Eastern Platinum Limited
TSX : ELR
AIM : ELR

Eastern Platinum Limited

October 31, 2006 02:00 ET

Eastern Platinum Limited: Infill Drilling of Kareespruit Section at Crocodile River

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 31, 2006) - Ian Rozier, President and CEO of Eastern Platinum Limited ("Eastplats") (TSX:ELR)(AIM:ELR), and Chairman of Barplats Investments Limited ("Barplats"), is pleased to report that an infill drilling program is to be conducted on the Kareespruit section of the Crocodile River Mine ("CRM") Platinum Group Metals ("PGM") producer in South Africa. The Kareespruit section comprises an area of approximately 5 square kilometers located immediately adjacent to and west of the Maroelabult section of the CRM, being an on strike and downdip extension of the UG2 reef currently being mined at the Maroelabult section of CRM.

Thirteen diamond drillholes were put down at Kareespruit during a previous exploration program conducted by Impala Platinum Limited as part of their original valuation of the CRM property prior to Zandfontein and Maroelabult being put into production. Of these holes, ten intersected consistent UG2 reef at predicted depths of between 323m and 814m below surface. These data were used by Camden Geoserve ("CG") to prepare an Independent Technical Report dated April 2005 and by RSG Global in their Independent Technical Report dated January 2006. CG documented the following resource estimates for the UG2 at the Kareespruit section;

- Indicated Resource of 2.42 Mt at an average grade of 4.75g/t (5 PGE+Au) for 0.37M PGM ozs.

- Inferred Resource of 13.11 Mt at an average grade of 5.12 g/t (5 PGE+Au) for 2.16 M. PGM ozs.

- A further Inferred Resource of 1.5 Mt at an average grade of 5.36 g/t (5PGE+Au) for 0.275M ozs for the Kareespruit extension section area updip from Kareespruit.

- The metal contributions or 'prill splits' for the 5 PGE and gold assays at Kareespruit are; Pt 49.7%, Pd 21.6%, Rh 8.1%, Ru 16.6%, Ir 3.5% and Au 0.5%.

- As reported by CG, these resource estimates include a "conservative" provision of up to 45% for geological losses (Indicated 30% and Inferred 45%).

The quality of the reef intersections and the average grade suggests significant economic potential of the PGM resource at Kareespruit and warrants further definition drilling. The proposed program is an infill drill program designed to place the PGM Inferred Resource at Kareespruit into the 'Indicated' category in order to enable a pre-feasibility study to be undertaken, and will comprise 27 holes with a total estimated drill length of over 15,700m. As there is no surface property or structural geological boundary to the northwest (downdip of the Kareespruit section into the Maroelabult North section), drilling may be extended downdip to the north and west with the objective of evaluating the continuity of the UG2 reef to a maximum depth of 1000m over the strike length of approximately 5000m. The Kareespruit section has the potential to be developed into a significant PGM resource and is one of several other potential resource blocks that are known to exist on the CRM property.

"Kareespruit is just one of several resource blocks at CRM that Barplats will be evaluating in the near future with a view to bringing them to account. With the consistency of the reef intersections and grade across the property, the potential exists to develop a very large PGM resource base to be mined at CRM, and importantly, at relatively shallow depths," stated Ian Rozier, Chairman of Barplats.

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 and CEO
    (604) 685-6851
    (604) 685-6493 (FAX)
    Website: www.eastplats.com