Precious Metals


The definitive feasibility study for the company’s Waterberg project is progressing, with 38,000 meters of infill drilling recently completed on time and on budget.

The definitive feasibility study (DFS) for Platinum Group Metals’ (TSX:PTM) Waterberg joint venture project is due for completion in Q1 2019, the company announced on Tuesday (May 29).

Located in South Africa’s Bushveld Complex, the asset currently holds platinum-group metals probable reserves of approximately 12.3 million ounces.

According to the company, the DFS is being completed by Waterberg Joint-Venture Resources, with Platinum Group Metals serving as the operator. Impala Platinum Holdings (JSE:IMP) and Japan Oil, Gas and Metals (JOGMEC) are also contributing input.

As part of the latest phase of the DFS, 38,000 meters of infill drilling were completed on time and on budget. In total, 346,000 meters of drill testing have been completed at the project.

“We have successfully completed the infill drill program and we are working very closely with all our partners, stakeholders and engineers to maximize the value of this extraordinary deposit — all at a time when the interest in palladium, the project’s primary metal, is increasing,” said CEO R. Michael Jones.

Assay results are still being received, but the company notes that intersections include 40 to 100 meters of vertical thickness with palladium, platinum, gold and rhodium mineralization.

Platinum Group Metals plans to publish an updated resource model and technical report for Waterberg in Q3, and it will include results from the most recent drilling. This new resource model will form the basis for mine planning and reserve estimation in the DFS.

As mentioned, Waterberg’s platinum-group metals probable reserves stand at 12.3 million ounces. In total, 61 percent of that is palladium, with 30 percent platinum, 8 percent gold and 1 percent rhodium rounding out the remainder.

At a cut off of 2.5 g/t, probable reserves at the property are comprised of 102.7 million tonnes at 3.73 g/t, consisting of 2.29 g/t palladium, 1.11 g/t platinum, 0.29 g/t gold, 0.04 g/t rhodium, 0.08 percent copper and 0.15 percent nickel.

“Much of the Waterberg project area still remains to be drilled and assessed. The Waterberg deposit remains open down dip and along strike. The reserves are a subset of a larger indicated resource,” says Platinum Group Metals.

The company currently has a 50.02-percent stake in Waterberg, with Impala Platinum owning 15 percent and Mnombo Wethu Consultants securing 26 percent.

As for JOGMEC, it holds a 21.95-percent interest in the project, but plans to transfer a 9.755-percent interest to its partner Hanwa Hosken Consolidated Investments (JSE:HCI), a South African black empowerment investment holding company that recently bought a 14.11-percent stake in Platinum Group Metals.

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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.



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