Drilling Report

SouthernEra Adds 7.8 Million Ounces of PGMs to Resource Base

 

    Company Now Controls More than 24 Million Ounces of PGMs

    Shares Issued and Outstanding: 51,580,800

    TSX: SUF

    AIM: SRE

 

    TORONTO, Aug. 28 /CNW/ - SouthernEra Resources Limited is pleased to

announce the results of an initial evaluation of the three new platinum

properties - collectively known as the Dwaalkop properties - awarded recently

to SouthernEra and its 50 percent joint venture partner Mvelaphanda Resources.

The evaluation has resulted in a resource declaration of 7.8 million ounces of

5 platinum group metals plus gold (5PGM+Au) of which 3.2 million ounces are in

the Indicated category.

    This resource was independently verified in accordance with South

Africa's SAMREC Code for the reporting of mineral reserves and resources,

which conforms to the requirements of Canada's National Policy Instrument  

43-101 and the equivalent United Kingdom code for reserves and resource

classification.

    The three properties awarded to the SouthernEra joint venture were

Rooibokbult 121 KS, Turfpan 122 KS and Dwaalkop 455 KS (see SouthernEra's news

release dated August 8, 2002 and map that can be viewed at

http://files.newswire.ca/248/dwaalkop.doc). These properties contain the

Merensky and UG2 reefs between the Phase 1 (Voorspoed) and Phase 2 (Doornvlei)

PGM projects currently being developed by Messina Platinum, SouthernEra's

70.4% owned subsidiary.

    SouthernEra President and CEO Patrick Evans noted: 'The Dwaalkop

properties bridge the gap between our Phase 1 and Phase 2 projects at Messina,

creating the opportunity for one integrated mining project with production

potential of more than 500,000 ounces of PGMs per year. After deducting

partner and minority interests, SouthernEra now owns for its own account

nearly 16 million ounces of PGMs. This additional resource takes us another

step toward establishing SouthernEra as one of the world's leading, low cost

producers of platinum group metals. We are also proud to have Mvelaphanda, a

well recognized black empowerment group, as a fully participating partner in

the development of the Dwaalkop properties'.

    The current Dwaalkop evaluation was based on 24 drill intersections of

the UG2 reef and 33 drill intersections of the Merensky reef to a maximum

depth of 778 metres. The properties' previous owner, Anglo Platinum, conducted

this drilling. The results of the resource evaluation are as follows:

 

 

    ---------------------------------------------------------------------

                      Measured and Indicated           Inferred

 

                     Tonnes   Grade  Ounces     Tonnes   Grade   Ounces

                     (000's)  (g/t)  (000's)    (000's)  (g/t)   (000's)

    ---------------

    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    4,688

    ---------------------------------------------------------------------

 

    The resources have been separately calculated for the Merensky and UG2

reefs using the histogram methodology employed for the adjoining Phase 1

(Doornvlei) and Phase 2 (Voorspoed) properties. The same mining marker

horizons for sampling and mining width were used for the new properties as for

Phase 1 and Phase 2: the upper 1 to 3 millimetre thick Chromitite stringer in

the Merensky Reef and the base of the UG2 Chromitite Layer. In addition,

losses due to potholing and other geological features were estimated at 25

percent.

    The assayed values for 3PGM+Au were adjusted based on 5PGM+Au splits

determined by the test work on the adjacent Phase 1 and Phase 2 properties.

Average 5PGM+Au values for all representative Merensky and UG2 intersections

were calculated for each 1- centimetre interval above and below each mining

marker. Grade distribution histograms were determined for each reef. The

5PGM+Au grades were optimised for expected stoping widths. Dilution factors

were also incorporated into the resource estimation. The 5PGM+Au splits are

indicated below.

 

    -------------------------------------------------------------------------

    Reef             Pt     Pd     Rh    Ir    Ru     Au     Pt: Pd   Pt: Rh

    -------------------------------------------------------------------------

    Merensky         51.5%  29.0%  3.8%  1.5%  7.7%   6.5%   1.78:1   13.6:1

    -------------------------------------------------------------------------

    UG2 Chromitite   39.4%  35.8%  6.6%  3.1%  13.3%  1.8%   1.10:1   5.97:1

    -------------------------------------------------------------------------

 

 

    Professor Danie Krige who is best known for developing the Kriging system

of grade estimation, which bears his name, has independently verified the

resource estimation and assay values. Professor Krige has over 50 years

experience in mine evaluation.

    SouthernEra Resources is a fully integrated international mining company,

which generates projects offering exceptional rates of return. The Company's

focus is on platinum group metals and diamonds. Its operations in South Africa

include the 70.4 percent owned Messina Platinum Mine and the 50 percent owned

Klipspringer Diamond Mine. The common shares of SouthernEra are traded on the

Toronto Stock Exchange (SUF) and the London Stock Exchange's AIM (SRE).

     

    For further information: SouthernEra Resources Limited, Patrick C.

Evans, President and CEO; or Dr. Sally Eyre, Vice President Corporate Affairs,

Telephone: [phone], Fax: [phone], e-mail:

inbox(at)southernera.com

    (SUF.)

 

 

 

 

 

 

 

 


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