newswire.ca
"The M3 kimberlite was discovered during previous exploration work and
initial drilling delineated an elongated kimberlite body with a strike length
of 100 metres and a true width of up to 10 metres.
The kimberlite is overlain by 3 metres of sand and grit and 6 metres of
gravel. A sample trench was excavated across the kimberlite, perpendicular to
the strike, and a 154 tonne bulk sample of the top 2 metres of the gravel
horizon was treated in SouthernEra's 100 tph plant. 211.5 carats were
recovered, including one special stone weighing 13 carats, from this sample
yielding a grade of 137 carats per hundred tonnes (cpht)."
We have a little hint that the M3 gravels and kimberlite will be worth running through the plant. Finding a 13 carat stone in a 154 tonne sample is really nothing short of spectacular and would indicate that there would be many more special stones to come from this location. I would expect that this is the reason why they have focussed exploration activity on this particular anomaly.
I do not think that they have added two 50 tph additions but they have increased capacity more than just the 50 tph and 10 tph.
From the annual report:
A second thickener was ordered in late 1998 and commissioned in January, 99. A new recrush crusher has been ordered and will be installed in April 99. A decision was made to add a second processing plant rated at 50 tph, immediately adjacent to the existing 100 tph plant to process Klipspringer ore.
I am a little bit concerned about the rationing stuff as well as the drop in price per carat. I can certainly see why others would be asking questions.
diamondregistry.com
"Total Russian sales to De Beers in 1998 will total somewhere around $900 million, well above the guaranteed minimum. With the ruble recently devalued, the Russian government bankrupt, and the same government owning 32% of Alrosa, it seems safe to speculate that that total will not fall to the minimum guaranteed. In effect, De Beers has increased its share of the world diamond supply to 80%. "It's important that the biggest producers cooperate closely and inspire confidence in the diamond market," said Nicky Oppenheimer, chairman of De Beers Centenary."
I kind of thought that 1998 was a low point for the diamond market.
There was no rationing here-in fact it seems quite the opposite.
Of course if De Beers was not buying the Russian stones, I expect that they would be finding their way to market through other channels.
For those who have not checked the 1Q on the web site, it does contain a great deal more info than the little blurb in the news.
southernera.com
Go Investor info
Go annual reports. |
