Eastern Platinum (“Eastplats” or the “Company”) is pleased to report that an independent technical report (“ITR”), including chrome mineral reserve estimate and economic assessment, by Sound Mining (Pty) (“Sound Mining”) on the Barplats Zandfontein UG2 tailing storage facility (“TSF”) located at Crocodile River Mine has been completed and is effective September 1, 2017.
- Previously announced mineral resource estimate of 13,680,000 tons at an average grade of 20.72% chromium oxide (see August 11, 2017 news release);
- Mineral reserve estimate of 6,420,000 tons, containing 1,440,000 tons of chromium oxide at an average grade of 22.36%;
- Estimated after-tax net present value of ZAR 42.2 million (US$3.25 million) using 13% discount rate;
- Estimated operating costs of ZAR 71.26/(RoM) (US$5.49) per ton processed;
- Estimated after-tax internal rate of return of 24% with a 33 month mine life;
- Estimated capital costs for the project of ZAR 219 million (US$16.87 million); and
- Recommendation to prepare platinum group minerals (“PGM”) feasibility study.
Diana Hu, CEO commented:
“Eastplats is pleased with Sound Mining’s confirmation of the mineral reserves and project economics, which can enable near term revenue opportunities for the Company. The recommendation to further investigate the PGM opportunities provides additional upside for this project creating greater opportunities for Eastplats and its stakeholders.”