Modern Mining January 2015

PLATINUM

WBJV Project 1 platinum mine now 70 % complete

In its latest quarterly report (for the three months ended 30 November 2014), Platinum Group Metals (PTM) says that it achieved a solid performance in 2014, with a good safety record, at its Western Bushveld Joint Venture (WBJV) Project 1 platinummine, which reached 70 % completion. Project 1, located on the Western Limb of the Bushveld Complex 35 km north-west of Rustenburg, is due to enter production towards the end of this year. After a planned two-year ramp-up, steady state production is scheduled at 275 000 ounces 4E a year.

T he new mine, which according to PTM, will exploit one of the last large, near surface sections of the Merensky Reef, will be an under- ground operation. Proven and probable reserves are estimated at 4,7 Moz 4E, sufficient to support a mine life of in excess of 20 years. Its neighbours include two other developing mines, Bakubung and Styldrift, which are owned by Wesizwe and RBPlat re- spectively. While all three are underground mines, Project 1 is accessed by declines while Bakubung and Styldrift both have vertical shaft systems. PTM, which owns 82,9 % of the project, says its investment in the new mine totalled US$343 million as of the end of November 2014 with the peak funding requirement currently pro- jected at US$502 million. According to the company, its current cash position should be sufficient to complete the mine build to initial production. With production nearing, Project 1’s manage- ment team has been expanded. Key operational roles that have been filled in recent months include mine general manager, production manager, equipment specialist, engineering specialist, safety and environment manager and a training superintendent. Project 1 will have two distinct sections – the North and South mines. As at the end of the reporting period, over 7 600 m of access development had been completed at the North Mine and chairlift and conveyor construction had begun. Development along the Merensky Reef and the first underground raises had been started and stockpiling of Merensky Reef development material was underway, with approximately 106 000 tonnes on surface as at 30 November. At the South Mine, the boxcut is complete

and, by the end of November, underground mining had advanced the material decline for approximately 949 m and the conveyor decline for approximately 741 m. In total, over 2 206 m of access development has been completed at the South Mine. As regards the processing plant, foundations for major mill and concentrator components have been completed and major mill compo- nents delivered, including the mill shell. The structural steel for the mill and flotation cir- cuits has largely been completed. In terms of Project 1’s power requirements, a 10 MVA installation is in place with work underway on an additional 10 MVA supply. The full steady state requirement of the mine is 40 MVA. Current site construction, underground development and management complements total over 1 700 people, with approximately

Flotation circuit construction at the WBJV Project 1 site.

January 2015  MODERN MINING  43