SouthernEra converts resources at Messina (March 12, 2003)

SouthernEra Resources (SUF-T) has tabled an updated probable mineral reserve totalling 24.5 million tonnes grading 4.98 grams combined platinum, palladium, ruthenium, rhodium, and iridium plus gold per tonne for the Voorspoed section at its 70.9%-owned Messina platinum mine in South Africa.

The previous probable reserve at Voorspoed, tabled last July, rang in at 5.3 million tonnes of 4.3 grams 3PGE plus gold.

The updated reserve is based on an economic cutoff of US$30 per tonne, and includes geological and pillar losses of 25%, Merensky reef grade dilution of 10%, UG2 reef grade dilution of 8% plus another 5% loss thanks to waste mining due to potholing and faulting.

Previously, a total of 28 boreholes (59 intersections) and 23 boreholes (61 intersections) defined a measured and indicated resource of 26.4 million tonnes running 6.31 grams 5 PGE plus gold in the Merensky and UG2 reefs to a depth of 1,000 metres.

In the boardroom, SouthernEra has agreed to support and underwrite another rights offering by Messina Ltd. A similar move last November resulted in SouthernEra boosting its stake in its subsidiary to 70.9% from 70.4% by taking up shares no subscribed to. The deal saw about 90% of Messina Ltd.’s minority shareholders subscribe to generate about US$4 million for development at the mine.

Last month, SouthernEra completed an equity financing involving 9 million shares at $7.75 apiece with a group of banks for proceeds of about $70 million.