Eastern Platinum Limited: Trial Mining and Bulk Sampling Commence at Spitzkop
Thu Apr 10, 5:00 AM
ca.news.finance.yahoo.com
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 10, 2008) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") (TSX: ELR.TO)(AIM: ELR)(JSE: EPS) is pleased to report that as part of the ongoing evaluation of the Spitzkop project the Company has commenced with underground trial mining and bulk sampling of the UG2 and Merensky reefs.
Spitzkop is a high grade, platinum and rhodium rich, shallow dipping, near surface PGM deposit with resources in both the UG2 and Merensky reefs. Current estimates indicate that Spitzkop has a UG2 measured resource of 41.8Mt at an average 3PGE+Au grade of 5.2 g/t (7M Mozs) and 6.26 g/t (8.4 Mozs) on a 5PGE+Au grade basis. A measured resource has also been defined for the Merensky Reef, which contains 48.9Mt at an average 3PGE+Au grade of 2.53 g/t (3.98 Mozs.) and at 2.77 g/t (4.35 Mozs) on a 5PGE+Au grade basis. The Company's emphasis has always been on the evaluation of the PGM Resource in the UG2 reef at Spitzkop. Previously reported results from confirmatory drilling programs confirm the high grade, platinum and rhodium rich nature of the UG2 at Spitzkop. With the dramatic increases in PGM prices and the positive outlook for PGM's, the Merensky resource is significant.
A multi-disciplinary technical team has been appointed to finalize the engineering, mine planning, estimating and scheduling for the Spitzkop project. Technical studies to date suggest that the project, which is located adjacent to the existing Kennedy's Vale twin shaft infrastructure, has the potential to produce approximately 200,000 oz PGMs (3PGE+Au) per annum, with a life of mine in excess of 20 years. Initial indications are that the operation could exploit both the UG2 and Merensky reefs via decline shafts, and use mechanized off-reef development together with conventional stoping; this is similar to the proven mining method being applied at the Crocodile River Mine operation.
The proposed trial mining at Spitzkop will involve underground 'on-reef' development and test mining in both the UG2 and Merensky reefs. The trial mine includes decline access from surface in the footwall of the UG2 and Merensky in order to access the reefs beneath the weathered zone (approx. 20m). Test drives will be developed along the strike of the reefs to evaluate footwall, hanging wall and reef development conditions for full scale mining in both reefs. Trial stopes will determine the most appropriate mining methods, evaluate reef dilution factors and obtain bulk samples for large scale metallurgical testing and the results will be incorporated into the economic evaluation of the project prior to a full scale mine development decision.
Such a trial mining program is considered to be the most appropriate way to evaluate actual mining conditions to be encountered at Spitzkop in order to conduct a comprehensive evaluation of the project and is consistent with development work undertaken on adjacent PGM deposits.
"The development of Spitzkop will be another step in Eastplats' plan to become a mid tier PGM producer. As the UG2 at Spitzkop outcrops at surface it makes sense to go underground and conduct bulk sampling and test mining as part of our project development program," stated Ian Rozier, President and CEO of Eastern Platinum Limited.
The qualified person having prepared the contents of this news release is Mr. Ian Rozier, B.Sc.(Hons), M.Sc., P.Eng.
Total shares issued and outstanding: 671,312,052
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements are based on certain assumptions by Eastplats and Barplats and as such are not a guarantee of future performance. Actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, increased costs of production and a decline in metal prices. Eastplats is under no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
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