The Northern Miner, 4/25/2008
New resource for Platinum Group
Platinum Group Metals (PTM-T, PLG-X) picked a good time to release its first resource for one of the projects on its joint ventured Western Bushveld property in South Africa .
With the metal trading in the US$2,000 per oz. range, and many analysts predicting sustained high prices due to unfaltering demand in the automotive industry, Platinum Group saw its share price jump by nearly 16% or 34¢ on 62,000 shares midday in Toronto on Apr. 25.
Platinum was trading for US$1,966.00 per oz. in London on the day.
The uptick in its stock price came after announcing it had added 1.9 million ounces of platinum group elements in the inferred category at Western Bushveld . Platinum Group holds a 37% interest in the joint venture – which is composed of project 1, 2 and 3 and is the operator of projects 1 and 3.
The joint venture is comprised of Platinum Group (37%), Anglo Platinum (AMS-J) (37%) and Wesizwe Platinum (WEZ-J) (26%).
The new inferred resource estimate is from Project 3 and came in at 10.17 million tonnes, grading a combined 5.81 grams per tonne of platinum group elements for 1.9 million total ounces.
The resource was drawn from two regions: the Merensky Reef and the Upper Group Seam Number 2 Chromitite.
Platinum group metals in the Merensky Reef breakdown as 64% platinum, 27% palladium, 4% rhodium and 5% gold, while Upper Group Seam number 2 breakdown as 62% platinum, 28% palladium, 9% rhodium and 1% gold.
Mineralization begins between 450 and 500 metres and the company says its grades and platinum ratios are similar to the ratios of the Project 1 and Project 2 -- which are located on the same layers of the reef.
As for the progress of Projects 1 and 2, Platinum Group says a feasibility study for project one is due out in June of this year and a revised measured and indicated resources was announced earlier in the week for Project 2.
Project 2 now has a measured resource of 4.5 million tonnes averaging 3.67 grams per tonne platinum, 1.54 grams palladium, 0.27 grams rhodium and 0.22 grams gold. Indicated resources came in at 25.1 million tonnes with an overall average grade of 5.2 grams per tonne of platinum group elements for 4.2 million ounces.
Platinum Group holds a 37% stake in Project 1 and is the operator, while it holds an 18.5% stake in Project 2 and Wesizwe is the operator.
With all three projects now having a resource estimate, the companies now have are looking towards engineering and further exploration programs – which Platinum Group says slated to be finished over the next few months.
"The next phase of our work will focus around ensuring the marketplace understands our value and growing from there," president and chief executive Michael Jones said in a prepared statement.
While all estimates at the project are to South African standards, Platinum Group says it plans to also complete a National Instrument 43-101 compliant resource on the project in the future, although no specific time-frame was given.
Platinum Group formed in 2000 and has offices in Vancouver and Johannesburg , South Africa .