Platexco upgrades resources at Winnaarshoek

As part of an ongoing prefeasibility study, Platexco (PTX-T) has upgraded the resources contained in the Merensky and UG-2 reefs at its Winnaarshoek platinum group metals (PGM) property on the eastern limb of the Bushveld igneous complex in South Africa.

In the proven and probable categories are now 32.7 million tonnes grading 5.16 grams PGM (here defined as platinum, palladium, rhodium plus gold) per tonne in the Merensky and 29.8 million tonnes at 5.96 grams PGM in the UG-2. This translates into a total of 11.14 million contained ounces of PGM in both reefs.

In the measured, indicated and inferred categories are 35.1 million tonnes of 6.14 grams PGM in the Merensky and 45.6 million tonnes of 7.05 grams PGM in the UG-2. This translates into 17.27 million contained ounces of PGM in the measured, indicated and inferred categories in both reefs.

The resources in the proven and probable category would be sufficient to generate a mine life exceeding 30 years based on a monthly mining rate of 160,000 tonnes, with half the ore derived from the Merensky reef and half from the UG-2.

The in situ grade is based on a minimum stoping width of 0.8 metre for both reefs and includes a leader chromitite layer for the UG-2 reef. The following metal prices in U.S. dollars per ounce were assumed: platinum, $370; palladium, $300; rhodium, $650; and gold, $290.

Toronto-based Micon International is expanding the scope of the prefeasibility study to review two possibilities: an outright sale of concentrate produced by the mine; and the construction of a smelter, to be followed either by the selling of matte or the refining of matte on a toll basis.

In late February, Platexco converted an outstanding $750,000 debenture held by a third party into shares at a conversion rate of $3.346 per share.

In early March, Platexco closed a $3.9-million private placement of 1.2 million units priced at $3.25 each. A unit consists of one share plus half a warrant, with the holder of a whole warrant entitled

to buy another share at $3.75 over 12 months.

These two moves have increased to 18.1 million the number of Platexco shares that are issued and outstanding, leaving the company with about $5 million in its treasury.