Hello GS
This on the wire for 1st Mate & Diamond Daze:
Black Swan Gold Mines Ltd. announces strategic move into diamond trading
VANCOUVER, July 20 /CNW/ - Black Swan Gold Mines Ltd.
Trading Symbol: TSE - BSW
BERLIN - BSM
FRANKFURT - BSM
Black Swan Gold Mines Ltd. (''Black Swan'') is pleased to announce that
its Board of Directors has decided to make a strategic move into the diamond
trading business. The Company believes that a program of investment in
special large or coloured stones will complement its ambitions to become a
significant producer, finisher and marketer of both rough and polished
diamonds.
In line with this decision, the Company has made its first substantial
investment in an exceptional diamond, weighing 79 carats and intense pink in
colour. The diamond in question was discovered by artisinal miners
(garimperos) working near to properties held by Black Swan, in the Abaeté
River, close to the town of Três Marias in northern Minas Gerais, Brazil.
The diamond has been christened ''Estrela Rosa do Milênio'' (Pink Star of the
Millennium) by the local miners.
WWW International Diamond Consultants Ltd. of London, England was
retained by the Company and has confirmed the Company's view that the diamond
in question is a very important stone, which because of its size and quality
is exceptionally rare, if not unique.
In recent years, polished diamonds of an intense pink colour and good
clarity have sold in the range of US$400,000 to US$700,000 per carat. WWW
have estimated that a realistic valuation for the rough diamond could be
around US$130,000 per carat but, that due to its exceptional nature, the price
could greatly exceed this depending on the degree of desirability it has
amongst a select group of individuals who may consider such a purchase.
The Company now intends, along with its local partners, to further study
the diamond and market it internationally. Similar investments will be made
when the correct opportunities arise.
With respect to the Company's operating activities, the first stage of
due diligence on the Tejucana operation has not revealed any serious concerns.
It is believed that the Company will be in a position to make a decision
whether or not to exercise the option prior to the September 5 deadline.
The Gamela JV at Coromandel (Black Swan has an option to earn 51%) is
progressing well. The remaining equipment for the processing plant is
currently being installed and final commissioning is expected to commence
shortly. Once completed, it is expected that the plant will have the capacity
to treat 2,000 cubic metres of gravels per day. Reports covering the first
phase of exploration at Gamela have now been completed and applications to
commence the bulk sampling phase are now being lodged with the government
agencies. Sampling work will commence once the necessary permitting is in
place.
Speaking today, Mr Stephen Fabian, President of Black Swan, said
''historically Brazil has produced some of the world's most important fancy
large and coloured diamonds and entering into the trading business, which I
believe will be profitable in its own right, is also a natural step forward in
our ambition to become a vertically integrated diamond company''.
This news release contains certain forward-looking statements that
involve risks and uncertainties. In the light of the inherent risks and
uncertainties in any forward looking statement, such statements should not be
construed as a representation by the Company that the contents will
materialise. Furthermore, the Company relies on litigation protection for
forward looking statements.
P.S. Woops GS sorry, just noticed you had picked this up.
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