Stillwater Mining Company has given the go-ahead to two mine resource delineation and development projects within the confines of the Stillwater Complex in Montana.

The Graham Creek and Blitz projects are covered by existing permits and can be serviced from mine infrastructure already in place.

According to Stillwater, there is a good chance that the addition of the projects to the company's portfolio will serve to significantly increase its reserves of pgms.

Expectations are that the Graham Creek project could define up to six million additional tons of ore grading on the order of 0.41 in-situ ounces per ton.

Around $8 million will be spent on assessing the potential pgm resource at the site over the next five years.

Meanwhile, past experience suggests the Blitz assessment project could lead to the defining of up to 9.5 million additional tons of resource grading on the order of 0.71 ounces per ton.

Costs associated with the initial development and resource evaluation in the Blitz area are expected to reach around $60 million over the next five or six years.

"Historical surface drilling along the 28-mile extent of the Stillwater Complex confirmed continuous palladium and platinum mineralisation essentially along the full extent of the JM Reef, but extensive portions of the reef still await more detailed delineation," commented Francis R McAllister, Stillwater's Chairman and CEO.

"The team reviewed the historical data and identified several potential resource development projects along the Stillwater Complex, of which the Graham Creek and Blitz projects were considered the most promising."

The news comes soon after Stillwater's takeover of the Marathon pgm/Copper project in Ontario was approved by Marathon shareholders, and Mr McAllister believes the twin announcements will help the company achieve significant growth over the next few years.

Meanwhile, Stillwater officials expect the expansion plans to create as many as 200 new jobs in the Stillwater area by the end of 2011, kulr8.com reports.

Welcoming the move, County Commissioner Dennis Hoyem told the news provider: "It's hard to predict what the impact would be except that it's all good news, and that's how we're looking at it, because that company's health affects so many people."

Sources:



Stillwater Mining Announces Plans for Two Resource Development Projects Along the Stillwater Complex in Montana (17/11/10)



Stillwater May Hire Hundreds (19/11/10)

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