Platinum Group Metals Ltd. · TSX:PTM
Platinum Group Metals — Technical Presentation (February 2014)
41 slides from Platinum Group Metals's technical presentation, Feb 14, 2014
Slide 1: Waterberg PEA Presentation
Waterberg PEA Presentation 14 February, 2014
Slide 2: Disclosure
Disclosure This presentation has been prepared by Platinum Group Metals Ltd. (“Platinum Group” or the “Company”). Information included in this presentation regarding the Company’s mineral properties has been compiled by R. Michael Jones, P.Eng, the President and Chief Executive Officer of the Compan
Slide 3: Forward Looking Statements
Forward Looking Statements Certain of the statements made herein, including statements regarding the timing of future activities and achievements by the Company, future anticipated exploration and development programs of the Company’s WBJV and Waterberg projects, business plans, funding models for t
Slide 4: Project Objective and Goals
Project Objective Conduct a Preliminary Economic Assessment (PEA) to study the technical and financial viability of the Waterberg Resource Goals • Prove a positive business‐case to advance the project • Establish a preliminary estimate of value • Eliminate fatal‐flaws • Identify way‐forward, critica
Slide 5: Project Study Anatomy
Project Study Anatomy Phase Objective Key Focus Areas Costs To identify major options for Is this the right opportunity? opportunity realisation Is the opportunity consistent with the overall Concept / PEA Confirm alignment with the business business strategy? Capital Cost case Does the po
Slide 6: PEA Summary
PEA Summary Key Findings • Deposits well‐suited to high‐volume, mechanised‐mining • Relatively shallow and accessible via ramps and declines • The large resource and the three access points provide a quick build‐up and a long‐life project supporting 600kt per month of production, 655,000 ounces Plat
Slide 7: Location Map
Location Map PLG: NYSE MKT PTM: TSX 6
Slide 8: Waterberg - Schematic Cross-Section
Waterberg - Schematic Cross-Section Tonnage Pd Pt (g/t) Au (g/t) 2PGE+Au (g/t) Pt:Pd:Au 2PGE+Au (koz) (g/t) Mt 166.7 0.98 1.97 0.32 3.26 30:60:10 17,523 PLG: NYSE MKT PTM: TSX 7
Slide 9: Cross Section T-Layer
Cross Section T- Layer 1000m 132m T Zone F Zone PLG: NYSE MKT PTM: TSX 8
Slide 10: Cross Section F
Cross Section F 1000m 241m T Zone PLG: NYSE MKT PTM: TSX 9
Slide 11: Scope of study and expected deliverables
Scope of study and expected deliverables 1 Resource Mining Processing Infrastructure Financials • Acquire Geological Block Model • Desktop validation of borehole data, assay data, rock density Validation of model preparation, wireframes • Validation of Mineral resource estimate, cut off grade, geo s
Slide 12: Scope of study and expected deliverables
Scope of study and expected deliverables 2 Resource Mining Processing Infrastructure Financials • Assessment of Geotechnical Parameters • Review of strat column on selected boreholes • Identify depth of weathering • Review of deposit, hanging wall and footwall, Validation Summary Report of Geotechni
Slide 13: Scope of study and expected deliverables
Scope of study and expected deliverables 3 Resource Mining Processing Infrastructure Financials • Using limited test work available and using past experience of similar designs, • select a modular concentrator plant to match the mining throughput • Assign metallurgical recoveries • Compile an operat
Slide 14: Scope of study and expected deliverables
Scope of study and expected deliverables 4 Resource Mining Processing Infrastructure Financials • Identify mine access • Determine Battery Limit for Scope of Study i.e. from ROM stockpile, waste rock handling and tailings disposal • Surface and underground layouts and logistics • Recruitment, traini
Slide 15: Scope of study and expected deliverables
Scope of study and expected deliverables 5 Implementation Resource Mining Processing Infrastructure and Financials • Risk Assessment of Implementation Plan • Establish Work Breakdown Structure • Establish Company Rules with regards to definition of Capital and Operating Cost battery limits • Develop
Slide 16: PEA Assumptions
PEA Assumptions Resource • Rhodium has been excluded from the contribution in the Financial Valuation Mining • Equipment selection for mining methods; Step Room & Pillar and Sub‐level Open Stoping • Used preliminary metallurgical recoveries from the SGS test work • Recent plant designs treating 260k
Slide 17: Public Involvement
Public Involvement The Process of Community Consultation by PTM • PTM completed the process of consultation as part of the prospecting permit process in accordance with the requirements of the MPRDA • This process also forms part of the prospecting Environmental Management Plan (EMP) which has been
Slide 18: Public Involvement (cont’d)
Public Involvement (cont’d) • During community • Community forums have been established consultations, have • PTM has been well received throughout the region demonstrated the process of • Meet regularly to discuss issues pertaining to the ongoing exploration so that the prospecting programme people
Slide 19: Inferred Resources – Sept 2013
Inferred Resources – Sept 2013 Waterberg Updated Mineral Resource Estimate Inferred 2PGE+Au Resource Estimate, September 2, 2013 Thickness Tonnage Pt Pd Au 2PGE+Au 2PGE+Au Cu Ni Layer Pt:Pd:Au Cu (t) Ni (t) (avg m) Mt (g/t) (g/t) (g/t) (g/t) (koz) (%) (%) T1 2.30 8.50 1.04 1.55 0.47 3.06 34:51:15 84
Slide 20: Mining Methods
Mining Methods • Aspects that influence the mining method decision: ‐ Examine methods suitable for massive and moderately thick deposits ‐ The deposits have a relatively difficult dip of 38○ ‐ Mining methods must address all associated safety issues, and ‐ Be able to deliver high volumes PLG: NYSE M
Slide 21: Mining Methods (cont’d)
Mining Methods (cont’d) • The following criteria were used to establish a scoring system in the Analytical Hierarchy Process (AHP): ‐ Shortest time to production ‐ Quickest return on investment (ROI) ‐ High volumes ‐ Flexibility ‐ Selectivity ‐ Safety ‐ Cater for the dip and thickness PLG: NYSE MKT
Slide 22: Mining Methods (cont’d)
Mining Methods (cont’d) • Initially 13 mining methods were considered: Sub‐level cave (massive) – (unacceptable surface subsistence) Open pit (massive) – (massive material removal) Drift and fill (massive) – (cost, limited production output) Reef boring (moderate thickness) – (not suitable
Slide 23: AHP Results – Moderate T and F Zones
AHP Results – Moderate T and F Zones Modest Zones Overall Mining Method Rating Criteria Hi The mining methods were evaluated against the following criteria: Shortest time to production Score Quickest return on investment (ROI) High volumes Flexibility Selectivity Safety Lo Allow for th
Slide 24: AHP Results – Super F Zone
AHP Results – Super F Zone Super F Overall Mining Method Rating Criteria Hi The mining methods were evaluated against the following criteria: Shortest time to production Score Quickest return on investment (ROI) High volumes Flexibility Selectivity Safety Lo Allow for the dip and thick
Slide 25: Unlocking The Potential
Unlocking The Potential Room and pillar Block cave (massive) Trough mining Sub‐level cave (massive) Reef boring Open pit (massive) Long hole stoping Sub‐level open stoping (massive) Contour drift and fill Cut and fill (massive) Step room and pillar Drift and fill (massive) Longitudinal room and pill
Slide 26: Mine Design Criteria – Mechanised Mining
Mine Design Criteria – Mechanised Mining Development Advance Rates : Sub‐level Open stoping (SLOS) • Decline – 110m per month per decline • Rib Pillars – 5m wide (system advance) • Rib pillar spacing 15m skin to skin • Flat development – 200m/month/crew • Vertical distance between drill drives – 20m
Slide 27: Longitudinal Section
Longitudinal Section Decline and Access Schematic 1413m 225m 224m 372m Portal from Portal from Surface Surface Shallow T Super F North F Note: Vertical Red and blue lines are vent holes PLG: NYSE MKT PTM: TSX 26
Slide 28: Blue-print Design – T Zone
Blue-print Design – T Zone Up, and down‐ cast vent holes Decline Cluster Surface portal Step, room& pillar PLG: NYSE MKT PTM: TSX 27
Slide 29: Blue-print Design – Super F Zone
Blue-print Design – Super F Zone Up, and down‐ Decline Cluster Surface portal cast vent holes Production ramps and stopes PLG: NYSE MKT PTM: TSX 28
Slide 30: Combined Tonnage Profile
Combined Tonnage Profile 8,000,000 7,000,000 6,000,000 Tonnes 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 T Zone North F Super F PLG: NYSE MKT PTM: TSX 29
Slide 31: Bulk Services – Electrical Supply
Bulk Services – Electrical Supply • Discussions have been initiated with Electrical Power Supplier (Eskom) • Upgrades and conversions to existing networks are planned to be in place by 2018 • Milestone is considered a high risk to the Project, as there is no alternative supply besides self‐supply (P
Slide 32: Bulk Services – Water
Bulk Services – Water • Indication that there is little ground water available on site to be used for mining and processing plant • The expected Project consumption of 30 Ml per day will be supplied from the planned water supply upgrade Project in the area West of Polokwane • The formal water supply
Slide 33: Bulk Services – Access Roads
Bulk Services – Access Roads • The current drilling area is some 38km to 45km from the N11 National Road • The route to the Waterberg drill sites are via rural roads from the N11 • New haul roads and access roads will have to be constructed 32
Slide 34: Process slide
Process slide 2 x 300ktpm processing plants planned. 1st to be commissioned in 2018, 2nd end 2019 33
Slide 35: Assumptions
Assumptions Pricing Assumptions 3 Year Trailing Current/Spot Average Platinum (US$ / oz) 1,380.00 1,586.06 Palladium (US$ / oz) 708.00 701.04 Gold (US$ / oz) 1,259.00 1,548.84 Copper (US$ / lb) 3.25 3.58 Nickel (US$ / lb) 6.51 8.35 R/US$ 11.13 10.00 3 Year Trailing Basket Price Current Spot Average
Slide 36: Key Metrics – Ounce Profile
Key Metrics – Ounce Profile LOM(1) Ounce Profile 800,000 Steady State Production Gold (655 000 oz) 700,000 600,000 oz/annum 500,000 Palladium 400,000 300,000 200,000 100,000 Platinum 0 Recovered Ounces Steady State Ounces Total Concentrate 11 409 412 655 000 Platinum 3 381 234 194 000 Palladium 6 90
Slide 37: Key Metrics – Operating Costs
Key Metrics – Operating Costs Key Operating Costs Direct Cost (R/t) 363 Processing Cost (R/t) 112 Transport (R/t) 26 Operating Cost (R/t) 501 Operating Cost ($/oz) 555 Production Cost ($/oz) 626 Direct Costs (R’m), excl. Processing ‐ R362.51/t Power, R49.39, 13% Water, R0.75, 0% Services, R31.81, La
Slide 38: Key Metrics – Capital Costs
Key Metrics – Capital Costs Capital Requirements per Summary Work Package Peak Funding Capital to Full Sustaining Total Peak Funding (R’bn) 8,853 Area Production Capital (R'm) (R'm) (R'm) MIning Services R 24 R ‐ R 24 Peak Funding (US$M) 885 Mining Development R 2,014 R 3,004 R 5,018 Development Equ
Slide 39: Key Metrics – Cashflow
Key Metrics – Cashflow Cash Flow 25,000 Cashflow Revenue Cumm Cashflow Cumulative cashflow R20.9bn 10,000 20,000 8,000 Cumulative Cashflow (R’m) First production 15,000 2018 6,000 Cashflow (R'm) 10,000 4,000 5,000 2,000 0 0 (5,000) (2,000) (10,000) (4,000) Project construction Peak funding R8.8bn st
Slide 40: High-level Project Schedule
High-level Project Schedule Project Phases Current Phase File Mining Right Complete Application PEA Remainder of 2014 Deliverables • Proven Business Prefeasibility Study Case Action Steps • No fatal‐flaws 2015 • Additional exploration drilling • Forward work‐ • Geological modelling Feasibility Study
Slide 41: Platinum Group Metals Ltd. contact
PLG:NYSE MKT PTM:TSX DI ATIAILIR, PLATINUM Platinum Group Metals Ltd. Suite 788 — 550 Burrard Street Platinum Group Metals RSA (Pty) Ltd. Vancouver, BC V6C 2V5 1st Floor, Platinum House Canada 24 Sturdee Avenue +1 604-899-5450 Rosebank, Johannesburg 2196 info@platinumgroup.net platinumgroupmetals.ne
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