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Gold/Mining/Energy : SOUTHERNERA (t.SUF)

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To: Rocky510 who wrote (6044)6/17/2000 11:54:00 PM
From: VAUGHN  Read Replies (1) of 7235
 
Hello Jimmy

Yes, thank you. A friend copied me just recently. An extremely interesting read and confirms a great deal of what I had heard from another source.

The following NR was out yesterday and may be of considerable interest perhaps more than anyone to CJ and HB if they are monitoring this site.

***

FOR: DIAGEM INTERNATIONAL RESOURCE CORP.

CDNX SYMBOL: DGM

JUNE 16, 2000

Diagem International Resource Corp. : Technical Release,
Update on Kimberlite Pipe Exploration and Evaluation
Project

VANCOUVER, BRITISH COLUMBIA--Diagem International Resource Corp.
is pleased to provide an update on provisional information from
its diamond exploration and evaluation project in Juina, Mato
Grosso State, Brazil. This update reviews: 1) the work conducted
on delineating the surface size and shape of the Kimberlite bodies
and 2) the ongoing project to establish an adapted geochemical
model for the region and some initial results.

Preliminary indications are encouraging and all three kimberlite
pipes warrant further investigation. It should be noted that this
technical release is based on early stage investigative sampling
and additional laboratory analysis, based on larger samples, is
currently underway.

Surface size of Kimberlite Pipes

The Company's exploration team has now completed reviewing and
interpreting ground magnetic and electro resistivity data. These
tools provide a "map" of the magnetic and resistivity signature.
These maps provide an estimate of the size of the signature only
and may provide an indication as to the physical size of the
surface area of the kimberlite pipes. Ultimately however, the
physical size will be determined by delineation drilling. This is
currently underway.

/T/

Pipe 1 (Given name: Acori 1)

Ground magnetic map: 600m (North South) X 600m (East/West)
Electro resistivity map: 700 X 800 metres

Pipe 2 (Given name: Acori 2)

Ground magnetic map 800 X 600 metres
Electro resistivity map 700 X 800 metres

Auger drilling is currently underway on Acori 2. Drill holes extend
260 metres across the body and are still open at both ends.

Pipe 3 (Given name: Collier 3)

Rio Tinto has previously confirmed size by auger drilling
at 1/4hectare.

/T/

Discussion of Geochemistry and early stage analysis

The mineral characteristics in the Company's area of interest in
Juina. Mato Grosso State, Brazil is quite different from other
areas in the world. Because of this they represent a significant
challenge, which is complicated further by the eroding effect of
the tropical weathering. To ensure that the appropriate
conclusions are based on a properly considered model much of the
early stage sampling is focused on analyzing indicator minerals.
However, as the size of samples increase the testing will also be
designed to recover any diamonds if any are present.

Discussion: The traditional geochemical model, applied
successfully in Africa and Canada, concentrates largely on the
harzburgitic diamond sources and associated G10 garnets and often
ignores eclogidic diamond sources. A recently commissioned study
however found that a population of the diamonds in Diagem's area
of interest originated from a much lower depth in the earth's
mantle. These diamonds are therefore more closely related to the
eclogitic diamond stability field. Also, the fact that
environmental weathering in the Juina region largely destroys G10
garnets and any softer minerals such as Chrome Diopsides. As a
result, the most useful and informative suite of minerals that
should be used to predict diamond bearing potential is the less
widely applied but very valuable and more appropriate eclogitic
suite of indicator minerals. This conclusion is seen as a major
breakthrough in diamond exploration in the area and may in fact
explain certain contradictions in results from previous analysis
where analysis of indicator minerals based on the traditional
model appeared to be inconsistent with the existence if diamonds
in the same samples. All future testing and any re-testing of
samples in Diagem's area of interest will now incorporate the
traditional harzburgitic model as well as the more important model
based on the eclogidic suite of indicator minerals.

Results are as follows:

Pipe # 1 (known as Acori 1)

The following are the results of tests conducted on a small
mineral concentrate sample. The sample was taken from a pile of
reject tailings at a local artesian miner's workings located in
close proximity to the pipe. Attention must be taken on
interpreting the results of this type of sample. In addition to
the weathering effect on the population of heavy minerals, the
grains size distribution made by the undersize cut off screen of
the miner's jig and the gravity selection input a strong negative
bias towards diamond grade related minerals and the representative
character of the sample. Although, no chromite has been found and
just 12% of the garnets were classified as G9-1 to account for the
peridotitic paragenesis. The eclogitic parageneis is represented
by 44% of the assayed garnets population revealing HPM, a
possible, pressure dependant, diamond inclusion composition type
of minerals is the diamond bearing rock source.

Additional test results are awaited in order to determine the true
potential of this pipe as no previous data has been analyzed. The
larger samples currently being analysed were taken directly from
the Kimberlite and will provide a more substantive geochemical
analysis.

Pipe # 2 (Known as Acori 2)

CF Minerals Laboratories, applying the new evaluation model,
discriminated the chemical results from the Rio Tinto sample
analysis taken from Acori 2. The relevant results related to
diamond grade are as follows:

Chromites and peridotitic garnets: Neither high titanium (HiTi)
nor diamond stability field (DI* and DI) chromites were recovered
from the sample. Chromites are not the exclusive diamond content
discriminant factor for peridotitic source. The garnet component
is, however, higher than accounted by the discriminant factors
applied by Rio Tinto.

Using the newly adapted eclogidic model 2.04% of G10's, 12.93% of
G11-1 and 19.05% of G9-1 are relevant and their relative abundance
is more than enough to assign favorable diamond content to the
pipe from this paragenetic components.

Eclogitic Garnets: In agreement with Rio Tinto's conclusion of
High_Na G3 presence, but in predominance, CF Minerals'
classification accounts for only 8.16% of eclogitic out of the
entire population of garnets. However, 1.36 were classified as "G1
- Eclogitic garnets", having the second best diamond inclusion
composition, and 6.80% of HPM.

Picroilmenites: 50 Picroilmenites chemical results, at the Cr2O3
x MgO graph, plotted 20% of the grains at medium field grade and,
at the MgO x TiO2/FeO, confirmed the moderate DPP (diamond
preservation potential) with one grain in the excellent field.

Previous results of samples taken by Rio Tinto: Rio Tinto took
one 272kg sample and recovered 17 diamonds all less than 1 mm in
size. The chemical parameters reported from garnets analysis
identified the existence of both eclogitic "G3" Garnets (using Rio
Tinto classifications) as well as 0.5% G10 Garnets.

The distinct discriminant factors applied on the chemical results
appear to confirm the previous conclusions and are signaling a
higher contribution from peridotitic source to add to the
eclogitic paragenesis. This data leads to anticipating a high
potential diamond grade for the pipe.

Pipe # 3 (known as Collier 3)

This pipe had until recently been considered a lesser priority
target. In applying the new geochemical model, initial results are
however far better than had originally been anticipated.
Analysis of the most important indicator minerals taken from a
small grab sample are:

Eclogitic paragenesis:

Eclogitic Garnets: 38.52% of the garnets have diamond grade
related to the eclogitic source. From individual samples, as they
present extremely high variability in source proportions, G1*
(best diamond inclusion composition - Eclogitic Garnet) might
range from 0 up to 7.59% and HPM (possible diamond grade related
eclogitic garnets) range from 13.41 to 49.37%.

Pyroxenes: Diamond inclusion composition pyroxenes are present in
the pipe with both Clinopyroxenes (33.33%) and Orthopyroxes
(16.67%), classified by CF Lab as CP - DI and OPX - DI,
respectively. Additionally, 25% of CP - DIO (High pressure
ClinoPyroxenes with diamond inclusion composition overlapping with
a field of clinopyroxenes's that classify from non diamond
inclusion sources. The % is related to the sum of all pyroxenes
grains.

Peridotitic Paragenisis:

Chromites: Preliminary interpretation indicates reported results
from in excess of 50% (51.62) of the Chromites grains assigning
diamond grades from their rock sources, being 9.62% from favorable
harburgitic sources.

Peridotitic Garnets: Additionally favorable is that 39.01% of the
peridotitic garnets, include 1.86% of G10s.

Previous Test Results from a sample taken by Rio Tinto: A 170.4
kg sample was taken from which 15 diamonds were recovered. The
sample contained 2% Eclogitic Garnets with 36% of the Chromites
falling within the diamond intergrowth field. 7.9% of ilmenites
fell within the medium preservation field.

The large volume of chromites and peridotitic garnets that occur
in the Rio Tinto sample is encouraging and indicates promising
diamond content. The results of the recent tests serve to
corroborate previous findings and the exploration team remains
optimistic as to the potential of this pipe.

For more information on the company's activities call investor
relations at (604) 688- GEMS (4367)

For and on behalf of

DIAGEM International Resource Corp.

David Cohen, President

***

Regards
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