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Platinum Australia for sunshine and riches
John Lewins
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It could be the sunny weather that has attracted Platinum Australia (PLA) to explore platinum mining projects in SA, or the attractive platinum-rich areas on the bushveld complex and relatively untapped Kalahari. Either way, PLA CEO, John Lewins tells Laura Cornish that the company is affirming its presence in the country with the development and possible expansion of two significant platinum deposits.
The combination of PLA's projects (using current resource figures) should see PLA emerge as a 300 000oz platinum producer by 2011.
SMOKEY HILLS
Situated on the eastern limb of the bushveld complex, next to Anglo Platinum's Modikwa mine, Smokey Hills (1moz resource) started with open-pit mining in January - the start of a production chain reaction that will see the project reach full production in October.
The project will be commissioned in June, when underground mining will also commence, record its first ore feed in July, and ship its first concentrate in August, Lewins expects.
Lewins explains that Smokey Hill's initial lifespan is around seven years, from which it will produce about 95 000ozpa of platinum.
Design throughput is 720 000tpa, but the plant is designed for ease of expansion and could be ramped up to 1,2mtpa with the introduction of a third mill, should PLA identify additional resources.
Averaging at 5g/t, the deposit has a basket of minerals (PGMs) including 45% platinum, 45% palladium, 9% rhodium and 1% gold.
Between July 2006 and the present, capital expenditure on the project has risen from $40m (about R306.6m) to $49m (R376m).
The project shares the same platinum reef (UG2 only) with Modikwa, and will reach a maximum depth of 170m.
Underground mining will be via three adits on reef into each of the two hills, and, Lewins adds, will also have low operating costs and require minimal amounts of power.
In its effort to support the DME's BEE legislation, PLA is also reducing its 80% stake in the Smokey Hills project to 60%, through the sale of a stake to a BEE consortium based on the valuation from the bankable feasibility study.
The BEE shareholding will constitute a variety of local black communities, as opposed to the conventional approach of appointing a single BEE shareholder.
Although the project is at avery early stage, Lewins adds that there is definite potential to expand on the project's current 110ha area, with exploration investigations already underway.
KALAHARI PLATINUM PROJECT
Situated in the Kalahari, the Kalahari Platinum project (Kalplats) is a substantially larger resource than Smokey Hills, but has not yet progressed as far.
The project which has a 3.4moz resource and a high grade resource of 1.4moz at grade of about 3.5g/t, is a joint venture project between PLA (49%) and ARM Platinum (51%).
The deposit lies on the Kraaipan Greenstone belt and sits 45km west of the Kalgold open cast mine.
Kalplats has a possible six-year lifespan and currently consists of seven separate deposits, however, "there is a lot of potential to significantly increase the resource further," Lewins says.
Upon completion of the bankable feasibility study in June, the target is to increase the total resource from 3.4moz to 10moz and the high grade resource to between 3 and 5moz, which would more than double the projected lifespan of the project.
"The open pit deposit's genesis is of the same nature as the bushveld complex," he adds.
According to current statistics, Kalplats has a 12km strike length, with emphasis on high grade reef sections initially.
The expansion project could potentially increase the strike length by 38km.
PANTON - AUSTRALIA
The Panton project signifies the reason for PLA's existence, although it was put on hold following the completion of a BFS in August 2003, when metal prices were less than half of current levels.
Today it is the most advanced platinum project in Australia, specifically in the Kimberley region of Western Australia.
The open-cast resource is relatively small, estimated to produce about 40 000ozpa of PGM, for about four years.
An updated BFS is due for completion in June, which will also confirm the grades and quantities of nickel and chrome.
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