Ivanplats Files Mining Right Application for Its Platreef Platinum-Group
Metals, Nickel, Copper and Gold Project on the
Northern Limb of South Africa's Bushveld Complex
Resumption of drilling at Platreef Project to focus on advancing
technical studies and target expansion of resources
JOHANNESBURG, SOUTH AFRICA -- (Marketwired) -- 06/10/13 -- Ivanplats
Limited (TSX:IVP) Executive Chairman Robert Friedland and Chief
Executive Officer Lars-Eric Johansson announced today that the
company has filed a Mining Right Application with South Africa's
Department of Mineral Resources for its Platreef Project in the heart
of the world's premier platinum producing region, the Bushveld
Ivanplats' Platreef Project is a Tier One discovery of platinum-group
elements, nickel, copper and gold, which contains the Flatreef
underground deposit, on the Bushveld's Northern Limb.
"Our application for a Mining Right is a very significant milestone
for the Platreef Project," said Mr. Friedland.
"This marks the culmination of years of successful exploration and
engineering to define high-grade resources that we believe are
amenable to safe, efficient, large-scale, mechanized underground
mining methods. We're looking forward to working with all our
stakeholders to advance the Platreef Project to production, to create
much-needed jobs and to contribute significantly to the
socio-economic development of our host communities, the surrounding
Limpopo region and South Africa as a whole."
In conjunction with the Mining Right Application (MRA), and in
compliance with South African ownership requirements under the Mining
Charter, Ivanplats also announced that the Platreef ownership
structure has been modified to include a Broad-Based Black Economic
Empowerment (BBBEE) partner that represents local communities, women,
children and employees.
The BBBEE partner will acquire a 26% interest in the Platreef Project
through a private company incorporated in South Africa - BBBEE SPV -
that will represent the interests of the Platreef Communities
Umbrella Trust, the Platreef Women's and Children's Trust and the
Platreef Equity Participation Trust. Host communities directly
affected by the Platreef Project will be the initial beneficiaries of
the Platreef Communities Umbrella Trust.
Ivanplats will finance the transaction, to take effect upon
Ivanplats' receipt of the Mining Right, and retain a 49% minority
share in BBBEE SPV.
A Mining Right allows a company to mine and process minerals
optimally from the mining area for a maximum period of 30 years,
which may be extended upon application. An application for a Mining
Right or renewal must be based on the size of the resource and the
planned mining rate, adhering to the principles of sustainable
development, including social impacts, health and safety,
environmental rehabilitation and responsible mining.
The application review process will involve a thorough assessment of
Ivanplats' Environmental Management Program (EMP), Social and Labour
Plan and Mining Work Program. The Environmental and Social Impact
Assessment will engage with all interested stakeholders, including
local communities and governments. A complete EMP must be filed with
the Department of Mineral Resources (DMR) within 180 days of its
acceptance of the MRA. The entire application process will be
administered by the DMR.
Ivanplats has lodged applications for licences and authorizations
under terms of the following legislation: National Water Act, 1998;
National Environmental Management Act, 1998; and National
Environmental Management: Waste Act, 2008.
Ivanplats soon will begin negotiations for long-term surface lease
agreements with affected land owners that will allow for access and
occupation for mining and related purposes. These negotiations will
be undertaken in conjunction with the Department of Rural Development
and Land Reform.
Upon receipt of the Mining Right, Ivanplats will own 64% of the
Platreef Project, BBBEE SPV will own 26% and a Japanese consortium of
Itochu Corporation; Japan Oil, Gas and Metals National Corporation
(JOGMEC) and JGC Corporation will own 10%. The Japanese consortium's
interest in the Platreef Project was acquired in two tranches for a
total investment of $290 million, which is being used to fund the
project's ongoing exploration and pre-development work.
Drilling to focus on advancing technical studies and target expansion
On May 28, 2013, following ratification of community compensation
agreements, the DMR rescinded a Section 93 Directive issued in Q'4
2012 that had temporarily suspended exploration activities, including
drilling, at the Platreef Project.
Drilling is expected to resume later this month. The initial drilling
will focus on providing additional technical data required to advance
studies on the project at the pre-feasibility level. Ivanplats also
is planning additional exploration drilling targeting potential
contiguous, high-grade mineralized zones to supplement the current
indicated resource in Flatreef's Zone 1 and also to target additional
shallow, high-grade inferred resources along strike from Zone 1.
The planned exploration drilling program will focus on delineating
the exploration target that is believed to represent the southern
continuation of the shallow Flatreef underground deposit. In the
March 2013 Platreef Technical report, AMEC provided an exploration
target tonnage for this area (Target 1) and suggested it could
contain between 31 and 62 million tonnes grading 3.36 to 5.03 grams
per tonne (g/t) 4PE (platinum, palladium, gold and rhodium), 0.26% to
0.38% nickel and 0.13% to 0.19% copper over an area of 2.5 square
AMEC also identified a second exploration target area (Target 2) that
surrounds the declared Mineral Resources and is estimated to contain
an additional 50 to 220 million tonnes grading 2.9 to 4.1 g/t 4PE,
0.24% to 0.32% nickel and 0.12% to 0.16% copper over an area of 7.6
square kilometres. The tonnage and grades are based on intersections
of mineralization in adjacent drill holes within the Inferred Mineral
The goal of the exploration drilling in targets 1 and 2 is to
delineate additional mineral resources that, if confirmed and
supported by positive technical studies, potentially could result in
a second underground development area at Platreef. The estimated
quantity and grade of these exploration targets are conceptual in
nature. There has been insufficient exploration and/or study to
define these exploration targets as a Mineral Resource. It is
uncertain if additional exploration will result in these exploration
targets being delineated as a Mineral Resource.
Sinking of an initial exploration shaft in Flatreef's Zone 1 is being
planned to provide underground access to the Flatreef Deposit to
obtain a bulk sample for various testwork. The Platreef Bulk Sample
Application was lodged with the DMR in Polokwane in September 2012
and is awaiting approval. Ivanplats has appointed South Africa-based
Aveng Mining as the shaft-sinking contractor. Aveng will proceed with
the shaft engineering and design work, as well as refurbishment of
the shaft winder, while the Bulk Sample Application is pending.
Project development and community relations
Ivanplats appointed South Africa-based DRA Mineral Projects as the
principal Pre-feasibility Consultant for the Platreef Project in
March 2013. Study work began in April 2013. Sub-consultants
supporting DRA are Stantec (mining), Golder Associates (hydrology),
), Geotail (tailings) and Digby Wells & Associates
(social and environmental). The project team also is working toward
finalizing a Preliminary Economic Assessment (PEA) expected in Q'3
A range of mechanized options for mining the Flatreef Deposit from an
initial underground development area is being examined in connection
with the PEA, including a high-volume underground mining option. The
project team is examining a range of tailings storage options, as
well as milling and process alternatives, although it is expected
that industry-standard froth flotation will be selected as the
principal processing method.
Planning for transportation, power and related infrastructure is in
progress. The coal-fired Medupi power station being built by Eskom,
approximately 180 kilometres northwest of the Platreef Project, is
expected to provide 4.8 gigawatts of incremental power to the state
grid when it is completed in 2015. Ivanplats is working with other
participants to partly fund and develop a water pipeline from the
Flag Boshielo Dam, approximately 130 kilometres southeast of
Platreef. The pipeline project is part of the larger, state-led
Olifants River Water Resources Development Project's Phase 2, a
US$1.2 billion undertaking by the South African government.
Communities surrounding the Platreef Project also will benefit from
the pipeline project.
All of the engineering and infrastructure work is supported by what
is believed to be one of the most extensive environmental and
socio-economic study programs in South Africa's mining history.
Approximately three years have been spent collecting the data
necessary to plan an environmentally sound and socially responsible
mining project and to satisfy all permitting requirements.
Although the Platreef Project still is in the pre-development stage,
Ivanplats already has established a presence in communities in the
vicinity of its Platreef Project through its community liaison
offices and regular stakeholder engagement forums. Platreef also has
begun two local economic development projects that form part of the
company's Social and Labour Plan, which is part of the Integrated
Development Plan of the Mokopane municipality.
Platreef, as a new development project, would bring many additional
high-value jobs, training and other opportunities for those who live
in local communities and elsewhere in the region. Work is progressing
to address skills training and sustainable local economic development
projects. Specific initiatives, including job creation measures, will
be announced following consultations with local communities,
municipalities and various government departments.
About the Platreef Project
Ivanplats' Platreef Project is on the Northern Limb of the
PGM-bearing Bushveld Complex, north of the town of Mokopane and
approximately 280 kilometres northeast of Johannesburg. The project
is located on two contiguous licences, Turfspruit 241 KR and
Macalacaskop 243 KR, which adjoin Anglo Platinum's Mogalakwena
The scientific and technical information in this release has been
reviewed and approved by Stephen Torr, Ivanplats' Vice President,
Project Geology and Evaluation, a Qualified Person under the terms of
National Instrument 43-101. For information about data verification
measures used to support the scientific and technical information,
please refer to the current technical report on the Platreef Project
on the SEDAR profile of Ivanplats at www.sedar.com.
Ivanplats (TSX:IVP), with offices in Canada, South Africa and the
United Kingdom, is advancing and developing its three principal
-- Kamoa, the company's 2008 world-scale copper discovery in a previously
unknown extension of the Central African Copperbelt in the Democratic
Republic of Congo (DRC).
-- Platreef, a discovery of platinum-group elements, nickel, copper and
gold on the Northern Limb of South Africa's Bushveld Complex, which
contains the Flatreef Deposit. Discovered in 2010, Flatreef is a zone of
high-grade mineralization that lies within a flat, to gently dipping,
portion of the Platreef and potentially is amenable to highly mechanized
underground mining methods.
-- Kipushi, the historic, high-grade zinc-copper mine, also on the
Copperbelt in the DRC, which was acquired in 2011 following an 18-year
care-and-maintenance program and now is being dewatered and upgraded to
support a future return to production.
Ivanplats also is evaluating other opportunities as part of its
objective to become a broadly based international mining company.
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific
factors disclosed here and elsewhere in the company's periodic
filings with Canadian securities regulators. When used in this
document, the words such as "could", "plan", "estimate", "expect",
"intend", "may", "potential", "should" and similar expressions, are
forward-looking statements. Information provided in this document is
necessarily summarized and may not contain all available material
Statements in this release that constitute forward-looking statements
or information include, but are not limited to: the granting of a
mining right; potential for exploration program to upgrade
exploration targets to resources and for those resources to be
delineated as a new area of underground development; granting of a
bulk sampling permit; timing and results of a PEA; completion of a
pre-feasibility study; adoption of mechanized mining methods; power
and water development initiatives by third parties and Ivanplats
ability to access those resources.
All such forward-looking information and statements are based on
certain assumptions and analyses made by Ivanplats' management in
light of their experience and perception of historical trends,
current conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances.
These statements, however, are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking information or statements. Important factors that
could cause actual results to differ from these forward-looking
statements include those described under the heading "Risks and
Uncertainties" in the company's most recently filed MD&A. Readers are
cautioned not to place undue reliance on forward-looking information
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