PGM Completes Western Bushveld JV Pre-Feasibility Study
By Jacqueline Mackenzie
11 Jan 2007 at 10:55 AM EST
resourceinvestor.com
JOHANNESBURG (I-Net Bridge) -- Toronto Stock Exchange-listed Platinum Group Metals [TSX:PTM] has completed a positive pre-feasibility study for a platinum mine in the Project 1 area of the Western Bushveld Joint Venture (WBJV) in South Africa.
The partners of the JV - PTM, Anglo Platinum [JSE:AMS] and Africa Wide - have given the approval to advance towards a bankable feasibility study for an underground mine producing 155,000 ounces per annum platinum or 250,000 ounces per annum platinum, palladium, rhodium and gold (4Es), in concentrate for total mine life over 18 years.
"The Pre-Feasibility Study has provided the partners in the JV with the confidence to proceed with a bankable feasibility study and to continue drilling the Project 2 and 3 areas of the property," said R. Michael Jones, President and CEO of Platinum Group Metals Canada.
Average life-of-mine cash operating costs to produce and deliver concentrate estimated at $47/tonne and $328/4E ounces. The funding cost to establish the mine is estimated at $286 million for a vertical shaft only or $272 million for the decline and vertical shaft combination. Total life of mine capital costs for the vertical shaft option is $328 million and for the decline / vertical shaft option is $355 million.
Drilling will continue along strike from the Project 1 area to further define additional potential resources on the Project 2 and Project 3 areas of the WBJV, PGM said.
The WBJV Project 1 is located in the heart of the western part of the Bushveld Complex of South Africa, a location that produces 70% of the world's platinum from the same two layers investigated in the study.
Anglo Platinum's 200,000 ounce refined platinum or 310,000 4E ounce per year BRPM platinum mine adjoins the WBJV.
The pre-feasibility study recommends two mine access approaches for further study. It recommends a mining rate of 140,000 tonnes per month which provides a 13 year steady state tonnage production period with a strong Internal Rate of Return on the capital investment.
"The project is attractive because of its platinum grade and shallow depth. The study indicates that the deposit can support a robust mine development with a life of over 18 years," said John Gould, Managing Director of Platinum Group Metals South Africa, in a statement on Thursday.
The mining and development plan includes conventional hand held drilling and scraper winch cleaning similar to the successful conventional mining at the adjacent BRPM platinum mine, the
statement said.
Mining authorization applications and associated permit applications are expected to be submitted in early 2007
"We look forward to working with government and the communities in the area to maximize the value of the project for all stakeholders including the joint venture shareholders, government, and communities in the mine area," said Gould.
Platinum Group Metals Ltd. holds a 37% interest in the WBJV and is the project operator. Anglo Platinum holds a 37% interest and Africa Wide Mineral and Prospecting Pty Ltd. holds a 26% interest, in compliance with the 10 year objective of the South African Mining Charter.
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