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Paramount exercises warrants; Buriti property testing
Paramount Ventures & Finance Inc PVF
Shares issued 28,061,394 Jun 12 close $0.60
Mon 12 Jun 2000 News Release
Also Paramax Resources Ltd (PXM)
Mr. James Owen reports
Paramount has exercised 1.07 million share purchase warrants of Paramax at
a price of 45 cents per share. This share acquisition gives Paramount a
46-per-cent interest in Paramax.
Paramax has used the $481,500 proceeds from the exercise of the share
purchase warrants to pay for its financing obligations on the Buriti
property in Brazil. Paramax has now earned a 50-per-cent interest in the
property with Paramount, the operator holding the other 50-per-cent
interest.
The Buriti property is a 10,000-hectare property located approximately 125
kilometres north of the city of Cuiaba, in the state of Mato Grosso,
Brazil.
During the past month, bulk testing on the joint venture property has
concentrated on a new area of the property which provided dry gravel
material. This material has been processed through the central processing
plant, however, diamond recovery has not been as high as encountered during
the bulk testing of other pits in the fall of 1999. The company believes
that there is a lack of diamond recovery at the new pit due to the nature
of the clays which are in the bottom layer of the diamond-bearing gravels.
The following data reported to management compares the two different areas
of the property for diamond recovery.
Average Ranges of Recovery
stone stone rate
size (ct) size (ct) ct/cubic metre
Fall 1999
0.45 0.10 to 4.50 0.45
May 2000
0.40 0.10 to 2.45 (1) less than 0.20
(1) includes a one-half carat
brilliant blue stone
Due to the nature of alluvial deposits variations in recovery rates, size
of stones and stone quality are expected. Accordingly, test results in one
area are not representative of another area or of the entire property.
The company has retained a geologist with alluvial mining experience to
review the areas of operations involving pit selection and gravel
extraction. He will also recommend priority areas on the company's
extensive land holdings for future work.
The company has started excavation and extraction work on two new bulk test
areas which have a history of larger diamond sizes. The gravels in these
areas do not contain the clays associated with the other site. In one of
the new areas, a 3.5-carat white diamond has been recovered and sold
locally for $200 (U.S.) per carat.
In general, the company is satisfied that the large excavation equipment,
trucks and central processing plant are operating as expected. The gold
circuit on the plant is recovering gold fines from the sands, however
determining a recovery rate is premature due to the nature of the bulk
testing.
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