A new firm is making headway into the platinum metals scene in South Africa, according to Miningmx.com.

The website said that Sylvania Resources could extract 250,000 ounces of platinum group metals (PGMs) from Samancor dumps and is planning to build final tailing treatment plants to extract PGMs from mid-2007.

In addition, the company is to complete a bankable feasibility study into a mine at Everest North, South Africa, next year.

"We believe there is something like 500,000 oz of PGMs in the tailings dumps and out of that we should be able to recover 250,000 oz over five years," said Terry McConnachie, Sylvania CEO.

The firm said that the direct operating cost of extracting the PGMs will amount to R1,300 per ounce, while each recovery plant will cost a total of R25 million.

"It's a reasonable growth story. With current PGM prices, it will make money and the plants are reasonably cheap to build. It doesn't have any mining risk, just treatment risk," one analyst claimed.


Ÿ Adfero Ltd