Drilling Report

SouthernEra Subsidiary Messina Platinum Achieves Production Target

 

    Mining License and Prospecting Permits issued for Phases 2 and 3

    Shares Issued and Outstanding: 61,593,793

    TSX: SUF

    AIM: SRE

 

    TORONTO, July 3 /CNW/ - The Board of Directors SouthernEra Resources

Limited announced today that Messina's Phase 1 Mine, which was commissioned

during the third quarter of 2002, has achieved its first production target for

2003. The Phase 1 mine has reported production of 40,015 tonnes for the month

of June. Based on progress year-to-date, Messina Platinum has a high level of

confidence that the next production target of 80,000 tonnes per month will be

achieved by the end of September.

    Production at the Phase 1 mine is now coming from three levels, the 200-

meter, 275-meter and 350-meter levels. Underground development continues, with

the next major project being a decline ramp from the 350-meter level to the

430-meter level. This will support the production build up from 80,000 tonnes

per month to 120,000 tonnes per month by the end of the second quarter of

2004. Final grades will be released together with SouthernEra's second quarter

results once all assays have been completed.

    In addition to achieving its first announced production target, Messina

Platinum also recorded 500,000 fatality-free shifts during June. Messina's

unrelenting focus on safety places the mine amongst the safest underground

platinum mines in South Africa. Mr. Patrick Evans, SouthernEra's President and

CEO stated: 'We are very pleased with the production performance at Messina

Platinum and particularly proud that this has been achieved safely. Although

Messina Platinum is a newly commissioned mine, with a newly trained work

force, our goal of accident free mining is becoming a reality. This is

something our shareholders can be very proud of.'

    SouthernEra is also pleased to report that South Africa's Department of

Minerals and Energy has awarded Messina Platinum a mining license for the 6.3

million ounce Phase 2 (Doornvlei) Section and has awarded the

SouthernEra/Mvelaphanda Joint Venture a Prospecting Permit for the 7.86

million ounce Phase 3 (Dwaalkop) Section. Drilling over the 1.7 million ounce

Voorspoed East Section, which forms part of the Phase 2/3 development of the

Greater Messina, commenced in June and is scheduled for completion during

September. Drilling on Phase 3 (Dwaalkop) Section will commence during July.

    The Phase 2/3 feasibility study is scheduled for completion by the

beginning of 2004, following which development of the new 240,000 tonne per

month mine at Phase 2/3 will commence. Based on a scoping study completed by

SRK Consulting during the fourth quarter of 2002, this new mine is expected to

produce in excess of 340,000 ounces of 5PGE plus gold per annum.

    Phase 4, part of the 20-kilometer strike of the Greater Messina, involves

the development of the western portion called the Zebediela Section. Drilling

as part of the pre-feasibility study on Phase 4 commenced in May and is

progressing well, with intersections of both the Merensky and UG2 reefs. The

purpose of this program is to upgrade the 3.17 million ounce inferred resource

at Phase 4 to a measured and indicated resource. To date, four boreholes have

been drilled, with one hole to a maximum depth of 921 meters. The drilling

program will be completed by year-end, following which a bankable feasibility

study will commence in 2004.

    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: [phone], Fax:

[phone], E-mail: inbox(at)southernera.com, www.southernera.com

    (SUF. SRE)