Wesizwe to spend R210m on exploration, studies this year

Platinum exploration company Wesizwe expects to spend R210-million on exploration in 2007, the company said on Tuesday.

In a commentary to the firm’s annual results for 2006, CE Michael Solomon said that the R210-million would be used to take the company’s Pilanesberg project through to bankable feasibility study stage, as well as for the exploration of other properties for which Wesizwe has been or should be granted the prospecting permits.

The figure included the costs of a three-dimensional geoseismic survey and the bankable feasibility study itself, which was commissioned after a prefeasibility study indicated that the project would be economically viable, and is scheduled for completion in the first quarter of 2008.

The expenditure will be financed from Wesizwe’s balance book, after the company conducted a number of private placement capital raisings in 2006.

“The funds received as a result [of the capital raisings] have placed Wesizwe in a strong position to see the project through to the completion of the bankable feasibility study,” Solomon said.

The company narrowed its loss for the 12 months ended December 31, 2006, to R19,8 million, compared with a loss of R32,1-million in 2005.

Exploration and evaluation expenses for the year amounted to R38,2-million, compared with R25,5-million in 2005.

The Pilansberg project refers to Wesizwe’s portfolio of exploration assets located on the western limb of the Bushveld Igneous Complex, comprising Ledig 909JQ, and portions of the farms Frischgewaagd 96JQ, Mimosa 81JQ and Zandrivierspoort 210JP, situated near Rustenburg.

Wesizwe said last week that capital construction the complex was expected to start in the fourth quarter of 2008 after the prefeasibility study on the Frisch-Ledig complex had confirmed the economic viability of developing an underground mine, producing 180 000t/m 4E as an attractive prospect because of its grade, prill split and relatively shallow depth.

Capital expenditure for the mine's development was estimated at R3,59-billion, with peak cost funding of R866-million in year six (2013).

Shares in Wesizwe closed 7,69% higher on Tuesday, at R10,50 a share.

Source : www.miningweekly.co.za