Name and Location
Waterberg Joint Venture platinum project, Limpopo, South Africa.

Client
The Waterberg Joint Venture, comprising Platinum Group Metals (49%); Japan Oil, Gas & Metals National Corporation (37%); and empowerment partner Mnombo Wethu Consultants holds the balance.

Project Description
A preliminary economic assessment (PEA) on the project has announced positive results. The PEA is based on inferred resources estimated at 167-million tonnes grading 3.26 g/t platinum, palladium and gold (3E) – 0.98 g/t platinum, 1.97 g/t palladium and 0.32 g/t gold – in the T and F layers.

The mine plan in the PEA uses three decline clusters for access, owing to the shallow depth of the deposit. The shallow edge of the T layer is at 130 m vertical and the shallow edge of the F layer is at 220 m.

The planned mining method is all mechanised, including a combination of room-and-pillar mining on mineralised layers 3 m to 10 m thick and long-hole open stoping on layers 10 m to 60 m thick. The decline ramps for underground access are planned to be developed to the shallow edge of the T and F deposit layers. From there, development ramps are all to be within the deposit along an apparent dip angle. This development approach is possible because of the thickness of the deposit and because it lowers waste development tonnes and costs.

Using a standard flotation mill at steady state, the project is expected to produce 655 000 oz/y of 3E in concentrate, with copper and nickel as credits. The PEA relies on the previously reported preliminary metallurgical recovery estimates from testwork at SGS labs of 83% 3E on the F layer mineralisation and 88% 3E on the T layers. Other independent testwork has been completed, confirming either these recovery rates or higher rates, as well as indicating the ability to produce an attractive concentrate from the T and F mineralised material of more than 100 g/t 3E containing almost no chrome. Further work to confirm the concentrate recoveries and characteristics will be completed during the prefeasibility study stage. Co-mingling of the F and T materials does not appear to negatively affect recoveries in the initial testwork.

Value
Peak funding for the mine is estimated at R8.85-billion.

Duration
A two-year construction period from 2016 to 2018 is planned.

Latest Developments
WorleyParsons, which completed the PEA, recommends that the Waterberg Joint Venture proceed to the prefeasibility stage.

The Waterberg Joint Venture will consider the plan and budget ahead.

A programme of infill drilling, rock mechanics and metallurgical studies, and other engineering and costing estimates, will be planned by Platinum Group Metals, the operator of the Waterberg Joint Venture, for 2014.

Detailed work on the prefeasibility work will start in the near term and budgets and plans of the Waterberg Joint Venture will be provided shortly.

Platinum Group Metals is drilling with ten machines adjacent to the Waterberg Joint Venture to expand the Waterberg deposit onto the Waterberg Extension prospecting rights, held with an effective interest of 87% by Platinum Group Metals. Further drill results will be provided in the weeks ahead.

Key Contracts and Suppliers
WorleyParsons (PEA).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Platinum Group Metals, tel +27 11 782 2186, +27 11 782 4338 or
email info@platinumgroupmetals.net.
Japan Oil, Gas & Metals National Corporation public relations division, tel +81 3 6758 8106.
Worley Parsons, tel +27 11 218 3000 or fax +27 11 218 3100.