APPROVAL OF MINING LEASE.
FOR IMMEDIATE RELEASE
Contact: Eugene Brill
VP Investor Relations
(800) 424-6533
Friday, April 16, 1998
Trading Symbol: GDRS
LA JOLLA, Calif. - Global Diamond Resources, Inc., ("Global") is pleased to announce that the Minister of Minerals and Energy of the Republic of South Africa has given formal written consent for the cession and transfer of the Notarial Mineral Lease over the Caerwinning diamond property to Global Diamond Resources (SA) (Pty) Limited, the wholly owned South African subsidiary of Global.
In addition, the $1,400,000 that formed part of the $6,000,000 financing announced on December 10, 1997, that was withheld until certain conditions were met, has now been received by Global.
The establishment of production facilities at Caerwinning is proceeding as planned and the first commercial diamond production from this property is expected in June 1998.
Management estimates that the Caerwinning alluvial deposit should contain 445,000 carats of large high quality gemstone diamonds valued at around $217 million. Between 1989 and 1994 Global's Director of Exploration and Mining, Pieter van Wyk, recovered 3,685 carats
of large high quality gemstone diamonds from 344,000 tonnes of gravel. It included individual diamonds of 82.90; 45.40 and 40.66 carats respectively. In October 1996 Global recovered 111.05 carats of diamonds with an average stone size of 1.85 carats, which parcel was valued at $642 per carat.
This press release contains forms of forward-looking statements that are based on the Company's beliefs as well as assumptions made by and on information currently available to the Company. Such statements are subject to certain risks, uncertainties and assumptions, which are identified and described in the Company's 1996 Annual Report on Form-10-KSB and subsequent Quarterly Reports on Form 10-QSB on file with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results will vary materially from those anticipated, estimated, or projected and the variations may be material.
For more information about Global visit our Website at globaldiamond.com or call Eugene Brill at (800) 424-6533 or (619) 459-0045. |
