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
Mineral Resources and Energy Minister Gwede Mantashe has dismissed a series of appeals filed in 2021 against the granting of the Waterberg mining right, which was granted on January 28, 2021.

In his ruling, the Minister provided the regulatory reasons why every appeal was denied and also confirmed the Department of Mineral Resources and Energy’s assessment that Waterberg JV Resources has complied with black economic-empowerment requirements, and social and labour plan community consultation processes.

PTM reported earlier this month that its with Impala Platinum holdings and other partners has approved an in-principle $21-million preconstruction work programme.

The programme involves early infrastructure; derisking and project optimisation, including initial road access; water supply; a first-phase accommodation lodge; site construction power supply; and advancement of the Waterberg social and labour plan.

An initial budget of $2.5-million has been approved by the partners and will be spent by March 31, 2023.

PTM CEO Frank Hallam has said the early works programme will significantly derisk the future construction of the Waterberg project.

While the works programme is executed, PTM continues to seek a third-party concentrate offtake agreement for the Waterberg JV. Depending on the outcome, PTM will assess the potential of jointly establishing a new smelter and base metal refinery business with third-party investors to further process the concentrate produced by the mine.

PTM has also indicated that it plans to undertake an update to the 2019 Waterberg DFS, including a review of cutoff grades, mining methods, infrastructure plans, scheduling, concentrate offtake, dry stack tailings, costing and other potential revisions to the project’s financial model.

As a precursor to the DFS update, PTM plans to undertake an infill drilling programme near surface, which will cost about $1.2-million.

The programme will comprise 32 boreholes and the material recovered will predominately be assayed, and tested for its ability to be dry-stacked. Should it be possible to implement dry-stacked tailings, PTM has said that the mine’s water consumption can be reduced by between 40% and 50%.

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.