Consultants reports from South African diamond properties
Poplar Resources Ltd PPX
Shares issued 16,155,679 Nov 18 close $0.27
Wed 19 Nov 97 News Release
Mr Gennan McDowell reports
Conclusions have been received from the final reports from Dr Raymond
Davies and Dr John Gurney on the Aardvark (Theunissen area) and Barkly West
diamond-fissure properties in South Africa. Poplar has signed a joint
venture agreement with Savannah Diamondfields to develop these diamond
properties. Poplar has the option to earn a 60% interest in Savannah
Diamondfields. In August of this year Poplar acquired a set of mineral
chemistry results over the whole Theunissen fissure system (Aardvark
project included). This data was originally acquired by Stuart Hill in 1989
as part of an MSc project under Dr Gurney. Included in this was a set of
microprobe results of heavy mineral macrycrysts picked from samples from
these fissures. The data set consists of just over 1100 microprobe
analyses. These results are from garnet macrocrysts and chromite
macrocrysts. Samples over the Aardvark project area were collected by Dr
Gurney. Approximately one (20 - 50 kg) sample was taken from each fissure.
Dr Gurney was commissioned by Poplar to carry out a mineral chemistry
interpretation of the results over four of the five kimberlite occurrences
on the Aardvark property.
Aardvark Property - Theunissen Area
The Aardvark property is between Welkom and Theunissen in the Orange Free
State of South Africa. It is a series of east-west striking diamondiferous
fissures.
The reserves estimated by Davies (1997) are as follows: The Aardvark
property has known fissures with a potential strike length of 11.8km. The
width is not known but we can assume that it would be similar to that of
other fissure mines in the district. That at Rex is 40cm and Star is
45-60cm (say 50cm). Assuming a total length of 10km, average width of 45cm
and a mineable depth of 800m, we would have a resource of 9.5 million
tonnes. Assuming an in-situ grade of 45 carats/100 tonnes (average of Rex
and Star) and an average value of US$220/carat we have a value of US$99/ton
with a total resource value of US$1.03 billion.
The estimates quoted above are based on Davies (1997) model and that
further work will be needed to authenticate these figures.
The Aardvark property consists of five fissures (Brak Laagte, Karee,
Retreat, Leliesdal and Hendriena. Dr Gurney's (1997) report covers three of
the fissures (Retreat, Brak, Laagte and Leliesdal) and the Driekoppies
kimberlite pipe. The conclusions of the Gurney report are as follows: In
summary, it can be said that the four kimberlite occurrences under
consideration will be diamondiferous. It is possible, but is certainly not
proven that they might have grades which are of economic interest. This is
particularly true in this area of the eastern Free State where the Group 2
kimberlites that have been mined have all produced a very high value
product.
Barkly West Property - Kimberly Area
The Barkly West property is 45km north of Kimberly in the Cape Province of
South Africa. It is 5km northeast of the town of Barkly West. The Barkly
West property includes two adjoining farms covering a minimum of 3.6km of
known kimberlite fissure which has been partly mined to a depth of 122m
producing excellent quality gem stones. A third farm nearby covers about
4.2km of kimberlite fissures. The property also contains alluvial gravels
and an untested kimberlite pipe.
The reserves estimated by Davies are as follows: At Barkly West the known
fissure is 3.5km long and the fissure is 1.25-2.5m (say (1.9m) wide. To a
depth of 800m there would be a resource of 14.795 million tonnes. Assuming
an in-situ grade of 35 carats/100 tonnes and an average value of
US$220/carat we would have a value of US$77/tonne with a total resource
value of US$1.139 billion.
The estimates quoted above are based on Davies (1997) model and further
work will be needed to authenticate these figures.
The final conclusions of Davies (1997) report are as follows:
Previous work on the two properties has established the presence of
kimberlite fissures of 11.8km (Aardvark) and 3.6km (Barkly West
respectively. The fissures are diamondiferous and in the case of Barkly
West property the fissure was economically mined over eight years. The
stones recovered from both properties appear to have been of high quality
and as is typical of fissures the grade and thickness of the fissures
should persist with depth.
Poplar is not buying into a grass roots operation but into an opportunity
to develop one or two significant diamond mines. The value of the work that
has been previously done on the Aardvark property is well in excess of the
US$1.158 million that is proposed to bring the property to the feasibility
stage. The Barkly West property was a significant mine for eight years and
the value of the work done in the past is well in excess of the US$772,000
that is proposed to bring that property to the feasibility stage.
The company has recently received the proceeds from the first closing of
seven million special warrants. These funds will be used to advance the
fissure projects in South Africa. |
