| Fri 18 Jun 2004, 15:27 | | SouthernEra Reports On Progress At Messina Platinu |
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Messina Limited - SouthernEra Reports On Progress At Messina Platinum
Messina Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1950/035912/06)
JSE Share Code: MES
ISIN: ZAE000004438
(`Messina` or `the company`)
The following is a news release issued by SouthernEra Resources Limited, the
company`s holding company, in Toronto on 17 June 2004.
June 17, 2004
Shares Issued and Outstanding: 74,707,883
TSX: SUF
AIM: SRE
Southernera Reports On Progress At Messina Platinum
* Successful First Blast on Mechanized Long-hole Stope
* Phase 2 Feasibility Study On Track
* Continuous Operations Implemented
Toronto, Ontario June 17, 2004 - SouthernEra Resources Limited today reported on
progress at the Company`s 73.1 percent subsidiary Messina Platinum where the
successful first blast on the new mechanized long-hole stope between the 350 and
370-meters occurred on June 14, 2004.
This successful first blast represents the culmination of planning that began
almost two years ago to implement mechanized long-hole stoping as the principle
mining method on the new lower levels of the mine below the 350-meter level.
Prior to this, the primary mining method has been labour-intensive conventional
down-dip stoping, which is currently being practiced on the four upper levels of
the mine above the 350-meter level.
With the main 180,000 tonne per month shaft sunk to its current depth of 440
meters, a trackless workshop was built on the 350-meter level and construction
of the decline ramp from the 350-meter level commenced in mid-2003. The ramp is
currently below 390 meters and development to depth is progressing well.
Development off ramp of the first two sublevels on the UG2 reef at 370 and 390
meters commenced in January and June 2004, respectively, and has also progressed
well.
In support of this development and stoping, Messina has acquired its own fleet
of trackless equipment, which for primary development includes a DO6 twin-boom
drill rig in conjunction with an Elphinstone R1600 LHD and an AD30 low profile
30-tonne truck; and for reef development includes two Quasar 1F drill rigs in
combination with an EJC116 LHD. The long-hole drill rig is a Tamrock Solo CMAC.
This first long-hole blast occurred on the 2-West stope of the UG2 between the
350 and 370-meter levels. In one single stope blast, which is believed to be the
largest blast ever on an underground platinum mine in South Africa,
approximately 600 tonnes of reef was broken between the two levels. Both the
hanging and footwalls held up very well and a very satisfactory reef
fragmentation was achieved.
Commenting, Messina`s Mine General Manager Glenn Baldwin said: `The steep-
dipping reefs at Messina Platinum appear ideal for the implementation of long-
hole stoping. Also, Messina`s relatively wide reef structure lends itself to
mechanized mining. This makes Messina unique amongst South African platinum
producers in being able to support mechanized long-hole stoping.`
Mr. Baldwin added: `I am very satisfied with the results of this first blast. It
represents an important step forward for Messina Platinum, confirming that the
implementation of mechanized long-hole stoping should be successful. This mining
method is far superior to the conventional down-dip stoping currently being
practiced on the four upper levels of the mine. Significant productivity and
cost improvements can be expected from the successful implementation of this new
mining method.`
As previously reported, the scoping study for Messina`s Phase 2 Project
(Doornvlei and Dwaalkop Sections) has proposed mechanized long-hole stoping as
the primary mining method. The initial results at the Phase 1 Mine (Voorspoed
Section) have increased the level of confidence in this mining method for the
Phase 2 Project.
SouthernEra also announced that the Phase 2 feasibility study is on track for
completion at the end of June when it will be presented to the Board of Messina
Platinum, which controls the Doornvlei Section, as well as the Board of the
SouthernEra/Mvelaphanda Joint Venture, which controls the Dwaalkop Section. It
is anticipated that the results will be released in the third quarter once
approved by the two boards.
Messina Platinum has also completed the implementation of continuous operations
at the Phase 1 Mine. The implementation of continuous operations on the shafts,
engineering and support services occurred without incident during May. However,
the implementation of continuous operations on development and stoping was met
with some resistance at the beginning of June as a small rival union to the main
recognised union at Messina engaged in minor illegal industrial action in
opposition to its implementation. This action disrupted development and
production during the last week of May and the first week of June and has
resulted in disciplinary action being taken against approximately 90 of
Messina`s 1,900 employees. Forty-five of the 90 suspended employees have so far
been dismissed. Development and stoping returned to normal last week and the
benefits of continuous operations will become apparent in the months ahead.
Commenting on recent developments at Messina Platinum, SouthernEra`s President
and CEO Patrick Evans said: `Messina continues to make steady progress towards
operating profitability, despite the continuing strength of the South African
Rand. While labour performance remains below expectations important progress
has been made in recent months to improve the mine`s development rates, tighten
cost controls and to implement mechanized long-hole stoping. The implementation
of continuous operations will also improve operating efficiencies. This provides
a strong foundation for the mine to continue its build-up to full production
during the third quarter`.
Mr. Mike Cowell, Professional Geologist is the Qualified Person in respect to
the phase 1 project and Dr. Anthony Martin, Professional Geologist is the
Qualified Person in respect to the phase 2 project.
SouthernEra Resources is an independent producer of platinum group metals and
diamonds. The company also has an extensive PGM, gold 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
Mr. Patrick Evans, President and CEO, or
Telephone: (416) 359-9282
Fax: (416) 359-9141
E-mail: inbox@southernera.com
www.southernera.com
Rosebank
18 June 2004
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited) CORPORATE FINANCE
Date: 18/06/2004 03:02:38 PM Produced by the JSE SENS Department
