Eastern Platinum Limited

Eastern Platinum Limited

December 19, 2011 08:30 ET

Update on Eastplats Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2011) - Eastern Platinum Limited (TSX:ELR)(AIM:ELR)(JSE:EPS) ("Eastplats" or the "Company") reports on mining and development progress on its various Platinum Group Metals ("PGM") projects in South Africa.

Western Limb

Crocodile River Mine ("CRM") - Zandfontein Section

Mine development projects are on track with the new infrastructure for underground ore and waste handling systems on 3 and 4 Level having been successfully installed, and the ongoing development of the conveyor decline required to develop the mine to 9 Level on schedule.

CRM - Maroelabult Section

Decline development and conveyor installations at the Maroelabult section are proceeding as planned, and the mine life of this section of CRM has been extended by two years to 2016.

CRM - Crocette Section

Underground development has intersected the UG2 reef and a bulk sample is being mined. However, with the current demand risk and ongoing forecasted margin deterioration, the Company has elected to put the development of the Crocette mine on hold until there is a significant increase in the ZAR basket price that would mitigate the effects of existing cost inflation. All development activities at Crocette will cease in Q1 2012.

Production in 2012 from CRM is estimated at approximately 125,000 PGM ounces.

Eastern Limb

Earthworks have been completed and pouring of foundations for plant construction has commenced on the Kennedy's Vale mill complex near Steelport. The project is tracking on schedule and budget. The Kennedy's Vale mill is scheduled to be commissioned with ore from the Mareesburg open pit mine in Q4 2012, with full production to commence in Q1 2013. At full production, the Mareesburg mine is expected to produce approximately 100,000 PGM ounces per annum.

"We anticipate a 100% increase in annual production over 2011 production by the end of 2013. The revised development schedule for our projects takes into account the current and forecast market that we operate in to mitigate the financial risks that prevail in the sector. We have a rational, low risk and low cost approach to group expansion," stated Ian Rozier, President and CEO of Eastplats.

The qualified person having reviewed the operating results presented in this press release is Mr. Brian Montpellier, P. Eng, V.P. Project Development.

Total shares issued and outstanding: 908,187,807

Cautionary Statement on Forward-Looking Information

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 therefore, readers are cautioned that forward-looking statements are not a guarantee of future performance. There can be no assurance that such statements will prove to be accurate and 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, changes in government legislation, controls, regulations and political developments.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • Eastern Platinum Limited
    Investor Relations
    +1-(604)-685-6493 (FAX)

    Rob Collins/Bhavesh Patel
    Canaccord Genuity Limited, London
    +44 20 7050 6500

    Johan Fourie
    PSG Capital (Pty) Limited
    +27 21 887 9602