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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Gord Bolton who wrote (3179)	4/22/2002 11:21:13 PM
From: gg cox	Read Replies (2) \| Respond to of 39344

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

To: Gord Bolton who wrote (3179)	4/25/2002 9:52:20 AM
From: Gord Bolton	Respond to of 39344

Platinum prices ready to rock and roll. businessreport.co.za Southernera SUF.TO has got lots of it. 16 million ounces above 1000 meters. Most of the story remains to be told on this one. southernera.com Go to slide #9 Who wants to play fill in the blanks? Suf is negotiating to obtain mineral leases and mining rights on adjacent ground. southernera.com Go to slide #10 How about doubling down? Does anyone else see 60 million ounces to 2000 meters? southernera.com Go to slide #11 Messina operating cost estimated at US$80 per ounce. The feasibility study estimated a total peak funding requirement for Messina of approximately 460 million Rand or about US$75 million at that time. Total peak funding requirements were revised upward to 488 million Rand when project financing was completed in September, 2001. As at December 31, 2001, this total capital requirement equaled approximately US$41 million, a 45% percent reduction from the feasibility estimate. Similar benefits are evident in operating cost estimates. The feasibility study estimated average life-of-mine operating costs of R918 per ounce of 5 PGMs plus gold, net of base metal credits. In U.S. Dollar terms at that time, this amounted to an average operating cost of about US$150 per ounce. Using the December 31, 2001 value of the Rand, these operating costs have been reduced to about US$80 per ounce, a reduction from the feasibility study of approximately 47%. newswire.ca Operating margin now appears to be about US$450 per ounce. One of these days Mr. Market is going to catch on. Phase II feasibility due by mid 2002.(July) API in production now. newswire.ca Haywood target now $10.00