Eastplats Reports Production Results for the Quarter Ended June 30, 2012
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/19/12 -- Eastern Platinum Limited ("Eastplats") (TSX: ELR)(AIM: ELR)(JSE: EPS) reports operating results from the Crocodile River Mine ("CRM") for the quarter ended June 30, 2012 ("Q2 2012").
Production statistics for the current quarter and historical quarters are as follows:
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Quarter ended Increase (decrease)
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Q2 2012 Q2 2012
Production Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, vs. vs.
statistics 2012 2012 2011 2011 2011 Q1 2012 Q2 2011
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Ounces 26,412 24,474 19,854 26,955 20,528 1,938 5,884
produced
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Run-of-mine 257,250 247,538 200,919 265,889 203,166 9,712 54,084
tonnes
hoisted
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Run-of-mine 252,883 235,354 194,532 261,280 201,986 17,529 50,897
tonnes
processed
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Development 2,922 3,117 2,929 3,976 3,562 (195) (640)
(meters)
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On-reef 1,653 1,704 1,591 2,248 2,090 (51) (437)
development
(meters)
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Stoping 40,959 39,857 31,767 40,594 31,828 1,102 9,131
units
(square
meters)
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Head grade 3.99 4.07 4.05 4.08 3.93 (0.09) 0.06
(grams/tonne)
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Concentrator 79% 77% 76% 78% 76% 1% 2%
recovery
from ROM
ore(i)
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Chrome 56,521 74,920 62,791 77,531 64,913 (18,399) (8,392)
dispatched
(tonnes)
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(i) Concentrator recovery has been rounded to the nearest percentage point.
There have been encouraging improvements in production at the Crocodile River Mine (CRM), particularly from the Zandfontein section, during the second quarter of 2012. However, as a result of continued issues facing the industry, the Company has proposed to temporarily suspend stoping at Zandfontein and embark on a 12 to 18 month development program, as described in the Company's press release dated June 12, 2012. At the Maroelabult section, the Company has proposed to continue "on-reef" mining operations, along with the development of major conveyor development ends, with the objective of achieving a sustainable production target of 30,000 tpm.
Should there be a marked improvement in industry conditions in the interim, CRM can react quickly and ramp up production at Zandfontein at any time.
In keeping with the South African Labour Relations Act, CRM management is currently carrying out the required consultation process with potentially affected employees and their representatives to review the need for possible restructuring and the potential implications to staffing levels as a result of the proposed plan.
Following the consultation period and final costing exercise, the Company will be in a position to provide guidance for production for both 2012 and 2013.
The qualified person having reviewed the operating results presented in this press release is Mr. Brian Montpellier, P.Eng.
Eastplats expects to release its full second quarter results on Tuesday, August 14, 2012.
Total shares issued and outstanding: 928,187,807
Cautionary Statement on Forward-Looking Information
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements pertain to the price of PGMs, fluctuations in currency markets (specifically the South African Rand and the U.S. dollar), the future development of the Company's projects, and the Company's plans for its properties. These forward-looking statements are based on certain assumptions by the Company and therefore, readers are cautioned that forward-looking statements are not a guarantee of future performance. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, changes in government legislation, controls, regulations and political developments.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Contacts:
Eastern Platinum Limited
Investor Relations
1-(604)-685-6851
1-(604)-685-6493 (FAX)
info@eastplats.com
www.eastplats.com
Canaccord Genuity Limited, London - NOMAD
Rob Collins
+44 (0) 207 7523 8000
PSG Capital (Pty) Limited - JSE SPONSOR
Johan Fourie
+27 21 887 9602
johanf@psgcapital.com