Eastern Platinum Limited

Eastern Platinum Limited

January 16, 2007 02:00 ET

Eastern Platinum Limited: Existing 500m Vertical Shaft at Crocodile River Mine to Be Commissioned

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2007) - Mr. Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") (TSX:ELR)(AIM:ELR), is pleased to report on recent developments at the Crocodile River Mine ("CRM") in South Africa. CRM is owned by Barplats Investments Limited ("Barplats") in which Eastplats owns a 69% indirect interest.

Equipping of the existing 500m deep vertical shaft, at a cost of R150million, has commenced at the Zandfontein section of the Crocodile River Mine. Following safety, technical and financial evaluations in 2006, the vertical shaft option is considered to be the most effective method to access the deeper portions of the Zandfontein Section at CRM. The shaft will be commissioned by March 2008 and will support a production level of 120,000 tonnes per month. Murray and Roberts Cementation have been contracted to do the work which will create approximately a further 100 jobs at the mine.

This shaft was sunk almost twenty years ago, is in excellent condition, and its rapid utilization will result in the fast-tracking of the proposed mine expansion and plans to increase production at CRM. Furthermore, in order to fast track the equipping of the shaft, one of the dormant headgears from Barplats' Kennedy's Vale property is being re-erected at CRM.

"The utilization of the vertical shaft and the availability of the headgear from Kennedy's Vale will enable us to fast track the proposed mine expansion," stated Ian Rozier, who is also chairman of Barplats.

"We are more effectively using previously written-off assets in order to increase production, and to ensure long term operational efficiency at CRM," he said.

Photos showing dismantling of headgear at Kennedy's Vale can be found on the Company's website.

Eastern Platinum Limited trades on the TSX and AIM Stock Exchanges under the trading symbol ELR.

The qualified person having prepared the contents of this news release is Mr. Ian Rozier, B.Sc.(Hons), M.Sc., P.Eng.

Certain statements included herein constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements are based on certain assumptions by Eastplats and Barplats and as such are not a guarantee of future performance. Actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, increased costs of production and a decline in metal prices. Eastplats is under no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

Contact Information

  • Eastern Platinum Limited
    Mr. Ian Rozier, M.Sc., P. Eng.
    President & C.E.O.
    (604) 685-6851
    (604) 685-6493 (FAX)
    Website: www.eastplats.com