JOHANNESBURG (miningweekly.com) – Vancouver-based Eastern Platinum (Eastplats) reported on Wednesday that the construction of its Barplats subsidiary’s tailings facility at the Crocodile River mine, in South Africa’s North-West, was progressing well and that it expected to generate its first revenue from the operation in the third quarter.
“The retreatment project provides new possibilities and options for Eastplats,” said the company, which ceased production at the Crocodile River mine in 2013.
On March 1, Eastplats entered into a framework agreement with Union Goal Offshore Solutions relating to construction, mining and processing of the tailings resource. Union Goal has made an upfront payment of $3.6-million to Barplats Mines.
Eastplats reported that equipment had arrived on site and that it was targeting commissioning of the plant in the third quarter.
The company reported that its management’s focus would be on advancing the tailings facility construction and ensuring that the anticipated schedule was maintained.
The delivery of the updated platinum group metals feasibility study on the same tailings resource at the Crocodile River mine early in the second quarter of 2018 could also provide additional economic opportunities for Eastplats in the near term.
Further, the company awaits the results of the completion of the Mareesburg feasibility study, which should be available at the end of the second quarter of 2018.
“2017 was a strong year of development for Eastplats, culminating in the execution of the UG agreement and the initiation of construction on the retreatment project,” said Eastplats in its 2017 annual results announcement.
The dual-listed group narrowed its loss by 83% from $55-million in 2016 to a net loss of $9.2-million in 2017.
Meanwhile, Nigel Dentoom, with 45 years’ experience in mining and metals joined the board of Eastplats directors.