Wrap Text
EPS - Eastern Platinum Limited - Eastplats reports operating results for the
quarter ended September 30, 2009
EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA 2768551038
Share Code AIM: ELR ISIN: CA 2768551038
Share Code JSE: EPS ISIN: CA 2768551038
October 7, 2009
Trading Symbol: ELR (TSX & AIM) EPS (JSE)
NEWS RELEASE
EASTPLATS REPORTS OPERATING RESULTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2009
Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") is
pleased to report on production from the Crocodile River Mine ("CRM") for the
quarter ended September 30, 2009 ("Q3 2009").
As a result of the termination of contract mining companies whose employees
were involved in the illegal strike action at CRM in July, and the subsequent
direct employment of mine workers and reinstatement of a limited number of
contract employees, production in the third quarter was 29,874 PGM ounces, a
decrease of 10% compared to the quarter ended June 30, 2009 and a decrease of
3% compared to the third quarter of 2008. Cash costs per ounce are expected to
be higher compared to the June quarter as a result of the decrease in
production.
Despite the challenge of introducing new crews to the mine this quarter, a
milestone of two million fatality- free shifts was achieved at CRM in
September.
In Q3 2009, an agreement was also reached on wages, in which employees received
a 10% increase, in line with other agreements reached in the industry.
Production statistics for the current quarter and historical quarters are as
follows:
Quarter ended
Sept 30, June 30, Mar 31,
Production statistics 2009 2009 2009
Ounces produced 29,874 33,383 32,969
Run-of-mine rock tonnes hoisted 244,959 342,368 321,165
Run-of-mine rock tonnes processed 280,777 304,354 318,394
Development (meters) 2,882 4,326 4,573
On-reef development (meters) 1,562 2,860 2,745
Stoping units (square meters) 36,263 51,342 45,098
Head grade (grams/tonne) 4.1 4.2 4.0
Concentrator recovery from ROM ore 78% 80% 80%
Chrome produced (tonnes) 83,930 82,760 77,554
Quarter ended Increase (decrease)
Q3 Q3
2009 vs 2009 vs
Dec 31, Sept 30, Q2 Q3
Production statistics 2008 2008 2009 2008
Ounces produced 29,015 30,755 (3,509) (881)
Run-of-mine rock tonnes
hoisted 280,933 319,462 (97,409) (74,503)
Run-of-mine rock tonnes
processed 298,514 305,490 (23,577) (24,713)
Development (meters) 4,604 5,599 (1,444) (2,717)
On-reef development (meters) 2,922 3,556 (1,298) (1,994)
Stoping units (square meters) 46,459 39,652 (15,079) (3,389)
Head grade (grams/tonne) 4.0 4.0 (0.1) 0.1
Concentrator recovery from
ROM ore 76% 78% - 2% 0%
Chrome produced (tonnes) 69,937 64,744 1,170 19,186
During the quarter, stoping and development output was significantly reduced.
By September, production levels had returned to those achieved in June 2009.
Going forward, development will be maintained at Q2 levels in order to sustain
the eighteen month mining reserve that has been built up at the mine over the
past two years.
Concentrator recovery from the ROM circuit decreased to 78% during the quarter
mainly as a result of sub- optimal operation during times of low feed from
underground. This is expected to return to 80% as mining rates ramp back to
pre-strike levels.
This quarter also marked the first full quarter of production from the
tailings remining section which extracts PGMs and chromite from previously
placed tailings.
"After a disruptive period in July and early August at CRM, we have recovered
extremely well, the extensive on and off reef development carried out during
the last year having positioned the mine well for both the short term
production ramp up back to Q2 levels, and for the ongoing production build up
at the mine", stated Ian Rozier.
Third quarter financial results and conference call
Eastplats is scheduled to release its full third quarter results on Thursday
November 12, 2009 and host a telephone conference call on the same day at
11:00 a.m. Pacific (2:00 p.m. Eastern) to discuss these results.
The conference call may be accessed by dialing 1-800-319-4610 in Canada and the
United States, or 1-604-638-5340 internationally.
The November 12, 2009 conference call will be archived for later playback
until Thursday November 19, 2009 and can be accessed by dialing 604-638-9010
or 1-800-319-6413 and using the pass code 4219 followed by the number sign.
The qualified person having reviewed the operating results presented in this
press release is Mr. Brian Montpellier, V.P. Project Development, P. Eng.
Total shares issued and outstanding: 680,562,080
For further information contact:
Investor Relations
Website: www.eastplats.com
Email: info@eastplats.com
Tel: 1-(604)-685-6851, Fax: 1-(604)-685-6493
NOMAD - Canaccord Adams Limited
Ryan Gaffney - Ryan.Gaffney@CanaccordAdams.com
+44 20 7050 6500
JSE SPONSOR - PSG Capital (Pty) Limited
Johan Fourie- johanf@psgcapital.com
+27 21 887 9602
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.
Certain statements included herein constitute "forward-looking statements"
within the meaning of applicable Canadian securities legislation. These
forward-looking statements are based on certain assumptions by Eastplats and as
such are not a guarantee of future performance. Actual results could differ
materially from those expressed or implied in such forward-looking statements
due to factors such as general economic and market conditions, increased costs
of production and a decline in metal prices. Eastplats is under no obligation
to update or revise any forward- looking statements, whether as a result of new
information, future events or otherwise, except as required by applicable laws.
Date: 07/10/2009 15:09:01 Supplied by www.sharenet.co.za
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