REG - Sylvania Platinum - Results of Updated Mineral Resource Estimates

Sylvania PlatinumAnnouncement

16/02/2024 07:00

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RNS Number : 4183D  Sylvania Platinum Limited  16 February 2024

 

 

 

 

 

16 February 2024

 

 

Sylvania Platinum Limited

("Sylvania", the "Company" or the "Group")

 

 

Results of Updated Mineral Resource Estimates for Northern Limb Mineral Assets

 

 

Sylvania (AIM:SLP), the platinum group metals ("PGM") producer and developer
with assets in South Africa, is pleased to announce the updated Mineral
Resource Estimates ("MRE") for its Volspruit Project located on the Northern
Limb of the Bushveld Complex in South Africa.

 

The results include revised MREs for the Volspruit North and Volspruit South
ore bodies, including for rhodium ("Rh") and ruthenium ("Ru"), both of which
had previously not been assayed. The MRE is in line with the JORC (2012)
Standard as a whole.

 

Highlights

 

Volspruit North

 

·      Volspruit North JORC MRE (Indicated):

o  16.42 million tonnes ("Mt") at a 4E (4E includes platinum ("Pt"),
palladium ("Pd"), Rh and gold ("Au")) grade of 2.52 grams per tonne ("g/t");

o  1.33 million 4E ounces at a grade of 2.52 g/t;

o  21.94 million pounds ("lb") of copper ("Cu") at a grade of 0.07%;

o  61.50 million lb of nickel ("Ni") at a grade of 0.18%;

o  The MRE represents a 10% increase in the indicated tonnage from the
previously reported MRE (October 2022) resulting from a more defined
geological modelling exercise that has also resulted in the 4E grade improving
by 4%; and

o  The addition of Rh estimates has improved the overall grade by
approximately 7%.

 

Volspruit South

·      Volspruit South JORC MRE (Inferred):

o  10.60 Mt at 4E grade of 2.11 g/t;

o  14.83 million lb of Cu at a grade of 0.06%;

o  46.96 million lb of Ni at a grade of 0.20%;

o  This MRE is the first one completed since the mineralised zones have been
redefined and, as expected, it reports approximately a third of the tonnages
at almost double the grades previously reported by Integrated Geological
Solutions (Pty) Ltd ("IGS") in 2012.

 

Next Steps

 

The Company has embarked on a Preliminary Economic Assessment ("PEA") of the
Volspruit Project in order to assess what value the addition of the Volspruit
South resources, and the Rh and Ru resources might add to the overall project.
Metallurgical test work is being undertaken on fresh core that was drilled
during the course of the 2023 calendar year. Based on the results of the
scoping study and metallurgical test work that is expected during Q4 FY2024 a
decision will be made on progressing the project to a pre-feasibility study
phase during FY2025.

 

Jaco Prinsloo, CEO of Sylvania, commented:

"I am pleased to announce the successful completion of the Mineral Resource
Estimate update at our Volspruit Project, facilitated by Earthlab Technical
Division, a South African geological consulting company. The exploration
results align with our strategic goals, emphasising the importance of
exploration assets as a key driver for Sylvania Platinum's growth strategy.

 

"The updated geological model reveals a notable 10% increase in the Volspruit
North MRE compared to the October 2022 publication, accompanied by improved
overall grades. These enhancements result from a more constrained geological
model based on interpreted mineralised zones.

 

"Our commitment to meeting investment and workstream requirements for existing
Mining Rights remains steadfast, with specialist teams actively working on
authorisations, including the Water Use Licence, Environmental Impact
Assessment update, and finalisation of the amended Social and Labour Plan.

 

"The previously declared Measured Resources for Volspruit North were
downgraded to the Indicated category as a result of the short-range
variability between closely spaced boreholes being highlighted during the reef
redefining exercise. This serves to demonstrate that while our understanding
of the resource is improving, we are also able to identify where future
efforts will need to be focussed.  Resources for Volspruit South are
currently categorised as Inferred due to structural complexity and sparse
drilling data.

 

"In conclusion, the updated Mineral Resource Estimates demonstrate the
positive impact of our optimisation efforts at the Volspruit Project. We are
optimistic about the future value these results will bring to our stakeholders
and are committed to further exploration activities in FY2024 to unlock
additional value from our existing mining rights. We anticipate sharing
further updates in the near future."

 

 

Further Information

 

The Volspruit PGM-Ni-Cu Project located within the Northern Limb of the
Bushveld Igneous Complex in South Africa is covered by approved Mining Rights
held by Sylvania.

 

Volspruit Project

 

The Company initiated a Mineral Resource Estimate update with the assistance
of Earthlab Technical Division ("Earthlab"), a mining and exploration
consulting company, at the Volspruit Project. The primary objective was to
apply the revised definition of the mineralised zones to the historic borehole
core to better define the Volspruit North resource estimate and redefine the
Volspruit South resource estimate. Statistical regression techniques were
utilised to estimate the Rh and Ru content of both ore bodies.

 

The newly defined geological model shows an increase of 10% on the previously
published MRE in October 2022 for Volspruit North as well as an improvement of
the overall grades. These improvements are the result of the more constrained
geological model defined by the interpreted mineralised zones. The historical
MRE for Volspruit South was reduced significantly in terms of tonnage,
however, the improvement in the overall grade warrants the remodelling and
highlights the fact that mineralised zones do exist within the larger
low-grade ore body that had previously been modelled.

 

Rh and Ru values were estimated for both ore bodies after statistical analysis
proved a strong relationship between Pt, Pd and Au, and Rh and Ru values. This
allowed for regression methods to be utilised to estimate these missing
values. It should be noted that regression techniques are commonly utilised
and are based on a smaller set of samples that have been analysed for the
missing elements to which a relationship is then established. The improvement
to the overall grades is in line with expectations.

 

We continue to meet the investment and workstream requirements relating to the
permits under the existing Mining Right, with specialist technical teams
currently working on the authorisations. These authorisations include the
Water Use Licence for the mining and on-site processing of the ore, updating
of the Environmental Impact Assessment and the finalisation of the amended
Social and Labour Plan ("SLP") which will update the Local Economic
Development ("LED") project that is included in the Mining Right held by the
Company.

 

Mineral Resource Estimate

 

Tables 1 and 3 show the Volspruit North and Volspruit South mineral resource
tons and grades respectively in g/t of Pt, Pd, Rh, and Au, summed up as 4E
grade, as well as Ru in g/t and Cu and Ni as percentages. The tons and the
metal content are reported on a 100% attributable basis for all the PGMs and
Base Metals (Tables 2 and 4). The tables furthermore divide the tons, ounces,
and contained base metals into two Resource Classifications for Volspruit
North and one Resource Classification for Volspruit South as per the JORC Code
(2012). The categories in decreasing confidence levels are Measured, Indicated
and Inferred categories. No Measured resources have been declared.

 

A significantly large proportion of the 4E oz (93%) of Volspruit North reports
to the Indicated category. The Inferred Mineral Resources are attributed to
faulting resulting in areas of structural complexity and less geological
confidence as well as limited drilling closer to the Nyl River. The previously
declared Measured resources were downgraded to the Indicated category as a
result of short-range variability being observed between the closely spaced
boreholes. This serves to highlight that whilst our understanding of the ore
body continues to improve through these relogging exercises, areas requiring
additional information are being highlighted allowing us to focus future
drilling programmes.

 

At this stage, the entire Volspruit South resource reports to the Inferred
category due to the high structural complexity observed in the area coupled
with sparse drilling data.

Table 1: Volspruit North Mineral Resources and grades at a 100% attributable
basis

 

 Mineral Resource Class  Tonnage (t)  Pt (g/t)  Pd (g/t)  Rh (g/t)  Ru (g/t)  Au (g/t)  4E (g/t)  Cu (g/t)  Ni (g/t)
 Indicated               16,418,975   1.09      1.22      0.16      0.05      0.05      2.52      0.07      0.18
 Inferred                1,225,236    1.07      1.17      0.15      0.05      0.06      2.45      0.07      0.18
 Total                   17,644,211   1.9       1.22      0.16      0.05      0.05      2.52      0.07      0.18

 

 

Table 2: Volspruit North Mineral Resources and metal content at a 100%
attributable basis

 

 Mineral Resource Class  Tonnage(t)  Pt (oz)    Pd (oz)    Rh (oz)      Ru (oz)     Au (oz)     4E (oz)         Cu (lb)       Ni (lb)
 Indicated               16,418,975  576,117    646,494      83,842      26,333      28,447     1,334,900       21,944,617    61,489,452
 Inferred                1,225,236     42,249     46,015       5,949       1,907       2,229         96,442       1,908,803     4,712,494
 Total                   17,644,211  618,366    692,509      89,791      28,240       30,676    1,431,342       23,853,420    66,201,946

 

 

Table 3: Volspruit South Body Mineral Resources and grades at a 100%
attributable basis

 

 Mineral Resource Class  Tonnage (t)  Pt (g/t)  Pd (g/t)  Rh (g/t)  Ru (g/t)  Au (g/t)  4E (g/t)  Cu (g/t)  Ni (g/t)
 Inferred                10,597,928   1.08      0.87      0.11      0.05      0.05      2.11      0.06      0.20
 Total                   10,597,928   1.08      0.87      0.11      0.05      0.05      2.11      0.06      0.20

 

 

Table 4: Volspruit South Mineral Resources and metal content at a 100%
attributable basis

 

 Mineral Resource Class  Tonnage (t)  Pt (oz)  Pd (oz)  Rh (oz)  Ru (oz)  Au (oz)  4E (oz)  Cu (lb)     Ni (lb)
 Inferred                10,597,928   367,832  298,062  37,052   16,851   15,876   718,822  14,829,588  46,964,037
 Total                   10,597,928   367,832  298,062  37,052   16,851   15,876   718,822  14,829,588  46,964,037

 

Notes relevant to all Mineral Resource tables:

·      Rounding of numbers may lead to computational discrepancies;

·      Mineral Resources are reported as in-situ, without any dilution
from immediate hanging wall or footwall waste;

·      A 10% geological loss factor has been applied to the tonnages;

·      A cut-off grade of 1.2g/t (4E) was applied at a sample level; no
cut-off grade was applied at the block model level.

 

 

 
 
 
CONTACT DETAILS

 

 For further information, please contact:
 Jaco Prinsloo CEO Lewanne Carminati CFO   +27 11 673 1171
 Nominated Adviser and Broker
 Liberum Capital Limited                   +44 (0) 20 3100 2000
 Richard Crawley / Scott Mathieson
 Communications
 BlytheRay                                 +44 (0) 20 7138 3205
 Tim Blythe / Megan Ray                    sylvania@BlytheRay.com (mailto:sylvania@BlytheRay.com)

         CORPORATE INFORMATION

 

 Registered and postal address:  Sylvania Platinum Limited
                                 Clarendon House
                                 2 Church Street
                                 Hamilton HM 11
                                 Bermuda

 SA Operations postal address:   PO Box 976
                                 Florida Hills, 1716
                                 South Africa

 

 

          Sylvania Website: www.sylvaniaplatinum.com
(http://www.sylvaniaplatinum.com/)

 

 

About Sylvania Platinum Limited

 

Sylvania Platinum is a lower-cost producer of platinum group metals (PGM)
(platinum, palladium and rhodium) with operations located in South Africa. The
Sylvania Dump Operations (SDO) comprises six chrome beneficiation and PGM
processing plants focusing on the retreatment of PGM-rich chrome tailings
materials from mines in the Bushveld Igneous Complex. The SDO is the largest
PGM producer from chrome tailings re-treatment in the industry. Additionally,
the Thaba JV comprises chrome beneficiation and PGM processing plants, which
will treat a combination of run of mine (ROM) and historical chrome tailings
from the JV partner, adding a full margin chromite concentrate revenue stream.
The Group also holds mining rights for PGM projects in the Northern Limb of
the Bushveld Complex.

 

For more information visit https://www.sylvaniaplatinum.com/
(https://www.sylvaniaplatinum.com/)

 

The information contained within this announcement is deemed by the Company to
constitute inside information for the purposes of Article 7 of Regulation (EU)
no.596/2014 as amended by the Market Abuse (Amendment) (EU Exit) Regulations
2019.

For the purposes of MAR and Article 2 of Commission Implementing Regulation
(EU) 2016/1055, this announcement is being made on behalf of the Company by
Jaco Prinsloo.

In accordance with the AIM Rules - Note for Mining and Oil & Gas
Companies, the information contained in this announcement has been reviewed
and signed off by Mr. Deon du Plessis, a qualified professional Geologist
(Pr.Sci.Nat. - 400050/05) and Fellow with the Geological Society of South
Africa (FGSSA - 963338), who has over 21 years' relevant experience within the
mining sector.

 

 

    ANNEXURE

GLOSSARY OF TERMS - Results of Optimisation Studies for Northern Limb Mineral
Assets The following definitions apply throughout the announcement:

 

                            Mineral Resource Estimate - The process of subjecting known geological

                          evidence and knowledge required for the estimation of Mineral Resources, and
                            must include sampling data of a type, and at spacings, appropriate to the

                          geological, chemical, physical, and mineralogical complexity of the mineral
                            occurrence, for all classifications of Inferred, Indicated and Measured

                          Mineral Resources. A Mineral Resource cannot be estimated in the absence of
                            sampling information. Any adjustment made to the data for the purpose of

                          making the Mineral Resource estimate, for example by cutting or factoring
                            grades, should be clearly stated and described in the Public Report.

 MRE
 3E PGMs                      3E ounces include the precious metal elements platinum, palladium and gold
   4E PGMs                    4E ounces include the precious metal elements platinum, palladium, rhodium
                            and gold
                            A comprehensive technical and economic study of the selected development

                          option for a mineral project that includes appropriately detailed assessments
                            of applicable Modifying Factors together with any other relevant operational

                          factors and detailed financial analysis that are necessary to demonstrate at
                            the time of reporting that extraction is reasonably justified (economically

                          mineable). The results of the study may reasonably serve as the basis for a
                            final decision by a proponent or financial institution to proceed with, or

                          finance, the development of the project. The confidence level of the study
                            will be higher than that of a Pre-Feasibility Study.

 Feasibility Study
                            A geological loss is an area or volume with no reef or ore developed due to

                          disruption by a geological feature. Geological loss is expressed as a
                            percentage by which a Mineral Resource is discounted and is based on the

                          geological condition of an orebody. There are two types termed "Known" and
                            "Unknown" losses. Mineral Resources are discounted by the total geological

                          losses. A Known geological loss is known/expected before mining takes place,
                            and is often indicated by remote sensing, or is the extension of a feature,

                          which has been exposed by current mining activities. These types of geological
                            features are in general occurrences of a linear type of features (examples

                          include faults, dykes, shear zones, and other localised features). Unknown
                            geological losses are generally associated with those features which have not

                          been determined by various

                          geophysical techniques.

 Geoloss
                            An 'Indicated Mineral Resource' is that part of a Mineral Resource for which

                          quantity, grade (or quality), densities, shape and physical characteristics
                            are estimated with sufficient confidence to allow the application of Modifying

                          Factors in sufficient detail to support mine planning and evaluation of the
                            economic viability of the deposit. Geological evidence is derived from

                          adequately detailed and reliable exploration, sampling and testing gathered
                            through appropriate techniques from locations such as outcrops, trenches,

                          pits, workings and drill holes, and is sufficient to assume geological and
                            grade (or quality) continuity between points of observation where data and

                          samples are gathered. An Indicated Mineral Resource has a lower level of
                            confidence than that applying to a Measured Mineral Resource and may only be

                          converted to a Probable Ore Reserve.

 Indicated
                            An 'Inferred Mineral Resource' is that part of a Mineral Resource for which

                          quantity and grade (or quality) are estimated on the basis of limited
                            geological evidence and sampling. Geological evidence is sufficient to imply

                          but not verify geological and grade (or quality) continuity. It is based on
                            exploration, sampling and testing information gathered through appropriate

                          techniques from locations such as outcrops, trenches, pits, workings and drill
                            holes. An Inferred Mineral Resource has a lower level of confidence than that

                          applying to an Indicated Mineral Resource and must not be converted to an Ore
                            Reserve. It is reasonably expected that the majority of Inferred Mineral

                          Resources could be upgraded to Indicated Mineral Resources with continued
                            exploration.

 Inferred
                            Joint Ore Reserves Committee - The Australian Code for Reporting of

                          Exploration Results, Mineral

                          Resources and Ore Reserves ('the JORC Code') is a professional code of
 JORC                       practice that sets minimum standards for Public Reporting of Exploration
                            Results, Mineral Resources and Ore Reserves.
                            A 'Measured Mineral Resource' is that part of a Mineral Resource for which

                          quantity, grade (or quality), densities, shape, and physical characteristics
                            are estimated with confidence sufficient to allow the application of Modifying

                          Factors to support detailed mine planning and final evaluation of the economic
                            viability of the deposit. Geological evidence is derived from detailed and

                          reliable exploration, sampling and testing gathered through appropriate
                            techniques from locations such as outcrops, trenches, pits, workings and drill

                          holes, and is sufficient to confirm geological and grade (or quality)
                            continuity between points of observation where data and samples are gathered.

                          A Measured Mineral Resource has a higher level of confidence than that
                            applying to either an Indicated Mineral Resource or an Inferred Mineral

                          Resource. It may be converted to a Proven Ore Reserve or under certain
                            circumstances to a Probable Ore Reserve.

 Measured
 PGM-Ni-Cu                  Platinum Group Elements, Nickel and Copper
 Resource Classification    Defined as classes or categories as per the JORC Code (2012) in decreasing
                            confidence levels as Measured, Indicated and Inferred.

                 An order of magnitude technical and economic study of the potential viability

               of Mineral Resources. It includes appropriate assessments of realistically
                 assumed Modifying Factors together with any other relevant operational factors

               that are necessary to demonstrate at the time of reporting that progress to a
                 Pre-Feasibility Study can be reasonably justified.

 Scoping Study

 

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