Hello Crudestope
A few bits of news and info. This was on stockhouse tonight and sent to me by a friend and fellow shareholder. My friend asked, "Why doesn't SUF issue news releases?"
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Canabrava Diamond Corporation (CDNX:CNB)
Canabrava's Brazil J-V with SouthernEra
Targets Hardrock and Alluvial Diamond Sources
Canabrava Diamond Corporation (CDNX:CNB) is moving ahead both on assessment
of potential "hardrock" diamond sources and on alluvial diamond exploration
at its 480,000 hectares of diamond properties in Brazil.
The company has partnered with SouthernEra Resources, the successful South
African diamond miner, for what is now believed to be one of the largest
diamond exploration programs in this vast South American country.
SouthernEra is the operator and has the right to earn a 50% interest in the
project by spending a total of $US 20-million over seven years to explore
Canabrava?s grounds. The j-v includes a firm commitment by SouthernEra to
spend $US 1.5-million on project work in the first two years.
While the systematic exploration program to identify primary diamond-bearing
kimberlite and lamproite pipes continues methodically, the potentials of the
alluvial exploration effort are getting increased attention as well.
The occurrence of high-value diamonds from the many rivers draining the
project area is well known. During 1999, local miners recovered 79-carat and
54-carat pink diamonds from the Rio Abaete, a few kilometers downstream from
the joint venture claims. The regular recovery of high-value stones such as
these has prompted the joint-venture partners to accelerate the alluvial
exploration program to locate and define diamond-bearing gravels in
terraces, paleochannels, and the active river drainages. The six priority
areas defined for follow-up work are being evaluated by trenching and auger
drilling.
Alluvial Testing Starts in Brazil
Right now, the exploration program is two-pronged. First, they are exploring
for the primary source rocks of the diamonds occurring in the rivers in the
Coromandel ? Patos de Minas region of Minas Gerais State. And a concurrent
program is designed to locate and exploit economic diamond-bearing
paleo-gravels associated with the modern day drainage systems.
The primary diamond source rock exploration program has defined two high
interest target areas. The first area is located to the south of Patos de
Minas in the headwaters of the diamond bearing SÆo Bento and Abaet‚ rivers.
Recent project samples from this area have produced some of the best
subcalcic (G10) garnets (diamond indicator minerals) discovered in Brazil.
These high-interest garnets have been recovered from both stream and
volcaniclastic rock samples. To date no diamonds have been recovered from
the coarse fractions of bulk samples of these volcaniclastic rocks,
collected late last year. A small amount of the fine fractions of these bulk
samples remains to be sorted for diamonds. It is considered likely that the
volcaniclastic rocks are secondary collectors of indicator minerals that
were originally derived from an earlier erupting diamondiferous kimberlite
source.
The j-v partners believe that the G10 garnets from the volcaniclastic rocks
and the diamonds found in the local drainages are derived from the same
primary source. Detailed geologic mapping and careful analysis of the local
stratigraphy and tectonic history has led to an understanding of the
evolutionary history of the volcanism in the region. As a result, a
geological model has been developed for the intrusion of the local
diamondiferous kimberlites. A program of intensive stream and rock sampling
is currently underway in the priority areas, in an attempt to locate the
diamond source rocks.
The second high-interest area is located on the interfluves between the
Santo Ant“nio do Bonito, Santo In cio and Douradinho rivers, in the vicinity
of the town of Coromandel. A number of the best diamonds in Brazil have been
recovered from these three drainage systems. In this area a major
G10-bearing garnet anomaly is being investigated. Detailed sampling has
shown the garnet anomaly to be of limited extent and the elevated garnet
abundance at this locality suggests that it is proximal to its primary
kimberlite source. Anecdotal evidence gathered from local farmers suggests
that diamonds have been recovered from the site being investigated. On-site
testing of a bulk sample has recently commenced in order to test for the
presence of diamonds at this locality.
In addition to testing of the garnet locale, SouthernEra recently started on
a detailed sampling program on a G10 garnet-bearing kimberlite pipe. This
kimberlite has been sampled on a close spaced grid with the samples being
collected below surface using a backhoe. The samples include a number of
close-spaced 200 litre grid samples, in addition to seven mini-bulk samples
each of approximately one cubic metre in size. All samples will be processed
for diamonds at the Project's laboratory facility in Patos de Minas.
As indicated, the recovery of high value alluvial diamonds from this part of
Minas Gerais is well known. The alluvial diamond exploration program has
made significant progress with a basin analysis of the drainage systems in
the project area. As a result of this work, six sites have been located
along the Abaet‚ River which have potential to host diamond-bearing
paleo-gravels. Significant diamond recoveries have been made by local miners
along this stretch of the Abaet‚ River.
Considerable delays encountered in the environmental permitting procedure
have now been overcome and alluvial gravel mapping and testing began this
month.
Canadian Diamond Programs
Meanwhile, Canabrava has also emerged as a dominant junior exploring for
diamonds in the newest diamond exploration hotspot in Canada ? the
Quebec/Ontario region.
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This was posted on the SUF web site:
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Patrick Evans Interview with Moneyweb
June 12, 2000
MONEYWEB: Patrick Evans is with us now, the director of SouthernEra Mining. We told you about the story yesterday. Patrick was abroad, he's just got back into the country, so we did manage to track him down. Earlier in the week there was a shareholder revolt -- I guess that is all you can call it -- at SouthernEra Mining. This happened in Canada and we will find out from Patrick the relevance. But, Patrick, first of all, you are South African -- how did you manage to get onto the board of this Canadian-based business?
PATRICK EVANS: That's a long story, Alec. I represented South Africa in Canada as Consul-General for a number of years and when I left that position, I was invited to join the board of SouthernEra.
MONEYWEB: All right. Now, there were eight of you before the shareholders' meeting earlier this week. When the dust had settled, only two of the directors -- including yourself -- were still on the board. What actually happened? What were shareholders upset about?
PATRICK EVANS: They were upset about a handful of things. First of all, as you probably know, Alec, it's fairly historic. Only this happened in Canadian corporate history before where the owners of the company, the shareholders essentially, fired the majority of the board. The reasons principally behind it were the rise in the tide of dissatisfaction with the company's lack of direction, the poor performance of the share price over an extended period, and then, I think, to cap it all, the proposed move of the company's head office from Toronto to Denver. Those few events, I think, just culminated to exhaust the patience of the owners of the company and they booted six of the directors out.
MONEYWEB: The MD?
PATRICK EVANS: No, the president of the company, who we would call the MD in South Africa, Steve Banning. He was one of the directors who were booted out, and he left the company yesterday as well.
MONEYWEB: There is a South African connection. Going back a couple of years, SouthernEra Mining had a go at De Beers, wasn't too successful. But, at the moment, there's more of a platinum prospect ? tell us about that.
PATRICK EVANS: SouthernEra currently is in partnership with De Beers -- and by the way, it is a very successful partnership -- at the Marsfontein Mine in the Northern Province. Immediately adjacent to the Marsfontein Mine is SouthernEra's 100%-owned Klipspringer Diamond Mine. Messina is about 25km to the south-west of these two diamond properties and in a sense you almost drive past it when you go to the diamond mines. Chris Jennings, the non-executive chair, the former president of the company, has been aware of Messina for a number of years, and we entered into discussions with Impala and we were successful in persuading them to relinquish their 54% interest in Messina Limited. And, in the compulsory offer to minorities, we have subsequently been able to increase SouthernEra's stake to just over 70% of the publicly listed company.
MONEYWEB: Does this mean that SouthernEra is going to develop that platinum prospect?
PATRICK EVANS: We've already started. The de-watering of the shaft has begun and, as soon as that is done, we will be doing some test mining underground. We will be improving the infrastructure on the surface, so that already has begun.
MONEYWEB: Does it mean that the changes in the board, the changes in the management ? does that suggest that things are going to speed up now at the Messina prospect?
PATRICK EVANS: What is going to speed up is the raising of the project financing. There are a number of new board members who have terrific depth and experience in the precious metals financing business. While the previous president of the company anticipated that the project financing would only be in place by the beginning of next year, we now anticipate that this is going to be done within a matter of months.
MONEYWEB: How big will this mine be when it is finally in full production?
PATRICK EVANS: Ten million ounces of platinum is the reserve resource, and when it's in full production, it's going to be producing about 160'000 ounces of platinum a year -- so it's going to be a good producer. The costs are going to be in the $200 range, the cash costs. So certainly, at these prices, it's a very robust project, the pay-back is about 18 months.
MONEYWEB: How much are you going to need to actually get it going?
PATRICK EVANS: We are going to need about US$70m. We have about 10m in Messina's treasury currently, so we have a fair chunk of project financing to raise, but in initial discussions with the institutions in South Africa, there is a great deal of interest, and we don't anticipate any difficulty.
MONEYWEB: What an interesting development. Aren't you a little concerned, though, Patrick? It appears as though all of the platinum groups are now coming on with more projects. Will the platinum market be able to absorb all of this new production?
PATRICK EVANS: Yes. Of course, if one looks at the long-term cycles of metals, people would argue that this is at the peak. What happens when the metal price is at the peak is that everyone jumps in and there is a tremendous amount of development and traditionally the market is flooded and the price drops. The distinguishing feature of platinum and palladium, of course, is its wide industrial application. It's not stored in someone's vault, it's burnt out of someone's exhaust -- and I think this is going to mean that the price remains pretty steady, pretty firm, for a number of years going forward.
MONEYWEB: Because there is good demand?
PATRICK EVANS: Because there is good demand and because the supply is being diminished. It has to be replaced.
MONEYWEB: Patrick Evans, the director of SouthernEra Mining. He was telling you of a company that owns 70% of Messina Limited and a company that has just had a wholesale change in its directorate. But now they are on their way, creating a lot more jobs. I guess 160'000 ounces of platinum a year is what that mine is going to be producing -- yet another burner of good foreign exchange for the country.
By: Alec Hogg
Regards |
