Name of the Project
Maseve platinum mine (formerly Western Bushveld Joint Venture Project 1).

Location
The Maseve platinum mine is located about 35 km from Rustenburg, in North West, South Africa.

Client
South Africa’s Department of Mineral Resources (DMR) has granted consent in terms of Section 11 of the Mineral and Petroleum Resources Development Act for the transfer of the entire issued share capital of Maseve Investments 11, the holding company of the Maseve mine, to Royal Bafokeng Platinum (RBPlat).

With the approval, all conditions precedent to the completion of Platinum Group Metals’ (PTM’s) sale of Maseve to RBPlat have now been met.

Project Description
Maseve comprises projects 1, 2 and 3.

The mine plan for Project 1 was revised in July 2015, with the new plan envisaging the construction of a platinum mine and a concentrator to produce between 234 000 oz/y and 300 000 oz/y of combined platinum, palladium, rhodium and gold (4E) in concentrate over a 22-year mine life.

The project will use a twin decline system to access the underground workings. Men, material and rock will initially be transported by trackless mobile machinery during the development phase. At steady-state production, men and rock will be transported by chairlift and conveyor systems respectively.

Mining methods have been adapted from the updated feasibility study to include geological, geotechnical, engineering and timing modifications. Maseve will be operated as a trackless development (access development is off reef and production development is on reef) and a partially conventional, hybrid and bord-and-pillar mechanised mine using diesel mobile mining equipment. The overall on-reef/hand-held methods applied in the conventional and hybrid mining methods have not changed significantly from the conventional methods described in the previous study. The thicker reef (partially owing to the lower cutoff grade and additional drilling information) and a deliberate drive towards a higher degree of mechanisation allows for a bord-and-pillar mining method to be applied in the deeper, shallower-dipping areas of the mine.

The mine design is focused on reducing waste footwall development by replacing most of the previously footwall-located off-reef production development in the earlier design with on-reef production development. This accommodates the trackless mining method approach and delivers a faster run-of-mine production build-up.

The concentrator has been designed and recosted to treat 165 000 t/m from 145 000 t/m initially.

The design offers flexibility to treat a blend of Merensky and upper group two reefs at a predetermined ratio. The Merensky reef is the target of initial mining. The mining ramp-up to steady-state production of 165 000 t/m is over a three-year period.

Construction of the concentrator will be undertaken in two phases, initially with a mill float (MF1) circuit during the ramp-up period. The completion of the mill-float-mill float circuit will be decided only after reviewing the mining production ramp-up in 2017.

The MF1 circuit will treat between 80 000 t/m and 115 000 t/m at a grind of just over 60% passing 75 μm.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project's independent feasibility model developed a post-tax net present value of $431-million at a 5% discount rate.

Value
Not stated.

Duration
Formal construction of Maseve began in 2011 and the mine was officially commissioned in 2016; it is now in the ramp-up phase.

Latest Developments
The sale of the Maseve mine will enable PTM to reduce debt and focus on its large-scale, Waterberg palladium discovery. 

“RBPlat will be able to preserve jobs and combine Maseve with its adjacent operations,” PTM CEO Michael Jones has said.

PTM and RBPlat first announced the transaction in September last year, with RBPlat CEO Steve Phiri stating at the time that the Maseve mine, which borders its Styldrift I project, would provide RBPlat with immediate access to an operational concentrator to treat Styldrift I ore.

He added that the transaction would also provide RBPlat with early access to its Frischgewaagd orebody at the Styldrift mine.

Key Contracts and Suppliers
Société Generale, Barclays Bank, Absa Capital, Standard Bank of South Africa and Caterpillar Financial (lead finance arrangers); Turnberry Projects (prefeasibility study and overall feasibility study); Wardrop Engineering (decline access); GRD Minproc (concentrator design); Grinaker-LTA Mining (vertical shaft design); Golder Associates Africa and Oryx Environmental (public consultation and environmental permitting work); DRA Mining (engineering, procurement and construction management) and JIC Mining Services (underground decline tunnels), Redpath South Africa (mining contractor).

On Budget and on Time?
Not stated.

Contact Details for Project Information
PTM investor and media enquiries, tel +1 604 899 5450, fax +1 604 484 4710 or email info@platinumgroupmetals.net.
RBPlat executive: corporate affairs Mpueleng Pooe, tel +27 10 590 4515 or email mpueleng@bafokengplatinum.co.za, or investor relations manager Lindiwe Montshiwagae, tel +27 10 590 4517 or email lindiwe@bafokengplatinum.co.za.