ENP Newswire -
Release date- 11072014 -
At Project 1 the Company's owners' team oversees engineering, procurement, construction and management firm
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.
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
Peak Funding of
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
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).
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.
The new mandate letter eliminates the involvement of
Results for the Period
The Company's cash position at
Non-cash items include a write down of
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
Stockpiling of early development reef tonnes is underway. Crusher, mill, ore silo and flotation circuit foundations are substantially complete and erection of structural steel has now commenced. Mill components have been ordered and are being fabricated with a number of items now complete. The primary mill shell ends and trunions are on site as are most floatation and rougher circuit tanks.
Construction of the water pipeline from the mill to a nearby main supply line is in progress. A 10MVA electrical supply was completed and energized in
Capital costs have been in line with the cost budget estimate and first concentrate production is targeted for calendar fourth quarter of 2015, in line with previous guidance. Underground development delays or delays in the delivery of key components or services could result in delays to the first concentrate production or ramp up.
The current strike has not impacted the project schedule at this time. If prolonged the strike may cause work on Project 1 to be delayed or potentially stopped for lack of supplies, equipment and consumables.
Africa Wide disagrees with the dilution calculation and the matter has been sent to binding arbitration for determination according to the terms of the Maseve Shareholders' Agreement. Arbitration hearings and proceedings were completed in
The Company's key business objectives and milestones for the next twelve months are:
to build the
to close a planned US
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.
As a result of the resource scale and thickness of the Waterberg deposit, the Waterberg Joint Venture and the Waterberg Extension are of increasing importance to the Company's business.
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
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