The definitive feasibility study (DFS) for TSX-listed Platinum Group Metals’ (PTM’s) joint venture Waterberg Project, in the Bushveld Complex, is progressing well and remains on track for completion at the end of the first quarter of 2019.
The DFS is being completed by Waterberg Joint-Venture (JV) Resources, with PTM serving as the operator, with input from Impala Platinum Holdings (Implats) and Japan Oil, Gas and Metals Corporation (Jogmec).
The latest phase of 38 000 m of infill drilling has been completed safely and on budget, bringing the total drill testing completed on the project to about 346 000 m.
PTM plans to publish an updated resource model and technical report for the Waterberg Project, including results from the latest drilling, in the third quarter. This new resource model will form the basis for mine planning and reserve estimation in the DFS.
Independent engineering for the DFS is also under way, as planned by the jointly appointed engineering firms Stantec Consulting International and DRA Projects South Africa, along with input from technical specialists from each of the JV partners.
PTM CEO Michael Jones this week said the partners are working closely with one another, stakeholders and engineers to maximise the value of this extraordinary deposit – all at a time when the interest in palladium is increasing, which is the project’s primary metal.
Recent infill drilling has intersected areas of 40 m to 100 m of vertical thickness with palladium, platinum, gold and rhodium mineralisation – as anticipated in the ‘Super F’ areas of the current resource model. The intercepts compare favourably to the mine plan in an independent prefeasibility study for the project published in October 2016.
Assay results from the latest drilling continue to be received.
Current platinum group elements probable reserves at the Waterberg Project are 12.3-million ounces, consisting of 61% palladium, 30% platinum, 8% gold and 1% rhodium, as well as 191-million and 333-million pounds of copper and nickel, respectively.
At a 2.5 g/t cutoff grade, probable reserves are comprised of 102.7-million tonnes at 3.73 g/t, consisting of 2.29 g/t palladium, 1.11 g/t platinum, 0.29 g/t gold, 0.04 g/t rhodium, 0.08% copper and 0.15% nickel.
PTM stated that much of the Waterberg Project area still remains to be drilled and assessed. The deposit remains open down dip and along strike. The reserves are a subset of a larger indicated resource.
PTM currently holds an effective 50.02% interest in the Waterberg Project. Implats owns a 15% interest and Mnombo Wethu Consultants, a black empowerment company, holds a 26% interest. PTM owns a 49.9% interest in Mnombo.
Jogmec holds a 21.95% interest in the Waterberg Project and is planning to transfer a 9.755% interest to its partner Hanwa Hosken Consolidated Investments, a South African black empowerment investment holding company listed on the JSE with a $1.1-billion market capitalisation, which recently bought a 14.11% stake in PTM.
All partners are active in the oversight of the project. Implats holds an option to increase its stake to 50.01%.