CORPORATE UPDATE - PROGRESS REPORT
December 17, 1998
Significant progress has been achieved in all five of Poplar Resources= main diamond projects. Large tracts of land have been assembled in prospective area plays in northern Europe and in South Africa. We have already completed two large bulk samples on one of our South African projects and extensive regional sampling-programs are being conducted on several fronts. Ground magnetic surveys,
micro-diamond analysis and other types of exploration are also being conducted on our properties.
Last week a Memorandum of Understanding (MOU) was signed with a partner interested in participating in the development of our Karmel kimberlite-fissure/pipe complex. We also have expressions of interest from a number of individuals and companies interested in investing in North Star Diamonds and in our Irish project. The Company plans on financing its future activities by identifying joint-venture partners
and offering minority interests in its subsidiaries. This formula has been successfully used in the case of North Star Diamonds, where 35% of North Star was sold for $1.1 million. Part of this strategy is to ensure that each project is financially self-sufficient and contributes to Poplar Resources= head-office costs. We also want to ensure local participation in projects wherever possible.
Our plan is to become a diamond explorer focused at the high end of the diamond market, since 62% of the dollar value of all diamonds sold originate from the top 18% of all diamonds mined. Poplar Resources intends to continue its policy of identifying high-quality diamond deposits in politically stable countries. We will continue to offer
the investor the full spectrum of diamond exploration from blue sky projects to near-production scenarios.
PROJECT SUMMARIES
SOUTH AFRICA: Gem-quality diamonds have been recovered from the bulk-sampling programme on the 9,500 hectare Aardvark Project, part of our Savannah Diamondfields joint venture. The diamonds were recovered during the initial bulk sample of a kimberlite pipe at the Lovedale Mine. A second, 1,200 tonne sample has now been taken to determine a more reliable estimate of the grade. Micro-diamond analysis has also been conducted on Savannah=s Barkly West Project. A pipe on Poplar=s 100% owned Karmel Project has been tested and deemed to be of Ahigh interest@ by one potential joint venture partner. Another company has signed an MOU and is conducting their own due diligence on the 7,500 hectare fissure/pipe project.
SWEDEN: Licence fees of $350,000 have been paid to obtain 3,000,000 acres in northern Sweden, by Poplar=s subsidiary North Star Diamonds. This country=s first diamonds were discovered recently by prospectors who are now members of the Poplar team. The Company has also found diamond indicator minerals at a second location. In 1997 a regional sampling programme was carried out that located kimberlite indicator minerals. A detailed follow up sampling programme was then conducted in 1998, where a further 826 till/stream samples were collected. An interpretation of aeromagnetic data (flown at 200 m line-spacing) has been completed. Numerous anomalies with pipe-like signatures were identified, mostly occurring in clusters.
FINLAND: North Star Diamonds holds 37 mining claims in southern Finland. These claims cover potential targets that we plan on drilling in early 1999. This past summer the Company=s field crews collected 160 samples from the Inari area of northern Finland. A further 690 new samples have also been collected in southern Finland. All of these samples have yet to be processed.
IRELAND: Poplar currently holds five licences in Northern Ireland, covering 1,250 sq ms. In addition, Expressions of Interest are held in the Republic of Ireland. Diamond indicator minerals, including kimberlitic garnets and chromites falling within the diamond intergrowth field, were found as part of the 1996 stream-sampling
programme. (In diamond exploration, the discovery of a single kimberlitic grain in a till or stream sample is a significant discovery. The discovery of a diamond indicator mineral is even more dramatic.) A phase II exploration programme has been scheduled as soon as funding has been arranged. This will entail follow-up sampling,
an aeromagnetic survey and a drilling programme.
On behalf of the Board of Directors
Poplar Resources Ltd.
"W.G. McDowall" |
