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Jan 19, 2007

Witkop Fluorspar mine, South Africa

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Name: Witkop Fluorspar Mine.

Location: Witkop mine is located 18 km south of Zeerust in the Marico district, North West province.

Brief history: Sallies was incorporated in 1903 as the South African Land and Exploration Mining Company Limited and has been listed since 1904 in the mining sector of what is now JSE Limited. On July 1, 1999, the company acquired a 100% interest in Witkop Fluorspar Mine (Proprietary) Limited and its wholly-owned subsidiary, Marico Fluorspar (Proprietary) Limited for R80-million. Following its acquisition of the Witkop mine in the North West province of South Africa in 1999, the company changed its name to Sallies Limited.

Brief description: Witkop has an estimated mine life of 12 to 15 years and employs 250 people.

Products: Fluorspar.

Mining method: Opencast.

Reserves: Total proven reserves as at June 30, 2006, are 26,3-million tons.

Resources: Unstated.

Geology: The Witkop fluorspar mineral deposit lies within the Marico Fluorspar Field, an area of expansive outcropping and subcropping of low- to medium-grade fluorspar in dolomite. The bulk of the fluorspar mineralisation occurs as a number of discontinuous zones in the Frisco Formation of the Malmani Subgroup of the Transvaal Sequence. The predominant host rock for most of the ore is a grey, medium-grained, sparry dolomite.

Major infrastructure and equipment: Spread over nearly 7 000 ha of surface rights, with new-order mining rights, Witkop mine uses a fleet of Bell 30-t ADTs and Bell excavators with Komatsu loaders.

Prospects: The mine is engaged in a project to recycle some of its tailing dams in order to significantly increase its mine life. Further exploration drilling may be undertaken to increase reserves.

Controlling company: Sallies Ltd (100%).

Contact person: Helen McKane, investor and media relations.

Unique features: Use of the lowest grade fluorspar deposit in the world.

Contact details:
Sallies Ltd.

Tel: +27 18 642 8440 Fax: +27 18 642 8426 Website: www.

Edited by: Carla Thomaz
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