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MEI Online: Plant Operation News: Africa: February 2nd 2007


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:: New Mills Ordered for the Smokey Hills PGM Project

Platinum Australia Limited is pleased to advise it has placed orders for two 1400 kW ball mills required for the Smokey Hills PGM Project processing plant. The order has been placed with Outokumpu Technology.

PLA Managing Director John Lewins said: "The placing of the order for these mills marks an exciting transition for the Smokey Hills Project from evaluation to development. PLA are extremely pleased that not only is the delivery period for the mills shorter than that envisaged in the Feasibility Study but the cost of the mills at just over US$3 million is below that estimated in the Feasibility Study."

The Smokey Hills PGM Project is located on the eastern limb of the Bushveld Complex in the Limpopo Province, 300 kilometres north of Johannesburg.

The Company envisages commencing operations at Smokey Hills initially as an open cut and then progressing to a shallow underground mine. During the initial phase while the plant is under construction PLA proposes to mine ore for toll treatment through a nearby plant to generate early cash flow. This phase would last for approximately 12 months after which ore would be treated through the on-site plant at a rate of 720,000 tonnes per annum and producing approximately 95,000 ozs 4E PGM (Platinum + Palladium + Rhodium + Gold) in a flotation concentrate. This would be toll treated or sold to any one of a number of smelters in South Africa, the nearest of which is less than 100 kilometres distant.

Dependent on the timing of the issuing of the necessary permits PLA proposes to commence construction and mining operations in early 2007 with plant commissioning occurring some 12 months later.




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