New Platinum Reef Discovery in Canada
January 19, 2005
Platinum Group Metals Ltd. (PTM-TSXV; PTMQF-OTCBB) announces the discovery of a new platinum bearing layer, or "reef" within the Seagull Intrusion located northeast of Thunder Bay, Ontario. The newly discovered horizon was drilled by PTM in December 2004 and includes an intercept of 6.21 grams per tonne platinum, palladium, rhodium, osmium, iridium, ruthenium and gold (6 PGE+Au) over 0.65 metres within a broader mineralized zone which returned 2.47 grams per tonne 6PGE+Au over 3.21 metres.
The Seagull results are very comparable to the 4 to 5 grams per tonne typically mined over a 1 metre "reef cut" in South African platinum mines. In fact, a 1.27 metre cut from within the broader mineralized zone returned a grade of 4.36 grams per tonne 6PGE + Au. Importantly, the platinum to palladium ratio of the newly discovered zone is almost 1 to 1, making the new zone a highly desirable economic target. The Seagull platinum reefs are also characterized by higher values for the rare PGE elements osmium and iridium than those generally observed in the famous Merensky Reef of South Africa.
The intercept is hosted by a distinct layer near the base of the intrusion, the lower peridotite, which has not been the focus of previous drilling and sampling. The new intercept may correlate with a peridiotite-hosted intercept that returned 3.72 g/t platinum, palladium, and gold ("3E") over 2.0 metres, in hole WM98-05, 730 metres to the southwest. At the time that this intercept was made it was not identified as potentially part of a larger PGE bearing layer and this mineralized layer may be present but not sampled in several other older holes. This sampling is underway now.
The Seagull Intrusion has now demonstrated numerous reefs bearing significant PGE values including two upper dunite-hosted layers that have returned values of 4.23 grams per tonne 6PGE+Au over 3.0 metres and 4.08 grams per tonne 6PGE+Au over 3.0 metres. These upper layers are also open for expansion. The newly discovered layer in peridotite and the dunite layers within the Seagull Intrusion have demonstrated PGE mineralization over an area 730 metres in a north-south direction by 980 metres in an east-west direction.
The newly discovered high grade PGE mineralization was intersected in hole 17 and has a Pd:Pt ratio of 1.11. It is associated with base metal mineralization grading 0.51% Cu and 0.30% Ni over 0.65 metres and 0.19% Cu and 0.20% Ni over the broader 3.21 metre interval. (Depths 379.35-380.00 and 377.28-380.55 metres respectively) Values of the individual platinum group metals are: 2.38 g/t Pt, 2.65 g/t Pd, 0.19 g/t Au, 0.18 g/t Rh, 0.39 g/t Os, 0.34 g/t Ir and 0.08 g/t Ru.
R. Michael Jones, President of Platinum Group Metals Ltd., said "In our view this is one the most significant new occurrences of platinum group elements in North America and it is very exciting to use our active South African experience on a reef discovery near Thunder Bay, Ontario. The importance of the reef style of mineralization is that it is associated with a specific layer of rock that has cooled from the molten intrusion and has the potential for large areas with excellent grade continuity. There is already a platinum-palladium mine near Thunder Bay, the only one in Canada, but this is the first time a layered reef style of platinum-palladium mineralization has been confirmed in the area. This new discovery is quite exciting for the local area and PTM. "
PTM drilled holes WM04 -11 to 17 in 2004 with more than 1 kilometre between holes to broadly explore portions of the overall 10 kilometre diameter Seagull intrusion. Many of these holes intercepted shallow basement rocks. A detailed gravity survey completed coincident with the PTM drilling has confirmed the northern half of the Seagull Intrusion as the target area for expanding platinum reefs discovered to date. Included in the future drilling plans is a target displaying a significant gravity high with coincident magnetic and conductive features 1.7 kilometres east of the high values from hole 17 reported herein.
A 2000 metre, Phase 2 diamond drilling program will commence on the Seagull Property before the end of January. The Phase 2 program will target potential extensions of the high-grade peridotite and dunite reef zones in the vicinity of hole 17 and the geophysical target described above.
PTM may earn a 70% interest in the Seagull property under the terms of an option agreement from East West Resource Corporation (EWR -- TSXV) and Canadian Golden Dragon Resources Ltd. (CGG -- TSXV) announced on September 28, 2004.
Qualified Person and Quality Control and Assurance
Darin Wagner, P.Geol., the Exploration Manager of PTM is the qualified person for this information. He supervised the exploration drilling and sampling for PTM. He has more than 10 years relevant experience in resource exploration and evaluation and has completed extensive work in the Thunder Bay area for PGEs. In addition he has experience in the Bushveld Complex, South Africa. Drill core was sawn with half being retained for future study. The samples collected from the second half of the drill core were placed in containers sealed on site and tagged with a secure chain-of-custody security seal before being transported to the ALS Chemex (Thunder Bay) sample preparation facility. ALS Chemex assayed the samples under standard fire assay procedures. As previously announced for other work, PTM has inserted standards blanks and blind duplicates in the sample stream as part of its rigorous quality control and assurance Company procedures.
ABOUT PTM
PTM is based in Vancouver BC, Canada and is focused on the exploration and development of platinum and palladium projects in Canada and South Africa. PTM holds significant mineral rights in the northern and western Bushveld Platinum Complex of South Africa, including a large-scale joint venture with Anglo American Platinum Corporation Limited in the Western Limb of the Bushveld Complex. The Western Bushveld Joint Venture, where PTM has the right to earn a 37% interest includes an inferred resource of 3.7 million ounces of platinum, palladium, rhodium and gold.
PTM has a separate active joint venture with Anglo American Platinum near Sudbury, Ontario, Canada.
On behalf of the Board of
Platinum Group Metals Ltd.
"R. Michael Jones"
R. Michael Jones
President and Director
- 30 -
For further information contact:
R. Michael Jones, President
or John Foulkes, Manager Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450
Larry Roth
Roth Investor Relations, NYC
Tel: (732) 792-2200
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 328-550 Burrard Street, Vancouver BC, Canada, V6C 2B5 or from the SEC: 1(800) SEC-0330.
Click to view hi-resolution version in PDF format
(PDF, 1.5 Mb)
The Seagull results are very comparable to the 4 to 5 grams per tonne typically mined over a 1 metre "reef cut" in South African platinum mines. In fact, a 1.27 metre cut from within the broader mineralized zone returned a grade of 4.36 grams per tonne 6PGE + Au. Importantly, the platinum to palladium ratio of the newly discovered zone is almost 1 to 1, making the new zone a highly desirable economic target. The Seagull platinum reefs are also characterized by higher values for the rare PGE elements osmium and iridium than those generally observed in the famous Merensky Reef of South Africa.
The intercept is hosted by a distinct layer near the base of the intrusion, the lower peridotite, which has not been the focus of previous drilling and sampling. The new intercept may correlate with a peridiotite-hosted intercept that returned 3.72 g/t platinum, palladium, and gold ("3E") over 2.0 metres, in hole WM98-05, 730 metres to the southwest. At the time that this intercept was made it was not identified as potentially part of a larger PGE bearing layer and this mineralized layer may be present but not sampled in several other older holes. This sampling is underway now.
The Seagull Intrusion has now demonstrated numerous reefs bearing significant PGE values including two upper dunite-hosted layers that have returned values of 4.23 grams per tonne 6PGE+Au over 3.0 metres and 4.08 grams per tonne 6PGE+Au over 3.0 metres. These upper layers are also open for expansion. The newly discovered layer in peridotite and the dunite layers within the Seagull Intrusion have demonstrated PGE mineralization over an area 730 metres in a north-south direction by 980 metres in an east-west direction.
The newly discovered high grade PGE mineralization was intersected in hole 17 and has a Pd:Pt ratio of 1.11. It is associated with base metal mineralization grading 0.51% Cu and 0.30% Ni over 0.65 metres and 0.19% Cu and 0.20% Ni over the broader 3.21 metre interval. (Depths 379.35-380.00 and 377.28-380.55 metres respectively) Values of the individual platinum group metals are: 2.38 g/t Pt, 2.65 g/t Pd, 0.19 g/t Au, 0.18 g/t Rh, 0.39 g/t Os, 0.34 g/t Ir and 0.08 g/t Ru.
R. Michael Jones, President of Platinum Group Metals Ltd., said "In our view this is one the most significant new occurrences of platinum group elements in North America and it is very exciting to use our active South African experience on a reef discovery near Thunder Bay, Ontario. The importance of the reef style of mineralization is that it is associated with a specific layer of rock that has cooled from the molten intrusion and has the potential for large areas with excellent grade continuity. There is already a platinum-palladium mine near Thunder Bay, the only one in Canada, but this is the first time a layered reef style of platinum-palladium mineralization has been confirmed in the area. This new discovery is quite exciting for the local area and PTM. "
PTM drilled holes WM04 -11 to 17 in 2004 with more than 1 kilometre between holes to broadly explore portions of the overall 10 kilometre diameter Seagull intrusion. Many of these holes intercepted shallow basement rocks. A detailed gravity survey completed coincident with the PTM drilling has confirmed the northern half of the Seagull Intrusion as the target area for expanding platinum reefs discovered to date. Included in the future drilling plans is a target displaying a significant gravity high with coincident magnetic and conductive features 1.7 kilometres east of the high values from hole 17 reported herein.
A 2000 metre, Phase 2 diamond drilling program will commence on the Seagull Property before the end of January. The Phase 2 program will target potential extensions of the high-grade peridotite and dunite reef zones in the vicinity of hole 17 and the geophysical target described above.
PTM may earn a 70% interest in the Seagull property under the terms of an option agreement from East West Resource Corporation (EWR -- TSXV) and Canadian Golden Dragon Resources Ltd. (CGG -- TSXV) announced on September 28, 2004.
Qualified Person and Quality Control and Assurance
Darin Wagner, P.Geol., the Exploration Manager of PTM is the qualified person for this information. He supervised the exploration drilling and sampling for PTM. He has more than 10 years relevant experience in resource exploration and evaluation and has completed extensive work in the Thunder Bay area for PGEs. In addition he has experience in the Bushveld Complex, South Africa. Drill core was sawn with half being retained for future study. The samples collected from the second half of the drill core were placed in containers sealed on site and tagged with a secure chain-of-custody security seal before being transported to the ALS Chemex (Thunder Bay) sample preparation facility. ALS Chemex assayed the samples under standard fire assay procedures. As previously announced for other work, PTM has inserted standards blanks and blind duplicates in the sample stream as part of its rigorous quality control and assurance Company procedures.
ABOUT PTM
PTM is based in Vancouver BC, Canada and is focused on the exploration and development of platinum and palladium projects in Canada and South Africa. PTM holds significant mineral rights in the northern and western Bushveld Platinum Complex of South Africa, including a large-scale joint venture with Anglo American Platinum Corporation Limited in the Western Limb of the Bushveld Complex. The Western Bushveld Joint Venture, where PTM has the right to earn a 37% interest includes an inferred resource of 3.7 million ounces of platinum, palladium, rhodium and gold.
PTM has a separate active joint venture with Anglo American Platinum near Sudbury, Ontario, Canada.
On behalf of the Board of
Platinum Group Metals Ltd.
"R. Michael Jones"
R. Michael Jones
President and Director
- 30 -
For further information contact:
R. Michael Jones, President
or John Foulkes, Manager Corporate Development
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450
Larry Roth
Roth Investor Relations, NYC
Tel: (732) 792-2200
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 328-550 Burrard Street, Vancouver BC, Canada, V6C 2B5 or from the SEC: 1(800) SEC-0330.
Click to view hi-resolution version in PDF format
(PDF, 1.5 Mb)
