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

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To: Tomato who wrote (116)	5/28/1997 6:54:00 PM
From: VAUGHN	of 7235

To All NR dated May 27, 1997 from Kalahari on McKay Lake/Back Lake Southernera joint venture project. "A total of 8 holes were drilled on magnetic targets. One hole encountered kimberlite dykes, the rest returned negative results. All drilling for now is completed. Four of the six kimberlite trains remain unexplained. Work has ceased for now until July 1, 1997. At this time we will be collecting 1,000 plus till samples to try to further define the kimberlite trains as well as to infill areas near the Snap Lake Winspear discovery. Kalahari Resources Inc. Albert W. Applegath President" I spoke to Lee Barker and rainy season just coming to an end in Angola. Joint venture partners just now returning to the bonnanza hole area to repair the dykes and start-up operations again. SUF expect to have their plant on their aluvial concession shortly and while field results are anticipated from these two operations throughout the summer, no news of any particular significance is expected over the next six weeks or so. Possible Aluvial concession progress/results and McKay Lake/Back Lake and Lac de Gras drilling results most likely news of any significance over the summer. Regards

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