Name of the Project
Waterberg platinum group metals project.

Location
About 85 km north of Mokopane, in Limpopo, South Africa.

Project Owner/s
Waterberg Joint Venture (JV) Resources, or Waterberg JV Co, a JV between Platinum Group Metals, or PTM (37.05%), Impala Platinum Holdings (Implats) (15%), Japan Oil, Gas and Metals National Corporation (12.195%), Hanwa Co (9.755%) and black economic-empowerment partner Mnombo Wethu Consultants (26%). As a result of PTM's 49.90% ownership in Mnombo, the company has an effective interest in the Waterberg JV of 50.02%.

Project Description
The 2019 definitive feasibility study (DFS) mine plan envisages production of 4.8-million tonnes of ore a year and 420 000 platinum, palladium rhodium and gold, or 4E, ounces a year in concentrate.

The mine will initially access the orebody using two sets of twin decline tunnels, with fully mechanised longhole stoping methods and paste backfill used for mining. Paste backfill allows for a high mining extraction ratio, as mining can be completed next to backfilled stopes without leaving internal pillars.

Maintaining safety and reliability are key mine design criteria. As a result of the scale of the orebody, bulk mining on 20 m to 40 m sublevels using large underground equipment, and conveyors for ore and waste transport, will provide high efficiency.

Potential Job Creation
The project will create about 1 100 new highly skilled jobs.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $982-million and an internal rate of return of 20.7%. This is based on the 2019 DFS prices of palladium $1 546, platinum $980, gold $1 548 and rhodium $5 036 ($/R:15).

Capital Expenditure
Capital expenditure is estimated at $874-million, including $87-million in contingencies. Peak project funding is estimated at $617-million, based on 2019 commodity prices and costs.

Latest Developments
PTM informed shareholders on July 14 that it was considering commercial alternatives for mine development, financing and concentrate offtake for the Waterberg project.

The company has confirmed that studies are under way to assess the economic feasibility of building a dedicated matte furnace to process Waterberg’s concentrate as an alternative to a traditional concentrate offtake arrangement.

PTM and technical representatives from the project’s joint venture JV partners – Implats, Mnombo Wethu Consultants, Hanwa Co,  and Japan Oil, Gas and Metals National Corporation – are working to advance the project to a financing and construction decision.

However, the decision depends on arrangements for project concentrate offtake or processing.

“Discussions with potential participating partners . . . [about] a possible matte furnace facility are in process. Parallel discussions are also under way with South African smelter operators considering concentrate offtake arrangements for the project,” PTM has confirmed.

PTM has spent $2.6-million on the Waterberg project in the nine months ended May 31, excluding JV partner reimbursements. The JV partners approved a $2.7-million budget for the 12 months to August 31.  

At May 31, $43-million in accumulated net costs had been capitalised to the project, with total expenditure on the property since the project’s inception from all investor sources amounting to $80-million.

Key Contracts, Suppliers and Consultants
Stantec Consulting International and DRA Projects SA (DFS).

Contact Details for Project Information
PTM, tel +27 11782 2186 or email info@platinumgroupmetals.net.