At Waterberg, 15 rigs are drilling on the Waterberg Joint Venture area. Drilling is focused on the 16 km2 up-dip expansion license granted to the Company and announced January 22, 2013. Another updated resource estimate for Waterberg is expected in July of 2013. Assay results for many holes are pending at this time. A US $10.0 million program has been approved for calendar 2013 at Waterberg by the joint venture partners for drilling, geophysics and the completion of a preliminary economic assessment report.
During February and March of 2013 the Company received letters from the DMR advising the Company that prospecting right applications comprising the 665 square kilometres Waterberg Extension area and a further 102 square kilometres within the Waterberg Joint Venture area have been accepted. Formal grant of the prospecting rights is now subject to the completion and filing of appropriate environmental management plans and reports on consultation with interested and affected parties. These requirements are normal course. Upon final approval of these filings, the Company will be able to conduct step-out drilling northerly along the projected strike extension of the known Waterberg deposit area. The Waterberg Extension area, where the Company owns an 87.5% effective interest, is adjacent to the North and East of the joint venture area with JOGMEC.
In late March and early April 2013 the Company conducted a Fugro differential gravity and magnetic airborne survey in the Waterberg Region. Approximately 3,200 line kilometres were flown at 100 metre and 200 metre spacing over and along strike from the known deposit area.
The Company's key business objectives for 2013 and into 2014 will be to continue with the underground development and mine construction at Project 1 and to continue exploration at Waterberg. Closing and draw down of the planned project loan facility is expected to fund the completion and commissioning of Project 1.
The Company will invest from current cash on hand for the ongoing Phase 2 construction. Work to complete final loan documentation and final off-take agreements is in process. Plant and facility construction and commissioning are estimated to take until late 2014 to complete. Full commercial production at steady state is estimated to occur after a two year ramp-up period subsequent to the commissioning of the plant.
About Platinum Group Metals Ltd.
Platinum Group is based in Johannesburg, South Africa and Vancouver, Canada. The Company's main asset is a 74% interest in Project 1 near Rustenburg, South Africa, where a Phase 1 construction budget of US $100 million is nearing completion and Phase 2 construction is in progress. Project 1 has an estimated steady state production of 275,000 ounces per year of platinum group metals. Platinum Group also has active exploration programs and a new platinum deposit discovery, near surface at the Waterberg joint venture in South Africa. Waterberg is in joint venture with the Japan Oil, Gas and Metals National Corporation.
R. Michael Jones, P.Eng., the Company's President, Chief Executive Officer and a significant shareholder of the Company, is a non-independent qualified person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects and is responsible for preparing the technical information contained in this news release.
On behalf of the Board of Platinum Group Metals Ltd.
Frank R. Hallam, CFO and Director
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 closing, drawdown, the satisfaction of certain conditionals precedent and the expected maturity date of the project loan facility, the completion of formal agreements relating to off-take on Project 1, use of net proceeds of the Offering, the completion of an updated resource estimate for Waterberg, the expected grant of exploration permits at Waterberg, commencement and completion of Phase 2 development at Project 1, the timing of first ore production and concentrate sales, and further exploration and development on the Company's properties. In addition, the results of the 2009 UFS may constitute forward-looking statements to the extent that they reflect estimates of mineralization, capital and operating expenses, metal prices and other factors. 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 locate; the Company's ability to obtain any necessary permits, consents or authorizations required for its activities; the Company's ability to successfully complete formal agreements relating to off-take on Project 1; the Company's ability to 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 SEC and Canadian securities regulators, which may be viewed at www.sec.gov and www.sedar.com, respectively.
The Toronto Stock Exchange and the NYSE MKT LLC have not reviewed and do not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Platinum Group Metals Ltd.
R. Michael Jones
(604) 899-5450 or Toll Free: (866) 899-5450
Platinum Group Metals Ltd.
VP, Corporate Development
(604) 899-5450 or Toll Free: (866) 899-5450
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