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

To: Valuepro who wrote (6857)	4/22/2002 11:17:46 PM
From: gg cox	Read Replies (1) \| Respond to of 7235

Monday April 22, 6:41 pm Eastern Time Press Release SOURCE: SouthernEra Resources Limited Messina Phase 1 production to increase by 50% TORONTO, April 22 /CNW/ - The Board of Directors of SouthernEra Resources Ltd. announced today that it has decided to proceed with an immediate deepening of the main shaft at its 70.4% owned Messina platinum mine to increase the mine's Phase 1 production by 50%. With this decision, the project will now achieve its originally planned full production rate of 80,000 tonnes per month at the end of the 3rd quarter of next year, six months later than the original schedule, but will then continue through to a new full production rate of 120,000 tonnes per month by the end of the first quarter of 2004. The surface facilities now nearing completion are fully capable of processing 120,000 tonnes per month. Recent trial mining under the Accelerated Production Initiative ("API") has confirmed the feasibility of converting to a more mechanized long-hole stoping mining method, which will increase mine productivity and throughput. "It therefore makes enormous sense to deepen the shaft and access additional ore before the main shaft is equipped and commissioned for production. While the shaft is being deepened from its current level of 432 metres to 730 metres, we will also develop a greater number of working levels to enable the mine to sustain the higher production rate," said Patrick Evans, SouthernEra President and CEO. During the expansion production will continue from the API operation at 20,000 tonnes per month. "In simple terms, we are deferring around US$20 million in cash flow from 2003 into 2004, with the benefit of continuing to generate an additional US$20 million in cash flow each year thereafter, assuming no changes in metal prices. To achieve this 50% expansion, capital costs are estimated at about US$22 million of which nearly half is future expenditure moved forward. The economics of this expansion are therefore extraordinarily accretive for our shareholders," said Mr. Evans. He noted that the Company is currently in discussions with its banking syndicate to fund a significant portion of this initiative. With this expansion, mine capacity will begin to approach an appropriate rate for the size of the Phase 1 ore body. "Phase 1 measured resources to the bottom of the deepened shaft now stand at approximately 18 million tonnes, about 12 years at the expanded rate of 120,000 tonnes per month," Mr. Evans said. 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. 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 Email this story - Most-emailed articles - Most-viewed articles