5.

Table 5 – PFS Capital cost and Processing cost assumption for the Western Strandline

Real 2021 Prices (US$) Stage 1
FY2022 – 2024		 Stage 2
FY2025 – 2032		 LOM
Operation 1.2Mtpa 2.4Mtpa
Production 320ktpa HMC 630ktpa HMC
Pre-tax project NPV7 US$ 63.1M
Post-tax project NPV7 US$ 42.8M
Capital cost US$ 3.0M US$ 1.8M US$ 4.8M
Revenue US$ 73.5M US$ 321.4M US$ 394.9M
EBITDA US$ 11.4M US$ 96.1M US$ 107.5M
  • Numbers have been rounded.

This PFS methodology was used for the current reserve estimates. The Company intends to accelerate development of Stage 2 to the December quarter 2022.

Refer to the JORC TABLE 1 below for further explanatory notes.

ENDS

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Issued by Mineral Commodities Ltd ACN 008 478 653 www.mineralcommodities.com

Authorised by the Interim Chief Executive Officer and Company Secretary, Mineral Commodities Ltd

For further information, please contact:

INVESTORS & MEDIA Adam Bick Interim Chief Executive Officer T: +61 8 8 6373 8900 [email protected]

CORPORATE Katherine Garvey Company Secretary T: +61 8 6373 8900 [email protected]

About Mineral Commodities Ltd

Mineral Commodities Ltd is a global mining and development company with a primary focus on the production of high-grade Mineral Sands and Natural Flake Graphite from operations in South Africa and Norway.

The Company is a leading producer of zircon, rutile, garnet, magnetite, and ilmenite concentrates through its Tormin Mineral Sands Operation, located on the Western Cape of South Africa.

The Company owns and operates the Skaland Graphite Operation in Norway, the world’s highest-grade operating flake graphite mine and is the only producer in Europe. The planned development of the Munglinup Graphite Project, located in Western Australia, builds on the Skaland acquisition and is a further step toward an integrated, downstream value-adding strategy which aims to capitalise on the fast-growing demand for sustainably manufactured lithium-ion batteries.

In April 2022, the Company released its Five-Year Strategic Plan 2022-2026[14] to delineate and implement its aspiration to become a leading vertically integrated diversified producer of graphitic anode materials and value added mineral products with a commitment to operate with a focus on the Environment, Sustainability and Governance.

14 Refer ASX Announcement entitled ‘MRC Unveils Five Year Strategic Plan 2022-2026’ dated 29 April 2022.

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Cautionary Statement

This announcement contains forward-looking statements. Any forward-looking statements reflect management’s current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. It should be noted that various factors may cause actual results or expectations to differ materially from the results expressed or implied in the forward-looking statements.

These forward-looking statements are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are beyond MRC’s control. This may cause actual results and developments to differ materially from those expressed or implied. These risks include but are not limited to, economic conditions, stock market fluctuations, commodity demand and price movements, access to infrastructure, timing of approvals, regulatory risks, operational risks, reliance on key personnel, Ore Reserve and Mineral Resource estimates, native title, foreign currency fluctuations, exploration risks, mining development, construction, and commissioning risk.

Forward-looking statements in this announcement apply only at the date of issue and are subject to any continuing obligations under applicable law or regulations, MRC does not undertake to publicly update or revise any of the forward-looking statements in this announcement or to advise of any change in events, conditions, or circumstances on which any such statement is based. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this announcement.

Competent Persons Statement

The information in this Announcement related to Sampling Techniques and Data, and Exploration Results is based on information compiled and has been approved for release by Ms Thuli Hlela. Ms Hlela is a Registered Professional Natural Scientist ("Pr.Sci.Nat") with the South African Council for Natural Scientific Professions ("SACNASP") and a member of Geological Society of South Africa ("GSSA"), a Recognised Professional Organisation ("RPO"). She is Mineral Resources Manager of Mineral Sands Resources ("MSR") and a full-time employee of the Company. She has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity she is undertaking to qualify as a Competent Person in accordance with the JORC Code (2012). Ms Hlela consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

The information in this Announcement related to Mineral Resources is based on information compiled and approved for release by Mr. Chris De-Vitry, who is a member of the Australian Institute of Mining and Metallurgy (“AusIMM”) and the Australian Institute of Geoscientists (“AIG”). Mr. De-Vitry is a Principal Consultant at Manna Hill GeoConsulting Pty Ltd. He has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity, he is undertaking to qualify as a Competent Person in accordance with the JORC Code (2012).

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The information from Mr. De-Vitry was prepared under the JORC Code (2012). Mr. DeVitry consents to the inclusion in this ASX release in the form and context in which it appears.

The information in this Announcement related to Ore Reserves is based on information compiled and has been approved for release by Mr. Daniel Hastings, who is a member of the Australian Institute of Mining and Metallurgy (“AusIMM”). Mr. Hastings is a Principal Consultant at Quantified Strategies Pty Ltd and has over 25 years of mining experience in a variety of mineral deposits and styles. Mr. Hastings has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person in accordance with the JORC Code (2012). The information from Mr. Hastings was prepared under the JORC Code (2012). Mr. Hastings consents to inclusion in the report of the matters based on this information in the form and context in which it appears.

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Appendix 1 JORC TABLE 1 Section 1 Sampling Techniques and Data

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(Criteria in this section apply to all succeeding sections)

Criteria JORC Code Explanation Commentary
Sampling
techniques		 Nature and quality of sampling (eg
cut channels, random chips, or
specific specialised industry standard
measurement tools appropriate to
the minerals under investigation,
such as down hole gamma sondes,
or handheld XRF instruments, etc).
These examples should not be taken
as limiting the broad meaning of
sampling.
Include reference to measures taken
to ensure sample representivity and
the appropriate calibration of any
measurement tools or systems used.
Aspects of the determination of
mineralisation that are Material to the
Public Report. In cases where
‘industry standard’ work has been
done this would be relatively simple
(eg ‘reverse circulation drilling was
used to obtain 1m samples from
which 3kg was pulverised to produce
a 30g charge for fire assay’). In other
cases, more explanation may be
required, such as where there is
coarse gold that has inherent
sampling problems. Unusual
commodities or mineralisation types
(eg submarine nodules) may warrant
disclosure of detailed information.		 The current resource database consists of 507 aircore
holes and 2 sonic holes, representing 13,251m of
vertical drilling, and their analytical data.
Sample taken from surface to bedrock.
Mineralogical studies and grade testwork undertaken
according to mine control standards within Tormin mine
site laboratory.
Sampled exclusively by vertical holes.
One-metre air core drill samples from a cyclone were
collected in 20-25kg plastic bags.
Each bag was riffle split into two pre-numbered calico
bags of ~5kg each and the remainder of the samples
collected in a large plastic bag.
5kg samples were submitted directly to the Tormin mine
laboratory to be analysed for oversize, slimes, and
heavy minerals.
The laboratory sample was dried, de-slimed (removal of
-45 micron fraction) and screen (+2mm oversize).
200g of sample split to use for heavy liquid separation
using Bromoform with density range between 2.92 and
2.96g/ml to define THM content.
Drilling
techniques		 Drill type (eg core, reverse
circulation, open-hole hammer,
rotary air blast, auger, Banka, sonic,
etc) and details (eg core diameter,
triple or standard tube, depth of
diamond tails, face- sampling bit or
other type, whether core is oriented
_and if so, by what method, etc). _		 Air core drilling was used. Air core drilling is considered a
standard industry drilling method for HMS
mineralisation.
78mm and 85mm drill bits and rods were used.
Two sonic holes by wide barrel (137mm) drilled.
All holes were drilled vertically.
Drill sample
recovery		 Method of recording and assessing
core and chip sample recoveries and
results assessed.
Measures taken to maximise sample
recovery and ensure representative
nature of the samples.
Whether a relationship exists
between sample recovery and grade
and whether sample bias may have		 Metric samples from aircore drill were taken and riffled
down to a representative sample for heavy liquid
separation and XRD.
No sample loss or cavitation were experienced. Dry
samples may lose some of their slimes fraction due to
blowing out of sampling equipment, however HM are not
affected.
Sample recovery was excellent.

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The aircore and sonic drilling provide high quality
samples from the face of the drill hole.
Each hole was logged by a geologist on pre-printed log
sheets, transcribed to excel and transferred to a cloud
hosted geological database
Geological and lithological observations per depth were
recorded together with field sections and hand drawn
down-the-hole logs.
Special attention was given to heavy minerals
intersected as a guide to potential marine strandlines
and marine diamond deposits.
Percentage HMS was recorded from visual observations
as well as the magnetic content of each metre by
handheld pen magnet.
Marine gravels and contact with basement bedrock
recorded as maximum depth of mineralisation.
Each 1m sample was washed and sieved to obtain a
representative sample stored in numbered chiptrays.
Sampling over 1m down the hole intervals as
determined by 1m marks on the rig mast.
Drill samples were riffle split into approximately 3kg
samples to be assayed.
All samples were dry.
Technicians undertaking the splitting were supervised by
mine site geologists to ensure sampling quality.
The sample sizes were considered suitable, based on
industry practices of mineral sand exploration.
Field duplicate samples were riffled for the Tormin mine
laboratory and external QA/QC checks for every 25th
sample
Lab duplicate samples were split for the Tormin mine
laboratory and for external QA/QC checks.
All sample analyses were undertaken by the Tormin
mine laboratory.
The mine owns and operates a state of the art heavy
liquid separation (HLS) lab using bromoform with
density range between 2.92 and 2.96g/ml with
Panalytical XRD machines (the Rietveld method after
HLS in an automated mode setup). All grades reported
are from XRD results on heavy liquid sink.
Industrial laboratory XRF machines (Panalytical Epsilon
3 ED) are used by Tormin mine as a grade verification
check on the XRD zircon content.
Criteria JORC Code Explanation Commentary
occurred due to preferential loss/gain
of fine/coarse material.		 The aircore and sonic drilling provide high quality
samples from the face of the drill hole.
Logging Whether core and chip samples have
been geologically and geotechnically
logged to a level of detail to support
appropriate Mineral Resource
estimation, mining studies and
metallurgical studies.
Whether logging is qualitative or
quantitative in nature. Core (or
costean, channel, etc) photography.
The total length and percentage of
the relevant intersections logged.		 Each hole was logged by a geologist on pre-printed log
sheets, transcribed to excel and transferred to a cloud
hosted geological database
Geological and lithological observations per depth were
recorded together with field sections and hand drawn
down-the-hole logs.
Special attention was given to heavy minerals
intersected as a guide to potential marine strandlines
and marine diamond deposits.
Percentage HMS was recorded from visual observations
as well as the magnetic content of each metre by
handheld pen magnet.
Marine gravels and contact with basement bedrock
recorded as maximum depth of mineralisation.
Each 1m sample was washed and sieved to obtain a
representative sample stored in numbered chiptrays.
Sub-
sampling
techniques
and sample
preparation		 If core, whether cut or sawn and
whether quarter, half or all core taken.
If non-core, whether riffled, tube
sampled, rotary split, etc and
whether sampled wet or dry.
For all sample types, the nature,
quality, and appropriateness of the
sample preparation technique.
Quality control procedures adopted
for all sub-sampling stages to
maximise representivity of samples.
Measures taken to ensure that the
sampling is representative of the in
situ material collected, including for
instance results for field
duplicate/second-half sampling.
Whether sample sizes are
appropriate to the grain size of the
material being sampled.		 Sampling over 1m down the hole intervals as
determined by 1m marks on the rig mast.
Drill samples were riffle split into approximately 3kg
samples to be assayed.
All samples were dry.
Technicians undertaking the splitting were supervised by
mine site geologists to ensure sampling quality.
The sample sizes were considered suitable, based on
industry practices of mineral sand exploration.
Field duplicate samples were riffled for the Tormin mine
laboratory and external QA/QC checks for every 25th
sample
Lab duplicate samples were split for the Tormin mine
laboratory and for external QA/QC checks.
Quality of
assay data
and
laboratory
tests		 The nature, quality and
appropriateness of the assaying and
laboratory procedures used and
whether the technique is considered
partial or total.
For geophysical tools,
spectrometers, handheld XRF
instruments, etc, the parameters
used in determining the analysis
including instrument make and
model, reading times, calibrations
factors applied and their derivation,		 All sample analyses were undertaken by the Tormin
mine laboratory.
The mine owns and operates a state of the art heavy
liquid separation (HLS) lab using bromoform with
density range between 2.92 and 2.96g/ml with
Panalytical XRD machines (the Rietveld method after
HLS in an automated mode setup). All grades reported
are from XRD results on heavy liquid sink.
Industrial laboratory XRF machines (Panalytical Epsilon
3 ED) are used by Tormin mine as a grade verification
check on the XRD zircon content.

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The Tormin mine laboratory completes its own internal
QA/QC using Certified Reference Material (“CRM”) at
the rate of approximately 1 in 50 and sending every 25th
sample to the external labs for independent check
analysis.
271 field duplicates plus 80 blank samples, and 56
CRMs were included into the sample stream and
submitted to the lab.
The CRMs, blank and duplicate sample results are within
accepted limits.
External sampling checks for XRD have been done by
XRD Analytical and Consulting (398 samples) and UIS
Analytical Services (20 samples) and for XRF in Mintek
and UIS Analytical Services (10 samples each),
accredited laboratories in Pretoria and Johannesburg.
Also,10 samples have been assayed in Mintek and UIS
Analytical Services by ICP-MS for trace elements and
REEs.
The adopted QA/QC protocols are appropriate for the
Mineral Resource and public reporting and QA/QC
system returning acceptable results.
QEMSCAN testwork on 18 composite samples by SGS,
ALS and SJT MetMin was used for verification of the
mineral assemblage and the component mineralogy as
well as grain size distribution and HMS particle size.
Additionally, optical microscopy grain counting was used
to confirm heavy mineral assemblage on 4 composite
samples.
No geophysical tools or handheld instruments were
utilised in the sample analysis.
All sampling was undertaken by mine site personnel
overseen by a qualified and experienced mine geologist
and independent consultants.
All sample preparation was carried out by qualified staff,
supervised by chemists and the laboratory manager.
The lab results and logging have been reviewed by
external consultants to MSR as well as internally by
MRC’s exploration manager.
10 twinned holes were drilled in different fence lines to
assess stationarity.
48 holes (1,192m) from historical drilling were verified
and included into the resource model.
The drillhole logs have been converted to electronically
stored formats and stored in a database provided by
Maxgeo (DataShed). This database is hosted on an
offsite server supplied by Maxgeo and managed by their
trained database staff.
No adjustments to assaydata results were made
Criteria JORC Code Explanation Commentary
etc.
Nature of quality control procedures
adopted (eg standards, blanks,
duplicates, external laboratory
checks) and whether acceptable
levels of accuracy (ie lack of bias) and
precision have been established.		 The Tormin mine laboratory completes its own internal
QA/QC using Certified Reference Material (“CRM”) at
the rate of approximately 1 in 50 and sending every 25th
sample to the external labs for independent check
analysis.
271 field duplicates plus 80 blank samples, and 56
CRMs were included into the sample stream and
submitted to the lab.
The CRMs, blank and duplicate sample results are within
accepted limits.
External sampling checks for XRD have been done by
XRD Analytical and Consulting (398 samples) and UIS
Analytical Services (20 samples) and for XRF in Mintek
and UIS Analytical Services (10 samples each),
accredited laboratories in Pretoria and Johannesburg.
Also,10 samples have been assayed in Mintek and UIS
Analytical Services by ICP-MS for trace elements and
REEs.
The adopted QA/QC protocols are appropriate for the
Mineral Resource and public reporting and QA/QC
system returning acceptable results.
QEMSCAN testwork on 18 composite samples by SGS,
ALS and SJT MetMin was used for verification of the
mineral assemblage and the component mineralogy as
well as grain size distribution and HMS particle size.
Additionally, optical microscopy grain counting was used
to confirm heavy mineral assemblage on 4 composite
samples.
No geophysical tools or handheld instruments were
utilised in the sample analysis.
Verification
of sampling
and
assaying		 The
verification
of significant
intersections by either independent or
alternative company personnel.
The use of twinned holes.
Documentation of primary data,
data entry procedures, data
verification, data storage (physical
and electronic) protocols.
Discuss any adjustment to assay
data.		 All sampling was undertaken by mine site personnel
overseen by a qualified and experienced mine geologist
and independent consultants.
All sample preparation was carried out by qualified staff,
supervised by chemists and the laboratory manager.
The lab results and logging have been reviewed by
external consultants to MSR as well as internally by
MRC’s exploration manager.
10 twinned holes were drilled in different fence lines to
assess stationarity.
48 holes (1,192m) from historical drilling were verified
and included into the resource model.
The drillhole logs have been converted to electronically
stored formats and stored in a database provided by
Maxgeo (DataShed). This database is hosted on an
offsite server supplied by Maxgeo and managed by their
trained database staff.
No adjustments to assaydata results were made

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outside the standard XRD and XRF calibration software
beingused.
Hole collars were surveyed by DGPS accurate to within
+/- 100 millimeters by mine surveyors.
Down hole surveys for shallow vertical air core holes are
not required.
WGS 84 datum and UTM/ zone 34S coordinate system
is used.
Systematic grade spacing used in the drilling program
was 250m x 20m containing 30 fence lines.
Each drillhole is spaced 20m apart along each
drill line perpendicular to the strandline inferred strike.
The above-mentioned drill fence line is 250m apart
along the strandline strike.
infill fence lines with 500m x 25m and 250m x 25m
grade were drilled between the primary lines.
16 holes from historical drilling were verified and
included in the resource model.
10 twinned holes were drilled in different fence lines.
Vertical drilling to intersect sub-horizontal strata.
Orientation of the drillholes will not result in sampling
bias.
Sampling was carried out using pre-printed calico bags
to prevent mislabeling.
All sample bag numbers were logged against the drillhole
by the site geologist.
Three samples per metre drilled were produced. The
reject was stored securely in a bag farm for reference,
one for external QA/QC use and one was sent directly to
the mine lab at the end of each day’s drilling into a secure
area.
The Tormin mine laboratory inspected the submitted
samples and did not report any missing, nor any error of
the samples against the sample lists.
Where external laboratories were used, their chain of
custody controls for shipping and sample submission
were used.
Criteria JORC Code Explanation Commentary
outside the standard XRD and XRF calibration software
beingused.
Location of
data points		 Accuracy and quality of surveys used
to locate drillholes (collar and down-
hole surveys), trenches, mine
workings and other locations used in
Mineral Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic
control.		 Hole collars were surveyed by DGPS accurate to within
+/- 100 millimeters by mine surveyors.
Down hole surveys for shallow vertical air core holes are
not required.
WGS 84 datum and UTM/ zone 34S coordinate system
is used.
Data
spacing and
distribution		 Data spacing for reporting of
exploration results.
Whether the data spacing and
distribution are sufficient to establish
the degree of geological and grade
continuity appropriate for the Mineral
Resource and Ore Reserve
estimation procedure(s) and
classifications applied.
Whether sample compositing has
been applied.		 Systematic grade spacing used in the drilling program
was 250m x 20m containing 30 fence lines.
Each drillhole is spaced 20m apart along each
drill line perpendicular to the strandline inferred strike.
The above-mentioned drill fence line is 250m apart
along the strandline strike.
infill fence lines with 500m x 25m and 250m x 25m
grade were drilled between the primary lines.
16 holes from historical drilling were verified and
included in the resource model.
10 twinned holes were drilled in different fence lines.
Orientation
of data in
relation to
geological
structure		 Whether the orientation of sampling
achieves
unbiased
sampling
of
possible structures and the extent to
which this is known, considering the
deposit type.
If the relationship between the drilling
orientation and the orientation of key
mineralised structures is considered
to have introduced a sampling bias,
this should be assessed and
reported if material.		 Vertical drilling to intersect sub-horizontal strata.
Orientation of the drillholes will not result in sampling
bias.
Sample
security		 The measures taken to ensure sample
security.		 Sampling was carried out using pre-printed calico bags
to prevent mislabeling.
All sample bag numbers were logged against the drillhole
by the site geologist.
Three samples per metre drilled were produced. The
reject was stored securely in a bag farm for reference,
one for external QA/QC use and one was sent directly to
the mine lab at the end of each day’s drilling into a secure
area.
The Tormin mine laboratory inspected the submitted
samples and did not report any missing, nor any error of
the samples against the sample lists.
Where external laboratories were used, their chain of
custody controls for shipping and sample submission
were used.

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The lab results and logging have been reviewed by
external consultants to MSR and internally as part of
normal validation processes by MRC.
Criteria JORC Code Explanation Commentary
Audits or
reviews		 The results of any audits or reviews of
sampling techniques and data.		 The lab results and logging have been reviewed by
external consultants to MSR and internally as part of
normal validation processes by MRC.

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section)

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Criteria JORC Code Explanation Commentary
Mineral
tenement and
land tenure
status		 Type, reference name/number,
location and ownership including
agreements or material issues
with third parties such as joint
ventures, partnerships, overriding
royalties, native title interests,
historical sites, wilderness or
national park and environmental
settings.
The security of the tenure held at
the time of reporting along with
any known impediments to
obtaining a licence to operate in
the area.		 The area has a granted prospecting right (WC
30/5/1/1/2/10262 PR) in the name of Mineral Sands
Resources (Pty) Ltd, a subsidiary of ASX listed Mineral
Commodities Ltd (ASX: MRC).
This Prospecting Right (Inland Strand) incorporates an
area approximately 12km in length covering 1,741
hectares of coastal area adjacent to the existing beach
mining operations on the Company-owned farm Geelwal
Karoo 262.
162 and 163 Expanded Mining Right (WC
30/5/1/2/2/10108 MR) encompassing the Northern
Beaches and Inland Strandline expansion project was
approved by the Department of Mineral Resources -
South Africa on 30 June 2020.
MSR has been operating successfully in the region for
more than 8 years to date.
Exploration
done by other
parties		 Acknowledgment and appraisal of
exploration by other parties.		 The general area has been investigated and mined for
heavy mineral deposits as far back as the 1930s
(Haughton, 1931). Subsequent geological surveys and
exploration programs investigated the distribution,
mineralogy, and economic potential of the heavy mineral
sands along the coastline of Geelwal Karoo (Toerien &
Groeneveld 1957, Abele 1989, Swart 1990, Barnes
1998) and Trans Hex 1989-1991).
De Beers drilled 9 fence lines across the property and
bulk sampled the area in the 1960s.
During 1999, Trans Hex conducted additional onshore
drilling of strandlines and identified the inland raised
beach deposits containing heavy minerals. Trans Hex
subsequently bulk sampled the material by digging
several trenches in 1999-2000.
Geelwal Karoo Diamante conducted small diameter
forum drilling to a depth of 40m between 2000 and 2002,
with a total of 42 drillholes.
Extensive work, including mining of the inshore
strandlines along the coast, was undertaken by
Namakwa Diamond Company in 2003-2005. This work
also identified the presence of the Inland Strand.

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The western coastal plain of South Africa contains a
significant resource of detrital heavy minerals by world
standards.
The heavy mineral sand deposits occur in a current
active beach environment (eg Tormin mine) as well as in
older palaeo-beach raised strandlines found inland
(inland strandlines) eg Tronox Namakwa Sands.
Apart from the mid-Jurassic, Cretaceous and Tertiary
(Paleogene) sediments along the coast, numerous small
fossiliferous, marine, and terrestrial deposits of Neogene
age outcrop along the coastal zone.
The onshore mineral sands are marine palaeo-terraces
“Inland Strands”, aeolian sands and fluvial sediments.
These targets were formed during Miocene, Pliocene,
and Quaternary/Pleistocene coastal transgression (sea
move inland) and regression cycles.
The lithological units of the Western Strandline can be
described as below:
Aeolian Sand – non mineralised
Red Aeolian Sand – mineralised
Silcrete Duricrust/ Dorbank
Orange Feldspathic Sand – non mineralised
Orange Feldspathic Sand – mineralised
Dorbank – mineralised
Strandline – mineralised
Base pebble beds – mineralised
Schist basement
For purposes of estimation, the lithology has been
grouped into the following:
Red Aeolian Sand
Silcrete Duricrust / Dorbank
Orange Feldspathic Sand
Main Strandline Mineralisation
Secondary Perched Strandline Mineralisation
Gravel
Basement Schist
The orebody hosts mineralisation in all geological
units/layers except for the schist basement.
Criteria JORC Code Explanation Commentary
Geology Deposit type, geological setting
and style of mineralisation.		 The western coastal plain of South Africa contains a
significant resource of detrital heavy minerals by world
standards.
The heavy mineral sand deposits occur in a current
active beach environment (eg Tormin mine) as well as in
older palaeo-beach raised strandlines found inland
(inland strandlines) eg Tronox Namakwa Sands.
Apart from the mid-Jurassic, Cretaceous and Tertiary
(Paleogene) sediments along the coast, numerous small
fossiliferous, marine, and terrestrial deposits of Neogene
age outcrop along the coastal zone.
The onshore mineral sands are marine palaeo-terraces
“Inland Strands”, aeolian sands and fluvial sediments.
These targets were formed during Miocene, Pliocene,
and Quaternary/Pleistocene coastal transgression (sea
move inland) and regression cycles.
The lithological units of the Western Strandline can be
described as below:
Aeolian Sand – non mineralised
Red Aeolian Sand – mineralised
Silcrete Duricrust/ Dorbank
Orange Feldspathic Sand – non mineralised
Orange Feldspathic Sand – mineralised
Dorbank – mineralised
Strandline – mineralised
Base pebble beds – mineralised
Schist basement
For purposes of estimation, the lithology has been
grouped into the following:
Red Aeolian Sand
Silcrete Duricrust / Dorbank
Orange Feldspathic Sand
Main Strandline Mineralisation
Secondary Perched Strandline Mineralisation
Gravel
Basement Schist
The orebody hosts mineralisation in all geological
units/layers except for the schist basement.

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Commentary
The minimum hole length is 5m, maximum 60m and
average depth of drilling is 24metres.
East collar ranges – 220,261mE to 227,375mE.
North collar ranges – 6,500,851mN to 6,510,977mN.
Height collar ranges- 34.25m to 95.84m.
Azimuth ranges/dip ranges – vertical drilling.
Not relevant.
No grade cutting of HM values were undertaken.
No metal equivalents were used for reporting of
Mineral Resources.
Not relevant.
The strandline mineralisation is sub-horizontal in nature
and the air core drilling intercepts are vertical.
Thickness of intercept reported is therefore true
thickness of the mineralisation.
Criteria JORC Code Explanation Commentary
Drill hole
Information		 A summary of all information
material to the understanding of
the exploration results including a
tabulation of the following
information for all Material drill
holes:
Easting and northing of the drill
hole collar
elevation or RL (Reduced Level –
elevation above sea level in
metres) of the drill hole collar
dip and azimuth of the hole
down hole length and interception
depth
hole length.
If the exclusion of this information
is justified on the basis that the
information is not Material and
this exclusion does not detract
from the understanding of the
report, the Competent Person
should clearly explain why this is
the case.		 The minimum hole length is 5m, maximum 60m and
average depth of drilling is 24metres.
East collar ranges – 220,261mE to 227,375mE.
North collar ranges – 6,500,851mN to 6,510,977mN.
Height collar ranges- 34.25m to 95.84m.
Azimuth ranges/dip ranges – vertical drilling.
Data
aggregation
methods		 In reporting Exploration Results,
weighting averaging techniques,
maximum and/or minimum grade
truncations (eg cutting of high
grades) and cut-off grades are
usually Material and should be
stated.
Where aggregate intercepts
incorporate short lengths of high
grade results and longer lengths
of low grade results, the
procedure used for such
aggregation should be stated and
some typical examples of such
aggregations should be shown in
detail.
The assumptions used for any
reporting of metal equivalent
values should be clearly stated.		 Not relevant.
No grade cutting of HM values were undertaken.
No metal equivalents were used for reporting of
Mineral Resources.
Relationship
between
mineralisation
widths and
intercept
lengths		 These relationships are
particularly important in the
reporting of Exploration Results.
If the geometry of the
mineralisation with respect to the
drill hole angle is known, its
nature should be reported.
If it is not known and only the		 Not relevant.
The strandline mineralisation is sub-horizontal in nature
and the air core drilling intercepts are vertical.
Thickness of intercept reported is therefore true
thickness of the mineralisation.

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Commentary
Maps, sections and plan views are provided in the main
body of the report and previous market releases.
Statistics of drillhole grades used during the Mineral
Resource Estimate are contained in the main body of
the report.
This report provides the total information available to
date and is considered to represent a balanced report.
Historical drill data is not reported as it is classified as
historical foreign estimates that are non-JORC
compliant.
Aeromagnetic geophysical data has been used for
drilling target delineations.
Only 48 holes (1,192m) from historical drilling were
verified and included into the resource model. This is an
increase from the previous model, as new drilling has
confirmed logging and assays from more of the
historical dataset.
Further drilling is planned to increase
Measured/Indicated resources over the Western
Strandline.
Criteria JORC Code Explanation Commentary
down hole lengths are reported,
there should be a clear statement
to this effect (eg ‘down hole
length, true width not known’).
Diagrams Appropriate maps and sections
(with scales) and tabulations of
intercepts should be included for
any significant discovery being
reported These should include,
but not be limited to a plan view of
drill hole collar locations and
appropriate sectional views.		 Maps, sections and plan views are provided in the main
body of the report and previous market releases.
Balanced
reporting		 Where comprehensive reporting of
all Exploration Results is not
practicable, representative
reporting of both low and high
grades and/or widths should be
practiced to avoid misleading
reporting of Exploration Results.		 Statistics of drillhole grades used during the Mineral
Resource Estimate are contained in the main body of
the report.
This report provides the total information available to
date and is considered to represent a balanced report.
Other
substantive
exploration
data		 Other exploration data, if
meaningful and material, should
be reported including (but not
limited to): geological
observations; geophysical survey
results; geochemical survey
results; bulk samples – size and
method of treatment; metallurgical
test results; bulk density,
groundwater, geotechnical and
rock characteristics; potential
deleterious or contaminating
substances.		 Historical drill data is not reported as it is classified as
historical foreign estimates that are non-JORC
compliant.
Aeromagnetic geophysical data has been used for
drilling target delineations.
Only 48 holes (1,192m) from historical drilling were
verified and included into the resource model. This is an
increase from the previous model, as new drilling has
confirmed logging and assays from more of the
historical dataset.
Further work The nature and scale of planned
further work (eg tests for lateral
extensions or depth extensions or
large-scale step-out drilling).
Diagrams clearly highlighting the
areas of possible extensions,
including the main geological
interpretations and future drilling
areas, provided this information is
_not commercially sensitive. _		 Further drilling is planned to increase
Measured/Indicated resources over the Western
Strandline.

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Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in the preceding sections also apply to this section)

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Criteria JORC Code Explanation Commentary
Database
integrity		 Measures taken to ensure that
data has not been corrupted by,
for example, transcription or
keying errors, between its initial
collection and its use for Mineral
Resource estimation purposes.
Data validation procedures used.		 The data was plotted, and plots were as expected with no mis-
plots or extraneous data found. Maximum and minimum values
and average values were all within the norm. Duplicate values
were confirmed as such. The coordinates were confirmed as
being WGS84 UTM zone 34S.
Data is stored in an offsite database hosted by Maxgeo.
Site visits Comment on any site visits
undertaken by the Competent
Person and the outcome of
those visits.
If no site visits have been
undertaken indicate why this is
the case.		 The previous Competent Person was a full-time employee of
Mineral Commodities Ltd. However, the new Competent Person
as off 2022 has not had sufficient time to visit site.
A site visit is planned for 2023.
Geological
interpretation		 Confidence in (or conversely,
the uncertainty of) the
geological interpretation of the
mineral deposit.
Nature of the data used and of
any assumptions made.
The effect, if any, of alternative
interpretations on Mineral
Resource estimation.
The use of geology in guiding
and controlling Mineral
Resource estimation.
The factors affecting continuity
_both ofgrade andgeology. _		 The deposit is a classic inland strandline mineral sands deposit
with no doubt as to its genesis.
The grain size characteristics are interpreted to support an
offshore depositional setting, closer to the shoreline position.
Samples were collected for resource estimation purposes.
The geology/topography of the deposit has been used to
constrain the resource envelope. The data was partitioned into
areas (subsets) based on geology/topography. The base of the
deposit is defined by the underlying bedrock, the landward side
by barren land and sand dunes.
Dimensions The extent and variability of the
Mineral Resource expressed as
length (along strike or
otherwise), plan width, and
depth below surface to the
upper and lower limits of the
Mineral Resource.		 The total deposit, inside MSR controlled Prospecting Rights,
has a strike length of approximately 12,125m and an average
width (including low grade halo) of 380m. High grade
strandline core of the deposit averages approximately 200m
width, along the entire strike length. It is developed from
surface to a maximum depth of 49m and the average resource
thickness is approximately 21m (including low grade halo). The
deposit occurs from the surface down.
Estimation and
modelling
techniques		 The nature and appropriateness
of the estimation technique(s)
applied and key assumptions,
including treatment of extreme
grade values, domaining,
interpolation parameters and
maximum distance of
extrapolation from data points. If
a computer assisted estimation
method was chosen, include a
description of computer
software and parameters used.
The availability of check		 Micromine software was used to domain and estimate each of
the valuable heavy minerals and THM. Domains were snapped
to the nearest true intersection from sampling.
Samples were generally 1.0m in length however there were
some 4m long field composites. The entire data set was
composited down to 1m.
Outlier values were cut based on local analysis for each
lithology. Only THM percentage was required to be top cut for
the low grade Dorbank and RAS lithologies (cut to 30% and
15% respectively), and the only constituent mineral requiring a
top cut was Garnet within the RAS (cut to 10%).

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Commentary
Data was extrapolated between data points and approximately
half of the drill spacing beyond. Data points are nominally
125m x 25m to 250m x 25m. There are generally between 2-15
drill holes per line (average 7 holes).
Ordinary Kriging was used as the primary estimator. Each
variable was estimated separately, using variograms created
for each lithology.
An anisotropic search was used, with the variable ratios of
direction of greatest continuity: Across the continuity: depth
(STRAND 1:0.4:0.04, LGSANDS 4:0.4:0.08). A maximum
search distance of 500m was used for the STRAND unit, and
750m for LGSAND units. Octant searching was used, with a
maximum points per sector of between 5 and 12. Minimum
points to estimate a block were 5. These neighborhood
parameters were all confirmed using Quantitative Kriging
Neighborhood Analysis.
This is a resource estimate and mining parameters are not
used beyond normal global parameters of grades, dimensions,
and accessibility.
An in-depth validation process was used to test the robustness
of the modelled data, including visual checks, check estimates
(NN), swath plots and detailed statistical comparisons.
The results of the validation of the block model show
acceptable correlation of the input data to the estimated
grades.
Maiden Mineral Resources have been previously estimated for
the Western Strandline in August 2020.
The resource tonnages are estimated on a dry basis.
Final reported resources were based on a 2% THM cut-off
grade for blocks as this is the current minimum grade where
there is a reasonable expectation for eventual extraction.
2% cut off grade was based on grade-tonnage curves with
respect to THM and VHM assemblage. Also considered was
current and anticipated plant performance, and other similarly
sized deposits in the region.
A VHM cut-off for resources would be more accurate than a
THM cut-off. This is because the proportion of VHM within the
THM varies. MSR plan to transition from a THM cut-off to a
VHM cut-off for external reportingof resources.
Criteria JORC Code Explanation Commentary
estimates, previous estimates
and/or mine production records
and whether the Mineral
Resource estimate takes
appropriate account of such
data.
The assumptions made
regarding recovery of by-
products.
Estimation of deleterious
elements or other non-grade
variables of economic
significance (eg sulphur for acid
mine drainage characterisation).
In the case of block model
interpolation, the block size in
relation to the average sample
spacing and the search
employed.
Any assumptions behind
modelling of selective mining
units.
Any assumptions about
correlation between variables.
Description of how the
geological interpretation was
used to control the resource
estimates.
Discussion of basis for using or
not using grade cutting or
capping.
The process of validation, the
checking process used, the
comparison of model data to
drill hole data, and use of
reconciliation data if available.		 Data was extrapolated between data points and approximately
half of the drill spacing beyond. Data points are nominally
125m x 25m to 250m x 25m. There are generally between 2-15
drill holes per line (average 7 holes).
Ordinary Kriging was used as the primary estimator. Each
variable was estimated separately, using variograms created
for each lithology.
An anisotropic search was used, with the variable ratios of
direction of greatest continuity: Across the continuity: depth
(STRAND 1:0.4:0.04, LGSANDS 4:0.4:0.08). A maximum
search distance of 500m was used for the STRAND unit, and
750m for LGSAND units. Octant searching was used, with a
maximum points per sector of between 5 and 12. Minimum
points to estimate a block were 5. These neighborhood
parameters were all confirmed using Quantitative Kriging
Neighborhood Analysis.
This is a resource estimate and mining parameters are not
used beyond normal global parameters of grades, dimensions,
and accessibility.
An in-depth validation process was used to test the robustness
of the modelled data, including visual checks, check estimates
(NN), swath plots and detailed statistical comparisons.
The results of the validation of the block model show
acceptable correlation of the input data to the estimated
grades.
Maiden Mineral Resources have been previously estimated for
the Western Strandline in August 2020.
Moisture Whether the tonnages are
estimated on a dry basis or with
natural moisture, and the
method of determination of the
moisture content.		 The resource tonnages are estimated on a dry basis.
Cut-off
parameters		 The basis of the adopted
cut-off grade(s) or quality
parameters applied.		 Final reported resources were based on a 2% THM cut-off
grade for blocks as this is the current minimum grade where
there is a reasonable expectation for eventual extraction.
2% cut off grade was based on grade-tonnage curves with
respect to THM and VHM assemblage. Also considered was
current and anticipated plant performance, and other similarly
sized deposits in the region.
A VHM cut-off for resources would be more accurate than a
THM cut-off. This is because the proportion of VHM within the
THM varies. MSR plan to transition from a THM cut-off to a
VHM cut-off for external reportingof resources.

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Commentary
The resource is considered as dry mining feed and
mineralisation can be any depth or width. Dry mining
techniques are preferred in situations involving high grades.
Mining is through conventional open pit methods.
The thickness and continuous nature of the mineralisation,
supports a non-selective bulk mining method.
The Company believes there are no mining factors which
affect the assumption that the deposit has reasonable
prospects for economic mining.
The metallurgical recovery is similar to other mineral sand
operations.
Metallurgical parameters have been taken from the
metallurgical tests, and metallurgical testwork results support
the recovery. The VHM mineral assemblage, low slimes and
oversize are fit for an economic extraction.
Historical and current mining and processing operations
confirm that the metallurgical parameters used and testwork
underpinning the metallurgical assumptions are appropriate.
The most recent studies are:
2020 Tormin Expansion projects-implementation strategy by
MinSol Engineering, and
2021 Pre-feasibility study report for Inland Strandline
expansion by MinSol Engineering.
To date, the Company considers there are no metallurgical
factors which are likely to significantly affect the assumption
that the deposit has reasonable prospects of eventual
economic extraction.
There are no environmental factors likely to affect the
assumption that the deposit has reasonable prospects for
economic extraction.
The local vegetation environment generally consists of
strandveld plant communities. Topsoil stripped from the mining
operations will be stockpiled for later use during rehabilitation.
Slimes content is moderate (<10%) and tailings generated in
the processing plant will be pumped back into the open pits as
part of the rehabilitation strategy. Any excess water will be
recovered and recycled to the process.
There are no significant pollutants introduced with the tailings
and the material is inert, however further studies for tailing and
slime waste classification are ongoing.
Criteria JORC Code Explanation Commentary
Mining factors
or assumptions		 Assumptions made regarding
possible mining methods,
minimum mining dimensions
and internal (or, if applicable,
external) mining dilution. It is
always necessary as part of the
process of determining
reasonable prospects for
eventual economic extraction to
consider potential mining
methods, but the assumptions
made regarding mining methods
and parameters when
estimating Mineral Resources
may not always be rigorous.
Where this is the case, this
should be reported with an
explanation of the basis of the
mining assumptions made.		 The resource is considered as dry mining feed and
mineralisation can be any depth or width. Dry mining
techniques are preferred in situations involving high grades.
Mining is through conventional open pit methods.
The thickness and continuous nature of the mineralisation,
supports a non-selective bulk mining method.
The Company believes there are no mining factors which
affect the assumption that the deposit has reasonable
prospects for economic mining.
Metallurgical
factors or
assumptions		 The basis for assumptions or
predictions regarding
metallurgical amenability. It is
always necessary as part of the
process of determining
reasonable prospects for
eventual economic extraction to
consider potential metallurgical
methods, but the assumptions
regarding metallurgical
treatment processes and
parameters made when
reporting Mineral Resources
may not always be rigorous.
Where this is the case, this
should be reported with an
explanation of the basis of the
metallurgical assumptions
made.		 The metallurgical recovery is similar to other mineral sand
operations.
Metallurgical parameters have been taken from the
metallurgical tests, and metallurgical testwork results support
the recovery. The VHM mineral assemblage, low slimes and
oversize are fit for an economic extraction.
Historical and current mining and processing operations
confirm that the metallurgical parameters used and testwork
underpinning the metallurgical assumptions are appropriate.
The most recent studies are:
2020 Tormin Expansion projects-implementation strategy by
MinSol Engineering, and
2021 Pre-feasibility study report for Inland Strandline
expansion by MinSol Engineering.
To date, the Company considers there are no metallurgical
factors which are likely to significantly affect the assumption
that the deposit has reasonable prospects of eventual
economic extraction.
Environmental
factors or
assumptions		 Assumptions made regarding
possible waste and process
residue disposal options. It is
always necessary as part of the
process of determining
reasonable prospects for
eventual economic extraction to
consider the potential
environmental impacts of the
mining and processing
operation. While at this stage the
determination of potential
environmental impacts,
particularly for a greenfield
project, may not always be well
advanced, the status of early		 There are no environmental factors likely to affect the
assumption that the deposit has reasonable prospects for
economic extraction.
The local vegetation environment generally consists of
strandveld plant communities. Topsoil stripped from the mining
operations will be stockpiled for later use during rehabilitation.
Slimes content is moderate (<10%) and tailings generated in
the processing plant will be pumped back into the open pits as
part of the rehabilitation strategy. Any excess water will be
recovered and recycled to the process.
There are no significant pollutants introduced with the tailings
and the material is inert, however further studies for tailing and
slime waste classification are ongoing.

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Commentary
The bulk density is based on a calculation of the specific
gravity of the silica and heavy mineral content fractions of each
sample. It is therefore not fixed and fluctuates between 1.68
and 2.1 as per the formula: SG=1.68+(0.0095 x THM).
The use of a bulk density algorithm is a standard industry
practice for the estimation of mineral sands resource. There is
uncertainty that the SG formula is sufficiently accurate to
support Measured resources. MSR plan to generate a dataset
of actual density measurements for comparison against the
calculated density.
The Mineral Resources have been classified as Measured,
Indicated, and Inferred Categories, in accordance with the
2012 Australasian Code for Reporting of Mineral Resources
and Ore Reserves (“JORC Code (2012)”).
A range of criteria has been considered in determining this
classification including, Geological continuity and Drillhole
spacing:
Areas with aircore drilling spaced at 125x25m have been
generally classified Measured;
Areas with aircore drilling spaced at 250x20m have been
generally classified Indicated; and
Areas outside this has been classified as Inferred. Broadly
spaced scoping drilling in the south, coupled with other widely
spaced historic data, gives some confidence in the continuity
of mineralisation up to 100m from the main high grade
strandline core, providing the search criteria are met.
Criteria JORC Code Explanation Commentary
consideration of these potential
environmental impacts should
be reported. Where these
aspects have not been
considered, this should be
reported with an explanation of
the environmental assumptions
made.
Bulk density Whether assumed or
determined. If assumed, the
basis for the assumptions. If
determined, the method used,
whether wet or dry, the
frequency of the measurements,
the nature, size and
representativeness of the
samples.
The bulk density for bulk
material must have been
measured by methods that
adequately account for void
spaces (vugs, porosity, etc),
moisture and differences
between rock and alteration
zones within the deposit.
Discuss assumptions for bulk
density estimates used in the
evaluation process of the
different materials.		 The bulk density is based on a calculation of the specific
gravity of the silica and heavy mineral content fractions of each
sample. It is therefore not fixed and fluctuates between 1.68
and 2.1 as per the formula: SG=1.68+(0.0095 x THM).
The use of a bulk density algorithm is a standard industry
practice for the estimation of mineral sands resource. There is
uncertainty that the SG formula is sufficiently accurate to
support Measured resources. MSR plan to generate a dataset
of actual density measurements for comparison against the
calculated density.
Classification The basis for the classification of
the Mineral Resources into
varying confidence categories.
Whether appropriate account
has been taken of all relevant
factors (ie relative confidence in
tonnage/grade estimations,
reliability of input data,
confidence in continuity of
geology and metal values,
quality, quantity and distribution
of the data).
Whether the result appropriately
reflects the Competent Person’s
view of the deposit.		 The Mineral Resources have been classified as Measured,
Indicated, and Inferred Categories, in accordance with the
2012 Australasian Code for Reporting of Mineral Resources
and Ore Reserves (“JORC Code (2012)”).
A range of criteria has been considered in determining this
classification including, Geological continuity and Drillhole
spacing:
Areas with aircore drilling spaced at 125x25m have been
generally classified Measured;
Areas with aircore drilling spaced at 250x20m have been
generally classified Indicated; and
Areas outside this has been classified as Inferred. Broadly
spaced scoping drilling in the south, coupled with other widely
spaced historic data, gives some confidence in the continuity
of mineralisation up to 100m from the main high grade
strandline core, providing the search criteria are met.

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Commentary
The Mineral Resource has been reviewed internally as part of
normal validation processes by MRC.
Wardell Armstrong International (“WAI”) conducted a review of
the Mineral Resource Estimate and no material issues were
identified. Mr Ché Osmond (CGeol) and Richard Ellis (CGeol)
(WAI) undertook an audit of the Mineral Resource estimate as
an independent technical review.
The current Competent Person was not involved in the
preparation of the resource estimate. A desktop review was
completed before accepting responsibility as the Competent
Person. The current estimate and resource classification is
considered defendable. There is some uncertainty that a
Measured resource classification is appropriate however, this
needs to be investigated with more work, i.e.,
1. Detailed examination of twin holes to verify the reliability of
drilling.
2. Comparing calculated density to actual density
measurements.
3. Sending sample splits for verification of the quantitative
XRD at an alternative laboratory. This could involve an
approach such as – Gravity Separation of the THM followed by
magnetic separation. The magnetic and non-magnetic THM
fractions then would undergo various density separations
followed by XRF analysis of the fractions to determine the
mineral assemblage and mineral quality. The quantitative XRF
could also be compared against QEMSCAN.
4. Complete a simple 2D kriging estimation variance study to
verify that the current drill hole spacings used for resource
classification are appropriate.
Slope of regression from kriging was considered in
classification.
No significant production has occurred from the deposit. Since
September 2020 when mining commenced in the Western
Strandline, a total of 1.9Mt has been mined from the South pit,
with all material being stockpiled. 100kt was used for testwork
purposes in the March quarter of 2021. This material was
depleted from the updated mineral resource and reported as a
stockpile.
Criteria JORC Code Explanation Commentary
Audits or
reviews		 The results of any audits or
reviews of Mineral Resource
estimates.		 The Mineral Resource has been reviewed internally as part of
normal validation processes by MRC.
Wardell Armstrong International (“WAI”) conducted a review of
the Mineral Resource Estimate and no material issues were
identified. Mr Ché Osmond (CGeol) and Richard Ellis (CGeol)
(WAI) undertook an audit of the Mineral Resource estimate as
an independent technical review.
The current Competent Person was not involved in the
preparation of the resource estimate. A desktop review was
completed before accepting responsibility as the Competent
Person. The current estimate and resource classification is
considered defendable. There is some uncertainty that a
Measured resource classification is appropriate however, this
needs to be investigated with more work, i.e.,
1. Detailed examination of twin holes to verify the reliability of
drilling.
2. Comparing calculated density to actual density
measurements.
3. Sending sample splits for verification of the quantitative
XRD at an alternative laboratory. This could involve an
approach such as – Gravity Separation of the THM followed by
magnetic separation. The magnetic and non-magnetic THM
fractions then would undergo various density separations
followed by XRF analysis of the fractions to determine the
mineral assemblage and mineral quality. The quantitative XRF
could also be compared against QEMSCAN.
4. Complete a simple 2D kriging estimation variance study to
verify that the current drill hole spacings used for resource
classification are appropriate.
Discussion of
relative
accuracy/
confidence		 Where appropriate, a statement
of the relative accuracy and
confidence level in the Mineral
Resource estimate using an
approach or procedure deemed
appropriate by the Competent
Person. For example, the
application of statistical or
geostatistical procedures to
quantify the relative accuracy of
the resource within stated
confidence limits, or, if such an
approach is not deemed
appropriate, a qualitative
discussion of the factors that
could affect the relative
accuracy and confidence of the
estimate.
The statement should specify
whether it relates to global or
local estimates, and, if local,
state the relevant tonnages,
which should be relevant to		 Slope of regression from kriging was considered in
classification.
No significant production has occurred from the deposit. Since
September 2020 when mining commenced in the Western
Strandline, a total of 1.9Mt has been mined from the South pit,
with all material being stockpiled. 100kt was used for testwork
purposes in the March quarter of 2021. This material was
depleted from the updated mineral resource and reported as a
stockpile.

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Criteria JORC Code Explanation Commentary
technical and economic
evaluation. Documentation
should include assumptions
made and the procedures used.

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Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in the preceding sections also apply to this section)

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Criteria JORC Code Explanation Commentary
Mineral
Resource
estimate for
conversion to
Ore Reserves		 Description of the Mineral
Resource estimate used as a
basis for the conversion to an
Ore Reserve.
Clear statement as to whether
the Mineral Resources are
reported additional to, or
inclusive of, the Ore Reserves.		 This Ore Reserve is based on the Measured and Indicated
portion of the updated Mineral Resource at Tormin Western
Strandline released on 7 December 2021.
The Mineral Resource model is a 3D block model reported at
2%THM cut-off grade.
Mineral Resources are reported inclusive of Ore Reserves.
Site visits Comment on any site visits
undertaken by the Competent
Person and the outcome of
those visits.
If no site visits have been
undertaken indicate why this is
the case.		 A site visit was undertaken in the first week of February
2023.
All aspects of the operation were reviewed over a period of
5 days including mining operations at both Tormin and
Northern Beaches, previously mined pits in the southern
section of the Western Inland Strand and clearing /
grubbing works being undertaken at the northern area of
the Extended Mining Rights.
The waste dumps and ROM stockpiles were examined
along with product stockpiles and a review of the new
processing route for Inland Strand material completed.
A review of the on-site laboratory was undertaken including
the entire process workflow from receipt of samples to
release of final approved results. Sample points along the
current operations workflow were also visited.
The field office at De Punt exploration area was visited and
sampling procedures reviewed with the contract geologist
and exploration technicians. The recent drilling sites at De
Punt were also examined.
Discussions with the consulting geotechnical group were
held on site in person and the proposed pit slope parameter
set discussed along with review of the performance of the
current pit slopes.
Review of tenue, permitting and permitting processes and
environmental requires were discussed on site with the
Environment Manager and General Manager.
Study status The type and level of study
undertaken to enable Mineral
Resources to be converted to
Ore Reserves.
The Code requires that a study
to at least Pre-Feasibility Study
level has been undertaken to
convert Mineral Resources to
Ore Reserves. Such studies will
have been carried out and will
have determined a mine plan
that is technically achievable and
economically viable, and that
material Modifying Factors have
been considered.		 This study is assessed as being at a Pre-Feasibility Study
level to support the Ore Reserve.
The Pre-Feasibility Study evaluated geology and resource,
mining, metallurgy, process plant and tailings, infrastructure
and logistics, environment, human resources, marketing,
implementation plan and schedule, capital and operating
costs, financial assessment and other activities/issues that
could impact the proposed operation as contained in the
PFS report.
Processing costs and input costs (in particular diesel and
transport costs) were reviewed post PFS and adjusted to
current long term projections post COVID 19 impacts.
Modifying factors accurate to the study level have been
applied. The resulting mine plan is technically achievable

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and economically viable.
A value model was developed that assigns mining and
processing recoveries, costs, and revenue to the geological
model. This value model follows the entire mining process
from topsoil stripping to final rehabilitation.
A cashflow grade model was written in python as a cash
flow script to generate at a block level all of the required
attributes to calculate the cash flow grades for the proposed
processing permutation for subsequent use in pit
optimisation and strategic mine schedule optimisation.
Blocks where the cash flow grade per tonne is positive are
designated as potential ore and negative blocks are
designated potential waste.
Mining dilution was not specifically input as the updated
cashflow grades show that the mineralisation is extensive
above the bedrock. With a LOM strip ratio of 0.19:1, this
bulk mining operation does not require a great deal of
selectivity in mining. Additionally, the block sizes used in the
Mineral Resource estimation are large enough that dilution is
included as part of the estimation process.
All the selected pit shells did not have detailed pit designs
created due to the shallow nature of the pits and the extent
of cashflow positive material. Pits within the EMR have
detail designs. These pits account for 9 years’ worth of
mining at current rates. Pits will be detailed for construction
as required.
Inferred Mineral Resources were considered as waste.
The deposits will be mined in multiple stages in a
conventional open pit operation and will utilise conventional
load-haul mining methods. Each panel will be mined using
70 tonne class excavators and 45 tonne articulated trucks.
A minimum mining width for pits of 30m is based on the use
of CAT 745 class trucks.
Geotechnical assessment and recommendations provided
by Middindi Consulting and MLB Consulting. Pit slopes
assumed as 45 and 75 degrees depends on material types.
Hydrogeological studies have been carried out by the
Australian Environmental & Mining Co (AEMCO) and
Geohydrological impact assessment completed by
Geohydrological and Spatial Solutions International
(GEOSS).
Ore to be excavated from open pits with an average depth of
15m and maximum depth of 30m. Ore is hauled directly to
the processing plant by the Articulated trucks.
Haul road widths designed to 15m (as approved in the
Environmental Management Plan) for dual lane traffic and
11.5m for single lane, based on the use of CAT 745
Articulated trucks, with ramp gradients to be limited to 1:10
(10%).
The high-grade nature of the deposit results inpit
Criteria JORC Code Explanation Commentary
and economically viable.
Cut-off
parameters		 The basis of the cut-off grade(s)
or quality parameters applied.		 A value model was developed that assigns mining and
processing recoveries, costs, and revenue to the geological
model. This value model follows the entire mining process
from topsoil stripping to final rehabilitation.
A cashflow grade model was written in python as a cash
flow script to generate at a block level all of the required
attributes to calculate the cash flow grades for the proposed
processing permutation for subsequent use in pit
optimisation and strategic mine schedule optimisation.
Blocks where the cash flow grade per tonne is positive are
designated as potential ore and negative blocks are
designated potential waste.
Mining factors
or assumptions		 The major assumptions made
and Mineral Resource model
used for pit and stope
optimisation (if appropriate).
The mining dilution factors used.
The mining recovery factors
used.
Any minimum mining widths
used.
The manner in which Inferred
Mineral Resources are utilised in
mining studies and the sensitivity
of the outcome to their inclusion.
The infrastructure requirements
of the selected mining methods.		 Mining dilution was not specifically input as the updated
cashflow grades show that the mineralisation is extensive
above the bedrock. With a LOM strip ratio of 0.19:1, this
bulk mining operation does not require a great deal of
selectivity in mining. Additionally, the block sizes used in the
Mineral Resource estimation are large enough that dilution is
included as part of the estimation process.
All the selected pit shells did not have detailed pit designs
created due to the shallow nature of the pits and the extent
of cashflow positive material. Pits within the EMR have
detail designs. These pits account for 9 years’ worth of
mining at current rates. Pits will be detailed for construction
as required.
Inferred Mineral Resources were considered as waste.
The deposits will be mined in multiple stages in a
conventional open pit operation and will utilise conventional
load-haul mining methods. Each panel will be mined using
70 tonne class excavators and 45 tonne articulated trucks.
A minimum mining width for pits of 30m is based on the use
of CAT 745 class trucks.
Geotechnical assessment and recommendations provided
by Middindi Consulting and MLB Consulting. Pit slopes
assumed as 45 and 75 degrees depends on material types.
Hydrogeological studies have been carried out by the
Australian Environmental & Mining Co (AEMCO) and
Geohydrological impact assessment completed by
Geohydrological and Spatial Solutions International
(GEOSS).
Ore to be excavated from open pits with an average depth of
15m and maximum depth of 30m. Ore is hauled directly to
the processing plant by the Articulated trucks.
Haul road widths designed to 15m (as approved in the
Environmental Management Plan) for dual lane traffic and
11.5m for single lane, based on the use of CAT 745
Articulated trucks, with ramp gradients to be limited to 1:10
(10%).
The high-grade nature of the deposit results inpit

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optimisation shell sizes increasing incrementally with
revenue factor.
Access to the area is straightforward and roads are
available within Tormin mining area.
The topography is smooth (about 3 degrees), and it is
anticipated that no significant issues associated with mining
are likely.
Infrastructure requirements for the selected mining method
are minimal. Current workshops and operating spaces
have been defined. ROM stockpiles (fingers) will be
constructed to manage the feed blend.
The LOM average strip ratio is approximately 0.19:1 (Waste:
Ore).
Based on the block model, the total mined mine waste
volumes are expected to be approximately 11.3 million
tonnes over life of mine.
The metallurgical process proposed comprises
conventional gravity separation of heavy minerals using
spirals. The metallurgical recovery is similar to other
mineral sand operations.
Metallurgical parameters have been taken from the
metallurgical tests by Nagrom, Haver & Boecker and
Delchem, and metallurgical testworks results support the
recovery. The VHM mineral assemblage, low slimes and
oversize are fit for an economic extraction.
Key design criteria used for the current Ore reserve are
below:
Description
Overall Recovery (%)
Zircon
77
Rutile
50
Ilmenite
78
Garnet
80
Magnetite
57
The Ore Reserve estimation has been based on the
recoveries and processes outlined from metallurgical
testwork.
100kt of ore was processed in the MSR’s Tormin
processing plant in the March quarter of 2021 prior to plant
upgrades and installation of new equipment. This test
material and its subsequent plant performance was used to
inform the recovery parameters used for the optimisation.
Additionally, production has now commenced on the Inland
Strand material and current process plant performance to
date is in line with metallurgical inputs used in modelling.
Refer ASX announcement entitled ‘Commissioning
Criteria JORC Code Explanation Commentary
optimisation shell sizes increasing incrementally with
revenue factor.
Access to the area is straightforward and roads are
available within Tormin mining area.
The topography is smooth (about 3 degrees), and it is
anticipated that no significant issues associated with mining
are likely.
Infrastructure requirements for the selected mining method
are minimal. Current workshops and operating spaces
have been defined. ROM stockpiles (fingers) will be
constructed to manage the feed blend.
The LOM average strip ratio is approximately 0.19:1 (Waste:
Ore).
Based on the block model, the total mined mine waste
volumes are expected to be approximately 11.3 million
tonnes over life of mine.
Metallurgical
factors or
assumptions		 The metallurgical process
proposed and the
appropriateness of that process
to the style of mineralisation.
Whether the metallurgical
process is well-tested technology
or novel in nature.
The nature, amount and
representativeness of
metallurgical test work
undertaken, the nature of the
metallurgical domaining applied
and the corresponding
metallurgical recovery factors
applied.
Any assumptions or allowances
made for deleterious elements.
The existence of any bulk
sample or pilot scale test work
and the degree to which such
samples are considered
representative of the orebody as
a whole.
For minerals that are defined by
a specification, has the ore
reserve estimation been based
on the appropriate mineralogy to
meet the specifications?		 The metallurgical process proposed comprises
conventional gravity separation of heavy minerals using
spirals. The metallurgical recovery is similar to other
mineral sand operations.
Metallurgical parameters have been taken from the
metallurgical tests by Nagrom, Haver & Boecker and
Delchem, and metallurgical testworks results support the
recovery. The VHM mineral assemblage, low slimes and
oversize are fit for an economic extraction.
Key design criteria used for the current Ore reserve are
below:
Description
Overall Recovery (%)
Zircon
77
Rutile
50
Ilmenite
78
Garnet
80
Magnetite
57
The Ore Reserve estimation has been based on the
recoveries and processes outlined from metallurgical
testwork.
100kt of ore was processed in the MSR’s Tormin
processing plant in the March quarter of 2021 prior to plant
upgrades and installation of new equipment. This test
material and its subsequent plant performance was used to
inform the recovery parameters used for the optimisation.
Additionally, production has now commenced on the Inland
Strand material and current process plant performance to
date is in line with metallurgical inputs used in modelling.
Refer ASX announcement entitled ‘Commissioning

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complete for Inland Strands Ore’ dated 27 March 2023.
Significant environmental assessment work has been
undertaken. The deposit lies entirely within prospecting
right (WC 30/5/1/1/2/10262 PR) and 36% of the Ore
Reserve is within the 162 & 163 Expanded Mining Right.
Environmental impact assessment has been completed by
SRK Consulting as an independent environmental
consultant and environmental approvals have been granted
for the 162 & 163 EMR.
Ecology, fauna, and flora studies were undertaken as part
of the baseline assessment report to grant Integrated
Environmental Authorisation (IEA) by the Ministry of
Environment, Forestry and Fisheries.
MSR implements dust suppression measures to reduce
dust emissions from haul roads. A watercart continuously
applies seawater to all internal haul roads (freshwater
applied to external haul roads) as required, including the
DR2225 public gravel road to Koekenaap. MSR will
continue to implement dust suppression measures on haul
roads.
MSR has engaged GroundTruth to undertake a Biodiversity
Management Plan (BMP).
Environmental studies to support additional mining rights on
prospecting right (WC 30/5/1/1/2/10262 PR) outside the
162 & 163 Expanded MiningRight are inprogress.
Access to Tormin Mine is from Koekenaap via Robeiland
and De Punt, or from Koekenaap via Kommandokraal and
Schaapvlei. The gravel road extending the length of Farm
Geelwal Karoo 262 is maintained by MSR and provides
access to the processing plant.
The Company owns Geelwal Karoo Farm 262.
Diesel powered generator sets (gensets) are currently used
at Tormin Mine to provide power to the Mine. Power is
generated by 3 x 1250kVA gensets plus 1 standby unit with
an installed power capacity of 3.75MVA. The gensets are
containerised and located adjacent to the SCP and GSP.
MSR has made an application to Eskom to provide power
from the national grid to replace the current gensets and,
more importantly, provide a cost-effective power supply
option for the expansion plant and MSP. The future 10MVA
power requirement is to utilise the adjacent wind energy
facility. In this event, a 22kV underground powerline of
approximately 4km will be installed from the Sere wind farm
substation to a new MSR substation. CVG Consulting
Engineers has been engaged for detail engineering work
for this project.
Obsideo Consulting designed the tailing and water
management plan to suit the Inland Strand processing plant
requirements.
Criteria JORC Code Explanation Commentary
complete for Inland Strands Ore’ dated 27 March 2023.
Environmental The status of studies of potential
environmental impacts of the
mining and processing
operation. Details of waste rock
characterisation and the
consideration of potential sites,
status of design options
considered and, where
applicable, the status of
approvals for process residue
storage and waste dumps
should be reported.		 Significant environmental assessment work has been
undertaken. The deposit lies entirely within prospecting
right (WC 30/5/1/1/2/10262 PR) and 36% of the Ore
Reserve is within the 162 & 163 Expanded Mining Right.
Environmental impact assessment has been completed by
SRK Consulting as an independent environmental
consultant and environmental approvals have been granted
for the 162 & 163 EMR.
Ecology, fauna, and flora studies were undertaken as part
of the baseline assessment report to grant Integrated
Environmental Authorisation (IEA) by the Ministry of
Environment, Forestry and Fisheries.
MSR implements dust suppression measures to reduce
dust emissions from haul roads. A watercart continuously
applies seawater to all internal haul roads (freshwater
applied to external haul roads) as required, including the
DR2225 public gravel road to Koekenaap. MSR will
continue to implement dust suppression measures on haul
roads.
MSR has engaged GroundTruth to undertake a Biodiversity
Management Plan (BMP).
Environmental studies to support additional mining rights on
prospecting right (WC 30/5/1/1/2/10262 PR) outside the
162 & 163 Expanded MiningRight are inprogress.
Infrastructure The existence of appropriate
infrastructure: availability of land
for plant development, power,
water, transportation (particularly
for bulk commodities), labour,
accommodation; or the ease
with which the infrastructure can
be provided, or accessed.		 Access to Tormin Mine is from Koekenaap via Robeiland
and De Punt, or from Koekenaap via Kommandokraal and
Schaapvlei. The gravel road extending the length of Farm
Geelwal Karoo 262 is maintained by MSR and provides
access to the processing plant.
The Company owns Geelwal Karoo Farm 262.
Diesel powered generator sets (gensets) are currently used
at Tormin Mine to provide power to the Mine. Power is
generated by 3 x 1250kVA gensets plus 1 standby unit with
an installed power capacity of 3.75MVA. The gensets are
containerised and located adjacent to the SCP and GSP.
MSR has made an application to Eskom to provide power
from the national grid to replace the current gensets and,
more importantly, provide a cost-effective power supply
option for the expansion plant and MSP. The future 10MVA
power requirement is to utilise the adjacent wind energy
facility. In this event, a 22kV underground powerline of
approximately 4km will be installed from the Sere wind farm
substation to a new MSR substation. CVG Consulting
Engineers has been engaged for detail engineering work
for this project.
Obsideo Consulting designed the tailing and water
management plan to suit the Inland Strand processing plant
requirements.

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MSR utilises water from two sources, namely seawater for
processing activities from the seawater intake located on
the coast and fresh water for domestic purposes, the latter
transported by truck to site from Lutzville. The current daily
seawater intake rate is approximately 7.2 ml/d. Seawater is
pumped from the seawater intake station located on the
beach via a booster pump station to the aquaculture dam.
Make-up water is pumped from the aquaculture dam to the
process water dam which is located at the GSP/SCP.
Process water from the SCP and GSP is discharged into
the secondary process water dam for settling. The water is
then recirculated back to the main process water storage
dam for further use in processing. Excess water from beach
ore processing is returned to the sea whilst excess water
from inland ore is recovered via the thickener and
dewatering screen and recirculated.
The average tailings production is approximately 80% of
ROM. Total anticipated tailings from inland mining,
including slimes, will be approximately 0.7Mtpa for stage 1.
Tailings will have a (seawater) moisture content of ~ 55%
with the aim of extracting 100 % of free flowing (decant)
water after settlement.
Tailings will be pumped as a slurry from the processing
plant and backfilled in the mine void. Tailings, including
filtered slimes, from the processing plant will be pumped
separately to the mining void for co-disposal. The tailings
and filtered slimes will be allowed to settle in the
containment cells. Clean water will be decanted from the
containment cells and recycled to the processing plant for
reuse in processing. Davies Lynn & Partners has been
engaged for technical inputs and design of waste storage
facilities for tailings management.
3D- Dig software used for tailing deposition planning and
simulate Co- disposal into backfill and its long-term impact
Backfilled tailings will be covered with returned (dry)
overburden.
Rehabilitation management plan and standard operation
procedure has been prepared by Enviroworks.
Rehabilitation will be undertaken as soon as the mining
path allows. Backfilled tailings and returned overburden will
be profiled to mimic original topography as closely as
possible before topsoil is replaced for rehabilitation and
reseeding,where required.
MinSol Engineering and Obsideo Consulting prepared a
preliminary capital cost estimate for the Western Strandline
Project based on Association for the Advancement of Cost
Engineering cost estimation guidelines.
The Project included engineering, design, procurement,
and construction of a 1.2Mtpa (base case, stage1) wet
processing facility, using conventional crushing, scrubbing
and gravity separation technology. Much of the processing
plan and infrastructure required for theprocessing
Criteria JORC Code Explanation Commentary
MSR utilises water from two sources, namely seawater for
processing activities from the seawater intake located on
the coast and fresh water for domestic purposes, the latter
transported by truck to site from Lutzville. The current daily
seawater intake rate is approximately 7.2 ml/d. Seawater is
pumped from the seawater intake station located on the
beach via a booster pump station to the aquaculture dam.
Make-up water is pumped from the aquaculture dam to the
process water dam which is located at the GSP/SCP.
Process water from the SCP and GSP is discharged into
the secondary process water dam for settling. The water is
then recirculated back to the main process water storage
dam for further use in processing. Excess water from beach
ore processing is returned to the sea whilst excess water
from inland ore is recovered via the thickener and
dewatering screen and recirculated.
The average tailings production is approximately 80% of
ROM. Total anticipated tailings from inland mining,
including slimes, will be approximately 0.7Mtpa for stage 1.
Tailings will have a (seawater) moisture content of ~ 55%
with the aim of extracting 100 % of free flowing (decant)
water after settlement.
Tailings will be pumped as a slurry from the processing
plant and backfilled in the mine void. Tailings, including
filtered slimes, from the processing plant will be pumped
separately to the mining void for co-disposal. The tailings
and filtered slimes will be allowed to settle in the
containment cells. Clean water will be decanted from the
containment cells and recycled to the processing plant for
reuse in processing. Davies Lynn & Partners has been
engaged for technical inputs and design of waste storage
facilities for tailings management.
3D- Dig software used for tailing deposition planning and
simulate Co- disposal into backfill and its long-term impact
Backfilled tailings will be covered with returned (dry)
overburden.
Rehabilitation management plan and standard operation
procedure has been prepared by Enviroworks.
Rehabilitation will be undertaken as soon as the mining
path allows. Backfilled tailings and returned overburden will
be profiled to mimic original topography as closely as
possible before topsoil is replaced for rehabilitation and
reseeding,where required.
Costs The derivation of, or
assumptions made, regarding
projected capital costs in the
study.
The methodology used to
estimate operating costs.
Allowances made for the content
of deleterious elements.
The source of exchange rates		 MinSol Engineering and Obsideo Consulting prepared a
preliminary capital cost estimate for the Western Strandline
Project based on Association for the Advancement of Cost
Engineering cost estimation guidelines.
The Project included engineering, design, procurement,
and construction of a 1.2Mtpa (base case, stage1) wet
processing facility, using conventional crushing, scrubbing
and gravity separation technology. Much of the processing
plan and infrastructure required for theprocessing

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operation was already owned by MRC, with only minor
modifications or upgrades required.
Front end scrubbing and crushing along with a new
thickener and filters have been installed on site and
commissioned. Refer ASX announcement entitled
‘Commissioning complete for Inland Strands Ore’ dated 27
March 2023.
The expansion stage has been considered for a 2.4Mtpa
mining operation (stage2).
The operating cost estimate for the operation includes all
costs associated with processing, infrastructure, and site-
based general and administration costs.
The operating cost inputs have been derived from site
actuals and budget forecasts.
The mining operating cost estimates have been prepared
by MRC, with inputs from the mining contractor.
Royalties have been calculated at 5% of sales revenue
payable to the government of South Africa.
All amounts have been modelled in US dollars with foreign
estimated inflows/outflows converted to US dollars at an
average exchange rate of USD/ZAR 17.0 and USD/AUD
1.5 used reflects longterm exchange forecasts.
Revenue from the Project is derived from the sale of heavy
mineral concentrates.
The price assumptions are based on contracted sales
agreements.
Transport and treatment charges as well as other
administration charges incurred on site are all based upon
actual costs being incurred mining at Tormin site.
Revenue estimates are based on independent market
pricing and life-of-mine concentrate production.
Forecast prices for heavy mineral products (2023-2028)
were incorporated into the model.
Revenue estimates are base case only and do not include
any process expansion options or downstream additions to
theprocess flow route.
The conditions of the global economy are key drivers for
the mineral sand industry and its products. There is a clear
correlation between economic welfare and consumption of
titanium, garnet, and zircon feedstock. Demand for mineral
sands products has historically been closely linked to
growth in global GDP, which has grown at close to 3% per
annum.
Global demand for titanium feedstock is dominated by the
TiO2 pigment end use. By 2025, TZMI estimates that global
demand for titanium feedstock will reach 8.7 million tonnes
titanium dioxide (TiO2), which corresponds to a compound
annual growth rate of 2.6%.
Criteria JORC Code Explanation Commentary
used in the study.
Derivation of transportation
charges.
The basis for forecasting or
source of treatment and refining
charges, penalties for failure to
meet specification, etc.
The allowances made for
royalties payable, both
Government and private.		 operation was already owned by MRC, with only minor
modifications or upgrades required.
Front end scrubbing and crushing along with a new
thickener and filters have been installed on site and
commissioned. Refer ASX announcement entitled
‘Commissioning complete for Inland Strands Ore’ dated 27
March 2023.
The expansion stage has been considered for a 2.4Mtpa
mining operation (stage2).
The operating cost estimate for the operation includes all
costs associated with processing, infrastructure, and site-
based general and administration costs.
The operating cost inputs have been derived from site
actuals and budget forecasts.
The mining operating cost estimates have been prepared
by MRC, with inputs from the mining contractor.
Royalties have been calculated at 5% of sales revenue
payable to the government of South Africa.
All amounts have been modelled in US dollars with foreign
estimated inflows/outflows converted to US dollars at an
average exchange rate of USD/ZAR 17.0 and USD/AUD
1.5 used reflects longterm exchange forecasts.
Revenue
factors		 The derivation of, or
assumptions made regarding
revenue factors including head
grade, metal or commodity
price(s) exchange rates,
transportation and treatment
charges, penalties, net smelter
returns, etc.
The derivation of assumptions
made of metal or commodity
price(s), for the principal metals,
minerals and co-products.		 Revenue from the Project is derived from the sale of heavy
mineral concentrates.
The price assumptions are based on contracted sales
agreements.
Transport and treatment charges as well as other
administration charges incurred on site are all based upon
actual costs being incurred mining at Tormin site.
Revenue estimates are based on independent market
pricing and life-of-mine concentrate production.
Forecast prices for heavy mineral products (2023-2028)
were incorporated into the model.
Revenue estimates are base case only and do not include
any process expansion options or downstream additions to
theprocess flow route.
Market
assessment		 The demand, supply and stock
situation for the particular
commodity, consumption trends
and factors likely to affect supply
and demand into the future.
A customer and competitor
analysis along with the
identification of likely market
windows for the product.
Price and volume forecasts and
the basis for these forecasts.
For industrial minerals the
customer specification, testing
and acceptance requirements		 The conditions of the global economy are key drivers for
the mineral sand industry and its products. There is a clear
correlation between economic welfare and consumption of
titanium, garnet, and zircon feedstock. Demand for mineral
sands products has historically been closely linked to
growth in global GDP, which has grown at close to 3% per
annum.
Global demand for titanium feedstock is dominated by the
TiO2 pigment end use. By 2025, TZMI estimates that global
demand for titanium feedstock will reach 8.7 million tonnes
titanium dioxide (TiO2), which corresponds to a compound
annual growth rate of 2.6%.

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Page 37

ASX: MRC ASX: MRC

ASX:
MRC
ASX: MRC		 5 April 2023 5 April 2023
Commentary
Ilmenite and Zircon pricing has seen a significant uplift over
the last few years. Zircon and Ilmenite prices continue to
rise in 2023.
China remains the largest importer of zircon concentrate,
accounting for 99% of global demand.
The price range of industrial garnet is based on the
application, quality, quantity purchased, source and type.
There are no terminal markets for garnet and no reliable
published prices for products. Products are sold through
negotiations between buyer and seller. US$154 per tonne
has been considered as the long term base price for garnet
concentrate.
MRC supplies circa 25% of the world's demand for garnet
sands and is one of the top ten independent zircon and
titanium feedstock suppliers.
MRC has offtake agreements in place for garnet and
existing customers for ilmenite and zircon products from its
Tormin mineral sands mine. Product samples produced
from the Project PFS test work indicate the product quality
will meet customer requirements and have been assessed
as such by potential customers.
Price assumptions are cross referenced against TZMI
assumptions over the coming years.
Macro-economic assumptions used in the economic
analysis of the Western Inland Strand Ore Reserve
including foreign exchange and discount rates have been
internally generated by MRC and benchmarked against
external sources where applicable.
Sensitivity analysis was undertaken on key economic
assumptions such as costs and price to ensure the
reserves are robust. Changes in product prices and costs
have the potential to increase or decrease the total Ore
Reserve. Cashflows from the optimized Ore Reserve on
current assumptionsproduce a financiallyviableproject.
MSR has been operating at Tormin since 2014. The local
community is generally familiar with the characteristics of
mining, processing and product transport at Tormin, and
there are other resource extraction operations within the
district. Stakeholder consultation conducted to date has
identified that majority of the community is supportive of the
Project.
MSR is one of the most important workplace in the area,
and it is an important part of the local economy of the
district.
Expansion of the processing plant will result in securing
long term employment that contributes to the local and
regional economies.
Important social programs will be continued and extended
as a result of the extended mine life. MSR’s strong
investment in the social and economic upliftment of
Criteria JORC Code Explanation Commentary
prior to a supply contract. Ilmenite and Zircon pricing has seen a significant uplift over
the last few years. Zircon and Ilmenite prices continue to
rise in 2023.
China remains the largest importer of zircon concentrate,
accounting for 99% of global demand.
The price range of industrial garnet is based on the
application, quality, quantity purchased, source and type.
There are no terminal markets for garnet and no reliable
published prices for products. Products are sold through
negotiations between buyer and seller. US$154 per tonne
has been considered as the long term base price for garnet
concentrate.
MRC supplies circa 25% of the world's demand for garnet
sands and is one of the top ten independent zircon and
titanium feedstock suppliers.
MRC has offtake agreements in place for garnet and
existing customers for ilmenite and zircon products from its
Tormin mineral sands mine. Product samples produced
from the Project PFS test work indicate the product quality
will meet customer requirements and have been assessed
as such by potential customers.
Price assumptions are cross referenced against TZMI
assumptions over the coming years.
Economic The inputs to the economic
analysis to produce the net
present value (NPV) in the study,
the source and confidence of
these economic inputs including
estimated inflation, discount rate,
etc.
NPV ranges and sensitivity to
variations in the significant
assumptions and inputs.		 Macro-economic assumptions used in the economic
analysis of the Western Inland Strand Ore Reserve
including foreign exchange and discount rates have been
internally generated by MRC and benchmarked against
external sources where applicable.
Sensitivity analysis was undertaken on key economic
assumptions such as costs and price to ensure the
reserves are robust. Changes in product prices and costs
have the potential to increase or decrease the total Ore
Reserve. Cashflows from the optimized Ore Reserve on
current assumptionsproduce a financiallyviableproject.
Social The status of agreements with
key stakeholders and matters
leading to social licence to
operate.		 MSR has been operating at Tormin since 2014. The local
community is generally familiar with the characteristics of
mining, processing and product transport at Tormin, and
there are other resource extraction operations within the
district. Stakeholder consultation conducted to date has
identified that majority of the community is supportive of the
Project.
MSR is one of the most important workplace in the area,
and it is an important part of the local economy of the
district.
Expansion of the processing plant will result in securing
long term employment that contributes to the local and
regional economies.
Important social programs will be continued and extended
as a result of the extended mine life. MSR’s strong
investment in the social and economic upliftment of

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ASX: MRC ASX: MRC

ASX:
MRC
ASX: MRC		 5 April 2023 5 April 2023
Commentary
Historically Disadvantaged South Africans (“HDSA”) and
the ongoing support of its Black Economic Empowerment
(“BEE”) partners in the Tormin Mineral Sands Operation will
continue to grow under the proposed mine expansion.
The implementation of the 2019-2023 Social and Labour
Plan (Generation 3) is nearing its end where an amount of
ZA38.8 million was committed to programs such as local
enterprise development, education and infrastructure
projects and initiatives.
MSR is currently in the process of generating the
Generation 4 SLP with new commitments for the 2024 –
2029period.
MSR has been operating successfully in the region for
more than 9 years to date.
Prospecting right (PR) 10262 was granted in January 2020
and there is a Mining Right (162&163EMR) in place,
granted on 30 June 2020 which covers a significant part of
the Ore Reserve. All mineral permits associated with the
Ore Reserves Estimate are in good standing.
The company is planning to lodge an MR application over
the 10262 Prospecting Right outside of the current
Extended Mining Right (EMR).There is a reasonable
expectation that the new MR will be issued well within the
timeframe required for mining of reserve areas outside of
the current EMR.
Other than the satisfactory completing of a new, updated
Mineral Resource, there are no other known unresolved
matters that are dependent on a third party that may
materially impact the future exploitation of the reserve.
The Mineral Resource classifies all mineralisation at
Western Strandline as Measured, Indicated, and Inferred
and 100% of this updated Ore Reserve has been derived
from Measured and Indicated Mineral Resources.
The Ore Reserve includes Proven and Probable
classifications.
Measured Mineral Resources within the EMR have been
converted to Proven Ore Reserves. Measured Mineral
Resources outside of the EMR have been converted to
Probable Ore Reserves to reflect the current mining
permitting status of being under application.
All Indicated Mineral Resources have been converted to
Probable Ore Reserves.
Proven material accounts for 36% of the Ore Reserve,
Criteria JORC Code Explanation Commentary
Historically Disadvantaged South Africans (“HDSA”) and
the ongoing support of its Black Economic Empowerment
(“BEE”) partners in the Tormin Mineral Sands Operation will
continue to grow under the proposed mine expansion.
The implementation of the 2019-2023 Social and Labour
Plan (Generation 3) is nearing its end where an amount of
ZA38.8 million was committed to programs such as local
enterprise development, education and infrastructure
projects and initiatives.
MSR is currently in the process of generating the
Generation 4 SLP with new commitments for the 2024 –
2029period.
Other To the extent relevant, the
impact of the following on the
project and/or on the estimation
and classification of the Ore
Reserves:
Any identified material naturally
occurring risks.
The status of material legal
agreements and marketing
arrangements.
The status of governmental
agreements and approvals
critical to the viability of the
project, such as mineral
tenement status, and
government and statutory
approvals. There must be
reasonable grounds to expect
that all necessary Government
approvals will be received within
the timeframes anticipated in the
Pre- Feasibility or Feasibility
study. Highlight and discuss the
materiality of any unresolved
matter that is dependent on a
third party on which extraction of
the reserve is contingent.		 MSR has been operating successfully in the region for
more than 9 years to date.
Prospecting right (PR) 10262 was granted in January 2020
and there is a Mining Right (162&163EMR) in place,
granted on 30 June 2020 which covers a significant part of
the Ore Reserve. All mineral permits associated with the
Ore Reserves Estimate are in good standing.
The company is planning to lodge an MR application over
the 10262 Prospecting Right outside of the current
Extended Mining Right (EMR).There is a reasonable
expectation that the new MR will be issued well within the
timeframe required for mining of reserve areas outside of
the current EMR.
Other than the satisfactory completing of a new, updated
Mineral Resource, there are no other known unresolved
matters that are dependent on a third party that may
materially impact the future exploitation of the reserve.
Classification The basis for the classification of
the Ore Reserves into varying
confidence categories.
Whether the result appropriately
reflects the Competent Person’s
view of the deposit.
The proportion of Probable Ore
Reserves that have been
derived from Measured Mineral
Resources (if any).		 The Mineral Resource classifies all mineralisation at
Western Strandline as Measured, Indicated, and Inferred
and 100% of this updated Ore Reserve has been derived
from Measured and Indicated Mineral Resources.
The Ore Reserve includes Proven and Probable
classifications.
Measured Mineral Resources within the EMR have been
converted to Proven Ore Reserves. Measured Mineral
Resources outside of the EMR have been converted to
Probable Ore Reserves to reflect the current mining
permitting status of being under application.
All Indicated Mineral Resources have been converted to
Probable Ore Reserves.
Proven material accounts for 36% of the Ore Reserve,

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Page 39

ASX: MRC ASX: MRC

ASX:
MRC
ASX: MRC		 5 April 2023 5 April 2023
Commentary
Probable material accounts for 64% of the Ore Reserve.
The classification reflects the Competent Person’s view of
the deposit and impact of current modifying factors.
Pit optimisations and the proposed mining schedule are
cognisant of the Mineral Resource classification.
The Ore Reserve methodology and estimates has been
reviewed internally to Quantified Strategies Pty Ltd by
Principal Consultants as part of normal validation
processes required by MRC.
Capital and operating costs has been reviewed and
approved byMRC.
This is an update of the current Ore Reserve Estimate
under the guidelines of the JORC Code (2012).
The Ore Reserve has been peer reviewed internally and
the Competent Person is confident that it is an accurate
estimate of the Ore Reserve.
Mining and processing methods selected are typical for
mineral sands and have been demonstrated in various
other mineral sand operations. They are considered a low
risk of impacting the Ore Reserves.
To date, approximately 1.8Mt of ore has been mined from
the Southern pit and stockpiled on the ROM (high grade)
and in a Low Grade Stockpile. The ROM stockpiled ore
indicates an excellent reconciliation with the Mineral
Resource and Ore Reserve and is currently being
processed. Ore performance is thus far in line with current
modelling.
There was previously a degree of uncertainty regarding
geotechnical characterisation and the proposed pit slope
parameter set. The geotechnical pit slope assumptions
used in mining of the southern pits as per the proposed pit
slope set have shown excellent stability and will be used
going forward, notwithstanding any adjustments that may
need to be made in the field due to variation in material
characterisation.
The PFS upon which the previous maiden Ore Reserve
was based provides a higher degree of confidence in the
modifying factors than usual. Over eight years’ profitable
mining at Tormin gives confidence that the operation costs
and product price expectations are realistic Modifying
factors used in this updated Ore reserve have been
modified from the PFS using actuals and reconciled data to
be more accurate.
All costs used in the optimisation and Ore Reserve process
are supported by an extended operational history and
actual results from MSR operation.
Criteria JORC Code Explanation Commentary
Probable material accounts for 64% of the Ore Reserve.
The classification reflects the Competent Person’s view of
the deposit and impact of current modifying factors.
Pit optimisations and the proposed mining schedule are
cognisant of the Mineral Resource classification.
Audits or
reviews		 The results of any audits or
reviews of Ore Reserve
estimates.		 The Ore Reserve methodology and estimates has been
reviewed internally to Quantified Strategies Pty Ltd by
Principal Consultants as part of normal validation
processes required by MRC.
Capital and operating costs has been reviewed and
approved byMRC.
Discussion of
relative
accuracy/
confidence		 Where appropriate a statement
of the relative accuracy and
confidence level in the Ore
Reserve estimate using an
approach or procedure deemed
appropriate by the Competent
Person. For example, the
application of statistical or
geostatistical procedures to
quantify the relative accuracy of
the reserve within stated
confidence limits, or, if such an
approach is not deemed
appropriate, a qualitative
discussion of the factors which
could affect the relative accuracy
and confidence of the estimate.
The statement should specify
whether it relates to global or
local estimates, and, if local,
state the relevant tonnages,
which should be relevant to
technical and economic
evaluation. Documentation
should include assumptions
made and the procedures used.
Accuracy and confidence
discussions should extend to
specific discussions of any
applied Modifying Factors that
may have a material impact on
Ore Reserve viability, or for
which there are remaining areas
of uncertainty at the current
study stage.
It is recognised that this may not
be possible or appropriate in all
circumstances. These
statements of relative accuracy
and confidence of the estimate
should be compared with
_production data, where available. _		 This is an update of the current Ore Reserve Estimate
under the guidelines of the JORC Code (2012).
The Ore Reserve has been peer reviewed internally and
the Competent Person is confident that it is an accurate
estimate of the Ore Reserve.
Mining and processing methods selected are typical for
mineral sands and have been demonstrated in various
other mineral sand operations. They are considered a low
risk of impacting the Ore Reserves.
To date, approximately 1.8Mt of ore has been mined from
the Southern pit and stockpiled on the ROM (high grade)
and in a Low Grade Stockpile. The ROM stockpiled ore
indicates an excellent reconciliation with the Mineral
Resource and Ore Reserve and is currently being
processed. Ore performance is thus far in line with current
modelling.
There was previously a degree of uncertainty regarding
geotechnical characterisation and the proposed pit slope
parameter set. The geotechnical pit slope assumptions
used in mining of the southern pits as per the proposed pit
slope set have shown excellent stability and will be used
going forward, notwithstanding any adjustments that may
need to be made in the field due to variation in material
characterisation.
The PFS upon which the previous maiden Ore Reserve
was based provides a higher degree of confidence in the
modifying factors than usual. Over eight years’ profitable
mining at Tormin gives confidence that the operation costs
and product price expectations are realistic Modifying
factors used in this updated Ore reserve have been
modified from the PFS using actuals and reconciled data to
be more accurate.
All costs used in the optimisation and Ore Reserve process
are supported by an extended operational history and
actual results from MSR operation.

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Page 40

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