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SouthernEra Resources Ltd -
Major General and SouthernEra complete option agreement
SouthernEra Resources Ltd
SUF
Shares issued 29,666,865
Sep 19 2001 close $2.790
Sep 19 2001 1:55:32
Mr. William Coulter of Major General reports
Major General Resources and partners SouthernEra Resources and International
Diamond Syndicate (collectively MIS group) have concluded a letter agreement
optioning the Misty Lake property to BHP Diamonds. Negotiations over the past
five months were successful because of the co-operation of all the participants.
The Misty Lake property, consisting of 35 claims covering about 71,600 acres, is
situated immediately to the south of the Mountain Province -- De Beers Kennady
Lake project, about 300 kilometres east of Yellowknife; or 150 kilometres southeast
of the Ekati diamond mine. De Beers is currently completing final evaluation of
diamonds on four kimberlites on the Kennady Lake property to determine grade and
value prior to a formal feasibility study.
BHP will immediately commence a detailed, helicopter-borne magnetic
electromagnetic survey over the entire property. Previous work on the property has
identified strong indicator mineral assemblages indicative of diamondiferous
kimberlites.
The combined magnetic-electromagnetic (EM) surveys have not previously been
flown over the Misty Lake property. It is now well established in the Northwest
Territories that some kimberlites respond to both geophysical techniques while
others respond only to either magnetic or electromagnetic signals. It is believed that
the four main Kennady Lake kimberlite pipes, which are located as close as 20
kilometres to the Misty Lake property, were located using these techniques in
combination with anomalous till indicator minerals.
At the present time, the Misty Lake property interests are SouthernEra Resources
60 per cent, Major General Resources 24 per cent and the International Diamond
Syndicate 16 per cent. BHP has the right to earn an incremental interest in the
property under the following work schedule:
BHP will complete the detailed geophysical survey as soon as practicable at its cost.
Once results are evaluated, BHP will select targets which it considers may be
kimberlites for drill testing. BHP must then drill test up to at least 10 of these targets
within a two-year period from date of signing. If a kimberlite is encountered, BHP is
immediately vested with a 35-per-cent interest in the property. BHP may increase
its interest in the property to 51 per cent if it completes a 200-tonne mini-bulk test
sample on any one kimberlite for diamond content and valuation.
The MIS group understands that BHP has selected a suitable contractor and the
helicopter-borne geophysical survey is set to commence immediately.
(c) Copyright 2001 Canjex Publishing Ltd. canada-stockwatch.com |
