TORONTO (miningweekly.com) – Platinum Group Metals (PTM) has confirmed the extension of the F zone, 1.9 km north of the known Waterberg deposit, in South Africa’s Bushveld Igneous Complex.

Hole WE 046 D1 on the Waterberg Extension property had returned assays of 6.03 g/t platinum, palladium and gold (3E) over 4.52 m – 4.15 g/t of palladium, 1.46 g/t of platinum and 0.42 g/t of gold –  from depths of 1 484.48 m to 1 489 m.

The Vancouver-based firm pointed out that the step-out intercept was extremely significant because it established the open potential along strike on the Waterberg Extension property, where PTM held an effective 87% interest.

If a broader zone was considered in this intercept, the average grade was 3.13 g/t 3E over 11.35 m – 0.78 g/t of platinum, 2.13 g/t of palladium and 0.22 g/t of gold. The true thickness of the 3.13 g/t 3E intercept was estimated at 8.94 m and the true thickness of the 6.03 g/t 3E intercept was estimated at 3.56 m.

PTM stated that at a thickness of greater than 3 m, the target deposit was modelled using an efficient, fully mechanised mining approach.

The F zone could be drilled up-dip and eastward from this position for over 1 km towards the shallow edge of the zone estimated to be about 250 m to 300 m from surface in this area. The extent of the F zone in the area of WE-046 now remained open in all directions.

Waterberg III represented the target area for about 5 km north of the current deposit model, consisting of about 9 km of strike length named Waterberg I and Waterberg II. This intercept confirmed the extension of the Waterberg deposit at a grade thickness greater than that found in typical platinum mines in South Africa. Geophysical modelling confirmed a clear extension target for 5 km at Waterberg III and further north.

PTM noted that rhodium, copper and nickel determinations were still pending. The previously reported mother hole WE-046 D0 had confirmed the F zone with low values. As a result of the coarse nature of the copper and nickel sulphide minerals associated with the deposit, local variations occurred within the well-layered sequence. All intercepts were considered in deposit modelling.

The 2014 drilling programme at the Waterberg Joint Venture and the Waterberg Extension was completed on time and within budget. Further assays were in progress with a resource update planned for early 2015.

PTM’s TSX-listed stock rose 7.69% on Friday to C$0.70 apiece.