Drilling Report
July 21 2003 - 10:41AM
UK Regulatory
SouthernEra Joint Venture Commences Drilling Program at Phase 3
(Dwaalkop Section) of Greater Messina Platinum Project
Shares Issued and Outstanding: 61,674,459
TSX: SUF
AIM: SRE
TORONTO, July 21 /CNW/ - SouthernEra Resources Limited announced today
that the in-fill drilling program at the 7.8 million ounce Dwaalkop Section
(Phase 3) of the Greater Messina has commenced. This follows the award by
South Africa's Department of Minerals and Energy at the beginning of July of
the Prospecting Permit to the SouthernEra/Mvelaphanda Joint Venture.
The Dwaalkop Section is one of four phases that comprise the Greater
Messina Platinum Project. With two platinum rich reefs striking approximately
20 kilometers, the Greater Messina has a declared resource of 24.38 million
ounces of five platinum group elements and gold (5PGE+Au). This resource has
been declared to a depth of 1,000 meters. Drilling at the Greater Messina to a
depth of 1,550 meters indicates that the reefs are open to depth, although it
will take approximately 30 years to mine the resource to a depth of 1,000
meters.
The current declared resource at the Dwaalkop Section (Phase 3) to 1,000
meters is as per the table below.
-------------------------------------------------------------
Measured and Indicated Inferred
-------------------------------------------------------------
Tonnes Grade Ounces Tonnes Grade Ounces
(000's) 5PGE + Au (000's) (000's) 5PGE + Au (000's)
(g/t) (g/t)
-------------------------------------------------------------------------
Merensky 17,080 3.49 1,916
-------------------------------------------------------------------------
UG2 14,650 6.74 3,175 12,700 6.74 2,752
-------------------------------------------------------------------------
Total 14,650 6.74 3,175 29,780 4.88 4,668
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The in-fill drilling program has been designed in conjunction with SRK
Consulting, with the objective of establishing an indicated resource on the
Merensky and UG2 reefs, to depths of 1,000 meters and 1200 meters,
respectively. This program will be undertaken in strict accordance with the
standards and guidelines of the South African Code for Reporting of Mineral
Resources and Mineral Reserves (SAMREC) and will be conducted under SRK
approved operating standards and procedures.
Through the drilling program, 19 vertical holes will be sunk across the
strike length of 6 kilometers. The holes are expected to intersect the
Merensky reef at depths of 100, 500 and 800 meters, with corresponding
intersections of UG2 reef at depths of 400, 800 and 1,100 meters.
Two deflections are planned from each main reef intersection to provide
representative coverage. All reef intersections will be assayed for three
platinum group elements and gold (3PGE+Au) using the lead collection method
with quality control samples (blank and standard) inserted in a ratio of 1:10.
A further 1:10 sub-set of samples will be analysed for individual platinum
group metal elements using the NiS method.
The priority will be to delineate the shallower portion of the resource
to 500 meters, following which the bankable feasibility study will be
completed. It is estimated that the resource to 500 meters will be completed
by the beginning of the fourth quarter, with the deeper resource completed by
year-end.
At the Phase 1 (Voorspoed Section), the 120,000 tonne per month mine was
commissioned during the fourth quarter of last year. Underground development
to support the 120,000 tonne per month production rate is currently underway,
with the 40,000 tonne per month target having been achieved at the end of the
second quarter. At full production, the Phase 1 mine will produce
approximately 200,000 ounces of 5PGE+Au at a cash margin of approximately $165
per ounce.
At the Phase 2 (Doornvlei Section), a bankable feasibility study was
completed by SRK Consulting in mid-2002. The mining license for Phase 2 was
issued last June. In view of the uniform continuity of the two platinum rich
reefs across the 10.6-kilometer strike of Phases 2 and 3, consideration is
being given to their joint development. A scoping study undertaken by SRK
Consulting recommends this. It is expected that this will be confirmed by the
feasibility study currently underway, which will be completed at the beginning
of 2004.
Based on the Phase 2/3 scoping study, it is anticipated that a 240,000
tonne per month mine will be built to access the combined 15.86 million ounce
resource at these two phases. This should support annual production in excess
of 340,000 ounces of 5PGE+Au for a period of approximately 30 years.
At the Phase 4 (Zebediela Section), a pre-feasibility study is currently
underway to upgrade the 3.17-million ounce inferred resource to the "measured"
category. Following completion of this study at the end of this year, a
bankable feasibility study at Phase 4 will commence in 2004. Once all four
phases are commissioned, the Greater Messina is expected to support annual
production of approximately 700,000 ounces of 5PGE+Au.
SouthernEra Resources is an independent producer of platinum group metals
and diamonds. The company also has an extensive platinum group metal and
diamond exploration program. The common shares are listed on the Toronto Stock
Exchange and the London Stock Exchange's AIM market.
For further information: SouthernEra Resources Limited - Dr. Sally Eyre,
Vice President, Corporate Affairs, Telephone: (416) 359-9282,
Fax: (416) 359-9141, E-mail: inbox(at)southernera.com, www.southernera.com
(SUF. SRE)
END