Eastern Platinum Reports Record First Quarter Production and New Order Rights Issued
Monday November 27, 2:00 am ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 27, 2006) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("the Company") (TSX:ELR - News; AIM:ELR), is pleased to report on the Company's first full quarter of operating results for the three month period ending 30th September 2006 ("Q1-07") from integrated operations at its direct and indirectly held interest in South Africa. These results, which were filed on SEDAR on November 15, 2006, summarize the progress that has been made on all the Company's PGM projects during Q1-07 and demonstrate that the Company is rapidly on its way to becoming a major producer of platinum group metals ("PGM") in South Africa.
Highlights for the quarter are;
- Production and sales up by 80% to 22,666 ounces of PGM, up from 12,570 ounces in Q1-06, the corresponding previous quarter.
- Revenues of $25.3 million with operating costs of $17.1 million.
- Operating cash flow before interest, foreign exchange, depletion, depreciation, amortization and tax ("EBITDA"), of $4,548,000, compared to a loss of $(766,000) in the Q1-06.
- Operating margin in the quarter was $237.14/oz PGM.
- Acquisition of a 49% interest in AfriMinerals Pty Ltd, our joint venture partner on the Spitzkop Platinum Project (Spitzkop).
- Signature of a Letter of Intent with Sylvania Resources Ltd ("Sylvania") on the Mareesburg property and the contiguous Sylvania Everest North property to enable the companies to review each others data.
- Receipt of two New Order prospecting rights during the quarter, one at CRM (bringing the total to 11 out of 18 applications) and one at the Kennedy's Vale Project (bringing the total to 2 out of 3 applications), from the Department of Minerals and Energy ("DME").
- At September 30, 2006, the Company had cash and cash equivalents of $91,649,000
- A Net Loss of $(2.5) million of which approximately $4.2 million being attributable to the softening of the South African Rand ("ZAR") against the Canadian dollar. The decline in the ZAR during the quarter resulted in financial statements reflecting $25 million being recorded to the equity section of the balance sheet due to the translation and consolidation of the Barplats operations and $4.5 million being recorded to the income statement due to the value carried within balance sheet captions and period transactions.
Operational highlights at the Barplats Crocodile River Mine ("CRM") and the Company's ongoing feasibility study programs include:
- 1.43 million fatality free shifts were completed in the last quarter.
- 12% higher mining rate of 64,800 tonnes per month during the quarter (compared to 58,000 tonnes per month during the Q4-06).
- Commissioning of a second 90,000 tonne per month mill giving the plant a monthly capacity of 180,000 tonne per month.
- Delivery of five new pieces of underground equipment (under a ZAR 84 million agreement with Atlas Copco to deliver 23 pieces within the 2007 fiscal year).
- Underground development doubled to 2,351m during the quarter. Additionally, one adit system is being upgraded from a tracked to a conveyor system; these two factors should increase throughput rates and decrease power unit costs.
- Additional decline development commenced at the Zandfontein section with a two year ZAR 65 million contract awarded to Murray and Roberts Cementation.
- Dewatering at Zandfontein was successfully completed and the shaft and roadways are in excellent condition.
- Results of a technical evaluation of previous drilling on the Kareespruit section at CRM suggest that this block has the potential to be developed into a significant PGM resource; this will be further evaluated with confirmatory drilling in 2007.
- Subsequent to the quarter end, the Company received notification from the DME that the old order prospecting permit at Mareesburg was approved for conversion to a New Order prospecting right.
- The Company and Barplats continue with their drilling programs as part of ongoing feasibility studies, with in excess of 15,000 meters being drilled during the quarter on three PGM properties.
- Initial results from drilling at the Spitzkop project confirm the high grades of platinum and rhodium in the UG2 reef previously reported by Impala Platinum Ltd.
"The significant increase in production at CRM is in line with our planning and expectations, reflecting the excellent progress being made in both production and underground mine development," stated President and CEO, Ian Rozier.
"Results on all fronts are very encouraging, and combined with the very strong fundamentals for platinum and rhodium, suggest that our investment in Barplats, made just over 6 months ago, was a very timely and cost effective acquisition," stated Mr. Rozier.
The full financial statements and management discussion has been filed on SEDAR and is available on the Company's website, www.eastplats.com. Eastern Platinum Limited trades on the TSX and AIM stock exchanges under the trading symbol ELR.
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements are based on certain assumptions by Eastplats and Barplats and as such are not a guarantee of future performance. Actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, increased costs of production and a decline in metal prices. Eastplats is under no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
Contact:
Mr. Ian Rozier, M.Sc., P. Eng.
Eastern Platinum Limited
President & CEO
(604) 685-6851
(604) 685-6493 (FAX)
Email: info@eastplats.com
Website: www.eastplats.com
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Source: Eastern Platinum Limited
