Nkwe Platinum (ASX: NKP) is an emerging PGM exploration and development company with a number of world class assets in the Bushveld Complex in South Africa, which produces 70% of the world’s platinum.
The company's main Tubatse and Garatau Projects consist of five contiguous farms with a strike length of more than 30km. These projects are located in an established mining district with well developed infrastructure.
Nkwe Platinum announces positive bankable feasibility study on Garatau Project
Emerging platinum company Nkwe Platinum (ASX: NKP) has announced details of the bankable feasibility study on its Garatau Project, highlighting an average production of between 240,000 and 400,000 tonnes per month with an initial mine life of + 40 years.
The initial BFS findings were presented to the Nkwe Board by TWP and confirmed the robust nature of the project and the economic viability of its proposed development.
The BFS estimates average production of between 240,000 and 400,000 tonnes per month with an initial mine life of + 40 years. Average life of mine cash costs of between US$435/oz and US$535/oz assuming a current 3PGM+Au basket price of approx. US$1,200/oz.
Managing Director Maredi Mphahlele said the company was very pleased with the results, particularly the very healthy operating cashflows and returns.
"Perhaps the most encouraging element is the significant benefits that can be achieved by adopting a highly flexible approach to mine development," Mr Mphahlele said.
"Through the development of an initial operation focussed solely on the Merensky Reef and with a phased development of the UG2 Reef, there is considerable opportunity to further enhance the positive project economics and greatly accelerate project development."
The BFS highlights include access by large diameter twin shaft system, mining of both the Merensky and UG2 Reefs, hybrid mining methods, fully automated MF2 processing plant, plant recoveries: Merensky 84 – 87%, UG2 82 – 84%, mine construction in 2011 and ramp up to steady state production by 2016.
The capital expenditure is between ZAR 6.5 billion and ZAR 8.3 billion – subject of the current optimisation process, which is expected to reduce initial capital estimates.
Power, water and all other infrastructure requirements are catered for within existing or future regional development planning.
Within the total project area up to three large mining operations can be developed in phase within a single management and logistics structure.
Mr Mphahlele said based on the very positive BFS findings Nkwe would fast track finalisation of the Joint Venture with Xstrata and completion of the optimised BFS, scheduled for April 2010) to enable an accelerated project development timetable.
As part of the BFS and Nkwe’s ongoing exploration programme, the Garatau Project resource has been upgraded to 14.2Mozs of Measured Resources and 9.1Mozs of Inferred Resources.
The resource upgrade is based on assays from approximately 10,000m of additional drillin, with an approximate 300% increase in Measured Resources (from 4.5Mozs 3PGE+Au to 14.2Mozs 3PGE+Au).
Over 60% of total resources are now in a Measured category
The additional drilling highlighted a lower grade area in the north west portion of the Garatau Project, resulting in a minor decrease of average resource grade of Merensky Reef (4.74 g/t to 4.40 g/t).
The lower grade area lies outside of the first 20 years of mining contemplated in the BFS
Nkwe Platinum’s main Tubatse and Garatau Projects consist of five contiguous farms with a strike length of more than 30km. These Projects are located in an established mining district with well developed infrastructure.
It borders Anglo Platinum’s Modikwa Joint Venture to the east, Implat’s Marula mine to the north and Eastplat’s Spitzkop – Kennedy’s Vale project in the south.
