JOHANNESBURG (miningweekly.com) – Platinum-group metals (PGMs) producer Sylvania Resources on Thursday reported that it would initially undertake a two-phased exploration programme on its recently acquired Platreef properties, focusing on the Southern Platreef property, known as the Grass Valley project.

Sylvania aims to establish a series of modular 100 000-t/m processing facilities using the same processing technology currently employed at the company’s existing production facilities. The assets acquired through the acquisitions of Great Australian Resources and SA Metals included a number of advanced and earlier stage projects on the Northern Limb of South Africa’s Bushveld Igneous Complex.

Sylvania’s immediate focus, the company said, was the development of one of those projects at Grass Valley, where the first modular plant was to be established.

Phase one of the exploration programme at Grass Valley would be undertaken with the objective to define a measured Joint Ore Reserve Committee (Jorc) compliant resource from an existing historic inferred resource and to conduct further exploration work at the project.

Drilling was expected to start by the end of 2009 and the definition of a measured resource, which would be sufficient to feed an initial 100 000-t/m flotation plant, was expected to be completed six months from the start of drilling.

Phase two of the project would include the start of a bankable feasibility study (BFS), which was currently targeted for completion in mid-2011.

Sylvania and platinum producer Jubilee Platinum were set to work together as part of the recently announced strategic alliance to establish an optimal processing route.

“By starting work on our recently acquired Platreef ground, Sylvania begins the process of developing near-surface PGM mines to complement our existing PGM tailings operations. Our strategy is to develop a series of low cost 100 000-t/m modular flotation plants with a target to produce 350 000 oz PGM per annum by 2018,” said Sylvania CEO Terry McConnachie.

The delineation work now starting on the Grass Valley project formed part of the company’s strategy to build a significant PGM production base from low-cost surface mining operations to compliment its existing tailings processing plants.

As Sylvania moved towards defining a minable resource at Grass Valley to Jorc-compliant standards, it would simultaneously work with Jubilee to develop a low-cost process route for the publication of a BFS in mid-2011, ahead of the targeted first commissioning in 2012.

As part of its Grass Valley exploration activities, Sylvania would also recover a bulk sample sufficient to commence flotation test work. Jubilee will simultaneously take responsibility for ConRoast smelting test work.

The results of this test work would form a key component of the BFS, which Sylvania intends to commence on the definition of a measured resource.

Sylvania and Jubilee were working to formalise the basis upon which the parties would cooperate on the preparation of the BFS, Sylvania said.

The alliance with Jubilee meant that the costs of completing a BFS would be substantially reduced, as Sylvania and Jubilee would work together to establish an optimal processing route for the concentrate to be produced from the properties using Jubilee’s proven ConRoast facility, at Mintek, in Johannesburg.

Sylvania would separately undertake geological exploration and drilling activities at the Harriet’s Wish, Cracow and Aurora properties.