Drilling Report

Messina Platinum First Quarter Development Report

 

    'Project on Track to Achieve Production Targets'

    Shares Issued and Outstanding: 61,593,793

    TSX: SUF

    AIM: SRE

 

    TORONTO, May 15 /CNW/ - SouthernEra Resources reported today that the

Company's subsidiary, Messina Platinum, is on track to achieve its 2003

production build-up targets of 40,000 tonnes per month by the end of June and

80,000 tonnes per month by the end of September.

    During the first quarter, Messina's now fully commissioned Main Shaft

hoisted 156,000 tonnes, of which 81,549 were waste tonnes and 74,454 were reef

tonnes from both production and development levels. The first quarter's

average fully diluted head grade of 4.08 grams per tonne compared favorably

with the modeled grade from these areas. The average grade for the month of

March improved to 4.41 grams per tonne, which is above the modeled grade.

    Production during the quarter came from between the 150 and 200-meter

levels. Development focused on the 275 and 350-meter levels and is progressing

well. Conventional sub-level longhole stoping on the Merensky Reef has

commenced and is now contributing to the production build-up. Production

between the 200/275-meter and 275/350-meter levels commences during the

current quarter.

    Messina's 90,000 tonnes per month Main Concentrator Plant is performing

exceptionally well. During the first quarter recoveries as high as 88 percent

were achieved, with the average for the period being 86.6 percent. This is

well above the 79 percent projected in the 2000 Feasibility Study. Although

still under development, Messina produced a total of 9,213 ounces of 3PGE's

plus gold, 60 tonnes of nickel and 47.7 tonnes of copper during the quarter.

Of significant benefit to Messina are the low levels of chrome contamination

being achieved in final concentrate, which for the quarter were well below

1 percent and are continuing to decline.

    Capital expenditure at Messina during the quarter totaled $2.9m. Costs

continue to be capitalised during this development period.

    Commenting on the progress at Messina, SouthernEra's President and CEO

Patrick Evans said: 'The satisfactory progress of development at Messina gives

us considerable confidence that the project is on track to achieve its

published build-up targets. This progress has been achieved against the

backdrop of a commendable safety record. Our safety management has improved

dramatically over the past year with Messina recording 366,678 fatality free

shifts by the end of the first quarter.'

    Messinanow employs over 1,000 people. A further 620 contractors remain

on site to support the continuing development. Reflecting the sound labour

relations at Messina, a new wage agreement was concluded at the end of January

in terms of which Messina settled to pay an inflation-linked increase to its

employees. Mr. Evans stated: 'The early settlement of the wage negotiations at

Messina has removed the risk of a dispute with our unionised employees at a

time when the rest of the platinum and gold industry in South Africa has yet

to commence wage negotiations.'

    SouthernEra Resources Limited expects to be issuing the Company's first

quarter results during the course of next week.

 

    SouthernEra Resources is an independent producer of platinum group metals

and diamonds. The company also has an extensive PGM 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: PLEASE CONTACT: 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. SRE)