Platinum Group Metals Ltd. Reports Consolidated Financial Results for the First Quarter Ended November 30, 2016; Announces Operating Results for the September, October, November and December 2016; Provides Cash Flow Guidance for the First Half of 2017 and Operating Guidance for the Full Year of 2017; Announces Impairment Charge for the First Quarter Ended November 30, 2016
During December 2016, Block 11 began to produce mined tonnes, contributing approximately 21.3% (8,388 tonnes) of mined ore flow to monthly production. Double decline access and through ventilation to Block 11 was completed in late December 2106. Now that infrastructure is coming on line where needed, and with contractor changeover being undertaken, Block 11 is scheduled to contribute approximately 50% (30,000 tonnes) to mined ore flow in January 2017. Mining rates in the second half of January 2017 and in the months ahead are scheduled to continue improving as Block 11 is further developed. During 2017 Block 11 is scheduled to build up to 70-80% of mined ore flow. At full production Block 11 is planned to provide up to 76,000 tonnes of ore a month. Production in September was 1,823 4E ounces, October was 907 4E ounces, in November was 1,237 4E ounces, and December 2016 was 1,509 4E ounces.
The company will be focused on turning the Maseve Mine to positive cash flow in the first half of calendar 2017. Development to other blocks near Block 11 with good grade thickness is scheduled to continue during 2017. Twelve-month aggregate production guidance for calendar 2017 is modelled at 100,000 to 120,000 4E ounces. Prior production guidance should not be relied upon.
For the quarter, the company reported impairment charge of $41,371,000.