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Sylvania posts impressive platinum quarter
Allan Seccombe
Posted: Wed, 30 Apr 2008

[miningmx.com] -- JUNIOR platinum metals producer Sylvania Resources is stepping up output towards its target of 70,000 PGM oz by 2009/10 and its production increased by a third in the quarter to end-March 2008.

Platinum group metal (PGM) output reached 4,802 oz in the third quarter of Sylvania’s financial year as grades and volumes improved at its dump treatment operations, helping boost pre-tax profit by 134% to R56m or A$8.3m.

Production from the Sylvania Dump Operations (SDO) are forecast to increase further in the final financial quarter to end-June 2008 on the back of increased plant feed, improved recoveries and improved processes at the Millsell and Steelpoort, which form the backbone of the company at the moment.

At SDO, production grew by 48%, while output lagged at its 25% held Chrome Tailing Retreatment Project managed by Aquarius Platinum. Output fell by nearly 20% at 2,309 total oz because of decreased recoveries blamed on more oxidised material through the plant.

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By the end of the calendar year 2008, Sylvania will a number of further dump treatment plants completed, including Lannex, which, with feed of 70,000 tonnes/month, will be double the size of the existing two plants.

“Increasing SDO production, cost reductions and continued buoyancy of the PGM market augur well for stronger revenues and profits,” said CEO Terry McConnachie of the fourth quarter.

“Groundwork continues to be laid for the company’s future growth in respect of additional tailings dumps and near-surface mining activities,” he said.

Sylvania is engaging Aquarius Platinum to return the Everest North prospect to its larger peer in exchange for the rights to recover PGMs and chromite from Aquarius Platinum tailings.

In the mean time, Sylvania is completing a bankable feasibility study into a mine and plant at Everest North. It is also in negotiations with Eastern Platinum to set up a joint mining venture at Everest North and the contiguous property.