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 Joint Resource is a 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
PTM says it has received notice that a group from the Kgatlu community has filed an application for an order in the High Court of South Africa to review and set aside the decision by the Department of Forestry, Fisheries and the Environment (DFFE) to dismiss an application for condonation for the late filing of an appeal by the group against the environmental authorisation, which was granted for the mine in November 2020.

The group has also requested that cause be shown as to why the environmental authorisation granted by the DFFE and the Department of Mineral Resources and Energy (DMRE) should not be set aside and referred back to the departments for further consideration.

The grant of an environmental authorisation was a prerequisite to the granting of a mining right.

PTM believes that all requirements specified under the National Environmental Management Act, the Mineral and Petroleum Resources Development Act, and other applicable legislation have been complied with and that the DFFE correctly approved, and the DMRE correctly issued, the environmental authorisation.

As an interested and affected party, and as a named respondent to the filed court action, Waterberg JV Resources is, accordingly, opposing the application to the High Court.

PTM intends to continue consultations with the DMRE and recognised local authorities and community representatives on the plans for the Waterberg site.

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.