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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (19422)	5/12/2008 11:00:10 AM
From: LoneClone	Read Replies (1) \| Respond to of 195121

New Bushveld Platinum Mine Feasible By Charlotte Mathews 09 May 2008 at 11:50 AM GMT-04:00 resourceinvestor.com JOHANNESBURG (Business Day) -- Global gold producer Barrick Gold [NYSE:ABX; TSX:ABX] had completed a feasibility study on the Sedibelo platinum project on the western limb of the Bushveld complex which suggested that a mine costing $700 million with a 16-year life would be economically attractive, it said this week. It has earned a 10% stake in the project by completing the study, and could earn another 40% if a decision were taken to build a mine. The remainder of the property is owned by the Bakgatla ba Kgafela tribe. Barrick has no other projects in South Africa and no other platinum projects anywhere in the world, which makes it seem unlikely it would want to proceed with this development. Spokesman Vincent Borg said the group was defining its options now and he could not speculate on what those options were. "We may proceed or consider alternatives," he said on Wednesday. One of Sedibelo's closest neighbours is Toronto Stock Exchange- and AIM-listed Platmin [TSX:PPN; AIM:PPN], which is constructing the Pilanesberg Platinum Mine, to start producing early next year. Asked if Platmin would be interested in taking on the Sedibelo project, CEO Ian Watson said this week Platmin had approached Barrick Gold as there were clear synergies between the two companies' properties, but no talks were under way about buying Sedibelo. Platmin had also talked to the Bakgatla ba Kgafela from time to time about opportunities. Barrick said Sedibelo could produce about 240,000 ounces of platinum, palladium, rhodium and gold a year from an open-pit operation for its first five years at a cash cost of about $700/oz, which compares with the current basket price of about $2,100/oz. After year five, underground operations could be ramped up to increase annual output to about 290,000 ounces a year for about 10 years at a cost of about $600/oz. Barrick Gold inherited the Sedibelo project when it took over Placer Dome a year ago. Elsewhere in Africa it has three operating mines and two exploration projects in Tanzania.