SouthernEra Resources Limited -
Island-Arc, Kalahari and SouthernEra start drilling at Munn Lake
SouthernEra Resources Limited
SUF
Shares issued 26,881,395
1999-08-20 close $3.25
Monday Aug 23 1999
See Island-Arc Resources Corporation (IAR) News Release
Mr. Lawrence Barr reports
The drilling phase of the summer exploration program at Munn Lake has begun.
Munn Lake is part of the Back Lake diamond project in the Northwest Territories
which is a joint venture between Island-Arc Resources Corporation, Kalahari
Resources Inc. and SouthernEra Resources Limited. SouthernEra is the operator.
The drilling program is following up on the March, 1999, discovery of the Munn
Lake kimberlite sill. Ten diamond drill core holes, drilled within an area of 150
metres by 300 metres on the ice over a small bay on Munn Lake, defined a
kimberlite sill that varied in true thickness from 12 m to 0.25 m. 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.
In preparation for the current drilling, geophysical surveys (magnetics and
horizontal loop electromagnetics) have been carried out on the north shore of the
small bay where the Munn Lake kimberlite discovery was made. In addition, fill-in
lines were surveyed on the south shore of the bay to refine geophysics previously
performed there and the grid was extended to the southeast.
Ten to 15 diamond drill holes (1,500 m) will be completed in the current program
to define the strike and down-dip continuity of the kimberlite sill as well as its
thickness on both the northern and southern shores. A 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. Drilling is expected to take approximately one
month.
Diamond drill holes are being collared to locate land-based areas where the
thickness of the sill will permit a mini-bulk sample of over 50 tonnes to be
collected during the early months of the year 2000.
The current exploration program is being financed by Island-Arc and Kalahari
pursuant to a July, 1999, agreement whereby Island-Arc and Kalahari may
increase their interest in the project from their present total 30-per-cent carried
interest by earning a joint 10-per-cent working interest by financing the next
$750,000 in exploration on the project. The current program will complete nearly
half of the earn-in requirement. Upon completion of the $750,000 working interest
earn-in, the interests in the Back Lake project will be:
Island-Arc 15% (10.62% carried)
Kalahari 25% (19.38% carried)
SouthernEra 60%
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