Platinum Group Metals is assessing a smaller initial development for the Waterberg platinum-group-metals project in South Africa, potentially starting with the higher-grade T-Zone before expanding into the larger F-Central deposit outlined in the company’s 2024 feasibility study. The TSX- and NYSE American-listed company has approved an initial study budget of R27.4 million, approximately US$1.69 million, with a further R22.69 million expected to be included in the following financial year’s budget.
The study is being supported by Stantec, DRA South Africa and Fraser McGill. Metallurgical drilling is also under way, with 600–800 kilograms of material being collected for conventional flotation and Jameson Cell testing.
T-Zone provides higher-grade starting point
The proposed first-stage development would focus on the T-Zone, where proven and probable reserves average 3.84 grams per tonne of platinum, palladium, rhodium and gold. That compares with an average grade of 2.68 grams per tonne for the larger F-Central deposit. Gold accounts for approximately 19 per cent of T-Zone 4E metal content, compared with 5 per cent at F-Central.
The initial mine configuration could postpone expenditure on permanent power infrastructure, paste backfill, higher-capacity milling facilities and underground conveyor systems. Under the proposed sequence, ore would initially be transported to surface by truck, with operating cash flow potentially supporting subsequent development of F-Central.
Japanese ownership remains part of project structure
Waterberg’s ownership includes 37.42 per cent held directly by Platinum Group Metals, 26 per cent by Mnombo, 21.95 per cent by a Japanese vehicle owned by JOGMEC and Hanwa, and 14.63 per cent by Implats. Platinum Group Metals also holds an indirect interest through its 49.9 per cent ownership of Mnombo.
Implats has not fully met its cash calls since early 2024. Its interest has consequently declined by approximately 0.37 percentage points, while Platinum Group Metals funded the shortfall. That has increased Platinum Group Metals’ direct interest but also left it responsible for a larger proportion of current project expenditure.
Equity funding supports studies and early work
Platinum Group Metals raised US$2.01 million during the latest quarter through its new at-the-market financing programme. The company retains authority to issue up to US$60 million of equity through December, providing funding capacity for ongoing studies and early development work while exposing existing shareholders to further dilution before full construction financing is secured.
Saudi processing option under review
The company is also examining Saudi Arabia as a potential location for processing. Any export of Waterberg concentrate or matte to Saudi Arabia would require approval from South African authorities. South Africa has expressed a preference for domestic beneficiation, and Platinum Group Metals is therefore also evaluating partnerships with smaller furnace operators within the country. The T-Zone study is intended to assess an initial development that requires less capital while bringing the higher-grade, more gold-rich material into production before committing to the larger F-Central expansion and its associated processing requirements.
