Platinum Group Metals Reports on Waterberg Definitive Feasibility Work
788 – 550 Burrard Street
Vancouver, BC V6C 2B5
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News Release No. 17-345
June 15, 2017
Platinum Group Metals Reports on
Waterberg Definitive Feasibility Work
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM-TSX; PLG-NYSE MKT)
(“Platinum Group” or the “Company”) reports that planned Definitive Feasibility Study
(“DFS”) engineering work on the Waterberg Project is underway, including infill drilling,
resource modelling, mine plan optimization and infrastructure engineering. Engineering
and design work to reduce and improve underground development and optimize the
project scale and return will be part of the DFS.
The Waterberg Project represents one of the few significant undeveloped primary
palladium assets globally. The palladium market has been in a fundamental deficit for a
number of years and based on strong auto demand, limited mine supply and shrinking
stockpiles this deficit is expected to continue.
Detailed drilling targeting the higher grade, thicker portions of the deposit is in progress.
The objective of the drilling is to move portions of the deposit into the measured resource
category and to investigate the best grade portions for inclusion in early mine planning.
License and permitting application work is also underway. Work at Waterberg is wholly
funded at present by 28.35% JV partner JOGMEC (the Japan Oil, Gas and Metals National
Corporation) through an exploration earn-in commitment.
Details
During May 2017 infill drilling re -commenced at Waterberg with the objective of
increasing the confidence level of defined areas of T and F Reef from the inferred to the
indicated or measured level of confidence. A total of eight machines have been deployed
and approximately 11,230 meters have been drilled in this program to date. Assays for
the current drilling program are in process. Several holes drilled in late 2016 have
recently returned assays. Highlights include the following intercepts:
• North Super F Zone Borehole WE097D3 returning 45.1 meters of 4.64 g/t 3PGE,
including 16.6 meters of 7.28 g/t 3PGE;
• North Super F Zone Borehole WE096D0 returning 25.81 meters of 3.62 g/t
3PGE, including 6.15 meters of 4.89 3PGE; and
• T Zone Borehole WB211D2 returning 6.55 meters of 5.81 g/t 3PGE.
The true width of the shallow dipping (30° to 35°) mineralized zones that were sampled
are approximately 82% to 87% of the reported interval from the vertical intercept. For
the efficient application of bulk mining methods and for mine planning, vertical intercepts
of 3 meters or more are desirable. Increased grade thickness zones associated with
minor footwall troughs or bays along the 13 km long layered complex have recently been
PLATINUM GROUP METALS LTD. …2
identified. Infill drilling is confirming and adding definition to these zones, which will
allow them to be prioritized in an updated mine plan for the DFS.
As a result of its shallow depth, good grade and a fully mechanized mining approach, the
Waterberg Project has the opportunity to be a safe mine within the lowest quartile of the
Southern Africa PGE industry cost curve. The project resources consist of 60% palladium
(refer to “Independent Technical Report on the Waterberg Project Including Mineral
Resource Update and Pre-Feasibility Study – Project Areas located on the Northern Limb
of the Bushveld I gneous Complex, South Africa” dated effective October 17, 2016 and
filed on October 19, 2016 at www.sedar.com).
A table of results for the 2016 boreholes recently assayed, including the highlight holes
referred to above, follows:
BHID DEFLEC
-TION
WGS 84 LO 29
FROM TO
ZONE
LENGTH
Est.
True
Width
2PGE
+Au
PT PD AU CU NI
X Y m m m g/t g/t g/t g/t % %
WB211
D0
2 587 819 11 767
233.00 239.00 TZ 6.00 5.10 1.41 0.38 0.82 0.21 0.05 0.05
D1 232.17 237.50 TZ 5.33 4.53 2.42 0.65 1.50 0.27 0.09 0.07
D2 233.45 240.00 TZ 6.55 5.57 5.81 1.69 3.47 0.65 0.15 0.12
D3 231.43 237.71 TZ 6.28 5.34 3.99 0.95 2.47 0.58 0.14 0.09
WB212
D0
2 587 692 11 643
208.50 211.90 TZ 3.40 2.89 2.74 0.88 0.91 0.96 0.17 0.08
D1 208.00 211.26 TZ 3.26 2.77 3.83 1.20 1.22 1.42 0.14 0.06
WB213
D0
2 587 691 11 765
284.00 288.57 TZ 4.57 3.88 4.34 1.65 0.94 1.75 0.29 0.16
D1 285.00 290.00 TZ 5.00 4.25 1.40 0.50 0.26 0.65 0.13 0.08
D2 282.50 287.86 TZ 5.36 4.56 4.32 1.64 0.90 1.78 0.32 0.15
WB214
D0
2 587 942 11 891
252.00 260.50 TZ 8.50 7.23 0.36 0.13 0.13 0.10 0.02 0.02
D1 253.00 261.50 TZ 8.50 7.23 2.47 0.68 1.14 0.65 0.10 0.05
D2 251.62 260.50 TZ 8.88 7.55 1.78 0.65 0.89 0.24 0.05 0.04
WB215
D0
2 587 565 11 641
239.00 245.00 TZ 6.00 5.10 2.44 0.73 1.06 0.65 0.08 0.03
D1 239.00 245.00 TZ 6.00 5.10 3.71 1.32 1.78 0.61 0.10 0.03
WB216
D0
2 588 192 12 015
231.00 235.50 TZ 4.50 3.83 2.08 0.53 0.50 1.06 0.25 0.11
D1 231.00 235.50 TZ 4.50 3.83 2.49 0.59 0.49 1.41 0.31 0.12
D2 231.00 235.50 TZ 4.50 3.83 2.51 0.59 0.46 1.45 0.30 0.12
WB217
D0
2 588 311 12 235
224.50 227.50 TZ 3.00 2.55 4.74 1.62 0.46 2.67 0.73 0.24
D1 223.50 226.50 TZ 3.00 2.55 3.05 1.01 0.31 1.73 0.41 0.17
D2 223.00 225.97 TZ 2.97 2.52 2.42 0.82 0.24 1.36 0.36 0.14
WB218 D0 2 588 318 12 154 Replaced by dyke
WB219
D0
2 588 182 12 128
267.97 270.94 TZ 2.97 2.52 3.36 0.86 0.47 2.04 0.43 0.17
D1 267.95 271.00 TZ 3.05 2.59 2.84 0.73 0.57 1.53 0.32 0.13
D2 268.00 271.15 TZ 3.15 2.68 3.69 0.89 0.99 1.80 0.46 0.20
WB221 D0 2 587 755 11 830 297.00 298.50 TZ 1.50 1.28 2.24 0.67 1.15 0.42 0.08 0.06
WB222
D0
2 587 817 11 892
295.33 305.50 TZ 10.17 8.64 4.27 1.08 2.42 0.76 0.24 0.13
D1 295.00 303.50 TZ 8.50 7.23 4.42 1.14 2.66 0.61 o/s o/s
D2 298.38 308.00 TZ 9.62 8.18 4.70 1.15 2.82 0.72 o/s o/s
WB224 D0 2 587 832 12 019 370.50 385.50 TZ 15.00 12.75 3.48 1.07 1.69 0.72
PLATINUM GROUP METALS LTD. …3
WB225
D0
2 588 248 12 243
284.11 285.50 TZ 1.39 1.18 0.54 0.14 0.27 0.12 o/s o/s
D1 284.00 285.50 TZ 1.50 1.28 2.75 0.88 1.51 0.36 o/s o/s
D2 284.00 285.50 TZ 1.50 1.28 0.41 0.12 0.25 0.04 o/s o/s
WB226 D0 2 587 564 11 769 322.50 329.76 TZ 7.26 6.17 3.15 0.82 2.07 0.26
WE096
D0
2 582 883 7 705
245.15 270.96 NSF 25.81 21.94 3.62 0.78 2.67 0.17 0.12 0.21
D1 245 270.96 NSF 25.96 22.07 2.59 0.72 1.74 0.14 0.11 0.18
D2 245 269 NSF 24.00 20.40 2.60 0.71 1.76 0.14 0.11 0.20
WE097
D0
2 582 945 7 699
208 253.9 NSF 45.90 39.02 4.48 1.08 3.16 0.23 0.14 0.29
D1 207.5 253.4 NSF 45.90 39.02 4.32 1.15 2.94 0.22 0.14 0.28
D2 208 253.5 NSF 45.50 38.68 4.20 1.06 2.93 0.21 o/s o/s
D3 208 253.1 NSF 45.10 38.34 4.64 1.21 3.20 0.23 0.15 0.29
WE098 D0 2 583 066 7 755 183 205.5 NSF 22.50 19.13 0.51 0.18 0.32 0.02 0.03 0.09
WE096
D0
2 582 883 7 705
245.15 251.3 NSF_IN 6.15 5.23 4.89 1.29 3.32 0.28 0.17 0.30
D1 245 250.48 NSF_IN 5.48 4.66 3.65 1.00 2.46 0.19 0.13 0.24
D2 246.14 252 NSF_IN 5.86 4.98 1.55 0.41 1.04 0.09 0.08 0.19
WE097
D0
2 582 945 7 699
208 224.2 NSF_IN 16.20 13.77 7.30 1.88 5.01 0.41 0.23 0.41
D1 207.5 223.6 NSF_IN 16.10 13.69 6.31 1.67 4.30 0.34 0.20 0.38
D2 208 223.7 NSF_IN 15.70 13.35 6.31 1.56 4.43 0.32 o/s o/s
D3 208 224.6 NSF_IN 16.60 14.11 7.28 1.87 5.07 0.35 0.21 0.40
In the table above “NSF” refers to North Super F Zone, “NSF_IN” refers to a higher-grade
North Super Zone intercept within a borehole reported above and “TZ” refers to T Zone.
All of the above holes were drilled vertical or near vertical.
Base metals and other major elements were determined by multi acid digestion with
Inductively Coupled Plasma ("ICP") finish and PGEs were determined by conventional fire
assay and ICP finish. Setpoint Laboratories is an experienced ISO 17025 SANAS
accredited laboratory in assaying and have utilized a standard quality control system
including the use of standards. Platinum Group utilized a well -documented system of
inserting blanks and s tandards into the assay stream and has a strict chain of custody
and independent lab re-check system for quality control.
Important detailed infrastructure planning has commenced for the Waterberg Project,
including power line environmental and servitude w ork by Eskom and detailed
hydrogeological work to source ground water. Eskom has progressed electrical power
connection planning for a 65 km, 140MW line to the project.
Hydrological work so far has also identified several large-scale water basins that are likely
able to provide potable and mine process water for the Waterberg Project and local
communities. The Waterberg Project team is examining the possibility of assisting with
regional infrastructure to source potable water for municipal use while also sourcing and
providing mine process water. Meetings with local municipalities have been positive and
co-operative in tone and are encouraging for future development.
PLATINUM GROUP METALS LTD. …4
Outlook
Waterberg continues to advance with infill drilling and engineering work. Further results
are expected in the weeks ahead. Preparations are in progress for the filing of a mining
right. JOGMEC continues to fund 100% of the current costs at Waterberg.
General Corporate Update
As reported in a news release dated June 9, 2017, the technical team at the Company’s
Maseve Mine is focussed on improving performance during production ramp up, which
is behind schedule.
To accommodate the Company for delayed production ramp -up at the Maseve Mine, a
syndicate of lenders led by Sprott Resource Lending Partnership (collectively, “Sprott”)
and Liberty Metals & Mining Holdings, LLC (“LMM”) have agreed to amend their existing
loan facilities to the Company and provide waivers, in each case, until October 31, 2017,
with regard to minimum cash and working capital requirements, achievement of
production targets, certain events of default and the requirement to pay the lenders 50%
of the proceeds of equity and debt financings. Sprott and LMM are each to be paid a fee
of US $200,000 and US $400,00 0 respectively in consideration of the above
amendments, both at the same time upon the maturity or repayment of the Sprott
facility. The Liberty facility is in second secured position and is scheduled for repayment
subsequent to the Sprott facility. The Company highlights that additional working capital
will be required to continue its operations. Financing methods in consideration by the
Company include but are not limited to sale of assets, debt or equity. While the Company
believes that further fundi ng will be achieved, there is no assurance that such will be
concluded on terms acceptable to the Company, or at all.
The Company continues to work with BMO Capital Markets and Macquarie Capital to
review and assess corporate and asset level strategic alternatives as well as potential
further financing opportunities.
About Platinum Group Metals Ltd.
Platinum Group, base d in Johannesburg, South Africa and Vancouver, Canada, has a
successful track record with more than 20 years of experience in exploration, mine
discovery, mine construction and mine operations.
Formed in 2002, Platinum Group holds significant mineral rights and large-scale reserves
of platinum and palladium in the Bushveld Igneous Complex of South Africa, which is
host to over 70% of the world's primary platinum production. The Company is currently
focused on ramping up the Maseve Mine, its first near -surface platinum mine, to
commercial production.
Platinum Group has delineated new low cost, near surface reserves on the North Limb of
the Bushveld Complex on the Waterberg Project. Waterberg represents a new bulk type
of large scale, shallow low-cost platinum, palladium and gold deposit. Waterberg is one
of the only large scale dominantly palladium deposits in the world.
Qualified Person
R. Michael Jones, P.Eng., the Company’s President, Chief Executive Officer and a
significant shareholder of the Company, is a non-independent qualified person as defined
in National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”)
PLATINUM GROUP METALS LTD. …5
and is responsible for preparing the technical information contained in this news release.
He has verified the data by reviewing the detailed information of the ge ological and
engineering staff and the Independent Qualified Person reports as well as visiting the site
regularly.
On behalf of the Board of
Platinum Group Metals Ltd.
“Frank R. Hallam”
CFO and Director
For further information contact:
R. Michael Jones, President
or Kris Begic, VP, Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450
www.platinumgroupmetals.net
Disclosure
The Toronto Stock Exchange and the NYSE MKT LLC have not reviewed and do not accept
responsibility for the accuracy or adequacy of this news release, which has been prepared
by management.
This press release contains forward-looking information within the meaning of Canadian
securities laws and forward-looking statements within the meaning of U.S. securities laws
(collectively “forward -looking statements”). Forward -looking statements are typically
identified by words such as: believe, expect, anticipate, intend, estimate, plans, postulate
and similar expressions, or are those, which, by their nature, refer to future events. All
statements that are not statements of historical fact are forward -looking statements.
Forward-looking statements in this press release include, without limitation, statements
regarding anticipated or potential developments at the Waterberg Project including
drilling and the potential results thereof, the potential for increasing confidence in mineral
resources and upgrading categories of mineral resources, mine planning, potential water
sources, work on the DFS including engineering and design work to reduce and improve
underground development at Waterberg and to optimize the project scale and return,
and the filing of a mining right; working capital requirements; potential sales of assets,
debt or equity; the Company’s ability to obtain further funding; corporate and asset level
strategic alternatives; the potential economics of the Waterberg Project, if developed;
ramp-up and potential achievement of commercial production at the Maseve Mine; the
Company’s key objectives; and the Company’s plans and estimates regarding
exploration, studies, development, construction, production, cash flows and other
activities and developments. Statements of mineral resources and mineral reserves also
constitute forward -looking statements to the extent they represent estimates of
mineralization that will be encountered on a property and/or estimates regarding future
costs, revenues and other matters. Although the Company believes the forward-looking
statements in this press release are reasonable, it can give no assurance that the
expectations and assumptions in such statements will prove to be correct. The Company
cautions investors that any forward -looking statements by the Company are not
guarantees of future results or performance, and that actual results may differ materially
from those in forward -looking statements as a result of various factors, including risks
related to indebtedness; the Company’ s capital requirements may exceed its current
expectations; the uncertainty of cost, operational and economic projections; the ability
of the Company to negotiate and complete future funding transactions; variations in
PLATINUM GROUP METALS LTD. …6
market conditions; the nature, quality and quantity of any mineral deposits that may be
located; metal prices; other prices and costs; currency exchange rates; the Company’s
ability to obtain any necessary permits, consents or authorizations required for its
activities; the Company’s ability to produce minerals from its properties successfully or
profitably, to continue its projected growth, or to be fully able to implement its business
strategies; risks related to contractor performance and labour disruptions; and other risk
factors described in the Company’s Form 40 -F annual report, annual information form
and other filings with the Securities and Exchange Commission and Canadian securities
regulators, which may be viewed at www.sec.gov and www.sedar.com, respectively.
Cautionary Note to U.S. and other Investors
Estimates of mineralization and other technical information included or referenced in this
press release have been prepared in accordance with NI 43-101. The definitions of proven
and probable reserves used in NI 43-101 differ from the definitions in SEC Industry Guide
7. Under SEC Industry Guide 7 standards, a "final" or "bankable" feasibility study is
required to report reserves, the three-year historical average price is used in any reserve
or cash flow analysis to designate reserves and the primary environmental analysis or
report must be filed with the appropriate governmental authority. As a result, the
reserves reported by the Company in accordance with NI 43 -101 may not qualify as
"reserves" under SEC standards. In addition, the terms "mineral resource", "measured
mineral resource", "indicated mineral resource" and "inferred mineral resource" are
defined in and required to be disclosed by NI 43 -101; however, these terms are not
defined terms under SEC Industry Guide 7 and normally are not permitted to be used in
reports and registration statements filed with the SEC. Mineral resources that are not
mineral reserves do not have demonstrated economic viability. Investors are cautioned
not to assume that any part or all of the mineral deposits in these categories will ever be
converted into reserves. "inferred mineral resources" have a great amount of uncertainty
as to their existence, and great uncertainty as to their economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral resource will ever be
upgraded to a higher category. Under Canadian securities laws, estimates of inferred
mineral resources may not form the basis of feasibility or pre -feasibility studies, except
in rare cases. Additionally, disclosure of "contained ounces" in a resource is permitted
disclosure under Canadian securities laws; however, the SEC normally only permits
issuers to report mineralization that does not constitute "reserves" by SEC standards as
in place tonnage and grad e without reference to unit measurements. Accordingly,
information contained or referenced in this press release containing descriptions of the
Company's mineral deposits may not be comparable to similar information made public
by U.S. companies subject to the reporting and disclosure requirements of United States
federal securities laws and the rules and regulations thereunder.