| Thu 3 Jun 2010, 14:24 | | 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
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
S&P TSX Composite Index
EASTPLATS EASTERN LIMB DEVELOPMENT PLAN
Mr. Ian Rozier, President and CEO of Eastern Platinum Ltd ("Eastplats" or the
"Company") is pleased to report on the Company`s development plan for its PGM
assets on the eastern limb of the Bushveld Complex in South Africa. Once fully
implemented, annual group production has the potential to increase to over
600,000 ounces per annum ("opa"), with eastern limb production alone
contributing approximately 400,000 ounces.
CRM Update
Ongoing underground development at CRM`s Crocette underground mine is
progressing as planned and the Company is currently on track to increase
production to 210,000 opa from existing operations at CRM by the end of 2013.
Additional expansion opportunities exist at the Crocodile River Mine complex
(CRM) on the western limb with the potential future development of the
Kareespruit underground mine.
Development Plan for Eastern Limb Projects
An increase in annual production to 325,000 opa will be achieved by developing
the Mareesburg open-pit mine and building a new 90,000 tonne per month
concentrator to be located on the Kennedy`s Vale site. As the Mareesburg open-
pit is depleted, the production level from the eastern limb will be supplemented
and increased to 135,000 opa with the development of the Spitzkop underground
mine. Additional future production of 30,000 opa will be available from the
development of the Mareesburg underground mine, with the De Goedegevagting
("DGV") and Kennedy`s Vale deposits each having the potential to produce an
additional 120,000 opa of PGM.
Eastplats plans to take a phased approach to development of its eastern limb
projects as this will mitigate the risks associated with multiple new mines and
a new processing facility being under construction at the same time, and
optimizing capital requirements. Should market conditions permit, the Company
has the flexibility to immediately initiate the proposed production build-up at
the Spitzkop, Mareesburg, DGV and Kennedy`s Vale underground mines after the
construction of the Kennedy`s Vale concentrator is complete.
Phase 1 - Mareesburg
Phase 1 will be the development of the Mareesburg open-pit mine to feed a 90,000
tpm processing plant to be built at Kennedy`s Vale. The planned production ramp
up from the open pit will be rapid to allow the mill to operate at full capacity
from commissioning. To accommodate potential future capacity increases, the
plant will include the civil and other surface infrastructure work required for
an additional 90,000 tpm processing stream and appropriate tailings facility
infrastructure to process up to 180,000 tpm of ore.
The capital cost for Phase 1 is estimated to be US$227 million and will produce
approximately 115,000 opa of PGM. Phase 1 build out will take approximately 18
months from approval to proceed and will have a five year mine life, during
which time the Spitzkop mine will be developed. The Phase 1 capital cost
estimate includes the cost of electrical infrastructure so that Eskom can
guarantee the provision of sufficient power for the processing plant at
Kennedy`s Vale to handle the mining and processing of up to 180,000 tpm of ore.
A number of financing options for Phase 1 are currently being considered and the
Company expects to provide an update in the second half of 2010.
Phase 2 - Spitzkop
Phase 2 will be the construction of the Spitzkop mine to supplement and
subsequently replace the Mareesburg open-pit production. The capital cost for
Phase 2 is estimated to be approximately US$98 million.
Phase 3 - Mareesburg and DGV underground mines
Phase 3 entails the development of the underground mines at Mareesburg and DGV,
which has a measured resource in the UG2 reef alone containing 4.8 million PGM
ounces, with grades of 5.2 g/t 4E.
Phase 4 - Kennedy`s Vale
Phase 4 will be the development of the Kennedy`s Vale mine where two 1,000m
vertical shafts are already in place.
Financing options for Phase 2, 3 and 4 will be dependent upon the prevailing
market conditions, future metal prices, foreign exchange rates and the revenues
generated from CRM and Phase 1 operations.
"Our multiple properties on the eastern limb provide us with several options for
further production expansion depending on market conditions. We have balanced
our risks through this phased approach which in our view is both rational and
achievable, and we are confident that we can execute this growth plan and
deliver value to our shareholders. Phase 1 alone will increase our production by
over 100% from our 2009 production level." stated Ian Rozier, President and CEO.
The qualified person having prepared the contents of this news release is Mr.
Brian Montpellier, P. Eng.
Total shares issued and outstanding: 682,911,198
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:
Ryan Gaffney / Ryan Cohen
Canaccord Genuity Limited, London
Email: rgaffney@canaccordgenuity.com / rcohen@canaccordgenuity.com
Tel: +44 20 7050 6500
JSE SPONSOR:
Johan Fourie
PSG Capital (Pty) Limited
Email: johanf@psgcapital.com
Tel: +27 21 887 9602
June 3, 2010
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. 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: 03/06/2010 14:24:01 Produced by the JSE SENS Department.
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