Sylvania Resources should be able to treat roughly 800,000 tonnes of tailings at its South African operations by 2011, it emerged on Wednesday (25th November).

The platinum junior currently operates six plants which process the precious metal from 13 dumps belonging to Samancor, the world's second-largest chrome producer.

At present, the company treats about 37,000 tonnes in each plant, but Chief Executive Terry McConnachie confirmed that it is intending to increase that number considerably.

"They'll be 100,000-tonne feed plants and we plan to built up to eight plants, phased one year apart, over the next few years," he said in an interview with Finance News Network.

Mr McConnachie added that Sylvania's attempts to reach this target will be boosted by its recent acquisition of Great Australian Resources and Pan Palladium Limited.

He also expressed his belief that the firm is well-positioned for the future as it is a "very low-cost operation" which is running with margins of $350 per oz at present.

"We have seen the platinum price pick up now, almost to $1,300 or just over $1,300 an oz, and we are way over the 50 per cent margin," he noted.

"All our operations are profitable at an operational level, so when this platinum price picks up obviously our margins pick up."

Sylvania Resources is focusing its efforts on the Bushveld Complex in South Africa and hopes to attain annual pgm production of 70,000 oz by 2010.

Source:

Interview: Sylvania Resources: Update (25/11/09)

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