JOHANNESBURG (miningweekly.com) – Dual-listed Platinum Group Metals (PTM) has suspended active mining at its Maseve mine, in the North West province, as it transitions the operation to a more hybrid mining method with a smaller labour force.
Over the next few weeks, PTM will be focused on restructuring the mine’s contractor activity and labour and undertaking equipment and mobile machinery maintenance and underground infrastructure improvements.
Earlier this month, the company had announced a proposed change in the primary mining method, moving away from the current higher-volume, mechanised bord and pillar mining method to a process involving mechanised access drives using the mine's current equipment, as well as conventional manual methods for stoping.
The bord and pillar mechanised mining method was not achieving the required efficiencies in some areas of the Maseve mine, specifically Block 11.
“Although produced tonnes have been increasing, grade control was not being achieved. Based on extensive sampling, face grades were determined to have generally met estimates, but the fully mechanised bord and pillar mining method had resulted in excess dilution and, therefore, lower-than-planned grades delivered to the plant,” PTM explained.
The successful transition of Maseve will be key to achieving positive cash flow and reducing ongoing costs, leveraging the established infrastructure currently in place.
“The contribution of mined tonnage from Block 11 is a critical factor to achieving positive cash flow at the Maseve mine. The overall geological confidence in this block has not changed,” PTM assured.
In the near term, PTM’s liquidity will be constrained as the development continues to use a majority of the company's cash on hand until positive cash flow is achieved.
Mining is expected to resume in the next few weeks.
“Negotiations and consultation have been going well. A significant number of the mine workforce will be affected by the restructuring. Final numbers will be determined in the next few weeks,” PTM said in a statement.
As the company develops and implements the new hybrid mining production ramp-up plan, it will assess its forward production guidance.
“The earlier production guidance provided by the company is no longer valid and should not be relied upon,” PTM noted.
FINANCIAL PERFORMANCE
For the nine months ended May 31, PTM widened its net loss to $287-million, from the net loss of $1.6-million in the comparative period last year.
During the nine-month period under review, the company posted a $280-million impairment – $225-million in the three months to May – of the Maseve mine, mostly owing to missed production targets and the transition to a more gradual production rate from the hybrid mining method.