VANCOUVER BC, Colombia, May 13, 2003 (PRIMEZONE) -- Shallow drilling by Platinum Group Metals Ltd, (TSX Venture Exchange:PTM) on the Elandsfontein property, South Africa, immediately adjoining Anglo Platinum's producing Bafokeng-Rasimone Platinum Mine ('BRPM'), has intersected and returned grades from the Merensky Reef horizon of 6.50 g/t, 6.48 g/t, and 3.15 g/t for 3 platinum group elements plus gold, in intercepts of 0.70, 0.84, and 0.84 meters respectively. These are the first three assay intervals returned from drilling by the company on the Merensky Reef Target, and are typical of the grade and width at mines in the Western Bushveld Complex. Drilling is continuing with two drills now focused on further defining the extent of the Merensky Reef horizon on the Elandsfontein property -- details are outlined below.
The Company has now completed 24 of 40 holes in the current UG2 and Merensky Reef Target programs, with assays now reported on 16 holes. Holes ELF 17, 22, 23, and 24 have all been completed on the Merensky Reef for a total, with deflection drilling, of eight additional Merensky Reef intersections recovered -- assays are pending on these intercepts, and are expected shortly.
From the current drill program and known continuity in the area, the Merensky Reef has been projected to strike northwest across the Elandsfontein property for a total of approximately 1100 meters, and has a dip of 22 degrees to the northeast. This is consistent with the projection in the company's initial drill planning.
The Merensky and UG2 reefs are the two horizons in the Bushveld Complex that are mined for platinum, palladium, and associated platinum group metals for more than 200 kilometers of strike-length on other properties throughout the complex, and account for 90% of the world's primary platinum production. The majority of the production reported for 2002 at the adjoining BRPM mine was from the Merensky Reef as only 13% of the 2002 reported production was from the UG2 horizon.
Drilling Results Details -- Merensky Reef Target Drilling
Hole No Grid Grid From To Thickness Pt Pd Rh Au PtPd
West South RhAu
(m) (m) (m) (m) (m) (ppb)(ppb)(ppb)(ppb)(g/t)
ELF-18W2 748 -413 133.32 135.09 1.64 1560 1110 90 19 2.94
Including 134.34 135.09 0.70 3440 2460 180 420 6.50
ELF-18W3 748 -413 132.67 134.55 1.74 1890 1160 190 230 3.48
Including 133.65 134.55 0.84 3540 2180 330 440 6.48
ELF-18W4 748 -413 133.35 134.73 1.28 1560 840 90 130 2.62
Including 133.83 134.73 0.84 1920 990 110 150 3.15
The Merensky Reef intercepts reported above are from three holes wedged off of the same collar setup (ELF-18) located near the northeast corner of the property. The initial ELF-18 Wedge 1 ('ELF-18 W1') hole was wedged off the hole at the UG2 depth below the Merensky and confirms disrupted low-grade UG2 at this location. As part of standard procedures on deeper reef intercepts, the original drill hole is not assayed, but stored for reference. Results for ELF-17 deflections that also intercepted the Merensky Reef, drilled 120 m to the northwest of ELF-18, in the NE corner of the property are also pending. Further drilling is focused on outlining the Merensky reef along strike and up dip for both underground and open cast material.
UG2 Targeted Drilling
The UG2 reef was the initial target of the first 16 holes of the current drill program. The UG2 was drilled first as it was open cast mined at BRPM to near the property boundary. Two holes, ELF-4 reported earlier and ELF-10 reported below, have grades typical of the UG2 reef. Hole ELF 10, 0.32 meters grading 6.45 g/t 3 PGEs plus gold, is located near and up dip of Hole ELF 4 that intercepted 1.29 meters grading 3.45 g/t 3 PGEs plus gold (PTM News Release March 27th, 2003). The ELF 4 and ELF 10 area will be trenched for further information on the extent of this area with more normal UG2 grades.
The current results indicate that the UG2 horizon is affected by a large pothole or disruptive feature in the southeast portion of the Elandsfontein property, and thus exhibits lower than typical grade. Local variations in the UG2 and Merensky reef horizons are common throughout the Bushveld Complex, including "potholes" where the reefs occur, but are not as well layered. The UG2 reef in the area of ELF-4 and ELF-10 is believed to have potential for limited open cast material, and a trenching program will attempt to delineate this. The focus of continued drilling is now on both open cast and underground potential on the Merensky Reef, as outlined above.
Drilling Results Details -- UG2 Reef Drilling
Hole No Grid Grid From To Thickness Pt Pd Rh Au PtPd
West South RhAu
(m) (m) (m) (m) (m) (ppb)(ppb)(ppb)(ppb)(g/t
ELF-05 251 0 no recovery
ELF-06 -55 29 44.11 44.83 0.65 372 277 58 10 0.717
ELF- 07 3 37 35.91 36.18 0.24 433 223 67 10 0.733
ELF- 08 64 35 36.52 36.85 0.30 304 32 33 1 0.371
ELF-09 118 31 no recovery
ELF- 10 186 35 45.88 46.23 0.32 2896 2968 491 94 6.450
ELF-11 -108 63 23.82 24.41 0.53 482 298 108 10 0.898
ELF-12 -48 64 no recovery
ELF-13 10 66 no recovery
ELF-14 58 64 28.52 229.5 0.98 483 225 109 7 0.825
ELF-15 104 62 no recovery
Holes ELF-5 through ELF-10 were drilled prior to the full recognition of the pothole feature and its influence on grade in the area of holes ELF 1 through 4 and these holes where targeted in the same area and up dip of these holes. Holes ELF 5, 12,13, 15 all failed to reach or to provide recovered core at the target depth and therefore no results are expected from these holes.
The company has an option agreement to purchase 100% of the mineral rights of portions of Elandsfontein under terms announced December 16, 2002. PTM also holds options to purchase mineral rights approximately 4 kilometers to the northwest at Onderstepoort as announced January 24, 2003. The position and attitude of the Merensky Reef at Elandsfontein is an important confirmation of the potential to the northwest on PTM's large mineral rights option at Onderstepoort.
Qualified Person and Quality Assurance and Control
Dr. Gerhard Meintjes of GeoActiv Dynamic Geological Services has acted as the Qualified Person for Platinum Group Metals RSA Pty Ltd., a wholly owned subsidiary of PTM, on the Elandsfontein Project. He is registered with the South African Council for Natural Scientific Professionals ("SACNASP"). GeoActiv has extensive relevant experience in the Bushveld Complex including large scale drilling programs and resource assessments. For PTM, drill core is split or sawn with half being retained for future study. The samples collected from the second half of the drill core are sealed on site and transported directly to the analytical lab. PTM has inserted blind duplicates and standards in the assay sample stream as a part of its internal Quality Assurance and Quality Control program ("QAQC").
Lakefield Research Africa (Pty) Limited in Johannesburg completed the above noted assays for platinum, palladium, rhodium and gold by standard fire assay methods that included their own internal quality control program of standards. This laboratory has experienced a delay in providing results as a result of a large volume of activity in the PGE exploration field. PTM has opted to have some material assayed in Canada to accelerate some of its results. About Platinum Group Metals
Platinum Group Metals Ltd. is based in Vancouver BC, Canada and has active exploration programs in the Lac Des Iles and Sudbury regions of Canada and the Western and Northern limbs of the Bushveld Complex, South Africa. The Company was founded in 2000 with the vision of tight physical markets for platinum group elements by 2005 and the Company continues to look towards expanding its portfolio of projects.
PTM is a significant mineral rights holder in the northern and western Bushveld and is planning to continue its acquisition of mineral rights in South Africa and the Bushveld Complex. The Company is supportive of the new initiatives of the government of South Africa in the Mineral Bill and Mining Charter.
For further information on behalf of Platinum Group Metals Ltd. contact: R. Michael Jones, President (604) 899-5450 Larry Roth (732) 792-2200 Platinum Group Metals Ltd. Roth Investor Relations
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 BC, Canada, V6C 1T2 or from the SEC: 1(800) SEC-0330.