RE: news
Eastern Platinum Limited: Trial Mining and Bulk Sampling Commence at Spitzkop
Thu Apr 10, 5:00 AM
VANCOUVER,BRITISH COLUMBIA--(Marketwire - April 10, 2008) - Mr. Ian Rozier,President and CEO of Eastern Platinum Limited ("Eastplats") (TSX: ELR.TO)(AIM: ELR)(JSE: EPS)is pleased to report that as part of the ongoing evaluation of theSpitzkop project the Company has commenced with underground trialmining and bulk sampling of the UG2 and Merensky reefs.
Spitzkop is a high grade, platinum and rhodium rich, shallow dipping,near surface PGM deposit with resources in both the UG2 and Merenskyreefs. Current estimates indicate that Spitzkop has a UG2 measuredresource of 41.8Mt at an average 3PGE+Au grade of 5.2 g/t (7M Mozs) and6.26 g/t (8.4 Mozs) on a 5PGE+Au grade basis. A measured resource hasalso been defined for the Merensky Reef, which contains 48.9Mt at anaverage 3PGE+Au grade of 2.53 g/t (3.98 Mozs.) and at 2.77 g/t (4.35Mozs) on a 5PGE+Au grade basis. The Company's emphasis has always beenon the evaluation of the PGM Resource in the UG2 reef at Spitzkop.Previously reported results from confirmatory drilling programs confirmthe high grade, platinum and rhodium rich nature of the UG2 atSpitzkop. With the dramatic increases in PGM prices and the positiveoutlook for PGM's, the Merensky resource is significant.
Amulti-disciplinary technical team has been appointed to finalize theengineering, mine planning, estimating and scheduling for the Spitzkopproject. Technical studies to date suggest that the project, which islocated adjacent to the existing Kennedy's Vale twin shaftinfrastructure, has the potential to produce approximately 200,000 ozPGMs (3PGE+Au) per annum, with a life of mine in excess of 20 years.Initial indications are that the operation could exploit both the UG2and Merensky reefs via decline shafts, and use mechanized off-reefdevelopment together with conventional stoping; this is similar to theproven mining method being applied at the Crocodile River Mineoperation.
The proposed trial mining at Spitzkop will involveunderground 'on-reef' development and test mining in both the UG2 andMerensky reefs. The trial mine includes decline access from surface inthe footwall of the UG2 and Merensky in order to access the reefsbeneath the weathered zone (approx. 20m). Test drives will be developedalong the strike of the reefs to evaluate footwall, hanging wall andreef development conditions for full scale mining in both reefs. Trialstopes will determine the most appropriate mining methods, evaluatereef dilution factors and obtain bulk samples for large scalemetallurgical testing and the results will be incorporated into theeconomic evaluation of the project prior to a full scale minedevelopment decision.
Such a trial mining program isconsidered to be the most appropriate way to evaluate actual miningconditions to be encountered at Spitzkop in order to conduct acomprehensive evaluation of the project and is consistent withdevelopment work undertaken on adjacent PGM deposits.
"Thedevelopment of Spitzkop will be another step in Eastplats' plan tobecome a mid tier PGM producer. As the UG2 at Spitzkop outcrops atsurface it makes sense to go underground and conduct bulk sampling andtest mining as part of our project development program," stated IanRozier, President and CEO of Eastern Platinum Limited.
The qualified person having prepared the contents of this news release is Mr. Ian Rozier, B.Sc.(Hons), M.Sc., P.Eng.
Total shares issued and outstanding: 671,312,052
Certain statements included herein constitute "forward-lookingstatements" within the meaning of applicable Canadian securitieslegislation. These forward-looking statements are based on certainassumptions by Eastplats and Barplats and as such are not a guaranteeof future performance. Actual results could differ materially fromthose expressed or implied in such forward-looking statements due tofactors such as general economic and market conditions, increased costsof production and a decline in metal prices. Eastplats is under noobligation to update or revise any forward-looking statements, whetheras a result of new information, future events or otherwise, except asrequired by applicable laws.
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