Platinum Group Metals has reported positive results derived from an independent definitive feasibility study (DFS) on the Waterberg Project conducted by Stantec Consulting and DRA Projects along with a team of other specialists.

The Waterberg Project is planned to produce a sulphide concentrate at a grade that is attractive to the smelters currently operating in South Africa.

The DFS was managed by Waterberg JV Resources representing the owners of Platinum Group, Impala Platinum, Japan Oil, Gas and Metals National Corporation (JOGMEC), Hanwa and Mnombo Wethu Consultants.

Highlights include a significant increase in mineral reserves from the project’s 2016 pre-feasibility study (PFS) for a large-scale palladium, platinum, gold and rhodium (4E) mine.

The DFS also highlights after-tax net present value (NPV) of $982m using spot metal prices and after-tax NPV of $333m, both at an 8% real discount rate.

Platinum Group CEO and co-founder Michael Jones said: “The DFS provides a clear outline of the world-class nature of the Waterberg Palladium deposit and concludes that it can be one of the largest fully mechanised, low-cost platinum group metals mines in the world.

“A large global team of approximately 100 independent professionals and specialists, as well as excellent participation from our partner Implats, have contributed to an optimized mining plan that reduced capital from the earlier plan and significantly increased the Mineral Reserves for a 45-year life, 420,000 4E ounce per year steady state mine plan.”

Set to create around 1,100 skilled jobs, the Waterberg Project includes an upgrade to the local water infrastructure under a co-operation agreement with the municipality and a connection to the Eskom power grid.

In May 2017, Platinum Group Metals and JV partner JOGMEC appointed consultancy firm SFA Oxford to assess potential offtake options and commercial terms for Waterberg PGM Project.