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Here is the news:
SOUTHERNERA RESOURCES LIMITED - LUO CONCESSION, ANGOLA
- Fourth Quarter Production Results
TORONTO, Dec. 22 /CNW/ - SouthernEra Resources Ltd., (TSE-SUF) is pleased
to announce production results from the Luo Concession in northeast Angola for
the period October 23, 1997 to December 12, 1997. The data represents
approximately 35 days production from the flood plain area, and 42 days
production from the newly diverted river channel. Non production days during
this period involved maintenance, plant modification, weather related delays,
and Sundays. For most of the operating period, the newly commissioned pan
plant, and mechanized flood plain mining, operated 24 hours per day. The river
bed production, utilizing pumps and divers, operated during daylight hours
only. Flood plain material processed consisted of previously stockpiled
gravels, and newly mined material from the drier areas of the flood plain.
Most of the river bed gravel processed represented cleanup in areas partially
mined last season.
A total of 3385.5 carats were recovered during the period, comprised of
1703.3 carats derived from the flood plain and 1682.2 carats from the old
riverbed. Approximately 2500 carats of the total were produced during 11
working days in December reflecting continuing improvements in the efficiency
of the plant operation, and higher riverbed gravel recoveries.
Average stone size for the riverbed, and flood plain diamonds from this
production, are approximately 0.75 carats, and 0.35 carats respectively. A
number of larger stones up to 8 carats in size are included in the parcel.
Sale of the stones is expected to take place later this year.
Mining and processing will resume at Luo in mid January. In the interim,
the site crew will begin excavating a new drainage canal to divert a
previously unmined section of the river to the north of the present diversion.
This area represents a stretch of river down stream from a strong rapids,
similar to the present diversion section where numerous large, high quality
diamonds were recovered in 1996.
A number of upgrades are planned for the plant as part of the early 1998
work program, and increased mechanization will be introduced into the river
diversion gravel recovery operation to permit a higher production rate for
this material. Most gravels from both sources will be processed in the pan
plant.
SouthernEra has a 10% interest in the fluvial (riverbed) deposits, and a
35% interest in the flood plain gravels at Luo. The Company has now assumed
responsibility for the Luo operation, and has an agreement in principle with
its South African partners whereby SouthernEra's current interests will be
replaced by a 30% interest in production from both the fluvial (riverbed), and
flood plain gravels.
Regards |
