Eastern Platinum Limited

Eastern Platinum Limited

November 08, 2006 02:00 ET

Eastern Platinum Limited: Spitzkop PGM Project Feasibility Study Update

Infill Drilling Confirms High Grade, Platinum Rich UG2 Reef

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2006) - Mr. Ian Rozier, President & CEO of Eastern Platinum Limited ("Eastplats") (TSX:ELR)(AIM:ELR), is pleased to report on initial results of infill drilling being conducted as part of the bankable feasibility study at the Spitzkop platinum group metals ("PGM") project in South Africa. The Spitzkop project, located approximately 10km from Steelpoort in Mpumalanga Province, is a high grade, platinum and rhodium rich, shallow dipping, surface accessible PGM deposit. Spitzkop is situated updip of, and adjacent to, the Kennedy's Vale project owned by Barplats Investments Limited ("Barplats"), in which Eastplats owns a 69% indirect interest.

As reported in a previous news release, Spitzkop has a Measured Resource of 37.46 Mt at an average grade of 7.7 g/t (5 PGE + Au) containing 9.3M ozs PGM's after predicted geological losses, (metal contributions or 'prill splits' on a 5 PGE + Au basis were provided in the release dated February 3rd, 2005). As part of the feasibility study, the objectives of the current infill drilling program were to;

- Confirm the high platinum and rhodium grades reported by Impala Platinum Ltd. ('Impala') from previous exploration work;

- To infill the drillhole coverage to enable reserve estimates to be made; and

- To provide dedicated UG2 reef intersections for definitive metallurgical testing.

These data will be used to assist in detailed mine planning for the 'Northern Block' at Spitzkop where the UG2 reef outcrops on surface and extends down dip at between 11 degrees to 14 degrees to a depth of 350m, and is the area proposed for initial mining at Spitzkop.

Drilling is being conducted by Geosearch Drilling, a division of Transbor. On site geological work and supervision is being carried out by MSA Geoservices under the direction of Davminex Mineral Consultants (Pty) Ltd. Assaying is being conducted by Set Point Laboratories.

Assay results to date from the infill drilling on the Northern Block have been received from eight drillholes ('mother holes'). Each hole has three deflections. The intersected reef recovered from the 'mother holes' and from two deflections were taken for assaying; the intersected reef in the third deflection in each hole will be subjected to confirmatory metallurgical testing. To date, assay results for eight holes (for a total of 24 reef intersections) have been reported. The results from this program to date are summarized below with assayed grades based on a 3 PGE + Au basis with average 'prill splits' being expressed in percentage terms:

Depth to Top of Grade Reef
Hole # UG2 Reef (m) (g/t) Width (m)
-------------- --------------- -------- -----------
SP01 98.1 5.03 1.47
Defl.SP01-U2 6.00 1.00
Defl.SP01-U3 6.01 1.15

SP02 85.8 6.02 0.98
Defl.SP02-U1 6.00 1.00
Defl.SP02-U3 6.86 0.99

SP03 103.3 7.47 1.18
Defl.SP03-U2 5.72 1.12
Defl.SP03-U3 6.14 1.30

SP07 131.8 6.05 0.80
Defl.SP07-U2 10.73 0.61
Defl.SP07-U4 6.70 0.73

SP08 103.6 5.39 0.94
Defl.SP08-U2 6.57 1.03
Defl.SP08-U3 8.11 1.05

SP09 137.2 9.20 1.31
Defl.SP09-U3 6.26 1.28
Defl.SP09-U4 4.94 1.22

SP10 465.3 5.66 0.55
Defl.SP10-U4 8.34 0.63
Defl.SP10-U5 2.66 0.55

SP12 B 54.3 6.50 0.70
Defl.SP12 B-U3 7.41 0.94
Defl.SP12 B-U4 8.60 1.14

As stated, reef widths are intersected widths; the UG2 Reef at Spitzkop dips at between 11 degrees and 14 degrees.

The average metal contribution or 'prill splits' for the above UG2 intersections are; Pt 56%; Pd 35%; Rh 8%; Au 1%.

Hole SP10 was located to the north of the known location of the Steelpoort Fault that forms the north-west boundary of the Spitzkop Northern Block in order to assist in the geological evaluation of Barplats' De Goedeverwachting Block west of Spitzkop.

The UG2 reef is well developed and grades are consistent with previous work reported by Impala and also with those of nearby operators mining the UG2 reef. Also significant is the high component of platinum (56%) and rhodium (8%) mineralization confirming both the general high grade, and the Pt/Rh rich nature of the UG2 at Spitzkop. Further results will be reported when assay and metallurgical results have been received.

Spitzkop is envisaged to be a decline mining operation that will exploit high grade PGM resources at relatively shallow depth without the requirement for high capital cost shaft mine infrastructure and underground pre-production development. Eastplats and Barplats are evaluating the cost benefits of combining Spitzkop and Kennedy's Vale into an integrated mining operation accessing the shallow sections of both properties through Spitzkop. The deeper sections of both properties could utilize the twin vertical shafts that already exist at Kennedy's Vale to a depth of 1,000m. This infrastructure, with a current replacement cost of approximately US$300 Million, would result in a significant reduction in capital costs for the development of the mine.

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