| Thu 4 Nov 2010, 15:09 | | EPS - Eastern Platinum Limited - Updates on new order mining rights power and |
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EPS
EPS
EPS - Eastern Platinum Limited - Updates on new order mining rights, power and
water supply for Eastern Limb Projects
EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA 2768551038
Share Code AIM: ELR ISIN: CA 2768551038
Share Code JSE: EPS ISIN: CA 2768551038
November 4, 2010
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
S&P TSX Composite Index
NEWS RELEASE
UPDATES ON NEW ORDER MINING RIGHTS,
POWER AND WATER SUPPLY FOR EASTERN LIMB PROJECTS
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats" or
the "Company") is pleased to provide an update on New Order Mining Rights,
power delivery and water supply arrangements for the development of the
Company`s mining projects on the Eastern Limb of the Bushveld Complex in South
Africa.
The New Order Mining Right for the Mareesburg project, which includes all
platinum group metals, base metals and chrome in the UG2 reef horizon, has
been granted to Lion`s Head Platinum (Pty) Ltd. (a subsidiary of Eastplats),
by the South African Department of Mineral Resources ("DMR") under the terms
of Section 22(1) of the Minerals and Petroleum Resources Development Act 2002.
The associated Environmental Management Programme ("EMP") was also approved at
the same time as the Mining Right was granted.
In accordance with the approved EMP and the Social and Labor Plan ("SLP")
accompanying the Mareesburg mining right, the development of the Mareesburg
and Spitzkop projects could generate approximately 1,600 jobs and directly
benefit the nearby communities of Lydenburg and Steelport. (The New Order
Mining Right to mine all platinum group metals, base metals and chrome was
granted to Spitzkop Platinum (Pty) Limited, a subsidiary of Eastplats, in
2009).
The planned development of the Mareesburg open-pit mine could result in an
increase in Eastplats` annual production to approximately 325,000 ounces in
2013 (see news release dated June 3, 2010). Under this plan, a 90,000 tpm
concentrator would be located on the Kennedy`s Vale site and the planned rapid
production ramp-up at Mareesburg would allow the concentrator to ramp up
quickly to full capacity immediately upon commissioning. To accommodate
future capacity increases, the plant at Kennedy`s Vale would 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.
Mareesburg would initially be an open-pit mining operation and consequently
require little power. A power line currently provides 800 KVA across the
Mareesburg property and this would be adequate to run administration and
workshop/maintenance facilities with any further power requirements to be
provided by on site diesel power generators.
The Company has already secured 3 MVA of power for the construction phase for
the concentrator at the Kennedy`s Vale site. With respect to permanent
operating power for the concentrator and for the Spitzkop mine, the Company
has applied for 40 MVA of installed capacity, of which 20 MVA would be
required for the initial 90,000 tpm plant. Eastplats has paid the necessary
fees to initiate the acquisition of power and Eskom has commenced the
engineering work.
Eastplats has water supply rights in place to support an 180,000 tpm mining
operation from the De Brochen Dam, and has the rights to participate in the De
Hoop water supply scheme that would allow for water supply to support a
further 100,000 tpm processing stream.
"The recent granting of New Order Mining Rights for Mareesburg and the
securing of construction power at Kennedy`s Vale along with our existing water
rights now provides us with all the third party support for us to begin the
phased development of our multiple properties on the Eastern Limb. This is in
line with our long term growth plan to significantly increase Eastplats`
production", stated Ian Rozier, President and CEO.
Eastplats will release its full third quarter results on Monday, November 15,
2010.
Total shares issued and outstanding - 683,179,000
For further information, please contact:
EASTERN PLATINUM LIMITED
Ian Rozier, President & C.E.O.
+1-604-685-6851 (tel)
+1-604-685-6493 (fax)
info@eastplats.com
www.eastplats.com
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Cautionary Statement on Forward-Looking Information
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. Such statements include
those about the commencement of development of the Eastern Limb projects and
future production levels. 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: 04/11/2010 15:09:01 Produced by the JSE SENS Department.
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