Eastern Platinum Ltd (ELR)

[sumisu]

Eastern Platinum sees Q3 pgm production slide at CRM 8th October 2009

Source: Eastplats Reports Operating Results For The Quarter Ended September 30, 2009 (07/10/09)

Eastern Platinum revealed yesterday (7th October) that pgm production at its flagship Crocodile River Mine (CRM) fell by ten per cent during the third quarter of 2009.



In the three months to 30th September, output at the South African site was 29,874 oz, in comparison with the figure of 33,383 oz recorded in the previous quarter.

The company attributes the decline - which also represents a three per cent year-on-year fall - to the dismissal of mining contractors whose employees were involved in illegal strikes at CRM in July.

"After a disruptive period in July and early August at CRM, we have recovered extremely well," said Chief Executive Ian Rozier.

"The extensive on and off-reef development carried out during the last year [has] positioned the mine well for both the short-term production ramp up back to Q2 levels and for the ongoing production build-up at the mine."

Eastern Platinum revealed that the strikes - which saw a limited number of companies approached to provide replacement workers - also impacted concentrator recovery levels.

The figure of 78 per cent garnered from the run-of-mine circuit represented a slight downturn from the 80 per cent total achieved during the preceding three months.

However, full production has now resumed and the company also welcomed the first full quarter of output from its pgm and chromite tailings remining section.

Eastern Platinum is a Canadian firm that was formed in 2003 and has since acquired interests with combined pgm resources of over 85 million ounces.