"During the quarter the drilling focus continued on the Garatau Project, with a total of 74 diamond drill holes totalling 85,000m of core being completed to date. The current Mineral Resource (23.6 Moz at 5.1g/t 3PGE+Au from 143 million tonnes) is based on assays from 24 boreholes on the Merensky Reef and 22 boreholes for the UG2 Reef.
[my comment - 74 holes vs a previously drilled 22 holes - and then what of the past 3 months? more again?]
The resource estimate is being updated as part of the feasibility process and is expected to significantly increase the amount of Measured and Indicated Resources.
The drilling on the project area confirms the positive geophysical assessment completed to date:
Modest degree of dyke intrusions by Eastern Bushveld standards;
Potential Iron Rich Ultramafic Pegmatite (IRUP) activity modest; and
Geophysically mapped loss-of-ground features are limited in areal extent.
The UG2 and Merensky Reefs dip consistently at shallow angles of between 6 and 8 degrees, which is amenable to mechanised mining methods. The Merensky resource commences from a depth of 350m below surface, with the UG2 horizon located a further 330m below the Merensky horizon.
Re Xstrata:
"Progress of the Bankable Feasibility Study with Xstrata A Joint Operating Committee comprising representatives from both Nkwe and Xstrata continue to meet on a regular basis, discussing and actioning all aspects of the proposed mining and development activities and arrangements for the Bankable Feasibility Study.
Nkwe is drawing on Xstratas expertise to provide input into all areas including resource and reserve definition through geology, mining and ore body access, metallurgical testing and mineral processing, plant design, tailings and waste disposal, geotechnical work, civil, infrastructure and general engineering, operating and capital costing and environmental and social aspects.
TWP Projects, a listed project engineering and design company based in Johannesburg has been selected to complete the bankable feasibility. TWP Projects has an extensive track record in designing and building large mines and metallurgical plants, with particular experience of platinum mining and processing in South Africa. The environmental study, social and labour plan as well as metallurgical test work are already well under way.
Also from the report:
"About Nkwe
Nkwe Platinums main Garatau /Tubatse Project consists of five contiguous farms with a strike length of more than 30km, stretching all the way in proximity from Implats Marula mine in the north, past Anglo Platinums Modikwa Joint Venture to the border of Eastplats Spitzkop Kennedys Vale project in the south. In ongoing exploration, Nkwe has delineated a JORC Mineral Resource of 68.9 million ounces 3PGM+Au across the Tubatse / Garatau Project areas.
Nkwe Platinums Tubatse and Garatau Projects are located in an established mining district with well developed infrastructure and a surface footprint of more than 10,500 hectares, underlain by both the Merensky Reef and UG2 chromite seam from surface to a depth of 1,500m. Nkwe is currently jointly conducting a Feasibility Study with its joint venture partner Xstrata on the Garatau Project Area in the north and Tubatse Project Area in the south with a view to develop two mines with a combined annual production of more than 1 million ounces of platinum group metals from a targeted mineralisation base in excess of 100 million ounces PGM+Au.
The potential size and quality of Nkwes PGM assets and its joint venture with Xstrata make it possible for Nkwe to become an independent PGM producer and strategically utilize independent or joint ventured smelting and refining capabilities."
might be old news to many but some pretty solid (and positive) statements therein!
NKP Price at posting:
55.5¢ Sentiment: None Disclosure: Held
