SUF - First Quarter Report, 1998
TORONTO, May 28 /CNW/ - SouthernEra Resources Limited (SUF-TSE) today
announced in its quarterly report to shareholders that the first run of mine rough diamonds from the Sugarbird Blow realized US$108 per carat. Diamond recoveries in the first quarter from the Klipspringer project totalled 10,400carats, mostly from production in the month of March.
Exploration is continuing on the 48,000 hectares of ground at
Klipspringer, with interesting intersections in a kimberlite dyke some 18kilometres from the farm Marsfontein. Drill core samples yielded nine microdiamonds in a 1.6kg sample, and four in a 2.6kg sample from a parallel fissure.
Production at the Luo Concession was reported to be less than planned due to heavy rainfall, but totalled 11,466 carats for the quarter. As previously reported, the latest sale realized an average of US $224 per carat. A second river diversion was reported to be under construction and expected to be completed by mid-year.
The loss for the period was $2 million after writing off $500,000 in expenses incurred on the Cassanguidi property and $200,000 on the Kidme property in the Northwest Territories, compared to a loss of $214,000 for the first quarter of 1997.
Expenditures on completing the plant at Klipspringer and the continuing exploration program there were reported to total $7.5 million, net of $1.5 million in diamonds recovered during the quarter, with an additional $3.7 million expended on the exploration projects in Angola and the Northwest Territories, Canada. Working capital was reported to be $7 million.
The Company went on to say that it was optimistic that the Minister of Minerals & Energy of South Africa would exercise his discretion in the matter of the M-1 mineral rights dispute with due regard for natural justice and South Africa's economy.
-0- 05/28/98
For further information: Christopher M.H. Jennings, President; A. Lee Barker, Vice President; Frank van de Water, Chief Financial Officer; Kim Freeman, Chief Mining Engineer; Nicholas Sayce, Investor Relations; Phone: (416) 359-9282, Fax: (416) 359-9141, e-mail: inbox@southernera.com, southernera.com
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