HIGHLIGHTS • Sylvania concludes Addendum to the Services and Supply Contract with Samancor Limited • Sylvania signs fixed priced contract for construction of two PGM Recovery Plants • Sylvania signs shareholder agreement with Black Empowerment Partner • Sylvania concludes sale of its Australian tenements • CTRP production increased 5% to 1954 PGM ounces (Sylvania attributable 488 PGM ounces)
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This will see Sylvania with two CWPs and two PRPs in production by the end of June 2007. The Company will develop a further three CWPs and two PRPs over the next 18 months.
The BEE funding from Ehlobo, as announced on 13 February 2007 will be used to advance planned developments at Elandsdrift and Buffelsfontein. Accordingly, the Company has brought forward the commissioning dates of the Elandsdrift CWP to September 2007 and the Buffelsfontein/ Elandsdrift PRP to November 2007. The Lannex CWP is scheduled to be commissioned in April 2008 and the Tweefontein PRP is scheduled to be commissioned in May 2008. The Company will then have five CWPs and four PRPs operational from June 2008.
The Company plans to diversify into primary mining activities through the development of the Everest North PGE project on which the Bankable Feasibility Study is scheduled for completion by August 2007
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Diamond drilling at Everest North to upgrade the deposit to the measured category is nearing completion. To date, 18 out of the planned 21 holes have been drilled, each with three reef intersections (from deflections or twinned holes) and all have intersected well developed UG2 reef. Two holes (Numbers 17 and 20) are in progress and one hole has been abandoned (Hole 11) due to shallow reef and poor surface conditions. Drilling completion was originally expected by end of March 2007 but unusually heavy rain hampered access to drilling sites and pushed back the completion date by about a month.
SLV Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
