As power supply to South African mines remains uncertain, Platinum Group Metals Ltd believes its first 4E project in South Africa has a big advantage because its high grade ounces are in shallow ground.

Chief Executive Officer of Platinum Group Metals Ltd, Michael Jones said that the project had entered the platinum investment game because of South Africa's limited power supply.

Speaking to mineweb.com at the Mining Indaba in Cape Town, Mr Jones said that because Eskom could not guarantee a power supply in its bankable feasibility the company was designing the project to be able to advance to feasibility without power grid supply.

Platinum Group Metals Ltd is planning to use and develop a third of power required for deep level platinum projects with a generator, or by burning coal.

Project 1 is unusual because production can start only 80 metres below the ground and extends 650 metres below the surface meaning platinum could be mined at a low Mw/ounce.

"Not all ounces are created equal in the platinum mining industry, the measure of market cap per ounce does not apply in this case," Mr Jones said.

Sources:

High-grade shallow platinum ounces make PTM competitive, 05/02/08
http://www.mineweb.com/mineweb/view/mineweb/en/page35?oid=46208&sn=Detail

Ÿ Adfero Ltd