Name of the Project
Waterberg project.

Location
Limpopo, South Africa.

Project Owner/s
As of November 30, 2025, Waterberg is owned by Platinum Group Metals (PTM), with 37.32%; Mnombo Wethu Consultants (26%); HJ Platinum Metals (21.95%); and Impala Platinum (Implats), with14.7%. In turn, PTM holds a further 12.97% direct interest in the Waterberg project through a 49.9% interest in Mnombo.

Project Description
An independent definitive feasibility study (2024 DFS) has updated the original positive results of the independent DFS published in September 2019 (2019 DFS) for a safe, large-scale, shallow, decline-accessible and mechanised platinum, palladium, rhodium and gold (4E) mine. 

Proven and probable mineral reserves have increased by 20% to 23.41-million ounces 4E (246.2-million tonnes at an average grade of 2.96 g/t 4E, 0.08% copper, and 0.17% nickel) as at August 31, 2024. 

The life-of-mine (LoM) has increased from 45 years in the 2019 DFS to 54 years in the 2024 DFS.

The 2024 DFS mine plan models steady-state production at 4.8-million tonnes of ore a year and an LoM average of 353 208 oz/y 4E in concentrate, versus an LoM average of 390 796 oz/y 4E in concentrate in the 2019 DFS, when calculated in the same manner.

Maximum production is estimated at 432 950 oz/y 4E in concentrate in the 2024 DFS. The mine initially accesses the F-Central Zone orebody using a single set of twin decline tunnels (service and conveyor declines) with mining of 400 000 t a month using fully mechanised longhole stoping methods. 

The Central-F steady-state ore-to-waste ratio in the 2024 DFS is a favourable 14.8%, and about 47% of waste rock will be placed underground as backfill, with the balance to be trucked or conveyed to surface. Ore will be mucked to one of several underground rock breakers, from where it will be sized and then transported to surface by conveyors. 

Paste backfill will be used, allowing for a high mining extraction ratio, as mining can be completed next to backfilled stopes with few internal pillars.

After about 26 years of mining, once production in the Central Complex starts to ramp down, the T-Zone and F-South Zones are scheduled for access by development of twin drives from the F-Central Zone infrastructure. Mining is to continue using fully mechanised longhole stoping methods and paste backfill.

As in the 2019 DFS, a separate boxcut and portal to access the North Complex, with twin declines, is also scheduled later in the mine plan. Once established, the South Complex (100 000 t a month) and North Complex (300 000 t a month), are scheduled to ramp up to maintain 400 000 t a month production for the balance of the LoM.

The North Complex mine design and grade profile is unchanged from the 2019 DFS.

Metallurgical recovery and smelter assumptions are based on the plant designs, metallurgical recoveries and costing on a standard South African flotation mill-float-mill-float circuit.

Potential Job Creation
Two thousand jobs are expected to be created during construction and 1 425 permanent jobs as steady-state mining is achieved.

Net Present Value/Internal Rate of Return
The 2024 DFS shows a robust after-tax net present value, at an 8% real discount rate, of R11.56-billion and an internal rate of return of 14.2% using average long-term consensus metal prices as of May 2024.

Payback from first production is estimated at 5.8 years.

Capital Expenditure
The total capital expenditure (capex) in the 2024 DFS is estimated at R18.86-billion, including 8.5% for contingencies, and peak capital is estimated at R15.43-billion.

Planned Start/End Date
First production is forecasted for September 2029. Ramp-up to steady state is expected by May 2032.

Latest Developments
PTM's primary business objective remains to advance the project to a development and construction decision.

The company has advised that about half of a $21-million preconstruction programme remains to be completed on site, including work on initial road access, water supply, a first-phase accommodation lodge, construction power supply and a social and labour plan (SLP).

Remaining components are being undertaken in phases as incremental budgets are approved. The “Stage 6 budget” allows for the continuation of this work during the period to August 31 this year.

Ideally, arrangements for project concentrate offtake or processing will be in place before a construction decision is made, PTM has stated.

The company and its joint venture partners are assessing commercial alternatives for mine development financing and concentrate offtake.

As part of investigating smelting and refining options for base metals, PTM has engaged with all of South Africa’s integrated producers, including Implats, to negotiate formal concentrate offtake agreements for the project.  

Alternatively, PTM has studied and proposed the establishment of smelter and base metal refinery facilities in either Saudi Arabia or South Africa.

“Before any processing of materials in Saudi Arabia could occur, however, South African government authorisation for the export of concentrate or matte would be required, and such approval has been requested,” PTM has indicated. Government officials have, however, communicated their preference that beneficiation occur in South Africa.

PTM is, therefore, also investigating opportunities to collaborate and co-invest with smaller furnace operators in South Africa who are interested in modifying and expanding their existing operations so that the efficient processing of Waterberg concentrate can be undertaken.

In such a scenario, the Waterberg project could be developed in stages so that smelting capacity could also be developed in stages.

The base case for mine development in the updated definitive feasibility study (DFS) is focused on lower-cost, bulk mining of F-Zone material from the F-Central deposit, followed by later mining from the T-Zone.

Although no decision has been made to alter the base case scenario amid the current price and outlook for gold, one concept being investigated is to start with staged development at the Waterberg project, first with decline development into the T-Zone, followed by smaller-scale T-Zone mining, and then later expansion into the F-Central deposit at the scale planned in the Waterberg DFS.

Compared with F-Central ore, proven and probable reserves for the T-Zone have a more favourable split of platinum-group metals.

The F-Central deposit, with true mining widths (hanging wall to footwall) of up to 107 m, and with about 87% of production planned from mining widths of more than 15 m, is very amenable to low-cost bulk mining.

The T-Zone, with about 92% of production planned from mining widths between 2.4 m and 15 m, and 8% from areas up to 20 m thick, also allows for bulk mining, albeit at a higher cost per tonne, compared to the F-Central deposit.

At current metal prices, increased revenue per tonne from mining the T-Zone would more than offset higher mining costs and may allow for a lower capital expenditure and a staged development approach.

PTM has confirmed that in-house studies are examining the financial impact of deferring capital for power lines, paste backfill, milling capacity and underground conveyors, while operating a T-Zone mine first before using free cash flow to then develop a second stage F-Central mine.

T-Zone ore and waste can be trucked to surface for processing during initial mining stages, allowing for a shortened ore build-up period and a reduced capital footprint in underground development and other underground infrastructure requirements.

Meanwhile, the company continues to work closely with regional and local communities and their leadership on mine development plans to achieve optimal outcomes and best value for all stakeholders.

A new five-year SLP, starting this year, has been developed with community input and submitted to government for review and approval.

PTM also continues to advance an initiative through Lion Battery Technologies using platinum and palladium in lithium battery technologies, in collaboration with an affiliate of Valterra Platinum and Florida International University.

PTM and Valterra are assessing progress to date and potential next steps towards the commercialisation and promulgation of the developed technology.

Key Contracts, Suppliers and Consultants
Stantec Consulting International and DRA Projects (independent definitive feasibility); and Fraser McGill (engineering oversight and project management).

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