London -- (MARKET WIRE) -- November 15, 2006 --African Platinum plc
Ticker: APP
Index: AIM
Sector: Platinum and precious metals
SCOPING STUDY SEES POTENTIAL FOR 1 MILLION OUNCE
PER YEAR PRODUCTION AT LEEUWKOP BY AFPLATS
Johannesburg, 15 November 2006 - An independent scoping study on the expansion
potential of African Platinum's Leeuwkop project, announced today, concludes
that the construction of two further mines in the lease area and a total
production peaking at approximately 1 million 4E (three platinum group metals
plus gold) ounces per year may be achievable.
Development of the first phase of the project - a forecast 300 000 ounce per
year mining and concentrating operation with an estimated life of 20 years -
is due to start in the first quarter of 2007 and preparatory work at the site on
the Western Limb of the Bushveld Complex is already underway. However, Afplats
and its black economic empowerment partners have a resource base of 92 million
ounces in the Greater Leeuwkop project area and the company's eventual aim is to
treble the size of the Phase 1 operation.
The scoping study, undertaken by Turgis Consulting, anticipates two more mines,
operating at similar depths to the proposed Phase 1 mine, each with its own
concentrator, with similar production rates and similar returns. Low-cost
mechanised mining methods, similar to those intended for Phase 1, would also be
used. This is expected to be made possible due to the width and shallow dip of
the orebody.
If realised, the estimated production would result in Afplats becoming the
fourth largest producer of platinum in the world. In addition, it is envisaged
that the synergies offered by shared infrastructure associated with developing
the contiguous resources would result in both capital and operating savings at
the company level, potentially enabling Afplats to further consolidate its
anticipated position in the lowest quartile of production cash costs for the
industry.
Afplats CEO Roy Pitchford said the findings of the review would now be tested
and upgraded to feasibility study level through further drilling, a 3D seismic
survey and detailed mining and beneficiation design. It is anticipated that it
will take two to three years to complete this work, which will also cover the
possibility of Afplats developing its own smelting facilities at Leeuwkop.
The company recently concluded an agreement with Impala Refining Services (IRS)
in terms of which IRS will purchase all the concentrate produced by Leeuwkop
Phase 1 for a 10-year period. The agreement allows Afplats to undertake its own
smelter testwork on a portion of the concentrate for three years as part of the
follow-up expansion studies.
AFRICAN PLATINUM PLC ENQUIRIES:
Chief Executive Investor & Media Relations
Roy Pitchford Kathy du Plessis
+27 (0)82 419 2581 +27 (0)11 728 4701
+44 (0)77 9390 9985 +27 (0)83 266 5847 (Mobile)
info@afplats.com
Website:
www.afplats.com
DISCLAIMER: Investing in all equities, including natural resources-related
equities, carries risks which should be taken into consideration when making an
investment. This announcement contains forward-looking statements regarding
African Platinum plc, including the development of its mining development
projects. Actual results relating to any and all of these subjects may differ
materially from those presented.
This information is provided by RNS
The company news service from the London Stock Exchange