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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: teevee who wrote (6176)	8/24/2000 5:25:31 PM
From: eyewatch	Read Replies (1) \| Respond to of 7235

Attention Business Editors: Positive Feasibility Study Completed for Klipspringer Diamond Project TORONTO, Aug. 24 /CNW/ - A positive feasibility study on SouthernEra's 100% owned Klipspringer Project located immediately adjacent to its operating Marsfontein Joint Venture diamond mine in South Africa has been delivered by Badger Mining & Consulting (Pty) Ltd., a recognized independent South African mining consulting firm. Based on the positive economics forecast for the project, the Board of Directors of SouthernEra has approved development of a mine, subject to securing suitable project financing. The feasibility study is based on a mineable reserve of 3.6 million tonnes at an average recovered grade of 47 carats per hundred tonnes, valued at US $100 per carat. Total revenue over the 13 year project life is estimated at US $166 million. Total pre-tax net cash flow over the life of the project is forecast at R284 million (US $40.3 million) and after-tax net cash flow at R185 million (US $26.2 million). The internal rate of return for the project is 42.9%, and payback of initial capital is achieved approximately 1.5 years after full production begins. Development of the mine will be through a trackless ramp system. The feasibility study estimates an initial capital investment of R46.6 million (US $6.6 million) will be required over a two-year underground development period to achieve sustainable monthly throughput of 28,000 tonnes. Once full production is reached at the beginning of the third year, the project is expected to generate positive pre-tax net cash flow (including allowances for ongoing underground development) for the next 11 years, averaging R30 million (US $4.3 million) per year. It is envisioned that SouthernEra's existing 50 tonne per hour processing plant will be used exclusively for Klipspringer production. SouthernEra believes that project financing for the Klipspringer project is available within South Africa, and expects to be able to proceed with project development by early 2001. On a related matter, SouthernEra has settled its previously announced strike at the Klipspringer Project, with the new labour agreement not materially affecting the economics of the project. SouthernEra Resources Limited is a diamond mining and exploration company and an emerging platinum group metals producer. The common shares of SouthernEra are traded under the symbol SUF on the Toronto Stock Exchange. %SEDAR: 00004535E -0- 08/24/2000 For further information: SouthernEra Resources Ltd., Rudi P. Fronk, Director, Telephone: (416) 359-9282, Fax: (416) 359-9141, e-mail: inbox@southernera.com This should help the pop