Anooraq Resources Corporation
TSX VENTURE : ARQ
AMEX : ANO

Anooraq Resources Corporation
Anglo Platinum Limited

Anglo Platinum Limited

November 03, 2006 09:15 ET

Anooraq-Anglo Platinum: Ga-Phasha PGM Project Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 3, 2006) - Anglo Platinum Limited ("Anglo Platinum") and Anooraq Resources Corporation ("Anooraq") (TSX VENTURE:ARQ)(AMEX:ANO) ("the Parties") announce an update on the Ga-Phasha Platinum Group Metals ("PGM") Project ("Ga-Phasha").

The programme review announced on 26 April 2006 ("the Review") was completed during October 2006. An increased number of approaches were considered to optimize mining of the deposits at Ga-Phasha. As a result of the findings, the Parties have now agreed to continue with studies to advance the project and have appointed an independent project manager to conduct a Pre-Feasibility Study ("PFS") on Ga-Phasha. A detailed timetable of further studies as well as a project timetable toward a Bankable Feasibility Study will be released after the PFS, which is scheduled for completion by the end of the first quarter of 2007.

The Review confirmed that the UG2 reef deposit remains the primary focus for development and the Merensky reef warrants further study through additional drilling programmes. Therefore, the Parties have agreed that the PFS will consist of a Phase 1 study to exploit the UG2 reef to a depth of some 650 meters below surface, and will also seek to identify a single preferred option by which to proceed to the bankable feasibility phase. The PFS will also contemplate optimising economies of scale between the Parties' operations on the Northern Eastern Limb of the Bushveld Complex, and in that regard, will evaluate the possible usage of joint infrastructure and processing facilities between Anglo Platinum's Twickenham Platinum Mine and Ga-Phasha.

Read, Swatman & Voigt (Pty) Ltd ("RSV") has been appointed as the independent project manager to conduct the PFS. RSV is a highly reputable South African engineering and project management company that serves the mining, metallurgical, and industrial sectors in South Africa and the rest of the world. With a staff complement of 300 people from the mining, engineering, project management and administration discipline RSV has conducted assessments of numerous PGM Projects on the Western and Eastern Limbs of the Bushveld Igneous Complex in South Africa. Some of its key projects include the Lonmin Platinum K4 Shaft Project, the Impala Platinum 16 Shaft project and the Anglo Platinum Rustenburg Platinum Mine UG2 expansion.

Also announced on 26 April 2006 was Anglo Platinum's agreement in principle to undertake a US$10 million funding into Anooraq. The Parties announce that the financing has been concluded. Pursuant to the current agreement, Anglo Platinum, through its wholly owned subsidiary Rustenburg Platinum Mines, will loan an amount of R70 million to Plateau Resources (Pty) Ltd ("Plateau"), a wholly owned South African subsidiary of Anooraq. Plateau will utilise the majority of the funding to advance the Ga-Phasha project to bankable feasibility study, as part of Anooraq's objective of becoming a substantial PGM production company. Pursuant to security agreements entered into in connection with the loan, Plateau has ceded as security, its interest in Micawber 277 (Pty) Ltd (Micawber). Micawber, a South African company equally owned by Rustenburg Platinum Mine and Plateau Resources, owns the Parties' interests in the Ga-Phasha PGM Project.

The final repayment date for the loan will be 30 September 2010, however the agreement does allow for early repayment thereof. The first interest payment will become due and payable fourteen months after the date of the advancement of the funds, with other subsequent interest payments due and payable in 6-month intervals thereafter.

In commenting on the update:-

Tumelo Motsisi, Deputy CEO and Managing Director of Anooraq, said:-

"The conclusion of the funding arrangement with Anglo Platinum and the appointment of RSV as the independent project manager tasked with moving the Ga-Phasha PGM Project forward through to finalization of the pre-feasibility are important milestones. It demonstrates that the parties of this joint venture are committed to advancing this project toward the bankable feasibility stage."

ISSUED BY: ANGLO PLATINUM AND ANOORAQ

ISSUED ON BEHALF OF THE BOARD OF DIRECTORS OF ANOORAQ BY

Tumelo Motsisi, Managing Director and Deputy CEO

Anooraq Resources Corporation

Note regarding the Ga-Phasha Project:

The Ga-Phasha Project, a 50:50 joint venture between Anglo Platinum and Anooraq, is located on the North Eastern Limb of the Bushveld Complex, 250 kilometres northeast of Johannesburg in South Africa.

Note regarding Anooraq:

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Anooraq ("the Company") expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, changes in and the effect of government policies with respect to mining and natural resource exploration and exploitation and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's annual Form 20-F filing with the United States Securities and Exchange Commission and its home jurisdiction filings that are available at www.sedar.com.

The TSX Venture Exchange and the American Stock Exchange have neither approved nor disapproved the contents of this press release.

Contact Information

  • Anglo Platinum Limited
    Trevor Raymond
    +2711 373 6462 or +2782 6548467
    or
    Anooraq Resources Corporation
    Phumzile Langeni
    +2711 883 0831 or +2783 745 5834
    Website: www.anooraqresources.com