Platinum Group Metals Receives Positive PEA for Waterberg

Platinum Group Metals Ltd. (TSX:PTM,NYSEMKT:PLG) announced that a positive preliminary economic assessment (PEA) has been completed on the Waterberg joint venture project, in which it holds a 49-percent effective interest. The plan now is for the project to move into the prefeasibility stage.

PEA details include:

  • Steady state production of 655,000 ounces of platinum, palladium and gold, “3E”;
  • A two year construction period planned in 2016 to 2018;
  • A Project post-tax NPV (7.5% discount rate) of 5.1 billion Rand or US$ 509 million (10R/US$);
  • Peak Funding of 8.85 billion Rand or US$ 885 million (10R/US$);
  • Major Risks to be assessed at pre-feasibility including smelting plans, water and power delivery and geotechnical work for mine design along with normal increased resource, metallurgical and cost confidence levels; and
  • Opportunities include significant resource expansion, optimization of mine plans, mine ramp up profiles, increased metallurgical recoveries and smelter terms and consideration of adjacent deposit exploration.

R. Michael Jones, president of Platinum Group Metals, commented:

The Waterberg Joint Venture project stands out as an exceptional opportunity for the shallow production of safe, low cost platinum, palladium and gold by fully mechanized mining methods utilizing multiple decline access ramps. The planned 655,000 3E ounces of steady state production is significant in the global market for platinum group elements. The peak funding estimate is modest compared to the opportunity for large scale participation in the platinum and palladium markets. In addition we see significant opportunity to expand the Project’s resources and to optimize the Project in the pre-feasibility study.

Click here to read the full Platinum Group Metals Ltd. (TSX:PTM,NYSEMKT:PLG) press release.