Platmin gets positive study for Pilanesberg (July 16, 2007)

Platmin (PPN-T, PPN-L) will go ahead with production from the Pialnesberg platinum-group-element project in the Bushveld camp of northern South Africa following a positive feasibility study.

The study puts the life of the mine at 16 years with average production of 250,000 oz. combined precious metals annually (platinum, palladium, rhodium and gold).

The deposits, Tuschenkomst and Ruighoek, would be mined by open pit. Tuschenkomst has a measured and indicated resource of 66.8 million tonnes grading 1.27 grams platinum, 0.59 gram palladium, 0.17 gram rhodium and 0.06 gram gold per tonne, plus 0.09% nickel and 0.02% copper. Ruighoek’s resource, all indicated, is 12 million tonnes at 1.9 grams platinum, 0.86 gram palladium, 0.21 gram rhodium and 0.09 gram gold per tonne.

The open pits would feed a mill producing two concentrates (one from each of the deposits’ ore types) and then blending them to produce a marketable product for smelters.

Based on conservative metal price projections, Platmin expects a US$260 million net present value (at an 8% discount rate) and an internal rate of return of 21.7%.