SOUTHERNERA RESOURCES LIMITED - DIAMOND SALES SUMMARY
TORONTO, June 25 /CNW/ - SouthernEra Resources Limited (SUF-TSE) is
pleased to report the results of the following sales of rough diamonds from
its Klipspringer mine in South Africa and its Angolan alluvial operations.
Klipspringer Mine - South Africa
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Over the past four months Klipspringer has produced and sold 46,495.26
carats of rough diamonds for a total of US $5,164,759.39. The average selling
price was US $111.08 per carat.
- On May 21st, 20,312.15 carats were sold for gross proceeds of US
$2,187,500.00. The parcel value averaged US $107.69 per carat.
- On June 2nd, 6,513.76 carats were sold on the Diamond Bourse of South
Africa for US $651,384.00; this parcel averaged US $100.00 per carat.
- On June 19th, a further 19,669.35 carats were sold for US
$2,325,875.39. This parcel averaged US $121.75 per carat.
These diamonds were mined from the Sugarbird Blow and the value per carat
substantially exceed the preliminary valuation of US $85 per carat. The
largest diamond recovered up to June 19th from this deposit is a 23.75 carat
stone.
At present approximately 15,700 carats are on hand for a further sale
anticipated in mid-July, and processing of stockpiled material from the
Sugarbird Blow is expected to be completed by this time.
Angolan Sales - Cassanguidi Concession
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On June 11th the first production parcel of 3,226 carats of Cassanguidi
diamonds were sold for total proceeds of US $570,000.00. The stones averaged
US $175.00 per carat. Production from river operations has averaged
approximately 200 carats per day since mid-May, and a further 3,000 carats are
now available for sale in early July. As water levels recede additional diving
crews have been mobilized to the site and increased production is anticipated.
SouthernEra receives 50% of the net proceeds of diamond sales from the
concession.
Angolan Sales - Luo Concession
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On June 23rd a parcel of 6,038 carats of Luo diamonds was sold for total
proceeds of US $1,228,609.00 for an average of US $203.48 per carat. In
addition, a single 8.14 carat pink diamond was sold for US $100,572.00. Luo
production continues at approximately 150 carats per day and will increase
once the second plant is commissioned in early August. The new river diversion
is also scheduled for completion at that time. SouthernEra receives 46% of the
net proceeds from Luo diamond sales.
There has been major international and local interest at all our sales.
The demand for the Klipspringer diamonds, as indicated by the above prices
appears to have strengthened over the past two months. Demand for Angolan
goods remains firm.
%SEDAR: 00004535E
-0- 06/25/98
For further information: please contact: 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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