Platinum Group nearly completes South Africa mine

COLD commissioning of processing plant equipment is planned for August 2015 with initial concentrate production on track, as planned in the  4th quarter of 2015. The ramp-up is scheduled through 2016 and 2017. The mill has been completed in accordance with the originally design and as planned. The decision to add a MF-2 grinding circuit on completed foundations, thereby increasing capacity from 110ktpm up to a full 160 ktpm, to take the mine up to its planned 250,000 ounce 4E steady state capacity will be made as required during 2017.

 

Mineral Resources and Mineral Reserves for Project 1 have been updated to account for the planned increased use of mechanized mining methods where the deposit is estimated to be thicker and accessible from nearby completed underground development. 

 

The updated Mineral Reserves have been calculated using current three year trailing metal prices and current cost estimates, updated detailed surface and underground drilling results and a revised mine plan. 

 

Production guidance for fiscal 2016 is 116,000 ounces platinum, palladium, rhodium and gold (4E) (100% Project basis) and 185,000 ounces 4E in fiscal 2017 in concentrate. Steady State has been estimated to be 250,000 ounces 4E per year.

 

Exclusive of smelter discount, on site costs are estimated to be US$526 (12R/US$) per 4E ounce for the life of mine on the Merensky Reef including copper, nickel and other minor elements as a credit and US$774 per 4E ounce on the UG2 (12R/US$). 

 

The planned increased use of mechanized mining methods in areas near current development, and a slightly weaker Rand has resulted in similar cost guidance to earlier estimates despite increased labour and other cost escalation in Rand terms.

 

The company expects to complete final conditions for the draw-down of the previously announced Sprott working capital facility for US$40 million in the fall of 2015.