Sebata Kgomo Mining Projects – Adding value through empowerment

Platinum
Tjate Platinum Project:

Sebata Kgomo Consortium is a 40% shareholder and majority shareholder in Tjate Platinum Corporation. The drilling programme is the first step in the feasibility study, which will determine the potential mine size, capital cost of development and operating costs.

The key assumptions currently valid for the farms are as follows:
Property: Three contiguous farms: Dsjate 249KT; Fernkloof 539KS; and Quartzhill 542KS
Property Area: Total 5143 ha: Dsjate (2,162 ha); Fernkloof (1,317 ha); and Quartzhill (1,664 ha)
Property Location: On the eastern limb of the Bushveld Complex and immediately downdip of Anglo Platinum’s Twickenham and Impala Platinum’s Marula mines
PGM bearing reefs present: Merensky and UG2 Chromitite
Inferred Resource tonnage: 282 million tonnes
Inferred Resource grade: 7.25g/t (5PGM+Au) Merensky and UG2 weighted average 6.62g/t (5PGM+Au) for Merensky alone
Inferred Resource metal: 65.8 million oz (5PGM+Au)
Attributable valuation in situ: $13 billion, Basis per oz: Platinum $850; Palladium $180; Rhodium $1500; Iridium $150; Ruthenium $50; Au $400
Attributable market valuation: $171 million – based on l a market valuation $7.50/oz

Property Description:
The Tjate farms are largely underlain by rocks of the Main Zone of the Bushveld Complex that dip gently around 11o to 13o towards the west. Anglo Platinum is known to have drilled three diamond boreholes on the Dsjate property and intersected the Merensky and UG2 chromitite reefs. The outcrops of the two reefs are well mapped and the directors of Jubilee are advised that there is little doubt that the three properties are underlain by these economically important reef units.

1. Press Release 10 March 2005 / Drilling Intersects Merensky Reef on Tjate Project:
Highlights
• Drilling intersects Merensky reef on Tjate Project in the Bushveld Complex of South Africa
• High grade of 7.78g/t platinum group elements (“PGEs”) plus gold (Au) over a 1 metre reef width
• Platinum (Pt) to palladium (Pd) ratio of 1.8 to 1
• Associated 0.33% nickel and 0.19% copper grades
• In situ value of reef estimated at US$223 per ton rock at today’s metal prices

Tjate Platinum Corporation (Pty) Ltd (“Tjate”) is pleased to announce significant results from the first diamond drill hole DT1 on Tjate’s 2,162 hectare Dsjate farm 249 KT. Hole DT1 intersected the Merensky reef (MR) at 868.5 metres. The assay results indicate a weighted average grade of 7.78g/t 3PGE + gold - sometimes referred to as 4E - over a 1.0 metre reef width, with associated 0.33 % nickel and 0.19 % copper. The indicated in-situ value of this intersection is estimated at US$223 per ton of rock at today’s metal prices..

The weighted averages for the individual metals and in-situ values over the reef section (868.46 metres to 869.45 metres) are as follows:

 

Platinum

Palladium

Rhodium

Gold

Nickel

Copper

Assay 4.45g/t

2.49g/t

0.22g/t

0.62g/t

0.33%

0.19%

US$/t rock

125

17

11

9

55

6

Colin Bird, CEO of Jubilee/Tjate, said “This is a milestone result in relation to our Tjate acquisition, which provides Jubilee with a strategic interest in what is believed to be one of the largest unmined blocks of PGMs in the world close to infrastructure and mature mining operations. The grade and thickness of the reef intersected confirms third-party predictions that the Tjate area contains PGM values consistent with other operations in the area. We now intend aggressively to continue the drilling programme in order to advance towards feasibility study. The partners in Tjate have worked well together to establish an early success for the first quarter.”

Vincent Phaala, Chairman of Tjate, said “I am delighted that after completion of legal formalities, the board and operators have moved so quickly to achieve significant drilling results. We believe the Tjate farms represent a world-class PGM resource and our tripartite alliance is an excellent example of economic empowerment working to the good of all the parties.”

The drill hole DT1 considerably downdip of and stepped out from the eastern boundary of the farm to establish continuity of reef, which the directors’ believe subcrops at around the 650 metre contour at the eastern boundary. The Dsjate farm is one of three contiguous farms in the Tjate project, which comprises 5,143 hectares in total. The directors believe, as advised, that the three farms are all underlain by the Merensky and the UG2 chromitite reefs.

From the depth of the intersection, and on the assumption that the reef subcrops at a 650 metre contour at the eastern boundary, the directors believe that the Merensky reef may dip flatter - at around 7 to 8 degrees to the west – than that stated in the key assumptions and property description below. The drilling results overall are consistent with, if not better than, those stated in the key assumptions below: the 3PGE +Au grade reported for the Merensky is higher than that stated below for 5PGE + Au.

Drilling of hole DT1 is continuing towards the projected UG2 chromitite reef, the second PGE bearing reef in the stratigraphic sequence. Intersection of this reef is expected in about two weeks, at some 350 metres below the Merensky reef, and the results will be reported as soon as they are received. The Company intends to wedge up to three deflection holes (about 100 metres) per reef to allow multiple intersections on the reef from the “mother” hole and so confirm the immediate reef extension, grade and thickness from the initial intersection.

2. Press Release July 2005
Step-out Drilling (Two Holes) on Tjate Project Confirms - Merensky and UG2 Reefs at Projected Horizons

Tjate Platinum Corporation announces results for its step-out holes DT2 (overall reefs’ grade and thickness) and DT3 (Merensky reef thickness only) on the Dsjate farm (“Tjate Project”) in the Bushveld Complex of South Africa.

Highlights
• Step out drilling (up to 650 metres on plan) intersected at projected horizons the Merensky reef (“MR”) and UG2 chromitite reef (“UG2”) for hole DT2 and the MR for hole DT3
• UG2 in hole DT2 included one high grade intersection of 9.23 g/t 4E (platinum, palladium rhodium and gold)and showed an overall grade including two deflections of 8.01 g/t 4E over an average 96 centimetre thickness
• Current hole DT3 intersected the MR at 916 metres which was target depth with a wide 1.8 metre mineralised reef. Drilling continues to intersect the UG2

The detailed drill results for hole DT2 are shown below: Merensky Reef (intersected 722 metres):

 

Apparent thickness cm

4E g/t

Pt g/t

Pd g/t

Rh g/t

Au g/t

Ni %

Cu %

Pt:Pd ratio

Motherhole

62

3.44

2.19

0.89

0.13

0.23

0.22

0.11

 

Deflection 1

60

1.52

1.00

0.34

0.03

0.16

0.11

0.07

 

Deflection 2

60

6.53

3.80

2.16

0.17

0.40

0.34

0.16

 

Weighted average

61

3.83

2.33

1.13

0.11

0.26

0.22

0.11

2.1

UG2 Chromitite Reef (intersected 1109 metres):

 

Apparent thickness cm

4E g/t

Pt g/t

Pd g/t

Rh g/t

Au g/t

Pt:Pd ratio

Motherhole

96

7.35

3.29

3.24

0.67

0.14

 

Deflection 1

92

6.66

3.43

3.15

0.73

0.13

 

Deflection 2

97

9.23

3.54

4.82

0.71

0.16

 

Weighted average

95

8.01

3.42

3.75

0.70

0.14

0.91

Colin Bird, CEO of Jubilee and Tjate and Tjate Project Manager, said “These results are very pleasing since they represent significant step-outs from the location of our first hole. They also confirm the size and mineralisation of the deposit down dip and along strike and again have more than matched our expectations. Our third hole DT3, intersected the Merensky reef horizon at targeted depth and with projected thickness. We anticipate good grades from this hole and are still on target to commence pre-feasibility studies during the summer and early autumn.”

Vincent Phaahla, TPC Chairman, said “These results further confirms our earlier assertion that the Tjate project is a highly viable project given the resource on the three farms. We will definitely in the near future be focussing on the pre-feasiblity study of the project which should ultimately result in the bankable feasibility study” The Dsjate farm is one of three contiguous farms in the Tjate project, which comprises 5,143 hectares in total. Sebata Kgomo Consortium is majority shareholder in Tjate Platinum Corporation.

Diamonds
Northwest Diamond Project:
SKM has been for sometime negotiating with property owners of specific farms in the Northwest Province of South Africa for the rights to lease their properties. Due to the strategic nature of the discussions and the sensitivities around the negotiations, more information will be provided as soon as agreements have been concluded.

External Projects (Outside South Africa)
Madagasger Projects:
SKM is in currently involved in negotiations with the Malagasy mining license holders in order to establish joint ventures with them. In addition, SKM is in the process of applying for prospecting licenses for platinum, nickel, cobalt and emeralds in Madagasger. Detailed information will be provided as soon as specific agreements have been concluded and required permits have been granted by relevant authorities.

Chrome and Manganese
Limpopo and Northern Cape Project:
Currently SKM is involved in negotiations for either shareholding or partnership with other stakeholders in both Limpopo and Northern Cape Provinces of South Africa with regard to chrome and manganese. The intended market for the minerals is China. Negotiations are also underway with Chinese consumers of these minerals. Further detailed information will be provided as soon as agreements have been concluded and necessary permits granted.

African Continent
Contact has been established with Ministries of Mines of several African countries with the view to seek the opportunities in mining. SKM is seeking strategic partners, whether they be technical or financial, to further penetrate the African continent's mining market. If you are interested contact us through information provided in our contactpage.