| Tue 12 Jan 2010, 15:29 | | EPS - Eastern Platinum Limited - Eastplats Proceeds With Development Of Crocette |
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EPS
EPS
EPS - Eastern Platinum Limited - Eastplats Proceeds With Development Of Crocette
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
January 12, 2010
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
NEWS RELEASE
EASTPLATS PROCEEDS WITH DEVELOPMENT OF CROCETTE
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") is
pleased to announce the reactivation of mine development at the Crocette Section
of the Crocodile River Mine ("CRM"). The Crocette Project offers attractive
economics as a result of recent increases in PGM prices combined with the
meaningful reductions in operating costs which have been achieved at CRM.
Orebody access at Crocette was initiated in 2008 from two portals which will be
reopened and developed to the UG2 reef. At full production the Crocette
Section is anticipated to deliver up to 40,000 tons of ore per month
(anticipated 50,000 opa PGM). This will enable CRM to reach its full production
target of 175,000 tpm (approx. 200,000 opa), in line with Eastplats` anticipated
growth profile for the mine. This target does not include any potential
production from the Kareespruit Section at CRM.
In a news release dated November 7th, 2008 the Company reported that the
development of Crocette was to be put on `care and maintenance` in response to
adverse market conditions while the Company took measures to increase production
from the Zandfontein and Maroelabult sections at CRM. These measures, which
have been successfully completed, include:
(a) The reequipping and recommissioning of the Number One shaft at Zandfontein
to open up new areas for mining has reduced the cost of moving mine
workers, materials, ore and waste.
(b) The upgrading and extension of the main ore conveyor at Maroelabult has
resulted in improved efficiencies and more reliable operations.
(c) The successful optimization of the chrome recovery circuit in the
concentrator has produced more profitable chrome products and reduced
chrome penalties in the PGM concentrate.
(d) Ongoing underground development at Zandfontein and Maroelabult to ensure
future mill feed tonnages.
These measures, as well as ongoing mine design and operating improvements, have
enabled the Company to continue as a low cost producer, conserve cash and
increase production throughout 2009.
Crocette is one of the few remaining undeveloped near-surface PGM projects on
the western limb of the Bushveld Complex that has immediate access to a
processing facility. Infill drilling has confirmed the continuity of the UG2 at
Crocette to a depth of 600m with a dip of 18, a reef width of 1.2m and an
estimated head grade of 4.1g/t (5PGE+Au). Open pit mining at Crocette is not an
option as the near-surface reef is highly oxidized which would result in poor
metal recoveries; this is a common feature of outcropping PGM reefs throughout
the Bushveld Complex. The New Order Mining Right for Crocette was granted in
March 2008 (see news release dated April 2, 2008).
A commitment to provide construction power for the project has been received
from Eskom but alternative guaranteed supplies are also being evaluated by
Eastplats.
Design work for the Spitzkop mine and concentrator continued in 2009 and an
updated cost estimate and schedule for the project is expected to be completed
in the first half of 2010.
"The re-start of Crocette marks another era of expansion for CRM and Eastplats`
operations and reflects our confidence in the PGM markets and in our ability to
operate profitably at current metal prices and at current exchange rates. We
look forward to further increases in production levels to offset current fixed
costs on the mine with no significant capital inputs other than for the
underground mine development. The re-start of mine development at Crocette
represents just one phase of future development plans for Eastplats production
growth." stated Ian Rozier.
The qualified person having prepared the contents of this news release is Mr.
Brian Montpellier, P.Eng.
Total shares issued and outstanding: 680,946,625
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 - Canaccord Adams Limited
Ryan Gaffney - Ryan.Gaffney@CanaccordAdams.com
+44 20 7050 6500
JSE SPONSOR - PSG Capital (Pty) Limited
Johan Fourie - johanf@psgcapital.com
+27 21 887 9602
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
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. All statements, other than statements of
historical fact, are forward-looking statements. The words "believe", "expect",
"anticipate", "contemplate", "target", "plan", "intends", "continue", "budget",
"estimate", "may", "will", "schedule" and similar expressions identify forward
looking statements. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable by the
Company, are inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in the forward-
looking statements. Such factors include, but are not limited to, fluctuations
in the currency markets such as Canadian dollar, South African Rand and U.S.
dollar, fluctuations in the prices of PGM and other commodities, changes in
government legislation, taxation, controls, regulations and political or
economic developments in Canada, the United States, South Africa, or Barbados or
other countries in which the Company carries or may carry on business in the
future, risks associated with mining or development activities, the speculative
nature of exploration and development, including the risk of obtaining necessary
licenses and permits, and quantities or grades of reserves. Many of these
uncertainties and contingencies can affect the Company`s actual results and
could cause actual results to differ materially from those expressed or implied
in any forward-looking statements made by, or on behalf of, the Company.
Readers are cautioned that forward-looking statements are not guarantees of
future performance. There can be no assurance that such statements will prove
to be accurate and actual results and future events could differ materially from
those acknowledged in such statements. Specific reference is made to the
Company`s most recent Annual Information Form on file with Canadian provincial
securities regulatory authorities for a discussion of some of the factors
underlying forward-looking statements.
The Company disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future events
or otherwise, except to the extent required by applicable laws.
Date: 12/01/2010 15:29:01 Produced by the JSE SENS Department.
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