Vancouver, Canada — MININGREVIEW.COM — 18 August 2008 – Eastern Platinum Limited (Eastplats) – Canada’s leading platinum group metals producer currently engaged in the acquisition, development and mining of platinum group metal deposits in South Africa. – has revealed an impressive second quarter transition from net loss to net earnings.
A news release detailing the company’s results for the quarter ended 30 June 2008 noted an impressive turnaround, posting record net earnings of US$12.7 million (R95 million), compared to a net loss of US$4.7 million (R35 million) in the three months to 30 June 2007. This was primarily due to a significant increase in revenues and PGM production.
Primary operating asset of the company – which is listed on the AIM, the Toronto Stock Exchange and the JSE – is an 85% direct and indirect interest in Barplats Investments Limited, whose main assets are the PGM producing Crocodile River mine on the western limb of the Bushveld Complex, and the non-producing Kennedy’s Vale project located on the eastern limb. It also has a 75.5% direct and indirect interest in the Mareesburg Platinum JV and a 93.4% direct and indirect interest in the Spitzkop PGM project, both located on the eastern limb.
The Eastplats results also reflected a 21% production increase at Crocodile River Mine to 30 311 PGM ounces in the second quarter, together with a massive 125% increase in CRM revenues from US$22.3 million in Q2 of 2007 to US$50.1 million in the three months to 30 June 2008. Average sale price per PGM ounce rose by 49% from US$1 113 to US$ 1 657.
The company continued to make substantial progress in the development of the ore reserve at CRM. Recovery rates improved to 73%, compared to 69% in Q2 of 2007; grades rose to 4.03 g/t (5PGE+Au), from 3.97 g/t (5PGE+Au) last year; stoping units for the quarter increased by 25% to a record 44 277 sq m compared to 35 315 sq m in Q2 of 2007; and total underground development was up 16% to 5 575m during the quarter (4 807m in Q2 of 2007). The average mining rate increased by 25% to 101 711 tonnes per month during Q2 of 2008 from 81 425 tonnes per month in the same quarter of last year.
Eastern Platinum president and CEO Ian Rozier commented: “We are pleased to report that production, mining rates, and underground development rates have increased, compared to the first quarter of this year. Our primary objectives are to increase our current rate of production at the Crocodile River mine while maintaining a steady cost structure, and to develop and bring CRM’s Crocette Section and our Spitzkop project into production as quickly as possible.”