SUMMARY REPORT ON COMPARISON OF THE QUARRY SLOPE ANGLES ADJACENT TO THREE KINGS RESERVE

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1 SUMMARY REPORT ON COMPARISON OF THE QUARRY SLOPE ANGLES ADJACENT TO THREE KINGS RESERVE (Dated: July 2008) FOR Prepared By: Graeme W. Fulton B.Sc. (Hons), Mining and Petroleum Engineering, MAusIMM Terra Mining Consultants Ltd Report - Three Kings Quarry Slope Comparison.doc Page 1 of 6

2 Client: Introduction & Scope of Work 1.1 Commissioned by to undertake a comparison of the slope angles of the quarry pit wall, adjacent to the Three Kings Reserve, to 40 slopes from the horizontal and vertical. Please note that a 40 slope from the vertical will be steeper than a 40 slope from the horizontal, but will get flatter as that angle increases. 1.2 This summary report outlines the source of data used; the process undertaken; and the results of the slope comparison. Source of 3D Data 2.1 3D topographic data was source from Precision Aerial Surveys. This data comprised 3D contour, spot height and other associated topographic data (e.g. breaklines). The data was derived from aerial photogrammetry based on coordinated aerial images. 2.2 Cadastral boundaries were sourced from a LINZ approved dealer. The quarry boundary was identified by. 2.3 Using the provided 3D topographic data a topography surface was generated in Datamine geological and mining/quarrying CAD software. Slope Comparison Process & Comparison 3.1 In plan view, three section lines (A-A, B-B & C-C) were defined at 50 metre intervals perpendicular to the pit slope and the property boundary, between the Three Kings quarry and the Three Kings Reserve. The section lines are shown in Figure 1 Topography, Aerial Image & Section Lines below and in Enclosure 1: TKQ Topography and Section Lines Figure 1 - Topography, Aerial Image & Section Lines Report - Three Kings Quarry Slope Comparison.doc Page 2 of 6

3 3.2 A cross-section view was defined for each of the above section lines, through the 3D topographic surface (green line). In each section view the position of the quarry boundary was displayed (black line) and lines were drawn from the quarry boundary position at 40 to both the vertical (brown line) and the horizontal (red line) using the mining/quarrying CAD software tools. Shown below in Figure 2 - Plan & Section A-A, Figure 3 - Plan & Section B-B and Figure 4 - Plan & Section C-C is each of the three sections, with an associated plan of the section and a slice of the topographic data 20 metres either side of the section line. The sections can also be found in Enclosure 2: TKQ Plan and Section A-A , Enclosure 3: TKQ Plan and Section B-B and Enclosure 4: TKQ Plan and Section C-C [See Note (1)] Figure 2 - Plan & Section A-A Note (1): requested that both 40 lines, from the vertical and horizontal, be considered as the relevant legislation is unclear Part (1) of Section 5 of the Reserves and other land disposal and Public Bodies Empowering Act 1915 No. 68 is reproduced in Appendix 1 of this document. The legislation states that it requires an angle or batter of not less than forty degrees. from the top of the excavation; i.e. it can be 40 or greater. Report - Three Kings Quarry Slope Comparison.doc Page 3 of 6

4 Figure 3 - Plan & Section B-B Figure 4 - Plan & Section C-C Report - Three Kings Quarry Slope Comparison.doc Page 4 of 6

5 4.0 Conclusion 4.1 As can be seen from each of the representative sections the quarry pit slopes are either equal to, or less than, the 40 slope from the horizontal, and therefore would be greater than a 40 slope from the vertical. 5.0 Qualifications & Experience 5.1 Qualified Mining Engineer holding a degree of Bachelor of Science with Honours in Mining and Petroleum Engineering from the University of Strathclyde, Scotland. Also hold a number of mining industry certificates and qualifications. 5.2 Member of the Australasian Institute of Mining and Metallurgy, and currently hold the position of New Zealand Branch Treasurer and Immediate Past Chairman. 5.3 Extensive experience as a mining engineer in the mining, quarrying and mineral exploration industries in New Zealand, South Africa, Botswana, Zambia, Malaysia, Papua New Guinea, Vietnam and Canada for over 23 years. 5.4 Held a variety of positions from a junior level (graduate mining official) to more senior technical management positions (senior mining engineer). Since 1996, worked as a mining engineering consultant, both in an independent capacity and for other mining consultancies, in a range of mineral commodities and mining/quarrying environments. 5.5 Since 2000, undertaken a range of quarry planning work within New Zealand, particularly in and around the Auckland area. This work includes the whole spectrum of planning from strategic life-of-quarry assessments to detailed short-term design. 5.6 Extensive experience, of more than 16 years, in the use of CAD, mapping and 3D mining software. Graeme W. Fulton Bsc. (Hons) Mining & Petroleum Engineering, MAusIMM 14 July 2008 Enclosures: Enclosure 1: TKQ Topography and Section Lines Enclosure 2: TKQ Plan and Section A-A Enclosure 3: TKQ Plan and Section B-B Enclosure 4: TKQ Plan and Section C-C Report - Three Kings Quarry Slope Comparison.doc Page 5 of 6

6 6.0 Appendix 1 Report - Three Kings Quarry Slope Comparison.doc Page 6 of 6

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