Aquarius Platinum is to ramp up production at its Everest mine in South Africa by investing $120 million to extend the life of the project.

Production at Everest could rise to 250,000 platinum group metal (pgm) ounces a year from 2017, the company said, noting that this would mark a 25 per cent increase on current levels of around 190,000 oz per annum.

Aquarius, the world's fourth-largest platinum miner, said the expansion would increase the lifespan of the Everest mine from six years to over 30.

The announcement comes after the company's agreement to acquire the Booysendal South mining properties, on land next to the Everest mine in the Bushveld Complex.

Booysendal South will provide Aquarius with roughly 31.1 million pgm ounces, boosting its resources by around a quarter.

The estimated cost of including Booysendal South in the Everest mine plan will be established by further technical study, Aquarius confirmed in a statement.

Aquarius chief executive officer Stuart Murray said: "It is pleasing to note that the significant benefits of the Booysendal South acquisition are becoming increasingly apparent,with preliminary indications that Everest can be extended and expanded with industry?leading capital efficiency."

Meanwhile, Aquarius's wholly?owned subsidiary Ridge Mining (Proprietary) has suspended the funding of the jointly?owned Blue Ridge Platinum Mine following a review of its economic viability amid what the company described as a "persistent low Rand price environment" for pgms.

Aquarius has also agreed to purchase an additional 41.7 per cent stake in Platinum Mile, a tailings retreatment operation near to its Kroondal Mine. This means the company now owns a 91.7 per cent stake in the plant.

Mr Murray remarked: "The decision by Ridge to suspend the funding of Blue Ridge was not an easy one to take, but it was based on the firm belief that it is in the interests of all stakeholders in the mine that it be placed on care and maintenance with immediate effect.

"On a more positive note, I am also very pleased that we have been able to consolidate our ownership of Platinum Mile."

He said that while this is a "small transaction", the deal will "pave the way" to an expanded tailings retreatment arm for Aquarius which could become an important source of low cost pgm ounces.

Sources:

Aquarius to Spend $125 Million Increasing Everest Output to 250,000 Ounces (01/06/11)

Aquarius Platinum gives update on SA assets (01/06/11) 

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