Platinum Group Metals (TSX:PTM)(NYSE MKT:PLG) (“Platinum Group Metals” or the “Company”) and joint venture partner Japan Oil, Gas and Metals National Corporation (“JOGMEC”) have selected SFA Oxford (“SFA”) to assess potential offtake options and commercial terms for the Waterberg PGM Project. SFA is an internationally recognized consultancy focused on the PGM metals and markets.
Platinum Group Metals holds a direct and indirect 58.65% interest of the Waterberg Project. JOGMEC holds a direct 28.35% interest with the balance owned by a South African empowerment partner. An Independent Pre-Feasibility Study (“PFS”) announced by the Company on October 19, 2016 for the Waterberg Project modelled a 744,000 ounce per year platinum, palladium, gold and rhodium (“PGM” or “4E”) mine with an 18-year life.
On a 100% project basis, using a 2.5 gram per tonne (“g/t”) cut-off grade, the PFS estimated 12.32 million 4E ounces of probable reserves at Waterberg (102.7 million tonnes at 3.73 4E g/t, consisting of 1.11 g/t Pt, 2.29 g/t Pd, 0.29 g/t Au and 0.04 g/t Rh).
The PFS assumed the Waterberg Project would produce a flotation concentrate from a processing plant to be sold or toll treated into the local South African market.
R. Michael Jones, CEO of Platinum Group Metals, said:
“We look forward to working with the team at SFA to further delineate the unique value opportunities for the Waterberg Project. The anticipated scale of production at Waterberg will play a significant role in meeting demand for PGM metals going forward, particularly palladium. Given the abundance of smelter capacity in South Africa and the unique nature of Waterberg concentrate our work with SFA will assist in maximizing value.”