Major resource boost in the Bushveld

Vancouver — Indicated resources have almost doubled at Platinum Group Metals’ (PTM-T, PTMQF-O) Western Bushveld joint venture in South Africa.

An updated resource calculation shows indicated resources have increased to 20.5 million tonnes grading 3.9 grams per tonne of combined platinum group metals (PGMs) platinum, palladium and rhodium, plus gold, or about 2.57 million contained ounces of PGMs plus gold, calculated over an average mining width of 1.3 metres. Additional inferred resources are now estimated at 31 million tonnes at 5.2 grams PGMs plus gold, or over 5.1 million contained ounces PGMs and gold, across an average mining width of 1.2 metres.

About 75% of the indicated resource and 60% of inferred resources are contained in the UG2 Reef, with the remainder hosted in the Merensky Reef.

Drilling, of over 36,000 metres in 93 holes, has indicated that resources will be accessible by declines, rather than previously modelled vertical shafts, resulting in potentially lower development costs. A prefeasibility study is expected to be complete by mid-year, with a full feasibility anticipated by year-end.

The project is a joint venture between Platinum Group Metals and Anglo Platinum (AGPPY-O), each holding a 37% interest, with the remainder held by Africa Wide Mineral Prospecting & Exploration, a local black economic empowerment (BEE) company. Africa Wide’s 26% interest satisfies South Africa’s 10-year targeted BEE ownership levels under the country’s new Mining Charter and Mineral Resources and Petroleum Development Act.

The joint venture covers about 67 sq. km in the platinum-rich western limb of the Bushveld complex, host to a majority of the world’s PGMs production. It adjoins Anglo Platinum’s Bafokeng Rasimone mine (refined platinum output of about 200,000 oz. per year) and its Styldrift project.

Continued infill drilling by Platinum Group Metals will focus on upgrading resources to the indicated category, for inclusion in financial modelling under the prefeasibility study.