positive outcome from kalahari

8 October 2009
POSITIVE OUTCOME FROM KALAHARI PLATINUM PROJECT PRE FEASIBILITY STUDY
Platinum Australia Limited (ASX:PLA) (AIM:PLAA) is pleased to announce that it has received the Pre Feasibility Study (“PFS”) Report for the Kalahari Platinum (“Kalplats”)
Project. The PFS Report shows the project to be commercially and technically viable and able to generate a return of 25% on the Base Case assumptions based on mining only four of the seven known deposits.
The PFS Report has now been submitted to African Rainbow Minerals Platinum (Pty) Ltd (“ARMplatinum”) for their consideration.
The key results from the study are as follows:-
�� The Project would deliver a return of 25%;
�� The Project would achieve a pre tax NPV10 of US$50 Million;
�� The Project would generate a net cash flow (undiscounted) of US$145 Million;
�� Initial Capital Cost of the Project would be US$91 Million;
�� Cash Operating Cost of US$340/oz 4E (platinum + palladium + rhodium + gold) concentrate produced (net of base metal credits);
�� The Project would produce over 1 Moz 4E over a 9 year operating life from open pit mining of four deposits, Crater, Orion, Crux and Vela.
PLA Managing Director John Lewins said: “The results of the Kalplats Pre Feasibility Study are very pleasing and show that a project based on only four of the seven known deposits would achieve an Internal Rate of Return of 25%. The quality of the project and the benefits of open pit
development are clearly demonstrated by the projected cash operating costs being among the lowest in the industry at only US$340/oz 4E and the projected initial capital cost also being low at only US$91 million”.
“The Company has already commenced the Definitive Feasibility Study on the Kalplats Project which will be based on the expanded resource including Serpens North and Sirius. In addition to the expanded resource base, the work carried out on the PFS has identified that there is
significant scope to enhance the project, including further refinement of the resource models to allow greater flexibility for the application and evaluation of grade control in the mining process.
This work is under way and it is considered that this has the potential to increase the ore grade mined and treated by up to 10% to 15%, thereby reducing costs and enhancing the project economics”.