| Fri 20 Apr 2012, 9:24 | | BAU - Bauba Platinum Limited - Exploration Update |
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BAU
BAU
BAU - Bauba Platinum Limited - Exploration Update
BAUBA PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/004649/06)
Share code: BAU ISIN No: ZAE000145686
("Bauba Platinum" or "the Company")
EXPLORATION UPDATE
Bauba Platinum is pleased to announce an updated resource estimate for its
platinum group metals ("PGM") prospects on the Eastern Limb of the Bushveld
Igneous Complex in South Africa`s Limpopo province.
Bauba Platinum holds prospecting rights over eight properties extending across
an area of approximately 14 200 ha. The properties have been grouped into three
clusters, the Northern, Central and Southern Clusters.
Phase I drilling and the geological modelling of the Southern Cluster have been
completed. The results of the drilling programme have allowed the declaration of
a SAMREC compliant inferred resource of 8.6Moz ("4E") over a portion of the
Southern Cluster properties.
The current 4E (Pt+Pd+Rh+Au) PGM resource estimate for the Bauba Platinum
prospects, discounted for geological losses, is tabulated below with 60% of the
total resource being attributable to Bauba Platinum.
Resource Merensky
Classification Geological Tons 4E
Loss Mt Moz
Inferred 17.00% 27.41 3.46
Target 19.61% 379.26 53.26
Total 19.44% 406.68 56.71
Resource UG2
Classification Geological Tons 4E
Loss Mt Moz
Inferred 24.00% 35.76 5.09
Target 24.32% 360.34 65.22
Total 24.29% 396.10 70.31
Resource Combined Bauba attributable
Classification Tons 4E Tons 4E
Mt Moz Mt Moz
Inferred 63.17 8.55 37.90 5.13
Target 739.60 118.48 443.76 71.09
Total 802.78 127.02 481.67 76.21
The above mentioned resource estimate has been verified and approved by a
competent person in terms of the SAMREC Code, namely Mr A N Clay of Venmyn Rand
Proprietary Limited.
In April 2010, Bauba Platinum launched a detailed and systematic exploration
programme. Four boreholes were drilled on the Southern Cluster, all of which
yielded Merensky Reef intersections and two yielded UG2 reef intersections.
Merensky and UG2 reef intersections were at depths of approximately 1 600 metres
and 1 930 metres respectively. The reason for two of the boreholes not
intersecting the UG2 reef was due to the cavitation of one borehole just below
the Merensky Reef intersection and the intersection of a UG2 pothole on the
second borehole. Plans are in place to deflect off these holes to obtain
effective UG2 intersections and increase the respective inferred resource.
Furthermore, drilling began on the Central Cluster properties in June 2011, with
two drill rigs currently in operation. An initial programme of six boreholes is
planned for this area. To date, one borehole has been completed and a further
two are in progress. The completed borehole, BAU023, was drilled on the western
boundary of the property in order to define the maximum reef depth. It
intersected the UG2 Reef at 2 336 metres below surface, some 300 metres
shallower than predicted by the down-dip extrapolation of information from
neighbouring properties. This suggests a flattening of the dip of the reef with
increasing depth, possibly as a result of the Central Cluster`s proximity to the
adjacent Paradys Dome structure. In addition, the Merensky Reef intersection was
narrow and poorly mineralised. Assay returns are awaited for both reef
intersections.
Drilling will begin on the Northern Cluster properties by the end of April 2012.
A second rig will be mobilised in June 2012 to facilitate the initial programme
of ten boreholes planned for this Cluster.
In addition, beginning in July 2012, 2D seismic surveys will be conducted on
both the Northern and Central Cluster properties, with four lines on the
Northern Cluster and three lines on the Central Cluster.
"We are pleased to be able to demonstrate that the Company is making good
progress with its drilling programme and increasing the resource confidence,"
said Bauba Platinum Chief Executive Officer, Grant Pitt. "Based on these
results, and on the assumption that the Company can from time to time raise the
additional funds required, Bauba Platinum is planning to explore the target
resource area by the Second quarter of 2014 with a view to converting the target
resource to an inferred resource or better."
Johannesburg
20 April 2012
Sponsor
Merchantec Capital
Date: 20/04/2012 09:24:03 Produced by the JSE SENS Department.
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