A 2018 drilling programme at TSX-listed Platinum Group Metals’ (PTM’s) 50.02%-owned Waterberg project, in South Africa, has increased confidence in the estimated mineral resources for the project, with 6.2-million platinum, palladium, rhodium and gold (4E) ounces now recognised in the higher-confidence measured category.

Categories on the palladium dominant deposit have increased by just over 1.4-million 4E ounces to 26.3-million 4E ounces.

Inferred mineral resources are estimated at about seven-million 4E ounces.

The new mineral resource estimates are being used for detailed mine planning in an ongoing definitive feasibility study (DFS), which is considering two large-scale underground bulk mining and milling options of about 600 000 t a month.

A more modest, but still large, first phase is planned to be between 250 000 t and 350 000 t a month.

“Waterberg is characterised by thick, near-surface mineralised zones, which are potentially amenable to low-cost, safe, bulk mechanised mining methods,” PTM CEO and co-founder Michael Jones commented.

The deposit remains open at depth and to the northwest on strike, he added.

“The rare palladium dominance of the deposit is well suited to current and projected demand trends for the catalytic converter needs of the global auto market.”

PTM holds a 50.02% effective interest in the Waterberg joint venture (JV), with Japan, Oil, Gas and Metals National Corporation holding a 21.95% interest, Impala Platinum holding a 15% interest and empowerment partner Mnombo Wethu Consultants holding the balance of the JV.

The Waterberg JV has applied for a mining right and detailed consultation with communities, local municipalities, the Limpopo Provincial government and South African national authorities are ongoing.

The application for a mining right has been accepted by the South African Department of Mineral Resources.

The JV partners target the completion of the DFS at the end of March 2019.