AMN - SOUTH AFRICA: Increased confidence in Waterberg

Platinum Group Metals Ltd has increased measured and indicated resources by 1.46 million PGE ounces at the palladium dominant deposit of the Waterberg joint venture project in South Africa. Positive results from additional drilling and mineral resource assessment have increased confidence in the project.

The 2018 drilling program has seen 6.26 million 4E (palladium, platinum, rhodium and gold) ounces now recognised in the higher confidence measured category out of the total measured and indicated resources of 26.34 million 4E ounces.

Inferred mineral resources are estimated at 7 million 4E ounces. All estimates have been prepared using a 2.5 g/t 4E cut-off grade.

The updated measured and indicated resource totalling 26.34 million 4E ounces is comprised of 63.04% palladium, 29.16% platinum, 6.37% gold and 1.43% rhodium. The 242.5 million tonnes at 3.38 g/t 4Es compares to 218.3 million tonnes grading 3.55 g/t 4E indicated in the 2016 pre-feasibility study.

The T zone measured and indicated resources have increased in grade from 3.88 g/t 4E in 2016 to 4.51 g/t 4E in 2018.

The new increased confidence level resources are being used for detailed mine planning in an ongoing definitive feasibility study (DFS). The DFS is being managed by Platinum Group and a technical committee including all partners of the project operating company Waterberg JV Resources Pty Ltd.

The ongoing DFS is considering two large-scale underground bulk mining and milling options of 600,000 tonnes per month and a more modest, but still large, first phase at 250,000 to 350,0000 tonnes per month.

Platinum Group holds a 50.02% effective interest in Waterberg JV Co, with the Japan, Oil, Gas and Metals National Corporation (JOGMEC) holding a 21.95% interest, Impala Platinum Holdings Ltd (Implats) holding a 15% interest and empowerment partner Mnombo Wethu Consultants (Pty) Ltd holding the balance of the joint venture.

JSE listed, broad-based empowerment group, Hosken Consolidated Investments Limited has recently purchased more than a 15% ownership interest in Platinum Group Metals Ltd.

Platinum Group CEO and co-founder R Michael Jones said, “Waterberg is characterised by thick, near-surface mineralized zones, which are potentially amenable to low-cost, safe, bulk mechanised mining methods.

"The deposit remains open at depth and to the northwest on strike. The rare palladium dominance of the deposit is well suited to current and projected demand trends for the catalytic converter needs of the global auto market.”

The Waterberg deposit is a new discovery on the far north of the Northern Limb of the well-known Bushveld Complex in South Africa, which is host to much of the world’s platinum and rhodium reserves and a substantial proportion of the world’s palladium reserves.

The deposit was discovered in 2011 and 2012 by the company, with the support of JOGMEC, by drilling through sedimentary cover rocks to find a new and previously unexplored part of the Bushveld Complex.

Conventional PGE deposits in South Africa are platinum dominant and usually 1.0 to 1.2 metres thick.

Exploration in the Northern Limb has increased recently as a result of the successful operation and expansion of a large mechanised open pit PGE mine and the discovery of another thick, mechanized capable PGE deposit in addition to Waterberg.

Waterberg, having been geologically confirmed as a part of the complex, is unusual in that it is both near surface and palladium dominant in its metal balance.

The joint venture partners target the completion of the DFS at the end of March 2019.

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