Dubbed Rooibokbult, Turfpan and Dwaalkop, the properties are between SouthernEra’s 70.4%-owned Voorspoed and Doornvlei projects, which are at the advanced stage. Voorspoed began production a year ago, whereas Doornvlei remains the subject of a feasibility study.
Earlier this year, SouthernEra decided to proceed with the deepening of Voorspoed’s shaft by 300 metres, to 730 metres. The decision delays the start of full-scale production by a year, though monthly mining rates will ramp up to 120,000 tonnes — 50% more than originally forecast.
In the meantime, miners will continue to extract 20,000 tonnes of material per month.
Capital costs are projected at US$22 million, and these will be partially financed using proceeds from a $48.6-million equity offering. The financing saw 6.7 million shares issued at $7.25 apiece, thus increasing the number issued and outstanding to roughly 52 million.
At last report, Voorspoed hosted 26 million tonnes in the measured and indicated categories at a grade of 6.3 grams platinum group metals plus gold. Similar-type resources at Doornvlei total 15 million tonnes grading 5.81 grams, and each deposit contains appreciable quantities of nickel, copper and cobalt, as well as a sizeable inferred resource.
Platinum and palladium make up the bulk of the contained precious metals. At Voorspoed, the others are, in decreasing abundance, ruthenium, rhodium, gold and iridium.
SouthernEra believes the new properties can augment known resources. The company had tried to obtain a fourth property, east of Doornvlei, but it was awarded to another company.
Prospecting will begin once permits are obtained.
On March 31, SouthernEra had a working capital deficiency of US$3.3 million.
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