| Fri 7 Nov 2008, 16:49 | | EPS - Eastern Platinum Limited - News Release |
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EPS
EPS
EPS - Eastern Platinum Limited - News Release
EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA2768551038
Share Code AIM: ELR ISIN: CA2768551038
Share Code JSE: EPS ISIN: CA2768551038
November 7, 2008
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
S&P TSX Composite Index
NEWS RELEASE
EASTPLATS TO INCREASE PRODUCTION IN 2009
BUT TO RESCHEDULE NEW PROJECTS
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats" or
the "Company") reports that as a result of the dramatic drop in the PGM metal
prices over the last three months and the associated reduction in operating
margins, the Company has re-evaluated its short term development plan.
Eastplats is committed to remaining a cost effective producer and over the short
to medium term will concentrate on growth projects that support this objective.
Accordingly, the Company will maintain near term focus on the optimization of
production from the Crocodile River Mine (CRM) complex and reschedule other
project developments in order to preserve existing cash resources.
Specific actions to be taken immediately include the following:
Western Limb - Crocodile River Mine
- The primary focus will be on optimizing production from the existing
Zandfontein and Maroelabult sections of the mine.
- The refit of the Number One shaft at Zandfontein is complete and the shaft
is operating. This complements the existing declines, opens up new areas
for mining and reduces the cost of moving mine workers, material, ore and
waste.
- Wherever possible, ongoing development work will be conducted using
Eastplats crews rather than third party contractors.
- Work will continue on the installation of backup power to enable operations
to continue during potential reductions in supply from Eskom.
- Work will continue on optimizing the chromite recovery circuit in the
concentrator to produce the more profitable chromite products.
- The main ore conveyor and some of the mining fleet at Maroelabult have been
replaced to support improved productivities through more reliable
operation.
- The Crocette section declines have been driven down to the UG2 reef. The
development of this section will be put on care and maintenance while the
Company focuses on increasing production from existing mining areas.
- Eastplats forecasts 140,000 ounces of production from CRM in 2009, up 17%
over 2008`s full-year estimate of 120,000 ounces.
Eastern Limb - Spitzkop, Kennedy`s Vale and Mareesburg
Most of the development on the Eastern Limb will be rescheduled until the PGM
market improves. Specific actions include the following:
- Design work for the Spitzkop mine and concentrator will continue in order
to produce an updated cost estimate and schedule for the project. This is
expected to be completed by the first quarter of 2009 (Q1 2009). Current
procurement activities will be put on hold.
- The feasibility study for the Mareesburg open pit continues and is expected
to be available by Q1 2009.
- The UG2 and Merensky declines at Spitzkop have been developed to the point
where they will be put on care and maintenance.
- The civil works underway for the development of the concentrator terrace at
Kennedy`s Vale will be put on hold.
"These actions will allow Eastplats to continue to be a low cost producer and
conserve cash. As a direct result of the extensive underground development
carried out at CRM over the past two years, we have the flexibility to enact
these measures and at the same time increase production. Our new development
projects, now rescheduled, can be maintained at very low cost and can be re-
activated quickly when the PGM market recovers," stated Ian Rozier, CEO of
Eastplats.
The qualified person having reviewed the operating disclosures presented in this
press release is Mr. Brian Montpellier, V.P. Project Development, P. Eng.
Total shares issued and outstanding: 680,526,421
For further information contact:
Investor Relations
Website: www.eastplats.com
Email: info@eastplats.com
Tel: 1-(604)-685-6851, Fax: 1-(604)-685-6493
NOMAD: JSE Sponsor:
Canaccord Adams Limited, London PSG Capital (Pty) Limited, South
Email: Ryan.Gaffney@canaccordadams.com Africa
Tel: +44 20 7050 6500 Email:anjem@psgcapital.com
Tel: +27 21 887 9602
Certain statements included herein constitute "forward-looking statements"
within the meaning of applicable Canadian securities legislation. These forward-
looking statements are based on certain assumptions by Eastplats and as such are
not a guarantee of future performance. Actual results could differ materially
from those expressed or implied in such forward-looking statements due to
factors such as general economic and market conditions, increased costs of
production and a decline in metal prices. Eastplats is under no obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by applicable laws.
Date: 07/11/2008 16:49:16 Produced by the JSE SENS Department.
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