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ELR/EPS - Eastern Platinum Limited - Eastplats Reports New Mineral Reserve and
Resource estimates with over 100 million ounces PGM after subtraction of
estimated geological losses
EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA2768551038
Share Code AIM: ELR ISIN: CA2768551038
Share Code JSE: EPS ISIN: CA2768551038
EASTPLATS REPORTS NEW MINERAL RESERVE AND RESOURCE ESTIMATES WITH OVER 100
MILLION OUNCES PGM AFTER SUBTRACTION OF ESTIMATED GEOLOGICAL LOSSES
VANCOUVER, BRITISH COLUMBIA-(Marketwire - Nov. 27, 2007) - Mr. Ian Rozier,
President and CEO of Eastern Platinum Limited ("Eastplats")
(TSX:ELR)(AIM:ELR)(JSE:EPS) is pleased to report on Mineral Reserve and Resource
estimates for all of its platinum group metals ("PGM") projects in South Africa.
The Mineral Reserve and Resource estimates were prepared following extensive
infill drill programmes and done in accordance with NI 43-101, JORC and SAMREC
technical reporting requirements.
HIGHLIGHTS OF THE MINERAL RESERVE AND RESOURCE ESTIMATES FOR EASTPLATS` PROJECTS
ARE AS FOLLOWS:
- Measured and Indicated Resource in all projects of 66.5 Mozs PGM.
- Inferred Resources in all projects of 34 Mozs PGM.
- Total `Attributable` Measured and Indicated Resource in all projects of
57.4 Mozs.
- Total `Attributable` Inferred Resource in all projects of 28.9 Mozs.
- Proven and Probable Reserves at the Crocodile River Mine (`CRM`) of 4.1
Mozs PGM.
- Measured and Indicated Resource at CRM (including Mineral Reserves) of 5.6
Mozs PGM.
- Inferred Resource at CRM of 10.2 Mozs PGM.
- All estimates referenced are after subtraction of estimated geological
losses.
- All these Mineral Reserves and Resources occur in the UG2 and Merensky
platinum rich reefs with mineable widths.
The Mineral Reserve and Resource estimates for CRM were prepared by Mr. Ken
Lomberg of RSG Global Consulting (Pty) Ltd (`RSG`) of Johannesburg, South
Africa. The new mineral resource estimates for Spitzkop-Kennedy`s Vale were
conducted by Mr. Mike Hall of MSA Geoservices (Pty) Ltd of Craighall,
Johannesburg, South Africa and were reviewed by Mr. Ken Lomberg of RSG and by
Mr. Al Maynard of Maynard & Associates of Perth, Australia. Updated estimates
reported for Mareesburg were conducted by Dr. Mike Harley and Mr. Victor
Simposya of Steffen, Robertson & Kirsten (South Africa) Pty Ltd (`SRK`). All the
above are `Qualified Persons` for the purposes of NI 43-101 reporting
requirements and are all independent consulting engineers and geologists
familiar with the PGM sector and various PGM projects in South Africa.
At CRM on the western limb of the Bushveld the Mineral Reserve and Resource
estimates were prepared following extensive infill drill programmes conducted as
part of ongoing mine development. Drilling results from the Kareespruit section
will be incorporated into a new resource model. This work should be completed by
December 2007 and is expected to add to the Measured and Indicated Resource base
at CRM. Exploration targets at CRM such as Maroelabult North have not been
included in the Inferred Resources.
At Spitzkop-Kennedy`s Vale on the eastern limb of the Bushveld Complex, a 39,000
m infill drill program was conducted in 2006/7 by Geosearch, a division of
Transbor (Pty) Ltd. In addition, a strict programme of quality
control and quality assurance was undertaken as part of the drill programme. As
reported in the news releases dated May 16th and 24th 2007, on site geological
work and supervision was carried out by MSA Geoservices under the direction of
Davminex Mineral Consultant (Pty) Ltd. Assaying was conducted by Set Point
Laboratories S.A.
all assay results from this drill programme were reported in the same news
releases. This infill drilling has significantly upgraded the Resource which now
includes additional areas of shallow-reef depths on the combined Spitzkop-
Kennedy`s Vale holdings. In addition, the areas underlain by both the UG2 Reef
and the Merensky Reef at Spitzkop-Kennedy`s Vale have been extended. The
definition of the upgraded Resource has been greatly enhanced by the re-
interpretation and enhancement of 3-D seismic survey data and confidence in the
geological structure and reef continuity has also been further enhanced across
the area. As a result of significantly upgraded resources on the Spitzkop-
Kennedy`s Vale Project, an updated NI 43-101 technical report is being prepared
for filing on SEDAR that will include both these projects, now considered as one
project for reporting purposes.
At De Goedeverwachting, adjacent to Spitzkop-Kennedy`s Vale, a shallow drilling
programme is planned to commence later in 2007 to further evaluate resources in
the UG2 reef. Previous drilling on the property identified the widespread
existence of the UG2 over a strike length of 3-4 km to a depth of 400 m with
potentially economic grades and width. De Goedeverwachting has been excluded
from current inferred resource estimates until the proposed work is complete.
At Mareesburg, also on the eastern limb of the Bushveld Complex, a 6,455 m
infill drill programme was conducted and augmented by a quality control-quality
assurance programme involving re-assay of approximately 10% of the
entire data base; this programme yielded satisfactory results with no analytical
ambiguities or anomalies. All geological data was then used in a resource block
model by SRK which outlined a total of 20.8Mt at an average
grade of 3.82 g/t on a 3PGE+Au basis (2.55 Mozs). Of this, 19.4Mt at an average
grade of 3.81 g/t 3PGE+Au (2.4 Mozs) occurs as unweathered reef. Further
technical studies were conducted to determine approximations for open- pit and
underground resources, geological losses and anticipated losses for a `crown
pillar` to be left in situ for protection of access to the underground workings.
A further 25% geological loss factor was then applied to the resources
delineated for underground mining operations.
Kareespruit and Maroelabult North at CRM and De Goedeverwachting at Kennedy`s
Vale are expected to further add to the overall resource base of Eastplats.
It is customary in South Africa to consider and estimate geological losses even
at the Mineral Resource estimate stage; the applied loss factors for each
project are provided. At CRM these are based upon actual mining of the UG2 Reef
at Zandfontein and Maroelabult, with higher loss factors applied to the
Maroelabult section as well as to the Inferred Resource at Zandfontein based on
lower confidence because of wider drillhole spacing. At Spitzkop/Kennedy`s Vale
applied loss factors are based on the structural interpretation,
reinterpretation of the seismic survey and incorporation of the results of the
recent drilling. All the resource estimates quoted account for the subtraction
of applied geological losses.
The updated estimates are summarized together with the resource classifications,
individual metal splits (`prill splits`), reef thicknesses and applied
geological loss factors. Estimates are provided for the UG2 Reef and the
Merensky Reef at Spitzkop-Kennedy`s Vale on a 3PGE+Au and a 5PGE+Au basis; the
Merensky Reef does not occur at Mareesburg and at CRM the data for the Merensky
is insufficient for it to be included in the current resource estimates.
The Mineral Reserve and Resource estimates for all projects on a 3PGE+Au basis
are as follows:
Mineral Reserves - UG2 Reef - CRM
---------------------------------------------------------------------------
Proven
Zandfontein 3.84Mt @ 3.48 g/t (427,000 ozs)
Maroelabult 1.95Mt @ 3.45 g/t (216,000 ozs)
Probable
Zandfontein 21.80Mt @ 3.49 g/t (2,444,000 ozs)
Maroelabult 2.29Mt @ 3.69 g/t (272,000 ozs)
Crocette 6.39Mt @ 3.63 g/t (746,000 ozs)
Mineral Resources - UG2 Reef
Crocodile River Mine (Includes Mineral Reserves)
---------------------------------------------------------------------------
Measured 6.47Mt @ 4.18 g/t (869,000 ozs)
Indicated 33.06Mt @ 4.42 g/t (4,694,000 ozs)
Inferred 71.57Mt @ 4.41 g/t (10,157,000 ozs)
Kennedy`s Vale
---------------------------------------------------------------------------
Measured 91.80Mt @ 4.83 g/t (14,272,000 ozs)
Indicated 53.80Mt @ 4.28 g/t (7,407,000 ozs)
Inferred 75.10Mt @ 4.67 g/t (11,265,750 ozs)
Spitzkop
---------------------------------------------------------------------------
Measured 41.79Mt @ 5.21 g/t (6,997,000 ozs)
Mareesburg
---------------------------------------------------------------------------
Indicated O/P 7.63Mt @ 3.96 g/t (972,000 ozs)
Indicated U/G 3.59Mt @ 6.23 g/t (719,000 ozs)
Mineral Resources - Merensky Reef
---------------------------------------------------------------------------
Kennedy`s Vale
---------------------------------------------------------------------------
Measured 112.23Mt @ 2.57 g/t (9,285,000 ozs)
Indicated 88.06Mt @ 3.36 g/t (9,505,000 ozs)
Inferred 94.08Mt @ 3.17 g/t (9,595,000 ozs)
Spitzkop
---------------------------------------------------------------------------
Measured 48.92Mt @ 2.53 g/t (3,980,000 ozs)
Reef Width - UG2
---------------------------------------------------------------------------
CRM 1.4 m
Kennedy`s Vale 1.5 m
Spitzkop 1.5 m
Mareesburg 1.3 m
Reef Width - Merensky
---------------------------------------------------------------------------
Spitzkop 2.5 m
Kennedy`s Vale 2.5 m
Metal Splits on a 3PGE + Au basis
---------------------------------------------------------------------------
Pt Pd Rh Au
--- --- --- ---
CRM UG2 62% 27% 10% 1%
Kennedy`s Vale UG2 53% 35% 10% 1%
Spitzkop UG2 54% 35% 9% 1%
Mareesburg UG2 57% 33% 8% 2%
Spitzkop Merensky 57% 32% 4% 7%
Kennedy`s Vale Merensky 57% 33% 4% 6%
Geological Loss Factors Applied to Estimates
---------------------------------------------------------------------------
UG2 Reef - CRM - Zandfontein Measured and Indicated 20%
UG2 Reef - CRM - Zandfontein Inferred 25%
UG2 Reef - CRM - Maroelabult Measured and Indicated 25%
UG2 Reef - Spitzkop/Kennedy`s Vale 20%
Merensky Reef - Spitzkop/Kennedy`s Vale 25%
UG2 Reef Mareesburg 25%
The new Mineral Resource estimates for Spitzkop/Kennedy`s Vale on a 5PGE+Au
basis with the same applied geological losses are;
UG2 Reef-Spitzkop
---------------------------------------------------------------------------
Measured 41.79Mt @ 6.26 g/t (8,407,000 ozs)
UG2 Reef-Kennedy`s Vale
---------------------------------------------------------------------------
Measured 91.80Mt @ 5.78 g/t (17,056,000 ozs)
Indicated 53.80Mt @ 5.15 g/t (8,894,000 ozs)
Inferred 75.10Mt @ 5.54 g/t (13,382,000 ozs)
Merensky Reef Spitzkop
---------------------------------------------------------------------------
Measured 48.90Mt @ 2.77 g/t (4,351,000 ozs)
Merensky Reef - Kennedy`s Vale
---------------------------------------------------------------------------
Measured 112.23Mt @ 2.81 g/t (10,131,000 ozs)
Indicated 88.06Mt @ 3.67 g/t (10,385,000 ozs)
Inferred 94.08Mt @ 3.45 g/t (10,440,000 ozs)
---------------------------------------------------------------------------
Based upon the new Mineral Resource estimate for Spitzkop/Kennedy`s Vale on a
5PGE+Au basis, Eastplats projects have over 100 M contained PGM ounces after the
subtraction of geological losses, with over 86 M ounces PGM `attributable` to
the Company.
`Eastplats now controls a resource base of over 100 million ounces of PGM, and
importantly, these resources are platinum rich, occur at relatively shallow
depth and have infrastructure already in place,` stated Ian Rozier,
President and CEO of Eastplats.
`Eastplats has one of the largest delineated PGM resource holdings of any
platinum producing company outside of the big three, Angloplats, Impala and
Lonmin and these new resource estimates validate our initial evaluation and
subsequent acquisition of these assets,` said Ian Rozier.
The qualified person having prepared the contents of this news release is Mr.
Ian Rozier, B.Sc.(Hons), M.Sc.,P.Eng.
Total shares issued and outstanding: 668,398,194
GLOSSARY OF TERMS
---------------------------------------------------------------------------
3PGE+Au three platinum group elements (being platinum, palladium and
rhodium) plus gold
---------------------------------------------------------------------------
5PGE+Au five platinum group elements (being platinum, palladium,
rhodium, ruthenium and iridium) plus gold
---------------------------------------------------------------------------
Au gold
---------------------------------------------------------------------------
g/t grams per metric tonne
---------------------------------------------------------------------------
Ir Iridium
---------------------------------------------------------------------------
JORC Code Australasian Code for Reporting of Mineral Resources and Ore
Reserves (Joint Ore Reserves Committee of The Australasian
Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia, September 1999).
---------------------------------------------------------------------------
m metre or metres, as the context indicates
---------------------------------------------------------------------------
Mozs million ounces
---------------------------------------------------------------------------
Mt million tonnes
---------------------------------------------------------------------------
NI43-101 the National Instrument 43-101 Standards of Disclosure for
Mineral Projects of the Canadian Securities Administrators
---------------------------------------------------------------------------
ozs ounce or ounces, as the context indicates
---------------------------------------------------------------------------
Pd Palladium
---------------------------------------------------------------------------
PGM platinum group metals, consisting of platinum, palladium,
rhodium, iridium, ruthenium and osmium
---------------------------------------------------------------------------
Pt Platinum
---------------------------------------------------------------------------
Ru Ruthenium
---------------------------------------------------------------------------
Rh Rhodium
---------------------------------------------------------------------------
SAMREC The South African Mineral Resources Committee
---------------------------------------------------------------------------
SEDAR The Canadian Securities Administration`s Systems for
`Electronic Documents Analysis and Retrieval`
---------------------------------------------------------------------------
27 November 2007
Caution Regarding Forward Looking Statements:
Safe Harbor Statement under the United States Private Securities Litigation
Reform Act of 1995: Except for the statements of historical fact contained
herein, the information presented constitutes `forward-looking statements`
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements, including but not limited to those with respect to
the price of gold, silver and copper, the timing and amount of estimated future
production, costs of production, reserve determination and reserve conversion
rates, involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievement of the Company to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors include,
among others, risks relating to the integration of the acquisition, risks
relating to international operations, risks relating to joint venture
operations, the actual results of current exploration activities, actual results
of current reclamation activities, conclusions of economic evaluations, changes
in project parameters as plans continue to be refined, future prices of gold,
silver and copper, as well as those factors discussed in the section entitled
`Risk Factors` in the Form 20-F as on file with the Securities and Exchange
Commission in Washington, D.C.
Although the Company has attempted to identify important factors that could
cause actual results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements.
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated
and Inferred Resources:
This presentation uses the terms `Measured`, `Indicated` and `Inferred`
Resources. U.S. Investors are advised that while such terms are recognized and
required by Canadian regulations, the Securities and Exchange Commission does
not recognize them. `Inferred Resources` have a great amount of uncertainty as
to their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred resource
will ever be upgraded to a higher category. Under Canadian rules, estimates of
Inferred Resources may not form the basis of feasibility or other economic
studies. U.S. Investors are cautioned not to assume that all or any part of
Measured or Indicated Resources will ever be converted into reserves. U.S.
Investors are also cautioned not to assume that all or any part of an Inferred
Mineral Resource exists, or is economically or legally mineable.
FOR FURTHER INFORMATION PLEASE CONTACT:
Eastern Platinum Limited
Investor Relations
(604) 685-6851
(604) 685-6493 (FAX)
Email: info@eastplats.com
Website: www.eastplats.com
OR
NOMAD: Canaccord Adams Limited, London
+44 20 7050 6500
Email: Robin.Birchall@canaccordadams.com
Email: Clayton.Bush@canaccordadams.com
OR
JSE Sponsor: PSG Capital (Pty) Limited, South Africa
+27 21 887 9602
Email: andreg@psgcapital.com
Email: anjem@psgcapital.com
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Date: 06/12/2007 14:50:02 Supplied by www.sharenet.co.za
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