SouthernEra expands PGM portfolio

In South Africa, SouthernEra Resources (SUF-T) has nabbed another 9 km of the Bushveld’s UG2 and Merensky reefs, which, combined, host the world’s largest platinum deposits.

SouthernEra currently exploits both reefs at its 70.4%-owned Messina platinum group metals (PGM) mine. Reserves there are pegged at 26.4 million tonnes grading 6.3 grams PGMs plus gold, sufficient to keep the concentrator fed for 17 years.

Messina began production in September 2000 and is expected to reach commercial production rates of 159,000 oz. precious metals in 2003. The concentrates are being smelted and refined by Impala Platinum, the world’s second-largest platinum producer.

Life-of-mine cash costs are pegged at US$150 per oz. platinum (net of byproduct credits).

The new property, dubbed Millennium, sits on the eastern limb of the Bushveld igneous complex, just north of where it is cut by the Steelpoort fault. Here, the reefs dip 12-15, far shallower than at Messina, which also sits on the eastern limb.

An initial phase of mapping will be followed by 2,000 metres of drilling. Four shallow holes will test the UG2 layer to a depth of 100 metres, and three others will be drilled four times as deep to test both reefs.

In addition to Messina, SouthernEra operates the nearby Klipspringer diamond mine. Ownership is shared equally with Anglo American (AAUK-Q) subsidiary De Beers Consolidated Mines, and an associated black empowerment group.