Western Bushveld
Joint Venture Update
(Vancouver/Johannesburg) Platinum Group Metals
Ltd. (PTM-TSX; PLG-AMEX) ("Platinum
Group Metals") announces a progress update on its Western Bushveld
Joint Venture ("WBJV") platinum projects in South Africa.
Refinements to the mine design have been
recommended January 18, 2007 by the combined Project 1 engineering team
consisting of Turnberry Projects and Wardrop Engineering which improves
the prefeasibility study in the following areas:
1. Increasing
early ore production rates
2.
Optimizing capital requirements
3.
Deferring capital expenditures
4.
Reducing electrical consumption in the years 2010 to 2012 and over the
life of the project.
"Major mine development in South Africa is
facing increased risks of a shortage of available grid power in the next
five years" said R. Michael Jones, President of Platinum Group
Metals Ltd. "However, the current mine design provides a significant
strategic advantage and our engineering team is working to optimize the
proposed design and respond to concerns regarding power supply. We have
shallow resources that can be accessed quickly with lower capital costs
and reduced electrical demands when compared to deep ounces".
Project Timetable
The feasibility study work will continue to
calendar Q2 2008 and the milestone for initial production, with
appropriate permits is maintained at 2010.
The commencement of the public consultation
process for the mining permits applications for the WBJV Project 1 has
been agreed by the partners Platinum Group Metals Ltd, Wesizwe Platinum
(WES-JSE) and Anglo Platinum (AMS-JSE). The feasibility and engineering
work to optimize the project will continue during the consultation
process and take into account the public interaction to achieve the best
value project for all of the stakeholders including the WBJV partners,
the local community and local and state government interests.
Increasing Early Production
A focus of the continued engineering work will
be on maximizing early production utilizing decline ramp access and
mechanized equipment. The target production rate of approximately 250,000
ounces of 4E (platinum, palladium, rhodium and gold) as set out in the
pre-feasibility study remains a steady state target for the feasibility
work and the decline development will target this rate.
Optimizing Capital Requirements
The current focus of the feasibility work is to
reduce the time to steady state production with less capital compared to
the initial vertical shaft option in the pre-feasibility study. Vertical
shaft costs have increased along with many other costs in the mining
industry and declines with a modified development plan may offer an
opportunity to reduce initial capital.
Deferring Capital Expenditures
A vertical shaft is part of the current mine
plan but this expenditure may be able to be deferred in the current
study.
Reduction of Electrical Power Requirements
In planning meetings with South African power
utility Eskom the utility indicated that an allocation of 2MW for project
construction was possible. Potential for decreased grid electrical power
availability from Eskom for new projects up to 2012 has put an increased
strategic focus on maximizing the value of shallow platinum ounces which
require relatively less power than deeper mines, and minimizing power
requirements for the WBJV Project 1 start up. Diesel power generation in
early years is being considered to maintain the project schedule, with
potentially increased capital and operating cost. Current estimates
indicate that diesel electrical generation to compensate for possible
shortfalls from Eskom should be planned at moderate levels in 2011 and
increasing as full electrical power is needed in late 2012.
The near surface, WBJV Project 1 decline
accessible ounces of platinum group metals that can be produced without
the electrical demands of hoisting, deep ventilation or refrigeration
should have a strategic competitive advantage. The capital and operating
costs associated with parallel or standby diesel generating capacity will
be fully considered as part of the bankable feasibility study. Should
Eskom be able to supply additional power during this period the need for
diesel generation may be reduced or eliminated.
Any cost increases would only be relevant during
the period grid power was not available. Merensky tonnages for WBJV
Project 1 available for mining are not impacted by current estimates of
the temporary increase in cut-off grade and there is no loss of resource
tonnage. The UG-2 mine plan is not impacted provided grid power is
available by late 2012.
Any potential changes in the power availability
forecasts and the development plans across the platinum industry will be
closely monitored by the Company as it considers its strategic alternatives
as operator of the WBJV.
Cautionary Note to U.S. Investors: The U.S. Securities and Exchange Commission permits U.S. mining
companies, in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or produce. We
use certain terms in this press release, such as "Measured,"
"Indicated," and "Inferred," "resources,"
that the SEC guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC.
U.S. investors are urged to consider closely the
disclosure in our Form 20-F, File No. 0-30306, which may be secured from
us, or from the SEC's website at: http://sec.gov/edgar.shtml This press release refers to an adjacent property and
mineralization on an adjacent property does not provide any indication of
the potential on the Company's properties.
Mineral resources that are not mineral reserves
do not have demonstrated economic viability.Power availability is a risk
to the project plans.
Qualified Person, Quality Assurance and Control
and Data Verification
R. Michael Jones, P.Eng is the non-independent
qualified person for the technical summary information in this press
release. Resources quoted or referenced in this press release rely on the
independent qualified persons disclosed with the respective estimates and
reports on file on www.sedar.com. The data presented here has been verified to a satisfactory
level by the qualified person by personal review of the materials and the
credentials and experience of the professionals as independent qualified
persons generating the data. The independent qualified engineering firms
mentioned in the press release have been provided a copy of the draft
press release for comment as a verification process. Production
target scales and other planning data have considerable risk and
reference is made to risk factors and other qualifications in this press
release and in the reports currently filed on SEDAR.
About Platinum Group Metals Ltd.
Platinum Group is based in Vancouver BC, Canada
and Johannesburg, South Africa. Platinum Group has a management team in
both Canada and South Africa, which have successful track records of more
than 20 years in exploration, mine discovery, mine construction and mine
operations. The Company was formed in 2000 and is focused on the
development of platinum operations. It holds significant mineral rights
in the Northern and Western Bushveld Igneous Complex of South Africa.
Platinum Group is also a significant mineral
rights holder in the area surrounding Canada's only primary platinum and
palladium mine near Thunder Bay, Ontario Canada.
On behalf of the Board of
Platinum Group Metals Ltd.
"R. Michael Jones"
President and Director
For further information contact:
R. Michael Jones, President
or John Foulkes, Manager Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450
Toll Free: (866) 899-5450
www.platinumgroupmetals.net
Larry Roth
Roth Investor Relations, NJ
Tel: (732) 792-2200
The TSX Exchange and the American Stock Exchange
have not reviewed and do not accept responsibility for the accuracy or
adequacy of this news release, which has been prepared by management.
This press release contains forward-looking
statements within the meaning of Canadian and U.S. securities laws. Such
statements include, without limitation, statements regarding the timing
of future activities by the Company, future anticipated exploration and
development programs, the review of technical information, the discovery
and delineation of mineral deposit and resources, business plans,
potential mining scenarios, business trends and future operating factors.
Although the Company believes that such statements are reasonable, it can
give no assurance that such expectations will prove to be correct. Forward-looking
statements are typically identified by words such as: believe, expect,
anticipate, intend, estimate, postulate and similar expressions, or are
those, which, by their nature, refer to future events. All statements
that are not statements of historical fact are forward-looking
statements. The Company cautions investors that any forward-looking
statements by the Company are not guarantees of future results or
performance, and that actual results may differ materially from those in
forward looking statements as a result of various factors, including, but
not limited to, variations in the nature, quality and quantity of any
mineral deposits that may be located, the Company's ability to obtain any
necessary permits, consents or authorizations required for its
activities, the Company's ability to produce minerals from its properties
successfully or profitably, to continue its projected growth, or to be
fully able to implement its business strategies. In addition,
forward-looking statements are subject to various risks, including that
data is incomplete and considerable additional work will be required to
complete further evaluation, including but not limited to drilling,
engineering and socio-economic studies and investment; no firm
quotes for costs have been received; the legal right to mine the
project discussed has not been confirmed or applied for and the process
for such application is new in South Africa; the potential capital cost
of the project is beyond the current means of the Company and there can
be no assurance that financing for further work will be available. There are significant risks
with respect to grade estimation, metallurgical recovery and mining plans
that may result in over estimation or failure to meet targets.
Availability of grid electrical power is completely outside the company
control. Any estimates, plans or studies prepared by or on behalf of
other companies with respect to the project have not been prepared or
reviewed by the Company or the Company's QPs and such disclosure can't
and should not be in any way be attributed to the Company or the Company's
QPs, independent or non-independent. Any reference to Project 2 does not
imply that this is a stand alone area for any potential mine plan. The
reader is referred to the Company's filings with the SEC and Canadian
securities regulators for disclosure regarding other risk factors. There
is no certainty that any forward looking statement will come to pass and
investors should not place undue reliance upon forward-looking
statements.
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