The production of platinum group metals (pgm) at Samancor Chrome's current South African mining operations at Broken Hill, Spitzkop and Buffelsfontein East will increase by approximately 6,000 oz per year.

This represents an eight per cent increase on production in the short term with the operations expected to increase by approximately 33 per cent of production in five to six years as current dumps become depleted.

Sylvania Resources has signed an amendment to the Service and Supply Agreement with Samancor Chrome to treat ROM fines from the three sites in South Africa.

Production of pgms from ROM fines is expected by the end of 2008 with 200 oz/pm expected towards the end of the first quarter in 2009.

Sylvania Chief Executive Officer Terry McConnachie was pleased with the news and said it "marks a substantial step forward for Sylvania in its growth as a specialised, low-cost, high-margin producer of PGMs, primarily from tailings located throughout South Africa's prime, PGM- and chrome-rich Bushveld Complex".

Sources:

Sylvania to treat all run of mine fines from three new Samancor sites, 27/02/08
http://www.mineweb.com/mineweb/view/mineweb/en/page674?oid=48201&sn=Detail

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