TSX/NYSE Platinum Group Metals has announced positive results from additional drilling and mineral resource assessment on the Waterberg Project’s palladium dominant deposit.
The 2018 drilling program has increased confidence in the estimated Mineral Resources for the project, with 6.26 million 4E ounces now recognized in the higher confidence Measured Category.
Mineral Resources estimated in the combined Measured and Indicated Categories have increased by 1.46 million 4E ounces to 26.34 million 4E ounces.
Inferred Mineral Resources are estimated at 7.0 million 4E ounces.
All of the preceding estimated at a 2.5 g/t 4E (palladium, platinum, rhodium and gold) cut-off grade.
The updated Measured and Indicated Mineral Resource totaling 26.34 million 4E ounces is comprised of 63.04% palladium, 29.16% platinum, 6.37% gold and 1.43% rhodium (242.5 Mt at 3.38 g/t 4E, versus 218.3 Mt grading 3.55 g/t 4E Indicated in the 2016 Pre-feasibility Study titled “Independent Technical Report on the Waterberg Project including Mineral Resource Update and Pre-Feasibility Study” dated October 19, 2016.
The T zone Measured and Indicated Mineral Resources have increased in grade from 3.88 g/t 4E in 2016 to 4.51 g/t 4E in 2018.
The new increased confidence level Mineral Resources are being used for detailed mine planning in an ongoing Definitive Feasibility Study (DFS).
The DFS is being managed by Platinum Group and a Technical Committee including all partners of the project operating company Waterberg JV Resources (Waterberg JV Co).
The ongoing DFS is considering two large scale underground bulk mining and milling options of 600,000 tpm and a more modest, but still large, first phase at 250,000 to 350,0000 tpm.
Platinum Group holds a 50.02% effective interest in Waterberg JV Co., with the Japan, Oil, Gas and Metals National Corporation (“JOGMEC”) holding a 21.95% interest, Impala Platinum Holdings holding a 15% interest and empowerment partner Mnombo Wethu Consultants holding the balance of the joint venture.
JSE listed, broad based empowerment group, Hosken Consolidated Investments has recently purchased more than a 15% ownership interest in Platinum Group Metals.
Platinum Group plans to file a National Instrument 43-101 report on the updated Mineral Resources within 45 days of this announcement.
R. Michael Jones, CEO and co-founder of Platinum Group says:
“Waterberg is characterized by thick, near surface mineralized zones, which are potentially amenable to low cost, safe, bulk mechanized mining methods.
"The deposit remains open at depth and to the northwest on strike.
"The rare palladium dominance of the deposit is well suited to current and projected demand trends for the catalytic converter needs of the global auto market.”