The Black Chrome Mine is a well capitalised developing underground chrome mine having an approximated economically minable reserve in excess of 20 000 000 tons of chrome ore.
The mine is located on the farm Mooihoek in the central region of the Eastern Limb of the Bushveld Igneous Complex in South Africa's Limpopo province, 100km south east of the town of Polokwane.
The Mooihoek farm is underlain by a number of chrome seams, notably the LG6 and LG6A.The company has a mining right that runs until 2033 and that can be renewed thereafter.
Of particular interest as a resource is the LG6 reef horizon which dips steadily at between 14° and 16° from its hillside outcrop, with a steady strike direction of 170° to 180°. The reef's thickness is consistent, 2.2m thick with 80cm waste parting inbetween. This allows for conventional underground mining from a decline men-and- materials shaft below the reef horizon.
Ore grades are generally indicated to be higher than the 42% chrome content benchmark for saleable ore. This and the ore's hardness and cohesive, low friability combine to make the LG6 ore a premium, low-cost product. Mining costs are expected to be well within the industry's lowest quartile, thus rendering the project particularly attractive on a discounted cash flow (DCF) basis.
The Business Rescue Practitioner of the company that holds the Mining Right of Black Chrome appointed Sail Minerals (Pty) Ltd on 20 June 2016 as the main mining contractor of the mine through a Management Agreement. Upon Section 11 Ministerial Consent being granted the controlling shareholding of the company that holds the Mining Right will transfer to Sail and the company will no longer be in Business Rescue.
Black Chrome Mine - SLP.