Antares to acquire South African diamond prospects
Antares Mining and Exploration Corp ANZ
Shares issued 35,233,239 Jul 30 close $0.10
Tue 3 Aug 99 News Release
Mr. Anthony de Werth reports
Antares has signed an agreement with Randgold & Exploration Company Limited
covering its 50-per-cent interest in the mineral rights of the Witkrans
prospect and its 100-per-cent interest in the mineral rights of the
Kafferskraal prospect, both prospects situated approximately 120 kilometres
west of Johannesburg in the alluvial diamond-producing Ventersdorp district
of South Africa.
The Witkrans prospect is situated 35 kilometres north of the town of
Ventersdorp and encompasses 3,856 hectares. It covers the northwestern
extension of the Vetpan-Hartebeeslaagte alluvial diamond deposit, which has
produced an estimated 42,160 carats of diamonds to date. While this deposit
has been mined extensively on the neighbouring Vetpan and Hartebeeslaagte
properties immediately to the east, little to no production has been
undertaken on Witkrans.
Diamonds were first discovered on the property during the late 1920s as a
result of a prospecting rush to the area. A reconnaissance geological
survey completed by Antares has indicated that the Vetpan-Hartebeeslaagte
deposit extends across this prospect in a northwesterly direction, covering
a strike length of approximately seven kilometres, and exhibiting surface
widths ranging between 100 and 200 metres. It is encouraging to note that
the diamondiferous gravels that have been excavated on the neighbouring
Vetpan property extend right up to the fenceline that marks the boundary
between the two properties.
Antares will hold prospecting rights for a three-year period. Title to the
mineral rights will pass from Randgold to Antares at the time of a
production decision, at which time Antares will pay to Randgold a
production royalty of 5 per cent of the gross value of diamond sales from
Randgold's 50-per-cent interest. Antares expects to complete negotiations
for the remaining 50-per-cent of the mineral rights on Witkrans shortly,
and exploration is planned to begin thereafter. Assuming successful
exploration results, Antares plans the immediate commencement of a trial
mining program on the prospect.
The 2,098-hectare Kafferskraal prospect, 25 kilometres west of the Witkrans
prospect, is situated along the Wildfontein diamond run, which produced
over 86,000 carats between 1904 and 1984. The agreement with Randgold
regarding Kafferskraal is the same as with Witkrans and preliminary
exploration on this prospect will begin shortly.
Diamonds recovered from gravels in the Ventersdorp district are renowned
for their high quality and large average stone size and are normally sold
at values of over $400 (U.S.) per rough carat. Recent media releases quote
De Beers officials confirming significant demand for gem diamonds as a
result of strong U.S. and improving Asian markets, resulting in a
44-per-cent increase in overall central selling organization revenues.
Kenneth W. Johnson has joined the Antares board. Mr. Johnson is president
and chief executive officer of Vaaldiam Resources Ltd. and brings to
Antares considerable experience related to the diamond exploration and
production sector.
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