Drilling Report
July 30 2003 - 12:13PM
UK Regulatory
SouthernEra Declares Indicated Resources of 3.7 Million Ounces
from Second Phase Drill Program at Millennium Platinum Project
Resource Increased by 250 Percent and Upgraded to Indicated Category
Shares Issued and Outstanding: 61,674,459
TSX: SUF
AIM: SRE
TORONTO, July 30 /CNW/ - SouthernEra Resources Limited announced today
that the second phase drilling program at its 100 percent owned Millennium
Platinum Project in South Africa has resulted in the declaration of an
Indicated Resource of 30.6 million tonnes grading 3.76 grams per tonne. This
resource has been calculated by SRK Consulting and complies with National
Instrument 43-101 on resource disclosure.
The Millennium Platinum Project is located on the Eastern Limb of the
Bushveld Igneous Complex, 30 kilometers east of the town Groblersdal in
Mphumalanga Province. The newly declared resource is based on 13 drill holes
varying in depth from 90 meters to 1,100 meters. Each main drill hole has at
least two deflections resulting in 40 representative reef intersections.
The Millennium UG2 chromitite layer has been correlated with the UG2
chromitite layer developed extensively elsewhere in the Bushveld Complex.
However, the platinum/palladium ratio of 2:1 at Millennium is markedly higher
than elsewhere on the Bushveld Complex where the typical ratio is 1:1.
Commenting on the newly declared resource, SouthernEra President and CEO,
Patrick Evans, stated: "We are pleased with the success of the Millennium
Platinum Project. Our initial acquisition cost of about $100,000 has delivered
a multi-million ounce resource at grades that are economic elsewhere on the
Bushveld Complex. The resource declared as a result of the second phase drill
program represents a significant increase over the 1.44 million ounces
declared from the first phase drill program. This is very encouraging as we
consider the future options for the Millennium Platinum Project."
The Platinum Group Element (PGE) mineralisation within the chromitite
layer is bottom-loaded, with the highest concentrations in the lowest two
samples with grades of 5 grams per tonne for the five platinum group elements
and gold (5PGE+Au) over an average width of 37 centimetres. The highest values
are usually in the next-to-basal sample approximately 20 centimetres from the
UG2 footwall.
The reef zone itself is defined by the sharp basal contact into footwall
norite or pyroxenite. Practically all of the economic mineralisation is
restricted to the chromitite and there is insignificant local value in the
footwall pyroxenite.
The average vertical grade distribution within the UG2 reef is available
at: http://files.newswire.ca/248/SouthernEraUG2Reef.doc
In keeping with industry practice in South Africa the three platinum
group elements plus gold (3PGE+Au) were determined by the fire assay method.
The 5PGE+Au were determined from a subset of the samples using the NiS method
at Lakefield Laboratory. This NiS collector assay database has been used to
determine the Ruthenium and Iridium average grades.
The estimation of the Millennium Indicated Resource grade follows methods
applied to the Great Dyke platinum deposits in Zimbabwe. The principle is the
same as the Histogram method, which is dependent on the assumption that metal
grade distributions in the UG2 Chromitite are essentially isotropic and that
there are no directional trends.
The Histogram principle is commonly used for the evaluation of Bushveld
PGE mineralisation and has therefore been adopted for Millennium. The
methodology assigns a global mining grade and width and because it assumes
continuity of reef quality over the entire evaluation area, features such as
potholes or faults are discounted from the resource mass without affecting the
grade.
The Histogram method also requires the assignment of a marker horizon
from which the valuation is based. The bottom-loaded PGE mineralisation of the
UG2 Chromitite at Millennium indicates that the basal contact is this horizon.
Importantly, it is readily identifiable in core and will also be clearly
definable within any future underground development.
The total resource tonnage has been discounted by 25 percent for
geological losses to allow for faults, dykes, pegmatoids and potholes.
The estimated tonnage minus the 25 percent allowed for geological losses
yields the resource tonnages as shown in the table below.
Indicated Resource Estimate of the UG2 Reef Millennium Project
-------------------------------------
Reef Thickness
-----------------------------------------------------
Area Density m m m M m
Mm3 m3/t 0.90 0.95 1.00 1.05 1.10
-------------------------------------------------------------------------
Area Mt Mt Mt Mt Mt
-------------------------------------------------------------------------
Blaauwbank 2.48 3.52 7.9 8.3 8.7 9.2 9.6
-------------------------------------------------------------------------
Rietkloof 9.12 3.52 28.9 30.5 32.1 33.7 35.3
-------------------------------------------------------------------------
Total 11.6 36.7 38.8 40.8 42.9 44.9
-------------------------------------------------------------------------
Less Geological
Losses 25% 27.6 29.1 30.6 32.2 33.7
-------------------------------------------------------------------------
Pt g/t 1.98 1.92 1.86 1.81 1.75
-----------------------------------------------------
Pd g/t 1.03 1.01 0.98 0.95 0.92
-----------------------------------------------------
Rh g/t 0.24 0.24 0.23 0.22 0.22
-----------------------------------------------------
Au g/t 0.05 0.04 0.04 0.04 0.04
-----------------------------------------------------
Ru g/t 0.55 0.53 0.52 0.50 0.48
-----------------------------------------------------
Grade Ir g/t 0.13 0.13 0.12 0.12 0.12
-----------------------------------------------------
Ni ppm 356 348 340 332 324
-----------------------------------------------------
Cu ppm 177 174 170 168 164
-----------------------------------------------------
4E g/t 3.30 3.21 3.12 3.02 2.93
-----------------------------------------------------
6E g/t 3.98 3.87 3.76 3.64 3.53
-------------------------------------------------------------------------
The current resource area is defined on the basis of drill hole location
with the boundary taken at mid-way between drilled and non-drilled sites on
the 800-meter x 800-meter grid, the transgression of the Main Zone and
property ownership. The project area is open-ended to the northwest, north and
northeast.
The Millennium resource has been categorised by SRK Consulting as
"Indicated" in accordance with the South African Code for Reporting of Mineral
Resources and Mineral Reserves (SAMREC), which conforms to the requirements of
National Instrument 43-101. The Independent Qualified Person in respect of the
Millennium resource statement is Dr. Anthony Martin, B.Sc., D.Phil. of SRK
Consulting.
SouthernEra Resources is an independent producer of platinum group metals
and diamonds. The company also has an extensive platinum group metal and
diamond exploration program. The common shares are listed on the Toronto Stock
Exchange and the London Stock Exchange's AIM market.
For further information: PLEASE CONTACT: SouthernEra Resources Limited,
Dr. Sally Eyre, Vice President, Corporate Affairs, Telephone: (416) 359-9282,
Fax: (416) 359-9141, E-mail: inbox(at)southernera.com, www.southernera.com
(SUF.)
END