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: (416) 359-9282,
Fax: (416) 359-9141, E-mail: inbox(at)southernera.com
(SUF. SRE)
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