Drilling Report

SouthernEra Declares Indicated Resources of 3.7 Million Ounces

    from Second Phase Drill Program at Millennium Platinum Project

 

    Resource Increased by 250 Percent and Upgraded to Indicated Category

    Shares Issued and Outstanding: 61,674,459

    TSX: SUF

    AIM: SRE

 

    TORONTO, July 30 /CNW/ - SouthernEra Resources Limited announced today

that the second phase drilling program at its 100 percent owned Millennium

Platinum Project in South Africa has resulted in the declaration of an

Indicated Resource of 30.6 million tonnes grading 3.76 grams per tonne. This

resource has been calculated by SRK Consulting and complies with National

Instrument 43-101 on resource disclosure.

    The Millennium Platinum Project is located on the Eastern Limb of the

Bushveld Igneous Complex, 30 kilometers east of the town Groblersdal in

Mphumalanga Province. The newly declared resource is based on 13 drill holes

varying in depth from 90 meters to 1,100 meters. Each main drill hole has at

least two deflections resulting in 40 representative reef intersections.

    The Millennium UG2 chromitite layer has been correlated with the UG2

chromitite layer developed extensively elsewhere in the Bushveld Complex.

However, the platinum/palladium ratio of 2:1 at Millennium is markedly higher

than elsewhere on the Bushveld Complex where the typical ratio is 1:1.

    Commenting on the newly declared resource, SouthernEra President and CEO,

Patrick Evans, stated: 'We are pleased with the success of the Millennium

Platinum Project. Our initial acquisition cost of about $100,000 has delivered

a multi-million ounce resource at grades that are economic elsewhere on the

Bushveld Complex. The resource declared as a result of the second phase drill

program represents a significant increase over the 1.44 million ounces

declared from the first phase drill program. This is very encouraging as we

consider the future options for the Millennium Platinum Project.'

    The Platinum Group Element (PGE) mineralisation within the chromitite

layer is bottom-loaded, with the highest concentrations in the lowest two

samples with grades of 5 grams per tonne for the five platinum group elements

and gold (5PGE+Au) over an average width of 37 centimetres. The highest values

are usually in the next-to-basal sample approximately 20 centimetres from the

UG2 footwall.

    The reef zone itself is defined by the sharp basal contact into footwall

norite or pyroxenite. Practically all of the economic mineralisation is

restricted to the chromitite and there is insignificant local value in the

footwall pyroxenite.

 

    The average vertical grade distribution within the UG2 reef is available

at: http://files.newswire.ca/248/SouthernEraUG2Reef.doc

 

    In keeping with industry practice in South Africa the three platinum

group elements plus gold (3PGE+Au) were determined by the fire assay method.

The 5PGE+Au were determined from a subset of the samples using the NiS method

at Lakefield Laboratory. This NiS collector assay database has been used to

determine the Ruthenium and Iridium average grades.

    The estimation of the Millennium Indicated Resource grade follows methods

applied to the Great Dyke platinum deposits in Zimbabwe. The principle is the

same as the Histogram method, which is dependent on the assumption that metal

grade distributions in the UG2 Chromitite are essentially isotropic and that

there are no directional trends.

    The Histogram principle is commonly used for the evaluation of Bushveld

PGE mineralisation and has therefore been adopted for Millennium. The

methodology assigns a global mining grade and width and because it assumes

continuity of reef quality over the entire evaluation area, features such as

potholes or faults are discounted from the resource mass without affecting the

grade.

    The Histogram method also requires the assignment of a marker horizon

from which the valuation is based. The bottom-loaded PGE mineralisation of the

UG2 Chromitite at Millennium indicates that the basal contact is this horizon.

Importantly, it is readily identifiable in core and will also be clearly

definable within any future underground development.

    The total resource tonnage has been discounted by 25 percent for

geological losses to allow for faults, dykes, pegmatoids and potholes.

    The estimated tonnage minus the 25 percent allowed for geological losses

yields the resource tonnages as shown in the table below.

 

 

    Indicated Resource Estimate of the UG2 Reef Millennium Project

 

                                        -------------------------------------

                                                     Reef Thickness

                        -----------------------------------------------------

                        Area  Density    m       m       m       M       m

                         Mm3    m3/t    0.90    0.95    1.00    1.05    1.10

    -------------------------------------------------------------------------

    Area                                  Mt      Mt      Mt      Mt      Mt

    -------------------------------------------------------------------------

    Blaauwbank          2.48    3.52     7.9     8.3     8.7     9.2     9.6

    -------------------------------------------------------------------------

    Rietkloof           9.12    3.52    28.9    30.5    32.1    33.7    35.3

    -------------------------------------------------------------------------

    Total               11.6            36.7    38.8    40.8    42.9    44.9

    -------------------------------------------------------------------------

    Less     Geological

     Losses              25%            27.6    29.1    30.6    32.2    33.7

    -------------------------------------------------------------------------

                          Pt     g/t    1.98    1.92    1.86    1.81    1.75

                        -----------------------------------------------------

                          Pd     g/t    1.03    1.01    0.98    0.95    0.92

                        -----------------------------------------------------

                          Rh     g/t    0.24    0.24    0.23    0.22    0.22

                        -----------------------------------------------------

                          Au     g/t    0.05    0.04    0.04    0.04    0.04

                        -----------------------------------------------------

                          Ru     g/t    0.55    0.53    0.52    0.50    0.48

                        -----------------------------------------------------

    Grade                 Ir     g/t    0.13    0.13    0.12    0.12    0.12

                        -----------------------------------------------------

                          Ni     ppm     356     348     340     332     324

                        -----------------------------------------------------

                          Cu     ppm     177     174     170     168     164

                        -----------------------------------------------------

                          4E     g/t    3.30    3.21    3.12    3.02    2.93

                        -----------------------------------------------------

                          6E     g/t    3.98    3.87    3.76    3.64    3.53

    -------------------------------------------------------------------------

 

 

    The current resource area is defined on the basis of drill hole location

with the boundary taken at mid-way between drilled and non-drilled sites on

the 800-meter x 800-meter grid, the transgression of the Main Zone and

property ownership. The project area is open-ended to the northwest, north and

northeast.

    The Millennium resource has been categorised by SRK Consulting as

'Indicated' in accordance with the South African Code for Reporting of Mineral

Resources and Mineral Reserves (SAMREC), which conforms to the requirements of

National Instrument 43-101. The Independent Qualified Person in respect of the

Millennium resource statement is Dr. Anthony Martin, B.Sc., D.Phil. of SRK

Consulting.

 

    SouthernEra Resources is an independent producer of platinum group metals

and diamonds. The company also has an extensive platinum group metal and

diamond exploration program. The common shares are listed on the Toronto Stock

Exchange and the London Stock Exchange's AIM market.

 

For further information: PLEASE CONTACT: SouthernEra Resources Limited,

Dr. Sally Eyre, Vice President, Corporate Affairs, Telephone: [phone],

Fax: [phone], E-mail: inbox(at)southernera.com, www.southernera.com

    (SUF.)