Pilanesberg

At a glance

The Pilanesberg project has matured into the Pilanesberg Platinum Mine. The first blast took place in March 2008, and was followed by the start of development. The UG2 plant was commissioned a year later in March 2009 and the Merensky plant in June 2009. Production is being built up and is scheduled to reach forecast annual steady state production of 250,000 PGM ounces (3PGM+Au) in 2012.

As at 31 December 2009, Pilanesberg mineral resources included those on the Tuschenkomst, Ruighoek, Witkleifontein and Rooderand properties and mineral reserves on the Tuschenkomst and Ruighoek properties.

Ownership

• 72.39% held through Boynton;
• balance of 27.61% held by BEE interests including those of the Moepi Group which holds 25.13%

Location

• Western limb of the Bushveld Complex in South Africa's North West Province;
• 80km from Rustenburg

Enlarge Map showing Pilanesberg operations

Total project area

15, 019 hectares

Access and infrastructure

• Good surfaced road access to Rustenburg, a major hub of the platinum mining industry on the western Bushveld Complex with nearby rail and air links available
• Power of 37MVA of secured - supplied via high capacity power line with 10MVA emergency back-up power plant on site
• Water is secured from the Magalies Water Board with a back-up well-field
• The mine:
  • Shallow open cast mining
  • Two processing plants - UG2 and Merensky - and a dense media separation plant.

Mineral resources and reserves

• Proven and probable mineral reserve of 4.2 million ounces (3PGE+Au) (3.1 million ounces attributable)
• Measured and indicated mineral resources of 5.0 million ounces (3PGE+Au) (3.7 million ounces attributable)
• Inferred mineral resource of 5.7 million ounces (3PGE+Au) (4.1 million ounces attributable)

Current status

• Overburden mining began in March 2008
• Reef mining ramping up to achieve full production in FY2012
• Ore processing started in March 2009 as planned
• First concentrate delivered for smelting and refining in April 2009
• 28,000 PGM ounces in concentrate delivered in year to end December 2009
• Total project capital expenditure to date of US$221 million, 82% of total amount of US$270 million committed

Geology

The Pilanesberg Platinum Mine area is characterized by outcropping reef and near-surface resources. The UG2, Merensky and Pseudo reefs are mined simultaneously in a single open pit. The Pilanesberg Mine lies within the Swartklip Facies of the western limb of the Bushveld Complex. The Upper Critical Zone is attenuated and the Merensky Reef and UG2 Chromitite Layer occur within a vertical interval of 20 to 30 meters. The Upper and Lower Pseudo reefs are located between the Merensky Reef and UG2 Chromitite Layer. Locally, additional mineralization occurs in the anorthosite footwall to the (Contact) Merensky Reef and within harzburgite below the Upper Pseudo Reef where the Merensky Reef is potholed. Strike at the Pilanesberg mine is generally north-south with dips generally to the east varying between 5° and 40°. Local variations in strike and dip do occur and are related to primary “folding or doming” within the Bushveld Complex, as well as later faulting.

Growth potential

In April 2010, Platmin concluded a conditional agreement to acquire the 10% interest in the Sedibelo Platinum Project (Sedibelo) that was held by Barrick Gold Corporation. The Sedibelo property is located adjacent to Pilanesberg, between the latter and the Magazynskraal property on which a bankable feasibility study is currently under way.

The acquisition of Sedibelo will allow Platmin to participate in and benefit from the potential consolidation in the mining of this area. This in turn will enable Platmin to benefit from the cost effective capacity expansion of contiguous resources and to dilute its fixed costs, thus reducing its unit costs.