Platinum Group Metals Provides Update on Waterberg Mine

Platinum Group Metals (TSX:PTM) provided an update on its 82.9 percent owned Waterberg joint venture Project 1 platinum mine in South Africa. The mine is roughly 90 percent complete and is on track for production in 2015.
As quoted in the press release:

Cold commissioning of processing plant equipment is planned for August 2015 with initial concentrate production on track, as planned in the calendar 4^th Quarter of 2015.
The Mineral Resources and Mineral Reserves for Project 1 have been updated to account for the planned increased use of mechanized mining methods where the deposit is estimated to be thicker and accessible from nearby completed underground development. The updated Mineral Reserves have been calculated using current three year trailing metal prices and current cost estimates, updated detailed surface and underground drilling results and a revised mine plan.
Production guidance for fiscal 2016 is 116,000 ounces platinum, palladium, rhodium and gold (“4E”) (100% Project basis) and 185,000 ounces 4E in fiscal 2017 in concentrate. Steady State has been estimated to be 250,000 ounces 4E per year.
Exclusive of smelter discount, on site costs are estimated to be US$526 (12R/US$) per 4E ounce for the life of mine on the Merensky Reef including copper, nickel and other minor elements as a credit and US$774 per 4E ounce on the UG2 (12R/US$). The planned increased use of mechanized mining methods in areas near current development, and a slightly weaker Rand has resulted in similar cost guidance to earlier estimates despite increased labour and other cost escalation in Rand terms.

Platinum Group Metals CEO, R. Michael Jones, said:

We have done well at 90% completion on the project construction utilizing a well-known plant design and our proven team. We are operationally ready with our experienced owner’s team. We have updated our mine plan for current underground development and updated mineral resources and mineral reserves. Underground trackless mechanized development is planned to be used for more of the mining as compared to our original design, thereby improving ramp up and flexibility.

Click here to read the full Platinum Group Metals (TSX:PTM) press release.