Acquisition:
2022 / 08 / 15
Agreement:
Stream
Terms:
37.5% Au @ $100/oz until 131,250 oz are delivered; then
30% Au @ $100/oz until 256,980 cumulative oz are delivered; then
1.875% Au @ 80% of spot thereafter if certain conditions are met
Ongoing Payment:
$100/oz
The Platreef Project is located in northeast South Africa, within the Bushveld Igneous Complex’s northern limb, the world’s largest source of platinum group metals (PGM). Platreef is a development-stage project which contains a large new discovery of PGM, nickel, copper and gold. The project is owned by Ivanhoe Mines (64%), a Japanese consortium of Itochu, JOGMEC and Japan Gas Corporation (10%), and a group of local communities organized through the Broad-Based Black Economic Empowerment Initiative (26%). The project contains thick zones of high-grade mineralization located at depths of 800–1,200 metres below surface which will be developed as an underground mine initially with two vertical production shafts. The deposit currently ranks as one of the largest precious metals deposits being developed in the world.
The Platreef deposit contains current reserves of 125.2 Mt with an average 4.37 3PE+Au (Pt + Pd + Rh + Au), 0.16% Cu, and 0.34% Ni (as of January 26, 2022, based on a variable NSR cut-off grade of $155 – $80/t). Indicated exclusive resources contain an additional 346 Mt with an average grade of 3.77 g/t 3PE+Au, 0.16% Cu and 0.32% Ni (based on a cut-off grade of 2.0 g/t 3PE + Au). The deposit remains entirely open for expansion to the south and west, indicating there is excellent potential for additional resource expansion.
A Feasibility Study released in 2022 by majority owner Ivanhoe Mines, outlined a multi-phase production approach. Phase 1 production, with processing capacity of 0.7 Mt per annum (Mtpa) is targeting high-grade mineralization adjacent to the project’s completed Shaft 1. Construction activities are underway as well as commissioning and production ramp-up. An updated feasibility study is planned for the first quarter of 2025 for an optimized development plan for Phase 2. This plan accelerates the development of Phase 2 with a total processing capacity of 4 Mtpa, by equipping Shaft 3 for hoisting. An independent preliminary economic assessment is planned concurrently with the feasibility study on a Phase 3 expansion to 10 Mtpa processing capacity.
