ANNUAL REPORT 2006

P L AT I N U M A U S T R A L I A A N N U A L R E P O R T 2 0 0 6
REVIEW OF COMPANY ACTIVITIES
OVERVIEW
The past year has seen Platinum Australia Limited
(“PLA”) achieve significant progress in its aim of
becoming a substantial mid tier Platinum Group Metal
(PGM) producer.
In South Africa the Company defined a resource of
1 Million oz 4E PGM on the Smokey Hills PGM Project
and completed a Bankable Feasibility Study (“BFS”) on
the Project. The BFS found the project to be extremely
attractive and robust and able to generate returns
in excess of 600% at July 2006 Metal prices and
exchange rates.
Progress on the Kalahari Platinum Project was
hampered by the delays in receiving the new order
Prospecting Right for the project. A limited program of
metallurgical test work was undertaken which indicated
that recoveries of ~80% could be achieved into a
saleable flotation concentrate. In early September 2006
the Prospecting Right was issued and an initial drilling
program of 20,000 metres was commenced almost
immediately thereafter.
In Australia the Company signed a letter of agreement
with Sally Malay Limited (“SMY”) in December 2005
for the establishment of a joint venture covering a
limited amount of the Panton PGM Project. Under this
agreement SMY will fund a BFS to evaluate the mining
of high grade ore from Panton and processing it through
the nearby Sally Malay plant. If the BFS is positive and a
number of other conditions are satisfied, SMY can earn
a 50% interest in the first 1.5 million tonnes of high
grade ore to be mined from the Project.
Figure 1 - Platinum Australia Limited South Africa Projects Location Map.
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