ENP Newswire -
Release date- 13062014 -
Total inferred resources in the 'T' and 'F' layers are estimated at 287 million tonnes grading 3.15 g/t 4E. Included in the mineral resource estimate at Waterberg is the initial inferred resource estimate on the Waterberg Extension property of 6.8 million ounces (68.04 million tonnes grading 3.11 g/t 4E. The deposit has demonstrated good continuity and remains open along strike and at depth. Drilling is planned several kilometers north of the current estimate.
The Waterberg deposit consists of discrete, layered and continuous PGM bearing layers starting at 140 metres from surface with a consistent westerly dip. The deposit has so far been drilled for approximately 10.4 kilometres northwards on strike. Geophysical surveys and drilling to date indicate the deposit remains open down dip and on strike to the northwest. The observed deposit layers are 2.75 to 60 metres thick and have well identified and modeled rock unit and geochemical markers. Drilling with 20 rigs continues at this time.
The Waterberg deposit stands apart from conventional Merensky Reef and UG2 Bushveld deposits as a result of its size, thickness, proximity to surface and the opportunity to add even further scale at shallow depths. The deposit is amenable to safe, efficient, large scale mechanized underground mining methods.
The expanded mineral resources are in the same position and are of a similar type and grade to those that were the basis for mining methods and metallurgical recoveries in a Preliminary Economic Assessment 'PEA', by Independent Engineering firm
The PEA on the Waterberg Joint Venture deposit, based on the earlier, smaller 3E (platinum, palladium and gold) mineral resource announced
The estimated cost of production, inclusive of base metal credits, is
The PEA was based on a fully mechanized mine plan with metallurgical recoveries from test work and it assumes that the Waterberg concentrate will be processed in a conventional, South African, PGM smelter. The Waterberg mine plan is for steady state production of 655,000 ounces 3E per year. The extended mineral resource announced today was not considered in the PEA.
Included in today's Inferred Mineral Resource is 219 million tonnes, grading 3.17 g/t 4E, which has increased from 167 million tonnes, announced in September, 2013, on the 49.9% controlled Waterberg Joint Venture. The updated mineral resource estimate encompasses both the Joint Venture and the Extension areas to a depth of 1,250 metres.
This is in line with other development stage PGM assets on the Northern Limb. The change in applicable cut-off depth for the deposit is the result of the very positive economics demonstrated in the PEA. Metal Prices for platinum, palladium and nickel have all moved higher than spot prices were at the time of the PEA, further indicating the robust potential.
Discussions are also underway with JOGMEC regarding possible synergies from an engineering perspective, if the Pre-feasibility now underway for the Waterberg Joint Venture, were to consider the total Inferred Mineral Resource. JOGMEC currently holds an interest only in the Waterberg Joint Venture. The deepest Waterberg Extension deposit extends to the west onto territory held by the Waterberg Joint Venture.
The Inferred Mineral Resource was estimated using 138 bore holes with a total of 363 pierce points including deflections. The resource estimate was undertaken by Coffey and a number of iterations were performed to confirm the validity of the estimate. The resource estimation was completed using an Inverse Distance Weighted to the Power 2 methodology and examined at various cut-off grades.
The previously merged
The estimate for the T Layer was based on cuts identified from examination of the borehole core. The cut selection was based on a combination of the stratigraphic position, a minimum thickness of 2 metres and the level of consistency between mother hole intersections and deflections.
The estimation was restricted based on the tenement, geological interpretation of the extent of the T Layer and a maximum depth of 1,250 metres below surface. A geological loss of 12.5% was applied based on the geological understanding of the deposit which is informed by the regular drilling grid of 250mx250m.
A geological model was developed in conjunction with PTM, based on the identified pulses or units for the
The estimation was restricted based on the tenement, geological interpretation of the extent of the
This press release contains forward-looking information within the meaning of Canadian securities laws and forward-looking statements within the meaning of U.S. securities laws ('forward-looking statements'). Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, plans, postulate and similar expressions, or are those, which, by their nature, refer to future events. All statements that are not statements of historical fact are forward-looking statements.
Forward-looking statements in this press release include, without limitation, statements regarding the completion of the
Although the Company believes the forward-looking statements in this press release are reasonable, it can give no assurance that the expectations and assumptions in such statements will prove to be correct.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in market conditions; the nature, quality and quantity of any mineral deposits that may be located; metal prices; other prices and costs; currency exchange rates; the Company's ability to obtain any necessary permits, consents or authorizations required for its activities; the Company's ability to access further funding and produce minerals from its properties successfully or profitably, to continue its projected growth, or to be fully able to implement its business strategies and other risk factors described in the Company's Form 40-F annual report, annual information form and other filings with the
Tel: (604) 899-5450
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Tel: (604) 899-5450
Toll Free: (866) 899-5450
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