JOHANNESBURG (miningweekly.com) - Junior miner Eastern Platinum (Eastplats) has restarted the Crocette mine development at its Crocodile River Mine (CRM) in South Africa, after platinum group-metal (PGM) prices improved, CEO Ian Rozier said on Tuesday.

The TSX-, Aim- and JSE-listed company suspended the mine development in 2008, in response to adverse market conditions, and while it took measures to increase production from its Zandfontein and Maroelabult sections, at CRM.

However, Rozier said that the Crocette project now offered "attractive economics" as a result of the recent increases in PGM prices, combined with a reductions in operating costs achieved at CRM.

Eastplats announcement comes as platinum surged to a 17-month high, with pundits expecting the metal to have a strong year on the back of demand from the automotive sector, which uses the metal in catalytic converters.

At full production, the Crocette section is anticipated deliver 40 000 t/m of ore, which translates into 50 000 oz/y. This would enable CRM to reach its full production target of 200 000 oz/y.

"The restart of Crocette marks another era of expansion for CRM and Eastplats' operations and reflects our confidence in the PGM markets and in our ability to operate profitably at current metal prices and at current exchange rates," Rozier said in a statement.

Eastplats stated that Crocette is one of the few remaining undeveloped near-surface PGM projects on the western limb of the Bushveld Complex that has immediate access to a processing facility.

Infill drilling has confirmed the continuity of the upper ground two at Crocette to a depth of 600 m with a dip of 18, a reef width of 1,2 m and an estimated head grade of 4,1 g/t.

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