july 2012 platinum group metals ltd. - tmxmoney · this presentation has been prepared by platinum...
TRANSCRIPT
July 2012 PLG: NYSE MK T PTM: TSX
PLATINUM GROUP METALS LTD.
An Emerging Platinum Producer
T h i s p r e s e n t a t i o n h a s b e e n p r e p a r e d b y P l a t i n u m G r o u p M e t a l s L t d . ( “ P l a t i n u m G r o u p ” o r t h e “ C o m p a n y ” ) . I n f o r m a t i o n i n c l u d e d i n t h i s p r e s e n t a t i o n r e g a r d i n g t h e C o m p a n y ’ s m i n e r a l p r o p e r t i e s h a s b e e n c o m p i l e d b y R . M i c h a e l J o n e s , P . E n g , t h e P r e s i d e n t a n d C h i e f E x e c u t i v e O f f i c e r o f t h e C o m p a n y , a n d a n o n - i n d e p e n d e n t Q u a l i f i e d P e r s o n f o r p u r p o s e s o f N a t i o n a l I n s t r u m e n t 4 3 - 1 0 1 - S t a n d a r d s o f D i s c l o s u r e f o r M i n e r a l P r o j e c t s ( “ N I 4 3 - 1 0 1 ” ) , b a s e d o n t h e i n d e p e n d e n t t e c h n i c a l r e p o r t s , a n d P r e s s R e l e a s e I n f o r m a t i o n f i l e d b y t h e C o m p a n y w i t h t h e C a n a d i a n s e c u r i t i e s r e g u l a t o r s a n d t h e U . S . S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n ( “ S E C ” ) .
F o r m o r e d e t a i l e d i n f o r m a t i o n r e g a r d i n g t h e C o m p a n y a n d i t s m i n e r a l p r o p e r t i e s , y o u s h o u l d r e f e r t o t h e C o m p a n y ’ s i n d e p e n d e n t t e c h n i c a l r e p o r t s a n d o t h e r f i l i n g s w i t h t h e C a n a d i a n s e c u r i t i e s r e g u l a t o r s a n d t h e S E C , w h i c h a r e a v a i l a b l e a t w w w . s e d a r . c o m a n d w w w . s e c . g o v , r e s p e c t i v e l y . S c i e n t i f i c o r T e c h n i c a l i n f o r m a t i o n c o n t a i n e d h e r e i n i s d e r i v e d f r o m t h e C o m p a n y ’ s t e c h n i c a l r e p o r t s w h i c h i n c l u d e m o r e d e t a i l e d i n f o r m a t i o n w i t h r e s p e c t t o t h e C o m p a n y ’ s p r o p e r t i e s , i n c l u d i n g t h e d a t e s o f s u c h r e p o r t s a n d t h e e s t i m a t e s i n c l u d e d t h e r e i n , d e t a i l s o f q u a l i t y a n d g r a d e o f e a c h r e s o u r c e , d e t a i l s o f t h e k e y a s s u m p t i o n s , m e t h o d s a n d p a r a m e t e r s u s e d i n t h e r e s o u r c e e s t i m a t e s a n d t h e F e a s i b i l i t y S t u d y , a g e n e r a l d i s c u s s i o n o f t h e e x t e n t t o w h i c h t h e r e s o u r c e e s t i m a t e s a n d t h e o t h e r e s t i m a t e s a n d p r o j e c t i o n s i n c l u d e d i n t h e r e p o r t s m a y b e m a t e r i a l l y a f f e c t e d b y a n y k n o w n e n v i r o n m e n t a l , p e r m i t t i n g , l e g a l , t a x a t i o n , s o c i o - p o l i t i c a l , m a r k e t i n g , o r o t h e r r e l e v a n t i s s u e s .
I n f o r m a t i o n i n c l u d e d i n t h i s p r e s e n t a t i o n , t h e C o m p a n y ’ s i n d e p e n d e n t t e c h n i c a l r e p o r t s a n d t h e C o m p a n y ’ s o t h e r p u b l i c s t a t e m e n t s r e l a t e d t o i t s m i n e r a l p r o p e r t i e s h a s b e e n p r e p a r e d i n a c c o r d a n c e w i t h s e c u r i t i e s l a w s i n e f f e c t i n C a n a d a , w h i c h d i f f e r f r o m U . S . s e c u r i t i e s l a w s . T h e S E C p e r m i t s U . S . m i n i n g c o m p a n i e s , i n t h e i r f i l i n g s w i t h t h e S E C , t o d i s c l o s e o n l y t h o s e m i n e r a l d e p o s i t s t h a t a c o m p a n y c a n e c o n o m i c a l l y a n d l e g a l l y e x t r a c t o r p r o d u c e . T h e C o m p a n y u s e s c e r t a i n t e r m s i n t h i s p r e s e n t a t i o n , s u c h a s “ r e s o u r c e s , ” t h a t t h e S E C ’ s g u i d e l i n e s s t r i c t l y p r o h i b i t U . S . r e g i s t e r e d c o m p a n i e s f r o m i n c l u d i n g i n t h e i r f i l i n g s w i t h t h e S E C . Y o u a r e u r g e d t o c o n s i d e r c l o s e l y t h e d i s c l o s u r e i n o u r F o r m 4 0 - F a n n u a l r e p o r t , w h i c h m a y b e s e c u r e d f r o m u s , o r f r o m t h e S E C ’ s w e b s i t e a t w w w . s e c . g o v .
T h i s p r e s e n t a t i o n a l s o c o n t a i n s i n f o r m a t i o n a b o u t a d j a c e n t p r o p e r t i e s o n w h i c h t h e C o m p a n y h a s n o r i g h t t o e x p l o r e o r m i n e . T h e C o m p a n y a d v i s e y o u t h a t t h e S E C ’ s m i n i n g g u i d e l i n e s s t r i c t l y p r o h i b i t i n f o r m a t i o n o f t h i s t y p e i n d o c u m e n t s f i l e d w i t h t h e S E C . I n v e s t o r s a r e c a u t i o n e d t h a t m i n e r a l d e p o s i t s o n a d j a c e n t p r o p e r t i e s a r e n o t i n d i c a t i v e o f m i n e r a l d e p o s i t s o n o u r p r o p e r t i e s .
T h i s p r e s e n t a t i o n i s n o t a n o f f e r t o s e l l , o r a s o l i c i t a t i o n t o b u y , a n y s e c u r i t i e s i n a n y j u r i s d i c t i o n . T h e T o r o n t o S t o c k E x c h a n g e a n d t h e A m e r i c a n S t o c k h a v e n o t r e v i e w e d a n d d o n o t a c c e p t r e s p o n s i b i l i t y f o r t h e a c c u r a c y o r a d e q u a c y o f t h i s p r e s e n t a t i o n , w h i c h h a s b e e n p r e p a r e d b y t h e C o m p a n y .
H i s t o r i c a l r e s u l t s o r f e a s i b i l i t y m o d e l s p r e s e n t e d h e r e i n a r e n o t g u a r a n t e e s o r e x p e c t a t i o n s o f f u t u r e p e r f o r m a n c e .
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DISCLOSURE
C e r t a i n o f t h e s t a t e m e n t s m a d e h e r e i n , i n c l u d i n g s t a t e m e n t s r e g a r d i n g t h e t i m i n g o f f u t u r e a c t i v i t i e s a n d a c h i e v e m e n t s b y t h e C o m p a n y , f u t u r e a n t i c i p a t e d e x p l o r a t i o n a n d d e v e l o p m e n t p r o g r a m s , c o m p l e t i o n o f a F e a s i b i l i t y S t u d y i n r e s p e c t o f t h e W e s t e r n B u s h v e l d J o i n t V e n t u r e , b u s i n e s s p l a n s , p o t e n t i a l m i n i n g s c e n a r i o s a n d t i m i n g o f p r o d u c t i o n , b u s i n e s s t r e n d s a n d f u t u r e o p e r a t i n g f a c t o r s a n d a n t i c i p a t e d p l a t i n u m s u p p l y a n d d e f i c i t s a r e f o r w a r d - l o o k i n g a n d s u b j e c t t o i m p o r t a n t r i s k f a c t o r s a n d u n c e r t a i n t i e s , m a n y o f w h i c h a r e b e y o n d t h e C o m p a n y ’ s a b i l i t y t o c o n t r o l o r p r e d i c t . I n a d d i t i o n , r e s o u r c e e s t i m a t e s , t h e p r e - f e a s i b i l i t y s t u d y a n d t h e F e a s i b i l i t y S t u d y r e s u l t s c o n s t i t u t e f o r w a r d - l o o k i n g s t a t e m e n t s t o t h e e x t e n t t h a t t h e y r e p r e s e n t , r e s p e c t i v e l y , e s t i m a t e s o f m i n e r a l i z a t i o n t h a t m a y b e e n c o u n t e r e d u p o n a d d i t i o n a l e x p l o r a t i o n a n d e s t i m a t e s o f t h e c a p i t a l a n d o p e r a t i n g e x p e n s e s , m e t a l s a n d c u r r e n c y p r i c e s a n d o t h e r o p e r a t i n g c o n d i t i o n s t h a t m a y b e e n c o u n t e r e d i n t h e f u t u r e .
F o r w a r d - l o o k i n g s t a t e m e n t s a r e n e c e s s a r i l y b a s e d o n a n u m b e r o f e s t i m a t e s a n d a s s u m p t i o n s t h a t a r e i n h e r e n t l y s u b j e c t t o s i g n i f i c a n t b u s i n e s s , e c o n o m i c a n d c o m p e t i t i v e u n c e r t a i n t i e s a n d c o n t i n g e n c i e s . K n o w n a n d u n k n o w n f a c t o r s c o u l d c a u s e a c t u a l r e s u l t s t o d i f f e r m a t e r i a l l y f r o m t h o s e p r o j e c t e d i n t h e f o r w a r d - l o o k i n g s t a t e m e n t s . S u c h f a c t o r s i n c l u d e , a m o n g o t h e r s : m e t a l s p r i c e v o l a t i l i t y ; d e m a n d f o r p l a t i n u m a n d t h e p l a t i n u m s u p p l y ; a d d i t i o n a l f u n d r a i s i n g r e q u i r e m e n t s ; d e f e c t i v e t i t l e t o m i n e r a l c l a i m s o r p r o p e r t y ; d i s c r e p a n c i e s b e t w e e n a c t u a l a n d e s t i m a t e d r e s e r v e s a n d r e s o u r c e s , b e t w e e n a c t u a l a n d e s t i m a t e d d e v e l o p m e n t a n d o p e r a t i n g c o s t s , b e t w e e n a c t u a l a n d e s t i m a t e d m e t a l l u r g i c a l r e c o v e r i e s a n d b e t w e e n e s t i m a t e d a n d a c t u a l p r o d u c t i o n ; c h a n g e s i n n a t i o n a l a n d l o c a l g o v e r n m e n t l e g i s l a t i o n ( i n c l u d i n g e n v i r o n m e n t a l l e g i s l a t i o n ) , t a x a t i o n , c o n t r o l s , r e g u l a t i o n s a n d p o l i t i c a l o r e c o n o m i c d e v e l o p m e n t s i n C a n a d a , S o u t h A f r i c a o r o t h e r c o u n t r i e s i n w h i c h t h e C o m p a n y d o e s o r m a y c a r r y o u t b u s i n e s s i n t h e f u t u r e ; s u c c e s s o f e x p l o r a t i o n a c t i v i t i e s a n d p e r m i t t i n g t i m e l i n e s ; t h e s p e c u l a t i v e n a t u r e o f m i n e r a l e x p l o r a t i o n , d e v e l o p m e n t a n d m i n i n g , i n c l u d i n g t h e r i s k s o f o b t a i n i n g n e c e s s a r y l i c e n s e s a n d p e r m i t s ; d i l u t i o n ; c o m p e t i t i o n ; c u r r e n c y f l u c t u a t i o n s ; a n d l o s s o f k e y e m p l o y e e s . T h e F e a s i b i l i t y S t u d y i n c l u d e s p l a n s o n s u r f a c e r i g h t s t h a t t h e c o m p a n y d o e s n o t o w n . F a i l u r e t o a c q u i r e t h e s e s u r f a c e r i g h t s m a y m a t e r i a l l y i m p a c t t h e p l a n s . I n a d d i t i o n , t h e r e a r e r i s k s a n d h a z a r d s a s s o c i a t e d w i t h t h e b u s i n e s s o f m i n e r a l e x p l o r a t i o n , d e v e l o p m e n t a n d m i n i n g , i n c l u d i n g e n v i r o n m e n t a l h a z a r d s , i n d u s t r i a l a c c i d e n t s , u n u s u a l o r u n e x p e c t e d f o r m a t i o n s , p r e s s u r e s , m i n e c o l l a p s e s , c a v e - i n s o r f l o o d i n g ( a n d t h e r i s k o f i n a d e q u a t e i n s u r a n c e o r i n a b i l i t y t o o b t a i n i n s u r a n c e , t o c o v e r t h e s e r i s k s ) , a s w e l l a s t h e f a c t o r s d e s c r i b e d o r r e f e r r e d t o i n t h e s e c t i o n e n t i t l e d “ R i s k F a c t o r s ” i n t h e C o m p a n y ’ s A n n u a l I n f o r m a t i o n F o r m f o r t h e y e a r e n d e d A u g u s t 3 1 w h i c h i s a v a i l a b l e o n S E D A R a t w w w . s e d a r . c o m , a n d i s i n c l u d e d a s p a r t o f t h e C o m p a n y ’ s F o r m 4 0 - F a n n u a l r e p o r t f i l e d w i t h t h e S E C a t w w w . s e c . g o v . Y o u a r e a d v i s e d t o r e v i e w t h e s e r i s k f a c t o r s , a n d n o t t o p l a c e u n d u e r e l i a n c e o n f o r w a r d - l o o k i n g s t a t e m e n t s .
T h e C o m p a n y u n d e r t a k e s n o o b l i g a t i o n t o u p d a t e p u b l i c l y o r r e l e a s e a n y r e v i s i o n s t o f o r w a r d - l o o k i n g s t a t e m e n t s t o r e f l e c t e v e n t s o r c i r c u m s t a n c e s a f t e r t h e d a t e o f t h i s p r e s e n t a t i o n o r t o r e f l e c t t h e o c c u r r e n c e o f u n a n t i c i p a t e d e v e n t s .
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FORWARD LOOKING STATEMENTS
The Company
WHY PLATINUM GROUP
METALS?
� A well funded emerging producer with active exploration in South
Africa and Canada.
� Flagship Western Bushveld Joint Venture (WBJV) - large scale mine development in construction.
� Waterberg – a new thick, near sur face PGM discovery on the North Limb.
� Strategic, low cost project portfolio moving forward in a challenging environment for PGM production.
5
AN EMERGING PLATINUM PRODUCER
Stock Symbols PLG: NYSE MKT PTM: TSX Market Capitalization $170M CAD Share Price $0.90 CAD 52 Week High/Low $1.80/$0.81 Shares Outstanding 177,584,542 Options 14,469,500 Fully Diluted 192,054,042 Cash $65M CAD
6
SHARE STRUCTURE
THREE YEARS
October 2009 Feasibility Study Update
April 2010 74% Transaction Completed
October 2010 $143M Equity Financing
January 2011 WBJV Construction Commences
August 2011 Project Loan Mandate
November 2011 Waterberg Discovery April 2012
Mining License Awarded
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SHAREHOLDERS AND RESEARCH
Major Shareholders Franklin Advisers Inc. Genesis Investment Management LLP JP Morgan Asset Management Ltd. Liberty Mutual Insurance Group T. Rowe Price Associates Inc. Jennison Associates LLC Wellington Management Company LLP RBC Global Asset Management Inc. Chilton Investment Company LLC Cambrian Capital LP R. Michael Jones U.S. Global Investors Inc. Canada Pension Plan
Research Coverage RBC Capital Markets Credit Suisse GMP Securities Raymond James Stifel Nicolaus Haywood Securities Mackie Research Capital CIBC World Markets
Index Membership S&P/TSX Small Cap ISE Global Platinum
The depth of South Af r ican p lat inum mines is becoming unsusta inable at current metal pr ices
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DEEP AND DEEPER
WESTERN BUSHVELD JVShallow Declines
DEPTH: 100m to 600mCOST: $400M/$500M USDLEAD TIME: 3 Years
Mostly Mined Out
First GenerationVertical Shafts
DEPTH: 600m to 1000mCOST: $1B USDLEAD TIME: 5 to 7 years
Mostly Mined Out
Second GenerationVertical Shafts
DEPTH: 1000m+COST: $1.5B USDLEAD TIME: 5 to 7 years
Nearing Depletion
Third Generation Vertical Shafts
DEPTH: 1500m to 2500m COST: $2B USD per shaftLEAD TIME: 7 to 10 Years
Sinking, Developing, Operating or Cancelled
WBJV HIGHLY COMPETITIVE
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SPOT PLATINUM PRICE
Development WESTERN BUSHVELD
JOINT VENTURE
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THE WESTERN BUSHVELD COMPLEX SOUTH AFRICA 70% OF GLOBAL PLATINUM PRODUCTION
The nor thern por t ion of the Western L imb is w i tnessing over $4B USD in new p lat inum mine bui ld ing
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NORTH WEST LIMB
� Platinum Group has a 74% interest in the WBJV. Wesizwe Platinum (WEZ/JSE) owns the remaining 26%.
� Chinese state owned Jinchuan acquired a controll ing stake in Wesizwe for $900M (USD) in 2010.
� The WBJV is one of the last remaining undeveloped shallow, high grade deposits on the Western Bushveld.
� A $100M Phase 1 construction program started in 2011 with first production scheduled for mid 2014.
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WESTERN BUSHVELD JOINT VENTURE
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WBJV PROJECT 1 – QUICK FACTS
• See UFS Oct 2009, www.sedar.com, including Risk Factors, Metal Prices and Differences in Reporting under SEC Guidelines in the USA • Resources may never become reserves, figures may change during project implementation in progress. • Figures based on 100% Project Valuation – PTM 74%, WEZ 26% • Metal Price Assumptions: Pt: $1,343, Pd: $322, Rh: $4,951, Au: $807 (2009 UFS) * Updated Operational Guidance, April 16, 2012 • See Appendix for tonnes and grade associated with reserves and resources and associated Qualified Persons
Cent ra l Decl ine
S i te Establ ished
Power and Water Connected
Long - term Arrangements in P lace
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WESTERN BUSHVELD JOINT VENTURE
Adjacent Sty ldr i f t development
$1 .5B capi ta l cost mining the same layers down-dip of the WBJV
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STYLDRIFT ANGLO PLATINUM AND RBPLATS
Cent ra l dec l ine looking nor th toward the Wesizwe/J inchuan development .
$1 .5B capita l cost mining the same layers down-dip of the WBJV.
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WESTERN BUSHVELD JOINT VENTURE
June 2012
South Box Cut Const ruct ion.
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WESTERN BUSHVELD JOINT VENTURE
� Syndicate announced in August 2011 includes Barclays Capital, Standard Bank and CAT Financial.
� $260M (USD) senior loan facil ity with a nine year term.
� Additional working capital facil ity – up to $25M (USD) with standby subordinate loan facil ity if required.
� Hedging emphasis on byproducts – palladium, gold, base metals – platinum is 70% of projected revenue.
� Closing anticipated in Q3 2012.
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PROJECT BANKING
� The North l imb has recently seen
mine expansion by Anglo Platinum and a great increase in exploration investment
� The Mogalkwena mine is Anglo Platinum’s most profitable operation
� The Ivanplats Platreef discovery
has attracted a $280M (USD) investment from JOGMEC and ITOCHU Corp. for an 8% interest
� The Platreef project currently has over 30 dri l ls on site and is planning a public of fering
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THE NORTH LIMB
Anglo Platinum’s Mogalkwena Mine includes four open pits employing conventional truck and shovel operations. Life-of-mine extends beyond 2060 with a Mineral Resource of 141.6 4E million ounces and an Ore Reserve of 55.3 4E million ounces. 2010 production was 260,000 ounces 4E. (Source: Anglo Platinum)
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THE NORTH LIMB BUSHVELD COMPLEX SOUTH AFRICA
WATERBERG PROJECT AREA REGIONAL GEOLOGY
� Japan oil and Gas Mineral Exploration Corporation (JOGMEC) partnership completed in 2009
� JOGMEC has earned a 37% interest by spending $3.2M USD
� Platinum Group holds a 49.97% ownership
� Discovery hole announced November 9, 2011
� Current program – 10 dri l l r igs, +3000 assays in progress
� Init ial resource estimate – Q3 2012
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WATERBERG
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WATERBERG – DRILL RESULTS
Zone Average Thickness (m)
Average Grade 3E g/t
Number of Intercepts
T0 2.13 1.69 16
T1 3.40 2.68 15
T2 3.91 4.26 19
T3 2.15 2.68 18
F 16.29 3.08 7
• T Zones: 50% Pd, 30% Pt, 20% Au • F Zone: 55% Pd, 40% Pt, 5% Au
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SCHEMATIC SECTION
*Conceptual - not to scale
� Q1 2012 – Mining Right record of decision – COMPLETED.
� Q3 2012 – Completion of formal of f take arrangement
� Q3 2012 – Completion of Project Banking
� Q3 2012 – Waterberg Init ial Resource Statement
� Q3 2012 – Start of Phase 2 implementation
� Q4 2012 – Waterberg Regional Exploration
� Mid 2014 – First production.
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CORPORATE MILESTONES
� Large scale, high margin platinum development in progress
� Near term milestones: of f take and funding completion
� New potentially large scale PGM discovery on North Limb with Japanese funding partner JOGMEC – 10 dri l ls
� Strategic project portfolio in a challenging cl imate for PGM producers globally.
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CONCLUSION
P lat inum Group Meta ls L td .
Sui te 328 – 550 Burrard St reet
Vancouver, BC V6C 2V5
Canada
+1 604-899-5450
info@plat inumgroupmetals .net
www.plat inumgroupmetals .net
P lat inum Group Meta ls RSA (Pty ) L td .
Technology House
V ic tor y Park
Johannesburg , RSA
+27 11 782 2186
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CONTACT
WBJV Reserves and Resources
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APPENDIX
35
WBJV ~ MEASURED RESOURCES
Measured Mineral Resource (4E)
Cut-off (cm.g/t)
Million Tonnes
(Mt)
Grade 4E
(g/t)
Mining Width
(m)
Tonnes PGE (4E)
MozPGE’s(4E)
Project 1 MR
300 6.603 8.38 1.33 55.333 1.779
Project 1 UG2
300 7.464 4.26 1.34 31.797 1.022
Total Measured
300 14.067 6.19 1.34 87.13 2.801
QP Charles Muller of Minxcon, See details Press Release and 43-101 reports on www.sedar.com
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WBJV ~ INDICATED RESOURCES
Indicated Mineral Resource (4E)
Cut-off (cm.g/t)
Million Tonnes
(Mt
Grade 4E
(g/t)
Mining Width
(m)
Tonnes PGE(4E)
MozPGE’s(4E)
Project 1 & 1A MR
300 11.183 7.25 1.24 81.077 2.607
Project 1 & 1A UG2
300 19.209 4.46 1.39 85.672 2.754
Total Indicated
300 30.392 5.49 1.34 166.749 5.361
QP Charles Muller of Minxcon, See details Press Release and 43-101 reports on www.sedar.com
37
WBJV ~ MERENSKY RESERVES
Tonnes (000) 4E Content 4E
t g/t tonne Moz
Merensky Proven
6,678 5.61 37,478 1.21
Merensky Probable
11,333 5.44 61,677 1.98
Total Merensky Mineral Reserves
18,011 5.51 99,155 3.19
QP Charles Muller of Minxcon Resources, See details Press Release and 43-101 reports on www.sedar.com. Includes mining dilution and flow of ore factors, QPs Tim Spindler and Gordon Cunningham Mining Factors and Updated Feasibility Study October 2009
38
WBJV ~ UG2 RESERVES
Tonnes (000) 4E Content 4E
t g/t tonne Moz
UG2 Proven
5,086 3.37 17,126 0.55
UG2 Probable
8,449 3.41 28,831 0.93
Total UG2 Mineral Reserves
13,535 3.40 45,957 1.48
QP Charles Muller of Minxcon Resources, See details Press Release and 43-101 reports on www.sedar.com, Tim Spindler and Gordon Cunningham Mining Factors and Updated Feasibility Study