SouthernEra converts resources at Messina (March 17, 2003)

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

The previous estimate, tabled in July 2002, was 5.3 million tonnes grading 4.3 grams platinum group elements 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%, and UG2 reef grade dilution of 8%.

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

Meanwhile, SouthernEra has agreed to support and underwrite another rights offering by Messina. A similar move in November 2002 resulted in SouthernEra’s boosting its stake in its subsidiary to 70.9% from 70.4% by taking up unsubscribed-to shares.

The deal saw about 90% of Messina’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. Proceeds totalled $70 million.