27th Jan 2005 07:21
AQUARIUS PLATINUM LIMITED27 January 2005New low-cost ounces as Chromite tailings retreatment project enters productionAquarius Platinum Limited ("Aquarius" or "The Company") is pleased to announcethat that the Chromite Tailings Retreatment Project produced its firstconcentrate on 21st January 2005. The project will provide additional newounces to the Aquarius portfolio, demonstrating the company's innovativeapproach to providing low-cost growth.The project is located at the Kroondal Platinum Mine to treat old dumps andcurrent tailings streams derived from the beneficiation processes employed bythe neighbouring chromite miners in the Kroondal area. In addition there willbe a clean up of old dumps on the Kroondal property derived from early chromiteactivities, thus furthering Aquarius' commitment to sound environmentalpractice.Commenting on the first production, Stuart Murray, Chief Executive Officer ofAquarius Platinum said "In less than one year, we have delivered an innovativeoperation providing new low-cost PGM ounces. Despite delayed tailings shipmentsfrom our neighbours due to Christmas shutdowns, I am delighted that the projectis now up and running. It is expected to produce 28,000 PGM ounces per annum atsteady state production."The project is owned by the RK1 Consortium, comprising Aquarius Platinum (SA)(Corporate Services) (Pty) Limited, a wholly owned subsidiary of Aquarius, GBMining & Exploration (SA) (Pty) Limited and Sylvania South Africa (Pty) Ltd.Aquarius holds a participation interest of 50%, with the partners holding 25%each. In addition, as the consortium has contracted Aquarius Platinum (SouthAfrica) (Pty) Ltd to operate the project, a management fee will be earned.The operation will treat 20,000 tonnes of chromite tailings a month, at anaverage grade of 4 g/t PGM, equating to approximately 20,000 PGM ounces in the2005 calendar year (Aquarius attributable 50%). This will rise to 28,000 PGMounces a year (Aquarius attributable 50%) from year two, with the life ofoperation extending, similar to Kroondal itself, to 2017.Average cash costs are forecast at R80 per tonne and US$180 per PGM ounce inyear one, reducing as economies of scale kick-in to R76 per tonne and US$170per PGM ounce in subsequent years. Some small volatility in costs should beexpected as the percentage of dump feed material which incurs additionaltransport costs varies. As such, a rolling-average cost will be used to presentcosts at this operation.In line with capital expenditure forecast in March 2004 when the project wasannounced, total project expenditure totalled US$5 million, of which Aquariusfunded its portion of US$3.2 million from internal cash flows.For further information please contact:In Australia: Willi Boehm Aquarius Platinum Corporate Services Pty Ltd +61 8 9367 5211 In United Kingdom: Alex Buck Nick Bias BuckBias Ltd BuckBias Ltd +44 7932 740 452 + 44 7887 920 530 In South Africa: Charmane Russell Russell & Associates +27 11 880 3924 or visit: www.aquariusplatinum.com ENDRelated Shares:
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