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
mechanized production with the potential to have amongst the lowest operating costs in the PGM sector.
Waterberg is a joint venture between Platinum Group (37.19%), Impala Platinum Holdings Ltd. (“Implats”) (14.86%), HJ Platinum
(21.95%) which consists of Japan Oil, Gas and Metals National Corporation (“JOGMEC”) and Hanwa Co., and Black Economic
Empowerment (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 50.16%.
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
on 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. An update to the 2019 DFS was completed in September 2024.
Reserves and resources were updated as part of the 2024 DFS. Proven and Probable Reserves: 246.2 million tonnes at 2.96 g/t
4E or 23.41 million ounces 4E on a 100% project basis.
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.
Mineral Resources were completed by Charles Muller of CJM Consulting – see Press Release dated September 16, 2024. 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 4E g/t Effective August 31, 2024 on a 100% Project Basis
Mineral Resource F-Zone 2024
Waterberg Aggregate - Total Mineral Resource 2024
Notes For Resource Tables Above:
- All mineral resources in situ.
- Mineral resources are reported inclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
4E = PGE (Pt + Pd + Rh) and Au.
- The mineral resources stated above are shown on a 100% project basis, that is, for the Waterberg Project.
- Mineral resource cutoff 2.5 g/t (4E) grade except for FZ-Central and FZ-South are at 2.0 g/t cutoff grade (4E). Cutoff grade calculations
performed in March 2023 and were based on the following assumptions:
- Metal prices: Pt at US$1,050/oz, Pd at US$1,300 /oz, Au at US$1,650/oz, Rh at US$5,000/oz, Cu at US$3.50/lb and Ni at US$8.50/lb.
- Unit costs: US$63.99 / t milled for F-Zones and US$76 / t milled for T-Zone (based on the 2019 DFS and escalated for inflation).
- Metal recoveries: 4E concentrator recoveries at 82% for F-Zones and 81% for T-Zone. Base metal recoveries for the F-Zones at 50.0%
for Ni and 88.6% for Cu, T-Zone at 46.0% for Ni and 86.6% for Cu.
- Smelter recovery/payabilities: 83.5% for 4E and 72.0% for Cu and Ni.
- Conversion Factor used – kg to oz = 32.15076.
- Numbers may not add due to rounding.
- A 5% and 7% geological loss were applied to the Measured / Indicated and Inferred mineral resource categories, respectively
Proven Mineral Reserve Estimate 4E g/t Effective August 31, 2024 on a 100% Project Basis
Probable Mineral Reserve Estimate 4E g/t Effective August 31, 2024 on a 100% Project Basis
Proven & Probable Mineral Reserve Estimate 4E g/t Effective August 31, 2024 on a 100% Project Basis
Notes For Reserve Tables Above:
- The mineral reserves are based on using the long hole mining method with paste backfill. A minimum stope width of 2.4 m
(true width) was used.
- The point of reference for the mineral reserves is defined as the point where the mined ore is delivered to the processing plant.
4E = PGE (Pd + Pt + Rh) and Au.
- A stope cutoff grade of 2.0 g/t 4E was used for mine planning for F-Central and F-South while a 2.5 g/t 4E was used for mine planning
for the T-Zone and other F-Zones in the mineral reserves estimate.
- Long-term metal prices assumed for cutoff grade estimates were Pt = US$1,050.00/oz, Pd = US$1,300.00/oz, Rh = US$5,000.00/oz,
Au = US$1,650.00/oz, Cu = US$3.50/lb, Ni = US$8.50/lb and exchange rate 17.22 ZAR = 1 US$.
- Long-term metal recoveries assumed for cutoff grade estimates were 4E 82% for the F-Zones and 4E 81% for the T-Zone. A smelter
recovery of 4E 83.5% was assumed for all zones.
- Long-term operating costs assumed for the cutoff grade estimates were US$63.99 per tonne mined for the F-Zone and US$76.09
per tonne mined for the T-Zone and include mining, processing, infrastructure, general and administration, transport, royalties,
and sustaining capital.
- Tonnage and grade estimates include planned dilution, geological losses, external overbreak dilution, and mining losses.
- Numbers may not add due to rounding.
QP Statement
The technical information presented in this website has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101, and has been reviewed and approved by Rob van Egmond, P.Geo., a consultant geologist to and former employee of Platinum Group Metals Ltd., and the independent Qualified Person for the company under National Instrument 43-101.