/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES
TORONTO, Oct. 16 /CNW/ - Platmin Limited ("Platmin", TSX/AIM: PPN)
announces a revised Mineral Resource estimate at its M'Phatlele Project. The
new Mineral Resource estimate upgrades a significant proportion of the Mineral
Resource to the Indicated Category.
In this Market Release "3PGE+Au" means: Platinum ("Pt"), Palladium
("Pd"), Rhodium ("Rh") and Gold ("Au"), "Mt" means million tonnes, ("g/t")
means grams per tonne, ("Moz") means million ounces, "MR" means Merensky Reef,
"UG2" means UG2 Chromitite Layer. Mineral Resource estimates stated in this
Market Release were estimated by SRK Consulting of Johannesburg ("SRK") as
reported in an Independent Technical Report prepared by SRK in accordance with
Canadian Institute of Mining, Metallurgy and Petroleum standards (commonly
known as the "CIM" standards) and reported in accordance with National
Instrument 43-101 (the "October 2007 Independent Technical Report" or the
"October ITR") which will be filed on SEDAR shortly and available to be
downloaded from www.sedar.com. Information in this Market Release is based on
the October ITR.
- New Indicated Mineral Resource estimate of 34.87Mt at 5.07g/t
(3PGE+Au) for 5.69 Moz (3.09Moz attributable to Platmin)
- Inferred Mineral Resources estimate of 48.58Mt at 4.37g/t (3PGE+Au)
for 6.82Moz. (3.70Moz attributable to Platmin)
- 45.5% of the current Mineral Resource in terms of 3PGE+Au ounces now
falls within the Indicated category.
- Mineral Resources in terms of 3PGE+Au ounces have been declared on
both the Merensky Reef and UG2 Chromitite Layer, with the UG2
accounting for 82% of the Indicated Mineral Resource and 63% of the
Inferred Mineral Resource.
- A higher grade for the UG2 is now estimated in both the Inferred and
Indicated categories, 5.64g/t 3PGE+Au compared to 5.11g/t in the
- The M'Phatlele Project has an 7.9km strike of Merensky Reef and UG2
Chromitite Layer and is adjacent to Lonmin's Limpopo Platinum
- The revised Mineral Resource forms the basis for the pre-feasibility
study currently underway on the M'Phatlele Project.
- Measured & Indicated Mineral Resources for Platmin's projects now
total 13.97Moz (8.58Moz attributable) representing an increase of 69%.
Mr. Keith Liddell Executive Deputy Chairman of Platmin said that "this
substantial increase in Indicated Mineral Resource, gives us confidence that
the Platmin group can achieve the critical production and mine life necessary
for us to consider construction of an independent smelter and refinery."
Summary of Mineral Resources
See table 1 at http://files.newswire.ca/533/PlatminTables.doc
Background on the M'Phatlele Project
The M'Phatlele Project is located approximately 50km south of Polokwane,
the capital city of the Limpopo province, and covers an area of
11,725 hectares constituting the entire farm M'Phatlele 457KS. The M'Phatlele
Project is located in the northern part of the eastern limb of the Bushveld
Complex, contiguous with Lonmin's Limpopo Platinum operations. At the
M'Phatlele Project the Merensky Reef and UG2 Chromitite layer have been
confirmed over a strike length of approximately 7.9km; reef strike is
east-west and average dip 51 degrees south. Platmin has previously declared an
Inferred Resource of 87.9 Mt at 4.47 g/t 3PGE+Au for 12.6 million ounces on
Revised Mineral Resource Estimate
SRK has calculated the current Mineral Resource estimate for the
M'Phatlele Project on the basis of the additional drilling that has been
ongoing on the project. The Mineral Resource estimate is based on 89 boreholes
consisting of 112 assayed intervals through the Merensky Reef and 245 through
the UG2 Chromitite Layer.
The revised Mineral Resource estimate is presented in the table below and
now includes a significant proportion of Indicated Mineral Resources (45.5%).
The new estimate comprises Indicated Mineral Resources of 34.87Mt at 5.07g/t
(3PGE+Au) for 5.69Moz and Inferred Mineral Resources of 48.58Mt at 4.37g/t
(3PGE+Au) for 6.82Moz. The UG2 Chromitite Layer contributes 82% of the
Indicated Mineral Resource and 63% of the Inferred Mineral Resource. The
balance of the Mineral Resource is from the Merensky Reef.
The revised Mineral Resource estimates are presented in the table below.
See table 2 at http://files.newswire.ca/533/PlatminTables.doc
UG2 Chromitite Layer.
Mineral Resources from the UG2 have been declared across the entire 7.9km
strike of the M'Phatlele orebody, the Indicated Mineral Resource has been
declared from 30m down to approximately 600m below surface and the Inferred
Mineral Resource continues down to approximately 1180m vertically below
surface. The Indicated Mineral Resource totals 25.67Mt at 5.64g/t 3PGE+Au for
4.66Moz while the Inferred Mineral Resource totals 23.53Mt at 5.64g/t for
4.27Moz. The area over which the UG2 Mineral Resources have been declared is
shown in the Map 1 attached at http://files.newswire.ca/533/Map1.pdf
The variations in the Merensky Reef on the property necessitates the
estimation of several Mineral Resource blocks based on facies and Mineral
Resource category; 3 blocks lying to the west of a dunite intrusive affected
zone comprising two sub-facies, the West Facies Thick Reef and West Facies
Narrow Reef, The West Facies Thick Reef is further divided into a shallow
Indicated Mineral Resource block and a deeper Inferred Mineral Resource block.
The boundary between the Indicated and Inferred Mineral Resource blocks is
approximately 400m vertically below surface. There is also an East Facies
which is generally of lower grade and variable thicknesses. The localities of
all blocks are shown on map 2 below.
The classification into Indicated and Inferred Mineral Resource
categories has been based on the drill spacing and variability of reef. In
total, the M'Phatlele MR Mineral Resources extends from 30m to just over
1,000m vertically below surface. The logic for delineating the various MR
blocks is the same as that applied to the UG2, however because the Merensky
Reef is approximately 190m vertically above the UG2, the depth to which the
Merensky Reef Mineral Resource extends is shallower than for the UG2.
The Indicated Mineral Resource totals 9.20Mt at 3.48g/t 3PGE+Au for
1.03Moz while the Inferred Mineral Resource totals 25.05Mt at 3.17g/t for
2.55Moz. The area over which the MR Mineral Resources have been declared is
shown in the Map 2 attached at http://files.newswire.ca/533/Map2.pdf
Attributable Mineral Resources
Platmin through its subsidiary Boynton Investments has an attributable
interest in the M'Phatlele Project of 54.3%. A summary of the Mineral
Resources attributable to Platmin from the project is presented below.
Platmin Attributable Mineral Resource Statement for the M'Phatlele
Project, October 2007
See table 3 at http://files.newswire.ca/533/PlatminTables.doc
Analysis of revised Mineral Resource estimates
Parts of the Inferred Mineral Resource are likely to be transferred into
the Indicated Mineral Resource category upon completion of further drilling.
All of the Inferred Mineral Resources are open at depth and given the nature
of the geology of the Bushveld Complex, it is possible that the overall
Mineral Resource base may be increased by the deeper drilling which is
currently in progress.
SRK considers that the Mineral Resources declared at the M'Phatlele
Project are of a sufficient quality and quantity for a feasibility study to be
conducted. This feasibility study is on-going.
The most significant aspect of the current Mineral Resource estimate is
the transfer of 45.5% of the current Mineral Resource into the Indicated
The current estimated 3PGE+Au total content for both Reefs amounts to
5.69Moz in the Indicated Mineral Resource category and 6.82Moz in the Inferred
Mineral Resource category compared to the previous RSG Global Inferred Mineral
Resource estimate of 12.6Moz.
For the UG2 the current Mineral Resource of 4.66Moz Indicated and 4.27Moz
Inferred compares with the previous Inferred Mineral Resource estimate of
8.67Moz. and for Merensky Reef the current Mineral Resource estimate of
1.03Moz Indicated and 2.55Moz Inferred compares with the previous Inferred
estimate of 3.98Moz.
The previous Inferred Mineral Resource on the UG2 was taken from surface
to 1,000m. The current Mineral Resource blocks therefore cover a slightly
increased area from 30m below surface down to approximately 1,180m. The
previous thickness estimate was 1.79m compared to the current one of 1.31m. By
selecting the intersections the current SRK grade estimate of 5.64 g/t 3
PGE+Au is higher than the 5.11g/t previously obtained by RSG. Finally the
tonnage discount was previous 30% versus the 17% for both Indicated and
Inferred Mineral Resources in the current SRK estimate.
In the case of the MR an area affected by a dunite intrusive has been
completely excluded from the revised Mineral Resource estimate. This zone is
approximately 1,400m wide along strike, and this has been extrapolated down
dip to the limit of the presently declared Mineral Resource. The Indicated
Merensky Reef Mineral Resource only covers the area west of the dunite
affected zone - a strike length of approximately 4km and extends from 30m
below surface down to a vertical depth of 400m. West of the dunite intrusion
and down dip of the Indicated Mineral Resource block, a further Inferred
Mineral Resource block has been defined down to approximately 1,000m below
surface. East of the dunite affected area an Inferred Mineral Resource has
been estimated from 30m below surface down to a depth of approximately 1,000m
below surface and over a strike length of approximately 2.5km. The area
covered by the current Mineral Resource estimate is therefore fractionally
less than the previous estimate which took the area from surface to a vertical
depth of 1,000m across the entire strike and did not exclude the area affected
by the dunite intrusion. The current Merensky Mineral Resource mass has been
discounted by an aggregate of 14% in the Indicated Mineral Resource and 19%
for the Inferred Mineral Resource. In addition the excluded dunite affected
area amounts to a reduction of 17.7%. Therefore the current geological losses
are higher than the 30% applied in the previous Mineral Resource estimate. In
the current Mineral Resource estimate (all categories) the Merensky Reef has a
lower grade and greater thickness than in the previous estimate.
Ruthenium and Iridium
Platinum group elements such as Ruthenium ("Ru") and Iridium ("Ir") occur
with Pt, Pd and Rh in all Bushveld ores and are co-produced with the Pt.
Limited 6 PGE ("Pt, Pd, Rh, Ru, Ir and Osmium") analyses from the M'Phatlele
Project have indicated Ru and Ir to be present in the following proportions
relative to Platinum, UG2 Pt:Ru = 3.3 and Pt:Ir = 14.4, MR Pt:Ru = 9.0 and
Pt:Ir = 51.4. Additional analyses are underway which will provide sufficient
data for inclusion of these metals in the Mineral Resource.
The current Mineral Resource will form the basis for the pre-feasibility
study currently underway on the M'Phatlele Project with SRK as lead
consultants. This study will investigate mining down to approximately 500m
below surface as a first phase of development. It is anticipated that ore will
be processed through a single conventional flotation plant designed to process
at an optimal production rate.
Current Drilling Program
A drilling program is currently underway targeting the orebody down to
1,500m on the UG2. Location of planned holes as well as their progress is
shown on Map 1. The objective of this program is to demonstrate reef
continuity down to this depth potentially increasing the Inferred Mineral
Resource. A further infill drilling program is underway on the MR east block
with the objective of improving the understanding of the variability and
facies of the MR in this area. Results from this program may justify upgrading
of a portion of the present Inferred Mineral Resource to Indicated. Planned
locations of the holes and drilling progress are shown in Map 2.
PLATMIN TOTAL MINERAL RESERVES & RE
Total Mineral Reserves and Resources for all Platmin's projects are
currently as follows; Proven plus Probable Mineral Reserves of 67.43Mt at
2.04g/t 3PGE+Au, for 4.42Moz (3.20Moz attributable), Measured plus Indicated
Mineral Resources of 131.40Mt at 3.31g/t 3PGE+Au for 13.97Moz (8.58Moz
attributable), Inferred Mineral Resources of 133.90Mt at 3.63g/t 3PGE+Au for
15.64Moz (8.55Moz attributable).
This represents a 69% increase in Measured and Indicated Mineral
Resources in terms of 3PGE+Au ounces.
Quality Assurance, Quality Control and Qualified Persons
Exploration at the M'Phatlele Project is being conducted under the
supervision of Mr. Mike Bowen, Project Manager for the M'Phatlele Project. Mr.
Bowen (M.Sc. Geology) is a geologist with more than 10 years experience in PGM
exploration and a member of the Geological Society of South Africa. Mr. Bowen
is an independent contractor to Platmin.
Group Exploration Manager, Mr. John Astrup, the Company's Qualified
Person for the M'Phatlele Project, as defined under National Instrument
43-101, is responsible for the technical material in this release, excluding
the mineral resource estimate. Mr. Astrup has verified the data disclosed in
this release. Mr. John Astrup (M.Sc. Exploration Geology) is a registered
Professional Natural Scientist ("Pr.Sci.Nat.") with the South African Council
for Natural Scientific Professions ("SACNASP") and has 10 years of experience
in PGM, Ni, Cu exploration. The content of this press release has been
compiled by Mr. John Astrup.
Drill holes were drilled with a combination of NQ, and TNW core;
generally mother holes are completed with NQ core and deflections with TNW
core. The core is logged by qualified geologists and mineralised intervals
identified and sampled. Sample intervals are kept to approximately 20cm; core
is then split by means of a diamond saw. Geological logging and sampling was
carried out under the supervision of Mr. Bowen. Further details of Platmin's
geological procedures have been reported in Platmin's October ITR.
Samples are submitted to SGS Lakefield Research Africa Laboratories in
Johannesburg where they are prepared and analysed. Samples are analysed for
Pt, Pd, Au, Rh, Ni and Cu by SGS Lakefield Research Africa an ISO 17025
accredited laboratory. Pt, Pd and Au analyses were carried out using a lead
fire assay technique with a silver collector and ICP-OES finish, Rh is
analysed with a separate lead fire assay using a palladium collector and
ICP-OES finish. Ni and Cu analyses are done by Aqua Regia with an AA finish
and reflect the acid soluble metal content. Quality Control ("QC") procedures
include the submission of certified standards with every reef intersection
submitted. Results of the standards are analysed on a batch by batch basis as
is all internal Quality Assurance ("QA")/QC included by the laboratory which
includes laboratory repeats, standards and blanks. Prior to major revisions to
the resource estimates, a selection of pulps that have been returned from
Lakefield are relabelled and resubmitted to Lakefield for check analyses, in
addition further pulps are submitted to an independent second or referee
laboratory (Genalysis). Further details of Platmin's QA/QC procedures have
been described in Platmin's Independent Technical Report.
Dr. Anthony Martin is employed by SRK Consulting and is the Qualified
Person (as defined in National Instrument 43-101 (Standards of disclosure for
Mineral projects)) for the Mineral Resource estimation on the M'Phatlele
Property reported in this release. He is registered with the South African
Council for Natural Scientific Professions ("Pr.Sci.Nat") and the Australian
Institute on Mining and Metallurgy ("AusIMM"). He has 36 years experience as a
geologist of which 28 have been involved with mining geology and exploration.
The geology and facies variation of both the Merensky and UG2 has
dictated different approaches to estimating the Mineral Resources of these
reefs. Both methods use non-spatial arithmetic averages.
The UG2 Mineral Resource has been estimated by averaging the mineralised
zone over a selected cut by weighting this for both interval length and
density. The grade estimation methodology has used a weighted accumulation of
the average grade and thickness of each seam intersection. In addition, a
statistical analysis was used to exclude anomalously thick seams. Having
determined the average grade of each intercept, the overall width is an
arithmetic average of all the widths with the average grade weighted by the
width. The UG2 Mineral Resources cover the whole of the presently drilled area
down to a depth of approximately 1,000m with a depth subdivision into
Indicated and Inferred categories to reflect the current borehole spacing.
The MR was estimated using the Histogram Method which was developed by
Anglo Platinum in the 1970's and is dependent on discerning facies variations
within the reef. The grade estimation methodology assigns a global grade and
width and, because it assumes continuity of reef quality over the selected
evaluation area and fixes the mining cut, features such as potholes or faults
are discounted from the Mineral Resource tonnage without affecting the grade.
The assay values and sample intervals for 3PGE+Au, as well as base metals Ni
and Cu for each representative intersection were captured into Excel
spreadsheets. Each sample interval has been corrected to its true thickness
and standardized to 10cm. The intersections were then aligned on spreadsheet
rows relative to the Marker. An arithmetic mean is then calculated across all
the intersections. In order to optimise the position and width of the highest
value mining slice, metal prices and plant recovery factors are applied to
each of the 10cm Merensky average grades for all metals and these are summed
to give a total $/t value for each 10cm interval. The grades are then averaged
over that value interval to give the Resource grade. The average density is
obtained over the same interval and this, combined with the value true width,
is applied to the area to obtain the Resource mass. All three Merensky facies
Resources have been estimated using the same methods. The method has been
successfully applied to Mineral Resource estimates for Pt deposits on the
Great Dyke in Zimbabwe and the Bushveld Complex.
Platmin is a TSX and AIM (PPN) listed PGM exploration and development
company focused on its four key advanced projects that host PGM Mineral
Resources and Reserves: Pilanesberg, M'Phatlele, Grootboom and Loskop of which
the first three are currently in the development phase. All of Platmin's
projects are located in the Bushveld Complex of South Africa, which is
estimated to contain approximately 90% of global platinum resources.
This Market Release contains forward-looking statements that are not
historical facts. Forward-looking statements involve risks, uncertainties and
other factors that could cause actual results, performance, prospects and
opportunities to differ materially from those expressed or implied by such
forward-looking statements. Forward looking statements in this Market Release
include, but are not limited to, statements regarding the prospectivity of the
the M'Phatlele property or the planned or ongoing work programs relating to
the M'Phatlele Property including but not limited to statements relating to
building a smelter, the M'Phatlele property being able to deliver the critical
mass necessary for an independent smelter, and the inclusion of Iridium or
Ruthenium in any future Mineral Resource estimates. Although Platmin believes
that the assumptions and factors used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this Market Release, and no
assurance can be given that such events will occur in the disclosed time
frames or at all. Platmin disclaims any intention or obligation to update or
revise any forward-looking statement, whether as a result of new information,
future events or otherwise. Furthermore, forward-looking statements reflect
the current expectations and beliefs of the Company based on information
currently available to the Company. Forward-looking statements are subject to
a number of risks and uncertainties that may cause the actual results of the
Company to differ materially from those discussed in the forward-looking
statements, and even if such actual results are realised or substantially
realised, there can be no assurance that they will have the expected
consequences to, or effects on the Company. Factors that would cause actual
results or events to differ from current expectations include, among other
things, changes in commodity prices, changes in equity markets, failure to
establish estimated mineral resources (the inferred mineral resource figures
in this Market Release are estimated and no assurance can be given that the
indicated levels of minerals will be produced), political risks arising from
operating in Africa, changes to regulations affecting the Company's
activities, delays in obtaining or failures to obtain required regulatory
approvals, failure of equipment, uncertainties relating to the availability
and costs of financing needed in the future, the uncertainties involved in
interpreting drilling results and other geological data, delays in obtaining
geological results, and the other risks involved in the mineral exploration
industry. Any forward-looking statement only speaks as of the date on which it
was made and, except as may be required by applicable securities laws, as
mentioned above in this disclaimer the Company disclaims any intent or
obligation to update any forward-looking statement, whether as a result of new
information, future events or otherwise. As mentioned above, although the
Company believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not guarantees of
future performance and accordingly undue reliance should not be put on such
statements due to the inherent uncertainty therein.
This Market Release does not constitute or form part of any offer or
invitation to sell or issue or any solicitation of any offer to purchase or
subscribe for any securities in any jurisdiction, nor shall it (or any part of
it) or the fact of its distribution form the basis of, or be relied upon in
connection with, or act as any inducement to enter into, any contract or
For further information:
For further information: Platmin Limited, 6 EcoFusion Office Park, Block
B, 324, Witch-Hazel Avenue, Highveld Park X59, 0157, Centurion, 0067, South
Africa; Keith Liddell, Executive Deputy Chairman, +61 8 9221 7466; Ian Watson,
Chief Executive Officer, +27 12 661 4280; RBC Capital Markets, Peter
Barrett-Lennard, +44 20 7653 4567; Grant Thornton Corporate Finance (Nomad),
Fiona Owen, +44 207 383 5100; Haywood Securities, John Willett, (416)