Platinum Group Metals Ltd. [PTM-TSX; PLG-NYSE American] reports that the Department of Mineral Resources and Energy of South Africa has notified the company in writing that the Waterberg JV Resources (Pty) Ltd. Mining Right for the Waterberg Project has been granted. The Waterberg Project is located on the Northern Limb of the Bushveld Complex in South Africa, approximately 85 km north of the town of Mokopane (formerly Potgietersrus).
A definitive feasibility study announced in September 2019 models the Waterberg mine as a low cost, large-scale, shallow, decline-accessible, mechanised, palladium, platinum, gold and rhodium (4E or PGM) mine with 19.5 million 4E ounces in proven and probable mineral reserves and projects that the mine will produce 420,000 4E ounces per year at a steady state. The current basket price per 4E ounce of Waterberg PGMs is approximately US$2,100 and the Waterberg DFS estimated the life-of-mine cash cost per 4E ounce at US$640.
The Waterberg Mining Right was issued for an initial period of 30 years and may be renewed for further periods, each of which may not exceed 30 years at a time. Mining will be subject to the Environmental Authorization granted on November 10, 2020, Water Use Licenses and compliance with other legislation on an ongoing basis.
Michael Jones, President and CEO, said, “We are very pleased to be granted a mining right in a positive PGM market, providing the opportunity to move forward to the next steps in mine financing, construction and development. We see a role for PGMs to play in many aspects of the transition to new sustainable and more efficient energy technologies. The Waterberg Mining Right is both an opportunity and a responsibility to develop the mine safely for the maximum benefit of all the stakeholders. By developing this new mine safely and efficiently, we plan to achieve the best return for shareholders, local communities and government.”