JOHANNESBURG (miningweekly.com) – TSX- and NYSE-listed Platinum Group Metals’ (PTM’s) 49%-owned Waterberg Joint Venture (JV) project was advancing to the prefeasibility stage following positive independent preliminary economic assessment (PEA) results.

The Waterberg JV two-year construction period was planned to take place from 2016 to 2018 after which steady-state production of 655 000 oz/y of platinum, palladium and gold would be targeted.

"The Waterberg JV project stands out as an exceptional opportunity for the shallow production of safe, low-cost platinum, palladium and gold by fully mechanised mining methods using multiple decline access ramps,” PTM president Michael Jones said.

He added that the mines’ planned 655 000 oz/y production was significant in the global market for platinum-group elements.

Further, the PEA estimated the project’s peak funding to be R8.85-billion, which Jones said was “modest compared with the opportunity for large-scale participation in the platinum and palladium markets”.

In addition, the company saw a significant opportunity to expand the project’s resources and to improve the efficiency of the project in the prefeasibility stage.

PTM also added that key risks would be assessed during the prefeasibility stage, including smelting plans, water and power delivery and geotechnical work for mine design, along with normal increased resource, metallurgical and cost confidence levels.

Meanwhile, the project was expected to create about 2 200 new jobs at full production, and would have a positive effect on the local economy, PTM said.

“The mechanised nature of the proposed mining at Waterberg will rely on skilled, well-paid workers. Should the project proceed there will be a significant opportunity for training and transformation of the local economy. Consultation with the local rural population that has occurred before and during the prospecting work will continue during the feasibility stage,” PTM concluded.