Drilling permit Platinum Group moves drills to Waterberg
Platinum Group Metals Ltd (2) (C:PTM)
Shares Issued 402,759,542
Last Close 10/1/2013 $1.04
Wednesday October 02 2013 - News Release
Mr. R. Michael Jones reports
PLATINUM GROUP METALS ANNOUNCES THE START OF NEW EXPLORATION ON THE WATERBERG EXTENSION PROSPECTING RIGHTS
The Department of Mineral Resources of South Africa (the DMR) has granted Platinum Group Metals Ltd. prospecting rights and consent for prospecting to commence on the Waterberg extension rights covering approximately 530 square kilometres immediately adjacent and north of the newly discovered 17.5-million-inferred-ounce Waterberg platinum and palladium deposit (167 million tonnes grading 3.26 grams per tonne of platinum, palladium and gold announced Sept. 3, 2013, and detailed below).
A total of 7 drills have been mobilized today to commence drilling targeting the potential extension of the Bushveld Complex and the Waterberg Platinum deposit by drilling holes spaced 1 kilometer or more apart over approximately 20 kilometers.
The Company holds an effective 87% interest in the Waterberg Extension Prospecting Rights. The Extension Rights adjoin immediately to the north of the Waterberg Joint Venture where the Company holds an effective 49.9% interest with JOGMEC, the Japanese State Company, and a private empowerment partner holding the balance.
Recent detailed airborne gravity and magnetic surveys completed by the Company over the known deposit and the Extension Permits provide signatures that clearly correlate to the shallow edge of the Waterberg deposit and provide obvious shallow targets along strike from the current northern edge of the drilled off deposit.
Background
A new portion of the Bushveld Complex was discovered in November 2011 off the north end of the known Complex by the Company and their joint venture partners including JOGMEC. The initial deposit contains new mineralized layers within the named the "T" and "F" Zones that are shallow, tabular and cover 5.5 kilometres of strike length. The deposit was not previously found as a result of a thin layer of cover rock covering the deposit area.
The initial deposit is limited to the north by the joint venture boundary. Through successful drilling of approximately 130,000 meters of core in 111 boreholes, the deposit has grown from September 2012: 6.2M ozs (3E) inferred to February 2013: 10.1M ozs (3E) inferred to September 2013: 17.52M ozs (3E) inferred. (See details in the Sept 3, 2013 Press Release and reports at www.sedar.com including risk factors and caution to all investors on Inferred resources).
A preliminary economic assessment on the Waterberg Platinum deposit is underway by Worley Parson TWP, an experienced South African mine development and engineering firm, with the results expected in December 2013. The shallowest edge of the Waterberg deposit is at 130m deep.
In early 2012, the Company recognized the potential regional significance of the new discovery and applied for a large area of potential strike extension on its own, with its private South African empowerment partner. In addition to the exploration drilling to date at Waterberg, considerable academic work with the assistance of the University of the Witwatersrand has been completed and this work has confirmed the initial interpretation that the Waterberg deposit is hosted in in a new part of the Bushveld Complex in a new deposit setting, under shallow cover rock.
Detailed airborne differential gravity and magnetic surveys along with ground follow-up calibrated on the known Waterberg deposit are being used to target the drilling on the Extension Permits. Additional Prospecting Permits outside of the currently targeted strike line are in process.