| Tue 14 Aug 2007, 15:28 | | WEZ - Wesizwe - Drilling Results For The Six Month |
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WEZ
WEZ
WEZ - Wesizwe - Drilling Results For The Six Months Ended 30 June 2007
WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2003/020161/06)
JSE code: WEZ ISIN: ZAE000075859
("Wesizwe" or "the company")
Drilling results for the six months ended 30 June 2007
Drilling results up Wesizwe`s attributable resource by 19% to 8.954 million
ounces
- Latest resource estimates show total tonnage for Pilanesberg project up by
8.394 (11.4%) million tons from 73.704 in December 2006 to 82.099 at the
end of June 2007.
- Total PGE(4) ounces increased by 10.7 % to 13.470 million ounces from
12.165 million ounces in December 2006.
- Wesizwe attributable Measured, Indicated and Inferred resources total 8.954
million ounces (from 7.504 million ounces in December 2006) which is an
increase of 19.3%.
- Prill splits remain one of best in industry at 65.2% platinum, 26.2%
palladium, 4.6% rhodium and 4.0% gold for the Merensky reef.
- The prill split for the UG2 reef is 60.7% platinum, 27.8% palladium, 10.1%
rhodium and 0.7% gold.
- The overall weighted average grade for the Merensky reef is 5.86 grams per
ton and 4.49 grams per ton for the UG2 reef.
- Between end December 2006 and end June 2007, a total of 48,591 metres of
core were drilled in Phase III of the accelerated drilling programme.
Motherhole metres equalled 40,061 and deflection metres drilled were 8,529.
Says Mike Solomon, CEO, "Wesizwe remains delighted with the results as they
continue to substantially boost the project`s tangible value derived from the
Pre-feasibility Study. The results confirm a Total Mineral Resource of 13.470
million ounces, an increase of 10.3% over the December 2006 results which were
published in April 2007. More importantly Wesizwe`s attributable ounces have
increased by 19% to 8.954 million ounces.
Significantly, these attributable ounces do not include the 3.5 million ounces
that will be added to the Wesizwe resource inventory once the conditions
precedent have been met for the acquisition of Africa Wide Mineral Prospecting
(Pty) Ltd and its 26% in the neighbouring Western Bushveld Joint Venture.
The 6.244 million ounces in the Indicated and Measured categories provide the
project with the first 25 years of production. The project has reached the
point where the economic geology is definitively supporting the critical mass
for the viable mining entity described in the Pre-feasibility Study.
This in turn provides further support for the reverse engineering strategy put
in place at the outset of the project. Adherence to our delivery schedule
continues. The results provide the basis for the continued exploration programme
which will be used to further support the Bankable Feasibility Study.
At this stage there are no material concerns about the structural or economic
geology and confidence in the project`s ultimate viability continues.
Confirmation of the integrity of the structural geology is presently being
further interrogated with the 3D Geoseismic Survey which commenced in June 2007.
In addition, Wesizwe`s application for a mining right was accepted by the
Department of Minerals and Energy in July 2007.
It is important to appreciate that the project now has 93.2% of the original
ounce target of 6.7 million ounces set in January 2005 in the Indicated and
Measured categories (13.470 million ounces total contained by end June 2007)
with a total delivery 82.099 million tons (against the target of 47 million
tons). Of this, 8.954 million ounces are attributable to Wesizwe."
Exploration programme
The Pilanesberg Project in-fill drilling programme is well underway to increase
the confidence of the Merensky and UG2 Reef Mineral Resources from Inferred to
Indicated and from Indicated to Measured as per SAMREC Code (South African Code
for Reporting of Mineral Resources and Mineral Reserves).
Since the previous reporting period, a total of 48 591 metres of core have been
drilled (motherhole metres drilled: 40,061 and deflection metres drilled:
8,529). Fifty one motherholes have been completed as have 125 deflections.
During the reporting period 14 drills were deployed on the farm Ledig 909 JQ and
by the end of the reporting period there were 12 drills in the field.
Summary of results: Period under Review Prior Period (Sept
(Jan 2007 to June 2007) 2006 to Dec 2006)
Metres drilled: 48,591 16,667
Boreholes completed: 51 23
Deflections: 125 64
Drill rigs in 14 (12 at end June 2007) 11 (At end Dec 2006)
operation
The exploration programme in this reporting period has been focused on ground
underlaid by the normal Merensky Reef facies area that occurs mainly on
Frischgewaagd 96 JQ Portion 11 and Ledig 909 JQ Portions 1, 4, 5 and 6 on an
approximate 250m grid. Also now complete is the deflection drilling of the
boreholes in this area which had been a contributing factor in restricting the
attainment of Mineral Resources in some areas to the Indicated category.
The updated Mineral Resources for the Pilanesberg Project are stated in the
following table.
Ore Body Resource Tonnage PGE(4)
Type (M) (g/t)
Merensky Measured 4.539 5.70
Reef
Total Measured 4.539 5.70
Merensky Indicated 15.275 6.06
Reef
UG2 Reef Indicated 16.698 4.54
Total Indicated 31.972 5.26
Merensky Inferred 16.790 5.72
Reef
UG2 Reef Inferred 28.798 4.47
Total Inferred 45.587 4.93
An overall tonnage increase since December 2006 of 8.394 million tonne within
the Mineral Resource area has been identified. The application of geostatistics
has been applied to the drilling data and the kriging variances, block variances
and block estimation errors have been employed in the classification of the
Mineral Resources as well as facies boundary confidence. The overall Measured
and Indicated Mineral Resources has increased by 5.898 million tonne,
attributable to the Merensky Reef.
Drilling results
The table below reflects the summary results for the total estimated mineral
resources for the Pilanesberg Project at 30 June 2007.
Classification Ore Body Facies Resource Resource PGE PGE Width
Area (m2) Tonne (4) Moz (m)
(Mt) (g/t)*
Measured 915,938 4.539 5.70 0.832 1.53
Merensky 915,938 4.539 5.70 0.832 1.53
Normal 915,938 4.539 5.70 0.832 1.53
Indicated 6,155,156 31.972 5.26 5.412 1.47
Merensky 3,251,250 15.275 6.06 2.976 1.48
Normal 2,201,250 9.917 6.19 1.975 1.39
Single 1,050,000 5.357 5.81 1.001 1.65
Cromitite
UG2 2,903,906 16.698 4.54 2.436 1.46
Normal 1,586,250 8.418 4.44 1.201 1.38
Regional 1,317,656 8.280 4.64 1.235 1.71
Pothole
Inferred 9,438,281 45.587 4.93 7.226 1.37
Merensky 4,090,313 16.790 5.72 3.089 1.29
Normal 150,938 0.713 5.91 0.135 1.46
Single 794,531 3.677 5.34 0.631 1.50
Chromitite
Detached 2,776,406 10.384 5.60 1.868 1.15
Normal 368,438 2.015 7.00 0.454 1.74
Footwall
UG2 5,347,969 28.798 4.47 4.137 1.43
Normal 2,782,500 13.670 4.24 1.864 1.28
Regional 2,565,469 15.128 4.67 2.273 1.60
Pothole
All
Merensky All 8,257,500 36.604 5.86 6.897 1.39
UG2 All 8,251,875 45.495 4.49 6.573 1.44
All All 16,509,375 82.099 5.10 13.470 1.42
* Platinum Group Elements comprising: Platinum, palladium, rhodium and gold.
Competent Person`s Report
The abovementioned independent mineral resource estimates have been prepared in
accordance with the SAMREC Code and incorporate the drilling results for both
the Merensky and UG2 reefs on the listed farms. The Competent Person, Mr DR
Young, a director of Mineral Corporation Consultancy (Proprietary) Limited, has
issued a report updating their Competent Person`s Report issued on 5 November
2005.
Mr Young`s qualifications are BSc (Hons), FAusIMM, Pr Sci Nat and his business
address is: Homestead Office Park, 65 Homestead Avenue, Bryanston 2021.
Registered office: Second Floor, AMB Capital, 18 Fricker Road, Illovo 2196
Investor relations:
College Hill, Nandile Ngubentombi
enquiries: Telephone: +27 11 447 3030
Wesizwe Platinum Limited, Melanie Low
Telephone: +27 11 215 2375
Web site: http://www.wesizwe.com
Date: 14/08/2007 15:28:01 Produced by the JSE SENS Department.
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