| Tue 8 Jul 2008, 15:59 | | WEZ - Wesizwe Platinum - Release Of Positive Bankable Feasibility Study ("BFS") |
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WEZ
WEZ
WEZ - Wesizwe Platinum - Release Of Positive Bankable Feasibility Study ("BFS")
For WBJV`S Core Project
WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2003/020161/06)
JSE code: WEZ & ISIN: ZAE000075859
(the "Company" or "Wesizwe")
RELEASE OF POSITIVE BANKABLE FEASIBILITY STUDY ("BFS") FOR WBJV`S CORE PROJECT
In line with Wesizwe`s stated strategy of logical consolidation of platinum
projects near and adjacent to its core Pilanesberg Project, in September 2007,
the Company acquired the entire issued share capital of Africa Wide Mineral
Prospecting and Exploration (Pty) Ltd. This transaction gave Wesizwe a 26%
interest in the Western Bushveld Joint Venture ("WBJV") with partners Anglo
Platinum Limited and Platinum Group Metals Limited ("PTM").
Results of the BFS for the WBJV`s core project (Project 1) were released
yesterday by PTM, the managing partner.
Highlights (using base case assumptions of three years trailing average metal
prices)
- Post tax Net Present Value ("NPV") at a real discount rate of 5% of R4,625
billion (R8/US$) or R1,202 billion attributable to Wesizwe
- Post tax Internal Rate of Return of 16.12 %
- Anticipated total underground mine life of 22 years
- Mine design includes the construction of mine and concentrator to produce
235,000 to 271,000 ounces of combined platinum, palladium, rhodium and gold
("4E") in concentrate per year
- Total capital cost for the mine and concentrator complex of R4.055 billion
including R506 million for self generation of power to the end of 2012
- BFS now under review with joint venture partners. A Final decision to
proceed will be taken in October 2008
Further detailed information on the WBJV core project BFS can be found on PTM`s
website - www.platinumgroupmetals.net
Comment
Mike Solomon, Chief Executive Officer of Wesizwe Platinum, said:
"The result of the Western Bushveld Joint Venture Bankable Feasibility Study
released today is yet another positive development for Wesizwe confirming the
inherent and ensuing value realised through the Africa Wide transaction.
Based on the information available, our 26% stake in the project represents a
base case post tax NPV of R1,2 billion and an additional 61,000 to 70,460 ounces
per annum of 4E attributable to Wesizwe shareholders. The attributable Project 1
resource to Wesizwe is 2,2 million ounces.
This adds significantly to Wesizwe`s overall value as we continue to pursue our
strategic imperative of regional consolidation around the Pilanesberg and
provides Wesziwe shareholders with exposure to a second world class PGM
development project"
Johannesburg
8 July 2008
ENQUIRIES
College Hill
Fred Cornet
Ashleigh Dubbelman
Tel: +27 (0) 11 447 3030
Wesizwe Platinum Limited
Tel: +27 (0) 11 994 4600
www.wesizwe.com
Date: 08/07/2008 15:59:25 Produced by the JSE SENS Department.
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