Platinum Group Metals Ltd.
OTC Bulletin Board : PTMQF
TSX : PTM

Platinum Group Metals Ltd.

June 28, 2005 10:58 ET

Platinum Group Metals Ltd.: Western Bushveld Joint Venture Drilling Expands Reef Areas and Returns High Grades

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 28, 2005) - Platinum Group Metals Ltd. (TSX:PTM)(OTCBB:PTMQF) announces assay results from drill intercepts which confirm the high grade nature of the resource area. The new results allow for expansion of the resource area within the Western Bushveld Joint Venture ("WBJV"). The targets for exploration and development continue to be within the well known rock layers of the "Merensky Reef" and "UG2 reefs" which produce the bulk of the world's platinum production.

Highlights of new intercepts on the Merensky Reef include:

WBJV-02-D0 6.41 grams per tonne (g/t) platinum, palladium and gold (2E+Au) cut to a 1.0 metre mining width

WBJV-06-D0 15.02 g/t (2E+Au) cut to a 1.0 metre mining width

ELN-06-D2 7.24 g/t (3E+Au) at 1.46 metres mining width

The WBJV holes specifically highlighted above are from PTM's ongoing drilling program and are located on the outer edge of the previous resource area and as a result of their area of influence, add to the area for consideration in a resource update. ELN06 is within the resource and is from a re-analysis of earlier drilling that was not considered in the initial resource calculation announced March 7, 2005 of 4.74 M (3E+Au) ounces inferred included 15Mt grading 7.92 g/t 3E+Au on the Merensky Reef. The previous resource was calculated principally from 9 intercepts with a minimum mining cut of 1 meter.

The average Merensky Reef grade derived now from all available 27 intercepts is 7.80 g/t platinum, palladium, rhodium, and gold (3E+Au) calculated over a mean thickness cut of 1.20 metres. For perspective the BRPM Platinum Mine immediately adjoining the WBJV has a published reserve grade of 4.87 g/t 3E+ Au with approximately a 1 meter mining width. The average WBJV grade includes the new holes where the Merensky Reef was successfully intercepted by PTM, new results on the historically drilled core, and the holes in the earlier resource calculation. The rhodium values for the PTM holes are still outstanding and will add slightly to the average value. The platinum group element ratio averages of the new intercepts on the Merensky Reef average 64% platinum, 30% palladium, 2% rhodium (est.), and 4 % gold. This is consistent with the platinum ratio in the Western Bushveld generally and confirms PTM's earlier estimates.

PTM has completed 27 boreholes totalling 10,000 metres and results from 13 holes (6,976 metres) are hereby reported. The new results reported have the same general distributions of grades and thickness and geological losses as included in the previous resource estimate, and they enlarge the area to be considered for resources.

Drilling completed by PTM in the past few days has not been sampled but confirms that the Merensky Reef and UG2 Reef extend for a further 3.1 kilometres along strike beyond the initial resource area. The results from the further drilling on strike are expected to be received shortly so that they can be considered in the ongoing project scoping study currently underway. A scoping study is an initial engineering study and economic model to develop concepts for project development.

"We are very pleased with the initial drilling results confirming the excellent tonnes, grade, and depth profile of the deposit and opening up of the area to the northwest along strike and near to surface" said John Gould, Managing Director with PTM RSA (Pty) Ltd, the wholly-owned subsidiary of PTM-TSX. Mr. Gould has experience in platinum mining at the Amandelbult Platinum mine to the north of the PTM project.

PTM and Anglo Platinum each hold a 37% interest in the joint venture, with BEE partner Africa Wide Mining holding 26%. PTM is the project operator. Anglo Platinum is the world leader in platinum. Drilling is continuing with four machines.

Technical Details

A total of 35 potential pierce points (boreholes and deflections) have been completed and assayed by PTM and Anglo Platinum's work on the Merensky Reef. To date, twenty seven pierce points or 77% intersected reef successfully and eight or 23% intersected minor faulting or cross cutting features that prevented reef evaluation. A geological loss factor of 30% was used in the previous resource evaluation. A total of 7 intercepts (26%) are at a grade of 10g/t 3E plus gold or higher over a 1metre mining cut or better. Thirteen intercepts (48%) are above a grade of 6g/t 3E plus gold and 21 of the intersections (78%) are above a grade of 3g/t 3E plus gold. This distribution is as expected from a deposit of this type.

The Western Bushveld Joint Venture Project covers a total of 67 square kilometres and the initial resource covers approximately 15% of the mineral rights area. Hole WBJV-09-D1 is located 3.1 kilometres northwest along strike from the known resource and intersected 3.25 g/t 2E +Au over 0.44 metres at 265 metres below surface on the Merensky Reef. This hole combined with holes WBJV-20, WBJV-25 with near surface reefs and assays pending, and FG-34-D7 with 13.5 g/t 3E+Au over 1.07 meters, 2 kilometres from the resource area, all confirm the considerable expansion potential.

An updated resource calculation over a larger area than previously considered is underway.

Holes WBJV 3,4,5,7 and 11 intersected small scale faults with 2 to 5 metre offsets or small dykes that prevented the reef layer from being intersected and evaluated. The size of fault offsets or disruptions are clearly visible from the marker layers above and below the Merensky Reef and/or the position of the UG2 Reef that was intersected. The Merensky Reef is the focus of PTM's current exploration and development plans although the well developed UG2 intercepts, within 200 metres of surface, drilled in the last few days, with assays pending may provide a rationale to look more closely at the UG2 as well.

A table of the significant reef intercepts to date on the Western Bushveld is shown attached. See website for plan (www.platinumgroupmetals.net).

Qualified Person and Quality Control and Assurance

Mr. Willie Visser is acting as the Qualified Person, "QP" for Platinum Group Metals (RSA) (Pty) Ltd., "PTM RSA" a wholly owned subsidiary of PTM, for this release. He is registered with the SACNASP (South African Council for Natural Scientific Professions) (Registration No. 400279/04). Mr. Visser is the Exploration Manager for PTM RSA with 15 years experience as a geologist, including senior Resource Manager experience. Information on regional deposits has been acquired from public information and is believed to be reliable. Samples were analyzed for Au (ppb), Pt (ppb) and Pd (ppb) Rh (ppb) by standard fire assay with an ICP finish (Inductively Coupled Plasma). The samples were assayed at Genalysis Laboratories Services Pty Ltd in Perth Australia, ALS Chemex in Johannesburg and Set-Point Labs in Johannesburg. PTM employs a rigorous quality control program which includes insertion of blanks, duplicates and certified reference materials in the assay stream once in every 15 or fewer samples. This is in addition to internal quality control measures undertaken by the contracted analytical facilities.

About PTM

PTM is based in Vancouver, Canada and Johannesburg, South Africa. The Company is listed on the TSX in Toronto and is focussed on driving platinum resources to development. The focus of the Company is platinum in South Africa particularly the Western Bushveld Joint Venture with Anglo Platinum with 4.74 Million ounces of platinum, palladium rhodium and gold in resources. PTM is the operator of the Western Bushveld Joint Venture with partners Anglo Platinum and Africa Wide mining. The Company also holds a 70% option interest in the War Springs platinum project in the North Limb of the Bushveld Complex of South Africa and interest in a large mineral rights position in the only platinum-palladium mine area in Canada.

On behalf of the Board of Platinum Group Metals Ltd.

R. Michael Jones, President and Director

SEC Form 20F, File No. 0-30306

To view drill results table attached please click on the following link: http://www2.ccnmatthews.com/database/fax/2000/0628ptma.pdf

Note to U.S. Investors: Investors are urged to consider closely the disclosure in our Form 20F, File No. 0-30306, available at our office: Suite 328-550 Burrard Street, Vancouver BC, Canada, V6C 2B5 or from the SEC: 1(800) SEC-0330.

The TSX has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.

Contact Information

  • Platinum Group Metals Ltd.
    R. Michael Jones
    President
    (604) 899-5450 or Toll Free: 1-866-899-5450
    or
    Platinum Group Metals Ltd.
    John Foulkes
    Manager Corporate Development
    (604) 899-5450 or Toll Free: 1-866-899-5450
    (604) 484-4710 (FAX)
    info@platinumgroupmetals.net
    www.platinumgroupmetals.net
    or
    Roth Investor Relations, NJ
    Larry Roth
    (732) 792-2200