15th Nov 2006 07:04
African Platinum Plc15 November 2006 African Platinum plcTicker: APPIndex: AIMSector: Platinum and precious metals SCOPING STUDY SEES POTENTIAL FOR 1 MILLION OUNCEPER YEAR PRODUCTION AT LEEUWKOP BY AFPLATS Johannesburg, 15 November 2006 - An independent scoping study on the expansionpotential of African Platinum's Leeuwkop project, announced today, concludesthat the construction of two further mines in the lease area and a totalproduction peaking at approximately 1 million 4E (three platinum group metalsplus gold) ounces per year may be achievable. Development of the first phase of the project - a forecast 300 000 ounce peryear mining and concentrating operation with an estimated life of 20 years -is due to start in the first quarter of 2007 and preparatory work at the site onthe Western Limb of the Bushveld Complex is already underway. However, Afplatsand its black economic empowerment partners have a resource base of 92 millionounces in the Greater Leeuwkop project area and the company's eventual aim is totreble the size of the Phase 1 operation. The scoping study, undertaken by Turgis Consulting, anticipates two more mines,operating at similar depths to the proposed Phase 1 mine, each with its ownconcentrator, with similar production rates and similar returns. Low-costmechanised mining methods, similar to those intended for Phase 1, would also beused. This is expected to be made possible due to the width and shallow dip ofthe orebody. If realised, the estimated production would result in Afplats becoming thefourth largest producer of platinum in the world. In addition, it is envisagedthat the synergies offered by shared infrastructure associated with developingthe contiguous resources would result in both capital and operating savings atthe company level, potentially enabling Afplats to further consolidate itsanticipated position in the lowest quartile of production cash costs for theindustry. Afplats CEO Roy Pitchford said the findings of the review would now be testedand upgraded to feasibility study level through further drilling, a 3D seismicsurvey and detailed mining and beneficiation design. It is anticipated that itwill take two to three years to complete this work, which will also cover thepossibility of Afplats developing its own smelting facilities at Leeuwkop. The company recently concluded an agreement with Impala Refining Services (IRS)in terms of which IRS will purchase all the concentrate produced by LeeuwkopPhase 1 for a 10-year period. The agreement allows Afplats to undertake its ownsmelter testwork on a portion of the concentrate for three years as part of thefollow-up expansion studies. AFRICAN PLATINUM PLC ENQUIRIES: Chief Executive Investor & Media RelationsRoy Pitchford Kathy du Plessis+27 (0)82 419 2581 +27 (0)11 728 4701+44 (0)77 9390 9985 +27 (0)83 266 5847 (Mobile) [email protected] Website: www.afplats.com DISCLAIMER: Investing in all equities, including natural resources-relatedequities, carries risks which should be taken into consideration when making aninvestment. This announcement contains forward-looking statements regardingAfrican Platinum plc, including the development of its mining developmentprojects. Actual results relating to any and all of these subjects may differmaterially from those presented. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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