SouthernEra adds land near Messina

SouthernEra Resources‘ (SUF-T) share price jumped about 10% after they resumed trading after lunch on Thursday.

South Africa’s Department of Minerals and Energy has awarded the diamond miner and equal partner Mvelaphanda Resources, a South African-based black-controlled platinum mining company, three new platinum properties near SouthernEra’s 70.4%-owned Messina platinum group metals mine.

The three properties — Rooibokbult 121 KS, Turfpan 122 KS and Dwaalkop 455 KS, are situated between Messina’s Voorspoed and Doornvlei sections.

The partners expect to soon wrap up a prospecting contract with the government, following which a prospecting permit will be issued.

SouthernEra’s CEO, Patrick Evans, said, “The joint venture expects to be able to commence a prospecting program over the new properties as soon as the necessary permits have been issued. These properties have the potential to add significantly to the current known resources at Messina Platinum.”

At last count, Messina’s reserves stood at 26.4 million tonnes grading 6.3 grams platinum group metals plus gold, with copper and nickel byproduct credits. The deposit should keep a proposed concentrator fed for 17 years.

Earlier this summer, SouthernEra approved a US$22-million plan to extend the Voorspoed Main shaft bottom to 730 metres from its current depth of around 432 metres. The plan is designed to boost phase-1 production by 50%, and calls for production to hit 80,000 tonnes per month by the end of the third quarter of 2003. The monthly rate is expected to hit 120,000 tonnes by end of the 2004 first quarter.

The partners note that they also applied for the Mphahlele property to the east of Doornvlei, but it went to another company.

In late-afternoon trade on the Toronto Stock Exchange SouthernEra’s shares were fetching $5.15, 45 richer than there previous closing price.