TSX- and NYSE-listed Platinum Group Metals (PTM) says the Waterberg joint venture (JV) it has with Impala Platinum holdings and other partners has approved an in-principle R380-million, or $21-million, pre-construction work programme.
The programme involves early infrastructure, de-risking and project optimisation, including initial road access, water supply, a first phase accommodation lodge, site construction power supply and advancement of the Waterberg social and labour plan.
An initial budget of R45-million, or $2.5-million, has been approved by the partners and will be spent by March 31, 2023.
PTM CEO Frank Hallam says the early works programme will significantly de-risk the future construction of the Waterberg palladium project, which is located in South Africa’s Limpopo province.
While the works programme is executed, PTM continues to seek a third-party concentrate offtake agreement for the Waterberg JV, and, depending on its outcome, PTM will assess the potential of establishing a new smelter and base metal refinery business, jointly with third-party investors, to further process the concentrate produced by the mine.
Meanwhile, PTM also plans to undertaken an update to the 2019 Waterberg definitive feasibility study (DFS), including a review of cut-off grades, mining methods, infrastructure plans, scheduling, concentrate offtake, dry stack tailings, costing and other potential revisions to the project’s financial model.
As a precursor to the DFS update, PTM plans to undertake an infill drilling programme near surface, which will cost about R23-million, or $1.2-million. The programme will comprise 32 boreholes and the material recovered will predominately be assayed, as well as tested for its ability to be dry-stacked.
Should it be possible to implement dry-stacked tailings, PTM says the mine’s water consumption can be reduced by between 40% and 50%.
Other partners of the JV are Japan Oil, Gas and Metals National Corporation, Hanwa, and Mnombo Wethu Consultants.