Canadian miner Platinum Group Metals (PTM) spent $1.06-million on the Waterberg project, located in the Bushveld Complex in South Africa’s Limpopo province, in the three months ended November 30, 2022, taking its total expenditure on the project to $41.5-million since inception.
Total expenditures on the property since inception from all investor sources reached $81.5-million at the end of November.
PTM’s partners in the Waterberg joint venture are Impala Platinum, Mnombo Wethu Consultants, the Japan Organization for Metals and Energy Security, and Hanwa.
PTM, alongside project partners, remains focused on advancing the project to a development and construction decision.
The partners approved an in-principle pre-construction work programme valued at $21-million, which is set to be undertaken over 23 months ending August 31, 2024. The programme involves initial road access, water supply, essential site facilities, a first phase accommodation lodge, a site construction power supply from Eskom and advancement of the Waterberg social and labour plan.
An initial $2.5-million will be spent by the end of March this year.
PTM also plans to update the 2019 Waterberg definitive feasibility study, including a review of cut-off grades, mining methods, infrastructure plans, scheduling, concentrate offtake, dry stack tailings, costing and other potential revisions to the project’s financial model.
The company is considering commercial alternatives for mine development, financing and concentrate offtake. Obtaining reasonable terms for Waterberg concentrate offtake from an existing smelter or refiner in South Africa is considered the preferred option and discussions with such parties are ongoing.
As an alternative to a traditional concentrate offtake arrangement, PTM is also looking into the economic feasibility of building a matte furnace and base metal refinery to process Waterberg concentrate, which will be a separate business from the Waterberg joint venture.
The Waterberg project is planned as a fully mechanised, shallow, decline access palladium, platinum, gold and rhodium mine and is projected to be one of the largest and lowest cost underground platinum group metals mines globally.