Following receipt of a bankable feasibility study,
Messina’s principal asset, three mineral leases at Voorspoed and Doornvlei (about 15 km southeast of SouthernEra’s Klipspringer diamond mine), saw development in the early 1990s, but was mothballed by Implats. SouthernEra and Implats came to an agreement in April, 1999, under which the Canadian junior would earn a 54% interest by paying $16.3 million and completing a feasibility study. Another condition was that Implats and SouthernEra come to a smelting and refining agreement for concentrate from Messina. The study indicated an internal rate of return of 36.3%, with a net present value of US$121.7 million at a 10% discount rate. Capital costs are pegged at US$86 million, not counting US$20 million already spent on the project. Average operating costs are pegged at US$150 per oz.
The study, which was based on the Voorspoed section only, envisions the simultaneous mining of the UG2 and Merensky reefs, two of the Bushveld’s known platinum strata, at a combined rate of 80,000 tonnes per month. The ore would be processed in a mill-float plant producing both high and low-grade concentrates. The combined concentrates would be shipped, in slurry form, to Implats’ smelter near Rustenburg in the Northwest province. The prefeasibility study was based on a measured resource of 11.2 million tonnes averaging 6.85 grams per tonne in combined platinum group metals (PGM) plus gold. The total resource estimate to a depth of 1,000 metres stands at 21.2 million tonnes grading 6.85 grams PGM plus gold. The mine life has been estimated at 17 years with average yearly production of 159,000 oz. Doornvlei, to the east, contains a drilled resource to 1,000 metres of an additional 26.8 million tonnes grading 6.05 grams combined PGMs plus gold. SouthernEra expects to begin development at Messina in the first half of 2000. The operation will be cranked up to full steam in three years.
Be the first to comment on "SouthernEra tables feasibility for Messina"