JOHANNESBURG (miningweekly.com) – Platinum Group Metals (PTM) is advancing its Waterberg platinum and palladium project to feasibility stage (FS) along with partner Japan Oil, Gas and Metals National Corporation (Jogmec).
The FS is currently out to tender with several well-known specialist engineering firms. Under a current commitment, Jogmec, which holds 28.35% in the project, will fund $5.3-million towards the completion of the FS.
PTM CEO R Michael Jones noted that a prefeasibility study (PFS) has already modelled the Waterberg project in a strong, globally competitive position as one of the very few large-scale, primary palladium mines at a time when the market for palladium is very strong.
The PFS last year modelled a 744 000 oz/y platinum, palladium, gold and rhodium (4E) mine with an 18-year life. On a 100% project basis, using a 2.5 g/t cut-off grade, the PFS estimated probable reserves of some 12.32-million ounces of platinum, palladium, rhodium and gold (4E) at Waterberg.
The deposit's shallow depth, good grade and fully mechanised mining approach, places the project in the lowest quartile of the South African 4E industry cost curve. The project reserves comprise 61.4% palladium and the PFS estimated that Waterberg could produce 472 000 oz/y of palladium.
Drilling targeted at the conversion of indicated resources into measured resources will restart this month, with geotechnical drilling for assessing the locations for foundations and mine excavations also being planned along with further metallurgical drilling to refine recovery curves and plant designs.
Detailed mine planning and scheduling will be completed using a new resource model following the fill-in drilling described above.