/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES
TORONTO, March 4 /CNW/ - Platmin Limited ("Platmin" or the "Company"
TSX/AIM: PPN) is pleased to announce that the Mphahlele project is being fast
tracked toward completing a definitive feasibility study during the third
quarter of calendar 2008.
- Definitive Feasibility Go-ahead - SRK recommendation and Board
- Mining Right application for Mphahlele accepted by DME - Grant
expected December 2008
- Preferred Mining Contractor engaged as advisor on engineering design
- Temporary Power Supply (5 MVA) application accepted by Eskom
- Permanent Power Supply (55 MVA) application already lodged with Eskom
- October 2006
- Life of Mine Water allocation secured - construction of distribution
systems from the Flag Boshielo Dam and the De Hoop Dam (in
Definitive Feasibility Fast Tracked
Platmin's Board approval to fast track the Mphahlele project to
definitive feasibility study stage came after receiving notification from the
Department of Minerals and Energy of South Africa ("DME") that the Mining
Right application over the Mphahlele property had been accepted and after
receiving a letter from SRK Consulting ("SRK") recommending that the project
be progressed to the next phase of study in which the technical and economic
inputs to the project can be further refined.
It is expected that the Mining Right for the Mphahlele project will be
granted during December 2008.
Mr. Ian Watson, Platmin's CEO, said that "With the acceptance of the
Mining Right by the DME we are fast tracking the definitive feasibility study
of our Mphahlele project in order to be in a position to commence mine access
through decline development (with stoping commencing at approximately 50 m
below surface) as soon as our Mining Right is granted in December 2008" and
added that "Entering the full feasibility study phase on Mphahlele moves
Platmin toward its goal of producing in excess of a combined 500,000 oz of
PGMs of production from its two major projects, Mphahlele and Pilanesberg
(currently being developed). The first 250,000 oz of PGMs from Platmin's
Pilanesberg project is on track to commence production in the first calendar
quarter of 2009".
Preferred Mining Contractor engaged as advisor on engineering design
Platmin's preferred mining contractors, Murray & Roberts Cementation
("MRC"), a recognized South African mining contractor has been contracted to
provide advisory input into the mining engineering design during the
definitive feasibility study phase of the Mphahlele project which is being
undertaken by SRK. MRC's early involvement should ensure that on completion of
the definitive feasibility study the final engineering design and project cost
is completely settled so that Platmin can move seamlessly into development.
Platmin's Chief Operating Officer Mr. Terence Holohan said "early
engagement of MRC following the adjudication of five mining contracting
companies, will give the project a head start and should enable us to progress
into the development phase without delay once the Mining Right is granted".
Temporary Power (5 MVA) was applied for by Platmin in October 2006. The
application lodged with South Africa's electricity public utility ("Eskom") is
for an installed power supply of 5 MVA which will be utilized for development
of declines at the Mphahlele property. The application was accepted by ESKOM
in July 2007 with detailed terms to be confirmed in a budget quotation.
Permanent Power (55 MVA) was applied for by Platmin in October 2006.
Platmin is awaiting Eskom to submit a budget quotation setting out the
detailed terms of provision of this power. The 55 MVA applied for will be
provided by three 20 MVA transformers which will be ordered by Platmin once
the budget quotation has been received from Eskom.
Water - The Olifants River Water Development Project - Life of Mine Water
The Company has been intimately involved in negotiations to formalize a
Water User's Association (WUA) which manages the construction of dams and
distribution pipelines to carry water from the recently (2006) raised Flag
Boshielo Dam, and the de Hoop Dam currently under construction. The de Hoop
Dam is expected to be completed in 2011. The WUA has been developed as a
public-private partnership between water users and potential water users, and
local as well as provincial governments to develop an equitable distribution
of run-off waters within the Olifants River catchment system to feed the
industries within the Northern and Eastern Limbs of the Bushveld Complex.
Platmin will have the Mphahlele project total daily water requirement of 7
mega liters delivered through pipelines from these water sources.
Platmin has also been extensively drilling in the area, to locate water
aquifers in the region of the project to provide alternative water for the
project. It is expected that water from the aquifers drilled to date could
provide up to 2 mega liters of water per day. It is expected that water from
aquifers drilled to date could be approximately 25 per cent of the cost of
water from the de Hoop Dam and the Flag Boshielo Dam. In addition Platmin
participates in a joint water forum with the Department of Water Affairs and
Forestry to responsibly manage water supply in the area.
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, Mphahlele, Grootboom and Loskop of which
the Pilanesberg Project is currently in the development phase with the balance
expected to follow. All of Platmin's projects are located in the Bushveld
Complex of South Africa, which is estimated to contain approximately 90% of
global platinum Mineral Resources.
Mphahlele Project Highlights
The Mphahlele 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 Mphahlele 457KS. The Mphahlele Project
is located in the northern part of the eastern limb of the Bushveld Complex.
At the Mphahlele 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: south. 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). 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.
In this Market Release "3PGE+Au" means: Platinum ("Pt"), Palladium
("Pd"), Rhodium ("Rh") and Gold ("Au"), "Mt" means millions of tonnes, "g/t"
means grams per ton, "km" means kilometre(s), "Moz" means million ounces,
"MVA" means Maga Volts Amps, "Silicate" means the concentrate emanating from
the Merensky reef, Merensky Footwall, the Upper Pseudo Reef, the Lower Pseudo
Reef and the Pseudo Reef Harzburgite mineralization. The Mineral Resource and
Reserve estimates mentioned in this Market Release were carried out by SRK
Consulting of Johannesburg ("SRK"), as part of SRK's independent assessment of
the Pilanesberg Project. Information contained in this Market Release is based
on a National Instrument 43-101 (Standards of disclosure for Mineral projects)
("NI" or "National Instrument 43-101") and Canadian Institute of Mining,
Metallurgy and Petroleum (commonly known as the "CIM" standards) compliant
Independent Technical Reports which has been filed on SEDAR and is available
to be downloaded from www.sedar.com, including the October 1, 2007 Independent
Technical Report on the Mphahlele project and the August 7, 2007 Independent
Technical Report on the Pilanesberg project.
FORWARD-LOOKING INFORMATION, FUTURE ORIENTED FINANCIAL INFORMATION AND
Certain statements contained in this market release constitute
forward-looking information, future oriented financial information, and
financial outlooks (collectively "forward-looking information") within the
meaning of Canadian securities laws. Forward-looking information may relate to
this and other matters identified in Platmin's public filings, Platmin's
future outlook and anticipated events or results and, in some cases, can be
identified by terminology such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "intend", "estimate", "predict", "potential",
"continue" or other similar expressions concerning matters that are not
historical facts. Actual results may vary from such forward-looking
information for a variety of reasons, including those set forth below.
Forward-looking statements in this Market Release include among others:
achieving production by the first quarter of 2009, reaching production of
250,000 oz 3PGE + Au per annum at the Pilabesberg or the Mphahlele projects or
a combined production of the two projects of 500,000 oz of PGMs, ,the effect
of engagement of MRC on settling costs of the Mphahlele project by the time of
the receiving granting of the Mining Right over the Mphahlele project,
receiving granting of the Mining Right over the Mphahlele project during
December 2008 or at all, progressing the Mphahlele project to the development
phase without delay on the granting of the Mining Right, receiving sufficient
water for the life of mine of the Mphahlele project or receiving any water at
all, the availability of water from aquifers or being able to access this
water at all or being able to access it at expected costs, commencement of
mining access development through decline development at all or at the time of
granting of a Mining Right for the Mhahlele project, receiving 5 MVA temporary
electrical power supply from Eskom or receiving 55 MVA permanent electrical
power supply from Eskom, for Platmin's Mphahlele project, receiving a budget
quotation from Eskom for the temporary power supply or the permanent power
supply, not being affected by any interrupted power supply from Eskom,
completion of fabrication of the three 20 MVA transformers, connection into
Eskom's grid at all or on time for commissioning of the plant.
Such forward-looking statements are based on a number of material factors
and assumptions, including, that contracted parties provide goods and/or
services on the agreed timeframes, that equipment necessary for construction
and development is available as scheduled and does not incur unforeseen break
downs, that no labor shortages or delays are incurred, that plant and
equipment functions as specified, that no unusual geological or technical
problems occur, and that on-going contractual negotiations will be completely
successful and progressed and/or completed in a timely manner.
There can be no assurance that Platmin's actual results will match the
forward-looking information as a result of a number of risks, including any
unforeseen way power cuts, brown outs or "Load Shedding" or similar events
resulting from any inability of ESKOM to supply Platmin's projects with power
requirements or otherwise normal hazards (geological, technical, and
production) associated with mining operations), adverse currency fluctuations,
and those risks publicly disclosed by Platmin in its filings available at
www.sedar.com. While we consider these assumptions to be reasonable based on
information currently available to us, they may prove to be incorrect.
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 207653 4253; Grant Thornton Corporate Finance (Nomad):
Fiona Owen, +44 207 383 5100; GMP Securities L.P.: Mark Wellings, (416)
367-8600; Haywood Securities: John Willett, (416) 507-2345