SouthernEra Reports on Progress at Messina

SouthernEra Reports on Progress at Messina Platinum

 

    2003 Production Grows by 223 Percent

    MessinaPlatinum Makes US$9.5 Million Debt Repayment

    Shares Issued and Outstanding: 74,499,193

    TSX: SUF

    AIM: SRE

 

    TORONTO, March 2 /CNW/ - SouthernEra Resources Limited today reported on

progress at the Company's 73.06 percent subsidiary Messina Platinum during the

course of 2003. Reef tonnes mined in 2003 grew by 223 percent over 2002 as

development and production continued to make steady progress. The table below

highlights the performance achieved at the Messina Phase 1 (Voorspoed) mine

during 2003.

 

   

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                           Q1        Q2         Q3         Q4        2003

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    Reef Tonnes Mined    72,317    108,429    162,511    188,601    531,858

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    Reef Tonnes Milled   72,966     96,097    142,381    177,069    488,513

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    Ave. Head Grade g/t    4.72       3.78       4.14       4.25       4.20

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    Plant Recoveries %     86.5       82.5       85.6       87.4       85.8

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    5 PGE + Gold Oz.      9,583      9,638     16,239     21,142     56,603

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    Nickel Tonnes            71         77        146        192        486

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    Copper Tonnes            52         60        106        138        356

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    Following the acquisition of Messina Platinum in mid 2000, SouthernEra

successfully completed the construction and commissioning of the Phase 1

(Voorspoed) mine on schedule and within budget in the third quarter 2002. The

Company achieved its first production build-up target of 40,000 tonnes per

month in the second quarter 2003. Although it was anticipated that a

production rate of 80,000 tonnes per month would be achieved during the last

quarter 2003, December recorded approximately 72,000 reef tonnes mined. As the

productivity of Messina's newly trained workforce improves, the production

ramp-up is expected to increase steadily.

    SouthernEra also reported that the Company has provided support to its

subsidiary Messina Platinum to meet its first repayment in terms of the Rand

Merchant Bank syndicated project debt facility. Through an inter-company

facility arranged by SouthernEra, Messina has repaid R63 million (approx. 

US$ 9.5 million) of the outstanding five year R465 million (approx.     

US$70 million) project debt, comprised of principal plus accrued interest as

at January 31.

    Messinais continuing discussions with its banking partners to arrange re-

scheduling of the remaining R402 million (US$60.5 million) facility.

    Full details of the Company's 2003 results will be released in early

April 2004.

    SouthernEra Resources is an independent producer of platinum group metals

and diamonds. The company also has an extensive PGM, gold 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: SouthernEra Resources Limited: Mr. Patrick

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

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

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

    (SRE SUF.)