Statement re Gabon Discovery

SouthernEra Discovers Extensive Gold Anomaly in Gabon

 

    Shares Issued and Outstanding: 61,674,459

    TSX: SUF

    AIM: SRE

 

    TORONTO, Oct. 27 /CNW/ - SouthernEra Resources Limited announced today

that the Company has discovered a substantial gold anomaly in Gabon, West

Africa. This discovery is a consequence of the Company's ongoing regional

platinum group metals (PGM) and diamond exploration program being conducted

throughout an exclusive 14,000 square kilometer precious metals and diamond

exploration permit area.

    While oil dominates Gabon's commodity industry, the country has

historically produced other commodities, including gold. With the

encouragement of the Gabonese government and the potential offered by the low

level of previous exploration, SouthernEra began regional sampling for PGMs

and diamonds over an initial area of 54 000 square kilometers in 1999.

    Concentrates from the Koumba region recovered numerous (up to 52 counts

per 40 litre sample) alluvial gold particles in the 0.3 to 0.7mm 'diamond'

sampling fraction. As part of this regional exploration program, the Company

focused on the encouraging gold occurrences resulting in 'L'Or Zone Koumba'

('Koumba') being taken under an exclusive 'permis de recherche' for gold, the

permit being valid for 3 years from March 7, 2001, renewable twice for

additional three-year periods. While further exploration and drilling is

required, early indications suggest the potential for significant parallel

gold bearing deposits within the 625 square kilometer Koumba permit region.

    Historically, the Koumba region has supported both alluvial and primary

gold mining that stretches from the current widespread artisinal activity,

back to commercial primary and alluvial extraction attempts between 1935 and

1954, when over 1.5 tons of gold was extracted. The Koumba mineralised area

sits within a 6-kilometer geological corridor that hosts a combination of

Lower Proterozoic aged units. At surface, saprolitic material predominates

with the weathering often extending to depths beyond 10 meters. Below the

oxidized zone lies a suite of rock types, mostly steep dipping. The rock types

can be classified into the following: sedimentary, basic volcano-sedimentary,

differentiated acid volcanics, schists and quartzites. At this early stage of

interpretation, the gold mineralisation appears to be associated with

vertically dipping single or stockwork vein systems, the series of parallel

veins following the NNW structural trend. Interpretation of the regional

geological setting has been supported by an aero magnetic survey flown at 100

meter-line spacing.

    Within the Koumba area, one structure called the Mainou Vein was mined in

the early 1940's over a length of 80 metres, with subsequent exploration

confirming the existence of additional parallel structures. SouthernEra's

initial due diligence sampling confirmed the existence of these structures,

with soil values of up to 7.9 grams per tonne being recovered. Follow-up

trenches were dug over the areas where soil anomalies exceeded 2 grams per

tonne with the channel samples offering further encouragement. One trench,

TRV2 -Trench- 2B returned consistently positive results. The 2-meter trench

extended 175.5 metres, with 36 of the channel samples returning over 0.5 grams

per tonne gold, of which 15 samples returned grades of between 1 and 5.64

grams per tonne, the higher grades largely being associated with the

underlying bedrock.

    Encouraged by the due diligence sampling, SouthernEra subsequently

recovered over 5,000 samples from a 6 by 12 kilometer geochemical grid

covering the initial anomalous reconnaissance areas. This grid returned soil

grades of up to 3 grams per tonne. Coarse gold was also widely encountered,

including up to 51 counts in a single 0.95 kilogram sample. These results

further confirmed various anomalous NNW parallel trends, up to 2 kilometers in

length. Recently, an 8-centimeter long cigar-shaped nugget weighing over 100

grams was recovered from within the area.

    Based on these initial results, SouthernEra intends drilling key target

areas in the months ahead, allowing for a more detailed assessment of the

geological structure and further validation of the encouraging gold values

previously encountered. Once results of the drill program are available, the

Company will be better placed to decide on an appropriate strategy to maximise

the project's potential.

 

    SouthernEra Resources Limited is an independent producer of platinum

group metals (PGMs) 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 (SRE).

 

   

    For further information: SouthernEra Resources Limited - Toronto:

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

London: Mr. John Barker, Vice President Business Development, Telephone:

44-790-349-5811, E-mail: inbox(at)southernera.com, www.southernera.com

    (SUF. SRE)