JOHANNESBURG (miningweekly.com) – JSE-listed Village Main Reef has completed a prefeasibility study (PFS) of its majority owned Lesego platinum project, near Burgersfort in Limpopo.

The company said in a statement on Tuesday that it would now move forward with a definitive feasibility study (DFS) based on the positive results of the PFS.

The DFS phase will include an updated resource from 700 m to 350 m below the surface and increase the indicated and measured resources of the project.

The PFS, which was undertaken in consultation with independent consultants DRA, found that the extraction of the high-grade Merensky and Upper Group 2 is economically viable at shallower depths from between 700 m and 2 300 m below the surface.

Meanwhile, as the PFS had met all the criteria set by the Industrial Development Corporation, Village Main would issue a drawdown notice to the financer of R54-million, which will fully fund the proposed DFS.

IDC now holds a 23% stake in the Lesego project after investing R150-million over three payments.

Village Main expected that the DFS would be completed during the fourth quarter of 2012. The development and construction of the mine was expected to start in 2014, while ramp up to full production would occur over the following five years.

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