Mineral Resource Update on the Waterberg Project Located in the Bushveld Igneous Complex, South Africa
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CJM Consulting, South Africa, (Pty) Ltd. MINERAL RESOURCE UPDATE ON THE WATERBERG PROJECT LOCATED IN THE BUSHVELD IGNEOUS COMPLEX, SOUTH AFRICA For PLATINUM GROUP METALS (RSA) (PTY) LTD REPUBLIC OF SOUTH AFRICA REGISTERED COMPANY REGISTRATION NUMBER: 2000/025984/07 A WHOLLY-OWNED SUBSIDIARY OF PLATINUM GROUP METALS LTD. TSX – PTM; NYSE MKT – PLG Author CJ Muller (Director) B.Sc. (Hons)(Geol), Pr. Sci. Nat Report Date: 29 April 2016 Effective Date of Mineral Resources: April 18, 2016 Suite 1 Building 1 Ruimsig Office State 193 Hole-in-One road Ruimsig, South Africa Tel: +27(0)119582909 │ Fax: +27(0)865562774 CJM Consulting, South Africa, (Pty) Ltd. IMPORTANT NOTICE This report includes results for Mineral Resources. The report communicates the updated Mineral Resource estimate for the Waterberg Project. The reader is warned that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This technical report contains forward-looking information within the meaning of Canadian securities laws and forward-looking statements within the meaning of U.S. securities laws ("forward-looking statements"). Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, plans, postulate and similar expressions, or are those, which, by their nature, refer to future events. All statements that are not statements of historical fact are forward-looking statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in market conditions; the nature, quality and quantity of any mineral deposits that may be located; metal prices; other prices and costs; currency exchange rates; the Company's ability to obtain any necessary permits, consents or authorizations required for its activities; the Company's ability to access further funding and produce minerals from its properties successfully or profitably, to continue its projected growth, or to be fully able to implement its business strategies and other risk factors described in the Company's Form 40-F annual report, annual information form and other filings with the SEC and Canadian securities regulators, which may be viewed at www.sec.gov and www.sedar.com, respectively. Cautionary Note to U.S. Investors Estimates of mineralisation and other technical information included or referenced in this technical report have been prepared in accordance with NI 43-101. The terms "mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility CJM Consulting, South Africa, (Pty) Ltd. studies, except in rare cases. Additionally, disclosure of "contained ounces" in a resource is permitted disclosure under Canadian securities laws; however, the SEC normally only permits issuers to report mineralisation that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measurements. Accordingly, information contained or referenced in this technical report containing descriptions of the Company's mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of United States federal securities laws and the rules and regulations thereunder. QUALIFIED PERSON Independent geological qualified person: Mr Charles J Muller (B.Sc. (Hons) Geology) Pri. Sci. Nat. CJM Consulting (Pty) Ltd Mineral Resource Consultants Ruimsig Office Estate 199 Hole-in-one Road Ruimsig Roodepoort 1724 Republic of South Africa Mobile: +27 83 230 8332 Phone: +27 11 958 2899 Fax: +27 11 958 2105 E-mail: [email protected] OPERATING COMPANIES Local operating company: Platinum Group Metals (RSA) (Pty) Ltd 1st Floor, Platinum House 24 Sturdee Avenue CJM Consulting, South Africa, (Pty) Ltd. Rosebank Johannesburg 2196 Republic of South Africa Phone: +27.11.782.2186 Fax: +27.11.447.1000 E-mail: [email protected] Parent and Canadian-resident Company: Platinum Group Metals Limited Suite 788-550 Burrard Street Vancouver, BC Canada V6C 2B5 Phone:1.866.899.5450 e-mail: [email protected] Website: www.platinumgroupmetals.net For technical reports and news releases filed with SEDAR, see www.sedar.com. CJM Consulting, South Africa, (Pty) Ltd. Table of Contents 1 SUMMARY __________________________________________________________ 1 1.1 Introduction _______________________________________________________ 1 1.2 Project Area and Location ___________________________________________ 1 1.3 Waterberg Project __________________________________________________ 1 1.4 Geological Setting, Deposit Type and Mineralisation _______________________ 1 1.5 Project Geology ___________________________________________________ 2 1.6 Exploration Status __________________________________________________ 4 1.7 Sample Preparation ________________________________________________ 4 1.8 Analysis __________________________________________________________ 4 1.9 Drilling ___________________________________________________________ 4 1.10 Quality Control and Quality Assurance __________________________________ 5 1.11 Mineral Resources _________________________________________________ 5 1.12 Interpretation and Conclusions ________________________________________ 8 1.13 Recommendations _________________________________________________ 8 2 Introduction ________________________________________________________ 10 2.1 Issuer __________________________________________________________ 10 2.2 Terms of Reference and Purpose of the Report __________________________ 10 2.3 Sources of Information _____________________________________________ 10 2.4 Involvement of the Qualified Person: Personal Inspection __________________ 11 2.5 Frequently used Acronyms, Abbreviations, Definitions and Units of Measure ___ 11 2.6 Specific Areas of Responsibility ______________________________________ 14 3 Reliance on Other Experts ____________________________________________ 15 4 Property Description and Location _____________________________________ 16 4.1 Property Description and Location ____________________________________ 16 4.2 Mining Tenure ____________________________________________________ 18 4.3 Licence Status ___________________________________________________ 20 4.4 Holdings Structure ________________________________________________ 31 CJM Consulting, South Africa, (Pty) Ltd. 4.4.1 History of the Waterberg JV Project _____________________________________ 31 4.4.2 History of the Waterberg Extension Project ________________________________ 32 4.4.3 Waterberg Project Consolidation ________________________________________ 33 4.5 Royalties and Agreements __________________________________________ 34 4.6 Environmental Liabilities ____________________________________________ 34 4.7 Legal Access_____________________________________________________ 34 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ___ 35 5.1 Access _________________________________________________________ 35 5.2 Climate _________________________________________________________ 35 5.3 Physiography ____________________________________________________ 35 5.4 Local Resources and Infrastructure ___________________________________ 36 6 History ____________________________________________________________ 37 6.1 Waterberg Project _________________________________________________ 37 6.2 Ownership History _________________________________________________ 37 6.3 Exploration History ________________________________________________ 37 6.4 Mineral Resource History ___________________________________________ 38 6.4.1 September 2012 ____________________________________________________ 38 6.4.2 February 2013 ______________________________________________________ 39 6.4.3 September 2013 ____________________________________________________ 40 6.4.4 June 2014 _________________________________________________________ 40 6.4.1 July 2015 __________________________________________________________ 44 6.5 Production History_________________________________________________ 44 7 Geological Setting and Mineralisation __________________________________ 45 7.1 Regional and Local Setting __________________________________________ 45 7.1.1 Bushveld Complex Stratigraphy ________________________________________ 46 7.1.2 Mineralisation ______________________________________________________ 47 7.1.3 The Northern Limb ___________________________________________________ 48 7.2 Waterberg Group /Bushveld Complex Age Relationship