Aim-listed Sylvania Platinum CEO Jaco Prinsloo says results from successful optimisation studies carried out on the company’s exploration targets on the northern limb of the Bushveld Complex, in South Africa, demonstrate attractive projects with significant upside potential, despite these being evaluated using conservative parameters.

These results include an updated mineral resource estimate (MRE) and scoping study for the Volspruit project, which focussed solely on the Volspruit North Body, and an MRE and exploration results for the Far Northern Limb projects, which consist of the Aurora project containing the La Pucella target, and the Hacra project.

“While the current Volspruit scoping study economics do not meet the company’s internal investment criteria and would not currently trigger a formal investment decision, I believe the prefeasibility study that has already commenced will illustrate the significant upside that the inclusion of the rhodium resource and South Body material would contribute.

“From existing metallurgical data (non-Joint Ore Reserves Committee- (Jorc-) compliant), we know that rhodium could, for example, contribute approximately 5% to 6% additional ounces at no additional capital expenditure [and] demonstrates substantial additional value, which would significantly improve the attractiveness of the project,” Prinsloo points out.

He highlights that, of note for the Aurora project, is the presence of the near-surface T-Zone, similar to that previously encountered at depth by Platinum Group Metals on its Waterberg joint venture project.

“However, this newly discovered near-surface T-Zone suggests a lower cost and lower risk opportunity than typical deep level underground mining techniques,” Prinsloo adds.

The Volspruit project North Body Jorc MRE shows 14.87-million tonnes of platinum and palladium (2E) + gold, grading at 2.27 g/t; 1.08-million 2E + gold ounces; 19.47-million pounds of copper at a grade of 0.06%; and 55.79-million pounds of nickel at a grade of 0.18%.

The Volspruit North Body Jorc scoping study indicates a pre-tax net present value of $27.3-million (R464-million), excluding significant potential upside from rhodium contribution and South Body platinum group metals (PGMs) ounce inclusion currently being assessed; and a pre-tax internal rate of return of 17.9%.

The Aurora project La Pucella Jorc MRE shows 16.21-million tonnes of 2E + gold, grading at 2.63 g/t; and 1.37-million 2E + gold ounces.

The La Pucella Target area is a near-surface T-Zone discovery and currently covers just 12% of the combined Aurora project area.

The discovery of the T-Zone near surface indicates that this high-grade zone previously found at depth, has the potential to be mined using openpit mining methods.

A scoping level mining study is being carried out with results expected in early 2023. Mineralisation is known to continue at depth and with future additional drilling an additional underground MRE could be reported.

Future studies are aimed at improving analytical confidence to include Rh and base metals in the MRE that are currently at inferred level.

At the Hacra project, Sylvania highlights encouraging 2021 exploration results with various intersections indicating attractive grades of between 2.3 g/t and 7.4 g/t 2E + gold and a true intersection thickness from 3.4 m up to 11.9 m.

It is working towards a maiden MRE in early 2023.

NEXT STEPS

As part of its commitment to further improve the viability of its exploration assets at both the Volspruit and Far Northern Limb projects, and to further unlock economic potential from these owned and licensed assets, the company anticipates spending about R70-million ($4.4-million) during the 2023 financial year.

This is to be used to perform further resource optimisation and to undertake additional exploration drilling, and Sylvania will continue to apply the same study parameters as used in the initial investigations to the remaining target areas, to ensure future value is realised at its exploration assets.

“During full-year 2023, the company will continue to produce additional optimisation studies for the remaining target areas held under the company’s approved mining rights and that we deem to hold further value for Sylvania. These exploration activities will be internally funded and have already been included in the company’s announced cashflow planning for this current year.

“While the company continues to focus on delivering value from and growing its existing cash generating dump reprocessing operations, the optimisation of value from its exploration assets remains one of the important pillars of Sylvania Platinum’s growth strategy and a future value driver.

“With that in mind, we are proud to deliver these exploration results which I have no doubt will generate significant future value for the company and all of its stakeholders,” Prinsloo acclaims.