South Africa – TSX/NYSE-listed Platinum Group Metals has updated the independent resource estimate for platinum, palladium and gold (3E) on the 58.62% owned Waterberg Joint Venture.
Mineral Resources on a 100% project basis have increased to an estimated 25.64 Moz 3E in the inferred category plus 12.61 Moz 3E in the indicated category, from 29 Moz 4E Inferred in June 2014:
- Inferred 246 Mt grading 3.25 g/t 3E (0.98 g/t platinum, 2.11 g/t palladium, 0.16 g/t gold, 2.50 g/t cut-off);
- Indicated 121 Mt grading 3.24 g/t 3E (0.97g/t platinum, 2.11 g/t palladium, 0.16g/t gold, 2.5 g/t cut-off)
- Previous Resource (inferred): 287 Mt grading 3.15 g/t 4E (0.94 g/t platinum, 1.92 g/t palladium, 0.04 g/t rhodium, 0.25 g/t gold, 2 g/t cut-off)
Drilling is continuing at Waterberg with 10 drill rigs and the deposit is still open for expansion. Drilling and engineering work is being funded at this time 100% by the Japan Oil, Gas and Metals National Corporation (JOGMEC) under a US$20 million firm commitment to the Joint Venture.
The prefeasibility work is being completed by project teams from DRA, a global independent mining engineering firm, and Platinum Group on behalf of the Waterberg Joint Venture. Metallurgical work, plant designs, metal marketing studies, costing, engineering, servitude layouts for water and power and project planning is advancing as drilling continues for further resource expansion and definition.
Project agreement and funding
On May 26, 2015 the company announced that JOGMEC, Platinum Group, and empowerment partner Mnombo Wethu Consultants agreed to consolidate the Waterberg Joint Venture and the Waterberg Extension projects into one unitised project area.
The Waterberg Joint Venture prospecting rights cover approximately 780 km² with a further 331 km² in accepted applications. Initial advance funding for the project under the firm USD$20 million commitment has been received by Platinum Group, the operator. The $8 million 2015 budget is funded by JOGMEC.
Prefeasibility work on the overall Waterberg Joint Venture project is continuing. Budget quotations are in progress for the delivery of bulk services of electricity and water and upgraded roads.
Metallurgical results completed by DRA have generally confirmed earlier work completed as a component of an earlier preliminary economic assessment at Waterberg. Samples have been analysed with grinding and floatation tests and have provided approximately 80% recovery with a 100 g/t concentrate on the F zone.
Additional optimisation and flow sheet design work is on-going. The Waterberg material shows encouraging flotation response, producing a final concentrate product with no deleterious products which is expected to be saleable.
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