Waterberg Joint Venture Establishes A Pre-Construction Readiness Program for Waterberg PGM Project Infill Drilling Program and Definitive Feasibility Study Update Planned
838 – 1100 Melville Street
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News Release No. 22-458
October 20, 2022
Waterberg Joint Venture Establishes A Pre-Construction
Readiness Program for Waterberg PGM Project
Infill Drilling Program and Definitive Feasibility Study Update Planned
(Vancouver/Johannesburg) Platinum Group Metals Ltd. (PTM:TSX; PLG:NYSE American)
(“Platinum Group”, “PTM” or the “Company”) reports that Waterberg JV Resources (Pty)
Ltd. (“Waterberg JV Co.”) has approved in principle a Rand 380 million (approx. US $21.0
million) pre-construction work program (the “Work Program”) for the Waterberg Project,
focused on early infrastructure, de-risking and project optimization.
An initial budget for the first R 45 million (approx. US $2.5 million) of the Work Program (the
“Initial Budget”), to be spent by March 31, 2023, has been unanimously approved by the
board of directors of Waterberg JV Co., which is owned by the Company, Japan Oil, Gas and
Metals National Corporation (“ JOGMEC”), Hanwa Co. Ltd. (“ Hanwa”), Impala Platinum
Holdings Ltd. (“Implats”), and Mnombo Wethu Consultants (Pty) Ltd. (“Mnombo”).
“The Waterberg JV co-owners are pleased to collaborate on and fund this important and
substantial Work Program, which will advance the Waterberg Project,” said Platinum Group
President and CEO Frank Hallam. “Waterberg JV Co. has laid out an early infrastructure plan
intended to significantly de -risk the future construction of the project. While the Work
Program is being executed, we plan to continue seeking a third -party concentrate offtake
agreement for Waterberg JV Co. and, as a possible alternative, PTM plans to assess the
potential establishment of a new smelter and base metal refinery business, jointly with third
party investors, capable of processing Waterberg concentrate.”
The Work Program will focus on project infrastructure inclu ding initial road access, water
supply, essential site facilities, a first phase accommodation lodge, a site construction power
supply from state utility Eskom and advancement of the Waterberg Social & Labour Plan. An
update to the 2019 Waterberg Definitive Feasibility Study (“DFS Update”) is also planned,
including a review of cut-off grades, mining methods, infrastructure plans, scheduling,
concentrate offtake, dry stack tailings, costing and other potential revisions to the project’s
financial model.
As a precursor to the DFS Update, an infill drilling program has been approved targeting near
surface, modelled Inferred Mineral Resource blocks that have good potential for conversion
to higher confidence levels, thereby allowing them to be added to early mine plans, potentially
reducing early capital expenditure and the period to first mining . The infill drill program,
budgeted at R 23.0 million (approx. US $1.25 million), is scheduled to commence shortly and
is planned to consist of 16 T Zone NQ boreholes and 1 6 F Zone NQ boreholes. Mineralized
PLATINUM GROUP METALS LTD. …2
material recovered from the drill program will be assayed and the remaining material will be
processed to determine dry-stack tailings characteristics and provide additional concentrate
metallurgical data. If dry stack tailings methods are implemented in the DFS Update, it is
expected that mine water consumption will be reduced by 40% to 50%.
The Initial Budget for the Work Program will be funded pro rata by the joint venture partners
and was coordinated to match fiscal year and budgetary periods for JOGMEC and Hanwa.
Subsequent expenditures in accordance with the Work Program are subject to expected
approvals for sequential time periods ending on August 31, 2024.
Today's announcement is another key step on the journey to leveraging the potential of the
Waterberg deposit and its prospective positive economic, social, and community impacts. A
future construction decision for the Waterberg Project would benefit local stakeholders by
offering skilled job opportunities, improved roads, better access to water services, as well as
training and education opportunities.
Qualified Person
Qualified Person Rob van Egmond, P.Geo., a consultant geologist to the Company and a
former employee, is an independent qualified person as defined in National Instrument 43 -
101 Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. van Egmond has
reviewed, validated and approved the scientific and technical information contained in this
news release and has previously visited the Waterberg Project site.
About Platinum Group Metals Ltd. and the Waterberg Project
The Waterberg Project, discovered in 2011, is a bulk underground platinum and palladium
deposit located in South Africa. Platinum Group Metals Ltd. is the operator of the Waterberg
Project, which is owned indirectly by Platinum Group (37.05%), Mnombo Wethu Consultants
(Pty) Ltd. (“Mnombo”) (26.0%), Impala Platinum Holdings Ltd. (15%), JOGMEC (12.195%),
and Hanwa (9.755%) through Waterberg JV Co. As a result of its equity interest in Mnombo,
the Company has an aggregate 50.02% indirect interest in the Waterberg Project.
On behalf of the Board of
Platinum Group Metals Ltd.
Frank R. Hallam
President, CEO and Director
For further information contact:
Kris Begic, VP, Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450
www.platinumgroupmetals.net
Disclosure
The TSX and the NYSE American have not reviewed and do not accept responsibility for the accuracy
or adequacy of this news release, which has been prepared by management.
PLATINUM GROUP METALS LTD. …3
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 typ ically 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 but are not limited to
statements regarding further approvals, completion and potential results of the Work Program and DFS
Update, a potential construction decision for the Wate rberg Project, a potential offtake agreement or
new smelter and base metal refinery, and the potential economic, social and community impacts of the
Waterberg Project . Although the Company believes any forward -looking statements in this press
release are r easonable, 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 that the portions of the Work
Program subject to the Initial Budget are subject to further approval by the Waterberg JV Co. owners;
the timely completion of additional required financings and potential terms thereof; possible adverse
impacts due the global outbreak of COVID -19; rising global inflation and increased potential supply
chain disruptions, international conflict and othe r geopolitical tensions and events; the Company's
history of losses and negative cash flow; the Company's properties may not be brought into a state of
commercial production; uncertainty of estimated production, development plans and cost estimates for
the Waterberg Project; discrepancies between actual and estimated mineral reserves and mineral
resources, between actual and estimated development and operating costs, between actual and
estimated metallurgical recoveries and between estimated and actual prod uction; fluctuations in the
relative values of the U.S. Dollar, the Rand and the Canadian Dollar; volatility in metals prices; the
uncertainty of alternative funding sources for Waterberg JV Co.; the Company may become subject to
the U.S. Investment Company Act; the failure of the Company or the other shareholders to fund their
pro rata share of funding obligations for the Waterberg Project; any disputes or disagreements with
the other shareholders of Waterberg JV Co. or Mnombo; the ability of the Company t o retain its key
management employees and skilled and experienced personnel; conflicts of interest; litigation or other
administrative proceedings brought against the Company; actual or alleged breaches of governance
processes or instances of fraud, bribery or corruption; exploration, development and mining risks and
the inherently dangerous nature of the mining industry, and the risk of inadequate insurance or inability
to obtain insurance to cover these risks and other risks and uncertainties; property an d mineral title
risks including defective title to mineral claims or property; changes in national and local government
legislation, taxation, controls, regulations and political or economic developments in Canada and South
Africa; equipment shortages and the ability of the Company to acquire necessary access rights and
infrastructure for its mineral properties; environmental regulations and the ability to obtain and
maintain necessary permits, including environmental authorizations and water use licences; extreme
competition in the mineral exploration industry; delays in obtaining, or a failure to obtain, permits
necessary for current or future operations or failures to comply with the terms of such permits; risks
of doing business in South Africa, including but not limited to, labour, economic and political instability
and potential changes to and failures to comply with legislation; the Company's common shares may
be delisted from the NYSE American or the TSX if it cannot maintain compliance with the appli cable
listing requirements; and other risk factors described in the Company's most recent Form 20-F annual
report, annual information form and other filings with the U.S Securities and Exchange Commission
(the “SEC”) and Canadian securities regulators, whi ch may be viewed at www.sec.gov and
www.sedar.com, respectively. Proposed changes in the mineral law in South Africa if implemented as
proposed would have a material adverse effect on the Company's business and potential interest in
projects. Any forward-looking statement speaks only as of the date on which it is made and, except as
may be required by applicable securities laws, the Company disclaims any intent or obligation to update
any forward -looking statement, whether because of new information, future events or results or
otherwise.
PLATINUM GROUP METALS LTD. …4
The technical and scientific information included herein has been prepared in accordance withNI 43 -
101 which is a rule developed by the Canadian Securities Administrators that establishes standards for
all public disclosure an issuer makes of scientific and technical information concerning mineral projects.
These standards differ significantly from the technical and scientific disclosure requirements of the SEC.
Consequently, the technical and scientific information include d herein, including any reference to
mineral reserves or mineral resources, may not be comparable to the information that would generally
be disclosed by U.S. companies in accordance with the rules of the SEC.