Spitzkop
Spitzkop is a mineral property with high grade near surface PGM mineralization occurring in both the UG2 and Merensky reefs with platinum being the dominant ore mineral.
The Spitzkop Project is located on the Eastern Limb of the Bushveld Complex in Mpumalanga Province. Angloplats, the world's largest producer of PGM, is currently planning a series of platinum mines in the UG2 reef in the immediate vicinity to Spitzkop, namely the Helena, De Brochen and Booysendal platinum mines. Aquarius Platinum Ltd. is developing the Everest South mine and Eastplats is conducting a feasibility study on the Mareesburg PGM project.
The New Order rights at Spitzkop are currently registered in the name of Spitzkop Platinum Pty Ltd. ("Spitzplats") and are in good standing. Eastplats entered into a 50:50 Joint Venture Agreement with Spitzplats(April 2005) and subsequently Eastplats acquired a 74% interest in Spitzplats. Spitzplats is an "empowered" company under the Empowerment Charter and fully compliant with South African B.E.E. requirements. The transactions are fully compliant with South African law and the New Mining Act.
The technical data used for the Mineral Resource estimates were generated by Anglo American, Samancor (B.H.P.), Impala and Eastplats. The data used are considered to be of a high quality and to be reliable.
The PGM Resources in the UG2 at Spitzkop are high grade with a fairly constant Pt/Pd ratio, with Pt always dominating over Pd.
The average thickness of the UG2 Reef at Spitzkop is 1.5m. Dips of the UG2 reef are consistent across most of the property at approximately 12º.
The Merensky Reef at Spitzkop has an average thickness of 3m thick with the same dip as the UG2, and an average thickness of 1.5m.
Although preliminary metallurgical test work by Impala reported metal recoveries as high as 93% in the UG2, it is expected that metal recoveries at Spitzkop will be similar to those on other PGM properties and mines in production in the Spitzkop area, with approximately 85% recovery of the PGM in the concentrate. At this time it is expected that Eastplats would receive between 80 and 85% of the refined metal value as a result of refinery changes. The concentrate produced from Spitzkop would be platinum and rhodium rich and may command a premium.
In 2006/7 Eastplats conducted Phase 1 (Pre-feasibility) Studies on Spitzkop. Phase 2 studies will include trial mining of the UG2 Reef at Spitzkop and are expected to commence late 2007/early 2008. Qualified consultants with substantial PGM project experience gained on previous PGM projects in South Africa are being used. The work is being undertaken according to strict standards demanded by the SAMREC/SAMVAL codes, and will be JORC compliant. MSA Consultants are supervising all QA/QC requirements to meet these standards. These codes meet the regulatory guidelines for stock exchanges in Canada, the U.S.A., the U.K. and Australia.
Kennedy's Vale
Kennedy's Vale is a very large underground resource containing PGM's in both the UG2 and Merensky Reefs with a high platinum content.
The Kennedy's Vale project comprises PGM minerals rights on several farms in the Steelpoort Valley. Previous exploration on the property was undertaken by Rand Mines, Gencor and Impala Platinum Holdings Limited (Implats) during the period 1985 to 2003.
The existing infrastructure includes two vertical shafts that intersect the UG2 at a depth of approximately 900 m. A drilling programme, which is part of a pre-feasibility study, was completed in 2007.
Both the UG2 and the Merensky Reefs occur at Kennedy's Vale. The UG2 is a distinct chromitite layer, approximately 100 cm thick at Kennedy's Vale separated from the Merensky Reef by some 200 m vertically. The Merensky Reef is 2.5 m thick at Kennedy's Vale.
Although preliminary metallurgical test work by Impala reported metal recoveries as high as 93% in the UG2, it is expected that metal recoveries at Kennedy's Vale will be similar to those on other PGM properties and mines in production in the Spitzkop area, with approximately 85% recovery of the PGM in the concentrate. At this time it is expected that Eastplats would receive between 80 and 82.5% of the refined metal value as a result of refinery changes. The concentrate produced from Kennedy's Vale would be platinum and rhodium rich and may command a premium.
In 2006/7 Eastplats conducted Phase 1 (Pre-feasibility) Studies on Kennedy's Vale. Phase 2 studies will include trial mining of the UG2 Reef at Spitzkop and are expected to commence late 2007/early 2008. Qualified consultants with substantial PGM project experience gained on previous PGM projects in South Africa are being used. The work is being undertaken according to strict standards demanded by the SAMREC/SAMVAL codes, and will be JORC compliant. MSA Consultants are supervising all QA/QC requirements to meet these standards. These codes meet the regulatory guidelines for stock exchanges in Canada, the U.S.A., the U.K. and Australia.
