Platinum Group Metals Adds PGM Ounces
October 19, 2005
Vancouver/Johannesburg October 19, 2005... Platinum Group Metals Ltd. ("PTM") (TSX: PTM, OTCBB: PTMQF) announced today an independent resource calculation on its War Springs property, located on the Northern Limb of the Bushveld Complex in South Africa, including information on a new deposit type with potential for low cost bulk mining.
The independent report confirmed an inferred resource of 980,000 ounces of platinum, palladium, and gold (29.6 M tonnes grading 1.03 g/t 2PGE+Au (0.31 g/t Pt, 0.63 g/t Pd, 0.09 g/t Au), 0.13% Nickel, 0.11% Copper with strong evidence of resource continuity. PTM holds a 70% interest in the War Springs property.
"Our newly announced War Springs resource adds additional depth to our platinum portfolio and the southern portion of the property provides an excellent target for further drilling," said R. Michael Jones, President of Platinum Group Metals Ltd. "This new resource is found in two distinct reef layers 5-10 meters thick named the "B" and "C" reefs, starting at surface and dipping in parallel sheets at a 65 degree angle to a depth of 400 metres and remaining open."
There is also considerable potential for resource expansion along the southern portion of the War Springs property. Soil sampling results just received, combined with geophysics, clearly outline the surface trace of the deposit and show a distinct extension to the south for a further 1.2 kilometers that has yet to be drill tested. The southern extension of the B and C reefs has a soil anomaly expression of twice the thickness and intensity of that on the newly drilled deposit, indicating excellent potential for improved grades and thickness in the new area.
"Currently PTM is focussed on South Africa and in particular, the Western Bushveld Joint Venture with Anglo Platinum and Africa Wide Mining. We have five active drills working towards pre-feasibility study on the 4.3 million ounce inferred resource in the Project 1 Scoping Study at 13.87 million tonnes grading 9.67 g/t 4E," said R. Michael Jones.
The inferred resource for War Springs was calculated from 18 boreholes which have previously been announced. PTM has assessed the resource cut-off on a gross metal value of Rand 109 per tonne, based on a preliminary low cost decline, block cave mining model.
The correlation of geological information including geophysics and soil geochemistry has been completed by PTM and reviewed by Charles Muller of Global Geo Services Pty Ltd. (SACNASP), as an independent Qualified Person under the guidelines of the SAMREC Code and Canadian National Instrument 43-101. Global Geo Services provided their kriged resource calculation, based on 250 metre spaced holes, on October 10, 2005 and a 43-101 report will be filed within 30 days.
About Platinum Group Metals Ltd.
PTM is based in Vancouver, BC, Canada and Johannesburg, South Africa, with a dual-continent management team with successful track records spanning more than 20 years in exploration, mine discovery, mine construction, and mine operations.
Formed in 2000, the Company is focused on the development of platinum operations in both countries. PTM holds significant mineral rights in the Northern and Western Limbs of the Bushveld Igneous Complex of South Africa including a large scale joint venture with Anglo Platinum 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 a total inferred resource of 4.7 million ounces of platinum, palladium, rhodium, and gold with additional areas under drilling investigation.
PTM is a large mineral rights holder in the area surrounding Canada''s only primary platinum and palladium mine near Thunder Bay, Ontario.
For US investors: SEC Form 20F, File No. 0-30306
On behalf of the Board of
Platinum Group Metals Ltd.
"R. Michael Jones"
President and Director
For further information contact:
R. Michael Jones, President
John Foulkes, Manager Corporate Development or
Erin Airton, Manager of Communications/Strategic Planning
Platinum Group Metals Ltd., Vancouver
Tel: (604) 899-5450 / Toll Free: (866) 899-5450 Larry Roth
Roth Investor Relations, NJ
Tel: (732) 792-2200
The TSX Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management. There can be no assurance that any of the assumptions in the resource calculation will be supported by a Feasibility Study or will come to pass. Data is incomplete and considerable additional work will be required to complete further evaluation including but not limited to drilling, engineering and socio-economic studies and investment. No firm quotes for costs have been received. The legal right to mine the project discussed has not been confirmed or applied for and the process for such application is new in South Africa and untested. The potential capital cost of the project is beyond the current means of the Company and there can be no assurance that financing for further work will be available.
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. The US Securities and Exchange Commission does not recognize the reporting of Inferred Resources. These resources are reported under Canadian National Instrument 43-101 and have a great amount of uncertainty and risk as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of Inferred Resources will ever be upgraded to a higher category. Under Canadian Rules estimates of Inferred Mineral Resources may not form the sole basis of feasibility studies or pre-feasibility studies. US INVESTORS ARE CAUTIONED NOT TO ASSUME THAT PART OR ALL OF AN INFERRED RESOURCE EXISTS, OR ARE ECONOMICALLY OR LEGALLY MINEABLE.