SouthernEra Resources Limited - Drilling to resume in August at Munn Lake, N.W.T.
TORONTO, July 20 /CNW/ - SOUTHERNERA RESOURCES LIMITED (SUF-TSE),
Island-Arc Resources Corporation and Kalahari Resources Ltd. have reached an
agreement to accelerate exploration on the Back Lake diamond project with a
drilling program this summer to follow up on the March, 1999 discovery of the
Munn Lake kimberlite sill.
Ten diamond drill core holes, drilled within an area of 150m by 300m,
defined a kimberlite sill that varied in true thickness from 12m to 0.25m. The
shallow-dipping, northwest striking kimberlite sill (dipping dyke) returned
excellent microdiamond counts with a majority of the diamonds of very good
white colour and quality (see news release dated 8th June, 1999).
The objective of the Back Lake diamond exploration program over the
following twelve months will be as follows:
- A ten to fifteen hole drilling program (1,500m) will be completed this
summer to define the strike and down-dip continuity of the kimberlite sill as
well as its thickness on both the northern and southern shores. Air photo and
ground magnetic geophysical interpretation and the recovery of kimberlitic
indicator minerals from till samples, suggest that the sill strikes onto both
the southern and northern shoreline areas of Munn Lake (see map).
- Diamond drill holes will be collared to locate land-based areas where
the thickness of the sill would permit a mini-bulk sample of 50+ tonnes to be
collected. If successful, the mini-bulk sample will be collected during the
early months of the year 2000.
- During spring 1999, till samples were collected from the bottom of
Margaret Lake to define and locate the up-ice cut-off point of two kimberlitic
indicator mineral trains defined on the western shoreline area of Margaret
Lake. A 100m spaced line of till samples was collected 1km to 1.5km offshore
in Margaret Lake utilizing a sonic drill. No kimberlite indicators were
recovered from the samples, suggesting that the primary kimberlite source of
the indicators possibly occurs within 1.5km of the Margaret Lake shoreline.
Exploration to locate the primary kimberlite sources in Margaret Lake will
commence during the winter months when there is sufficient ice on Margaret
Lake to complete ground geophysics and support a diamond core drill.
Under the new agreement between SouthernEra, Island-Arc and Kalahari to
accelerate the Back Lake exploration program, Island-Arc and Kalahari can
acquire up to 4.38% and 5.62% working interests, respectively, by providing
$750,000 in exploration funds. Of this, $250,000 is a firm commitment, earning
Island-Arc and Kalahari a combined 3.33% working interest.
Upon completion of the combined 10% working interest earn-in, the
interests in the Back Lake project will be:
SouthernEra 60%
Island-Arc 15%
Kalahari 25%
After the earn-in is completed, Island-Arc and Kalahari will be
responsible for contributing 4.38% and 5.62% to future exploration programs.
Any party not contributing will be subject to dilution of its working
interests only. Kennecott Canada Inc. retains the right to back-in for a 30%
interest on any discovery, by paying two times past expenditures on the Back
Lake project. If Kennecott backs in, its 30% interest is from SouthernEra's,
Island-Arc's and Kalahari's working interests only. This will not affect
Island Arc's and Kalahari's carried interests.
SouthernEra is highly encouraged by the Back Lake project results to
date. The company views this decision to allow its junior partners to increase
their interest in the Back lake Project as a way to accelerate the pace of
discovery on the Back Lake project while enabling SouthernEra to continue its
other company-building projects around the world at their planned pace. |
