Name of the Project
Waterberg palladium project.

Location
The Waterberg project is located 85 km north of Mokopane, in Limpopo, South Africa.

Project Owner/s
Platinum Group Metals (PTM) owns 50% of the Waterberg Joint Venture (JV), while Impala Platinum (Implats) owns 15%; Hanwa 9.7%; Japan, Oil, Gas & Metals National Corporation (Jogmec) 12%; and Mnombo Wethu Consultants the balance.

These JV partners executed a formal amended purchase and development option agreement with Implats in April 2020, which entails Implats’ funding 100% of an implementation budget and work programme, valued at about R55-million.

Implats still has a few months to decide whether it wants to increase its shareholding in the project to 50.01% and contribute $165-million to the project’s development, including work programme spend. Implats is expected to make a construction decision during the third quarter of this year.

Under the purchase and development option, Implats may elect to increase its stake in the Waterberg JV from 15% to 50.01% by buying an additional 12.195% equity interest from Jogmec for $34.8-million and earning a further 22.8% interest by making a firm commitment to an expenditure of $130-million in development work.

Implats made a strategic investment of $30-million in November 2017 to buy a 15% stake in the project.

Project Description
The definitive feasibility study mine plan envisages production of 4.8-million tonnes of ore a year and 420 000 platinum, palladium rhodium and gold, or 4E, ounces a year in concentrate. The mine will initially access the orebody using two sets of twin decline tunnels, with fully mechanised longhole stoping methods and paste backfill used for mining. Paste backfill allows for a high mining extraction ratio, as mining can be completed next to backfilled stopes without leaving internal pillars.

Maintaining safety and reliability are key mine design criteria. As a result of the scale of the orebody, bulk mining on 20 m to 40 m sublevels using large underground equipment and conveyors for ore and waste transport, will provide high efficiency.

Potential Job Creation
The project will create about 1 100 new highly skilled jobs.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $982-million and an internal rate of return of 20.7%.

Capital Expenditure
Capital expenditure is estimated at $874-million, including $87-million in contingencies. Peak project funding is estimated at $617-million.

Planned Start/End Date
PTM reported in May 2020 that it was possible for production to start in the first quarter of 2024, following decline establishment in the first quarter of 2021. Steady-state production of 420 000 oz/y could be achieved from 2027.

Latest Developments
The Department of Mineral Resources and Energy (DMRE) has granted a mining right for the Waterberg project.

The Waterberg mining right has been granted in terms of Section 23(1) of the Mineral and Petroleum Resources Development Act and has been issued for an initial 30 years. It may be renewed for further periods, each of which may not exceed 30 years at a time.

Mining will be subject to the environmental authorisation granted on November 10, 2020, water-use licences and compliance with other legislation on an ongoing basis.

PTM president and CEO Michael Jones has said that the mining right provides the company with the opportunity to advance to the next steps in mine financing, construction and development.

Key Contracts, Suppliers and Consultants
Stantec Consulting International and DRA Projects SA (DFS).

Contact Details for Project Information
PTM, tel +27 11782 2186 or email info@platinumgroupmetals.net.