At Waterberg the Company is drilling with a total of 20 drill rigs and engineering is in progress for a Pre-Feasibility Study on the Waterberg Joint Venture. Seven drill rigs are located on the Waterberg Joint Venture completing in-fill drilling with the objective of converting inferred resources to the indicated category. Results to date have been consistent with the deposit model. Thirteen drill rigs are working on the Waterberg Extension permits with the objectives of in-filling and expanding this portion of the deposit. Recent Highlights -- On
June 12, 2014the Company announced an increase to the inferred mineral resource estimate for the Waterberg Joint Venture and an initial inferred mineral resource estimate for the adjacent Waterberg Extension totaling an aggregate 29 million ounces of platinum, palladium, rhodium and gold. Total inferred resources in the "T" and "F" layers are estimated at 287 million tonnes grading 3.15 g/t 4E (0.94g/t Pt, 1.92 g/t Pd, 0.04 g/t Rh, 0.25 g/t Au, 30%, 61%, 1%, 8% respectively). -- On March 4, 2014the Company announced drilling results for the Waterberg Extension, confirming the continuation of the Waterberg deposit northward on strike for approximately 4.7 km from the known 5.4 km long deposit on the Waterberg Joint Venture. Hole WE-022 intercepted 56.02 metres assaying 3.18 g/t 3E (0.87 g/t Pt, 2.13 g/t Pd, 0.18 g/t including 22.00 metres assaying 4.11 g/t 3E (1.16 g/t Pt, 2.72 g/t Pd and 0.23 g/t Au)). -- On February 14, 2014the Company announced a positive independent Preliminary Economic Assessment ("PEA") for the Waterberg Joint Venture. The PEA recommends the project advance to the pre-feasibility stage of development. Details of the PEA include: -- Steady state production of 655,000 ounces of platinum, palladium and gold, "3E"; -- A two year construction period planned in 2016 to 2018; -- A Project post-tax NPV (7.5% discount rate) of 5.1 billion Randor US$509 million(10R/US$); -- Peak Funding of 8.85 billion Randor US$ 885 million(10R/US$); -- Major risks to be assessed at pre-feasibility including smelting plans, water and power delivery and geotechnical work for mine design along with normal increased resource, metallurgical and cost confidence levels; and -- Opportunities include significant resource expansion, optimization of mine plans, mine ramp up profiles, increased metallurgical recoveries and smelter terms and consideration of adjacent deposit exploration See details and the risks and cautions to investors in the press release of February 14, 2013. The economic analysis is based on inferred resources and is preliminary in nature. Inferred resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized. The estimates in this preliminary assessment are estimated at +/-30% accuracy on an engineering basis. The complete PEA technical report on the Waterberg Joint Venture property is filed on SEDAR (www.sedar.com).
The PEA was completed by international and South African engineering firm WorleyParsons. An NI 43-101 Technical Report entitled "Waterberg Mineral Project Preliminary Economic Assessment" dated effective
December 31, 2013the Company closed a bought deal financing for 148.5 million common shares of the Company at a price of $1.18per share resulting in gross proceeds of $175.23 million. The offering closed December 31, 2013with net proceeds to the Company after fees, commissions and costs of approximately $165 million. -- On December 9, 2013, the Company announced that Hole WE 08 on the Waterberg Extension returned assay values of 5.26 grams/tonne "3E" platinum, palladium and gold (1.40g/t Pt, 3.59 g/t Pd and 0.27 g/t Au) over 53.22 metres (estimated true thickness of approximately 44 metres). Hole WE 08 is located approximately 340 metres northward along strike from previously announced hole WE 02 (15.63 metres grading 3.16 g/t 3E, 1.11 Pt g/t, 1.92 g/t Pd, 0.13 g/t Au) and approximately 1,600 metres directly along strike from the Waterberg Joint Venture deposit. -- On November 11, 2013, the Company announced a new mandate letter with Barclays Bank PLC, Absa Corporate and Investment Bank, a division of Absa Bank Limited, Caterpillar Financial SARL and Societe Generale Corporate & Investment Banking who have agreed to use commercially reasonable efforts to arrange a new project loan facility for up to US $195 millionto continue development of the Project 1 platinum mine. The new mandate letter eliminates the involvement of Africa Wide Mineral Prospecting and Exploration (Pty) Limited("Africa Wide"), a 100% subsidiary of Johannesburg Stock Exchangelisted Wesizwe Platinum Limited and will build upon previous technical and legal due diligence, and is subject to the finalization of a facility agreement, among other conditions.
Results For The Period
The Company's cash position at
Accounts receivable at
Total expenditures by the Company for development and purchases of property and equipment for Project 1 during the period totaled approximately
To date approximately 4.49 million man hours of construction work have been completed at the Project 1 platinum mine and approximately
The Company's key business objectives and milestones for the next twelve months are:
-- to build the
WBJV Project1 platinum mine safely and in accordance with the planned schedule and budget; -- to close a planned US $195 millionnew project loan facility or an alternate financing for Project 1 by the end of 2014 in order to secure all funding required for the completion of Project 1, including mill, underground development and the establishment of sustained operations; -- the completion of a pre-feasibility study on the initial Waterberg Joint Venture deposit during calendar in early 2015; and -- to continue exploration and definition drilling on the Waterberg Joint Venture and Waterberg Extension with eight or more drill rigs during 2014.
(1) The Company holds cash in Canadian dollars,
On behalf of the Board of
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 New Project Loan Facility, the Company's ability to secure alternative financing, the Company's plans with respect to future exploration, development and production on the Company's projects including mine construction at Project 1, the dilution of Africa Wide's interest in Maseve and the ability of the Company to sell such diluted interest to another bona fide black economic empowerment partner. 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
Cautionary Note to U.S. Investors Regarding Estimates of Inferred Mineral Resources
This press release uses the terms "inferred mineral resources." We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the
FOR FURTHER INFORMATION PLEASE CONTACT:
Platinum Group Metals Ltd. R. Michael JonesPresident Platinum Group Metals Ltd. Kris BegicVP, Corporate Development (604) 899-5450 / Toll Free: (866) 899-5450 www.platinumgroupmetals.net Source: Platinum Group Metals Ltd.