Statement re Exploration Review 2003

SouthernEra's global business development and exploration review 2003

 

    Shares Issued and Outstanding: 74,499,193

    TSX: SUF

    AIM: SRE

 

    TORONTO, Dec. 18 /CNW/ - SouthernEra Resources Limited today provided a

year-end review of the Company's global business development and exploration

activities including: platinum group metal (PGM) exploration in South Africa;

the recently announced Koumba Gold project in Gabon; and the Company's global

diamond exploration programs in Canada, South Africa, Australia, Botswana and

Gabon.

 

    MESSINAPLATINUM PHASE 2 - DWAALKOP / DOORNVLEI SECTIONS

 

    The initial phase of the drilling program to 500 metres has been

completed at Phase 2 of the Greater Messina. Eighty six percent of the planned

22,840 metre-drilling program to 1,000 metres has also been completed. The

remainder of the drilling program to 1,000 metres is expected to be completed

by the end of January 2004.

    Assays received to date have returned, on average, higher grades in the

Merensky Reef, than previously anticipated. The UG2 Chromitite grades are in

line with previous expectations. The degree of potholing and faulting is also

within expected limits, at 10 percent of reef intersections for both the

Merensky and UG2 Reefs.

    The final resource classification to 500 metres has been delayed due to

higher than anticipated turn around times for the check assays from the

independent laboratories. It is now anticipated that the check assays for

5PGE+Au will be available by the end of December. The resource classification

to 500 metres will be completed in January 2004 and independently verified by

SRK Consulting, who is conducting the feasibility study for Phase 2.

    The feasibility study for the combined properties of Dwaalkop and

Doornvlei is in progress and will be completed during the first half of 2004.

Based on the scoping study results, it is anticipated that the combined

properties will host an operation of at least 240,000 tonnes per month with a

life in excess of 30 years to 1,000 metres.

 

    MESSINAPLATINUM PHASE 3 - ZEBEDIELA SECTION

 

    The drilling program to upgrade the resource base of the Merensky and UG2

Reefs to 1,000 metres below surface is progressing satisfactorily, and is

twenty seven percent completed. Results to date compare favourably with data

from previous drilling results undertaken by Impala Platinum. Intersections of

both the Merensky Reef and UG2 Chromitite are typical of the area, with both

reefs in excess of 150 centimetres in width.

    It is anticipated that the drilling program will be completed by the end

of the first quarter 2004 and final results should be available during the

second quarter of 2004.

 

    MESSINAPLATINUM - SMELTER SCOPING STUDY

 

    The scoping study for the construction of a smelter for the Greater

Messina is well advanced with the completion of the preliminary furnace

design. The final capital estimates will be available by year-end and the

initial financial modeling will be completed in January 2004. The

Environmental Impact Assessment associated with the smelter is also proceeding

on schedule and no significant environmental issues have been identified to

date.

    A full review of all the available smelting and refining options will be

conducted in the first half of 2004 prior to making a decision on whether to

proceed to a full feasibility study.

 

    MILLENNIUM PLATINUM

 

    The drilling program at Millennium Platinum was completed earlier in the

year and resulted in an indicated resource of 3.7 million ounces at a grade of

3.76 grams per tonne. The Millennium UG2 chromitite layer has been correlated

with the UG2 chromitite layer developed extensively elsewhere in the Bushveld

Complex. The platinum/palladium ratio, however, is markedly different to the

UG2 elsewhere, at 2:1 and greater, as opposed to 1:1 in normal UG2.

    In 2004 several options will be considered with a view of advancing the

Millennium Platinum Project.

 

    GABON

 

    SouthernEra has three exclusive, 100 percent owned diamond exploration

permits (Kango, Sud and M'Bigou) and one joint venture with Cogemat, in which

SouthernEra has a 60 percent interest in the Makongonio diamond exploration

project.

    During 2003 Gabon produced encouraging diamond and gold exploration

results. Within the Makongonio diamond concession and the Kango project

positive kimberlitic indicator mineral anomalies have been defined. The

diamond program for 2004 will continue to focus on drill testing targets

selected from a 40,000-line kilometer airborne survey completed during March

2003.

    During the examination of stream sample concentrates for kimberlitic

indicator minerals, as part of SouthernEra's diamond exploration program, a

large alluvial gold anomaly was discovered in the Koumba (Kolissen) gold

district area (see news release, dated October 27, 2003) where SouthernEra has

a 95 percent interest in a 625 square kilometre gold exploration permit.

SouthernEra has collected over 5,000 soil samples from a 6 by 12 kilometer

geochemical grid covering the alluvial anomaly and successfully completed

trenching over the high interest areas.

    A first phase drilling program of selected target areas over the gold

anomaly commenced during November 2003 to determine the nature of the

geological units in the area and to gain a better understanding of the gold

system at depth. To date, three holes have been drilled and a total of 551

meters of core recovered. The third drill hole is still in progress. Drilling

has intersected an encouraging 5.5-meter (true width) zone characterised by

quartz flooding and sericitic and carbonate alteration containing some

sulphides. This type of alteration is often associated with gold

mineralization. The drilling program will pause over the December holiday

period and will recommence in January 2004. It is expected that a further 10

to 15 holes will be drilled during the first quarter of 2004, when the first

phase of the program will be concluded. Assay results will be released as they

become available.

 

    ANGOLA

 

    No progress occurred during the year at the Company's Camafuca Project as

final authorisation for the formation of the operating company, Camafuca

Limited, is still awaited from the Angolan government.

 

    CANADA- NWT, ONTARIO AND QUEBEC

 

    The Yamba Lake Project is a joint venture between SouthernEra, Tanqueray

Resources, Mill City International Corporation and Techsite Strategies Corp.

SouthernEra can earn up to a 65 percent interest in the project.

    During 2003, 29 airborne targets were evaluated with ground

electromagnetic and magnetic surveys. Four of these resultant targets were

tested during the spring drill program. One narrow kimberlite dyke was

intersected.

    A total of 91 till samples were collected in the summer of 2003 for the

recovery of kimberlitic indicator minerals. The samples were collected down-

ice of positive ground geophysical targets. The sampling results are expected

in early January 2004 and will aid in the selection of targets to be drilled

during March/April 2004. A further 16 airborne targets will be tested during

March/April 2004 and positive targets will be drill tested during the second

quarter 2004.

    The Kidme Project is a joint venture between SouthernEra (60 percent) and

Diamonds North and is located to the south of the highly prospective

structural trend of the De Beers/Mountain Province Kennady Lake pipes.

    During May 2003 six ground geophysical grids were established over

anomalies on the Kidme claims and two high priority electro-magnetic anomalies

were delineated. A 4,200 line-kilometer magnetic and electromagnetic

geophysical airborne survey was completed in October 2003. The data is

currently being interpreted and priority targets will be tested with ground

geophysics and drilling during early 2004.

    The Back Lake Project, operated by SouthernEra (60.4 percent) is a joint

venture with Kalahari Resources Inc. and Island Arc Mining Corporation.

    In order to identify the kimberlite sources to the North Margaret Lake

and South-One kimberlitic indicator trains, sixteen grids were established and

surveyed during 2003. The North Margaret Lake indicator train is up to 300

meters wide and seven kilometers long with individual samples returning up to

159 kimberlitic indicators. The South-One train is approximately 250 meters

wide and four kilometers long. Four diamond drill holes were completed on

geophysical anomalies. No kimberlite was intersected during the program.

    To further define the North Margaret Lake and South-One indicator trains

140 till samples were collected during August 2003. Twelve out of 100 samples

processed to date returned positive results. In addition, a number of the

samples contain anomalous gold grain counts. Further ground geophysical

surveys and drilling will continue in the early 2004.

    To date, five kimberlite pipes have been discovered on the Lac de Gras 

X-Claims property, of which three are diamondiferous. The primary kimberlite

sources to kimberlitic indicator trains defined with sonic and reverse

circulation drilling have not yet been discovered. The Company is considering

an airborne gravity survey over the Diavik kimberlite trend to identify these

primary kimberlite sources during the Spring 2004. SouthernEra's interest in

the Lac de Gras X-Claims is currently 60 percent.

    The Superior Craton exploration program is composed of three 100 percent-

owned diamond projects in Ontario: Majestic, Crown and Discovery. The Superior

Craton program has advanced a number of airborne targets to the drill stage

and this year a total of 89 ground geophysical surveys were completed and 21

targets drilled. A positive microdiamond result was returned from an        

8-kilogram core sample recovered from a drill hole that tested a high priority

magnetic-low airborne target. In addition, following positive kimberlitic

indicator mineral results recovered from stream and till samples in Ontario,

two airborne surveys for a total of 11,000 line kilometres were completed

during November and December 2003. In Quebec, a regional reconnaissance

diamond exploration program was completed during the year.

 

    SOUTH AFRICA

 

    In addition to diamond exploration on the Klipspringer Joint Venture

(KJV), SouthernEra advanced the Mooikloof and Prieska projects and continued

to focus on a regional reconnaissance exploration program during 2003.

    A magnetic and radiometric airborne survey covering the KJV was completed

during November 2003. At the Mooikloof Project seven geophysical targets were

drilled. No kimberlite was intersected during the program and the future of

the Mooikloof project is currently being reviewed. Detailed grid soil sampling

continued on the Prieska Project over four regional kimberlitic indicator

mineral anomalies. The soil samples are being processed and are returning up

to 23 kimberlitic garnets per sample, confirming the potential of the project.

    As part of SouthernEra's continuous regional diamond reconnaissance

program, more than 10,000 stream and soil samples were collected and processed

for the recovery of kimberlitic indicator minerals during 2003. To date, the

program has been successful in defining three separate high-interest areas.

These areas will be evaluated further during 2004.

 

    AUSTRALIA

 

    The Yilgarn Craton Project is a joint venture between SouthernEra

(51 percent) and Caldera Resources Inc. The project is located within the

Proterozoic Earaheedy Basin kimberlite province in Western Australia, which

hosts the Jewill and Nabberu diamondiferous kimberlites. The exploration area

under tenure now totals approximately 1,200 square kilometers. During August

2003, 42 aeromagnetic kimberlite-like targets selected from 100-meter    

line-spaced high-resolution aeromagnetic data were sampled and kimberlitic

chrome spinels were recovered from 28 of these targets. These targets are

located within an area of approximately 200 square kilometers.

    Current results suggest that numerous undiscovered kimberlites and/or

lamproites remain to be found in the Earaheedy Basin and confirm the Company's

initial appraisal of the diamond potential of the area. An Aboriginal Heritage

Survey has been concluded, which will enable the joint-venture partners to

carry out a preliminary drill program to test the positive airborne targets

early in 2004.

 

    BOTSWANA

 

    SouthernEra has a 50/50 joint venture agreement with Tsodilo Resources

Limited. The project area called the Gwihaba Project is located in northwest

Botswana and consists of seven prospecting licenses covering an area of

approximately 7,000 square kilometers.

    The project lies immediately south of Tsodilo's existing Ngamiland

project where Tsodilo has discovered numerous kimberlite pipes as recently as

September 2003. During 2004 the Gwihaba project exploration program will

target airborne magnetic kimberlite pipe-like targets selected from the

government airborne geophysical survey.

 

    SouthernEra Resources Limited is an independent producer of platinum

group metals (PGMs) and diamonds. The Company also has an extensive PGM, gold

and diamond exploration program. The common shares of SouthernEra are traded

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

 

    Please note, in the third quarter news release, dated November 26, 2003

    the Company stated that Messina's Main Shaft hoisted 142,381 tonnes of

    both development and reef ore. This tonnage reflects only reef tonnes and

    does not reflect the total tonnes hoisted, which for the third quarter

    was approximately 203,983 tonnes.

 

    For further information: SouthernEra Resources Limited, Dr. Sally Eyre,

Vice President Corporate Affairs, Telephone: [phone],

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

    (SUF. SRE)