Drilling Report

SouthernEra Optimizes Messina 's Phase 1 Development

 

    Shaft Deepening Capital Costs Reduced by 50% or US$12 Million

    Shares Issued and Outstanding: 51,828,400

    TSX: SUF

    AIM: SRE

 

    TORONTO, Nov. 5 /CNW/ - SouthernEra Resources Limited is pleased to

announce the results of a two-month optimization study undertaken at the

Company's 70.4 percent controlled subsidiary, Messina Platinum. The study to

optimize the development of Messina's Phase 1 Mine (Voorspoed Section) has

generated an estimated US$12 million capital cost saving and enhanced the

mine's ability to build production to the planned capacity of 120,000 tonnes

per month.

    The optimisation study was undertaken following completion mid-year of

the design for the implementation of the mechanised longhole stoping method at

the Phase 1 Mine. This mining method requires the development of a decline

ramp system below the 350 metre operating level. By leading with the ramp

development to 730 metres, it is possible to raise-bore and slipe the Phase 1

shaft system rather than sinking it from above as originally planned.

Consequently, conventional shaft sinking will conclude at the end of November

with the station development on the 430 metre operating level, following which

development of the decline ramp system will commence.

    SouthernEra President and CEO Patrick Evans said: 'SouthernEra's dynamic

engineering team has determined that the most cost effective approach is to

ramp down to the 730 metre level and raise-bore up to the 430 level. In

addition to saving US$12 million, this approach accesses more of the ore body

sooner using the ramps which facilitate the long-hole stoping method we have

selected as the mining method below the 400 metre level.' The Voorspoed Mine

is expected to achieve a production rate of 80,000 tonnes per month during the

3rd quarter of 2003, increasing to a planned capacity of 120,000 tonnes per

month during the 2nd quarter of 2004.

    Mr. Evans also noted that SouthernEra has concluded its 50/50 joint

venture agreement with Mvelaphanda Resources, a South African Black

Empowerment Group, covering the recently acquired Messina Phase 3 or Dwaalkop

properties, which are situated contiguous to and between the Messina Phase 1

(Voorspoed) and Phase 2 (Doornvlei) properties. A Phase 2 feasibility study

was recently completed on the Doornvlei resource and announced by SouthernEra

last August. 'The next step in our optimization of the 24 million ounce

resource of the Greater Messina is to incorporate the newly acquired Phase 3

resource into our Phase 2 development plan. We foresee considerable savings

and a faster start-up to the Phase 2 and Phase 3 mines, which together cover a

contiguous 10 kilometres of mineralized strike length. The results of a

recently concluded scoping study to achieve this should be released ahead of

next week's analyst visit to Messina Platinum. We also expect to be able to

provide an update on the ongoing drilling program at SouthernEra's 100 percent

controlled Millennium Platinum Project ahead of the analyst visit.'

    Implementation of the Phase 1 optimization study requires the consent of

the Phase 1 debt consortium led by Rand Merchant Bank, which is expected.

    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 on the

Toronto Stock Exchange (SUF) and the London Stock Exchange's AIM (SER).

   

    For further information: SouthernEra Resources Limited, Patrick C.

Evans, President and CEO; or Dr. Sally Eyre, Vice President Corporate Affairs,

Telephone: [phone], Fax: [phone], e-mail:

inbox(at)southernera.com

    (SUF. SRE)