Platinum Australia Limited

The latest results from the resource definition drilling programme being undertaken by Platinum Australia Limited (ASX: PLA, AIM: PLAA) on the Kalahari Platinum (Kalplats) project in South Africa have extended the mineralisation at both Serpens North and Serpens South deposits. These are two of seven known deposits, together with three other prospects, identified over a 12km strike length of the Stella Layered Intrusive (SLI) structure and outlined to a depth of approximately 150m below surface. All appear to be open at depth and along strike.

This initial 20,000m drilling programme, due to be completed shortly, is designed to update the resource estimate for the Serpens North & South and Sirius deposits and to provide additional information on the extent of the Crater and Crux deposits. An updated resource estimate for these deposits should then be completed by June.

The programme will continue with a second phase of drilling, comprising a further 25,000m and scheduled for completion by October. This will enable an updated resource estimate to be established for the whole Kalplats project, including evaluation of the three known mineralised prospects - Scorpio, Pointer and Tucana.

Commenting today, PLA managing director Mr John Lewins said: "These results continue to confirm our open pit target for the Kalplats project of up to 3m ounces of 3E PGM (platinum, palladium and gold) to a depth of approximately 200m. In addition, the first results from the Sirius deposit confirm those from some of the previous drilling which identified unusually thick reef intersections and possible duplication of the reefs."

Although the 3m ounce target is conceptual and does not imply that a mineral resource has been or will be defined at Kalplats, PLA says that the results from the current drilling programme have significantly increased confidence in the potential of the project to achieve this target.

The Kalplats project, located 330km west of Johannesburg, is a joint venture with African Rainbow Minerals Platinum (ARMplatinum) in which PLA is earning a 49p.c. interest by completing a bankable feasibility study and providing the right for the project to use the patented Panton metallurgical process to treat the ore. The BFS is due to be completed by the end of 2007.

The project currently has indicated and inferred resource of 3.4m ounces 3E PGM, including a high grade component of 1.4m ounces 3E PGM, contained within seven separate deposits over a 12km strike length of the SLI. However, PLA believes there to be significant potential to increase these resources as all the deposits are open at depth and along strike. Geochemical surveys and a high-resolution aeromagnetic survey completed by PLA have also identified a number of additional targets within the SLI for further investigation.

As part of the JV with ARMplatinum, the two companies have applied for a prospecting right covering an area extending approximately 20km to the north and 18km to the south of the Kalplats project area, increasing the total strike length held over the Stella Layered Intrusion to almost 50km. Each company will have a 50p.c. contributing interest in the new area, and PLA will manage exploration which will target extensions of the known "Kalplats style" PGM mineralisation.

Significant results (3E PGM) from the latest drilling include:

Serpens North
8m of 2.40g/t from 50m and 6m of 3.97g/t from 68m in same hole 8m of 1.73g/t from 107m 2m of 2.92g/t from 22m and 5m of 3.51g/t from 39m in same hole 4m of 3.23g/t from 5m 2m of 2.29g/t from 23m, 2m of 4.21g/t from 31m and 4m of 7.17g/t from 39m (including 1m of 14.89g/t) in same hole 3m of 3.88g/t from 48m and 1m of 3.81g/t from 54m in same hole

Serpens South
9m of 2.11g/t from 54m (including 4m of 3.31g/t) and 3m of 2.64g/t from 70m in same hole 4m of 5.80g/t from 30m 3m of 3.92g/t from 153m 2m of 5.44g/t from 73m and 2m of 2.34g/t from 86m in same hole

Crater
4.55m of 4.44g/t from 118m (including 1m of 9.02g/t) 5.52m of 1.73g/t from 153m, 1.72m of 3.53g/t from 160.5m and 8m of 2.83g/t from 166m (including 1m of 8.80g/t) in same hole 3m of 3.47g/t from 78m

Sirius
3m of 2.57g/t from 6m, 3m of 2.52g/t from 16m and 8m of 3.42g/t from 39m (including 1m of 5.36g/t) in same hole

Source : www.mineweb.net