Platmin Okays Development at Pilanesberg PGM Project


Close-spaced drilling under way at Platmin’s Tuschenkomst property in South Africa.
Platmin Ltd. recently reported the results of a feasibility study for its Tuschenkomst and Ruighoek properties at the company’s Pilanesberg project, and also announced that its board of directors approved development of the project on July 12 based on the favorable recommendation offered by the study.

Platmin is a TSX and AIM (PPN) listed PGM exploration and development company with four advanced projects that host PGM mineral resources and reserves: Pilanesberg, M'Phatlele, Grootboom, and Loskop—of which the first three are now in the development phase. All of Platmin’s projects are located in the Bushveld Complex of South Africa. The Tuschenkomst and Ruighoek properties are located approximately 60 km northwest of Rustenburg.

The Pilanesberg feasibility study, conducted by SRK, is based on treatment of 5 million mt/y of ore mined from two open pits at Tuschenkomst and Ruighoek, which will be processed through a central concentrating facility on the Tuschenkomst property.

In April 2007, Platmin announced an updated mineral resource estimate for Tuschenkomst of 66.8 million mt at 2.09 g/t 3PGE+Au (platinum, palladium, rhodium, and gold) for a total of 4.49 million oz and for Ruighoek of 12 million mt at 3.07 g/t 3PGE+Au for a total of 1.18 million oz.

The Tuschenkomst mineral resource is based on bulk mining from the top of the Merensky Reef (MR) to the base of the Lower Pseudo Reef (the "silicate ore") and selectively mining the UG2 reef. This silicate ore horizon includes up to four PGE reefs with some discordant mineralization present in the parting material.

The Tuschenkomst orebody will be mined over a strike length of 3 km down to a maximum depth of 150 m in a conventional open pit at a waste-to-ore strip ratio of 6.2:1. The silicate reefs will be bulk mined at a rate of 320,000 mt/month. The UG2 reef will be selectively mined at a rate of 50,000 mt/month. SRK estimated the proven and probable mineral reserves at Tuschenkomst to total 59.9 million mt at 1.91g/t 3PGE+Au for 3.7 million oz.

At Ruighoek the final pit will be approximately 2.5 km long with a maximum depth of 150 m, and a strip ratio of 18:1. There will be two pits separated by a structural zone of poor reef development. All PGE reefs will be selectively mined. Silicate reef production will be targeted at 35,000 mt/month and UG2 at 15,000 mt/month, with the ore being transported to the central concentrator.

The processing plant for the Pilanesberg project will comprise two concentrators treating the mineralized silicate ore and UG2 separately. Part of the bulk silicate ore from Tuschenkomst will be upgraded prior to delivery to the concentrator. The tailings from both concentrators will be combined and placed on a tailings disposal facility.

The two concentrates will be combined to achieve a low-chrome, high-PGE and base metal concentrate for smelting. Total production over the life of mine will be 3 million oz recovered in concentrate with the first 11 years averaging 250,000 oz 3PGE+Au/y. Total capital expenditure over the construction period is estimated at ZAR1.67 billion ($237.7 million).