Gone platinum
Anooraq Resources Corporation is poised to realise its long-term ambition to become a leading platinum group metals producer in South Africa through acquisitions and organic growth.
Platinum is the most significant of six closely related elements, the others being palladium, rhodium, iridium, ruthenium and osmium, which together are known as the platinum group metals or PGM.
The richest PGM bearing area in the world, the Bushveld Complex in the Limpopo Province of South Africa, was formed around two billion years ago, when vast quantities of molten rock were brought to the surface through long vertical cracks in the earth's crust, resulting in the formation of a structure rather like a layered cake consisting of distinct rock strata, including three PGM-bearing layers, referred to as reefs.
The complex comprises an eastern and western lobe, with a further northern extension, The ore bodies within it are known as the Upper Group 2 (UG2) Reef containing up to 43.5 per cent chromite, and the platinum-bearing horizons the Merensky Reef, and the Platreef.
Anooraq Resources Corporation is a platinum group metals resources company, primarily located in South Africa, with ambitions to become a leading PGM producer. Anooraq was actually incorporated in 1983 in the Province of British Columbia, Canada, and its exploration activities were centred on Mexico from 1996 to 1999, when it decided to concentrate on South Africa. Plateau Resources (Pty) Ltd, was formed as its wholly owned South African subsidiary, to hold the legal rights to its mineral interests.
In September 2004, Anooraq acquired an interest in the Ga-Phasha PGM Project on the north-eastern limb of the Bushveld Complex, at the time a 50/50 joint venture with Rustenburg Platinum Mines, which is itself a wholly owned subsidiary of Anglo Platinum. The company also has a joint venture interest with another wholly owned subsidiary of Anglo Platinum in Boikganthso, a large, near-surface PGM deposit within the Plat Reef horizon which it discovered in early 2000. In 2002 Plateau Resources also completed an agreement with Rustenburg Platinum Mines (RPM) for the right to acquire up to an 80 per cent interest in twelve new PGM farms located on the northern limb of the Bushveld Complex, known as the Kwanda JV.
But the big news from Anooraq this year is the acquisition from Anglo Platinum of a 51 per cent interest in the Lebowa Platinum Mine in the northern part of the eastern limb of the Bushveld Complex, which took effect on 1 July 2009. Philip Kotze, president and chief executive officer of Anooraq, commented at the time: "We are delighted that this transaction has been concluded. We view it as the first step in the realisation of our primary strategic objective to become a PGM producing company. As Anooraq now controls the third largest PGM resource base in South Africa, with a combination of high quality exploration, development and production mineral properties, the company has a very solid base from which to grow its production. I would like to thank all of the parties who have worked so hard to ensure that this transaction was completed successfully."
At the same time the company also acquired an additional 1 per cent of the Ga-Phasha, Boikgantsho and Kwanda projects, giving it 51 per cent ownership of all its interests in the region in a transaction worth 2.6 billion rand ($390 million), with Anglo Platinum retaining 49 per cent.
On October 1 this year, Anooraq announced a change of name for the Lebowa Platinum Mine to Bokoni Platinum Mine, to reflect its identity as an African company, and recognise the significant interest that the communities surrounding the mine have in it. The name, selected through a consultative process, means ÔÇ£People of the NorthÔÇØ.
ÔÇ£Our short time as operators of the mine has reinforced our view that there is significant potential for Bokoni to become one of the leading, long-term PGMs producers of the future,ÔÇØ said Kotze. ÔÇ£The name change signifies not only a change in culture, but also the fundamental entrepreneurial approach that we have adopted.ÔÇØ
Bokoni mine comprises a four-shaft complex, from which Anooraq Resources expects output to increase significantly in the near future, with the scale of mining operations having been increased to reflect the quality of the mineral deposits. The Middelpunt Hill UG2 and Brakfontein Merensky expansions will increase production to about 430,000 ounces of 4E (the sum of platinum, palladium, rhodium and gold grades in grammes per tonne), including 200,000 ounces of platinum, by 2012.
The Ga-Phasha project is also situated on the north-eastern limb of the Bushveld Complex, next to Bokoni, and is at a pre-feasibility stage of development. Ga-Phasha has significant PGM mineral resources outlined in the Merensky and UG2 reefs that are open to further expansion.
The Boikgantsho project, located on the northern limb of the Bushveld Complex, is at the exploration stage, with indicated resources in the Plat Reef horizon of 176.6 million tons, containing 7.7 million ounces at an average grade of 1.35 g/t. Also situated on the northern limb of the Bushveld Complex, the Kwanda project is at a very early stage of development and does not have mineral reserves or resources as yet.
Anooraq's objective is to become a significant "mine to market" PGM company with a substantial and diversified PGM asset base including production, development and exploration assets. The Lebowa acquisition is the first stage of advancing the company's PGM production strategy and has resulted in the company controlling refined production of 147,600 ounces of platinum, palladium, rhodium and gold (based on 2008 production at Lebowa from 1.1 million tonnes of ore milled) and a significant mineral resource base. Management will therefore be investing time, energy and resources in focusing on improving operating efficiencies at Lebowa/Bokoni from now on.
With its stock listed in Toronto, New York and Johannesburg, Anooraq is well positioned for growth in a dynamic environment through access to international and South African capital markets and projects that are located in the worldÔÇÖs premier PGM region.
