Eastplats Proceeds With Development of Crocette
12 Januar 2010 - 2:16PM
UK Regulatory
TIDMELR
Eastplats Proceeds With Development of Crocette
FOR: EASTERN PLATINUM LIMITED
TSX, AIM SYMBOL: ELR
JSE SYMBOL: EPS
January 12, 2010
Eastplats Proceeds With Development of Crocette
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 12, 2010) - Mr. Ian Rozier, President and CEO of Eastern
Platinum Limited ("Eastplats") (TSX:ELR)(AIM:ELR)(JSE:EPS) is pleased to announce the reactivation of mine
development at the Crocette Section of the Crocodile River Mine ("CRM"). The Crocette Project offers attractive
economics as a result of recent increases in PGM prices combined with the meaningful reductions in operating
costs which have been achieved at CRM.
Orebody access at Crocette was initiated in 2008 from two portals which will be reopened and developed to the
UG2 reef. At full production the Crocette Section is anticipated to deliver up to 40,000 tons of ore per month
(anticipated 50,000 opa PGM). This will enable CRM to reach its full production target of 175,000 tpm (approx.
200,000 opa), in line with Eastplats' anticipated growth profile for the mine. This target does not include any
potential production from the Kareespruit Section at CRM.
In a news release dated November 7th, 2008 the Company reported that the development of Crocette was to be put
on 'care and maintenance' in response to adverse market conditions while the Company took measures to increase
production from the Zandfontein and Maroelabult sections at CRM. These measures, which have been successfully
completed, include:
/T/
a. The reequipping and recommissioning of the Number One shaft at
Zandfontein to open up new areas for mining has reduced the cost of
moving mine workers, materials, ore and waste.
b. The upgrading and extension of the main ore conveyor at Maroelabult has
resulted in improved efficiencies and more reliable operations.
c. The successful optimization of the chrome recovery circuit in the
concentrator has produced more profitable chrome products and reduced
chrome penalties in the PGM concentrate.
d. Ongoing underground development at Zandfontein and Maroelabult to ensure
future mill feed tonnages.
/T/
These measures, as well as ongoing mine design and operating improvements, have enabled the Company to continue
as a low cost producer, conserve cash and increase production throughout 2009.
Crocette is one of the few remaining undeveloped near-surface PGM projects on the western limb of the Bushveld
Complex that has immediate access to a processing facility. Infill drilling has confirmed the continuity of the
UG2 at Crocette to a depth of 600m with a dip of 18 degrees, a reef width of 1.2m and an estimated head grade
of 4.1g/t (5PGE+Au). Open pit mining at Crocette is not an option as the near-surface reef is highly oxidized
which would result in poor metal recoveries; this is a common feature of outcropping PGM reefs throughout the
Bushveld Complex. The New Order Mining Right for Crocette was granted in March 2008 (see news release dated
April 2, 2008).
A commitment to provide construction power for the project has been received from Eskom but alternative
guaranteed supplies are also being evaluated by Eastplats.
Design work for the Spitzkop mine and concentrator continued in 2009 and an updated cost estimate and schedule
for the project is expected to be completed in the first half of 2010.
"The re-start of Crocette marks another era of expansion for CRM and Eastplats' operations and reflects our
confidence in the PGM markets and in our ability to operate profitably at current metal prices and at current
exchange rates. We look forward to further increases in production levels to offset current fixed costs on the
mine with no significant capital inputs other than for the underground mine development. The re-start of mine
development at Crocette represents just one phase of future development plans for Eastplats production growth,"
stated Ian Rozier.
The qualified person having prepared the contents of this news release is Mr. Brian Montpellier, P.Eng.
Total shares issued and outstanding: 680,946,625
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable
Canadian securities legislation. These forward-looking statements are based on certain assumptions by Eastplats
and as such are not a guarantee of future performance. All statements, other than statements of historical
fact, are forward-looking statements. The words "believe", "expect", "anticipate", "contemplate", "target",
"plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar expressions identify
forward looking statements. Forward-looking statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by the Company, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results
to differ materially from those projected in the forward-looking statements. Such factors include, but are not
limited to, fluctuations in the currency markets such as Canadian dollar, South African Rand and U.S. dollar,
fluctuations in the prices of PGM and other commodities, changes in government legislation, taxation, controls,
regulations and political or economic developments in Canada, the United States, South Africa, or Barbados or
other countries in which the Company carries or may carry on business in the future, risks associated with
mining or development activities, the speculative nature of exploration and development, including the risk of
obtaining necessary licenses and permits, and quantities or grades of reserves. Many of these uncertainties and
contingencies can affect the Company's actual results and could cause actual results to differ materially from
those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Readers are
cautioned that forward-looking statements are not guarantees of future performance. There can be no assurance
that such statements will prove to be accurate and actual results and future events could differ materially
from those acknowledged in such statements. Specific reference is made to the Company's most recent Annual
Information Form on file with Canadian provincial securities regulatory authorities for a discussion of some of
the factors underlying forward-looking statements.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as
a result of new information, future events or otherwise, except to the extent required by applicable laws.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Eastern Platinum Limited
Investor Relations
1-(604)-685-6851
1-(604)-685-6493 (FAX)
info@eastplats.com
www.eastplats.com
OR
NOMAD - Canaccord Adams Limited
Ryan Gaffney
+44 20 7050 6500
Ryan.Gaffney@canaccordAdams.com
OR
JSE SPONSOR - PSG Capital (Pty) Limited
Johan Fourie
+27 21 887 9602
johanf@psgcapital.com
No stock exchange, securities commission or other regulatory authority has approved or disapproved the
information contained herein.
Eastern Platinum Limited
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