Australian mining company Sylvania Resources Ltd (LON:SLV) said platinum group metals production increased by 22% from the previous quarter to 8,294 ounces in the three months to end-March. Sylvania Resources is a platinum group metals (PGMs) producer located in South Africa’s PGM-rich Bushveld Igneous Complex with a medium-term focus on low-cost tailings retreatment operations and, in the longer term, a focus on shallow mining exploration interests. Sylvania is also listed on the Australian Securities Exchange (ASX: SLV) and is a member of the S&P/ASX 300 Index.
Net revenue was R66m, a 26% increase on the previous quarter, on the back of improved prices and increased production at the Millsell and Steelpoort operations. The Millsell operation produced 2,407 ounces from 32,315 PGM feed tonnes. The Steelpoort operation produced 3,343 ounces for the current quarter, a 1,026 ounce increase compared to the previous quarter, from an average head grade of 3.68g/t. The Lannex operation produced a total of 1,425 ounces from an average head grade of 2.23g/t. Operations at the Lannex plant have been temporarily suspended pending the final approvals for the construction of the new tailings facility. Despite being commissioned last September, the Lannex plant had been running at 30 per cent of its capacity due to restrictions on the feed from its temporary tailings dam.
During the quarter, Sylvania completed its drilling programme for the large core bulk sample at the Northern Limb Grass Valley project. Sylvania has three projects on the Northern limb of the Bushveld Igneous Complex, namely the Grass Valley Project, the Hacra Project and the Aurora project. The Northern Limb samples are being tested and results to upgrade the resource to a measured resource are expected within two months.
A strategic alliance with Jubilee Platinum (LON:JLP) progressed to signing of a framework agreement in the current quarter. Sylvania said the agreement strengthens the companies' commitment to provide a total processing capability for processing and refining low-grade and high-chrome PGM tailings and hard rock resources.
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