Platinum Group Metals cuts UG-2 Reef

Vancouver Drilling at Platinum Group Metals’ (PTM-V) Elandsfontein property, in South Africa, has intercepted the UG-2 platinum reef at shallow depths.

The reef was cut at depths of less than 55 meters four initial drill holes. The reef has a projected northwesterly strike and is believed to dip about minus 22 degrees to the northeast.

The UG-2 and the Merensky reefs are the geological horizons in the Bushveld Complex that are mined for platinum, palladium and associated metals and can be traced for over 200 km throughout the complex.

Results from the recent drill holes include;

• Hole ELF-01 cut 1.07 metres averaging 0.358 gram platinum, 0.211 gram palladium, 0.079 gram rhodium and 0.006 gram gold starting 53.5 metres down-hole.
• Hole ELF-02 cut 1.16 metres averaging 0.432 gram platinum, 0.283 gram palladium, 0.119 gram rhodium, and 0.021 gram gold starting 50.67 metres down-hole.
• Hole ELF-03 cut 0.62 metres averaging 0.378 gram platinum, 0.144 gram palladium, 0.087 gram rhodium and 0.023 gram gold, starting 53.3 metres down-hole.
• Hole ELF-04 cut 1.29 metres averaging 2.416 grams platinum, 0.67 gram palladium, 0.336 gram rhodium and 0.026 gram gold, starting 49.62 metres down-hole.

Hole ELF-04 represents the traditional UG-2 thickness and grade and was drilled 240 metes along strike from the boundary with the Anglo Platinum’s Bafokeng Rasimone platinum mine. Platinum Group Metals reports that drilling will continue along strike to the northwest, for another 1 km. A total of 41 holes are planned in the current drilling program and a second drill rig will be added to accelerate the program. More assays including those from a potential second reef intercept are expected shortly.

The company states that the first three holes may represent a "pot hole" feature. These pot holes represent local variations, usually less than 200 meters in size, in the UG-2 and Merensky reef horizons where the reefs are not as well layered.

PTM has an option agreement to purchase 100% of the mineral rights of portions of Elandsfontein. According to the agreement PTM must pay a base price of 43 Rand ($8.60) per tonne of open castable economic resource on the property, to a minimum of 4 million Rand (about $800,000). An additional payment of 4.30 Rand (about $0.86) per tonne is due on any economic underground resource at the time of a mining authorization. PTM hired Royal Mineral Services to assist with the preparation of permits and potential mining plans and operations if appropriate. Royal will receive a 10% Net Profits Interest in any potential operations.