Platinum Group completes Western Bushveld estimate
2005-03-07 13:37 ET - News Release
Mr. R. Michael Jones reports
Platinum Group Metals Ltd.'s independent qualified person has now completed a review of the resource estimate for the southeastern property area of the Western Bushveld joint venture. An increase in the grade on the Merensky reef from an earlier Anglo Platinum estimate (as reported in Stockwatch Feb. 17, 2005) is reported. The Merensky reef remains the focus of PTM's exploration and development plans in the joint venture area. The Merensky reef is actively being mined as the primary orebody at the adjacent Anglo Platinum-operated Bafokeng Rasimone platinum mine, which lies 1,000 metres to the southeast of the resource area. The resource estimate for the UG2 reef has decreased from the earlier estimate. A specific type of high-grade Merensky reef has been identified and correlated on the joint venture property as a result of the detailed work completed with the qualified person.
Anglo Platinum reported in its 2004 annual report (see news in Stockwatch Feb. 17, 2005) inferred resources totalling 21 million tonnes grading 5.88 grams per tonne on the Merensky reef (3.96 million ounces) and 13 million tonnes grading 4.25 grams per tonne on the UG2 reef (1.77 million ounces) for the southeastern property area. The independent qualified person has now provided the following estimate:
Merensky reef: 15.41 million tonnes at 7.92 grams per tonne for four elements (platinum, palladium, rhodium and gold), or 3.93 million ounces of four elements; and
UG2 reef: 10.05 million tonnes at 2.52 grams per tonne of four elements, or 820,000 ounces of four elements.
The estimate includes dilution to a minimum of one metre mining width on both the Merensky reef and UG2 reef. Estimated geological losses of 30 per cent have been factored into the estimate. The resource includes mineralization from approximately 100 to 600 metres deep. A specific facies or reef type, namely the Harzburgitic Merensky reef, has been identified in the resource area and is above the average grades for the Merensky reef. This facies has been confirmed in PTM's recently commenced infill drilling program in the resource area and the assay result from this additional intercept is pending.
The Merensky and UG2 reefs also have been intercepted in holes to the north of the resource area that the qualified person did not include in the resource estimate at this time as a result of the drill intercept density in these areas. These results include drill hole FG34 with an average of 9.16 grams per tonne of four elements over 1.15 metres on the Merensky. The value for the UG2 reef is still pending. FG34 is located about 1,500 metres from the nearest point of the declared resource area. A second PTM drill rig has commenced drill testing in this area with the objective of increasing the inferred resources as soon as possible.
The independent resource update results in a total of 4.74 million ounces of four elements for the project, compared with 5.87 million ounces estimated by Anglo Platinum for the same area. The estimates by the qualified person and Anglo Platinum were developed using independent approaches and different data sets. Since Anglo Platinum operates the adjoining mine, it was able to consider a broader statistical data set and regional information when assessing the resources for the joint venture project area. It is anticipated that drilling currently under way will both increase the calculated resource and the confidence interval of the resulting estimate.
The resources reported by Anglo Platinum were subject to the SAMREC code and were the subject of an independent audit. The PTM resource estimate report will be filed in satisfaction of Canadian National Instrument 43-101 standards. In keeping with industry practice in South Africa, the breakdown of the four elements was not specifically assessed in the Anglo data set; however, the qualified person makes the following estimates of the four-element breakdown based on PTM's assay data on the edge of the resources area and regional experience on the reefs which is as follows: Pt 64.00 per cent, Pd 27.45 per cent, Rh 4.80 per cent and Au 3.75 per cent for Merensky, and for Pt 59.15 per cent, Pd 29.55 per cent, Rh 10.50 per cent and Au 0.8 per cent for UG2.
Drilling on the Western Bushveld joint venture project by PTM continues with three objectives:
to increase the level of confidence on the known resources adjacent to the BRPM platinum mine;
to increase the calculated resources on the project; and
to explore along strike and updip of the Styldrift platinum project.
PTM and Anglo Platinum each hold a 37-per-cent interest in the joint venture, with black economic empowerment partner Africa Wide Mineral Prospecting and Exploration Co. Pty. Ltd. holding 26 per cent.
Qualified person, quality control and assurance
E.H. Siepker, MSc, Pr. Sci. Nat. (No. 400094/84), assisted by C.J. Muller, BSc (honours), Pr. Sci. Nat. (No. 400201/04), are both registered professional scientists and both of them have in excess of 20 years of experience in the field of precious metal/planar tabular orebody evaluation. Both qualified persons reviewed the project and have independently assessed the merits thereof. All material available has been reviewed, inspected and used in the resource estimation.
Comments pertaining to FG34 have been scrutinized by W.J. Visser, BSc (honours), Pr. Sci. Nat. (No. 400279/04), who is the exploration manager for PTM (RSA) Pty. Ltd. Mr. Visser has in excess of 15 years of experience on similar deposits and has, among others, held the position of resource manager for major RSA companies.
AI
