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Sylvania Resources Progress UpdateRNS Number:4539ESylvania...

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    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.




 
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