TORONTO (miningweekly.com) – Canadian explorer and project developer Platinum Group Metals (PTM) on Thursday revealed a 66% increase in the estimated inferred mineral resources of the Waterberg Joint Venture (JV) discovery and neighbouring Waterberg Extension, in South Africa’s Limpopo province, to 29-million ounces of platinum, palladium, rhodium and gold (4E).

Speaking during an analyst conference call on Thursday, president and CEO Michael Jones said the latest resource estimate for the company’s discovery that extends the northern limb of South Africa’s minerals-rich Bushveld Igneous Complex to the north, had now officially grown the deposit larger than PTM’s Western Bushveld Joint Venture (WBJV) development Project 1, located on the western limb of the Bushveld Complex.

The WBJV project holds about 8.2-million ounces of 4E in the measured and indicated categories, with 4.7-million ounces of 4E in the proven and probable categories – pale in comparison to the lustre of the Waterberg discovery.

“Waterberg has now become one of the top copper, nickel and platinum-group metals (PGM) projects in the world – and we’re not done yet,” boasted Jones.

PTM’s Waterberg discovery is north of Anglo Platinum’s rich Mogalakwena openpit mine and Ivanplats’ promising Platreef project.

GROWING RESOURCE

Since the Vancouver- and Johannesburg-based firm first reported a maiden 6.6-million ounce 3E inferred mineral resource in September, 2012, which excluded rhodium, the resource had expanded to 10.12-million ounces of 3E by February last year and 17.5-million ounces, with significant copper and nickel credits, by September.

The resource estimated included the T1, T2 and F layers in a new, previously undiscovered extension of the Bushveld Complex. The updated mineral resource estimate incorporated both the Waterberg JV and the Waterberg Extension areas to a cutoff depth of 1 250 m.

Jones noted that prices for platinum, palladium and nickel had all moved higher than spot prices were at the time of a February preliminary economic assessment (PEA) on the Waterval JV, improving the project’s already robust potential. Palladium on Wednesday reached a three-year high on the spot market at just over $860/oz.

On Thursday, PTM reported that the total inferred mineral resources for the T and F layers had been estimated at 287-million tonnes grading 3.15 g/t 4E, including 0.94 g/t platinum, 1.92 g/t palladium, 0.04 g/t rhodium and 0.25 g/t gold, which comprises 30%, 61%, 1% and 8% of the resource, respectively.

Included in the mineral resource estimate at Waterberg is the maiden inferred resource estimate on the Waterberg Extension property of 6.8-million ounces, comprising 68.04-million tonnes grading 3.11 g/t 4E, including 0.93 g/t platinum, 1.98 g/t palladium, 0.05 g/t rhodium and 0.15 g/t gold, in a ratio of 30%, 64%, 2% and 4% of the resource, respectively.

The updated deposit estimate also included an estimated 1.107-billion pounds of nickel and 616-million pounds of copper.

Jones said the deposit had demonstrated “good continuity” and remained open along strike and at depth. Drilling was also planned several kilometres north of the current estimate.

The Waterberg deposit consists of discrete, layered and continuous PGM-bearing layers, starting at 140 m from the surface with a consistent westerly dip. The deposit had so far been drilled for about 10.4 km northwards on strike. Geophysical surveys and drilling, to date, indicated that the deposit remained open down dip and on strike to the north-west.

The observed deposit layers are between 2.75 m and 60 m thick and have well identified and modelled rock unit and geochemical markers. Drilling is currently under way with about 20 rigs.

LOW-COST PROSPECTS

Jones noted that the Waterberg deposit stood apart from conventional Merensky reef and upper-group two Bushveld deposits as a result of its size, thickness, closeness to surface and the opportunity to add more scale at shallow depths. The deposit is open to safe, efficient, large-scale mechanised underground mining methods.

The expanded mineral resources are in the same position and are of a similar type and grade to those that were the basis for mining methods and metallurgical recoveries in a February PEA, by independent engineering firm WorleyParsons.

The PEA on the Waterberg JV deposit was based on the earlier, smaller 3E resource announced on September 3, 2013.

It estimated that the Waterberg deposit would be one of the lowest-cost PGM mines in the world. The estimated cost of production, including of base metal credits, is $438/oz of 3E.

The PEA was based on a fully mechanised mine plan with metallurgical recoveries from testwork and assumed that the Waterberg concentrate would be processed in a conventional South African PGM smelter.

The Waterberg mine plan provides for steady-state output of 655 000 oz/y of 3E.

PTM holds a 49.9% effective interest in the Waterberg JV, while Japan Oil, Gas and Metals National Corporation holds a 37% interest and private empowerment partner Mnombo Wethu Consultants holds a 26% interest.

However, on the Waterberg Extension property, PTM holds an 87% interest.

Resources attributable to PTM’s interest total about 17-million 4E ounces.

Jones noted that there was more potential to extend the Extension property further north, with targets identified 25 km along trend to the north. He also noted that the company would drill targets to the immediate north of the discovery in search of the elusive ‘M’ layer, which was expected to be of significant width and grades, and which would be named after him.

PTM’s TSX-listed stock on Thursday rose C$0.05 a share to C$1.30 apiece.