VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA--(Marketwired - May 15, 2017) - Platinum Group Metals Ltd. (TSX:PTM)(NYSE MKT:PLG) ("Platinum Group Metals" or the "Company") and joint venture partner Japan Oil, Gas and Metals National Corporation ("JOGMEC") have selected SFA Oxford Ltd. ("SFA") to assess potential offtake options and commercial terms for the Waterberg PGM Project. SFA is an internationally recognized consultancy focused on the PGM metals and markets.
Platinum Group Metals holds a direct and indirect 58.65% interest of the Waterberg Project. JOGMEC holds a direct 28.35% interest with the balance owned by a South African empowerment partner. An Independent Pre-Feasibility Study ("PFS") announced by the Company on October 19, 2016 for the Waterberg Project modelled a 744,000 ounce per year platinum, palladium, gold and rhodium ("PGM" or "4E") mine with an 18-year life. On a 100% project basis, using a 2.5 gram per tonne ("g/t") cut-off grade, the PFS estimated 12.32 million 4E ounces of probable reserves at Waterberg (102.7 million tonnes at 3.73 4E g/t, consisting of 1.11 g/t Pt, 2.29 g/t Pd, 0.29 g/t Au and 0.04 g/t Rh). For details see the "Independent Technical Report on the Waterberg Project Including Mineral Resource Update and Pre-Feasibility Study" dated October 19, 2016 (the "Waterberg Technical Report").
The PFS assumed the Waterberg Project would produce a flotation concentrate from a processing plant to be sold or toll treated into the local South African market. The PFS concluded; "The desirability of the concentrate being similar to the Merensky in terms of Sulphur content and having no Chrome represents an opportunity for a desirable offtake agreement. There is a significant opportunity for the construction of a dedicated project specific smelting facility to process the production from Waterberg, which could also be a commercial facility toll treating concentrate."
SFA will assist in formulating a metallurgical processing strategy that will include identification of all mineral processing options, evaluate commercial terms, processing routes and specific smelter options. Work by SFA will add to the appointed independent engineering Qualified Person work in these areas and is expected to make a significant contribution to economics to be outlined the Definitive Feasibility Study currently in process.
Based on the PFS the Waterberg Project is expected to produce up to 285,000 tonnes of concentrate per annum at peak production. The concentrate is modelled to contain approximately 80 g/t 4E's plus copper at between 1% and 9.2% and nickel at between 1.1% and 5%. Base metal levels for Waterberg similar to the common Merensky concentrate make it metallurgically desirable for blending with other high chrome concentrates. The PFS estimated that Waterberg could produce 472,000 ounces of palladium annually; more palladium than the Stillwater Mine produced in 2015, or about 6% of the world's palladium production in 2015.
R. Michael Jones, CEO of Platinum Group Metals, said "We look forward to working with the team at SFA to further delineate the unique value opportunities for the Waterberg Project. The anticipated scale of production at Waterberg will play a significant role in meeting demand for PGM metals going forward, particularly palladium. Given the abundance of smelter capacity in South Africa and the unique nature of Waterberg concentrate our work with SFA will assist in maximizing value."
Stephen Forrest, Chairman of SFA stated, "This is an exciting opportunity for SFA to assist in developing a robust investment case for a unique PGM asset in the northern limb of the Bushveld Igneous Complex in South Africa."
Qualified Persons, Data Verification and Quality Control and Assurance
In addition to quality control and assurance procedures employed by the laboratories engaged to assay Waterberg core and rock samples, Platinum Group utilized a well-documented system of inserting blanks, duplicates and standards into the assay stream and has a strict chain of custody and independent lab re-check system for quality control. Further details are available in the Waterberg Technical Report at www.sedar.com and www.platinumgroupmetals.net.
Scientific and technical information in this press release related to mineral reserves and resources and other information has been reviewed and approved by R. Michael Jones, P.Eng., a non-independent Qualified Person and the CEO of the Company. He has verified the technical information for disclosure in this press release by reviewing the work of experienced Company geologists, consulting geologists and engineers and by visiting the site and reviewing the ongoing project database.
About Platinum Group Metals Ltd.
Platinum Group Metals, based in Johannesburg, South Africa and Vancouver, Canada, has a successful track record with more than 20 years of experience in exploration, mine discovery, mine construction and mine operations.
Formed in 2002, Platinum Group Metals holds significant mineral rights in the Bushveld Igneous Complex of South Africa, which is host to over 70% of the world's primary platinum production. The Company is currently focused on ramping up the Maseve Mine, its first near-surface platinum mine, to commercial production.
Platinum Group Metals has expanded its exploration and development efforts on the North Limb of the Bushveld Complex on the Waterberg Project. Waterberg represents a new bulk type of platinum, palladium and gold deposit.
About SFA Oxford Ltd.
SFA (Oxford) is the world authority on the platinum-group metals market, whilst providing tailored intelligence on numerous other strategic commodities. The company is wholly independent and its in-depth market research and integrity is underpinned by extensive consulting from mine to market to recycler, as well as an unrivalled global industry network.
