/NOT FOR DISSEMINATION IN THE
UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/
Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, Feb. 18, 2020 /CNW/ - Eastern Platinum Limited
(collectively called "Eastplats" or the
"Company") is pleased to report that it has refurbished
the small-scale platinum group metals ("PGM") Circuit D
(previously the scavenger plant circuit) ("PGM Scavenger
Circuit") and has successfully produced PGM concentrate. The
Company is utilizing the feed, following the recovery of Chrome
concentrate, directly from the Retreatment Project located at the
Company's Crocodile River Mine in South
Africa ("CRM").
The PGM Scavenger Circuit is able to process 40,000 tons of feed
per month and the construction costs were less than US$150,000, as the Company utilized significant
existing infrastructure that was maintained on care and maintenance
at CRM.
Diana Hu, President and CEO of
the Company said: "The team is very pleased with this successful
start. This is the first step in the Company's full-scale
assessment of the PGM recoverability of the tailings resource and
provides further revenue opportunities for Eastplats. The Company
will continue to move forward with its assessment of the larger PGM
recoverability opportunities in relation to the tailings
resource."
Operational Update of the Retreatment Project
As previously disclosed, on March 1,
2018, the Company entered into an agreement (the
"Framework Agreement") with Union Goal Offshore Solution
Limited ("Union Goal") relating to the construction,
re-mining and processing of the tailing resource and offtake of
Chrome concentrate from Barplats Mines (Pty) Limited tailings
facility (the "Retreatment Project") located at CRM.
During 2019, Eastplats has produced 598,034 tons of Chrome
concentrate from the Retreatment Project, with an average grade of
Cr2O3 at 38.6%. The production in Q4 2019 was 214,828 tons, making
it the Company's best production quarter to date.
During January 2020, Eastplats
produced an additional 101,606 tons of Chrome concentrate from the
Retreatment Project, which is the Company's largest monthly
production to date.
With the goal to further optimize and increase the Chrome
recovery of the Retreatment Project, Eastplats has determined that
it will invest approximately US$6
million in additional equipment, including installation, to
enhance Chrome concentrate recovery. The financing of these costs
has been agreed to in principal with Union Goal on similar loan
terms to those contained in the Framework Agreement. The Company
will provide an update as soon as such amendments to the Framework
Agreement and the related agreements are entered
into.
Cautionary Statement Regarding Forward-Looking
Information
This press release contains "forward-looking statements" or
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of
applicable securities legislation. Such forward-looking
statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the Company. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "will", "plan",
"intends", "may", "will", "could", "expects", "anticipates" and
similar expressions. Further disclosure of the risks and
uncertainties facing the Company and other forward-looking
statements are discussed in the Company's most recent Management
Discussion and Analysis and Annual Information Form available under
the Company's profile on www.sedar.com.
In particular, this press release contains forward-looking
statements pertaining to: the processing capacity and forecast of
operations of the PGM Circuit; the ability of the Company to obtain
future revenue from the PGM Circuit; future recoverability
opportunities; forecast of operational activity of the Retreatment
Project; the ability of the Company to obtain further financing
from Union Goal or otherwise, or achieve further optimization of
the Retreatment Project. These forward-looking statements are based
on assumptions made by and information currently available to the
Company. Although management considers these assumptions to
be reasonable based on information currently available to it, they
may prove to be incorrect. By their very nature,
forward-looking statements involve inherent risks and uncertainties
and readers are cautioned not to place undue reliance on these
statements as a number of factors could cause actual results to
differ materially from the beliefs, plans, objectives,
expectations, estimates and intentions expressed in such
forward-looking statements. These factors include, but are
not limited to, unanticipated problems that may arise in our
production processes, commodity prices, lower than expected grades
and quantities of resources, need for additional funding and
availability of such additional funding on acceptable terms,
economic conditions, currency fluctuations, competition and
regulations, legal proceedings and risks related to operations in
foreign countries.
All forward-looking statements in this press release are
expressly qualified in their entirety by this cautionary statement,
the "Cautionary Statement on Forward-Looking Information"
section contained in the Company's most recent Management's
Discussion and Analysis available under the Company's profile on
www.sedar.com. The forward-looking statements in this press
release are made as of the date they are given and, except as
required by applicable securities laws, the Company disclaims any
intention or obligation, and does not undertake, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein.
SOURCE Eastern Platinum Limited
