APP.L Regulatory News (APP)

7 Nov 2006 07:17

African Platinum Plc07 November 2006 African Platinum plcTicker: APPIndex: AIMSector: Platinum and precious metals CPR CONFIRMS KEY FEATURES OF LEEUWKOP FEASIBILITY STUDY Johannesburg, 7 November 2006 - A Competent Persons Report (CPR) completed bySRK Consulting has confirmed the salient features of the Leeuwkop projectDefinitive Feasibility Study (DFS) published earlier this year. It is intended that development of the first phase of the project - ultimatelyintended to become a 300 000 ounce per year 4E (platinum, palladium, rhodium andgold) mining and concentrating operation - will start in the first quarter ofnext year. Preparatory work is already under way at the project site on theWestern Limb of South Africa's Bushveld Complex. The CPR is an independent review of both the DFS and subsequent project specificevents including the recent grant of New Order prospecting rights and theconclusion of a memorandum of understanding regarding a Black EconomicEmpowerment (BEE) agreement with the Bakwena Ba Mogopa traditional community.It will be a key component of the documentation for any project fundraising. The main features of the CPR (the valuation date of which is 1 January 2007)are: • Real capital cost to full production: ZAR2.1 billion • Real operating cost: ZAR206/tonne • Nominal IRR after tax and royalties: 36% • Nominal NPV at a 12% discount: between ZAR3.9 billion and ZAR4.5 billion • Confirmation of no fundamental flaws In the course of completing the CPR, and in consultation with Afplats, SRKadjusted some of the initial input parameters. These adjustments resulted in acapital and operating cost increase of 7% but are offset by higher nominal metalprice assumptions (Platinum US$926/oz, Palladium US$241/oz, Rhodium US$2,107/ozand Gold US$534/oz). The weighted average basket price of US$853/oz used in thereport is still significantly lower than the 2006 Q3 average of US$1,307/oz. Afplats CEO Roy Pitchford said the CPR report provided an authoritative andindependent confirmation of management's high level of confidence in thetechnical and commercial viability of the Leeuwkop project. AFRICAN PLATINUM PLC ENQUIRIES: Chief Executive Investor & Media RelationsRoy Pitchford Kathy du Plessis+27 (0)82 419 2581 +27 (0)11 728 4701+44 (0)77 9390 9985 +27 (0)83 266 5847 (Mobile) info@afplats.com Website: www.afplats.com DISCLAIMER: Investing in all equities, including natural resources-relatedequities, carries risks which should be taken into consideration when making aninvestment. This announcement contains forward-looking statements regardingAfrican Platinum plc, including the development of its mining developmentprojects. Actual results relating to any and all of these subjects may differmaterially from those presented. This information is provided by RNS The company news service from the London Stock Exchange