Dont worry Bob, some were looking for me to draw the queen of spades, instead it was the king of Diamonds.
Please note the following release
June 11, 1999
FIRST QUARTER REPORT
ABER RESOURCES LTD. (TSE-ABZ, NASDAQ-ABERF) announces that for the first
quarter ended April 30, 1999, the Company had net income of $95,047 or
nil per share, compared with a loss of $212,211 or $0.01 per share a
year earlier. Revenue totaled $1,492,737 compared with $422,375 a year
earlier. The revenue in both periods is attributable to interest income.
The increase in revenue and the net income in the latest period are due
to higher cash balances available for investment.
At the end of the first quarter, Aber had $111,447,712 in working
capital, compared with $26,662,322 a year earlier. Cash and equivalents
totaled $117,383,892 compared with $28,628,229 a year earlier. The
increases in cash and working capital are mainly attributable to the
Company's $102.9 million ($98.5 million after expenses) equity financing
in June 1998.
Diavik Diamonds Project
Aber has a 40% interest in the Diavik Diamonds Project (the “Project”),
located approximately 300 kilometres northeast of Yellowknife, NWT and
30 kilometres southeast of the BHP/Dia Met Ekati Diamond Mine. The
remaining 60% interest is owned by Yellowknife-based Diavik Diamond
Mines Inc., a subsidiary of Rio Tinto plc of London. DDMI is the project
operator. Aber retains the right to market its 40% share of the diamond
production.
In the latest quarter, Aber's share of deferred mineral property costs
related to the Project amounted to $3,203,054, compared with $4,540,506
a year earlier. The costs were mainly for exploration, environmental
studies and feasibility work in both periods.
A Comprehensive Study Review (“CSR”) of the Project's environmental
impact, conducted by the Canadian government, is nearing completion. A
draft report of the study has been placed on the public record in
Yellowknife. The draft, which remains subject to revision, indicates
that the Project will not cause any significant or unmitigable
environmental or socio-economic effects. Aber expects that in June the
Canadian government will release the final CSR for a 30-day public
review period. After considering the CSR and any public comments, the
government is expected to issue a decision as to whether, and on what
terms and conditions, the Project should proceed to the permitting
phase.
A feasibility study on the Project is expected to be completed following
this decision. Subject to a favourable feasibility study, environmental
approval and permitting by the Canadian government and a production
decision by the owners in 1999, construction is expected to begin in
January 2000.
Diavik Exploration
During the winter four exploration holes were drilled on the A-180
kimberlite pipe, located 25 kilometers northeast of the Project camp.
Results are expected this summer. New exploration planned for this
summer includes the drilling of at least three previously untested
targets and continued work to find new targets.
Seven delineation holes and two mini-bulk sample holes were drilled
during the winter on the A-841 kimberlite pipe, located in Lac de Gras
about 250 metres northeast of Diavik's A-154 North kimberlite pipe. As
previously reported, pipe A-841 was discovered in 1997 and is on the
border between the Diavik and Ekati properties. The delineation holes
were drilled by Diavik and the mini-bulk sample holes were drilled by
the owners of Ekati in a cooperative program.
The first four delineation core holes on pipe A-841, including two from
1997 and two from 1999, yielded 1,416 diamonds, of which 384 were macro
diamonds, from 867.8 kilograms of kimberlite. The ratio of 1.63 diamonds
per kilogram of kimberlite is similar to early results from pipe A-154
South, which is encouraging. Indications from the delineation drilling
so far are that A-841 is smaller than A-154 South and that about 30% may
be located on the Diavik Property. Further drilling results will help to
establish the resource potential and a more precise ownership split.
Complete results from the 1999 winter drilling of A-841 are not expected
until late in the summer.
Camsell Lake Diamond Project
On the Haywood block, operator Winspear Resources Ltd. of Vancouver
expects to report results during the third quarter of 1999 from a 6,000
tonne bulk sample taken from the property during the winter. As
previously reported, Aber and Winspear are in a dispute over Aber's
right to participate in the 1999 exploration program. Aber's position is
that it has the right to participate by paying its 32.24% share of the
budget, or approximately $4 million. Aber has commenced litigation in
the British Columbia Supreme Court to protect the Company's 32.24%
interest.
Other Exploration
Aber plans an active summer of surface sampling for diamonds on
properties in the Northwest Territories, Nunavut and West Greenland. The
sampling programs are intended to identify targets for future drilling. |
