| Tue 21 Dec 2010, 10:20 | | EPS - Eastern Platinum Limited - Final updated Technical Reports filed on |
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EPS
EPS
EPS - Eastern Platinum Limited - Final updated Technical Reports filed on
SEDAR and clarification 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
December 20, 2010
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
S&P TSX Composite Index
NEWS RELEASE
FINAL UPDATED TECHNICAL REPORTS FILED ON SEDAR AND CLARIFICATION NEWS RELEASE
Eastern Platinum Limited (the "Company" or "Eastplats") reports that it has
filed the following final Technical Reports on SEDAR in connection with the
Company`s short form prospectus offering:
- "Technical Report Update on the Crocodile River Mine, Eastern Platinum,
North West Province, South Africa";
- "Technical Report Update on the Mareesburg Platinum Project Limpopo"; and
- "Technical Report for the Kennedy`s Vale Project".
In connection with the filings, the Company is pleased to provide a statement
of current resources and reserves supported by the report on the Crocodile
River Mine ("CRM"), and summaries of the results as reported in updated
reports on the Mareesburg and Kennedy`s Vale/Spitzkop projects.
The Company also wishes to clarify certain of its prior disclosure relating to
its Kennedy`s Vale/Spitzkop project.
CROCODILE RIVER MINE
Resources and reserves as reported in the Technical Report update are provided
in the following tables. The resources are effective as of May 30, 2009. The
reserves are effective as of November 30, 2010.
Table 1: Classified Resources - CRM
Resource Tonnes Metal Concentration Contained Metal
Area
4E Pt Pd Rh Au 4E
(g/t) (g/t) (g/t) (g/t) (g/t)
(Kg) (Oz)
Measured
Crocette 2,806,950 3.78 2.40 0.95 0.39 0.02 10,599 340,772
Maroelabul 614,442 3.98 2.51 1.02 0.42 0.02 2,443 78,558
t
ZF above 9 1,619,995 4.15 2.60 1.09 0.43 0.03 6,726 216,232
level
ZF below 9 - - - - - - - -
level
Total 5,041,387 3.92 2.48 1.00 0.41 0.02 19,768 635,562
Indicated
Crocette 2,541,629 3.81 2.42 0.96 0.40 0.02 9,688 311,492
Maroelabul 2,587,973 3.90 2.47 0.99 0.41 0.02 10,094 324,523
t
ZF above 9 22,435,194 4.02 2.53 1.04 0.42 0.02 90,274 2,902,394
level
ZF below 9 8,524,977 4.22 2.64 1.11 0.44 0.03 36,002 1,157,501
level
Total 36,089,773 4.05 2.54 1.05 0.42 0.02 146,059 4,695,910
Total Measured and Indicated
Crocette 5,348,579 3.79 2.41 0.95 0.40 0.02 20,288 652,264
Maroelabul 3,202,415 3.91 2.48 1.00 0.41 0.02 12,537 403,081
t
ZF above 9 24,055,189 4.03 2.54 1.04 0.42 0.02 97,000 3,118,626
level
ZF below 9 8,524,977 4.22 2.64 1.11 0.44 0.03 36,002 1,157,501
level
Total 41,131,160 4.03 2.54 1.04 0.42 0.02 165,827 5,331,472
Inferred
Crocette 826,471 3.84 2.44 0.97 0.40 0.02 3,173 102,005
Maroelabul - - - - - - - -
t
ZF above 9 2,234,991 4.06 2.55 1.05 0.42 0.02 9,081 291,949
level
ZF below 9 19,007,813 4.09 2.57 1.06 0.43 0.03 77,780 2,500,690
level
Total 22,069,275 4.08 2.56 1.06 0.43 0.03 90,033 2,894,644
Inferred
Table 2: Classified Reserves - CRM
Reserve Tonnes Metal Concentration Contained Metal
Area
4E Pt Pd Rh Au 4E
(g/t) (g/t) (g/t) (g/t) (g/t)
(Kg) (Oz)
Proven
Crocette - - - - - - - -
Maroelabu 132,000 3.91 2.42 1.06 0.4 0.04 515 16,600
lt
Zandfonte 842,000 4.08 2.53 1.10 0.4 0.04 3,435 110,400
in
Total 974,000 4.06 2.52 1.09 0.4 0.04 3,950 127,000
Proven
Probable
Crocette 3,530,000 3.78 2.41 0.95 0.4 0.02 13,340 102,005
Maroelabu 2,173,000 3.91 2.48 1.00 0.4 0.02 8,487 272,900
lt
Zandfonte 22,748,000 4.08 2.56 1.06 0.4 0.03 92,896 2,986,600
in
Total 28,451,000 4.03 2.54 1.04 0.4 0.02 114,723 3,688,400
Probable
Total 29,425,000 4.03 2.54 1.04 0.42 0.03 118,673 3,815,400
Full details of the methodology used in the estimation of reserves and
resources, along with details of the mining operations at CRM are provided in
the Technical Report filed on SEDAR.
MAREESBURG
Revised resource and reserve estimates were prepared for the UG2 reef on
Mareesburg as part of the economic analysis for the project. The Resource
estimate is shown in Table 3 below.
Table 3: Classified Resources - Mareesburg
Tonnes Grade 4E Contained 4E Cu Ni
(g/t) (ounces)
Measured 8,940,000 5.26 1.51 million .035% .082%
Resources
Indicated 6,950,000 2.19 0.49 million .015% .056%
Resources
Total M&I 15,890,000 3.92 2.00 million .026% .070%
Resources
This Resource estimate conforms to the requirements of NI 43-101 and includes
the Probable Reserves outlined in Table 4 below.
Table 4: Classified Reserves - Mareesburg
Tonnes Grade (4E) 4E
(g/t) (Ounces)
Probable Reserve 4,557,810 4.0 586,213
Eastplats proposes to mine the UG2 reef by open pit mining methods.
The mined reef material would be processed in a concentrator to be built on
land currently owned by Eastplats in the Steelpoort valley, some 30 km away
from Mareesburg. An all-weather road connects the two sites. The concentrator
is planned to process 90,000 tpm of feed.
Metallurgical testing confirms that the UG2 reef at the Mareesburg deposit is
amenable to standard concentrating processes for UG2 material and that a
saleable grade concentrate should be produced.
Concentrator recoveries are estimated to be in the order of 80%. Initial
process test work indicates that a saleable concentrate containing
approximately 200 g/t of 6E PGMs should be achievable. The concentrator should
also produce a by-product chromite concentrate which should also be
marketable.
Eastplats currently has a sales contract with Impala Refining Services for
concentrate from its operating Crocodile River Mine. A similar contract is in
the process of being negotiated for the Mareesburg concentrate.
The Mareesburg deposit should support a mine that could be placed into
production relatively quickly and with a relatively low capital cost.
Estimated capital costs for the Mareesburg mine and concentrator were
developed in April 2010 based on engineering work performed by qualified South
African engineering and mining companies in 2008 and 2009. These costs include
the necessary infrastructure to support mining operations, such as power,
water, maintenance and warehouse facilities and other operating facilities, as
well as for capitalized pre-stripping for the open pit mine.
Costs were reviewed in early 2010 and have been escalated to April 2011 to
reflect the current estimated construction start date. All conversions to US
dollars from South African Rand (ZAR) are at a rate of US$1.00 = ZAR7.00.
Estimated capital costs are US$288 million. A full breakdown of capital costs
is provided in the Technical Report filed on SEDAR.
The mining operations at Mareesburg are estimated to produce on average
115,000 6E PGM ounces per year.
Operating costs for the Mareesburg open pit mine were developed from bids from
qualified contract miners based on a scope of work developed by Eastplats.
Operating costs for the concentrator were developed by Eastplats based on
current operating experience at the Crocodile River Mine, adjusted for the
smaller throughput at the new concentrator. All capital costs are converted to
US dollars from South African Rand (ZAR) at an exchange rate of US$1.00 =
ZAR7.00.
Total operating costs per ton milled are estimated at US$62.80. A full
breakdown of estimated operating costs is provided in the Technical Report
filed on SEDAR.
A financial analysis was performed internally by Eastplats on the project.
The project shows an NPV of ZAR 593 million (US$85 million) and an IRR of 27%.
A full breakdown of the financial analysis and parameters used is provided in
the Technical Report filed on SEDAR.
KENNEDY`S VALE/SPITZKOP
The updated Technical Report filed on SEDAR describes the Kennedy`s Vale
Project, covering the farms Kennedy`s Vale 361 KT, Belvedere 362 KT, De
Goedeverwachting 332 KT, Spitzkop 333KT and portions of the farms Tweefontein
360 KT and Boschkloof 331 KT.
Exploration has been undertaken on properties within the Kennedy`s Vale
Project since 1988. The primary target has always been the UG2 chromitite, due
to its high grade with the separate Merensky Reef being a secondary target.
Exploration to date has included geological mapping, aeromagnetic surveys, a 3-
D seismic survey and extensive diamond drilling with a total of 207,062 metres
of drilling having been completed to date.
Mineral Resource estimates have been completed and are reported in compliance
with National Instrument 43-101, Standards of Disclosure for Mineral Projects.
The resources shown in Tables 5 and 6 have been classified as Measured,
Indicated and Inferred in accordance with NI 43-101 reporting requirements.
Geological losses applied were 20% for the UG2 reef and 25% for the Merensky
reef.
Table 5 shows the diluted UG2 reef resource reported in the updated Technical
Report that can be practically mined at Spitzkop and is the resource that will
be used when project economics are assessed.
Resources for the Merensky Reef are shown in Table 6.
Table 5: Classified Resources for the Diluted Interval in the UG2 Reef -
Kennedy`s Vale/Spitzkop
LC2 To U2MC Width SG Million Ni Cu 3PGE+Au
Tonnes
(m) 20% Geol (g/t) (g/t) (g/t)
Loss
Measured
Boschkloof 1.50 3.88 20.9 618 286 5.13
De Goedeverwachting 1.49 3.93 28.6 574 158 5.20
Kennedy`s Vale 1.50 3.82 42.3 520 150 4.43
Spitzkop 1.48 3.81 41.8 481 158 5.21
Total 1.49 3.85 133.6 535 175 4.95
Indicated
Belvedere 1.50 3.84 15.3 560 192 3.94
Boschkloof 1.50 3.86 13.8 560 213 4.84
Kennedy`s Vale 1.50 3.83 21.5 494 146 4.15
Tweefontein 1.48 3.85 3.1 614 148 4.43
Total 1.50 3.84 53.8 537 177 4.28
Total Measured and 1.49 3.85 187.4 535 176 4.76
Indicated
Inferred
Belvedere 1.50 3.84 51.3 543 142 4.71
Boschkloof 1.50 3.83 2.9 711 288 4.52
Tweefontein 1.49 3.83 20.9 548 124 4.58
Total Inferred 1.50 3.84 75.1 551 143 4.67
LC2 To U2MC 3PGE+Au 5PGE+ Pt Pd Rh Au
Million Au
Ounces
(g/t) (g/t) (g/t) (g/t) (g/t)
20% Geol
Loss
Measured
Boschkloof 3.45 6.11 2.70 1.83 0.55 0.06
De Goedeverwachting 4.79 6.22 2.81 1.81 0.53 0.06
Kennedy`s Vale 6.03 5.31 2.36 1.57 0.45 0.05
Spitzkop 7.00 6.26 2.83 1.83 0.48 0.07
Total 21.3 5.93 2.65 1.75 0.49 0.06
Indicated
Belvedere 1.9 4.72 2.11 1.40 0.38 0.05
Boschkloof 2.2 5.81 2.59 1.71 0.49 0.06
Kennedy`s Vale 2.9 5.00 2.26 1.41 0.43 0.05
Tweefontein 0.4 5.27 2.36 1.56 0.47 0.05
Total 7.4 5.15 2.31 1.50 0.43 0.05
Total Measured and 28.7 5.70 2.55 1.67 0.48 0.05
Indicated
Inferred
Belvedere 7.8 5.59 2.43 1.73 0.49 0.05
Boschkloof 0.4 5.43 2.39 1.63 0.44 0.06
Tweefontein 3.1 5.43 2.39 1.66 0.48 0.05
Total Inferred 11.3 5.54 2.42 1.71 0.49 0.05
Table 6: Classified Resources for the separate Merensky Reef - Kennedy`s
Vale/Spitzkop
Merensky Reef Width SG Million Ni Cu 3PGE+Au
Tonnes
(m) 25% Geol (g/t) (g/t) (g/t)
Loss
Measured
Boschkloof 2.51 3.27 16.26 1104 666 2.30
De Goedeverwachting 2.53 3.25 36.75 1040 605 2.35
Kennedy`s Vale 2.50 3.26 59.22 1210 635 2.79
Spitzkop 2.49 3.21 48.92 1147 670 2.53
Totals 2.50 3.25 161.15 1141 642 2.56
Indicated
Belvedere 2.47 3.28 24.33 1408 645 3.98
Boschkloof 2.51 3.28 30.89 1283 659 2.65
De Goedeverwachting 2.48 3.30 0.98 1092 654 2.42
Kennedy`s Vale 2.49 3.27 25.91 1192 612 3.62
Tweefontein 2.53 3.27 5.95 1416 673 3.52
Totals 2.50 3.28 88.06 1298 642 3.36
Total Measured and 2.50 3.26 249.21 1197 642 2.84
Indicated
Inferred
Belvedere 2.52 3.28 64.47 1338 610 3.04
Boschkloof 2.61 3.27 3.33 1416 569 3.07
Tweefontein 2.50 3.28 26.28 1555 668 3.50
Total Inferred 2.52 3.28 94.08 1401 624 3.17
Merensky Reef 3PGE+ Au 5PGE Pt Pd Rh Au
Million Au
Ounces
25% (g/t) (g/t) (g/t) (g/t) (g/t)
Geol
Loss
Measured
Boschkloof 1.20 2.53 1.37 0.68 0.11 0.14
De Goedeverwachting 2.78 2.56 1.36 0.75 0.09 0.16
Kennedy`s Vale 5.30 3.04 1.59 0.91 0.12 0.17
Spitzkop 3.98 2.77 1.44 0.80 0.11 0.19
Totals 13.26 2.79 1.47 0.82 0.11 0.17
Indicated
Belvedere 3.11 4.34 2.24 1.35 0.16 0.23
Boschkloof 2.63 2.90 1.49 0.89 0.12 0.15
De Goedeverwachting 0.08 2.62 1.37 0.79 0.09 0.17
Kennedy`s Vale 3.01 3.95 2.00 1.25 0.15 0.21
Tweefontein 0.67 3.83 1.98 1.21 0.13 0.20
Totals 9.50 3.67 1.88 1.14 0.14 0.20
Total Measured and 22.8 3.10 1.61 0.93 0.12 0.18
Indicated
Inferred
Belvedere 6.31 3.31 1.72 1.04 0.12 0.17
Boschkloof 0.33 3.35 1.71 1.06 0.12 0.18
Tweefontein 2.96 3.81 2.00 1.17 0.13 0.20
Total Inferred 9.60 3.45 1.79 1.08 0.12 0.18
Full details of the methodology and resource estimates are provided in the
updated Technical Report filed on SEDAR.
In news releases dated April 10, 2008 and April 22, 2008, the Company made
reference to anticipated production rates that it considered could be achieved
at Spitzkop (being the shallower section of the Kennedy`s Vale/Spitzkop
project), that were based upon its operational experience in underground
mining in the UG2 reef at CRM. The Company wishes to clarify that it has not
received an economic evaluation or other economic analysis for an underground
mining operation at the Kennedy`s Vale/Spitzkop project and that this resource
is not planned to be exploited as part of the Mareesburg project.
In the news release dated April 22, 2008, the Company incorrectly made
reference to "ore" production at Spitzkop. The reference to "ore" for the UG2
resource at Spitzkop was not supported by an economic analysis as required by
NI 43-101 reporting requirements for reserve/resource classification and the
Company wishes to retract that reference.
References made to other production aspects for an underground mine in the UG2
reef at Spitzkop were based on Eastplats` operating experience in underground
mining of the UG2 reef at CRM, and are not supported by an economic analysis
for Spitzkop. The Company has not yet prepared mining plans for Spitskop, does
not have a timetable for the development of the Spitzkop section, and has not
yet made a production decision for its development.
Long lead items were purchased for the proposed mill for treatment of material
from Mareesburg, and while this mill could be used for treatment of UG2 reef
material from Spitzkop, they were not acquired for Spitzkop.
Some initial work was previously done by Eastplats to estimate the capital
cost of adding a milling line to the Mareesburg concentrator to treat a
possible 90,000 t/m of feed from an underground mine at Spitzkop. The
Mareesburg concentrator will be treating 90,000 t/m of open cast ore from the
Mareesburg mine and is located relatively close to Spitzkop. If economic
conditions permit, another concentrating line could be added to the plant in
the future to run Spitzkop material in parallel with Mareesburg ore.
No costing or economic modeling have been done on these scenarios other than a
preliminary capital cost on expanding the concentrator that was derived from
part of the capital cost estimate for the Mareesburg project. The estimated
cost for the second milling line is US$98M. A full breakdown of the costs for
the second milling line is provided in the Technical Report filed on SEDAR.
All work on the Kennedy`s Vale/Spitzkop project remains on hold.
The updated Technical Report recommends that once Eastplats decides to
reinitiate work on the Kennedy`s Vale/Spitzkop project, a feasibility study
will be done to develop a project timeline, capital costs, operating costs,
project economics, and a corresponding mineable reserve. Such a study is
estimated to take 12 to 18 months and would cost approximately US$2 million in
2010 dollars.
The Qualified Person having prepared the contents of this news release is Mr.
Brian Montpellier, P.Eng.
Total shares issued and outstanding - 683,223,948
For further information, please contact:
Ian Rozier, President & C.E.O.
Tel: +1-604-685-6851
Fax: +1-604-685-6493
info@eastplats.com
www.eastplats.com
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
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: 21/12/2010 10:20:01 Produced by the JSE SENS Department.
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