Sylvania Platinum (SLP)

Shares / Stock Code

SLP

Stock Exchange / Sharemarket

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Sylvania Platinum Limited (SLP) is a platinum group metals producer located in South Africa's Bushveld Igneous Complex with a medium-term focus on low-cost tailings retreatment operations that are already contributing revenues and, in the longer term, a focus on shallow mining exploration assets.

Tailings Retreatment
The principal part of Sylvania’s tailings reteatment business currently comprises a 74% interest in Sylvania Dump Operations (SDO), which, in terms of a service and supply agreement with Samancor Chrome (Pty) Limited (Samancor Chrome), treats chrome tailings to recover PGMs from Samancor Chrome’s mines on the Western and Eastern Limbs of the Bushveld Igneous Complex.

To service Sylvania’s Samancor Chrome agreement, two plants – Millsell and Steelpoort – became fully operational during the 2007-2008 financial year. Process improvement projects at both plants, involving the addition of beadmills and extra cleaner flotation cells, which have improved recoveries. Construction of two additional plants, Lannex and Mooinooi, is under way, with commissioning and ramp-up of production at both scheduled to begin in the first quarter of 2009.

In terms of an addendum to the Samancor Chrome agreement, a right has been secured to treat an estimated annual 300,000t of run of mine (ROM) from Samancor Chrome’s Broken Hill, Spitzkop and Buffelsfontein East chrome mines to win PGMs. ROM from Broken Hill and Spitzkop will report to the Lannex plant for treatment and those from Buffelsfontein East to the Mooinooi plant. The Doornbosch and Tweefontein plants, due for construction in the latter half of FY09, will lift production profile to 61 000 PGM oz.

In addition, Sylvania has a 25% interest in the Chrome Tailings Retreatment Plant (CTRP) at Kroondal on the Western Limb, managed by Aquarius Platinum Limited, which treats the Xstrata and Beyer chrome tailings to recover PGMs.

Near-surface Mining Exploration Projects
The company’s shallow exploration sites are spread widely across the Northern and Eastern Limbs of the Bushveld Igneous complex and comprise: the Everest North UG2 exploration project on the Eastern Limb, which has a measured resource of 5.1 million tons of ore grading 4.7g/t combined platinum, palladium, rhodium and gold. In terms of an agreement, notice has been served on Aquarius Platinum (South Africa) (Pty) Ltd (AQPSA) that the project is viable and Sylvania intends to mine the property. At the same time, the company and Eastern Platinum Limited are in discussions on a possible joint venture in respect of the Vygenhoek and Mareesburg properties; through ASX-listed Great Australian Resources Limited (GAU - in which Sylvania holds an 19.9% interest), the Harriet's Wish, Cracouw and Aurora exploration projects on the Northern Limb of the Bushveld Igneous Complex and the near-surface Merensky Reef platinum/nickel exploration project, Mooiplats.

These assets, coupled with well-resourced metallurgical and engineering expertise, position the company firmly as a low-cost, low-risk high-margin PGM producer when compared to conventional underground platinum miners. And the company's strategy is based on deploying revenues from the retreatment operations to fund the longer-term mining prospects.

Sylvania is listed on the Australian Securities Exchange (ASX: SLV), is a member of the S&P/ASX 300 Index, and is listed on London's AIM market (SLV).