Drilling Report

SouthernEra's 'Monts de Cristal' PGM/Nickel/Copper Project in Gabon

    Returns Encouraging PGM and Nickel Results

 

    Shares Issued and Outstanding: 74,707,883

    AIM: SRE

 

    TORONTO, June 22 /CNW/ - SouthernEra Resources Limited ('SouthernEra')

(AIM: SRE) reported today that the Company has encountered encouraging

platinum group metals (PGM) and nickel assay results from stream samples

collected within the Monts de Cristal 'Kinguele' ultra-mafic complex in Gabon.

    In August 2003 SouthernEra Resources Limited Gabon was granted an

exclusive exploration permit ('permis de recherches') to explore for PGM's and

associated minerals within northwestern Gabon. The Monts de Cristal permit

(G1-197) covers 9,409 square kilometers and is valid for three years,

renewable twice for a further six years in total. SouthernEra has a 95 percent

interest in the project for all metallics except for gold where it has a 92.5

percent interest.

    The targeted PGM host on the Monts de Cristal Project is the 'Kinguele'

ultra-mafic complex, which is at least 100 kilometers long and up to 3

kilometers wide. As such, it bears resemblance to several other dyke-like PGM

mineralized intrusions, notably the Great Dyke of Zimbabwe, the Jimberlana

intrusion of Western Australia, the Bird River and Fox River sills of Canada,

and the Rio Jacare Complex of Brazil.

 

    In consultation with Professor W. Maier at Centre for Research on

Magmatic Ore Deposits, University of Pretoria, South Africa, a preliminary

assessment of existing data was undertaken, the results of which have been

encouraging with respect to the development of PGM mineralization. The

following are of particular significance:

 

    1.  The dyke-like shape of the Monts de Cristal complex suggests an

    extensional environment, which in combination with the primitive

    composition of the rocks and the sulphur-poor nature of the country

    rocks, is a positive sign as it could indicate rifting in response to a

    mantle plume. It has been dated at 2800 Ma and is older than the Great

    Dyke of Zimbabwe (2450 Ma). Most PGM reef deposits are hosted by Archean

    aged intrusions.

 

    2.  The exposed portions of the Monts de Cristal ultra-mafic intrusion

    consist dominantly of orthopyroxenites, gabbro, with minor dunite,

    harzburgite, olivine pyroxenite, and norite rock types. These

    lithologies, in particular the dominance of orthopyroxene over

    clinopyroxene in the pyroxenites, is typical of those intrusions that

    host the world's most important PGM reef-type deposits, namely the

    Bushveld Complex in South Africa, Great Dyke in Zimbabwe, and Stillwater

    in the United States. The exposed stratigraphic level of the intrusion

    appears to be straddling the boundary between ultramafic and mafic

    lithologies. This, too, represents the position where many of the world's

    important PGM reefs are located, notably the Great Dyke and to a lesser

    extent the Bushveld and Stillwater.

 

    3.  In the orthopyroxenites of the Monts de Cristal intrusion the

    composition of the pyroxenes reaches Mg No. 0.84, with high Cr contents

    of 0.6 wt%. These values are equivalent to those in the Lower Critical

    Zone of the Bushveld Complex, but the Cr contents are higher than in all

    Bushveld orthopyroxenes (mostly around 0.5 wt%) and more in line with

    Great Dyke pyroxenes. This suggests that the parental magmas to the Monts

    de Cristal Complex were primitive, which is a good indicator for

    potential PGM mineralization.

 

    4.  The Monts de Cristal ultramafic rocks have MgO contents up to 30%, Cr

    contents of 2000-4000 ppm, and 700-900 ppm Ni, which is typical of

    Bushveld orthopyroxenites. Again, these data indicate primitive magmas

    with potential to form PGM reef-type deposits.

 

    5.  The Monts de Cristal intrusion crystallized from primitive mantle

    derived magma. By analogy with other layered intrusions, the magma almost

    certainly contained greater than 10 % MgO and elevated Cr and Ni

    contents. This suggests it represents a large degree partial melt of the

    upper mantle and therefore had the potential to be rich in platinum group

    elements.

 

    Historical data from the Geological Survey of Gabon indicates anomalous

stream geochemistry results (greater than 1000ppm Cr; greater than 100ppm Cu;

greater than 600 ppm Ni) from Monts de Cristal. A limited number of rock

samples, including 12 drill core samples from 3 holes, and 13 random grab-

samples, were previously assayed for PGM's. Values of up to 800ppb Pt, 860ppb

Pd, 445ppb Rh, 60ppb Os, 150ppb Ir, and 130ppb Au have been reported in some

rock samples from various locations within the Complex. The maximum total PGE

result returned for a sample was 1.5 grams per tonne (4 PGE - Pd not analyzed

for). Neither stream sediment samples, nor surface soil grid samples were ever

analyzed for PGM's. No further exploration work was carried out on the Complex

until SouthernEra commenced reconnaissance work in 2002.

    Although SouthernEra will only complete the initial reconnaissance

sampling of the Complex during the third quarter of 2004, the initial

indications are positive. To date, approximately 700 stream samples have been

collected along the approximately 100-kilometer strike of the Complex. The 

46-element ICP (Anglo American Research Laboratories in South Africa) results

of the stream samples report values of up to 1490 ppm Ni, 154 ppm Cu, and 

5340 ppm Cr (up to 7x background), which positively outlines the location of

the complex. Ninety-six of the most anomalous nickel and copper stream

sediment samples were chosen for 3 PGM analyses and assayed by Ultratrace

Laboratories in Perth, Australia. Assay values of up to 73 ppb Pt, 16 ppb Pd,

and 6 ppb Au were reported, with good clustering of these significantly

anomalous samples along the complex, the highest total being 92 ppb for 3 PGM.

    SouthernEra's President and CEO, Patrick Evans commented: 'We are pleased

with our early progress at Monts de Cristal. These initial stream results

together with Professor Maier's favorable interpretation of existing data are

encouraging, and confirm the potential for Monts de Cristal to host a new

economic PGM deposit. The nickel and copper potential of this Complex and

surrounding satellite bodies is also being assessed. Once all reconnaissance

results are interpreted, a detailed follow-up program will be designed,

including grid mapping and geophysical surveys, soil grid sampling, coupled

with drilling and geological modeling.'

    Mr. Evans added: 'The area is supported by excellent infrastructure and

the project is situated only 65 kilometers east of the nation's capital

Libreville, which has a deep-water port. The complex itself is situated 22

kilometers from the national blacktop highway, and there are numerous well-

maintained laterite roads, some within 1 kilometer of the Complex. In

addition, a branch-line of the national railway terminates 7 kilometers to

south of Monts de Cristal, and the national power grid originates within 3

kilometers of the Complex and runs parallel with the Complex for about 10

kilometers. Water is plentiful, with major rivers present throughout the

permit area. Conditions to support the development of a mine could not be

better.'

    The qualified person in respect of the Monts de Cristal project is Mr.

Michael Cowell, B.Sc., Hons. Chief Mine Geologist, Messina Platinum Mines

Limited, a registered Professional Practicing Natural Scientist with the South

African Council of Natural Scientific Professions (SACNASP).

    SouthernEra Resources is an independent producer of platinum group metals

and diamonds. The company has an extensive PGM exploration program in South

Africa and Gabon. SouthernEra is engaged in diamond exploration in Canada,

Gabon, Australia, South Africa, the Democratic Republic of Congo and Botswana

and also maintains its 18 percent free-carried interest in the Camafuca

Diamond Project in Angola. The common shares are listed on the Toronto Stock

Exchange and the London Stock Exchange's AIM market.

 

    To view map, please see: http://files.newswire.ca/248/MontsdeCristal.doc

 

    For further information: please contact SouthernEra Resources Limited:

Mr. Patrick Evans, President and CEO, or Howard Bird, Vice President

Exploration, Telephone: [phone], Fax: [phone], E-mail:

inbox(at)southernera.com, www.southernera.com

    (SRE)