BoostsPantonResourceby33%&UnveilsMajMetallurgicalBreakthroug
Document date:
Tue 30 Apr 2002
Published:
Tue 30 Apr 2002 00:00:00
Document No:
215321
Document part:
A
Market Flag:
Y
Classification:
PLATINUM AUSTRALIA LIMITED 2002-04-30 ASX-SIGNAL-G HOMEX - Perth +++++++++++++++++++++++++ Platinum Australia Limited (ASX:PLA) is pleased to announce the overall mineral Resource at its Panton Platinum Palladium Project has been upgraded to 4.5 million ounces of Platinum Group Metals (PGM*) and Gold, representing a 33% increase on the interim Resource announced in November 2001. The key high grade, Top Reef chromitite Resource, which will form the main part of the proposed combined underground and open pit mine, is now 2.0 million ounces PGM + Au (10.6 million tonnes at an average grade of 5.8 g/t PGM + Au), a 37% increase on the November 2001 resource. "This grade is significantly higher than any other significant known Australian PGM deposit and is comparable to grades of UG-2 chromitite ores currently being mined in South Africa," Platinum Australia Executive Director, Mr John Lewins, said. Mr Lewins said the new Resource estimate, completed by independent consultants, Snowden Mining Industry Consultants as part of the Panton Bankable Feasibility Study, was a major step forward for the project. Lonmin Plc, PLA's largest shareholder has checked and approved the new resource. "It is also important to note that the Panton Resource is still open at depth and along strike with a further eight kilometres of strike length to be tested," he said. The 100%-owned Panton Project is located in the Kimberley region of Western Australia. Full resource details are set out in the Resource Statement in Appendix 1. METALLURGICAL BREAKTHROUGH Platinum Australia Limited has developed a new, viable metallurgical recovery process for PGMs and gold that should dramatically improve the profitability of the Panton project. The company has applied for a Patent to cover the process. The new process was developed as a result of metallurgical test work undertaken as part of the Panton Bankable Feasibility Study, and should allow PLA to produce a final concentrate that can be sold direct to PGM refineries, bypassing the need for smelters. The process uses standard flotation to produce a high-recovery, low-grade concentrate, which is then subjected to low temperature calcination, followed by leaching to dissolve the PGM's, gold and base metals. A precipitation recovery route that can produce a high-grade PGM + Au concentrate and a base metal concentrate is the subject of current testwork. "This process will mean reduced costs and significantly increased revenue and profits for the company," said Mr Lewins. "Another major benefit is that the process uses unit processes currently in use in the Australian Gold industry and as such represents low technical risk." To date, results from testing have shown an overall recovery of over 80% can be achieved using the process, an improvement of up to 10% on that achieved in the Pre Feasibility Study. Mr Lewins said the high-grade concentrate could be delivered direct to a refinery while the bulk base metal concentrate containing nickel, copper and cobalt is sold to a smelter. "This reduces transport costs by several million dollars per year and significantly increases the prices received for our products." The new PLA process also has the potential to be used on other PGM ores, both in Australia and overseas, to reduce costs and increase revenue. It will also allow economical production of smelter concentrates from ores that have previously proved difficult to treat. "Although further testing will delay completion of the Bankable Feasibility Study until the third quarter of this year, the company believes this process is of major significance to the Panton Project and is very positive for the Study outcome," Mr Lewins said. FOR FURTHER INFORMATION: Mr John Lewins EXECUTIVE DIRECTOR Platinum Australia Office: (08) 9324 1491 Mobile: 0419 910 061 Sarah Allchurch INVESTOR RELATIONS Office: (08) 9381 6625 Mobile: 0412 346 412 MORE TO FOLLOW