Name and Location
Garatau platinum project, Limpopo, South Africa.

Client
Nkwe Platinum.

Project Description
The optimised bankable feasibility study (BFS) on the project envisions the development of a 3.6-million-ton-a-year operation, producing about 330 000 oz/y of platinum over an initial 17-year mine-life.

Unlike the original BFS, the updated BFS takes into account only the Merensky reef and the value of the underlying upper group two (UG2) reef on the adjacent farm, De-Kom, which forms part of the project.

The Garatau project has a measured mineral resource of 14.2-million ounces of platinum, palladium, rhodium and gold  (3PGE+Au) and an inferred mineral resource of 9.1-million ounces of 3PGE+Au across the two properties, Garatouw and De Kom.

Whereas the previous BFS proposed twin vertical shafts in the centre of the orebody, sunk to a depth of 1 000 m, the optimised BFS proposes to construct a 5 m x 5 m early access ramp (EAR) from the surface to the depth of Merensky reef. Thereafter, a vertical shaft will be constructed from depth to surface using rapid raiseboring. After completion, the EAR and the vertical shaft will be available for the transport of ore material and personnel.

The BFS indicates that the EAR, with its modification, could be extended to provide later access to the UG2, with the potential to rapidly develop a second discrete vertical shaft to surface for the extraction of UG2 ore.

Value
The BFS estimates the funding required to develop the mine at R5.335-billion.

Duration
First production is expected in 2015 and steady-state production is expected in 2017.

Latest Developments
Nkwe Platinum has signed an agreement with China’s Zijin Mining to jointly develop the flagship Garatau project.

Under the terms of the agreement, Zijin, through a wholly owned subsidiary, will invest an estimated A$20-million in Nkwe through the placement of three-year convertible bonds. Subject to the adjustment of certain events, the bonds will be convertible into 200-million Nkwe shares at a price of 10c a share.

In exchange, Zijin will be granted exclusive rights to participate in Nkwe’s mining projects, including a right of first refusal to finance project development and receive offtake supply. The company’s subsidiary has also appointed an executive director to the Nkwe board.

During the project financing decision period, which has been capped at 18 months, Zijin will also be granted a right of first refusal to acquire Nkwe’s black economic-empowerment partner Genorah Resources’ shares in Nkwe, as well as the mining tenements forming part of Nkwe’s portfolio.

Key Contracts and Suppliers
DRA (optimised BFS).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Nkwe Platinum, tel +27 11 445 2161 or fax +27 11 445 2166.
DRA, tel +27 11 202 8600, fax +27 11 202 8807 or email dra@drasa.co.za.