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
Waterberg is a joint venture (JV) between Platinum Group Metals, or PTM (37.05%), Impala Platinum Holdings (Implats) (15%), Japan Oil, Gas and Metals National Corporation (12.95%), Hanwa Co (9.75%) and black economic-empowerment partner Mnombo Wethu Consultants (26%). As a result of PTM's 49.90% ownership in Mnombo the Company has an effective interest in the Waterberg JV of 50.02%.

Project Description
The definitive feasibility study (DFS) 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
A group of four individual appellants intends to appeal a decision granting PTM a mining right for the Waterberg project.

The Department of Mineral Resources and Energy (DMRE) granted the mining right on February 3.

PTM has noted in a statement that all requirements specified under the Mineral and Petroleum Resources Development Act were met.

It has added that it completed well-documented, extensive and meaningful consultations with recognised representatives in local communities, the DMRE and government.

“Our definitive feasibility study, announced in September 2019, combined with a positive outlook for palladium, highlights that the local Waterberg communities and the broader Limpopo region, in particular, would benefit from the planned investment,” PTM has pointed out.

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.