Mphahlele

At a glance

The Mphahlele Project is based on the Mphahlele 475KS farm at the northern extremity of the Eastern Limb of the Bushveld Complex. It is the second most-advanced of the company’s projects.

Ownership

Platmin has a 54.29% interest in the project held through Boynton. The balance is owned by Platmin’s BEE partner, the Moepi group of companies.

Location

The project is located some 50km south of Polokwane, the provincial capital of Limpopo Province. It is contiguous with Lonmin’s Limpopo mine on the northern part of the Eastern Limb of the Bushveld Complex.

Map showing Mphahlele operations

Project Area

11,725 hectares.

Infrastructure and access

The project is readily accessible by the national road network and is within 50km of the Polokwane airport. Platmin participates in a joint water forum with the Department of Water Affairs and Forestry to improve water supply in the area. The Company is currently involved in negotiations to formalise a water user’s association including plans also being made for the construction of pipelines to carry water from the Flag Boshielo Dam, located south of the Mphahlele project.

Mineral Resources

In October 2007 Mphahlele’s Mineral Resources were revised in light of further exploratory drilling. This resulted in the upgrading of a substantial proportion of the Mineral Resource from the Inferred to the Indicated category. The Indicated Mineral Resource forms the basis of the Pre-feasibility study underway on the project.

The Indicated Mineral Resource is currently estimated at 34.87Mt at 5.07g/t (3PGE+Au) for 5.69 Moz. Of this, 3.09Moz are attributable to Platmin. Inferred Mineral Resources are estimated at 48.58Mt at 4.37g/t (3PGE+Au) for 6.82Moz of which 3.70Moz are attributable to Platmin. 45.5% of the current Mineral Resource in terms of 3PGE+Au ounces now falls within the Indicated category. Mineral Resources in terms of 3PGE+Au ounces have been declared on both the Merensky Reef and UG2 Chromitite Layer, with the UG2 accounting for 82% of the Indicated Mineral Resource and 63% of the Inferred Mineral Resource.

A higher grade for the UG2 is now estimated in both the Inferred and Indicated categories, 5.64g/t 3PGE+Au compared to 5.11g/t in the previous estimate.

The future

The Mphahlele Project has a 7.9km strike of Merensky Reef and UG2 Chromitite Layer and is adjacent to Lonmin’s Limpopo Platinum operations. The revised Mineral Resource forms the basis for the pre-feasibility study currently underway on the Mphahlele Project. It is expected that concentrate production from Platmin’s Pilanesberg, Mphahlele and Grootboom Projects could reach the critical mass required for consideration of an independent smelter. Platmin has budgeted approximately US$3.34 million for exploration, bulk sampling and metallurgical test work over the Mphahlele Project.