- Platinum Group Metals has announced drill intercepts that double the strike of the F-layers at the company’s Waterberg discovery. These now cover 5.5km of strike. The deposit remains open on strike and up-dip.
- Results include 58m of 2.98g/t 2E+gold, 11.5m of 7.18g/t 2E+gold as well as 8.5m of 4.8g/t 2E+gold. These are all from the F-layer, to the north of the initial 6.6mmoz inferred resource area. The grade-thickness of the F-layers appears to increase to the north. The average thickness in the current resource stands at just over 10m combined between FH and FP layers at a grade of 2.8g/t.
- Drilling completed recently has expanded the F-layers for 2.7km beyond the resource boundary, to the north boundary of the Waterberg J/V in which PTM holds a 49.9% interest.
- PTM holds an 87% interest in permit applications over ground to the north-east of today’s F-layer intercepts. Both geochemistry and geophysics suggest shallow strike extension potential to the north.
- The Waterberg J/V holds the prospecting permit to the east and up-dip of the deposit under an application that is currently in process with the Department of Mineral Resources.
- The current 6.6mmoz resource contains 3.7mmoz in the F-layers. Resource upside in the F-layers is implied to be greater than 100% because grade thicknesses are more significant in the newly drilled northern portion.
- T-layers come to within 140m of surface in the current resource area and are expected to be west of today’s F-layer intercepts. T-layers remain open to on strike and down dip.
- T-layers have been intercepted down to 1,375m in the resource area although they were cut off at 1,000m depth for the resource. Due to the potential of the deposit, a re-consideration of this cut-off is possible. Exploration, however, will remain focused on near-surface mineralization.
- Exhibit 1 on the next page presents a plan view of the F- and T-layer extension potential reported today relative to the location of the original inferred resource. The F-layer extension is colored orange (T layers extension is colored pink). The ground directly north and directly east of the current drilling is under application with a 49.9% PTM interest and the ground to the northeast is under application with an ownership of 87%.
- Of note, hole 27 released today included only the F-intercept. T-intercepts were released previously on September 17th and results included 2m of 3.33g/t 2E+gold and 2m of 2.61g/t 2E+gold.
The doubling of the F-layer strike to 5.5km was achieved with intercepts that appear to be thickening, notably with the 58m of 2.98g/t of 2E+gold.
The F-layers are open to the north – PTM has these areas under an application in progress.
Recommendation: Maintain BUY, $3.00 Target
We maintain our BUY recommendation and $3.00 target.