Sibanye-Stillwater CEO Neal Froneman
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Precious-metals mining company Sibanye-Stillwater has completed a Competent Person’s Report on its platinum group metals (PGM) mineral assets, in Montana, in the United States.
The report has been compiled under the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (Samrec) and the 2016 edition of the South African Code for the Reporting of Mineral Asset Valuation (Samval).
A PGM mineral resource of 80.8-million two-element (2E) ounces at a grade of 16.8 g/t has been declared for the first time for the US PGM assets under the Samrec Code.
The mineral resource comprises 49.4-million 2E ounces at a grade of 16.6 g/t in the inferred category and 31.3-million 2E ounces at a grade of 17 g/t in the measured and indicated categories.
PGM mineral reserves of 22.2-million 2E ounces at a head grade of 16.3 g/t have been declared, a 5% increase from those declared by the Stillwater Mining Company in 2016.
Mineral reserve grades have remained consistent year-on-year, reaffirming the quality of the US PGM assets acquired by Sibanye-Stillwater in May 2017.
Mineral reserve economic viability testing was based on three-year trailing average commodity prices under the US Securities and Exchange Commission guideline, which includes an assumed $704/oz palladium price and $1 047/oz platinum price.
The average 2E prill split at the US PGM operations is 78% palladium to 22% platinum.
The Competent Person’s Report includes a Samval-compliant mineral asset valuation of the US PGM assets of $2.7-billion, which compares favourably to the $2.2-billion equity price paid for Stillwater.
“The outcome confirms the value accretive nature of the transaction and our decision to purchase Stillwater. It's also exciting to note that there's still further value upside from the very substantial mineral resource base and other non-core assets acquired along with the US PGM assets,” Sibanye-Stillwater CEO Neal Froneman said in a release to Creamer Media’s Mining Weekly Online.
The competent persons responsible for the estimation of the mineral resources are Jennifer Evans, Jim Dahy and Michael Koski and the competent person responsible for the estimation of the mineral reserves is Brent LaMoure.