African Platinum (Afplat) says that its plans are on course to establish a site in western South Africa.

The Leeuwkop project has demanded considerable financial investment, but the firm is confident it can deliver a viable facility.

Announcing its interim results for the six month period ended September 30th, the pgm miner said it had "more than sufficient" funds to move forward.

A bankable feasibility study is now being produced. Rand Merchant Bank (RMB) is providing financial advice and SRK Consulting is providing engineering expertise.

The results of the surveys are said to be encouraging so far. Charles Howard, non-executive chairman of APP, reported that the seismic activity of the site is "remarkably consistent" and noted the "excellent quality of the ground".

He also said that heavy investment in the project accounted for the £4.1 million annual expenditure.

"The year-to-date loss is in line with expectations and is typical of a mining company at this stage of its development," he said.

Afplat, formerly known as South African Resources , was listed on the London Stock Exchange's Alternative Investment Market AIM in 2002. The Leeuwkop is the company's flagship project and is a joint venture with Bakwena Ba-Ga Magopa tribe. It has been running since July 2005.


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