Name and Location  
Maseve platinum mine (formerly Western Bushveld Joint Venture Project 1), North West, South Africa.

  Client  
Development of the project has been conducted through Maseve Investments 11. As of August 31, 2015, Platinum Group Metals (PTM) subsidiary PTM RSA majority-owns this company with 82.9%. Africa Wide Mineral Prospecting and Exploration, 100% owned by JSE-listed Wesizwe Platinum, holds the remaining 17.1% ownership.

  Project Description  
The Maseve platinum mine, located about 35 km from Rustenburg, comprises projects 1, 2 and 3.

The mine plan for Project 1 has been revised. The new plan envisages the construction of a platinum mine and a concentrator to produce between 234 000 oz/y and 300 000 oz/y of combined platinum, palladium, rhodium and gold (4E) in concentrate.

During nine years of peak production, about 275 000 oz/y of 4E in concentrate will be produced from the project’s Merensky reef horizon.

The Merensky reef will be mined at widths of between 93 cm and 176 cm and the upper group two reef will be mined at widths of between 105 cm and 205 cm.

The mining and development plan includes conventional hand-held drilling equipment, electrical drills and scrapers, as well as winch cleaning, which is similar to the successful conventional mining operations at the adjacent mines.

Declines and primary access to the deposit have been designed for development using mechanised equipment.

Ore will initially be hauled out of the mine using mechanised equipment and transported by conveyor from Year 4 to the end of the mine’s 22-year life.

The concentrator has been designed and recosted, based on treating the optimal 140 000 t/m. The revised mine plan has increased this treatment rate to 160 000 t/m and, for the concentrator to treat the increased quantity of reef, the recovery has been reduced to a discount of up to 2.5% for treatment over the nominal nameplate capacity.

  Net Present Value/Internal Rate of Return  
The project's independent feasibility model developed a post-tax net present value of $431-million at a 5% discount rate.

  Value  
Peak funding for the project has increased from $502-million in the first quarter of 2015 to $514-million.

Of the required capital cost, a fully funded $100-million for the Phase 1 surface establishment and the underground decline development programme has been allocated.

  Duration  
Not stated.

  Latest Developments  
The Maseve mine is fully constructed and is in the ramp-up phase of production.

PTM has reported that its key objectives for the remainder of 2016 is to continue underground development and production ramp-up. Development work in blocks 12, 11, 10 and 9 in the North mine and block 16 in the South mine are key to the mining plans and the ramp-up of production.

Block 11 is a large, well-drilled and stable mining block, estimated to host more than 545 000 4E oz and forms an important part of the next two to three years of the mine plan. Primary access development is about 90 m away from mining block 11 and access should be completed in August.

First concentrate was produced in February, with commercial production expected late in 2016.

Initial monthly revenue from concentrate sales before commercial production will be treated as a reduction in project capital cost. Cost recoveries to May 31 from concentrate sales totalled about $4.6-million.

The Maseve operation is expected to produce 110 000 4E ounces to the end of April 2017.

  Key Contracts and Suppliers  
Société Generale, Barclays Bank, Absa Capital, Standard Bank of South Africa and Caterpillar Financial (lead finance arrangers); Turnberry Projects (prefeasibility study and overall feasibility study); Wardrop Engineering (decline access); GRD Minproc (concentrator design); Grinaker-LTA Mining (vertical shaft design); Golder Associates Africa and Oryx Environmental (public consultation and environmental permitting work); DRA Mining (engineering, procurement and construction management) and JIC Mining Services (underground decline tunnels).

  On Budget and on Time?  
Not stated.

  Contact Details for Project Information  
PTM investor and media enquiries, tel +1 604 899 5450, fax +1 604 484 4710 or email info@platinumgroupmetals.net.
Wesizwe Platinum,   Sirkien    van  Schalkwyk, te l +27 11 994  4600, fax +27 11 994 4601 or email Sirkien@wesizwe.com.
Turnberry Projects, tel +27 11 781 0116 or fax +27 11 781 0118.
Wardrop Engineering, email info@wardrop.com.
GRD Minproc, tel +27 11 514 0005.
Grinaker-LTA Mining, tel +27 11 578 6000 or fax +27 11 578 6161.
Golder Associates Africa, tel +27 14 597 0442 or fax +27 14 592 2842.
Oryx Environmental, tel +27 11 880 5204.
DRA Mining, tel +27 11 202 8600.
JIC Mining Services, tel +27 11 564 9400, fax +27 11 315 3789 or email general@jic.co.za.