| Thu 27 Jan 2005, 12:32 | | - NEW LOW-COST OUNCES AS CHROMITE TAILINGS RETREAT |
|
AQUARIUS PLATINUM LIMITED - NEW LOW-COST OUNCES AS CHROMITE TAILINGS RETREATMENT
PROJECT ENTERS PRODUCTION
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration number: EC26290
Share code on JSE: AQP ISIN: BMG0440M1029
Share code on ASX: AQP.AX ISIN: BMG0440M1029
Share code on LSE: AQP.L ISIN: BMG0440M1029
Share code on US Over the counter market: AQPTY ISIN: US03840M2089
(`Aquarius`)
27 January 2005
New low-cost ounces as Chromite tailings retreatment project enters production
Aquarius Platinum Limited (`Aquarius` or `The Company`) is pleased to announce
that that the Chromite Tailings Retreatment Project produced its first
concentrate on 21st January 2005. The project will provide additional new ounces
to the Aquarius portfolio, demonstrating the company`s innovative approach to
providing low-cost growth.
The project is located at the Kroondal Platinum Mine to treat old dumps and
current tailings streams derived from the beneficiation processes employed by
the neighbouring chromite miners in the Kroondal area. In addition there will be
a clean up of old dumps on the Kroondal property derived from early chromite
activities, thus furthering Aquarius` commitment to sound environmental
practice.
Commenting on the first production, Stuart Murray, Chief Executive Officer of
Aquarius Platinum said `In less than one year, we have delivered an innovative
operation providing new low-cost PGM ounces. Despite delayed tailings shipments
from our neighbours due to Christmas shutdowns, I am delighted that the project
is now up and running. It is expected to produce 28,000 PGM ounces per annum at
steady state production.`
The project is owned by the RK1 Consortium, comprising Aquarius Platinum (SA)
(Corporate Services) (Pty) Limited, a wholly owned subsidiary of Aquarius, GB
Mining & Exploration (SA) (Pty) Limited and Sylvania South Africa (Pty) Ltd.
Aquarius holds a participation interest of 50%, with the partners holding 25%
each. In addition, as the consortium has contracted Aquarius Platinum (South
Africa) (Pty) Ltd to operate the project, a management fee will be earned.
The operation will treat 20,000 tonnes of chromite tailings a month, at an
average grade of 4 g/t PGM, equating to approximately 20,000 PGM ounces in the
2005 calendar year (Aquarius attributable 50%). This will rise to 28,000 PGM
ounces a year (Aquarius attributable 50%) from year two, with the life of
operation extending, similar to Kroondal itself, to 2017.
Average cash costs are forecast at R80 per tonne and US$180 per PGM ounce in
year one, reducing as economies of scale kick-in to R76 per tonne and US$170 per
PGM ounce in subsequent years. Some small volatility in costs should be expected
as the percentage of dump feed material which incurs additional transport costs
varies. As such, a rolling-average cost will be used to present costs at this
operation.
In line with capital expenditure forecast in March 2004 when the project was
announced, total project expenditure totalled US$5 million, of which Aquarius
funded its portion of US$3.2 million from internal cash flows.
For further information please contact:
In Australia:
Willi Boehm
Aquarius Platinum Corporate
Services Pty Ltd
+61 8 9367 5211
In United Kingdom:
Nick Bias Alex Buck
BuckBias Ltd BuckBias Ltd
+ 44 7887 920 530 +44 7932 740 452
In South Africa:
Charmane Russell
Russell & Associates
+27 11 880 3924
or visit:
www.aquariusplatinum.com
Date: 27/01/2005 12:13:26 PM
Produced by the JSE SENS Department
