New game in town, Diamonds,
sounds like more money in Diamonds now than Gold,
Standard needs cash to buy up small depressed ,,,.....
look what you can buy.
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globaldiamond.com
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FOR IMMEDIATE RELEASE
Friday, July 4, 1999
Trading Symbol: GDRS
GRASDRIF DIAMONDS SOLD FOR $727 PER CARAT.
LA JOLLA, Calif. - Global Diamond Resources, Inc., (Global) is pleased to announce that the first parcel of
large high quality gemstone diamonds recovered from its trial mining activities at its Orange River Grasdrif
property was sold for an average price of $727 per carat. This amounts to an increase of 16% over the
budgeted price of $625 per carat.
The trial mining activities are being conducted in advance of actual production with the objective of
determining the geological constraints of the concentration of diamonds in the deposit. To determine these
constraints material that would not ordinarily be processed was included in the trial mining. As such the grade
becomes irrelevant at this stage. The entire run-of-mine production consisting of 57 diamonds with a total
weight of 142.47 carats was sold for an amount of $103,584. The parcel included a 17.52 and a 21.44-carat
gemstone diamond, which were both sold for $1,500 per carat.
The Grasdrif property is estimated to contain some 82 million tonnes of diamondiferous alluvial gravel, with a
potential to yield more than 1 million carats of large high quality gemstone diamonds. Global's management
recovered more than 500,000 carats of large high quality gemstone diamonds from properties along the
Orange River in a previous venture.
The erection of additional production facilities at the Grasdrif property, funded with the $6 million financing
completed in December 1998 is progressing on schedule and the plant should be commissioned during the
third quarter of 1999.
This press release contains forms of forward-looking statements that are based on the Company's beliefs as
well as assumptions made by and on information currently available to the Company. Such statements are
subject to certain risks, uncertainties and assumptions, which are identified and described in the Company's
1996 Annual Report on Form-10-KSB and subsequent Quarterly Reports on Form 10-QSB on file with the
SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results will vary materially from those anticipated, estimated, or projected and the variations
may be material.
For more information about Global visit our Website at globaldiamond.com or call Eugene Brill at
(800) 424-6533 or (858) 459-0045.
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The mining stock market in 1998 proved to be another bruiser, following the 1997 "Bre-X" depression in mining stocks.
Junior diamond exploration and mining companies had a particularly poor year with companies such as Botswana
Diamondfields down 82.5%; Messina Diamond Corp down 95% and Hymex Diamonds down 92%. Global Diamond
Resources, Inc fared somewhat better, closing down 42% for the year.
The stock price is the barometer by which the success of a company is measured, however, in a bear market, such as the
one currently in place in the mining sector the fundamentals of a company are often overlooked. A positive discrepancy
between the fundamental value and the stock price could indicate a buy opportunity rarely capitalized upon by
investors.
Financial Strength.
In this difficult market, capital becomes that much more important. We succeeded in completing a $6 million equity
financing in December 1998. The shares issued are held by the new shareholders as a long-term investment and are
restricted for resale for at least one year. The two new groups of shareholders join an already strong shareholder base,
boding well for future capital requirements. Global is now boasts with a strong balance sheet, ready to meet the
challenges of 1999. |
