VANCOUVER, BRITISH COLUMBIA and JOHANNESBURG, SOUTH AFRICA--(Marketwired - June 9, 2017) - Platinum Group Metals Ltd. (TSX:PTM) (NYSE MKT:PLG) ("Platinum Group" or the "Company") reports that during May 2017 the Maseve Mine produced approximately 2,480 ounces of platinum, palladium, rhodium and gold ("4E") in concentrate. Production is increasing and May 2017 was the best monthly level achieved since commissioning; however, ramp-up continues to be behind schedule. Further improvement in the ramp-up rate and effective mining grade is required.
Mining and Milling Overview
Delivered tonnes from Block 11 increased in May 2017 to almost 37,000 tonnes. Of the tonnes delivered from Block 11, approximately 50% were from on reef development to further open Block 11. Development tonnes have the effect of reducing overall delivered head grade. Overbreak in mechanized stopes continues to be a focus area for improvement. Company engineers are developing plans towards the commencement of hybrid mining in Block 11. Hybrid mining consists of trackless development and conventional breasting as the mining method; conventional breasting allows for better grade control by reducing overbreak and off reef mining. Grades sampled in the mining faces and from the boreholes in Block 11 are in the range expected from the resource model. Equipment availability, which had been limiting production, has been improving. Improved tramming capacity has resulted in higher delivered tonnes to the mill, due in part to a conveyor belt completion in late May towards Block 11, reducing a 2-kilometre trucking distance to 1-kilometre. Mill performance is in-line with or in excess of design specifications and expectations on throughput capacity and recoveries.
A summary of monthly production for calendar 2017 follows:
| Month | Dry Tonnes Milled |
Average Grade gms/tonne |
Recovery % | 4E Ounces in Concentrate |
| January, 2017 | 34,661 | 1.53 | 79.2 | 1,351 |
| February, 2017(1) | 36,848 | 1.59 | 80.3 | 1,651 |
| March, 2017(1) | 43,961 | 1.88 | 83.3 | 2,140 |
| April, 2017 | 41,853 | 2.00 | 83.8 | 2,256 |
| May, 2017 | 50,484 | 1.81 | 84.3 | 2,480 |
| (1) Approximately 7,825 dry tonnes of ore mined in February 2017 were milled in March 2017 due to severe weather events. This table adjusts the results of milling these 7,825 dry tonnes from March 2017 back into February 2017 results. |
Although the ounces for April and May show an increase, the overall performance on ounces produced is lower than targeted.
Outlook
The technical team at the Maseve Mine is focussed on improving performance. The Company highlights that additional working capital will be required to maintain its covenants with its lenders and to continue its operations. The Company is in discussions with its lenders for waivers of the minimum working capital provisions and is actively pursuing further funding. Financing methods in consideration by the Company include but are not limited to sale of assets, debt or equity. While the Company believes that further funding and waivers for debt conditions will be achieved, there is no assurance that such will be concluded on terms acceptable to the Company, or at all.
The Company continues to work with BMO Capital Markets and Macquarie Capital to review and assess corporate and asset strategic alternatives as well as potential further financing opportunities.
About Platinum Group Metals Ltd.
Platinum Group, 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 holds significant mineral rights and large-scale reserves of platinum and palladium 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 has delineated new low cost, near surface reserves on the North Limb of the Bushveld Complex on the Waterberg Project. Waterberg represents a new bulk type of large scale, shallow low-cost platinum, palladium and gold deposit. Waterberg is one of the only large scale dominantly palladium deposits in the world.
Qualified Person
R. Michael Jones, P.Eng., the Company's President, Chief Executive Officer and a significant shareholder of the Company, is a non-independent qualified person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and is responsible for preparing the technical information contained in this news release. He has verified the data by reviewing the detailed information of the geological and engineering staff and the Independent Qualified Person reports as well as visiting the site regularly.
