Platinum Group Metals Ltd. (TSX:PTM) (NYSE American:PLG)
(“
Platinum Group” “
PTM” or the
“
Company”) is pleased to announce that the ongoing
Definitive Feasibility Study (“
DFS”) for the
Waterberg Project is now being advanced under the direction of the
Technical Committee appointed by Waterberg JV Resources (Pty) Ltd.
(“
Waterberg JV Co.”). Seventeen drill rigs
are on site and have commenced drilling with the objectives of
defining the shallowest areas of the current 102 million tonne
reserve (details below) for increased confidence and detailed mine
planning and to upgrade a portion of the indicated resources to
measured resources for reserve consideration in the DFS.
Immediate areas for in-fill drilling include the Northern and
Boundary Super F zones.
The Scope of Work and plans for the DFS during 2017
and 2018 have been agreed in detail by the Technical Committee.
Members of the committee represent the Company and all other
Waterberg Project partners; Impala Platinum Holdings Ltd.
(“Implats”), Japan Oil, Gas and Metals National
Corporation (“JOGMEC”) and Mnombo Wethu
Consultants (Pty) Ltd. (“Mnombo”);
Stantec Consulting International LLC
(“Stantec”) and DRA Projects SA (Proprietary)
Limited (“DRA”) have been selected as the lead
independent project engineers based on a detailed, professionally
supervised tendering process. Stantec will focus on
underground mining engineering and design and reserve estimation.
DRA will focus on metallurgy, plant design, infrastructure
and cost estimation.
The Waterberg Project has a number of highly
attractive characteristics, which indicate it will be a low-cost,
shallow, bulk mineable project with significant scale and growth
potential. The recent participation of Implats, the world’s
second largest platinum producer with fully integrated mine to
market operations, represents a significant step in the advancement
of the Waterberg Project towards potential development and
production.
R. Michael Jones, CEO of Platinum Group said,
"We are very pleased with the work completed by the Technical
Committee. The mine building and operating experience of the
technical team, including Implats and the newly appointed
engineers, alongside our own discovery team, are working with an
excellent “best for value of the Project” attitude. In our
joint venture we have perspectives ranging from geology to metals
marketing, including contributions from South Africa, the USA,
Canada and Japan. Waterberg, which is palladium dominant, is
modelled for fully mechanized production and has the potential to
be amongst the lowest operating cost mines in the PGM sector.”
Current Platinum Group Element
(“PGE”) probable reserves at the Waterberg Project
(100%) are 12.3 million ounces, comprising 61% palladium, 30%
platinum, 8% gold and 1% rhodium plus 191 million and 333 million
pounds of copper and nickel respectively and will be updated as
part of the DFS. (See the technical report dated October 19, 2016
and filed on SEDAR titled “Independent Technical Report on the
Waterberg Project Including Mineral Resource Update and
Pre-Feasibility Study”.) Much of the Waterberg Project area
remains to be drilled and assessed. The Waterberg deposit
remains open down dip and along strike.
The detailed scope of work for the DFS will
investigate two options – Option 1; a 600,000 tonne per month mine
(744,000 ounces PGEs per year) as outlined in the PFS, and Option
2; a lower capital option at 250,000 to 350,000 tonnes per month.
Early optimization work by the project team to detail the potential
for Option 2 using the three decline mechanized mining modules in
sequence are encouraging with the potential to optimize the mine
plan.
Current drilling at Waterberg is focused on the
higher-grade areas of the large-scale deposit.
Waterberg Resource and Reserve
Details
Reserve Details (100% Project Basis)
Prill Split |
Grade |
Zone |
Pt |
Pd |
Au |
Rh |
Cu |
Ni |
% |
% |
% |
% |
% |
% |
T-Zone |
29 |
49 |
21 |
1 |
0.16 |
0.08 |
F-Zone |
30 |
64 |
5 |
1 |
0.07 |
0.16 |
Probable Mineral Reserve at 2.5 g/t 4E Cut-off– Tonnage
and Grades
Waterberg Probable Mineral Reserve – Tonnage
and Grades |
Zone |
Mt |
Cut-off grade (g/t) |
Pt (g/t) |
Pd (g/t) |
Au (g/t) |
Rh (g/t) |
4E (g/t) |
Cu (%) |
Ni (%) |
T-Zone |
16.5 |
2.5 |
1.14 |
1.93 |
0.83 |
0.04 |
3.94 |
0.16 |
0.08 |
F-Zone |
86.2 |
2.5 |
1.11 |
2.36 |
0.18 |
0.04 |
3.69 |
0.07 |
0.16 |
Total |
102.7 |
2.5 |
1.11 |
2.29 |
0.29 |
0.04 |
3.73 |
0.08 |
0.15 |
Probable Mineral Reserve at 2.5 g/t 4E Cut-off–
Contained Metal
Waterberg Probable Mineral Reserve – Contained
Metal |
Zone |
Mt |
Pt (Moz) |
Pd (Moz) |
Au (Moz) |
Rh (Moz) |
4E (Moz) |
4E content (kg) |
Cu (Mlb) |
Ni (Mlb) |
T-Zone |
16.5 |
0.61 |
1.03 |
0.44 |
0.02 |
2.09 |
65,097 |
58.21 |
29.10 |
F-Zone |
86.2 |
3.07 |
6.54 |
0.51 |
0.10 |
10.22 |
318,007 |
132.97 |
303.94 |
Total |
102.7 |
3.67 |
7.57 |
0.95 |
0.12 |
12.32 |
383,103 |
191.18 |
333.04 |
Reasonable prospects of economic extraction were
determined with the following assumptions: Metal prices used in the
reserve estimate are as follows based on a 3-year trailing average
(as at July 31/2016) in accordance with U.S. Securities and
Exchange Commission ("SEC") guidance for the
assessment of resources and reserves; US$1,212/oz Pt, US$710/oz Pd,
US$1229/oz Au, US$984/oz Rh, US$6.10/lb Ni, US$2.56/lb Cu,
US$/ZAR15. Smelter payability of 85% was estimated for 4E and
73% for Cu and 68% for Ni. The effective date is October 17, 2016.
A 2.5 g/t Cut-off was used and checked against a pay-limit
calculation. Independent Qualified Person for the Statement of
Reserves is Mr. RL Goosen (WorleyParsons RSA (Pty) Ltd Trading as
Advisian). The mineral reserves may be materially affected by
changes in metals prices, exchange rates, labor costs, electricity
supply issues or many other factors. See Risk Factors in
Independent Technical Report 43-101 Effective Date: October 17,
2016 on www.sedar.com and the Company’s Annual Information Form.
The reserves are estimated under SAMREC with no material difference
to the CIM 2014 definitions in this case.
The estimation of mineral reserves has taken
into account environmental, permitting and legal, title, taxation,
socio-economic, marketing and political factors. Based on the
cut-off grade and a maximum depth cut-off of 1,250 metres the
probable reserve will support an 18-year mine life.
About Platinum Group Metals
Ltd.
Platinum Group, based in Johannesburg, South
Africa and Vancouver, Canada. Platinum Group and its partners
JOGMEC and Mnombo originated the grass-roots exploration that
discovered the Waterberg deposit and a new portion of the Bushveld
PGM complex in 2011.
Formed in 2002, Platinum Group holds significant
mineral rights and large-scale reserves of platinum and palladium
in the Bushveld Igneous Complex of South Africa, which is host to
over seventy percent of the world's primary platinum
production.
Qualified Person
R. Michael Jones, P.Eng., the Company’s
President, Chief Executive Officer and a shareholder of the
Company, is a non-independent qualified person as defined in
National Instrument 43-101 Standards of Disclosure for Mineral
Projects (“NI 43-101”) and is responsible for
preparing technical information contained in this news release. He
has verified the data by reviewing the detailed information of the
geological and engineering staff and the Independent Qualified
Person reports as well as visiting the site regularly.
On behalf of the Board ofPlatinum Group
Metals Ltd.
For further information
contact: R.
Michael Jones,
President or
Kris Begic, VP, Corporate
Development
Platinum Group Metals Ltd.,
Vancouver
Tel: (604) 899-5450 / Toll Free: (866)
899-5450
www.platinumgroupmetals.net
Disclosure
The Toronto Stock Exchange and the NYSE American
LLC have not reviewed and do not accept responsibility for the
accuracy or adequacy of this news release, which has been prepared
by management.
This press release contains forward-looking
information within the meaning of Canadian securities laws and
forward-looking statements within the meaning of U.S. securities
laws (collectively “forward-looking statements”). Forward-looking
statements are typically identified by words such as: believe,
expect, anticipate, intend, estimate, plans, postulate and similar
expressions, or are those, which, by their nature, refer to future
events. All statements that are not statements of historical fact
are forward-looking statements. Forward-looking statements in this
press release include, without limitation, statements regarding the
advancement and potential contents of the DFS; the potential
economics of the Waterberg Project, if developed; the Company’s key
objectives; and the Company’s plans and estimates regarding
exploration, studies, development, construction, production, cash
flows and other activities and developments. Statements of mineral
resources and mineral reserves also constitute forward-looking
statements to the extent they represent estimates of mineralization
that will be encountered on a property and/or estimates regarding
future costs, revenues and other matters. Although the
Company believes the forward-looking statements in this press
release are reasonable, it can give no assurance that the
expectations and assumptions in such statements will prove to be
correct. The Company cautions investors that any forward-looking
statements by the Company are not guarantees of future results or
performance and that actual results may differ materially from
those in forward-looking statements as a result of various factors,
including risks related to indebtedness; risks related to the
nature and completion of corporate reorganizations and sales of
assets; the Company’s capital requirements may exceed its current
expectations; the uncertainty of cost, operational and economic
projections; the ability of the Company to negotiate and complete
future funding transactions and successfully settlement or
restructure of debt; variations in market conditions; the nature,
quality and quantity of any mineral deposits that may be located;
metal prices; other prices and costs; currency exchange rates; the
Company’s ability to obtain any necessary permits, consents or
authorizations required for its activities and to effect the
relevant transactions and to otherwise comply with all applicable
regulatory requirements; the Company’s ability to produce minerals
from its properties successfully or profitably, to continue its
projected growth, or to be fully able to implement its business
strategies; risks related to contractor performance and labor
disruptions; and other risk factors described in the Company’s Form
40-F annual report, annual information form and other filings with
the Securities and Exchange Commission and Canadian securities
regulators, which may be viewed at www.sec.gov and www.sedar.com,
respectively. Proposed changes in the mineral law in South Africa
if implemented as proposed would have a material adverse effect on
the Company business and potential interest in projects.
Cautionary Note to U.S. and other Investors
Estimates of mineralization and other technical
information included or referenced in this press release have been
prepared in accordance with NI 43-101. The definitions of proven
and probable reserves used in NI 43-101 differ from the definitions
in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a
"final" or "bankable" feasibility study is required to report
reserves, the three-year historical average price is used in any
reserve or cash-flow analysis to designate reserves and the primary
environmental analysis or the report must be filed with the
appropriate governmental authority. As a result, the reserves
reported by the Company in accordance with NI 43-101 may not
qualify as "reserves" under SEC standards. In addition, the terms
"mineral resource", "measured mineral resource", "indicated mineral
resource" and "inferred mineral resource" are defined in and
required to be disclosed by NI 43-101; however, these terms are not
defined terms under SEC Industry Guide 7 and normally are not
permitted to be used in reports and registration statements filed
with the SEC. Mineral resources that are not mineral reserves do
not have demonstrated economic viability. Investors are cautioned
not to assume that any part or all of the mineral deposits in these
categories will ever be converted into reserves; "inferred mineral
resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Under Canadian securities laws, estimates of inferred
mineral resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. Additionally,
disclosure of "contained ounces" in a resource is permitted
disclosure under Canadian securities laws; however, the SEC
normally only permits issuers to report mineralization that does
not constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measurements. Accordingly,
information contained or referenced in this press release
containing descriptions of the Company's mineral deposits may not
be comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements of United
States federal securities laws and the rules and regulations
thereunder.
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