Name of the Project
Waterberg platinum group metals project.

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

Project Owner/s
Waterberg Joint Resource 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
Production could possibly 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 has completed a geotechnical drilling campaign at the Waterberg project.

The campaign started in July and comprised 46 boreholes drilled, along a centre line of two sets of twin declines and boxcut positions.

A total 5 966 m of drill core were recovered and about 2 700 m of core were geotechnically lifted from within the zone of interest.

The results of the drilling campaign confirm that the boxcut positions are in sandstone, and the central and southern declines transition from sandstone into a dolerite sill and back into sandstone before cutting into the igneous rocks of the Bushveld Complex.

As expected, the rock mass is competent, but some support will be required for both tunnel sets as expected, PTM has noted.

The company has identified no problem areas that will require special mining methods and groundwater inflow is also not considered a risk.

Meanwhile, PTM reports that a mediation process has been agreed to between the Waterberg JV company and community leaders of the Kgatlu village. This follows litigation launched by individual appellants from local communities on and after March 5 this year, which is premised on community engagement and environmental concerns, after the JV was granted environmental authorisation for the mine in November 2020.

Meetings will be undertaken later this month and in November, which will likely lead to a resolution of concerns and to a more harmonious relationship between the Waterberg JV and the local community.

PTM remains focused on advancing the palladium-dominant Waterberg project to a development and construction decision.

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.