Platinum Group Metals announced that work on a Definitive Feasibility Study being completed by Waterberg JV Resources, with the company serving as operator, and with input from Impala Platinum Holdings and Japan Oil, Gas and Metals National Corporation (JOGMEC), is proceeding according to plan.
South Africa – The latest phase of 38 000 m of infill drilling has been completed safely and on budget, bringing the total drill testing completed on the project to approximately 346,000 meters.
Platinum Group Metals plans to publish an updated resource model and technical report for the Waterberg project, including results from the latest drilling, in calendar Q3 2018.
This new resource model will form the basis for mine planning and reserve estimation in the DFS.
The DFS remains on-track for completion at the end of calendar Q1 2019.
Independent engineering for the DFS is underway as planned by the jointly appointed engineering firms Stantec Consulting International LLC and DRA projects SA along with input from technical specialists from each of the joint venture partners.
“We have successfully completed the infill drill program and we are working very closely with all our partners, stakeholders and engineers to maximize the value of this extraordinary deposit – all at a time when the interest in palladium, the project’s primary metal, is increasing,” comments Platinum Group Metals CEO, R. Michael Jones.
Recent infill drilling as described above has intersected areas of 40 to 100 meters of vertical thickness with palladium, platinum, gold and rhodium mineralisation as anticipated in the “Super F” areas of the current resource model.
The recent intercepts compare favorably to the mine plan in an independent Pre-Feasibility Study for the project published in October, 2016. Assay results from the latest drilling continue to be received.
Current Platinum Group Element probable reserves at the Waterberg project are 12.3 million ounces, consisting of 61% palladium, 30% platinum, 8% gold and 1% rhodium plus 191 million and 333 million pounds of copper and nickel respectively.
At a 2.5 gram per tonne (g/t) cut-off grade, probable reserves are comprised of 102.7 million tonnes at 3.73 4E g/t, consisting of 2.29 g/t Pd, 1.11 g/t Pt, 0.29 g/t Au, 0.04 g/t Rh, 0.08% Cu and 0.15% Ni.
Much of the Waterberg project area still remains to be drilled and assessed. The Waterberg deposit remains open down dip and along strike.
The reserves are a subset of a larger indicated resource.
Platinum Group Metals currently holds an effective 50.02% interest in the Waterberg project.
Implats owns a 15% interest and Mnombo Wethu Consultants, a black empowerment company, holds a 26% interest. Platinum Group Metals owns a 49.9% interest in Mnombo.
JOGMEC holds a 21.95% interest in the Waterberg project and is planning to transfer a 9.755% interest to their partner Hanwa.
Hosken Consolidated Investments, a South African black empowerment investment holding company listed on the JSE with a US$1.1 billion market capitalisation, recently purchased a 14.11% stake in Platinum Group Metals.
All partners are active in the oversight of the project. Implats holds an option to increase their stake to 50.01%.