Platinum Group Metals and joint venture partner Japan Oil, Gas and Metals National (JOGMEC) have appointed consultancy firm SFA Oxford to assess potential offtake options and commercial terms for Waterberg PGM Project in South Africa.
Alongside formulating a metallurgical processing strategy that will include identification of all mineral processing options, the consultancy company will evaluate commercial terms, processing routes and specific smelter options.
The work assigned to SFA will add to the work being done by an independent engineering qualified person in these areas and is expected to make a significant contribution to the economics outlined in the definitive feasibility study that is currently in progress.
According to a pre-feasibility study conducted by the company, the Waterberg Project is expected to produce up to 285,000t of concentrate per annum at peak production, comprising around 80g/t 4E's plus copper at between 1% and 9.2% and nickel at between 1.1% and 5%.
Platinum Group Metals CEO Michael Jones said: "We look forward to working with the team at SFA to further delineate the unique value opportunities for the Waterberg Project.
“The anticipated scale of production at Waterberg will play a significant role in meeting demand for PGM metals going forward, particularly palladium.
“Given the abundance of smelter capacity in South Africa and the unique nature of Waterberg concentrate, our work with SFA will assist in maximising value."
SFA chairman Stephen Forrest said: "This is an exciting opportunity for SFA to assist in developing a robust investment case for a unique PGM asset in the northern limb of the Bushveld Igneous Complex in South Africa."
Based in South Africa and Canada, Platinum Group Metals is an exploration and development company, holding a direct and indirect 58.65% interest in the Waterberg Project.