AMN - SOUTH AFRICA: Waterburg DFS is on schedule

The definitive feasibility study (DFS) for Platinum Group Metals Ltd's Waterberg Palladium Project in South Africa is advancing according to plan. Target date for DFS completion is the end of the March quarter of 2019.

An updated resource model to be used in the DFS is in the final stages of calculations and peer review.

Three-dimensional models have been provided to independent project engineer for mine design, Stantec Consulting International LLC. The mine design involves bulk underground fully mechanised methods.

Optimisation of the methods utilised for the company’s October 2016 Waterberg pre-feasibility study is in progress.

Stantec brings global mine design and operating experience in these methods to the study.

Metallurgical test work and infrastructure designs are also progressing well, led by independent project engineer for plant design and metallurgy DRA Projects SA (Proprietary) Limited, an experienced platinum and palladium plant, engineering and construction firm.

The DFS is looking at two potential scales for the project, including a 600,000 tonne per month option and a 250,000-350,000 tonne option.

A Mining Right Application for the project, endorsed by all of the Waterberg Joint Venture partners, including Impala Platinum Holdings Ltd (Implats), Japan Oil, Gas and Metals National Corporation (JOGMEC) and Mnombo Wethu Consultants (Pty) Ltd, was filed in early September 2018.

The detailed consultation process in the area of the mine has commenced as required under Environmental Assessment and Mining Right regulations and specialist consultants have been engaged to manage and document this process.

Co-operation with the Capricorn Municipality surrounding the mine has been active and positive including work on regional water supply plans and infrastructure under a recently signed co-operation agreement.

Work on the planned national electrical grid connection for the project is also progressing well. Consultation on powerline servitudes and permits are advancing on plan as part of the DFS.

Platinum Group Metals is the Waterberg project operator and holds an effective 50.02% interest in the project. Implats, the world’s second largest platinum producer, owns a 15% interest.

The project is being managed by a joint technical committee which regularly brings together expertise from the senior levels of all partners, including the construction and operating experience of Implats.

Mnombo, a black economic empowerment company, holds a 26% project interest. The company owns a 49.9% interest in Mnombo.

JOGMEC holds a 21.95% project interest in the Waterberg project and is in the process of transferring a 9.755% interest to Japanese conglomerate Hanwa Co Ltd.

Hosken Consolidated Investments Limited, a South African black empowerment investment holding company listed on the JSE with a US$1.1 billion market capitalisation, owns a 15% stake in Platinum Group.

Implats is an active participant in the joint venture and holds an option to increase its stake to 50.01% following the completion of the DFS.

Palladium has been gaining market interest based on continued demand in the auto sector, due to a growing trend towards gasoline engines and hybrids that use palladium dominant catalysts.

Platinum Group Metals is focused on completing the DFS for Waterberg on time and on budget with the assistance of its project partners.

Waterberg is a bulk mineable underground deposit in northern South Africa, which has potential to be a low-cost dominantly palladium mine.

www.platinumgroupmetals.net