VANCOUVER, B.C., Jan. 24, 2003 (PRIMEZONE) -- Platinum Group Metals Ltd. (TSX Venture Exchange:PTM) is pleased to announce the commencement of drilling on the Elandsfontein property immediately adjoining Anglo Platinum's Bafokeng Rasimone mine. Initial drilling is targeted on the projected extension of the UG2 reef, which was earlier mined up to the property boundary by Anglo American Platinum. The PTM drill program will consist of several lines of short drill holes ranging from 10 to 50 meters in depth. The objective of the program is to outline a near-surface open pittable resource. The program will consist of up to 35 holes totaling approximately 1,050 metres. Further drilling is planned to target UG2 and Merensky reef potential at depth. The projected strike length of the favorable stratigraphy on the property is approximately 1,200 metres.
PTM has an option agreement to purchase 100% of the mineral rights of portions of Elandsfontein under terms announced December 16, 2002.
The Company also announces the successful acquisition of an option to purchase a 50% interest in two portions of Onderstepoort 98JQ property (131 hectares) and 100% of one portion of 64 hectares for total consideration of 3,562,000 Rand (approximately C$669,300) payable over three years. Prospecting fees of R62,000 (C$11,700) are due over the three years of the agreement. The property interest may be purchased by the Company at any time within three years for 1 million Rand (C$188,000) plus a second payment of 2.5 million Rand (C$470,000) due two years after the exercise of the purchase right by the Company. Onderstepoort is located 4 km northwest of Elandsfontein.
PTM now holds options to purchase mineral rights on 3 properties, Elandsfontein, Onderstepoort, and Ledig in the Western Bushveld Complex area totaling 1914 hectares (1422 ha Ledig, 297 ha Elandsfontein, 195ha Onderstepoort).
The Company also reports that a planned $500,000 private placement announced on December 23, 2002, and set to close on January 15, 2003, did not close and has now been cancelled. The placement was to be taken by Africa Wide Investment Holdings Pty Ltd., pending financing and banking approvals for the placement. PTM was unable to hold the window of participation open beyond January 15, 2003 deadline.
PTM is based in Vancouver BC, Canada and has active exploration programs in Canada and South Africa. PTM is a significant mineral rights holder in the northern Bushveld and is planning to continue its acquisition of mineral rights in South Africa and the Bushveld Complex. The Company is the largest mineral rights holders in the area surrounding Canada's only PGE mine near Thunder Bay, Ontario and has an active drilling joint venture with Anglo Platinum near Sudbury, Ontario. For further information contact:
R. Michael Jones, President Platinum Group Metals Ltd. Tel: (604) 899-5450 Jason Leikam
Defero Corporate Communications Inc. Tel: (604) 734-1295 Larry Roth Roth Investor Relations Tel: (732) 792-2200
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management. Note to U.S. Investors: Investors are urged to consider closely the disclosure in our Form 20F, File No. 0-30306, available at our office: Suite 800 - 409 Granville Street, Vancouver BC, Canada, V6C 1T2 or from the SEC: 1(800) SEC-0330.