Sylvania Resources Progress UpdateRNS Number:4539ESylvania...

Sylvania Resources Progress Update


RNS Number:4539E
Sylvania Resources Ltd
25 September 2007



Sylvania Resources Limited ('Sylvania' or the 'Company')

Sylvania Progress Update - Steelpoort, Millsell, Everest North



The Directors of Sylvania are pleased to announce positive progress in ramping
up production at both the Millsell and Steelpoort platinum and chrome recovery
plants and completion of the program to upgrade the UG2 platinum deposit at the
proposed Everest North project to a measured resource.


Millsell


Completion and contract sign off to Matomo Pty Ltd for the construction of the
Millsell chrome and PGE float plants was completed, and handover was accepted,
on 13 August 2007.


At Millsell, the Company has produced 348 4E oz of PGM and 9961 tonnes of
chromite during August 2007. The PGM production was significantly higher than
the ramp-up budget, whilst the chromite production set a new monthly production
record at 24.5% above the steady state monthly budget of 8000 tonnes. The
average PGM flotation head grade for the month of August was 5.2 grams per tonne
and budgeted recoveries and concentrate grades have been achieved. The base case
assumptions for the PGM flotation plants, as set out in the Company's
presentation released on 15 May 2007, were grade of 2.5g/t 4PGE and recoveries
of 32.5%. After chromite credits, the PGM costs per ounce at Millsell are
already lower than the budgeted costs, and the current costs at CTRP.


Steelpoort


At Steelpoort, the ramp-up of production is progressing well. Hydraulic mining
of the dumps has been commissioned and target daily feed tonnages have already
been achieved. The plant is operating well with PGM head grades and recoveries
continuing to meet and exceed expectations. The base case assumptions for the
PGM flotation plants, as set out in the Company's presentation released on 15
May 2007, were grade of 2.5g/t 4PGE and recoveries of 32.5%. For the month of
September, both PGM and chromite production levels are expected by the Board to
comfortably exceed the ramp-up budget.


Contractual completion of the Steelpoort chrome and PGE float plants is expected
to be signed off in the next week.


Construction of Plant 3 and 4 at Elandsdrift and Lannex


Construction of the third integrated chrome and PGE float plant at Elandsdrift
was underway and progressing well early in 2007 when development was placed on
hold to focus upon the development of the Millsell and Steelpoort plants.


After discussions with Samancor Limited it was decided to alter the development
schedule and focus resources on the construction of the integrated chrome and
PGE float plant at the Lannex site.


Detailed design is complete at Lannex and site establishment has commenced. It
is currently anticipated that the Lannex integrated chrome and PGE float plants
will be completed prior to the end of the first quarter of 2008.When the Lannex
site is completed, the Company will then return to finalise the Elandsdrift
integrated chrome and PGE float plants and it is currently anticipated that the
Elandsdrift plants will be completed towards the end of the second quarter of
2008.


Commenting on these early results and developments, Terry McConnachie (CEO) said
"the better than forecast head grades and recoveries bode well for the Company
as it moves towards full production by the third quarter of 2008."


Everest North


The drilling program to upgrade the Vygenhoek 10 JT UG2 platinum deposit at the
proposed Everest North project to a measured resource was completed on 8
September 2007 with the finalisation of drill hole VH21.


All planned drill holes from VH1 to VH21 have been drilled with three reef
intersections per drill hole. All holes drilled have intersected well developed
UG2 reef. The entire drill hole core has been logged and sampled for assay and
evaluation purposes. The last assay samples were sent to Genalysis on 17
September 2007 and results are expected to be received by the end of October
2007. The resource estimate and the competent persons report will be prepared as
soon as these results are received and can be expected to be published in
November 2007.


The Environmental Impact Assessment ("EIA") is progressing positively in that
the National Environmental Management Authority has given the approval for the
EIA process on Vygenhoek.


Work on the mining right application is nearing finalisation with the completion
of the Mine Works Program ("MWP") and the Social and Labour Development plan.
Submission of the MWP is due early in October 2007.


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.