Platinum Group Metals Approves $100 Million
Construction Budget and Awards EPCM Contract WBJV Project 1 Platinum Mine
�(Vancouver/Johannesburg) Platinum Group Metals Ltd.
(PTM-TSX; PLG-NYSE:AMEX) (�Platinum Group� or the �Company�) is pleased to
announce that it has approved a budget for $100m for the construction of the
WBJV Project 1 Platinum Mine. The budget has also been unanimously approved
by the Board of Maseve Investments 11 Pty Ltd. �Maseve�, the WBJV operating company where Platinum Group
holds the right to increase its interest to 74% and Wesizwe
Platinum (WEZ-JSE) holds a 26% interest.
Platinum Group Metals as manager of
the WBJV Project 1 Platinum Mine, has appointed DRA Mining Pty Ltd. for
Engineering, Procurement and Construction Management, (�EPCM�) for the
surface infrastructure and underground development planned at the WBJV
Project 1 Platinum mine. This work has commenced. Project 1 is located near
Rustenburg, South Africa and adjoins the Wesizwe
Platinum Mine construction. Project 1 also adjoins the Styldrift mine construction and producing Bafokeng Rasimone Platinum
Mine, both owned by Royal Bafokeng Platinum Ltd.
(RBP - JSE).
R. Michael Jones, President of
Platinum Group Metals Ltd., said �We are pleased that both partners in the
WBJV operating company have resolved to move ahead as planned. It is
excellent to see such a strong project team, with a successful record working
together in the past, being re-assembled so quickly for our WBJV Project 1.
We are on track with our implementation plan.�
The EPCM contract with DRA will
provide approximately 30 full time professionals to oversee and plan the
execution of the development of surface infrastructure, power delivery, water
delivery, civil works and excavations and the development of underground
tunnels to access ore over the next 18 months. DRA�s scope of work will
include engineering, design, construction management, administration and cost
and schedule control. This work is now underway.
DRA is a global engineering firm that
has managed more than 55 platinum mine developments and operations in South
Africa. DRA will work closely with the Company�s Project Manager and Owner�s
Representative Mr. Thys Uys.
Platinum Group Metals and Mr. Uys have
recently expanded the owners team to include a dedicated quantity surveyor
for cost engineering services, contract and capital control administrators
and a permitting consultant responsible for the Environmental Impact
Assessment and Management Plan, all who have worked with Thys
Uys before on large scale mining construction
projects.
DRA has started work on the detailed
project implementation for power and water so that as soon as detailed
permits for excavations are in place they are able to start work on site.
Allocations for construction power and water from existing infrastructure
have been confirmed.
The budget developed for underground
access has been generally consistent with the budget for such phases of work
in the Updated Feasibility Study (October 2009, www.SEDAR.com). The
underground mining contract for the sinking of declines will go out to tender
in the weeks ahead and a more detailed review of implementation costs will be
completed following the award of this contract.
Platinum Group Metals and Maseve have exercised their option to purchase the
Sundown Ranch and facilities and have made the required final deposit under
this agreement of ZAR117M (C$16.7M). The transfer of the hotel assets to Maseve will occur in the months ahead and the plan is for
the hotel and facilities to continue as is as part of the community under a
management contract with the current manager. In addition to covering the
surface rights over the mining area, the Sundown Ranch will provide part of
the housing needs for construction, site offices and facilities and
importantly, can be part of a regional training effort for the community.
Platinum Group Metals also announces
the appointment of Mr. Herbert Medopi as Manager of
Permitting, Government and Stakeholder Relations. Mr. Medopi
has a successful track record of ensuring that large scale projects follow a
proper permitting process so that all stakeholders can have their views heard
and projects can therefore develop in a responsible manner. Mr. Medopi and Mr. Uys have also
worked well together in the past.
Milestones over the next 4 to 6
months;
- Finalization and Department
of Mineral Resources grant of the bulk sample permit for underground
development and access
- Filing of the Full Mining
Authorization Permit application following the grant of the underground
development and access permit
- Commencement of Site
establishment and excavations
- Award of the mining contract
for underground development
- Appointment of the Lead
Arranger for Project Finance �Full Mine Construction
Qualified Person
The Qualified Person for this News
Release is R. Michael Jones P.Eng. He is
non-independent and is the Company�s CEO and a significant shareholder of the
Company. He has relevant supervision experience in South Africa since 2002
and has experience with feasibility studies and the supervision of precious
metals mine operations.
About Platinum Group Metals Ltd.
Platinum Group has an experienced mine
building and operating team based in Vancouver, Canada and Johannesburg,
South Africa. The Company has started on the construction of a large scale platinum mine in South Africa and is active
in platinum exploration in South Africa in Canada.
The Company�s main asset is a 74%
interest in the Western Bushveld Joint Venture
(WBJV) a 275,000 ounce per year mine to produce platinum, palladium, rhodium
and gold with a 22 year mine plan. The WBJV is adjacent to 70% of the world�s
platinum production in South Africa. In addition to the WBJV Project, the
Company has two active exploration joint ventures with JOGMEC, the Japanese
state owned company. Platinum Group also owns significant mineral rights in
the vicinity of North American Palladium Ltd.�s Lac
des Iles Mine north of Thunder Bay, Ontario.
Platinum Group recently completed a
$143.81 million equity financing to begin development of the WBJV. The
Company has been supported by senior institutional shareholders and
investment banks over its 10 year history and it is listed as PLG on the NYSE
AMEX and PTM on the TSX in Toronto.
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 Kris Begic, Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450
The Toronto Stock Exchange and the New
York Stock Exchange � NYSE AMEX 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. 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. Forward-looking statements in this press release include, without
limitation, statements regarding the timing of any debt/financing for Project
1, the potential to increase the Company�s interest in certain of its
projects and further exploration on the Company�s properties. In addition,
the results of the feasibility study may constitute forward-looking
statements to the extent that they reflect estimates of mineralization,
capital and operating expenses, metal prices and other factors. Although the
Company believes the forward-looking statements in this press release are reasonable,
it can give no assurance that the expectations and assumptions in such
statements will prove to be correct. 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 market conditions, 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 and other risk
factors described in the Company�s Form 40-F annual report, annual
information form and other filings with the SEC and Canadian securities
regulators, which may be viewed at www.sec.gov and www.sedar.com, respectively.
|