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SA platinum fields lean to consolidation Posted: Fri, 15 Sep 2006 [miningmx.com] -- WESIZWE Platinum is sharing information with its neighbours raising that prospect that consolidation in South Africa’s platinum fields may accelerate. “Maturity and common sense have prevailed,” said Michael Solomon, CEO of Wesizwe Platinum. The company, which shares boundaries with Toronto-listed firm, Platinum Group Metals (PTM) and Anglo Platinum, has been sharing geological information common to their exploration targets to avoid duplication when drilling and to optimise their exploration programmes. Similar knowledge sharing has also taken place between Wesizwe Platinum and the owners of Styldrift, a joint venture between Anglo Platinum and Royal Bafokeng Resources (RBR). The flat-lying, wide-seam orebody Wesizwe is exploring is an extension of the Styldrift orebody. Wesizwe Platinum, PTM the RBR/Anglo Platinum JV are hoping to build mines in the notoriously competitive Western bushveld. By talking to each other, the chances of building closer operating links are increased, said Solomon. Wesizwe's plans are to build a 200,000 oz/year platinum group metal mine. "I'm optimistic this will lead to closer working relations," he said. "When we get to mining operations, I sure we'll see ways of finding cooperating." Solomon has for a long time been punting the idea of merging the three projects to create a single "world class" operation. He stressed that no talks along these lines have formally taken place between the various parties. "We don't need them, it just that it makes these projects a whole lot jucier. We can knock several hundred million rand off our capital expenditures and boost the internal rate of returns if we share a concentrator and infrastructure," he said, adding the Wesizwe project was big enough for a standalone long-life mine. Wesizwe is increasing the number of drills at its Frischgewaagd site to 11 from the three used in the first phase of the project to determine an inferred resource, which now stands at 11.5 million ounces of which 7.1 are attributable to Wesizwe. The aggressive drilling campaign is to bring resources into the indicated category, a higher level of confidence, as Wesizwe moves towards a prefeasibility study later this year. This would bump the company’s share price up as the riskiest part of the venture recedes, Solomon said. There’s also unconfirmed speculation that Wesizwe Platinum will be awarded rights to additional properties on both limbs of the Bushveld. Solomon declined to comment.Free news alerts: click here to subscribe
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