Platinum Group Metals Options Elandsfontein

Vancouver — Platinum Group Metals (PTM-V) has inked a deal to purchase 100% interest in portions of the Elandsfontein 102 JQ farm, that adjoins the Anglo American Platinum’s (AAPTY-O) Bafokeng Rasimone Platinum mine in the Western Bushveld Complex near Rustenberg, South Africa.

The property covers 296-ha adjacent to an area where the UG2 platinum-bearing reef has been traced and mined by open pit methods up to the property boundary. The Merensky Reef has also been traced to the property boundary

Platinum Group Metals states that the property has the potential to host UG2 and Merensky Reef material near surface and at depth. A drill hole recently completed on the property has been interpreted to intersect the UG2 reef. Assays are pending. The company has a prospecting permit in place and plans to drill a minimum of 2,000 metre in early January 2003.

According to the option agreement Platinum Group Metals can acquire 100% of the mineral rights by first paying 150,000 Rands (or $27,000 at current exchange rates), to the mineral rights holders. The company must also pay 43 Rands (or $7.70), per tonne of open castable economic resource on the property, to a minimum of 4 million Rands, (or $715,000). In addition, Platinum Group Metals must pay 4.30 Rand (or $0.77) per tonne on any economic underground resource at the time of a mining authorization. The purchase price is payable 90 days after the grant of mining authorization. Platinum Group Metals is also obliged to spend 400,000 Rand (or $71,500) on an exploration program

Platinum Group Metals also holds an interest in the Ledig Farm 002. Ledig adjoins the Styldrift joint venture, which is an expansion project of the Bafokeng Rasimone Platinum mine. The company holds significant mineral rights in the northern Bushveld and is planning to continue its acquisition of mineral rights. The junior holds mineral rights in the area surrounding Lac des Iles platinum group metals mine near Thunder Bay, Ontario has an active drilling joint venture with Anglo Platinum in Sudbury, Ontario.