Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: eyewatch who wrote (6686)	9/26/2001 11:22:37 AM
From: Gord Bolton	Respond to of 7235

SouthernEra's Klipspringer Diamond Mine Commences Early Production From New Mine Level More than 47,000 carats of Diamonds Produced by New JV TORONTO, Sept. 26 /CNW/ - SouthernEra Resources Limited reported today that diamond production has commenced from its newly commissioned No. 4 level at its 50% owned Klipspringer Diamond Mine in South Africa, approximately six months ahead of schedule. The Company now estimates that full production will total 33,000 tonnes per month (186,000 carats per year), or approximately 18% above feasibility estimates. SouthernEra's President and CEO, Patrick Evans, said "this achievement once again demonstrates our ability to bring new production online ahead of schedule and within budget. Within the last month we have now accelerated production at both Klipspringer and the Messina Platinum Mine. Last week we also announced the conclusion of the financing for the Messina Platinum Mine. As production at Messina and Klipspringer builds up through the course of next year, SouthernEra will become a leading producer of both platinum group metals and diamonds." The Klipspringer Mine is part of a joint venture with De Beers Consolidated Mines Limited and Steppon Investments Limited (a DeBeers associated black empowerment group). SouthernEra is the operator of the joint venture. DeBeers and Steppon are contributing 100% of the project's US$6.5 million capital requirements in order to earn a 50% interest in the Klipspringer Joint Venture ("KJV"). In addition, De Beers has contributed adjacent properties to the KJV, which extend the strike length of the Klipspringer fissure from 3.1 kilometers to 7.5 kilometers. Mr. Evans said these new properties "broaden the scope for expanded reserves and production well beyond those outlined in last year's feasibility study and bring exciting new exploration opportunities." Klipspringer's development is based on an independent feasibility study that was completed in August 2000, prior to the formation of the KJV. The mineable reserve is 3.6 million tonnes at an average recovered grade of 47 carats per hundred tonnes (cpht), valued at US$100 per carat. Total revenue over the 13-year life of the mine was estimated at US$166 million. Total pre-tax net cash flow over the life of the mine was forecast at US$40.3 million and after-tax net cash flow at US$26 million. The decline development at Klipspringer has been advanced to 646 meters, nearly 90 meters ahead of schedule. Both No. 4 and No. 5 levels have been opened up and production stoping has commenced on No. 4 level. Stoping on No. 5 level is scheduled to commence in November. Full production, now estimated at 33,000 tonnes per month (186,000 carats per year), is anticipated during the third quarter of 2002, approximately six months ahead of schedule and 18% above feasibility estimates. Since the start of the KJV in March, over 47,000 carats of diamonds have been recovered from the Klipspringer properties while development of the fissure mine has continued. Amongst these was a 2.6-carat fancy yellow diamond that sold for US$4,000 per carat; the highest value ever achieved for either a Klipspringer or Marsfontein stone. Two 14-carat diamonds and one 12-carat diamond were also recovered. These three stones averaged over US$2,000 per carat. In a separate announcement last week, SouthernEra reported that its 70.4 percent subsidiary, Messina Limited, concluded its US$40 million debt financing to complete construction and start-up of the 160,000 ounce per year Messina Platinum Mine in South Africa. First drawdown against the debt facility occurred last week and drawdown of the full facility will take place by September 2002 when the project will be completed. SouthernEra Resources Limited is an independent producer of platinum group metals and diamonds. The company also has an extensive PGM and diamond exploration program. The common shares of SouthernEra are traded under the symbol SUF on the Toronto Stock Exchange. The shares of Messina are traded on the JSE Securities Exchange in Johannesburg under the symbol MES. -30- For further information: PLEASE CONTACT: SouthernEra Resources Limited, Patrick C. Evans, President and CEO, Telephone: (416) 359-9282, Fax: (416) 359-9141, e-mail: inbox@southernera.com newswire.ca