SYLVANIA
RESOURCES LIMITED
(“Sylvania” or the
“Company”) (ASX/AIM: SLV)
- Assessment of a potential JV with Aquarius
Platinum.
- Harriet’s Wish exploration project acquired
– targeting a potential of some 900 000 3E PGM ounces.
- Minor impact expected from current power outages.
Sylvania
Presentation Update: The latest presentation regarding
the current and future operations of the Company will be available to be viewed
and download on the Company's website, at www.sylvaniaresources.com
shortly
Sylvania’s management continues to actively assess and review corporate
opportunities with the aim of significantly growing the company and shareholder
value. While Sylvania’s main area of focus
remains tailings re-treatment, Sylvania’s
is also acquiring strategic holdings in properties with good potential opencast
and near surface platinum resources.
Everest
North
Following
discussions between Aquarius Platinum (South
Africa) “AQPSA” and Sylvania,
it has been agreed that the companies will jointly investigate an equitable JV
arrangement whereby Sylvania
proposes, where permissible, to recover chrome and PGMs from the tailings
streams of AQPSA’s operations. If an equitable solution can be agreed Sylvania will elect not
to exercise its option to purchase the Everest North project and will return
the deposit to AQPSA.
Negotiations
between Sylvania
and AQPSA are at an early stage and a further announcement with regard to the
timing and operation of the proposed Joint Venture will be made in due course.
An update on Everest North and an estimation of the
measured resource is included in the quarterly report of Sylvania to be announced shortly.
Acquisition
of Harriet’s Wish, Cracouw and Aurora from Rustenburg Platinum Mines Ltd
Sylvania and Rustenburg Platinum Mines Ltd
(“RPM”), a subsidiary of Anglo Platinum Ltd, have reached agreement
on the sale from RPM to Sylvania of a new order prospecting right on the farm
Aurora 397LR, and a half share in the new order prospecting right on the farms
Harriet’s Wish 393 LR and Cracouw 391 LR at a price of R2 million,
exclusive of VAT. The conclusion of the sale agreement is subject to the
approval of the Minister of Minerals and Energy, in terms of Section 11 of the
Mineral and Petroleum Resources Development Act 28 of 2002.
The other half share of the new order prospecting
right, on the farms Harriet’s Wish 393 LR and Cracouw 391 LR, is held by
a BEE company, Sika Bopha Trading (Pty) Ltd.
Sylvania has paid the full purchase price into an Attorneys Trust Account, which
shall be payable to RPM upon Ministerial approval.
The agreement between Sylvania and RPM specifies that RPM has the
right of first refusal to any concentrate or further refined product, produced
from the properties.
RPM has made all of its geological information on the
properties available to Sylvania and Sylvania’s
technical staff is conducting a review of this information.
Sylvania has assumed, as a contractor to RPM, the responsibility of fulfilling
RPM’s exploration obligations on the properties until such time as the
Section 11 approval is obtained, following which Sylvania will continue with its own
exploration program.
The properties occur at the northern end of the
so-called Northern Limb of the Bushveld Complex. The Plat Reef, which is mined
for PGMs and base metals, occurs on this Northern Limb and satellite imaging
has shown that the Plat Reef occurs on Harriet’s Wish 393 LR. Sylvania believes there
is a potential target of some 900 000 3E PGM ounces, with associated base
metals.
Eskom
Power outages
At
this stage all of Sylvania’s
operations are dump retreatment operations, therefore the affect of Eskom power
outages are not as severe as for companies which are involved in mining ore.
However, in order to minimize the affect of “rolling blackouts” on
the operations, Sylvania
has planned to forego the regular weekly maintenance shut down and to schedule
maintenance so that it occurs when Eskom power is disrupted by the rolling
blackouts. This strategy is helping to minimize the affects of the power
outages on production. The power outages however remain a cause for concern and
Sylvania are
investigating the practicality of installing generators that will prevent
pipelines from choking when the power is interrupted without warning.
TERRY
MCCONNACHIE
Chief
Executive Officer
The
technical exploration and mining information contained in this report was
compiled by Mr Ed Nealon, a former
Sylvania Resources Ltd director. Mr Nealon provides consulting services via his
company Athlone International Pty Ltd. Mr Nealon is a member of the Australasian
Institute of Mining and Metallurgy and is considered to be a Competent Person
in his respective area of expertise pursuant to the Australasian Code for
Reporting of Mineral Resources and Ore Reserves. Mr Nealon consents to the
inclusion in the report of the matters based on his information in the form and
context in which it appears.
Further
information please contact:
In
South Africa
Terence
McConnachie
CEO
Sylvania
Resources Limited
(+27
11) 803 7214
James
Duncan
Russell
and Associates
(+27
11) 880 3924
In
Australia
Richard Rossiter
Chairman
Sylvania
Resources Limited
(+618)
9324 2955
Mike
Langoulant
Company
Secretary
Sylvania
Resources Limited
(+618)
9481 8711
In
United Kingdom
Richard
Brown
Ambrian
Partners Limited
(+44)
20 7776 6417
or visit our website at
www.sylvaniaresources.com
Kind Regards
Tamara Bolik
Sylvania Resources Limited
98 Colin Street
WEST PERTH WA 6005
Phone: +618
481 8711
Fax: +618
9324 2977
Email: tamara@sylvaniaresources.com
Website: www.sylvaniaresources.com
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