Following the completion of the acquisitions of SA Metals Limited ("SA Metals") and Great Australian Resources Limited ("Great Australian Resources") and a review of the acquired properties, Sylvania is pleased to provide details of its strategy for the exploration and development of its Platreef properties.
SYLVANIA WILL CONTINUE GEOLOGICAL WORK ON THE HARRIET'S WISH, CRACOW AND AURORA PROJECTS.
Sylvania CEO Terry McConnachie said "By commencing work on our recently acquired Platreef ground Sylvania begins the process of developing near surface PGM mines to complement our existing PGM tailings operations. Our strategy is to develop a series of low cost 100 000 tpm modular flotation plants with a target to produce 350 000oz PGM per annum by 2018."
Sylvania aims to establish a series of modular 100 000 tpm processing facilities using the same processing technology currently employed at the Company's existing production facilities. The assets acquired through the acquisitions of Great Australian Resources and SA Metals include a number of advanced and earlier stage projects on the Northern Limb of the Bushveld Igneous Complex. Sylvania's immediate focus is the development of one of those projects at Grass Valley, where the first modular plant is to be established.
Sylvania has a longer term aim to establish eight facilities funded from internally generated cash flow, contributing to targeted group wide production of 350,000oz PGM per annum by 2018.
The delineation work now commencing on the Grass Valley project forms part of the Company's strategy to build a significant PGM production base from low cost surface mining operations to compliment its existing tailings processing plants. As Sylvania moves towards defining a minable resource at Grass Valley to JORC compliant standards it will simultaneously work with Jubilee to develop a low cost process route for the publication of a BFS in mid 2011, ahead of targeted first commissioning in 2012.
As part of its Grass Valley exploration activities, Sylvania will recover a bulk sample sufficient to commence flotation testwork. Jubilee will simultaneously take responsibility for Conroast smelting testwork. The results of this testwork will form a key component of the BFS which Sylvania intends to commence on the definition of a measured resource. Sylvania and Jubilee are working to formalise the basis upon which the parties will cooperate on the preparation of the BFS and further announcements will be made in due course.
The alliance with Jubilee means that the costs of completing a BFS will be substantially reduced as Sylvania and Jubilee will work together to establish an optimal processing route for the concentrate to be produced from the properties utilising Jubilee's proven ConRoast facility at Mintek in Johannesburg.
Sylvania will separately undertake geological exploration and drilling activities at the Harriet's Wish, Cracow and Aurora properties.
The Company's latest corporate presentation including further details of the Platreef strategy outlined above and the Company's latest production targets is available for download from the Company's web site (www.sylvaniaresources.com) or from the following web link:
http://www.rns-pdf.londonstockexchange.com/rns/0089C_-2009-11-5.pdf<fipB R>
For further information please contact:
South Africa
Terence McConnachie
Managing Director, +27 11 6731171
Louis Carroll
Finance Director/Joint Company Secretary, +27 11 6731171
United Kingdom
Richard Brown/ Richard Greenfield
Ambrian Partners Limited, Nominated Adviser +44 20 76344700
Laurence Read/Beth Harris
Threadneedle Communications, Public Relations Adviser +44 20 76539855
Australasia
Richard Rossiter
Non Executive Chairman, +61 418688338
Grant Button
Director/Joint Company Secretary, +61 8 92264777
This information is provided by RNS
The company news service from the London Stock Exchange
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