The International Resource Journal: NKWE Platinum Limited
NKWE Platinum Limited ================================================================================ admin on 22 May, 2010 03:03:00
When IRJ spoke with Peter Landau, Executive Chairman at Continental Coal, last issue, he also spoke about another company, NKWE Platinum Limited; an ASX-listed major emerging PGM exploration and development company with a number of world class assets in the Bushveld Complex in South Africa. With our interest sparked, it was time to do some investigating and find out more about NKWE, of which Landau is Executive Director and Company Secretary, for a number of reasons. Firstly, the two-billion-year-old Bushveld Complex is responsible for 70 per cent of the world’s platinum produced. Secondly, recent news reports rumour that NKWE will bring its Garatau platinum group metals mine into production in 2012. And thirdly, it’s impossible to resist a story so good. Bushveld, NKWE and a background It is plain to see why the Bushveld Igneous Complex has attracted so much attention from miners. In addition to the PGM’s identified, the Complex plays host to iron, tin, chromium, titanium and vanadium reserves too amidst its 66,000 plus square-kilometre surface and up to three kilometre depth, making it one of the largest pyroclastic provinces in the entire world. Discovered in 1897 by Gustaaf Adolf Frederik Molengraaff, a Dutch geologist, we have gained a rather rapid understanding of the complex as a direct result of the lucrative reserves within it. NKWE Platinum’s flagship Garatau and Tubatse Projects, which are often referred to as one single project, are located in the Eastern Limb of the Bushveld Complex. The projects enjoy many benefits, not least of all existing infrastructure including power and water owing to the sustained mining presence in the complex. NKWE has enjoyed a promising third and fourth quarter for 2009, completing two capital raisings totalling circa $24.5 million after capital raising expenses. NKWE used these funds to move on with the bankable feasibility study, acquiring more of Tubatse from International Petroleum Limited and miscellaneous working capital requirements. Great news floods in On February 3, 2010, NKWE announced the details of its bankable feasibility study on Garatau, highlighting an average production of between 240,000 and 400,000 tonnes per month with an initial mine life of 40-plus years. “Perhaps the most encouraging element is the significant benefits that can be achieved by adopting a highly flexible approach to mine development,” Maredi Mphahlele, NKWE’s Managing Director told press in the announcement. “Through the development of an initial operation focussed solely on the Merensky Reef and with a phased development of the UG2 Reef, there is considerable opportunity to further enhance the positive project economics and greatly accelerate project development.” It didn’t take long for more good news to come NKWE’s way, and on April 6, 2010, the wires reported that the production date slated for 2012 was on track. Not only was this a great update on its own, but the PGM markets picked up, following their tough times in the wake of the global financial crisis, and NKWE stated that it was confident the market would stay afloat for the next two years required to bring Garatau into production as predicted. According to these reports, Garatau has a JORC compliant resource of 24 million ounces which will equate to a 60 to 70 year mine life based on production levels of roughly 300,000 to 400,000 ounces of platinum per annum. NKWE keeps up progress today NKWE’s optimised bankable feasibility study is due for release any day now and has enjoyed a fast-track process towards this following the frankly fantastic results of February’s bankable feasibility announcements. The results offered a 300 per cent increase, totalling 14.2 million ounces of platinum group metals and gold, and 9.1 million ounces of inferred resources. Additionally, these results will aid NKWE as it finalises a Joint Venture agreement with Xstrata to collaborate on Tubatse-Garatau, and, in turn, promise to accelerate the company’s project development time scale for that 2012 production goal. Now with over 60 per cent of the project’s reserves falling under the Measured Resources category, and financing, production schedules, joint ventures, an astounding bankable feasibility study and surging media interest, NKWE is in quite a unique and enviable position. There are a lot of people watching Tubatse-Garatau today each of us waiting for what will inevitably be more exciting and successful news from this promising PGM exploration and development pioneer. www.nkweplatinum.com
NKP Price at posting:
61.0¢ Sentiment: Hold Disclosure: Held
