The Waterberg PGM Project is located in South Africa on the Northern Limb of the Bushveld Complex. Waterberg
represents a large-scale platinum group metal resource with an attractive risk profile given its shallow nature. The
project facilitates fully mechanised production with the potential to have amongst the lowest operating costs in the
PGM sector.
Waterberg is a joint venture between Platinum Group (37.05%), Impala Platinum Holdings Ltd. (Implats) (15%), JOGMEC
(Japan Oil, Gas and Metals National Corporation) (12.95%), Hanwa Co. (9.75%) and BEE partner Mnombo Wethu
Consultants (Pty) Ltd. (26%). As a result of Platinum Group’s 49.90% ownership in Mnombo the Company has an
effective interest in the Waterberg JV of 50.02%.
Platinum Group Metals Ltd. made the initial discovery of this completely new section of the Bushveld Complex
in November 2011. The initial exploration was funded by JOGMEC. In October 2017 Implats purchased a 15%
interest in the Waterberg Project for USD $30M and acquired a right of first refusal for concentrate
offtake. Hanwa Co. retains a right to all metal marketing.
A Pre-Feasibility Study (PFS) was completed in 2016. The results of a Definitive Feasibility Study (DFS) were
announced in September 4, 2019. A Mining Right for the Waterberg Project was granted by the South African
Department of Mineral Resources and Energy in early 2021.
The Waterberg Project has a number of highly attractive characteristics as a low-cost, shallow, bulk mineable
project with significant scale and growth potential. Sixty three percent of Waterberg reserves and resources
of PGMs are palladium. Auto preferences recently have supported a robust palladium market.
Reserves and resources were updated as part of the 2019 DFS. Proven and Probable Reserves: 187 million tonnes
at 3.24 g/t 4E or 19.5 million ounces 4E. Measured and Indicated Resources: 242 million tonnes at 3.38 g/t
4E or 26 million ounces 4E. Reserve and Resource estimates are based on a 2.5 g/t 4E cut-off.
Mineral Resources were completed by Charles Muller of CJM Consulting – see Press Release dated
September 4, 2019. Mineral resources which are not mineral reserves do not have demonstrated economic
viability. The estimate of mineral resources may be materially affected by environmental, permitting,
legal, marketing or other relevant issues. The quantity and grade of reported inferred mineral resources
in this estimate are conceptual in nature. There is no guarantee that all or any part of the mineral
resource will be converted to a mineral reserve.
Mineral Resource Estimate at 2.5 g/t 4E cut-off,
effective September 4, 2019 on 100% Project basis
Notes:
- 4E elements are platinum, palladium, rhodium and gold.
- Cut-offs for Mineral Resources were established by a QP after a review of potential operating costs and
other factors.
- Conversion factor used for kilograms (“kg”) to ounces (“oz”) is 32.15076
- A 5% and 7% geological loss was applied to the Measured/Indicated and Inferred Mineral Resources
categories, respectively.
- The Mineral Resources are classified in accordance with the National Instrument for the Standards of
Disclosure for Mineral projects within Canada, 2011 (“NI 43-101”). Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability and Inferred Mineral Resources have a high
degree of uncertainty.
- The Mineral Resources are provided on a 100% Project basis, Inferred and Indicated categories are
separate and the estimates have an effective date of 4 September 2019.
- Mineral Resources were completed by Mr. CJ Muller of CJM Consulting.
- Mineral Resources were estimated using kriging methods for geological domains created in Datamine from
441 mother holes and 583 deflections. A process of geological modelling and creation of grade shells
using indicating kriging was completed in the estimation process.
- The Mineral Resources may be materially affected by metal prices, exchange rates, labour costs,
electricity supply issues or many other factors detailed in the Company's 2018 Annual Information Form.
- The data that formed the basis of the Mineral Resources estimate are the drill holes drilled by Platinum
Group as project operator, which consist of geological logs, drill hole collars surveys, downhole
surveys and assay data. The area where each layer was present was delineated after examination of the
intersections in the various drill holes.
- Numbers may not add due to rounding.
Proven Mineral Reserve Estimate at 2.5 g/t 4E cut-off,
effective September 4, 2019 on 100% Project basis.
Probable Mineral Reserve Estimate at 2.5 g/t 4E cut-off,
effective September 4, 2019 on 100% Project basis.
Proven & Probable Mineral Reserve Estimate at 2.5 g/t 4E cut-off,
effective September 4, 2019 on 100% Project basis.
Notes:
- The estimated Mineral Reserves have an effective date of September 4, 2019.
- A 2.5 g/t 4E stope cut-off grade was used for mine planning for the T Zone and the F Zone Mineral
Reserves estimate. The cut-off grade considered April 2018 metal spot prices.
- Tonnes and grade estimates include planned dilution, geological losses, external overbreak dilution, and
mining losses.
- 4E elements are platinum, palladium, rhodium and gold.
- Numbers may not add due to rounding.