Six weeks ahead of schedule, SouthernEra Resources‘ (SUF-T) fast-tracked Messina platinum group elements mine in South Africa has produced its first platinum group metals concentrate.
The concentrate plant was commissioned last week, when SouthernEra also finished the upgrade of the ventilation shaft and changed over to a bigger hoist and conveyance system.
The ventilation shaft is now licensed for the movement of workers and material and will be capable of hoisting 30,000 tonnes per month. Stoping activities, which will commence in August, will be ramped up to 20,000 tonnes per month.
Work continues on the main shaft and mine and remains on schedule for production startup in the last quarter of 2002. At full steam, in 2003, the mine is expected to annually churn out 159,000 oz. precious metals. Life-of-mine cash costs are pegged at US$150 per oz.
Earlier this month, Rand Merchant Bank agreed to participate in a R345-million loan agreement for the mine’s construction. Rand is one of several banks expected to provide the loan. In order for the deal to become final, the remaining participants must approve a R75-million closing guarantee and SouthernEra’s subsidiary must complete a rights issue and a marketing agreement.
SouthernEra, which operates and owns a 70.4% interest in Messina, has spent R25 million on the project so far and expects to spend another R463 million before the mine is done. The R118-million difference between the amount of the loan and the total capital cost is to be covered by the rights issue and cash flow from a small-scale plant under development (T.N.M., May 28).
Reserves at Messina are pegged at 26.4 million tonnes grading 6.3 grams platinum group elements plus gold, with copper and nickel byproduct credits. The deposit should keep the proposed concentrator fed for 17 years.
South African-listed Impala Platinum Holdings, which sold SouthernEra its initial interest in Messina, will refine all concentrates produced there and must approve the marketing agreement.
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