VANCOUVER, B.C., Dec. 16, 2002 (PRIMEZONE) -- Platinum Group Metals Ltd. (TSX Venture Exchange:PTM) is pleased to announce that it has entered into an option agreement to purchase 100% of the mineral rights of portions of the farm Elandsfontein 102 JQ, (the "Property") that adjoins the Anglo American Platinum Corporation Limited Bafokeng Rasimone Platinum Mine, ("BRPM") in the Western Bushveld Complex near Rustenberg, South Africa (the "Agreement").
The Property covers 296 hectares adjacent to an area at BRPM where the UG2 platinum-bearing reef has been traced and mined by open pit methods to the Property boundary. The Merensky Reef has also been traced to the property boundary (Source: Anglo Platinum Annual Report 2001). BRPM has published proven reserves of 14.75M tonnes at 4.80g/t PGM grade. (Source: Anglo Platinum Annual Report Dec. 31, 2001)
The Property has immediate potential for open pit near surface and underground UG2 material and Merensky Reef material near surface and at depth. A drill hole recently completed on the Property has been interpreted to intersect the UG2 reef. Assays to Canadian standards of National Policy 43-101 are pending. A prospecting permit for the Property is in place and drilling of a minimum 2,000 meter program is planned to be carried out in early January 2003.
Under the option agreement PTM can acquire 100% of the mineral rights by first paying ZAR150,000 (South African Rand or C$ 27,000 at current exchange rates) to the mineral rights holders in prospecting fees. PTM must also pay a base price of ZAR 43 (C$ 7.70) per tonne of open castable economic resource on the property, to a minimum of ZAR 4,000,000 (C $715,000). A further payment of ZAR 4.30 (C$ 0.77) per tonne is due on any economic underground resource at the time of a mining authorization. The purchase price is payable 90 days after the grant of a mining authorization. PTM is also obligated to a ZAR 400,000 (C$ 71,500) exploration program and such a program is anticipated to commence immediately along with preparations for a mining authorization application.
PTM also holds an option interest in the Ledig Farm as press released on October 28, 2002. Ledig adjoins the Styldrift Joint Venture, an expansion project of the Bafokeng Rasimone Platinum Mine. Estimated capital costs of Styldrift are $U.S. 250M and projected production of 250,000 ounces per year. (Source: www.angloplatinum.com). R. Michael Jones, P.Eng is the qualified person under Canadian Policy for this release. Carel Van Heerden, a member of the PTM advisory Board, will be paid a 5% finder's fee on payments made to the vendors for the Elandsfontein acquisition.
PTM is based in Vancouver B.C., Canada and has active exploration programs in Canada and South Africa. PTM is a significant mineral rights holder in the northern Bushveld and is planning to continue its acquisition of mineral rights in South Africa and the Bushveld Complex. The Company is the largest mineral rights holders in the area surrounding Canada's only PGE mine and has an active drilling joint venture with Anglo Platinum in Sudbury.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Note to U.S. Investors: Investors are urged to consider closely the disclosure in our Form 20F, File No. 0-30306, available at our office: Suite 800 -- 409 Granville Street, Vancouver B.C., Canada, V6C 1T2 or from the SEC: 1(800) SEC-0330.