SouthernEra's loss drops to $700,000 in Q3
SouthernEra Resources Ltd SUF
Shares issued 51,828,400 Nov 28 close $6.19
Fri 29 Nov 2002 News Release
Mr. Patrick Evans reports
SOUTHERNERA RELEASES THIRD QUARTER RESULTS
SouthernEra Resources has provided the following highlights from the third
quarter of 2002:
SouthernEra joint venture awarded new platinum properties in South Africa,
7.8 million ounces of platinum group minerals (PGM) added to resource base;
trading in the company's common shares commences on London Stock Exchange's
AIM;
drill program defines 1.44-million-ounce mineral resource at Millennium
platinum;
Camafuca diamond operating joint venture agreement signed;
Yamba Lake diamond project yields encouraging diamond results;
SouthernEra underwrites Messina Ltd. rights offer;
Messina phase 2 feasibility study completed by SRK, upgrading mineral
resource to 6.3 million ounces;
SouthernEra added to S&P/TSX Composite Index; and
Messina platinum commissions phase 1 (Voorspoed) main shaft and
concentrator plant.
Subsequent to Sept. 30, 2002:
additional drilling at Yamba Lake completed;
shaft deepening capital costs reduced by 50 per cent following optimization
study at Messina; phase 1 mine;
Messina rights offer concluded; and
company reports progress at Millennium platinum second phase drilling
program.
Operations update
The company's 70.91-per-cent subsidiary (70.42 per cent at Sept. 30, 2002)
Messina Ltd. and its wholly owned subsidiary Messina Platinum Mines Ltd.,
continued to make good progress in developing the phase 1 mine. Equipping
of the main shaft to 430 metres was concluded, while development and
production at the 150- and 200-metre levels continued through the secondary
shaft.
Following the recently announced optimization study, the conventional shaft
sinking will conclude at the end of November. Development of a decline ramp
system below the 350-metre operating level has commenced following
completion midyear of the design for the implementation of the mechanized
long hole stoping method at the phase 1 mine. By leading with the ramp
development to 730 metres, it is possible to raise bore and slipe the phase
1 shaft system.
As planned, the phase 1 main shaft was commissioned on Aug. 19 and the
construction of the main 90,000-tonne-per-month concentrator plant was
commissioned on Sept. 12.
The focus of activity has now shifted to development on the 275-, 350- and
400-metre levels to support the buildup of production to 80,000 tonnes per
month during the third quarter of 2003 and 120,000 tonnes per month during
the second quarter of 2004.
At the company's 50-per-cent-owned Klipspringer diamond mine, sinking of
the decline was completed during the quarter. Fissure development and
mining is now the focus of activity. In the current quarter, tonnage
throughput was 61,900 tonnes. Average grade in the quarter was 40 carats
per hundred tonnes, yielding 24,900 carats.
The company incurred a net loss for the three months to Sept. 30 of
$700,000 (one cent per share) on revenue of $900,000, compared with a loss
of $800,000 (two cents per share) on revenue of $700,000 in the third
quarter of 2001. Cash flow used in operations for the quarter was
$3-million (six cents per share), compared with a source of $1.6-million
(two cents per share) in the third quarter of 2001.
For the nine months ended Sept. 30, the net loss was $4.3-million (nine
cents per share) versus $3.8-million (12 cents per share) for the
comparable period in 2001. Cash used in operations totalled $4.1-million
(eight cents per share) compared with $800,000 (three cents per share) for
the nine months in 2001.
SouthernEra joint venture awarded new platinum properties in South
Africa: 7.8 million ounces of PGM added to resource base
The award of three new platinum properties (the Dwaalkop properties) to
SouthernEra and its 50-per-cent joint venture partner, Mvelaphanda
Resources, increased the PGM resource base at the Greater Messina to
approximately 25 million ounces. The newly acquired properties contain both
the UG2 and Merensky reefs and are located between phase 1 (Voorspoed) and
phase 2 (Doornvlei) projects currently being developed by Messina Ltd.,
SouthernEra's 70.42-per-cent subsidiary (following the conclusion of the
Messina rights issue, see news in Stockwatch on Nov. 11, 2002, this
interest increased to 70.91 per cent).
Trading in the company's common shares commences on the London Stock
Exchange's AIM
Trading in the company's common shares on the London Stock Exchange's AIM
commenced on Aug. 13, 2002. In support of its application to AIM the
company published an AIM admission document pursuant to the AIM rules of
the London Stock Exchange. The document includes an independent competent
person's report.
1.44-million-ounce mineral resource at Millennium platinum
The initial drilling program at the company's Millennium project in
Mpumalanga, South Africa, successfully intersected the UG2 reef and defined
an inferred resource of 10.03 million tonnes, grading 4.46 grams per tonne
(g/t) (5PGE + Au), containing 1.44 million ounces of precious metals. The
mineral resource defined is restricted to portions 10 and 11 of the farm
Blaauwbank 168 JS only, less than 20 per cent of the prospected area to be
drilled.
Camafuca operating joint venture approved
The council of ministers of Angola approved the operating agreement for
project Camafuca and authorized the formation of the operating company,
Sociedade Mineira do Camafuca Lda (SMC). Following the incorporation of the
operating company and the issuance of the necessary mining licences, it is
anticipated that production at Camafuca could commence during 2003.
Yamba Lake diamond project results
SouthernEra's first drill hole into the Sue kimberlite pipe on the
company's 60-per-cent controlled Yamba Lake project in the Northwest
Territories of Canada intersected 172 metres of kimberlite yielding a
sample of 226.7 kilograms. The sample returned 77 microdiamonds (using a
0.106-millimetre mesh bottom screen) plus 18 macrodiamonds having one
dimension greater than or equal to 0.50 millimetre. Subsequent to the
quarter a further three holes tested the Sue kimberlite pipe. The three
additional drill holes; Y02-09, Y02-10 and Y02-11 yielded sample sizes of
190.95, 147.9 and 151.33 kilograms and returned five, four and six
macrodiamonds respectively, having one dimension greater than or equal to
0.50 millimetre (see news in Stockwatch on Oct. 29, 2002).
SouthernEra underwrites Messina Ltd. rights offer
The Messina Ltd. rights offering consisted of 20 rights for every 100
shares currently in issue. Each right enabled the purchase of one common
share of Messina at a price of 60 rands. A total of 2,592,979 rights were
issued to the shareholders of record of the 12,964,895 Messina shares
issued and outstanding for total proceeds of 155.6 million rands. The
rights offer was concluded subsequent to the quarter and the company's
ownership in Messina increased to 70.91 per cent.
Messina phase 2 feasibility study completed by SRK
The company announced the completion of the bankable feasibility study for
its Messina phase 2 project on the Doornvlei property by SRK Consulting.
The property is 100 per cent owned by Messina, which in turn is 70.91 per
cent owned by SouthernEra Resources Ltd. (70.42 per cent at Sept. 30,
2002). An indicated mineral resource of 6.3 million ounces, grading 5.08
grams per tonne (5PGE + Au) has been defined at Doornvlei. The expected
operating mine life is 23 years with full production of 120,000 tonnes per
month with an annual average production rate of approximately 173,000
ounces of 5PGE + Au.
SouthernEra added to S&P/TSX Composite Index
SouthernEra's admission followed the quarterly S&P/TSX Composite Index
review and the subsequent announcement on Sept. 17 by Standard and Poor's.
The index changes outlined in the announcement occurred after the close of
trading on the Toronto Stock Exchange on Sept. 20, 2002.
Messina platinum commissions phase 1 (Voorspoed) main shaft and 90,000
tonnes per minute concentrator plant
Following cold commissioning, the 90,000-tonne-per-month main concentrator
plant was handed over for hot commissioning on Sept. 12, nine days ahead of
schedule and approximately 12 per cent under budget. Final commissioning
occurred on Sept. 19, 2002. |
