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14
MODERN MINING
August 2015
MINING News
Platinum Group Metals (PTM), listed
on the TSX and NYSE, reports that its
82,9 %-owned WBJV Project 1 platinum
mine (Maseve) located near Rustenburg
is approximately 90 % complete and is
on track for planned production in 2015.
Cold commissioning of processing plant
equipment is planned for this month
(August) with initial concentrate produc-
tion on track for the fourth quarter of
calendar 2015.
The mineral resources and mineral
reserves for Project 1 have been updated
to account for the planned increased use
of mechanised mining methods where
the deposit is estimated to be thicker and
accessible from nearby completed under-
ground development.
Production guidance for fiscal 2016 is
116 000 ounces platinum, palladium, rho-
dium and gold (4E) (100 % project basis)
and 185 000 ounces 4E in fiscal 2017 in
concentrate. Steady state has been esti-
mated to be 250 000 ounces 4E per year.
Exclusive of smelter discount, on site
costs are estimated to be US$526 per 4E
ounce for the life of mine on the Merensky
Reef including copper, nickel and other
minor elements as a credit and US$774 per
4E ounce on the UG2.
Comments R Michael Jones, CEO of
PTM: “We have done well at 90 % comple-
tion on the project construction utilising a
well-known plant design and our proven
team. We are operationally ready with
our experienced owner’s team. We
have updated our mine plan for current
underground development and updated
mineral resources and mineral reserves.
Underground trackless mechanised devel-
opment is planned to be used for more of
the mining as compared to our original
design, thereby improving ramp up and
flexibility.”
The revised mine plan takes advan-
tage of recently advanced underground
development proximal to thicker, deeper
mine blocks as compared to the shallower
more variable blocks mined in the original
design. PTM expects that the adoption
of mechanised and hybrid mining
approaches will allow for a rapid ramp-
Recent photo of the Maseve processing plant. It has a capacity of 110 ktpm but allowance has been made for this to be increased to 160 ktpm (photo: Platinum
Group Metals).
Maseve now in the final straight
up of production with significantly lower
waste rock development compared to
the conventional mining method that the
company had planned to use previously.
PTM expects that dilution resulting from
the mechanised approach, along with
new block information, will result in a 17 %
lower grade on the early mined Merensky
ore, which is largely offset by lower waste
rock development and costs.
Approximately 1 900 people are cur-
rently on site. Surface construction
manpower is expected to decline as the
underground work force increases over the
coming months. Safety has been and con-
tinues to be a priority. The current safety
record is better than the industry average
with approximately 2,6 lost time injuries
per million man hours worked.
As mentioned, initial production of con-
centrate is planned for the fourth quarter of
calendar 2015. Initial production is planned
from a number of underground blocks that
PTM expects will soon be reached with
underground development. The largest
production ramp up area planned is from
‘Block 10’ and ‘Block 11’, using hybrid and
room and pillar mining methods respec-