Partners Anooraq Resources (ARQ-V) and Anglo American Platinum have begun a 16,000-metre drilling program on the Drenthe farm on the northern limb of the Bushveld igneous complex in South Africa.
Operator Anooraq will sink 30 infill and step holes totalling 6,000 metres to increase the drill density and confidence in Drenthe’s known resources, which stand at 99.4 million tonnes grading 0.6 gram platinum, 0.63 gram palladium, 0.012 gram rhodium and 0.06 gram gold per tonne, plus 0.16% nickel and 0.1% copper. The estimate is based on a cutoff grade of 0.5 gram PGEs plus gold. The resource remains open to the north, west and south.
Meanwhile, two drill rigs will sink another 56 holes for 10,000 metres to test for extensions of the Drenthe deposit onto the northern portion of Amplats’ Overysel farm immediately to the south. Combined, the two properties host 2.8 km of prospective stratigraphy.
Amplats owns and operates the 12,000-tonne-per-day Sandsloot open-pit mine, 12 km south of Drenthe. The mine, which has been in operation since 1993, produces 350,000 oz. PGEs plus gold annually.
Late last year, the two inked a deal to search for platinum group elements, gold and nickel on the northern limb over five years. Anooraq will spend up to US$1.8 million on exploration; thereafter it will have the option of advancing to the feasibility stage (T.N.M., Dec. 8-14/03).
Earlier this year, Australian-based RSG Global concluded that Drenthe is capable of supporting an open-pit mine with pretax cash flow (excluding royalties and interest) pegged at US$435 million over 17 years. The net present value is US$144 million, based on a 10% discount. Mine construction was estimated at US$58 million, excluding future exploration and feasibility costs. At an internal rate of return of 39%, payback would come in just under three years.
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