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Johannesburg, Jan 10 (I-Net Bridge) - Junior gold miner Village Main Reef (VIL) has successfully concluded the pre-feasibility study (PFS) of the company's majority owned Lesego Platinum Project, situated near Burgersfort in the Limpopo province.
In consultation with independent consultants DRA, the PFS confirmed that the extraction of the high grade Merensky and UG2 is economically viable at shallower depths from between 700m to 2300m below surface, Village advised on Tuesday.
Previously reported grades have been confirmed at 6.75g/t 3 PGE's + gold over widths of 1.08m for Merensky and 6.52g/t 3PGE's + gold over widths of 1.26m for UG2.
The PFS has met all the criteria set by the Industrial Development Corporation (IDC) enabling Lesego to issue a drawdown notice to the IDC for an amount of R54 million, which will fully fund the proposed Definitive Feasibility Study (DFS).
This final drawdown brings the IDC's total investment in Lesego to R150 million and is its 3rd and final payment for its 23% effective stake in the project.
On the strength of the results of the PFS, the Lesego board has resolved to embark on the completion of the DFS. The DFS phase will include an updated resource from 700m to 350m below surface and increase the indicated and measured resources of the project.
"We are excited to have reached another important milestone on the Lesego Project which continues to show remarkable consistency in grade, width and recoveries. Progressing with the DFS is the next step in unlocking shareholder value from this promising project," commented Chief Financial Officer Marius Saaiman.
