Prospecting Permit Granted
August 11, 2003
Platinum Group Metals Ltd. (PTM-TSXV) is pleased to announce that its wholly owned subsidiary Platinum Group Metals (RSA) Pty Ltd, PTM RSA, has been granted a prospecting permit for the Tweespalk Property in the northern limb of the Bushveld Complex. Ground mapping and sampling work to target drilling will commence immediately and initial drilling is planned for fall 2003.
The Tweespalk Property is in between three known platinum deposits along the northern limb of the Bushveld Complex. Tweespalk is 25 kilometres north, on trend, of the Anglo Platinum PPRust open pit platinum mine. PPRust is reported to have open pit reserves of 332 million tonnes grading 2.67 g/t (.08 ounces per tonne, approximately 28 million ounces) 4 PGE''s, (platinum, palladium, rhodium and gold) and resources of 718 million tonnes grading 2.79 g/t (0.08 ounces per tonne). (Source: Anglo Platinum Annual Report 2002). The Tweespalk Property is located about 17 kilometres north of Anooraq''s Drenthe Farm, which is reported to have an inferred mineral resource of 99.4 million tonnes 1.31 g/t 4 PGE''s and 0.16% nickel, 0.10% copper. Tweespalk is located 23 kilometres south of the Nonnenwerth Deposit previously drilled by Genmin (Impala Platinum) of 50 million tonnes of 1.19 g/t 4 platinum and palladium and 0.07% nickel and 0.21% copper.
The Tweespalk property covers 2, 177 hectares over approximately 3 kilometres of the trend. The northern limb of the Bushveld Complex has seen a dramatic increase in exploration activity and interest over the past year with the recognition of the potential for bulk minable platinum by open pit methods along the trend. Further attention has been focussed in the area as a result of large scale drilling programs by African Minerals Ltd, a private company controlled by Robert Friedland and Anooraq Resources Corp, another Canadian based public company.
PTM''s Tweespalk property is surrounded by the Anooraq -- Anglo Platinum joint venture property. A detailed magnetic survey over the area clearly identifies the target contact crossing Tweespalk and the surrounding farms.
PTM can acquire up to a 100% interest in the property under terms announced June 3, 2002. PTM has the option to purchase the rights of private mineral rights holders at any time over three years from the grant of a prospecting permit. If exercised at the end of the three year period, PTM can buy out the private rights holders for US$ 1,500,000 subject to a 1% Net Smelter Return Royalty. PTM has the option to buy the NSR for US$ 1,400,000.
PTM also holds an option to purchase the War Springs Property located approximately 7 kilometres south of the African Minerals project. The earlier competing prospecting permit on the War Springs property has lapsed and the matter of a Prospecting Permit for PTM RSA over the War Springs property is the subject of ongoing litigation. PTM RSA and the property vendors together are defending vigorously their rights to a permit to prospect and drill.
In November 2002 PTM RSA entered into a joint venture agreement with a black empowerment company, Africa Wide Mining -- a subsidiary of Africa Wide Investments Holdings. Under the terms of the agreement Africa Wide can participate up to 30% in the Tweespalk and War Spring projects through an industry standard participating joint venture agreement. The joint venture with Africa Wide exceeds the participation targets of the new Mining Charter of 26% in ten years time, from the outset of the joint venture. Africa Wide brings significant legal and community consultation expertise to the joint venture. PTM is strongly supportive of the government of South Africa''s initiatives in the new mineral bill and mining charter. PTM believes that innovative partnerships such as the joint venture with Africa Wide can create positive business environment for junior mining activity and development for empowerment companies and their partners.
R. Michael Jones, P.Eng is acting as the Qualified Person, "QP" for Platinum Group Metals RSA Pty Ltd., a wholly owned subsidiary of PTM, for this and following releases on the Tweespalk Project, until a project geologist has been assigned. He is registered with the Professional Engineers of Ontario. Information on regional deposits has been acquired from public information and is believed to be reliable.
PTM is based in Vancouver BC, Canada and has active exploration programs in Canada and South Africa. The Company was founded in 2000 with the vision of tight physical markets for platinum group elements and the corresponding anticipated increase the value of platinum mineral rights and resources by 2005.
PTM holds significant mineral rights in the northern and western Bushveld and is planning to continue its acquisition of mineral rights in South Africa and the Bushveld Complex. The Company''s activity in the western Bushveld has also been in the news recently. The Company is supportive of the new initiatives of the government of South Africa in the Mineral Bill and Mining Charter.
PTM is the largest mineral rights holders in the area surrounding Canada''s only primary platinum and palladium mine near Thunder Bay, Ontario and PTM has a separate active joint venture with Anglo Platinum, the world''s largest producer of platinum, near Sudbury, Ontario, Canada.
On behalf of the Board of
Platinum Group Metals Ltd.
"R. Michael Jones"
R. Michael Jones
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Note to U.S. Investors: Investors are urged to consider closely the disclosure in our Form 20F, File No. 0-30306, available at our office: Suite 800 -- 409 Granville Street, Vancouver BC, Canada, V6C 1T2 or from the SEC: 1(800) SEC-0330.