JOHANNESBURG (miningweekly.com) – ASX-listed Platinum Australia on Monday reported that it produced 222 oz more of 4E platinum-group metals (PGMs), comprising platinum, rhodium, palladium and gold, despite losing about 20% of the available underground production days available to it because of industrial action.

In its quarterly report, Platinum Australia said it had produced 9 021 oz of 4E PGMs at its Smokey Hills mine, on the southern limb of the Bushveld Complex, from a total run-of-mine of 99 586 t.

The company said its mining contractor, JIC Mining Services, managed to rebuild its staff at the mine, resulting in improved production, while plant recoveries improved to 79.33%, up from 75.85%.

“While the production figures were disappointing, a marginal increase in production was achieved despite the loss of 20% of the total underground production days during the quarter due to a Department of Minerals suspension, as well as through a road blockage by nearby communities and an industry wide National Union of Mineworkers ‘Action Day’ stoppage,” the company said in a statement.

Further, cash costs per ton increased by R139 to R957/t, as the head grade of 4E recovered per ton run-of-mine decreased to 3.57 g/t. The operation also experienced a lost-time injury, pushing the company’s lost-time incident frequency rate to 4.92, based one-million hours worked on a 12 month average.

Meanwhile, Platinum Australia provided investors with a progress update of work being undertaken at its latest projects.

The miner said it was finalising arrangements for the mining of a bulk sample from the existing trail pit at its Kalahari Platinum project, to be run through a pilot plant. It is anticipated that this work will be completed in the first quarter of next year.

The company also said that the definitive feasibility study for its Rooderand project was delayed to the March quarter, owing to a delay in the updated resource estimate at its Rooderand operation as a result of increased turnaround times for assay results.

Further, the company said work on the review of the Panton project had been completed and it anticipated that a report would be issued in the December quarter.

Meanwhile, Platinum Australia completed a placement of 24.7-million ordinary shares, representing 6.3% of its issued capital, to raise about A$5-million. Proceeds from the raising would be used for the development and operational capital for the Smokey Hills project, funding continuing exploration and development expenditures on the Kalahari Platinum and Rooderand projects, for the refinancing of its bridging facility with Macquarie Bank to reduce company debt levels and for general working capital purposes.
 

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