/NOT FOR DISSEMINATION IN THE
UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/
Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, Nov. 10, 2017 /CNW/ - Eastern Platinum Limited
("Eastplats" or the "Company") is pleased to report
it has filed its Q3 2017 unaudited condensed interim consolidated
financial statements and management discussion and analysis for the
three and nine-month period ended September
30, 2017. Below is a summary of our financial results for
the period (all amounts in USD).
- Net loss for the nine months ended September 30, 2017, $6.8
million (loss of $0.06 per
share) compared with a net loss of $34.5
million (loss of $0.33 per
share) for the same period in 2016;
- Cash and short-term investments of $23.0
million and working capital of $24.5
million at September 30,
2017;
- Net operating cash flows used during the nine months ended
September 30, 2017, $5.7 million; and
- Development work expended during the nine months ended
September 30, 2017 was $1.2 million.
Operating Highlights and Outlook
The year 2017 has seen a dramatic change in the Company.
Although, the Company continues to ensure Crocodile River Mine
("CRM") is maintained, its focus and resources have moved to future
projects.
ZANDFONTEIN UG2 TAILINGS RETREATMENT PROJECT TO RECOVER
CHROME
- Mineral resource estimate of 13,680,000 tons at an average
grade of 20.72% chromium oxide;
- Mineral reserve estimate of 6,420,000 tons, containing
1,440,000 tons of chromium oxide at an average grade of
22.36%;
- Estimated after-tax net present value of ZAR 42.2 million (US$3.0
million) using 13% discount rate;
- Estimated operating costs of ZAR
71.26/(RoM) (US$5.05) per ton
processed;
- Estimated after-tax internal rate of return of 24% with a 33
month mine life;
- Estimated capital costs for the project of ZAR 219 million (US$15.5
million); and
- Recommendation to prepare platinum group minerals ("PGM")
feasibility study.
The qualified person for the purposes of NI 43-101 who approved
the contents of this news release is Dr. Bielin Shi, PhD, MSc,
FAusIMM MAIG, who is also a director of the Company.
SOUND MINING FEASIBILTY STUDY ON PGM RECOVERY AT
ZANDFONTEIN
Sound Mining Solutions (Pty) Ltd. ("Sound Mining") was awarded
the feasibility study on PGM recovery in the Tailings Storage Area
of Zandfontein as there may be substantial value to recover. The
bankable feasibility study has commenced and the results are
expected in early Q2 2018.
SRK FEASIBILITY STUDY ON MAREESBRUG
PROJECT
SRK Consulting (South Africa)
Pty Ltd. ("SRK") is continuing work on the feasibility study on the
Mareesburg project. Significant infill drilling completed to
compliment the current resource model and further increase the
confidence in the resource. Assessment and updating of the
geological resource model is progressing and structurally and
lithological, the results appear in line with the expectations.
Geotechnical holes have been completed and the information and lab
test work results will be used to determine the pit slope
angles.
In addition, during this quarter metallurgical holes were also
drilled for fresh ore and trenches were dug on the outcrop for near
surface samples which can be used to determine the recovery factors
and assumptions for the pit optimisation models. Completion of the
study and results are expected in Q2 2018.
As Eastplats complete 2017, all the studies and core information
that is collected and analysed can provide the basis for management
to make future strategic decisions regarding the Company's mining
properties.
The Company has filed the following documents which are
available under the Company's profile on SEDAR at
www.sedar.com:
- Unaudited condensed interim consolidated financial statements
for the three and nine-month period ended September 30, 2017; and
- Management's discussion and analysis for the three and
nine-month period ended September 30,
2017.
Cautionary Statement Regarding Forward-Looking
Information
This press release contains "forward-looking statements" or
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of
applicable securities legislation. Such forward-looking
statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the Company. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "will", "plan",
"intends", "may", "will", "could", "expects", "anticipates" and
similar expressions. Further disclosure of the risks and
uncertainties facing the Company and other forward-looking
statements are discussed in the Company's Annual Information Form
and Management's Discussion and Analysis which are available under
the Company's profile on www.sedar.com.
In particular, this press release contains forward-looking
statements pertaining to: the estimated resources, reserves and
economics on the Zandfontein UG2 tailings retreatment project to
recover Chrome, completion of updated feasibility studies on our
PGM properties, potential changes to our mining projects including
re-mining and the infill drilling, completion of the feasibility
study related to our Mareesburg project. These forward-looking
statements are based on assumptions made by and information
currently available to the Company. Although management
considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect. By
their very nature, forward-looking statements involve inherent
risks and uncertainties and readers are cautioned not to place
undue reliance on these statements as a number of factors could
cause actual results to differ materially from the beliefs, plans,
objectives, expectations, estimates and intentions expressed in
such forward-looking statements. These factors include, but
are not limited to, commodity prices, economic conditions, currency
fluctuations, competition and regulations, legal proceedings and
risks related to operations in foreign countries.
The forward-looking statements in this press release are made as
of the date they are given and, except as required by applicable
securities laws, the Company disclaims any intention or obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein.
SOURCE Eastern Platinum Limited