SOUTH AFRICA - New mineral resource estimates have been completed for the Spitzkop platinum group metals project, located in Mpumalanga Province in South Africa.
On November 1, 2004, ELGIN RESOURCES INC. announced its joint-venture agreement with SPITZKOP PLATINUM LTD. of South Africa and its proposed amalgamation with JONPOL EXPLORATIONS LTD. On closing the merged entity will have an 87% interest in Spitzkop, as well as a 75% interest in the Mareesburg PGM project 15 km away, and operate both projects.
The new resource estimates are included in an independent NI 43-101 technical report. The estimates confirm that Spitzkop is a high grade, near surface, shallow dipping, platinum rich PGM deposit with resources in both the UG2 and Merensky reefs.
The 2005 measured resource estimate for the UG2 reef is 37.46 million tonnes grading 7.70 g/t PGM plus Au (3 g/t cutoff), containing 9.27 million ounces PGM plus Au. This reef varies between 0.7 and 2.7 m thickness across the property, and the average dip is 12 degrees to the west. There is high grade, well-developed reef in the northeast part of the property, which would be the subject of initial mining operations at Spitzkop.
The Merensky reef at Spitzkop has indicated resources of 47.38 million tonnes grading 2.43 PGM plus Au, containing 3.71 million ounces PGM plus Au. It is 2.3 m thick on average, with the same dip as UG2. New mineral resource estimates have not been made for this reef.
A two-phase technical work program has been recommended for the Spitzkop project: a $1.3-million pre-feasibility study followed by a $2.5-million feasibility study.
A pre-feasibility study is currently underway at Mareesburg and the results are anticipated in mid-2005. On completion of the acquisition of the Spitzkop project from Impala and the amalgamation with Jonpol, the amalgamated company, to be renamed EASTERN PLATINUM LTD., will commence a feasibility study at Spitzkop.
Both Mareesburg and Spitzkop are high-grade, platinum-rich, near-surface, shallow-dipping PGM deposits. It is anticipated that Mareesburg would commence as an open-pit mine operation for the initial portion of mine life before underground resources are accessed from the open pit. Spitzkop is envisaged to be a decline mining operation that will exploit high-grade PGM resources at shallow depth without the requirement for high capital cost mine infrastructure and underground pre-production development such as shafts.
The company is actively pursuing other similar opportunities in South Africa to add to these core projects. For further information contact Ian Rozier, president of Elgin Resources at 604-685-6851, info@elginresources.com; or call Gordon Keep, president of Jonpol Explorations at 604-609-6110.
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