Very upbeat article from a well-respected source, hot off the...

Very upbeat article from a well-respected source, hot off the presses!

http://www.internationalresourcejournal.com/resource_in_action/july_10/nkwe_platinum_limited_face_of_new_south_african_pgm_promise.html


The face of New South African PGM Promise
The new mining laws written in South Africa in 1991 accompanying the demise of apartheid were formed with companies like NKWE Platinum Limitedan ASX-listed emerging PGM exploration and development majorin mind. The new laws, which prioritised a use it or lose it principle, forced mining companies to either prospect their land or pass it on to historically disadvantaged groups who could be at last, and systematically, brought in from the periphery of the economy.

NKWE embodies the potential and vision of those laws. Not only an does its work exemplify the mining laws in action, NKWE is also one of the most exciting platinum mining juniors in the field today. NKWE, under the MPRDA (Mineral and Petroleum Resources Development Act) was granted five platinum-rich farms in the Bushveld area.

The companys flagship projects, Garatua and Tubatse, are located in the Eastern Limb of acclaimed platinum mining territory of the Bushveld Complex.
These assets came about as the previously unexplored assets of a mining major, and (South African partner) Genorah Resources successfully applied for the assets. Thats how the projects were brought together, says Peter Landau, Executive Director and Company Secretary of NKWE.

NKWEs project has an impressive surface footprint of over 10,500 hectares over the Merensky Reef and UG2 chromotite seam. The project is fortuitously positioned on a very large geological structure with a radius of 400 kilometres. The peculiar materials at the surface of the Bushveld, which are not normally so abundant, are the result of an ancient volcano which brought them to the earths surface.

If you went down to 5,000 metres, the South Africa Bushveld complex would have 99 per cent of the worlds known platinum, says Landau.

Unlike other commodities, there just isnt geologically anywhere else to find platinum. That is the uniqueness of the Bushveld complex where you have the two raises the Merensky Reef and the UG2 Reef which contain 75 per cent currently of the worlds PGM resources.

NKWE has recently completed its Bankable Feasibility Study (BFS) on Garatau, continuing exploration along with the Tubatse Project area, with the objective of developing two significant mines capable of producing over one million ounces of PGM from a targeted mineralisation base (exceeding 100 Moz 3PGM Au).

Having already gotten the hardest job out of the wayfinding an exceptional depositNKWEs focus is now locked on securing a world-class strategic partner with the expertise and ability to bring the project to its full potential, namely, Xstrata, in order to assist in production of more than 1 million ounces.
It looks like that deal may very well materialise in the near future, with the team hoping to have it consummated in June. Following our coverage as NKWE edges ever-closer to finalising this sort of agreement, we asked Landau more.

The way the project works is on the northern Garatua project where the bareface is being completed, they have the option to spend 100 per cent of the capital cost to get the mine to running mine level, 4 million tonnes per annum, he says.

In our proposal, they will have a right to participate to develop the southern farm on a 50 per cent basis. So that is the current deal. Obviously we cant speak for Xstrata, but we are comfortable they will exercise that option. All we can say is based on the robustness of the project, and how people see the PGM market and industry over the next 10 years, obviously its an incredibly attractive option.

NKWE has furthered its growth and development strategy by recently becoming listed on the Hong Kong Stock Exchange. The geographical proximity and NKWEs advantageous access to metal are extremely appealing to the demanding Chinese market, as evidenced by Chinas $1 billion deal with Canadian copper producer Quadra Mining.

The interest is there, says Landau. Under our proposed deal with Xstrata, Chinese companies will have physical access to metal. There are no other listed PGM companies on the exchange. Precious metals do trade at a high multiple, it is a very liquid exchange. We are progressing with it and we think it will add another dimension to our stock.

This is a very exciting time for NKWE, who have tapped into a highly-sought after resource right when it really matters. The next 12 months is a very exciting time to come, says Landau. The future of the PGM industry is bright, with prices being incredibly robust, raising 50 per cent in the past six months. We are in a very good space at this time.

There are some people who might find Landaus comment to be an understatement. On the verge of major production and braced for potential backing by one of minings super-companies, NKWE is the face of new South Africas mining success.