Platinum is used in catalytic converters, laboratory equipment, electrical contacts and electrodes, platinum resistance thermometers, dentistry equipment, and jewelry. Because only a few hundred tonnes are produced annually, it is a scarce material, and is highly valuable and is a major precious metal commodity.

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It was announced in October 2014 ago by the London Platinum and Palladium Fixing Company Limited (LPPFCL) that the responsibility for administering a new electronic Fixing process for the two metals has been awarded to the now Hong Kong-owned London Metal Exchange (LME). 
The LPPFCL had previously announced the setting up of a Request for Proposal (RFP) following a review of its Fixing process at the end of July. This was with the aim of appointing a third party to assume responsibility for the administration of the Fixing in place of the LPPFCL. The recent announcement was that the LME had been selected and has committed to become the new administrator of the Fixing process. 
The LPPFCL is now finalising arrangements for the transfer of the administration of the Fixing to the LME with effect from 1 December 2014 while the LME has in the meantime developed a bespoke platform (LMEbullion) that will provide for the necessary electronic pricing solution. 
The LPPFCL had been administering the pricing system for the metals for the past 25 years utilising a closed telephone call system but had decided, in the light of doubts being cast on the integrity of the various precious metals fixing processes, to seek a new electronic answer to pricing the metals. 
 Historical platinum price forecasts

Links to platinum supply and demand

RankCountryWorld Production (PGM), By Country (Kilograms)
1Russian Federation83,20083200
2South Africa75,11875118
3United States12,70012700
Year of Estimate: 2009
 Global mine platinum production wss expected to reach 7,3 million ounces in 2007 from seven million ounces in 2006, led again by South Africa, which drove the six percent increase in output in 2006. Johnson Matthey's review in May 2007 of the platinum and palladium markets concludes that platinum should during 2007 continue its ten year record of continuous growth, with the auto industry continuing to consume increasing amounts of platinum in emission control catalyst. Demand is likely to be increased further by increasing Asian automotive production.

Johnson Matthey estimates 2006 supplies at 6,79 million oz, up from 6,64 million oz in 2005, with the increase accounted for by rising mine supplies from South Africa, notably from the two new mines Everest and Two Rivers (Aquarius and Impala), while Anglo Platinum contributed an additional 180,000 oz.

Russian and North American supplies were both slightly reduced. If scrapped autocatalysts are added into the supply side, then supplies increased from 7,41 million oz to 7,64 milling oz. Demand grew from 7,47 million oz to 7,63 million oz, a rise of 2.1 % and giving a very small surplus of 10,000 ounces.

An estimated 2.5 million oz of platinum from junior projects in South Africa could come on to the market in five years, combined with two million more oz from expansions by the major companies, Investec platinum analyst Leon Esterhuizen said in July, 2007. According to Investec’s Junior Platinum Project Review, the current platinum supply of eight million oz/year could grow by 50% over the next five years. It is unlikely that demand will keep pace with this size of increase.

Processing problems, strikes and closures related to safety issues knocked South African platinum production which is expected to be 7% below forecasts in 2007, said Johnson Matthey in November, 2007. The market would change course in 2007 and see a deficit of 265 000 ounces. It had a surplus of 65 000 ounces in 2006 after seven successive years of deficits.

The outcome was that platinum shipments from South Africa were, at an estimated 5,2 million oz, likely to be 70,000 oz lower year-on-year. Global platinum supplies were expected to fall 2% to 6,66 million oz.

The Zurich Cantonal Bank (ZKB) announced in April 2007 that it is launching ETF's backed by physical supplies of platinum, palladium and silver. The ETF's will begin trading on the Swiss Exchange from 10 May 2007. ZKB envisages an ETF accounting for 70,000 oz of platinum and 200,000 oz of palladium in the first year and has already bought, paid for and stored that metal. Three days later, London-based ETF Securities announced that it would be opening a similar fund on the London Stock Exchange on 24 April 2007.

Charlize Theron wearing platinum earrings
Source: Platinum Today

Note on the geology of the Bushveld Complex, South Africa

The Bushveld Complex is the world's largest source of platinum group metals (PGMs). (In 2006 South Africa supplied 77,5% of global supply - 5,4 million oz of the total 7 million oz of supply and 7,02 million oz of demand.) It is an igneous intrusion measuring approximately 450 km east to west and 300 km north to south, with a thickness of between 7 and 9 km. The complex comprises a variety of diverse igneous rocks which range in composition from ultramafic to felsic, with the lateral persistence and regularity of its layers an outstanding characteristic. The Rustenburg Layered Suite, in which both the Merensky Reef and the UG2 Chromitite Layer are found, comprises a well-layered ultramafic to mafic succession. These two horizons are exploited for PGMs and base metals. The PGMs - platinum, palladium, rhodium, ruthenium, osmium and iridium - are recovered along with small amounts of gold, and quantities of associated nickel, copper and cobalt. The Bushveld Igneous Complex is also host to the largest resources of chromium and vanadium in the world.

In 1924 Hans Merensky followed up the discovery of alluvial platinum by A F Lombard on his farm in Lydenburg and discovered its source in the Bushveld Igneous Complex.

Outcrop of the Merensky Reef, Eastern Bushveld Igneous Complex, South Africa

Detail of platinum ore from the Merensky Reef, Rustenburg, South Africa.

Click HERE for an image showing the locations and descriptions of the Bushveld Complex mines.

Note on the geology of the Great Dyke in Zimbabwe

Source: Implats

The Great Dyke in Zimbabwe is a layered complex that extends for 550 km and has a maximum width of 11 km. The stratigraphy is broadly divided between a lower ultramafic and an overlying mafic sequence. The ultramafic sequence hosts the P1 pyroxenite, directly below the mafic-ultramafic contact, which, in turn, hosts the economic PGM-bearing main sulphide zone (MSZ). The MSZ is generally 2 m to 3 m thick.

Zimbabwe platinum poised for a lift-off



Links to companies mining platinum

Click here for updated mining and exploration information on Platinum in South Africa
Anglo Platinum Ltd mines in South Africa and produced 2,453,200 oz in 2005 from
  • Rustenburg Platinum Mines (RPM)
  • Rustenburg Section
  • Amandelbult Section
  • Union Section
  • Northam Platinum Mine (22,5%)
  • Potgietersrust Platinums (PPRust)
  • Lebowa Platinum Mines (LEPLATS)
  • Bafokeng-Rasimone Platinum Mine (BRPM)
  • Modikwa Platinum Mine (50%, African Rainbow Minerals Ltd - 50%))
  • Kroondal Pooling and Sharing Agreement ( PSA)
  • Total reserves, measured and indicated: 290,600,000 oz
Anglo Platinum said in September, 2007, it would sell assets and shares worth R10.9bn to black-owned companies and employees in an effort to meet South Africa’s mining legislation.

The company unveiled three transactions the first of which is to sell 51% of its Lebowa mine in the northern Bushveld to Canadian and Johannesburg-listed Anooraq Resources, as well as 1% in the Ga-Phasha resource – effectively control – in a deal worth R3.6bn.

In the second leg of its empowerment effort, Anglo Platinum will sell a 50% stake in Booysendal, another untapped platinum resource, and its 22.4% stake in Northam Platinum to Johannesburg listed Mvelaphanda Resources. This transaction is estimated to be worth R4bn.

Thirdly, Anglo Platinum announced plans to distribute up to 1.5% of its issued share capital, worth R3.3bn at current market values, to employees in an ESOP.

Anglo Platinum reported a six percent drop in platinum production to 2.47 million oz for 2007 and a 12% reduction in refined platinum to 2.47 million oz. The company is forecasting a decline in production for 2008 to 2.4 million oz because of the power crisis. Anglo Platinum is also unable to give a production forecast for 2009 and 2010 and advised the market to discard the previously used metric of using 5% growth a year.

Impala Platinum Holdings Ltd (JSE:IMP) mines in South Africa and Zimbabwe
  • and produced 1,815,000 oz in 2005 from
  • Impala Platinum mine
  • Marula Platinum mine ( 87,5%, Tubatse Platinum and the Marula Community Trust-15%, Mmakau Mining -7,5%)
  • Mimosa mine (50%) (Zimbabwe)
  • Zimplats (86%) (Zimbabwe)
  • Total reserves, as all categories of mineral resources: 215,100,000 oz
  • The company has plans to boost production to 2,3 million oz by 2010 and by another 500 000 oz per year of platinum beyond that.
  • In February, 2007, Impala made a cash takeover bid of 297m pounds (R4.2bn) for African Platinum, the AIM-traded company. Afplats has resources of 92 million oz on the southern portion of the Western Limb of the Bushveld Igneous Complex. It was involved in developing a R2,3bn, 1,35km deep mine at Leeuwkop to produce 300,000 oz of platinum group metals in concentrate for treatment at Impala’s facilities starting in just over four year’s time.
Lonmin plc mines in South Africa and produced 916,420 oz in 2005 from
  • Western Platinum Mine
  • Eastern Platinum Mine
  • Karee Mine
  • Lonmin Platinum Limpopo (formerly Messina) Mine
  • Total reserves, as 3PGE+Au: 143,340,000 oz
MMC Norilsk Nickel mines in Russia and produced 3,133,000 oz of palladium and 751,000 oz of platinum in 2005 as by-products of copper-nickel production from
  • Five underground mines;
  • Oktyabrskiy Mine
  • Komsomolskiy Mine
  • Taymirskiy Mine
  • Severonkel Mine (Kola Peninsula)
  • Perchenganikel Mine (Kola Peninsula)
  • Reserves are reportedly sufficient to support 50 years' output at current rates.
  • Norilsk is the largest mining and metals company in Russia and is one of the world's largest producers of nickel, palladium, platinum and copper. It had a market capitalization of $36-billion (U.S.) in 2007 and claimed it was the sixth-largest publicly traded mining company in the world, as measured by market capitalization.
Northam Platinum Ltd (JSE:NHM) mines in South Africa and produced 325,214 oz in 2005 from
  • Northam Platinum Mine
  • Reserves, as all categories, 3PGE+Au: 30,115,000 oz
  • The platinum transaction between Northam, Mvela Resources and Anglo Platinum said to have transformed Mvela into the fourth large platinum producer in South Africa, has been found wanting as Northam has found the Booysendal 4PGE resource lower than estimated.
    The parties announced in January, 2008, that Northam - more than 60% owned by Mvela after the transaction - will now pay Mvela 4m new shares less for a larger property as its independent due diligence study has found 94 million oz of 4PGE (platinum, palladium, rhodium and gold) on the Booysendal property instead of 112 million oz of 4PGE originally sold to it.
International Nickel Company (CVRD) (NYSE:RIO; TSX:N) mines in Canada and produced 419,000 oz in 2005 as by-product of copper and nickel production
Falconbridge Ltd (Xstrata) [LSE:XTA] mines in Canada

Stillwater Mining Company mines in the USA and produced 554,000 oz in 2005 and anticipated a 5% increase in production in 2007, ranging from 615,000 to 645,000 oz platinum group metals (PGM) at a cash cost ranging from $295/oz to $315/oz, from
  • Stillwater Mine
  • East Boulder Mine
  • Reserves, proven and probable, of platinum and palladium: 24,100,000 oz
Aquarius Platinum Ltd (AIM:AQP) mines in South Africa and Zimbabwe and produced 327,669 oz in 2005 from
  • Kroondal Mine
  • Marikana Mine
  • Mimosa Mine (50%) (Zimbabwe)
  • Chromite Tailings Retreatment Plant
  • Everest Mine being established, planned production 225,000 oz per annum
  • Total reserves, proved and probable, 3PGE+Au: 9,410,000 oz
African Rainbow Minerals Ltd (JSE:ARM) mines in South Africa and produced 105,482 oz in 2005 from
  • Modikwa Platinum mine (50%)
  • Nkomati Nickel mine (50%)
  • Two Rivers Platinum project (55%) to produce 220,000 oz per year
  • Kalplats PGM Exploration Project
  • Reserves, Modikwa, 3PGE+Au: 2,460,000 oz (UG2)
  • Reserves, Two Rivers, 5PGE+Au: 5,230,000 oz (UG2)
  • Inferred resource, Kalplats, 3PGE+Au: 2,820,000 oz
Barplats Investments Ltd (Eastplats 74%) mines in South Africa and produced 74,943 oz in concentrate in 2006 from
  • Crocodile River mine
  • Total resources, all categories, 89,700,000 t at a grade of 4,40 g/t 3PGE+Au or 12,680,000 oz.
  • Kennedy's Vale Project:
  • Indicated UG2 reserve of 152,100,000 t at a grade of 5,41 g/t 5PGE+Au or 26,475,000 oz PGM (11,813,000 oz platinum)
  • Indicated Merensky Reef reserve of 96,500,000 t at a grade of 3,88/t 5PGE+Au or 12,038,000 oz PGM (10,500,000 oz platinum)
Eland Platinum Holdings Ltd started mining in South Africa
  • Elandsfontein Platinum Mine. The opencast operation will deliver 160,000 oz of the four platinum group elements, while the underground operations will boost output to 270,000 oz of the four elements. Eland had a stockpile of 60,000 tonnes of ore in March, 2007, which was in line with the schedule for the project just over half way to completion. On 21 December 2006 the mine was awarded a mining right covering both the original Elandsfontein prospecting area, acquired from Rustenburg Platinum Mines Limited, and the contiguous `triangle' land owned by the state. In January 2007, the group announced the following SAMREC-compliant UG2 mineral reserve estimate for Elandsfontein Platinum Mine: 42,029 million tonnes at 3,41 g/t 4E or 4,617 million oz of contained metal (4E). It was announced in January 2007 that the DME had consented to the transfer to Eland Platinum of prospecting rights over the Zilkaatsnek properties, which add approximately 1,5 km of UG2 outcrop to the mine's resource base. Work has begun to determine the nature and extent of theUG2 deposit on the Zilkaatsnek properties.
  • Total UG2 resource, all categories, 165,400,000 t at a grade of 4,05 g/t 4PGE+AU or 21,580,000 oz.
Eland Platinum Holdings is to sell shares raising R350m, to a Bahrain-registered investment house, Al Rajhi Holdings, taking its overall stake in Eland Platinum to some eight million shares, equal to 11.2% of the listed company.
Diversified miner Xstrata said in August, 2007, that it had made a friendly offer to buy Eland for R7,5-billion (about $1-billion) in cash, or R105 a share

North American Palladium Ltd (acquired by Norilsk) [AMEX:PAL; TSX:PDL] mines in Canada and produced 177 000 oz of palladium in 2005 from
  • Lac des Iles mine
  • Inferred reserves of palladium 2,455,000 oz
Zimbabwe Platinum Mines Ltd (Impala) [ASX:ZIM] mines in Zimbabwe and produced 86,800 oz in 2005
  • Reserves, proved and probable, of 14,100,000 oz platinum
  • Resource of 140,800,000 oz platinum at a grade of 3.52 g/t.
  • Zimbabwe Platinum Mines commissioned a new underground mine at Ngezi under phase one of its ambitious US$258 million long-term expansion programme at the end of April 2007. The underground mine, named Bimha Mine, is expected to increase ore production to 4,5 million tonnes per year and boost platinum output to about 160 000 ounces annually when it comes into full production in 2009.
    In addition, Zimplats will produce 130 000 ounces of palladium, as well as significant quantities of gold, nickel and copper.

Links to other companies exploring for platinum

Platinum projects (Source: Miningmx)

African Platinum plc ([AIM:APP, being acquired by Implats for R3,7 bn) in South Africa, Botswana, Zimbabwe and Mozambique
  • The Greater Leeuwkop property in the Bushveld Complex has a resource of 92 million oz of four PGMs.
AfriOre Ltd (TSX:AFO; AIM:AFO, acquired by Lonmin for R3,2 bn) in South Africa
  • The Akanani project in the Bushveld Complex has a resource of 33,7 million oz of three PGMs.
AIM Resources in South Africa
  • The Mokopane Project is located within the Platreef zone on the northern limb of the Bushveld Complex. The company has prospecting rights covering an area of 960 hectares and first right of refusal over a further 3,000 hectares. The project area includes five known mineralized areas: Southwest, West, Northwest, Northeast and Far North. In the Southwest area, the mineralised Platreef is approximately 800 metres long and up to 250 metres wide in outcrop, and dips at 25 to 50 degrees towards the southwest. Approximately 15,330 metres of drilling was undertaken by previous explorers from 1989 to 1992, mostly on the Southwest Deposit. The Southwest Deposit has a JORC-compliant Inferred Resource (at a zero cut off grade) estimated to be 39,7 million tonnes at 0,146% nickel, 0,085% copper, 0,22 g/t platinum and 0,33 g/t palladium.

Alba Mineral Resources plc in Scotland, Sweden

Albidon Ltd in Zambia, Malawi and Tanzania

Ambrian Capital plc in Sierra Leone, Ethiopia and Madagascar
  • Golden Prospect (Ambrian) produced 5 kgs of platinum in 2006 from the Yobodo mining field some 500 km south-west of Addis Ababa, Wollega, Oromia State. Platinum has been mined in Yubdo since the early 1930s.
Anooraq Resources Corporation (TSXv:ARQ; AMEX:ANO) in South Africa

  • Barrick Gold Corporation is exploring the Sedibelo platinum project, a large deposit on the eastern limb of the Bushveld Igneous Complex, South Africa. Currently in the pre-feasibility study stage, the deposit contains platinum measured and indicated mineral resources of 3,8 million ounces and inferred resources of 5,3 million ounces, and palladium measured and indicated mineral resources of 1,7 million and inferred resources of 2,5 million ounces (100% basis). Sedibelo’s average platinum to palladium ratio is 2:1. Overall, the average metal breakdown is 60 per cent platinum, 30 per cent palladium, 8.5 per cent rhodium and 1.5 per cent gold. Barrick has a right to earn a 50 percent interest in Sedibelo by funding exploration and completing a feasibility study on the project and then jointly making a construction decision. Its joint venture partner is the Bakgatla Ba-Kgafela tribal community in South Africa. The company drilled 56,000 meters on the property in 2006 and plans to complete the pre-feasibility study by late 2007, at which point work on the feasibility study would begin.
Beartooth Platinum Corporation in the USA and South Africa
  • Beartooth has an option agreement to acquire a 70% interest in the Doornfontein property. Lenaka Mining (Pty) Ltd, a private South African company, holds the Platinum Group Metals (PGM) mineral exploration rights to the Doornfontein property, a land package totaling approximately 7,500 hectares, located approximately 10 kilometers west of Lonmin's Limpopo mine property in Limpopo Province of South Africa. Under the terms of the deal, in order to earn its interest in the property, Beartooth will pay 100% of the exploration costs incurred on the property until a bankable feasibility study is completed. After that point in time, Lenaka Mining (Pty) Ltd. will pay 30% and Beartooth 70% of all costs to production. The Doornfontein magnetic anomaly was noticed during the acquisition of regional geophysical data in support of Beartooth's 2006 exploration efforts on the Zebediela project, which lies to the east. As with Zebediela, the target at Doornfontein is Bushveld Critical Zone rocks beneath Karoo cover.

  • The Rooipoort PGE/Au/Ni/Cu Prospect was aquired by Eersteling Gold Mines from Rustenburg Platinum, owned by Anglo Platinum Limited. The property is located approximately 30 km southwest of the Eersteling Gold Mine property and is located in an area that saw a surge in platinum group metal exploration along the "Platreef". In 2004, Caledonia purchased and acquired prospecting rights over an additional 342 hectares on the farm Grasvally, immediately adjacent to and south of the Rooipoort property. To date Caledonia has drilled a total of 18,450 meters in 54 holes on the Rooipoort PGE/Au/Ni/Cu Exploration Project. This drilling covers the full 6 km strike length that makes up the project area. Estimated inferred resource is 18,128 million tonnes at a grade of 1,1-1,34 2PGE+Au.

Central African Mining and Exploration Company plc (CAMEC) in South Africa. The company has acquired 44.5% of Pfula Investments Limited (“Pfula”). Pfula owns the rights to 51% and 40% respectively of the Inkosi and Imbasa Platinum Group Element (“PGE”) projects, located on the western limb of the Bushveld Complex in South Africa and is the Black Economic Empowerment Partner of African Platinum plc (“Afplats”) in these projects. The combined inferred resource estimate for the two projects, recently published by Afplats, was 38,8 million oz 4E, i.e. platinum, palladium, rhodium and gold. Pfula has agreed in principle with Afplats to consolidate the Inkosi and Imbasa properties into a new entity. Pfula, as Afplats’ Black Empowerment Partner for the project area, will control a 47% stake post consolidation with Afplats retaining a 53% stake. CAMEC will therefore have a 20.9% interest in the project, representing 8,1 million oz 4E. It is the intention of CAMEC to discuss with Afplats a strategy to ensure the project is advanced in the most efficient and expeditious manner.Drilling and assaying of 14 new exploration boreholes was completed on the Imbasa and Inkosi properties in May 2006. An inferred resource of 181 million tonnes at a grade of 4,6g/t 4E - equivalent to 26,9 million oz 4E - was calculated for the UG2 Reef on the Imbasa and Inkosi areas. An additional inferred resource of 176 million tonnes at a grade of 2,1g/t 4E (11,9 million oz 4E) is contained in the Merensky Reef. This PGE resource lies along strike from Afplats’ flagship Leeuwkop project, which has a measured, indicated and inferred resource of 5 million oz 4E, 8,7 million oz 4E and 39,4 million oz 4E respectively.

Eastern Platinum Ltd in South Africa and Canada

  • Eastern Platinum (Eastplats) controls the Crocodile River, Spitzkop, Kennedy's Vale and Mareesburg projects in South Africa's Bushveld Complex. In December, 2007, it released revised reserve and resource estimates for its South African properties, totaling more than 100-million ounces of platinum-group metals (PGMs). PGMs ounces attributable to Eastplats amounted to 86-million ounces.
Enterayon, Inc in Canada

  • Urals. Joint venture with Anglo Platinum. Test-pitting and trial bulk processing of alluvial terrace material has commenced on the Tylai River area, where initial indications are very positive. Reconnaissance work to the north of the current licence area has also been encouraging, with target generation indicating potential of further unexploited alluvial deposits.
  • Kola Peninsula. Joint venture with Anglo Platinum. Drilling in one of the three licence areas, West Imandra, in progress.
  • Eurasia Mining said drilling at a license area in northwestern Russia had uncovered a new platinum-group metals deposit. The find was at Volchetundra, where the first $10 million of exploration is funded by Anglo Platinum, London-based Eurasia said on 26 March 2007. The drilling uncovered "several zones of platinum mineralization," with grades of between 1,9 and 11 grams per ton of platinum and palladium, the firm said.

First Nickel Inc in Canada

Goldfields of South Africa Ltd in Finland (Ceded rights)

Goldstream Mining in Tanzania
  • Great Australian Resources announced on 5 October, 2007, the consolidation of its strategic platinum projects in South Africa after reaching agreement to buy the outstanding 50 per cent shareholding in Platinum Mining Ventures Ltd. The move to 100 per cent will give Great Australian full ownership of the Mooiplats project and two additional grassroots exploration projects.

In a friendly takeover bid announced on 28 October 2007, Xstrata offered to purchase all of the shares of Jubilee for $23 per share. The offer is due to close on February 15, 2008.
  • Tjate Project (48%) which comprises a total 5 143 hectares with an inferred resource of 282 million tonnes containing 65 million oz 5 PGE (platinum group elements: platinum, palladium, rhodium, iridium and ruthenium) and gold. Mitsubishi Corporation loan of US$16 million entitles them to a 20% stake. Jubilee plans to raise its stake in Tjate to 63%, subject to regulatory approval. The Tjate project consists of three licenses on properties contiguous both to Anglo Platinum’s [JSE:AMS] Twickenham and Impala Platinum’s [JSE:IMP] Marula mines, which holds out the possibility of joint ventures or consolidation with one of those companies in the future.
  • Grass Valley Project (70%, MSA Projects (Pty) Ltd-30%) which comprises 663 hectares with five kilometres of potential Platreef identified in outcrop located between the War Springs, Rooipoort and Volspruit deposits. Inferred resource of 93 million tonnes containing 3,6 million oz.
  • Dullstroom Platinum Project which comprises 2 500 hectares south of Anglo Platinum's Der Brochen Project and on projected Merensky and UG2 overlain by Transvaal Supergroup rocks.
  • Applied for prospecting rights over Bokfontein JQ448 and Elandsdrift JQ467 PGM properties in the western Bushveld, Buffelsvallei JS170/Zaaiplaats JS157 in the Groblersdal district, Sallies SlootKS718/Swartkop KS720 near Marble Hall.
  • Ambodilafa Project (49%- Implats 51%). Jubilee’s 4 kilometres wide by 20 kilometres long Ambodilafa concession is part of an area underlain by mafic-ultramafic rocks. The property is located some 160 kilometres southeast of the Madagascan capital, Antananarivo. Previous regional reconnaissance drilling by others in the area, in 1969, included an intersection of 93 metres of disseminated sulphides, containing pyrrhotite, pentlandite and chalcopyrite. The intersection included a 1,5 metre intercept assaying 2,2% nickel and 0,35% copper. The drill cores were not analysed for their PGE content, but later stream sediment sampling in 1990 defined several drainage catchments in the vicinity of the area drilled, which showed anomalous platinum and palladium values.
  • Londokomanana Project. Located 150 kilometres north of Antananarivo with an inferred 22-kilometre total strike length of nickel-copper mineralization over north (Antsahabe) and south (Lavatrafo) Londokomanana. Peak trench values have been obtained in Lavatrafo of up to 4,62 g/t 2PGE (platinum and palladium) plus gold, 1,2% nickel and 0,39% copper. The Company has drilled two boreholes, LAV1 and LAV2 in the Lavatrafo property (south Londokomanana) on targets identified by geophysics and geochemistry. The two boreholes, some 150 metres apart on strike, intersected a very thick -58 metre and 75 metre true widths - multi-metal nickel-copper-platinum-palladium-gold formation at relatively shallow - 27 and 73 metres depth.
  • Lanjanina Concession located in the south-central part of Madagascar approximately 180 kilometres ( 258 road km.) south of Antananarivo and covers an area of 156 km2 (15,600 hectares). Previous exploration identified copper, nickel and platinum group elements in geochemical soil samples and one drill hole located copper and nickel mineralization within pyroxenites and to a lesser extent gabbros and amphibolites
  • York PGM Project in Sierra Leone. Joint venture (50%) with AIM listed Golden Prospect plc which covers the central section of the Freetown Layered Gabbro Complex, an area with a history of artisanal platinum production. A reconnaissance programme in early 2004 extended the known mineralization (soil samples assaying previously up to 0,84 g/t) of an anomalous 2 m-wide PGM zone to 8,5 km strike length from 5 km, with similar elevated PGMs in soil samples. A second-phase programme of trenching was completed in 2005.

Lesego Platinum on January 25, 2008, announced an inferred resource estimate of 27-million ounces at its Phoshiri project, on the eastern limb of the Bushveld Complex. Lesego is a 50:50 joint venture between MinEx Projects (37%), and Umbono Platinum and Financial Services (63%), and holds a 100% interest in the Phoshiri project.

Magma Metals Ltd in Australia and Canada

Magma Metals announced in January 2008, the discovery of a PGM zone at its Thunder Bay North project in Canada. The company has had intersections of up to 4.6 metres at 5.01 grams per tonne PGMs at the site, together with the nickel and copper mineralization. Magma Metals stated that the find could mean a new prospective trend that could be 800 metres long and may be linked to the mineralized peridotite bodies at Current Lake and Beaver Lake.
Mvela Resources currently owns 22.4% of Northam, a platinum group metals (PGMs) mining company listed on the Securities Exchange South Africa (JSE). It currently produces about 325,000 oz per annum platinum, palladium, rhodium and gold (3PGM+Au) from a single operating mine situated on the western limb of the Bushveld Complex. Afripalm Resources, headed by the former CEO Lazarus Zim of Anglo American's South African unit, bought a 31% stake in Mvela Resources for R1, 15 bn in December 2006.
Other projects include,
  • The Booysendal Joint Venture (50%, Anglo Platinum-50%). Booysendal embraces 138 km2 on 10 contiguous farms at the southern end of the eastern limb of the Bushveld Igneous Complex. Booysendal is underlain by the Merensky and UG2 horizons and has been thoroughly explored by Anglo Platinum. Measured, indicated and inferred resources – after a 24% allowance for geological losses – total 76,800,000 oz on the UG2 horizon and 47,600,000 oz on the Merensky horizon. The platinum transaction between Northam, Mvela Resources and Anglo Platinum said to have transformed Mvela into the fourth large platinum producer in South Africa, has been found wanting as Northam has found the Booysendal 4PGE resource lower than estimated.
    The parties announced in January, 2008, that Northam - more than 60% owned by Mvela after the transaction - will now pay Mvela 4m new shares less for a larger property as its independent due diligence study has found 94 million oz of 4PGE (platinum, palladium, rhodium and gold) on the Booysendal property instead of 112 million oz of 4PGE originally sold to it.
  • The Pandora Joint Venture (7,5%, Lonmin holds balance)
  • The Dwaalkop Joint Venture (50%, Lonmin-50%) Adjoins Lonmin's Limpopo Mine.
  • Garatouw project. Nkwe Platinum Limited acquired a 74% interest in the Genorah farms (De Kom and Garatouw) from Genorah Resources (Pty ) Ltd. The Genorah farms are located down dip from both Anglo American’s Modikwa and Implats’ Marula Platinum Mines. SRK Consulting have reported that the expected target mineralization on these properties is 15 million oz 3PGE + Au oz at depths of 0-1000m and an additional 20 million oz 3PGE + Au at depths of 1000m-2000m. Genorah plans to vend another three neighbouring farms on strike into Nkwe. The three farms will boost Nkwe’s in-situ resources at the project up to 150 million oz. Anglo Platinum has taken the Department of Minerals and Energy and Genorah, the black-owned company and owner of the new-order prospecting rights to the farms, to court to prove it has the rights to the property, which Genorah acquired after the change in South African mineral legislation in 2004. The matter is expected to come before the courts in June 2007. Public comments were made subsequently by Anglo Platinum executives that the world’s largest platinum producer wants to resolve their legal claim over a number of platinum deposits through negotiations with the Department of Minerals and Energy (DME) rather than going through the courts.The disputed platinum deposits include the two Eastern Limb farms Nkwe has in its portfolio and the three in the Genorah stable.
  • De Wildt Project. Inferred resource of 4,400,000 oz 5 PGE+Au (grade 3,4 g/t)
  • Pilanesberg Project. Indicated\inferred resource of 4,500,000 oz 3 PGE+Au (grade 3,8 g/t)
  • Kliprivier Project. Inferred resource of 5,300,000 oz 3 PGE+Au (grade 2,3 g/t)
  • Ghost Mountain Project. Initial exploratory drilling of target complete. Assays pending.
  • Doornloop Project. Exploratory drilling of target area currently being undertaken.
  • Nkwe Platinum's partner, Blue Nightingale Trading 709 (Pty) Ltd (30%), has an interest in the Mphahlele Platinum project adjacent to the Lonmin Limpopo operation. This project contains an inferred resource of 11,8 million oz from surface down to a depth of 1,000m.
North American Palladium Ltd in Canada and Finland

13th February 2012: 
Northern Shield signs Option and Strategic Alliance Letter of Intent with Impala Platinum Holdings Limited (23/01/12).

Northern Shield Resources Inc said it has signed a letter of intent with South Africa's Impala Platinum regarding an option on Northern Shield's 100 per cent owned Idefix platinum group element (pge) property in Quebec.

In November, Northern Shield collected 21 grab samples from a gabbro sill during the reconnaissance of the Idefix property.

Nine returned assays greater than one gram per tonne platinum, palladium and gold. Three samples assayed greater than seven grams per tonne Pt+Pd+Au.

"We are very pleased that Impala continues to recognise Northern Shield's expertise and dedication to pge exploration in Canada and the significant results from Idefix," said Northern Shield president and chief executive officer Ian Bliss.

  • River Valley Project in Canada is a joint venture with Anglo Platinum. Approximately nine kilometres of breccia-zone PGE mineralisation with many encouraging intersections defined by drilling. Bulk sampling for metallurgical flotation response test work underway on low-platinum, high palladium content ore. Measured and indicated resources of 30,5 million tonnes containing 953,900 oz of palladium (0,97 g/t), 329,500 oz of platinum (0,34 g/t) and 59,500 oz of gold (0,061 g/t) with an additional 2,3 million tonnes containing 67,000 oz of palladium (0,87g/t), 23, 800 oz of platinum (0,31 g/t) and 4,000 oz of gold (0,05 g/t) of inferred resources using a 0,7 g/t cut off (Pt/Pd) at this stage.
Pan Palladium Ltd in South Africa

Platina Resources Ltd in Australia and Greenland

Platinex Inc in Canada

Platinum Australia Ltd in Australia and South Africa
  • The Kalplats project, located 330km west of Johannesburg, is a joint venture with African Rainbow Minerals in which the company is earning a 49% interest by completing a bankable feasibility study and providing the right for the project to use the patented Panton metallurgical process to treat the ore. Seven known deposits, together with three other prospects, identified over a 12km strike length of the Stella Layered Intrusive are being explored. The project currently has indicated and inferred resources of 3,4 million oz 3E PGM, including a high grade component of 1,4 million oz 3E PGM, contained within the seven separate deposits. As part of the JV the two companies have applied for a prospecting right covering an area extending approximately 20 km to the north and 18 km to the south of the Kalplats project area, increasing the total strike length held over the Stella Layered Intrusion to almost 50 km. The company believes the existing Kalplats resource will support development of an open pit operation producing 200,000 oz per year 3E PGM, and further success from the drilling programme could increase this to 300,000 oz per year.
  • Platinum Australia ("PLA") also has an 80% interest in the Smokey Hills Project, on the eastern limb of the Bushveld Complex, with the balance held as to 5% by the local community and 15% by Corridor Mining Resources, a company owned by the Limpopo Provincial Government. It is planned initially as an open cut operation which will progress into a shallow underground mine. During the initial phase of mining, whilst the processing plant is being constructed, PLA proposes to toll treat the ore through a nearby plant to generate early cash flow. This phase would last 9-12 months, after which ore would be treated through the on-site plant at an annual rate of 720,000t to produce approximately 95,000 oz 4E PGM in a flotation concentrate which would be toll treated or sold to any one of a number of smelters in South Africa. Depending on the timing of the issue of the necessary permits, PLA plans to begin construction and mining operations in mid-2007, with plant commissioning 9-12 months later.
  • Platinum Australia has a two million oz resource in the Kimberley region of Western Australia, where it has partnered Lonmin in developing a process to improve the grade of low-quality concentrate called the Panton Process, which is being piloted in South Africa. A bankable study completed during the lower PGM prices in 2003 is being revised and production should start at the end of 2007. Steady state production will be 40,000 PGM oz a year.
Platinum Group Metals Ltd (PTM) in South Africa and Canada
  • Western Bushveld Joint Venture (WBJV) Joint Venture with Anglo Platinum and Africa Wide Mining and covers 67 square kilometers bringing together PTM's Onderstepoort and Elandsfontein properties along with portions of Anglo Platinum's Elandsfontein, Frischgewaagd and Koedoesfontein properties. Adjoins both Anglo Platinum's Bafokeng Rasimone Platinum Mine and Styldrift Projects. Indicated Resource of 2,57 million oz platinum, palladium, rhodium, and gold (4E): Merensky Reef 5,81 million tonnes at 6,91 g/t 4E, UG2 Reef 14,63 million tonnes at 2,72 g/t 4E. Platinum Group Metals hopes to complete a bankable feasibility study (BFS) on its Western Bushveld joint venture in the third quarter of 2007, following the completion of its prefeasiblity study, which backed the establishment of a 155 000-oz per year platinum mine.
    PTM, which initially planned to complete the bankable feasibility study December 2006, reported that the prefeasiblity study had showed that the deposit could support an underground mine, producing 250 000 oz per year of platinum, palladium, rhodium and gold (4E) in concentrate, over 18 years.
    PTM and its partners in the venture, Anglo Platinum (37%) and Africa Wide (26%), said that they expected to make a final decision on building the mine later in 2007, with first production expected in either 2010 or 2013.
    The BFS would look into building either a vertical shaft system, estimated to cost R2,14-billion, or an early access decline and vertical shaft system combination, at a cost of R2,04-billion. The vertical shaft option would see first production in 2013, while the decline/shaft combination would fast-track production to start in 2010.
    PTM reported that the average life-of-mine cash operating cost to produce and deliver concentrate was estimated at $47/t and $328/4E oz. The scope of the Western Bushveld Joint Venture has been expanded with the formal contribution to the WBJV of a 50% interest in the mineral rights to the adjacent 494 hectare Portion 11 of the Farm Frischgewaagd 96 JQ ("Portion 11") by Rustenburg Platinum Mines Ltd., a subsidiary of Anglo Platinum Limited.
    The other 50% interest in the mineral rights to Portion 11 is held by Wesizwe Platinum Limited (JSE: WEZ). Wesizwe has published an independently prepared estimate of mineral resources and a pre-feasibility study that include reference to Portion 11.
    The WBJV and Wesizwe also share a total estimated 3,0 million oz inferred resource on a 50/50 basis on the 293 ha property known as RE 4 of the Farm Frischgewaagd 96 JQ adjacent to Portion 11 (18,49 million t grading 5,05 g/t 4E, platinum, palladium, rhodium and gold) as announced by the company on February 7, 2007.
  • War Springs Property, Northern Limb (70%). Inferred resource of 980,000 oz of platinum, palladium, and gold (29,6 million tonnes grading 1,03 g/t 2PGE+Au (0,31 g/t Pt, 0,63 g/t Pd, 0,09 g/t Au), 0,13% Nickel, 0.11% Copper)
  • Tweespalk Property, Northern Limb(70%). Initial exploration results at Tweespalk were encouraging with a reef intersection of four metres grading 4,4 g/t 3 PGEs (platinum, palladium, and gold). Further drilling by PTM did not confirm the up-dip continuity of the economic values in this drilling and the results are being evaluated and modelled to determine if further drilling is warranted on Tweespalk.
  • In mid November 2013 Platinum Group Metals reported on two intercepts, respectively 700 and 1,400 metres northeast of its Waterberg palladium-platinum-gold deposit in South Africa. In them it hit 11 metres @ 0.94 g/t platinum, 1.92 g/t palladium and 0.17 g/t gold and 16 metres @ 1.11 g/t platinum, 1.92 g/t palladium and 0.13 g/t gold.

    That pair of drillholes showed there was palladium and platinum promise beyond its 49-percent owned Waterberg deposit, where it and joint-venture partner JOGMEC report 168 mt @ 0.98 g/t platinum, 1.97 g/t palladium and 0.32 g/t gold in inferred resources.

    In December 2013 Platinum Group has reported its broadest and highest grade hit beyond the Waterberg JV property, on 87-percent owned property. The headline result was 53 metres 1.4 g/t platinum, 3.59 g/t palladium and 0.27 g/t gold in an intercept about 300 metres north of the mid-November drilling. It is - grade and breadth wise - clearly an important intercept for Platinum Group in its hunt for additional resources on strike of the Waterberg deposit, a recent discovery (counting back in years, not decades.)

    Meantime, Platinum Group also reported an especially interesting - if less immediately eye-catching - intercept some five kilometres to the north of the Waterberg deposit. It said it hit 3 metres @ 0.78 g/t Pt, 1.67 g/t Pd and 0.14 g/t Au, starting 741 metres downhole within a 51-metre envelope of lower grade mineralization. Platinum Group said the intercept was the most northern example of one of the main zones of mineralization at Waterberg with grades and width (if on the narrow side) in line with the Waterberg deposit model to the south.

    Clearly, now, Platinum Group is interested in seeing if there's more to the mineralized horizon in thickness or grade. It labelled further drilling around the northern intercept a priority.

    In this respect - ongoing exploration - Platinum Group said it had four drill rigs turning on the property targeting Waterberg like mineralization about 16 to 30 kilometres north of the Waterberg deposit. This is prospecting at the drillbit as Platinum Group's targets are under cover. But as its latest extension drillhits demonstrate, especially the one 5 kilometres north of the Waterberg deposit, the ground here is yielding previously unknown mineralization.

    It's not unreasonable to hope for surprises further north, in other words.

    A company spokesperson in Platinum Group's Vancouver office was not available by presstime to take questions about its exploration plans at Waterberg.

    Platinum Group's flagship project is the Western Bushveld JV, also in South Africa, where it is in the midst of building a 275,000 ounce per year platinum, palladium, rhodium and gold project in the Merensky Reef.

Platmin Ltd in South Africa

  • The Plilanesberg project on its Tuschenkomst and Ruighoek properties has the following resources: Tuschenkomst - a measured and indicated mineral resource estimate of 66,8 million tonnes at 2,09 g/t (3PGE+Au) for a total of 4,49 million oz has been defined by SRK at Tuschenkomst. The mineral resource estimate is in the context of bulk mining; Ruighoek -an indicated mineral resource (0-200m below surface) to 12,0 million t at 3,07 g/t (3PGE+Au) for a total of 1,18 million oz. Lonmin increased its stake in this junior platinum stock to 22%, during July, 2007, at C$9.00 a share. Platmin owns the asset base and uncommitted concentrate to graduate to a 500 000 ounce a year fully integrated PGM (platinum group metal) producer by 2012.

Ridge Mining was back in the black, posting profit of $9.2 million (R63.7 million) in the six months to June, 2007, compared with a loss of $1.6 million in the same period the previous year. The turnaround was due mainly to the sale of the mining group's Fountain Ridge project for $9.8 million. Earnings in the half-year were also boosted by the receipts of $2 million to settle a dispute on the Tjarte project.

The company is developing the $143 million Blue Ridge mine in Mpumalanga. The mine is expected to start production in the fourth quarter of next year, while a feasibility study for its Sheba Ridge project is expected to be completed in December 2007.
  • Blue Ridge Project. Eastern limb of Bushveld Complex. Reserves, proved and probable, of 2,8 million oz (at a grade of 2,8 g/t 4E) and an inferred resource of 5,34 million oz 4E. Trial mining commenced in 2005. Entered into an agreement with Imbani Platinum (Pty) Ltd whereby Imbani will earn 78% by arranging finance for the project. After that Zijin Mining of China paid US$15 million for a 20% stake. The mine was originally expected to produce 125,000 oz a year of four platinum group metals, platinum, palladium, rhodium and gold. Iridium and ruthenium were excluded from the calculation but after the sharp increase in the prices of iridium and ruthenium, the inclusion of these metals could increase forecast production to 150,000 oz a year of the six platinum group metals
  • Sheba's Ridge Project (65%). Eastern limb of Bushveld Complex. Joint venture with Anglo Platinum Ltd. A pre-feasibility study at Sheba’s Ridge, showed a resource of 19 million oz of platinum, palladium and rhodium, together with 1,4 million metric tonnes of nickel and 0,5 million metric tonnes of copper (Pt+ Pd+ Au grade is 0,94 g/t). Feasibility study of the project in which it holds a 60% interest and Anglo Platinum holds 40% commenced in 2005 and should be completed by the end of 2007. Sheba’s Ridge is relatively close to Blue Ridge.

  • Fountain Ridge Project. Western limb of Bushveld Complex. Holds 51% of Madibeng Platinum (Pty) Ltd (Mmakau Mining-30%, and others hold balance) which has a prospecting licence over 3 238 hectares underlain by UG2. Drilling commenced in 2005, but to focus on its two core projects, Ridge sold its 51% interest in the Fountain Ridge property to Madibeng Platinum for R70 million ($9.7 million) and its interests in Fonte Verde, Rooikraal and Red Bush Ridge to Bushveld Platinum plc for R20 million ($2.77 million) in 2006.
  • Fonte Verde Project. The mineralization at the Fonte Verde project is contained within a Bushveld Complex satellite body located approximately 50 kilometres south-east of Pretoria.
  • Red Bush Ridge Project.The Red Bush Ridge, covering 4 462 hectares, comprises the farms Het Fort 329Kt, Corndale 330KT and Landsend 364 KT. The project is down-dip of the Kennedy's Vale project on the Eastern Limb of the Bushveld Complex.
Rusina Mining N. L in Australia and Philippines
  • Joint venture with Anglo Platinum Ltd in Pedra Branca. Previous work conducted by Solitario, and the more recent exploration funded by Anglo Platinum, has advanced ten significant PGM targets at the Pedra Branca site to the drill definition stage. The Esbarro prospect is the most advanced with 85 drill holes defining a shallow mineralised zone nearly 800 metres long and up to 200 metres wide. Drill-hole intersections within this zone often exceed 2,5 grams per ton PGM. Upon completion of a staged US$7,0 million work commitment, Anglo Platinum will have the right to earn an additional 9% interest (to 60% total interest) by completing a bankable feasibility study within 18 months of earning its 51% interest. Anglo Platinum can earn a further 5% interest (to 65% total interest) by arranging 100% of the project financing necessary to place the project into commercial production.

  • Specialises in extracting platinum group metals and chrome from tailings dumps in South Africa, most of which are owned by Samancor and has a 25% stake in the Chrome Tailings Retreatment Project, in which Aquarius Platinum
  • has a 50% holding. Platinum production started in June, 2007, from its 74% owned projects, with 690 oz a month. It will build up to almost 6,700 oz/month in 18 months when all four planned platinum recovery plants are in operation. Cash costs are predicted to be roughly half those of the platinum miners.Sylvania is also drilling its portion of the Everest North project. Eastern Platinum owns two thirds of the deposit and Sylvania the other third.The resource estimate is 833,000 oz of platinum group metals in the UG2 reef. Platinum makes up 54%, palladium 34% and rhodium 11% of the metals.

Wallbridge Mining Company Ltd in Canada and the USA

Wesizwe Platinum Ltd in South Africa
  • Wesizwe's portfolio of exploration assets are primarily located on the western limb of the Bushveld Igneous Complex comprising Ledig 909JQ, and portions of the farms Frischgewaagd 96JQ, , Mimosa 81JQ and Zandrivierspoort 210JP. The total area is 4,676 hectares. The properties are situated near Rustenburg and are to the south of the Pilanesberg Game Reserve and Sun City, and are referred to as the "Pilanesberg Project". The total inferred mineral resources at the time of listing totalled 63,608 million tonnes at an average grade of 5,09 g/t of 4E (comprising platinum, palladium, rhodium and gold), amounting to 10,417 million oz, of which 6,463 million oz were attributable to Wesizwe. Between the listing and the end of September 2006, the resource estimates indicated and inferred resources increased to 73,519 million tonnes at an average grade of 5,03 g/t PGM(4) for the Pilanesburg Project. Wesizwe's attributable oz increased by 12,6 per cent to 7,272 million oz. During this period, the resources attributed to Wesizwe were 1,478 million oz in the indicated category and 5,794 oz in the inferred category. Wesizwe said in September, 2007, that its attributable resource grew by 19.31% to 8.954 million oz of platinum group metals (PGM) in the six months to June, 2007. The total mineral resource at its Pilanesberg project rose 10.7% to 13.470 million ounces.
    Wesizwe is conducting a bankable feasibility study, which is expected to be completed in the first quarter of 2008 for the project, which is expected to produce around 260 000 ounces of PGMs a year.
As shares triple, analyst says it’s a good time to sell platinum explorer Wesizwe
Platinum high flyer, Wesizwe, may be rated too highly by the market to attract a cash take-over bid from one of the platinum majors.

Author: Tessa Kruger

Posted: Wednesday , 18 Apr 2007

Platinum exploration junior Wesizwe shares are expensive when analysed on the basis of price per resource ounce, making the company an unlikely cash takeover target.
A local analyst said Tuesday that although the share prices of platinum juniors surged over the past few weeks, Wesizwe's performance was exceptional considering its price of US$112.64 per resource ounce (4 PGMs).
The company--with a relatively small resource of 7.2 million ounces on the western limb of the Bushveld complex--did not only climb from R6.45 (US 91-cents) two months ago to an all-time high of R13.70 (US$1.94), but increased steeply from R9.75 (US$1.38) at the beginning of the month April.
Its current price-per-resource ounce exceeded that of other juniors such as Eland Platinum (US$51.06), currently suspected to be in takeover talks, Afplats (US$7.72) for whom Impala has made a bid, and AfriOre, acquired by Lonmin, at US$16.05 per ounce. Wesizwe's price also exceeds that of Eastern Platinum (US$15.92) that has taken over Barplats (US$8.81) and Ridge Mining's price at US$13.26.
"If you consider the platinum junior takeover transactions that were announced this year and the prices that Impala Platinum paid for Afplats, Lonmin paid for AfriOre and Eastern Platinum for Barplats, then there is no chance that a major or other company can make a cash offer for Wesizwe," the analyst said.
Wesizwe was most likely to be bought by a neighbour, but that the deal would have to be done with paper, according to the analyst.
The company is surrounded by the Western Bushveld Joint Venture (WBJV) and Styldrift properties, respectively owned by Platinum Group Metals and Anglo Platinum, and a joint venture between Royal Bafokeng Resources and Anglo Platinum.
The analyst noted that "there has been a rumour of a Wesizwe takeover and a great amount of excitement around corporate action in the platinum industry, but it would not make sense at the price at which it is currently trading."
Wesizwe has not boosted its relative small resource of 7.2 million ounces, nor completed a feasibility study. The spot platinum price should not have a great impact on its share price yet as the company will only start producing platinum in about five years.
"If you really are a long term investor you would have to look at what the price will do in the long term," the analyst advised. He added that there was no other basis to evaluate the explorer than the basis of cost-per-resource ounce, as it had no earnings, turnaround or cash flow yet.
Chief Executive Officer of Wesizwe, Mike Solomon, has stated that the junior company could not be evaluated on this basis.
However, in the analyst's view, now was a good time to sell the share that made a bull run since October, tripling some investors' money.
Solomon told Mineweb earlier that the company would likely be involved in "corporate activity" this year, and that it would like to see one large mine comprising its Ledig-Frisch project and the neighbouring resources of the Western Bushveld Joint Venture. If the projects merged, a platinum mine producing 600,000 ounces of platinum group metals (PGM) annually could result.
Investec Securities platinum analyst Leon Esterhuyzen said there had been a valuation gap in the junior platinum sector, as this was the South African market's first experience of junior mining companies.
He also indicated that investors could not easily expect a repetition of the recent run in the Wesizwe price. (Source: Mineweb)
Wesizwe Platinum announced in April 2007 that had agreed to buy a 26 percent stake in the Western Bushveld joint venture for 650 million rand ($92.50 million).Wesizwe, the investment vehicle for South Africa's Bakubung Ba-Ratheo Tribe, said it would buy African Wide Mineral Prospecting and Exploration Ltd by issuing new shares. That would give it a 26 percent stake in a joint venture with the world's biggest platinum miner Anglo Platinum and Toronto-listed exploration firm Platinum Group Metals.
Wesizwe will issue 62 million shares at 10.48 rand each. The deal also gives it stakes in Platinum Group Metal's exploration projects north of the Western Bushveld project.
Anglo Platinum and Platinum Group Metals each hold 37 percent of the Western Bushveld Joint Venture.